The Riverside Company has sold DISA Global Solutions, a provider of drug and alcohol testing services. Riverside acquired DISA in January 2011.
DISA Global Solutions serves safety-sensitive and labor-intensive industries by providing services that include drug and alcohol testing, background screening, occupational medicine screening, and US Department of Transportation-related compliance services. The company’s largest customers are in the oil & gas and transportation industries. DISA is headquartered in Houston (www.disa.com).
“DISA’s outstanding leadership team shared our vision for the company,” said Riverside Partner Brian Sauer. “Together, we built on the company’s strong value proposition in safety for its customers and grew DISA into a global player meeting the needs of safety-sensitive industry customers around the world.”
During its hold period, Riverside worked with DISA’s management team to grow the company both organically and through add-on acquisitions. Organically, DISA expanded its services offerings and added new customers and geographies throughout Riverside’s ownership. Riverside completed six add-on acquisitions for DISA during the hold period including a UK company serving North Sea oil & gas customers and a provider of vehicle and driver compliance services, which expanded DISA’s reach and capabilities.
According to Riverside, a notable accomplishment during its hold period was DISA’s expansion internationally and into the transportation sector. “DISA already had a strong position in the energy sector when we acquired the company,” said Riverside Managing Partner Loren Schlachet. “We worked with DISA’s leadership to build a larger and more capable company that served a broader array of customers in additional industries.”
In addition to adding customers in new and existing industries through add-ons, Riverside supported DISA’s growth within the energy sector. DISA was bolstered with investments in technology, management and sales and marketing capabilities. DISA grew dramatically in partnership with Riverside as the company rapidly added customers and captured cross-selling opportunities. “DISA is a story of building an exceptional company on a very strong foundation,” said Mr. Sauer. “We are delighted with the results, and we leave DISA a bigger and better company than when we found it.”
Working with Mr. Schlachet and Mr. Sauer on the transaction for Riverside were Vice President Steve Rice, Associate James Zhang, Operating Partner Dan Colbert and Finance Director Tom Wrabel. Riverside Origination Principal Amy Margolis worked with the deal team to facilitate the sale of the business.
The Riverside Company acquires businesses that have valuations of up to $250 million. Since its founding in 1988, Riverside has invested in more than 360 transactions and the firm’s international portfolio includes more than 75 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
Piper Jaffray, Houlihan Lokey, Deloitte and Jones Day advised Riverside on the transaction.
2014 PEPD • Private Equity’s Leading News Magazine • 12-10-14
