Manufacturing Facilities: Mergers and Acquisitions

 

Project Summary

A manufacturing client had the potential to acquire eight building material manufacturing facilities. Mostardi Platt conducted due diligence and regulatory compliance evaluations at each of the eight facilities.

SCOPE OF WORKBricks processed at manufacturing facilites

Mostardi Platt initially reviewed available data for each of the eight manufacturing facilities in an online data room. Commercial databases, available historical information for each location, and the Freedom of Information Act (FOIA) requests also provided information. The initial information was presented in a high-level risk liability summary matrix.

Based on the initial information presented, further review was conducted to identify low, medium, and high-risk liabilities. An onsite inspection was then conducted at the facility which contained the most significant environmental issues. The site inspection included confirmation of general conformance with environmental regulations and first-hand inspection. Interviews regarding open environmental issues were also conducted.

The primary environmental issue consisted of soil and groundwater impacts adjacent to the downgradient property boundary from the historic use of a 200,000 gallon above ground fuel oil tank. State files obtained via FOIA requests indicate that offsite parties had been notified by the current property owner of potential impact from the onsite release.

During the interview, the current property owner indicated that the liability cost associated with addressing this known soil and groundwater issue would be retained. The liability cost would not be transferred to the new owner.  All information from the onsite visit and data review was summarized into a matrix of potential environmental and regulatory issues that were ranked with a low, medium, or high priority. In addition, a cost evaluation of the potential environmental liabilities was performed

Mostardi Platt
888 Industrial Drive
Elmhurst, IL 60126