Genuit Group Plc · LSE:GEN

Genuit — Polypipe Group — Merger or Acquisition (October 2018)

11 slides from Genuit's merger presentation, Oct 1, 2018

  1. Slide 1: Acquisition of Manthorpe Building Products

    Polypipe Group PLC Acquisition of Manthorpe Building Products

  2. Slide 2: Agenda

    Agenda  Introduction  Business overview  Strategic fit  Manthorpe financials  Deal structure  Financial effects  Q&A POLYPIPE © 2018 2 |

  3. Slide 3: Introduction

    Introduction  Polypipe is announcing the acquisition of Manthorpe Building Products Holdings Limited (“Manthorpe”) and associated freehold land and buildings for £52m on a cash and debt free, normalised working capital basis - Leading UK producer of a range of moulded and extruded plastic and metal

  4. Slide 4: Business overview (1)

    Business overview (1)  Leading designer and manufacturer of moulded and extruded plastic products, together with metal products for the UK and Irish residential construction markets  Started in 1986 by the Pochciol family, the business has over 30 years of experience in the sector  Based in Riple

  5. Slide 5: Business overview (2)

    Business overview (2) DRY FIX ROOFING LOFT DOOR ROOF VENTILATION  Serves a number of value-adding niches for the building industry CAVITY CLOSERS CONSERVATION  End users include UK and Irish house developers, roofing contractors, and RMI markets CAVITY TRAYS AIR LEAKAGE  Route to market through m

  6. Slide 6: Strategic fit (1)

    Strategic fit (1) Target Product 1 Sustainable Water Management Solutions P Sector 2 Sustainable Climate Management Solutions P 3 Legacy Material Substitution P 4 Legislative Tailwinds P Strategic Growth 5 Geographic Reach Drivers 6 Customer “One Stop Shop” P 7 Continuous Process and Efficiency Impr

  7. Slide 7: Strategic fit (2)

    Strategic fit (2)  Complements current Polypipe Residential Segment product offering  Synergy from combined entities: - Common customers and end users - Common manufacturing methods - plastic extrusion and injection moulding, metal forming (Nuaire) - Material costs  Good cultural fit POLYPIPE © 2

  8. Slide 8: Manthorpe financials

    Manthorpe financials  Manthorpe has delivered robust growth over the Revenue last two years, with a 6.0% CAGR from 2016- 2018, and is well positioned to continue on the £m 15.7 16.4 14.6 same trajectory 2016 2017 2018  Highly profitable business with EBITDA margin Adjusted EBITDA above 38%, enable

  9. Slide 9: Deal structure

    Deal structure  Two separate but interlinked transactions 1. Acquisition of Manthorpe for a cash consideration of £44m on a debt and cash free, normalised working capital basis from the Pochciol family - Cash paid on completion, no earn out mechanism 2. Purchase of freehold land and buildings used

  10. Slide 10: Financial effects

    Financial effects  Combination of Polypipe and Manthorpe Building Products is Pro Forma 2017 Revenue expected to provide a solid support for continued profitable growth £m 411.7 16.2 427.9  2017 proforma revenue and EBITDA for the combined entity of £428m and £94m - Acquisition expected to be marg

  11. Slide 11: © Polypipe

    © Polypipe

Polypipe Group — Merger or Acquisition (October 2018) on 6ix