Samuel J. Heyman
Encyclopedia
Samuel J. Heyman was an American businessman, corporate raider, hedge fund
owner, and philanthropist
. He was best known for his longtime chairmanship of the GAF Materials Corporation
and International Specialty Products.
to Lazarus and Annette Heyman. His father was a real estate developer.
As an undergraduate at Yale College
, Heyman was a regionally-ranked varsity tennis player and member of Phi Beta Kappa. After graduating from Yale in 1960, he attended Harvard Law School
, graduating in 1963. After graduation, he became an attorney for the US Department of Justice during the Kennedy Administration, rising to become Chief Assistant United States Attorney
for Connecticut. In 1968, after the death of his father, he took over his family's Connecticut-based real estate firm, Heyman Properties. Under his leadership, the company became one of New England's largest commercial real estate developers.
Heyman married his wife, Ronnie Feuerstein Heyman, in 1970. Together, they had four children and nine grandchildren. Heyman and his wife owned a large collection of modern art, including works by Alberto Giacometti
, Jackson Pollock
, and Mark Rothko
.
, pursued the chairmanship of the then-troubled chemical and roofing materials producer. Rebuffed, he launched a proxy fight
against the company's management that ended with shareholders voting to oust the board and install Heyman as CEO and chairman. At the time, Barron's called this development "one of the most striking achievements in the annals of corporate finance."
Within a year of Heyman's takeover, GAF's performance quickly improved thanks to a major cost-cutting initiative and increased research and development outlays. Today, it is the largest supplier of residential roofing materials in North America. In 1987, Heyman took GAF private despite an initial rebuff from shareholders.
During the late 1980s, Heyman attempted hostile takeovers of Union Carbide
and Borg-Warner in an effort to increase the scale of GAF's chemical operations. Despite the failures of these takeovers, they resulted in large profits for GAF through its sales of stock in the targeted firms. Many of Heyman's takeover attempts were funded with debt from Drexel Burnham Lambert
and Chase Manhattan Bank
. In 1989, Heyman took GAF private through a leveraged buyout
.
Two years later, Heyman spun off GAF's chemical business into a separate company, International Specialty Products. He spent much of the 1990s with the day-to-day chairmanship of the company as his primary business focus. In the late 1990s, GAF faced lawsuits related to its former asbestos business. Heyman unsuccessfully lobbied Congress to change the law governing asbestos litigation and eliminate punitive damages
.
Heyman returned to corporate takeovers in 2000, when he was involved in unsuccessful takeover attempts on Dexter Chemical Corporation
, the London Stock Exchange
, and Hercules Corporation. In 2007, during Airline Partners Australia
's attempted takeover of Qantas
, his hedge fund, Heyman Investment Associates declined to accept Airline Partners Australia's offer for his shares in the airline. Much of the bidding team blamed Heyman for the takeover's ultimate failure.
, a nonprofit that encourages undergraduates to pursue careers in public service. He endowed the Heyman Fellowship Program at Harvard Law School
, Yale Law School
, Columbia Law School
, and Seton Hall School of Law to assist graduates with careers in federal government. He also established The Samuel and Ronnie Heyman Center on Corporate Governance
at the Benjamin N. Cardozo School of Law
. Heyman won the Presidential Citizens Medal
in 2008 for his charity work.
Samuel Heyman died on November 7, 2009 at age 70 due to complications from open heart surgery
.
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
owner, and philanthropist
Philanthropist
A philanthropist is someone who engages in philanthropy; that is, someone who donates his or her time, money, and/or reputation to charitable causes...
. He was best known for his longtime chairmanship of the GAF Materials Corporation
GAF Materials Corporation
GAF Materials Corporation is a company based in Wayne, New Jersey, that has roots dating back to the late 19th century. The GAF acronym stands for General Aniline & Film. The company has historically been primarily focused on manufacturing of roofing materials for residential and commercial...
and International Specialty Products.
Early life and family
Heyman was born in Danbury, ConnecticutDanbury, Connecticut
Danbury is a city in northern Fairfield County, Connecticut, United States. It had population at the 2010 census of 80,893. Danbury is the fourth largest city in Fairfield County and is the seventh largest city in Connecticut....
to Lazarus and Annette Heyman. His father was a real estate developer.
