Riverside Seals Deal, Exits Stoffel October 04, 2010
Manufacturer of Closure Devices and Identification Materials Is Riverside’s 6th 2010 Exit
Sale of Stoffel Seals Corp. to Tyden Group Holdings Corporation
2.7x Gross Cash-on-Cash Return; 18% Gross IRR
2003 Riverside Capital Appreciation Fund (“RCAF ’03”)
Stoffel Seals Corp. (Stoffel)
Based in Congers, New York
- Manufactures plastic and metal consumable products designed for security, promotional and identification applications. The company’s product lines include:
- Security and traceability solutions, which are consumable, single-use products that protect the integrity, secure, and enhance the traceability of goods-in-transit and items in storage, including tamper-evident and barrier security seals.
- Brand identification and promotional solutions, which increase brand awareness at the point of purchase, including name badges, napkin bands, and custom packaging enhancements.
Riverside acquired Stoffel in October 2004, and significantly strengthened the company during its period of ownership. Riverside began by improving Stoffel’s management team through the hires of a new CEO, CFO, and VP of Manufacturing, and then worked with management to improve the focus of the organization. Key accomplishments included:
- Streamlining of product offering and divesting non-core product lines, rationalizing the business from nine business lines to two.
- Consolidation of U.S. manufacturing to a more efficient facility in Tallapoosa, Georgia, and implementation of lean manufacturing and ISO quality standards.
- Improving resource allocation and focus on the high-growth security seal market.
- Establishment of global sourcing and customer relationships.
The December 2005 strategic add-on of Canada Mayer added new products, particularly in the rapidly growing barrier security seal market, provided international growth opportunities, and gave Stoffel an important presence in northern North America.
Kristin Newhall, Riverside Partner
“Our efforts with Stoffel demonstrate some of the key reasons for Riverside’s success. Stoffel was a classic little leader, with clear opportunities for improvement, such as building a better management team, acquiring a competitor with complementary products in a key new geographic region, and capitalizing on verticals with the most profit potential.”
Kristin Newhall, Partner; Chris Jones, Principal; and Raj Bhatt, Associate.
Stifel Nicolaus Weisel acted as the exclusive adviser to Stoffel and Riverside on the transaction. Jones Day provided general counsel to Riverside on the sale.
The Riverside Company (www.riversidecompany.com or www.riversideeurope.com)
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 238 transactions with a total enterprise value of more than $5.4 billion/€4.4 billion. The firm’s portfolio in North America, Europe and the Asia Pacific region includes 72 companies with roughly 14,000 employees. Riverside completes acquisitions smoothly thanks to $3.4 billion/€2.7 billion in assets under management, more than 195 professionals in 19 offices, and longstanding relationships with partner lenders.
Stoffel Seals Corporation (www.stoffel.com)
Stoffel manufactures a diverse line of security seals, identification tags, and promotional materials that provide security, enhance packaging and boost brand awareness. The company is headquartered in Congers, New York and produces its materials in Tallapoosa, Georgia, and Laval, Quebec.
Director of Marketing and Communications
The Riverside Company