Reaching the Next Level

LTI’s founders grew the business from a small regional manufacturer to a leader in the niche rubber and plastic component market. As LTI became larger and more complex, the founders sought a partner to help take the business to the next level by developing its management and systems infrastructure and pursuing acquisitions. Hundreds of small family-owned businesses manufacture rubber and plastic sealing components. Their customers are generally large multinational OEMs who increasingly are consolidating their vendor bases to simplify their supply chains. Sentinel recognized that this dynamic would pressure smaller, underdeveloped suppliers, creating the impetus for an industry consolidation that LTI, with its strong free cash flow profile, was well positioned to lead.

• To develop and implement the systems and management infrastructure to improve financial tracking and reporting and support a much larger company
• To help LTI diversify into new end markets through new product development
• To support LTI’s pursuit of growth through acquisitions

• Upgraded LTI’s Infrastructure: Sentinel assisted management in implementing a new IT and accounting system that helped create a robust financial reporting platform. After implementation, LTI’s monthly financial closing period was reduced from a month to less than five days, and management could easily track key financial metrics and business drivers. Sentinel also helped recruit additional management talent who were instrumental in helping transform the business.
• Executed Acquisition Strategy: With an upgraded infrastructure, LTI was able to play offense during the 2008–2009 recession. As one of the best capitalized businesses in its industry, LTI was well positioned to acquire competitors struggling with difficult market conditions. LTI completed three acquisitions during Sentinel’s ownership as part of an aggressive growth strategy. Two small tuck-in acquisitions broadened LTI’s geographic reach and added complementary products. The third acquisition was transformative. LTI acquired Boyd Corporation to form LTI Boyd, which more than doubled the size of the business and created the clear industry leader in the custom-engineered rubber and plastic sealing components market.

By 2012, LTI Boyd had integrated the acquisitions, grown revenue fivefold, and built a strong platform to support future growth. Sentinel sold LTI to another private equity firm in a management buyout, which was a highly successful transaction for Sentinel and its management partners.