As an undergraduate at Yale College
Yale College
Yale College was the official name of Yale University from 1718 to 1887. The name now refers to the undergraduate part of the university. Each undergraduate student is assigned to one of 12 residential colleges.-Residential colleges:...
, Heyman was a regionally-ranked varsity tennis player and member of Phi Beta Kappa. After graduating from Yale in 1960, he attended Harvard Law School
Harvard Law School
Harvard Law School is one of the professional graduate schools of Harvard University. Located in Cambridge, Massachusetts, it is the oldest continually-operating law school in the United States and is home to the largest academic law library in the world. The school is routinely ranked by the U.S...
, graduating in 1963. After graduation, he became an attorney for the US Department of Justice during the Kennedy Administration, rising to become Chief Assistant United States Attorney
United States Attorney
United States Attorneys represent the United States federal government in United States district court and United States court of appeals. There are 93 U.S. Attorneys stationed throughout the United States, Puerto Rico, the U.S. Virgin Islands, Guam, and the Northern Mariana Islands...
for Connecticut. In 1968, after the death of his father, he took over his family's Connecticut-based real estate firm, Heyman Properties. Under his leadership, the company became one of New England's largest commercial real estate developers.
Heyman married his wife, Ronnie Feuerstein Heyman, in 1970. Together, they had four children and nine grandchildren. Heyman and his wife owned a large collection of modern art, including works by Alberto Giacometti
Alberto Giacometti
Alberto Giacometti was a Swiss sculptor, painter, draughtsman, and printmaker.Alberto Giacometti was born in the canton Graubünden's southerly alpine valley Val Bregaglia and came from an artistic background; his father, Giovanni, was a well-known post-Impressionist painter...
, Jackson Pollock
Jackson Pollock
Paul Jackson Pollock , known as Jackson Pollock, was an influential American painter and a major figure in the abstract expressionist movement. During his lifetime, Pollock enjoyed considerable fame and notoriety. He was regarded as a mostly reclusive artist. He had a volatile personality, and...
, and Mark Rothko
Mark Rothko
Mark Rothko, born Marcus Rothkowitz , was a Russian-born American painter. He is classified as an abstract expressionist, although he himself rejected this label, and even resisted classification as an "abstract painter".- Childhood :Mark Rothko was born in Dvinsk, Vitebsk Province, Russian...
.
Business career
In 1982, Heyman, a major activist investor in the GAF Materials CorporationGAF Materials Corporation
GAF Materials Corporation is a company based in Wayne, New Jersey, that has roots dating back to the late 19th century. The GAF acronym stands for General Aniline & Film. The company has historically been primarily focused on manufacturing of roofing materials for residential and commercial...
, pursued the chairmanship of the then-troubled chemical and roofing materials producer. Rebuffed, he launched a proxy fight
Proxy fight
A proxy fight or proxy battle is an event that may occur when a corporation's stockholders develop opposition to some aspect of the corporate governance, often focusing on directorial and management positions. Corporate activists may attempt to persuade shareholders to use their proxy votes A proxy...
against the company's management that ended with shareholders voting to oust the board and install Heyman as CEO and chairman. At the time, Barron's called this development "one of the most striking achievements in the annals of corporate finance."
Within a year of Heyman's takeover, GAF's performance quickly improved thanks to a major cost-cutting initiative and increased research and development outlays. Today, it is the largest supplier of residential roofing materials in North America. In 1987, Heyman took GAF private despite an initial rebuff from shareholders.
During the late 1980s, Heyman attempted hostile takeovers of Union Carbide
Union Carbide
Union Carbide Corporation is a wholly owned subsidiary of The Dow Chemical Company. It currently employs more than 2,400 people. Union Carbide primarily produces chemicals and polymers that undergo one or more further conversions by customers before reaching consumers. Some are high-volume...
and Borg-Warner in an effort to increase the scale of GAF's chemical operations. Despite the failures of these takeovers, they resulted in large profits for GAF through its sales of stock in the targeted firms. Many of Heyman's takeover attempts were funded with debt from Drexel Burnham Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
and Chase Manhattan Bank
Chase Manhattan Bank
JPMorgan Chase Bank, N.A., doing business as Chase, is a national bank that constitutes the consumer and commercial banking subsidiary of financial services firm JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000...
