Disposition Strategies forExcess Special Use Assets.ppt

IAMC Fall 2005 Corpus Christi Pfizer Confidential Disposition Strategies for Excess Special Use AssetsMert Livingstone (Johnson Johnson) / Sean Nugent (Pfizer) What are special use assets Business drivers Range of possible outcomes What/who is involved Case Studies (2) Lessons learned QA  What are they (our definition)? Facilities: customized RD, manufacturing, etc. Specialized equipment (inside the buildings) Non-market conforming assets What they are not! Office buildings Warehouse Mergers Acquisitions Business/Product Dispositions Technology Changes Business Model Optimization/Refinement Consolidation Outsourcing/Off-shoring Two of these to be illustrated by case studies. Sale/lease to end-user for like use Sale/lease to end-user for alternative use Sale/lease to developer Donation (academic, non-profit, community) Lease termination / sub-lease Demolition Business spin-off Redeployment of assets Real estate Equipment Blend of any of the above What? Evaluating real estate strategic options Winding down and closing the operations Transferring activities to go-forward sites Decontaminating/Decommissioning (?) Preparing assets for disposition Disposing Who? Internal stakeholders Service providers Economic Developers / all levels of Government Educational institutions Case Studies Pfizer acquires Warner-Lambert (2000) Pfizer acquires Pharmacia (2003) Pfizer RD approach: integration of both former companies into smaller footprint 18 locations; 5 countries; 5.3M SF Outcome: Reduction of 4.8 M SF $1B assets off Pfizer’s books $240M annual OpEx savings Completed in 22 months Who: Internal stakeholders: Impacted business lines (PGRD) Operations, Finance, HR (PGRD) Corporate: Legal, Corporate Affairs, Real Estate, HR…… External stakeholders: EHS specialty consultants Program management consultants Real Estate service providers Community/County/State government bodies Non-profit boards; academic institutions Start-up companies Pfizer RD approach: Adapt t