Q1-2019 Rehabilitation Update
Rehabilitation sector transaction activity remained strong in the first quarter of 2019, highlighted by Calera Capital’s recapitalization of MA-based Bay State Physical Therapy. This transaction represents Calera Capital’s first investment into the rehabilitation sector and will serve as a platform deal. Provident expects Calera to aggressively grow the business by acquiring local practices with the goal of positioning Bay State as a leading outpatient rehabilitation services provider in the greater New England market.
In 2019, Provident expects a similar mix to 2018 in terms of private equity platform and add-on activity, with tuck-in acquisitions representing the bulk of the closed deals in the outpatient market. There is also the likelihood of another PE-backed group merging with a larger PE-backed consolidator similar to the Upstream Rehabilitation transaction with Drayer Physical Therapy Institute in January 2018. Moving into the second quarter of 2019, Provident expects overall physical therapy sector consolidation activity to continue at a rapid pace.
To print and download the full Rehabilitation Update report, please click below…