Business transformation: privatisation of a dairy cooperative (sale) and post-merger integration.

Business transformation of a dairy cooperative as a result of privatisation and post-merger integration

 

 

Client:

  • Medium-sized dairy cooperative with 2 production sites and more than 2,500 active milk suppliers
  • Number of employees: approx. 500
  • Turnover: approx. 440 million €
  • Milk processing: approx. 760 million kg

 

M&A:

Initial situation:

  • After a successful restructuring, the dairy company has set the course for the future with a well-founded strategy concept and has started its implementation
  • However, the need for significant human and financial resources, long timeframe for successful strategy implementation led among the shareholders to the decision to support the future of the company through a cooperation with a strategic partner
  • Subsequently, the shareholders of the dairy cooperative commissioned ARONIA Management Consulting to execute the M&A process and manage it till closing 

 

Actions taken:

  • Building a M&A team, involvement of the necessary management team members of the dairy cooperative and an experienced law company for legal issues
  • Sensitive approach and communication during the whole M&A process with a focus on confidentiality, secrecy in compliance with legal requirements
  • Preparation of an investment memorandum
  • Preparation, analysis, discussion and prioritization of the long list, addressing potential buyers from Germany, EU and Asia
  • Presentations of the company and negotiations with the short-list interested parties (incl. deal design, purchase price and other conditions)
  • Roadshows with group shareholders and their executives for decision making/shareholder resolutions concerning the selling of the company
  • Preparation of a data room for due diligence
  • Support by the closing of the deal 

 

Results:

  • Successful sale of the company at a lucrative price to a foreign, globally operating dairy and food company (one of the top 3 worldwide)
  • Securing the future of the company under the new shareholder
  • 10-year milk price guarantee for the old shareholders at the top price level

 

Post-Merger Integration:

Initial situation:

  • In order to ensure a rapid transformation and integration of the company into the new group structures and to bridge some personnel bottlenecks, the new shareholder has commissioned ARONIA Management Consulting to take over the management of marketing and sales on an interim basis and to provide support in the financial aspects of the integration according to the current law

 

Actions taken:

 

  • New saving projects for quick wins based on synergies, the market position, know-how and purchasing power of the parent company
  • Exchange of experience with the parent company, definition of quick synergy potentials within the group in the production, sales and marketing, development of implementation actions
  • Rapid introduction of controlling, reporting and management control tools according to the standards of the parent company
  • Taking over the communication with the German, European and worldwide group management
  • Staff training on group requirements in terms of sales and marketing work, sales planning, KPIs and management control tools

 

Results:

  • Meeting the requirements of the parent company for a fast and efficient transformation and post-merger integration process
  • Achievement of saving targets