A sale process for THL Partners’ ProPT is well underway, while Pharos Capital Group’s Motion PT Group recently hit the auction block, Axios reports.
The Northeast physical therapy arena, home to both Melville, New York-based ProPT and Brooklyn-headquartered Motion, remains highly fragmented and ripe for consolidation.
A number of smaller PT assets that are single-digit EBITDA or have a single-state presence are anticipated to come to market soon, presenting what is perceived to be a large growth runway via M&A.
The Jefferies-run auction for THL’s ProPT is in its second round, with the next round of bids poised for early August.
ProPT’s actual trailing EBITDA is around $22 million to $25 million, sources say, noting the company’s high leverage adds complexity to getting a deal done.
Still, ProPT has a regional scale that appeals to potential buyers, with services offered throughout the New York metro area, New Jersey, Connecticut, Massachusetts and New Hampshire.
Separately, Pharos just launched a sale process for Motion PT via Livingstone Partners, sources say.
The company expects to produce approximately $18 million in 2022 pro forma adjusted EBITDA, based upon pending add-on acquisitions as well as prevailing visit volumes and reimbursement rates.
Motion’s clinic network spans New York, Connecticut, Maryland and Massachusetts. Read more.
