Kadant Inc · NYSE:KAI
Kadant — Merger or Acquisition (December 2018)
12 slides from Kadant's merger presentation, Dec 10, 2018
Slide 1: Kadant to Acquire Syntron Material Handling
Exhibit 99.2 Kadant to Acquire Syntron Material Handling Investor Presentation December 10, 2018
Slide 2: Forward-Looking Statements
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 sta
Slide 3: Acquisition Overview
Acquisition Overview Syntron Material Handling • Leading manufacturer of vibratory and conveying equipment • Trailing twelve month revenue of approximately $89 million1 • Purchase price: approximately $179 million in cash2 • Favorable tax profile • Financing through borrowing • Main facility in Miss
Slide 4: Full Suite of Industry Leading Products
Full Suite of Industry Leading Products Breadth and depth of product lines provide a unique competitive advantage and a true “one-stop shop” for customers Recognized Product Line(1) Segment Brands (% of 2017 revenue) Representative Product Offering Description ▪ Light Industry Application: Feeding,
Slide 5: Syntron Products are a Low % of Overall Cost with a High Cost of Failure
Syntron Products are a Low % of Overall Cost with a High Cost of Failure High Cost of Failure $100M+ Surface Facilities 1%-10% Illustrative Example (2) Potash Mine Mine Tunneling and Preparation Unit Throughput Per 20%-30% 750 Hour (Tons) x $ Per Unit Revenue $225 Mining Equipment 20%-30% Revenue Pe
Slide 6: Diversified Business
Diversified Business Diverse End Markets(1) Pulp & Paper 4% Minerals Met Coal (Steel) 16% 10% Aggregates, Cement & Asphalt 12% Mining(2) 16% Thermal Coal 13% Food & Packaging 15% Industrial Processing 14% Diversity Is Driven by Accelerated Growth in Underserved End Markets (1) Based on estimates of
Slide 7: Market Drivers
Market Drivers ✓ Overall demand for material handling equipment in the U.S. is expected to grow 3-4%+ per annum (2) Key Sub-Markets % Revenue (1) ‘17-’20 CAGR (2) End Market ✓ Key submarkets (e.g., packaging) are growing 3-4%+ per annum Momentum Global GDP growth and globalization benefitting the br
Slide 8: 2017 Revenue Mix
2017 Revenue Mix New Fabricated Installations (“NFIs”) 22% Aftermarket 42% Replacements & Upgrades 36% 8 © 2018 Kadant Inc. All rights reserved.
Slide 9: What We Like about Syntron
What We Like about Syntron • Leading market positions for vibratory equipment and conveying equipment through Syntron® and Link-Belt® brands. • High impact products on large capital investments • Strong organic growth and profitability over last 4 years • Stable earnings through recurring revenue •
Slide 10: Integration Plan
Integration Plan • Syntron’s management team will continue to operate the business within Kadant’s decentralized structure • Potential Synergies: • Expand current Kadant product portfolio into new markets through Syntron • Strengthen Syntron’s relationships in Pulp & Paper • Low cost sourcing 10 © 2
Slide 11: Questions & Answers
Questions & Answers To ask a question, please call 888-326-8410 within the U.S. or +1 704-385-4884 outside the U.S. and reference 2824727. Please mute the audio on your computer. 11 © 2018 Kadant Inc. All rights reserved.
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