AIA Shifts Financing Partners

Financial Terms Of Deal Not Disclosed

AIA CorporationAs first reported in a Breaking News alert on Tuesday, AIA Corporation (asi/109480) announced this week that it has completed a recapitalization of the company with private equity partner The Riverside Company, selling its interest in AIA and being replaced as the company's main investor by McNally Capital of Chicago. Financial terms of the deal were not disclosed, but AIA CEO David Woods told Counselor that the transaction will result in no management or strategy changes for AIA.

"We have had a great eight year experience with Riverside," said Woods. "We welcome McNally Capital of Chicago as our new private equity partner, and we look forward to a bright future of growth and success with the resources they bring to AIA."

The Riverside Company, based in Cleveland, OH, first invested in AIA in 2005 when it purchased the company from fellow Top 40 distributor 4imprint (asi/197045). "[Riverside's] business model typically anticipates a holding period of five to seven years," Woods said, "so it is normal for them to exit now."

In the financing transaction, AIA was represented by Cleary Gull Inc., a Milwaukee-based Investment Bank. AIA currently ranks as the 10th-largest distributor in the industry, after reporting 2012 North American ad specialty sales of $136 million, a 7.1% increase over the previous year. The company has grown its revenues by 15.3% in the past five years.