Photo by Heather Ainsworth for NY Times In November, venerable the tabletop brand Oneida was bought by Monomoy Capital Partners in what some thought to be the latest turn in the company’s slow spiral downward. But, if you are to listen closely, just the opposite might be emerging. The New York Times has been following the deal and in their Deal Book section yesterday detailed the transaction and where it might truly be headed.
Monomoy Capital Partners, a private equity firm, bought Oneida from a group of hedge funds. The new owner wants to expand, rather than decimate its operations. It is a simple but lofty goal for a company that has been slowly recovering since its bankruptcy in 2006.
“This is a meaningful investment for us,” said Daniel Collin, the Monomoy partner who led the deal to acquire Oneida told The Times. “After years of being undercapitalized, Oneida finally has a partner willing to invest in its future.”
“A lot of times, these boring, stodgy businesses can generate consistent cash flow, and that’s important to a private equity buyer,” said Eric Hollowaty, an equity research analyst with Stephens Inc. said in the same Times article. “I don’t think many private equity firms are going to be motivated by saving an age-old brand if they don’t think they can make a handsome return.” Paul E. Gebhardt, senior vice president of design at Oneida, is descended from the company’s founder. Photo by Heather Ainsworth. Oneida may ultimately find that its greatest value lie in the value of its brand and its name. Here at TabletopJournal, we spend a lot of time about the value of brands, about their positioning, and about the trust that develops between brands and their customers. The Oneida story seems to have moved to a new chapter and while the finish to the story is not known, many – including those of us at TabletopJournal – think that it just might be that for the brand called Oneida, it’s best days may lie ahead.
To read the entire New York Times article, go here:
http://dealbook.nytimes.com/2012/01/05/private-equity-firm-sees-a-future-in-flatware/
