Trian Partners Activist Presentation Deck
Valued at a Meaningful Discount to Precedents/Strategic Value
Strategic transactions are relevant considering the rapid pace of consolidation in coatings
Top 10 players in the coatings market hold ~50% market share, up from ~30% 10 years ago
Recent large scale deals have been completed at ~11-17x EBITDA
▪ Trian estimates that PPG's Board valued Akzo Nobel's Coatings business at ~15x forward
EBITDA based on its final offer price in 2017(¹)
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Close Date
Jun-17
Mar-17
Dec-16
Nov-16
Nov-16
Acquiror
Sherwin-Williams
Henkel
Akzo Nobel
Evonik
BASF
Target
Valspar
Darex Packaging
BASF Industrial Coatings
APD Performance Materials
ALB Surface Treatment
Average
Deal
EV ($bn)
$10.9
$1.1
$0.5
$3.8
$3.2
EV/LTM
EBITDA
16.9x
17.0x
10.7x
15.8x
15.3x
15.1x
1
Source: Wall Street research, press releases.
(1) Valuation of Akzo's coatings business assumes PPG's final offer price of €96.75, net debt of €2.3bn (Q1 17) and EBITDA of €2.1bn (2017A). Analysis strips out the Specialty Chemicals business at the
purchase consideration recently offered by GIC/Carlyle.
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