Situation

$300M+ private equity backed North American retail packaging (extrusion & thermo forming) business. Business had grown through acquisition over many years with little consolidation. Recent changes in product mix resulted in cash flow pressure and an accelerated assessment of fixed overhead. The decision was made to consolidate one of several factories but the company had limited experience with this type of rationalization activity and needed assistance getting a plan developed and moved into implementation.

Action

Assembled a core group of key players to develop an implementation plan and financial model around consolidation of a significant manufacturing facility. Plan and model developed and board approved within 7 weeks of project start. Consolidation announced within 2 weeks of board approval. Project teams established to handle major elements of plan (eg. production, site, equipment, people, systems, etc) and governance process implemented with local project manager coordinating activities.

Result

Consolidation will significantly improve annual cash flow upon completion. Project to be completed in phases through the end of 2019 and is on track.