A Logistics Integration
A private equity backed business, Andrew Page, £175m T/O, 1500 Employees, purchased Camberley Auto Factors Ltd, c£50-75m T/O and 500 employees.
With a lean management team at the acquirer, the Board recognised the need to bring in additional resource experienced in business integration to minimise the impact of the acquisition on business as usual performance, safeguard the value of the acquisition, speed up and de risk the integration process.
The acquiring business was already undergoing major cultural change and was undertaking a number of resource heavy IT and logistics projects. Infrastructure was underdeveloped in a number of departments.
The challenge of the integration was to:
- Retain and integrate staff into a unified business at a time when competitors were actively seeking to poach key staff
- Minimise the impact of the integration on other major strategic initiatives
- Achieve budgeted synergies quickly, particularly around procurement and product rationalisation
- Develop and deliver a workable IT integration plan (still based on legacy and, therefore, development resource constrained systems) that standardised the operating processes across 100 branches in the UK
The program delivered:
- Better than plan non-staff synergies, particularly around procurement
- No loss of key staff in either organisation, so management could select best staff for on-going roles. Staff synergies achieved after selection higher than expected
- Integrated workforce and top team, together with major culture change within the acquired business to match acquirer culture
- Integrated IT platform sooner and at lower cost than planned