| June 18, 2020 | | | | |
| | | | Sincerely, | |
| | | |
/s/ Irwin D. Simon
Irwin D. Simon
Executive Chairman of the Board of Directors |
|
| | | | | 6 | | | |
| | | | | 12 | | | |
| | | | | 23 | | | |
| | | | | 24 | | | |
| | | | | 30 | | | |
| | | | | 31 | | | |
| | | | | 34 | | | |
| | | | | 36 | | | |
| | | | | 37 | | | |
| | | | | 38 | | | |
| Appendices | | | |||||
| | | | | A-1 | | | |
| | | | | B-1 | | | |
| | | | | C-1 | | | |
| | | | | D-1 | | | |
| | | | | E-1 | | | |
| | | | | F-1 | | | |
| | | | | G-1 | | |
| | |
Share Ownership in Whole Earth Brands, Inc.
Following the Business Combination |
| |||||||||||||||||||||
| | |
Assuming No Redemptions
|
| |
Assuming High Redemptions(1)
|
| ||||||||||||||||||
| | |
Number of
Shares |
| |
Percentage of
Outstanding Shares |
| |
Number of
Shares |
| |
Percentage of
Outstanding Shares |
| ||||||||||||
Public stockholders
|
| | | | 26,100,000 | | | | | | 62.14% | | | | | | 11,147,355 | | | | | | 38.25% | | |
Sponsor(2) | | | | | 4,500,000 | | | | | | 10.71% | | | | | | 4,500,000 | | | | | | 15.44% | | |
PIPE Investors
|
| | | | 7,500,000 | | | | | | 17.86% | | | | | | 7,500,000 | | | | | | 25.73% | | |
Sellers(4) | | | | | 600,000 | | | | | | 1.43% | | | | | | 2,700,000 | | | | | | 9.26% | | |
Dicalite Management Group, Inc.
|
| | | | 3,300,000 | | | | | | 7.86% | | | | | | 3,300,000 | | | | | | 11.32% | | |
Total(3) | | | | | 42,000,000 | | | | | | 100.0% | | | | | | 29,147,355 | | | | | | 100.0% | | |
| | |
COMBINED
MERISANT/ MAFCO |
| |
ACT II
|
| |
ADJUSTMENTS
DEBIT (CREDIT) |
| |
ADJ. #
|
| |
PRO FORMA
|
| |||||||||||||||
Product revenues
|
| | | $ | 66,000 | | | | | | | | | | | | | | | | | | | | | | | $ | 66,000 | | |
Cost of goods sold
|
| | | | 39,900 | | | | | | | | | | | | | | | | | | | | | | | | 39,900 | | |
GROSS PROFIT
|
| | | | 26,100 | | | | | | | | | | | | | | | | | | | | | | | | 26,100 | | |
Selling, general & administrative expenses
|
| | | | 15,900 | | | | | $ | 575 | | | | | | | | | | | | | | | | | | 16,475 | | |
Restructuring and other non-recurring expenses
|
| | | | 400 | | | | | | | | | | | | | | | | | | | | | | | | 400 | | |
Asset impairment charges
|
| | | | 40,600 | | | | | | | | | | | $ | (40,600) | | | | | | f | | | | | | | | |
Amortization of intangibles
|
| | | | 2,500 | | | | | | | | | | | | (98) | | | | | | a | | | | | | 2,402 | | |
OPERATING INCOME (LOSS)
|
| | | | (33,300) | | | | | | (575) | | | | | | (40,698) | | | | | | | | | | | | 6,823 | | |
Interest expense on bank debt
|
| | | | | | | | | | | | | | | | 3,025 | | | | | | c | | | | | | 3,025 | | |
Interest (income)
|
| | | | | | | | | | (754) | | | | | | 754 | | | | | | b | | | | | | | | |
Other (income) expense, net
|
| | | | (1,700) | | | | | | | | | | | | | | | | | | | | | | | | (1,700) | | |
INCOME (LOSS) BEFORE INCOME TAXES
|
| | | | (31,600) | | | | | | 179 | | | | | | (36,919) | | | | | | | | | | | | 5,498 | | |
(Benefit) provision for income taxes
|
| | | | (3,100) | | | | | | | | | | | | 4,255 | | | | | | d | | | | | | 1,155 | | |
NET INCOME (LOSS)
|
| | | $ | (28,500) | | | | | $ | 179 | | | | | $ | (32,664) | | | | | | | | | | | $ | 4,343 | | |
(Loss) Earnings Per Share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
HISTORICAL
|
| |
PRO FORMA
SCENARIO 1 |
| ||||||
Weighted Average number of shares
|
| | | | 8,997,643(1) | | | | | | 42,000,000 | | |
Basic and diluted
|
| | | $ | (0.06)(2) | | | | | $ | 0.10 | | |
| | |
PRO FORMA
SCENARIO 2 |
| |||
Weighted Average number of shares
|
| | | | 29,147,355 | | |
Basic and diluted
|
| | | $ | 0.15 | | |
| | |
COMBINED
MERISANT/ MAFCO |
| |
ACT II
|
| |
ADJUSTMENTS
DEBIT (CREDIT) |
| |
ADJ. #
|
| |
PRO FORMA
|
| |||||||||||||||
Product revenues
|
| | | $ | 272,200 | | | | | | | | | | | | | | | | | | | | | | | $ | 272,200 | | |
Cost of goods sold
|
| | | | 163,600 | | | | | | | | | | | | | | | | | | | | | | | | 163,600 | | |
GROSS PROFIT
|
| | | | 108,600 | | | | | | | | | | | | | | | | | | | | | | | | 108,600 | | |
Selling, general & administrative expenses
|
| | | | 65,900 | | | | | $ | 351 | | | | | | | | | | | | | | | | | | 66,251 | | |
Restructuring and other non-recurring expenses
|
| | | | 2,200 | | | | | | | | | | | | | | | | | | | | | | | | 2,200 | | |
Amortization of intangibles
|
| | | | 10,700 | | | | | | | | | | | | (1,090) | | | | | | a | | | | | | 9,610 | | |
OPERATING INCOME
|
| | | | 29,800 | | | | | | (351) | | | | | | (1,090) | | | | | | | | | | | | 30,539 | | |
Interest expense on bank debt
|
| | | | | | | | | | | | | | | | 12,100 | | | | | | c | | | | | | 12,100 | | |
Interest income
|
| | | | | | | | | | 4,255 | | | | | | (4,255) | | | | | | b | | | | | | 0 | | |
Unrealized gain on Trust Account investments
|
| | | | | | | | | | 28 | | | | | | (28) | | | | | | b | | | | | | 0 | | |
Foreign exchange (gain)/loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | |
Other expense, net
|
| | | | 1,400 | | | | | | | | | | | | | | | | | | | | | | | | 1,400 | | |
INCOME BEFORE INCOME TAXES
|
| | | | 28,400 | | | | | | 3,932 | | | | | | 15,293 | | | | | | | | | | | | 17,039 | | |
(Benefit) provision for incomes taxes
|
| | | | (2,500) | | | | | | | | | | | | 6,078 | | | | | | d | | | | | | 3,578 | | |
NET INCOME
|
| | | $ | 30,900 | | | | | $ | 3,932 | | | | | $ | 21,371 | | | | | | | | | | | $ | 13,461 | | |
| | |
HISTORICAL
|
| |
PRO FORMA
SCENARIO 1 |
| ||||||
Weighted Average number of shares
|
| | | | 8,410,915(1) | | | | | | 42,000,000 | | |
Basic and diluted
|
| | | $ | (0.02)(2) | | | | | $ | 0.32 | | |
| | |
PRO FORMA
SCENARIO 2 |
