Riverside exits German pump company

The sale of Richter Chemie-Technik is the second exit from Riverside’s €320m third fund.

The Riverside Company has sold Richter Chemie-Technik, a German manufacturer of pumps and valves for the chemical and pharmaceutical industries, to US company IDEX for an undisclosed sum.

Riverside paid an undisclosed amount to purchase Richter Chemie-Technik in March 2006.

Good quality companies still command a very good price

Tony Cabral

This is the second exit for Riverside’s third European Fund, REF III, which closed on closed on €320 million in August 2007. The first was another German industrials deal, the automotive and aerospace engineering consultant IndustrieHansa, which completed in August.

Also in August, PEO reported that Riverside intended to go to market before year’s end for its fourth European fund targeting up to €550 million. The firm declined to comment on fundraising.

Riverside has made 19 acquisitions in 2008, eight of which were made from REF III.

Tony Cabral, Riverside Europe's managing partner, does not expect the firm’s deal pace to slow.

“On the contrary we see many interesting opportunities arising in the distressed and turnaround areas,” he said. “We have done a number of these types of deals. If a company fits our criteria, we have the operational managers to turn it around.”

Commenting on pricing in the mid-market, Cabral said: “Prices have dropped in general, but good quality companies still command a very good price.”