Aavid Thermalloy

Aavid Thermalloy

Summary

Completed seven acquisitions, which enhanced the company’s market leadership position, diversified revenues by end market and product, increased margins, and reduced cyclicality.

Background

Headquartered in Laconia, NH, Aavid Thermalloy (“Aavid”) is a global provider of thermal management solutions for aerospace and defense, LED lighting, telecommunications, enterprise computing, and industrial applications.

Challenge

When Audax invested in December 2012, Aavid was a designer and manufacturer of high performance thermal management solutions for telecommunications, enterprise computing, and industrial applications. Audax recognized that Aavid was well-positioned to benefit from the growing need for complex and demanding thermal management solutions as heat density in electronic applications increased. The company’s robust product design capabilities, coupled with its global low-cost manufacturing network, positioned it to be a market leader in a fragmented but consolidating market.

During Audax’ investment period, Aavid completed seven add-on acquisitions, which diversified the company into growing market segments such as aerospace and defense, LED lighting, and medical. The acquisitions also diversified the product categories that Aavid was able to offer to its customer base and created a mix of revenues that was both higher margin and less cyclical. In addition, the company invested in internal product development capabilities, allowing for the introduction of several new technologies anticipated to accelerate future organic growth.

The Audax Difference

Audax partnered with Aavid to develop and execute a strategy that focused on growth both through add-on acquisitions and organically to enhance the company’s market leadership position.

In 2017, Aavid was sold to Boyd Corporation, a portfolio company of Genstar Capital.

 


Together with the Aavid management team, we have doubled the size of the company during our ownership and diversified the company’s markets and products.”

  • Oliver Ewald Managing Director, Audax Private Equity

We enjoyed a successful partnership with the Aavid team that allowed for a strategic focus on growth through add-on acquisitions and organic product development initiatives. We believe the company is well positioned to leverage its market position for continued growth in thermal management.”

  • Don Bramley Managing Director, Audax Private Equity