Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Merger or Acquisition (August 2019)
14 slides from Pilgrim's Pride's merger presentation, Aug 28, 2019
Slide 1: Pilgrim's Acquires Tulip UK
Pilgrim’s Acquires Tulip UK August 28, 2019 Pilgrim’s Pride Corporation (NASDAQ: PPC)
Slide 2: Cautionary Notes and Forward-Looking Statements
PRELIMINARY DRAFT Cautionary Notes and Forward-Looking Statements Statements contained in this presentation that share our intentions, beliefs, expectations or predictions for the future, denoted by the words “anticipate,” “believe,” “estimate,” “should,” “expect,” “project,” “plan,” “imply,” “int
Slide 3: Presenters
PRELIMINARY DRAFT Presenters Jayson Penn Chief Executive Officer, Pilgrim’s Pride Fabio Sandri Chief Financial Officer, Pilgrim’s Pride 2
Slide 4: Pilgrim's & Tulip Together: Strategic and Financial Rationale
PRELIMINARY DRAFT Pilgrim’s & Tulip Together: Strategic and Financial Rationale Transaction Values Tulip Limited at £290 Million (~$354 Million based on a 1.22 exchange rate) Terms (1) Valuation Implied Expected EBITDA multiple of 5.4x , including potential synergies and Pilgrim’s Pride Corpor
Slide 5: Tulip and Pilgrim's – A Leading Protein and Prepared Foods Platform
PRELIMINARY DRAFT Tulip and Pilgrim’s – A Leading Protein and Prepared Foods Platform ___________________________ Based on oc&c top 150 index and public figures MoyPark based on last 12 months and Tulip expected revenues 4
Slide 6: Creates Significant Value for Pilgrim's Shareholders
PRELIMINARY DRAFT Creates Significant Value for Pilgrim’s Shareholders Increases Provides further geographic and product diversification in the European market Diversification Platform for growth in Europe and its export destinations Improves Mitigated commodity exposure as a portion of sale
Slide 7: Enhances Diversification and Capabilities
PRELIMINARY DRAFT Enhances Diversification and Capabilities Acquisition furthers Pilgrim’s strategy of expanding into new categories and increases value add capabilities Pro Forma Sales by Geography Pro Forma Synergized EBITDA $ in millions Mexico 13% Europe 27% 2019 PF Sales $12.3B(1) $887mm$889 US
Slide 8: Delivers Best-in-Class and Highly Integrated Capabilities
PRELIMINARY DRAFT Delivers Best-in-Class and Highly Integrated Capabilities £950 Million in sales 8 added-value processing facilities 4 fresh processing facilities Highly integrated, well invested, comprehensive product platform Focus on provenance and UK origin – key driver in UK retail m
Slide 9: Adds Attractive Portfolio with a Broad Product and Customer Mix
PRELIMINARY DRAFT Adds Attractive Portfolio with a Broad Product and Customer Mix 8
Slide 10: Provides Significant Synergy and Growth Opportunities
PRELIMINARY DRAFT Provides Significant Synergy and Growth Opportunities PROVEN HISTORY OF EFFICIENT UNIQUE OPPORTUNITY OF INNOVATION AND INTEGRATION EFFICIENCY Pilgrim’s has a history of successfully identifying and rapidly realizing synergy OPERATIONAL Production efficiencies opportunities EXCELL
Slide 11: Tulip Squarely Aligns with Pilgrim's Strategic Priorities
PRELIMINARY DRAFT Tulip Squarely Aligns with Pilgrim’s Strategic Priorities Combination creates a stronger, more diverse and safer global leader Enhances existing relationships with key customers across retail and foodservice channels in Europe Commitment to innovation, sustainability and growth
Slide 12: Q&A
PRELIMINARY DRAFT Q&A 11
Slide 13: Appendix: Reconciliation of LTM EBITDA
PRELIMINARY DRAFT Appendix: Reconciliation of LTM EBITDA The summary unaudited consolidated income statement data for the twelve months ended June 30, 2019 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the six months ended July 1
Slide 14: pilgrims. All about great taste.
pilgrims. All about great taste. 13