Facilitating Growth Through Acquisition


Company

Industry

Chase Doors, Inc.

Industrials

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Facilitating Growth Through Acquisition


Company: Chase Doors, Inc.

Position: Industrials

Location: Cincinnati, Ohio

Date of Investment: December 2010

Exit Date: September 2014


Company Description
Chase Doors is the global leader and most recognized manufacturer of high-quality, made-to-order specialty door systems. Chase offers of a broad spectrum of door systems employed in a variety of industrial and commercial settings including double impact traffic doors used in retail, supermarkets, and restaurants; corrosion resistant doors used in harsh environments; cold storage doors used in walk-in freezers and refrigerators; and strip and roll-up doors used in warehouses.

Background
Founded in 1932, Chase was previously owned by a smaller private equity firm. After completing several tuck-in acquisitions, the prior owner decided to sell Chase because it had achieved its investment objectives and Chase had grown to the point where it needed a deeper-pocketed partner. Sentinel was selected from a small group of potential buyers because of our established record of growing businesses through acquisitions and the strong relationship formed with management during the sale process.

The Opportunity

  • To acquire a leading specialty industrial business that could serve as a platform to further consolidate a highly fragmented and underdeveloped industry

  • To partner with Chase Doors' talented and experienced management team, who co-invested meaningfully alongside Sentinel and continued to manage the business

 

Accomplishments
Growth Through Acquisition: Under Sentinel's ownership, Chase Doors successfully completed two add-on acquisitions that transformed the business into the clear market leader.

  • In August 2011, Chase Doors acquired Chem-Pruf, the gold standard in corrosion-resistant doors, a segment in which Chase's brands competed at the lower end of the market. After the acquisition, Chase consolidated its smaller corrosion-resistant door operations in Chem-Pruf's Texas facility.

  • In November 2012, Chase Doors acquired Eliason, the leading provider of impact traffic doors to the restaurant industry. Founded in 1952 and family owned for more almost 50 years, Eliason had successfully built a dominant position in the restaurant door industry. This transformational acquisition united two complementary businesses and significantly increased the scale of Chase's operations.

 

Outcome
After almost four years, Sentinel and management had integrated two acquisitions, doubled revenue, tripled EBITDA, and successfully achieved the growth objectives we established at the outset. In September 2014, Sentinel sold Chase Doors to another private equity firm in a successful transaction for Sentinel and its management partners.

Hospice Advantage Holdings, LLC

Healthcare

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Facilitating Growth Through Acquisition


Company: Hospice Advantage Holdings, LLC

Position: Healthcare

Location: Bay City, Michigan

Date of Investment: December 2012

Exit Date: October 2015


Company Description
Hospice Advantage is a leading hospice care organization that provides end-of-life care, palliative treatment, personal care, and family support services to patients in their homes. Hospice Advantage operates through a network of more than 60 locations in 14 states throughout the Midwest, Southeast, and South.

Background
CEO Rod Hildebrant, a veteran hospice executive with more than 35 years of healthcare and hospice experience, founded Hospice Advantage in 2004 to serve the needs of terminally ill patients. After completing several tuck-in acquisitions, Mr. Hildebrant concluded that Hospice Advantage had grown to the point where it needed a financial partner with the resources to help it achieve the next phase of growth. Mr. Hildebrant engaged a boutique investment bank with which Sentinel has a strong relationship to help him locate such a partner. Sentinel was selected as the buyer because of our established record of growing healthcare businesses through acquisitions and the strong relationship we formed with management during the sale process.

The Opportunity

  • To acquire a leading platform in the large and growing hospice care sector and to pursue a regional consolidation in a highly fragmented industry

  • To provide low-cost, compassionate end of life care to a growing population of aging Americans, who prefer to be treated at home

  • To partner with Hospice Advantage's talented and experienced founder and management team, who co-invested meaningfully alongside Sentinel and continued to manage the business

 

Accomplishments
Growth Through Acquisition: Under Sentinel's ownership, Hospice Advantage successfully completed 15 add-on acquisitions that transformed the business into a regional leader.

  • During the first year of Sentinel's ownership, Hospice Advantage completed six tuck-in acquisitions in two new states. This expansion came despite a challenging regulatory environment, as sequestration reduced reimbursement rates and Medicare tightened admissions standards.

  • In 2014 and 2015, Hospice Advantage acquired nine additional operations and expanded into two additional states.

