DJ ATI Physical Therapy to Trade Publicly Via SPAC Merger

By Matt Grossman

ATI Physical Therapy will become a publicly traded company following a merger with Fortress Value Acquisition Corp. II, a special-purpose acquisition company, the pair said Monday.

The deal values the companied company at about $2.5 billion. ATI, based in Bolingbrook, Ill., operates 900 physical-therapy centers in the U.S. Proceeds from the acquisition will be used to pay down ATI's debt and preferred equity, reducing the company's leverage, the companies said.

ATI is a portfolio company of Advent International. Advent will remain the company's largest stockholder when the transaction closes.

SPACs such as Fortress, which was created by Fortress Investment Group LLC, raise money on public markets despite having none of their own business operations. They then target the acquisition of a private company, making the private company publicly traded.

The deal is expected to close in the second quarter of 2021, the companies said.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

February 22, 2021 06:45 ET (11:45 GMT)

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