Smiths Group Plc · LSE:SMIN
Smiths — Merger or Acquisition (April 2016)
11 slides from Smiths's merger presentation, Apr 21, 2016
Slide 1: Smiths Group focuses on global technology in security with $710m acquisition of Morpho Detection
Smiths Group focuses on global technology in security with $710m acquisition of Morpho Detection 21.04.2016 www.smiths.com
Slide 2: Forward-looking statements disclaimer
This presentation contains certain statements that are forward-looking statements. They appear in a number of places throughout this presentation and include statements regarding our intentions, beliefs or current expectations and those of our officers, directors and employees concerning, amongst ot
Slide 3: Acquisition of Morpho Detection – overview
Acquisition of Morpho Detection – overview • Enterprise value of $710m (£493m)** • >£4.5bn market by 2021, with mid-single digit growth • High quality, well-managed business • Enhances Smiths Detection’s technology and services leadership - Complementary capabilities - Sector-leading R&D strength -
Slide 4: Detection industry – growing from c.£3.3bn today to c.£4.7bn in 2021
Detection industry – growing from c.£3.3bn today to c.£4.7bn in 2021 Industry by end user Industry by geography RoW £0.3bn Ports and borders £0.9bn Air transport £1.3bn Asia North America 27% 39% £0.9bn 34% £1.1bn 27% 15% Military & ER £0.5bn 21% 32% EMEA Critical infrastructure £1.1bn £0.7bn Global
Slide 5: Morpho Detection – overview
Morpho Detection – overview • Provides Detection solutions, principally for 2015* revenue by geography air transportation and critical infrastructure worldwide RoW • Core technology: 20% - Computed Tomography Explosive Detection Systems (“EDS”) - Explosive Trace Detection equipment Europe North Amer
Slide 6: Morpho Detection Explosive Detection Systems
JOHN CRANE SMITHS MEDICAL SMITHS DETECTION Morpho Detection Explosive Detection Systems • Morpho Detection is a leader in the • EDS are utilised to detect larger quantities of development and manufacturing of threat material in air transported hold baggage Computed Tomography (“CT”) EDS - Typically
Slide 7: Morpho Detection Explosive Trace Detectors
JOHN CRANE SMITHS MEDICAL SMITHS DETECTION Morpho Detection Explosive Trace Detectors • Explosive Trace Detectors are used to • Desktop and handheld Trace units sold to Air analyse samples of invisible particles for Transportation, Critical Infrastructure and the presence of explosives and narcotics
Slide 8: Transaction summary: strategic highlights
Transaction summary: strategic highlights • Strengthens ability to develop and compete in attractive and growing global threat detection segments Positioning • Combination of complementary businesses will create a broad offering of mission-critical products and services • Extensive international pre
Slide 9: Transaction summary: financial highlights
Transaction summary: financial highlights • Enterprise value of $710m (£493m)** on a cash free debt free basis Transaction • Gross consideration payable of $723.7 million will include $13.7 million of acquired net cash (representing an EV of $710 million), and will be subject to customary adjustment
Slide 10: Smiths Detection and Morpho Detection – a compelling combination
Smiths Detection and Morpho Detection – a compelling combination Best in class Global leadership technology provider Industry size by 2021: c.£4.7bn Ports and borders £1.3bn Air transport £1.9bn 28% 40% 13% Military & ER £0.6bn 19% Substantial installed base Critical infrastructure Positioned for fu
Slide 11: Questions & Answers
Questions & Answers 21.04.2016 www.smiths.com 11 Smiths Group plc