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Gryphon Investors acquires PRN

Gryphon Investors (Gryphon), a middle-market private equity firm based in San Francisco, CA, has acquired Physical Rehabilitation Network (PRN) from Silver Oak Services Partners (Silver Oak). 

Silver Oak will make an investment in the newly recapitalised company, and PRN’s management team will remain with the Company and retain an equity stake as well. This transaction marks Gryphon’s third investment in the physical therapy category after successful earlier investments in Accelerated Rehabilitation and CORA Physical Therapy. Terms of the deal were not disclosed.
Kevin Blank, Gryphon Operating Partner to Gryphon’s Healthcare Group, says: “Physical therapy is a USD36 billion industry that is increasingly viewed as preventive care, supported by payors looking to make sure diagnostic expense and more invasive treatments are appropriate. We believe the physical therapy sector will experience more growth as active people age and require attention to injuries, but increasingly turn away from pharmaceutical treatment. At the same time, new regulations are improving patients’ direct access to care, making treatment faster and less administratively cumbersome. These drivers make continued investment in the sector attractive.” 
Luke Schroeder, Gryphon Deal Partner and Co-Head of Gryphon’s Healthcare Group, says: “PRN has a unique joint venture business model that allows its physical therapist partners to share in the business’s upside while remaining deeply committed to providing top-quality care. Over the past few years, the Company has focused on accelerating strategic growth, including health system partnerships, and investing in a scalable infrastructure, while building a diversified payor mix and widening its geographic footprint. We see multiple avenues for continued organic and acquisitive growth for the PRN platform.”
“We are extremely proud of our partnership with the PRN management team and the Company’s track record of growth,” says Dan Gill, Managing Partner at Silver Oak. “We are excited to reinvest in PRN, and believe the Company is well positioned to capitalise on its multidimensional growth strategy while continuing to provide exceptional quality of care.” 
Gupta adds: “We look forward to this next chapter of growth with the Gryphon and Silver Oak teams to broaden our service offerings in the communities we serve, attract more patients, and further hone our partnership model. We have built our business by supporting our clinicians through focused efforts on training, compliance, strict quality of care standards, and patient-centred service, and we expect to continue to see our success measured by patient outcomes and overall satisfaction.”
Jefferies & Company acted as financial advisor to Gryphon, and Houlihan Lokey was the financial advisor to PRN. Kirkland & Ellis acted as legal advisor to Gryphon. Kirkland & Ellis and Waller Lansden Dortch & Davis acted as legal advisors to PRN.

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