HOUSTON - U.S. Physical Therapy, Inc. (NYSE: USPH), a prominent national operator of outpatient physical therapy clinics, has announced the acquisition of an industrial injury prevention (IIP) services business through its subsidiary, Briotix Health Limited Partnership. The deal, which was finalized for a sum of approximately $24 million, sees Briotix taking over a business that currently generates around $11 million in annual revenues.
The newly acquired IIP services business is expected to complement Briotix's existing operations and expand its reach into new sectors, including transportation, construction, and manufacturing. According to Chris Reading, CEO of U.S. Physical Therapy, Inc., the acquisition is a strategic addition that aligns operationally and culturally with Briotix, and promises to leverage longstanding relationships within the industry.
In a separate transaction, U.S. Physical Therapy, Inc. also acquired a two-clinic physical therapy practice, which adds approximately $1 million in annual revenue to the company's portfolio. This practice will be integrated into a larger practice that was recently acquired by USPH.
U.S. Physical Therapy, Inc., founded in 1990, has a significant presence in the healthcare sector, operating 683 outpatient physical therapy clinics across 42 states. The company specializes in a range of services, including orthopedic and sports-related injury treatments, neurological injury rehabilitation, and injured worker rehabilitation. USPH also manages 41 physical therapy facilities for third parties, such as hospitals and physician groups, and offers a suite of industrial injury prevention services.
The acquisition is part of USPH's broader strategy to expand its service offerings and enhance its market position. With the addition of the IIP services business, USPH is poised to provide a more comprehensive range of programs to its clients.
The information reported is based on a press release statement from U.S. Physical Therapy, Inc.
InvestingPro Insights
As U.S. Physical Therapy, Inc. (USPH) continues to expand its service offerings through strategic acquisitions, the company's financial health and market performance remain critical for investors. According to InvestingPro data, USPH currently holds a market capitalization of $1.53 billion, underscoring its significant presence in the healthcare sector. The company's revenue growth is also on an upward trajectory, with a 9.32% increase over the last twelve months as of Q1 2023, indicating a solid financial performance.
InvestingPro Tips highlight that USPH has raised its dividend for three consecutive years and has maintained dividend payments for 14 consecutive years, which could be a sign of the company's commitment to delivering shareholder value. Furthermore, with net income expected to grow this year and analysts predicting profitability, USPH could be an attractive option for income-focused investors. The company operates with a moderate level of debt and its liquid assets exceed short-term obligations, suggesting a stable financial position.
Nevertheless, investors should note that USPH is trading at a high earnings multiple with a P/E ratio of 79.3, which may reflect a premium market valuation. The company's stock generally trades with low price volatility, which might appeal to investors looking for less risky equity exposure in the healthcare sector.
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