ATI Physical Therapy, which is owned by private equity firm KRG Capital Partners, has retained investment bank Jefferies to conduct a sale of the company, according to two industry bankers. The Deal’s Laura Cooper exclusively reported on the auction process. The Bolingbrook, Ill.-based provider of physical therapy services, whose parent is ATI Holdings, is said to have Ebitda north of $100 million and is likely to pull in a multiple of at least 10 times in a sale. That would place a sale price at $1 billion on the low end. Books for the sale are likely to go out this week. Greg Steil, who serves as executive chairman, founded the company in 1996. It has 470 locations in 16 states, with the largest concentrations of therapy practices in Illinois and Indiana. It is the nation’s largest physical therapy practice under one brand name. Joining ATI on the auction block is Charterhouse Equity Partners-backed physical therapy provider Upstream Rehabilitation. Upstream has retained Harris Williams & Co. for a sale of itself. First round bids for the company were due last week, according to one industry banker. Upstream has Ebitda of around $25 million. An industry banker noted that the company is likely to bring in a multiple of 10 times Ebitda as physical therapy has been a popular spot in healthcare for deals.
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