WHEN A PREMIUM APPROACH TO DIVESTMENT DELIVERS MAXIMUM VALUE

Overview

  • Listed global industrial conglomerate, Schneider Electric, was seeking an M&A advisor to lead the divestment of a non-core business unit, Schneider Electric Motion USA.
  • AlixPartners was engaged to run a full sale process for the industry-leading manufacturer of motion control solutions for automation equipment, building competitive tension to realize outstanding value for all stakeholders.

“AlixPartners adopted a ‘one-team’ partnering approach with us and provided round the clock support with AlixPartners doing a lot of in-depth analysis. Each person at AlixPartners really invested time to build our trust. They were able to synthesize our input to produce a very compelling CIM and help craft and articulate a robust growth strategy”
Eric Klein, General Manager at Schneider Electric Motion

THE SITUATION: industrial conglomerate seeking a non-core divestment

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 a non-core business unit, Schneider Electric Motion USA (“SEM”).

Schneider Electric Motion USA is a leading player in the global industrial automation market. With over 35 years of experience in designing and engineering customized motion products, it had built an excellent reputation as the pioneers of the integrated stepper motor.

The AlixPartners Industrials M&A team, with its deep industrial sector expertise, global M&A network and experience in delivering outstanding value for clients, was appointed in Quarter 1 2021 by Schneider Electric to lead the sales process. 

THE APPROACH: Positioning the target as a “premium” asset

The AlixPartners’ deal team provided high-quality, holistic M&A advisory services covering all phases of the transaction:

  1. Partnership with management teams: AlixPartners worked in partnership with the SEM management team to increase its understanding of the M&A process, build trust and enhanced management’s business plan to present a robust equity story.
  2. Meticulous preparation: A thorough preparation process focused on immediately getting under the skin of business, identifying any possible deal issues and subsequent remedies early. The development of a backable equity story reflected the growth potential of the business and how it could confidently deliver tomorrow’s value today.
  3. A premium approach to marketing and buyer outreach: High-quality, innovative marketing materials were produced to support an outreach process focused on articulating and positioning SEM as a “premium asset”. This catalyzed strong investor interest that helped develop significant competitive tension within the wide global buyer pool developed by the AlixPartners team.
  4. Comprehensive support in Due Diligence: AlixPartners provided hands-on support to the management team in preparation for and during the Due Diligence phase. This included building a virtual data room, developing and refining the business plan, and leading the overall Due Diligence process, including investor presentations.
  5. Negotiations: Operating within a tight but achievable timetable designed to build competitive tension, AlixPartners led buyer negotiations and conducted regular buyer check-ins to maintain focus on ‘selling’ the equity story. The team’s transparent approach established high levels of trust and engagement throughout the process, while maximizing value and certainty of deal completion.

THE SOLUTION: value maximized and an oustanding outcome for all stakeholders

AlixPartners ran a comprehensive, efficient and professional sales process across a five-month period, which resulted in a sale price achieved at the top-end of value expectations. Positive feedback has been received from the management team, Schneider Electric and buyers after achieving an outstanding result for all stakeholders.

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