Gryphon Investors announced it has acquired Safety Management Group, a provider of outsourced Environmental, Health, and Safety (EH&S) services, from NMS Capital in a deal that establishes a new platform investment focused on outsourced safety services. Financial terms were not disclosed.
Founded in 1991 and headquartered in Indianapolis, Safety Management Group provides safety, compliance, and risk-management programs that combine consulting, embedded on-site execution, and technology. The company supports customers in sectors where safety performance is mission-critical, including data centers, pharmaceuticals, utilities, and manufacturing, and uses its proprietary VERO SaaS platform for contractor pre-qualification, compliance management, and real-time safety performance visibility.
SMG Chief Executive Officer Randy Gieseking and the existing management team will remain in place and retain a meaningful ownership stake. Gryphon said it plans to pursue organic growth and M&A, citing opportunities to expand geographically, broaden SMG’s offerings, and execute add-on acquisitions in what it described as a fragmented EH&S market.
Houlihan Lokey advised Gryphon financially and Kirkland & Ellis served as legal counsel. Stifel advised SMG, with Greenberg Traurig as legal counsel to the company.
KEY QUOTES:
“Gryphon’s deep experience growing similar technical services businesses will position SMG to take advantage of robust organic and M&A opportunities. We look forward to working closely with the Gryphon team and their differentiated, integrated deal and operations model as we continue to innovate and build upon our success.”
Randy Gieseking, CEO, Safety Management Group
“We are excited to partner with Randy and the SMG team to grow the business and further position the Company as a market leader. Gryphon’s investment is the result of a proactive theme-based approach, as we recognize the significant importance of safety across many of our portfolio companies and the broader services sector. SMG has built a strong reputation as the go-to-provider for outsourced safety consulting and has demonstrated consistent growth in essential industries with strong tailwinds.”
Jeff Pembroke, Operating Partner and Co-Head, Gryphon Heritage Group
“We believe there is an opportunity to continue to scale a market-leading business by expanding geographic presence, further building out the Company’s existing offerings, and executing on strategic M&A in the fragmented Environmental, Health, and Safety (EH&S) market. SMG stood out to us as an industry leader with extremely talented employees and long-standing, embedded relationships with customers who view the Company as a true value-added partner. We are excited to work with the entire SMG team.”
Tim Bradley, Deal Partner, Gryphon Heritage Group
