Lincoln Electric Holdings, Inc. · NASDAQ:LECO
Lincoln Electric — Merger or Acquisition (April 2017)
13 slides from Lincoln Electric's merger presentation, Apr 27, 2017
Slide 1: Proposed Acquisition of Air Liquide Welding
Exhibit 99.1 The Welding Experts® Proposed Acquisition of Air Liquide Welding April 28, 2017 Christopher L. Mapes Chairman, President & CEO Vincent K. Petrella Executive Vice President & CFO
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements: Statements made during this presentation which are not historical facts may be considered forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from those expressed
Slide 3: Snapshot of Air Liquide Welding
Snapshot of Air Liquide Welding Air Liquide Welding (ALW), an Air Liquide subsidiary, is an established leader in welding and cutting solutions in Europe with premier global brands and strong customer relationships Business Mix1 Europe Exports & North America • Acquisition includes the Air Liquide W
Slide 4: Overview of the Definitive Agreement for ALW
Overview of the Definitive Agreement for ALW Represents a strong strategic fit to expand and strengthen European operations and Harris Products Group • Benefit from expanded product portfolios and application expertise • Improves channel and market access in both Europe and globally • Includes exclu
Slide 5: Overview of the Definitive Agreement for ALW
Overview of the Definitive Agreement for ALW Disciplined M&A approach with opportunity to generate incremental value • €115 million purchase price • Approximate 7x EBITDA 1 multiple • Accretive to adjusted earnings per share (EPS) – Approximately $0.03 per quarter or $0.12 annually in the first year
Slide 6: Unparalleled New Welding and Cutting Organization
Unparalleled New Welding and Cutting Organization Combination creates an extraordinary team of talented industry experts • Only dedicated welding and cutting organization among the top-3 competitors • Establishes an unrivaled breadth and depth of commercial and technical application expertise in our
Slide 7: Combines Premier Product Portfolios
Combines Premier Product Portfolios Leverages two premier and complementary product portfolios to offer best-in-class solutions • Represents growth opportunity in high-margin products with strategic emphasis – ALW increases Lincoln Electric’s (LECO’s) portfolio in specialty alloy consumables with AL
Slide 8: Expands and Strengthens Geographic Footprint
Expands and Strengthens Geographic Footprint Combination of complementary geographic footprints strengthens Lincoln Electric’s position in Europe and its go-to-market effectiveness Air Liquide Welding’s stronger presence Lincoln Electric’s stronger presence Both ALW and LECO are participants 8
Slide 9: Augments Customer Base and Expands Industry Exposure
Augments Customer Base and Expands Industry Exposure Combination leverages the strengths of each business to better serve a larger customer base with higher-value solutions in more diverse industries Lincoln Electric End-Market Breakdown 1 • Enables LECO to better penetrate attractive end markets: C
Slide 10: Complements 2020 Strategic Priorities
Complements 2020 Strategic Priorities Proposed acquisition augments the 2020 strategy in four targeted areas by leveraging the complementary strengths of each business Leverage Diverse Core Sectors + Adjacencies Reach Alloys and Aluminum Chemical Processing Operational Excellence Arc Welding Power G
Slide 11: Attractive Acquisition with Near-Term Opportunities
Attractive Acquisition with Near-Term Opportunities Proposed acquisition would be immediately accretive to adjusted earnings and cash flow with additional benefits over time as the businesses are integrated • Immediately accretive: – Approximately $0.03 Adjusted EPS contribution per quarter ($0.12 A
Slide 12: Expected Next Steps
Expected Next Steps WORKS DEFINITIVE MOU COUNCIL AGREEMENT CLOSING SIGNED WORKS COUNCIL OPINIONS SIGNED INFORMATION & REGULATORY ISSUED CONSULTATION REVIEW PHASE March 2, 2017 April 27, 2017 Estimated H2-2017 • Closing subject to customary conditions including: • Absence of any law or order in effec
Slide 13: Summary Slide
Summary Slide • Brings two leading welding and cutting businesses together in Europe • A strategic fit with a complementary profile that offers growth opportunities across 3 distinct areas of our business: – Alloys (specialty consumables) – Equipment systems – Harris Products Group solutions • Trans
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