River Associates Buys Rose City Printing & Packaging

River Associates Investments has acquired a controlling stake in Rose City Printing & Packaging via a recap. Rose City’s management increased their ownership in the company. Financial terms were not announced. Vancouver, Wash.-based Rose City is a folding carton manufacturer. D.A. Davidson & Co. served as financial advisor to Rose City.


Rose City Printing & Packaging (“Rose City”) announced today that it has completed a recapitalization with River Associates Investments, LLC (“River”).  River partnered with the management team and former owner of Rose City on the transaction, and will own a controlling interest in the recapitalized Company.  Rose City’s management team significantly increased its ownership of the Company through the transaction, which closed on December 11, 2012. Financial information was not released.
The transaction provides Rose City with access to significant capital resources to support management’s plans for the Company’s continued growth through increased market share and new product offerings, which may include acquisitions that build upon the Company’s strengths.

Rose City’s President Steve Lobis believes the strong financial backing combined with Rose City’s excellent service and manufacturing capabilities provide a great opportunity for customers.  “I am excited we can now look to continue to aggressively grow in our market and other markets by providing superior service with state of the art manufacturing techniques and facilities.  We believe that our model can be expanded to deliver superior value to our present and future customers.”

D.A. Davidson & Co. served as the sole financial advisor on the transaction.

River Associates Investments, LLC
Founded in 1989, River Associates is a Chattanooga, TN based private equity partner for management teams in change-in-control transactions in lower middle market companies.  Target businesses can be privately held, private equity-backed, or divestitures from larger companies.  River Associates is opportunistic as to industry and has invested in numerous manufacturers, high margin distributors, industrial service, business service, and select non-faddish retail.  The firm is currently investing its sixth committed fund and seeks to make investments in companies with $30 – 150 million in revenues throughout the United States and Canada.  River Associates has completed over 70 transactions in its 23 year history, and its partners have collectively worked together for over 75 years.  www.riverassociatesllc.com

Rose City Printing & Packaging
Rose City is one of the largest and fastest growing independent folding carton manufacturers on the West Coast with facilities in Vancouver, Washington and Gresham, Oregon.   The company was founded in 1945 and has been independently owned for its entire existence.  Rose City’s philosophy is that their success is derived from the success of their customers. Therefore they are uniformly focused on providing unmatched world class service built on reliability, flexibility, and responsiveness.  The company has grown at a compounded annual rate of greater than 15% over the past four years.  www.rcpp.com

D.A. Davidson & Co.
D.A. Davidson is an employee-owned financial services firm, founded 77 years ago, that serves clients nationwide. D.A. Davidson is part of a larger corporate entity, Davidson Companies, with $32 billion in client assets under management and more than 1,100 employees working from offices in 19 states.  D.A. Davidson’s Investment Banking Group provides full-service underwriting and advisory services for mid-size and growing companies, including public offerings, mergers and acquisitions and private placements. www.davidsoncompanies.com/ecm

Forward-Looking Information
Any statements in this news release relating to future events, including any expected business and financial performance are “forward-looking statements”.  Such forward-looking statements are subject to various factors and uncertainties and are necessarily based upon estimates and assumptions.  Actual events are difficult to predict, and factors and uncertainties such as financial performance, integration, personnel, market, economic, legal, and other similar matters may cause actual results to differ significantly from expectations.