Cooke Aquaculture - Merger support

“Initially we weren’t sure how strong the synergies from this merger would be, but when I read the report it was amazing. Every page I turned explained another great opportunity to improve.”

Bank representative

Filet yields

Graph

What did we do?

Worked closely with Cooke’s senior managers to understand their business and the improvement potential
Toured and observed Cooke and the sites proposed for purchase
Analyzed historical data from all three companies to identify differences, trends and opportunities

Report structure

For each savings area, the Grant Thornton Productivity Improvement team
- Explained the basis of the potential savings
- Calculated the value
- Summarized the supporting evidence, e.g. data analysis, notes of records checked and observations from site visits
Cooke was also provided with detailed summaries of the productivity observations and site visits – information that managers could use for planning their improvement projects

Savings examples

Feed savings – analyzed historical data and proved differences in feed use per harvested lb., observed differences in feeding practices in the field which supported the history and confirmed feasibility of change
Fish health – confirmed differences in practices from interviews and differences in results from database info. Estimated value of changes – wasted hatchery and feed costs, value of higher harvest weight
Proved potential for yield improvement
Confirmed productivity differences from data and observation

< Back

February 18, 2008

PRINT
PRINT SIZE:

Client

Cooke Aquaculture was one of three large producers of Atlantic Salmon on the east coast of North America with the following capabilities:
- Hatcheries and seawater cages to grow Atlantic Salmon
- Whole fish processing and sales
- Value added processing and sales
Grant Thornton Productivity Improvement had previously completed a project for Cooke’s processing plant

Situation

The two other large producers had been losing money and their parent companies decided to sell
Cooke could see substantial synergies by combining the three companies
Cooke negotiated purchase agreements with both companies, but the banks required an independent assessment of the potential savings before they would provide funds to support the acquisitions

Solution

Cooke called Grant Thornton Productivity Improvement to determine the benefits of the merger
A senior productivity improvement team was sent in to complete a detailed analysis of the savings potential

Results

The banks were able to understand the savings potential and provided financial support for the purchases
Cooke was able to set clear savings objectives for its managers and identify the areas that require extra focus to ensure that results are obtained

Audit
Tax
Advisory