Splitstone Capital & HJE Overview and Context

• Following Splitstone Capital’s acquisition of Ecobat Resources UK from US-based Ecobat LLC, the business was renamed HJE Limited. The transaction created a standalone UK metals-recycling business with a long industrial heritage and a significant technology-separation requirement.

• Searchlight Consulting was engaged by Splitstone - to lead and deliver the IT separation programme, establish an independent technology capability and support the business in building a platform for future value creation; leveraging our M&A Separation Framework & end state IT Operating Model Design Framework.

The Challenge

HJE needed to separate from the seller’s business platform while maintaining business continuity and creating the foundations for an independent operation.

The scope included:

• Separating more than 40 business applications.

• Carving out the SAP S/4HANA ERP environment.

• Replacing obsolete or unwanted applications inherited from the divesting company.

• Establishing new supplier, systems-integrator and SAP relationships.

• Creating an IT operating model and internal capability suitable for a standalone business.

• Delivering the separation at pace while managing the transition out of the Transitional Services Agreement (TSA).

Searchlight M&A Separation Framework

• Searchlight provided programme leadership, with the programme director acting as interim CIO and transformation lead.

• We designed the separation programme, defined the scope, delivery plan, solutions and budget, and assembled a specialist client-side delivery team. We then led the selection and commercial engagement of an SAP implementation partner to deliver the technical SAP S/4HANA separation.

• The programme included cloning the SAP HANA environment, upgrading it to a supported version, and establishing the integrations required with non-SAP applications. Searchlight also applied its software-selection framework to identify replacement solutions for applications that were no longer appropriate for the standalone business.

• Alongside the technology work, we managed commercial engagement with key vendors, the seller, systems integrators and SAP, ensuring responsibilities, costs and delivery milestones were clearly governed.

Outcomes Achieved

• Delivered the SAP S/4HANA and non-SAP separation on time, enabling HJE to operate as a standalone business.

• Separated more than 40 applications and selected replacement solutions where needed.

• Established budgets and negotiated commercial arrangements with software vendors and integration partners.

• Built an independent IT operating model, including appointing a new Head of IT and selecting a support partner.

• Created a future-value roadmap to guide post-separation improvement and investment.

• Put the business on track to exit the TSA within nine months.

• Delivered the core SAP HANA and business-platform work on time and budget within six months.

  “Searchlight developed our IT separation approach and managed the commercial engagement with all key vendors, including the seller, system integrator and SAP. The SAP HANA and other business platforms were successfully delivered on time and budget within six months. In addition, a value-creation portfolio has been established, a new IT operating model put in place, a new Head of IT appointed and a support partner selected — an outstanding achievement.”