Overview
NYCOA is a leading manufacturer of engineering grade nylon resins. With a product line as broad as that of the industry’s largest competitors, NYCOA has established a solid market niche in specialty nylons. In addition to an extensive line of standard and custom nylon 6 grades, NYCOA manufactures numerous specialty nylon grades including plasticized, glass reinforced, and flame retardant grades, as well as the capability to polymerize many unique nylon copolymers, terpolymers and custom nylon alloys.
Bigelow Assignment
To proactively seek out the best new majority owner for the Company. The incumbent majority owner was an investment firm that had acquired its ownership when the Company was struggling as a “corporate orphan”. Now, after years of independence and improvement, the decision was made to seek a capital gain event. In doing so, the management team was keenly interested in securing a partner that would support their future growth strategy for the stand-alone Company.
Challenges
NYCOA occupies a unique position in the industry where most of its competitors are extremely large, vertically integrated producers of Nylon 6, with some who also serve as the Company’s key suppliers. Could Bigelow find an investor that would perceive a high value for NYCOA’s unique manufacturing capabilities as a small scale, low volume producer of differentiated nylon grades to niche end markets?
“The Bigelow team is a group of exceptional individuals that do exceptional work. They work closely with the client to thoroughly understand the current business and the company’s competitive advantage. They help the client develop a strategic path that maximizes the future potential of the company’s business, and then they find the right partner to fully unlock and realize that potential. As a client we were very impressed by the output of the Bigelow process, but what we found to be truly remarkable was the speed in which they were able to accomplish it. If you are selling your business, you want the Bigelow team sitting on your side of the table.” Gregory J. Biederman, President & CEO Nylon Corporation of America, Inc.
“The Bigelow team members were consummate professionals. I would have them represent my business.” Sunil Kumar, Managing Principal Wembly Enterprises LLC
Outcome
Bigelow created a competitive process among world class investors within NYCOA’s existing supply chain, as well as a variety of financial investors including institutional private equity funds, family offices and private equity platform companies.
Given NYCOA’s unique position in the industry it was critical to maintain confidentiality, while at the same time quickly identifying those Investors that were most compelled by the opportunity to acquire NYCOA.
Following intensive dialogue with several finalists, the Company chose to be acquired by the family office of Sunil Kumar.
Kumar has an extensive background in specialty chemicals and manufacturing, having previously worked as President and CEO of International Specialty Products, GAF Materials Corporation and in senior executive roles at Bridgestone / Firestone.
Kumar had been looking for the right specialty chemicals company to acquire and build, and found NYCOA to have a unique product line and great reputation within the industry. Drawn by the entrepreneurial culture of the NYCOA team, Kumar intends to fully harness that capability to expand and grow the company.