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Riverside Completes Purchase of Shopper Marketing Firm March 17, 2011

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Private Equity Firm Acquires Formerly Public Pareto Corporation

The Riverside Company has acquired Pareto Corporation, a Toronto-based shopper marketing company. Pareto had been a publicly traded company on the Toronto Stock Exchange. The sale price was CAD$125 million.

The transaction marks the second time Riverside has taken a publicly traded company private, and is the firm’s fourth platform acquisition of 2011 and its ninth overall investment in Canada. Riverside’s first “go-private” deal, The Dwyer Group, generated a 3x gross cash-on-cash return late last year.

Pareto implements its clients’ shopper marketing strategies with optimal impact by connecting brands, retailers and shoppers before, during and after a sale. The company offers a best-in-class suite of services, which include: direct marketing, experiential marketing, retail merchandising, in-store messaging, and incentives; enabled by its proprietary technology to enhance the shopper experience and influence shopper behavior. Pareto’s expertise provides tremendous value to its clients by helping them sell more and reducing costs.

Pareto’s client base is impressive. It works with Canada’s largest retailers and some of the world’s most recognized brands. While Pareto has grown steadily in recent years by adding new customers and deepening its existing relationships, Riverside sees many growth opportunities at the company, including continued expansion of the customer base in Canada, cross-selling, adding valuable services, and international expansion.

“Pareto has amazing potential for expansion and a proven track record,” said Riverside Partner Kristin Newhall. “The value of Pareto’s services is clear and compelling. We’re deeply impressed with (Pareto President & CEO) Kerry (Shapansky) and his entire management team, and very excited about Pareto’s future.”

Working on the transaction with Newhall from Riverside were Scott Bogard, Vice President; Bill DeLong, Associate; Neil Kee, Analyst; Solomon Cole, Analyst, David Gold, Operating Partner; and Robert Landis, Partner.

The Riverside Company
The Riverside Company is a global private equity firm focused on acquiring growing enterprises valued at up to $200 million (€200 million in Europe). The firm partners with strong management teams and enhances its investments through acquisitions and organic growth. Since its founding in 1988, Riverside has invested in more than 245 transactions with a total enterprise value of more than $5.8 billion/€4.7 billion. The firm’s portfolio in North America, Europe and the Asia-Pacific region includes more than 70 companies with roughly 13,000 employees. Riverside completes acquisitions smoothly thanks to $3.2 billion/€2.4 billion in assets under management, more than 195 professionals in 19 offices, and longstanding relationships with partner lenders.

Pareto Corporation
Pareto Corporation is a shopper marketing company that offers marketing execution solutions to leading companies in a broad range of industry sectors. Pareto provides measurable, quantifiable services that complement our clients’ marketing and sales departments.

Media Contacts

North America and Asia Pacific
Graham Hearns
Director of Marketing and Communications
The Riverside Company
216-535-2221

Europe

Pablo FuenteAssistant Director of Marketing and Communications
The Riverside Company
+32 47485911

Media Contact

Keith Davisson
Director, Global Marketing & Communications
The Riverside Company
+1 216 535 1777