Fagron Sa · EURONEXT:FAGR
Fagron Sa — Merger or Acquisition (April 2018)
8 slides from Fagron Sa's merger presentation, Apr 3, 2018
Slide 1: Acquisition of US-based Humco
Acquisition of US-based Humco Rafael Padilla, CEO and Karin de Jong, CFO 3 April 2018 0
Slide 2: About Humco
About Humco Highly innovative and well-known company specialized in branded products for compounding Founded in 1872 Located in Austin (TX) and Texarkana (TX) 45,000 customers, served through pharmacy chains and wholesalers Numbers: • Sales US$ 32 million • EBITDA ~15% (normalized) • FTE 140 Sales-s
Slide 3: Transaction details
Transaction details Acquisition price • US$ 47.5 million (in cash) Earn-out • Capped at US$ 22.5 million (in cash) • Achieving EBITDA milestones in 2018 and 2019 Total consideration • Capped at US$ 70.0 million Net debt / REBITDA-ratio Fagron remains below 3.0X
Slide 4: Highly complementary
Highly complementary Excellent strategic fit for Fagron Limited overlap in customer base • Humco: ~ 45,000, through chains and wholesalers • Fagron: ~ 10,000, smaller independent pharmacies Limited overlap in product offer • Humco: Focus on Brands - Small portfolio of Essentials • Fagron: Focus on E
Slide 5: Synergies and cross-selling opportunities
Synergies and cross-selling opportunities Multiple brand strategy US-market • Three brands • Clear and distinctive positioning Focus on capturing synergies and cross-selling opportunities • Synergies: Purchasing, analysis, repacking of APIs, production of Brands and back office integration • Cross-s
Slide 6: Summary
Summary Excellent strategic fit and highly complementary Strengthening market position in US and abroad Substantial synergies and cross-selling opportunities Net debt / REBITDA-ratio < 3.0X and sustainable cash flow generation Focus remains on: • Strong organic growth through development of innovati
Slide 7: Q&A
Q&A
Slide 8: Disclaimer
Disclaimer Important information about forward-looking statements Certain statements in this presentation may be considered “forward-looking”. Such forward-looking statements are based on current expectations, and, accordingly, entail and are influenced by various risks and uncertainties. The Compan