U.S. Physical Therapy Announces Acquisition

Rhea-AI Summary

U.S. Physical Therapy, Inc. (USPH) has announced the acquisition of an eight-clinic physical therapy practice for $10.3 million, acquiring 65% equity. The practice generates over $7.3 million in annual revenue and has approximately 65,000 patient visits yearly. CEO Chris Reading emphasized the company's commitment to partnering with motivated entities to foster growth and scalability. Founded in 1990, USPH operates 575 outpatient clinics across 39 states, specializing in orthopedic and sports-related injuries, among other services.

Positive

• Acquisition of eight clinics expected to enhance market presence and revenue streams.
• The acquired practice generates over $7.3 million in annual revenue.

Negative

• Acquisition costs amounting to $10.3 million could strain cash reserves.

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 an acquisition of an eight-clinic physical therapy practice.

USPH acquired 65% of the equity interests of the physical therapy practice with the practice’s founder and owners retaining 35%. The purchase price was $10.3 million. The business generates more than $7.3 million in annual revenue and has approximately 65,000 patient visits per year.

Chris Reading, Chief Executive Officer, stated, “We continue to attract great partners and this current opportunity is no different. We have a terrific group of highly motivated partners whom we are excited to help grow and scale forward.”

About U.S. Physical Therapy, Inc.

Founded in 1990, U.S. Physical Therapy, Inc. operates 575 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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210701005140/en/

FAQ

What is the significance of the USPH acquisition?

The acquisition enhances USPH's market presence by adding eight clinics and increasing revenue potential.

How much did USPH pay for the acquisition?

USPH paid $10.3 million for the acquisition of the eight-clinic practice.

What revenue does the acquired practice generate?

The acquired practice generates over $7.3 million in annual revenue.

What percentage of equity did USPH acquire in the new practice?

USPH acquired 65% of the equity interests in the practice.

How does this acquisition affect USPH's growth strategy?

This acquisition aligns with USPH's strategy to grow and scale through partnerships, enhancing their clinic network.