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2008 Year In Review, A Record Year
Completed 31 acquisitions spanning all four Riverside fund families:
11 by the Riverside Europe Fund (“REF”)
11 by the Riverside Capital Appreciation Funds
(“RCAF”)
7 by the Riverside Micro-Cap Fund (“RMCF”)
2 by the Riverside Asia Fund (“RAF”)
Global expansion:
New offices in Brussels, Stockholm and Hong Kong
Realised Investments:
Richter Chemie-Technik (Germany) - Grew EBITDA
by 60% during Riverside’s ownership
IndustrieHansa (Germany) - Achieved an EBITDA
CAGR of 37% due to organic growth and an
add-on acquisition
Universal Air Filter (USA) - Generated a 80%
gross IRR and a 4.8x gross cash-on-cash return
Moss (USA) - Generated a 33% gross IRR
and a 4.2x gross cash-on-cash return
The Riverside Company, the largest private equity firm focused on the smaller end of the middle
market, marked its 20th anniversary year with a record acquisition pace and continued growth
and expansion across Europe. In 2008, Riverside was THE most acquisitive firm active in the middle
market, completing 31 acquisitions across 4 continents. In addition, Riverside successfully exited
four platform companies and raised over US$1 billion across three funds. Riverside currently has
US$2.7 billion assets under management and almost 200 employees worldwide.
P A R T N E R S H I P , G R O W T H , I N T E G R I T Y
Riverside Deal Flow 2008
4,381 Deals Considered
1,350 Deal Write-Ups
357 Company Visits
51 Letters of
Intent Issued
31 Deals Closed
Raised over US$1 billion in capital across three funds. *All figures accurate as of 31/12/2008.
Pablo FuenteAssistant Director
Marketing & Communications
Brussels
Eva OrbayManager of European
AdministrationBrussels
Riverside Europe Fund (‘REF’) 2008 Highlights
Meet the Europe Team
EM Test
Switzerland
Acquired: March 2008
EM Test is a leading global manufacturer and supplier
of electromagnetic compatibility (“EMC”) test and
measurement instrumentation for the automotive,
industrial, telecom and other industries.
www.emtest.com
Sage Holdings
Germany
Acquired: February 2008
Sage Holdings provides corporate financial
communication and proxy solicitation services.
www.sageholdings.com
InvestmentsREF III - Platform Acquisitions
Tensator Group
United Kingdom
Acquired: August 2008
Tensator provides custom space management
solutions that accelerate queues, reduce wait times,
generate marketing value and improve sales.
www.tensator.com
Vokes Air Group
Sweden
Acquired: July 2008
Vokes-Air Group is a manufacturer and distributor
of air filters for use in a variety of commercial and
industrial applications.
www.vokesair.com
Summit Medical
United Kingdom
Acquired: March 2008
Summit Medical makes disposable orthopaedic and
infection-control medical products.
www.summit-medical.co.uk
Riverside’s European fund family currently consists of 16 platform acquisitions and seven
add-ons. In 2008 Riverside completed 11 acquisitions in key European markets – up from four in
