Acquisition Would Allow Alliance PT to Expand National Footprint and Significantly Enhance Back-Office Capabilities
New York – February 6, 2018 – Alliance Physical Therapy Management, LLC (“Alliance PT”), an affiliate of Alliance PTP* and Alliance Physical Therapy Partners, has signed a definitive agreement to acquire the U.S. operations of Agility Health, Inc. (TSXV: AHI) (“Agility Health”). The transaction, which is expected to close in February 2018 and is subject to customary closing conditions and certain regulatory approvals, would add, among other things, more freestanding outpatient physical therapy clinics, a contracted therapy business, and proprietary clinic management software (“AgileRPM”), to Alliance PT’s portfolio.
The agreement stipulates that Alliance PT will acquire 100% of the membership interests in Agility Health, LLC, the Grand Rapids, Michigan-based U.S. operations of Agility Health, for a total transaction value of $45 million. Agility Health’s U.S. division operates over 50 outpatient or on-site physical therapy clinics, and also provides contract rehabilitation services to over 90 hospitals, inpatient rehabilitation units, long-term care facilities, and industrial worksites across 21 states. Agility Health is one of the few healthcare operators in the country providing the most key services of the post-acute continuum of care.
“We are glad to have the opportunity to partner with Agility Health’s exceptional clinicians to provide vital physical therapy and rehabilitation services in many communities around the country,” said Mark Andrzejewski, CEO of Alliance Physical Therapy Partners. “AgileRPM, the electronic health records software at the core of the Agility Health operations, would help us efficiently treat and process more patients across all of our locations without sacrificing our commitment to high-quality patient care.”
Following the acquisition, Alliance PT would provide rehabilitation services to over 165 physical therapy locations in 25 states. In addition, Alliance PT would be able to leverage Agility Health’s corporate infrastructure to provide a suite of support services to its national footprint of clinics, including and without limitation billing, revenue cycle management, payroll, compliance, recruiting, and marketing.
“At a time when the demand for outpatient rehabilitation in this country is steadily growing, the expansive suite of resources and support we offer through Alliance PT would empower the clinics under Agility Health’s U.S. umbrella to streamline and strengthen their businesses,” said Dotty Bollinger, Managing Partner with Alliance PTP* responsible for the firm’s Healthcare Investments. “We will continue to seek operating partners with a solid track record of delivering high-value physical therapy and preventative care treatments.”
“The addition of Agility Health’s U.S. platform would give Alliance PT a strong foothold in the Midwest, which, coupled with flexible capital from Alliance PTP* and an integrated corporate infrastructure, would allow Alliance PT’s management to scale both organically and through acquisitions,” said Shaun Khubchandani, Vice President with Alliance PTP* focusing on the firm’s Healthcare Investments.
Livingstone Partners served as financial advisor to Agility Health. Arent Fox LLP served as legal advisor to Alliance PT and Alliance PTP*.
About Alliance Physical Therapy Partners
Alliance Physical Therapy Partners is an affiliate of Alliance PTP*, LLC focused on acquiring private physical therapy practices across the U.S. to provide practice owners the opportunity to expand their footprint while receiving operational guidance and financial support. The Alliance Physical Therapy Partners team includes former private practice owners, direct marketing professionals and operations experts who have experience running and growing successful healthcare organizations. For more information, visit www.allianceptp.com.
About Alliance PTP*, LLC
Alliance PTP* is a New York-based alternative asset management firm focusing on acquiring income-producing private companies. Alliance PTP* seeks to provide its portfolio companies with the strategic planning, managerial insight, and capital needed to enable strong businesses to achieve the next level of growth and profitability. Alliance PTP* has over $1.5 billion in assets under management[i] and has acquired or invested in more than 160 portfolio companies. For more information, please visit www.gpb-cap.com.
[i] Which is different and distinct from Alliance PTP*’s “Regulatory AUM.