Post-Merger Integration for a global plant engineering company

Capgemini Invent supported the PMI of several acquired companies and the creation of a new globally operating business unit.

Combining the expertise of several businesses

The client is a leading plant engineering company with ~4,000 employees and a revenue of close to €1 billion. In the past, the client acquired several small businesses. However, except for high-level steering from the parent company they were not integrated, continued to operate under their respective brands and used their own organizational set-up, processes and tools. Capgemini Invent was selected to support the preparation, design and implementation of the integration with the objective of bringing the acquired companies and an internal unit together to create a new business unit. The main goal of the merger was to increase the competitiveness of the separately operating companies by combining their expertise to achieve a combined revenue growth of about 130% in the following five years. Besides the integration of the smaller companies into existing IT systems, processes and structures of their larger parent company, Capgemini Invent was also responsible for developing a new location concept including a clear definition of responsibilities.

A detailed roadmap for integration

Capgemini Invent kicked-off the project by building an aligned integration vision and target picture of the new business unit together with the client. This included a functional set-up, a detailed organizational structure, strategic directions towards growth and a standardized KPI system in line with top-down guidelines.

Our team continued by defining the future location concept and bundled the companies based on their current capabilities and areas of expertise as well as product development in centers of excellence. All roles, processes, interfaces and IT systems were aligned in accordance with the parent company. The new structure is expected to generate synergies between the merging companies due to their different levels of productivity, different cost structures and economies of scale. The synergies were expected to lead to an EBIT margin increase to 9-14 percent.

A detailed integration roadmap as well as a transparent communication plan were created to remain focused on the main milestones of the process and to ensure that all employees supported the merger. Clear communication including workshops and interviews with selected employees helped to keep the momentum for integration. Throughout the entire project, change and communication management measures were undertaken to reduce tensions and ensure a smooth transition.

Aligned processes ensure success

Capgemini Invent successfully created a common integration target picture and vision for the new business unit. Potential synergies and quick wins were identified, evaluated and realized through aligned processes, roles, IT systems and interfaces across the three companies and a successful integration into the parent company.

Our tailored integration roadmap and pragmatic implementation plan ensured a clear vision throughout the entire process and built the foundation of the project’s success. The established organizational set-up and location concept with centers of excellence ensured that the business unit will form a stable part of the parent company’s DNA in the future.

PMI_Global Plant Engine...

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