The Riverside Company has completed the sale of MK Chimney Systems to French buyer Isotip-Joncoux Group. The sale of the Polish producer of chimney systems, liners and related products generated a gross cash-on-cash return of 2.9x. Riverside invested in MK in 2006.
“Riverside was a great partner in our growth. Within a short period of time, we implemented a new market strategy, completely modified production processes and changed the ERP system, completed an acquisition in Germany and improved the product portfolio. The company is now not only very profitable but diversified in terms of customers, products and suppliers,” said MK Chimney CEO Piotr Siudak.
MK manufactures and distributes branded flue gas extraction systems made of refined steel to customers throughout Europe. The company offers a variety of chimney systems, including single wall chimneys, double wall chimneys, condensation systems, chimney cowls and other products. The company is based in Zary, Poland (www.mkzary.pl).
“MK was a great company for Riverside’s international and growth-oriented approach,” said Principal Tomasz Glowacki, who led the transaction for Riverside, “Not only were we able to work with a strong management team, but we also had a great set of high-quality products upon which to expand the company. We’re proud of the work we did to further develop and build the company over the last six years.” Working with Mr. Glowacki on the transaction for Riverside were Operating Partner Fabio Pesiri, Principal Adam Pietruszkiewicz and Vice President Marcin Goszyk.
CAG advised Riverside on the sale of MK, and CMS Cameron McKenna provided legal counsel to the sellers.
The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $200 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 280 transactions with a total enterprise value of more than $6 billion. The firm is headquartered New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).