Orica Limited · ASX:ORI
Orica — Merger or Acquisition (September 2003)
6 slides from Orica's merger presentation, September 2003
Slide 1: Acquisition of minority interests in Welvic Australia Pty Ltd
Acquisition of minority interests in Welvic Australia Pty Ltd
Slide 2: Transaction Summary
TRANSACTION SUMMARY ? Orica to acquire 100% control of Welvic by purchasing 37.4% minority interest held by PolyOne Corporation ? Acquisition price : ~A$3.5M ? Effective date : 1 September 2003 ? Business will be fully integrated into Orica Chemnet ? Product distribution agreement also formed betwee
Slide 3: Welvic Australia Pty Ltd
WELVIC AUSTRALIA PTY LTD HISTORY BUSINESS OUTLINE ? Welvic is Australia’a largest ? Employs ~ 65 people established manufacturer of ? Compounding plants located custom PVC compounds within Victoria at Deer Park and ? Number one in the market with Mentone > 50% market share ? Compounds are sold into
Slide 4: Why the acquisition makes sense for Chemnet
WHY THE ACQUISITION MAKES SENSE FOR CHEMNET ? Logical fit into Chemnet through its Polymer and additives distribution channel (building on the Qenos Engineering Plastics acquisition) ? Welvic is not involved in “heavy end”plastics manufacture. Business model adds value to commodity distribution ? Ch
Slide 5: Why the acquisition makes sense for Orica
WHY THE ACQUISITION MAKES SENSE FOR ORICA ? Acquisition satisfies our strategic principles ? Market leadership ? growing only value adding business who have “earned the right to grow” ? related growth - building on our best businesses ? Chemnet: ? exceeds Orica performance measures ? track record of
Slide 6: Why the acquisition makes sense for Orica
WHY THE ACQUISITION MAKES SENSE FOR ORICA Financial ? EPS positive ? Transaction meets IRR and RONA targets ? Low risk value creation ? efficiencies quickly realisable ? under management control