Chemicals Footprint Strategy

For a global chemicals company, Quantum developed its North American footprint strategy – specifically to address if plants could be consolidated. The Quantum team worked collaboratively with the client to assess demand and capacity by various chemistries at the reactor level at each plant, under various business scenarios. Quantum developed several footprint scenarios that evaluated capital investments, reactor utilizations, tolling considerations, tank capacities, infrastructure investments, operating costs, freight considerations, regulatory considerations and customer impact. Quantum calculated CapEx, OpEX and ROI under each scenario, and a recommended path forward.

Chemicals – Plant Consolidation Project Management

For a global chemicals company, Quantum led the integration of 2 of its largest North American manufacturing sites. Quantum worked closely with the client functional teams to develop a detailed program that covered product qualifications with customers, capital investments / capacity enhancements, plant operations process developments, supply chain planning and production transition, logistics and rail transition, etc. Quantum set up the PMO, managed the worksreams and led the 8-month program to successfully transition production on-time, to very high client satisfaction.

Chemicals add on – Detailed integration planning

For a mid-market PE add on acquisition in the Polymers space, Quantum conducted detailed synergy assessment and integration planning. The Quantum team worked closely with the buyer and the target for a bottom up assessment of synergies in Commercial, Manufacturing, Sourcing, Supply Chain and G&A. The synergies included consolidation of manufacturing footprint, extensive sourcing / in-sourcing opportunities and cross-selling. The manufacturing consolidation scenario was developed through a reactor level modeling of chemistry, batch sizes, utilization and capacity. Sourcing synergies were developed through extensive workshops. The team developed a detailed implementation plan and a detailed estimate of one time costs for the manufacturing consolidation.

Global chemicals merger

For a $750M global chemicals company (metal working fluids, lubricants, coatings) led a global diligence for the acquisition of a similar sized global competitor. The Quantum team acted as a trusted adviser to the buyer’s Executive team, managed other diligence providers, and guided the effort in assessment of opportunities and risks in global manufacturing, sourcing, organization, SG&A and commercial integration.

Global specialty chemicals acquisition

For a $700M global chemicals company, led the diligence for the acquisition of a $350M global specialty chemicals manufacturer (coatings and colorants). The Quantum team worked closely with the bidder’s management team to assess synergies in manufacturing, sourcing, supply chain and G&A. Conducted global site visits, developed footprint rationalization scenarios, developed integrated organization structure, assessed combined sourcing synergies and potential SG&A reductions

Global Carve out of a Chemical Company

Operational Due Diligence on the global carve out of a $1B specialty coatings manufacturer. Identified $60M in EBITDA improvements from manufacturing efficiencies, footprint consolidation, strategic sourcing and G&A reduction.

Chemicals – Footprint Rationalization

For a $800M global specialty chemicals manufacturer with significant excess capacity and declining markets, developed a detailed business case and plan to rationalize its manufacturing capacity. Modelled multiple scenarios based on cost/benefits, market and competitive impacts and recommended a best fit scenario for implementation.