Gryphon Healthcare Deal All Sewn Up –

The demand for healthcare coupled with the shortage of physicians in the U.S. right now is leaving some people in a predicament about where to turn for healthcare services. Gryphon Investors and Marcy Consulting Group are offering a solution-physician recruiting services.

Gryphon Investors along with Marcy Consulting Group, led by former Spherion Corp. Chairman and CEO, Ray Marcy, have acquired Linde Healthcare and Kendall & Davis. Though there were no specific financial terms disclosed, the transaction was financed with 50% equity and 50% debt. The funds that Gryphon used for this transaction were its Gryphon Partners II and Gryphon Partners III.

These physician recruiting firms, founded in 1972, are based in St. Louis, Missouri and serve more than 3,000 clients in various healthcare organizations.

This was an attractive acquisition for Gryphon and Marcy, as it complements their prior acquisition of Nursefinders Inc., a provider of nurses, home health aides, therapists and other healthcare professionals to over 4,700 healthcare facilities.

“Nursefinders is one of the largest nurse staffing companies in the country,” said Nick Orum, partner at Gryphon. “We are interested in diversifying the services it offers to its clients and physician staffing is one of the fastest growing staffing industries, as well as the fastest growing healthcare staffing industry.”

Jim Kendall, founder of Kendall & Davis and partner in Linde Healthcare, said that they were approached by other investors, but didn’t decide to sell until they were contacted by Gryphon and Ray Marcy.

Orum said that Linde and Kendall & Davis may have been inclined to sell to Gryphon/Marcy because they believe in the strength of the synergies between their business and Nursefinders. He added that another factor may have been Linde’s and Kendall & Davis’s comfort with and confidence in Marcy and Bob Livonius, CEO of Nursefinders.

Marcy will become the executive chairman of Linde Healthcare and Kendall & Davis. In addition, Jim Kendall, Patrick Donovan, founding partner of Linde Healthcare, and the existing management teams will stay in place post-acquisition. However, Steve Lindemann, a founding partner of Linde Healthcare, will be moving on.

In addition to structuring the new management team, Gryphon/Marcy will focus their efforts on growing the new acquisition.

“We plan to help build their business through introductions to Nursefinders existing clients, to undertake further add-on acquisitions of physician staffing companies in other regions of the country and to continue to gain share in this growing industry,” said Orum.

The staffing sector is a very familiar one for Gryphon. Other than these new acquisitions and its investment in Nursefinders, Orum also notes the firm’s investment in Update Legal, the nation’s leading independent provider of temporary legal professionals to law firms and corporate clientele.