NEW YORK, New York. – February 4, 2003 – New Mountain Capital, L.L.C. (“New Mountain”), a leading New York based private equity fund, today announced the acquisition of CP Commercial Specialists (CPCS) from ChoicePoint (NYSE: CPS) for $87 million in cash. The transaction is expected to close by the end of February.
CP Commercial Services, based in Overland Park, Kansas and established in 1952, is the nation’s leading independent provider of premium audits and property surveys to the insurance industry, as well as a leading provider of inspection services for the government and for other industries requiring similar capabilities. CPCS has been a core part of ChoicePoint’s business since the company went public in 1997.
Bob Wickizer, General Manager of CPCS said, “The CPCS team intends to aggressively develop the scale and breadth of the company’s nationwide service offerings in order to meet the growing needs for outsourced services from our core clients in the insurance, financial and government sectors. CPCS management is eager to work with New Mountain due to their proven ability to help growth companies like ours achieve their full potential.”
“We believe that CPCS is the clear leader in a largely untapped market, with an outstanding financial track record and tremendous opportunities for growth,” stated Steven B. Klinsky, Founder and Chief Executive Officer of New Mountain Capital. “We look forward to working with the CPCS management team to expand upon their market leading position and to support their continued execution of value-added outsourcing.”
ChoicePoint (NYSE: CPS) is the leading provider of identification and credential verification services for making smarter decisions in today’s fast-paced world, serving the information needs of business, government, non-profit organizations and individuals. ChoicePoint is committed to protecting personal privacy and promoting the responsible use of information to help create a safer world. For more information about ChoicePoint, visit the company’s Web site at www.choicepoint.com.
About CP Commercial Services
CP Commercial Services, based in Overland Park, Kansas and established in 1952, is the nation’s leading independent provider of premium audits and property surveys to the insurance industry, as well as a leading provider of inspection services for the government and for other industries requiring similar capabilities. CP Commercial Specialists has approximately 1,100 employees and 24 branch offices nationally, through which representatives perform audits, underwriting surveys and valuation services for businesses and insurance companies in the United States, parts of Canada and Puerto Rico.
About New Mountain Capital
New Mountain Capital, LLC is the sponsor of New Mountain Partners, L.P., a $770 million fund which seeks exceptional long-term capital appreciation through private equity and equity-related investments. New Mountain chiefly pursues the highest-quality growth companies in carefully selected industries, and then works closely with management after the acquisition to build value. In May 2001, New Mountain acquired control of Strayer Education, Inc., a leading provider of graduate and undergraduate degree programs focusing on working adults. The market value of Strayer has increased 140%, from $342 million to $820 million, during the twenty months of New Mountain’s investment. In July 2002, New Mountain announced its investment in Surgis, Inc., a surgical services company, which owns and manages ambulatory surgery centers in partnership with physicians and hospitals. Today, Surgis is one of the nation’s two leading privately owned surgery center companies. New Mountain’s web site is www.newmountaincapital.com.