KRG Capital Partners Completes Sale of ATI Holdings
Sale represents KRG’s first full exit in its $715MM Fund III
Denver, CO (March 16, 2010) – KRG Capital Partners (“KRG”), a Denver-based buyout firm, completed its sale of ATI Holdings, (“ATI”) to GTCR Golder Rauner LLC (“GTCR”). The transaction closed on March 12, 2010. The all cash sale represents KRG’s first full exit in its $715 million Fund III. ATI is a provider of outpatient physical therapy services with an offering that includes physical rehabilitation, hand therapy, aquatic therapy, work conditioning/work hardening, sports medicine and functional capacity assessments.
Founded in 1996, ATI has distinguished itself in the highly fragmented physical therapy industry through a combination of its proprietary treatment strategies, facility design, and focus upon the patient. ATI’s comprehensive approach to therapy and proven treatment techniques combine the most effective elements of physical therapy, exercise physiology and athletic training, resulting in superior outcomes and high patient satisfaction. Headquartered in Bolingbrook, Illinois, ATI has 88 centers in five states, with the bulk of them – 58 – in the Chicago area; six in Wisconsin, and the remainder in Pennsylvania, Maryland and Delaware. ATI’s founder, Greg Steil, will remain CEO and a significant individual equity holder. The Company has 1,250 employees.
“ATI’s management team has done an excellent job executing our combined vision,” said Steve Neumann, a Managing Director at KRG Capital Partners, “Over the course of five years, KRG and ATI management have enjoyed a highly productive and collaborative relationship building ATI from 10 centers to its current 88.” Wayne Cavanaugh, a Vice President at KRG Capital Partners added, “ATI is on a path for continued success and we wish them well with their new partners.” The all cash sale to GTCR represents KRG’s first full exit for its $715 million Fund III and continues KRG’s efforts towards realizing a meaningful return for its limited partners.
“Joining forces with KRG enhanced our team’s ability to build the leading physical therapy company in the United States,” said Greg Steil, CEO of ATI. “We chose to work with KRG because of their unparalleled track record of helping management teams build true industry leaders.”
Jefferies & Company acted as exclusive financial adviser to ATI in connection with the transaction, and Paul, Hastings, Janofsky & Walker provided legal counsel.
Founded in 1996, KRG is a Denver-based private equity firm with over $4 billion of cumulative capital either deployed or available for future investment, which includes approximately $682 million deployed since inception on behalf of equity co-investors. KRG specializes in acquiring and recapitalizing unique and profitable middle-market companies. The firm seeks investment opportunities where KRG can partner with owners and operating managers who are committed to expanding their companies and becoming industry leaders. The result is a partnership that focuses on creating a significantly larger enterprise through a combination of internal growth and complementary add-on acquisitions. Since inception, KRG has invested in 32 platform companies and has completed 94 add-on acquisitions for those platforms. More information on KRG is available online at www.krgcapital.com.
Media Contact Information:
Steve Neumann, Managing Director