Riverside Co. said Monday that it has completed the sale of Hardware Resources, a Bossier City, La.-based maker of cabinet and vanity supplies, to Harbour Group. Financial terms weren’t announced. The deal produced a 24% gross IRR and 3.8x gross on cash-on-cash return, Riverside said. Harbour Group, of St. Louis, is a privately owned company. Riverside Co. is a PE firm. Harris Williams provided financial advice to Hardware Resources.
The Riverside Company has completed the sale of Hardware Resources, a manufacturer of cabinet hardware that supplies a wide variety of cabinet and vanity supplies. The transaction produced a 24% gross IRR and 3.8x gross cash-on-cash return for investors in the 2003 Riverside Capital Appreciation Fund.
Riverside purchased Bossier City, Louisiana-based Hardware Resources in 2004 and concentrated on expanding its product offerings. During Riverside’s ownership, Hardware Resources expanded from its core product line of decorative and functional metal cabinet hardware by entering the wood business, which includes decorative trim pieces, mouldings, and drawer boxes for custom cabinets. The company also introduced vanities during Riverside’s hold period.
Hardware Resources also grew geographically during Riverside’s ownership, adding sales people and distribution centers in new markets in the Northeast, Midwest and West, in addition to strengthening the company’s home territory in the Southeast.
“Hardware Resources weathered an unprecedented downturn in residential construction and remodeling during our hold period,” said Riverside Partner Stephen Dyke. “The company performed admirably through the slump and is poised for accelerated growth upon market recovery.”
Working with Dyke on the transaction from Riverside were Martin Graul, Vice President and Justin Cordon, Associate.
Harris-Williams advised Riverside on the sale of Hardware Resources to Harbour Group, and Jones Day provided legal counsel. This is the eighth exit of the year for Riverside and the 58th overall.
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 239 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 70 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.