M&A Deal Summary

The Riverside Company Acquires LMG Holdings

On February 4, 2020, private equity firm The Riverside Company acquired safety/security company LMG Holdings from Northstar Capital and Lineage Capital

Acquisition Highlights
  • This is The Riverside Company’s 8th transaction in the Safety/Security sector.
  • This is The Riverside Company’s 173rd transaction in the United States.
  • This is The Riverside Company’s 15th transaction in Ohio.

M&A Deal Summary

Date 2020-02-04
Target LMG Holdings
Sector Safety/Security
Buyer(s) The Riverside Company
Sellers(s) Northstar Capital
Lineage Capital
Deal Type Secondary Buyout

Target

LMG Holdings

Blue Ash, Ohio, United States
LMG Holdings is a provider of ignition interlock devices (IIDs) used to help prevent drunk driving. LMG operates three market-leading brands: LifeSafer, Monitech and Guardian, and serves clients and monitoring agencies in the U.S. and Canada through its network of more than 1,500 authorized service centers. LMG Holdings was founded in 1991 and is based in Blue Ash, Ohio.

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Buyer(S) 1

Buyer

The Riverside Company

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1988
PE ASSETS 5.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Riverside Company is a global private equity firm that seeks investments in profitable lower middle-market companies valued under $400 million. Riverside looks to invest in growth businesses headquartered in North America, Europe, and Asia (primarily Japan and South Korea), that have been in operation for at least five years. Riverside targets investments in a wide array of industries including distribution, automotive, healthcare, education, manufacturing, software, consumer services, plastics, publishing, food, communications, marine, and business services. Riverside was formed in 1988 and is based in New York City.


DEAL STATS #
Overall 251 of 283
Sector (Safety/Security) 8 of 8
Type (Secondary Buyout) 39 of 46
State (Ohio) 15 of 18
Country (United States) 173 of 195
Year (2020) 1 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-01-06 DCM Asia

Selangor Darul Ehsan, Malaysia

DCM Asia is a value-added specialty chemical distributor. Based near Kuala Lumpur, DCM Asia enjoys long-lasting distribution relationships with more than 50 international chemical companies. The company serves more than 600 customers by selling a portfolio of 700 high-quality branded products.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-03-04 Red Nucleus

Yardley, Pennsylvania, United States

Red Nucleus provides strategic learning and performance solutions exclusively for the life sciences industry. Red Nucleus Enterprises was founded in 1991 and is based in Yardley, Pennsylvania.

Buy -

Seller(S) 2

SELLER

Northstar Capital

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1993
PE ASSETS 1.7B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Northstar Capital is a mezzanine finance firm that provides junior capital to middle-market companies operating in the value-added distribution, light manufacturing, business services, financial services, education, and specialty healthcare sectors. Northstar's typical investment size is $5 to $30 million in businesses generating sales of $20 to $300 million with an EBITDA of at least $3 million. Prospective companies have stable cash flows and sustainable margins. Investments typically have maturities of five to eight years. Northstar does not invest in start-ups, real estate development, natural resource exploration, or high technology companies. Northstar Capital was formed in 1993 and is based in Minneapolis, Minnesota.


DEAL STATS #
Overall 53 of 80
Sector (Safety/Security) 1 of 1
Type (Secondary Buyout) 19 of 26
State (Ohio) 1 of 2
Country (United States) 51 of 76
Year (2020) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-12-12 JMH Premium

Salt Lake City, Utah, United States

JMH International LLC develops and manufactures a broad range of soup bases, sweet and savory flavor bases, stock concentrates, sauces, gravy mixes, dessert preparations, seasoning blends, powdered drink mixes, and dry complete meals. The Company, a leader in developing food flavoring systems, provides custom formulations and culinary solutions to the food industry, selling to customers in the foodservice, ingredient, specialty retail and co-manufacturing channels. JMH International was founded in 1982 and is based in Salt Lake City, Utah.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-03-03 Vectorply

Phenix City, Alabama, United States

Vectorply is a developer and manufacturer of high-performance reinforcement fabrics used in composite materials. Vectorply produces a broad range of non-crimp fabrics for use in wind power, industrial, marine, sports/recreation and transportation applications. Approximately 83% of the Company’s sales are derived from fabrics made of glass fibers, with the remainder divided between carbon and aramid fibers. Vectorply’s products provide superior materials solutions when compared to traditional materials (such as steel, wood and concrete) and to earlier generations of woven composite reinforcement fabrics.

Sell $155M
SELLER

Lineage Capital

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2003
PE ASSETS 160M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Lineage Capital is a private investment firm focused on acquiring interests in family-controlled and owner-managed middle-market businesses. The Firm targets businesses with EBITDA of $4 million or greater. Lineage looks for control or minority investment situations and will consider opportunities throughout North America. Lineage Capital was formed in 2003 and is based in Boston, Massachusetts.


DEAL STATS #
Overall 9 of 10
Sector (Safety/Security) 1 of 1
Type (Secondary Buyout) 6 of 6
State (Ohio) 1 of 1
Country (United States) 9 of 10
Year (2020) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-01-31 Flightcheck Commercial Aviation Services

Bensenville, Illinois, United States

Flightcheck Commercial Aviation Services provides line maintenance, deicing, and ground handling services for domestic and international cargo and commercial airlines. Flightcheck Commercial Aviation Services was founded in 2004 and is based in Bensenville, Illinois.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-04-14 Citi Rise Safety

Lodi, California, United States

Citi Rise Safety is a provider of traffic support services, including flagging, lane closures, and detours for worksites and civil infrastructure projects. Citi Rise Safety was founded in 1988 and is based in Lodi, California.

Buy -