UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)
NATCO GROUP (NTG)
--------------------------------------------------------------------------------
(Name of Issuer)
Common Stock
--------------------------------------------------------------------------------
(Title of Class of Securities)
0001057693
--------------------------------------------------------------------------------
(CUSIP Number)
David Nierenberg
The D3 Family Funds
19605 NE 8th Street
Camas, WA 98607
(360) 604-8600
With a copy to:
Henry Lesser, Esq.
DLA Piper Rudnick Gray Cary US LLP
2000 University Avenue
East Palo Alto, CA 94303
(650) 833-2000
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
July 10, 2007
--------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box |_|.
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
The D3 Family Fund, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
270,024 Common shares (1.4%)
NUMBER ---------------------------------------------------------
OF SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH ---------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 270,024
---------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 270,024; for all
reporting persons as a group, 1,381,858 shares (7.2%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Instructions) |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
--------------------------------------------------------------------------------
2
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
The DIII Offshore Fund, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Bahamas
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
304,540 Common shares (1.6%)
NUMBER ---------------------------------------------------------
OF SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH ---------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 304,540
---------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 304,540; for all
reporting persons as a group, 1,381,858 (7.2%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Instructions) |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
--------------------------------------------------------------------------------
3
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
The D3 Family Bulldog Fund, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
807,294 common shares (4.2%)
NUMBER ---------------------------------------------------------
OF SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH ---------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 807,294
---------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 807,294; for all
reporting persons as a group, 1,381,858 shares (7.2%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Instructions) |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
--------------------------------------------------------------------------------
4
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Nierenberg Investment Management Company, Inc.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER ---------------------------------------------------------
OF SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 1,381,858 shares (7.2%)
EACH ---------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 0
---------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,381,858 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 1,381,858; for all
reporting persons as a group, 1,381,858 shares (7.2%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Instructions) |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
CO
--------------------------------------------------------------------------------
5
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Nierenberg Investment Management Offshore, Inc.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Bahamas
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER ---------------------------------------------------------
OF SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 304,540 common shares (1.6%)
EACH ---------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 0
---------------------------------------------------------
10 SHARED DISPOSITIVE POWER
304,540 common shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 304,540; for all
reporting persons as a group, 1,381,858 shares (7.2%)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Instructions) |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
CO
--------------------------------------------------------------------------------
6
This Amendment No. 2 to Schedule 13D (this "Amendment") amends the
below-indicated items from the Schedule 13D previously filed by or on behalf of
the undersigned parties (the "Reporting Persons"), as previously amended, (the
"Schedule 13D"), by supplementing such Items with the information below:
Item 4. Purpose of the Transaction.
On July 10, 2007, the Reporting Persons filed with the Securities and Exchange
Commission a Form 144 covering the potential sale, in unsolicited broker's
transactions on the open market, of a total of 400,000 shares of NTG's common
stock which the Reporting Persons have the right to acquire from NTG upon
conversion of a total of 3,122 of the shares of NTG convertible preferred stock
beneficially owned by them, as previously reported on their Schedule 13D. As of
the date of this Amendment the Reporting Persons have sold 288,482 of those
shares (see Item 5). The Reporting Persons intend to sell the additional 111,518
shares (through the conversion of the applicable number of convertible preferred
shares) within the next three months, subject to market conditions. In addition,
pursuant to a Form 144 filed with the Securities and Exchange Commission on June
15, 2007 covering the potential sale of 110,061 shares of NTG common stock
beneficially owned by them, the Reporting Persons have sold all of such shares
in broker's transactions on the open market since that date (see Item 5). The
Reporting Persons presently intend to hold their remaining shares of NTG
convertible preferred stock for investment and reserve the right to increase or
decrease their investment depending on market conditions, circumstances
affecting NTG and/or extrinsic factors such as developments in the company's
industry and the economic environment.
Item 5. Interest in Securities of the Issuer.
