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Alliance PT to acquire Agility Health’s US operations

Physical Therapy Management (Alliance PT), an affiliate of GPB Capital and Alliance Physical Therapy Partners, is to acquire the US operations of Agility Health.

The transaction, which is expected to close in February 2018 and is subject to customary closing conditions and certain regulatory approvals, would add, among other things, more freestanding outpatient physical therapy clinics, a contracted therapy business, and proprietary clinic management software (AgileRPM), to Alliance PT’s portfolio. 
The agreement stipulates that Alliance PT will acquire 100 per cent of the membership interests in Agility Health, LLC, the Grand Rapids, Michigan-based US operations of Agility Health, for a total transaction value of USD45 million. Agility Health’s US division operates over 50 outpatient or on-site physical therapy clinics, and also provides contract rehabilitation services to over 90 hospitals, inpatient rehabilitation units, long-term care facilities, and industrial worksites across 21 states. Agility Health is one of the few healthcare operators in the country providing most key services of the post-acute continuum of care.
“We are glad to have the opportunity to partner with Agility Health’s exceptional clinicians to provide vital physical therapy and rehabilitation services in many communities around the country,” says Mark Andrzejewski, CEO of Alliance Physical Therapy Partners. “AgileRPM, the electronic health records software at the core of the Agility Health operations, would help us efficiently treat and process more patients across all of our locations without sacrificing our commitment to high-quality patient care.”
Following the acquisition, Alliance PT would provide rehabilitation services to over 165 physical therapy locations in 25 states. In addition, Alliance PT would be able to leverage Agility Health’s corporate infrastructure to provide a suite of support services to its national footprint of clinics, including and without limitation billing, revenue cycle management, payroll, compliance, recruiting, and marketing.
“At a time when the demand for outpatient rehabilitation in this country is steadily growing, the expansive suite of resources and support we offer through Alliance PT would empower the clinics under Agility Health’s US umbrella to streamline and strengthen their businesses,” says Dotty Bollinger, Managing Partner with GPB Capital responsible for the firm’s Healthcare Investments. “We will continue to seek operating partners with a solid track record of delivering high-value physical therapy and preventative care treatments.”
“The addition of Agility Health’s US platform would give Alliance PT a strong foothold in the Midwest, which, coupled with flexible capital from GPB Capital and an integrated corporate infrastructure, would allow Alliance PT’s management to scale both organically and through acquisitions,” said Shaun Khubchandani, Vice President with GPB Capital focusing on the firm’s Healthcare Investments.
Livingstone Partners served as financial advisor to Agility Health. Arent Fox LLP served as legal advisor to Alliance PT and GPB Capital.

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