On December 23, 2019, Wendel announced it had finalized the acquisition of Crisis Prevention Institute (CPI) from FFL Partners for an enterprise value of $910 million. As part of the transaction, Wendel invested approximately $569 million in equity and holds around 96% of the capital alongside CPI’s management and other minority shareholders.
Headquartered in Milwaukee, WI, Crisis Prevention Institute is the US leader in behavioral management training and crisis prevention services. CPI has conducted crisis prevention training for the past 40 years, helping professionals de-escalate violent and hostile behavior efficiently and safely. The company’s training programs have proven their efficiency in reducing the frequency and impact of incidents occurring in the workplace, thereby strengthening customers’ confidence in their ability to manage these situations. In this way, CPI helps clients comply with their regulatory obligations and create a safer environment for employees and the people for whom they are responsible.
CPI deals with behavioral disorders essentially for customers in healthcare and education and increasingly in personal care services, as well as in other sectors exposed to similar behavior. CPI has also grown internationally in recent years and now derives more than 20% of its revenue from outside the United States, principally in Canada, the United Kingdom, Australia and New Zealand.
Between August 2018 and August 2019, CPI posted revenue of $86 million and adjusted EBITDA of $39 million. Over the long term, the company has achieved a free cash flow conversion ratio in excess of 90%*. Since 2008, CPI’s annual revenue has grown by 13% on average, and virtually all of that growth has been organic.
* Free cash flow conversion ratio = (Adjusted EBITDA – Capex)/Adjusted EBITDA.