Industrials Specialty
CASE HISTORIES
Spartech Harrington

Strategy powers performance.

The combination of Nautic’s substantive domain expertise, the knowledge and networks of our operating advisors, and our coalition of executives and subject matter experts enable us to move quickly through diligence, underwrite EBITDA levers, and add value post-close.

We take an Industrials subsector-focused approach.** For each of our three subsectors, we dedicate an operating advisor* and a robust network of executives and subject matter experts.

Specialty Chemicals/Materials

  • CASE
  • Additives and lubricants
  • Water treatment
  • Advanced materials
  • Chemicals distribution

Engineered Products

  • Electronic components
  • Flow control products
  • Advanced materials
  • Industrial automation

Industrial Distribution

  • Interest focused on characteristics
    • Scale players
    • Technical sale
    • Fragmented market
    • Enduring value proposition

Investment Criteria

  • Control investments in one of our targeted subsectors
  • EBITDA of $25M to $125M
  • 70% of sales in North America; customer concentrations <25%, O&G revenue <15%; A&D revenue <25%
  • Strong market position in an industry that is at least stable
  • Products, manufacturing capabilities, or service offerings that are differentiated and technical
  • Availability of value-creation levers to grow earnings
  • Add-on acquisitions are key part of our strategy (average ~4 per platform)

Industrials Strategy and Approach

  • Core element of Nautic Industrials strategy and approach is to seek to execute on a repeatable “playbook” that includes EBITDA levers such as deep data sales analytics, pricing, salesforce enhancement/augmentation/reorganization, turning money losing divisions into profitable operations, capacity expansion projects, mix optimization, supply chain improvements, indirect cost savings
  • We target investments in companies where the playbook, can be applied and where the levers have not been fully executed on
  • To the extent it can be helpful with executing against these levers, we often introduce our portfolio company management teams to our operating advisors who dedicate substantially all their professional time to Nautic projects*
  • Executive network of 170+ industrial operators that can be leveraged during diligence and post-deal close
  • Deep bench of functional experts, including financial executives, to supplement management teams if required

*Operating Advisors are not employees of Nautic Partners
**Deals shown are representative of deals over the last 10 years in Nautic Industrial’s ongoing verticals of interest

Industrials Team
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Representative Industrials Companies
Healthcare
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Services
Certain statements about Nautic made by portfolio company executives herein are intended to illustrate Nautic’s business relationship with such persons, including with respect to Nautic’s facilities as a business partner, rather than Nautic’s capabilities or expertise with respect to investment advisory services. Portfolio company executives were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company roles, and in certain cases are also owners of portfolio company securities and/or investors in Nautic-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.