Physiotherapy Associates of Chester County announced yesterday that they have entered into a deal with Select Medical Corp to be acquired for $400 million, writes the Philadelphia Business Journal.
As a national provider of outpatient physical rehabilitation care, Exton based Physiotherapy Associates operates over 500 outpatient physical rehabilitation centers across the United States, with close to a dozen of them in this region. Among the services provided by the facilities are general orthopedic care, spinal care, neurological rehabilitation, as well as orthotics and prosthetics services.
Physiotherapy Associates became one of the largest private outpatient rehab centers operators in the nation after they merged with Benchmark Medical nearly ten years ago. Under the deal, Chicago based Water Street Healthcare Partners, the private equity firm, became the majority owner of the combined firms, but the terms of the deal were not disclosed.
The deal is expected to close during the first half of 2016, subject to a number of regulatory closing conditions which include clearance under the amended Hart-Scott-Rodino Antitrust Improvements Act of 1976.
The new owner of Physiotherapy Associates, Mechanicsburg based Select Medical Corp., is a subsidiary of Select Medical Holding Corp. and is already well known in the region as the parent company of NovaCare Rehabilitation, based in King of Prussia.
In addition to operating a large network of outpatient physical therapy centers, NovaCare has the naming rights for the Philadelphia Eagles training facility, and has its corporate offices in South Philadelphia.
In total, Select Medical has 110 long-term acute-care hospitals as well as 17 acute medical rehabilitation hospitals in 28 states under its umbrella, in addition to the 1,033 outpatient rehabilitation clinics located in 31 states and D.C.
Select Medical was represented by attorneys from Dechert’s Philadelphia office during the transaction, while Houlihan Lokey acted as the financial advisor for Physiotherapy.