2007. We also realised two investments and celebrated office openings in Brussels and Stockholm.
Béla SzigethyCo-CEO
New York
Karsten Langer PartnerBrussels
Origination
Transaction
Operating Legal Marketing Administration
Lars ErikssonRegional Director
Stockholm
Juan Barnechea AldatzVice President
Madrid
Pawel OkonskiVice President
Warsaw
Ivica TurzaVice President
Munich
William JaworskiAssociateBrussels
Damien GaudinAnalyst Brussels
Áron SzabóAnalystBrussels
Kai KoeppenPartnerMunich
Ferenc VidovszkyPartner
Budapest
Eric van den Eijnden Partner
Eindhoven
Radim StachPartnerPrague
Volker SchmidtPartnerMunich
Thomas BlomqvistPartner
Stockholm
Marcos LladóPartnerMadrid
Tomasz GlowackiPartnerBrussels
Peter SchabergerPrincipalMunich
Dominik HeerVice President
Munich
Ludek PalataVice President
Prague
Vladimír PavalaVice President
Prague
Adam PietruszkiewiczVice President
Warsaw
Balázs TahyVice President
Budapest
Peter ParmentierDirector European
Tax & Legal Counsel Brussels
Jeroen LenssenSenior Associate
Eindhoven
Annick VandenbergenAssociate Legal Counsel
Brussels
Marcin GoszykAssociateWarsaw
Justin S. KentAssociateMunich
Rafael Álvarez-NovoaAssociateMadrid
Nils SchanderAssociateStockholm
Sven SchulzeAnalystMunich
Fabio PesiriCFO Riverside Europe
Brussels
Stewart Kohl Co-CEO
Cleveland
Antonio Alvares Cabral Managing Partner
Brussels
P A R T N E R S H I P , G R O W T H , I N T E G R I T Y
Riverside in Europe
Since 1997, Riverside Europe has invested in 35 companies in 12 countries,
including 8 add-on acquisitions.
Riverside’s European staff numbers 48 including a dedicated origination
function, 21 transacting professionals and team of operating personnel
and advisors. For a private equity firm focused on small-to-medium sized
businesses, the Riverside team has a unique blend of corporate finance
and operating experience. Several of our investment professionals have
personal prior experience running companies, a factor, which we believe
makes building partnerships with portfolio company managers more
straightforward. We have lived many of the issues managers face.
Funds: REF IV (2008); REF III (2005); REF II (2002);
RCEF (1997)
Target Acquisitions:
European companies with EBITDA of between
€3 million and €15 million.
Offices: Brussels, Budapest, Eindhoven, Madrid,
Munich, Prague, Stockholm and Warsaw.
REF Deal Flow 2008
1,101 Deals Considered
429 Deal Write-Ups
104 Company Visits
12 Letters of
Intent Issued
11 Deals Closed
RealisationsRichter Chemie-Technik
Germany
Acquired: January 2006
Exited: October 2008
Results: Grew EBITDA by 60%
“The organic expansion went even better than
expected. There was a very good and trusting
relationship with Riverside. From the very beginning
we were always on top of our plans. It was a very
positive situation. The experience gained with
Riverside will stand me in very good stead for that.
What we did in those three years was incredible.”
Günter Naasner, CEO, Richter
IndustrieHansa
Germany
Acquired: December 2006
Exited: July 2008
Results: 136% gross IRR
5.0x gross cash-on-cash return
“Our partnership with Riverside afforded us the
opportunity to build IndustrieHansa as its own
brand. In addition, we were able to secure new
blue chip customers such as Audi and Ford, which
positioned the company at a new level. Coupled
with expanding our competencies into the product
lifecycle management area, we have found the
support of Riverside to have been very successful
for the company.”
Uwe Hihn, CEO, IndustrieHansa
Investments cont.REF III – Add-On Acquisitions
Capital Precision
United Kingdom
Add-On to: Sage Holdings
Acquired: November 2008
www.capitalprecision.com
Hallvarsson & Halvarsson
Sweden
Add-On to: Sage Holdings
Acquired: October 2008
www.halvarsson.se/en
Metrolab
Argentina
Add-On to: IVD Group/Diatron
Acquired: October 2008
www.metrolab.com
MekoTeknik AB
Sweden
Add-On to: Keycast
Acquired: July 2008
www.mekoteknik.se
AICAT Technologies
Germany
Add-On to: AIS Group
Acquired: June 2008
Exited: October 2008 as part of IndustrieHansa
www.aicat.de
D.F. King
USA
Add-On to: Sage Holdings
Acquired: February 2008
www.dfking.com
“The acquisition of Metrolab accelerates Diatron’s strategy to create a powerful group in the IVD field. Metrolab has the potential to significantly extend our geographical reach and the companies are expected to bring new markets to each other.” Gábor Lengyel, Head of Sales, Diatron
Tensator: Expanding A Unique Market Position
“Tensator has proven capable of identifying
needs in the queuing industry, then innovatively
meeting those needs with new products. The
company offers more than 500 SKUs and is poised
for continued growth. One area of focus will be
further international expansion, both through
organic growth, as well as through potential add-
on acquisitions which we will actively seek out.”
