Simpson Manufacturing Company, Inc. · NYSE:SSD
Simpson Manufacturing — Merger or Acquisition (December 2021)
15 slides from Simpson Manufacturing's merger presentation, Dec 29, 2021
Slide 1: Binding Offer to Acquire Etanco Group
STRONG FOUNDATION. STRONGER FUTURE. Simpson Manufacturing Co., Inc. Binding Offer to Acquire Etanco Group December 29, 2021
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements generally can be identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "target," "continue,
Slide 3: Transaction Summary
Transaction Summary ▪ Acquisition of Etanco Group Acquisition Target ▪ Net Sales(1): €258M (~$291M) ▪ Operating Income Margin(1): 19.7% ▪ €725M (~$818M(2)) purchase price Financial Terms & ▪ Purchase price reflects ~11.9x of trailing twelve months unaudited EBITDA Valuation ▪ Target ~$30M annual ope
Slide 4: Strategic Rationale
Strategic Rationale ✓ Etanco’s leading position in building solutions expands Simpson’s market position and geographical reach in Europe ✓ Broadens and balances portfolio of solutions, including entry into new commercial building markets ✓ Expands direct sales business ✓ Significant synergies drivin
Slide 5: Simpson's 5-Year Company Ambitions
Simpson’s 5-Year Company Ambitions(1) 1 Strengthen our values-based culture 2 Be the partner of choice 3 Be an innovation leader in the markets we operate 4 Continue above market growth rate relative to U.S. housing starts 5 Continue expanding our operating income margin to remain within the top qua
Slide 6: Simpson's Commitment to Growth
Simpson’s Commitment to Growth KEY GROWTH INITIATIVES(1) FOCUSED ON: STRUCTURAL OEM R&R / DIY MASS TIMBER CONCRETE STEEL LEADER IN ENGINEERED LOAD-RATED CONSTRUCTION FASTENING SOLUTIONS LEADER IN CUSTOMER-FACING TECHNOLOGY - Denotes Etanco Group market presence. 6 (1) Announced during the Company’s
Slide 7: Etanco Group Overview
Etanco Group Overview ▪ Etanco is a leading designer, manufacturer and distributor of fixing and fastening solutions for the building construction market in Europe ▪ Established in 1952 and headquartered in Le Pecq, France ▪ ~900 employees ▪ 8 manufacturing and distribution sites across Europe ▪ Est
Slide 8: Etanco Group's Key Products and Applications
Etanco Group’s Key Products and Applications Highly complementary product mix that expands into adjacent markets 1 2 3 4 Primary Waterproofing Roofing Facade Cladding Product Fixing membrane to avoid Fixing metal roof to a Fixing of protection panels Fixing metal, concrete or stone frameworks for wa
Slide 9: Expands Share of Addressable Market
Expands Share of Addressable Market(1) Etanco’s leading position in European building solutions increases Simpson’s market share… Wood Connectors Fasteners Concrete & Truss Simpson Market Size $2.5 B $5.8 B $15.0 B Manufacturing Co. Addressable Market (%) $2.5 B (100%) $1.0 B (17%) $1.3 B (9%) Share
Slide 10: Complements & Expands Geographical Reach
Complements & Expands Geographical Reach …and further diversifies Simpson’s geographic footprint, enabling above market growth relative to U.S. housing starts. Simpson Manufacturing Co. Europe(1) Etanco Group(1) % of Sales by Region: % of Sales by Region: (2) Other 11% (3) Other 14% Poland 4% France
Slide 11: Balances Portfolio and Grows Go-To-Market Channels
Balances Portfolio and Grows Go-To-Market Channels Etanco Group Sales by Product(1): (2) ▪ Broadens and balances Simpson’s portfolio of solutions Other, 21% Roofing, 34% ▪ Provides entry into new commercial building markets in the Anchors, 9% building envelope (facades, waterproofing, roofing, safet
Slide 12: Synergies Promote Growth, Profitability & Expense Savings
Synergies Promote Growth, Profitability & Expense Savings Offensive Synergies Defensive Synergies ▪ Expands Simpson’s market share ▪ Procurement optimization ▪ Enhances Simpson’s portfolio of solutions ▪ Significant cross-selling opportunities + ▪ Manufacturing efficiencies ▪ Entrance into new comme
Slide 13: Financing Overview
Financing Overview Simpson’s strong cash flow generation and access to capital provides flexibility to support the Company’s growth initiatives and stockholder returns ▪ Transaction to be funded with $100M of existing cash and new borrowings ▪ Commitment to increase existing Revolving Credit Facilit
Slide 14: Summary
Summary The acquisition of Etanco Group: ▪ Aligns with Simpson’s business model and values ✓ Established brand reputation ✓ Dedication to customer service ✓ Broad portfolio of high-quality, innovative solutions ▪ Supports 5-Year Company Ambitions ✓ Promotes continued above-market growth relative to
Slide 15: STRONG FOUNDATION. STRONGER FUTURE.
STRONG FOUNDATION. STRONGER FUTURE.
Simpson Manufacturing — Merger or Acquisition (December 2021) on 6ix