Tredegar Corporation · NYSE:TG
Tredegar — Merger or Acquisition (October 2011)
17 slides from Tredegar's merger presentation, Oct 28, 2011
Slide 1: Shareholder Conference Call: Terphane Acquisition
Shareholder Conference Call Terphane Acquisition October 26, 2011 Exhibit 99.3
Slide 2: Nancy Taylor
Nancy Taylor
Slide 3: Forward-Looking Statements
Forward-Looking Statements These forward-looking statements are not historical facts, but statements that involve risks and uncertainties. Actual results could differ materially from those included in or implied by these forward- looking statements. Factors that may cause actual results to differ ma
Slide 4: Our Focus is Manufacturing
Our Focus is Manufacturing
Slide 5: Delivering on Our Acquisition Strategy - Our Stated Objectives
Delivering on Our Acquisition Strategy - Our Stated Objectives • Business Development as a means for market and customer diversification • Our stated criteria for acquisition: Manufacturing presence with: – Defendable competitive advantage – Growth potential – Diversified customer base – Good manage
Slide 6: Terphane Meets All of Our Criteria
Delivering on Our Acquisition Strategy: Terphane Meets All of Our Criteria • A leading manufacturer of specialized polyester films (PET) in Latin American market
Slide 7: Terphane Provides Growth Opportunity
Delivering on Our Acquisition Strategy: Terphane Provides Growth Opportunity • Brazil - High Growth and Sound Economy – Growing middle class, growing population of new consumers • Key Growth Area for Branded Products – Appetite for branded food and consumer goods – Market demand for packaging techno
Slide 8: Terphane Provides Strategic Fit
Delivering on Our Acquisition Strategy: Terphane Provides Strategic Fit • Highly complementary new customers and end markets • Complements our existing expertise in specialty films and broadens our product and technology portfolio • Adds PET expertise to our Polypropylene (PP) capabilities • Leverag
Slide 9: Tredegar Film Products: New Latin American Footprint
Tredegar Film Products: New Latin American Footprint • Broader Presence in the Americas : • Production facilities in Cabo de Santo Agostinho, Brazil and Bloomfield, NY • Headquarters in São Paulo Terphane Tredegar Films
Slide 10: Kevin O'Leary
Kevin O’Leary
Slide 11: Terphane Acquisition Highlights
• Price: $188 million • Funded with available cash on hand and $125 million in debt from Tredegar’s existing $300 million revolving credit facility • Net sales of $160 million for the last twelve months, as of June 30, 2011 • Expected to be accretive within the next year • Expected capacity expansio
Slide 12: Sources & Uses
Sources Uses Cash $ 68 Purchase Price $ 188 Revolving Credit Facility 125 Transaction Costs 5 Total Sources $ 193 Total Uses $ 193 Financial Overview Sources & Uses $ in millions • Net Debt to Adjusted EBITDA at closing is less than 1.0 times • Tredegar retains the financial strength to pursue strat
Slide 13: Combined Results for Films and Tredegar
Year Ended December 31, 2010 Terphane 1 Films Combined Films Combined Tredegar 2 Net Sales $127 $520 $647 $850 Adjusted EBITDA $ 28 $105 $133 $118 Last Twelve Months Ended June 30, 2011 Terphane 1 Films Combined Films Combined Tredegar 2 Net Sales $160 $531 $691 $915 Adjusted EBITDA $ 44 $103 $147 $
Slide 14: Purchase Price Summary
Purchase Price $188MM EBITDA Multiple (2010 EBITDA 1 ) 6.7x EBITDA Multiple (LTM EBITDA; as of June 30, 2011 1 ) 4.3x Purchase Price Summary 1. Based on Terphane’s historical financials Financial Overview
Slide 15: Global PET Capacity Utilization Projections
Financial Overview Global PET Capacity Utilization Projections
Slide 16: Summary
Summary • Excited about the growth and diversification opportunity • Meets our acquisition criteria • Strong strategic fit with Films • Expands our footprint • Maintaining financial stability post-acquisition
Slide 17: Q&A
Q&A