ATI Physical Therapy Completes Private Merger with Knighthead Capital Management and Marathon Asset Management

ATI Physical Therapy has been acquired by a consortium of existing stockholders, led by Knighthead Capital Management and Marathon Asset Management, for $2.85 per share in cash. The move to private ownership will allow ATI to operate with greater agility and long-term focus, while continuing to deliver high-quality, patient-centered care across its nationwide clinic network. ATI will remain headquartered in Downers Grove, Illinois, and continue to operate under its current brand and leadership team.

ATI Physical Therapy, Inc. ("ATI"), a leading provider of outpatient physical therapy and rehabilitation services, has announced its transition from public to private ownership. The move, led by a consortium of existing stockholders including Knighthead Capital Management and Marathon Asset Management, will see ATI acquire the remaining shares for $2.85 per share in cash [1].

The merger, which took effect on August 1, 2025, will allow ATI to operate with greater agility and long-term focus, while continuing to deliver high-quality, patient-centered care across its nationwide clinic network. The company will remain headquartered in Downers Grove, Illinois, and continue to operate under its current brand and leadership team [1].

Andrew Shannahan, Managing Member of Knighthead Capital Management, expressed his confidence in ATI's management team and value proposition, stating, "We look forward to continuing to be a partner to ATI following this transaction and to supporting the delivery of high-quality care that its therapists are known for" [1].

Randy Raisman, Head of US Opportunistic Credit at Marathon Asset Management, echoed similar sentiments, highlighting the company's commitment to growing both organically and through new clinic openings, ultimately unlocking significant value for investors [1].

ATI's CEO, Sharon Vitti, emphasized that private ownership will enable the company to focus on its patients, providers, and partners, without the constraints of quarterly reporting cycles. She believes this will make ATI stronger by positioning it to better serve its communities through innovation and growth [1].

The transition to private ownership follows a series of strategic moves by ATI, including a $26 million financing round and collaborations with institutions like Tufts University School of Medicine to expand access to physical therapy education [2]. ATI's commitment to clinical excellence and innovation is evident in its ongoing achievements, such as receiving an 'Exceptional' rating from the Center for Medicare and Medicaid Services' Merit-Based Incentive Payment System (MIPS) for the fifth consecutive year [3].

References:

[1] https://www.prnewswire.com/news-releases/ati-physical-therapy-goes-private-302519673.html
[2] https://www.stocktitan.net/news/ATIP/
[3] https://www.stocktitan.net/news/ATIP/