Partnering with a PE Firm and Management of their Portfolio Company to Identify the Springboard for Growth
Client Background & Challenges
A private equity firm acquired a mid-market, global supplier of industrial fluids and chemical management services knowing it would serve as an excellent platform for growth. SSA & Company (SSA) partnered with the PE firm and management of the portfolio company to guide them through their first growth initiative: the acquisition of another mid-market, global manufacturer of specialty fluids for the metal working industry. SSA’s three-year partnership with PE firm and Management Team resulted in a successfully executed roll-up strategy for the specialty chemical platform business.
Approach & Analysis
Initially, a team of consultants were involved in designing and implementing the commercial and operational improvement program for the platform business, focused on asset optimization, SG&A optimization, and supply chain consolidation.
Upon first acquisition, SSA performed target assessment and Operational Due Diligence, Integration Planning and PMI, and supported their lender presentation. SSA worked hand in hand with the merging companies planning all aspects of the integration, including preparation for a seamless Day One.
Results & Value to Client
SSA’s engagement with the PE firm yielded valuable results:
- EBITDA benefits of $26-$34M and $35M in a one-time cash release.
- Captured $25-$33M in synergies between merging companies.
- Achieved budgeted EBITDA despite 30% reduction in volumes.
- SG&A reduction of 20%+.
Related Capabilities and Expertise:
More Client Impact Stories:
- Optimizing the Order to Cash processes of a $300 million education company in order to contain A/R
- Leveraging Operations Data and Analytics to Optimize the Global IT Infrastructure of a Multi-Billion Insurance Firm
- Driving Performance across the Enterprise for a $1B Truck and Trailer Parts Retailer
- Inventory Reduction and Cash Flow Improvement at a $1.2B Automotive Company
- Reducing Scrap at an Automotive Parts Manufacturer