Pharos Capital Group has acquired a control equity interest in MOTION PT Holdings, a provider of physical therapy and occupational therapy services in New York.
MOTION was formed through the combination of Brooklyn-based MetroSportsMed with Manhattan-based STAR Physical Therapy. MetroSportsMed was established in 1995 by David Menche, MD. The company combined with STAR Physical Therapy in 2015 to form MOTION PT Holdings. The combined company has 165 employees and is headquartered in Brooklyn with 10 locations in Brooklyn, Manhattan and Long Island (www.metrosportsmed.com) (www.starphysicaltherapy.com). The company will continue to use the MetroSportsMed and STAR brands.
Dr. Menche will become Chairman of MOTION and Edward Miersch of MetroSportsMed will become the company’s President and CEO. Michael Fox of STAR Physical Therapy becomes MOTION’S Chief Clinical Director and Benjamin Gelfand will be the Chief of Clinical Services.
The day-to-day operations of the company will be led by Mr. Miersch, who has decades of experience as an operator in the physical therapy industry. He will also be responsible for acquiring and consolidating other physical therapy businesses both within New York and in other geographies.
“Pharos has unique experience with underserved markets and mid-sized healthcare businesses, and we are delighted to be working with Dr. Menche, Ed Miersch, and the MOTION management team to find bolt-on acquisition opportunities that will help the platform build the premier physical therapy network,” said Jim Phillips, Partner at Pharos.
“As hospitals across the country look to defray costs, we believe MOTION can capitalize on the movement by healthcare systems to outsource physical therapy services to expert third party providers,” said Pharos Principal Joseph Acevedo. “MOTION is well positioned to take advantage of this trend and expand its network.”
Pharos Capital Group invests $25 million to $50 million in companies seeking later stage funding for internal growth, acquisitions, management buyouts or recapitalizations. The firm invests across many sectors but has a particular interest in healthcare and business services. Pharos has offices in Dallas and Nashville (www.pharosfunds.com).
The investment in MOTION marks the third portfolio investment from Pharos Fund III and follows Pharos’ January 2014 acquisition of behavioral health services provider Seaside Healthcare and the May 2014 acquisition of Employee Benefit Solutions, a provider of healthcare cost containment and wellness programs.
Investment bank Livingstone Partners (www.livingstonepartners.com) was the financial advisor to MOTION.
2015 PEPD • Private Equity’s Leading News Magazine • 6-29-15
