Riverside sells Stoffel Seals to Tyden Group

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
Fund Family:
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.

Ownership Highlights:
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.