Enersys · NYSE:ENS
Enersys — Merger or Acquisition (October 2018)
11 slides from Enersys's merger presentation, Oct 29, 2018
Slide 1: EnerSys to Acquire Alpha Group
we are proud to be EnerSys 29 October 2018 EnerSys to Acquire Alpha Group A Compelling Combination, Providing a Full Suite of Power Solutions
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation includes forward-looking statements and/or information, which are based on the Company’s current expectations and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to materially differ from those anticipa
Slide 3: A Uniquely Compelling Acquisition
A Uniquely Compelling Acquisition North American leader in commercial-grade energy solutions for the broadband, telecom, and industrial markets, with strongly recognized brands Provides immediate material market share to attractive secular megatrends AND establishes an additional long-term growth pl
Slide 4: Key Transaction Terms
Key Transaction Terms Structure & Consideration EnerSys to acquire Alpha Group (“Alpha”) from its founders in a cash and stock transaction $750mm1 total consideration, or 11x LTM EBITDA pre-synergies (8x including run-rate synergies2)$650mm in cash consideration, funded with existing cash and credit
Slide 5: Alpha at a Glance
Alpha at a Glance Provider of highly integrated power solutions and services to Broadband, Telecom, Renewable and Industrial customers Industry leading reputation and brand with end-to-end power solutionsU.S. market leader with global blue-chip customer base across diverse, global and growing end ma
Slide 6: Strong Position in Broadband and Telecom
Strong Position in Broadband and Telecom ¹ As of December 31, 2017, Includes Product and Service Revenue. Broadband(71% of Revenue)1 Telecom(15% of Revenue)1 Renewable(8% of Revenue)1 Industrial(6% of Revenue)1 Serving Broadband and Internet Providers GloballyProviding products and services to suppo
Slide 7: Alpha Benefits from Favorable End Markets
Alpha Benefits from Favorable End Markets Source: Cisco, Small Cell Forum, Future Market Insights, Morgan Stanley Research, Fiber Broadband Association Changes in Infrastructure Applications, Data & Speed Drive Headend and Outside Plant infrastructure upgrades to support DOCSIS3.1 expected to take 5
Slide 8: Two Highly Complementary Businesses
Two Highly Complementary Businesses Mission Powering the Future – Everywhere for EveryoneThe global leader in stored energy solutions for industry Keep the world working by delivering solutions that meet today’s and future power challenges LTM Net Revenues1 $2,630mm $591mm Adjusted LTM EBITDA / Marg
Slide 9: Attractive Synergy Opportunity
Attractive Synergy Opportunity Estimated Annual Run-rate Synergies of $25mm+ by 2021+ FYE-March Approximate Synergy Breakdown by Type Builds on EnerSys’ Existing $25mm Annual Savings Programs Alpha management fully-retainedEnerSys has significant expertise in successfully integrating acquisitionsMan
Slide 10: Pro Forma Financial Impact
Pro Forma Financial Impact FY 2016-18A Revenue CAGR LTM EBITDA Margin 2019E Earnings Per Share1 Net Debt / LTM EBITDA + + + + 1 Per IBES median estimates2 Includes full run-rate synergies3 Includes 50% run-rate synergies ~70 bps CAGR increase ~50 bps margin expansion 2
Slide 11: Summary of Transaction Benefits
Summary of Transaction Benefits North American leader in commercial-grade energy solutions for the broadband, telecom, and industrial markets, with strongly recognized brands A uniquely attractive platform for growth for ENS Provides immediate material market share to attractive secular megatrends A