How Delek Accelerated Post-Merger Integration: Successful Playbook

Delek US Holdings, Inc., a downstream energy company founded in 2001, possesses a strategic goal to double the scale of the organization every three to five years needing technology solutions to integrate businesses rapidly. With the acquisition of Alon USA on July 1, 2017, they met their enterprise strategic goal to double the scale of the organization and began operating at a new scale. The acquisition has opened the door to potential growth, increased synergy and reduced net operational costs. They increased their access to crude oil from Permian Basin in the refining segment, added logistics assets along with approximately 600 convenience stores, including company owned stores located in the southwestern region for retail segment. 

With the integration of Alon acquisition, Delek captured $89 million of synergies on an annualized basis and are on track to reach their goal of $105 to $120 million of annualized synergies. In this webcast, you will learn how the project led to faster integration, strategic alignment and mitigated the risk of knowledge going out of the door (knowledge transfer). The project created flexibility and adoptability through business processes maintenance, consistency and simplicity by centralized process ownership and ultimately led to cultural and change management.  

Key takeaways:

• Consolidation of ERP systems (4 Months): reduced cost on system maintenance and licenses 
• One financial system of record and all business operations in one system: all financial reporting out of one system 
• Standardization & consolidation of business processes: closing books in one system 

Timestamps:

• 1:40 - Introductions
• 2:30 - Company Overview
• 7:00 - Goals and Strategy
• 7:40 - M&A
• 9:00 - Integration Planning and Execution
• 14:08 - 10 Main Points for Integration Planning and Execution
• 16:33 - Planning Org Structure
• 21:50 - Applications Integration
• 23:57 - Phase 1
• 27:10 - Phase 2
• 31:38 - Business Benefits of Accelerated Integration
• 32:40 - Challenges
• 36:25 - Recap - What Worked Well
• 37:30 - Recap - What Can Be Done Better
• 39:10 - Questions

Speakers

• Nibedita Gantayat, Senior SAP FICO Functional Analyst, Delek US Holdings
• Jyoti Kakarala, Senior Director ERP & Business Intelligence, Delek US Holdings