Eric van den Eijnden, Partner, Riverside
www.tensator.com
Since being acquired by Riverside in 2008, Tensator
has added French distribution company, Bory
Moreau S.A., to its portfolio. Bory Moreau, the
primary distributor of Tensator products in the
French market, presented Tensator with a well-
established customer base (Air France, Aeroports
de Paris, Euro Disney and the Parisian mass
transportation authority RATP among others) upon
which it can build further. Tensator is also in the
process of establishing its sales office in Spain
and analyzing manufacturing solutions that could
substantially decrease its variable cost base.
Available in more than 170 countries worldwide, Tensator, together with its U.S. subsidiary Lawrence
Metal Products, is the world leader in queue management products and services. Since 2002, the
company has pioneered custom space management solutions that reduce both real and perceived
in-queue waiting times, generate marketing value and increase sales and operational efficiency.
Tensator’s flagship product, Tensabarrier®, is omnipresent in airports, banks, entertainment venues,
retail spaces and other queuing areas around the globe. Tensabarrier®, consisting of a metal post
with a retractable, customizable sleeve that interconnects with other posts, provides a dynamic
queuing solution for a diverse range of end-users such as Heathrow Airport, Barclays, Macy’s,
Southwest Airlines, Target and The Empire State Building.
“We are excited about what Riverside’s global capabilities and expertise in growing companies can do for our business. We are looking forward to assistance from Riverside for Asia sourcing and expansion and will rely on their experience in this area in order to strengthen our leadership position in the queue management market.” Alan McPherson, Group CEO, Tensator
P A R T N E R S H I P , G R O W T H , I N T E G R I T Y
C A S E S T U D Y
Riverside Capital Appreciation Fund (‘RCAF’) Highlights
HerbThyme Farms
USA
Acquired: April 2008
HerbThyme Farms is the largest year-round grower,
shipper and marketer of conventional and certified
organic fresh culinary herbs in the United States.
www.herbthyme.com
InvestmentsRCAF - Platform Acquisitions
Coeur
USA
Acquired: October 2008
Coeur designs, manufactures and assembles a
variety of products for the medical and commercial
marketplace.
www.coeurinc.com
DuBois Chemicals
USA
Acquired: September 2008
DuBois Chemicals is a high-quality manufacturer of
specialty chemicals and solutions for manufacturing
problems and lean initiatives.
www.duboischemicals.com
ITEL Laboratories
USA
Acquired: May 2008
ITEL is an independent testing laboratory servicing
the property insurance industry.
www.itelinc.com
At present, Riverside’s Capital Appreciation Fund family has 32 platform companies and 32 add-on
acquisitions. In 2008, we acquired 11 new companies and successfully exited three.
