Coppersmith Presentation to Alere Inc Stockholders
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Capital Allocation: Poor Stewards of Capital
▪ Since 2007 over $4B spent on acquisitions (net of divestiture) and yet enterprise value up less than $1B
▪ We believe this loss of over $3B in stockholder wealth4 is largely the result of poor capital allocation. Most notably Alere
has taken $1.4B in writedowns to its $1.5B in HM goodwill
$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
$5.3B
2007
$1.34B
10 deals
2008
$655mm
13 deals
2009
$541mm
16 deals
2010
$787mm
17 deals
2011
■EV Acquisitions Net of Divestitures
$494mm
15 deals
$194mm
3 deals
2012
YTD 2013
Stockholder Value Destroyed
$3.18
$6.18
COPPERSMITH
Jun-13
Chairman and CEO Zwanziger's 6/27/13 letter to stoc holders he boasts: "Our actions are consistent with our historical
practice of continually analyzing our business to evaluate prudent divestitures of non-core assets."
▪ In reality, Alere has completed one material divestiture, for $63mm, and one joint venture for $325mm in the past ten
years, compared to spending over $7.9B on more than 100 acquisitions¹6View entire presentation