Riverside Exits German Pump and Valve Firm October 02, 2008
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(October 2, 2008) – The Riverside Company announced the realization of Richter Chemie-Technik GmbH, a leading supplier of pumps, valves, controls and related services to selected segments of the chemical and pharmaceutical industries. During Riverside’s period of ownership, Richter grew EBITDA by 60% due to organic growth and expansion. The sale to IDEX Corporation, a strategic buyer, represents the second realization for Riverside Europe Fund III (“REF III”).
Richter manufactures high-performance fluoro-polymer lined pumps and valves for handling corrosive and high-purity fluids involved in the processing of chemicals and pharmaceuticals. The company serves large customers such as Akzo Nobel, BASF, Bayer, Degussa, Dow DSM, Pfizer Uhde, Sanofi Aventis and Schering, as well as many others. Originally a part of ITT Industries, Richter benefitted from Riverside’s operational expertise to become a standalone company and grew organically during the hold period, most notably by expanding internationally.
“Riverside worked side by side with Richter management to develop and capture opportunities around the world for the company,” said Kai Köppen, Partner in Riverside’s Munich office. “We’ve helped the company further develop its operations in China, as well as launch a successful distribution network in the U.S. and India. Riverside leaves Richter a strong company, which is poised for further organic expansion and on pace to exceed budgeted revenues and EBITDA in 2008.”
Representing Riverside along with Köppen on the sale of Richter were Tomasz Glowacki, Partner; Peter Schaberger, Principal; and Dominik Heer, Vice President. Robert W. Baird GmbH served as exclusive financial advisor to Riverside, and Watson, Farley & Williams LLP acted as legal advisor to the firm. The original transaction was financed by LandesBank Rhein Pfalz.
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 $150 million) and partners with strong management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 201 transactions with a total enterprise value of $4.4 billion. Its current portfolio in North America, Europe and Asia numbers 67, with combined annual sales of $3.2 billion, EBITDA of $517 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 180 professionals in 18 offices (Atlanta, Brussels, Budapest, Chicago, Cleveland, Dallas, Eindhoven, Hong Kong, Los Angeles, Madrid, Munich, New York, Prague, San Francisco, Seoul, Stockholm, Tokyo and Warsaw), and long-standing relationships with partner lenders. Six of nine of the firm’s mature vintages arecurrently top quartile, and the firm’s investors include the world’s leading pension funds, endowments, fundsof- funds, insurance companies and banks.
Richter is a leading supplier of pumps, valves, controls and related services to selected segments of the chemical, fine chemical and pharmaceutical industries. The Company holds a leading position in fluoropolymer lined pumps and valves for handling highly corrosive fluids in the chemical and pharmaceutical process industries. Headquartered in Kempen, Germany, Richter also has a manufacturing facility in Nanjing, China and employs more than 200 people. Robert W. Baird GmbH Robert W. Baird GmbH (“Baird”) is a leading global middle-market investment bank whose investment banking professionals in the U.S., Europe and Asia provide corporations with in-depth market knowledge and extensive experience in merger and acquisition and equity financing transactions. Since 1998, Baird has advised on more than 360 M&A transactions representing more than $55 billion in transaction value and has served as lead or co-manager on more than 250 equity offerings raising $39 billion.
Watson, Farley & Williams LLP
Watson, Farley & Williams LLP (“WFW”) is a London based international law firm with 11 offices worldwide. Its German offices (Hamburg and Munich) have particular expertise in providing legal and tax advice regarding mid-cap private equity transactions. WFW is nominated as JUVE Law Firm of the Year for Private Equity & Venture Capital 2008.