Riverside Steers Keycast Towards Strategic Add-On July 17, 2008
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Swedish CNC Specialist Solders New Link in Platform’s Production Chain
(July 17, 2008) – The Riverside Company’s acquisition machine keeps engineering deals. The firm has just closed its 16th acquisition of 2008: Swedish precision steel machining company MekoTeknik, a strategic add-on to steel casting portfolio company Keycast Group. The acquisition forges a new capability for Keycast, the Nordic Region’s foremost producer of cast steel components, since MekoTeknik specializes in machining the types of castings that Keycast produces. With equity provided by Riverside Europe Fund III (“REF III”), this acquisition marks Riverside Europe’s seventh in 2008.
“MekoTeknik is an exceptionally strong strategic fit to Keycast” said Tomasz Glowacki, Riverside Partner. “The acquisition adds crucial new capabilities, but also enables Keycast to improve customer service, expand its customer base and access new segments of the market.”
Based in Halmstad, MekoTeknik specializes in technically demanding steel cast components that require high precision, repeatable quality due to product applications in severe environments.
“MekoTeknik and Keycast already have an established relationship, with MekoTeknik having machined for Keycast for a number of years,” said Simo Jutila, Group Chief Executive Officer, Keycast. “Adding the capabilities of MekoTeknik to the group will help Keycast serve its customers more efficiently and effectively as well as increase the development of new products.”
Working with Glowacki on the acquisition from Riverside were Adam Pietruszkiewicz, Vice President, and Marcin Goszyk, Analyst. Mezzanine financing for the acquisition was provided by Eqvitec Mezzanine. Eqvitec Mezzanine specializes in mezzanine financing of small and medium sized buyouts and expansion of growth companies in the Nordic region.
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 192 transactions with a total enterprise value of $3.4 billion. Its current portfolio is 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.
The Keycast Group
The Keycast Group comprises four leading producers of cast steel components in Finland and Sweden, making up the most comprehensive cast steel components manufacturing consortium in Northern Europe. Each company specializes in its own field of expertise. The main customers are premier enterprises in the Nordic countries, Europe and the United States. Customers receive high quality, effectiveness, reliable deliveries and flexible services. To find more information on Keycast, please visit www.keycast.nu.