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Guidelines for Process Safety Acquisition Evaluation and Post Merger Integration Herausgegeben von CCPS von Center for Chemical Process Safety (CCPS) (eBook)

  • Erscheinungsdatum: 13.11.2013
  • Verlag: Wiley-AIChE
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Guidelines for Process Safety Acquisition Evaluation and Post Merger Integration

It is crucial for process safety professionals to be aware of best practices for post merger integration at any level. A compilation of industry best practices from both technical and financial perspectives, this book provides a single reference that addresses acquisitions and merger integration issues related to process safety. Presently, there are limited references on how to handle acquisitions in several different CCPS publications and almost no coverage of the post-merger integration issue, so this reference fills a notable gap in the coverage.


    Format: ePUB
    Kopierschutz: AdobeDRM
    Seitenzahl: 336
    Erscheinungsdatum: 13.11.2013
    Sprache: Englisch
    ISBN: 9781118216200
    Verlag: Wiley-AIChE
    Größe: 9342 kBytes
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Guidelines for Process Safety Acquisition Evaluation and Post Merger Integration

Chapter 1


" To know is to survive and to ignore fundamentals is to court disaster ."

H.H. Fawcett 1


If you have not read the preface, you will not have been introduced to Courtney. If you have a few minutes take the time to go back and become familiar with Courtney. Her story will continue at the beginning of each chapter .

Carla the VP of Compliance and Regulatory Affairs, and Courtney's boss continued to explain the business aspects of the proposed acquisition of White Hot Chemicals. However Courtney's mind continued to focus on what Carla had just said, that as part of Courtney's responsibilities they wanted her to assess the state of White Hot's process safety programs as well as all other HSE related matters. In their US operations Bland's process safety matters were handled by the Asset and Operations Integrity (A&OI) group, not HSE. When Courtney raised this point, her boss explained because of the turn-around at Bland's Pasadena, TX site and the expansion at Port Arthur, TX the A&OI group didn't have anyone they could assign to the due diligence team. In fact, one of the reasons Courtney was assigned to the due diligence team was Courtney oversaw the major hazards programs of Bland's Fawley, UK operations and was the HSE director there for three years. That plus Carla noted that White Hot's Ternuezen facility was one of the potential real 'gems' in the acquisition and they felt Courtney's previous experience with major hazard legislation in Europe would be a real plus. That is why they had every confidence Courtney could handle the process safety as well as all the other HSE related issues. Courtney thought to herself – "I wish I had that same level of confidence!"


You have probably heard the adage that only 10% of an iceberg is visible above the waterline, the other 90% being submerged or hidden from view. The development and publication of this Guideline was based on similar findings of Center for Chemical Process Safety (CCPS) member companies – namely many process safety issues were found only after they had purchased a set of assets, facilities or operations. In other words, prior to the purchase and despite doing a due diligence review of the site or business, these process safety issues were 'below the waterline' only to be discovered later after the deal closed.

FIGURE 1 The Iceberg principle

This situation is not new to the health, safety and environmental community. Often in the past environmental legacy issues were not investigated prior to purchasing a site or business. Afterwards and with changing legislation many companies found they had 'inherited' significant environmental liabilities with the purchase. Sometimes these liabilities required investments of tens of millions of dollars in order to remediate or correct conditions left by the previous owners. Today, investigating environmental matters forms an integral part of the due diligence process when purchasing a facility that stores, processes, manufactures or handles hazardous materials or chemicals. The same holds for certain health issues such as those associated with asbestos. However, this practice has yet to become standard or routine when it comes to identifying and evaluating process safety or major accident hazard issues as an integral part of undertaking a due diligence investigation of a potential acquisition.

While there are a number of explanations for this, perhaps the primary reason is management not recognizing the potential costs that can accompany correcting or rectifying gaps in an operations approach to process safety or major hazard risks. Agains

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