Leading global manufacturer separates fully integrated business in deal speed
Global manufacturing sell-side case study
A global leader of industrial maintenance outsourcing services was challenged with selling and separating a fully integrated business unit across 13 functions within 30 countries in 5 months. KPMG in Germany delivered an integrated sell-side offering that supported the client throughout the divestiture. As a result, the client quickly and seamlessly closed the deal with a leading private equity investor in Europe, minimizing leakage and value loss.
KPMG in Germany’s client, a global leader of industrial maintenance outsourcing services, had a business that employed over 2,500 direct service professionals in 30 countries across five continents, and generated several hundred million USD in revenue and managed over USD $500 million of maintenance spend. The business unit was performing poorly with declining sales over the past financial years and was challenged with selling the business in a single transaction due to the wide geographic set-up, lack of legal structure and the diverse nature of the portfolio of assets.
The client turned to KPMG in Germany for guidance and support to lead the sale and separation of the fully integrated business unit from its global organization.
KPMG provided an integrated sell-side offering that supported the client from pre-deal through to closing. KPMG in Germany integrated KPMG competencies across M&A, Strategy, Financial and Vendor Assistance, Tax and Legislation, Separation, and Transformation throughout the divestiture cycle to help their client address issues earlier in the transaction in order to understand the impacts to value realization and reduce risks. KPMG’s integrated service offering allowed for a seamless preparation and execution to carry the client from kick-off to Day 1 readiness.
The deal - what the client called “one of the most complex they have done” - resulted in the business unit being fully separated from the organization within 5 short months, minimizing value erosion.
- The client seamlessly progressed through the stages of the divestiture, moving from 43 contacted buyers down to 15 indicative offers and later invited 4 buyers to full due diligence before negotiating and signing the deal with a leading private equity investor in Europe.
- Working with a team of specialists from start to closing, the client easily transitioned from planning and strategy to implementation where KPMG helped mobilize 30 member firm country teams on five continents to manage key stakeholders and supported the client in value realization.
From Data to Insight
- Gathering and analyzing financial, industry, and country-level data provided the client with the insights they needed to maximize the value of the separation.
- The client benefited from a separation strategy and execution plan that leveraged captured insights from integrating KPMG specialists earlier in the process, particularly given the limited access to information due to confidentiality of the sale.
Moving at Deal Speed
- The client deftly worked through the due diligence cycle in X months, which reduced potential risks and minimized value leakage.
- Within 5 months of signing the deal, the client successfully carved out and separated the business across each of its 13 functions in 30 countries on five continents.
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