Client Story

When a complex merger needs precise execution

May 2017

A diversified global manufacturer needed help acquiring and integrating a specialty products business. This would be complex, two-stage acquisition: first, the parent company would acquire the target. Then, shortly after closing the deal, the parent would carve out a portion of the business and transfer ownership to one of its divisions. The combined business would represent $8 billion in annual revenue, multiple manufacturing plants, and thousands of employees in more than two dozen countries. Targeting sizable business combination synergies, the division’s senior leadership asked AlixPartners to help get the deal done, integrate the acquisition, and hit the savings target.

A detailed plan and effective implementation keep the deal—and the company—on track

Knowing the importance of effective acquisition planning, we went to work well before stage one of the deal to ensure that the carve-out and subsequent integration proceeded smoothly, with no interruption of day-to-day business. Prior to closing, we deployed a clean-room approach to managing confidential data. We drew up action plans to promote business continuity across the entire division and set target dates for achieving key integration objectives.

Our team then identified the areas with the most potential for savings gains—including manufacturing, purchasing, and shared services and developed plans for capturing those savings. We also identified opportunities for growth and determined which functions were the highest priorities for integration and reorganization. Among these was sales. There, we proposed a reorganization and the implementation of consistent pricing across the company’s entire product line. We deployed a small and highly experienced project team to support company personnel in driving delivery of these plans and recommendations.

When it really matters

The benefits of the acquisition have far exceeded the client’s expectations. With our help, the company achieved full integration within six months of day one, hit every one of its target dates, and captured most the projected two-year savings well ahead of schedule. Actual final savings surpassed targets by 30%. The closing, carve-out, and integration caused no interruptions to the business, and the two organizations are now fully integrated.