The Riverside Company has sold its portfolio company Capol to Freudenberg Chemical Specialties. Riverside first invested in Capol in 2009.
Capol develops and manufactures polishing, anti-sticking and release agents used in the confectionary, pharmaceutical and agricultural industries. Capol has more than 250 trademarked products and sells its products in more than 60 countries. The company was founded in 1975 and is based in Elmshorn, Germany (www.capol.de).
During Riverside’s four-year term of ownership, the company grew revenues and earnings by annual growth rates of 15% and 12%, respectively. Riverside worked with the company’s management team to complete a significant add-on acquisition in the US, improve R&D, streamline production, and enhance sales & marketing in order to facilitate the company’s international growth.
“During our ownership, Capol has transformed into a truly international company run by a broad and skilled management team, and is well-positioned to further leverage the multiple growth opportunities ahead,” said Riverside Partner Thomas Blomqvist.
“Capol has been an exceptional investment,” said Riverside Principal Dominik Heer. “We’ve worked with a very talented management team which fortified Capol’s global leadership position in its key regions in Deutschland, Austria & Switzerland and North America, while further developing the business in the growth markets of Asia and Latin America. CEO Dr. Matthias Seemann and his team did a great job preparing the company for the next phase of sustained growth. I would like to thank everyone involved and wish Capol ongoing success as part of Freudenberg Group.”
The transaction was led by Mr. Heer and Mr. Blomqvist. Working with them on the transaction for Riverside were Vice President Sven-Hendrik Schulze and Associate Xueli Jin.
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 75 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).
KPMG and Watson Farley & Williams advised Riverside on the sale of Capol.
© 2013 PEPD • Private Equity’s Leading News Magazine • 8-9-13
