Ats Corporation · TSX:ATS
Ats — Merger or Acquisition (November 2021)
13 slides from Ats's merger presentation, Nov 7, 2021
Slide 1: SP Industries Inc. Acquisition
SP Industries Inc. ACQUISITION TSX: ATA Nov 7th, 2021
Slide 2: Forward Looking Statements & Non-IFRS Measures
Forward Looking Statements & Non-IFRS Measures This presentation and the oral statements made during this meeting contain certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements in
Slide 3: ATS to Acquire SP Industries
ATS to Acquire SP Industries ▪ Global player in sterile and non-sterile lyophilization equipment, aseptic fill-finish solutions, life sciences benchtop equipment, and consumable labware and glassware products used in pharmaceutical drug development and production ▪ Natural expansion of ATS‘ life sci
Slide 4: Acquisition Highlights
Acquisition Highlights 1 Expands and complements existing ATS capabilities in biopharma and life sciences 2 Strengthens our ability to serve customers from drug discovery to commercial production 3 Differentiates through combining leading lyophilization, fill-finish and automation capabilities 4 Pro
Slide 5: Transaction Summary
Transaction Summary ▪ Purchase Price: US$445mm (~C$550mm) ─ 15.3x TTM(1) Adjusted EBITDA of US$29mm (11.9x including Year 3 synergies) Transaction ▪ Funding: Debt (revolving credit facility) Details ▪ Pro-forma Leverage: 3.0x Net Debt / LTM EBITDA ▪ Estimated Close: Calendar Q4, 2021(2) ▪ Meaningful
Slide 6: SP Overview
SP Overview ▪ Founded in 1982 and based in Warminster, Attractive Financial Profile Pennsylvania SP Sales ▪ Designer and manufacturer of high-grade biopharma $179 US$29mm ~16% Adj. processing equipment, life sciences benchtop $133 Adj. EBITDA EBITDA Margin (TTM Sep. 30, 2021) (TTM Sep. 30, 2021) equ
Slide 7: SP Market Opportunity
SP Market Opportunity 2021-26 ~US$2.3bn ~US$100mm ~US$5.7bn TAM (1) 2021-26 CAGR (1) Low-double Digit Mid to High-single digit Low-single digit SP’s Offering • Aseptic and non-aseptic • Centrifugal evaporators • Single and multiple use glass lyophilizers (CEVAP) and labware products • Aseptic fill-f
Slide 8: Lyophilization & Fill-Finish Present An Attractive Space
Lyophilization & Fill-Finish Present An Attractive Space ▪ High growth, regulated market with attractive dynamics ▪ Growth driven by robust phase 1 drug pipeline, rising usage of biologics and increasing lyophilization of pharma products ▪ Lyophilization results in improved stability, longevity and
Slide 9: Strategic Rationale
Strategic Rationale ▪ Trusted, long-term partner, with a strong track Selected Synergy Opportunities record of supporting successful validation of drug discovery and production processes • Combine product Commercial portfolios to provide end- ▪ Proven, patented technology across portfolio to-end cus
Slide 10: Application of the ATS M&A Playbook
Application of the ATS M&A Playbook What We Look For ▪ Global biopharma processing equipment market is ▪ Growth oriented ~US$2.3bn; expected to grow at low-double digit Attractive Markets ▪ ▪ Low cyclicality Regulated spaces ✔ ▪ CAGR(1) Strong market demand driven by pharma drug pipeline creating a
Slide 11: On the Move to Higher Value and Higher Growth
On the Move to Higher Value and Higher Growth 2013 Revenue Profile (1) 2016 Revenue Profile (1) ATS Pro-Forma Today (1) Figures in C$ mm Figures in C$ mm Figures in C$ mm Energy Energy Food & Beverage $47 $174 $420 Consumer $92 Life Sciences Life Sciences $415 Energy $289 Consumer $114 Life Sciences
Slide 12: Key Takeaways
Key Takeaways Attractive industry fundamentals with SP holding strong positions in its key ✔ end markets Strengthens ATS’ presence in Pharma with leading and differentiated end-to- ✔ end solutions Attractive financial profile with recurring revenue streams and opportunity for ✔ margin expansion ✔ Ac
Slide 13: ATS Automation TSX:ATA
ATS AUTOMATION | TSX:ATA