Corporate Carveouts

In 2013, Actuant Corporation, a $1.3 billion diversified industrial company, decided to divest its electrical division. Sentinel was selected as the buyer because of our proven record closing complex industrial carveouts, our longstanding relationship with the investment bank managing the sale, and the fact that we were management’s preferred partner. At closing, Sentinel and management renamed the business Power Products.

To partner with a talented and committed management team, firmly establish and restructure Power Products as a standalone business, and further optimize and grow its portfolio of market-leading brands, including through add-on acquisitions

Restructured and Refocused Business by Divesting or Winding Down Noncore Divisions: At the time of Sentinel’s investment, Power Products operated seven separate businesses, three of which we identified as noncore and candidates for divestment. In the next 15 months, Power Products sold two noncore divisions to a strategic buyer and restructured its money-losing solar division. These actions streamlined Power Products, improved its financial profile, and allowed management to focus on its core product offering.

Built Leading Marine Platform Through Acquisition: Having dramatically reduced its complexity, Power Products completed three highly strategic add-ons. At the outset, we targeted the marine market as a logical area for consolidation. Over the next several years, Power Products acquired Blue Sea Systems, Lenco Marine, and ProMariner, each of which is the leader in its marine market segment. Collectively, these acquisitions doubled the size of Power Products’ electrical marine business.

Enhanced Management Team: Shortly after closing, Sentinel recruited a CFO, rehired the former president of Power Products’ Gardner Bender division, and transitioned the president of a noncore division to lead Power Products’ Global Marine, Mobile, and Industrial business. These organizational changes strengthened Power Products’ deep bench of management talent and helped jumpstart growth. Sentinel implemented an option and coinvestment program to give our management partners, who had previously been working deep within a large public corporation, significant equity upside and align our interests.

During our three-year ownership, Power Products successfully transitioned to a standalone business, streamlined its portfolio of leading brands, and became a platform for acquisitions. Revenue, EBITDA, and cash flow grew significantly, and Power Products exceeded the objectives we established at the outset of our investment. In 2016, Power Products was sold to another private equity firm in a management buyout transaction.