| |||
Weighted Average number of shares
|
| | | | 29,147,355 | | |
Basic and diluted
|
| | | $ | 0.46 | | |
| | |
Combined
Merisant/MAFCO |
| |
Act II
|
| |
Scenario 1
Assuming No Redemptions |
| |
Scenario 2
Assuming High Redemptions |
| ||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | |
Adjustments
Assuming No Redemption |
| |
Adj #
|
| | | | | | | |
Adjustments
Assuming Maximum Redemption |
| |
Adj #
|
| | | | | | | ||||||||||||
ASSETS | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Current Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 10,500 | | | | | $ | 583 | | | | | $ | 128,287 | | | | | | a | | | | | $ | 139,370 | | | | | $ | (2,750) | | | | | | a | | | | | $ | 8,333 | | |
Accounts receivable – net
|
| | | | 53,100 | | | | | | | | | | | | | | | | | | | | | | | | 53,100 | | | | | | | | | | | | | | | | | | 53,100 | | |
Inventories
|
| | | | 116,400 | | | | | | | | | | | | | | | | | | | | | | | | 116,400 | | | | | | | | | | | | | | | | | | 116,400 | | |
Prepaid expenses and other current assets
|
| | | | 6,800 | | | | | | 104 | | | | | | | | | | | | | | | | | | 6,904 | | | | | | | | | | | | | | | | | | 6,904 | | |
TOTAL CURRENT ASSETS
|
| | | | 186,800 | | | | | | 687 | | | | | | 128,287 | | | | | | | | | | | | 315,774 | | | | | | (2,750) | | | | | | | | | | | | 184,737 | | |
Marketable securities held in Trust Account
|
| | | | | | | | | | 305,037 | | | | | | (305,037) | | | | | | a | | | | | | 0 | | | | | | (305,037) | | | | | | a | | | | | | 0 | | |
Property, plant and equipment – net
|
| | | | 20,200 | | | | | | | | | | | | | | | | | | | | | | | | 20,200 | | | | | | | | | | | | | | | | | | 20,200 | | |
Right of use asset
|
| | | | | | | | | | 267 | | | | | | | | | | | | | | | | | | 267 | | | | | | | | | | | | | | | | | | 267 | | |
Goodwill
|
| | | | 113,100 | | | | | | | | | | | | (62,600) | | | | | | c | | | | | | 50,500 | | | | | | (62,600) | | | | | | c | | | | | | 50,500 | | |
Other intangible assets – net
|
| | | | 225,900 | | | | | | | | | | | | 2,800 | | | | | | b | | | | | | 228,700 | | | | | | 2,800 | | | | | | b | | | | | | 228,700 | | |
Other assets
|
| | | | 3,700 | | | | | | 38 | | | | | | | | | | | | | | | | | | 3,738 | | | | | | | | | | | | | | | | | | 3,738 | | |
TOTAL ASSETS
|
| | | $ | 549,700 | | | | | $ | 306,029 | | | | | $ | (236,550) | | | | | | | | | | | $ | 619,179 | | | | | $ | (367,587) | | | | | | | | | | | $ | 488,142 | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 27,200 | | | | | $ | 195 | | | | | | | | | | | | | | | | | $ | 27,395 | | | | | | | | | | | | | | | | | $ | 27,395 | | |
Operating lease liability
|
| | | | | | | | | | 217 | | | | | | | | | | | | | | | | | | 217 | | | | | | | | | | | | | | | | | | 217 | | |
Accrued expenses and other current liabilities
|
| | | | 21,600 | | | | | | | | | | | | | | | | | | | | | | | | 21,600 | | | | | | | | | | | | | | | | | | 21,600 | | |
TOTAL CURRENT LIABILITIES
|
| | | | 48,800 | | | | | | 412 | | | | | | | | | | | | | | | | | | 49,212 | | | | | | | | | | | | | | | | | | 49,212 | | |
Bank debt
|
| | | | | | | | | | | | | | | $ | 180,000 | | | | | | a | | | | | | 180,000 | | | | | $ | 180,000 | | | | | | a | | | | | | 180,000 | | |
Operating lease liability, net of current portion
|
| | | | | | | | | | 65 | | | | | | | | | | | | | | | | | | 65 | | | | | | | | | | | | | | | | | | 65 | | |
Deferred underwriting fee payable
|
| | | | | | | | | | 11,280 | | | | | | (11,280) | | | | | | e | | | | | | 0 | | | | | | (11,280) | | | | | | e | | | | | | 0 | | |
Due to related party
|
| | | | 6,900 | | | | | | | | | | | | (6,900) | | | | | | j | | | | | | 0 | | | | | | (6,900) | | | | | | j | | | | | | 0 | | |
Deferred tax liabilities, net
|
| | | | 30,900 | | | | | | | | | | | | | | | | | | | | | | | | 30,900 | | | | | | | | | | | | | | | | | | 30,900 | | |
Other liabilities
|
| | | | 18,100 | | | | | | | | | | | | (5,900) | | | | | | j | | | | | | 12,200 | | | | | | (5,900) | | | | | | j | | | | | | 12,200 | | |
TOTAL LIABILITIES
|
| | | | 104,700 | | | | | | 11,757 | | | | | | 155,920 | | | | | | | | | | | | 272,377 | | | | | | 155,920 | | | | | | | | | | | | 272,377 | | |
Ordinary shares subject to redemption
|
| | | | | | | | | | 289,272 | | | | | | (289,272) | | | | | | f | | | | | | | | | | | | (289,272) | | | | | | | | | | | | 0 | | |
Net parent investment
|
| | | | 445,000 | | | | | | | | | | | | (445,000) | | | | | | g | | | | | | | | | | | | (445,500) | | | | | | | | | | | | 0 | | |
Class A ordinary Shares, $0.0001 par
value; 200,000,000 sharesauthorized; 1,550,484 shares issued and outstanding (excluding 28,449,516 shares subject to possible redemption) historically and 42,000,000 shares and 29,147,355 shares proforma |
| | | | | | | | | | | | | | | | 1 | | | | | | | | | | | | 1 | | | | | | | | | | | | | | | | | | 0 | | |
Class B ordinary shares, $0.0001 par
value; 200,000,000 shares authorized; 7,500,000 shares issued and outstanding historically and none pro forma |
| | | | | | | | | | 1 | | | | | | (1) | | | | | | | | | | | | 0 | | | | | | (1) | | | | | | | | | | | | 0 | | |
Additional capital
|
| | | | | | | | | | 888 | | | | | | 353,022 | | | | | | i | | | | | | 353,910 | | | | | | 221,986 | | | | | | | | | | | | 222,874 | | |
Retained earnings
|
| | | | | | | | | | 4,111 | | | | | | (11,220) | | | | | | d | | | | | | (7,109) | | | | | | (11,220) | | | | | | | | | | | | (7,109) | | |
TOTAL SHAREHOLDERS’ EQUITY
|
| | | | 445,000 | | | | | | 5,000 | | | | | | (103,198) | | | | | | | | | | | | 346,802 | | | | | | (234,235) | | | | | | | | | | | | 215,765 | | |
