Case Study #1 - Mergers & Acquisitions

Tapon France S.A. Case Study

The owners of Tapon France were considering closing this wholly-owned subsidiary, at a significant expense, due to (a) lagging profitability, (b) difficulty in managing the company from afar and (c) the dismal future prospects for this mature product line (metal crowns). Prior to making the final decision they engaged Towers Innovative Packaging to assess their strategic options.

We evaluated the business, identified a number of costs savings opportunities totaling over 1 million Euros and targeted a number of strategic buyers who we felt would value this business differently, placing greater emphasis on market consolidation, market expansion and/or penetration, customer diversification, synergies and strategic fit.

Nine months after our engagement we signed a definitive sales and purchase agreement to sell the assets and transfer selected liabilities to Can-Pack Poland, generating a good return for the shareholders, instead of a significant expense, on assets they were prepared to write-off. Can-Pack Poland was able to realize some costs savings opportunities we helped identify plus realized some operational synergies and re-invested in manufacturing technology to further improve the profitability of this business. A win-win for both the sellers and the buyers!

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