This private equity owned, full service specialty chemicals manufacturer and distributor, develops, manufactures and supports a broad range of customized solutions to meet customers’ performance, quality, cost, safety and compliance needs in a variety of industries globally.
The company had achieved rapid growth (195% revenue growth) through nine strategic acquisitions and planned to continue to experience significant growth. However, the supply chain processes remained heavily siloed and inefficient with no visibility into spend. In addition, the company was at the end of its investment lifecycle with its PE owner, and was likely going to be put up for sale in the near future.
The PE sponsor asked Maine Pointe to support the sales process by working with potential acquirers to better understand the value creation potential of a procurement and logistics engagement that would ultimately drive out inefficiencies and enable them to better integrate future acquisitions.
Maine Pointe’s analysis of procurement and logistics capabilities across the nine companies revealed that management had little visibility of their own fleet and third party logistics activity. Procurement was fragmented and highly tactical in nature. Senior managers were focused on ongoing acquisitive growth, but were not seeing the opportunity to optimize by leveraging spend, consolidating their supply base, and applying a more strategic approach to rapidly drive significant annualized savings. From a maturity perspective, our industry and subject matter experts assessed procurement as level 1.3 and logistics as level 1.1 on the 5-level TVO Pyramid™. Maine Pointe worked closely with senior executives to professionalize procurement and supply chain areas and improve process efficiency by:
By transforming procurement and logistics and optimizing the growth that had already occurred, the company has become more effective in its acquisitions. This led to a higher-than-expected selling price and a rapid transfer of ownership. The new owners were so impressed with the accelerated results Maine Pointe delivered that they have now engaged us to help them increase the exit value of another of their portfolio companies.
By transforming procurement and logistics, the company has become more effective in absorbing
acquisitions, resulting in:
The pragmatic approach of the team has laid a solid foundation for further improvements. I would not hesitate to recommend Maine Pointe to another organization.” VP Operations