Specialized Investing - Specialty Manufacturing & Distribution
The Riverside Company has invested in more than 80 specialty manufacturing and distribution platform companies since its founding in 1988. Visit our portfolio to see our complete list of manufacturing and distribution companies.
The Right Specialty Manufacturing & Distribution Deals
Riverside seeks to invest in specialty manufacturing and value-added distribution companies across a wide variety of end markets. Our dedicated global team focuses on growing companies in the specialization.
Riverside seeks special, market leading companies with attractive EBITDA margins (15%+), strong customer value propositions and clear differentiation from competitors. These companies often deliver:
- Recurring-demand products (i.e. consumables, wear parts, repair and replacement parts, etc.)
- Products with cost asymmetry between production and the cost of a product failure
- Products that are a small, but important component of larger system
- Products with strong process or product IP or engineering content that make the product unique
- Highly customized products (i.e. lots of lower volume SKUs)
- Ownership of the end customer relationship
- Attractive growth opportunities – strong secular trends, add-on acquisitions and/or cyclical recovery
- Diversified customer bases, end markets, suppliers, etc.
- Services – Many of our specialty manufacturing investments have a strong service component to complement the product offerings
How Riverside Adds Value To
Manufacturing & Distribution Companies
Riverside loves growth, particularly when it comes in the form of both revenue and margins. Some investors only seek to reduce costs or financially engineer a return. We seek to support potential investments for growth through some of the following avenues:
- Investing in new product development
- Leveraging Riverside’s global footprint to enter new markets and/or develop low-cost production capabilities
- Introducing or building upon progressive manufacturing practices
- Adding new sales channels or horsepower in existing channels
- Building out the management team to appropriately prepare the company for the future
- Strengthening IT systems to provide management with the data and insight needed to grow
- Developing a targeted add-on acquisition strategy — on average Riverside completes one acquisition for each platform company acquired, helping drive strategic objectives
Contact us to learn more about Riverside’s manufacturing and distribution specialization.