Transcript Supply Chain Integration: Getting the Benefits from Mergers

Supply Chain Integration:
Getting the Benefits from Mergers
The Deal
▪ On Jan. 8, 2003, Hydrogenics acquired Greenlight for
$32.5mm
▪ Paid a combination of HYGS stock (90%) and cash (10%)
with 12 and 18 month lock-up
▪ Combined #1 and #2 fuel cell test suppliers globally
▪ Greenlight established as wholly owned subsidiary
responsible for test stations and testing services
▪ Hydrogenics test business rolled into Greenlight and run
as independent, autonomous unit out of Vancouver (kept
Greenlight name)
▪ Hydrogenics Toronto facility focused on stacks, power
modules, H2 generation and engineering services
▪ Had to deal with issue of customers concerns over
independence and ownership by competing company
Benefits of Combination
▪ Market Dominance- eliminates competition and now have most
of the fuel cell companies as customers
▪ Financial Strength- parent company with cash and GPT growth
with all test station business moving to Vancouver
▪ Stock Liquidity an Increased Valuation- for Greenlight
founders and employees
▪ Improved Product Line- combine complimentary products lines
▪ Lower Cost Structure- Eliminate duplication and greater
purchasing power and manufacturing efficiencies from increased
volumes.
▪ Global Presence- offices in Japan, Germany and east coast
North America
▪ Focus- allows HYGS to grow power products business
▪ Independence –Customers comfortable with separate entity for
test
▪ Access to Strategic Partnerships – Introduced HYGS to
Chevron Texaco and GPT to GM
Integration Team:
Requires Input & Focus From Both Organizations
Steering Committee
ROLE: Meet monthly to review status and
resolve issues
Pierre Rivard
David Chapman
James Dean(1)
Boyd Taylor
Gary Brandt(1)
Jonathan Lundy
Integration Management
Integration Resources
ROLE: Coordinate and manage all integration
activities. Identify risk factors, issues and
recommend strategies to mitigate.
ROLE: Provide information and
support as required throughout
integration
Dave Wetter
Bob Williamson
Melissa McKinnon
Bruce Townson
Functional Integration Teams
ROLE: Facilitate teams through design and implementation for their core area. Resolve issues or escalate to Integration Manager
Lead
Members
(1)
Manufacturing and
Supply Chain
Products
Finance
IT
HR
Service &
Support
Sales &
Distribution
James Dean
Gord Lamont
Jim Collins
Aaron Hardwick
Chrisha R.
Peter Scheck
Jeff Plato
Heather Ito
Tom Hoang
Frank Ludgate
Roger Harper
Ravi Gopal
Charley Pappas
Ken Chaun
Allison Ruch
Mike Rhodes
Rolanda Chen
Andy Chen
Huseyin Ayman
Mark Kammerer
Alex Beaudet
Day to Day contact on the Steering Committee for Integration Teams
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