 

Built Scalable Infrastructure: To support rapid growth, Sentinel worked with management to bolster the organization's ability to acquire, integrate, and manage geographically diverse add-on acquisitions. As part of this effort, the finance team was significantly expanded and three new regional vice presidents were added to focus on integrating add-ons and driving growth.


Outcome
Under Sentinel's ownership, management successfully completed and integrated 15 tuck-in acquisitions, grew revenue and EBITDA significantly, and achieved the objectives we established at the outset. In October 2015, Sentinel sold Hospice Advantage to strategic buyer Compassus in a highly successful transaction for Sentinel and its management partners.

Nivel Holdings LLC

Distribution

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Facilitating Growth Through Acquisition


Company: Nivel Holdings LLC

Position: Distribution

Location: Jacksonville, Florida

Date of Investment: February 2004

Exit Date: October 2007


Company Description
Nivel supplies more than 4,000 golf car parts, including battery parts, bearings, brake components, chargers, body accessories, motors and related replacement parts for all makes and models including Club Car, E-Z-Go and Yamaha. Nivel is recognized for its leading product catalog which is distributed to more than 2,000 dealers worldwide. Nivel also publishes Golf Car News, a bimonthly magazine targeted at golf car dealers and related service providers, and The Cart Trader, a classified newsletter for buyers and sellers of used golf cars.

Background
Nivel was founded in 1968 in Miami, Florida by Leo Levin (Nivel is Levin spelled backwards). Mr. Levin, a Chicago auto dealership owner who spent winters in Florida, had difficulty finding parts for his golf car and correctly believed an aftermarket golf car parts distribution business fulfilled a market need. Twenty years later, in 1989, he sold Nivel to an employee of his auto dealership. In 1998, Nivel was acquired by a family investment company. Having achieved its financial and operating goals by 2004, the family conducted a limited auction that Sentinel won due to the rapport we established with management and the family, and the certainty we provided to close the transaction.

The Opportunity
Because the golf car parts market is highly fragmented, Nivel had the opportunity to expand its product offering and diversify geographically through the acquisition of smaller, niche players.

Accomplishments
Under Sentinel ownership, Nivel acquired HT Electric, a Scottsdale, AZ designer of performance golf car motors, in 2005. HT provided Nivel with a product extension and a presence in the west. In 2006, Nivel purchased IMC, a Beaverton, OR leader in the design and outsourced manufacture of golf car accessories, which broadened Nivel’s capability in this fast growing segment and provided further distribution reach into the Pacific northwest.

In addition to the HT and IMC acquisitions, Sentinel recruited a seasoned manufacturing and distribution CEO. We also helped management complete the integration of HT and IMC, plan a move into a new and larger state-of-the art distribution facility, and expand Nivel’s foreign sourcing capabilities.

These initiatives enabled Nivel to become the clear leader in the North American golf car parts market.

Outcome
After nearly four years, Sentinel and management had more than doubled the size of the business and successfully achieved the growth objectives established at the outset. In October 2007, Sentinel sold Nivel to another private equity sponsor in a successful transaction for Sentinel and its management partners.

Northeast Dental Management Inc.

Healthcare

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Facilitating Growth Through Acquisition


Company: Northeast Dental Management Inc.

Position: Healthcare

Location: Paramus, New Jersey

Date of Investment: April 2012

Exit Date: January 2016


Company Description
Northeast Dental is a multi-unit dental service organization with affiliated clinics located in seven states along the “Amtrak Corridor” between Virginia and Massachusetts. NEDM provides administrative staffing, human resources, purchasing, financial, and IT support services to 65 locally-branded dental offices. NEDM's affiliated offices provide the highest quality dental care to nearly 200,000 patients annually, and offer a full suite of best-in-class general and specialty dental services, including general dentistry, oral hygiene, oral surgery, periodontics, pedodontics, and orthodontics.

Background
NEDM was founded by Dr. Craig Abramowitz in 2003 when he acquired a single office in New Jersey from a large publically-traded dental service organization. Together with his dentist partners, Dr. Abramowitz grew NEDM through affiliations with several multi-office practices in nearby states. Along the way, a small private equity firm invested in NEDM to provide additional capital for growth. By 2012, NEDM had grown to 29 affiliated offices in New Jersey, New York, Pennsylvania, and Virginia and NEDM’s investors were ready to monetize their investment. NEDM hired an investment bank with which Sentinel has a strong relationship to find a new financial partner for Dr. Abramowitz. Sentinel was selected because of our established record of successfully investing in the dental services sector and the strong relationship we had with Dr. Abramowitz and NEDM’s management team.

