Completing Transformative Acquisitions

ECM was previously owned by another private equity firm that acquired the business from Sentinel in 2016 as part of its acquisition of Power Products, ECM’s former parent. Power Products consisted of three divisions, of which ECM was one. In 2018, the other two divisions were sold to a strategic buyer, leaving ECM as a standalone business. After completing several tuck-in acquisitions, the prior owner launched a sale process for ECM. Sentinel was selected because of our strong relationship with ECM’s management team, our successful prior experience with them, and the sellers’ confidence that we would close the transaction quickly and on the agreed terms.

During the process of acquiring ECM, we identified ILSCO Corporation, a leading manufacturer and distributor of electrical connectors and accessories, as a potential transformative acquisition opportunity.

Founded in 1894, family-owned ILSCO built the premier electrical brand in the professional and distribution channel and successfully served the OEM channel for more than 40 years. ILSCO’s market position was highly complementary with ECM’s, which diversified ECM from a channel and product perspective. ILSCO also brought to ECM in-house manufacturing capabilities and external sales of aluminum extrusions, creating a tremendous opportunity for further growth. In April 2020, four months after acquiring ECM, we closed the ILSCO acquisition and spent the next two years integrating the two highly complementary businesses and achieving the revenue and operational value creation targets we established at the outset.

Diversified Channels and Products: ILSCO’s products primarily serve the distribution channel and are specifically targeted at professional users. The acquisition provided ECM with a product portfolio that it did not previously carry, creating meaningful opportunities for cross-selling and new product development. ILSCO also gave ECM an entrée into the OEM end market. ILSCO’s leadership position in the OEM channel provided a “brand halo” for ECM’s products and positioned both companies as suppliers of choice across all channels for customers who place a premium on quality and reliability.

Implemented Integration and Operational Best Practices: The ILSCO acquisition significantly expanded ECM’s operational footprint and provided in-house manufacturing capabilities for aluminum extrusions and connection and termination products. Following the acquisition, ECM consolidated several of ILSCO’s manufacturing and distribution facilities, which provided meaningful cost savings.

Positioned for Post-Covid Rebound: Having successfully combined the businesses during the challenging Covid period, ECM was primed to thrive as businesses rebounded from the pandemic and demand accelerated. At the time of Sentinel’s exit, ILSCO’s EBITDA more than tripled and EBITDA margins more than doubled.

After just over three years of ownership, Sentinel and management had successfully integrated the ILSCO acquisition, increased revenue more than threefold, increased EBITDA nearly fourfold, and exceeded the growth objectives we established at the outset. In 2023, Sentinel sold ECM to nVent Electric plc (NYSE:NVT) in a successful transaction for Sentinel and our management partners.