Sentinel Capital Partners successfully exits investment in Chromalox
Iconic Industrials Brand Experiences Strong Growth and Operational Improvements During Sentinel Ownership
NEW YORK, December 28, 2012 – Sentinel Capital Partners, a private equity firm that invests in promising lower middle market companies, today announced it has sold portfolio company Chromalox, the leading global designer and manufacturer of highly engineered electric heating solutions for demanding, mission-critical process control applications in energy, industrial, and commercial market sectors. The buyer was private equity firm Irving Place Capital. In connection with this transaction, the senior management team of Chromalox has increased its ownership in the company and will retain a substantial stake in the business going forward. Terms of the transaction were not disclosed.
Founded in 1918, Chromalox is the premier brand in the electric heating market, providing the most comprehensive suite of products and serving as the industry’s technological innovator. Over its nearly 100-year history, the Chromalox name has become known for engineering excellence, innovative solutions, and unsurpassed performance. Chromalox's product catalog, known as the Big Red Book, is the industry's "go-to" technical resource for engineers and technicians, with thousands of pages of product information, technical reference guides, and design tutorials.
During Sentinel's ownership, Chromalox opened a new manufacturing facility in China to serve that growing market, opened new sales offices in India, Germany, and parts of Asia, and significantly improved the performance of Chromalox's European operations.
“Chromalox’s management team has done a superb job driving product application growth, while maintaining operational excellence,” said John McCormack, Sentinel co-founder and senior partner. “Combined with its global footprint, Chromalox is very well positioned to respond to the rapidly growing energy and power generation industries worldwide. We couldn’t be more pleased with our investment and would like to thank Chromalox's management team for being such great partners and for their dedication to excellence."
"Chromalox thrived during our partnership with Sentinel. Their support, coaching, and long-term perspective helped us perform well during their investment period while positioning us for continued success in the future," said Scott Dysert, CEO. "This is an exciting time for our company, as Chromalox prepares for the next stage of growth in our long history."
In addition to the exit of Chromalox, Sentinel announced last week the acquisition of Hospice Advantage, a leading hospice organization that provides end-of-life care, palliative treatment, personal care, and family support services, primarily to patients in their homes. Both transactions conclude a highly active 2012 that saw Sentinel successfully complete six exits and make four new platform investments. The six exits are Chromalox; Inscape Publishing, a leading provider of assessment and training products and services that develop interpersonal skills; Interim Healthcare, a leading franchisor of skilled home healthcare services; LTI Boyd, a leading industrial manufacturer of mission-critical sealing and energy management solutions; Massage Envy, the nation’s largest provider and franchisor of massage therapy and facial treatment services; and Southern California Pizza Company, the largest Pizza Hut franchisee in southern California. The four new 2012 platform investments are Colson, the leading global industrial manufacturer of casters and wheels; Hospice Advantage; Huddle House, a leading franchisor of family dining restaurants in the Southeast; and Northeast Dental Management, a regional dental practice management company in the mid-Atlantic.