The Riverside Company exited its investment in EM Test Group, selling the Swiss manufacturer and supplier of electromagnetic compatibility testing equipment to AMETEK Inc. for CHF83 million ($93.8 million). Riverside owned EM Test Group for roughly four years. The sale generated a 3.4x gross cash-on-cash return and a 38% gross IRR for the firm, Riverside said.
The Riverside Company exited its investment in EM Test Group (EM Test), selling the Swiss manufacturer and supplier of electromagnetic compatibility (EMC) testing equipment to AMETEK, Inc. for CHF83 million after almost four years of growing the company. During the period of Riverside’s ownership, EM Test achieved double-digit growth. The sale generated a 3,4x gross cash-on-cash return and a 38% gross IRR for Riverside and its investors.
Clients in the automotive, industrial, telecom and other industries use EM Test’s EMC test and measurement instrumentation. The company is based in Reinach, Switzerland and has sales and service centers in Germany, China and the U.S. Its products are available in more than 40 countries around the world.
“Despite challenging times, EM Test enjoyed excellent growth during our ownership period,” said Riverside Partner Volker Schmidt. “Germano Taddio, the CEO at EM Test and his team, did a great job managing the company not just through the financial crisis but accelerating out of it. Based on innovation and new product development, revenues this year will exceed pre-crisis levels by 30%. I would like to thank everyone involved and wish EM Test ongoing success as part of the AMETEK Group.”
Riverside acquired EM Test in March 2008, after being attracted to the company by its market-leading position and its exceptional reputation for innovation, quality and customer service. The 2009 add-on acquisition of Lüthi Elektronik Feinmechanik AG allowed EM Test to integrate a leading producer of measuring clamps for EMC test equipment. This brought a key supplier in-house while fortifying EM Test’s market position.
Riverside’s original investment plan called for expanding and deepening EM Test’s footprint and products. Confronted with the global economic crisis, EM Test flexibly adjusted its output, making use of the government-supported short-time labour scheme. With the key drivers for demand in EMTests products intact, the company was poised for growth after the downturn and further strengthened its position as the leading supplier in its space.
Working with Schmidt on the transaction from Riverside were Dominik Heer, Principal, who also initially originated the acquisition of EM Test and Justin Kent, Vice President. Robert W. Baird advised Riverside on the sale of EM Test. Walder Wyss and Wenger & Vieli provided legal counsel on the transaction.
The Riverside Company
The Riverside Company is a global private equity firm focused on acquiring growing enterprises valued at up to $200 million (€200 million in Europe). The firm partners with strong management teams and enhances its investments through acquisitions and organic growth. Since its founding in 1988, Riverside has invested in more than 260 transactions with a total enterprise value of more than $5.8 billion / €4.7 billion. The firm’s portfolio in North America, Europe and the Asia-Pacific region includes more than 75 companies with roughly 14,000 employees. Riverside completes acquisitions smoothly thanks to $3.4 billion / €2.7 billion in assets under management, more than 200 professionals in 20 offices, and longstanding relationships with partner lenders.