Private equity firm Vestar Capital Partners, New York, will acquire a majority stake in Press Ganey Associates, a healthcare quality consulting firm, from American Securities Capital Partners, a New York-based private equity firm. Terms of the deal, which is expected to close in the first quarter of this year, were not disclosed.
Glenn Kaufman, a managing director with American Securities Capital and chairman of Press Ganey, declined to give a percentage increase in the company's original investment, but said "it's earned outstanding returns for our investors." American Securities Capital held a stake in Press Ganey for roughly five years. Kaufman said the company exited after reaching certain growth targets. "This business has really grown up," he said.
Roger Holstein, Vestar's managing director, said the company's capital will allow Press Ganey to enhance its information technology capabilities.
Press Ganey managers who hold an interest in the company "continue to be substantial investors in the business," according to a news release announcing the deal. The company's management will remain in place.