Gryphon Acquires SMG, Forging New Platform in Booming Safety Market

SAN FRANCISCO, CA – January 08, 2026 – In a strategic move highlighting private equity's growing appetite for essential business services, Gryphon Investors has acquired Safety Management Group (SMG), a leading provider of outsourced workplace safety solutions. The deal, announced today, positions the Indianapolis-based SMG as a new platform for Gryphon, signaling a concerted effort to consolidate the burgeoning and fragmented Environmental, Health, and Safety (EH&S) market.

The acquisition from NMS Capital, for which financial terms were not disclosed, is more than a simple change of ownership. It marks the launch of a "buy-and-build" strategy, with Gryphon planning to leverage SMG's established reputation and integrated service model to acquire complementary businesses and create a dominant force in workplace safety and compliance. SMG's CEO, Randy Gieseking, and the current management team will continue to lead the company and will retain a significant ownership stake.

Private Equity's Bet on a Fragmented Market

Gryphon's investment is a calculated entry into the rapidly expanding EH&S services sector, a market valued at over $42 billion in 2023 and projected to exceed $63 billion by 2029. This growth is fueled by a confluence of powerful trends: increasingly stringent government regulations from bodies like OSHA and the EPA, a heightened corporate focus on Environmental, Social, and Governance (ESG) goals, and the operational complexities of managing risk in high-stakes industries.

The EH&S market, however, remains highly fragmented, composed of numerous smaller, regional players and specialized consultancies. This landscape makes it an ideal target for private equity firms like Gryphon, which specialize in a platform strategy: acquiring a strong core company and systematically adding smaller "bolt-on" acquisitions to expand geographic reach, deepen service offerings, and achieve scale.

"We are excited to partner with Randy and the SMG team to grow the business and further position the Company as a market leader," said Jeff Pembroke, Operating Partner and Co-Head of Gryphon's Heritage Group. "Gryphon's investment is the result of a proactive theme-based approach, as we recognize the significant importance of safety across many of our portfolio companies and the broader services sector."

This theme-based approach is supported by Gryphon's highly differentiated Operations Resources Group, an in-house team of senior executives who provide expertise in everything from technology integration to human capital, suggesting a hands-on partnership aimed at accelerating SMG's growth trajectory.

The Integrated Model: Tech Meets On-the-Ground Expertise

At the heart of the deal's strategic value is Safety Management Group's unique, integrated business model. Founded in 1991, the company has moved beyond traditional consulting by combining high-level strategic advisory services with embedded, on-site safety professionals and a proprietary technology platform.

This three-tiered approach allows SMG to serve clients from the executive suite to the factory floor. The company provides strategic assessments and program development, places its more than 300 credentialed safety advisors directly at client sites, and underpins it all with VERO, its proprietary SaaS platform. VERO is designed to streamline critical EH&S functions like contractor pre-qualification, compliance tracking, and performance analytics, providing clients with real-time visibility into their safety operations.

What sets VERO and SMG apart in a crowded market of standalone EHS software providers is this very integration. The platform was developed by safety professionals for safety professionals, and its support is handled by SMG's own experts, not a call center. This combination of scalable technology and high-touch human expertise has made SMG an indispensable partner for major organizations in mission-critical sectors like data centers, pharmaceuticals, utilities, and advanced manufacturing, where safety and compliance are non-negotiable.

"SMG stood out to us as an industry leader with extremely talented employees and long-standing, embedded relationships with customers who view the Company as a true value-added partner," noted Tim Bradley, a Gryphon Deal Partner.

Building a Safety Services Powerhouse

With Gryphon's backing, SMG is now poised for a new phase of aggressive expansion. The explicit goal is to use the company as a foundation to build a larger, more comprehensive entity through strategic M&A. This strategy aims to address key opportunities within the fragmented EH&S landscape.

"Gryphon's deep experience growing similar technical services businesses will position SMG to take advantage of robust organic and M&A opportunities," stated CEO Randy Gieseking, signaling his team's alignment with the growth-focused plan.

Industry analysts anticipate that SMG will actively seek to acquire firms that can either expand its geographic footprint into new regions or deepen its portfolio of offerings. Potential targets could include companies with specialized expertise in environmental consulting, industrial hygiene, process safety management, or niche training and certification programs. Acquiring smaller technology firms with innovative tools in areas like AI-driven risk prediction or IoT-enabled safety monitoring could also be on the table to further enhance the VERO platform's capabilities.

This "buy-and-build" approach is designed to create a one-stop-shop for clients, offering an unparalleled breadth and depth of services that smaller competitors cannot match. By consolidating specialized expertise under one roof, the new SMG platform will be better equipped to handle the complex, enterprise-level safety challenges of its multinational clients.

Ripple Effects Across the Industry

The Gryphon-SMG transaction is expected to send shockwaves through the EH&S services industry. The creation of a well-capitalized, acquisition-focused platform will likely accelerate the trend of market consolidation. Other private equity firms may be spurred to find their own platform assets, while existing large players may become more aggressive in their own M&A activities to keep pace.

For smaller, independent EH&S consultancies, this development presents both a challenge and an opportunity. They will now face a larger, more formidable competitor with significant financial backing and a comprehensive technology-enabled service offering. However, many of these smaller firms, particularly those with strong regional footholds or unique specializations, will also become attractive acquisition targets for the expanding SMG platform.

Ultimately, the deal underscores a fundamental shift in the workplace safety industry. The future belongs to providers who can seamlessly blend expert human guidance with powerful, data-driven technology. As companies continue to navigate an increasingly complex web of risks and regulations, the demand for integrated, scalable, and outsourced solutions like those championed by SMG is only set to grow, and Gryphon Investors is betting heavily on that future.