Investor Presentaiton
Executive summary
Transaction overview
Transaction overview
Lion Dairy & Drinks
Acquisition rationale
Bega Cheese Limited ("Bega") has entered into a binding agreement to acquire Lion Dairy & Drinks Pty Ltd ("LD&D") for $534 million¹
Implies EV/EBITDA multiple of 10.9x pro forma normalised LTM Sep-20 EBITDA² of $56 million and 6.3x post synergy realisation³
In addition to the acquisition price, Bega expects to incur stamp duty and acquisition transaction costs ($42 million), capital raising and debt funding
costs ($11 million), upfront transition costs ($21 million), additional transition and separation costs ($60 million) 4
One of Australia's leading branded dairy and beverages companies with a portfolio of iconic brands holding #1 and #2 category share positions
Large-scale, well-invested national manufacturing capability as well as Australia's largest national cold chain distribution network
LTM Sep-20 revenue of $1.6 billion and pro forma normalised EBITDA² of $56 million (post-AASB 16) excluding synergies
Creates large-scale dairy and foods business with increased branded portfolio. Achieving 2023 branded portfolio target ahead of schedule
Highly complementary Consumer Packaged Goods ("CPG") capability
Significant expansion of domestic distribution network, with a focus on route channel
Strengthens core dairy footprint
Substantial synergy opportunity (estimated at $41 million per annum)
Financially compelling returns for shareholders
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1 Net acquisition price represents gross sale price of $560 million less a $26 million deduction for IT separation costs (net of tax)
2 Represents post-AASB 16 pro forma normalised EBITDA, including Vitasoy JV: 49% of NPAT and a management fee, and 75% of Capitol Chilled Foods (Australia) ("CCFA") earnings
3 Including $41 million of base case synergies. EV/EBITDA multiple on post-AASB 16 basis. EV including $78 million finance lease liabilities
4 Refer to the uses of funds table on page 28 for further details on these costs.
BegaView entire presentation