After several active M&A months, the Rehabilitation market has cooled. In January, Rehabilitation M&A activity hit a several month high with 16 announced deals. When compared to December 2021, which saw 13 deals and November 2021, with 12 deals, January 2022 does not seem like a large increase, but it is. According to LevinPro HC, February 2022 saw three announced deals; March saw nine deals; April saw eight deals; and May, so far, has only seen four deals. In total, there have been 40 Rehabilitation deals announced this year.
One trend that is always worth noting is private equity activity in Rehabilitation. Out of the 40 deals, 27 of them have been done by private equity firms and/or their portfolio companies.
On May 18, Confluent Health, a portfolio company of Swiss-based private equity firm Partners Group, announced its acquisition of Progressive Physical Therapy marking Confluent Health’s fourth partnership in California and its sixth deal of 2022.
Confluent Health is a family of physical and occupational therapy companies transforming healthcare by strengthening private practices, developing highly effective clinicians, innovating new services and technology to improve the quality of care for patients and lowering costs via more effective treatment, workplace wellness and injury prevention.
Founded in 1977, Progressive Physical Therapy is a physical therapy practice with four locations across Southern California. This partnership allows Progressive PT access to Confluent Health’s system of management services, education and musculoskeletal health innovations. The terms were not disclosed. The acquisition is interesting to note because Confluent’s activity draws attention to how active many PE firms have been in the Rehabilitation sector, as well as many other sectors.
Another deal that was announced earlier this month was Therapy Partners Group, formally known as Golden Bear Therapy Partners, purchasing Fit Physical Therapy for an undisclosed amount. It is Therapy Partner Group’s second deal of 2022 and its first since changing names. Backed by Shore Capital, Therapy Partners Group was founded in 1991 and is committed to building the premier network of physical therapy and wellness services across the Western United States. The acquisition adds six clinics to Therapy Partner’s portfolio.
This partnership expands the reach of Fit Physical Therapy, allowing it to serve patients and communities and provides an opportunity to collaborate with a highly respected physical therapist-owned group.
Confluent Health and Therapy Group Partners are not the only active PE groups this year; Upstream Rehabilitation, backed by Revelstoke Capital Partners, has made three acquisitions, purchasing clinics in Virginia, Texas and Washington.
As the year goes on, we anticipate the number of PE firms being active in the Rehabilitation sector will only increase as this is a sector with lots of opportunity and a lot to gain. More information about the Rehabilitation sector and private equity acquisitions can be found on LevinPro HC.
