In 1997, CII Technologies was hoping for a partner with the capital and other resources to help the company continue to achieve its well-planned growth objectives. Acquisitions were needed to diversify from what had been a focus primarily on military and aerospace markets into a broader commercial industrial markets.

With assistance from CHS, CII completed six acquisitions: four tuck-ins and two major add-ons. The assimilation of low-performing competitors as well as the two major acquisitions significantly increased the company’s sales volume and doubled their served markets.

Fortunately, as the recession began in 2001, the company was in a relatively strong position. Product and market diversification, along with low cost production, resulted in stable earnings and market share growth. Through common distributors, the CEO learned of a strategic buyer’s interest in purchasing the company and alerted CHS. CHS conducted a focused sales process to gauge interest among other potential buyers. Within six months the company was sold for cash consideration of approximately $310 million.

This successful exit generated 36% IRR on the investment and returned approximately 30% of Fund III capital during a time when the private and equity markets were considered in a semi-recession and successful exits were rare.