Beach Mold and Tool

Situation

Beach Mold and Tool, Inc. (“Beach”), based in the mid-south, is a family owned and operated, 43 year old, $160MM auto supplier. The Company was having significant financial difficulties due to an unsuccessful launch of an OEM program. The Company had been a successful Tier II supplier, and this launch was their first experience as a Tier I supplier.

To compound their situation, the Company’s lender, Wells Fargo, put a block on their operating line and was increasing that block by a set amount every week. This action paired with ineligibles, and account payables above a normal level, was putting significant constraint on their availability and causing problems with their trades. When Amherst arrived, the Company was insolvent.

Solution

Amherst identified the root causes of the Company’s liquidity problem and began to evaluate the situation via a combination of working with customers and tighter controls on cash management. Additionally, Amherst sold an underperforming plant which reduced the Company’s debt load and shed customers who were slow paying, and caused the Company to incur significant quality costs.

Results

The Company’s availability significantly improved due to reducing the ineligibles and its past due payables. Also, the number of vendors that had the Company on COD or CIA was reduced by 70%. Amherst was also able to negotiate with Wells Fargo to reduce the block of availability and return part of the amount in reserve to working capital.

In June 2019, Beach Mold & Tool completed a transaction under which its assets were acquired by Livonia, Michigan-based NYX, Inc., a global manufacturer of interior and technology solutions for the automotive industry. As exclusive advisor to Beach on the transaction, Amherst ran a robust process to find a buyer with the vision and resources to take over Beach’s newly-revitalized operations and preserve existing relationships with its customers and employees.