Bill Ackman Pitches JAH – 2015 Sohn Conference [SLIDES]

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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.


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


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