Phibro Animal Health Corporation · NASDAQ:PAHC
Phibro Animal Health — Merger or Acquisition (April 2024)
15 slides from Phibro Animal Health's merger presentation, Apr 29, 2024
Slide 1: Phibro to Acquire Zoetis' MFA and Certain Water Soluble Products Business
Phibro Animal Health Corporation Phibro to Acquire Zoetis’ Medicated Feed Additives (MFA) and Certain Water Soluble Products Business April 2024
Slide 2: Important Information
Important Information Forward-Looking Statements This presentation contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995, which reflect the current views of Phibro Animal Health Corporation (“Phibro”) with respect to business plans or prospects, fut
Slide 3: Overview: Phibro to Acquire Zoetis' MFA and Certain Water Soluble Products Business
Overview: Phibro to Acquire Zoetis’ MFA and Certain Water Soluble Products Business MFA and Certain Water Soluble Products Business Acquisition of Zoetis MFA and Certain Water Soluble Products Business for $350mm, subject to working capital and other adjustments Strong strategic fit with Phibro core
Slide 4: Transaction Highlights
Transaction Highlights 1 Boost to Phibro scale, making Phibro #6 in Global Animal Health by revenue MFA business continues to be a critical part of meeting global protein demand Strong strategic fit with Phibro existing MFA franchise, and nicely complements Nutritional Specialties and Vaccines, whic
Slide 5: MFAs Remain Critical in Meeting Global Protein Demand
1 MFAs Remain Critical in Meeting Global Protein Demand The world population is expected to reach Improve Overall Animal Health 9.8bn by 2050 and and Welfare will require 70% more animal protein MFAs help improve the wellbeing and overall health of livestock by treating and controlling Provides More
Slide 6: Phibro Standalone Business Today
1 Phibro Standalone Business Today Fiscal Year 2023 $978mm $113mm Snapshot: Sales Adj. EBITDA Segment Overview • Antimicrobials, anticoccidials, rumen health, anthelmintics, and process aids used in ethanol MFAs & Other fermentation $387mm Animal Health • Nutritional Specialties: Immune modulators,
Slide 7: Zoetis' MFA and Certain Water Soluble Products Business
1 Zoetis’ MFA and Certain Water Soluble Products Business Footprint Species Mix Geographic Mix Brazil 4% (1) APAC Other Mexico Other Swine Other (1) 17% EMEA 6% 21% 4% 19% 12% 25% Poultry Poultry Swine Poultry China United 34% United LATAM Ex-US 46% 13% 37% 7% United States Swine States & 42% Beef S
Slide 8: Financially Compelling
2 Financially Compelling LTM Dec 2023 Revenue ($bn) Acquisition significantly expands revenue base ~$1.4 Expand and Diversify Stable, low-to-mid single digit top line growth Revenue Base Six manufacturing facilities across 3 continents ~$1.0 1 2 Combined LTM Dec 2023 Adj. EBITDA(1) ($mm) Zoetis’ MFA
Slide 9: Transaction Overview
2 Transaction Overview Structure • Purchase of assets exclusive to Zoetis Medicated Feed Additive (MFA) and certain water soluble products business; shared assets outside of perimeter Purchase Price • Total transaction consideration of $350mm, subject to working capital and other adjustments Transit
Slide 10: Prudent Capital Allocation
3 Prudent Capital Allocation Prudent capital deployment, with strong value retention for Phibro shareholders - Attractive purchase price (as measured by multiple of Adj. EBITDA) in markets Phibro knows well - Significant boost to Phibro revenues and earnings power 100% cash / debt financed (no equit
Slide 11: Transaction Highlights
Transaction Highlights 1 Boost to Phibro scale, making Phibro #6 in Global Animal Health by revenue MFA business continues to be a critical part of meeting global protein demand Strong strategic fit with Phibro existing MFA franchise, and nicely complements Nutritional Specialties and Vaccines, whic
Slide 12: Q&A
Q&A 12
Slide 13: Appendix
Appendix Phibro
Slide 14: Net Income to Adj. EBITDA Reconciliation
Net Income to Adj. EBITDA Reconciliation ($mm) LTM Ended 12/31/2023 Net income $14.8 Interest expense, net 17.6 Provision for income taxes 13.3 Depreciation and amortization 34.8 EBITDA $80.6 Acquisition-related cost of goods sold 0.3 Pension settlement costs 10.7 Brazil employment taxes 4.2 Stock-b
Slide 15: © 2024 Phibro Animal Health Corporation, Teaneck, NJ 07666 Phibro; Phibro logo design; Healthy
© 2024 Phibro Animal Health Corporation, Teaneck, NJ 07666 Phibro; Phibro logo design; Healthy Animals. Healthy Food. Healthy World.; and any other Phibro brand or brands shown herein are trademarks owned by or licensed to Phibro Animal Health Corporation or its affiliates. Any other trademark that
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