Latest Riverside Acquisition Signals Success January 23, 2009
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Private Equity Firm Invests in Broadcast Instrumentation Designer
The Riverside Company was attracted to Sencore, Inc., a designer, manufacturer and technical marketer of a broad suite of products serving multiple segments of the global video, audio and data transmission industries, due to the growing market demand for advanced technology, and Sencore’s leading ability to deliver integrated customer-driven products and service.
Invested in 31 companies in 2008
Invested in 208 companies since founded in 1988
Riverside Capital Appreciation Fund V (“RCAF V”)
Based in Sioux Falls, SD
- Founded in 1951 by Herb Bowden, an application engineer for Admiral Television
- Designer, manufacturer and technical marketer of instrumentation in two key areas: communication transmission infrastructure for broadcast, cable, telecommunications and consumer A/V products; and general troubleshooting and maintenance applications, home theatre/home automation installation and calibration and medical imaging
- Family business led by second generation of ownership employing approximately 200 people in manufacturing, engineering, sales, and administrative positions
Riverside has previously invested in various aspects of the telecommunications industry, including Portugese telecommunications service provider ONI Communications, and Houston-based CapRock Communications, a premier global satellite communications provider. In addition, Riverside has invested in various other technology hardware and equipment manufacturers.
Kristin Newhall, Riverside Partner
“Riverside is impressed with Sencore’s strong product development capabilities and integrated design, manufacturing and distribution facility. Sencore’s products capitalize on the ever-changing technology in the growing broadcast industry. Increased consumer demand for more and better quality content is a key driver for Sencore. We look forward to partnering with management to expand the business, both in terms of product offering and geographic expansion.”
Doug Bowden, Sencore Executive Vice President
“Sencore is very proud to have developed the company to be vertically integrated and has found this to be an advantage to customers. Our ability to work directly with customers on design, and control the manufacturing, lets us react quickly and deliver within an unmatched turnaround time. We look forward to partnering with Riverside to expand both organically and internationally.”
Kristin Newhall, Partner; Erik Holmsen, Vice President; Will Fogle, Senior Associate; Justin Cordon, Associate; and Solomon Cole, Analyst. The transaction was sourced by Scott Gilbertson, Principal, Origination.
Senior debt financing was provided by US Bank, Key Bank and Tri-State Capital Bank, while Babson Capital provided the subdebt financing. The seller was advised by Houlihan Lokey.
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 invests in premier SEMM companies valued up to $150 million and partners with strong management teams to build companies through acquisitions and value-added growth. Since its founding in 1988, the firm has invested in 208 transactions with a total enterprise value of $4.7 billion. Riverside’s current portfolio in North America, Europe and Asia consists of 68 companies with combined annual sales of $3.2 billion, EBITDA of $524 million and more than 14,000 employees. Riverside offers certainty to close and can complete acquisitions in as little as 45 days, thanks to its $2.5 billion of capital under management, 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 the firm’s nine mature vintages are currently top quartile, and Riverside’s investors include the world’s leading pension funds, endowments, funds-of-funds, insurance companies and banks.
Founded in 1951, Sencore, Inc. is a vertically integrated designer, manufacturer and technical marketer of a broad suite of niche products serving multiple segments of the global video, audio and data transmission marketplace. Sencore’s focus has remained the same through the years, providing a straight-forward solution that is designed to aid the technician or engineer in their daily job. Sioux Falls, SD has been the company’s headquarters since 1970 and employs approximately 200 people in manufacturing, fabrication, engineering, technical sales, application engineering, accounting and other administrative positions.