A. Schulman Overview Global 2.9 1928 presence Billion Public company Founded by since in revenue (pro forma) 1972 Alex Schulman 1950s (Symbol: SHLM) in Akron, Ohio, US 11 Acquisitions since 2010 1,000,000 112,1 Tons current…
A. Schulman Business Overview Business Description A. Schulman, Inc. (SHLM, A. Schulman or the Company) is an international supplier of high-performance and engineered plastic compounds, color concentrates and size reduction…
A. Schulmans Six Product Families Citadels Engineered Plastics was integrated into A. Schulmans Engineered Plastics Product Family Custom Performance Engineered Masterbatch Engineered Plastics Specialty Powders Distribution Services…
Diverse End Markets & Applications Key End Markets End Market % of Revenue Key Products Key Applications Key Attributes % of Revenue 36% Masterbatches Food packaging Color matching and color trending services Custom Performance…
A. Schulmans Expanded Vision VALUE CHAIN POSITIONI NG Raw material Mixing / Formulation Parts Distribution aggregation End market manufacturing manufacturing /grinding SHLM Value-chain extension by TODAY Polymer value chain…
TRANSACTION OVERVIEW 10
Citadel Transaction On March 15, 2015, A. Schulman entered into an agreement to acquire 100% of the outstanding shares of HGGCs Citadel Plastics for 800 million The total transaction values Citadel at 10.6x FYE 2014 Adjusted EBITDA…
A. Schulman & Citadel This merger provides customers from both companies access to: Enhanced and broader, deeper and higher value-added product offerings Balanced global platform, with state-of-the-art production facilities in high-…
Snapshot of A. Schulman and Citadel + = Pro Forma Leading international supplier of high- Leading material science expert, providing Leading supplier of high performance performance plastic compounds and resins custom engineered…
Strategic Rationale For Acquiring Citadel Plastics Significant Boost To Expands scale and global leadership in A. Schulman's core business of Engineered Plastics A. Schulman's Scale Adds scope with a new market leading growth platform in…
Overview of Expected Synergies Business Area Savings Description Volume consolidation Procurement 11M Pricing differentials Global aggregation Manufacturing Efficiencies 9M Consolidation of manufacturing activities Other SG&A 1M…
Financing Overview* Debt as of Debt Tranches Pricing 6/1/15 Revolver - 300 L+225 bps 38 35 bps undrawn Term Loan A L+225 bps 200 USD Term Loan B L+325** 350 EUR Term Loan B L+325** 145 162 High Yield Bond 6.875% 375…
Use of Cash Reinvest in the business Dividend payments Debt repayments Opportunistic acquisitions Share buy backs 17
Citadel Business Overview Business Description Historical Revenue1 Citadel is a provider of custom material solutions, with material 429 science expertise in providing specialized applications Material agnostic solution provider,…
Citadels Business Segments Engineered Plastics Engineered Composites 2014 Revenue (mm)1 288 235 Used in compression and injection molding Polyolefins, engineered TPs Highly filled compound, using short glass or carbon fibers…
Unparalleled Ability To Match Customer Needs With Material Solutions Select Key End Markets End Market % of Revenue1 Products Key Applications Representative Customers % of Revenue 26% BMC Nylon Forward lighting systems SMC Alloys…
Leading Positions with Highly Defensible Businesses LTM (02/28/15) PF Net Sales Breakdown by End-Market 1 Drivers External Attractive growth rates for plastics Sports, Leisure High growth end markets including agriculture, Other…
Acquisition Boosts Critical Mass, Geographic Balance and Improves Economies of Scale EMEA Production U.S. and Canada Facilities Production Facilities A. Schulman: 17 A. Schulman: 16 Citadel: 1 Citadel: 15 Asia Pacific…
Strong Diversified End Markets Other 8% Sports, Leisure & Home 5% Other Transportation 17% Packaging 26% Personal Care & 36% Hygiene 4% Custom Electrical Services 7% 18% Agriculture 5% Electronics & Industrial &…
Established Track Record of Executing Acquisition Strategy Recent Acquisitions Strategic Rationale & Rev. Strategic Rationale & Rev. Acquirer Target Year Acquirer Target Year Focus (mm)1 Focus (mm)1 Color MBS / U.S. Engineered A…
Global locations U.S./Canada Latin America EMEA APAC Canada Ohio Argentina Austria Italy Sweden Australia Guelph, Ontario Fairlawn (Headquarters) Buenos Aires Vienna Gorla Maggiore storp Braeside Akron (2x) United States Geneva…
Adj. EBITDA Reconciliation A. Schulman Fiscal Year Ended Six Months Ended Twelve Months Ended ( in millions) 31-Aug-12 31-Aug-13 31-Aug-14 28-Feb-14 28-Feb-15 28-Feb-15 28-Feb-15 (Pro Forma) EBITDA Reconciliation: Income from continuing…
Adj. EBITDA Reconciliation Citadel Plastics Fiscal Year Ended December 31, ( in millions) 2012 20135 2014 EBITDA Reconciliation: Net loss (22.6) (28.9) (4.8) Income tax expense (benefit) (2.8) (4.7) 5.2 Intertest income (expense),…
Loading...
