KRG Capital Fund IV, L.P. portfolio company ATI Physical Therapy completed its sale to Advent International. Jeffries and UBS served as financial advisors and Hogan Lovells served as legal advisor to ATI.
ATI Physical Therapy (“ATI” or the “Company”), a KRG Capital Fund IV, L.P. (“KRG”) portfolio company and a leading provider of comprehensive outpatient rehabilitation services, completed its sale to Advent International (“Advent”) on May 10, 2016.
KRG partnered with ATI management for the second time in December 2012 after previously supporting the Company from late 2005 through 2010. “The ATI and KRG partnership proved once again to be an effective combination,” said Steve Neumann, a Partner with KRG Capital. “We are very pleased with our outcome and believe ATI is poised to continue its impressive track record as the industry leader in outpatient rehabilitation.” The sale of ATI represents the sixth exit in KRG’s Fund IV.
Through the KRG investment period, the Company expanded from 200 to 500 clinics, extending the reach of its superior customer service and patient outcomes to 19 states by executing the Company’s combined greenfield and acquisition strategy. ATI’s CEO, Dylan Bates, added, “The partnership with KRG positioned the Company well to establish the leading brand and platform within the Physical Therapy industry. The ATI team is excited about its new partnership with Advent and looks forward to continuing on its current path of building a special healthcare services business.”
Jefferies and UBS served as financial advisors and Hogan Lovells served as legal advisor to ATI on the transaction.
ATI Physical Therapy is a privately held, nationally recognized healthcare company, specializing in outpatient rehabilitation and adjacent healthcare services. With a focus on delivering a remarkable experience to every patient, every day, ATI has more than 500 locations from coast to coast. ATI was named “Best Physical Therapy Practice in the Nation” by ADVANCE magazine, and was one of the first physical therapy companies in the country to achieve URAC Core Accreditation, a mark of distinction that recognizes its commitment to quality healthcare. Based in Bolingbrook, Illinois, ATI gives back to communities across the country through the ATI Foundation, a non-profit established by ATI, which has provided more than $3 million in resources and funding to children with physical impairments. For more information on ATI Physical Therapy, and a complete list of clinic locations, services and the ATI Foundation, please visit ATIpt.com.
About KRG Capital Partners:
Founded in 1996, KRG is a Denver-based private equity buyout firm with $4.5 billion of cumulative capital either deployed or available for future investment, which includes approximately $1.2 billion deployed since inception by institutional equity co-investors. The Firm seeks investment opportunities for its partners where KRG can work in concert with owners and operating managers who are committed to expanding their companies and becoming industry leaders. The result is a partnership that focuses on creating a significantly larger enterprise through a combination of internal growth and complementary add-on acquisitions. More information on KRG is available at www.krgcapital.com.
Steve Neumann, KRG Partner
Blair Tikker, KRG Partner