- Case Studies
HeadquartersOak Brook, IL
Athletico Management Holdings, LLC ("Athletico") was a leading physical therapy business offering rehabilitation, outreach, and fitness services. The business was founded in 1991 by CEO Mark Kaufman, a licensed physical therapist and certified athletic trainer. Athletico has facilities across the Midwest and employs a team of specialists, which includes physical, and occupational therapists, certified athletic trainers, personal trainers, strength and conditioning specialists and massage therapists. In addition to facility-based rehabilitation services, Athletico provided athletic training, physical and occupational therapy, and fitness services through more than 180 affiliations, including high schools, colleges, and several major sports teams.
In late 2013, Harvest developed this investment opportunity on a proprietary basis. Harvest had identified the outpatient physical therapy sector an attractive niche within healthcare services because it had a large and fragmented market, superior de novo growth opportunity, and an attractive reimbursement profile. Prior to investing, Harvest conducted significant due diligence reviewing many physical therapy businesses.
Harvest Partners Investment
In May 2014, Harvest led the recapitalization of Athletico in partnership with management. To fund the acquisition, Harvest arranged the debt financing, including a revolver and term loan. In addition, Harvest underwrote and syndicated co-investment capital.
- Large, growing, fragmented physical therapy industry
- Consistent performance at the clinic level
- Favorable payor mix
- Proven business strategy, with multiple opportunities for growth
- Powerful history of growth and high free cash flow generation provides downside protection
- Management team focused on clinical excellence
- Implemented M&A capabilities to transform Athletico from a Chicago-focused provider of physical therapy into a diversified super-regional platform
- Built dedicated de novo team, expanding annual openings more than four-times
- Improved infrastructure to make the platform scalable
- Closed transformative acquisition, more than doubling the size of the business
- Sold to BDT Capital in December 2016