Riverside invests in European steel casting manufacturer
| 2007-08-16 Riverside invests in European steel casting manufacturer The private equity firm underscores commitment to the Nordic Market with growth in the Stockholm presence (16th of August 2007) | The Riverside Company, the largest private equity firm focused on the smaller end of the middle market, has acquired the Nordic manufacturer Keycast and its subsidiaries. Keycast is northern Europe's foremost producer of cast steel components for leading original equipment manufacturers in the mobile equipment, energy and process industries. The company's management team will join Riverside in the transaction, reinvesting in the company and maintaining operational involvement. Keycast was established as a combined entity in 1999, although its four foundries in Finland and Sweden have more than 300 years of steel-casting experience. Its wholly owned subsidiary, Combi Wear Parts ("CWP"), produces wear parts for construction machinery. In recent years, Keycast has experienced strong sales growth due to increased production and the focus and dedication of its management team. Sales increased 13% from 2003 to 2006, accelerating in 2006 with annual sales up 30% over 2005. Each of Keycast's foundries uses different alloys and separate production technology for unique customer segments. CWP, with locations in Kristinehamn, Sweden and Ljungby, Sweden, manufactures and sells wear parts for the dredging, construction and mining industries. Its recognizable brand and patented products lead the European wear parts market. "With Riverside as our trusted partner, our leadership position will become even stronger," said Simo Jutila, Group Chief Executive Officer, Keycast. "We will intensify our research and development efforts and as a result, we will bring more specialized products to market, deepening client relationships and reaching new customers. We will be able to produce far beyond the customized solutions we offer." "Keycast management has demonstrated its commitment to the company and, in the last four years, has implemented the kinds of operational improvements and investments Riverside sees as keys to successful expansion in its customer base and product offerings," added Tomasz Glowacki, Riverside Principal in Europe. "Following our successful exit from the Danish energy company Welltec just a few weeks ago, we are delighted to renew our commitment to the Nordic region with this investment. That commitment is underscored by our decision to create a permanent team of origination and transaction professionals for the Nordic region, based in Stockholm," said Tony Cabral, Riverside Managing Partner in Europe. Riverside recently hired Lars Eriksson, who is based in Stockholm and will be responsible for origination of deals in the Nordic region. Lars will soon be joined by a senior transaction professional to form a complete team in the Nordic region. The transaction, Riverside's 21st acquisition this year, was sourced by Karsten Langer, a Riverside Partner and head of the firm's European origination team. The transaction team was led by Tomasz Glowacki, accompanied by Adam Pietruszkiewicz, Vice President, and Marcin Goszyk, Analyst. HSH Corporate Finance and Attorneys at Law Borenius & Kemppinen advised Riverside on the transaction. OKO Bank, Finland provided debt financing. The Riverside Company is the largest private equity firm focused on the smaller end of the middle market and is one of the industry's most experienced leveraged buyout investors. Riverside specializes in investing in premier companies with enterprise values of less than $150 million, and partners with strong management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 168 transactions with a total enterprise value of $3.4 billion. Its current portfolio in the U.S. and Europe numbers 61, with combined annual sales of $3.0 billion, EBITDA of $450 million and more than 11,000 employees. Riverside offers the resources to complete acquisitions smoothly and in as little as 30 days - thanks to its sizeable pool of capital under management (nearly $2.0 billion in nine funds), large staff in 14 offices (New York, Cleveland, Dallas, San Francisco, Atlanta, Chicago, Los Angeles, Budapest, Munich, Prague, Warsaw, Brussels, Madrid, and Tokyo), and long-standing relationships with partner lenders. The firm has produced top quartile returns for its investors, which are among the world's leading pension funds, endowments, funds-of-funds, insurance companies and banks. More information on The Riverside Company can be found at www.riversidecompany.com and www.riversideeurope.com. The Keycast Group comprises four leading steel-making companies in Finland and Sweden, forming up the most comprehensive steel foundry consortium in northern Europe. Each company specializes in its own field of expertise. The main customers are premier enterprises in the Nordic countries, Europe and the United States. Customers receive high quality, effectiveness, reliable deliveries and flexible services. To find more information on Keycast, please visit www.keycast.nu. For more information, contact: Graham Hearns The Riverside Company 216-535-2221 © Copyright 2007 The Riverside Company. All rights reserved. |