Revelstoke Capital Partners

Upstream Completes Transaction with Drayer Physical Therapy Institute


Denver, CO – Revelstoke Capital Partners (“Revelstoke”), a Denver-based private equity firm, announced today that its portfolio company Upstream Rehabilitation Inc. together with certain of its affiliates (“Upstream”) has completed the acquisition of Drayer Physical Therapy Institute, LLC (“DPTI”). Certain DPTI shareholders, including Goldman Sachs Merchant Banking Division, rolled over a portion of their proceeds in exchange for a minority ownership stake in Upstream. In addition to the DPTI transaction, Upstream announced that it has completed four additional add-on acquisitions: Personal Injury Network Northwest (Washington), Rocky Mountain Sport and Spine (Colorado), Lincoln City Physical Therapy (Oregon) and Southern Physical Therapy (Tennessee).

“Upstream and DPTI share similar cultures and a strong commitment to clinical excellence and compliance. We see a tremendous opportunity to combine the strengths and capabilities of both companies, while maintaining the portfolio of brands from each, to continue to grow and be the provider and employer of choice in the industry,” said David Van Name, CEO and founder of Upstream.

“Since we invested in Upstream in December 2015, the company has nearly tripled in size driven by above-market same-clinic growth, approximately 100 de novo clinic openings and 12 add-on acquisitions. We have enjoyed a strong partnership with the Upstream management team and look forward to working with them on this transformative acquisition,” said Simon Bachleda, Managing Partner at Revelstoke.

“With the DPTI transaction, Upstream will be the fourth-largest outpatient physical therapy provider in the U.S. with over 550 clinics across 27 states and a significant presence in the Southeast,” said Andrew Welch, Managing Director at Revelstoke.

Cantor Fitzgerald & Co. acted as financial advisor and Winston & Strawn LLP acted as legal counsel to Upstream. Harris Williams & Co. acted as financial advisor and Weil, Gotshal & Manges LLP acted as legal counsel to DPTI.

About Upstream

Upstream is a provider of outpatient rehabilitation services, including free-standing physical therapy clinics, outpatient rehabilitation management services and a member network of rehabilitation service providers. With corporate offices in Birmingham, Alabama, Upstream currently operates more than 550 owned and managed clinics across 27 states.

About Drayer Physical Therapy Institute

Headquartered in Hummelstown, PA, Drayer Physical Therapy Institute is a leading owner and operator of outpatient physical therapy clinics primarily focused on treating sports-related injuries and orthopedic disorders. DPTI’s strategy is to operate its own clinics and develop strong relationships with referring physicians through high quality patient care. The company currently operates more than 160 owned and managed clinics in 15 states.

About Revelstoke

Revelstoke is a private equity firm formed by experienced investors who focus on building industry-leading companies in the healthcare and related business services sectors. Revelstoke partners with entrepreneurs and management teams to execute on a disciplined organic and acquisition growth strategy to build exceptional companies. Since the firm’s inception, Revelstoke has raised approximately $2.3 billion of equity and has completed 64 acquisitions, which includes 16 platform companies and 48 add-on acquisitions.