Carve-out vs Spin-off strategy

Enhancing professional products and services

 

Situation and challenge

The business comprised a € 200 mln business, part of a multinational company controlled by private equity for several years. The mandate was to lead the newly established Business Unit (BU) Sanitary System ad Interim and support the Category Manager. For the planned launch of the ‘Professional’ sub-brand, more precise propositions were needed with which to meet the needs of professionals in the plumbing and heating sector: installers, designers, specialist dealers. Costs, benefits, feasibility of a possible spin-off or carve-out also had to be assessed.

Actions

Activities included the implementation of specific measures to provide support and credibility in the group’s foreign sales companies, the reinforcement of training/product management, the clearer definition of the product development roadmap, the revision of the ranges with a view to systems and solutions, and the structured and more frequent collaboration with the competence centre and production site specializing in installation technology.

Results

On carve-out/spin-off the decision was not to split the Business Unit. Autonomy/integration of functions between BU/HQ were re-balanced. Acceleration of business growth was achieved through: business plan, precise coordinated operational/organizational measures, strengthening of BU staff with field trainers/experts from the competence centre/production site. The launch of the sub-brand was accomplished and strengthened with a loyalty program for installers and first operational pre/after sales tools.