2008 Year In Review, A Record Year

Transcription

1 2008 Year In Review, A Record Year

2 Riverside Deal Flow ,381 Considered 1, Year In Review, A Record Year 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. Raised over US$1 billion in capital 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, 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 () - Generated a 80% gross IRR and a 4.8x gross cash-on-cash return Moss () - Generated a 33% gross IRR and a 4.2x gross cash-on-cash return across three funds. *All figures accurate as of 31/12/2008.

3 REF Deal Flow 2008 Riverside in Europe 1,101 Considered Since 1997, Riverside Europe has invested in 35 companies in 12 countries, including 8 add-on acquisitions. 429 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 Riverside Europe Fund ( REF ) 2008 Highlights Meet the Europe Team Béla Szigethy Co-CEO New York Stewart Kohl Co-CEO Cleveland 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 We also realised two investments and celebrated office openings in and Stockholm. Investments Antonio Alvares Cabral Managing REF III - Platform Acquisitions Origination Karsten Langer Transaction Kai Koeppen Lars Eriksson Regional Director Stockholm Ferenc Vidovszky Budapest Juan Barnechea Aldatz Madrid Eric van den Eijnden Eindhoven Pawel Okonski Warsaw Radim Stach Prague Ivica Turza Volker Schmidt William Jaworski Thomas Blomqvist Stockholm Damien Gaudin Analyst Marcos Lladó Madrid 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. Áron Szabó Analyst Tomasz Glowacki Funds: REF IV (2008); REF III (2005); REF II (2002); Peter Schaberger Principal Dominik Heer Ludek Palata Prague Vladimír Pavala Prague Adam Pietruszkiewicz Warsaw Operating Balázs Tahy Budapest Legal Jeroen Lenssen Senior Eindhoven Marketing Marcin Goszyk Warsaw Administration RCEF (1997) Target Acquisitions: European companies with EBITDA of between 3 million and 15 million. Offices:, Budapest, Eindhoven, Madrid, Justin S. Kent Rafael Álvarez-Novoa Madrid Nils Schander Stockholm Sven Schulze Analyst Fabio Pesiri CFO Riverside Europe Peter Parmentier Director European Tax & Legal Counsel Annick Vandenbergen Legal Counsel Pablo Fuente Assistant Director Marketing & Communications Eva Orbay Manager of European Administration 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. 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. Sage Holdings Germany Acquired: February 2008 Sage Holdings provides corporate financial communication and proxy solicitation services. Summit Medical United Kingdom Acquired: March 2008 Summit Medical makes disposable orthopaedic and infection-control medical products. Prague, Stockholm and Warsaw. P A R T N E R S H I P, GROWTH, INTEGRITY

4 CASE STUDY Investments cont. REF III Add-On Acquisitions Capital Precision United Kingdom Add-On to: Sage Holdings Acquired: November Hallvarsson & Halvarsson Sweden Add-On to: Sage Holdings Acquired: October Metrolab Argentina Add-On to: IVD Group/Diatron Acquired: October MekoTeknik AB Sweden Add-On to: Keycast Acquired: July AICAT Technologies Germany Add-On to: AIS Group Acquired: June 2008 Exited: October 2008 as part of IndustrieHansa D.F. King Add-On to: Sage Holdings Acquired: February Realisations Richter 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 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. 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 Tensator: Expanding A Unique Market Position 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. 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 wellestablished 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. 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 addon acquisitions which we will actively seek out. Eric van den Eijnden,, Riverside Gábor Lengyel, Head of Sales, Diatron

5 RCAF Deal Flow ,432 Considered 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 Riverside Capital Appreciation Fund ( RCAF ) Highlights 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. Investments RCAF - Platform Acquisitions Coeur Acquired: October 2008 Coeur designs, manufactures and assembles a variety of products for the medical and commercial marketplace. DuBois Chemicals Acquired: September 2008 DuBois Chemicals is a high-quality manufacturer of specialty chemicals and solutions for manufacturing problems and lean initiatives. ITEL Laboratories Acquired: May 2008 ITEL is an independent testing laboratory servicing the property insurance industry. HerbThyme Farms 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. 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. Investments cont. RCAF Add-on Acquisitions The Herbal Garden Add-On to: HerbThyme Farms Acquired: November TRICO TCWIND Add-On to: Integrated Power Services Acquired: September The Monarch Group Add-On to: Integrated Power Services Acquired: September CFM Corporation Add-On to: Monessen Hearth Systems Acquired: July Shuttlewagon Add-On to: Nordco Acquired: April Priority One Add-On to: Veritext Acquired: February Electro-Mec Add-On to: Integrated Power Services Acquired: February 2008 ww.electro-mec.com Realisations Moss Acquired: September 2000 Exited: July 2008 Results: 33% gross IRR 4.2x gross cash-on-cash return Universal Air Filter Acquired: December 2005 Exited: June 2008 Results: 80% gross IRR 4.8x gross cash-on-cash return HCPro Acquired: December 2002 Exited: February 2008 Results: 26% gross IRR 3.4x gross cash-on-cash return

