ATI Physical Therapy is set to go public via the special purpose acquisition company Fortress Value Acquisition Corp II (NYSE:FAII) in a deal with an enterprise value of $2.5 billion.
CEO of ATI Physical Therapy Labeeb Diab and CFO of ATI Physical Therapy Joe Jordan appeared on Benzinga’s YouTube show “SPACs Attack” for an exclusive interview Wednesday.
Fortress has been a partner and supporter of ATI Physical Therapy for over 10 years, Diab said.
The opportunity to go public via SPAC with a familiar company coupled with the increased speed to market made the SPAC route the right choice for the company, the CEO told Benzinga.
The outpatient physical therapy industry is a $22-billion one, he said.
The company is focused on “bending the cost in the health care system,” Diab said.
CFO Jordan told Benzinga that physical therapy offers a low-cost alternative to other treatment options like MRIs, surgeries and opioids.
ATI Physical Therapy is the largest single physical therapy brand in the country, the CFO said.
The company is growing significantly, he said, adding that many M&A opportunities exist going forward as a public company.
ATI Physical Therapy operates in 25 states and the company plans to enter more in the future, CEO Jordan said.
Pending approval of shareholders, the transaction is expected to close in the second quarter of 2021.
Upon closing of the transaction, the combined company will operate as ATI Physical Therapy, Inc. and be listed on the New York Stock Exchange under a new ticker symbol yet to be announced.
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FAII Price Action: Fortress Value Acquisition Corp II was up 0.5% at $10.03 at last check Wednesday.