Air Products And Chemicals, Inc. · NYSE:APD
Air Products And Chemicals — Merger or Acquisition (June 2012)
10 slides from Air Products And Chemicals's merger presentation, Jun 19, 2012
Slide 1: Strategy for Success Growing in Latin America: Indura & Air Products
Strategy for Success Growing in Latin America: Indura & Air Products June 19 2012
Slide 2: Forward looking statement
Forward looking statement This presentation contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about growth, projections, and business outlook. These forward-looking statements are based on management’
Slide 3: Strategic drivers and transaction highlights
Strategic drivers Expands geographic presence by creating #2 position in the 2nd highest growth region Respected market leader with a well-known Brand Depth and breadth of employees Transaction highlights Purchase CLP 451 billion ($884 million) for 67% of Indura in Consideration two stages Indura CL
Slide 4: Indura: The largest independent industrial gas company in Latin America
Indura: The largest independent industrial gas company in Latin America: 2,300 employees Liquid Bulk 15% 50,000 customers 20 production plants Packaged Gases & Hardgoods Strong brand name and recognition 100 retail stores 40 transfills Welding and safety equipment
Slide 5: Indura in Latin America
5 Chile 62% Columbia 20% Argentina 10% Equador 4% Peru 4% #2 #4 #1 #3 Indura in Latin America Revenue = $478 MM #2 Market Position Note: Revenue = Mar 2012 LTM
Slide 6: Latin American market offers high growth potential
6 Latin American market offers high growth potential 0% 1% 2% 3% 4% 5% 6% 7% Asia Latin America US / Canada Europe 2013 – 2022 Manufacturing Growth Rates Expect double-digit Latin America Industrial Gas Market Growth
Slide 7: This will create a $1.5 billion presence for Air Products in Latin America
7 This will create a $1.5 billion presence for Air Products in Latin America Air Products Brazil Via Grupo Infra: Mexico Belize Honduras Guatemala El Salvador Nicaragua Indura: Chile Peru Ecuador Argentina Colombia Notes: Market Share based on AP 2010 estimate, including 100% of JV Latin America Maj
Slide 8: Acquisition economics
8 Acquisition economics Purchase Consideration (67%) CLP 451 B ($884MM) -Equity CLP 351 B -Proportional debt CLP 100 B Revenue Mar LTM (100%) CLP 244 B ($478MM) EBITDA Mar LTM (100%) CLP 52 B ($102MM) EBITDA Multiple 13x EPS Accretive in FY13 and beyond Briones family has a put option for their rema
Slide 9: Value creation
9 Value creation Cost synergies -Independent corporate costs -Purchasing -Shared services -Best practices (Indura Air Products ) Growth opportunities -Broaden on-site presence -Application extension -New offerings (Indura Air Products ) -Extension of Indura brand
Slide 10: Wrap-up
10 Wrap-up Compelling strategic drivers -Expands geographic presence by creating #2 position in the 2nd highest growth region -Respected market leader with a well-known Brand -Depth and breadth of Employees Significant value creation Excellent fit with 2015 goals
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