Capstone Strategic announced today that Lintec USA Holding, Inc. has acquired VDI, LLC (DBA Vacuum Depositing). The acquisition brings together complementary technology and broad research and development capabilities that will allow for expansion in the industrial films market.

Capstone Strategic, Inc. (Capstone) announced today that Lintec USA Holding, Inc. (Lintec USA) has acquired VDI, LLC (VDI). Lintec USA will leverage VDI’s capabilities with its current assets to bolster its marketplace position. Capstone advised the acquirer on this transaction.

Lintec USA is a global leader in manufacturing and selling highly engineered, multilayer films for energy, automotive, safety, security, and architectural applications and the owner of Madico, Inc. (Madico), which manufactures window and specialty films. Lintec USA and Madico are owned by Lintec Corporation (Lintec), a publicly-held company traded on the Tokyo Stock Exchange. Founded in 1971, VDI is headquartered in Louisville, Kentucky and is a custom roll-to-roll metallizer of evaporative, sputtered and dielectric coatings.

The acquisition will allow Lintec USA to accelerate its growth and strengthen its position in the industrial market by adding a complementary sputtering capability and a spectrally select product line. Lintec USA will also apply Lintec’s research and development, marketing, and distribution strengths to further expand VDI’s capabilities. The transaction is expected to benefit all parties as a result of leveraging VDI’s metalizing capability with parent company Lintec’s metalizing products.

Using our proprietary process, the Roadmap to Acquisitions, Capstone served as a third party M&A advisor and facilitated the acquisition between Lintec USA and VDI. Capstone guided Lintec USA through the process from initial strategy development to prospect identification and negotiations to papering and executing the deal.

“Throughout the acquisition process, the Capstone team was instrumental as our guide, sounding board, and stabilizing force as negotiations proceeded. We jointly developed our proactive growth through acquisition program and then Capstone approached owners and assisted as we prioritized candidates and resources. We leveraged Capstone’s focus and experience in the privately-held, not-for-sale acquisition world as we worked through the journey and ultimately attained our objective. I’m confident that the deal would not have been completed without their insight and involvement,” noted Paul Moynihan, CFO of Madico.

“Throughout every step of the process, Capstone worked diligently to address key challenges, and, most importantly, actively listened to uncover important issues on both sides. They certainly helped forge a positive relationship between our organizations and I’m excited about our opportunities to grow together in the future,” commented David Bryant, Owner and President of VDI.

“The team stayed true to the strategic external growth objectives established, and as a result of the acquisition, Lintec and Madico will glean benefits that will help them expand for years to come,” said Capstone Managing Director John Dearing.

Capstone Guides Acquisition of VDI by Japan's Lintec USA

About Capstone

Capstone Strategic, Inc. is a management consulting firm located outside of Washington DC specializing in corporate growth strategies, primarily mergers and acquisitions for the middle market. Founded in 1995 by CEO David Braun, Capstone has facilitated over $1 billion of successful transactions in a wide variety of manufacturing and service industries. Capstone utilizes a proprietary process, “The Roadmap to Acquisitions,” to provide tailored services to clients in a broad range of domestic and international markets. Learn more about Capstone online at http://www.CapstoneStrategic.com.

About Lintec USA and Madico

Lintec USA Holding, Inc. (Lintec USA) is a subsidiary of Lintec Corporation (Lintec), a publicly-held company traded on the Tokyo Stock Exchange and a recognized technical leader in adhesive chemistries. Madico, Inc. (Madico), is owned by Lintec USA and is a global leader in the coating, laminating, and converting of flexible films in wide width, roll-to-roll format. Its products are multilayered, engineered films primarily targeting applications in Window Films and Specialty Films. For more information visit  http://www.madico.com.

About VDI, LLC.

Founded in 1971, VDI, LLC (VDI) is a custom roll-to-roll metallizer of evaporative, sputtered and dielectric coatings. Its primary business and production site is in Louisville Kentucky. The company is respected throughout the industry as a leader in both quality, innovation and customer service.

