Riverside Examination Leads to Acquisition of Niche Independent Laboratory June 03, 2008
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LBO is 12th for Private Equity Firm in 2008 and 188th Overall
(June 3, 2008) – The Riverside Company used the science of investing to evaluate its latest acquisition – ITEL Laboratories, Inc. Florida-based ITEL (Independent Testing and Evaluation Laboratory) is the largest independent tester for determining fair-market replacement value of damaged products and is used by insurance carriers, claims adjusters, contractors and property owners. ITEL represents Riverside’s 12th acquisition of 2008 and its 188th in the firm’s 20-year history.
In 1993, ITEL created the market for independent laboratory testing to determine the replacement value of damaged carpet for insurance carriers and their insured homeowners. Since that time, the company has expanded into testing other products such as stone surfaces, vinyl, laminate and wood flooring, as well as siding, with plans to further expand into additional testing services. The majority of ITEL’s business today is derived from standard property insurance claims, such as damaged water pipes, weather conditions or household fires. Over time, ITEL has processed almost 2 million samples and has developed into a brand that is recognized by the industry as the standard.
“ITEL is an industry leader in a narrow niche market, which appeals to Riverside,” said Suzanne Kriscunas, Riverside Managing Partner. “The management team has steered ITEL’s growth and increased awareness of its brand through establishing relationships with insurance carriers and providing attractive benefits such as using proven methods to determine the science of fair settlement so policy holders receive accurate payments for like-kind and quality replacements. The team’s skillful integration of three acquisitions in three years demonstrates the company’s strategic acumen and positions it well for additional add-ons. We are looking forward to working with ITEL to fully penetrate its markets and continue to leverage economies of scale.”
“Riverside understands that we have become the established leader in the independent testing area and plan to continue our aggressive growth,” said Roger Mullins, ITEL Chief Executive Officer. “We are looking forward to the strength of Riverside’s support as we prepare to launch new testing and review services, including water mitigation review, as part of our vision to become a ‘whole house’ testing service provider.”
Working with Kriscunas on the Riverside team were Chip Walker, Principal; Marty Graul, Associate; and Solomon Cole, Analyst. Jim Butterfield, Principal with Riverside’s Origination team, sourced the ITEL transaction. Golub Capital provided a One-Loan Debt Facility to finance 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 188 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 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.
ITEL is an independent testing laboratory servicing the property insurance industry. ITEL’s mission is to help insurance companies quickly, accurately, and fairly settle claims. ITEL has been in business since 1993 and has performed almost two million tests for property insurance carriers throughout the United States and Canada. Please visit www.itelinc.com to learn more about ITEL.