Eastern Company (the) · NASDAQ:EML
Eastern Company (the) — Merger or Acquisition (September 2019)
12 slides from Eastern Company (the)'s merger presentation, Sep 3, 2019
Slide 1: Acquisition of Big 3 Precision
Acquisition of Big 3 PrecisionTuesday, September 3, 2019 NASDAQ: EML
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this document about our future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the rules, regulations and relea
Slide 3: Non-GAAP Measures
Non-GAAP Measures This presentation includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) such as Adjusted EBITDA and certain ratios and other metrics derived there from. Adjusted EBITDA is net income before interest, taxes, depreciati
Slide 4: Strategic Rationale
Strategic Rationale Taking significant step toward building a $100 million EBITDA company Transaction aligns with stated acquisition criteria Provides attractive value creation through organic and bolt-on acquisition opportunities Transaction expected to be accretive to 2020 EPS
Slide 5: Transaction Highlights
Transaction Highlights Purchase Price $81.7 million for 100% of outstanding shares of both divisions of Big 3 Holdings Transaction Multiple 6.1x Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, excluding management fees and one-time transaction related expenses) of $1
Slide 6: Our Three-Part Strategy
Our Three-Part Strategy Long-term Aspiration - $100 Million in EBITDA Optimize portfolio of businesses Maximize results from best performing businesses Ensure a solid and flexible balance sheet 01 02 03
Slide 7: Big 3 Precision: Overview
Big 3 Precision: Overview Business DescriptionNiche industry leader in turnkey packaging solutions Highly engineered, value-added product offering Serves diverse customer base from six facilities in key Midwest and Northeast Markets and the U.K. Based on audited financial statements of Big 3 Precisi
Slide 8: Big 3 Precision: Overview Divisions
Big 3 Precision: Overview Divisions Returnable Packaging Packaging Blow Mold Tooling Design Fabrication Dunnage Products & Services Comprehensive designEngineering Prototyping Manufacturing and repair of steel and aluminum returnable packaging Custom dunnage solutions for transporting OEM components
Slide 9: Eastern's Stated Acquisition Evaluation Criteria
Eastern’s Stated Evaluation Acquisition Criteria Good fit Value Creation Potential Strong Financials Sustainable Business Model Committed Talent Product, market and customer overlapEngineering-drivenStrong cost discipline Accelerated market access across businessesAccess to high-priority marketsCost
Slide 10: Compelling Value Creation Potential
Compelling Value Creation Potential Leverage Eastern’s customer relationships Expedite growth through bolt-on acquisitions Instill Eastern’s management disciplines Bring manufacturing efficiencies Maximize results from our best businesses
Slide 11: Strategic Rationale
Strategic Rationale Taking significant step toward building a $100 million EBITDA company Transaction aligns with stated acquisition criteria Provides attractive value creation through organic and bolt-on acquisition opportunities Highly profitable business expected to be accretive to 2020 EPS
Slide 12: The Eastern Company Corporate Office
The Eastern CompanyCorporate Office112 Bridge StreetP.O. Box 460Naugatuck, ConnecticutPhone: (203) 729-2255Fax: (203) 723-8653ir@easterncompany.com