Kohlberg & Co. acquired Ob Hospitalist Group, which provides customized obstetric hospitalist programs, from Gryphon Investors. Ob Hospitalist’s management team will stay with the company and retain a significant stake.
Ob Hospitalist Group (“OBHG” or the “Company”), the nation’s largest and only dedicated provider of customized obstetric (“OB”) hospitalist programs, announced today that Kohlberg & Company, LLC (“Kohlberg”), a leading private equity firm headquartered in New York, has acquired the Company from Gryphon Investors (“Gryphon”). The Company’s management team is remaining with OBHG and will retain a significant stake in the Company.
Founded in 2006, OBHG is the nation’s largest provider of obstetric hospitalists, highly trained doctors who provide patient care exclusively in a hospital setting. The Company has a national network of over 1,100 obstetric clinicians serving approximately 200 partner hospitals across 34 states. Through its obstetric hospitalist programs, typically consisting of an OB/GYN onsite 24/7 and an obstetric emergency department (OBED), the Company improves the standard of care for expectant mothers by ensuring consistent and unconditional access to medical care at hospitals nationwide. OBHG’s collaborative approach to partnering with community physicians and hospital leadership, combined with its deep, singular focus on OB hospitalist medicine, uniquely enables OBHG to improve clinical quality, reduce medical risk and increase efficiency of care.
Lenny Castiglione, CEO of OBHG, said, “Gryphon has been an excellent partner, bringing passion for our mission, expert guidance, and strategic resources to position OBHG for the next evolution of our impact on the landscape of women’s health. We appreciate their contributions and are thrilled to now align with Kohlberg as we continue to pursue our goal of expanding access for women and their families to the OBHG standard of care.”
Evan Wildstein, Partner of Kohlberg, said, “We are excited to partner with Lenny and the OBHG team to support the Company’s best‐in‐class clinical care. OBHG is well‐positioned as the market‐leading obstetric hospitalist services provider with a unique value proposition, positively impacting patient lives and outcomes while also delivering value to physicians and hospital partners.”
Nick Orum, Gryphon’s President and Co‐Head of the firm’s Healthcare Group, added, “Gryphon is delighted to have supported OBHG with the resources needed to further establish itself as the best‐in‐ class company in outsourced obstetric services. The Company provides timely, coordinated, and safer patient care, while improving the work‐life balance for obstetric physicians.”
Kevin Blank, Gryphon Healthcare Operating Partner, commented, “The Company has made significant progress engaging physicians, improving clinical quality, reducing medical risk, and increasing the efficiency of delivery care, creating better outcomes for expectant mothers while setting the Company up for its next phase of its growth.”
Moelis & Company LLC and J.P. Morgan Securities LLC served as financial advisors to OBHG and Kirkland & Ellis LLP served as legal counsel. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Kohlberg. Antares Capital and Owl Rock Capital led the debt financing for the transaction.
About Ob Hospitalist Group
OBHG, founded in 2006, is the leading national provider of 24/7 obstetric coverage, serving approximately 200 hospitals across 34 states. Headquartered in Greenville, South Carolina, OBHG’s national network of over 1,100 skilled and dedicated obstetric physicians provides best‐in‐class critical care while improving patient safety and clinical outcomes. The Company’s specialized services benefit patients, physicians, payors, community OB/GYN groups, and hospitals, and supports long‐term growth for its partners. For more information, please visit www.obhg.com.
About Kohlberg & Company, LLC
Kohlberg & Company, LLC (“Kohlberg”) is a leading private equity firm headquartered in Mount Kisco, New York. Since its inception in 1987, Kohlberg has organized nine private equity funds, through which it has raised over $12 billion of committed equity capital. Over its 35‐year history, Kohlberg has completed 87 platform investments and approximately 200 add‐on acquisitions, with an aggregate transaction value of nearly $30 billion. For more information, please visit www.kohlberg.com.
About Gryphon Investors
Based in San Francisco, Gryphon Investors is a leading private equity firm focused on growing and enhancing mid‐market companies in partnership with management. The firm has managed over $5 billion of equity investments and capital since 1997. Gryphon targets making equity investments of $50 million to $300 million in portfolio companies with sales ranging from approximately $100 million to $600 million. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources, and operational expertise. For more information, visit www.gryphoninvestors.com.