Sentinel Capital Partners has sold Power Products, a supplier and manufacturer of branded aftermarket electrical systems and components, to Genstar Capital. Sentinel acquired Power Products, the electrical segment of publicly-traded Actuant Corporation, in December 2013.
Power Products designs, manufactures and distributes a range of electrical products that are used in a variety of aftermarket and OEM applications including electrical construction and maintenance, recreational marine and specialty vehicles, industrial power, and transportation. The company’s products (totaling more than 25,000 SKUs) include harsh-environment power management and conversion products; wire and cable management accessories; and test and measurement devices, switches, and tools. Company owned brand names include Del City, Gardner Bender, Sperry Instruments, Lenco Marine, Marinco, Mastervolt, ProMariner, BEP, and Blue Sea Systems.
“We are very proud of what was accomplished in partnership with Power Products’ incredibly talented management team,” said Eric Bommer, a Partner at Sentinel. “Following the carveout of Power Products from Actuant Corporation in 2013, together with management, we were able to create a robust, standalone business, refocus it strategically through several acquisitions and divestitures, and reduce its overall complexity. Power Products has excelled over the past three years, and we are confident they will continue to succeed under the leadership of existing management.”
Sentinel Capital Partners invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of businesses with EBITDAs up to $65 million. Sentinel targets eight industry sectors: aerospace & defense, business services, consumer, distribution, food & restaurants, franchising, healthcare services, and industrials. The firm is headquartered in New York (www.sentinelpartners.com).
Genstar intends to continue the growth of the Power Product business through the introduction of new products, expansion into new markets, and the pursuit of add-on acquisitions. “We see major growth opportunities to optimize Power Products’ brands, reputation, and technology,” said Rob Rutledge, a Managing Director at Genstar. “Power Products is a strong and growing company and we look forward to investments that will further expand its core segments, including entering new channels, expanding into new product arenas, and pursuing adjacent market opportunities. With Genstar’s industrial technology expertise and financial support, Power Products is positioned as the consolidator of choice in a fragmented industry.”
Power Products, led by CEO David Scheer, is headquartered in Menomonee Falls, WI with five additional locations in the US, and international operations in China, The Netherlands, New Zealand, and Mexico (www.powerprodllc.com). “Genstar has a history of building industrial companies like ours, and we are impressed by their understanding of our sophisticated global operating platform and footprint,” said Mr. Scheer. “We share a similar excitement and vision about our future and feel strongly that Genstar is the right partner to support us with our strategic growth initiatives.”
Genstar, which had a final close in August 2015 of its seventh fund with $2 billion in commitments, invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million. Genstar targets investments in the financial services, software, industrial technology, and healthcare industries. The firm was founded in 1988 and is based in San Francisco (www.gencap.com).
© 2017 Private Equity Professional | March 10, 2017
