Restructuring of a $50+ billion chemicals giant

Situation

A Fortune 100 chemicals company was undertaking a complex restructuring of its business including carve-out and sale of non-core businesses,  and reorganizing S&OP functions.

 

Approach

• Carved out a separate business entity from the business portfolio within the client’s portfolio, realigning the business and resources to better serve multi-national CPGs

• Centralized the client’s raw material  purchasing for the then newly acquired a speciality chemical business within the client’s portfolio, including risk mitigation and cost reduction

 

Results

• Transformed $1.3B Portfolio Consumer & Industrial Business into market-focused Home, Industrial & Institutional, and Personal Care Solutions business

• Developed the transformation strategy and vision

• Reconfigured the global business, technology, innovation plan, products, SKU’s, markets, people, assets, SAP, and accounting systems

• Sold the client’s portfolio company for 10x multiple along with another portfolio company for 8x multiple, contributing $2B in cash

• Worked with each specialty business at each plant location to reconfigure their business processes, people and work flow to garner more than $580MM in savings

• Implemented specific risk mitigation strategies across the board for all specialty businesses contributing $180MM in savings in the first year alone