ATI Physical Therapy Goes Private

Rhea-AI Summary

ATI Physical Therapy (OTCMKTS: ATIP) has announced its transition from public to private ownership through a merger led by Knighthead Capital Management and Marathon Asset Management. The consortium of existing stockholders, holding over 90% of voting shares, will acquire remaining shares for $2.85 per share in cash.

The company will maintain its headquarters in Downers Grove, Illinois, and continue operations under its current brand and leadership team. CEO Sharon Vitti emphasized that private ownership will enable ATI to focus on patient care and strategic growth without the constraints of quarterly reporting cycles.

Positive

• None.

Negative

• Public shareholders forced to exit at $2.85 per share
• Reduced transparency and public market access for investors
• Limited ability for minority shareholders to participate in future growth

ATI Physical Therapy Transitions from Public to Private Ownership
Move to Private Ownership Supports Long-Term Growth, Operational Flexibility, and Continued Focus on Patient Care

DOWNERS GROVE, Ill., Aug. 1, 2025 /PRNewswire/ -- ATI Physical Therapy, Inc. ("ATI") (OTCMKTS: ATIP), a nationally recognized provider of outpatient physical therapy and rehabilitation services, today announced that a consortium of existing stockholders, holding over 90% of the voting shares and led by private investment firms, Knighthead Capital Management and Marathon Asset Management, completed a merger to take the company private. As a result of the merger, shares not held by this group of stockholders will be acquired for $2.85 per share in cash.

The merger 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.

"Having been an investor in the physical therapy industry for many years, we fully recognize the unique excellence of ATI's management team, value proposition and positioning in the market," said Andrew Shannahan, Managing Member, Knighthead Capital Management. "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."

"We have been impressed by Sharon and her team's execution over the last three years at ATI. We are fully committed to further backing the management team in their mission to provide exceptional care to patients and to grow the business both organically and through new clinic openings, ultimately unlocking significant value for investors," said Randy Raisman, Head of US Opportunistic Credit at Marathon Asset Management.

"Returning to private ownership is a timely next step in ATI's evolution," said Sharon Vitti, Chief Executive Officer of ATI. "This structure allows us to focus on our patients, providers, and partners—investing in what matters most, without the added expense and constraints of quarterly reporting cycles. We are confident this will make ATI stronger by positioning us to better serve our communities through innovation and growth."

ATI will remain headquartered in Downers Grove, Illinois, and continue to operate under its current brand and leadership team. Stockholders will receive formal notice relating to the merger in the coming days.

About ATI Physical Therapy
ATI Physical Therapy is a leading provider of outpatient physical therapy and rehabilitation services with hundreds of clinics across the United States. Committed to clinical excellence and innovative care delivery, ATI helps patients get back to their best with evidence-based treatment, personalized plans, and experienced clinicians.

Media Contact:
Eimile Tansey
Eimile.tansey@atipt.com

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SOURCE ATI Physical Therapy

FAQ

What is the acquisition price for ATI Physical Therapy (ATIP) going private?

ATI Physical Therapy shareholders will receive $2.85 per share in cash for shares not held by the consortium of existing stockholders.

Who are the investors taking ATI Physical Therapy private?

The privatization is led by a consortium of existing stockholders, primarily Knighthead Capital Management and Marathon Asset Management, who collectively hold over 90% of voting shares.

Will ATI Physical Therapy's management team change after going private?

No, ATI will maintain its current leadership team, including CEO Sharon Vitti, and continue operating under its existing brand from its Downers Grove, Illinois headquarters.

What are the main benefits of ATI Physical Therapy going private?

The private structure allows ATI to focus on long-term growth, operate with greater agility, invest in patient care without quarterly reporting constraints, and reduce public company expenses.

When will ATI Physical Therapy shareholders receive payment for their shares?

Stockholders will receive formal notice about the merger and payment details in the coming days.