physical therapy services

New Harbor Sells PT Solutions

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New Harbor Capital has sold PT Solutions to Lindsay Goldberg. New Harbor acquired PT Solutions through its first fund, New Harbor Capital Fund I LP, in December 2013.

PT Solutions is a provider of physical therapy services through stand-alone, outpatient physical therapy clinics, hospitals, physician groups and other partners. The company’s services include physical, occupational and speech therapy, sports medicine, industrial rehabilitation and medical fitness. PT Solutions has over 140 locations in 12 states and is headquartered in Atlanta (www.ptsolutions.com).

During New Harbor’s term of ownership, PT Solutions recorded a revenue CAGR of 24% by opening more than 70 hospital satellite and private de novo locations, expanding into multiple new markets, completing seven add-on acquisitions, and doubling its number of hospital contracts.  The management team was expanded to support this growth and the overall PT Solutions team grew by almost 5x.

“The leadership New Harbor provided has elevated our business to another level, growing revenue and locations dramatically over the last 4 plus years,” said Dale Yake, Founder and CEO of PT Solutions.  “We significantly increased every performance metric in the business and are poised for considerable growth as we move into the next chapter of our evolution in partnership with Lindsay Goldberg.”

“We have greatly valued our relationship with Dale and the management team over our 4 plus years of partnership,” said Jocelyn Stanley, a Partner at New Harbor.  “We shared a true spirit of collaboration, aligned goals and a growth-mindset which fostered extraordinary success that exceeded our expectations.”

New Harbor invests from $10 million to $40 million of equity in companies that have from $3 million to $15 million of EBITDA. Sectors of interest include growth-oriented business services companies with an emphasis on the healthcare and education industries. New Harbor was co-founded in February 2013 by Tom Formolo and Ed Lhee, long-time partners at CHS Capital, and is based in Chicago (www.newharborcap.com).

Lindsay Goldberg, the buyer of PT Solutions, manages $13 billion of equity capital and is focused on partnering with family-owned and entrepreneur‐led businesses seeking a partner to help actively build their businesses. The firm is based in New York (www.lindsaygoldbergllc.com).

Jefferies was the financial advisor to PT Solutions.

© 2018 Private Equity Professional | June 13, 2018

Gryphon Acquires CORA Health Services

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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