In an international carve-out transaction, PAI Partners agreed to acquire an array of category-leading beverage brands to create a new company, Tropicana Brands Group. Without an operating company into which to integrate the business, PAI was initially reliant on the seller’s separation efforts. However, neither the seller nor the transitioning management team could truly advocate for the new business during this critical time due to their continued obligations to the seller as employees. The new company needed an experienced advocate, knowledgeable in carve-outs, to act in its best interest during this decisive time. AlixPartners was hired to do just this.
AlixPartners deployed a pragmatic approach that identified the capability gaps and interdependencies that emerged from the deal perimeter. We launched initiatives to address these issues and led critical negotiations with the seller to scope and price required transitional services. After close, AlixPartners managed the delivery of these services while simultaneously reducing the company’s dependence on them through the accelerated development of required stand-alone capabilities. Time was of the essence, as many services were not designed for a smaller business and were very expensive.
As a result of AlixPartners’ involvement, Tropicana Brands Group operated without disruption as it was separated from the seller. The rapid and focused execution by AlixPartners of plans to exit the transitional service agreements (TSA) enabled their early exit and saved more than $25 million. In addition, more than $100 million of improvement initiatives were identified to strengthen performance and accelerate the investment case.
$25mn
savings on early exit from parent company
$100-150mn
EDITDA improvements in 86 days
“The deal was as smooth as it could be thanks to your dedication, responsiveness, and super pragmatic approach.”
