Overview
Founded in 1982, EPTAM Plastics, Ltd. (“EPTAM”) is the leading precision-machined plastic fabricator targeting demanding applications. EPTAM’s proprietary manufacturing capabilities provide the highest-quality, tightest-tolerance plastic parts for mission-critical applications. The Company supplies custom solutions to leaders in the aerospace & defense, semiconductor, medical, industrial, and power generation industries.
Bigelow Assignment
Proactively seek out a new investor that would satisfy the personal and professional objectives of the EPTAM shareholders.
Challenges
As a second generation family-owned business with a strong culture of community engagement, the shareholders of EPTAM were deeply concerned about all the stakeholders surrounding the company.
Certain family shareholders were looking to transition out of their roles in the business, while others were interested in maintaining an ownership position. At the same time, the President was interested in increasing his stake as well as bringing more of his management team into the ownership of the business. Most importantly, all constituents wanted the founder to be able to continue coming to the company every day.
Could Bigelow find an investor that would be sensitive to the different personal and professional objectives of the shareholders? Could Bigelow find a partner that would bring the experience and resources required to help the management team take EPTAM to the next level? Could Bigelow achieve a premium valuation for the business at the same time satisfying all of the non-financial requirements for this to be considered a successful transaction?
“I can’t imagine a private company owner using anyone but Bigelow to advise them. It was an incredible journey and you have all become true friends. Thank you for the freedom you have provided for me, my family and our Company.” Hali Dearborn Owner, VP of Corporate Responsibility EPTAM Plastics, Ltd.
“I was skeptical that Bigelow could find a partner that would really satisfy the needs of the Dearborn Family and also put the Company in a better position to grow and prosper. I was dead wrong. We had multiple qualified investors and were able to select the one that fit us best.” Jeff Hollinger, President EPTAM Plastics, Ltd.
Outcome
Bigelow, using its proprietary methodology, generated significant interest in the opportunity. Leveraging both quantitative and qualitative assessment tools to rapidly identify the most compelled investors, Bigelow was able to present an array of world class investors to the shareholders.
Based on a recent successful investment in a similar business, a dynamic and value-add operating partner, with a long history of partnering with family owned businesses, New Heritage Capital, LLC (“Heritage”), a Boston-based private investment firm, was selected by the shareholders to be the next majority shareholder for the Company.
Heritage structured a management-led recapitalization which provided liquidity to the family of the founder. EPTAM’s existing management team invested alongside Heritage and certain existing shareholders in the recapitalization. The Heritage transaction provided the company with capital for growth, as well as a partner deeply experienced in providing strategic guidance to growing businesses.