TOTAL LIABILITIES AND EQUITY
|
| | | $ | 549,700 | | | | | $ | 306,029 | | | | | $ | (236,550) | | | | | | | | | | | $ | 619,179 | | | | | $ | (367,587) | | | | | | | | | | | $ | 488,142 | | |
|
| | |
Scenario 1
|
| |
Scenario 2
|
| ||||||
Cash paid to selling shareholder
|
| | | $ | 387,500 | | | | | $ | 366,500 | | |
Equity consideration paid to selling shareholder
|
| | | | 0 | | | | | | 21,000 | | |
| | | | $ | 387,500 | | | | | $ | 387,500 | | |
Accounts receivable
|
| | | $ | 53,100 | | | | | | 53,100 | | |
Inventories
|
| | | | 116,400 | | | | | | 116,400 | | |
Prepaids expenses and other current assets
|
| | | | 6,800 | | | | | | 6,800 | | |
Property, plant and equipment
|
| | | | 20,200 | | | | | | 20,200 | | |
Other assets
|
| | | | 3,700 | | | | | | 3,700 | | |
Intangible assets
|
| | | | 228,700 | | | | | | 228,700 | | |
Goodwill
|
| | | | 50,500 | | | | | | 50,500 | | |
Accounts payable
|
| | | | (27,200) | | | | | | (27,200) | | |
Accrued expenses and other current liabilities
|
| | | | (21,600) | | | | | | (21,600) | | |
Deferred tax liabilities
|
| | | | (30,900) | | | | | | (30,900) | | |
Other liabilities
|
| | | | (12,200) | | | | | | (12,200) | | |
| | | | $ | 387,500 | | | | | $ | 387,500 | | |
| | |
Preliminary
Fair Value |
| |
Estimated
Useful Life in Years |
| |
Amortization
Expense for the Year Ended December 31, 2019 |
| |
Amortization
Expense for the Three Months Ended March 31, 2020 |
| ||||||||||||
Trademarks and trade names
|
| | | $ | 116,700 | | | | | | 25 | | | | | $ | 4,668 | | | | | $ | 1,167 | | |
Customer relationships
|
| | | | 93,900 | | | | | | 19 | | | | | | 4,942 | | | | | | 1,235 | | |
Product formulations
|
| | | | 18,100 | | | | | | Indefinite | | | | | | — | | | | | | — | | |
Total
|
| | | | 228,700 | | | | | | | | | | | | 9,610 | | | | | | 2,402 | | |
Less: Merisant/Mafco historical intangibles and amortization expense
|
| | | | 225,900 | | | | | | | | | | | | 10,700 | | | | | | 2,500 | | |
Pro forma adjustments
|
| | | $ | 2,800 | | | | | | | | | | | $ | (1,090) | | | | | $ | (98) | | |
| | |
SCENARIO 1
|
| |
SCENARIO 2
|
| ||||||||||||||||||
| | |
NO
REDEMPTIONS |
| |
%
|
| |
MAX
REDEMPTIONS |
| |
%
|
| ||||||||||||
Shares held by Act II Sponsor
|
| | | | 4,500,000 | | | | | | 10.71% | | | | | | 4,500,000 | | | | | | 15.44% | | |
Shares held by Seller
|
| | | | 600,000 | | | | | | 1.43% | | | | | | 2,700,000 | | | | | | 9.26% | | |
Shares held by PIPE investors
|
| | | | 7,500,000 | | | | | | 17.86% | | | | | | 7,500,000 | | | | | | 25.73% | | |
Shares held by Dicalite Management Group, Inc.
|
| | | | 3,300,000 | | | | | | 7.86% | | | | | | 3,300,000 | | | | | | 11.32% | | |
Shares held by public
|
| | | | 26,100,000 | | | | | | 62.14% | | | | | | 26,100,000 | | | | | | 38.25% | | |
Maximum redemptions
|
| | | | | | | | | | | | | | | | (14,952,645) | | | | | | | | |
Total common shares o/s
|
| | | | 42,000,000 | | | | | | 100.00% | | | | | | 29,147,355 | | | | | | 100.00% | | |
| | |
Scenario 1
|
| |
Scenario 2
|
| ||||||
Act II cash previously in trust(1)
|
| | | $ | 305,037,000 | | | | | $ | 305,037,000 | | |
Proceeds from PIPE(2)
|
| | | | 75,000,000 | | | | | | 75,000,000 | | |
Proceeds from new bank debt(3)
|
| | | | 180,000,000 | | | | | | 180,000,000 | | |
Shareholder redemptions(4)
|
| | | | | | | | | | (152,037,000) | | |
Cash retained by seller
|
| | | | (10,500,000) | | | | | | (10,500,000) | | |
Repurchase of warrants(5)
|
| | | | (11,250,000) | | | | | | (11,250,000) | | |
Cash consideration(6)
|
| | | | (387,500,000) | | | | | | (366,500,000) | | |
Payment of transaction costs(7)
|
| | | | (22,500,000) | | | | | | (22,500,000) | | |
| | | | $ | 128,287,000 | | | | | $ | (2,750,000) | | |
| | |
Scenario 1
|
| |
Scenario 2
|
| ||||||
Conversion of redeemable shares held by Act II public shareholders to
APIC net of par value amount |
| | | $ | 289,272,946 | | | | | $ | 137,237,441 | | |
Increase in APIC attributable to stock issued to PIPE investors
|
| | | | 74,999,250 | | | | | | 74,999,250 | | |
Decrease in APIC as the result of the repurchase of warrants
|
| | | | (11,250,000) | | | | | | (11,250,000) | | |
Increase in APIC attributable to stock issued to seller
|
| | | | | | | | | | 20,999,790 | | |
Cancellation of Act II Sponsor shares
|
| | | | 300 | | | | | | 300 | | |
| | | | $ | 353,022,496 | | | | | $ | 221,986,781 | | |
| | |
2019A-2021E Revenue
CAGR |
| |
2019A-2021E EBITDA
CAGR |
| |
2020E EBITDA
Margin |
| |
2020E FCF
Margin |
| ||||||||||||
Food and Beverage Consumer Packaged Goods
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Bellring Brands
|
| | | | 12.1% | | | | | | 4.8% | | | | | | 19.6% | | | | | | 19.3% | | |
Simply Good Foods
|
| | | | 4.7% | | | | | | 11.6% | | | | | | 18.2% | | | | | | 17.8% | | |
B&G Foods
|
| | | | 2.7% | | | | | | 3.2% | | | | | | 18.1% | | | | | | 15.8% | | |
Post Holdings
|
| | | | 2.1% | | | | | | 5.3% | | | | | | 20.4% | | | | | | 16.4% | | |
McCormick & Company
|
| | | | 1.3% | | | | | | 2.0% | | | | | | 21.1% | | | | | | 17.6% | | |
Smuckers
|
| | | | 0.9% | | | | | | 1.4% | | | | | | 22.0% | | | | | | 18.2% | | |
Median | | | | | 2.4% | | | | | | 4.0% | | | | | | 20.0% | | | | | | 17.7% | | |
Utz Brands
|
| | | | 3.5% | | | | | | 11.5% | | | | | | 13.6% | | | | | | 10.7% | | |
Ingredients | | | | | | | | | | | | | | | | | | | | | | | | | |
Symrise
|
| | | | 7.2% | | | | | | 9.9% | | | | | | 21.0% | | | | | | 15.8% | | |
Darling Ingredients
|
| | | | 3.0% | | | | | | 20.4% | | | | | | 15.0% | | | | | | 7.6% | | |
