Lindsay Goldberg scoops up New Harbor’s PT Solutions

  • Deal follows Lindsay Goldberg’s return to HC services via Sept. deals for Women’s Care Florida, Refresh Mental Health
  • Atlanta PT company operates unique hospital-partnership model
  • Sell-side adviser: Jefferies

Lindsay Goldberg is extending its tear into healthcare services, taking home the win for New Harbor Capital’s PT Solutions, Buyouts has learned.

A pre-merger notification on the SEC website initially disclosed that Lindsay Goldberg, through its fourth fund, had been granted FTC approval for the transaction.

The sponsor’s latest fund collected $3.5 billion in December 2015.

While the deal has not been formally announced, the Atlanta physical therapy company commanded a valuation of around $250 million, one of two sources that confirmed the transaction said.

The deal comes after Chicago’s New Harbor launched a private equity-focused sales process for the asset last fall.

Despite significant strategic interest in PT Solutions, corporate buyers were excluded from the process because the co-founders wanted to roll over an equity stake, Buyouts previously reported.

The Wall Street Journal initially reported in late September that Jefferies had been hired to explore strategic alternatives.

The deal with Lindsay Goldberg came to fruition post-process, one of the sources said.

New Harbor’s investment in PT solutions dates to December 2013. Co-founders Dale Yake and Rocky Barnes, who serve as CEO and president, respectively, retained a minority stake.

PT Solutions operates a differentiated model in that it partners with hospitals through either an in-hospital management agreement, the development of satellite clinics and/or a joint-venture agreement.

Through these partnerships, it provides health systems with management and development of hospital-based outpatient rehabilitation, satellite clinics, inpatient rehabilitation and acute-care services.

New Harbor says in a case study on its website that PT Solutions nearly doubled in size during the first year following its investment. The provider has expanded through a combination of new-clinic openings, additional hospital partnerships and nine add-on acquisitions.

PT Solutions’ compounded annual growth rate over the past five years is 24 percent, New Harbor says.

The provider includes 100-plus locations across Alabama, Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, North Carolina, South Carolina, Tennessee and Virginia.

New Harbor Partners Tom Formolo and Ed Lhee, alongside Principal Jocelyn Stanley, served as board members of PT Solutions in connection with the investment.

Lindsay Goldberg made a return to the healthcare service space in September, when it invested in obstetrics company Women’s Care Florida and Refresh Mental Health, a provider of mental health and eating disorder treatment.

The pair of new platform deals came after the New York PE firm exited Ambulatory Services of America, a provider of renal dialysis and radiation oncology services, in January 2013.

Lindsay Goldberg’s other healthcare-related investments include Second Spring Healthcare Investments, a skilled nursing facility REIT, and Trygg Pharma Group AS, which develops marine-based omega-3 pharmaceutical products.

New Harbor Capital declined comment. Lindsay Goldberg didn’t immediately return requests for comment.

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