U.S. Physical Therapy Announces Acquisition of Industrial Injury Prevention Services Company
December 01 2021 - 7:00AM
Business Wire
Substantially Increases the Company’s
Industrial Injury Prevention Services Revenues
U.S. Physical Therapy, Inc. ("USPH" or the “Company”) (NYSE:
USPH), a national operator of outpatient physical therapy clinics
and provider of industrial injury prevention services, today
announced the acquisition of a 70% ownership interest in a leading
provider of industrial injury prevention services. The acquired
company also provides and manages inpatient and outpatient physical
therapy services to hospitals and their respective ancillary
units.
The business provides human performance solutions, combining
ergonomic, injury prevention, physical rehabilitation, onsite
medical and performance maximization services to its clients, many
of which are Fortune 500 companies. The business generates
approximately $27.0 million in annual revenue at a margin of
approximately 20%; in addition, it has approximately $1.7 million
in pretax earnings related to the acquired company’s 49% ownership
interest in a joint venture providing physical therapy services to
hospitals and their respective ancillary units. USPH acquired its
interest in the acquired company at a purchase price of
approximately $63.2 million.
The founders will continue to have a 30% ownership interest and
maintain their roles as executive leaders in the acquired company;
they also will continue to own a separate company that provides
physical therapy and rehabilitation services to hospitals and other
ancillary providers in a distinct market area. As part of the
transaction announced today, USPH and the founders agreed to the
right to a future purchase of such company.
Chris Reading, Chief Executive Officer, stated “We are happy to
be kicking off this new partnership with a very talented team. This
transaction provides our Company with an additional vehicle for
continued growth in the industrial injury prevention market,
expanding the scope of our target market and further growing our
product continuum. These IIP services play a critical role in
reducing musculoskeletal injuries in the workplace, enhancing
employee engagement and, at a time when competition for employees
is fierce, helping to create a better all-around workplace.
Additionally and importantly, our new partners also have a strong
service platform partnering with hospitals to manage and grow their
rehabilitation opportunities.”
Carey Hendrickson, Chief Financial Officer, stated, “Today’s
announced acquisition further diversifies our revenue into the
industrial injury prevention services business and provides us with
another excellent revenue growth engine. We used our revolving
credit facility to accomplish the purchase, and simultaneously
exercised its accordion feature to increase the limit on our
facility from $125 million to $150 million.”
About U.S. Physical Therapy,
Inc.
Founded in 1990, U.S. Physical Therapy, Inc. operates 584
outpatient physical therapy clinics in 39 states. The Company's
clinics provide preventative and post-operative care for a variety
of orthopedic-related disorders and sports-related injuries,
treatment for neurologically-related injuries and rehabilitation of
injured workers. In addition to owning and operating clinics, the
Company manages 35 physical therapy facilities for unaffiliated
third parties, including hospitals and physician groups. The
Company also has an industrial injury prevention business which
provides onsite services for clients’ employees including injury
prevention and rehabilitation, performance optimization, post-offer
employment testing, functional capacity evaluations, and ergonomic
assessments.
More information about U.S. Physical Therapy, Inc. is available
at www.usph.com. The information included on that website is not
incorporated into this press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20211201005281/en/
U.S. Physical Therapy, Inc. Carey Hendrickson, Chief Financial
Officer email: chendrickson@usph.com
Chris Reading, Chief Executive Officer (713) 297-7000
Three Part Advisors Joe Noyons (817) 778-8424
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