Riverside returns 5.6x cash in DHD sale

The New York and Cleveland-based firm has sold respiratory company DHD Healthcare to Smiths Group for $55 million.

The Riverside Company has sold respiratory specialist DHD Healthcare to Smiths Group for $55 million (€45 million).

According to a press statement, the New York- and Cleveland, Ohio-based firm has achieved a 63.6 percent gross IRR and 5.6 times gross cash-on-cash return.

Riverside originally acquired Wampsville, New York-based DHD in February 2001 through its Riverside Capital Appreciation Fund 2000. The company develops, manufactures and markets disposable devices for respiratory therapy.

Riverside partner Andrew Strauss led the transaction, in which Harris Williams & Co advised DHD and Riverside.

In February, Riverside sold aftermarket motorcycle parts company Dynojet Research to Philadelphia-based private equity firm Graham Partners. Riverside said the sale yielded a 3.7 times gross cash-on-cash return. Earlier that same month, the firm closed a $750 million (€590 million) fund, The Riverside Capital Appreciation Fund ’03, after launching the fund in late June 2003 with a target of $600 million.