Riverside Sews Up Latest Acquisition
Fabric Design and Distribution Company Joins Riverside's Portfolio
August 8, 2006 | Cleveland, OH -
The Riverside Company, the largest private
equity firm investing in premier companies
at the smaller end of the middle market,
seamlessly acquired Momentum Textiles,
Inc. ("Momentum"), in partnership
with Momentum's management and employees.
A leading designer and distributor of
fabric for commercial furniture, Momentum
serves almost all of the 250 U.S.-based
commercial furniture manufacturers and
5,000 architectural and design firms.
Riverside's latest transaction weaves
Momentum into the 2003 Riverside Capital
Appreciation Fund ("RCAF '03")
portfolio as the 19th platform investment.
Headquartered in Irvine, California,
Momentum has an 82-year history, which
includes a management buyout in 1993
from its publicly traded holding company.
Today, employee-owned Momentum sells
three primary brands and offers 620
distinct pattern choices and 4,829 SKUs.
The Company distinguishes itself from
its competition through proprietary
products, outstanding customer service,
short lead-time delivery, price and
aesthetics. Momentum fabrics are found
in offices, hotels, restaurants, schools
and healthcare facilities.
"Momentum's leadership position,
its superb management, tightly honed
business processes and quality control
are what attracted Riverside to the
Company," said Karen R. Pajarillo,
Riverside's Principal. "We will
continue Momentum's employee-ownership
culture by investing alongside them
and supporting management's aggressive
vision on how to continue Momentum's
impressive growth."
"Riverside will help Momentum
successfully penetrate new markets and
utilize our expanding supplier base,"
said Roger Arciniega, President, Momentum
Textiles. "Our entire team is rolling
up our sleeves in anticipation of hard
work and great rewards."
Working with Pajarillo on the transaction
were Stuart Baxter, Managing Partner,
Meranee Phing, Associate, and Anand
Shelat, Analyst. Senior debt for the
transaction was provided by US Bank
National Association. Subordinated debt
was provided by Babson Capital Management.
Barrington Associates, representing
the seller, brought Riverside this opportunity.
The Riverside Company
The Riverside Company is the largest
private equity firm focused on the smaller
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 137 transactions
with a total value of $2.7 billion,
sales of $2.4 billion, EBITDA of $265
million, and more than 11,000 employees.
Its current portfolio in the U.S. and
Europe numbers 51. Riverside offers
SureClose® (the highest certainty
that a transaction will close) and the
resources to complete acquisitions smoothly
and in as little as 30 days - thanks
to its sizeable pool of capital under
management ($1.6 billion in eight funds
and growing), large staff in 11 offices
(New York, Cleveland, Dallas, San Francisco,
Atlanta, Chicago, Los Angeles, Budapest,
Munich, Prague, and Warsaw), 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.
Momentum Textiles, Inc.
Momentum is a contract textile supplier
that distributes fabric to commercial
furniture manufacturers ("CFM")
and architectural and design ("A&D")
firms who serve the office, hospitality,
education and healthcare markets. Momentum's
proprietary products, focus on customer
service, pricing and attention to aesthetics
have made the Company the supplier for
almost all of the 250 CFMs in the U.S.
and about 5,000 A&D firms. More
information on Momentum Textiles can
be found at www.themomgroup.com.
For more information, contact:
Christine Croissant
The Riverside Company
216-344-1180
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