Gryphon Investors To Acquire Ob Hospitalist Group from Ares Management
06 July 2017 - 8:30PM
Business Wire
Gryphon Investors (“Gryphon”), a San Francisco-based private
equity firm, and Ares Management, L.P. (“Ares”) (NYSE:ARES) today
announced that Gryphon will acquire Ob Hospitalist Group (“OBHG” or
“the Company”) from a fund affiliated with Ares. OBHG is the
nation’s leading provider of obstetric hospitalist
services.
Ares’ fund, along with OBHG founders Dr. Chris Swain and David
Swain, will retain a minority ownership position in the Company.
Terms of the transaction, which is expected to close in late July,
were not disclosed.
Founded in 2006 and based in Mauldin, SC, OBHG is the largest
OB/GYN hospitalist provider in the U.S., with a national network of
over 550 OB hospitalists serving in more than 120 partner hospitals
across 28 states. Through its obstetric hospitalist programs, most
commonly providing onsite coverage 24 hours a day, 365 days a year
by board certified physicians and featuring an obstetric emergency
department (OBED), the company improves the standard of care at
partner hospitals for expectant mothers by ensuring consistent and
unconditional access to medical care. In addition, as the nation’s
largest provider, OBHG is uniquely capable of partnering both with
hospitals and the provider community to improve clinical quality,
reduce medical risk and increase the efficiency of the care
delivery model.
Ob Hospitalist Group CEO Leonard Castiglione stated, “Our
partnership with Ares allowed us to focus on patient outcomes,
clinical quality, and operational excellence, which enabled OBHG to
expand our customer base and deliver unsurpassed value to our
existing customers. We are excited about our new relationship with
the Gryphon team and will benefit from their significant resources
and expertise to support our clinical mission and growth strategy
and further differentiate our value with existing customers.”
Nick Orum, Gryphon’s President and Head of the firm’s Healthcare
Group, said, “Gryphon’s investment is the result of a proactive
effort over many months to identify market leading companies in
hospital-based medicine services. With the support of experienced
executive advisors Kevin Blank and Dr. Adam Singer, we quickly
recognized the value that OB hospitalist programs provide through
more timely, coordinated and safer patient care, as well as an
improved quality of life for physicians. OBHG is a best-in-class
company within this growing field.”
Mr. Blank, a member of Gryphon’s Operations Resources Group,
will join the board of directors of OBHG’s parent company as
Executive Chairman. He has more than 30 years of healthcare
operations experience, including in the women’s health area. Dr.
Singer, the founder and former CEO of IPC Healthcare, also advised
Gryphon and will join the board.
Bennett Rosenthal, Co-Founder and Partner of Ares and Co-Head of
the Ares Private Equity Group, said, “We are grateful for the
opportunity we had as the financial sponsor of OBHG to partner with
the Company's outstanding management team, visionary founders David
and Chris Swain, and Ascension Ventures. We are excited to partner
with Gryphon and to continue assisting with the Company's growth as
it pursues its mission of improving women’s health outcomes and
saving lives.”
Moelis & Company LLC and Jefferies LLC acted as financial
advisors to the Company. Kirkland & Ellis LLP provided legal
counsel to Gryphon, while Proskauer Rose LLP advised OBHG and
Ares.
# # #
About Ob Hospitalist
Group
Ob Hospitalist Group (OBHG) is the Nation’s leading provider
of OB/GYN Hospitalist Services. The company was founded in
2006 with a vision to elevate the standard of women's healthcare by
ensuring every expectant mother presenting to the hospital receives
consistent and unconditional medical care by an experienced
physician. OBHG leads the nation in developing and managing
customized, financially viable OB/GYN hospitalist programs
featuring an Obstetric Emergency Department (OBED) staffed with
Board Certified physicians 24 hours a day, 365 days a year. Over
the last decade the company’s national network has grown to over
550 dedicated OB hospitalists serving in more than 120 partner
hospitals across 28 states. For more information, visit
www.obhg.com.
About Gryphon Investors
Based in San Francisco, Gryphon Investors
(www.gryphoninvestors.com) is a leading private equity firm focused
on profitably growing and competitively enhancing middle-market
companies in partnership with experienced management. For five
consecutive years, Gryphon has been ranked in Preqin’s prestigious
quarterly PE report as one of North America’s top-decile firms
based on consistency of strong investment returns. Managing over
$2.5bn of equity investments and capital since 1997, the firm has
an extensive track record of leading equity investments of $50
million to $200 million per portfolio company with sales ranging
from approximately $100 million to $500 million. Gryphon
prioritizes investment opportunities where it can form proactive
partnerships with owners and executives to build leading companies,
utilizing Gryphon’s capital, specialized professional resources,
and operational expertise.
About Ares Management
Ares Management, L.P. is a publicly traded, leading global
alternative asset manager with approximately $100 billion of assets
under management as of March 31, 2017, and more than 15 offices in
the United States, Europe and Asia. Since its inception in 1997,
Ares Management has adhered to a disciplined investment philosophy
that focuses on delivering strong risk-adjusted investment returns
throughout market cycles. Ares Management believes each of its
three distinct but complementary investment groups in Credit,
Private Equity and Real Estate is a market leader based on assets
under management and investment performance. Ares Management was
built upon the fundamental principle that each group benefits from
being part of the greater whole. For more information, visit
www.aresmgmt.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170706005386/en/
For Gryphon:Owen Blicksilver Public Relations,
Inc.Caroline Luz,
203-656-2829caroline@blicksilverpr.comorFor
Ares Management:Media:Mendel CommunicationsBill Mendel,
212-397-1030bill@mendelcommunications.comorInvestors:Ares
Management, L.P.Carl Drake,
800-340-6597cdrake@aresmgmt.comorPriscila Roney,
212-808-1185proney@aresmgmt.com
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