Tools and resources for private equity
Carlyle: EcoValuScreen Results
Allison Transmission: Hunting for energy efficiency
Allison is a global designer, manufacturer and supplier of automatic transmissions for medium- and heavy-duty commercial and specialty military vehicles. The company is a leader in manufacturing hybrid transmissions for trucks and buses. In November 2010, Allison worked with Carlyle, EDF and GE Capital to host an “ecomagination Treasure Hunt.” This process, developed by GE, promotes energy efficiency awareness and action by working with volunteer employees from across a company to assess its operations and identify innovative ways to improve energy efficiency. During the treasure hunt, a team of more than 20 Allison employees, GE experts, EDF representatives and outside specialists spent three days observing Allison’s primary manufacturing facility during all phases of operations—from shutdown mode over a weekend to normal operations during day shifts. The goal was to identify, quantify and recommend projects that would improve energy efficiency and cut costs.
The Treasure Hunt participants identified more than 20 different initiatives that could save the company up to $1.2 million annually and reduce CO2 emissions by approximately 15,000 metric tons per year -- equivalent to taking 2,800 cars off the road.
Allison is reviewing the full results of the treasure hunt, prioritizing projects for implementation and incorporating these initiatives in the company’s ISO 14001 environmental management process.
NBTY: Improving operational and environmental performance
In October 2010, Carlyle acquired NBTY, Inc., a global manufacturer and marketer of nutritional supplements. The company manufactures and sells more than 25,000 products under a number of brands, including Nature’s Bounty, Holland & Barrett, Vitamin World and Puritan’s Pride. As part of the investment process, the Carlyle investment team coordinated with EDF and The Payne Firm to apply the EcoValuScreen to the transaction. Opportunities identified through the process included:
- Developing strategies to increase the efficiency of NBTY’s manufacturing and distribution network.
- Enhancing site operations through the creation of new metrics to monitor plant productivity;
- Focusing on strategic sourcing programs to reduce packaging, raw material usage and solid waste.
Carlyle, EDF and NBTY’s management team are evaluating the potential initiatives and developing an implementation plan to improve NBTY’s operations and generate corresponding environmental benefits through reductions in energy, greenhouse gas emissions and waste.
Park Water Company: Conserving precious resources
In December 2010, Carlyle Infrastructure Partners, L.P. agreed to acquire the Park Water Company, an owner and operator of two regulated water distribution utilities in California and one in Montana. Based in Downey, California, Park Water and its subsidiaries collect, store, distribute and sell water to 250,000 customers. Based on a pre-closing, preliminary analysis, the EcoValuScreen approach identified three opportunities to build on efforts already underway and further improve environmental management.
- Expanding the use of water meters at Park Water’s Montana affiliate will enhance the company’s ability to measure and manage water flow and promote water conservation.
- Investing capital in replacing and repairing aging pipes will increase efficiency andreduce water loss.
- Scaling water conservation initiatives across all three utilities will help consumers improve efficiency and reduce demand.
These activities are intended to enhance operations, reduce environmental impacts and improve financial performance. Carlyle and EDF will work with Park Water’s management team to implement these initiatives if and when regulatory approval has been achieved.