Riverside Announced 12th Deal in 2009

The Riverside Company has acquired Precision Wire Components, a Tualatin, Oregon-based maker of wire used in medical procedures, from its founders for an undisclosed amount. The investment comes Riverside Capital Appreciation Fund V and the firm plans to use the deal as a platform. It marks Riverside’s 12th deal this year.

Press release:
Precision Wire Components Joins Private Equity Firm’s Growing Healthcare Portfolio

Deal Type: Key Stats:
Platform Acquisition: 12th Riverside Acquisition of 2009
Precision Wire Components LLC 38th Healthcare Acquisition
220th Acquisition Overall

Fund Family: Riverside Capital Appreciation Fund V (“RCAF V”)

Sellers: Founder and Management

Precision Wire Components (PWC)
Based in Tualatin, Oregon with operations in Heredia, Costa Rica
• Manufacturer of custom precision medical wire components used in minimally invasive cardiologic, neurovascular, women’s health, sports medicine and other procedures.
• Specializes in the production of small-diameter guidewires and related components.
• Differentiates itself through industry-leading customer service, responsiveness, and custom manufacturing capabilities.
• Leverages proprietary equipment and production techniques to meet the needs of an extremely exacting and demanding diversified customer base.
• Produces products specifically for medical-device customers who subsequently incorporate them in end-use devices.

Of Note:
The transaction marks Riverside’s third healthcare-related investment in roughly a month. The market for PWC’s products is expected to grow, as minimally invasive procedures increase in use due to continued technological advancements, changing patient demographics, and increasing focus on reducing costs in the healthcare system. PWC produces over 1,300 SKUs for approximately 300 customers, and is recognized for its unique ability to quote, prototype, produce, and assemble new products with extreme speed and skill.

Steve Dyke, Riverside Partner:
“Chuck Trover, Todd Hill, and the rest of the PWC management team have instilled a culture that’s highly focused on the customer. This attitude is pervasive throughout the organization and is a great foundation upon which to build. We’re excited about partnering with PWC and together we expect to build on the company’s success by enhancing sales resources, broadening production capabilities, and exploring strategic add-on opportunities.”

Chuck Trover, PWC Founder:
“Our goal was to select a buyer for PWC that would carry on our respect for our customers and maintain our unique culture within our company; a buyer that would value and support our strong work ethic that has made PWC a leader in quality medical device manufacturing. Our management team unanimously agreed that Riverside was a good match and strongly believes that Riverside can take PWC to the next level as a world class medical device company.”

Todd Hill, PWC President and CEO:
“Riverside is a natural partner for PWC. With their extensive investment experience in healthcare and other leading small companies, Riverside has a great record of guiding successful companies like PWC. Together, we’ll focus on leveraging PWC’s proven manufacturing capabilities, strong customer service, and culture of innovation to ensure PWC continues to grow and thrive in the coming years.”

Riverside Team:
Steve Dyke, Partner, Chris Jones, Principal, and Ashok Reddy, Senior Associate, represented Riverside’s healthcare device team, and were joined by Ryan Richards, Associate, and William Byrd, Analyst on the transaction. Joseph Ibrahim, Principal – Healthcare Origination, sourced the transaction – the second healthcare deal he has sourced since October. Harvey Sigelbaum, Riverside’s Senior Healthcare Advisor provided counsel on the transaction.

Senior debt financing was provided by Madison Capital as Agent, and Golub Capital, while Babson Capital provided the subordinated debt financing.

The Riverside Company (www.riversidecompany.com or www.riversideeurope.com)
The Riverside Company is a global private equity firm focused on acquiring leading small and medium-sized enterprises (with a value of up to $150 million) and partnering with strong management teams to enhance the success of its companies through acquisitions and organic growth. Since its founding in 1988, the firm has invested in 220 transactions with a total enterprise value of $5.0 billion. The investment portfolio in North America, Europe and Asia includes 70 companies with annual sales totaling $3.3 billion, EBITDA of $506 million and more than 13,000 employees (June 2009). Riverside offers the resources to complete acquisitions smoothly – thanks to its more than $3.0 billion in assets under management, more than 180 professionals in 18 offices (Atlanta, Brussels, Budapest, Chicago, Cleveland, Dallas, Eindhoven, Hong Kong, Los Angeles, Madrid, Munich, New York, Prague, San Francisco, Seoul, Stockholm, Tokyo and Warsaw) and its longstanding relationships with partner lenders. According to Thomson Venture Economics, seven of Riverside’s nine mature funds rank in the top 25% of all funds (as at 31 December 2008). The firm’s investors include the world’s leading pension funds, endowments, funds of funds, insurance companies and banks.

Precision Wire Components LLC (www.pwcwire.com)
Precision Wire Components (PWC) was founded in 1996 in suburban Portland, Oregon. The company designs and produces high precision medical guidewires and supporting components that are used in a wide variety of minimally invasive medical procedures. PWC produces components to the demanding specifications of its customers, as the Company’s wires must be very small (diameters typically ranging from 0.002 to 0.015 inches), strong and flexible, and be extremely responsive to a physician’s application of torque. PWC meets these needs through its engineering, metallurgical and manufacturing expertise.