AlixPartners Wins ATTA Large Turnaround of 2014 Award
AlixPartners announced it won Asia Transformation and Turnaround Association’s Large Turnaround of 2014 award for its work on the corporate turnaround and restructuring of Zhuhai Zhongfu Enterprise.
The beverage packaging industry in China has been suffering overcapacity due to a wave of investment in new facilities to improve efficiencies and reduce costs. Zhuhai Zhongfu, a portfolio company of CVC Capital Partners since October 2007, engaged AlixPartners between June 2013 and March 2014 to drive turnaround initiatives with particular focuses on supply chain management, manufacturing footprint optimization and sales volume. With great teamwork, collaboration, cooperation and trust, the AlixPartners team and the management of Zhuhai Zhongfu worked seamlessly towards a common goal.
Steve Maurer, a managing director at AlixPartners and its China head, said, “With our hands-on experience, we successfully helped Zhuhai Zhongfu dispose of non-performing or underutilized assets and helped take out operating costs through a combination of rightsizing the business, streamlining the organization structure and driving efficiency gains. With great collaboration with the Zhuhai Zhongfu management, our team was able to drive an operational as well as financial restructuring across the operating plants and the business infrastructure. We also worked together with the company’s board to provide skills transfer from our professionals to enable Zhuhai Zhongfu to improve its own internal capabilities to continue identifying and driving operational and financial improvements within the organization.”
Rupert Purser, the chair of the judging panel for the ATTA Awards, said, “We received a record number of submissions for the Awards this year. What impressed us the most by the AlixPartners’ submission was the holistic approach to turnaround, involving all operational functions, where turnaround led the debt restructuring instead of the other way around. Additionally, the scale of the operational changes across China was impressive as are the sustained benefits to the company from the process.”