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Riverside Backs Bracing Company to Support Orthopedic Product Platform
July 25, 2005 | Approximately 31
million Americans, or 14% of the U.S.
population (and probably a very high
percentage of us reading this press
release) experience occasional lower
back pain. And as we get older, that
number is sure to climb. So The Riverside
Company, the largest private equity
firm specializing in investments at
the smaller end of the middle market,
has found an investment niche to love:
supportive orthopedic products for backs
and other parts of the body.
In December 2004, Riverside acquired
platform company FLA Orthopedics, a
leading manufacturer and marketer of
orthopedic bracing, supports and related
products, which are used in a broad
range of preventative and rehabilitative
applications and include supports/braces
for the wrist, elbow, knee, back and
ankle. Today, the private equity firm
has doubled down on its investment with
the purchase of American Professional
Bracing ("APB") as a complementary
add-on to FLA.
Founded in 1992, APB makes patented
back braces for people suffering from
herniated discs and other serious back
problems. Customers of APB are home
medical equipment dealers and distributors,
orthopedic surgeons, orthotists and
the products can be used both pre- and
post-operatively. The Company is headquartered
in Eatontown, New Jersey.
"APB is a classic entrepreneurial
story," commented Brooke Ablon,
a Riverside Partner. "Jim Plate
founded it in 1992 with seed money from
a friend. Since its inception, APB's
gross profit has grown at a CAGR in
excess of 20%. By joining APB to FLA,
we'll create significant cross-selling
opportunities and will support FLA's
continued growth."
"We are delighted to add the
people and products of American Professional
Bracing to FLA Orthopedics," said
Rex Niles, FLA CEO. "This acquisition
provides an additional platform for
growth through our extensive network
of retailers and will augment our market-leading
position in the home medical equipment
market."
Working with Ablon on the acquisition
were Riverside's Karen Pajarillo, Peter
Tsang and Brian Sauer. The transaction
was sourced by Riverside's Scott Gilbertson,
Regional Director, Sourcing & Origination.
This acquisition is Riverside's 12th
in the last 12 months and is the 16th
from firm's 2003 fund, which closed
in January 2004 with $750 million in
commitments.
The
Riverside Company
The Riverside Company is the largest private equity firm focused on the small end of the middle market and is one of the industry's most experienced leveraged buyout investors. Riverside specializes in premier companies with enterprise values of less than $100 million, and partners with strong management teams to build companies through acquisitions and value added growth. Since 1988, the firm has invested in 111 transactions with a total value of $2.1 billion, sales of $2 billion, EBITDA of $200 million and 10,000 employees. Its current portfolio numbers 37. Riverside offers SureCloseŽ (the highest certainty that a transaction will close) and the resources to complete acquisitions smoothly and in as little as 35 days -
thanks to its sizeable pool of capital under management (nearly $1.3 billion in six funds and growing), large staff in eight offices (New York, Cleveland, Dallas, San Francisco, Budapest, Prague, Warsaw and
Munich), and long-standing relationships with partner lenders. The firm has produced top quartile returns for its investors, which are among the world's leading pension funds, endowments, funds-of-funds, insurance companies and banks.
American Professional Bracing, Inc.
Founded in 1992, APB provides state-of-the-art,
patented back braces for people suffering
from herniated discs and other serious
back problems. The Company's customers
include orthopedic surgeons, orthotists,
home medical equipment dealers and distributors.
The Company is headquartered in Eatontown,
New Jersey. More information can be
found at www.apbracing.com.
FLA Orthopedics
FLA, founded in 1975, is the leading
brand of orthopedic bracing and supports
sold in HME retailers carrying orthopedic
products. The Company has facilities
in Miramar, Florida and Huntersville,
North Carolina. More information can
be found at www.flaorthopedics.com.
For more information, contact:
Christine Croissant
The Riverside Company
216-344-1180
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