Case History
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It was a real pleasure to work with and partner with the team from Nautic. During Nautic’s ownership, Aavid expanded its position in its core industries, developed good positions in exciting new markets, and strengthened its leadership position in the thermal management industry.
Alan Wong, CEO, Aavid Holding Company, LLC

Aavid

During Nautic’s ownership of Aavid, the company enjoyed tremendous success -- significantly increasing earnings while building on its leadership position in the market for thermal management products. Together with Nautic, the company completed a strategic acquisition, expanded and developed its management team, pushed into new high-growth markets, and implemented a materials-sourcing initiative that helped reduce overall material procurement costs and expand margins. Following a successful investment partnership, Aavid was sold to investors led by Audax Group.

BUSINESS OVERVIEW

Headquartered in Concord, New Hampshire, Aavid Holding Company, LLC (“Aavid”) is a leading manufacturer of high-performance thermal management products used to dissipate heat and maintain optimal temperatures in high-performance electronic components used in servers, telecommunications equipment and industrial electronics. Thermal management products are critical elements of electronic systems as over-heating is a leading cause of electronic equipment failure. The importance of heat dissipation has steadily increased over time, as electronic systems become increasingly smaller and more powerful – amplifying the need for Aavid’s engineered solutions.

THE SITUATION

When Nautic acquired Aavid in December 2010, the company was in the early stages of a dramatic turnaround in performance. Through intensive diligence, Nautic gained conviction in the company’s turnaround driven by: 1) repositioning of the company’s global manufacturing footprint to lower cost production areas; 2) new CEO’s refocusing of business toward lower volume, higher engineering content product solutions targeting telecom, high-end servers and similar applications; 3) company’s strong technology and IP leadership position; and 4) excellent forward visibility due to the company’s spec’d-in position on multi-year customer platforms.

WHAT WE DID

During our ownership period, the company’s earnings grew substantially due to strong performance in Aavid’s core server and telecom markets as well as market share gains by the company. We helped Aavid build out its management team by recruiting a new VP of Operations and by reorganizing the company’s transportation group under new leadership. Nautic also assisted the company in identifying and executing a strategic acquisition as well as implementing a materials-sourcing initiative that helped reduce overall material procurement costs and expand margins. Nautic successfully sold its investment in Aavid in December 2012 to Audax Private Equity.