Bill Ackman Pitches JAH – 2015 Sohn Conference [SLIDES]

Bill Ackman spoke yesterday at the Sohn Investment conference and mostly pitched Martin Franklin’s Jarden Corp (JAH) and also discussed VRX/ZTS etc. We just got the slides from the presentation, which readers can find below.

Bill Ackman – Jarden Corporation: ~45x Return in 14 Years

Since Martin Franklin joined Jarden in 2001, the company has achieved success as a well-managed consolidator of consumer products assets, generating a ~45x total shareholder return to-date.

 

Themes for the next decade: Cannabis, 5G, and EVs

CannabisA lot changes in 10 years, and many changes are expected by the time 2030 rolls around. Some key themes have already emerged, and we expect them to continue to impact investing decisions. At the recent Morningstar conference, several panelists joined a discussion about several major themes for the next decade, including cannabis, 5G and Read More


Platform Specialty Products (PAH)

  • Martin Franklin, Chairman of Jarden, and private investor Nicolas Berggruen co-founded PAH in early 2013
  • In May 2013, PAH raised approximately $900mm(1) in a public offering at $10 per share
  • In October 2013, PAH announced the acquisition of MacDermid Inc., a specialty chemical company, for $1.8bn
  • PAH has subsequently acquired three businesses in the agricultural chemicals industry for approximately $5 billion
  • Today, PAH trades at $27.40 per share, a ~175% increase from its public offering price just two years ago

Nomad Holdings Limited (NOMHF) (“Nomad”)

  • Martin Franklin and Noam Gottesman, co-founder of GLG Partners, co-founded Nomad in early 2014
  • In April 2014, Nomad raised $500mm(1) in a public offering and began trading at a valuation approximating its cash per share
  • In April 2015, Nomad announced the acquisition of Iglo Foods Holdings, the largest frozen foods business in Europe, for approximately €2.6 billion from private equity owner Permira
  • Nomad is financing its acquisition of Iglo with cash on hand from its IPO, debt financing, and a $750mm private placement of equity

Nomad Holdings: Why Has the Stock Gone Up So Much?

Nomad’s share price has increased dramatically since the Iglo Foods acquisition was announced

What are the possible explanations for this 80% price increase?

  • Did Nomad purchase Iglo for materially less than its fair value?
    • Nomad paid ~8.5x 2014 adjusted EBITDA, a reasonable multiple given Iglo Foods’ business quality and modest growth potential
    • The seller was a private equity firm with no urgency to sell
  • Are there substantial synergies with the acquirer’s assets?
    • Prior to the acquisition, Nomad’s only asset was cash

Ira-Sohn-2015-Presentation