Exhibit 99.1
ATI Physical Therapy Closes Business Combination and Will Begin Trading on the New York Stock Exchange
BOLINGBROOK, IL – June 17, 2021 – ATI Physical Therapy, Inc. (“ATI” or the “Company”), a portfolio company of Advent International (“Advent”) and one of the nation’s largest providers of outpatient physical therapy services, has completed its business combination with Fortress Value Acquisition Corp. II (“FVAC II”) (NYSE: FAII), a special purpose acquisition company.
The transaction, which was approved on June 15, 2021 by FVAC II’s shareholders, further positions ATI to lead the rapidly growing physical therapy industry, with an emphasis on delivering predictable outcomes for patients with musculoskeletal (MSK) issues. Beginning June 17, 2021, the Company will operate as “ATI Physical Therapy, Inc.,” and ATI’s shares of Class A common stock will trade on the New York Stock Exchange (“NYSE”) under the symbol “ATIP.”
“This marks an important milestone for our company, as we build on our accomplishments and seek to accelerate our innovative approach and reach in the growing and critically important physical therapy market,” said Labeed Diab, Chief Executive Officer of ATI Physical Therapy. “As the largest independent outpatient physical therapy provider in the United States, ATI is known for delivering exceptional customer service and optimized outcomes. ATI is truly grateful that we have team members committed and dedicated to the success of our patients and the organization. Our focus will continue to be providing these professionals the clinical support, training and technology they need to ensure we remain at the forefront of our industry and surpass the expectations of our patients.”
“We are thrilled to be a part of ATI’s next phase of growth and innovation as the clear leader in a $22 billion outpatient physical therapy market,” said Fortress Managing Partner Drew McKnight. “ATI’s experienced leadership team and over 5,000 employees nationwide have established the Company as a provider of choice for patients and a driver of cost-savings and efficiencies in an overburdened healthcare ecosystem. We believe the Company is extremely well positioned to build on its record of disciplined growth and industry-leading profitability in what is still a highly fragmented sector.”
In connection with the transaction, ATI paid off the aggregate outstanding indebtedness under the Second Lien Credit Agreement with, among others, the lenders party thereto and Wilmington Trust, National Association, as administrative agent, that was entered into on May 10, 2016 and re-paid a portion of the aggregate outstanding indebtedness under the First Lien Credit Agreement with, among others, the lenders party thereto and Barclays Bank PLC, as administrative agent, that was entered into on May 10, 2016 resulting in outstanding gross debt of $561.2 million after the prepayments. Pro forma net debt equals gross debt of $561.2 million less cash and cash equivalents of $97.7 million as of March 31, 2021, or $463.5 million. With trailing twelve months Adjusted EBITDA1 of $134.3 million as of March 31, 2021, this results in a net debt leverage ratio of 3.5x.
ATI owns and operates nearly 900 physical therapy clinics across 24 states. The Company operates its business based on data and analytics, augmented by a relentless focus on delivering exceptional patient outcomes that exceed industry benchmarks. In partnership with Advent, ATI’s technology and operational investments have enabled the Company to grow its clinic footprint by 50 percent while consistently putting patient care first and further enhancing its clinician-centric culture. Since its first clinic, excellence in customer service to patients, providers and payor customers remains a hallmark of the organization, which is reflected in its consistent NPS score above 75.
ATI’s highly experienced management team, led by CEO Labeed Diab, CFO Joe Jordan and COO Ray Wahl, will continue to lead the business. In addition, the Company’s Board of Directors is comprised of advisors with extensive backgrounds leading and nurturing fast-growing healthcare businesses and well-respected consumer brands. Advent will remain ATI’s largest stockholder.
| 1 | Adjusted EBITDA is a non-GAAP measure. See Reconciliation of GAAP to Non-GAAP Financial Measures. |
