Kadant Inc · NYSE:KAI
Kadant — Merger or Acquisition (January 2024)
11 slides from Kadant's merger presentation, Jan 8, 2024
Slide 1: Acquisition of Key Knife, Inc.
JANUARY 8, 2024 Acquisition of Key Knife, Inc.
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation and the accompanying remarks contain forward- looking statements that involve a number of risks and uncertainties, including forward- looking
Slide 3: Acquisition of Key Knife, Inc.
Acquisition of Key Knife, Inc.
Slide 4: Acquisition Overview
Acquisition Overview • Manufacturer of engineered knife systems for custom chipping, planing, and flaking solutions for wood product industries • Founded in 1986, built a solid reputation for quality products and custom solutions • Based in Tualatin, Oregon, with 141 employees • Strong market positi
Slide 5: Primary Product Offerings
Primary Product Offerings • Conical and drum chipping heads used in sawmill applications • Chipping systems for sawmills, pulp mills, chip plants, and in-field chipping • Planer systems for sawmills • Ring slicers used for particle board mills • Comprehensive field service and training KAI-ACQUISITI
Slide 6: Acquisition Rationale
Acquisition Rationale • Leading position in disposable knife systems • Highly complementary product offering to Kadant’s wood processing product line; long history of collaboration with Kadant Carmanah • Strong management team with long tenure in industry • Strong financial metrics and market positi
Slide 7: Kadant and Key Knife Together
• Opportunity to penetrate new markets leveraging Kadant’s global sales network and relationships • Broadened product portfolio to provide critical solutions to mills • Intercompany collaboration to create increased value for our customers • Greater customer share in highly concentrated market • Str
Slide 8: Integration
Integration • Continue to build on the strength of the Key Knife brand • Specialized manufacturing operations will continue as part of our decentralized operating structure • Opportunities for collaboration and sharing best practices • Key Knife will be included in our Industrial Processing reportin
Slide 9: Financial Metrics
Financial Metrics • $156 million purchase price1 • TTM2 revenue of $65 million • Favorable tax attributes • Borrowed $148 million • Borrowing rate estimated at 6.4% to 6.7% 1 Subject to customary adjustments 2 Trailing twelve months through September 30, 2023 KAI-ACQUISITION UPDATE INVESTOR PRESENTA
Slide 10: Questions & Answers
Questions & Answers To participate in the live Q&A session, please go to investor.kadant.com and click on the Q&A session link to receive a dial-in number and unique PIN. Please mute the audio on your computer. KAI-ACQUISITION UPDATE INVESTOR PRESENTATION–JANUARY 2024 | © 2024 KADANT INC. 10
Slide 11: Investor Relations Contact
INVESTOR RELATIONS CONTACT Michael McKenney, 978-776-2000 IR@kadant.com MEDIA RELATIONS CONTACT Wes Martz, 269-278-1715 media@kadant.com January 8, 2024