Harris Williams & Co. Advises IPS Corporation, a Portfolio Company of Nautic Partners, on its $700 Million Sale to Encapsys, a Portfolio Company of Sherman Capital Holdings

November 8, 2017

Harris Williams & Co., a preeminent middle market investment bank focused on the advisory needs of clients worldwide for more than 25 years, announces the sale of IPS Corporation (IPS), a portfolio company of Nautic Partners, LLC (Nautic), to funds associated with Sherman Capital Holdings LLC and other investors (collectively, Sherman Capital) through Sherman Capital’s existing portfolio company, Encapsys LLC. The two companies will operate together as Cypress Performance Group (CPG). IPS is a leading manufacturer of solvent cements, structural adhesives and specialty plumbing and roofing products. Harris Williams & Co. served as the exclusive advisor to IPS. The transaction was led by Mike Hogan, Ryan Nelson, Tim Webb and Trey Packard of Harris Williams & Co.’s Industrials Group.

“IPS’ executive leadership team has built a world-class platform with an impressive portfolio of industry-leading brands,” said Mike Hogan, a managing director at Harris Williams & Co. “We are pleased to have delivered a successful outcome for the company and its shareholders.”

“We continue to see strong interest in the industrials space as buyers seek platforms of scale with differentiated capabilities,” said Ryan Nelson, a managing director at Harris Williams & Co. “IPS’ proven track record of accretive acquisitions made the business that much more attractive.”

“We really enjoyed working with Tracy Bilbrough and the entire IPS management team,” said Tim Webb, a managing director at Harris Williams & Co.  “We are excited to watch their continued growth and success as they partner with George Sherman and the Encapsys team.”

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 No. 1 or No. 2 market positions in all of IPS’ key markets.

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.

Sherman Capital is the private investment arm of Cypress Group LLC. Sherman Capital employs a long-term, buy and hold investment strategy with a focus on growth and operational efficiency. The Sherman Capital team looks for value-added manufacturing or industrial service businesses in industries with consolidation opportunities. Sherman Capital has access to a team of operating and transaction professionals to help companies implement a strategic plan, improve capital efficiency, integrate acquisitions and develop industry-leading practices across the business. 

Harris Williams & Co. (www.harriswilliams.com), a subsidiary of the PNC Financial Services Group, Inc. (NYSE:PNC), is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements and capital markets advisory services.

Harris Williams & Co.’s Industrials Group has experience across a variety of sectors, including advanced manufacturing; aggregates, metals, and mining; building products; chemicals and specialty materials; industrial technology; and packaging. For more information on the firm’s Industrials Group and other recent transactions, visit the Industrials Group’s section of the Harris Williams & Co. website.

Harris Williams & Co. has closed nearly 100 transactions across a broad range of building products and materials sectors, including production, distribution and services related to building materials, commercial and residential construction; infrastructure and public facilities; repair and remodeling; cabinetry, windows, and doors; flooring and tiles; roofing and siding; HVAC, electrical and plumbing; aggregates; asphalt; ready-mix concrete; cement; and engineering and construction services.  For more information on the firm’s Building Products & Materials experience, visit the Building Products & Materials section of the Harris Williams & Co. website.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 7078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.