Investor and Analyst Day Presentation
Increasing Annual Tuck-Ins Are An Attractive Value Creation
Opportunity in Current Markets
Cott
We have a good Pipeline of tuck-in acquisitions and the opportunity exists to do
larger tuck-in acquisitions with purchase price in the $10 - $60 million range.
Revenue growth and modest EBITDA margin expansion can be driven by
increased tuck-in acquisitions over the next 12-36 months, while continuing to
evaluate larger strategic transactions with an opportunistic mindset.
To illustrate, $60 million of annual tuck-in acquisitions over a three year period
generates:
✓ Additional revenue growth of ~2%
✓ Expands EBITDA margins by 10 to 30 basis points per year
✓ While reducing leverage to the mid 2x* by the end of the three year period.
Source: Cott Management
*Assumes no change in Euro exchange rate as of March 1, 2018, utilizing cash flows for acquisitions (debt does not increase) while still growing overall cash balance.
36View entire presentation