PennantPark Announces Sale of Pivot Health Solutions
MIAMI, Feb. 16, 2022 (GLOBE NEWSWIRE) -- PennantPark Investment Advisers, LLC (“PennantPark”), a leading middle-market investment platform, is pleased to announce the sale of its portfolio company, Pivot Health Solutions (“Pivot” or the “Company”), a premier provider of physical therapy, occupational health, and onsite corporate health services, to Athletico Physical Therapy (“Athletico”), a portfolio company of funds affiliated with BDT Capital Partners, LLC (“BDT”).
Founded in 2001, Pivot is one of the nation’s fastest growing physical therapy, occupational health, and onsite corporate health providers. Pivot has more than 250 physical therapy clinics throughout the Eastern region, 12 occupational health locations in Maryland and Delaware, and 150 onsite health clinics throughout the United States. Pivot offers patients individualized care through a full range of physical therapy services and specialty offerings. Pivot also operates a direct-to-employer business unit, Onsite Innovations, a unique and differentiated offering with its focus on prevention of employee injuries at an employer’s onsite location.
PennantPark has supported Pivot’s growth through both debt and equity capital. In 2019, PennantPark committed an additional $25 million of equity to recapitalize the business and started driving value creation as majority shareholder. PennantPark recruited Chris Throckmorton as Chief Executive Officer and a new leadership team to lead Pivot through an operational transformation. Pivot has achieved significant operational and financial improvements, while battling the challenges of the COVID-19 pandemic and maintaining an unwavering focus on providing best-in-class patient care. Under PennantPark’s stewardship, the Company has continued to expand offerings and footprint, and has experienced significant profitability growth. As a shareholder, PennantPark will continue to support the combined Company.
“We have been proud to partner with Pivot during the Company’s extraordinary transformation over the past two and a half years,” said Art Penn, founder and CEO of PennantPark. “We utilized our firm’s extensive experience in the healthcare sector, and committed substantial time and resources supporting Pivot’s growth through multiple stages. The outcome we achieved in partnership with Pivot’s leadership team and employees is an exciting success story. We wish them continued success as they embark on the next phase of their journey.”
“Pivot is a market leader in physical and occupational therapy with tremendous runway for continued growth,” José Briones, Partner at PennantPark, added. “We identified and partnered with a world-class management team to execute operational improvements, technology innovations and strategic expansion. Through organic growth initiatives, de novos and acquisitions, we successfully helped transform Pivot into a larger and more robust platform, and achieved a significant return on our investment. We look forward to the business’ continued success.”
Chris Throckmorton, current CEO of Pivot, will be the CEO of the combined Athletico and Pivot platform. “I’m honored to join Athletico and lead our combined company as we look to grow our impact in the communities we serve,” said Mr. Throckmorton. “Both Athletico and Pivot share many of the same values as well as a culture anchored in a passion for clinical excellence and delivering the highest quality care to patients. I look forward to continuing to build on the strong foundation both organizations have put in place to make physical therapy services accessible to more people and drive better health outcomes for our patients. A special thanks to PennantPark for their support and commitment in helping to shape Pivot’s success.”
Jefferies served as the financial advisor to PennantPark and Pivot. Goulston & Storrs, in collaboration with the healthcare regulatory team of Waller Lansden Dortch & Davis, served as counsel to Pivot, and Brown Rudnick served as counsel to PennantPark.
ABOUT PENNANTPARK INVESTMENT ADVISERS
PennantPark Investment Advisers, LLC is a leading middle-market credit platform, managing $5.7 billion of investable capital. Since its inception in 2007, PennantPark Investment Advisers, LLC has provided investors access to middle-market credit by offering private equity firms and their portfolio companies as well as other middle-market borrowers a comprehensive range of creative and flexible financing solutions. PennantPark Investment Advisers, LLC is headquartered in Miami and has offices in New York, Chicago, Houston, and Los Angeles.
ABOUT PIVOT HEALTH SOLUTIONS
Pivot Health Solutions is the parent company to Pivot Physical Therapy, Pivot Occupational Health, and Pivot Onsite Innovations. It is one of the nation’s fastest growing physical therapy, occupational health, and onsite corporate health providers. Compassionately committed to health and wellness, Pivot’s family of brands is focused on getting people back to normal activity, preventing injury, and staying fit where they work, live, and play. For more information, visit www.pivoths.com.
ABOUT ATHLETICO PHYSICAL THERAPY
Athletico Physical Therapy provides the highest quality orthopedic rehabilitation services to communities, employers and athletes. With its recent acquisition of Pivot Health Solutions, the company has nearly 8,000 employees across more than 900 locations throughout 25 states and the District of Columbia. Athletico is committed to our patients and referring physicians through our patient-centric focus, positive work environment, attention to quality and high standard of care. Athletico measures patient outcomes and satisfaction and is dedicated to continuous improvement. Athletico was named #1 Workplace in Chicago, “Best Physical Therapy Practice in the Nation” by ADVANCE magazine, Top Workplace in the Nation and has been recognized as a leader in employee volunteering and charitable giving. Our services include physical and occupational/hand therapy, workers’ compensation, women’s health therapy, concussion management and athletic training. For more information, or to schedule a free assessment in clinic or now online with our virtual free assessments, visit http://www.athletico.com and follow us on Twitter at @athletico.
ABOUT BDT CAPITAL PARTNERS
BDT Capital Partners provides family- and founder-led businesses with long-term, differentiated capital. The firm has raised $18 billion across its investment funds and its global investor base has invested an additional $10 billion of debt and equity in the funds' portfolio companies. The firm's affiliate, BDT & Company, is a merchant bank that works with family- and founder-led businesses to pursue their strategic and financial objectives. BDT & Company provides solutions-based advice and access to a world-class network of business owners and leaders.
Contact:
Rubenstein
Stefan Prelog
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sprelog@rubenstein.com
