High Liner Foods Incorporated · TSX:HLF
High Liner Foods — Merger or Acquisition (November 2011)
16 slides from High Liner Foods's merger presentation, Nov 17, 2011
Slide 1: Creating North America's Leading Value-Added Seafood Supplier
Creating North America’s Leading Value-Added Seafood Supplier High Liner Foods Acquisition of Icelandic Group’s U.S. and Asian Operations November 17, 2011
Slide 2: Disclaimer
Disclaimer Certain statements made in this presentation are forward-looking and are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate and may differ materially from actual future events or results. Actual results or even
Slide 3: Transaction Rationale
Transaction Rationale Creates leading North American value-added seafood supplier Highly complementary businesses including products, customer base and geography Adds strategic sourcing capabilities in Asia and Iceland Significant manufacturing and distribution synergies potential Modern a
Slide 4: Overview of Icelandic USA
Overview of Icelandic USA Icelandic USA comprised of North American and certain Asian assets and business activities of Icelandic Group h.f. Leading provider of value-added seafood products and high-quality Icelandic fillets to U.S. foodservice and retail customers State-of-the-art 150,000 ft2
Slide 5: Creates Leading North American Value-Added Seafood Supplier
Creates Leading North American Value-Added Seafood Supplier Distinct Canadian leader in both retail and foodservice channels Leading player in U.S. value-added foodservice market with national distribution capabilities Shift in revenue mix creates a strong U.S. growth platform Increasing U.S
Slide 6: Highly Complementary Businesses
Highly Complementary Businesses High Liner Icelandic USA Products Value-added processed Value-added processed and unprocessed Retail & Other Retail & 10% Other (1) 40% Customer Base Food Service 60% Food Service 90% Other Other Canada 1% 5% 2% Sales by Canada USA (1) 44% Geography 55% USA 93% Select
Slide 7: Highly Complementary Businesses
Highly Complementary Businesses Opportunity to create an efficient low cost North American manufacturing footprint Between High Liner and Icelandic USA, there are 6 production facilities across North America with total annual capacity of approximately 318 million lbs NORTH AMERICA CHINA Lunenbur
Slide 8: Unique Sourcing and Distribution Capabilities
Unique Sourcing and Distribution Capabilities Icelandic USA sources fish from almost 20 countries worldwide Predominantly from U.S., Asia and Iceland Integrated supply with Asia operations and 60-year relationship with prominent Iceland producers Stringent supplier selection process and moni
Slide 9: Significant Manufacturing and Distribution Synergies Potential
Significant Manufacturing and Distribution Synergies Potential Annual synergies expected to be in the range of $16 – $18 million Total near-term potential cost savings and synergies of approximately $12.1 million Plant optimization through improved economies of scale in production and distribu
Slide 10: Strong Track Record of Achieving Synergies
Strong Track Record of Achieving Synergies History of realizing synergies and successfully integrating acquisitions FPI acquisition: synergies of $14 million as planned, integration within 10 months Viking acquisition: expected synergies of ~$2 million, integration within 3.5 months $368 $268
Slide 11: Platform for Future Growth
Platform for Future Growth Well located Newport News, VA plant serves all 50 states Highly leverageable platform positioned for growth and expansion Flexible, modular manufacturing platforms and customized production lines Recently completed capital investment projects will drive incremental
Slide 12: Transaction Overview
_2- HIGH LINER Koods INCORPORATED Transaction Overview
Slide 13: Transaction Description
Transaction Description Purchase price of US$230.6 million cash consideration plus working capital adjustments 5.0x adjusted EBITDA(1) including expected total ongoing annual synergies High Liner has entered into a 7-year royalty free licensing agreement for use of Icelandic Seafood™ brand in
Slide 14: Financing Summary
Financing Summary Acquisition to be financed through the issuance of long-term debt and an increase in High Liner’s existing asset-based loan facility US$250 million 6-year Senior Secured Term Loan B Existing bank facility increases from US$120 million to US$180 million Increased borrowing s
Slide 15: Icelandic USA Financial Summary
Icelandic USA Financial Summary Last twelve months ended September 30, 2011 Revenue of US$268 million Adjusted EBITDA(1) of US$29 million (1) Excluding non-recurring items and adjusted for a full year of savings from investment in a new freezer facility 15
Slide 16: Summary
Summary Creates leading North American value-added seafood supplier Highly complementary businesses including products, customer base and geography Adds strategic sourcing capabilities in Asia and Iceland Significant manufacturing and distribution synergies potential Modern and strategical
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