Overview
Established in 2001, Helical Solutions LLC (“Helical” or the “Company”) is a leading designer and manufacturer of high performance solid carbide end mills serving North America. Helical offers more than 3,000 SKUs of both standard and custom shapes, which allow its customers to increase quality while reducing machine time when compared to using conventional cutting tools.
Bigelow Assignment
The founder and majority shareholder, together with his daughter, also a senior executive in the business, were ready to transition their capital and roles with the Company. It was important to the shareholders that a new investor continue to invest in the Company and support the many growth opportunities that the management team wanted to pursue.
Challenges
Helical had experienced many years of industry-leading growth while earning superior profit margins. Would investors view this growth and margin profile as sustainable? Would investors be willing to support the capital investments required to leverage the many opportunities the Company had in front of it.
Could Bigelow find the best new majority investor who would inject the necessary resources and experience to help take Helical to the next level, at the same time allowing for the founder and CEO to transition out of the business satisfying both their personal and professional objectives?
“The Bigelow team was a major part of our success. Who would have dreamed a high school graduate with a $3,000 loan could end up a multi-millionaire. We could never have achieved the value that Bigelow created for Helical. We will never forget what you did for Helical and our family.” David McCulloch, Founder Helical Solutions LLC
“It started with a ‘someday’ conversation with Bigelow. Who knew we could attain our goals in such a short amount of time. Less than a year from introduction to closing. Our expectations were exceeded at every milestone of the transaction.” John Umlauf, CPA Umlauf & Dunn PC
Outcome
Bigelow, using its proprietary methodology, generated significant interest in the Company from both financial and strategic investors. 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 platform investment in the Harvey Tool Company, The Riverside Company, a global private equity firm focused on acquiring and investing in growing businesses, was selected as the best new majority investor in Helical.
Structured as an acquisition by Harvey Tool Company, Helical’s shareholders and continuing management team were given the opportunity to invest alongside Riverside in the combined entity. Since 1985, Harvey Tool has been providing specialty carbide end mills and cutting tools to the metalworking industry. The addition of Helical to Riverside’s private equity platform brings complementary manufacturing capabilities, new customers, and a larger diameter end mill product offering to Harvey Tool.