Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — Merger or Acquisition (March 2021)
16 slides from Columbus Mckinnon's merger presentation, Mar 1, 2021
Slide 1: Columbus McKinnon to Acquire Dorner Manufacturing
Columbus McKinnon to Acquire Dorner Manufacturing Adds New Platform for Intelligent Motion Solutions March 1, 2021 David J. Wilson President and Chief Executive Officer Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement These slides, and the accompanying oral discussion (together, this “presentation”), contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements concerning future sal
Slide 3: Additional Information
Additional Information The Company intends to refinance a portion of the debt to be incurred to finance the Dorner acquisition through an underwritten public offering of shares of its common stock. Any such offering will be subject to market and other conditions, and there can be no assurance as to
Slide 4: Blueprint for Growth 2.0
Blueprint for Growth 2.0 Business System and Core Growth Framework Evolves Columbus McKinnon Strategy to Deliver Growth, Financial Performance and Shareholder Value 4
Slide 5: Investment Highlights and Strategic Rationale
Investment Highlights and Strategic Rationale Dorner Acquisition Advances Blueprint for Growth 2.0 Strategy 1 Growth Catalyst in Attractive, High Growth Vertical Markets 2 Reimagines Columbus McKinnon’s Core and Adds Platform for Expansion 3 Attractive Financial Profile, Accretive to CMCO’s Growth,
Slide 6: Dorner Manufacturing Corporation
Dorner Manufacturing Corporation High-Precision Conveying Systems • Headquartered in Hartland, WI with approximately 400 global employees and 85% of Product & Customer Examples revenue generated in North America Flexible Chain Low Profile • Differentiated solutions enhance productivity, quality, rel
Slide 7: Advances CMCO's Intelligent Motion Strategy
Advances CMCO’s Intelligent Motion Strategy Innovation and Differentiated Technology Provides Competitive Advantages Provides a platform to accelerate profitable growth… Proven track record of double-digit organic growth and an attractive pipeline of initiatives High profitability driven by prod
Slide 8: Expands Reach in Industrial Automation
Expands Reach in Industrial Automation Creates Multiple Pathways for Future Growth Overhead Lifting Servo Drive / Motor Vision Systems RFID/ Scanners Controls Robotics Auto. Storage & Retrieval Actuators Sensors Precision Conveying Systems Interface with Nearly Every Facet of Industrial Automation 8
Slide 9: Leading Participation in Secular Growth Markets
Leading Participation in Secular Growth Markets Attractive Vertical Markets with Enduring Tailwinds Leading positions in Food Processing and Life Sciences; growing strength in E-Commerce Food Processing 20% of sales Life Sciences 17% of sales E-Commerce 11% of sales Custom designed sanitary and easy
Slide 10: Strong Financial Profile
Strong Financial Profile High Margin Business with Significant Growth Potential Product & Revenue Breakdown LTM 12/31 Revenue and EBITDA Aftermarket 18% Low Profile Sanitary Revenue by 40% 11% Product CMCO 64% Flexible Chain 14% Large Scale Adjusted EBITDA 17% E-Commerce and EBITDA Margin 11% CPG 12
Slide 11: Transaction Overview
Transaction Overview Purchase Price $485 million plus cash minus capital lease obligation with working capital adjustment Transaction Costs Approximately $11 million excluding financing fees (majority at close) Cost Synergies Approximately $5 million in annual cost synergies by end of FY 2023 One-ti
Slide 12: Financing Plan Summary
Financing Plan Summary CMCO has a proven history of FCF generation and ability to quickly de-lever Initial capital structure debt financed • Applying ~$120 million of existing cash • Underwritten term loan with first lien commitment • Refinancing existing term loan B Expected equity offering to de-l
Slide 13: Reimagining Our Core with a New Platform
Reimagining Our Core with a New Platform High-Precision Conveying Systems for Attractive Growth Markets Specialty conveying is an attractive microsegment… $5B TAM growing at 6% to 8% CAGR Strong secular growth drivers • Supply chain automation • Acceleration of e-commerce adoption Fragmented m
Slide 14: Investment Highlights and Strategic Rationale
Investment Highlights and Strategic Rationale Dorner Acquisition Advances Blueprint for Growth 2.0 Strategy 1 Growth Catalyst in Attractive, High Growth Vertical Markets 2 Reimagines Columbus McKinnon’s Core and Adds Platform for Expansion 3 Attractive Financial Profile, Accretive to CMCO’s Growth,
Slide 15: Blueprint for Growth 2.0
Blueprint for Growth 2.0 Business System and Core Growth Framework Evolves Columbus McKinnon Strategy to Deliver Growth, Financial Performance and Shareholder Value 15
Slide 16: Columbus McKinnon to Acquire Dorner Manufacturing
Columbus McKinnon to Acquire Dorner Manufacturing Adds New Platform for Intelligent Motion Solutions March 1, 2021 16
Columbus McKinnon — Merger or Acquisition (March 2021) on 6ix