Ops diagnostic yielding $1.5M EBITDA adds for plastics producer
- Location
- Kentucky, USA
- Year
- 2023
- Engagement
- Purchase Price: Operations Due Diligence
Gas can manufacturer (blow mold HDPE) owned by Private Equity Firm seeking exit. Plant needed to create capacity to meet additional volume demands of any buyer. Scope included production efficiencies and other cost saving opportunities.
Our team analyzed production line uptime and downtime causes. We conducted observations on line processes, bottlenecks, and supervisor behaviors. We assessed the Sales and Operations Planning (S&OP) Process and its effect on procurement of HDPE and other materials.
Measurable impact
$1.5M
Identified over $1.5M USD in EBITDA opportunity (vs current EBITDA of $3.5M) as well as $600K one-time cash release
Chemicals, Plastics and Packaging
Measurable impact
60%
Estimated spare capacity at 60% of calendar time based on shift patterns, proactive maintenance and planning
Chemicals, Plastics and Packaging
Measurable impact
20:1
Positioned company for sale with a 20:1 ROI (valuation increase vs fees)
Chemicals, Plastics and Packaging