KRG Capital Partners sells ATI Holdings to GTCR Golder Rauner

KRG Capital PartnersMar 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.

“Joining forces with KRG enhanced our team’s ability to build the leading physical therapy company in the United States”

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.