OMERS Private Equity has agreed to sell Accelerated Rehabilitation Centers to Harvest Partners-backed Athletico Physical Therapy.
The deal’s financial terms were not disclosed, however one source put the value at US$450 million. U.S. private equity firm Harvest, which invested in the Chicago-based Athletico earlier in 2014, will contribute to funding.
OMERS PE is the investment arm of the Ontario Municipal Employees Retirement System (OMERS). OMERS was not available for comment on this story prior to publication.
The acquisition includes all of Accelerated’s brands, such as ProRehab and Newsome Physical Therapy, and its network of outpatient rehabilitation service centers. Since 1989, the company has focused on support for patients recovering from sports and workplace injuries, surgeries and other conditions.
The combination of the two therapy services platforms will create one of the largest providers operating in the U.S. Midwest, according to a statement issued by the companies and Harvest. The new entity will serve patients in 366 locations in eight states.
OMERS partnered with management in its purchase of Accelerated in July 2011. The deal was OMERS’ second in the rehabilitation industry. Earlier that same year, it bought Toronto’s CBI Health Group from Canadian private equity firm Callisto Capital.
During the period of OMERS’ investment, Accelerated undertook several add-on transactions. They included its buy of Newsome, Premier Physical Therapy and WorkSport Rehabilitation Services in 2012, and Momentum Physical Therapy in 2013.
Accelerated’s acquisition by Athletico will mark its third PE ownership change since 2008 when U.S. private equity firm Gryphon Investors bought it in a recapitalization deal. It was Gryphon that sold the company to OMERS three years later.
Accelerated is OMERS’ second disclosed exit so far this year. In February, it sold Maxxam Analytics International, a Canadian analytical laboratory services provider, to France’s Bureau Veritas SA for $650 million.
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