Myers Industries, Inc. · NYSE:MYE
Myers Industries — Merger or Acquisition (January 2024)
16 slides from Myers Industries's merger presentation, Jan 2, 2024
Slide 1: Myers Acquisition of Signature Systems
Myers Acquisition of Signature Systems January 2, 2024
Slide 2: Safe Harbor Statement & Non-GAAP Measures
Safe Harbor Statement & Non-GAAP Measures Statements in this presentation include “forward-looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including information regarding the Company’s financial outlook, future plans,
Slide 3: A Powerful Addition to Myers Industries
A leading North American composite ground protection solutions provider in a high growth infrastructure end market Well-aligned with Myers’ strategy – complementary branded product lines, attractive end market Strong earnings profile, financially attractive for Myers shareholders Advances Myers from
Slide 4: Protecting the World from the Ground Up
Protecting the World from the Ground Up Leading manufacturer of composite ground protection solutions Leading provider of turf protection solutions for stadiums and event venues Significant continued growth opportunity for composite mats due to overall end-market demand and displacement of tradition
Slide 5: Full Line of Branded, Differentiated Products
Full Line of Branded, Differentiated Products A Durable, Sustainable, Composite Ground Protection Solution for Every Application and Every Environment Ground Protection Turf Protection Representative products
Slide 6: A Compelling Opportunity
A Compelling Opportunity Total Consideration Projected 2023 EBITDA Multiple Projected 2023 Revenue Projected 2023 YoY % $350M 8.0x $122M 14% Projected Adj. 2023 EBITDA Projected Adj. EBITDA % $44M 36% Acquisition is highly accretive to EBITDA and EPS, with a strong free cash flow profile and a platf
Slide 7: Growing Demand Across Diverse End Markets…
Growing Demand Across Diverse End Markets… Sources: Company data, Third party research 7%
Slide 8: …With Significant Growth Runway
…With Significant Growth Runway Sources: Third party research * Alternative Materials include wood, gravel, and other legacy materials Global ground protection matting market ($US) North America 32% (~$0.9B) ROW 68% (~$1.8B) North America matting market (million sq. ft.) Composite 19% (66M sq. ft.)
Slide 9: Transaction Summary
Transaction Summary Purchase Price $350 million, subject to final working capital adjustment after close Transaction Costs Approximately $6 million excluding financing fees (majority at close) Cost Synergies $8 million in annualized operational and cost synergies implemented by 2025 EPS Impact US GA
Slide 10: Financing and Capital Structures
Financing and Capital Structures Capital Structure Transaction to be funded by a secured 5-year $350M term loan A facility To amend $250M Senior Revolving Credit Facility Projected debt ratio is within Myers’ strategy to have a net leverage ratio of ~3x at the time of acquisition, with free cashflow
Slide 11: Compelling Transaction for Shareholders
Leading market position Commercial and Operational Excellence opportunities Maintains Myers strong capital structure Positive EBITDA and EPS projections Compelling Transaction for Shareholders High Growth Infrastructure end market Strong Brand Leading Market Position Attainable cost synergies levera
Slide 12: Signature Acquisition is On Strategy
Signature Acquisition is On Strategy Builds on current Myers’ technology capabilities A strong team and excellent cultural fit Moves Myers into adjacent, high-growth, end markets High quality, branded products with a leading market position and a positive ESG profile Highly engineered, large format
Slide 13: Myers Moves to Horizon 2 of Long-Term Strategy
Myers Moves to Horizon 2 of Long-Term Strategy Focus Revenue Target $1B $2B $3B+ Self Help: Integrated purchasing & supply chain, pricing, SG&A optimization, asset reliability Organic Growth: Sales & Commercial Excellence, Innovation, eComm Bolt-on M&A within existing plastics technologies Horizon 1
Slide 14: Summary and Next Steps
The leading North American composite ground protection solutions provider in a high growth infrastructure end market Well aligned with Myers strategy – market and brand leader, strong earnings profile, attractive end-market Financially attractive for Myers shareholders Advances Myers from Horizon 1
Slide 15: Appendix – Non-GAAP Reconciliations
Appendix – Non-GAAP Reconciliations 15
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations (1) Adjusting items remove transaction expenses, management fees, unrealized currency losses, losses on sales of discontinued products and other costs not representative of the core operations 16
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