Kerry Group
|
| | | | 2.2% | | | | | | 4.1% | | | | | | 14.5% | | | | | | 10.3% | | |
International Flavors & Fragrances
|
| | | | 1.6% | | | | | | 2.6% | | | | | | 21.3% | | | | | | 17.2% | | |
Ingredion
|
| | | | -0.9% | | | | | | 2.4% | | | | | | 14.9% | | | | | | 9.9% | | |
Tate & Lyle
|
| | | | -3.6% | | | | | | -4.5% | | | | | | 16.4% | | | | | | 11.1% | | |
Median | | | | | 1.9% | | | | | | 3.4% | | | | | | 15.7% | | | | | | 10.7% | | |
|
| | |
TEV / 2020E
EBITDA |
| |
TEV / 2020E
FCF |
| ||||||
Food and Beverage Consumer Packaged Goods | | | | | | | | | | | | | |
McCormick & Company
|
| | | | 23.6x | | | | | | 28.2x | | |
Bellring Brands
|
| | | | 15.6x | | | | | | 15.9x | | |
Simply Good Foods
|
| | | | 13.2x | | | | | | 13.5x | | |
Post Holdings
|
| | | | 10.6x | | | | | | 13.2x | | |
Smuckers
|
| | | | 10.0x | | | | | | 12.1x | | |
B&G Foods
|
| | | | 9.9x | | | | | | 11.4x | | |
Median | | | | | 11.9x | | | | | | 13.4x | | |
Utz Brands
|
| | | | 17.0x | | | | | | 20.0x | | |
Ingredients | | | | | | | | | | | | | |
Kerry Group
|
| | | | 20.6x | | | | | | 29.2x | | |
Symrise
|
| | | | 18.9x | | | | | | 25.1x | | |
International Flavors & Fragrances
|
| | | | 16.2x | | | | | | 20.0x | | |
Darling Ingredients
|
| | | | 10.8x | | | | | | 21.3x | | |
Ingredion
|
| | | | 8.3x | | | | | | 12.5x | | |
Tate & Lyle
|
| | | | 7.8x | | | | | | 11.6x | | |
Median | | | | | 13.5x | | | | | | 20.6x | | |
Sources of Funds
(in millions) |
| | | | | | | |
Uses of Funds
(in millions) |
| | | | | | |
SPAC Cash-in-Trust(1)
|
| | | $ | 303 | | | |
M&F Cash Consideration / Debt Payoff
|
| | | $ | 388 | | |
Private Placement(2)
|
| | | | 75 | | | |
Warrant Agreement Amendment Cost
|
| | | | 11 | | |
New Net Debt(3)
|
| | | | 49 | | | |
Transaction Fees and Expenses
|
| | | | 28 | | |
Total Sources
|
| | | $ | 426 | | | |
Total Uses
|
| | | $ | 426 | | |
| | |
Beneficial Ownership Upon the Completion
of the Business Combination and Private Placements |
| |||||||||||||||||||||
| | |
Assuming No Redemptions
|
| |
Assuming High Redemptions
|
| ||||||||||||||||||
Beneficial Owner
|
| |
Number of
Shares |
| |
Percentage of
Outstanding Shares |
| |
Number of
Shares |
| |
Percentage of
Outstanding Shares |
| ||||||||||||
5% Shareholders | | | | | | | | | | | | | | | | | | | | | | | | | |
Sellers(9) | | | | | 600,000 | | | | | | 1.43% | | | | | | 2,700,000 | | | | | | 9.26% | | |
Sponsor(2) | | | | | 4,500,000 | | | | | | 10.71% | | | | | | 4,500,000 | | | | | | 15.44% | | |
Dicalite Management Group, Inc.(8)
|
| | | | 3,300,000 | | | | | | 7.86% | | | | | | 3,300,000 | | | | | | 11.32% | | |
| | |
Beneficial Ownership Upon the Completion
of the Business Combination and Private Placements |
| |||||||||||||||||||||
| | |
Assuming No Redemptions
|
| |
Assuming High Redemptions
|
| ||||||||||||||||||
Beneficial Owner
|
| |
Number of
Shares |
| |
Percentage of
Outstanding Shares |
| |
Number of
Shares |
| |
Percentage of
Outstanding Shares |
| ||||||||||||
MMCAP International Inc. SPC(3)
|
| | | | 2,800,000 | | | | | | 6.67% | | | | | | 2,800,000 | | | | | | 9.61% | | |
Linden Capital L.P.(4)
|
| | | | 2,435,299 | | | | | | 5.80% | | | | | | 2,435,299 | | | | | | 8.36% | | |
Polar Asset Management Partners Inc.(5)
|
| | | | 2,350,000 | | | | | | 5.60% | | | | | | 2,350,000 | | | | | | 8.06% | | |
UBS O’Connor LLC(6)
|
| | | | 2,733,444 | | | | | | 6.51% | | | | | | 2,733,444 | | | | | | 9.38% | | |
Executive Officers, Directors, and Director Nominees | | | | | | | | | | | | | | | | | | | | | | | | | |
Irwin D. Simon(7)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Albert Manzone
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Lucas Bailey
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Andrew Rusie
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Denise Faltischek
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Steven M. Cohen
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
John M. McMillin
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Anuraag Agarwal
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Ira J. Lamel(7)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All executive officers, directors, and director nominees
as a group (nine individuals) |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Trading Date
|
| |
Units
(ACTTU) |
| |
Act II Class A
Shares (ACTT) |
| |
Warrants
(ACTTW) |
| |||||||||
December 19, 2019
|
| | | $ | 10.50 | | | | | $ | 9.98 | | | | | $ | 0.96 | | |
June 12, 2020
|
| | | $ | 10.55 | | | | | $ | 11.22 | | | | | $ | 1.66 | | |
| | | | | | | | |
Pro Forma Combined
|
| |||||||||
| | |
Act II
|
| |
No
Redemptions |
| |
High
Redemptions |
| |||||||||
Book Value per Share as of March 31, 2020
|
| | | $ | 7.85 | | | | | $ | 8.26 | | | | | $ | 7.40 | | |
Net Income per Common Share – Basic and Diluted
|
| | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2019
|
| | | $ | (0.02) | | | | | $ | 0.30 | | | | | $ | 0.36 | | |
For the three months ended March 31, 2020
|
| | | $ | (0.06) | | | | | $ | 0.32 | | | | | $ | 0.46 | | |
| FLAVORS HOLDINGS INC. | | | | ||||||||||
| By: | | | /s/ Edward Mammone | | | | |||||||
| | | | Name: | | | Edward Mammone | | | | ||||
| | | | Title: | | | Senior Vice President, Controller | | | | ||||
| MW HOLDINGS I LLC | | | | ||||||||||
| By: | | | Flavors Holdings Inc., its sole member | | | | |||||||
| By: | | | /s/ Edward Mammone | | | | |||||||
| | | | Name: | | | Edward Mammone | | | | ||||
| | | | Title: | | | Senior Vice President, Controller | | | | ||||
