Capol GmbH

Country: Germany

Region: Schleswig-Holstein

Investors: The Riverside Company

When The Riverside Company invested in Capol in 2009, the German confectionery, agricultural and pharmaceuticals coatings business, which made glazings for products such as jelly beans, was run by a founder who was approaching retirement and unable to provide the time and resources to expand the company. Capol had significant knowhow and operated in a market with high barriers to entry, but had significant room to grow.

With Riverside’s support, over the next four years, Capol’s growth rate almost tripled and the company developed a significant international presence, including in the large U.S. and Chinese markets. With Capol perfectly positioned for further expansion, Riverside sold the business in 2013 to Freudenberg Chemical Specialities.

Dr. Matthias Seemann

Managing Director - Capol GmbH

Capol has come a long way under Riverside’s ownership. We are a truly global company that’s able to offer our outstanding products to customers anywhere. We’ve enjoyed working with the Riverside team, and it’s helped us make Capol a bigger and better company.

12%

annual sales growth

50%

increase in employment 2009-2013

What did the business need?

Professionalisation of management structure and business culture
Support to increase in international sales
Help to expand into new markets

How did private equity backing create lasting value?

Acquired a U.S. distributor to improve customer relationships and leverage sales
Provided access to Riverside’s Asian team and network to increase sales in China
Built a new dynamic management team while retaining the founder’s intellectual input in the new role of chairman
Invested in new product development
Improved quality control procedures