Divestiture Trustee

When the Merger of Two Global Aluminum Manufacturers Required a Partial Divestiture, Guidepost was Appointed to Conduct the Sale

In order to approve the merger of two global aluminum manufacturers, the U.S. Department of Justice, Antitrust Division required a partial divestiture in order to resolve the competitive harm the government asserted would occur if the full merger were approved. The two companies and the Department of Justice agreed that one aluminum autobody sheet (ABS) manufacturing facility was to be divested to a third party within a certain timeframe, and signed a settlement agreement to that effect. When the merged company was unable to complete the divestiture within the required time period, the Department of Justice appointed our CEO as the Divestiture Trustee with the sole authority to conduct the sale of the aluminum ABS manufacturing facility to an appropriate purchaser and in a timely manner.

Our team had to step into an in-progress acquisition process being conducted by the newly merged company and begin managing that process. We were charged with accomplishing the divestiture to an acquirer capable of operating the divested asset competitively in the industry and acceptable to the United States, at a price and on terms that are obtainable upon reasonable effort. During the process, we oversaw the due diligence process, managed communications among and between the prospective acquirers, the sellers, their independent financial advisors, the management of the divested asset, and the government. We submitted a report to the Department of Justice with recommendations regarding the final two potential acquirers, one of which was ultimately approved per the Final Judgment.

As the Divestiture Trustee, the Guidepost team accomplished the divestiture in a timely manner and to an appropriate acquirer – one that was capable of competitively operating the aluminum ABS facility as a standalone entity. Wet stepped into a complicated ongoing process and successfully managed various competing interests while adhering to the government’s preferred schedule. The culmination of the acquisition process served the interests of the Department of Justice to reduce any competitive harm that would have been caused by the initial merger.

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