26 Mar Amherst Advises on ACG Detroit Deal of the Year
Sale of Beach Mold and Tool Named Deal of the Year by ACG Detroit
Amherst Partners (“Amherst”) is pleased to congratulate our Restructuring Advisory group for its achievements on behalf of our client, Beach Mold & Tool (“Beach” or “the Company”), culminating in the sale of Beach to NYX, Inc. (“NYX”). This transaction was recently honored as “Deal of the Year” in the over $50 million in revenue category by the Detroit Chapter of the Association for Corporate Growth (“ACG”).
Amherst was initially engaged to provide financial advisory services to distressed New Albany, Indiana-based automotive supplier Beach Mold & Tool. This engagement soon developed into a Chief Restructuring Officer (“CRO”) assignment, followed by a mandate from the Company’s senior lender to assess the viability of selling the business to a strategic acquirer. As an initial step and in fairly short order, Amherst was able to facilitate the sale of an underperforming division which was, at the time, responsible for losses that represented a significant drain on the Company’s cash resources.
This initial transaction created the opportunity to pursue an orderly sale process involving the Company’s healthier, more viable operations located in New Albany, Indiana. Prior to launching such a process, however, the Amherst team engaged in a complex restructuring exercise aimed at stabilizing the Company’s financial performance, addressing systemic operational issues that eroded profitability, and demonstrating Beach’s strategic value to prospective buyers. The success of this restructuring project ultimately paved the way for the successful sale of the business to Livonia, Michigan-based NYX.
“This is a great example of the impact that an effective turnaround process can have on a situation – even one that looks fairly dire,” said Amherst Restructuring Advisory Practice Head and engagement team leader Sheldon Stone. “By taking the time to understand the root causes of the problems, we were able to help the client mitigate them to the extent that they could engage in a robust competitive process to find a buyer with the resources and strategy to effectively incorporate Beach’s assets into their existing business, and use the resulting operations as a platform for growth. This is exactly what happened – not only did the legacy Beach jobs in both Virginia and Indiana stay in those communities, but the new operator of the Company’s primary facility, NYX New Albany, subsequently added several hundred more positions in that market.”
In addition to the Amherst team of Sheldon Stone, Brian Phillips, and James Morden, Amherst would like to recognize the owners and management teams at both the legacy operations of Beach Mold & Tool and at the buyer NYX, as well as the attorneys, advisors, and lending professionals on both sides of the transaction for the time and effort they invested to deliver such a successful outcome for the stakeholders of both organizations.
For additional information about this transaction, please listen to our recent interview with NYX CFO and Executive Vice President Dan Laible, as part of our Whose Company is it Anyway podcast series, hosted by Sheldon Stone.