River Associates Investments, a lower middle market private equity firm based in Chattanooga, TN, USA, has announced the acquisition of ID Label, Inc. The transaction closed on November 15, 2024.

Founded in 1994 and based in Lake Villa, IL, USA, ID Label is a manufacturer of variable information barcode labels and warehouse signage for 3PLs and multi-site manufacturers. The company provides design engineering, production, signage and nationwide installation services for warehousing, supply chain, manufacturing, electronics, calibration, medical, laboratory, lumber and library end markets. ID Label’s solutions are used by thousands of global organizations to keep businesses moving with efficiency, speed and accuracy.

“Throughout the process, River Associates consistently emerged as our top choice,” comments Neil Johnston, founder of ID Label. “I’m thrilled they saw ID Label’s value and growth potential. We will expand our capabilities and market reach, allowing us to better serve our customers. Most importantly, we will maintain our strong ID Label brand, preserving the quality and reputation we’ve built over the past 30 years.”

“We are excited to welcome ID Label to our portfolio,” says Ken Trent, principal at River Associates. “ID Label is an excellent platform for River’s fund VIII. ID Label comes with a strong existing management team, an industry leading brand, and a pristine facility with ample capacity to achieve solid growth for the foreseeable future. We look forward to partnering with the management team and supporting the company as it continues to build on its impressive track record of success.”

River Associates funded the transaction with equity from its eighth investment fund (River VIII, L.P.). Blake Lewis and Ken Trent, Principals, led the process for River Associates. Mesirow Financial, Inc. served as the exclusive sell-side banker for the transaction. Financing was provided by NXT Capital. River Associates was advised by Holland & Knight, LLP. ID Label was advised by Kilpatrick Townsend & Stockton, LLP.

“Mesirow showed exemplary guidance and a deep understanding of the labels, packaging and business services space, and they utilized their relationships in the industry to identify the ideal partner for our business,” adds Johnston.

Melanie Yermack, managing director and co-head of packaging, remarks, “We continue to see strong interest in the label sector. ID Label is an exceptional label platform. We believe River Associates is an ideal strategic partner, committed to furthering the Company’s long-term growth objectives.”

As with all platform company investments, River Associates and the ID Label management team will seek complementary strategic add-on acquisitions.