Blue Sea Sells NSi to Odyssey

Blue Sea Capital has sold NSi Industries, an electrical components distributor, to Odyssey Investment Partners.

NSi is a supplier of more than 4,000 SKUs of electrical connectors, fittings, control and wire management products for used in construction, maintenance and repair applications. Company-owned brands include Polaris insulated connectors; Bridgeport bushings, seals and connectors; TORK switches, timers and photocontrol products; and Platinum Tools connectors and tools.NSi is led by CEO G.R. Schrotenboer and is headquartered near Charlotte in Huntersville, North Carolina, with additional facilities in Stratford, Connecticut and Newbury Park, California.

“We are very pleased to have partnered with Blue Sea Capital over the past four years. Together, we expanded our business through both organic growth initiatives, as well as the synergistic acquisitions of Platinum Tools, Bridgeport Fittings, and SullStar Technologies,” said Mr. Schrotenboer. NSI acquired California-based Platinum Tools in March 2019; acquired Connecticut-based Bridgeport Fittings in August 2019; and acquired California-based SullStar Technologies in November 2019. “Blue Sea Capital’s support of NSi and its management team enabled us to triple our business in under a four-year period and significantly expand the portfolio of products we offer our customers,” added Mr. Schrotenboer.

Blue Sea acquired NSi in May 2016 in partnership with Axel Rasmussen, the founder of NSi. “NSi is an excellent example of the Blue Sea Capital value creation playbook in action,” said Andy Boswell, a partner at Blue Sea. “We were initially attracted to NSi because of its unique business model and a dynamic consolidation opportunity within a desirable segment of the electrical distribution channel. Next, we recruited and incentivized a very talented, growth-oriented management team. Subsequently, over our nearly four-year ownership period, we made investments in numerous organic growth initiatives as well as three strategic add-on acquisitions. We have truly enjoyed our partnership with the entire NSi management team, and we wish them, the company, and Odyssey much continued success.”

The NSi management team, including Mr. Schrotenboer and COO David Di Donato, have invested significantly in the new transaction and will continue to lead the company under Odyssey’s ownership.

“We are excited to acquire NSi Industries with the company’s management team,” said Jason Cowett, a managing principal at Odyssey. “NSi has established a strong, incumbent market position and a comprehensive offering of stock and flow products in a large, fragmented industry. We look forward to collaborating with G.R., Dave and their team to capitalize on NSi’s many attractive and diverse growth opportunities to build value for all of its stakeholders.”

Odyssey makes control investments in middle-market companies that have from $20 million to $100 million of EBITDA. Sectors of interest include industrial and business services. Within the firm’s target sectors, areas of specific focus include aerospace, defense, insurance services, safety & testing, automated equipment & components, industrial services, equipment rental, pharma services, energy services and packaging.

Last month, Odyssey held a first and final hard cap closing of Odyssey Investment Partners Fund VI LP (Fund VI) with $3.25 billion of capital. Fund VI was oversubscribed and was supported by both existing investors and new institutional investors.

“G.R. Schrotenboer, founder Axel Rasmussen, and NSi’s senior management team have been fantastic partners. We are very pleased with the outcome of our investment in NSi and the value that has been created for NSi’s employees and Blue Sea Capital’s limited partners. We have deep respect for Odyssey, and we know that they are the right financial sponsor for this next stage of NSi’s growth,” said Rick Wandoff, a managing partner at Blue Sea.

West Palm Beach, Florida-based Blue Sea invests in companies that have up to $30 million of EBITDA and enterprise values of no more than $200 million. Sectors of interest include aerospace & defense, healthcare and industrial growth.

Harris Williams was the financial advisor to NSi.

© 2020 Private Equity Professional | March 3, 2020

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