Synthomer Plc · LSE:SYNT

Synthomer — Merger or Acquisition (2016)

7 slides from Synthomer's merger presentation, Jul 9, 2016

  1. Slide 1: Acquisition of HEXION Performance Adhesives & Coatings

    Acquisition of HEXION Performance Adhesives & Coatings

  2. Slide 2: Hexion PAC Overview

    Hexion PAC Overview  HEXION PAC, a business of HEXION Inc. to be HEXION PAC 2015 acquired for $226 million cash consideration Revenue: $370m EBITDA $30m  Portfolio made up of Dispersions & Additives,  Coatings, Construction & Adhesives Dispersions; Textiles and Non-Wovens and Re-Dispersable Powde

  3. Slide 3: Strategic Rationale

    Strategic Rationale Sales by End Market  Good fit and highly complementary to Synthomer Others, 2% Transportation, 3% Consumer Goods, 1%  Excellent SHE performance Textiles, 7% Coatings, 33% Industrial, 8%  Strengthens position in Performance Adhesives and Coatings markets  Extended geographic r

  4. Slide 4: Synergies

    Synergies  Target ~ $12m of annualised synergy by end 2018  $6m short-term service level agreements with Hexion group  Integration and consolidation of Hexion PAC with Synthomer Dispersion and Additives businesses  Optimisation and stream lining overheads and support functions  Product and foot

  5. Slide 5: Summary Financial Information

    Summary Financial Information  EBITDA c. $30m and synergies c. $12m  Transaction multiple  pre synergies – c. 7.5x  post synergies – c. 5.4x  Cost of synergies – c. $9m restructuring costs and c. $12m capital costs Synthomer Hexion PAC Pro-forma  [Dependent on disclosure. £m Given the class te

  6. Slide 6: Deal Summary & Timetable

    Deal Summary & Timetable  Extensive due diligence carried out:  Assets well invested  Pension/post retirement liabilities fully funded at completion  Cash free/debt free and normal working capital  Strong warranties and indemnities  All cash offer of $226m (£156m):  Offer funded fully from ex

  7. Slide 7: Disposal of Operations in South Africa

    Disposal of Operations in South Africa  Agreed to sell dispersions business in South Africa to Ferro S.A. for £13m  Ferro is a performance materials company which has been acquiring businesses since inception  Markets include powder coatings, glass systems, tile systems, masterbatch plastic addit

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