Toronto-based shopper marketing firm Pareto is set to be acquired by private equity firm The Riverside Company in a deal worth approximately $108 million.
Following an announcement from the agency last week saying it was in talks with Riverside, based in Cleveland, Ohio, a group representing 72% of Pareto’s outstanding shares—including 12 of its senior managers and members of its board of directors—have agreed to vote in favour of the transaction. No date has been announced for a full shareholder vote.
“This is an exciting day for the employees and shareholders of Pareto,” said Kerry Shapansky, Pareto’s president and CEO, in a statement. “Our entire team will remain in place and continue to be committed to delivering leading-edge shopper marketing solutions to our clients. We have worked diligently to establish Pareto as Canada’s leading shopper marketing company and believe that the growth capital and support to be provided by Riverside will play a key role in facilitating our future growth initiatives.”
“We see tremendous potential in Pareto and are excited to announce this offer to acquire the company,” said Kristin Newhall, a Riverside partner. “Pareto’s strategic market position in shopper marketing solutions spans both traditional and innovative platforms. We expect the proposed acquisition of Pareto by Riverside to be beneficial to both parties and generate strong results.”
