Capital Deployment and M&A Highlights
New M&A Announced November 2021 - IMG
Key M&A Strategies
Expand Portfolio of Proprietary
Product Offerings
Expand Served Markets and
Geographic Footprint
Gain Market Share with Key
OEM Customers
Expand and Diversify
Customer Base
Accretive to Gross and Operating Margins;
Target Returns > WACC
Transaction Highlights
•
About
img
Primary Market = Semiconductor
• Other Markets include Defense,
•
•
Medical, Aerospace
•
Revenue Growth Outgrowing
these Non-Semi End Markets
Primary Product Offering = Precision
Machining
Second-Largest Business is E-Beam and
Laser Welding
• Also Provides Brazing, Surface
•
Treatment, Ceramic Metallization,
Precious Metal Coatings
Five CA Locations, HQ in Livermore
Strategic Benefits
• Brings Ichor Additional Value-Added
Engineering and Manufacturing Capability
Provides Additional Capacity for Growth
• Expands Our Portfolio of Higher-Margin
Product Offerings
.
• Expands Our Served Markets
•
.
• Both Semi and Non-Semi
Expands and Diversifies Our Customer
Base
• Brings Recurring Revenue to Our Model
• Accretive to Earnings and Operating
Model
Financial Impact
• $270M Purchase Price
.
• Funded by $140M cash & securities on
hand and $130M in incremental
borrowing (recently expanded credit
facility)
• Closed in Q4 2021
•
• Annual Expected Contribution:
.
Revenues $70-80M
• EBITDA $20-22M
• Expected Impact on 2022 Profitability:
.
EPS $0.32-$0.38
.
• 100+ bp GM Increase
• 40+bp Op. Margin Increase
Note: Acquisition contribution amounts based on current industry activity levels and financial expectations on an annual basis, as disclosed in 11/16/2021 press release.
ichor
Proprietary
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