$52M of Savings Captured Within 3 Years of Acquisition

Perform due diligence for a chemical company.

• Perform Due diligence for a chemical company looking to expand its portfolio of adhesives into the pine chemicals space.
• Nine plants globally refining Crude Tall Oil with downstream. polymerization to make Rosins, Fatty Acids, Dimers, and Polymers.
• Identify Key Risks and Upside Synergies.
• GO / NO GO Key Decision points.
• Operations, EHS, Process Technology, etc.
• Contribute to Acquisition Financing package.

Due Diligence Package and Implementation Plan

• Visited all global sites.
• Seller allowed 1 day at each site
• Due diligence package developed including all Site Material Balances and site-specific P&L’s developed in a very short period allowing for different scenarios.
• 3-5 year Implementation Plan including risk mitigation.

Impact: More than $45M/ yr. within the first 2 years; $52M/ yr. saved within 3 years of acquisition.

• Evaluation of Process Hazard Analysis identified key concerns about reducing the risk of spills and the need to improve tank storage.
• Operating Performance was relatively good but significant opportunities still exist beyond existing improvement plans.
• Scenario modeling enabled various options to reduce the downgrading of material.
• Feed composition identified as a key opportunity to improve yield.
• Technology Improvements supported by Caravel SME’s.
• Recycle of low-value products to increase yield.
• Improvements were made in:
  • Distillation Automation
  • Wastewater Quality
  • Maintenance & Reliability
• The client’s goal was to capture $35-$45 Million within 3 years of acquisition and 3-year results surpassed the goal by $7 Million.