Leggett & Platt, Incorporated · NYSE:LEG
Leggett & Platt — Merger or Acquisition (November 2018)
12 slides from Leggett & Platt's merger presentation, Nov 7, 2018
Slide 1: Leggett & Platt to Acquire Elite Comfort Solutions
Leggett & Platt to Acquire Elite Comfort Solutions Creating a Leading Provider of Differentiated Products for the Bedding Industry November 7, 2018 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements,” including the timing and financing of the transaction, the financial results of ECS and the combined pro forma results of the company and ECS. These statements are identified either by their context or by use of word
Slide 3: Transaction Overview
Transaction Overview FINANCING Planned expansion of commercial paper program and related revolving credit agreement; issuance of $500 million 5-year term loan Commitment to rapidly deleveraging and maintaining a strong, investment grade credit rating Post closing, LEG may refinance a portion of outs
Slide 4: ECS: Leading Provider of Proprietary Foam Technology for Bedding and Furniture Markets
ECS: Leading Provider of Proprietary Foam Technology for Bedding and Furniture Markets ECS Sales by End Market All Bedding 65% Headquarters: Newnan, GA Markets Served: Primarily Bedding and Furniture Customers: Serves leading traditional bedding and boxed bed brands Key Raw Materials: Polyol, TDI, M
Slide 5: Market Trends Favorable for ECS
Market Trends Favorable for ECS Online mattress sales expected to more than double over next 4-5 years Boxed bed market segment represents a growing percentage of online sales Box bed brands are growing, are primarily foam, and are increasingly seeking to differentiate through specialty foams and hy
Slide 6: Acquisition Creates the Leading Provider of Differentiated Products for the Bedding Industry
Acquisition Creates the Leading Provider of Differentiated Products for the Bedding Industry Augments Growth Opportunities Establishes a Global Leader in Bedding Technology and Manufacturing Adds Critical Capabilities in Proprietary Foam Technologies and Scale in Production of Private-Label Finished
Slide 7: Establishes Global Leader in Bedding Technology and Manufacturing
Establishes Global Leader in Bedding Technology and Manufacturing ECS is a leading provider of proprietary foam technology for the bedding and furniture industries; recognized leader in innovative, high-quality specialty foam ECS has a diversified customer mix and strong position in the high-growth
Slide 8: Adds R&D Capabilities and Proprietary Foam Technologies
Adds R&D Capabilities and Proprietary Foam Technologies ECS’s substantial proprietary and patented technology allows the company to develop unique specialty foam products for individual customers ECS’s numerous branded, specialty additives enhance foam performance by reducing heat retention and impr
Slide 9: Positions the Company to Grow
Positions the Company to Grow Opportunity to leverage ECS’s core competency in boxed bed innovation and capitalize on this new and growing sales channel Opportunity to create new hybrid products utilizing the capabilities of LEG in Comfort Core® innersprings and ECS in premium specialty foam represe
Slide 10: Commitment to Deleveraging
Commitment to Deleveraging 10 Operating Cash Flow Expect 2019 pro-forma operating cash flow of ~$550 million Intend to quickly delever through cash flow to ~2.5x EBITDA in 2020 Maintain Investment Grade Rating Committed to maintaining strong, investment grade ratings LEG to retain a robust liquidity
Slide 11: Key Take-Aways
Key Take-Aways Adds R&D Capabilities and Proprietary Foam Technologies Well-Positioned to Capitalize on Current and Future Trends Supports Revenue Growth Domestically and Internationally Creates a Leading Provider of Differentiated Products for the Bedding Industry ü ü ü ü Strong Cash Flow to Suppor
Slide 12: Q&A
Q&A
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