North American Manufacturing Company

Igniting growth around the world.

About North American Manufacturing

Founded in 1917, North American Manufacturing Company, Inc. (NAMCO) was a leading designer and manufacturer of advanced, high-temperature industrial combustion equipment, systems and solutions to customers in the world’s most heavily combustion-dependent industries, and among the most admired participants and best known brands in the global combustion industry. NAMCO was known for providing customers with the lowest emission technologies, the most fuel efficient equipment and the most precise and reliable control systems in the combustion industry, and for possessing the most comprehensive combustion knowledge base and understanding of the operating, performance and economic value tradeoffs that drive end-user combustion solution investment decisions. NAMCO was also the only manufacturer in the combustion industry capable of designing, engineering, installing and providing life-cycle maintenance and 24/7 emergency support of its equipment around the world.

Key Atmospherics at the Time of the Transaction

NAMCO’s shareholders were interested in a transaction that would accelerate the company’s growth, position the company to expand into new high-temperature combustion markets and geographic territories and create opportunities for middle management to advance personally and professionally. The Shareholders were also interested in achieving liquidity for estate planning and asset diversification considerations. Etkin & Company recognized the enormous global opportunity that NAMCO presented, while the other bankers that the shareholder’s interviewed universally viewed NAMCO as a cyclical manufacturer of mundane capital equipment deserving of a very modest EBITDA multiple.

The Etkin & Company Strategy

The marketing strategy that Etkin & Company developed and executed for NAMCO demonstrated that NAMCO possessed the global combustion industries’ best available control technologies (BACT) and was the best positioned company in the global combustion industry to replace decades old, inefficient and environmentally insensitive equipment that would have to be replaced to comply with increasingly more stringent NOX and CO2 emissions regulations around the world. The analysis also demonstrated that increasing energy costs, low interest rates and improved operating efficiency would provide customers with the greatest ROI and shortest payback period in history, and that consumers and end-user customers were increasingly favoring products produced by environmentally sensitive manufacturers. Etkin & Company’s strategy positioned NAMCO as a high-technology growth company with enormous future opportunity, as opposed to a stodgy, cyclical manufacturer of capital equipment, and generated interest in NAMCO from strategic and financial acquirers all around the world.

The Win

The $150+ million transaction that Etkin & Company developed and concluded for NAMCO’s shareholders with Paris, France based Groupe Fives achieved all of the shareholder’s objectives, and led to the creation of a new global combustion industry leader with products and technologies for virtually every high temperature combustion need or application.