The Riverside Company, a global private equity firm, has sold Stoffel Seals Corp, a security seals and ID tags company based in Congers, New York, to Tyden Group. The sale generated a 2.7x gross cash-on-cash return, according to the firm. Riverside acquired Stoffel in October 2004. The details of the deal were not disclosed.
Deal Type: Key Stats:
Sale of Stoffel Seals Corp. to Tyden Group 2.7x Gross Cash-on-Cash Return
Holdings Corporation 18% Gross IRR
2003 Riverside Capital Appreciation Fund (“RCAF ’03”)
Stoffel Seals Corp. (Stoffel)
Based in Congers, New York
• Manufactures plastic and metal consumable products designed for security, promotional and identification applications. The company’s product lines include:
o Security and traceability solutions, which are consumable, single-use products that protect the integrity, secure, and enhance the traceability of goods-in-transit and items in storage, including tamper-evident and barrier security seals.
o Brand identification and promotional solutions, which increase brand awareness at the point of purchase, including name badges, napkin bands, and custom packaging enhancements.
Riverside acquired Stoffel in October 2004, and significantly strengthened the company during its period of ownership. Riverside began by improving Stoffel’s management team through the hires of a new CEO, CFO, and VP of Manufacturing, and then worked with management to improve the focus of the organization. Key accomplishments included:
• Streamlining of product offering and divesting non-core product lines, rationalizing the business from nine business lines to two.
• Consolidation of U.S. manufacturing to a more efficient facility in Tallapoosa, Georgia, and implementation of lean manufacturing and ISO quality standards.
• Improving resource allocation and focus on the high-growth security seal market.
• Establishment of global sourcing and customer relationships.
The December 2005 strategic add-on of Canada Mayer added new products, particularly in the rapidly growing barrier security seal market, provided international growth opportunities, and gave Stoffel an important presence in northern North America.