Riverside's Latest Acquisition Flows Smoothly July 02, 2008
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In Vitro Diagnostic Test Kit Manufacturer Added to Micro-Cap Portfolio
(July 2, 2008) – Using knowledge and experience in viewing the world as its laboratory, The Riverside Company correctly diagnosed GTI Diagnostics as a positive addition to the firm’s Riverside Micro-Cap Fund (“RMCF”). GTI is a developer, manufacturer and marketer of specialty test kits for the in vitro diagnostics industry. RMCF provided equity for the transaction, which marks the 190th acquisition in the private equity firm’s 20-year history.
“Riverside has developed expertise with similar medical diagnostics companies such as platform company Diatron and its recent add-on acquisition of Novamed, and GTI exhibits the characteristics that are perfect for RMCF,” said Loren Schlachet, Riverside Managing Partner. “GTI has a significant base of recurring revenue from the sale of consumable test kits, has an outstanding management team, and has a cutting edge R&D department consisting of PhD and MD scientists. GTI’s tests are used for niche medical issues for patients undergoing heart procedures, organ transplants, platelet transfusions and coagulation disorders. GTI has seen substantial growth in its core products and has successfully commercialized new tests from its robust new product pipeline.”
GTI was co-founded in Waukesha, Wisconsin in 1985 by Chief Executive Officer Jim Tidey and the BloodCenter Research Foundation, at the BloodCenter of Wisconsin, a leading not-for-profit blood bank and research institution. The company’s test kits are sold to some of the most well-respected hospitals, research institutions, blood banks and reference labs in the U.S. and around the world. There are 400 labs around the world using more than 20 GTI test kit products. In producing its products, GTI sources specialized blood components, isolates and purifies a variety of proteins that are used to create proprietary and complex test kits.
“We are justifiably proud of GTI’s history and success,” said Tidey. “Our propriety products often fulfill a niche medical need that is not addressed by other diagnostic tools. These tests provide physicians and patients the ability to diagnose medical disorders that can often be life threatening. We are excited to continue our close development relationship with the BloodCenter of Wisconsin and now also have a global partner like Riverside that can provide us financial and strategic support as we continue to expand globally. Riverside understands the medical diagnostics business well and we look forward to taking our services to a broader community and finding new ways to address the growing need for specialized testing.” Aside from serving as CEO, Jim Tidey will continue to be a significant investor in GTI.
Working with Schlachet on the transaction for Riverside were Simon Feiglin, Vice President, and Joe Manning, Associate. Scott Gilbertson, Riverside Principal, Origination sourced the deal. M&I Bank provided debt for the transaction.
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 valued up to $200 million) and partners with strong management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 190 transactions with a total enterprise value of $3.4 billion. Its current portfolio in the U.S., Europe and Asia numbers 62, with combined annual sales of $3 billion, EBITDA of $468 million and more than 14,000 employees. Riverside offers the resources to complete acquisitions smoothly and in as little as 45 days - thanks to its sizeable pool of capital under management (nearly $2 billion in nine funds), over 170 professionals in 17 offices (Amsterdam, Atlanta, Brussels, Budapest, 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.
GTI Diagnostics develops, manufactures and markets medical diagnostic test kits for the transplantation (HLA), blood bank and coagulation laboratories. Its advanced, technically complex and proprietary products fulfill niche testing needs and are used in over 400 laboratories. GTI is an ISO-certified company and registered with the FDA as an In Vitro Diagnostic Manufacturer. Please find more information on GTI Diagnostics at www.gtidiagnostics.com.