Repositioning Businesses
North American Rescue (“NAR”) is the leading developer and distributor of tactical emergency medical equipment to the U.S. military, foreign militaries, and civilian first responders. NAR’s equipment, which is used by armed forces medical personnel, first responders, and other healthcare professionals, decreases preventable deaths on the battlefield and in dangerous civilian environments. NAR is considered a thought leader in emergency trauma care and has collaborated with the military medical community, government organizations, and civilian institutions in developing tactical medical and rescue training standards.
Background
NAR was founded in 1996 by former U.S. military special operations medics who saw first-hand the need for better care to treat combat injuries. By leveraging their significant casualty care experience, they developed new lifesaving products for the U.S. military that are now standard-issue equipment for combat soldiers and tactical vehicles. In 2008, NAR’s sales to the U.S. military were 94% of its revenue. We partnered with management to further professionalize NAR’s infrastructure, expand sales beyond U.S. military markets, and enable the founders to achieve their estate-planning objectives.
Opportunity
To position NAR as a leader in tactical emergency medical care in foreign military and nonmilitary markets, key elements of which included:
- Enhancing NAR’s infrastructure to support growth
- Purchasing a proven, established brand
- Expanding sales in civilian first responder and law enforcement markets
- Penetrating allied foreign military markets
Accomplishments
Enhanced NAR’s Infrastructure to Support Growth: NAR added personnel, systems, procedures, and processes, including ISO 9001 and 12485 certifications, Berry amendment compliance, and 510(k) clearance.
Developed Innovative New Products: NAR continued to develop new solutions, modify and enhance legacy products for new end markets, and introduce products for nonmilitary markets.
Aggressively Expanded into Adjacent Markets: Over Sentinel’s ownership period, NAR more than tripled sales in the civilian first responder and law enforcement markets.
Penetrated Allied Foreign Military Markets: During Sentinel’s ownership, foreign military sales grew from 2% of NAR’s total revenues to 17%, driven by state-of-the-art products and training and geopolitical events that led to increased global conflict.
Outcome
In 2015, having held the investment for more than five years and having achieved our objectives, we sold NAR to another private equity firm in a management buyout transaction. By the end of our ownership, NAR’s sales to the U.S. military accounted for approximately 60% of its total revenues, down from 94% when Sentinel made its original investment. The result was that NAR became a more diversified business, and one well positioned to pursue multiple avenues of growth.
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.