The Riverside Company has sold its portfolio company AIA Corporation, a promotional products company, to McNally Capital. Riverside first invested in AIA in 2005.
AIA provides a variety of promotional products and corporate apparel through approximately 300 independent franchises. Products include branded pens and tote bags to higher-end corporate branded gifts. AIA’s independent franchises work with customers to promote brands and build companies’ images through promotional products and campaigns. AIA is based in Neenah, WI (www.aiagearedforgrowth.com).
“By providing excellent backend support and innovative sales and marketing ideas for affiliates, AIA was able to attract franchisees to drive growth throughout our hold period, and their excellent service and value helped them retain more than 90% of customers on a consistent basis,” said Riverside Managing Partner Loren Schlachet.
During the course of Riverside’s ownership, AIA grew by developing a technology platform to support its franchises and by increasing the size and sophistication of its Affiliate program for individual salespeople and industry distributors. Riverside also completed one add-on acquisition that added customers and capabilities to AIA during the hold. For the entire Riverside hold period, AIA’s employee headcount increased 36%.
“It’s been rewarding to help AIA become bigger and better over the past eight years,” said Riverside Principal Brian Sauer. “AIA has a great management team that shared our goals and worked with us to make AIA thrive.”
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 $250 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in more than 310 transactions with a total enterprise value of more than $6 billion. The firm’s current portfolio includes more than 70 companies. The Riverside Company is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
“We got results through working with Riverside because they took the time to understand our culture, and worked side-by-side with us to achieve our shared vision for the company,” said AIA CEO David Woods. “The last eight years have been a pleasure, and we’re poised for sustained future growth thanks to the support of the Riverside team.”
Working with Mr. Schlachet and Mr. Sauer on the transaction for Riverside were Assistant Vice President Brad Resnick; Associate Danielle Leimbach; and Operating Executive – Finance, Kim Katzenberger. Managing Partner and Global Executive Operating Partner Ron Sansom led the Operating team on the transaction. Origination Principal Amy Margolis helped facilitate the sale for Riverside.
The acquirer of AIA Corporation, McNally Capital, works with family offices to help them make and manage their investments in private companies and private equity funds. The firm also acts as a principal investor and can partner with high net worth family offices to invest in companies with EBITDA’s from $2 million to $25 million. Sectors of interest include industrials, food, packaging, distribution, logistics, consumer and healthcare. McNally Capital is based in Chicago (www.mcnallycapital.com).
Investment bank Cleary Gull advised Riverside on this transaction.
© 2013 PEPD • Private Equity’s Leading News Magazine • 9-3-13
