Company Description
RotoMetrics is the leading global provider of high precision, made-to-order rotary cutting dies and engineered tooling for web converting and printing applications. These products are critical components in the production of a wide array of tags, labels, and packaging items used in consumer, healthcare, electrical component, automotive, and industrial markets. RotoMetrics has established a global footprint of eight manufacturing facilities across five continents and maintains deep relationships with a highly diverse blue chip customer base. RotoMetrics holds the leading position in its core tag and label market.

Background
RotoMetrics was previously owned by a private equity firm that acquired the business in 2008. Under prior ownership, Rotometrics completed an acquisition in the U.K., opened a manufacturing facility in Thailand, and executed a management succession plan. Having achieved its investment objectives, in 2014, the prior owner decided to sell the business. Sentinel was selected as the buyer because of our established record acquiring global industrial businesses, our longstanding relationship with the investment bank managing the sale, and the strong relationship formed with management during the sale process.

The Opportunity

• To acquire a leading global specialty industrial business that could serve as a platform to further consolidate its industry.

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

Accomplishments
Accelerated International Growth Through Acquisition: Under Sentinel's ownership, RotoMetrics successfully completed three international add-ons that significantly expanded its global footprint.

• In 2015, RotoMetrics acquired MLC, the leading provider of precision rotary tooling in Brazil. This acquisition enabled RotoMetrics to accelerate growth in South America, a rapidly growing market that is difficult to serve without a local manufacturing location.

• In 2016, RotoMetrics acquired the magnetic cylinder business from Germany-based NELA, a manufacturer of printing equipment. The acquisition added additional production volume to Rotometrics' UK facility, which significantly improved European profitability.

• In 2017, RotoMetrics acquired Electro Optic, a leader in high-end flexible die manufacturing, from its German owners. Electro Optic's product line was highly complementary to RotoMetrics' and also contributed a state-of-the-art manufacturing facility in Germany, an underdeveloped market for RotoMetrics.

Fortified Leading Global Position: RotoMetrics completed two tuck-in acquisitions in North America and also opened solid die repair facilities in Chicago, Romania, and China to further solidify its position as the global market leader.

Outcome
During our three-and-a-half year ownership, Sentinel and management integrated five acquisitions, grew revenue and EBITDA substantially, and successfully achieved the investment objectives we established at the outset. In June 2018, Sentinel sold RotoMetrics to a family-owned investment management company in a successful transaction for Sentinel and its management partners.



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.