4X Impact to EBITA for Nonwoven Producer

To improve profitability by implementing Operations Excellence globally as well applying OPEX to new acquisitions for Nonwovens producer.

• Nonwoven fabric for Baby Diapers, Feminine Hygiene, Construction, etc.
• Private Equity firm had acquired Nonwovens company and was dissatisfied with Operating Performance – PE engaged Caravel to assess / benchmark performance relative to Best-in-Class.
• Sites acquired had originally been different companies and had a wide variety of standards and practices that were not consistent.
• Most sites were reactive with regards to Operating, Maintenance & Reliability Practices – Supply Chain planning was mixed.
• Client expectations were to standardize, develop a common operating platform and then turn that into a system that could be leveraged for more roll-up acquisitions was used to analyze and benchmark two acquisitions in North America and South America.
• Caravel OPEX Program was implemented at new sites.

Benchmark model site and pilot OPEX program created.

• All sites globally were assessed – more than $40 Million/yr. of profitability improvements were identified.
• A model site benchmark standard was established based on:
  • Technology
  • Standard Organization and Staffing Expectations
  • Roles, Responsibilities, and Expectations
  • Key Work Processes Expectations
• All plants were compared to the model site with considerations made for technology, age, condition of equipment, country, workforce capability, etc.
• Goals and Action Plans were developed for each site.
• Progress was tracked by the newly created OPEX organization.
• Caravel OPEX Pilot Program was implemented at four sites.
• The internal team was trained to roll out to other sites.
• Caravel was engaged on two new acquisitions in North America and South America with Caravel OPEX Program as benchmark basis.

EBITDA IMPACT was $40 MILLION + / yr.

• Operations Excellence Framework and Best Practices implemented across internal sites as well as new acquisitions.
• Company and new acquisition roll-ups were ultimately sold by private equity.
• Benefits to Private Equity were 3-4X impact to EBITDA.