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| Client: |
ACT Laboratories, Inc. |
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| Acquirer: |
Bodycote International plc |
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| Situation: |
In January 1997, ACT was acquired by The Riverside Company. During Riverside’s ownership, ACT diversified into automotive components durability testing on parts. Riverside also purchased Automotive Testing Technologies Inc. in 1999, as an add-on to ACT’s components testing operation. The acquisition of ATTI gave ACT a presence in the Detroit area and a strategic position for the automotive components testing business. After many years of successful operation, Riverside decided to pursue an exit of the business in conjunction with the wind down of its 1995 Riverside Capital Appreciation Fund. |
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| Business: |
ACT, based in Wixom, Mich., is a preeminent full-service provider of outsourced product testing and related engineering services. The Company’s proprietary engineering techniques and testing methods allow its customers to maximize the quality, accuracy and speed of their research, development, quality and cost control programs. For more than 20 years, ACT has developed strong relationships with leading companies in the specialty chemicals, military and transportation industries.
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| Results: |
BGL was engaged by Riverside to conduct a global auction process. BGL approached a broad universe of strategic and financial buyers, targeting those potential buyers with an expressed interest in testing and engineering services. Throughout the transaction process, BGL was able to mitigate several significant issues, including: (i) several high profile customer bankruptcies; (ii) declining financial performance; and (iii) overall weakness of the domestic automotive industry. BGL was able to overcome these challenges by effectively communicating the considerable value of the Company’s position as a key research and development partner to its customers, ultimately resulting in a sale of the Company to Bodycote International plc of Macclesfield, U.K.
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