Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Merger or Acquisition (August 2018)
11 slides from Tyson Foods's merger presentation, Aug 20, 2018
Slide 1: Acquisition of Keystone Foods Investor Presentation
Acquisition of Keystone Foods Investor Presentation August 2018
Slide 2: Transaction Overview
Transaction Overview • Announcing the acquisition of Keystone Foods from Marfrig Global Foods for Summary $2.16 billion in cash • ~8.3x LTM Adjusted EBITDA(1), inclusive of synergies • Expect run-rate cost synergies of approximately $50MM by the third year Valuation and • Transaction expected to be
Slide 3: Compelling Strategic Rationale
Compelling Strategic Rationale SUSTAINABLY FEED THE WORLD WITH THE FASTEST GROWING PROTEIN BRANDS GROWING OUR PORTFOLIO EXPANDING INTERNATIONAL BUSINESS OF VALUE-ADDED PROTEIN > Keystone’s strength in the > Expands value-added protein offerings Asia Pacific region enhances through foodservice, ret
Slide 4: Activating M&A to Shape Our Portfolio
Activating M&A to Shape Our Portfolio New New New Scale/ Geographies/ Brands Capabilities Synergy Markets 4
Slide 5: Logical Next Step in Strategy
Logical Next Step in Strategy Expands portfolio • Expands Tyson’s portfolio of value-added protein products of value-added • Improves competitiveness to sustain long-term growth protein products Expands • Increases Tyson’s competitiveness in the foodservice channel with a focus capabilities to on gl
Slide 6: Keystone Foods Overview
Keystone Foods Overview • Keystone Foods is a leading supplier of high-quality, value-added food products to the large and growing global foodservice channel, with a focus on quick-service restaurant chains • Long-standing, trusted relationships with the leading global quick-service restaurant chain
Slide 7: Established and Profitable Business in Fast Growing International Markets
Established and Profitable Business in Fast Growing International Markets Revenue by Geography (1) International ~35% U.S. ~65% Keystone provides a significant foundation for international growth with in-country operations and exports in fast growing markets in the Asia Pacific region as well as exp
Slide 8: Tyson and Keystone Combine to Create Long-Term Value
Tyson and Keystone Combine to Create Long-Term Value Represents an important step in our growth strategy Complements our portfolio with value-added protein products serving foodservice, retail and convenience channels Expands our international foundation with an established and profitable business i
Slide 9: Keystone Foods Adjusted EBITDA Reconciliation
Keystone Foods Adjusted EBITDA Reconciliation (In millions) (Unaudited) Twelve Months Ended June 30, 2018 Profit from continuing operations $ 119 (+) Parent company fees 5 (+) Non-recurring expenses 13 (+) Amortization of biological assets 21 (+) Depreciation and other amortization 43 (+) Finance ex
Slide 10: Keystone Foods Adjusted EBITDA Reconciliation, continued
Keystone Foods Adjusted EBITDA Reconciliation, continued Keystone Foods prepares its consolidated financial statements in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board (collectively, “IFRS”). Keystone Foods provided Tyson Foods
Slide 11: Thank You
(2) Thank Tyson You