CHICAGO— In November, GMM Nonstick Coatings was acquired by Showa Denko, KK, a Japanese chemicals conglomerate with more than $7 billion in sales. The deal left the company poised for future growth without having to drastically change the way it operates currently, said Ravin Gandhi, CEO and co-founder of GMM.
“We operate in a competitive global market, and SDK offers GMM huge advantages as we continue our rapid growth. We are excited to build a much larger business in the near term,” he said.
Gandhi recently spoke to HOMEWORLD BUSINESS® about what the acquisition means for the future of GMM.
HomeWorld Business: How long as the acquisition been in the works and how did you know that this would be the right fit for your company?
Ravin Gandhi: The deal was in the works for about six to seven months. They came to us when they started working on a growth plan called Project 20/20 and they were looking to transform their business. They did a lot of research in advance and I knew that this would be good for us when they kept jumping through hoops to try to make this deal happen.
HWB: What about SDK attracted you to continue with this acquisition?
Gandhi: I was interested in the relationships and the corporate strategy at SDK. They carved out an opportunity for us and they are really in it for the long haul. I knew that they could help us expand and grow faster than we could on our own.
HWB: Were there any deal-breakers that you were concerned about?
Gandhi: I didn’t want them to just come in and take over. I have seen that before and that would have been a deal-breaker. When that happens, it’s like people forget the values of the company and the entrepreneurial spirit. They came in and worked with us and it turns out, they didn’t want to change the identity of our company.
HWB: How did you communicate this to other officers in your company?
Gandhi: I disclosed everything to them. I told them what was going on and I wanted opinions. It’s absolutely the type of culture we have tried to build.
I have learned that I don’t have to keep everything a secret and everyone has a perspective that enhances mine. When you put things out there in the open, the employees appreciate it. For everyone, it was business as usual. And being able to talk to people about it gave me the confidence to go through with the deal.
HWB: What’s the next step now that
the deal is official?
Gandhi: We are planning to take a month or so to let things settle down and to show our clients that nothing is changing. After that, we plan to take a hard look at the market and can really put our foot down on the gas.
HWB: How do you feel this acquisition will help grow your business going forward?
Gandhi: The relationship we have with SDK will allow us to be truly strategic without having to let up for financial restraints and without having to figure out how we can optimize every dollar. We can just continue to innovate.
