Insurance Service Provider Finds New Match July 02, 2012
Riverside Tests the Market and Claims Fifth Exit of 2012
The Riverside Company has sold Global Claims Services (GCS), a Jacksonville, Florida-based insurance service provider helping determine fair market replacement value of damaged flooring and exterior building materials, to Windjammer Capital Investors. GCS works with property and casualty insurance carriers, claims adjusters, contractors and property owners throughout North America to quickly, accurately and fairly settle claims. The sale generated a 2.8x gross cash-on-cash return and a 29% gross IRR to Riverside and its investors (Riverside Capital Appreciation Fund V).
Launched in 1993, GCS initially concentrated its testing services on damaged flooring using its in-house laboratory to examine carpet samples. Over the last two decades, the company has extended its services to other types of flooring and exterior building materials, including siding and roofing. Presently, the company conducts more than 500,000 tests annually.
Riverside acquired GCS in May 2008 and grew the company over its four year period of ownership through two add-on acquisitions and organically expanding the company’s services. The investment in Plymouth, Indiana-based Siding Match in 2009 expanded the company’s offerings into siding and roofing. In addition, the acquisition of Insurance Claims Collaborative of Alliston, Ontario in 2011 broadened the company’s reach to include the Canadian market. Riverside supplemented the management team with the recruitment of a new CEO and CFO which enabled the founder to transition out of the business. Together with the management team, Riverside helped GCS expand its offerings beyond carpet, siding and roofing to now include wood, tile, stone, vinyl and laminate.
“Global Claims Services is a shining example of the work we’ve been doing for more than two decades – finding, buying and building special niche leading businesses around the world,” said Suzy Kriscunas, Riverside Managing Partner. “During our ownership, we completed strategic add-on acquisitions that expanded the company’s service offerings and geographic reach. In addition, we were able to deploy several of Riverside’s Toolkit resources to help grow the business organically. Global Claims Services is now the leader in the independent testing arena and well positioned to grow for many years to come.”
Working with Kriscunas for Riverside on the sale were Principal Chip Walker and Vice Presidents Marty Graul and Rob Langley. Riverside’s Origination Principal, Amy Margolis, worked with the deal team to facilitate the sale of the business.
Lazard Middle Market advised GCS and Riverside on the transaction, and Jones Day provided legal counsel. Windjammer was represented by Choate, Hall & Stewart LLP.
The Riverside Company
The Riverside Company is a global private equity firm focused on acquiring growing businesses valued at up to $200 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 280 transactions. The firm’s international portfolio includes more than 80 companies, and it has more than $3 billion/€2.5 billion in assets under management.