Transcontinental Inc. Class A · TSX:TCL.A
Transcontinental Inc. Class A — Merger or Acquisition (April 2018)
16 slides from Transcontinental Inc. Class A's merger presentation, Apr 2, 2018
Slide 1: Acquisition of Coveris Americas
Acquisition of Coveris Americas Becoming a Leader in Flexible Packaging in North America April 2, 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Transcontinental Inc. (“TC Transcontinental" or the "Corporation") solely for information purposes. Recipients of this presentation may not reproduce or otherwise redistribute, in whole or in part, this presentation to any other person. No Investment
Slide 3: Caution Regarding Forward Looking Statements
Caution Regarding Forward Looking Statements This presentation contains statements that are "forward-looking statements" or "forward-looking information" within the meaning of applicable Canadian securities legislation, including those regarding the Acquisition. Forward-looking statements also inclu
Slide 4: Financial Considerations of the Transaction
Financial Considerations of the Transaction ► Definitive agreement to purchase Coveris Americas, a subsidiary of Coveris Holdings S.A., for US$1.32 billion Transaction ► Purchase price multiple of 10.3x Adjusted EBITDA of Coveris Americas before cost saving synergies or 8.9x post-synergies ► Coveris
Slide 5: Coveris Americas at a Glance
Coveris Americas at a Glance US$966 million US$128 million Revenues for the fiscal year ended Adjusted EBITDA for the fiscal year ended December 31, 2017 December 31, 2017 Extensive Footprint Leadership Position ► 21 Facilities with over 3,100 Employees Across a Broad Range of Growing End Markets ►
Slide 6: Compelling Acquisition Rationale
Compelling Acquisition Rationale ✓ Positions TC Transcontinental among the top ten flexible packaging converters in North America ✓ Provides TC Transcontinental with a strong position across a broad range of flexible packaging’s growing end markets ✓ Expands TC Transcontinental’s product offering wi
Slide 7: Positions TC Transcontinental among the Top 10 Flexible Packaging Converters
Positions TC Transcontinental among the Top 10 Flexible Packaging Converters in North America Top 10 North American Flexible Packaging Converters1 (US$ million) From 22nd to Top Ten $1,202 Legend Public Private Source: Flexible Packaging Magazine. Note: Financial figures of TC Transcontinental in fi
Slide 8: Scaling of Flexible Packaging Platform
Scaling of Flexible Packaging Platform Pro Forma Revenues Pro Forma Adjusted EBITDA 20171 20171 7% 4% ~$3.3 billion 45% 37% ~$564 million 48% 59% Packaging represented 15% of Legend Packaging represented 11% of TC Transcontinental’s standalone Printing Packaging Media TC Transcontinental’s standalon
Slide 9: Comprehensive Product Offering
Comprehensive Product Offering Types Markets Products • Vacuum shrink and frozen • Fresh meats Shrink Bags and bags • Processed meats Thermoforming Films • Co-ex forming films • Cheese • Beverage multi-packs • Shrink films and sleeves • Cheese Films and Laminations • Form, fill and seal (FFS) • Hous
Slide 10: Expands Portfolio Across Attractive End Markets
Expands Portfolio Across Attractive End Markets Alignment with TC Highlights of Acquired Business Complementary • Strong capability in extrusion lamination Dairy Operations • Complements TC Transcontinental’s existing offering in the dairy vertical • Attractive assets in high-growth end market Compl
Slide 11: Provides an Integrated Platform Leading to Potential Economies of Scale
Provides an Integrated Platform Leading to Potential Economies of Scale ► Acquisition of 21 well-invested facilities, namely in the Americas, the United Kingdom and Australasia CHINA UNITED KINGDOM NEW ZEALAND MEXICO GUATEMALA ECUADOR Legend TC Transcontinental Packaging (7) Coveris Americas (21) 11
Slide 12: Scaling Opportunity of Film Manufacturing
Scaling Opportunity of Film Manufacturing ► Acquisition of a strong expertise in technical films production that enables insourcing of film manufacturing • Significant high-end blown extrusion capacity for multi-layer barrier film (up to 11 layers) • Extensive extrusion lamination capabilities • Cas
Slide 13: Unlocks Important Cost Saving Synergies
Unlocks Important Cost Saving Synergies ► Value creation to be enhanced by important cost saving synergies to be realized over the first 24 months following the closing of the Acquisition Economies ► Procurement of raw materials of Scale Sharing of ► Vertical integration of film manufacturing Best P
Slide 14: Conclusion
Conclusion Accelerates TC Transcontinental’s transformation into a diversified print, packaging and media company Positions TC Transcontinental amongst the top ten flexible packaging converters in North America with greater film manufacturing capabilities Opportunity for TC Transcontinental to lever
Slide 15: Appendix: Financials
Appendix: Financials Table of reconciliation of certain non-IFRS financial measures used by the Corporation and Coveris Americas herein: Coveris Americas Pro Forma Year ended Financial Reconciliation of Information Operating earnings to Transcontinental December 31, December 31, Year ended Adjusted
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