Nautic Partners Sells CDRY Holdings To Home Depot

Sale Caps Active Period Of Six Liquidity Events And Ten Acquisitions
Providence, RI

Nautic Partners, LLC, a private equity firm with more than $1.8 billion of capital under management, today announced that it has sold CDRY Holdings, Inc., a leading franchisor of carpet and upholstery cleaning businesses, to The Home Depot®, (NYSE:HD). The sale represents an IRR of 43%. Nautic Partners acquired CDRY in 2002. During the term of its investment, the Company grew revenue and cash flow consistently each year by focusing on new products and services, improved franchise marketing, network expansion, and strategic additions to senior management.

The sale of CDRY caps a period of significant activity for Nautic in which its portfolio companies returned more than $260 million in capital, and the firm committed in excess of $238 million for platform and portfolio company add-on acquisitions.

In November, Nautic announced the sale of its investment in Skyline Chili, a regional chain of 135 franchised and company-owned restaurants that specialize in Cincinnati-style chili. In December and January, Nautic also recapitalized four of its portfolio companies.

During 2005, Nautic announced five platform acquisitions:

  • Imaging Technologies Services, Inc., a provider of technology-enabled printing fulfillment, and marketing services;
  • ConvergeOne, LLC, a leading value added solution provider of Avaya voice and data communications systems to corporations;
  • AIM Holding Company, LLC, a provider of diagnostic imaging management services;
  • HB Performance Systems Holdings, LLC, a leading manufacturer in the non-automotive brake industry; and
  • Contec Holdings LLC, the dominant supplier of set-top-box repair and maintenance services to the cable television industry.

Also in 2005, add-on acquisitions were completed by five portfolio companies: AXIA Health Management, LLC; FFG Holdings, Inc.; GCA Services Group, Inc.; HB Performance Systems Holdings, LLC; and Qantum Communications.

“We are entering 2006 with a great deal of momentum and expect another good year for liquidity events driven by the strong performance of our portfolio companies and favorable market conditions,” said Nautic Managing Director, Habib Gorgi. “We also continue to see attractive opportunities to deploy capital and expect to make significant additions to the portfolio this year.”

Since its founding, Nautic has realized approximately $1.1 billion in proceeds from 64 investments representing a 2.2 times multiple of capital invested and an IRR of 35%.