Professional Services

In April 2021, we was engaged by Equistone Partners Europe to facilitate the carve-out of Franke Water Systems from the Franke Corporation, which had owned the business since 2013. The challenge was significant, as the team needed to navigate a complex IT environment, design an organizational structure for the new standalone KWC Group, and reallocate manufacturing assets that were geographically diverse. With a tight timeline of less than two months between the signing and closing of the transaction, it was crucial to reduce the new company's reliance on the former parent company and establish independent operational capabilities.

To address these challenges, we deployed a dedicated team of carve-out and separation experts who worked to streamline the organization and operationalize the new legal entities. The KWC Group faced a demanding target to exit Transitional Service Agreements (TSAs) within 6-12 months post-close, particularly since no internal IT function was inherited. A rapid, greenfield IT carve-out approach was implemented, which involved applying lean principles to design a future Target Operating Model (TOM) while ensuring vital knowledge transfer and filling key resource gaps. The TOM also included a thorough review of the operational footprint and supplier base, aiming to identify improvement opportunities aligned with ambitious growth targets.

The results of we' intervention were substantial. The firm’s expertise led to a performance improvement that generated an estimated CHF 15 million EBITDA impact, alongside additional cash benefits in 2022. The consolidation of the legal entity structure and the establishment of a new business reporting logic enhanced transparency and aligned financial performance with ownership expectations. The transformation empowered change agents within KWC Group, fostering a mindset shift that enabled the company to successfully transition from a complex parent company structure to a standalone entity poised for future growth in 60 global markets.