Priority One
USA
Add-On to: Veritext
Acquired: February 2008
www.veritext.com
Electro-Mec
USA
Add-On to: Integrated Power Services
Acquired: February 2008
ww.electro-mec.com
RealisationsMoss
USA
Acquired: September 2000
Exited: July 2008
Results: 33% gross IRR
4.2x gross cash-on-cash return
Universal Air Filter
USA
Acquired: December 2005
Exited: June 2008
Results: 80% gross IRR
4.8x gross cash-on-cash return
HCPro
USA
Acquired: December 2002
Exited: February 2008
Results: 26% gross IRR
3.4x gross cash-on-cash return
Investments cont.RCAF – Add-on Acquisitions
The Herbal Garden
USA
Add-On to: HerbThyme Farms
Acquired: November 2008
www.theherbalgarden.com
TRICO TCWIND
USA
Add-On to: Integrated Power Services
Acquired: September 2008
www.tricotcwind.com
The Monarch Group
USA
Add-On to: Integrated Power Services
Acquired: September 2008
www.monarch-electric.com
CFM Corporation
USA
Add-On to: Monessen Hearth Systems
Acquired: July 2008
www.monessenhearth.com
Shuttlewagon
USA
Add-On to: Nordco
Acquired: April 2008
www.shuttlewagon.com
P A R T N E R S H I P , G R O W T H , I N T E G R I T Y
“In the midst of a very challenging 2008, we are gratified to have seen record-setting activities at Riverside. The firm’s performance was a direct result of the efforts of the Riverside team, over 180 strong, and our unique capabilities in building great small companies, even on a global scale.”Béla Szigethy, Co-CEO, Riverside
Funds: RCAF V (2008), RCAF 2003, RCAF 2000,
RCAF 1998, RCAF 1995, Pre-RCAF ‘95
Target Acquisitions:
North American companies generally with
$5 million to $15 million of LTM EBITDA.
Offices: Atlanta, Chicago, Cleveland, Dallas,
Los Angeles, New York and San Francisco.
RCAF Deal Flow 2008
1,432 Deals Considered
395 Deal Write-Ups
72 Company Visits
19 Letters of
Intent Issued
11 Deals Closed
Riverside Asia Fund (‘RAF’) Highlights
InvestmentsRAF Investments
Wiz Korea
Korea
Acquired: August 2008
Focusing on students from two to seven years of age, Wiz
Korea operates the largest learning-oriented preschool
education franchise in Korea with 53 franchises and
three company-owned locations, including 52 within
Korea and four located internationally.
www.wizkorea.co.kr
Shinsouki
Japan
Acquired: January 2008
Shinsouki is the largest parking lot operator in
Niigata City, Japan. Combining knowledge of the
area and close relations with landowners, Shinsouki
operates more than 3,000 parking spaces in the
Niigata prefecture.
www.sinsouki.jp
Asian Operating StrategyIn addition to seeking acquisitions, Riverside’s Asian
efforts are part of a larger focused operating strategy
unique to Riverside. The Asian Operating Strategy is
highlighted by a Hong Kong-based expert dedicated
to helping Riverside’s global stable of 68 portfolio
companies succeed and leverage opportunity in Asia.
Riverside opened its first Asian office in Tokyo in April 2007 followed by an office in Seoul in October
2007. RAF acquires companies with less than $10 million of EBITDA in Asia’s mature economies.
Riverside Micro-Cap Fund (‘RMCF’) Highlights
GTI Diagnostics
USA
Acquired: July 2008
GTI Diagnostics is a developer, manufacturer and marketer
of specialty test kits for the in vitro diagnostics industry.
www.gtidiagnostics.com
Universal SmartComp
USA
Acquired: March 2008
Universal SmartComp is a U.S. Best-In Class Physical
Medicine network that is setting the standard for
decreasing the spiralling costs of physical medicine
in workers compensation.
www.universalsmartcomp.com
RMCF – Add-on Acquisitions
JSL Communications, LLC
USA
Add-On to: Health & Safety Institute
Acquired: December 2008
www.jslcom.com
TrainingPro
USA
Add-On to: OnCourse Holdings
Acquired: March 2008
www.trainingpro.com
InvestmentsRMCF - Platform Acquisitions
Eemax
USA
Acquired: September 2008
Eemax is the leading manufacturer of tankless
water heaters for commercial, industrial and
residential markets.
www.eemaxinc.com
HEALTHCAREfirst
USA
Acquired: August 2008
HEALTHCAREfirst provides software and services
exclusively to the home care and hospice
industries.
www.healthcarefirst.com
Results Weight Loss
USA
Acquired: August 2008
With 11 dedicated weight loss centres, Results
Weight Loss provides a variety of weight loss plans
where clients meet with highly trained counsellors
that are focused on both education and motivation.
www.resultsweightloss.info
RMCF made its first investment in 2005. This fund family seeks fast growing North American
“micro” companies with up to $5 million in EBITDA and provides intense operating resources to help
companies achieve their potential. The fund currently comprises 19 platform companies and eight
add-on acquisitions.
