Electra exits Sentinel Performance Solutions to trade

Aalberts has wholly acquired the business and said in a statement that the acquisition is intended to enhance its presence in the hydronic flow control sector. The deal is to be financed by the company's existing credit facilities.

The deal will generate proceeds of £22.2m (58.1 pence per share), the GP said in a statement, compared with the carrying value of £10.9m (28.5 pence per share) as of 30 September 2020.

Electra acquired a majority stake in Sentinel in 2011 for £43m. The GP then gained full control of the business in June 2019 for a nominal sum of £1.5m, Electra said in a statement, following which the GP implemented a turnaround and development plan.

The GP said in a statement that it intends to retain the cash proceeds, pending further planned asset realisations and distributions to shareholders.

Previous funding
The Riverside Company acquired Sentinel, the former water and process technologies division of GE Infrastructure, in 2005 in a $44m deal. The GP sold its stake in the business to Electra in March 2011, netting returns of 3x money and 22% IRR.

Company
Founded in 1988 and headquartered in Warrington, Sentinel provides cleaning, protection and maintenance equipment for heating and water systems in buildings, with a focus on improving the quality of the water involved in these systems. The business provides products for both domestic and commercial settings, including chemical solutions and corrosion monitors. The company reported 2020 revenues of around £20m and employs 60 staff.

People
Sentinel Performance Solutions – David Barrett (CEO).
Electra Private Equity – Neil Johnson (chairman).
Aalberts – Maarten van de Veen (CEO, hydronic flow control).

Advisers
Vendor – Clearwater International (corporate finance); DWF (legal).

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• Topics
• Exits
• UK / Ireland
• Consumer
• Trade sale
• United Kingdom
• Electra Private Equity