(a, b) The Reporting Persons, in the aggregate, beneficially own
1,381,858 common shares, constituting approximately 7.2% of the outstanding
Shares.
c) During the past 60 days, the Reporting Persons have sold, in
unsolicited brokers' transactions on the open market on aggregate of 398,543
shares of NTG common stock, including 288,482 shares acquired upon conversion of
shares of convertible preferred stock for of the preferred shares surrendered
for conversion.
Portfolio Name Transaction Date Shares Sold Price
D3 Family Fund LP 6/15/2007 9,410 48.28
D3 Family Fund LP 6/18/2007 1,117 48.56
D3 Family Fund LP 6/18/2007 233 48.56
D3 Family Fund LP 6/19/2007 2,195 48.66
D3 Family Fund LP 6/22/2007 435 48.00
D3 Family Fund LP 7/9/2007 252 48.05
D3 Family Fund LP 7/9/2007 6,748 48.05
D3 Family Fund LP 7/10/2007 3,116 50.36
D3 Family Fund LP 7/11/2007 7,585 50.23
D3 Family Fund LP 7/12/2007 27,530 50.44
D3 Family Fund LP 7/13/2007 10,115 50.31
D3 Family Fund LP 7/16/2007 740 50.35
D3 Family Bulldog Fund LP 6/15/2007 14,520 48.28
7
D3 Family Bulldog Fund LP 6/15/2007 9,820 48.28
D3 Family Bulldog Fund LP 6/18/2007 4,710 48.56
D3 Family Bulldog Fund LP 6/19/2007 7,645 48.66
D3 Family Bulldog Fund LP 6/22/2007 975 48.00
D3 Family Bulldog Fund LP 7/9/2007 16,043 48.05
D3 Family Bulldog Fund LP 7/9/2007 1,286 48.05
D3 Family Bulldog Fund LP 7/9/2007 7,171 48.05
D3 Family Bulldog Fund LP 7/10/2007 11,467 50.36
D3 Family Bulldog Fund LP 7/11/2007 27,205 50.23
D3 Family Bulldog Fund LP 7/12/2007 98,315 50.44
D3 Family Bulldog Fund LP 7/13/2007 36,180 50.31
D3 Family Bulldog Fund LP 7/16/2007 2,640 50.35
DIII Offshore Fund LP 6/15/2007 8,511 48.28
DIII Offshore Fund LP 6/18/2007 1,871 48.56
DIII Offshore Fund LP 6/19/2007 3,029 48.66
DIII Offshore Fund LP 6/22/2007 590 48.00
DIII Offshore Fund LP 7/9/2007 9,500 48.05
DIII Offshore Fund LP 7/10/2007 4,417 50.36
DIII Offshore Fund LP 7/11/2007 10,510 50.23
DIII Offshore Fund LP 7/12/2007 37,755 50.44
DIII Offshore Fund LP 7/13/2007 13,905 50.31
DIII Offshore Fund LP 7/16/2007 1,002 50.35
Item 7. Material to be filed as Exhibits
Exhibit 1: Joint Filing Agreement among the Reporting Persons dated July
24, 2006 pursuant to which all of the Reporting Persons have authorized the
filing of this Amendment as a group.
8
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, each of the
undersigned certifies that the information set forth in the Statement is true,
complete and correct.
D3 Family Fund, L.P., and D3 Bulldog Fund,
By: Nierenberg Investment Management
Company, Inc.
Its: General Partner
July 16, 2007 By: /s/ David Nierenberg
------------------------- --------------------------
David Nierenberg, President
DIII Offshore Fund, L.P.
By: Nierenberg Investment Management
Offshore, Inc.
Its: General Partner
July 16, 2007 By: /s/ David Nierenberg
------------------------- --------------------------
David Nierenberg, President
Nierenberg Investment Management
Company, Inc.
July 16, 2007 By: /s/ David Nierenberg
------------------------- --------------------------
David Nierenberg, President
Nierenberg Investment Management
Offshore, Inc.
July 16, 2007 By: /s/ David Nierenberg
------------------------- --------------------------
David Nierenberg, President
9