Reaching the Next Level
Engineered Controls (“ECI”) is the leading global provider of highly engineered, mission-critical flow control products used in the transportation, delivery, and storage of LPG, LNG, and other cryogenic gases. ECI serves a large global customer base that includes distributors and OEMs in more than 85 countries.
Background
Sentinel acquired ECI from a prominent family who, for several years, was uninvolved in the day-to-day operation of the business. Management, who had run the business for more than 25 years but did not own any equity, was looking for a partner to help transition ECI to its next phase of growth.
Opportunity
- To acquire the industry leader with a well-established brand and a defensible market position
- To purchase a business with a long history of success and steady growth
- To partner with a deep, experienced, and committed management team that had not had the opportunity to own equity
Accomplishments
Completed a Smooth Transition to New Ownership: Management had spent most of their careers working in a family-owned business. We worked closely together to ensure a smooth transition to new ownership. Sentinel also implemented an option and coinvestment program that provided our management partners with significant equity upside and aligned incentives.
Positioned the Business for Growth: We worked together with management to position ECI for growth by expanding its manufacturing footprint in North Carolina and increasing its focus on LNG, particularly the fast-growing China market.
Outcome
During Sentinel’s ownership, ECI built a strong foundation for growth, expanded into new markets and geographies, and grew its EBITDA by more than 50%. In December 2013, ECI was sold to another private equity firm in a management buyout, which was highly successful for Sentinel and its management partners, who continued with the company.
Case studies have been selected for illustrative purposes for management teams of midmarket companies considering a partnership with Sentinel and should not be considered an offer or solicitation of services or an actual or implied endorsement of Sentinel or any security, investment, or portfolio company. The portfolio companies highlighted are not representative of all current and prior investments of Sentinel. A list and description of investments since Sentinel’s inception is available on this website.