Coppersmith Presentation to Alere Inc Stockholders
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Coppersmith's Leverage Plan: Potential Results
We estimate Coppersmith's plan would generate:
▪ Potential proceeds of $700mm to $3.4B, vs. Alere target of $200mm30
12/31/13 leverage of 0.0x to 1.0x assuming a sale of Toxicology and 3.7x to 4.3x assuming no Toxicology sale
> Including those assets reportedly targeted by management for divestiture, including Wampole and BBI, estimated by Wall
Street research to generate $200mm in potential proceeds30
Low
High
■
(dollars in millions)
With Toxicology Sale
Proceeds
12/31/13 Net Debt
2013 Pro Forma EBITDA with Cost Savings
Leverage
Without Toxicology Sale
Proceeds
12/31/13 Net Debt
2013 Pro Forma EBITDA with Cost Savings
Leverage
$2,940.9
426.4
414.2
1.0x
$700.3
2,666.9
617.9
4.3x
$3,371.6
(4.4)
464.2
0.0x
$927.4
2,439.9
667.9
3.7x
(dollars in millions)
Divestitures
Health Management LTM Revenue
Transaction Multiple
Health Management Value
Toxicology LTM EBITDA
Transaction Multiple
Toxicology Value
31
Consumer JV LTM Revenue
Transaction Multiple
50% of JV Value
COPPERSMITH
Company Targeted Divestiture Value
Total Divestiture Proceeds
Low
$538.8
0.50x
269.4
203.7
11.0x
2,240.6
184.7
2.5x
230.9
200.0
$2,940.9
High
$538.8
0.75x
404.1
203.7
12.0x
2,444.2
184.7
3.5x
323.2
200.0
$3,371.6
Coppersmith's plan projects Alere at best DEBT FREE NOW and at worst TWO YEARS AHEAD of
management and the Board's targetView entire presentation