Audax Group has acquired Chase Industries, a manufacturer and distributor of specialty door systems, from Sentinel Capital Partners which acquired the company in December 2010.
Chase Industries (Chase Doors) is a manufacturer and distributor of customized doors that are used in a variety of industrial and commercial settings including corrosion resistant doors used for hazardous material handling; cold storage doors used in walk-in freezers and refrigerators; double impact traffic doors used in supermarkets and restaurants; and strip and roll-up doors used in warehouses. The company’s revenues are evenly distributed across new construction, remodeling and replacement, and maintenance. Chase Doors’ products are used in an array of end markets, including retail, industrial, pharmaceutical, food processing, distribution, postal and institutional. Company brands includes Chase™, Chem-Pruf™, ColdGuard™, Econo Max™, Eliason™, Fib-R-Dor™, Saino™, and Simon™. The company has over 300 employees and operates five manufacturing facilities. Chase Doors was founded in 1932 and is headquartered in Cincinnati (www.chasedoors.com).
“Chase Doors is a manufacturer of customized doors with an unparalleled reputation in the market. We look forward to partnering with Jeffrey Stark and the rest of the Chase team to grow the business organically and through strategic add-on acquisitions,” said Geoffrey Rehnert, Co-CEO of Audax Group.
The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. Audax has over $6 billion in assets under management in its private equity, mezzanine, and senior debt businesses. The firm was founded in 1999 and has offices in Boston and New York (www.audaxgroup.com).
“We are extremely pleased with our investment in Chase Doors,” said James Coady, a partner at Sentinel. “Working alongside Chase’s talented management team, we took an already-established market leader to the next level and also positioned it for continued growth.”
Sentinel Capital Partners invests in middle market companies in the United States and Canada in partnership with management. The firm invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of businesses with EBITDAs between $7 million and $40 million. Sentinel targets eight industry sectors: aerospace & defense, business services, consumer, distribution, food & restaurants, franchising, healthcare, and industrials. The firm is headquartered in New York (www.sentinelpartners.com).
Under Sentinel’s ownership, Chase Doors grew its business organically and through strategic acquisitions, allowing it to double revenue and increase EBITDA threefold. Chase Doors’ acquisitions of Chem-Pruf in 2011 and Eliason in 2012 expanded its product offering in corrosion-resistant doors and solidified its leadership position in the impact traffic door market.
“Sentinel was an excellent partner for Chase and its support and long-term perspective have positioned our company for the next phase of growth,” said Chase Doors’ CEO, Jeffrey Stark.
Golub Capital provided financing for the transaction (Golub Backs Audax Buy of Chase Doors). Houlihan Lokey and Kirkland & Ellis advised Chase. Ropes & Gray and Fredrikson & Byron served as counsel to Audax Group.
“We are excited to have Audax as our new partner,” said Mr. Stark. “The firm’s track record of sourcing and integrating add-on acquisitions will enhance our ability to grow, while continuing to build on our brand’s reputation of market-leading quality and value.”
2014 PEPD • Private Equity’s Leading News Magazine • 9-18-14
