Overland Park-based ARC Physical Therapy+ said Monday it had become a partner with U.S. Physical Therapy Inc., a deal that appears to be netting the local company $36 million.
Publicly traded U.S. Physical Therapy, which operates physical and occupational therapy clinics in 43 states, said in a government filing that it acquired a 90 percent interest in a “physical therapy business focused on creating solutions for industry.”
The filing didn’t name ARC but put the price of a deal at $36 million, identifying the acquired practice as including 11 clinics and three on-site industrial client locations, which matches ARC’s description.
Annual revenue of the acquired business exceeds $11.5 million, the U.S. Physical Therapy information said.
Officials at ARC would say only that the partnership included an “infusion of resources, both intellectual and financial.”
ARC, led by Matt Condon, has received numerous small-business awards, including the Greater Kansas City Chamber of Commerce’s 2010 Small Business of the Year award.
Condon is to remain chief executive officer of ARC. Chief operating officer Jeff Weeks and acquisitions officer Brian Stewart also received ownership stakes in connection with the deal.
ARC said it employs 90 professionals at 11 outpatient clinics and other on-site clinics, and provides other employer health-related services in the Kansas City area, St. Joseph, Springfield, Topeka and Wichita.
U.S. Physical Therapy operates about 474 clinics. It will assume many of ARC’s administrative tasks, allowing ARC employees to focus on clinical practice.
The deal also will give Condon more time to develop a new business venture, Bardavon Health Innovations, which focuses on health care technology and services.
Condon said Bardavon — named after William Shakespeare, the “bard of Avon” — develops and markets cloud-based software and equipment that addresses cost and wellness concerns in health care.
Condon said part of the business would help employers monitor workers’ compensation practices, and part would help the management of employee fitness and prevention programs.