Metro Physical & Aquatic Therapy has Partnered with U.S. Physical Therapy

Livingstone’s healthcare team has advised Metro Physical & Aquatic Therapy on the sale of a 50% equity interest in MSO Metro, LLC, which is the Company’s management services organization (“Metro PT” or the “Company”), to U.S. Physical Therapy, Inc. (“USPH”) (NYSE: USPH). 

USPH acquired its 50% equity interest in Metro PT for a purchase price of ~$76.5 million.  The transaction also includes an earnout where the sellers can earn up to another $20.0 million of consideration if certain performance criteria are achieved.  Metro PT generates ~$64.0 million in annual revenue and ~$12.0 million in annual EBITDA on a consolidated basis.

“Our entire team is extremely excited about this partnership and the opportunity to assist our newest partners on their outsized growth vision for the region,” said Chris Reading, Chief Executive Officer of USPH.  “Michael Mayrsohn has assembled a dedicated and capable executive team who have demonstrated their collective ability to oversee and deliver exceptional care to their patients while growing Metro PT at an extraordinary rate.”

Metro PT has become one of the largest physical therapy platforms in the Northeast, managing 50 outpatient clinics mainly in New York, with plans for expansion into neighboring states.  The Company’s outpatient clinics deliver comprehensive physical, occupational and speech therapy while Metro PT also provides in-home physical therapy services.

“Metro PT embodies everything investors seek in a physical therapy platform: deep clinical density and market leadership, exceptional clinical care for a diverse patient base, proven executives aligned for future success, and a demonstrated ability to grow through various avenues,” noted Ryan Buckley, Partner at Livingstone. “Metro PT’s differentiated operating model and above-market growth rates, combined with its impressive leadership team, made the Company a highly sought-after investment opportunity, which created meaningful optionality within our transaction process.”

Founded in 1982 by Sherrie Glasser Mayrsohn, Metro PT is now led by her son, Michael Mayrsohn.  Under Michael’s leadership as CEO for the last eight years, the Company has grown the business from five clinics on Long Island to 50 locations across three states.

“We chose Livingstone due to their unmatched expertise in physical therapy, experience navigating the complexities with family-owned businesses, and tireless work ethic supporting a trustworthy reputation,” said Michael Mayrsohn, Co-Owner and CEO of Metro PT. “We had a clear vision for our partnership and deal structure, and Livingstone exceeded expectations by facilitating this exciting partnership with USPH, the most respected firm in our industry.”

USPH, founded in 1990, operates approximately 711 outpatient physical therapy clinics in 43 states.  In addition to owning and operating clinics, USPH manages 39 physical therapy facilities for unaffiliated third parties, including hospitals and physician groups.  USPH also has an industrial injury prevention business which provides onsite services for clients’ employees including injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments.

“Livingstone is honored to be recognized as the most active mid-market M&A advisor to the physical therapy sector, as we have completed seven sell-side physical therapy transactions valued at over $825 million during the last three years,” added Mark Carl, Managing Director at Livingstone.

Livingstone’s U.S. healthcare team has experienced another growth year in 2024, completing seven sell-side M&A transactions totaling $700 million of deal value on a year-to-date basis.  Successful healthcare transactions completed this year include the sale of Destiny Dental to ProSmile (a TriSpan portfolio company), the sale of Net32 to Riverside Partners, the sale of Women’s Health Associates to Together Women’s Health (a Shore Capital portfolio company), the sale of Senior Helpers to Waud Capital, and the sales of Access Physical Therapy and Fitness Quest to Confluent Health.