Baker Tilly was engaged in a Michigan project to collect and analyze data in order to determine production facility location and negotiate credit and incentive support.

Client background                                                                                                                            

Three separate $1.0B food and beverage entities forming a joint-venture (JV), including one global multi-national nutritionals company whose parent group operates in 34 countries.

The business challenge

The client needed to address the production capacity shortfall each company was experiencing due to raw material supply and customer demand year over year growth, by partnering on the planning and construction of the largest processing facility of its kind in North America.

The Baker Tilly approach

Baker Tilly was engaged to collect and analyze highly sensitive supplier and customer data from all three JV partners, lead site suitability analysis to determine the Greenfield production facility preferred location, and negotiate and procure credit and incentive project support valued at over $10M.

The approach included the following steps:

• Supply chain cost analysis, coupled with detailed rate studies
• Utilities capacity analysis
• Location-based incentives opportunity was shared back transparently to all JV members executive teams with the intelligence needed to make a decision and support underwriting for the investment, while protecting the confidentiality of all parties

The business impact

After an 18-month start to finish effort, agreement by the JV on construction of a $500M production facility meeting the needs of all parties, and schedule to be operational in the fall of 2020.

For more information on this topic or to learn how Baker Tilly specialists can help, contact our team.