FFL Partners said Oct. 15 that it agreed to sell Crisis Prevention Institute to Wendel. Financial terms weren’t announced. Crisis Prevention, of Milwaukee, Wisconsin, provides crisis prevention and intervention training programs to help professionals respond to anxious, hostile and violent behaviors with safe and effective methods. Wendel, in a separate statement, said it is investing about $590 million for 98 percent of CPI. UPDATE: The enterprise value of the deal is $910 million.
FFL Partners Agrees to Sell Crisis Prevention Institute to Wendel
Successful Sale Positions CPI to Pursue Next Chapter of Growth
SAN FRANCISCO – OCTOBER 15, 2019 – FFL Partners (“FFL”), a private equity firm focused on growth investments in middle market companies, today announced that it has reached an agreement to sell Crisis Prevention Institute (“CPI” or “the Company”), the leading provider of behavior management and crisis prevention training programs. The sale to Wendel, one of Europe’s leading listed investment firms, is expected to close in the fourth quarter of 2019, subject to customary conditions and regulatory approvals.
Headquartered in Milwaukee, Wisconsin, CPI has been providing crisis prevention and intervention training programs to help professionals respond to anxious, hostile and violent behaviors with safe and effective methods for nearly four decades. The Company’s training has been proven to reduce the frequency and impact of incidents resulting from aggressive behavior in the workplace, improve professionals’ confidence levels, help customers comply with regulatory requirements, and create a safer environment for all involved.
“We have enjoyed partnering with CEO Tony Jace and his management team over the last three years to support the significant growth at CPI. They’ve done an incredible job of developing market-leading training solutions for their clients that prevent, as well as de-escalate, workplace violence,” said Cas Schneller, Partner at FFL. “This transaction represents an excellent outcome for our investors, reflecting the operating expertise and strategic resources FFL brings to bear on the middle market businesses in which we invest alongside our management partners, while it leaves CPI well positioned for continued growth and meeting the ongoing demand for nonviolent crisis intervention training in North America, Europe and worldwide.”
“The growth initiatives undertaken during our partnership have created the potential for CPI to positively impact millions of additional lives by extending their reach deeper into organizations,” said Karen Winterhof, a Director at FFL. “We’re proud to have been part of a business that has helped to ensure professionals and vulnerable populations, including patients and students, remain safe in their respective environments. We wish CPI and their team continued success under new ownership.”
Since FFL’s investment in 2016, CPI has made significant transformative investments across the organization. The Company has built a robust product development function, implemented key tech-enabled business processes and developed stronger eLearning capabilities. CPI has also successfully launched Healthcare 360, a comprehensive offering of crisis prevention solutions that addresses health systems’ needs across the risk spectrum. Under FFL’s ownership, revenue has grown at a 15% CAGR, compared to an 11% CAGR the 5 years prior.
“We are grateful for the support and resources FFL Partners provided to CPI, and look forward to our long-term partnership with Wendel as we seek to further expand CPI’s reach and continue to make a difference in the lives of our customers,” said Jace, CEO of CPI.
CPI specializes in “train the trainer” programs that teach and certify individuals to instruct staff at their organizations to assess, manage, and safely resolve instances of high-risk, disruptive or aggressive behavior in the workplace. The Company employs 316 people globally and has an installed base of approximately 38,000 active Certified Instructors, training over 1.4 million individuals annually and more than 15 million professionals in North America, Europe and elsewhere since inception.
Raymond James Financial, Inc. and Harris Williams served as financial advisors to CPI, and Willkie Farr & Gallagher LLP served as its legal advisor.
About FFL Partners
FFL Partners is a San Francisco-based private equity firm with over $4.5 billion under management. For over twenty years, the firm has helped build industry-leading companies, providing capital and advice to exceptional management teams to grow businesses and unlock value. FFL has deep experience in investing and operations, and has brought large-company best practices and professional networks to smaller companies. Business growth has provided over 75% of the value created by FFL for its investors. FFL invests in business services, industrials, consumer products and services, financial services, and healthcare services. For additional information about FFL, please visit FFL’s website at www.fflpartners.com.
Crisis Prevention Institute is a world leading training organization specializing in the safe management of disruptive and assaultive behavior. The Company’s Nonviolent Crisis Intervention® training program is embraced worldwide by organizations committed to providing quality care and services in a respectful, safe environment. The strategies taught in the Nonviolent Crisis Intervention® training program provide staff members with an effective framework for decision making and problem solving to prevent, de-escalate, and safely respond to disruptive or assaultive behavior. The philosophy relating to Care, Welfare, Safety, and SecuritySM expands throughout the continuum of interventions that are necessary when working toward reduction or elimination of restraint use. For more information: https://www.crisisprevention.com