Riverside secures exits in New Zealand, Australia
The Riverside Company has sold New Zealand-based animal health devices manufacturer Simcro, along with Work Health Group, an occupational rehabilitation services provider in Australia.
These transactions take the private equity firm’s total number of exits in Asia Pacific to eight, while Simcro represents the first sale of a New Zealand business. Both companies fit Riverside’s platform profile, with several bolt-on acquisitions after the initial investments.
Simcro, which has been sold to Switzerland's Datamars, produces applicators and injectors that make it easier to administer vaccines and other medications to animals. The company came to Riverside’s attention when Will Rouse, who had become principal shareholder and CEO in 2007, was looking for partners to support further growth, specifically through overseas expansion and M&A.
The private equity firm took a controlling stake in 2013 and claims to have tripled EBITDA during its holding period. A global sales and marketing team was established, with new offices opened in the US, Asia, and Latin America to complement the existing New Zealand, Australia, and Europe footprint. Simcro also acquired ISL Animal Health and NJ Phillips, boosting both its scale and product portfolio.
Rouse, now the executive chairman, said in a statement that the team was always confident Simcro had the potential to expand. However, with Riverside on board, it "was able to accelerate its growth expansion into new geographies and new animal segments, whilst maintaining the core quality and service standards that set us apart in the industry.”
Melbourne-based World Health Group originated from Riverside’s purchase of IPAR Rehabilitation, a specialist in injury prevention and management and rehabilitation services that minimize the impact of workplace injury and illness, in 2015. It was renamed and rebranded the following year with the acquisition of WorkFocus Group.
The company provides rehabilitation programs for employees and injury prevention programs for employers. It operates under five brands in more than 80 locations – up from the 41 IPAR had when Riverside invested – and revenue and EBITDA have risen 220% and 250%, respectively. The private equity firm did not disclose the identity of the buyer.
The two exits follow that of Australia-based online compliance specialist Learning Seat in December 2017. All three investments came from Riverside’s Asia Pacific Fund II, which closed at $235 million in 2012 and targets companies with enterprise values of $25-150 million.
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