Gryphon Investors has acquired CORA Health Services, a provider of outpatient physical therapy services. CORA’s management team will remain in place and retain a minority equity interest in the company.
CORA Health Services provides outpatient physical therapy and general rehabilitation, worker’s compensation therapy, sports and auto injury rehabilitation, and rehabilitation for seniors. CORA operates more than 100 clinics in Florida, Michigan, and South Carolina and is headquartered in Lima, OH (www.corahealth.com).
The buy of CORA is Gryphon’s second foray into the physical therapy and rehabilitation sector. In April 2008, the firm simultaneously acquired Accelerated Rehabilitation Centers and OccuSport Physical Therapy. The combined company was sold in 2011 to OMERS Private Equity. “Following on our prior successful investment in this growing sector, we are excited to re-enter the category with an investment in CORA,” said Nick Orum, Gryphon’s President. “We look forward to partnering with CEO Dennis Smith and his team to further build the company into a premier regional physical therapy network.”
“Physical therapy is a $33 billion industry that remains highly fragmented and rife with opportunities for the right platform. We believe CORA, with its scalable infrastructure, full service clinics, and highly diversified payor mix, is poised to expand further through both de novo growth and accretive add-on acquisitions,” said Luke Schroeder, a principal in Gryphon’s Healthcare Group.
Gryphon Investors makes leveraged acquisitions and growth investments in middle-market companies. The firm invests from $35 million to $100 million of capital in companies with sales ranging from $50 million to $500 million. Sectors of interest include business services, consumer and retail, automotive, chemical, general manufacturing, health care and hotels. Gryphon is based in San Francisco (www.gryphoninvestors.com).
New York-based Cain Brothers (www.cainbrothers.com) was the financial advisor to Gryphon, and Raymond James (www.raymondjames.com) advised CORA. Kirkland & Ellis (www.kirkland.com) acted as the legal advisor to Gryphon, and Shumaker, Loop & Kendrick (www.slk-law.com) was the legal advisor to CORA.
© 2016 Private Equity Professional • 7-8-16
