An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
U.S. Physical Therapy (USPH) announced its acquisition of a 70% interest in a leading industrial injury prevention services provider for approximately $63.2 million. The acquired company generates around $27 million in annual revenue with a 20% margin and adds $1.7 million in pretax earnings from a joint venture. This acquisition diversifies USPH's revenue and expands its services for Fortune 500 clients, enhancing their workplace injury prevention capabilities. The founders retain a 30% stake and will continue to lead the company, ensuring continuity and expertise.
Positive
Acquisition diversifies revenue into industrial injury prevention services.
Expected annual revenue of $27 million and 20% profit margin from acquired company.
Continued leadership from founders ensures operational stability.
Negative
Acquisition cost of approximately $63.2 million may increase financial strain.
Dependence on successful integration to realize projected revenue growth.
Substantially Increases the Company’s Industrial Injury Prevention Services Revenues
HOUSTON--(BUSINESS WIRE)--
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.
