#United States #River Associates #ID Label #Private Equity #Chattanooga

River Associates Acquires ID Label

River Associates Investments, based in Chattanooga, Tennessee, has completed the acquisition of ID Label, a prominent manufacturer in the variable information barcode label industry. This acquisition was finalized on November 15, 2024, marking a significant step for River Associates as it invests in growth potential within the lower middle market.

Founded in 1994 and located in Lake Villa, Illinois, ID Label is renowned for its comprehensive solutions in designing and manufacturing barcode labels and signage tailored for third-party logistics (3PL) providers and multi-site manufacturers. With a wide array of services ranging from design engineering to nationwide installation, ID Label caters to diverse sectors including warehousing, electronics, medical, and library services among others. Their commitment to providing efficient and accurate solutions has made them a trusted partner for thousands of global organizations striving for operational excellence.

Neil Johnston, the founder of ID Label, expressed his satisfaction with the acquisition process, stating, "Throughout this journey, River Associates has consistently been our top choice. I am thrilled that they recognize the value and potential of ID Label. This partnership will allow us to expand our capabilities and market reach while preserving the strong brand that we have developed over the last 30 years."

Ken Trent, Principal at River Associates, echoed this sentiment, stating, "We are excited to welcome ID Label into our portfolio. ID Label represents a robust platform for our eighth investment fund, River VIII, L.P. With a strong management team and a well-established brand, ID Label is poised for substantial growth in the coming years. We look forward to collaborating closely with their team to maintain and build upon their impressive track record."

The acquisition was funded through equity from River Associates' eighth investment fund, which has a total committed capital of $345 million. Mesirow Financial acted as the exclusive sell-side bank for this deal while financing was facilitated by NXT Capital. Legal advisories were provided by Holland & Knight, LLP for River Associates and Kilpatrick Townsend & Stockton, LLP for ID Label.

Looking ahead, River Associates and the management team at ID Label aim to explore strategically complementary acquisitions that will strengthen their market position and foster further growth. Interested parties who might have potential acquisition ideas are encouraged to reach out to Mark Jones for discussion.

About River Associates

With a legacy dating back to 1989, River Associates focuses primarily on the lower middle market, seeking to invest in privately held companies, private equity-backed firms, and divestitures from larger organizations. The firm has a flexible investment approach across various industries, targeting U.S. and Canadian companies typically exhibiting earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of $3-12 million. With over 120 transactions under its belt, River Associates remains a formidable player in private equity, continually aiming to support niche manufacturers and service providers in their growth journeys. To learn more about their investment strategies or past projects, visit www.riverassociates.com.