Customer Problem / Need
Our customer was consolidating manufacturing operations to enable a more efficient supply chain, two key product lines were being relocated which resulted in redundant assets.
The real estate had recently gone under contract to sell several months earlier than anticipated.
The production equipment was comprised of high-end CNC machine-tools, welding, surface finishing, and specialized lines used in producing pump motor stators and rotors for Oil & Gas equipment.
The custom-built production lines had limited application or value outside of their intended purpose. In addition, these complex custom lines had to be removed prior to the property sale.
A three-phase sale strategy was applied.
Phase 1 was an “Invitation Only” auction sale to other stator and rotor manufactures and end users. Offering the assets this way created the an "exclusive offering" and increased compeititon across a set of competitive buyers.
Phases 2 and 3 were both traditional public auctions used to clean-up any further assets located at the facility.
The customer is a multinational Oil & Gas OEM with operations in over 120 countries.
Total Plant Area: Approximately 400,000 square feet
Expense Budget: $40,000
This sale strategy ultimately grossed $2.7MM for the customer.
Removal cost savings for the customer resulting from the three sales is estimated at $2MM.