Repositioning Businesses
NSI Industries is a leading provider of branded electrical products sold through third-party distributors and backed by integrated manufacturing capabilities. Its iconic brands—among them, Bridgeport and Polaris—are valued by contractors for their superior durability, reliability, and functionality. NSI’s portfolio includes insulated connectors, fittings, wire management products, and other replenishment-driven electrical components.
Background
| Previously owned by Odyssey Investment Partners, NSI consisted of two distinct businesses serving different industries: electrical and HVAC. During Odyssey’s sale process, strategic buyers expressed interest in acquiring each business separately but not the combined company. Sentinel was among a small group of sponsors willing to buy the entire business, undertake the complex task of evaluating both businesses, and reposition NSI as a pure-play electrical company.
Although both of NSI’s divisions were high-quality businesses, Sentinel believed they were not strategic fits and would be worth more as standalone companies. Sentinel’s experience in the electrical products sector, including its successful prior investments in ECM Industries and Power Products; deep knowledge of the electrical market; strong rapport with management; relevant and specialized operating partner resources; and reputation for transaction certainty helped secure the deal. |
Opportunity
To unlock value through separate exits of divisions
Accomplishments
| Divested HVAC: The HVAC division performed well, driven by the strength of the Duro Dyne and Supco brands, a talented management team, and favorable industry trends. Eleven months after acquiring NSI, Sentinel completed the complex separation of the HVAC business and sold it to strategic buyer Lennox International (NYSE: LII). The divestiture returned NSI to its roots as a pure-play provider of branded electrical components.
Supported NSI’s Growth Post-Divestiture: After the HVAC sale, NSI continued to deliver excellent results under its outstanding leadership team, supported by Sentinel and its operating partners. Performance was driven by cross-selling, new product introductions, market share gains, cost improvements, and targeted expansion into high-growth end markets, including data centers. |
Outcome
As a focused pure-play electrical company, NSI attracted interest from several strategic buyers that had initially sought to buy the business on a standalone basis. Less than two years after acquiring NSI, we sold the company to Hubbell (NYSE: HUBB), generating an outstanding outcome for Sentinel’s investors and NSI’s management team.