The Opportunity
To partner with NEDM’s founding management team, accelerate growth through new affiliations, and establish NEDM as the subconsolidator of choice in the Amtrak Corridor.

Accomplishments
Developed Acquisition Infrastructure: Sentinel helped management build a business development function in order to create an acquisition pipeline of new affiliate practices. This initiative significantly enhanced NEDM’s capabilities to source, execute, and integrate acquisitions.

Growth Through Acquisition: Under Sentinel’s ownership, NEDM completed 24 new add-on affiliations—more than one new office per month at the time of our exit—while substantially growing its future affiliation pipeline. NEDM increased its office density in existing states and expanded its footprint into adjacent states with new affiliated offices in Connecticut, Maryland, and Massachusetts.

Strengthened NEDM’s Office Support Capabilities: To serve a rapidly growing group of affiliated dental practices, Sentinel and management worked together to further develop NEDM’s back office infrastructure and add additional talent in finance, purchasing, IT, and marketing. In addition, NEDM implemented a new, integrated IT system that simplified reporting and streamlined data collection and analytics.

Outcome
In less than four years, NEDM grew its base of affiliated offices from 29 to 65, added three new adjacent states to its geographic footprint, and more than doubled its revenue and EBITDA. In January 2016, having successfully accomplished our investment objectives, NEDM was sold to strategic buyer Dental Care Alliance in a highly successful transaction for Sentinel and its management partners.

ReachOut Healthcare America, Ltd.

Healthcare

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Facilitating Growth Through Acquisition


Company: ReachOut Healthcare America, Ltd.

Position: Healthcare

Location: Phoenix, Arizona

Date of Investment: November 2007

Exit Date: December 2010


Company Description
ReachOut is the nation’s leading provider of mobile dental services to underserved patient populations, particularly children from low-income families. Through its network of affiliated dentists, ReachOut provides a complete array of diagnostic, preventative, restorative, prosthodontic, and periodontal dental services to underprivileged children in schools and foster programs, the aged and disabled in residential facilities, and to US Army National Guard units throughout the country.

Background
ReachOut was founded in 2001 by two seasoned business executives with a deep-rooted desire to serve the 27 million U.S. children who were not receiving adequate dental care through a unique mobile model. Having built a rapidly growing business, in 2007, the founders sought a financial partner to help ReachOut achieve its significant unrealized growth potential as well as to address their estate planning goals. Sentinel was selected from a small group of potential private equity firms because of our established record in dental services as well as the strong relationship formed with the founders during the sale process.

The Opportunity

  • To acquire a leading provider of mobile dental services to large, underserved populations that could serve as a platform to consolidate a fragmented and underdeveloped industry

  • To capitalize on ReachOut’s first-mover advantage and continue its rapid growth trajectory by acquiring small competitors to expand into new states and increase penetration in existing states

  • To partner with ReachOut's talented and committed founders, who co-invested meaningfully alongside Sentinel and continued to manage the business

 

Accomplishments
Growth Through Acquisition: Under Sentinel’s ownership, ReachOut successfully completed two significant add-on acquisitions that transformed the business into the clear national leader.

  • Shortly after the closing, in August 2008, ReachOut acquired Detroit-based Mobile Dentists to create the clear industry leader with a national footprint. Founded in 1995 by two entrepreneurial dentists, Mobile Dentists had successfully expanded utilizing a similar mobile dental model serving underserved populations. ReachOut had primarily expanded in the western U.S. whereas Mobile Dentists’ footprint was in the eastern U.S. Mobile Dentists' founders joined ReachOut's board and became senior executives.

  • In early 2010, ReachOut acquired Help A Child Smile, the largest mobile dental services provider in the state of Georgia, from its entrepreneur dentist founder, thereby further expanding its leadership position.

 

Built Financial Infrastructure: ReachOut recruited a seasoned dental-services CFO, implemented new accounting and operational software platforms, and integrated three businesses onto these common systems.

 

Outcome
After more than three years, Sentinel and management had quadrupled the size of the business and successfully achieved the growth objectives we established at the outset. ReachOut was operating in 25 states and serving more than 425,000 children, seniors, and military personnel each year. In December 2010, the business was sold to a new private equity sponsor in a successful transaction for Sentinel and its management partners.