ECG Management Consultants, Inc. (“ECG”), a Seattle-based healthcare consulting firm, announced that it has completed a recapitalization with financial partner Gryphon Investors (“Gryphon”), a San Francisco-based middle-market private equity firm. Following multiple years of outstanding financial performance and increased demand for its services, ECG is preparing for rapid growth including additional service lines, geographic expansion, and possible acquisitions.
The ECG management team and employees have retained a significant ownership position in the company, and management will continue to lead ECG. Terms of the deal were not disclosed.ECG is a leading management consulting firm providing highly specialized consulting services in the areas of strategy, finance, technology, and operations. Since its founding more than 40 years ago, ECG has consulted with more than 1,900 hospitals, health systems, academic medical centers, and medical groups across the country.
Gary Edmiston, CEO of ECG, commented, “We are entering an exciting stage of the company’s evolution, with many opportunities to grow our business including expanding our team of exceptional professionals, adding new service lines, pursuing acquisitions, and continuing to grow geographically. We’re excited to have Gryphon’s resources to support these initiatives and allow us to continue to deliver outstanding service results to our clients.”
Nick Orum, President of Gryphon, added, “A confluence of factors is compelling healthcare providers to change strategies, become more efficient and customer-oriented, consolidate, and make meaningful investments in IT. ECG has a history of guiding its clients through these and other challenges in the evolving healthcare industry, and they are well positioned to help healthcare organizations offer better, more cost-effective care. We are excited to become partners with this dynamic company and accomplished executive team.”
Clearsight Advisors, Inc., acted as financial advisor to ECG on the transaction. Kirkland & Ellis LLP acted as the legal advisor to Gryphon, and Goodwin Proctor LLP was the legal advisor to ECG.
The closing of the transaction represents the third platform investment completed by Gryphon in the fourth quarter of 2014.
About ECG Management Consultants, Inc.
ECG (www.ecgmc.com) is a strategic consulting firm that is leading healthcare forward, using knowledge and expertise built over the course of four decades to help clients see clearly where healthcare is going and to navigate toward success. The company is a trusted, professional partner with hospitals, health systems, medical groups, and academic medical centers across the country. Client success is ECG’s primary objective, and its consultants thrive on delivering smart counsel and pragmatic solutions to the critical challenges that are revolutionizing the healthcare system. ECG’s national presence includes offices in Boston, Dallas, San Diego, San Francisco, Seattle, St. Louis, and Washington, D.C.
About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) focuses on leveraged acquisitions of, and growth investments in, middle-market companies in partnership with experienced management. With more than $1.4 billion of cumulative equity commitments, Gryphon has an extensive track record of investing up to $100 million of its committed capital per investment in companies with sales ranging from approximately $50 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, professional resources and operational expertise.