The Andersons, Inc. · NASDAQ:ANDE
The Andersons — Andersons — Merger or Acquisition (October 2018)
12 slides from The Andersons's merger presentation, Oct 16, 2018
Slide 1: Acquisition of Lansing Trade Group, LLC
Acquisition of Lansing Trade Group, LLC To strengthen our grain business, extend our specialty products offerings and further diversify our portfolio October 16, 2018
Slide 2: Safe Harbor and Non-GAAP Financial Measures
Safe Harbor and Non-GAAP Financial Measures Certain information discussed today constitutes forward-looking statements. Actual results could differ materially from those presented in the forward-looking statements as a result of many factors including general economic conditions, weather, competitiv
Slide 3: Transaction Highlights
Transaction Highlights Transaction Details Expected Results Financial Details • Acquiring remaining 67.5% of • EPS-accretive within a year • $130M of newly issued shares Lansing equity not currently after close priced at closing based on owned for approximately 90% of the volume-weighted $305M, subj
Slide 4: Lansing Trade Group at a Glance
Lansing Trade Group at a Glance ► Focused on the trading and movement of physical commodities including grains, feed ingredients, energy products, and freight within North America and internationally Key Highlights Gross Profit Mix(1) Commodities Traded Gross Profit(1),(2) $162M • Grain & Oilseeds:
Slide 5: Combined Company Creates More Formidable Business
Combined Company Creates More Formidable Business Key Highlights Benefits • Increases combined gross $9B $510M $239M ~2,650 profit and EBITDA(2) (1) (2) (2) (3) Revenues Gross Profit Adjusted EBITDA Employees • Diversifies income streams and adds income from new markets Combined Statistics • Potenti
Slide 6: Complementary Geographic Assets and Footprints
Complementary Geographic Assets and Footprints Expands Geographic Footprint • Geographic expansion into Western Corn Belt/Great Plains, and Eastern Canada • Further diversification of activities outside of traditional product and geographic regions • Greater scale in the agricultural marketplace And
Slide 7: Transaction Aligned with Acquisition Strategy
Transaction Aligned with Acquisition Strategy STRATEGIC FILTERS Fits Strategically; Core or Adjacent FINANCIAL CRITERIA • Supports growth in originations, trading and food and feed ingredients Accretive to EPS within Addresses Validated Customer Needs One Year • Expands product and services portfoli
Slide 8: Next Steps and Timeline
Next Steps and Timeline Pre-acquisition While we We expect to integration work maintain focus realize run-rate is well underway; on existing cost synergies we expect to business, we of $10M by close before expect to year-end 2020, January 31, integrate accelerating 2019 commercial EPS accretion func
Slide 9: Summary of Transaction Benefits
Summary of Transaction Benefits Aligned with M&A strategy and financial criteria Complementary geographic footprint and assets and greater scale Further diversifies and strengthens existing income streams and adds income from new markets Cost synergies and accretive revenue potential provide attract
Slide 10: Appendix
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Slide 11: Reconciliation to EBITDA and Adjusted EBITDA – Combined ($M)
Reconciliation to EBITDA and Adjusted EBITDA – Combined ($M) The Andersons, Inc. (1) Lansing Trade Group (2) Thompsons (2), (3) Combined (4) Gross profit $ 308.7 $ 161.8 $ 39.4 $ 509.9 Net Income attributable to the Company $ 92.0 $ 34.7 $ 1.5 $ 128.2 Provision (benefit) for income taxes (60.8) 4.3
Slide 12: Reconciliation to EBITDA and Adjusted EBITDA – The Andersons, Inc.
Reconciliation to EBITDA and Adjusted EBITDA – The Andersons, Inc. Twelve months Trailing twelve Six months ended Six months ended ($M) ended months ended June 30, 2017 June 30, 2018 December 31, 2017 June 30, 2018 (1) Trailing twelve months June 30, 2018 Gross profit $ 318.8 $ 164.3 $ 154.2 $ 308.7