Nautic Partners has sold its portfolio company Endries International, a distributor of fasteners, to MSD Partners. Nautic acquired Endries in June 2017 from Ferguson Enterprises.
Endries International is a distributor of fasteners and Class-C parts to industrial original equipment manufacturers worldwide. The company has more than $325 million in annual revenues and provides over 500,000 SKUs to its customers that operate across a range of end markets including agriculture equipment, all-terrain vehicles, foodservice equipment, furniture, general machinery, healthcare, HVAC, industrial controls, and lawn & garden equipment.
Endries operates primarily through a vendor managed inventory model that supports replenishment systems to provide products and support services that are critical to maintaining the customer’s manufacturing process. Endries, led by CEO Steve Endries, was founded in 1970 and is headquartered in Brillion, WI (south of Green Bay) and has eight US and international distribution centers (www.endries.com).
During Nautic’s ownership term, Endries completed a number of add-on acquisitions including the April 2018 buy of Branam Fastening Systems, a North Ridgeville, OH-based distributor of fasteners, and the September 2018 buy of Legacy Fastener & Supply, a Fort Worth, TX-based distributor of fasteners.
“Endries experienced very strong growth both organically and via a number of quality acquisitions completed and integrated during our investment period,” said Sean Wieland, a vice president of Nautic. “We are confident that the company will continue to execute its growth strategy in partnership with MSD Partners.”
MSD Partners invests across a range of asset classes. For direct investments in operating companies, the firm looks to invest at least $100 million in business that have enterprise values of $200 million to $1 billion or more and EBITDA in excess of $25 million. Industries of interest include business and tech-enabled services, light industrial and industrial services, value-added distribution, healthcare services, media and entertainment, and consumer products. MSD Partners was formed in 2009 by the principals of MSD Capital, a family office formed to manage the capital of Michael Dell and his family. MSD Partners is headquartered in New York with an additional office in London (www.msdpartners.com).
Nautic Partners is a middle-market private equity firm with over $2.5 billion of equity capital under management. Nautic targets majority equity investments of $25 million to $75 million. Sectors of interest include business services, manufacturing, and healthcare. The firm was founded in 1986 and is headquartered in Providence, RI (www.nautic.com).
“We enjoyed working with the Nautic team and pursuing strategic acquisitions,” said Matt Vechart, Senior Vice President and CFO of Endries. “We look forward to the next chapter for Endries and working with MSD Partners.”
The commercial and industrial group of BB&T Capital Markets (www.bbtcapitalmarkets.com) was the financial advisor to both Endries and Nautic on this transaction.
© 2018 Private Equity Professional | December 12, 2018
