Mergers & Acquisitions – Carveout Execution

Private Label Food Manufacturer | M&A Carveout

A multinational Fortune 500 private label food manufacturer amidst uncertain economic conditions and rising interest rates, the client needed to take swift action to transform its business and accelerate strategic growth.

Impact At A Glance

$2B

In overall deal value across the divestitutre

6+

Bidders to Manage

10+

Product Categories within the Divestiture

Project Overview

With over a decade of opportunistic acquisitions behind it, the client’s business boasted a diverse product portfolio of over 10 product categories that were no longer working to its advantage.

The client’s ever-ambitious growth targets were being stifled by a number of factors; including uneven business enterprise capabilities, overextended support resources, management challenges, and an overall lack of operational efficiencies.

Despite recent efforts to streamline the business, unfocused growth had put too much of a strain on the company’s financial position.

The Business Problem

The client needed to realign the organization to better fit its strategic goals and shepherd in its Next Generation Supply Chain. The client hired Liberty Advisor Group for M&A expertise to ensure the transformation would be a success:

• Increased clarity and strategic focus to deliver product category scale
• Reduced operating complexities costs across product groups
• Elimination of diseconomies of scale
• A redesigned operating model to facilitate growth and cost awareness
• Improved position to invest in both organic and inorganic growth opportunities

The Outcome

The client segmented its portfolio into two categories, Fast Growth products and Slow Growth products and divested from the slow growth categories. In divesting from the products that weren’t aligned with growth targets, resources could be refocused to support the products with greater earning potential. The client’s newfound capacity would be used to propel the high growth product categories into greater profitability, refocus the business through re-organization, and refactor enterprise capabilities via Next Generation Supply Chain investments.

Liberty worked hand in hand with the client to support their objectives through a set of pre- and post-close activities:

1.  Established the Office of the CIO to provide strategic pre-close technology support to the CIO

2.  Executed Separation Management and IT TSA Management

3. Developed a Cost Identification & Remediation Program to unlock trapped value

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