GPB Capital Makes First Foray into Healthcare
- On August 24, 2017
Purchases of Four Physical Therapy Practices are Part of GPB Capital’s Focus on Private Equity Opportunities that Involve Bringing Innovative Medical Treatment Directly to Consumers
New York – August 24, 2017 – GPB Capital has established a presence in the healthcare industry through acquisitions of four physical therapy center operators: Back in Motion, Rehab Access, Arrow Physical Therapy & Rehabilitation, and Whatcom Physical Therapy.
“We are partnering with practice owners so they can maintain their autonomy while running their practices more efficiently and enhancing the innovative care available to their patients,” said Dotty Bollinger, Managing Partner with GPB Capital who is responsible for the firm’s Healthcare Services Strategy. “The acquisitions of Back in Motion, Rehab Access, Arrow Physical Therapy & Rehabilitation, and Whatcom Physical Therapy provide us with the opportunity to build a footprint spanning multiple markets across the nation, and work alongside these practices’ proven management teams to bring cutting-edge physical therapy treatment directly to patients.”
GPB Capital utilizes a novel acquisition arrangement to help established physical therapy practice operators achieve their next stage of growth and profitability. In exchange for majority ownership stakes, operators obtain access to a team of professionals at GPB Capital affiliate Alliance Physical Therapy Partners, who have many years of experience related to physical therapy practice acquisitions, recruitment, compliance, technology, direct-to-consumer marketing, and strategic growth. The Alliance Physical Therapy Partners team also provides managed payroll, benefits, workers’ compensation, and recruitment services, and assists practice operators with large-scale reimbursement negotiations with payers, which can lead to greater efficiency and profitability.
Back in Motion operates three outpatient physical therapy centers which treat approximately 700 patients per week around Portland, Maine. The company, which experienced 11.3% growth in patient numbers between 2015 and 2016, has built a strong community reputation through its broad network of referring physicians and regular local TV news segments. Alliance Physical Therapy Partners plans to implement standardized operational adjustments in order to increase cash flow. Terms of the acquisition, which closed on May 31, 2017, were not released.
Rehab Access operates two physical therapy clinics in the greater New Orleans metropolitan area. The firm currently employs eight physical therapists who handle about 650 patient visits per week. The management team at Rehab Access will help Alliance Physical Therapy Partners identify smaller physical therapy practices in the New Orleans market which could be added to the Alliance Physical Therapy Partners portfolio as tuck-in acquisitions. The lack of a significant corporate footprint in the physical therapy sector in the New Orleans region provides an opportunity for Alliance Physical Therapy Partners to grow its market share. Terms of the acquisition, which was finalized on June 14, 2017, were not released.
Arrow Physical Therapy & Rehabilitation operates three outpatient physical therapy clinics in northern New Jersey which average 682 patient visits per week. The company has been recognized by local newspapers and chambers of commerce for excellence, and was also named “Physical Therapy Rehabilitation Center of the Year” by NJBiz. Alliance Physical Therapy Partners will focus on making the firm’s billing and collections process more efficient, and enhancing its internal marketing program. Terms of the acquisition, which closed on July 13, 2017, were not released.
Whatcom Physical Therapy operates three outpatient physical therapy clinics in northwest Washington State, near the Canadian border. The three clinics together average 337 patient visits per week. Whatcom Physical Therapy also operates a fitness facility which could serve as a large source of referrals for the clinics in the future. Alliance Physical Therapy Partners has created a program to enhance the company’s billing and collection system as well as its scheduling management process, which will be implemented in the coming months. Terms of the acquisition, which closed on August 10, 2017, were not released.
GPB Capital focuses on acquiring mature, income-producing companies in recession-resilient sectors, including automotive retail, waste management, and managed IT. The firm also acquires established companies in industries that involve special situations and debt strategies. Back in Motion, Rehab Access, Arrow Physical Therapy & Rehabilitation, and Whatcom Physical Therapy are GPB Capital’s first healthcare portfolio companies, and additional acquisitions are expected to follow this year.
“We are grateful to be able to collaborate with Back in Motion, Rehab Access, Arrow Physical Therapy & Rehabilitation, and Whatcom Physical Therapy—through a unique acquisition structure—to empower these established physical therapy practices with the financial and strategic resources they need to continue to grow,” said Manuel Frederico Vianna, Managing Partner with GPB Capital. “This opportunity to help both physical therapy practitioners and patients in four different states is the ideal way for us to enter and increase our market share in a new sector.”
About GPB Capital Holdings, LLC
GPB Capital is a New York-based alternative asset management firm focusing on acquiring income-producing private companies. GPB Capital provides their portfolio companies with the strategic planning, managerial insight, and capital needed to enable strong businesses to achieve the next level of growth and profitability. GPB Capital has over $1.2 billion in assets under management[i] and has acquired or invested in more than 100 portfolio companies. For more information, please visit www.gpb-cap.com.
[i] Which is different and distinct from GPB Capital’s “Regulatory AUM.”