6 RMCF Deal Flow ,567 Considered RAF Deal Flow Considered Riverside Micro-Cap Fund ( RMCF ) Highlights Riverside Asia Fund applies the firm s proven processes and strategies to the developed economies of Asia. Stewart Kohl, Co-CEO, Riverside Riverside Asia Fund ( RAF ) Highlights 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. RMCF made its first investment in 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. Investments RMCF - Platform Acquisitions Eemax Acquired: September 2008 Eemax is the leading manufacturer of tankless water heaters for commercial, industrial and residential markets. HEALTHCAREfirst Acquired: August 2008 HEALTHCAREfirst provides software and services exclusively to the home care and hospice industries. Results Weight Loss 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. GTI Diagnostics Acquired: July 2008 GTI Diagnostics is a developer, manufacturer and marketer of specialty test kits for the in vitro diagnostics industry. Universal SmartComp 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. RMCF Add-on Acquisitions JSL Communications, LLC Add-On to: Health & Safety Institute Acquired: December TrainingPro Add-On to: OnCourse Holdings Acquired: March Funds: RAF (2008) Target Acquisitions: Primarily Japanese and South Korean companies with less than $10 million of LTM EBITDA. Offices: Hong Kong, Seoul, Tokyo Riverside opened its first Asian office in Tokyo in April 2007 followed by an office in Seoul in October RAF acquires companies with less than $10 million of EBITDA in Asia s mature economies. Investments RAF 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. 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. Asian Operating Strategy In 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.

7 Our Company CASE STUDY 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. 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 SAGE: Creating A Global Niche Leader 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, jointventures, strategic alliances and organic growth. 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, Riverside 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. 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,, 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,, Riverside

8 Office Locations 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. SAN FRANCISCO LOS ANGELES NEW YORK CLEVELAND CHICAGO ATLANTA DALLAS MUNICH EINDHOVEN BRUSSELS MADRID STOCKHOLM PRAGUE WARSAW BUDAPEST TOKYO SEOUL HONG KONG 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,, Riverside Europe, Belgium 7. Ave. Lloyd George B-1000 Brussel Belgique T: Budapest, Hungary Riverside Kft Budapest Batthyány u. 49. Hungary T: Eindhoven, Netherlands Ten Hagestraat 5-B 5611 EG Eindhoven Netherlands T: Madrid, Spain Serrano dcha 28006, Madrid España T: , Germany Alter Hof München Deutschland T: Prague, Czech Republic Václavské nám. 832/ Praha 1 Česká Republika T: Stockholm, Sweden Blasieholmsgatan 4A Stockholm Sverige T: Warsaw, Poland ul. Zielna 37/c Warszawa Polska T: North America Atlanta, Georgia 561 Vinings Estates Drive Atlanta, GA T: Chicago, Illinois 4545 N. Hermitage Avenue Chicago, IL T: Cleveland, Ohio Terminal Tower 50 Public Square, 29th Floor Suite 4000 Cleveland, OH T: Dallas, Texas 3131 McKinney Avenue Suite 160 Dallas, TX T: Los Angeles, California rd Street Promenade Suite 305 Santa Monica, CA T: New York, New York 45 Rockefeller Center, 630 Fifth Avenue, Suite 2400 New York, NY T: San Francisco, California 455 Market Street Suite 1520 San Francisco, CA T: Asia Hong Kong, China Room 2910 Shell Tower Times Square 1 Matheson St Causeway Bay, Hong Kong T: Seoul, South Korea 21 FL Seoul Finance Center Taepyeongro 1-ga, Jung-gu Seoul Korea T: Tokyo, Japan Akasaka Garden City, 4th Floor Akasaka, Minato-ku Tokyo Japan T:

9 The Riverside Company 2009 Riverside and The Riverside Company are trademarks or registered trademarks of Riverside s L.L.C. in the 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.