Riverside Adds EMC Test Generator to Portfolio March 10, 2008
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(March 10, 2008) – On behalf of its third European fund, The Riverside Company, the largest private equity firm focused on the small and mid markets, acquired EM Test Group (“EM Test”). 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. The acquisition is the sixth overall for Riverside in 2008 and the third in the past month for Riverside Europe Fund III (“REF III”).
Founded in 1987, EM Test is headquartered in Reinach, Switzerland and has additional sales and service centers located in Germany, China, France and Malaysia. The company markets its products through a network of distributors in over 40 countries. The typical users of EM Test’s devices are specialized in-house EMC departments or R&D and quality assurance departments of electronic-equipment manufacturers. EM Test offers comprehensive test systems for a wide range of applications through a software library of more than 150 different international standards. The company also has a reputation for efficient global customer and after-sales service.
“One of the reasons that Riverside was attracted to EM Test Group was the company’s commitment to innovation,” said Volker Schmidt, Riverside Partner. “EM Test Group employs a dedicated R&D team of 12 engineers, who put forth four to six new product introductions each year.”
In addition, Riverside was drawn to EM Test’s double-digit top line growth over the past three years, and the company’s future growth opportunities. EM Test expects to continue to outperform in a growing market based on further broadening of the product range and strengthening its position in the fastest growing markets in China and Southeast Asia.
“EM Test Group is well positioned to capitalize on these industry trends, as we have the ability to match most test routines exactly to specification and can modify existing routines as required,” said Harald Kunkel, co-Managing Director of EM Test Group along with Germano Taddio. “We are looking forward to the additional support from Riverside to be able to accelerate our growth plans in Asia,” said Taddio.
Working with Schmidt on the transaction from Riverside were Dominik Heer, Vice President, Origination, who also sourced the deal, and Justin Kent, Associate. Equity was provided by REF III.
The Riverside Company
The Riverside Company is the largest global private equity firm focused on the smaller end of the middle market (“SEMM”) and is one of the industry’s most experienced leveraged buyout investors. Riverside specializes in investing in premier SEMM companies (those with enterprise values of less than $150 million) and partners with strong management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 182 transactions with a total enterprise value of $3.4 billion. Its current portfolio in the U.S. and Europe numbers 61, with combined annual sales of $3 billion, EBITDA of $428 - 1 - Riverside Closes Sixth Acquisition of 2008 - 2 - million and more than 11,000 employees. Riverside offers the resources to complete acquisitions smoothly and in as little as 30 days – thanks to its sizeable pool of capital under management (nearly $2 billion in nine funds), over 150 professionals in 17 offices (Amsterdam, Atlanta, Budapest, Brussels, Chicago, Cleveland, Dallas, Los Angeles, Madrid, Munich, New York, Prague, San Francisco, Seoul, Stockholm, Tokyo and Warsaw), and long-standing relationships with partner lenders. Five of seven of the firm’s mature vintages are currently top quartile, and the firm’s investors include the world’s leading pension funds, endowments, funds-of-funds, insurance companies and banks. Please visit www.riversidecompany.com and www.riversideeurope.com for more information.
EM Test Group
EM Test, founded in 1987, is the leading global provider of electromagnetic compatibility test generators. Its devices are used to test the immunity of electronic products, systems and components to electromagnetic interferences in a wide variety of industries, such as consumer and industrial electronics, automotive, med-tech, information technology and telecommunications. EM Test distributes its products through a network of distributors in over 40 countries. For more information on EM Test Group, visit www.emtest.com.