$52M of Savings Captured Within 3 Years of Acquisition

$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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