Riverside Acquires Spectrio

Riverside Acquires Spectrio

spectrio nf4The Riverside Company has acquired a majority stake in Spectrio, a provider of on-hold messaging and digital signage managed services, from SJ Partners and other investors.

Spectrio’s services range from on-hold messaging to overhead music and digital signage video displays. Spectrio utilizes these formats to create brand messaging for its clients and to maximize “marketing moments” during any time customers would normally spend in a passive environment, such as waiting in line at the store or on-hold via telephone. The company’s customers are active in the healthcare, automotive, retail, and hospitality industries.  Spectrio provides content creation, production of audio or visual content, installation, and network management services. Spectrio was founded in 2002 by CEO Aaron Kleinhandler and President Mitch Keller.  The company is based near Tampa in Oldsmar, FL (www.spectrio.com).

Spectrio, formerly known as Audio Messaging Solutions, was acquired by SJ Partners in May 2005. During the course of SJ Partners’ ownership the company completed ten add-on acquisitions and increased profitability by 10 times.  Riverside intends to continue building the company through both an organic and add-on acquisition growth strategy.

chris jones nf2“Spectrio has an experienced and talented management team that we look forward to supporting in continuing the company’s impressive record of growth,” said Riverside Partner Chris Jones.  “We’re eager to continue Spectrio’s add-on strategy, and we will continue to invest in the company’s service and technology capabilities to ensure Spectrio maintains its leadership position and compelling value proposition.”

Working with Mr. Jones on the transaction for Riverside were Principal Peter Tsang, Senior Associate Max Moehlmann, Associate Surejdip Sembiring, Associate Linda Xu and Operating Partner George Benson. Origination Principal Scott Gilbertson sourced the opportunity and Partner Anne Hayes worked on financing the transaction for the firm.

BMO, NXT Capital and New Canaan provided financing for the transaction.  Lazard Middle Market acted as financial advisor to Spectrio in this transaction.

“We want to thank SJ Partners and our other investors for their support and we are excited to be working with Riverside in the next stage of the company’s growth,” said Mr. Kleinhandler.

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 350 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).

SJ Partners acquires companies with EBITDA of $2 million to $10 million and revenues of $10 million to $200 million. Sectors of interest include consumer products companies (personal care products, food, sporting goods) and service companies (business, information, aerospace and government). SJ Partners was founded by Scott Johnson in 2001 and is based in New York (www.sjpartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 10-16-14

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