Service Stream Limited · ASX:SSM
Service Stream — Merger or Acquisition (March 2017)
11 slides from Service Stream's merger presentation, Mar 6, 2017
Slide 1: Proposed acquisition of TechSafe
Service Stream Limited For personal use only Proposed acquisition of TechSafe Leigh Mackender Managing Director 6 March 2017
Slide 2: Transaction Highlights
Transaction Highlights For personal use only Service Stream proposes to acquire 100% of TechSafe, the largest independent electrical inspection company in Australia Total transaction consideration expected to be $20m1 An initial cash component of $19.0m2 Plus a deferred cash payment of $1.0m
Slide 3: Service Stream Performance
Service Stream Performance For personal use only Service Stream is well positioned to undertake an acquisition to supplement the strong pipeline of organic growth and further diversify revenues NPAT $16 ($m) $14 13.0 Over the past three years Service Stream has returned to solid $12 11.2 $10 and s
Slide 4: Compelling Strategic Rationale
Compelling Strategic Rationale For personal use only The strategic rationale for Service Stream’s acquisition of TechSafe is sound and is expected to deliver significant benefits Strategic fit with Service Stream’s existing ‘ticket-of-work’ business model and aligned to our core competencies Div
Slide 5: Compelling Financial Rationale
Compelling Financial Rationale For personal use only The proposed transaction is expected to be EPS accretive to Service Stream’s pre-acquisition earnings forecast on both a reported and adjusted basis. TechSafe revenues are forecast to increase from $9.5m in FY16 to approx. $14.0m in FY17, on t
Slide 6: Details of the Proposed Transaction
Details of the Proposed Transaction For personal use only The proposed transaction is for Service Stream to acquire all of the shares of TechSafe Australia Pty Ltd and TechSafe Management Pty Ltd. Total transaction consideration of $20.0m comprising: an aggregate initial cash consideration of
Slide 7: Techsafe Overview
Techsafe Overview For personal use only A provider of independent inspection, auditing and compliance services and specialist technical advice across the electrical industry FY17 Forecast On track to deliver 50% revenue 95+ field based Inspectors Exposed to growing markets Aligned business
Slide 8: Experienced Management Team
Experienced Management Team For personal use only TechSafe’s Managing Director Ashley Haynes will continue to oversee operations and the future growth of the business TechSafe’s Managing Director, Mr Ashley Haynes, will join the Service Stream management team following completion of the proposed t
Slide 9: TechSafe presents strategic growth opportunities
TechSafe presents strategic growth opportunities For personal use only Service Stream will target growth opportunities on the back of the TechSafe acquisition, leveraging our expanded and long-term client relationships 1 Electrical Inspection 2 Broader Utilities Market: Gas, 3 Wider Asset Inspection
Slide 10: Related Party Matters
Related Party Matters For personal use only The proposed transaction is classified as a ‘Related Party’ transaction which requires Service Stream shareholder approval in accordance with ASX Listing Rule 10.1 The Chairman of Service Stream (Mr Brett Gallagher) and his wife have an interest in entit
Slide 11: Next Steps
Next Steps For personal use only Details of an Extraordinary General Meeting (EGM) of Service Stream Limited to consider the proposed transaction are expected to be forwarded to shareholders in the coming weeks. The Notice of Meeting for the EGM will be accompanied by an Explanatory Statement th