The restructuring and Sale of BioMCN to OCI involved a demerger of the glycerin activity under DGR, a restructuring of the group and sale of the company to OCI. The DGR was subsequently sold to Musim Mas.
BioMCN was an investment from Waterland Private Equity Fund and Econcern in the development of biofuels, with approximately €300mio turnover, based on a technology converting crude glycerine to bio-methanol. In 2013 due to adverse development of the spread between glycerine and methanol and an immature technology the company was making huge losses.
Solution
We decided to split the company, develop a partnership with a key customer for BioMCN and the plant was revamped through a major capex expenditure, refocused on bio-methanol from biogas, and returned to profit in 2014 and 2015.
The glycerine business was carved out and developed its own market position under the name DGR with a premium product strategy. For more click Developing a new market proposition
Role
On behalf of the shareholders we managed the restructuring while fully operational and ran the subsequent sales process of the two company’s to new owners.
Special situations required special attention:
- attention was required for the exceptional tolling agreement with a key customer, and the capital expenditure for the revamp
- financial restructuring, managing special stakeholders like the administrator of Econcern
- disputes and court case before the ‘Raad van State’ with the Ministry of the Environment on emission rights and waste regulation.
Links
Photos
1. Site BioMCN Delfzijl
2. Minister Asscher visiting BioMCN
3. View of the plant
- Strategy Development
- Restructuring and business growth
- Demerger and auction process for sale of the shares
- Technical operations
- Change Management