Riverside Makes Second Australian Investment June 02, 2010
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Independent Medical Evaluation Provider Joins RAF I Portfolio
Deal Type: Platform Investment
8th Riverside Acquisition of 2010
42nd Healthcare Acquisition
231st Acquisition Overall
Fund: Riverside Asia Fund I
Australian Medico Legal Services Pty Ltd (MLCOA)
Based in Melbourne, Australia
- Provides independent medical assessments and related medical advisory services for insurance organizations, corporations, and government and legal entities.
- Core services involve medical assessments of claimants with symptoms (resulting from particular incidents or diseases) that result in contentious healthcare decisions. MLCOA’s independent assessments serve to determine the most suitable responses to such issues.
- The company was founded in 1986 and consults from offices in 40 locations across Australia, including seven Australian state and territory capitals.
- MLCOA uses its national network of more than 200 independent contractor medical specialists with a wider range of medical disciplines to provide more than 25,000 services annually.
This is Riverside’s second Australian acquisition and third investment in the Asia Pacific region in the last month. It is the first healthcare acquisition for Riverside Asia Fund, but the 42nd in Riverside’s 22-year history. Riverside will tap its deep healthcare relationships, experience and proven team of healthcare investment experts to improve MLCOA’s infrastructure and operations, allowing the company to add products and services and win more market share. Highlighting Riverside’s global capabilities, Ivica Turza, Vice President of Origination, sourced the deal from Riverside’s Munich office.
MLCOA has a strong reputation for independence, high quality performance and efficiency in its service provision, earning the company the highest level of credibility so crucial to the value of its service delivery. With 24 years of specialist medical service distribution to its clients, the company has few competitors that combine its suite of services, its quality assurance, scale and experience.
Dr. Nathan Orbach, the founder, will continue to play an active role, serving MLCOA in an ongoing advisory capacity.
Simon Feiglin, Riverside Partner:
“MLCOA is precisely the sort of outstanding company with which Riverside seeks to partner, with its leading market presence and healthcare orientation. The provision of independent medical examinations and affiliated services is quite fragmented within Australia, but MLCOA has been able to carve out a niche as a market leader through its long history, quality offering and acute focus on client service. We are excited about building on MLCOA’s great reputation for quality service and unparalleled assessments.”
Stuart Baxter, Riverside Managing Partner:
“MLCOA has differentiated itself by supplying its clients with consistent high-quality independent medical assessments on a national basis. We hope to further focus on our core clients’ needs to better understand how we can continue to add value as they seek to manage the health, safety and income protection for workers in Australia.”
Dr. Nathan Orbach, MLCOA’s outgoing CEO:
“It is pleasing to acknowledge Riverside’s commitment to MLCOA, and I am enthusiastic to witness the next chapter of growth and development for the company under Riverside’s stewardship.”
Working with Feiglin on the opportunity were Ruud Jona, Operating Partner, Adam Friend, Senior Associate, and Jonathan Shin, Analyst. Vice President of Origination Ivica Turza sourced the deal.
Partners: Commonwealth Bank of Australia provided debt financing for the deal, Jones Day provided legal counsel and KPMG and State Equity Group advised.
The Riverside Company (www.riversidecompany.com or www.riversideeurope.com)
The Riverside Company is a global private equity firm focused on acquiring leading small and medium-sized enterprises (with a value of up to $200 million) and partnering with strong management teams to enhance the success of its companies through acquisitions and organic growth. Since its founding in 1988, the firm has invested in 231 transactions with a total enterprise value of $5.0 billion/€4.2 billion. The investment portfolio in North America, Europe and Asia includes 74 companies with annual sales totaling $3.3 billion/€2.5 billion, EBITDA of $506 million/€384 million and more than 13,000 employees (June 2009). Riverside offers the resources to complete acquisitions smoothly - thanks to its more than $3.0 billion/€2.4 billion in assets under management, its more than 180 professionals in 19 offices (Atlanta, Brussels, Budapest, Chicago, Cleveland, Dallas, Hong Kong, Los Angeles, Luxembourg, Madrid, Melbourne, Munich, New York, Prague, San Francisco, Seoul, Stockholm, Tokyo and Warsaw) and its longstanding relationships with partner lenders. According to Thomson Venture Economics, eight of Riverside’s nine mature funds rank in the top 25% of all funds (as of 30 June 2009). The firm’s investors include the world’s leading pension funds, endowments, funds of funds, insurance companies and banks.