PROVIDENCE, R.I.--Nautic Partners, LLC announced today that it has sold portfolio company IPS Corporation for a purchase price of $700 million. IPS was sold to funds affiliated with Sherman Capital Holdings LLC (collectively, “Sherman Capital”), through Sherman Capital’s existing portfolio company, Encapsys LLC. The two companies will operate together as Cypress Performance Group (CPG), offering a portfolio of advanced materials and diversified products with leading brand positions in niche, value-added verticals. Nautic originally acquired IPS in February 2015.
IPS is a global manufacturer of specialized, highly engineered industrial products serving diverse industrial, commercial, and residential end markets. Selling through the professional trade channel, IPS is a market leader in multiple product categories including solvent cements, structural adhesives, and specialty plumbing products. Across all lines of business, IPS’ products reliably deliver the exacting performance characteristics required by their end applications, resulting in significant loyalty among trade professionals and #1 or #2 market positions in all of IPS’ key markets.
Doug Hill, Managing Director of Nautic, said, “The IPS management team is truly world-class. We thank Tracy Bilbrough and the entire team for their accomplishments; it has been a pleasure partnering with them to nearly double the company’s EBITDA in less than three years.”
Edward Sohn, Vice President of Nautic, continued, “IPS’ tremendous growth has arisen both organically and through the eight accretive acquisitions completed and integrated during our investment period. We are confident that the company will continue to flourish as part of CPG.”
Tracy Bilbrough, CEO of IPS, said, “Throughout our history, IPS has always been committed to providing reliable, top-quality products for our customers. In partnership with Nautic since 2015, we have remained true to that commitment while successfully executing a growth strategy that has more than doubled our enterprise value in that time. We have greatly enjoyed working with Nautic, and we now look forward to the next chapter for IPS.”
About Nautic Partners LLC
Nautic is a middle-market private equity firm that focuses on three industries: healthcare, industrial products, and outsourced services. Nautic has completed 131 platform transactions over its 31-year history. Nautic’s strategy is to partner with management teams to accelerate the growth trajectory of its portfolio companies via add-on acquisitions, targeted operating initiatives, and increased management team depth. Nautic generally makes equity investments of $25 to $100 million. For more information, please visit www.nautic.com.
About Sherman Capital Holdings LLC
Sherman Capital is the private investment arm of George M. Sherman’s family office, Cypress Group LLC. Sherman Capital employs a long-term, buy and hold investment strategy with a focus on growth and operational efficiency. For more information, please visit www.cypressgroupllc.com.