Saw Mill Capital has acquired iAutomation, a designer and distributor of automation products, from The Riverside Company which first invested in the company in 2007.
iAutomation helps customers to identify, select, procure, apply and operate components used to automate machinery. The company’s services include project development, software programming, drawings and documentation, system packaging, and installation and start-up. Other services include training programs, electrical panel fabrication, and custom cable builds and assemblies. The company, led by CEO Charles Williams, employs 60 engineers and is headquartered south of Boston in North Attleboro, MA (www.i-automation.com).
“Led by industry veteran Charles Williams, the management team has assembled a leading platform of engineers who provide high-touch design, consulting, field-support and distribution services to leading equipment builders in North America,” said Tim Nelson, a Partner at Saw Mill Capital. “iAutomation positions customers with distinct and scalable product advantages by leveraging its deep line card of the most technologically advanced automation suppliers in the world. We look forward to our new partnership and to continuing the growth of this team.”
Saw Mill Capital invests in manufacturing and service companies with enterprise values of $25 million to $200 million. Platform investments typically have at least $5 million of EBITDA and revenues of $40 million to $150 million. The buy of iAutomation is the second investment for Saw Mill’s most recent private equity fund, Saw Mill Capital Partners II, LP. The first Fund II investment closed in January 2016 with the acquisition of Wolf-Gordon, a distributor of wallcoverings and other interior building products. Saw Mill Capital is headquartered north of New York City in Briarcliff Manor (www.sawmillcapital.com).
During Riverside’s hold period the company completed and integrated three add-on acquisitions and oversaw revenue growth of more than 450% and EBITDA growth of more than 300%. In addition to securing and helping integrate the add-ons, Riverside guided a CEO transition, worked through the loss of a major supplier and supported the business through market challenges.
“iAutomation spent a lot of our hold period facing headwinds,” said Riverside Managing Partner Loren Schlachet. “Its industry was hit hard by the global recession but we helped iAutomation come out of it stronger and able to capture more market share.”
The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 450 transactions. The firm’s international portfolio includes more than 80 companies. The firm is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
Lincoln International was the investment banking advisor to Riverside on this transaction.
© 2017 Private Equity Professional | January 17, 2017
