Case Study

Value Creation

Gross Margin improvement through procurement and innovation

Principal Private Equity UK & US
Type PE-Transformation and Growth
Industry Recycling
Turnover EUR 100mln
Tasks Operational Improvemnt
Duration 1 year
Services Transformation Enterprise value creation
513-min

Synopsis:

Reorganisation of sourcing and procurement for reduction of material cost to prepare secondary sale and exit

  • On ground analysis with two external operations and plastic specialist to identify weakness in the materials cost processes
  • Execution of ABC and RSU analyses of complete procurement portfolio, introduction of e-auctions to lower material costs
  • EUR 2mln Investment into innovative technology to use and process „low grade“ and recycled PP-materials
  • Regular reporting and tracking of performance improvement with the advisory council and investment manager
Lead Partner

Silvio Stockmann

Results:

Reduction of material cost by 5 margin points increase of der EBITDA margin by total 2,7 %, Enterprise value created of EUR 30M, Tertiary sales of one PE fund