| MW HOLDINGS III LLC | | | | ||||||||||
| By: | | | Flavors Holdings Inc., its sole member | | | | |||||||
| By: | | | /s/ Edward Mammone | | | | |||||||
| | | | Name: | | | Edward Mammone | | | | ||||
| | | | Title: | | | Senior Vice President, Controller | | | | ||||
| MAFCO FOREIGN HOLDINGS, INC. | | | | | | | | ||||||
| By: | | | /s/ Marji Gordon-Brown | | | | |||||||
| | | | Name: | | | Marji Gordon-Brown | | | | ||||
| | | | Title: | | | Associate Tax Counsel | | | |
| ACT II GLOBAL ACQUISITION CORP. | | | ||||||||
| By: | | | /s/ Ira J. Lamel | | | |||||
| | | | Name: | | | Ira J. Lamel | | | ||
| | | | Title: | | | Chief Financial Officer | | | ||
| PROJECT TASTE INTERMEDIATE LLC | | | ||||||||
| By: | | | Act II Global Acquisition Corp., its sole member | | | |||||
| By: | | | /s/ Ira J. Lamel | | | | | |||
| | | | Name: | | | Ira J. Lamel | | | ||
| | | | Title: | | | Chief Financial Officer | | |
| ACT II GLOBAL LLC | | | ||||||||
| By: | | | /s/ John Carroll | | | |||||
| | | | Name: | | | John Carroll | | | ||
| | | | Title: | | | Managing Member | | | ||
| ACT II GLOBAL ACQUISITION CORP. | | | ||||||||
| By: | | | /s/ Ira J. Lamel | | | | | |||
| | | | Name: | | | Ira J. Lamel | | | ||
| | | | Title: | | | Chief Financial Officer | | |
| FLAVORS HOLDINGS INC. | | | | ||||||||||
| By: | | | /s/ Edward Mammone | | | | |||||||
| | | | Name: | | | Edward Mammone | | | | ||||
| | | | Title: | | | Senior Vice President, Controller | | | | ||||
| MW HOLDINGS I LLC | | | | ||||||||||
| By: | | | Flavors Holdings Inc., its sole member | | | | |||||||
| By: | | | /s/ Edward Mammone | | | | |||||||
| | | | Name: | | | Edward Mammone | | | | ||||
| | | | Title: | | | Senior Vice President, Controller | | | | ||||
| MW HOLDINGS III LLC | | | | ||||||||||
| By: | | | Flavors Holdings Inc., its sole member | | | | |||||||
| By: | | | /s/ Edward Mammone | | | | |||||||
| | | | Name: | | | Edward Mammone | | | | ||||
| | | | Title: | | | Senior Vice President, Controller | | | | ||||
| MAFCO FOREIGN HOLDINGS, INC. | | | | | | | | ||||||
| By: | | | /s/ Marji Gordon-Brown | | | | |||||||
| | | | Name: | | | Marji Gordon-Brown | | | | ||||
| | | | Title: | | | Associate Tax Counsel | | | |
| | |
March 31,
2020 |
| |
December 31,
2019 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 583,196 | | | | | $ | 1,005,831 | | |
Prepaid expenses
|
| | | | 103,668 | | | | | | 65,714 | | |
Total Current Assets
|
| | | | 686,864 | | | | | | 1,071,545 | | |
Security deposit
|
| | | | 38,000 | | | | | | 38,000 | | |
Right of use asset
|
| | | | 266,640 | | | | | | — | | |
Marketable securities held in Trust Account
|
| | | | 305,037,224 | | | | | | 304,283,025 | | |
Total Assets
|
| | | $ | 306,028,728 | | | | | $ | 305,392,570 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 195,161 | | | | | $ | 19,781 | | |
Operating lease liability
|
| | | | 217,013 | | | | | | — | | |
Total Current Liabilities
|
| | | | 412,174 | | | | | | 19,781 | | |
Operating lease liability, net of current portion
|
| | | | 64,505 | | | | | | — | | |
Deferred underwriting fees payable
|
| | | | 11,280,000 | | | | | | 11,280,000 | | |
Total Liabilities
|
| | | | 11,756,679 | | | | | | 11,299,781 | | |
Commitments (Note 7) | | | | | | | | | | | | | |
Ordinary shares subject to possible redemption, 28,449,516 and 28,502,357
shares at redemption value as of March 31, 2020 and December 31, 2019, respectively |
| | | | 289,272,046 | | | | | | 289,092,780 | | |
Shareholders’ Equity | | | | | | | | | | | | | |
Preference shares, $0.0001 par value; 2,000,000 shares authorized, none issued and outstanding
|
| | | | — | | | | | | — | | |
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 1,550,484 and 1,497,643 shares issued and outstanding (excluding 28,449,516 and 28,502,357 shares subject to possible redemption) as of March 31, 2020 and December 31, 2019,
respectively |
| | | | 155 | | | | | | 150 | | |
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized;
7,500,000 shares issued and outstanding as of March 31, 2020 and December 31, 2019 |
| | | | 750 | | | | | | 750 | | |
Additional paid in capital
|
| | | | 887,694 | | | | | | 1,066,965 | | |
Retained earnings
|
| | | | 4,111,404 | | | | | | 3,932,144 | | |
Total Shareholders’ Equity
|
| | | | 5,000,003 | | | | | | 5,000,009 | | |
Total Liabilities and Shareholders’ Equity
|
| | | $ | 306,028,728 | | | | | $ | 305,392,570 | | |
|
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Operating costs
|
| | | $ | 574,939 | | | | | $ | 15,517 | | |
Loss from operations
|
| | | | (574,939) | | | | | | (15,517) | | |
Other income: | | | | | | | | | | | | | |
Interest income
|
| | | | 754,199 | | | | | | — | | |
Net Income (Loss)
|
| | | $ | 179,260 | | | | | $ | (15,517) | | |
Weighted average shares outstanding, basic and diluted(1)
|
| | | | 8,997,643 | | | | | | 6,525,000 | | |
Basic and diluted net loss per ordinary share(2)
|
| | | $ | (0.06) | | | | | $ | (0.00) | | |
| | |
Class A
Ordinary Shares |
| |
Class B
Ordinary Shares |
| |
Additional
Paid in Capital |
| |
Retained
Earnings |
| |
Total
Shareholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2020
|
| | | | 1,497,643 | | | | | $ | 150 | | | | | | 7,500,000 | | | | | $ | 750 | | | | | $ | 1,066,965 | | | | | $ | 3,932,144 | | | | | $ | 5,000,009 | | |
Change in value of ordinary shares
subject to possible redemption |
| | | | 52,841 | | | | | | 5 | | | | | | — | | | | | | — | | | | | | (179,271) | | | | | | — | | | | | | (179,266) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 179,260 | | | | | | 179,260 | | |
