In early 2001, American Airlines requested ARCADIS assist them in planning and implementing their due diligence and compliance assessment activities associated with the proposed acquisition of TWA.  As with many transactions, this project was on an accelerated schedule and required the rapid development of a scope of work, assembly of multiple and multi-disciplinary project teams, coordination with locations across the U.S. and deployment of senior compliance and due diligence experts to rapidly and effectively assess facility conditions and compliance status.

The scope of work called for detailed compliance evaluations as well as in depth assessments of potential contamination and associated environmental liabilities.  ARCADIS developed a streamlined reporting format and provided on-line, project-specific training to project personnel for project implementation and reporting.   Given the long history of operation of the target company, significant environmental conditions were identified at multiple locations requiring detailed analysis and development of potential remedial costs and liabilities.  Analysis included an evaluation of the appropriateness of pre-existing environmental investigations, risk assessment, evaluation of proposed remedial activities, and remedial cost estimating.  This information was then provided to the client's decision makers who factored potential environmental and compliance liabilities into the transaction valuation.

Prior to closure of the transaction, ARCADIS coordinated and implemented regulatory support activities necessary to ensure that all applicable environmental permits, registrations and other authorizations were transferred to the new entity.  This effort involved identifying appropriate transfer requirements, timeframes, forms and requirements, agency negotiation and coordination, completion of the required paperwork and the timely submission of documents.

Project Highlights

ARCADIS rapidly deployed a multi-disciplinary project team to assess potential compliance and environmental liabilities associated with the acquisition of a major airline.  Information was rapidly assembled, analyzed and reported in a format easily understood by decision-makers.  Potential liabilities worth an estimated $90 million were identified and accounted for in the transaction.