Riverside Exits German Engineering Company August 18, 2008
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(August 18, 2008) – The Riverside Company has realized its investment in IndustrieHansa Engineering and Consulting, an engineering-service and consulting provider to the German automotive and aerospace industries. IndustrieHansa had been an independent business division of Riverside platform company Advanced Information Systems Group, which provides technology solutions for the automotive, aerospace and steel industries and which remains a part of the firm’s portfolio.
“IndustrieHansa has had strong growth throughout our hold period,” said Kai Köppen, Riverside Partner in Munich. “Together with management, we successfully positioned the company as a standalone engineering-service provider, broadened the customer base and extended the company’s service offering. It was a mutually successful partnership.”
Riverside, the largest private equity firm focused on the smaller end of the middle market, acquired IndustrieHansa in December, 2006 from Siemens/MCE. During Riverside’s period of ownership, IndustrieHansa achieved an EBITDA CAGR of 37% due to organic growth and the add-on acquisition of AICAT CA Technologies Consulting GmbH, a German digital engineering company acquired in June 2008.
IndustrieHansa supplies a range of IT services for the automotive and aerospace industries. The company has extensive process-chain experience, combining the resources of IT experts, engineers and automation specialists to support its customers from development to construction. Its services include simulation, factory and production planning, automation, documentation and product life cycle management.
“Our partnership with Riverside afforded us the opportunity to build IndustrieHansa as its own brand,” said Uwe Hihn, IndustrieHansa CEO. “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.”
Representing Riverside with Köppen on the sale of IndustrieHansa to Findos Investor, Munich, were Vice Presidents Peter Schaberger and Dominik Heer, as well as Associate Justin Kent. Volker Schmidt, Riverside Partner in Munich, served on the board of IndustrieHansa. Walter Moldan acted as Chairman and co-investor in this transaction. DB Consult, represented by Michael Seippel and Markus Schütz, acted as financial advisor to Riverside. Dr. Andreas Oldenbourg and Dr. Silke Pütz of OP Rechtsanwälte, Munich, acted as legal advisors to Riverside.
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 196 transactions with a total enterprise value of $3.4 billion. Its current portfolio in the U.S., Europe and Asia numbers 65, 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 (more than $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.
Findos Investor is an independent mid-market private equity fund backed exclusively by prestigious German family-owned companies as investors. Through a long investment horizon and respectable investor base, the fund is a reliable partner in transactions. Please visit www.findos.com for information.
IndustrieHansa Engineering and Consulting
IndustrieHansa is a technology-oriented consulting and engineering service provider with extensive process chain experience that supplies a range of services to the automotive and aerospace industries. For more information, please visit www.industriehansa.de.