Company
Our client is a global player in the potato processing industry that supplies both frozen and fresh products to retail and food service.

Situation
One of their strategic production locations will expand production capacity and will need more storage capacity in the future. An option is the acquisition of a nearby located cold store.
Gwynt was asked by the management to further investigate the options and to work out the business case for the acquisition of the cold store.

Approach
We have started to map the current supply chain set-up and simulate the supply chain cost development based on a number of future scenarios. In addition, we identified the underlying legal structure and the main assets of the relevant cold store and examined the P&L’s of the entities involved. We then calculated the cost development of alternative supply chain solutions and the P&L impact on the cold store, and determined the options for expanding the cold store capacity.

Results
An advice on the design of the outbound supply chain and the most optimal scenario for the short and medium term. In which we determined the business case for the acquisition and expansion of the relevant cold store, and made a proposal for the next steps towards acquisition and financing, including due diligence proposal.