In this case study CPL Business consultants supported technical and commercial due diligence on a company selling texturizing and stabilising food ingredients. CPL provided useful insights, and the project ultimately resulted in a successful transaction.
The objective of this project was to assist a client in answering key questions regarding a potential acquisition target and in supporting the due diligence process as technical and commercial experts.
The client was a global company operating in >20 countries, with >10,000 employees and >100 manufacturing facilities. As part of its strategy to expand its portfolio of speciality brands, it acquired a food stabilizer company. The client identified a complementary ‘bolt-on’ acquisition in stabilizers and emulsifiers to further expand the business.
The scope of the project fell into three main areas:
CPL initially provided information on the competitive landscape in North America and Europe including:
- Product lines of competitors and target market segments
- Impact of current market trends on specific ingredients
- Impact of or potential for raw material issues or shortages
We then carried out interviews with major customers to establish:
- The reputation of the target and its product lines
- Growth opportunities for the target
- The risk of the target’s formulas being replaced
Finally, we completed an analysis of the key trends, opportunities, market drivers and challenges for:
- Stabilizers & Emulsifiers
- Protein Blends
With in a compressed timescale, CPL’s team of experts delivered an insightful >120 page report which included profiles of major competitors, market analyses and interviews.
In conclusion, the due diligence process resulted in a successful acquisition of the texturizing company for CPL’s client.