Supply Chain Integration: Getting the Benefits from Mergers.

Supply Chain Integration:Getting the Benefits from Mergers

▪ On Jan. 8, 2003, Hydrogenics acquired Greenlight for $32.5mm

▪ Paid a combination of HYGS stock (90%) and cash (10%) with 12 and 18 month lock-up

▪ Combined #1 and #2 fuel cell test suppliers globally

▪ Greenlight established as wholly owned subsidiary responsible for test stations and testing services

▪ Hydrogenics test business rolled into Greenlight and run as independent, autonomous unit out of Vancouver (kept Greenlight name)

▪ Hydrogenics Toronto facility focused on stacks, power modules, H2 generation and engineering services

▪ Had to deal with issue of customers concerns over independence and ownership by competing company

The Deal

▪ Market Dominance- eliminates competition and now have most of the fuel cell companies as customers

▪ Financial Strength- parent company with cash and GPT growth with all test station business moving to Vancouver

▪ Stock Liquidity an Increased Valuation- for Greenlight founders and employees

▪ Improved Product Line- combine complimentary products lines

▪ Lower Cost Structure- Eliminate duplication and greater purchasing power and manufacturing efficiencies from increased volumes.

▪ Global Presence- offices in Japan, Germany and east coast North America

▪ Focus- allows HYGS to grow power products business

▪ Independence –Customers comfortable with separate entity for test

▪ Access to Strategic Partnerships – Introduced HYGS to Chevron Texaco and GPT to GM

Benefits of Combination

Integration Team: Requires Input & Focus From Both Organizations

ROLE: Meet monthly to review status and resolve issues

Steering Committee

ROLE: Facilitate teams through design and implementation for their core area. Resolve issues or escalate to Integration Manager

ROLE: Coordinate and manage all integration activities. Identify risk factors,

issues and recommend strategies to mitigate.

Integration Management

Bruce Townson

Functional Integration Teams

Manufacturing andSupply Chain

Products Finance HRIT

James Dean

Heather ItoTom Hoang

Frank Ludgate

Gord Lamont

Roger HarperRavi Gopal

Charley Pappas

Jim Collins

Ken ChaunAllison Ruch

Peter Scheck

Andy ChenHuseyin Ayman

Chrisha R.

Rolanda Chen

Jeff Plato

Mark Kammerer

Alex Beaudet

Aaron Hardwick

Mike Rhodes

Pierre Rivard Boyd TaylorDavid Chapman Gary Brandt(1)

James Dean(1) Jonathan Lundy

Service & Support

Sales & Distribution

ROLE: Provide information and support as required throughout

integration

Integration Resources

Dave WetterBob Williamson

Melissa McKinnon

(1) Day to Day contact on the Steering Committee for Integration Teams

Lead

Members

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ADDITIONAL TEMPLATE PREVIEWS

Guides PMI Planning Guidelines Types of Merger Integration Approaches (Hostile vs. Friendly) How To Integrate Acquisitions Well Ways to Integrate - Ver2 7 Deadly Sins The First 100 Days CFO's Role in PMI Merger Communications Plan - Ver1 Merger Communications Plan - Ver2 (No Preview) Managing Receivables Blues Motivating the Teams Managing the Process

Integration Tools and Templates

Merger Integration Best Practices

Integration Initiatives By Functional Area

Integration Timeline By Functional Area

Integration Approach Kick-Off Presentation

PMI Planning & Execution Model

Integration Plan Example 1

Integration Plan Example 2

HR Integration Plan Example

Overall Merger Integration Plan

Sales Force Merger Integration

Treasury Department Merger Integration

Presentation and Report Charts and Graphics - Big Time Saver!

Biotech Merger Integration Plan

Telecom Merger Integration Plan

New Business, Product, and Startup Ideas

MARKET, INDUSTRY, AND COMPANY, RESEARCH

THE PATH TO EXCELLENCE

The Template PLUS Tools Creativity (double click for word doc link )

Intelligence & Analysis (double click for word doc link)

Collaboration (double click for word doc link)

Help & Coaching (double click for word doc link)

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