$52M of Savings Captured Within 3 Years of Acquisition
01 | Challenge
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.
02 | Solution
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.
03 | Results
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.
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