River Associates has acquired ID Label, a manufacturer of barcode labels and warehouse signage. The acquisition of ID Label marks River Associates’ third platform investment in 2024.
ID Label produces custom variable information labels and signage used by third-party logistics providers, multi-site manufacturers, and organizations across the logistics, healthcare, electronics, and lumber sectors. The company’s services include engineering design, production, and installation.
Founded in 1994 by Neil Johnston, ID Label is headquartered northwest of Chicago in Lake Villa, Illinois.
“Throughout the process, River Associates consistently emerged as our top choice,” said Mr. Johnston. “I’m thrilled they saw ID Label’s value and growth potential. We will expand our capabilities and market reach, allowing us to better serve our customers. Most importantly, we will maintain our strong ID Label brand, preserving the quality and reputation we’ve built over the past 30 years.”
The acquisition was funded by equity from River Associates’ eighth fund, River VIII LP, and was led by Blake Lewis and Ken Trent, both principals at River Associates.
“We are excited to welcome ID Label to our portfolio,” said Mr. Trent. “ID Label is an excellent platform for River’s Fund VIII. ID Label comes with a strong existing management team, an industry-leading brand, and a pristine facility with ample capacity to achieve solid growth for the foreseeable future. We look forward to partnering with the management team and supporting the company as it continues building on its impressive success track record.”
River Associates invests in United States and Canada-based companies with revenues of $15 million to $100 million and EBITDA of $3 million to $12 million. Sectors of interest include manufacturing, high-margin distribution, industrial services, and business services. River Associates was founded in 1989 and is headquartered in Chattanooga, Tennessee.
NXT Capital provided financing for the transaction, and Mesirow Financial served as the financial advisor to ID Label.
© 2024 Private Equity Professional | November 26, 2024
