Riverside Completes First Platform Acquisition in Asia
Becomes First Global Private Equity Firm Investing in Small Companies
(February 1, 2008) – The Riverside Company, the largest private equity firm investing globally in premier companies at the smaller end of the middle market, has acquired its first platform company in Asia. Shinsouki is the largest parking lot operator in Niigata City, Japan. Using the same investment thesis that has proven to be successful in the firm’s 20-year history in North America and Europe, Riverside was attracted to Shinsouki’s market leadership and the opportunities it presents for organic and add-on growth.
“Shinsouki heralds Riverside’s entry into the leveraged buyout world in Asia, and we are delighted to see our efforts in Asia launch with a classic Riverside deal: a special little leading business in a small niche market,” said Stuart Baxter, Riverside Managing Partner. “We’re thrilled with this acquisition and the team’s excellent work in finding and closing it. Shinsouki provides us the opportunity to bring Riverside’s brand of buying, investing in and growing small businesses in Asia, which is an untapped market in Riverside’s investment range.”
Shinsouki leases space and uses it to develop, operate and manage monthly and coin-operated parking lots throughout Niigata under the Friend Park brand. Shinsouki operates lots ranging from the largest in the area to the smallest “hidden treasure” lots of five to 15 spaces. Since its 1983 founding, the company has grown to operate over 70 parking lots with more than 3,000 spaces. Shinsouki’s success is based on its close connection with land owners and good relationships with local retailers who purchase service tickets to distribute to their customers, making Shinsouki’s lots preferred locations throughout the city.
“We are looking forward to working with Riverside to continue to grow through acquisitions, expanding our geography and penetrating deeper into the market,” said Yukio Tabuse, Shinsouki Founder and CEO. “The market is very healthy and with the commitment from Riverside, we are sure to have accelerated success.”
Riverside currently has 17 offices throughout the world, including its newest offices in Tokyo and Seoul. The firm plans to open additional Asian offices over time.
“The acquisition of Shinsouki demonstrates Riverside’s commitment to the region,” added Baxter. “With our activities in Asia, as well as in North America and Europe, Riverside now truly covers the private equity world and is the first global buyer of companies with enterprise values of under $150 million.”
Assisting Baxter on the Shinsouki transaction from Riverside were Kiyofumi Nakano, Managing Director; Tokihiko Mori, Managing Director and Hiroaki Wakashita, Associate, of Riverside Partners KK, Riverside’s advisory company in Japan.
The Riverside Company
The Riverside Company is the largest global private equity firm focused on the smaller end of the middle market (“SEMM”) and is one of the industry’s most experienced leveraged buyout investors. Riverside specializes in investing in premier SEMM companies (those with enterprise values of less than $150 million) and partners with strong management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 177 transactions with a total enterprise value of $3.4 billion. Its current portfolio in the U.S. and Europe numbers 60, with combined annual sales of $3 billion, EBITDA of $428 million and more than 11,000 employees. Riverside offers the resources to complete acquisitions smoothly and in as little as 45 days -- thanks to its sizeable pool of capital under management (nearly $2 billion in nine funds), over 150 professionals in 17 offices (New York, Cleveland, Dallas, San Francisco, Atlanta, Chicago, Los Angeles, Budapest, Munich, Prague, Warsaw, Amsterdam, Brussels, Madrid, Tokyo, Stockholm and Seoul), and long-standing relationships with partner lenders. Five of seven of the firm’s mature vintages are currently top quartile, and the firm’s investors include the world’s leading pension funds, endowments, funds-of-funds, insurance companies and banks. Please visit www.riversidecompany.com and www.riversideeurope.com for more information.
Founded in 1983 and acquired by a telecommunications business YOZAN, Inc, in 2006, Shinsouki is the leading operator of parking lots in Niigata City, Japan. Combining knowledge of the area and close relations with landowners, Shinsouki operates more than 3,000 parking spaces in the Niigata prefecture. For more information, please visit http://www.sinsouki.jp/.