Midsona acquires Davert. Investor Presentation

Transcription

1 Midsona acquires Davert Investor Presentation

2 Midsona s Vision To be one of the leaders in Europe within health and well-being 2

3 Overview of Davert (1/3) Founded in 1984, Davert is a leading German manufacturer and distributor of organic dry packaged food, including both branded and private label products Customers: grocery stores, drugstores, health food stores, food services industry Management: experienced team led since 2013 by MD, Erk Schuchhardt Key Figures: 2017A: sales of EUR 64 million and adjusted EBITDA of EUR 4.4 million 2018E: increase in sales year-over-year and adjusted EBITDA of EUR 5.0 million Employees: 150 Location: Ascheberg, Germany 3

4 Overview of Davert (2/3): Product Portfolio Snacks Rice Pulses Semi-cooked Food Oil Seeds Fast Cooking & Soy Products Breakfast, Flakes & Toppings Breads Dried Fruits & Nuts Sugar Superfooods Cereals The current product portfolio is divided into the above 12 categories Strong focus on new product innovations, such as convenience products 4

5 Overview of Davert (3/3): Sourcing and Manufacturing Davert s high quality and strong position across the value chain starts with its sourcing expertise In 2013 Davert moved into its new 8,000m 2 facility, consolidating 4 older facilities into 1 modern, purpose-built facility Between 2014 and 2017 investments were made in new filling lines, bringing the total to 8 fully automated lines In 2017, the construction of a new fully automated high-bay warehouse was completed (capacity of ~18,000 pallets) Uncompromising quality standards are supported by significant investments and expertise in pressure treatment (3 CO 2 pressure chambers) and cleaning (3 automated lines, 2 gluten-free and 1 gluten) 5

6 Transaction Highlights Purchase price: enterprise value (EV) of EUR 48.5 million (~SEK 511 million) (1) Multiple: EV/2018E EBITDA of 9.7x Financing: cash payment financed with a new debt facility Synergies: expected annual EBITDA impact of EUR 3.8 million (SEK 40 million) by 2022, with initial synergies expected during 2019 Timing: transaction closed on May 3, 2018 (1) The purchase price excludes: (i) a capital investment in a new production line of EUR 8.5 million and (ii) potential payments between April 2020 and 2022 of up to EUR 6 million in aggregate contingent on Davert exceeding specified financial targets. The capital investment will provide Davert with new production capabilities targeted at attractive, fast growing segments. The investment program is expected to be completed in late Note: Purchase price and 2018 figures converted to SEK at exchange rate of

7 Impact on Midsona: improved regional sales profile Midsona Sales (2017) Pro Forma Sales (2017) Denmark 16% Finland 8% Other 4% Sweden 46% Germany 19% Other 6% Sweden 36% Finland 7% Norway 26% Denmark 12% Norway 20% Davert s key market is Germany, accounting for approximately 85% of sales in 2017 The addition of Davert provides Midsona with a major presence and building block outside of the Nordic region Note: 2017 figures in EUR converted to SEK at 2017 average rate of

8 Impact on Midsona: improved position in organic food Midsona Sales (2017) Pro Forma Sales (2017) Self care products 25% Organic products 42% Self care products 19% Organic products 55% Healthfoods 33% Healthfoods 26% As a result of the transaction, the attractive organic segment now represents more than half of Midsona s total sales Note: 2017 figures in EUR converted to SEK at 2017 average rate of

9 Impact on Midsona: improved manufacturing footprint Midsona HQ (Malmö, Sweden) Midsona regional locations Midsona manufacturing facility (Mariager, Denmark) Davert HQ and manufacturing facility (Ascheberg, Germany) Germany is the optimal entry point for Midsona in its expansion into Europe Located within 3 hours of several key ports, Davert s sourcing & production capabilities can be leveraged for the benefit of the Nordic operations as well as future potential expansion 9

10 Transaction Rationale: summary Leading player within organic dry foods in the targeted German market Well established, premier organic brand in the growing German market Present across channels and able to serve the branded and private label needs of customers Unique platform for European growth strategy Best-in-class, modern production facility Ideally located in NW Germany (close to Nordic operations, key ports, other European markets) Complementary product portfolio and expertise Strong product portfolio, which is 100% in the attractive organic food segment Cross-selling and production/sourcing opportunities with Urtekram / Kung Markatta / Helios Addition of a strong leadership team Attractive synergy potential Production, cross-selling and procurement synergies of EUR 3.8 million (SEK 40 million) expected by

11 For further information please visit CEO Peter Åsberg CFO Lennart Svensson