The Joint Corp. has entered into an agreement to divest 31 corporate-owned and managed clinics located in Arizona and New Mexico to Joint Ventures, LLC. This transaction is a key step in the company's strategic transformation to become a pure-play franchisor.
The divestiture is part of a broader initiative to reduce the overhead associated with operating corporate clinics and to increase operating leverage. The company aims to complete the refranchising of its entire corporate clinic portfolio by the end of 2025.
The agreement involves a cash consideration to be paid by Joint Ventures, LLC. This move is expected to generate capital for reinvestment into growth initiatives and to enhance the company's overall profitability profile.
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