Riverside reaps 10x return on manufacturer exit

The firm has generated a 68% IRR on its investment in CLC, a Virginia-based manufacturer of window film, said partner Stephen Dyke.

The Riverside company has made a return of 10 times its investment in Commonwealth Laminating & Coating (CLC), a Virginia-based manufacturer of window film for automotive, residential and commercial markets. 
CLC's products are used for solar protection, aesthetics and security. The company’s senior management will remain in place following the acquisition. Financial details were not disclosed.

Stephen Dyke

Riverside invested an undisclosed amount in CLC in 2006 from the firm’s 2003 Riverside Capital Appreciation Fund, a $750 million fund that closed in 2004. The exit represents a 68 percent gross internal rate of return. RCAF 2003 still has 19 active investments.

“When we go into all of our investments we tend to think of that five to seven year period, and things just went very well at Commonwealth,” Stephen Dyke, a partner at Riverside, told PEO. “We felt like now’s the time to take it out to market.”

During the last four years, Riverside expanded CLC’s reach by investing in a new window film line and opening three new international distribution centers in China, Germany and the UK.

The deal marks the fifth exit for Riverside in 2010. Last month, the firm made a return of more than five times its investment in Veritext with the sale of the court reporting company to Investcorp’s private equity arm. Riverside has also remained active on the acquisition front. Last month, the firm completed its first investments in Spain and Turkey, purchasing Celvitae, a Spanish blood bank that preserves stem cells to potentially help treat illnesses, and Tropikal, a Turkish pet food maker.

Riverside’s “Capital Appreciation Funds” invest in North American-based platform companies with EBITDA ranging from $5 million to $15 million. The firm’s current portfolio of 73 companies worldwide employs approximately 14,000 people with combined sales of $3.1 billion and EBITDA of $476 million.