Arko Corp. · NASDAQ:ARKO
Arko — SPAC Merger (July 2020)
21 slides from Arko's SPAC merger presentation, Jul 13, 2020
Slide 1: Investor Presentation July 2020
Exhibit 99.1 I N V E S T O R P R E S E N TAT I O N J U LY 2 0 2 0 1 ARKO Holdings Ltd. IIExhibit 99.1 I N V E S T O R P R E S E N TAT I O N J U LY 2 0 2 0 1 ARKO Holdings Ltd. II
Slide 2: Disclaimer
2 2 Disclaimer This investor presentation (“Investor Presentation”) is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of Haymaker Acquisition Corp. II (“Hayma
Slide 3: Disclaimer (cont'd)
3 Disclaimer (cont’d) Forward Looking Statements This Investor Presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the businesses of Haymaker, Ar
Slide 4: Company Snapshot: A Leader in the C-Store Industry
4 Company Snapshot: A Leader in the C-Store Industry (3) EXPANSIVE, CONTIGUOUS BUSINESS COMPOSITION ($ and gallons in millions) FOOTPRINT IN THE U.S. 2011 1,400 2020E FUEL VOLUME 2020E GROSS PROFIT MIX 4 Mr. Kotler acquires Total sites, including control of GPM via 1,272 retail stores and $6 (1) Ark
Slide 5: Representative Site Photos
5 Representative Site Photos 55 Representative Site Photos 5
Slide 6: Situation Overview: Stable Cash Flows and Growth Opportunities
6 Situation Overview: Stable Cash Flows and Growth Opportunities § Haymaker Acquisition Corp. II (“Haymaker” or “we”) was formed with the mandate to consummate a transaction in the consumer, media, retail or hospitality spaces, and we have identified a highly attractive opportunity in Arko Holdings
Slide 7: GPM Fits Perfectly with Haymaker's Targeted Acquisition Profile
7 GPM Fits Perfectly with Haymaker’s Targeted Acquisition Profile HAYMAKER II INVESTMENT CRITERIA GPM TRANSACTION $750 million - $2 billion consumer, retail, media, 7 ~$1.5 billion enterprise value; recession-resistant convenience store industry or hospitality business with channel advantages 7th la
Slide 8: Strategic Rationale for the Transaction
8 Strategic Rationale for the Transaction GPM is a best in class acquiror that has built an irreplicable platform through 17 acquisitions in the past seven years; its ability to acquire additional stores at attractive multiples and efficiently integrate them is one of three identified pillars of gro
Slide 9: Six Reasons We Love the Company
9 Six Reasons We Love the Company Leading U.S. convenience store operator with impressive history of growth (1) 1§ Seventh largest convenience store operator in the U.S. § Hard to replicate portfolio in predominantly rural and suburban markets 9 One of the largest and most active consolidators in th
Slide 10: 1. Major U.S. Convenience Store Operator
10 1. Major U.S. Convenience Store Operator LEADING U.S. OPERATOR GROWING, LARGE NETWORK (location total) 1,400 1,341 1,500 128 § Arie Kotler acquired GPM in 2011 (with 320 stores) and has grown 126 1,103 1,023 130 through acquisitions to become the 7th largest c-store chain in the 134 1,000 777 (1)
Slide 11: 1. Major U.S. Convenience Store Operator
11 1. Major U.S. Convenience Store Operator (1) FUEL VOLUME SALES IN-STORE SALES ADJUSTED EBITDA ($ in millions) (gallons in millions) ($ in millions) $175.0 1,200 $1,700 (2) $145 - $150 1,108 $1,510 $150.0 1,100 1,053 $1,500 (1) 11 $1,376 989 $125.0 1,000 $1,282 $1,300 872 $100.0 900 $83.8 $80.2 $1
Slide 12: 2. Leading Industry Consolidator
12 2. Leading Industry Consolidator (3) U.S. CONVENIENCE STORE COMPOSITION BY CHAIN SIZE GPM’S SUCCESSFUL HISTORY OF GROWTH Fragmented industry of 152,720 convenience stores § Strong history of acquiring and integrating store networks (1) § Since 2013, the Company has completed 17 acquisitions growi
Slide 13: 2. Leading Industry Consolidator
13 2. Leading Industry Consolidator GPM has consistently acquired quality assets at attractive multiples relative to publicly disclosed industry transactions. The Company has exercised demonstrable price discipline and creative approaches to transaction structuring which has resulted in attractive r
Slide 14: 2. Leading Industry Consolidator
14 2. Leading Industry Consolidator Recent transactions in the industry were completed at implied valuation multiples significantly higher than GPM’s historical experience; after synergies, the gap is considerably wider. 20.0x 14 (1) PUBLICLY DISCLOSED EV / EBITDA MULTIPLES 16.4x 15.7x 15.0x 13.1x 1
Slide 15: 3. Diversified Exposure to Retail and Wholesale End Markets
15 3. Diversified Exposure to Retail and Wholesale End Markets EXISTING GPM BUSINESS GPM + PENDING ACQUISITION DIVERSIFIED GROSS PROFIT MIX IN EXISTING GPM BUSINESS PENDING ACQUISITION WILL ADD ADDITIONAL SCALE AND GREATLY EXPAND GPM’S EXPOSURE TO WHOLESALE FUEL DISTRIBUTION § Company enjoys a diver
Slide 16: 3. Diversified Exposure to Retail and Wholesale End Markets
16 3. Diversified Exposure to Retail and Wholesale End Markets While not guaranteed, the pending acquisition is highly likely to close given GPM’s history of closing all transactions after signing purchase agreements; acquisition is expected to enhance the business and the financial performance illu
Slide 17: 4. Tangible Organic Growth Initiatives
17 4. Tangible Organic Growth Initiatives Following significant acquisition growth, GPM is re-investing in the in-store experience with numerous initiatives to drive sales and enhance returns 17 (1) (1) BEFORE AFTER (2) SIGNIFICANT STORE REMODEL PROGRAM PROGRAM OVERVIEW § Significant, embedded growt
Slide 18: 5. Large, Growing, Recession-Resistant Industry
18 5. Large, Growing, Recession-Resistant Industry ATTRACTIVE INDUSTRY DYNAMICS U.S. IN-STORE C-STORE SALES VS. U.S. CONSUMPTION INDEX Strong c-store sales growth during Great Recession § Strong industry fundamentals: Record in-store profits 6.0% 4.9% and fuel margin in 2019. Industry wide fuel gros
Slide 19: Publicly Traded Peer Analysis
19 Publicly Traded Peer Analysis § Definitive documentation and diligence may impact the figures below ADJ. EBITDA CAGR (2016-2020E) § Implied enterprise value of approximately 9.0x 2021E pro forma adjusted 40.0% EBITDA assuming closing of signed, pending acquisition and execution of other growth in
Slide 20: Pending Acquisition Under Contract
20 Pending Acquisition Under Contract SIGNED ACQUISITION COMPANY OVERVIEW GPM HISTORICAL TOTAL VOLUME (gallons in millions) § The acquisition under contract is one of the largest motor fuel GPM Pending Acquisition (1) distributors in the U.S. supplying 1,534 total stores 2,400 2,144 Pending 20 § Sel
Slide 21: Selected Press Coverage of GPM
21 Selected Press Coverage of GPM 21 Link Link Link Link21 Selected Press Coverage of GPM 21 Link Link Link Link