THE SITUATION: INDUSTRIAL CONGLOMERATE SEEKING TO COMPLETE COMPLEX CARVE-OUT OF A NON-CORE GLOBAL DIVISION
Schneider Electric, the listed global leader in the digital transformation of energy management and automation, operates across 115 countries and generates €25+ billion of revenue. Following a strategic review, it was seeking an M&A partner to lead the divestment of its global load bank division, which had been assessed as non-core.
Due to the level of integration across support functions and with the division leveraging shared sites, not transferring as part of the transaction, there were a number of complex carve-out considerations.
AlixPartners was engaged to run a full sales process of Schneider Electric’s global load banks business, which provides critical power testing devices to measure, test and improve the efficiency and effectiveness of power systems.
THE APPROACH: HIGH QUALITY MARKETING, METICULOUS PREPARATION AND HANDS-ON SUPPORT
The AlixPartners’ deal team provided M&A advisory services covering all phases:
- A compelling and thorough marketing approach: High-quality marketing materials were produced to demonstrate the division’s market leading position, its exposure to high-growth end markets and to proactively present the carve out transition roadmap. This ensured strong and concrete investor interest that enabled competitive tension to be generated.
- Meticulous carve out preparation: AlixPartners led a thorough preparation process focused on supporting management in preparing a business plan, assessing standalone requirements and constructing a multi-jurisdictional transition plan.
- Comprehensive support in due diligence: AlixPartners provided hands-on support to the management team, who only involved a limited number of colleagues in the process to prevent information leakage, during the due diligence phase.
- Negotiations: Through thorough preparation, a flexible approach and insightful selection of the most likely buyers, AlixPartners was able to build significant process momentum and competitive tension. The competitive tension was further leveraged in AlixPartners role in leading commercial negotiations to accelerate timelines and drive increased value.
THE SOLUTION: A SUCCESSFUL TRANSACTION CONCLUDED FOR ALL STAKEHOLDERS
AlixPartners ran a comprehensive, efficient and professional sales process that resulted in achieving a sale price at the top-end of value expectations.
Positive feedback has been received from Schneider Electric, the management team and the buyer after achieving an outstanding result for all stakeholders.