The Riverside Company, a global private equity firm focused on making control and non-control investments in firms valued at under $200 million, has exited its Malaysia investment with the sale of specialty chemical distributor DCM Asia to Dutch firm Caldic.
Financial details of the acquisition were not disclosed but Caidic said in a statement that the deal underlines its ambition to become a leading specialty chemical provider in Southeast Asia.
Riverside, which made the first close of its new Asia Pacific vehicle at about $103 million in June last year, acquired DCM Asia in 2014, with plans to grow the firm both organically and through selected add-on acquisitions.
Founded in 1987 and headquartered in Shah Alam Malaysia, DCM Asia distributes specialty chemicals to adhesives and sealants, coatings, household products, personal care, plastics, rubber, and water treatment markets. It claims to have over 1,000 customers in Malaysia and Southeast Asia.
“The acquisition of DCM Asia will further strengthen our position in the Asia Pacific region,” said Wilco Langschmidt, CEO at Caldic Asia-Pacific.
Caldic, headquartered in Rotterdam, Netherlands, is a full-service distributor engaged in the production and distribution of solutions in industrial, health and personal care, and food markets.
DCM Asia CEO Deek Sern Lee said Caldic’s full-service specialty strategy “perfectly reflects” the company’s vision for the future.
“It means both our customers and employees will benefit from Calico’s global network and capabilities,” he added.
The deal marks Riverside’s exit of one of its few remaining Asia Pacific investments outside Australia even as it is raising a $244-million fund, Riverside Australia Fund III, which made a first close at $103 million in June.
Riverside Australia Fund III is a successor to Riverside Asia-Pacific Fund II, which hit a final close in May 2014 at $235 million. Its latest fund – RAC II Opportunity Fund – closed at $29.4 million in May this year, while its biggest fund to date, the Riverside Micro-Cap Fund V, closed at $1.2 billion.
Since its founding in 1988, Riverside has made more than 600 investments. The firm’s international private equity and structured capital portfolios include more than 90 companies.
Last year, the PE firm disposed of two of its portfolio companies, Melbourne-based rehab specialist Work Health Group and New Zealand’s animal health pharmaceuticals delivery device firm Simcro.