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Japan’s Suntory is making a big investment in buying the makers of Jim Beam for $13.6 billion. Jim Beam is a highly branded U.S. company and this deal is second largest acquisition of a U.S. company by a Japanese buyer.  The underlying concept is the folks in Japan have recognized their domestic markets are not growing and they see the U.S. as a higher growth market with more opportunity to expand their product and become a significant player.

If we take a look at the numbers, the acquisition purchase price is 20X EBTDA. That’s a big number and if Suntory can’t figure out how to cut costs, and I don’t see a lot of cost saving benefits, or grow the business, they are looking at about a five percent return on their money. So this is not a huge investment return unless Suntory gets better growth out of this business.

This acquisition also demonstrates the power of moving quickly and decisively. It’s reported that this transaction came together in under 60 days. The ability to move quickly is an advantage. Suntory had confidence that acquiring Beam would place them in a market they wanted to pursue. They didn’t hesitate. This is why I emphasize a demand-driven, markets first approach when pursuing acquisition.

Before speaking with acquisition prospects, find the right markets so you have the confidence and conviction to move forward in a transaction rather than contemplating each opportunity for an extended period of time. If you wait too long in your M&A discussions with your prospect, they may lose interest or be uncertain about the deal. On the other hand, speed assures the seller of your commitment and can help seal the deal.

Photo Credit: Andrew* via Compfight cc

January 13, 2014 (McLean, VA) – Capstone Strategic, Inc., a leading management consulting firm specializing in strategic growth, announced today that Michelman and Maruyoshi Chemical have entered into a joint venture, Maruyoshi Michelman Co. Ltd.

Michelman is a global developer of water-based coatings headquartered in Cincinnati, OH. Maruyoshi is a specialty waterborne polyolefin emulsions and chemical trading company located in Gifu, Japan. Capstone advised Michelman on this transaction and has supported Michelman on numerous other transactions since 1995.

The joint venture will expand Michelman’s polyolefin emulsions business in the Japanese market while providing customers with new state-of-the-art solutions. Michelman’s team will provide strategic market development capabilities and experienced sales and technical support.

“We have long admired Maruyoshi for the innovative solutions they bring to the market,” said Mr. Steve Shifman, President and CEO of Michelman. “They listen closely to their customer’s needs, they’re agile and responsive, and focus on developing deep, collaborative relationships that result in custom, technically superior formulations. Bringing our two companies together allows us to offer Japanese customers a rare combination of talent.”

Capstone’s Managing Director, Mr. John Dearing, commented: “Once we evaluated the strategic fit, Capstone facilitated the successful ownership conversations that resulted in the right solution for the Michelman and Maruyoshi partnership. As a result of this transaction, new doors will open in Japan and globally for both organizations.  Michelman’s leadership team was able to achieve their strategic growth objective of strengthening their position in a targeted geography while leveraging their infrastructure and technological capabilities through this joint venture. We are proud of Capstone’s longstanding partnership with Michelman.”

Mr. Bob Poletti, Michleman’s Corporate Development Officer added, “Given the excellent long-term support Michelman has received from Capstone, we are already pursuing additional external growth initiatives together.”

About Michelman, Inc.

Michelman is a global developer of water-based barrier and functional coatings for flexible film packaging, paperboard, and corrugated cartons; and water-based surface modifiers, additives and polymers for numerous industries including wood and floor care, industrial coatings, inks, fibers, composites, and construction products. Michelman serves its multinational and regional customers with production facilities in the U.S., Europe and Singapore, and a worldwide network of highly trained field technical support personnel.

About Capstone Strategic, Inc.

Capstone is a management consulting firm located outside of Washington DC specializing in corporate growth strategies, primarily Mergers & Acquisitions. Founded in 1995 by CEO David Braun, Capstone has facilitated over $1 billion of successful transactions in a wide variety of manufacturing and service industries. Capstone utilizes a proprietary process to provide tailored services to clients in a broad range of domestic and international markets.  For more information about Capstone and its growth strategy and advisory capabilities, please visit www.CapstoneStrategic.com. Capstone can also be reached at 703.854.1910 or Growth@CapstoneStrategic.com

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