Leading for Growth, Continued Focus on Core

Mar 10, 2020 |
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Client

A $9B global chemical and ingredient distributor

Our client turned to RGP to advise their team on executing a $650 million divestiture as part of a $2 billion transformative acquisition.

They needed to divest a business as a closing condition for their acquisition. Not only did they have no experience with divestitures and the follow-on separation activities, but they had to support two transactions in parallel, including the continued planning for their acquisition.

What We Did

  • Developed a separation roadmap that incorporated regulatory requirements, deal marketing timeline and integration planning.
  • Identified separation considerations for 18 functions with clear linkages to the integration effort as well as implications for separation planning.
  • Validated the operating model assumptions and transaction perimeter (assets, employees, locations, business) with key stakeholders.
  • Guided development of the Transition Services approach (forward and reverse) and cost assumptions.

Impact

  • Completed the divestiture in an accelerated timeline, enabling our client to sell the business to a PE buyer at the top end of their expected valuation range.
  • Executed the transition services seamlessly, with minimal disruption to the broader integration effort.
  • Enabled our client to significantly increase their divestiture experience, leading them to pursue another divestiture shortly after the close of this significant transaction.
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Client

A $9B global chemical and ingredient distributor

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