Balance – March 31, 2020
|
| | | | 1,550,484 | | | | | $ | 155 | | | | | | 7,500,000 | | | | | $ | 750 | | | | | $ | 887,694 | | | | | $ | 4,111,404 | | | | | $ | 5,000,003 | | |
| | |
Ordinary Shares
|
| |
Additional
Paid in Capital |
| |
Accumulated
Deficit |
| |
Total
Shareholder’s Equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – January 1, 2019
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B ordinary shares to Sponsor(1)
|
| | | | 7,503,750 | | | | | | 750 | | | | | | 24,250 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (15,517) | | | | | | (15,517) | | |
Balance – March 31, 2019
|
| | | | 7,503,750 | | | | | $ | 750 | | | | | $ | 24,250 | | | | | $ | (15,517) | | | | | $ | 9,483 | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 179,260 | | | | | $ | (15,517) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (754,199) | | | | | | — | | |
Amortization of right of use asset
|
| | | | 33,878 | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | (56,954) | | | | | | — | | |
Accrued expenses
|
| | | | 175,380 | | | | | | — | | |
Net cash used in operating activities
|
| | | | (422,635) | | | | | | (15,517) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of Class B ordinary shares to Sponsor
|
| | | | — | | | | | | 25,000 | | |
Proceeds from promissory note – related party
|
| | | | — | | | | | | 150,803 | | |
Payment of offering costs
|
| | | | — | | | | | | (127,277) | | |
Net cash provided by financing activities
|
| | | | — | | | | |
|
48,526
|
| |
Net Change in Cash
|
| | | | (422,635) | | | | | | 33,009 | | |
Cash – Beginning
|
| | | | 1,005,831 | | | | | | — | | |
Cash – Ending | | | | $ | 583,196 | | | | | $ | 33,009 | | |
Non-Cash Investing and Financing Activities: | | | | | | | | | | | | | |
Change in value of ordinary shares subject to possible redemption
|
| | | $ | 179,266 | | | | | $ | — | | |
Right of use asset acquired through lease liability
|
| | | $ | 297,723 | | | | | $ | — | | |
|
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net income (loss)
|
| | | $ | 179,260 | | | | | $ | (15,517) | | |
Less: Income attributable to ordinary shares subject to possible redemption
|
| | | | (715,207) | | | | | | — | | |
Adjusted net loss
|
| | | $ | (535,947) | | | | | $ | (15,517) | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 8,997,643 | | | | | | 6,525,000 | | |
Basic and diluted net loss per ordinary share
|
| | | $ | (0.06) | | | | | $ | (0.00) | | |
|
Operating lease cost
|
| | | $ | 33,878 | | |
|
Total Rent Expense
|
| | | $ | 33,878 | | |
Year ending December 31,
|
| | | | | | |
2020 (remaining)
|
| | | $ | 171,000 | | |
2021
|
| | | | 122,234 | | |
Total future minimum lease payments
|
| | | $ | 293,234 | | |
Less: imputed interest
|
| | | | (11,716) | | |
Present value of operating lease liabilities
|
| | | $ | 281,518 | | |
|
Other Information
|
| | | |
Weighted-average remaining lease term for operating leases
|
| |
15.5 months
|
|
Weighted-average discount rate for operating leases
|
| |
6.0%
|
|
Year ending December 31,
|
| | | | | | |
2020 (remaining)
|
| | | $ | 40,000 | | |
2021
|
| | | | 32,500 | | |
Total future minimum lease receivables
|
| | | $ | 72,500 | | |
Description
|
| |
Level
|
| |
March 31,
2020 |
| |
December 31,
2019 |
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account
|
| | | | 1 | | | | | $ | 305,037,224 | | | | | $ | 304,283,025 | | |
| Combined Financial Statements | | | | | | | |
| | | | | E-3 | | | |
| | | | | E-4 | | | |
| | | | | E-5 | | | |
| | | | | E-6 | | | |
| | | | | E-7 | | | |
| | | | | E-8 | | |
| | |
March 31,
2020 |
| |
December 31,
2019 |
| ||||||
| | |
(Unaudited)
|
| |||||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 10.5 | | | | | $ | 10.4 | | |
Accounts receivable (net of allowances of $1.9 and $2.8, respectively)
|
| | | | 53.1 | | | | | | 55.0 | | |
Inventories
|
| | | | 116.4 | | | | | | 121.1 | | |
Prepaid expenses and other current assets
|
| | | | 6.8 | | | | | | 7.3 | | |
Total current assets
|
| | | | 186.8 | | | | | | 193.8 | | |
Property, plant and equipment, net
|
| | | | 20.2 | | | | | | 20.4 | | |
Goodwill
|
| | | | 113.1 | | | | | | 130.8 | | |
Other intangible assets, net
|
| | | | 225.9 | | | | | | 251.3 | | |
Other assets
|
| | | | 3.7 | | | | | | 3.5 | | |
Total assets
|
| | | $ | 549.7 | | | | | $ | 599.8 | | |
Liabilities and net parent investment | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 27.2 | | | | | $ | 26.3 | | |
Accrued expenses and other current liabilities
|
| | | | 21.6 | | | | | | 28.1 | | |
Total current liabilities
|
| | | | 48.8 | | | | | | 54.4 | | |
Due to related party
|
| | | | 6.9 | | | | | | 8.4 | | |
Deferred tax liabilities, net
|
| | | | 30.9 | | | | | | 31.5 | | |
Other liabilities
|
| | | | 18.1 | | | | | | 17.8 | | |
Net parent investment
|
| | | | 445.0 | | | | | | 487.7 | | |
Total liabilities and net parent investment
|
| | | $ | 549.7 | | | | | $ | 599.8 | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Product revenues, net
|
| | | $ | 66.0 | | | | | $ | 70.3 | | |
Cost of goods sold
|
| | | | 39.9 | | | | | | 40.3 | | |
Gross profit
|
| | | | 26.1 | | | | | | 30.0 | | |
Selling, general and administrative expenses
|
| | | | 15.9 | | | | | | 15.7 | | |
Amortization of intangible assets
|
| | | | 2.5 | | | | | | 2.7 | | |
Asset impairment charges
|
| | | | 40.6 | | | | | | - | | |
Restructuring and other non-recurring expenses
|
| | | | 0.4 | | | | | | 1.4 | | |
Operating (loss) income
|
| | | | (33.3) | | | | | | 10.2 | | |
