Footprint Consolidation Strategy Yields $6.1M EBITDA Improvement Following an Acquisition

The Challenge

A leading designer and manufacturer of medical equipment recently acquired a competitor and wanted to consolidate the manufacturing sites. They chose the acquired company’s site as the final location. The company needed help to move its existing production facility. The company brought TriVista on to help consolidate the manufacturing sites.

Our Approach

TriVista evaluated the project feasibility and completed a detailed plant layout prior to the consolidation. This included:

• Prepared implementation of materials management systems
• Completed a risk assessment to minimize risk and took the lead role in project management
• Assisted with material planning support at the new site to due to lack of resources with material planning competency
• Assisted with key integration activities including organizational structure and strategy development
• Analyzed IT systems across both business to identify opportunities to consolidate
• Developed common KPI’s for management to support business
• Organized a 3-day strategic conference to gain alignment across all areas of the business
• Analyzed customer and supplier overlap to leverage synergies

The Results

• Developed road map to achieve $6.1M EBITDA improvement
• Completed plant transfer and transition with on-time execution
• Mapped and improved manufacturing processes prior to transition; optimization of 30% labor
• Developed optimized plant lean layout
• Completed new plant’s infrastructure and capex plan
• Negotiated and awarded over $8 million in State incentives (a significant 1-to-1 ratio deal)
• Completed hiring and training plans
• Transitioned major supply chain to new operation
• Improved and implemented engineering bill of materials (BOMs), routings, specifications, and identification processes
• Compliance assurance supervision (certified)