In a Business section article Thursday, the annual revenue from health and energy work of Lewin and Associates and ICF Inc. were misstated. Lewin's health-care practice has revenues of about $5 million; its energy practice has revenues of about $4 million. ICF's health-care practice has revenues of about $3 million; its energy practice, revenues of about $6 million. A headline for the article misspelled the Lewin firm's name. (Published 8/29/87)
ICF Incorporated, a Washington consulting firm specializing in environmental and health care issues, has reached agreement to acquire Lewin and Associates Inc., a consulting firm specializing in health care and energy issues.
Under terms of a tentative agreement to be signed this morning, the transaction will be a stock swap with no cash involved, officials from both companies said yesterday. After the deal is completed, current shareholders in Lewin and Associates will own about one-sixth of the combined company, according to ICF Chairman James Edwards.
After the acquisition, ICF will have more than 900 employes with revenue of more than $75 million in the current year, Edwards said.
As part of the agreement, Lewin and Associates President Lawrence Lewin and Executive Vice President Vello Kuuskraa will become members of ICF's board of directors.
The addition of Lewin and Associates' health care and energy operations will give ICF the largest consulting practice in both fields, according to Edwards.
"I think we'll be extremely well-positioned in both the health and energy market. In those areas, you won't find any other consulting firm that will be able to match us for size and range of skills," Edwards said.
"This merger is a logical outcome of years of working together and of a shared concern for improving public policy processes and promoting the vitality of the private sector," Lewin said.
ICF's health care practice has annual revenue of about $6 million and its energy practice has revenue of about $3 million. Lewin's health care practice has annual revenue of about $3 million and its energy practice has revenue of about $6 million, Edwards said.
The much-larger ICF also does considerable consulting work in other areas, such as engineering services and information systems.
Edwards said the move would also help "round out" the range of services each firm could provide its clients. ICF is noted for its sophisticated data processing and computer modeling in the health care field, while Lewin and Associates gets high marks for its strategic planning and management expertise, industry experts say.
In the energy area, Lewin's strengths are in the oil and natural gas industries, while ICF has focused on coal and electric utilities.
The health care consulting market has grown rapidly in the 1980s, industry analysts say, as the federal government has increased its supervision of the health care system.
At the same time, according to Kevin Nolan, a strategic planning director at the accounting firm of Ernst and Winney, "cutbacks in government funding for health care have made it imperative for health care providers to operate more efficiently."
"People are beginning to recognize that in many respects, health care is a business," said Nolan. "Doctors and hospitals, who have traditionally not had to think about marketing, are becoming increasingly consumer-oriented, providing people with services in the environment they want when they want."
The market for energy consultants, by contrast, has been sluggish in recent years because of the drop in the price of oil and poor performance of many of the nation's coal companies, analysts say