Gryphon and Portfolio Company News

Gryphon Investors Sells Accelerated Rehabilitation Centers To OMERS Private Equity

San Francisco, CA -

Gryphon Investors (“Gryphon”), a San Francisco-based private equity firm, announced today that it completed the sale of its portfolio company, Chicago-based Accelerated Rehabilitation Centers (“Accelerated”), to OMERS Private Equity (“OMERS”), the private equity arm of the OMERS Worldwide group of companies, a Canadian pension fund. Accelerated is one of the nation’s premier providers of outpatient physical therapy services with 223 clinics in eight states. Terms of the transaction were not disclosed.

Gryphon Investors recapitalized Accelerated in partnership with the company’s founding management team in March of 2008. Under Gryphon’s ownership, Accelerated roughly doubled the size of their footprint from 110 to 223 clinics and tripled EBITDA in just over three years. With Gryphon’s support, management led six acquisitions, opened 36 new clinics and expanded operations into three new states. “We are delighted that this sale will result in attractive returns for our limited partners and for Accelerated’s management team,” said David Andrews, Gryphon’s CEO and Managing Partner.

Eric Warner, the CEO of Accelerated, said, “Gryphon has been a value added partner, particularly with regard to our growth plans in opening new outpatient clinics, closing acquisitions and expanding our geographic footprint. Despite the challenging economic conditions during the past couple of years, we were successful in building a significantly larger, more diversified business which provided high quality clinical care to over 83,000 patients last year. We are enthusiastic about partnering with OMERS and are well positioned for our next phase of growth.”

John Rogers, a Gryphon Partner and the head of Gryphon’s Healthcare and Education Group, noted, “Building on Gryphon’s successful track record in healthcare services, we proactively targeted outpatient physical therapy as an attractive industry and identified Accelerated as one of the strongest platforms in that sector. It was unusual to find a management team of such depth in a company of Accelerated’s size when we met them, and they have proven their capacity to drive growth and excellence in clinical outcomes.”

In connection with the transaction, Jefferies & Company, Inc. acted as lead financial advisor and Piper Jaffray acted as a financial advisor to Accelerated and Gryphon Investors. Kirkland and Ellis provided legal counsel and the Marwood Group provided regulatory and reimbursement due diligence services.

About Accelerated Rehabilitation

Accelerated has grown to 223 owned and managed physical therapy clinics in Illinois, Indiana, Iowa, Michigan, Missouri, Ohio, Wisconsin and Arizona. Along with Accelerated’s emphasis on orthopedic and sports rehabilitation, the company specializes in hand therapy and rehabilitation for work related injuries and women’s health. In addition, Accelerated offers rehabilitation services to nursing homes, long-term care facilities, and home care providers and provides athletic training services to schools, teams, clubs and other sports-related venues. Accelerated was recapitalized in March of 2008 by Gryphon Investors.

About Gryphon Investors

Based in San Francisco, Gryphon Investors focuses on leveraged acquisitions of, and growth investments in, middle-market companies in partnership with experienced management. Having managed more than $1 billion of discretionary equity capital, Gryphon has an extensive track record of investing $25 to $75 million of its own capital in companies with sales ranging from $25 to $250 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 significant financial and operational expertise. Visit for more information.


Caroline Luz

Lambert & Co.