Other (income), net
|
| | | | (1.7) | | | | | | (1.6) | | |
(Loss) income before income taxes
|
| | | | (31.6) | | | | | | 11.8 | | |
(Benefit) provision for income taxes
|
| | | | (3.1) | | | | | | 2.6 | | |
Net (loss) income
|
| | | $ | (28.5) | | | | | $ | 9.2 | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net (loss) income
|
| | | $ | (28.5) | | | | | $ | 9.2 | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | (1.8) | | | | | | (2.4) | | |
Total other comprehensive loss, net of tax
|
| | | | (1.8) | | | | | | (2.4) | | |
Comprehensive (loss) income
|
| | | $ | (30.3) | | | | | $ | 6.8 | | |
| | |
Net Parent
Investment |
| |||
Balance, January 1, 2019
|
| | | $ | 484.5 | | |
Funding to Parent, net
|
| | | | (12.2) | | |
Net income
|
| | | | 9.2 | | |
Other comprehensive loss, net of tax
|
| | | | (2.4) | | |
Balance, March 31, 2019
|
| | | $ | 479.1 | | |
|
| | |
Net Parent
Investment |
| |||
Balance, January 1, 2020
|
| | | $ | 487.7 | | |
Funding to Parent, net
|
| | | | (12.4) | | |
Net loss
|
| | | | (28.5) | | |
Other comprehensive loss, net of tax
|
| | | | (1.8) | | |
Balance, March 31, 2020
|
| | | $ | 445.0 | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Operating activities | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (28.5) | | | | | $ | 9.2 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation
|
| | | | 0.7 | | | | | | 0.8 | | |
Amortization of intangible assets
|
| | | | 2.5 | | | | | | 2.7 | | |
Deferred income taxes
|
| | | | (0.6) | | | | | | 0.4 | | |
Asset impairment charges
|
| | | | 40.6 | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | 0.3 | | | | | | (6.6) | | |
Inventories
|
| | | | 4.0 | | | | | | 1.7 | | |
Pension
|
| | | | — | | | | | | 0.2 | | |
Prepaid expenses and other current assets
|
| | | | (1.0) | | | | | | 0.2 | | |
Accounts payable, accrued liabilities and income taxes
|
| | | | (4.5) | | | | | | 3.0 | | |
Other, net
|
| | | | 1.1 | | | | | | (1.1) | | |
Net cash provided by operating activities
|
| | | | 14.6 | | | | | | 10.5 | | |
Investing activities | | | | | | | | | | | | | |
Capital expenditures
|
| | | | (0.9) | | | | | | (0.4) | | |
Net cash used in investing activities
|
| | | | (0.9) | | | | | | (0.4) | | |
Financing activities | | | | | | | | | | | | | |
Borrowings under revolver
|
| | | | 3.5 | | | | | | — | | |
Repayments of revolver
|
| | | | (5.0) | | | | | | — | | |
Funding to Parent, net
|
| | | | (12.4) | | | | | | (12.2) | | |
Net cash used in financing activities
|
| | | | (13.9) | | | | | | (12.2) | | |
Effect of exchange rate changes on cash and cash equivalents
|
| | | | 0.3 | | | | | | 0.1 | | |
Net change in cash and cash equivalents
|
| | | | 0.1 | | | | | | (2.0) | | |
Cash and cash equivalents, beginning of period
|
| | | | 10.4 | | | | | | 7.2 | | |
Cash and cash equivalents, end of period
|
| | | $ | 10.5 | | | | | $ | 5.2 | | |
Supplemental disclosure of cash paid | | | | | | | | | | | | | |
Taxes paid, net of refunds
|
| | | $ | 1.1 | | | | | $ | 1.3 | | |
| | |
March 31,
2020 |
| |
December 31,
2019 |
| ||||||
| | |
(Unaudited)
|
| |||||||||
Raw materials and supplies
|
| | | $ | 84.0 | | | | | $ | 89.6 | | |
Work in process
|
| | | | 0.5 | | | | | | 0.4 | | |
Finished goods
|
| | | | 31.9 | | | | | | 31.1 | | |
| | | | $ | 116.4 | | | | | $ | 121.1 | | |
| | |
March 31,
2020 |
| |
December 31,
2019 |
| ||||||
| | |
(Unaudited)
|
| |||||||||
Machinery, equipment and other
|
| | | $ | 48.3 | | | | | $ | 50.1 | | |
Land, land rights, buildings and building improvements
|
| | | | 26.8 | | | | | | 25.1 | | |
Construction in progress
|
| | | | 0.3 | | | | | | 0.6 | | |
| | | | | 75.4 | | | | | | 75.8 | | |
Accumulated depreciation
|
| | | | (55.2) | | | | | | (55.4) | | |
| | | | $ | 20.2 | | | | | $ | 20.4 | | |
| | |
March 31, 2020
(Unaudited) |
| |
December 31, 2019
|
| ||||||||||||||||||||||||||||||
| | |
Gross
|
| |
Accumulated
Amortization |
| |
Net
|
| |
Gross
|
| |
Accumulated
Amortization |
| |
Net
|
| ||||||||||||||||||
Indefinite-lived: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product formulations
|
| | | $ | 87.0 | | | | | $ | — | | | | | $ | 87.0 | | | | | $ | 109.9 | | | | | $ | — | | | | | $ | 109.9 | | |
Definite-lived: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Customer relationships
|
| | | $ | 105.0 | | | | | $ | (40.3) | | | | | $ | 64.7 | | | | | $ | 105.0 | | | | | $ | (38.8) | | | | | $ | 66.2 | | |
Tradenames
|
| | | | 95.1 | | | | | | (20.9) | | | | | | 74.2 | | | | | | 95.1 | | | | | | (19.9) | | | | | | 75.2 | | |
| | | | $ | 287.1 | | | | | $ | (61.2) | | | | | $ | 225.9 | | | | | $ | 310.0 | | | | | $ | (58.7) | | | | | $ | 251.3 | | |
| | |
Net Currency
Translation Gains (Losses) |
| |
Funded
Status of Benefit Plans |
| |
Total
Accumulated Other Comprehensive Loss |
| |||||||||
Balance at December 31, 2018
|
| | | $ | 4.4 | | | | | $ | (10.5) | | | | | $ | (6.1) | | |
Foreign currency translation Adjustments
|
| | | | (2.4) | | | | | | — | | | | | | (2.4) | | |
Adoption of ASU 2018-02
|
| | | | — | | | | | | (2.1) | | | | | | (2.1) | | |
Balance at March 31, 2019
|
| | | $ | 2.0 | | | | | $ | (12.6) | | | | | $ | (10.6) | | |
Balance at December 31, 2019
|
| | | $ | 2.9 | | | | | $ | (11.0) | | | | | $ | (8.1) | | |
Foreign currency translation Adjustments
|
| | | | (1.8) | | | | | | — | | | | | | (1.8) | | |
Balance at March 31, 2020
|
| | | $ | 1.1 | | | | | $ | (11.0) | | | | | $ | (9.9) | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(Unaudited)
|
| |||||||||
Net periodic benefit cost: | | | | | | | | | | | | | |
