Independent Refining and Marketing Company

Merger Integration Success Stories: Independent Refining and Marketing Company

A Fortune 500 company, and one of the largest independent petroleum refiners and marketers in the Western U.S., operates six oil refineries with a combined crude capacity of more than 560,000 barrels per day. The company had entered into two simultaneous asset purchase transactions – one to acquire a refinery and branding / supply rights from a major integrated oil company; and another to acquire 140 retail stations from a privately-held retail operator.

Alvarez & Marsal advised on pre-announcement planning activities, as well as the integration of assets, helping to:

Lead the Project Management Office to provide governance and oversight across all functional areas of the company;
Prepare all functional areas for stable Day One operations, including an IT infrastructure requiring the transition of 200 refinery and terminal applications, and the migration of back-office and fuel replenishment systems for more than 400 retail locations;
Successfully execute an employee transition and retention strategy, resulting in a 94 percent retention rate, the deployment of a full benefits program with quantified savings, and more than 500 hours of Change training for 1,800 new employees; and
Collaborate with the company’s Corporate Communications team to manage and develop continuous audience-specific communications to all stakeholders, including shareholders and analysts, members of the media, customers, vendors, current employees and new employees.

As a result of A&M’s involvement, new employees and customers were seamlessly incorporated into the company on Day One with
minimal disruption to production, customers and employees. A&M subsequently identified and prioritized process improvement activities that left the petroleum refiner and marketer well-positioned to achieve the investment synergy targets.

Merger Integration Success Stories: