MBO is the Result of Many Years of Loyalty to Parent Company
Industry: Manufacturer—Colour Pigments
Company Profile: Dominion Colour located in Canada, and its subsidiary companies in the U.S.,
UK and South America, manufacture, market and distribute a full range of coloured inorganic and organic pigments,
as well as pigment preparations and dispersions, specialty coatings and digital inks.
NewPoint’s Role: NewPoint was engaged by the management team to assess the feasibility of an MBO,
and then subsequently to develop an acquisition strategy, price range and capital structure. NewPoint led the negotiations with the vendor and lenders.
Transaction Snapshot: The owner of Dominion Colour, a Japanese corporation, had determined that it was time to divest its North American subsidiary.
The preferred buyer was management as it had shown loyalty to the parent company over many years.
This was despite the fact that alternative sale strategies would probably have resulted in a higher sale price.
NewPoint’s value add was to structure and negotiate a transaction that sufficiently met the needs of the vendor to avoid a more thorough auction
of the business.
