Agility Health Inc. will sell its physical therapy operations in the U.S. to a Tampa, Fla.-based management company in a deal valued at $45 million.
The sale to Alliance Physical Therapy Management LLC, a wholly-owned subsidiary of Alliance Physical Therapy Partners LLC, which has 16 locations in six states, should close this month. The Grand Rapids-based Agility Health had been looking since early 2017 to restructure millions in debt.
“Selling Agility Health’s U.S. operations facilitates the restructuring of our capital structure in order to strengthen the company’s financial position for sustained future growth,” Agility Health Chairman and CEO Pierre Gagnon said in a statement.
Agility Health operates 84 outpatient and on-site rehabilitation locations in 16 states and provides physical therapy under contract to 36 hospitals and inpatient rehabilitation units and 37 nursing homes, long-term care facilities and other locations in 11 states. The company also owns 12 foot care clinics in Canada acquired through the 2017 deal for the Hamilton, Ontario-based Medic Holdings.
Under terms of the deal with Alliance Physical Therapy Partners, a portfolio company of New York private equity firm GPB Capital Holdings LLC, $25.0 million from the sale will go to investment firm Alaris USA Inc., a unit of Canadian-based Alaris Royalty Corp. that holds B and C stock in Agility Health. Alaris first invested in Agility in 2012 in a deal to recapitalize the company.
Agility will use about $1.3 million of the proceeds from the sale as working capital to grow Medic Holdings.
Editor’s note: This story has been updated to correct a typo in the name of GPB Capital Holdings LLC.