Riverside Co. Buys DISA Inc.

International private equity firm Riverside Co. acquired DISA Inc., a provider of employee screening services for safety-sensitive industries. Specifics on the transaction were not publicized. Fifth Street Finance Corp provided senior financing; Jones Day and Deloitte provided Riverside with legal counsel and accounting support, respectively. Houlihan Lokey acted as financial advisor to the target.

The Riverside Company has acquired DISA, Inc. (DISA), a provider of outsourced employee screening services to customers operating in a variety of safety-sensitive industries, particularly the oil and gas industry.

DISA’s services help mitigate risk by providing health and safety compliance solutions to companies operating in safety-sensitive industries. DISA’s services cater to the unique challenges facing companies that frequently use contractors in work environments with significant health and safety risks. DISA’s contractor consortium and proprietary IT platform help customers efficiently manage contractor employment screening and health and safety compliance, leading to reduced testing volume and increased reliability of customer compliance programs.

Based in Houston, DISA was founded in 1987 as a regional third-party administrator for drug and alcohol screening. DISA has since added background screening, occupational health, occupational medical records tracking and OSHA training to its service portfolio. DISA’s proprietary online data management system, DISAWorks, enables customers to track and manage information online in a highly secure, real-time environment.

DISA believes it has significant opportunity to expand its international operations as more companies adopt U.S.-type screening standards throughout the world. Currently, very few collection sites exist outside the U.S., and DISA is excited about the international growth potential.

“DISA has been an innovator in employee screening services for more than two decades,” said Riverside Managing Partner Loren Schlachet. “Their blue-chip customer base, proprietary technology and history of providing creative solutions all combine to make DISA a very attractive opportunity for accelerated growth.”

Working with Schlachet on the transaction for Riverside were Brian Sauer, Vice President; Dan Colbert, Operating Partner; Mary Anne McLaren, Finance Director; Tim Thacher, Analyst; and Steve Rice, Analyst. The deal was sourced by Robert Landis of Riverside’s Origination team.

Fifth Street Finance Corp provided senior financing for the transaction. Jones Day and Deloitte provided Riverside with legal counsel and accounting support, respectively. Houlihan Lokey acted as financial advisor to DISA.

The Riverside Company (www.riversidecompany.com or www.riversideeurope.com)
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 240 transactions with a total enterprise value of more than $5.4 billion/€4.4 billion. The firm’s portfolio in North America, Europe and the Asia Pacific region includes 71 companies with roughly 14,000 employees. Riverside completes acquisitions smoothly thanks to $3.4 billion/€2.7 billion in assets under management, more than 195 professionals in 19 offices, and longstanding relationships with partner lenders.