Brenntag Se · XETR:BNR
Brenntag — Merger or Acquisition (September 2011)
17 slides from Brenntag's merger presentation, Sep 2, 2011
Slide 1: Acquisition of Multisol Group Limited
01/09/2011 enshow.ppt Acquisition of Multisol Group Limited d0207_Client Scree Analyst / Investor Presentation – September 02, 2011 10bld September 02, 2011 0
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by Brenntag AG and other information currently available to the company.company Various known and unknown risks, uncertainties and other factors could lead to material differences betw
Slide 3: Agenda
Agenda 1. Transaction highlights 2. Multisol Group – Expanding Brenntag’s full-line portfolio 01/09/2011 Appendix enshow.ppt d0207_Client Scree 10bld September 02, 2011 2
Slide 4: Acquisition of Multisol Group
1. Transaction highlights Acquisition of Multisol Group Today’s news Brenntag extends its focus into the growth segment of lubricant additives and high quality base oils with the acquisition of specialty chemical distributor Multisol Strategic Rationale • Fully in line with Brenntag’s growth strateg
Slide 5: Lubricant basics
1. Transaction highlights Lubricant basics Base oil Additive Lubricant Creates the volume Changes the properties • Product that can be • Main component blended in • Active substances are used for multiple • mineral oils and/or added to base oils in order purposes depending on to formulation: • synth
Slide 6: Potential for future growth in additives business
1. Transaction highlights Potential for future growth in additives business Market characteristics Specific opportunities • Whilst lubricants volumes are stable in Multisol is well positioned to benefit from Western Europe the tightening of product the regulatory changes and the demand specification
Slide 7: Transaction fully in line with Brenntag's growth strategy
1. Transaction highlights Transaction fully in line with Brenntag Brenntag’ss growth strategy Brenntag’s Vision Be the safest, fastest growing, most profitable, full-line global Chemical Distributor and preferred channel for both specialty and industrial chemicals Strategic guidelines Multisol Group
Slide 8: Conditions of transaction
1. Transaction highlights Conditions of transaction • Acquisition of 100% of the shares of Multisol Group Li it d in Limited i a share h deal d l • GBP 112.1 m purchase price on a cash and debt free Transaction basis structure and • 20111) multiple of 6.6x EBITDA value • Depending on the level of wo
Slide 9: Agenda
Agenda 1. Transaction highlights 2. Multisol Group – Expanding Brenntag’s full-line portfolio 01/09/2011 Appendix enshow.ppt d0207_Client Scree 10bld September 02, 2011 8
Slide 10: Multisol – Company description
2. Multisol Group Multisol – Company description • The head office is located in Nantwich, Ch hi (UK) Cheshire • Multisol is present in the UK, France and South Africa; in addition it has sales activities in Russia, Russia Poland and Spain • Operates 3 distribution sites with nearly 170 employees •
Slide 11: Multisol – Unique selling points making it a strategic fit
2. Multisol Group Multisol – Unique selling points making it a strategic fit • Expansion of Brenntag‘s mixing and blending capabilities, a core strength of Multisol • Strengthen Brenntag’s product range in the sector of base oils • Add new product line: Lubricant Chemicals • Increasing emission stan
Slide 12: Multisol – Strong customer and supplier base
2. Multisol Group Multisol – Strong customer and supplier base Strong supplier base Strong customer base • Multisol cooperates with key major • Multisol’s customer base consists suppliers of lubricant additives and of: base oils (group I – IV) • Large players in the oil & gas • Long-term contracts e
Slide 13: Multisol – Financials
2. Multisol Group Multisol – Financials Company financials in GBP m 2012E CAGR 2012 2012-2016 2016 External Sales 238 + ~ 3% Gross Profit 39 + ~ 7% 01/09/2011 EBITDA1) 19 + ~ 9% enshow.ppt One-off One off expenses: mainly advisory costs costs, due diligence diligence, merger control filing, filing s
Slide 14: Agenda
Agenda 1. Transaction highlights 2. Multisol Group – Expanding Brenntag’s full-line portfolio 01/09/2011 Appendix enshow.ppt d0207_Client Scree 10bld September 02, 2011 13
Slide 15: Brenntag's Re-defined Strategy of Continued Profitable Growth
Appendix Brenntag’s g Re-defined Strategy gy of Continued Profitable Growth Be the safest, fastest growing, most profitable, global Chemical Distributor and preferred channel for both Vision specialty and industrial chemicals • Focus on organic growth and acquisitions – Intense customer orientation
Slide 16: Acquisitions have achieved three main objectives
Appendix Acquisitions have achieved three main objectives Building up scale Expanding geographic Improving and efficiencies coverage full-line portfolio • Germany, 2002 • CEE, 2000 • ACES1), 2004 Biesterfeld Neuber Acquacryl / Chemacryl (UK) • UK and Ireland Ireland, 2006 • Canada / Latin America /
Slide 17: Brenntag's successful acquisition track record
Appendix Brenntag’ss successful acquisition track record (prior to Multisol Group Limited) Brenntag Global market shares of largest full-line chemical distributors Highly fragmented market Top 10 = 23% • Only three full-line chemical distributors with a significant multi-continental footprint Brennt