10 to 20% improvement in yield of all facilities
EBITDA grows by 58% and exceeds target.
Strategic Intent
Realize planned ROI and EBITDA improvement of a recent large acquisition by accelerating and optimizing the integration of their two operations and cultures
Situation
- Largest producer of lime and limestone products in North America
- $1.76 billion in revenues from 100 facilities worldwide
- Supplies products to the manufacturing, construction, oil & gas and power generation industries
- Some markets are slow, but others are strong and projected to grow
- Recently acquires industrial minerals and aggregates company for synergy, additional reserves and market-share optimization
- Needs to rapidly integrate acquisition to achieve overall goal of increasing EBITDA
Issues and Barriers
- Lack of resources to handle all challenges of post-merger integration in short time frame
- Acquired organization is “top heavy” and requires restructuring
- Corporate goals and priorities require alignment at all levels
- Inadequate processes and systems in acquired organization inhibit performing to our client’s expectations
Key Implementations
- Implement client’s operating model at 13 of the newly acquired facilities – and assess remaining sites to determine next steps
- Define and communicate roles and responsibilities
- Align goals of newly acquired facilities to corporate objectives and link to performance
- Enhance management tools and improve operational efficiencies through one-on-one supervisory coaching
Results
EBITDA Grows by 58% Exceeding Target
A combination of operational improvements and increased productivity results in headcount reductions and reduced overtime. The client exceeds overall EBITDA target of 17%.
- 5% increase in kiln output
- Improved yield in all facilities by 10 to 20%
- Reduced headcount by 10%
- Reduced overtime in all locations
Client Perspective
With the significant results achieved on this project as well as on previous collaborations with Brooks, I am pleased to recommend their services to any organization seeking performance improvement in a post-merger environment.
— Vice President, Operations
