ActivStyle Becomes 50th Company in Firm’s Expanding Portfolio
Cleveland, OH – The Riverside Company, the largest private equity firm investing in premier companies at the smaller end of the middle market, completed the fourth Micro-Cap portfolio transaction in less than a month with the purchase of ActivStyle, a distributor of consumable medical supplies with an emphasis on incontinence products. ActivStyle becomes the 50th company in Riverside’s current portfolio and marks the seventh addition to the Micro-Cap strategy focused on companies with less than $3 million EBITDA.
“While proud of the growing number of companies within our current portfolio, we remain very focused on the quality of acquisitions rather than quantity and feel particularly fortunate to have been in a position to acquire a company such as ActivStyle and the other 13 fine companies that we’ve bought so far this year,” commented Stewart Kohl, Riverside’s Co-Chief Executive Officer. “The increase in the size of our portfolio is reflective of the current market where private equity firms continue to garner a larger percentage of all M&A activity. Riverside, like other leading private equity firms, is uniquely qualified to grow these companies through additional capital, as well as through operational expertise.”
ActivStyle operates primarily in Minnesota, Iowa, Ohio, and Wisconsin. The Company sells its products and services primarily to government case workers and group home managers who direct the purchase of products to homecare patients, shipping over 8,000 monthly orders directly to customers’ homes. ActivStyle’s focus on providing high quality incontinence products, delivering superior customer service, and leveraging excellent compliance systems have contributed to its strong historic revenue and earnings growth. “ActivStyle differentiates itself in multiple ways which allow the Company to deliver a highly value-added product to its customers,” commented Loren Schlachet, Riverside Partner. “This strategy and the strong management team provide the basis for future opportunities in this niche.”
“We are very pleased to be partnering with Riverside and are excited about the future,” said ActivStyle’s CEO, Gregg Anderson. “We expect to continue to serve our customers with the same high level of service while maintaining the strong growth in the business.” Working with Schlachet on the transaction were Jack Nestor, Senior Associate and Kenny Shum, Analyst. Gladstone Capital Management provided financing for the acquisition.
The Riverside Company
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 premier companies with enterprise values of less than $100 million, and partners with strong management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 135 transactions with a total value of $2.1 billion, sales of $2.4 billion, EBITDA of $263 million and more than 11,000 employees. Its current portfolio in the U.S. and Europe numbers 50. Riverside offers SureClose® (the highest certainty that a transaction will close) and the resources to complete acquisitions smoothly and in as little as 30 days – thanks to its sizeable pool of capital under management ($1.4 billion in six funds and growing), large staff in 11 offices (New York, Cleveland, Dallas, San Francisco, Atlanta, Chicago, Los Angeles, Budapest, Munich, Prague, and Warsaw), 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.
ActivStyle is a full service medical supply company specializing in incontinence products. The Company offers a wide array of high quality incontinence and related products, fast shipment, monthly recurring home delivery of products, and high touch customer service that makes life easier for caregivers. Headquartered in Minnesota, ActivStyle maintains branch locations in Iowa, Illinois, and Ohio. For more information on ActivStyle, please visit the Company website at www.activstyle.com.