Mccormick & Company, Incorporated · NYSE:MKC
Mccormick & — Merger or Acquisition (July 2017)
13 slides from Mccormick &'s merger presentation, Jul 19, 2017
Slide 1: McCormick to Acquire Reckitt Benckiser's Food Division
McCormick to Acquire Reckitt Benckiser’s Food Division Investor Presentation / July 19, 2017
Slide 2: Forward-looking statements
Certain information contained in this presentation and our remarks that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words such as "m
Slide 3: Our vision and mission
3 OUR VISION IS TO BRING THE JOY OF FLAVOR TO LIFE OUR MISSION IS TO MAKE EVERY MEAL & MOMENT BETTER
Slide 4: McCormick is the new home of Frank's RedHot and French's
McCormick is the new home of Frank’s RedHot and French’s 4 McCormick to acquire Reckitt Benckiser’s Food Division (“RB Foods”) for $4.2 billion in cash ̶ 2017E revenue of $581 million and Adj. EBITDA of $215 million ̶ Pro forma annual net sales of approximately $5 billion with significant margin a
Slide 5: Iconic flavor brands with leading market share positions
Iconic flavor brands with leading market share positions in desired categories Clear leader in on-trend category Frank’s RedHot is the #1 Hot Sauce in the U.S. and Canada with a passionate consumer following An American icon since 1904 #1 Mustard in the U.S. and Canada delivering classic flavor
Slide 6: Acquisition is a momentous step in executing Investor Day strategy
6 This acquisition is a momentous step in executing the strategy presented at Investor Day Bigger, broader acquisition agenda Adds significant scale in key categories and channels Advances us from #10 to a leading position in U.S. Condiments Frank’s RedHot and French’s are market leading brand
Slide 7: Frank's RedHot is the #1 brand in an advantaged category
$185 $198 $215 2014 2015 2016 Growing interest in flavor Aligned with expanding diversity in U.S. households Millennials have a strong affinity for hot sauce Hot Sauce is an on-trend category and Frank’s RedHot is the clear leader Frank’s RedHot sales growth beats category growth: Much like our
Slide 8: French's is Classic Americana
No High Fructose Corn Syrup All ingredients non-GMO French’s Ketchup over-indexes with millennials The classic brand and flavor of mustard you know and love French’s Ketchup is differentiated as a better-for-you option French’s is Classic Americana Crispy Vegetables are a holiday tradition Innov
Slide 9: Significant growth to our Industrial segment and foodservice scale
Significant growth to our Industrial segment Increases our scale in U.S. and Canada Branded Foodservice by over 50% McCormick products 9 Meaningful growth synergies expected between RB Foods and McCormick products in Fast Casual and other channels Illustrative new tabletop format
Slide 10: Global infrastructure to accelerate growth
Global infrastructure to accelerate growth 10 We plan to make Frank’s RedHot the #1 Hot Sauce globally
Slide 11: Accretive financial impact to McCormick
Accretive financial impact to McCormick Value creation $4.2 billion transaction value implies a multiple of 19.6x 2017E Adj. EBITDA(1) or 15.9x including anticipated run-rate synergies Expected sales growth is in line with McCormick’s long term targets Meaningful margin enhancement anticipated
Slide 12: Combination of powerful flavor brands to drive shareholder value
Combination of powerful flavor brands to drive shareholder value 12 Further enhances McCormick’s scale − Approx. $5bn pro forma sales and $1bn pro forma Adj. EBITDA Iconic brands with leading market shares − Advances McCormick from #10 to a leading position in U.S. Condiments Meaningful margin and e
Slide 13: Non-GAAP financial measures
Certain disclosures in this presentation and our remarks represent non-GAAP financial measures which are prepared as a complement to our financial measures prepared in accordance with United States generally accepted accounting principles (“GAAP”). As a result of the significance of this pending acq