Slide 1: Orora acquires IntegraColor
Orora acquires IntegraColor 1 March 2016
Slide 2: Transaction summary
Transaction summary • Orora acquired US-based IntegraColor • Consideration of US$77M (approximately A$107M) • EBITDA multiple of 6.9 times • RoAFE expected to be in excess of 15% by third full year and 20% by year five • Approximately US$100M sales revenue • Acquisition enhances Orora’s packaging so
Slide 3: IntegraColor overview
IntegraColor overview • IntegraColor is a well regarded US provider of point of purchase (POP) retail display solutions and other visual communications services • Serves blue-chip corporate customers across the consumer (including food and beverage), horticulture and healthcare/education sectors • E
Slide 4: IntegraColor overview
IntegraColor overview • Offers a broad set of value-added services and complete supply chain solutions including: • Design • Campaign development • Data management & proprietary analytics • Digital media • Logistics • Fulfilment • High class modern manufacturing operations • Eight different printing
Slide 5: Alignment with Orora’s growth strategy
Alignment with Orora’s growth strategy Orora North America Objective: Drive regional growth/expand capability Organic growth Continue to target large corporate accounts and Focused on large corporate customers increase share of wallet with current customers Adjacent M&A Investments in parallel packa
Slide 6: IntegraColor - Enhances Orora’s customer value proposition
IntegraColor - Enhances Orora’s customer value proposition • Landsberg Orora offers custom packaging solutions from concept to consumer • IntegraColor enhances Orora’s customer- value proposition, particularly in high value-added areas such as: • Design • Fulfilment • Logistics • POP - retail ready
Slide 7: Integration
Integration • Landsberg and IntegraColor will be managed as separate divisions within Orora • Landsberg will continue as a solutions provider for customised packaging requirements • IntegraColor’s primary focus will be on POP solutions to its existing customers and, in time, Landsberg customers • In
Slide 8: Key Financial Metrics
Key Financial Metrics • The purchase price has two components: 1. Up-front price of US$70M (approximately A$97.0M) paid on completion 2. A reps and warranties holdback of US$7M (approximately A$10.0M), to be paid in equal instalments after 12 months and 18 months from the date of acquisition • Orora
Slide 9: Orora has invested approx. $220M in growth since ASX Listing in December 2013
Orora has invested approx. $220M in growth since ASX Listing in December 2013 2H14 1H15 2H15 1H16 2H16 Total Investment New customer backed Established 2 new East Investing $42M to Coast US DCs (Charlotte increase glass bottle Dairy Sack Line Opened new & Orlando) – both Organic ($20M) manufacturing
Slide 10: Summary
Summary • Acquisition is in line with stated growth strategy • Provides a platform in POP - an adjacent customised value added proposition • Provides another platform, in addition to Landsberg, to support future bolt-on M&A growth for Orora • Enhances Orora’s North American geographic footprint thro
Slide 11: Orora acquires IntegraColor - Appendix
Orora acquires IntegraColor Appendix 1 March 2016
Slide 12: Appendix: Orora North America Geographic footprint
Appendix 1 : Orora North America Geographic footprint • Landsberg Orora has 11 manufacturing plants and 50 distribution sites across 5 countries – opportunity to leverage IntegraColor offering • IntegraColor is based in Dallas, Texas • Serves over 3,200 customer locations across North America • Cent
Slide 13: Orora acquires IntegraColor
Orora acquires IntegraColor 1 March 2016