ATI Physical Therapy Transitioning to Private Ownership Strategy
ATI Physical Therapy Transitions to Private Ownership
Transitioning for Future Growth and Enhanced Care
ATI Physical Therapy, Inc. (OTCMKTS: ATIP), a prominent provider of outpatient physical therapy and rehabilitation services, is embarking on a significant transition that marks its evolution from public to private ownership. A consortium of current stockholders, holding over 90% of the voting shares, spearheaded by private investment firms such as Knighthead Capital Management and Marathon Asset Management, has concluded a merger to facilitate this transformation.
This strategic move enables ATI to operate with increased agility while maintaining its commitment to delivering patient-centered care across its extensive clinic network. The acquisition price is set at $2.85 per share in cash for those shares not held by the stockholder group.
Andrew Shannahan, Managing Member of Knighthead Capital Management, expressed enthusiasm for the transition. He stated, "Having been an investor in the physical therapy industry for many years, we fully recognize the unique excellence of ATI's management team, value proposition, and positioning in the market. We look forward to continuing to be a partner to ATI following this transaction and to supporting the high-quality care that its therapists are known for."
Randy Raisman, Head of US Opportunistic Credit at Marathon Asset Management, added, "We are fully committed to further backing the management team in their mission to provide exceptional care to patients and to grow the business both organically and through new clinic openings, ultimately unlocking significant value for investors." This highlights a solid commitment to both operational success and nutrition for growing patient care.
"Returning to private ownership is a timely next step in ATI's evolution," remarked Sharon Vitti, Chief Executive Officer of ATI. "This structure allows us to focus on our patients, providers, and partners—investing in what matters most, without the added expense and constraints of quarterly reporting cycles. We are confident that this will make ATI stronger by positioning us to better serve our communities through innovation and growth."
ATI's headquarters will remain in its current location and continue to operate under its established brand and leadership. Stockholders can expect formal updates regarding the merger in the near future.
About ATI Physical Therapy
ATI Physical Therapy is a leading provider of outpatient physical therapy and rehabilitation services, with a network comprising hundreds of clinics nationwide. The organization is dedicated to clinical excellence and innovative care delivery, empowering patients to reclaim their vitality through evidence-based treatments and tailored recovery plans.
Future Directions and Expectations
This transition to private ownership signifies a robust shift in ATI's operational framework, aiming to improve its service delivery and patient engagement. By shedding the constraints of public reporting, ATI can focus more intensely on refining its services and expanding its reach.
The response from the physical therapy industry is one of anticipation, as many believe this new alignment will allow for greater investment in technology and methodologies that enhance patient outcomes. As the healthcare landscape evolves, ATI aims to position itself at the forefront, advocating a model that prioritizes care while also being mindful of business sustainability.
Commitment to Patient-Centered Care
By returning to private ownership, ATI reinforces its commitment to providing exceptional care to its patients. The operational flexibility afforded by this change is expected to facilitate innovative approaches in patient rehabilitation techniques and improved service offerings at various clinics.
Furthermore, the focus on organic growth and new clinic openings is indicative of a proactive approach to meeting increasing patient demand. By fostering a culture of care that emphasizes recovery and support, ATI is set to redefine the patient experience in physical therapy.
Frequently Asked Questions
What is ATI Physical Therapy's recent transition about?
ATI Physical Therapy has transitioned from public to private ownership to enhance its operational flexibility and focus on patient care.
Who completed the merger to take ATI private?
A consortium of existing stockholders led by Knighthead Capital Management and Marathon Asset Management completed the merger.
What are the implications of this transition for patient care?
The transition aims to improve patient care through increased investment in services without the constraints of quarterly reporting.
How does ATI plan to grow post-transition?
ATI intends to grow organically and through new clinic openings, while concentrating on delivering high-quality care to its patients.
Where is ATI Physical Therapy headquartered?
ATI Physical Therapy will maintain its headquarters in Downers Grove, Illinois and continue operating under the same brand.
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