Olam Group Limited · SGX:VC2
Olam — Olam International — Merger or Acquisition (June 2010)
18 slides from Olam's merger presentation, Jun 8, 2010
Slide 1: Acquisition of vegetable dehydrates business (Gilroy Foods) from ConAgra
Olam International Limited Acquisition of vegetable dehydrates business (Gilroy Foods) from ConAgra Foods Food Ingredients Company, Inc. 8 June 2010 1 1
Slide 2: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements This presentation may contain statements regarding the business of Olam International Limited and its subsidiaries (‘Group’) that are of a forward looking nature and are therefore based on management’s assumptions about future developments. Such forward
Slide 3: Presentation Outline
Presentation Outline Transaction Overview & Investment Rationale Shekhar Anantharaman – Executive Director Director, Olam International Limited Overview O i off Assets A t Greg Estep – President & General Manager, Gilroy Foods & Flavors Business & Strategic Fit Ashok Krishen – Managing Director & Gl
Slide 4: Transaction Overview & Investment Rationale
Transaction Overview & Investment Rationale 4
Slide 5: Transaction Overview
Transaction Overview Acquisition of operating assets of Gilroy Foods (“Gilroy”) including dehydrated onion, garlic, and capsicum operations, as well as Transaction p p yp proprietary g of Controlled MoistureTM products consisting vegetables, GardenFrost® purees, and RediMadeTM shelf stable purees fr
Slide 6: Investment Rationale
Investment Rationale Build Scale & Gilroy is the largest processor of onions, garlic, and capsicums in North Industry America, which enables Olam to build substantial scale and industry leadership p leadership p in its Spices p and Dehydrates y business Enhances the Spices & Dehydrates portfolio to
Slide 7: Overview of Assets
Overview of Assets The Brand Behind The Brands
Slide 8: Key Highlights
Key Highlights Ideal Asset Configuration Attractive Business Portfolio Plants spread across 6 locations in Product portfolio consisting of onions, USA which USA, hi h provides id ffurther th scale l tto garlic, li capsicum, i andd vegetables t bl iin a Olam’s existing operations in the US variety of
Slide 9: Plant Locations
Plant Locations Umatilla, OR Dehydrated Onions Fernley, NV Modesto, CA Dehydrated D h d t d& Dehydrated Onions Frozen Vegetables Gilroy, CA Dehydrated Garlic & Onions Hanford, CA Vegetables, Garlic Onions, Capsicums Las Cruces, NM Dehydrated Capsicums 9
Slide 10: Plant Details
Plant Details Location Products Facilities Plant Details Dehydration 62 acres, total 925,000 sq. ft. built-up Gilroy, Onions Milling including 543,000 sq. ft. dry storage California Garlic Packing area Controlled Modesto, Vegetables moisture 38 acres, acres 271 271,185 185 sq. sq ft ft. built-up
Slide 11: Plant Details (contd.)
Plant Details (contd.) Location Products Facilities Plant Details Fernley, Dehydration Onions 160 acres, total 53,752 sq. ft built-up Nevada Milling Las Cruces, Dehydration Capsicum 24 acres, 350,000 sq. ft. built-up New Mexico Packaging 71,732 sq. ft under roof, including stand Umatilla, Onio
Slide 12: Key Industry Segments
Key Industry Segments Estimated US segment size of about 220 to 230 million pounds y Dehydrated Onions g Estimated segment size of US$$ 300 million Category growth rate of about 1-2% Estimated US segment size of about 140 to 150 million pounds Dehydrated Garlic Estimated segment size of about US$ 20
Slide 13: Business & Strategic Fit
. - ; , The Brand Behind The Brands
Slide 14: Business & Strategic Fit
Business & Strategic Fit Enables expansion of our existing product portfolio consisting of onion, garlic, and tomatoes to include capsicum, other vegetables, and purees Products Builds a leading & differentiated industry position because of the ability to cross-sell a range of basic ingredients from
Slide 15: Financial Highlights
Financial Highlights Value and earnings accretive transaction from year 1 On combining with Olam Olam’ss existing US dehydrated vegetable operations, forecasted annual revenue of about US$ 300 to 350 million and EBITDA margin of about 14% to 15% Total investment is US$ 250 million, subject to final
Slide 16: Summary
Summary Access to industry leadership position and differentiated product portfolio Strong strategic and business fit with Olam Spices & Dehydrates business unit Attractive operational assets with a proven track record Access to strong management team with deep industry experience Builds a strong pa
Slide 17: The Brand Behind The Brands
The Brand Behind The Brands
Slide 18: Thank You
Behind The Brands
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