New York- and Cleveland, Ohio-based private equity firm The Riverside Company has sold aftermarket motorcycle parts company Dynojet Research to Philadelphia-based private equity firm Graham Partners.
Terms of the deal were not disclosed, though Riverside’s statement said the sale yielded a 3.7 times gross cash-on-cash return for the firm. The divesture is the second for the Riverside Capital Appreciation Fund ’98.
“It was an attractive time to take the company to market … We were really able to execute on our plan and deliver a decent cash return on our investment,” Riverside principal Karen Pajarillo said.
Riverside originally invested in Dynojet in August 2000 because of its leading market position in the niche industry of motorcycle aftermarket parts, Pajarillo said. Dynojet manufactures dynamometers, which are used to measure, record and diagnose accurate engine and drive train performance. The company also manufactures other aftermarket performance-enhancing parts and diagnostic tools for the motorsports and powersports industries.
The Riverside Company, which also has offices in Dallas and San Francisco, invest in the smaller end of the middle market. The firm manages approximately $1.3 billion in capital and earlier this month, 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. Also this month, the firm made its third deal of 2004 with the purchase of Northwest Economic Associates, a Vancouver, Washington-based provider of natural resources economic consulting services.