P A R T N E R S H I P , G R O W T H , I N T E G R I T Y
RAF Deal Flow 2008
302 Deals Considered
138 Deal Write-Ups
56 Company Visits
5 Letters of
Intent Issued
2 Deals Closed
RMCF Deal Flow 2008
1,567 Deals Considered
388 Deal Write-Ups
140 Company Visits
16 Letters of
Intent Issued
7 Deals Closed
Funds: RAF (2008)
Target Acquisitions:
Primarily Japanese and South Korean companies
with less than $10 million of LTM EBITDA.
Offices: Hong Kong, Seoul, Tokyo
Funds: RMCF I (2005)
Target Acquisitions:
North American companies generally with less
than $5 million of LTM EBITDA.
Offices: Atlanta, Chicago, Cleveland, Los
Angeles and New York.
“Riverside Asia Fund applies the firm’s proven processes and strategies to the developed economies of Asia.” Stewart Kohl, Co-CEO, Riverside
P A R T N E R S H I P , G R O W T H , I N T E G R I T Y
“We’ve had a record-setting year for acquisitions and have strengthened our infrastructure in Europe with continued expansion. Riverside’s proven strategy of buying and building leading companies, partnering with management and maintaining solid financial relationships has allowed us to weather many financial cycles.” Tony Cabral, Managing Partner, Riverside
Our Company
The Riverside Company is the largest global private equity firm focused
on the lower end of the middle market and is one of the industry’s most
experienced leveraged buyout investors.
Riverside invests in premier SME companies valued up to €150 million
and partners with strong management teams to build companies through
acquisitions and value-added growth.
Since its founding in 1988, Riverside has invested in 208 transactions,
with a total enterprise value of more than €4.0 billion. Riverside’s current
portfolio in Europe, North America and Asia consists of 68 companies with
combined annual sales of more than €2.3 billion, EBITDA of approximately
€360 million and more than 14,000 employees worldwide.
SAGE: Creating A Global Niche Leader
In early 2009, Sage grouped all Investor Relations
services under the Taylor Rafferty brand and
established a dedicated team for business
development.
Sage Holdings employs over 900 professionals
serving over 1,000 clients from offices in New York,
London, Munich, Stockholm, Dubai, Hong Kong,
Manila, Taipei and Tokyo.
“Sage is poised to become the most comprehensive
shareholder management services firm globally –
this is a unique strategy based on the developing
needs of corporations in dealing with a global
capital market structure.”
Kai Koeppen, Partner, Riverside
www.sageholdings.com
Sage is structured along three business segments:
consulting; analytics & technology; and stakeholder
fulfilment. The company is focused on building a
business of significant value in these areas through
further complementary acquisitions in each of the
world’s major financial centres.
Since its creation in June 2007, Sage has grown by
acquisition to become the world’s leading financial
communications and stakeholder management
firm. Sage Holding companies currently include:
leading proxy solicitation company D.F. King;
Europe’s fastest-growing financial communications
consultancy M:Communications; top-ranked
Scandinavian communications firm Hallvarsson
& Halvarsson; Wall Street investor and media
relations consultancy Broadgate Consultants;
UK-based markets intelligence specialist Capital
Precision; and leading international investor
relations firm Taylor Rafferty.
Sage Holdings (“Sage”) was created to meet the changing communications challenges arising from
the consolidation of stock exchanges, migration of corporate governance regulation and increased
levels of shareholder activism. The strategy is to assemble and support the growth and integration
of a range of international communication businesses through acquisitions, investments, joint-
ventures, strategic alliances and organic growth.
