Fortune Brands Innovations, Inc. · NYSE:FBIN
Fortune Brands Innovations — Merger or Acquisition (July 2023)
11 slides from Fortune Brands Innovations's merger presentation, Jul 27, 2023
Slide 1: Fortune Brands Acquires Emtek, Schaub, Yale and August
FORTUNE BRANDS ACQUIRES EMTEK, SCHAUB, YALE AND AUGUST * A HIGHLY STRATEGIC GROWTH ACCELERATOR SUPPLEMENTAL Q2 SLIDES JULY 27, 2023 * FBIN acquired U.S. and Canadian Yale and August residential smart locks business
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains certain “forward-looking statements” made within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements include all statements that are not historical statements of fact and those regarding our intent, bel
Slide 3: Acquisition Accelerates Our Growth Strategy and Is Consistent With Our Disciplined Track Record
ACQUISITION ACCELERATES OUR GROWTH STRATEGY AND IS CONSISTENT WITH OUR DISCIPLINED TRACK RECORD Emtek and Schaub • Strategic accelerant to brand, innovation and channel Leading luxury door and excellence across FBIN cabinet hardware brands recognized for world-class • Extremely attractive price; FBI
Slide 4: Acquisition Details Summary
ACQUISITION DETAILS SUMMARY % $410 MILLION 22% CLOSED $800 MILLION ACQUIRED ASSETS COMBINED FY 2022 SALES COMBINED 2022 JUNE 20, 2023 PURCHASE PRICE INCLUDE 17% 5 Year Net Sales CAGR EBITDA MARGIN FBIN completed 8.9x adjusted Approximate revenue Expected to be • Complete rights in acquisition of 202
Slide 5: Acquisition Is a Growth Accelerant With Transformative Potential
ACQUISITION IS A GROWTH ACCELERANT WITH TRANSFORMATIVE POTENTIAL Combining Fortune Brands Innovations’ existing assets with the acquired assets uniquely positions us to deliver first -to-market and scaled solutions, including the following: COMPREHENSIVE DIGITAL & CONNECTED SMART ENTRY LUXURY PLATFO
Slide 6: Attractive Synergy Opportunity by 2026
ATTRACTIVE SYNERGY OPPORTUNITY BY 2026 Sales Synergies: • Yale and August: ~ $35 million to $45 million run-rate sales synergy potential driven by: ‒ Expanding retail business ~ $65M to $85M ‒ Growing e-commerce and multifamily security channels RUN-RATE ‒ Accelerating innovations in smart security
Slide 7: Emtek and Schaub: Luxury Door and Interior Hardware Brands
EMTEK AND SCHAUB: LUXURY DOOR AND INTERIOR HARDWARE BRANDS RECOGNIZED FOR EXCEPTIONAL DESIGN AND CUSTOMER SERVICE Value Proposition: • Leading luxury brand with strong reputation for product quality, customer service and compelling design • Highly complementary with House of Rohl’s focus on craftsma
Slide 8: Yale and August: Smart Home Access Software and Residential Smart Locks
YALE AND AUGUST: SMART HOME ACCESS SOFTWARE AND LEADING MANUFACTURER OF RESIDENTIAL SMART LOCKS Value Proposition: • Highly trusted brands and strong IP portfolio with full suite of innovative products across professionally installed and DIY residential smart locks • Premier software platform that e
Slide 9: Strong Strategic Fit With Brand, Innovation and Channel Focus Will Accelerate Growth
STRONG STRATEGIC FIT WITH BRAND, INNOVATION AND CHANNEL FOCUS WILL ACCELERATE GROWTH BRAND INNOVATION CHANNEL ADDING STRONG BRANDS NEW AND TRANSFORMATIVE EXPANDING REACH BY LEVERAGING TO PORTFOLIO OPPORTUNITIES CHANNEL STRENGTHS • Leading luxury door and cabinet • Adding leading IP • Opportunities t
Slide 10: FY 2023 Updated Guidance Inclusive of Acquisition
FY 2023 UPDATED GUIDANCE INCLUSIVE OF ACQUISITION Updated guidance as of July 27, 2023 MARKET Prior Guidance Updated NET SALES Prior Guidance Updated Updated [Organic] Global Market -6.5% to -8.5% -5.5% to -7.5% Total Company -5% to -7% -0% to -2% -4% to -6% U.S. Market -6.5% to -8.5% -5.5% to -7.5%
Slide 11: Reconciliations
RECONCILIATIONS 2023 Full Year FREE CASH FLOW Estimate Cash flow from operations (GAAP) $830.0 – 880.0 Less: Capital expenditures 250.0 – 300.0 Free cash flow* $575.0 *Free cash flow is cash flow from operations calculated in accordance with U.S. generally accepted accounting principles ("GAAP") les
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