4X Impact to EBITA for Nonwoven Producer
01 | Challenge
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.
02 | Solution
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:
- 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.
03 | Results
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.
Download a copy of our case studies for review.