Riverside buys US alcohol monitoring firm

The global private equity investor has taken a minority stake in Colorado-based Alcohol Monitoring Systems

The Riverside Company has acquired a minority interest in Colorado’s Alcohol Monitoring Systems (AMS) for an undisclosed sum, according to a statement.

Founded in 1997, the business provides electronic monitoring technologies used by state and local criminal justice agencies in the US to monitor and manage alcohol and criminal offenders. Its products include alcohol and GPS monitoring bracelets, as well as remote breathalyzers.

“Given that jails suffer from overcrowding, and there is a high daily cost to incarcerate, solutions for non-violent offenders will become increasingly attractive,” Riverside Partner Michael Kessler said in a statement.

“AMS offers safe and effective devices and monitoring solutions that provide substantial savings when compared to incarceration,” he added.

The US legal system processes hundreds of thousands of non-violent offenders annually who are ideally suited for electronic monitoring, according to the firm. AMS has been growing steadily as courts and state and local corrections departments recognise the effectiveness and cost-saving benefits of alternatives to incarceration.

Riverside intends to support the AMS management’s goal to continue to grow and innovate new technology, as well as assist the company in exploring strategic acquisitions that add customers and complementary technologies.

The firm has been successful in helping US companies close bolt-on acquisitions to provide further growth.

In October, Riverside portfolio company Pennsylvania-based H-D Advanced Manufacturing, made its fifth platform acquisition with the purchase of Crown Precision Machining. The California-based target company provides high-precision machining services to manufacturers in commercial aerospace and defense.

Other recent platform acquisitions for H-D include Overton Chicago Gear Corporation, a gearbox manufacturer; Innovative Mechanical Solutions a custom bearings manufacturer; Leading Edge Heat Treating Services, a provider of heat treating solutions, and Sungear, a provider of precision gears and assemblies for the aerospace industry.