Scales Corp. Ltd. · NZX:SCL
Scales — Merger or Acquisition (December 2018)
8 slides from Scales's merger presentation, Dec 14, 2018
Slide 1: Acquisition of 60% stake in Shelby JV LLC
SCALES CORPORATION LIMITED GROWING YOUR DIVERSIFIED AGRIBUSINESS Acquisition of 60% stake in Shelby JV LLC 14 December 2018
Slide 2: Transaction Overview
TRANSACTION OVERVIEW • Scales has today announced the acquisition of a 60% interest in Shelby JV LLC (Shelby), one of the largest independent buyer and processor of ingredients for the petfood industry in the United States. • Shelby is an attractive investment when viewed against our investment crit
Slide 3: Shelby – Overview
SHELBY – OVERVIEW Shelby’s operations are similar to Meateor’s operations within New Zealand Procurement Processing Sales In 2018, Shelby purchased animal Byproducts are processed at one of 7 Sales are made to large petfood byproducts (mostly offals) from some 20 locations. Shelby owns and manages i
Slide 4: Shelby – Overview (Continued): Leadership and Governance
SHELBY – OVERVIEW (CONTINUED) Leadership and Governance • Shelby is capably led by a high quality management team: ➢ Brett Frankel (President and Founder): — With over 20 years of experience in the petfood industry, Brett has strong networks amongst suppliers and customers. Brett is well- regarded a
Slide 5: Strategy Refresh
STRATEGY REFRESH • Scales has focused investment initially on its Food Ingredients division, as it offers both attractive market opportunities and strong financial returns. • This division has consistently delivered positive results since our IPO: ➢ EBITDA has increased by 71% between 2013 and 2017.
Slide 6: Strategy Refresh (Continued)
STRATEGY REFRESH (CONTINUED) • Petfood ingredients is the key component of Scales’ Food Ingredients division. We believe this continues to be an attractive industry for investment: ➢ Spending on pets is demonstrating strong year-on-year growth. This growth is being driven by lifestyle changes such a
Slide 7: Game Plan
GAME PLAN The purchase of Shelby accelerates the development of our petfood ingredients business and its growth strategy. • Scales intends to implement the following game plan for Meateor: ➢ To create a business dedicated to providing key protein ingredients to petfood brand owners operating interna
Slide 8: Disclaimer
DISCLAIMER Receipt of this presentation constitutes acceptance of the terms set out above in this disclaimer. This presentation has been prepared as at 13 December 2018 to provide a general overview of the proposed acquisition of Shelby JV LLC (Shelby) by Scales Corporation Limited (Scales). It has