Lci Industries · NYSE:LCII
Lci Industries — Merger or Acquisition (November 2019)
9 slides from Lci Industries's merger presentation, Nov 22, 2019
Slide 1: LCI Industries Acquisition of CURT Group
LCI INDUSTRIES LCI Industries Acquisition of CURT Group Investor Conference Call November 22, 2019 1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
LCI INDUSTRIES Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains certain “forward-looking statements” including with respect to the expected timing of the closing of the transaction, the expected financial impact and accretive nature of the transaction, the expect
Slide 3: Transaction Overview
LCI INDUSTRIES Transaction Overview Aligns with LCI’s Diversification Strategy to Expand to Attractive Markets and Drive Outperformance Throughout a Cycle 3
Slide 4: Strategic Rationale
LCI INDUSTRIES Strategic Rationale • Advances LCI’s diversification strategy, doubling the size of aftermarket business • Increases product portfolio with highly complementary stable of leading towing and truck products Growth • Expands and strengthens distribution network Engine • Presents addition
Slide 5: CURT Group Business Overview
LCI INDUSTRIES CURT Group Business Overview ✓ Leading manufacturer and distributor of branded towing TTM 2019 Key Financial Metrics products and truck accessories ✓ Headquartered in Eau Claire, WI; ~800 employees ✓ Owns and operates leading brands including CURT, Aries, Luverne, Retrac and UWS $255M
Slide 6: Attractive Aftermarket Growth Opportunities
LCI INDUSTRIES Attractive Aftermarket Growth Opportunities Expansive Distribution Network • Truck and towing aftermarket is a combined $7.5 billion+ addressable market, expected to grow further • CURT has a 17-year history of consistent annual sales growth; 5-year sales CAGR of 6% • Enables distribu
Slide 7: Transaction Brings Revenue Diversification
LCI INDUSTRIES Transaction Brings Revenue Diversification In-line with LCI’s long-term growth strategy, this transaction doubles the revenues of the aftermarket business and diversifies the business, further mitigating the industry cyclicality of the RV space Aftermarket Increases Aftermarket % of A
Slide 8: Financial Summary
LCI INDUSTRIES Financial Summary • $340 million Purchase Price • EV / EBITDA multiple of 9.7 TTM 2019 EBITDA • Expect to close before the end of 2019 • Expected to be immediately accretive to revenues, operating margins, and EPS Value Creation • Enables further strong cash flow generation • Adds str
Slide 9: Q&A
LCI INDUSTRIES Q&A
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