A physical therapy company with a heavy Richmond presence has been acquired by a neighboring business in the Mid-Atlantic.
Tidewater Physical Therapy, a Newport News-based practice, was acquired by Pivot Physical Therapy. The deal closed in the fourth quarter 2016 and was announced this month.
TPT has 35 clinics throughout Virginia, including 13 in the Richmond market. Pivot, a similar but larger practice based out of Towson, Maryland, has 233 clinics through the Mid-Atlantic.
TPT founder and former president Wayne MacMasters said he and his three business partners discussed their exit strategy a decade ago.
“In 2007, we started focusing on 2016 as being the best time to exit, from an age standpoint,” MacMasters said.
“We actually ran a formal auction process, which started in early 2016. We narrowed it down and were impressed with Pivot’s upside. They were the smallest of the four finalists, and had a culture we could fit into.”
MacMasters said he and his three partners at TPT, Steve Howell, John Mitrovic and Jeffrey Verhoef, started the business in 1986. The four were given leadership positions at Pivot and are now minority shareholders.
Attorney Doug Granger of Hunton & Williams represented TPT through the process.
MacMasters did not disclose terms of the acquisition. He said 2016 was Tidewater’s best year ever, and said they “weren’t selling in a fire sale.”
“We were growing, excited to be a platform for people to buy,” he said.
TPT still is operating under its original name, but McMasters said it will rebrand its clinics, including the Richmond locations, to Pivot in four to six weeks.
“From a clinical aspect, nothing’s changed. They’re running identical to what they were before,” MacMasters said.
Tidewater isn’t the only PT practice Pivot has shopped for this year. In March, it announced the acquisitions of Dynamic Physical Therapy and ProCare Physical Therapy, both based in Pennsylvania.