General Overview

Purpose

Establish Acquired Co. HR group consistent with Acquirer and integrate Acquired Co. into Acquirer HR systems and processes.

Objective

Implement change with minimal disruption.

Value Drivers

Acquirer intends to differentiate itself based on its employees. Newco will provide a greater pool of employees and more internal opportunities.

Main Synergies

Reduced headcount and benefit plan savings. Improve processes via Peoplesoft.

Main Costs

Peoplesoft implementation and staffing for internal payroll.

Risks

Employee retention and union activity due to benefit changes.

Implementation Schedule

  • 1

    8/24

    Make pension plan changes. Combine 401(k) plans.

  • 2

    9/24

    Implement Acquirer profit share.

  • 3

    10/24

    Implement Peoplesoft.

  • 4

    11/24

    Implement Acquirer health plan.

  • 5

    12/24

    Implement Acquirer comp. structure.

  • 6

    1/25

    Implement new severance plan.

  • 7

    2/25

    Integrate work comp. plans.

  • 8

    3/25

    Implement employee relations program.

  • 9

    4/25

    Move to Acquirer Org. Dev. processes. Analyze current culture.

  • 10

    5/25

    Address cultural issues. Announce benefit plan changes.

Synergy Summary

Projects/ actions Comp Date SG&A Headcount Reduction Other Expense Reductions Total Imp Expense Total Imp Capex Savings 2025 Full Year Reduction Working Capital
Terminate defined benefits plans Unknown
Restructure Acqd. Co. 12/31/24 5 Severance $454 $454
Manage severance and transition activities Various None None
Implement Acquirer compensation system 12/31/24 None $275 None $275 $275
Implement performance management planning sys. 2023 Perf cycle None None None
Safety and Environmental review 9/15/24 None None None
Employee relations review 12/31/24 None Survey expense Unknown
HRIS change 12/31/24 None None TBD
Non-health benefit cost savings (life, AD&D, bonuses) 12/31/24 $212 None $212 $212
Total 5 $487 $941 $941

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