Sentinel realises 4x return on Alemite

Sentinel Capital Partners has scored a roughly 4x return through the sale of Alemite, a Fort Mill, South Carolina-based industrial lubrication company.

New York-based Sentinel Partners has exited its investment in Alemite Holdings, selling the industrial lubrication company to Lincoln Industrial Corp., an affiliate of St. Louis-based Harbour Group.

Alemite, with headquarters in Fort Mill, South Carolina, is a manufacturer of lubrication equipment, including pumps, reels, grease fittings and other products. Alemite sells its products through industrial distributors as well as directly to OEMs in the industrial and automotive space.

Alemite’s management team has a done a tremendous job taking an old-line business that had stagnated and successfully executing a growth strategy.

Tom Fitzpatrick, senior operating partner, Sentinel Partners

Sentinel originally acquired the company in the summer of 2002, contributing more than $14 million of equity to buy Alemite, according to press reports at the time. The firm was investing out of its Sentinel Capital Partners II fund. Alemite had previously been a part of the Invensys plc conglomerate. 

In a statement, Tom Fitzpatrick, a senior operating partner at the firm, noted that Sentinel was able to revitalise the business after years of neglect under the Invensys umbrella. “During the course of our investment we introduced a significant number of new products, implemented lean manufacturing, expanded production capacity and revitalised the sales force,” he said. “Alemite’s management team has a done a tremendous job taking an old-line business that had stagnated and successfully executing a growth strategy.”

Sentinel, which last year raised its third fund, is realising a roughly 4x return on its invested capital, which translates into an IRR of approximately 45 percent.

Through the sale, Alemite is joining Lincoln Industrial Corp., but will continue to provide a differentiated product line.

Terms of the deal were not disclosed.