Providence, Rhode Island-based Nautic Partners cinched another exit earlier this week, selling its stake in Chem-Dry franchisor CDRY Holdings to Home Depot.
Habib Gorgi, a managing director at Nautic, told PEO that the firm began exploring a sale of CDRY after the company had received unsolicited offers to buy the company. Nautic hired Baird, and through an auction process, Home Depot emerged as the buyer. No terms of the deal were disclosed.
CDRY, which was known as Harris Research prior to the Nautic investment, is a franchisor of carpet and upholstery cleaning businesses.
In a statement, Nautic said that the sale cemented a 47 percent IRR for the investment, while published reports indicate the group was able to book a 2.7x return on its equity. The firm, according to SEC documents, invested $48.28 million in the recapitalisation that transferred ownership from Summit Partners to Nautic.
The sale marks another exit for Nautic, which is currently prepping a follow-up to its fifth fund. The firm unloaded Skyline Chili, a restaurant franchisor, in November, realising a 3x return on that sale, and according to Gorgi, Nautic was able to engineer dividend recaps in four of its portfolio companies in the past two months alone.
The next Nautic fund, expected to launch in the coming months, will likely be between $1 billion and $1.5 billion in size. The CDRY investment, meanwhile, came out of Nautic Partners IV and the $1.1 billion Nautic Partners V.
Edwards & Angell served as legal counsel to Nautic on the sale.