ATI Physical Therapy, one of the nation’s largest physical therapy chains with holdings in Nevada, is changing ownership.
Boston-based Advent International, a global private equity investor, agreed to purchase a majority ownership interest in Bolingbrook, Illinois.-based ATI Physical Therapy from KRG Capital Partners at the end of March.
ATI’s management team will retain a significant minority stake in the company and continue to lead ATI, Advent wrote in a statement announcing the deal, which is expected to close in the second quarter. Financial terms weren’t disclosed.
“ATI is a high-quality operator with best-in-class clinics, a strong leadership team and active de novo and acquisition strategies that we believe will enable it to grow by opening new ATI clinics and by being a primary consolidator in a fragmented industry,” the statement said. “We are pleased to have the opportunity to work with the ATI team to enhance the company’s leadership position in the highly attractive and dynamic outpatient physical therapy market.”
The agreement ends KRG’s holding of ATI for the second time. The private equity fund first purchased the company in 2005, selling it five years later to GTCR, a Chicago-based private-equity group. It bought it back in 2012.
ATI, founded in 1996, specializes in research-based physical therapy, workers’ compensation rehab and sports medicine. The company has 500 clinics in 19 states, including 11 sites in Southern Nevada.
The regional locations were acquired in the first quarter of 2015 after ATI purchased a local firm — Matt Smith Physical Therapy — to enter the Nevada market.
Under Advent’s agreement with KRG, Dr. Chris Krubert, an Advent operating partner, will sit on ATI’s board of directors. Krubert served for nearly a decade as chief executive officer of ApolloMD, an Atlanta-based health care professional services firm.