. In 1989, Heyman took GAF private through a leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
.
Two years later, Heyman spun off GAF's chemical business into a separate company, International Specialty Products. He spent much of the 1990s with the day-to-day chairmanship of the company as his primary business focus. In the late 1990s, GAF faced lawsuits related to its former asbestos business. Heyman unsuccessfully lobbied Congress to change the law governing asbestos litigation and eliminate punitive damages
Punitive damages
Punitive damages or exemplary damages are damages intended to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit...
.
Heyman returned to corporate takeovers in 2000, when he was involved in unsuccessful takeover attempts on Dexter Chemical Corporation
Life Technologies
Life Technologies is a global biotechnology company headquartered in Carlsbad, California. It possesses a portfolio of more than 9 million genetic research assays and custom solutions...
, the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
, and Hercules Corporation. In 2007, during Airline Partners Australia
Airline Partners Australia
Airline Partners Australia is a consortium that made a A$5.45 per share takeover offer for Australian airline Qantas in December 2006. The takeover offer received the endorsement of the Qantas board in the absence of a better offer, however the proposed takeover failed to gain the required level...
's attempted takeover of Qantas
Qantas
Qantas Airways Limited is the flag carrier of Australia. The name was originally "QANTAS", an initialism for "Queensland and Northern Territory Aerial Services". Nicknamed "The Flying Kangaroo", the airline is based in Sydney, with its main hub at Sydney Airport...
, his hedge fund, Heyman Investment Associates declined to accept Airline Partners Australia's offer for his shares in the airline. Much of the bidding team blamed Heyman for the takeover's ultimate failure.
Charity work
Heyman had a diverse array of philanthropic interests. Most notably, he founded and served as chairman of the Washington-based Partnership for Public ServicePartnership for Public Service
The Partnership for Public Service is a nonprofit, nonpartisan organization based in Washington, D.C. whose mission is to inspire a new generation of civil servants and transform the way government works....
, a nonprofit that encourages undergraduates to pursue careers in public service. He endowed the Heyman Fellowship Program at Harvard Law School
Harvard Law School
Harvard Law School is one of the professional graduate schools of Harvard University. Located in Cambridge, Massachusetts, it is the oldest continually-operating law school in the United States and is home to the largest academic law library in the world. The school is routinely ranked by the U.S...
, Yale Law School
Yale Law School
Yale Law School, or YLS, is the law school of Yale University in New Haven, Connecticut, United States. Established in 1824, it offers the J.D., LL.M., J.S.D. and M.S.L. degrees in law. It also hosts visiting scholars, visiting researchers and a number of legal research centers...
, Columbia Law School
Columbia Law School
Columbia Law School, founded in 1858, is one of the oldest and most prestigious law schools in the United States. A member of the Ivy League, Columbia Law School is one of the professional graduate schools of Columbia University in New York City. It offers the J.D., LL.M., and J.S.D. degrees in...
, and Seton Hall School of Law to assist graduates with careers in federal government. He also established The Samuel and Ronnie Heyman Center on Corporate Governance
The Samuel and Ronnie Heyman Center on Corporate Governance
The Samuel and Ronnie Heyman Center on Corporate Governance is an academic research center whose mission is to raise public and academic awareness of current corporate and securities law issues, to produce and disseminate research on a broad range of topics in these fields, and to educate and train...
at the Benjamin N. Cardozo School of Law
Benjamin N. Cardozo School of Law
The Benjamin N. Cardozo School of Law is the law school of Yeshiva University, located in the New York City borough of Manhattan. The school is named for Supreme Court Justice Benjamin N. Cardozo. Cardozo's success as a young school has been remarkable, leading some to characterize Cardozo as a...
. Heyman won the Presidential Citizens Medal
Presidential Citizens Medal
The Presidential Citizens Medal is the second highest civilian award in the United States, second only to the Presidential Medal of Freedom. It is awarded by the President of the United States, and may be given posthumously....
in 2008 for his charity work.
Samuel Heyman died on November 7, 2009 at age 70 due to complications from open heart surgery
Open Heart Surgery
Open Heart Surgery was released on August 8, 2000 by rock band Virginwool. The band signed to Breaking/Atlantic Records after initially beginning signed to Universal Records. The album was produced and mixed by Brad Wood....
.