Service cost
|
| | | $ | — | | | | | $ | 0.2 | | |
Interest cost
|
| | | | 0.3 | | | | | | 0.3 | | |
Expected return on plan assets
|
| | | | (0.4) | | | | | | (0.4) | | |
Amortization of unrecognized actuarial loss
|
| | | | 0.1 | | | | | | 0.3 | | |
Total net periodic benefit cost
|
| | | $ | — | | | | | $ | 0.4 | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(Unaudited)
|
| |||||||||
Net periodic benefit cost: | | | | | | | | | | | | | |
Cost of Goods Sold
|
| | | $ | — | | | | | $ | 0.2 | | |
Selling, general and administrative expense
|
| | | | — | | | | | | 0.2 | | |
Total net periodic benefit cost
|
| | | $ | — | | | | | $ | 0.4 | | |
|
2020
|
| | | $ | 2.5 | | |
|
2021
|
| | | | 2.8 | | |
|
2022
|
| | | | 2.6 | | |
|
2023
|
| | | | 2.3 | | |
|
2024
|
| | | | 1.0 | | |
|
Thereafter
|
| | | | 2.2 | | |
|
Less: sublease rental income
|
| | | | (3.4) | | |
| | | | | $ | 10.0 | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(Unaudited)
|
| |||||||||
Product revenues, net | | | | ||||||||||
Mafco Worldwide
|
| | | $ | 25.8 | | | | | $ | 28.8 | | |
Merisant
|
| | | | 40.2 | | | | | | 41.5 | | |
Total Product revenues, net
|
| | | $ | 66.0 | | | | | $ | 70.3 | | |
Income (loss) before income taxes | | | | ||||||||||
Mafco Worldwide
|
| | | $ | (23.9) | | | | | $ | 6.2 | | |
Meriant
|
| | | | (7.7) | | | | | | 5.6 | | |
Total Income before income taxes
|
| | | $ | (31.6) | | | | | $ | 11.8 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
(In millions)
|
| |
2020
|
| |
2019
|
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Product revenues, net
|
| | | $ | 66.0 | | | | | $ | 70.3 | | |
Cost of goods sold
|
| | | | 39.9 | | | | | | 40.3 | | |
Gross profit
|
| | | | 26.1 | | | | | | 30.0 | | |
Selling, general and administrative expenses
|
| | | | 15.9 | | | | | | 15.7 | | |
Amortization of intangible assets
|
| | | | 2.5 | | | | | | 2.7 | | |
Asset impairment charges
|
| | | | 40.6 | | | | | | — | | |
Restructuring and other non-recurring expenses
|
| | | | 0.4 | | | | | | 1.4 | | |
Operating (loss) income
|
| | | | (33.3) | | | | | | 10.2 | | |
Other (income), net
|
| | | | (1.7) | | | | | | (1.6) | | |
Income before income taxes
|
| | | | (31.6) | | | | | | 11.8 | | |
(Benefit) provision for income taxes
|
| | | | (3.1) | | | | | | 2.6 | | |
Net (loss) income
|
| | | $ | (28.5) | | | | | $ | 9.2 | | |
| | |
Year Ended December 31,
|
| |||||||||
(In millions)
|
| |
2019
|
| |
2018
|
| ||||||
| | |
(Audited)
|
| |
(Audited)
|
| ||||||
Product revenues, net
|
| | | $ | 272.2 | | | | | $ | 291.0 | | |
Cost of goods sold
|
| | | | 163.6 | | | | | | 167.9 | | |
Gross profit
|
| | | | 108.6 | | | | | | 123.1 | | |
Selling, general and administrative expenses
|
| | | | 65.9 | | | | | | 74.8 | | |
Amortization of intangible assets
|
| | | | 10.7 | | | | | | 11.1 | | |
Restructuring and other non-recurring expenses
|
| | | | 2.2 | | | | | | 9.5 | | |
Operating income
|
| | | | 29.8 | | | | | | 27.1 | | |
Other expense, net
|
| | | | 1.4 | | | | | | 1.5 | | |
Income before income taxes
|
| | | | 28.4 | | | | | | 26.2 | | |
(Benefit) Provision for income taxes
|
| | | | (2.5) | | | | | | 5.3 | | |
Net income
|
| | | $ | 30.9 | | | | | $ | 20.9 | | |
| | |
Three Months Ended March 31,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
(In millions)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| |
(Audited)
|
| |
(Audited)
|
| ||||||||||||
Net cash provided by operating activities
|
| | | $ | 14.6 | | | | | $ | 10.5 | | | | | $ | 32.0 | | | | | $ | 34.0 | | |
Net cash used in investing activities
|
| | | | (0.9) | | | | | | (0.4) | | | | | | (4.1) | | | | | | (2.2) | | |
Net cash used in financing activities
|
| | | | (13.9) | | | | | | (12.2) | | | | | | (24.2) | | | | | | (28.8) | | |
Effect of exchange rates on cash and cash equivalents
|
| | | | 0.3 | | | | | | 0.1 | | | | | | (0.5) | | | | | | — | | |
Net increase (decrease) in cash and cash equivalents
|
| | | $ | 0.1 | | | | | $ | (2.0) | | | | | $ | 3.2 | | | | | $ | 3.0 | | |
| | |
2020
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
Thereafter
|
| ||||||||||||||||||
Minimum lease obligations(a)
|
| | | $ | 3.2 | | | | | $ | 2.8 | | | | | $ | 2.6 | | | | | $ | 2.4 | | | | | $ | 1.0 | | | | | $ | 2.2 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Sweeteners
|
| | | $ | 165.9 | | | | | $ | 173.8 | | | | | $ | 168.1 | | |
Licorice products
|
| | | | 106.3 | | | | | | 117.2 | | | | | | 119.9 | | |
Total Product revenues, net
|
| | | $ | 272.2 | | | | | $ | 291.0 | | | | | $ | 288.0 | | |
|
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Merisant – North America
|
| | | $ | 60.0 | | | | | $ | 59.0 | | | | | $ | 57.6 | | |
Merisant – Europe, Middle East and Africa
|
| | | | 76.0 | | | | | | 82.0 | | | | | | 77.9 | | |
Merisant – Asia-Pacific
|
| | | | 17.8 | | | | | | 17.0 | | | | | | 15.4 | | |
Merisant – Latin America
|
| | | | 12.1 | | | | | | 15.8 | | | | | | 17.2 | | |
Mafco Worldwide
|
| | | | 106.3 | | | | | | 117.2 | | | | | | 119.9 | | |
Total Product revenues, net
|
| | | $ | 272.2 | | | | | $ | 291.0 | | | | | $ | 288.0 | | |
| | | | COMPANY: | | |||
| | | | ACT II GLOBAL ACQUISITION CORP., a Cayman Islands exempted company | | |||
| | | | By: | | | /s/ John Carroll | |
| | | | | | | Name: John Carroll | |
| | | | | | | Title: Chief Executive Officer | |
| | | | ACT II GLOBAL LLC, a Delaware limited liability company | | |||
| | | | By: | | | /s/ John Carroll | |
| | | | | | | Name: John Carroll | |
| | | | | | | Title: Managing Member | |