Turnaround & divestiture of a devalued subsidiary

CONTEXT

• The Division of a €10bn packaging group, in a phase of massive strategic redeployment, needs to carve out and divest one of its cosmetics packaging BUs, facing serious losses as a result of an abrupt decline in sales and overcapacity

OBJECTIVES

• To avoid the closure of the business (2 plants, 150p, sales of €40m), through immediate reorganization and a quick sale

TASKS

• Delegation of a new interim CEO and launch Vendor Due Diligence in parallel
• Review and control of main customer relationships to halt the rapid decline in sales
• Emergency launch of a quality program: control of wastage rates and service performance
• A realistic 2 year-plan to re-incentivize the team and pacify the social partners
• Construction of a consistent and qualified MOI and qualification of potential buyers (outside the ‘usual suspects’)

OUTCOME

• One of the 3 qualified potential buyers identified signed an SPA after 6 months, and closed the deal 3 months later
• Divestment completed on time, to the full satisfaction of shareholders and employees. Write-off avoided (est. €20m)