M&A Case Study: Sale of Electronic Components Manufacturer for $61.4M
Company
NWL Inc., a leading manufacturer of transformers, inductors, capacitors, and power supplies for industrial, commercial, military, and research applications. In August 2024, American Superconductor Corporation (AMSC) purchased NWL for $61.4 million.
Position
Chief Financial Officer, Controller, Transactional Accountant
Challenge
Since its founding in the 1930s, NWL, Inc. established itself as a leading manufacturer. The owners made a strategic decision to sell the company while guaranteeing that its strong legacy continued under the proper stewardship.
Work Performed
In preparation for the sale, we provided pre-sales support to ensure reliable, audit-ready financial statements and a Quality of Earnings report. We provided complete sell-side support, as well as providing support for the buyer, AMSC.
While in the sale process, we followed through with Due Diligence, managing data room requests. We liaised with banks and attorneys, in coordination with representatives from both NWL and AMSC. We also established a structure for closing cash movement and helped execute the sale.
In the post-acquisition phase, we provided ongoing CFO support and training of new staff, as well as continuing with transactional accounting support. We converted and conformed to the AMSC general ledger and fiscal year and ensured compliance required by a public company. We also worked collaboratively with tax accountants to properly close out the NWL entity. Our coordination with external auditors and all parties made for a smooth transition to the new ownership.
Outcome
NWL was successfully sold to AMSC on August 1, 2024. AMSC reported in an article on Yahoo Finance that “the addition of NWL to AMSC’s Grid solutions is expected to accelerate our ability to achieve our goal of sustainable profitability and expand our offering of proprietary power products in the industrial and military sectors.”