Nwpx Infrastructure, Inc. · NASDAQ:NWPX
Nwpx Infrastructure — Northwest Pipe — Merger or Acquisition (October 2021)
13 slides from Nwpx Infrastructure's merger presentation, Oct 6, 2021
Slide 1: Northwest Pipe Company Acquisition of ParkUSA
(9) Northwest Pipe Company ACQUISITIO OF ParkUS/ October 5, 2024 WWW.NWPIPE.COM
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Statements In this presentation are “Torward-ooking statements” within the meaning ofthe Pivate Securities Litigation Reform Aet of 1995 an Section 216 ‘ofthe Securities Exchange Act of 1934, 2s amended, that are based on current expectations estimates, and projections abo
Slide 3: Strategic Rationale
STRATEGIC RATIONALE 2 3 4 5 Attractively Scalable Strong Roll-out product historical strategy with a mixserves _ financial Introduces 7 foothold in a diverse performance ParkUSA the Texas rangeofend with products water markets attractive _to existing a market growth Northwest prospects Pipe location
Slide 4: Transaction Summary
TRANSACTION SUMMARY TARGET Park Environmental Equipment, LLC (“ParkUSA”) TIMING Tansaction closed October 5, 2021. $87.4 million in cash consideration (net of acquired cash) Ue Equates to ~6.2x 2020 Adjusted EBITDA CONSIDERATION FINANCIALS 2020 Revenue: $66.5 million; Adjusted EBITDA : ~$14 million
Slide 5: ParkUSA Overview
ParkUSA OVERVIEW Technology leader in water infrastructure focused on precast concrete and steel fabrication based water products Founded in Houston, Texas in 1984 by the Eberly family + Key executives will remain in place Three Texas manufacturing facilities: Houston, Ferris, and San Antonio Stable
Slide 6: ParkUSA Footprint
ParkUSA FOOTPRINT —a ° e CORPORATE HEADQUARTERS LEGACY PLANTS e ° GENEVA PLANTS v ° PERMALOK PLANT e ParkUSA PLANTS Houston Dallas (Ferris) San Antonio
Slide 7: Unique Product Mix
UNIQUE PRODUCT MIX Highly complementary mix to our existing precast business that expands into adjacent markets. WATER PUMP DISTRIBUTION WASTEWATER STORMWATER SYSTEMS Water ‘Treatment solutions = Water mamta eater: management for grease, solids, management, that cannet equipment and oll, acidic and
Slide 8: Further Expansion into Precast & Adjacent Water Segments
FURTHER EXPANSION INTO PRECAST ” & ADJACENT WATER SEGMENTS STRATEGIC FOCUS - PRECAST RELATED Diversification from steel pressure pipe business Breadth of potential acquisition targets Highly focused on growth in the precast market since acquisition of Geneva in January 2020 ‘Success of Geneva transa
Slide 9: Complements & Further Diversifies Product Mix
COMPLEMENTS & FURTHER DIVERSIFIES PRODUCT MIX PRO FORMA PRODUCT MIX 2020 Sales: $289.5) M 2020 Sales: $66.5 M Pro Forma: $356.0 M @\Northwest Pipe Company 41. Note: Assumes full year of revenue in 2020 for Geneva Pipe and Precost. 2. AUIPonUSA product revenue considered precest-foted t proforma lve.
Slide 10: Diverse End Markets
DIVERSE END MARKETS OVERVIEW OF ParkUSA’S KEY MARKETS REVENUE BY END MARKET + Primarily serves the commercial construction market (and some residential projects) + US. commercial construction market: ~$194 billion of spend in 2020 + Texas commercial construction market: ~$21 billion of spend in 2020
Slide 11: Financing
FINANCING Credit facility with Wells Fargo fully utilized at $125 million, including fully committed accordion. * Cash flow structure superior to ABL for Company's growth strategy + Loan provides flexibility to migrate to syndication with future growth + Provides the Company ample liquidity for near
Slide 12: Product Spread Strategy
PRODUCT SPREAD STRATEGY Begin where we already have production facilities; control production, low cost of entry Initial focus on wastewater products, stormwater, and water distribution Plans to emphasize cross-training across facilities Expansion would require retrofit of existing facilities from 2
Slide 13: ParkUSA: A Northwest Pipe Company
PARK: A Northwest Pipe Company
Northwest Pipe — Merger or Acquisition (October 2021) on 6ix