Manufacturer of Automotive Ancillary Products
Separation of a $1.8 Bn business unit from a Global Automotive ancillary manufacturer. Carveout delivered in 12 months leveraging big-bang approach, AD/Domain takeover with network separation technique while maintaining zero-trust/connectivity from Seller
Background
- B2B business with $1.8Bn in Revenue, 5+ Manufacturing Plants, Carve-out being purchased by a PE firm
- The key challenges preventing the company from achieving transaction value, and operations eefficiency goals were:
- New Co’s GDPR and TiSAX Compliance requirements
- Optimized IT Op Model, new IT skills to support SAP and PLM solutions
- Highly entangled ERP, MES, and PLM capabilities
- Costly TSAs with high multipliers for extensions (potential value erosion)
Approach
- Established separation management office to govern and oversee the TSA Exit Program
- Facilitated workshops with Seller and NewCo to develop end-state dispositions and separation strategy
- Coordinated Day 1 and on-going change management activities
- Performed extensive research and selection of new PLM and MES capabilities
- Developed and tested a pragmatic and non-disruptive migration approach to overcome co-mingled plants, sites, operations, data, and processes.
- Negotiated support from the Seller on the final migration approach
Results
- Carveout delivered on-time, and under budget
- Flawless execution with minimal disruption to the business
- Lean and rationalized IT footprint with optimized run costs
- Delivered right-sized and timely capabilities to support manufacturing, supply chain, engineering, procurement, and product management
- Reduced complexity for EDI and enterprise applications integration
