Sentinel Capital Partners has sold ECM Industries to nVent Electric for $1.1 billion. Sentinel acquired ECM in February 2020.
ECM is a manufacturer and supplier of electrical products and maintains an inventory of more than 5,000 SKUs that are used in the construction, maintenance, lighting, irrigation, landscape supply, and gas utility markets. Customers of ECM include distributors, specialty hardware stores, and home centers and its products are used by professional electricians, contractors, maintenance technicians, and do-it-yourselfers.
ECM goes to market under 11 brand names including Gardner Bender (electrical products and tools); King Innovation (harsh environment connectors); Bergen (construction and maintenance lighting); Sperry Instruments (multimeters and electrical test equipment); Calterm (automotive connectors and switches), ILSCO (power connectors and tools), and Briscon (electrical staples for cable installations).
In May 2020, ECM acquired ILSCO, a Cincinnati-headquartered manufacturer of electrical connectors and accessories with more than 1,000 employees. The company’s businesses included Surge Suppression, ILSCO Extrusions, ILSCO of Canada, UTILCO, Glenmoor, and FTZ Industries. ILSCO was founded in 1894 as the Incandescent Light and Stove Co. and was a third-generation, family-owned business.
Today, ECM is led by CEO Mike Masino and is headquartered just west of Milwaukee in New Berlin, Wisconsin.
“Sentinel has been an excellent partner over the past three and a half years,” said Mr. Masino. “With Sentinel’s support, we completed the transformational acquisition of ILSCO, expanded ECM’s product offering and significantly diversified our business. We are well positioned for continued success with our new partner.”
For the twelve months ending in February 2023, ECM had revenues of $415 million and $104 million of Adjusted EBITDA. Based on the $1.1 billion purchase price, this equates to a 10.6X TTM valuation multiple.
“It has been a privilege to work with Mike and the rest of the ECM management team for the second time after our successful previous investment in Power Products,” said John Van Sickle, a partner at Sentinel. “ECM has performed exceedingly well during our partnership, and we believe it has a bright future ahead. All of us at Sentinel wish our management team partners at ECM continued success.”
Sentinel Capital sold Power Products, a supplier and manufacturer of branded aftermarket electrical systems and components, to Genstar in March 2017. Sentinel acquired the business, then the electrical segment of publicly traded Actuant, in December 2013.
nVent, the buyer of ECM, is a provider of enclosures, electrical connections, fastening and thermal management products sold under a range of brands including nVent Caddy, Erico, Hoffman, Raychem, Schroff and Tracer. The company’s products are sold to electrical distributors, data center contractors, original equipment manufacturers, and maintenance contractors.
“I am excited to welcome the ECM team to nVent,” said Beth Wozniak, the CEO of nVent. “ECM’s complementary electrical power connection and grounding solutions portfolio further positions nVent with the electrification of everything. The addition of ECM is exciting, and we are confident it will deliver significant value for our customers, employees and shareholders.”
nVent was founded in 1903 as the Electric Railway Improvement Company and today is headquartered in London with a Minneapolis-based US management office.
New York City-based Sentinel invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of businesses with EBITDAs up to $65 million. The firm targets eight industry sectors: aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrials.
© 2023 Private Equity Professional | May 26, 2023
Aerospace and defense investor Avem Partners has acquired Astech Engineered Products, a designer and manufacturer of aerostructures.
360training, a portfolio company of Vestar Capital Partners and GreyLion Partners, has closed two add-on acquisitions with the buys of ACLS Medical Training and Safety Provisions.
The buys of ACLS and Safety Provisions is part of 360training’s strategic growth plan to diversify and expand its course offerings to more learners. “We are excited to welcome ACLS and Safety Provisions to the 360training family,” said Mr. Anderson. “Their expertise in workplace safety and medical training complements our existing offerings and strengthens our position as a leading provider of online training solutions.”
Godspeed Capital has held a final and oversubscribed close of Godspeed Capital Investment Program II LP (Fund II) with $250 million in capital commitments.
“We are proud to partner with these leading institutional investors and are grateful for the confidence they have placed in our team as we execute our strategy of collaborating with founders, entrepreneurs, and management teams across the defense and government services sectors,” said Douglas Lake Jr., the founder and managing partner of Godspeed. “We are thrilled with our initial investments and look forward to continuing to execute our strategy on behalf of our investors and partners and to growing our portfolio of leading companies.”