The Riverside Company Turns Alchemy into Gold(en Opportunity)

Firm Prepares to Sell Alchemy Systems, a Global Leader in Food Safety and Training

The Riverside Company has signed a definitive agreement to sell its investment in Alchemy Systems (Alchemy) to Intertek ITRK (LON). The Austin, Texas-based company delivers frontline employees food and workplace safety training and other operations and culture solutions through a software-as-a-service (SaaS) model.

Alchemy’s solution includes a proprietary library of more than 400 courses that cover food and workplace safety, HR and operations training. The organization helps many of the world’s top food and retail companies equip their frontline employees with the knowledge and confidence they need to elevate safety, productivity, culture and compliance.

“We had the pleasure of working with a great management team and benefitted from Alchemy’s already-strong leadership position in this highly attractive market,” said Riverside Managing Partner Loren Schlachet. “A key to our success was an aggressive approach to strategic add-ons. During our hold, we made four acquisitions that all enhanced Alchemy’s product portfolio, geographic footprint and strategic expansion into the fast food and retail sectors.”

Riverside invested in the company back in 2012, and Alchemy has grown its EBITDA approximately 10 times since the initial investment. The SaaS-based company falls into two key industries for Riverside - the Software & Information Technology and Training & Education Specializations. To date, the firm has invested in more than 30 education and training companies and more than 25 software companies.

“Alchemy’s differentiated solution, industry expertise, talented employees and laser focus on its commitment to customers helped take this investment to the next level,” said Riverside Partner Brian Sauer. “We wish the management team and entire company much success as Alchemy continues to address frontline employee training and compliance needs in the large global markets they serve.”

Working with Schlachet and Sauer on the transaction for Riverside were Principal Stephen Rice, Senior Associate David Bao, Operating Partner Rex Niles and Finance Director Mike Rath. Jeremy Holland, Managing Partner of Origination, sourced the initial investment for Riverside.

Jones Day and Deloitte advised Riverside on the transaction. Houlihan Lokey led the sales process along with Vaquero Capital.