“With more than 900 staff members serving over 1,000 clients located in more than 30 countries, it has taken under a year for Sage to become the world’s leading financial communications and stakeholder management firm.”Dr. Oliver Niedermaier, President and CEO, Sage Holdings
C A S E S T U D Y
Office Locations EuropeBrussels, Belgium7. Ave. Lloyd GeorgeB-1000 BrusselBelgiqueT: +32 2 626 21 21
Budapest, Hungary Riverside Kft. 1015-BudapestBatthyány u. 49.Hungary T: +36 1 224 9050
Eindhoven, Netherlands Ten Hagestraat 5-B5611 EG EindhovenNetherlandsT: +31-40-20-347-10
Madrid, Spain Serrano 120-3°dcha28006, MadridEspañaT: +34 91 590 1337
Munich, Germany Alter Hof 580331 MünchenDeutschlandT:+49 89 24 22 48 90
Prague, Czech Republic Václavské nám. 832/19110 00 Praha 1Česká RepublikaT: +420 224 890 166
Stockholm, Sweden Blasieholmsgatan 4A114 48 StockholmSverigeT: +46 8 545 0 3030
Warsaw, Poland ul. Zielna 37/c00-108 WarszawaPolskaT: +48 22 320 4820
North AmericaAtlanta, Georgia 561 Vinings Estates DriveAtlanta, GA 30126T: +1 770 948 4256
Chicago, Illinois 4545 N. Hermitage AvenueChicago, IL 60640T: +1 773 334 7518
Cleveland, Ohio Terminal Tower50 Public Square, 29th FloorSuite 4000Cleveland, OH 44113T: +1 216 344 1040
Dallas, Texas 3131 McKinney AvenueSuite 160Dallas, TX 75204T: +1 214 871 9640
Los Angeles, California1453 3rd Street PromenadeSuite 305Santa Monica, CA 90401T: +310 499 5080
New York, New York 45 Rockefeller Center,630 Fifth Avenue, Suite 2400New York, NY 10111T: +1 212 265 6575
San Francisco, California 455 Market Street Suite 1520San Francisco, CA 94105T: +1 415 348 9560
AsiaHong Kong, ChinaRoom 2910 Shell TowerTimes Square1 Matheson StCauseway Bay, Hong KongT: +85 2 2159 7489
Seoul, South Korea21 FL Seoul Finance CenterTaepyeongro 1-ga,Jung-gu Seoul 100-768 Korea T: +82 2 3782 6820
Tokyo, JapanAkasaka Garden City, 4th Floor4-15-1 Akasaka, Minato-kuTokyo 107-0052 JapanT: +81 3 5574 7290
Riverside has 18 offices, in 12 countries, across three continents. This gives us global reach with a
local presence. It also provides us with exceptional insight into local conditions, culture and business
practices, making Riverside better investors and business partners.
P R A G U E
S T O C K H O L M
W A R S A W
B U D A P E S T
M U N I C H
E I N D H O V E N
B R U S S E L S
N E W Y O R K
C L E V E L A N D
M A D R I D
A T L A N T A
D A L L A S H O N G K O N G
S E O U L
T O K Y OS A N F R A N C I S C O
L O S A N G E L E S
C H I C A G O
“In 2008 Riverside strengthened its position as a pan-European leader in lower mid-market buyouts, by adding key team members and reviewing over 1,100 investment opportunities. With 11 acquisitions and two exits, we were one of Europe’s most active PE houses.” Karsten Langer, Partner, Riverside
© The Riverside Company 2009Riverside and The Riverside Company are trademarks or registered trademarks of Riverside Partners L.L.C. in the USA and other countries and may not be used without permission. Although Riverside uses reasonable efforts to obtain information from reliable sources, Riverside makes no representation that the information or opinions contained in this brochure are accurate, reliable, complete or up to date, and such information and opinions are subject to change without notice. Information regarding the past performance of Riverside’s portfolio companies is not necessarily indicative of future results, and there can be no assurance that Riverside will achieve comparable results on subsequent investments.
www.riversideeurope.com
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