Over a two-month period, EnviroForensics conducted environmental due diligence for over 70 bottling and distribution facilities throughout the USA and the Caribbean. This mega-merger of Whitman Corporation and PepsiAmericas, Inc. resulted in the creation of the world’s second largest bottler of Pepsi-Cola products.
In addition to conducting the due diligence work for the merger, EnviroForensics was intimately involved in the insurance defense and coverage work of the Whitman Corporation’s environmental and asbestos liabilities. Their liabilities were associated with the ownership of heavy manufacturing companies including rail and transportation equipment, aerospace parts manufacturing, metal finishing, and the assembly of pneumatic components. The consulting work included site investigation, remediation activities, and expert witness services on high profile insurance coverage litigation. The projects were further complicated because the Whitman Corporation sold off various product divisions and there was competing interest from the different companies for the shared historical insurance used to defend and indemnify companies against environmental and personal injury claims.
BACKGROUND
Environmental due diligence was required to satisfy requirements necessary to assess and quantify environmental liabilities of the two merging companies. Additionally, EnviroForensics conducted site investigation and remedial actions for the Whitman Corporation’s liabilities associated with their historical industrial operations and to provide expert witness services for the on-going insurance coverage litigations.
APPROACH
EnviroForensics responded to the demand to conduct due diligence work at 70+ bottling and distribution facilities in North America and the Caribbean in less than 60 days by mobilizing its team to canvass the country and meet the tight timeline required by the merging parties.
OUTCOME
The companies successfully merged and enlisted EnviroForensics to conduct investigation and response activities required to mitigate long-tail liabilities and provided expert witness work to effectuate the coverage of insurance claims, which culminated in a global settlement of PepsiAmericas historical insurance assets.
