Albea Packaging

This Private Equity owned Packing manufacturing company based in Paris with sites in China, France, the USA and the UK was keen to purchase the plastics packaging business based in the UK, USA and China to improve scale

Objectives

• Successfully purchase the asset
• Separate the asset from existing company
• Integrate asset into existing organisation and achieve cost reductions

IT Buy Side Due Diligence

The initial scope of the project was to undertake a full IT Due Diligence of the target company, identifying risks, issues, and opportunities for cost savings. This was led by our associate and he did this by reviewing the data provided in the data room and undertaking a number of interviews with Key IT staff in the Sellers organisation. The report was included within the purchasers Banking case for the purchase.

Develop Transitional Service Arrangements

Once sale was agreed our associate worked with the purchasing Asset to develop required TSAs and with the seller to agree price and duration.

Separation and Integration

Our associate worked with the CIO of the purchasing company to develop a separation and integration programme to successfully exit the TSAs within the agreed 6 month period. This included separation and moving the ERP environment from the seller’s data centre into the buyers environment (SAP) and all associated services (e.g. Reporting and Email), negotiating license agreements with suppliers and defining and setting up the new IT organsations.

The Results

Purchase, separation and integration of the asset was completed within the 6 month TSA period. Cost savings of over £2M were achieved through achieving synergies and reducing IT costs