Zurn Elkay Water Solutions Corporation · NYSE:ZWS
Zurn Elkay Water Solutions — Zurn Water Solutions — Merger or Acquisition (February 2022)
12 slides from Zurn Elkay Water Solutions's merger presentation, Feb 14, 2022
Slide 1: Zurn Water Solutions: Transformational Combination with Elkay
WATER SOLUTIONS Zurn Water Solutions Transformational Combination with Elkay Creating a Leader in Sustainable Water Solutions February 14, 2022
Slide 2: Cautionary Statements
Cautionary Statements This presentation is for informational purposes only to assist interested parties in making their own evaluation of the proposed combination (the “Transaction”) of Zurn Water Solutions Corp (“Zurn”) and Elkay Manufacturing Company (“Elkay”). Forward-Looking Statements This comm
Slide 3: A Powerful, Highly Complementary Combination
A Powerful, Highly Complementary Combination Market leader in Market leader in highly attractive commercial sustainable water solutions and products drinking water category Creates a North American Leader Adds Drinking Water to Zurn’s Offers Substantial Synergy in Commercial Water Solutions Portfoli
Slide 4: Transaction Overview
Transaction Overview Zurn Elkay Water Solutions to be Owned 71% by existing ZWS Shareholders, 29% by Elkay Shareholders • Elkay shareholders to receive up to 52.5M ZWS shares • Representing ~29% ownership in the combined company • Implies Transaction value of $1.56B, based on ZWS closing share price
Slide 5: ~75% of Combined Revenues Will Come From #1 Market Positions
~75% of Combined Revenues Will Come From #1 Market Positions • Highly innovative with a history of best in category product development capabilities Key Elkay Products Drinking Water Sinks & Faucets • #1 >50% of Revenue <50% of Revenue manufacturer of water fountains and bottle filling stations •
Slide 6: Scale in Specified Commercial Water Solutions Will be Unparalleled
Scale in Specified Commercial Water Solutions Will be Unparalleled 70%+ Increase in Net Sales ~$1B ~$1.7B+ 50%+ Increase in Addressable Market ~$6B ~$9B New New Retrofit, Increase in Construction, Construction, ~35% ~55% Retrofit, Retrofit Application ~65% ~45% Residential, 21% Residential, 22% Larg
Slide 7: Compounds Leadership Across Water Safety, Quality & Conservation Categories
Compounds Leadership Across Water Safety, Quality & Conservation Categories Premier Drinking Water Platform Balanced Pro Forma Portfolio of Specified Water Solutions • Category leader in drinking water with attractive retrofit opportunity Drinking Water 21% • 100-year customers iconic brand that r
Slide 8: Incredible Runway for Growth in Drinking Water
Incredible Runway for Growth in Drinking Water Elkay’s Leadership Positioning Zurn Elkay’s Retrofit Opportunity • Leader in fast growing drinking water business • Total installed base of 8 million units • Conversion opportunity from water fountains / coolers • Leading market share of bottle filling
Slide 9: Highly Achievable Synergy Targets Coupled With Strong Outlook
Highly Achievable Synergy Targets Coupled With Strong Outlook • Highly complementary businesses • Synergy Categories • Supply chain • Business / functional efficiencies • Cross marketing • Best-in-class combined rep network • Leverage proven Zurn Business System in the integration • Track record of
Slide 10: Elite Financial Profile Focused on North American Water
Elite Financial Profile Focused on North American Water Sales Adj. EBITDA (2) ~$1.9B $425M - $450M 25% - 30% Double Digit incremental margins Organic Growth ~$25M of synergies $911M $215M (1) 2021 2023 2021 2023 (1) Pro forma for $20M of annual Corporate Expense 8 (2) See “Non-GAAP Financial Measure
Slide 11: Transformative Combination Adds ZBS
+ Transformative & focused expansion of size, breadth, scale and addressable market Adds leading drinking water business with significant growth and margin potential Bright Advances both our customers’ and our own ESG and sustainability missions Shield IoT- Omni Enabled Channel Solutions ZBS
Slide 12: All aal
All aal WATER SOLUTIONS
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