Pactiv Evergreen Executes Divestiture of Asia Business Unit with Lemongrass
Pactiv Evergreen Inc (PTVE) is the leading manufacturer and distributor of fresh food and beverage packaging in North America. The company delivers innovative food and beverage packaging solutions, designed to exceed the needs of the businesses and consumers they serve. When PTVE made the decision to sell its Pactiv Evergreen Asia business unit to SIG Combibloc Group Ltd (SIG), the company sought an experienced partner to support the transaction by executing an SAP carve-out.
Executing a smooth and effective carve-out is critical to the success of a divestiture, merger, or acquisition. With strict delivery deadlines and requirements of Transitional Services Agreements, anything short of a seamless execution is unacceptable. The criticality of PTVE’s carve-out meant the company had to choose its service partner wisely.
Pactiv Evergreen considered several options for the execution of this critical carve-out including the major hyperscalers, one of which would host the carved-out SAP systems, and several system integrators that could execute the carve-out. Lemongrass, having previously helped PTVE migrate its entire SAP landscape to Azure, was in a strong position to win this project from the start.
“Considering the implications of this project, we had no room for failure. Lemongrass’s SAP on Azure expertise and technical know-how proved to be invaluable throughout the entire process. Thanks to the efforts of the Lemongrass team, we were able to execute a seamless divestiture.”
Thanks to the work Lemongrass had done with Pactiv Evergreen and its experience supporting other customers with divestitures by leveraging Azure, Lemongrass recommended the selection of Microsoft. With Azure, Lemongrass could help PTVE seamlessly transition its systems while saving costs. PTVE also favored the smooth transition plan Lemongrass developed with SIG and its unique data cleansing solution which was half the price of other tools in the market.
The Project Scope
There are several technical approaches for SAP carve-outs. Pactiv Evergreen opted for the clone-and-delete approach. With this approach, Lemongrass would support PTVE in making a clone of its SAP ECC system and deleting all but the relevant data in the cloned system before handing it off to SIG.
Lemongrass’s scope for the project included the creation of a separate subscription in Azure, cloning of PTVE’s SAP ECC system, deletion of data at the company code level in the cloned system, testing and validation of the new system, and operation of the new system until the transfer of ownership to SIG. For the execution of all the requirements in scope, Lemongrass deployed a phased approach.
In the first phase, Lemongrass defined the cloning methodology and mapped out a project plan for a timely delivery. Following the planning and design phase, Lemongrass performed the cloning of PTVE’s non-production and production environment to Lemongrass’s Azure Tenant. With the cloned SAP system on Azure, Lemongrass proceeded with the company code deletion process.
“Each phase of this divestiture effort of our operations in the Asia-Pacific region had to be accomplished within specific date ranges, if we were to meet our overall timeline. Lemongrass created the target Azure instance very quickly given their expertise and ensured the instance was correctly transferred over to the new owner. Throughout this journey, the strategy, approach, and guidance provided by Lemongrass have been the cornerstones of our success.”
The company code deletion was executed using SAP Landscape Transformation software (SAP LT). Using SAP LT routines, Lemongrass ran three deletion cycles—two test cycles and one production deletion cycle. Thanks to the automation tooling in LCP, Lemongrass optimized the performance of the deletion cycles through each test cycle before executing the final deletion. After the deletion process, the system was handed over to PTVE for testing and validation before the final handoff to SIG.
Seamless Execution
Lemongrass’s use of Azure solutions enabled PTVE to seamlessly transfer ownership of its SAP system to SIG. More importantly, the firm’s smooth and timely execution of the SAP carve-out helped PTVE complete a successful divestiture. With the sale of its Asia-Pacific business complete, PTVE is positioned for further growth in North America, where it has established itself as the leading manufacturer of fresh food and beverage packaging.
Read More: Pactiv Evergreen Reaches Digital Transformation Milestone with SAP on Azure Transformation / Download Case Study | View all Case Studies
