A US-based rehabilitation clinic company, the Grand Rapids-based Agility Health, Inc. is selling its assets in the country, which include its network, headquarters and every USA rehab facility it has, for a sum of $45m.
Agility Health, Inc., the company selling their assets, operates a network of 84 outpatient rehabilitation clinics located across 16 states in the US, which provide contract services to institutional clients, including but not limited to hospitals and nursing homes. An Agility USA rehab facility provides care and treatment for a range of issues, including sports-related injuries, preventative care, rehabilitation for the injured, and other similar services. The contract therapy side of the operations also provide their services to 36 hospitals and inpatient rehab units, as well 47 nursing homes, long-term care facilities and other similar service locations across 11 states.
The Tampa, Florida-based Alliance Physical Therapy Partners has made a move on the assets, purchasing them via their Alliance Physical Therapy Management subsidiary.
Alaris USA and Agility Health Holdings will sell their Agility Health, LLC. membership interests to the new owner of the U.S. assets, Alliance. According to Agility Health, Inc. The two companies have decided how much of the $45M is to be divided among them. Agility Health Holdings is set to receive $19,904,512, whilst Alaris will receive more, set to receive the remaining $25,095,488.
The deal is set to be closed by the end of February 2018.
In terms of those with boots on ground on the USA rehab facility, the 1,200 employees will keep their jobs. This was assured by VP of Corporate Development Wayne Cockburn, Agility Health, Inc. and Medic Holdings, who will retain $1.3M, which will then go to their Canadian subsidiary, Medic Holdings Corp.
According to Cockburn, selling the US operations was the best way to handle the company’s debt problem, with the company being down $45M in debt. He says that it was a financial move, with the company carrying too much debt for its size.
Previously, the company was earning $100M but still losing money. He says that this new move will be making CA$16 M in sales, with earnings to hit the positive.
He says that companies can get so focused on revenue, that they forget the bottom line, which is where they get themselves in trouble.