CORA Health Services Acquires OSTI to Expand Physical Therapy Presence in the Midwest

On July 16, 2019, VCBeat (WeChat ID: vcbeat) learned that CORA Health Services, Inc. (“CORA”) announced the acquisition of the Orthopedic and Sports Therapy Institute (OSTI). As one of the top ten physical therapy outpatient service providers in the United States, CORA will further expand its business in the Midwest through this acquisition.

OSTI was established in 1999 and operates clinics in Rockford, Belvidere, Marengo, Ogle County, Poplar Grove, and Sauk Valley. OSTI provides comprehensive services, including general physical therapy and specialized programs such as fall prevention, oncology rehabilitation, pain management, pediatric rehabilitation, running injury treatment, spinal conditions, temporomandibular joint (TMJ) dysfunction, vestibular rehabilitation (dizziness), and women’s health.

Following the acquisition, Principals Josh Meyers, Donnie Early, and Steve Merema will continue to play active roles in CORA’s management. Dennis Smith, CEO and President of CORA, stated, “We warmly welcome the OSTI team to CORA. This move expands our coverage in the Midwest. At CORA, we believe every patient deserves high-quality physical therapy. We have always been committed to serving each patient with sincerity, and we look forward to serving all communities in Rockford. Both CORA and OSTI are dedicated to providing personalized care that fully considers patients’ needs, and this partnership will foster better growth for both organizations.”

CORA is a portfolio company of Gryphon Investors, a leading middle-market private equity firm headquartered in San Francisco. The terms of these transactions have not been disclosed.

CORA is an outpatient rehabilitation company that leverages proven clinical practices and cost-effective treatment plans to help patients return to healthy living as quickly as possible. Their clinics provide comprehensive care, including outpatient physical therapy and general rehabilitation, workers’ compensation treatment, sports and auto injury rehabilitation, and geriatric rehabilitation. CORA operates more than 200 clinics across Florida, Georgia, Illinois, Kentucky, Missouri, North Carolina, South Carolina, Tennessee, and Virginia.

OSTI, based in the Midwestern United States, is a company specializing in outpatient orthopedics, sports rehabilitation, and industrial rehabilitation. The company offers a wide range of medical services, including general physical therapy and fall prevention. Specific areas of expertise include oncology rehabilitation, pain management, pediatric rehabilitation, running-related injuries, spinal conditions, temporomandibular joint (TMJ) dysfunction, vestibular rehabilitation (for dizziness), and women’s health. Its clinics are staffed by numerous experienced clinicians who deliver high-quality physical therapy services to patients.

Headquartered in San Francisco, Gryphon Investors is a leading private equity investment firm focused on partnering with experienced management teams to drive profitable growth and enhance the competitiveness of middle-market companies. Since 1997, the firm has managed over $4.8 billion in equity investments and capital. Targeting companies with annual revenues between $100 million and $500 million, Gryphon Investors typically makes equity investments ranging from $100 million to $300 million in its portfolio companies. Prioritizing investment opportunities, Gryphon Investors leverages its capital, specialized professional resources, and operational expertise to forge strong partnerships with owners and executives, building industry-leading enterprises.