Electra Partners announces today the acquisition of Sentinel Performance Solutions ("Sentinel") for £43 million from private equity firm The Riverside Company. This equity only transaction was funded by Electra Private Equity PLC ("Electra").
Based in Runcorn, Cheshire, Sentinel is the European market leader in the supply of treatment products to improve the performance and efficiency of residential heating and hot water systems. Its biodegradable products protect heating systems against limescale and corrosion and remove sludge and flux, improving energy and increasing system lifespan.
Formerly part of GE, Sentinel was bought out in 2005 by The Riverside Company. Since then the company has grown into a well established brand with a strong track record in new product development and market-leading positions in the UK, France, Germany and Italy. Sentinel's existing management have been with the business since 2005, under the leadership of CEO Gary Roebuck.
Sentinel's products are sold through builders' merchants for use by plumbing and heating professionals. They can yield annual savings on household heating bills and carry Carbon Trust labelling, demonstrating the business's commitment to lowering CO2 emissions.
David Symondson, Deputy Managing Partner of Electra Partners, said: "We are delighted with this acquisition. Sentinel ticks all the right boxes: a well established brand with strong market position, good cash generation and potential for growth, run by an enthusiastic and highly successful management team."
Charles Elkington, a Partner at Electra Partners said: "With regulation and energy efficiency targets as the key drivers, our strategy will be to grow the company organically, through greater market penetration in Europe and new product development, and by acquisition."
Gary Roebuck, CEO of Sentinel said: "We are very excited about working with Electra Partners and the opportunities it presents for developing Sentinel. We have proven energy saving products which can play a key role in saving both money and CO2 emissions, very current in today's marketplace. We see opportunity particularly in the other European markets and are actively seeking suitable acquisitions to help more quickly develop our position."
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.
For further information please contact:
For David Symondson/Charles Elkington:
Kate Ruck Keene, M:Communications +44 (0)20 7920 2322
Monique Dumas, Investor Relations Partner, Electra Partners +44 (0)20 7306 3911
Note to Editors:
Founded in 1985, Sentinel was established to clean, protect and maximise the efficiency of watercircuits found in domestic heating systems.
Sentinel is headquartered in Runcorn, Cheshire UK and has offices and market-leading positions in fourcore countries: UK, France, Germany and Italy.
Leading brands include:
- Sentinel X range of products for cleaning and protection of central heating system fluids
- SESI for prevention of scale in domestic hot water systems
- Sentinel R range of products for cleaning and protection of domestic renewables fluid circuits such as those found in heat pump and solar thermal installations
For further information please visit www.sentinel-solutions.net
About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years experience in the mid-market buyout sector. As at 30 September 2010, the firm had funds under management of over £800 million. The firm's flexible investment approach allows it to invest across a broad range of sectorsand financial instruments including equity, senior equity, convertibles and mezzanine debt. Concentrating principally on Western Europe, and with the majority of investments expected to be made in the United Kingdom, Electra Partners seeks to invest in the region of £20-75million per transaction.
The firm's major client is Electra Private Equity PLC, a private equity investment trust which has been listed on the London Stock Exchange for over 30 years. The firm also manages Electra Partners Club 2007, a £100 million fund raised in 2008 for the sole purpose of investing alongside Electra in controlled investment situations.
For further information please visit www.electrapartners.com.
Electra Partners LLP is authorised and regulated by the Financial Services Authority.
About Electra Private Equity PLC
Electra Private Equity PLC is an investment trust listed on the London Stock Exchange since 1976 and has achieved investment returns substantially in excess of the FTSE All-Share Index. Electra's objective is to achieve a rate of return on equity of between 10-15% per annum over the long-term by investing in a portfolio of private equity assets. Over the 5 years to 30 September 2010 Electra achieved 12.3% return on equity on an annualised basis. Electra, with its flexible investment approach, has a strong market position and provides shareholders with a direct and liquid access to private equity.
For further information please visit www.electraequity.com.