| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 9 | | | |
| | | | | 27 | | | |
| | | | | 28 | | | |
| | | | | 29 | | | |
| | | | | 30 | | | |
| | | | | 31 | | | |
| | | | | 42 | | | |
| | | | | 48 | | | |
| | | | | 61 | | | |
| | | | | 79 | | | |
| | | | | 85 | | | |
| | | | | 97 | | | |
| | | | | 98 | | | |
| | | | | 103 | | | |
| | | | | 105 | | | |
| | | | | 108 | | | |
| | | | | 111 | | | |
| | | | | 115 | | | |
| | | | | 121 | | | |
| | | | | 123 | | | |
| | | | | 123 | | | |
| | | | | 123 | | | |
| | | | | F-1 | | |
| | |
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 | | | | | $ | 290 | | | | | | g | | | | | | 16,765 | | |
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) | | | | | | (40,408) | | | | | | | | | | | | 6,533 | | |
Interest expense on bank debt
|
| | | | | | | | | | | | | | | | 1,976 | | | | | | c | | | | | | 1,976 | | |
Interest (income)
|
| | | | | | | | | | (754) | | | | | | 754 | | | | | | b | | | | |||||
Other (income) expense, net
|
| | | | (1,700) | | | | | | | | | | | | | | | | | | | | | | | | (1,700) | | |
INCOME (LOSS) BEFORE INCOME TAXES
|
| | | | (31,600) | | | | | | 179 | | | | | | (37,678) | | | | | | | | | | | | 6,257 | | |
(Benefit) provision for income taxes
|
| | | | (3,100) | | | | | | | | | | | | 4,414 | | | | | | d | | | | | | 1,314 | | |
NET INCOME (LOSS)
|
| | | $ | (28,500) | | | | | $ | 179 | | | | | $ | (33,264) | | | | | | | | | | | $ | 4,943 | | |
| | |
HISTORICAL
|
| |
PRO FORMA
|
| ||||||
Weighted Average number of shares
|
| | | | 8,997,643(1) | | | | | | 38,426,669 | | |
Basic and diluted
|
| | | $ | (0.06)(2) | | | | | $ | 0.13 | | |
| | |
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 | | | | | $ | 1,160 | | | | | | g | | | | | | 67,411 | | |
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) | | | | | | (70) | | | | | | | | | | | | 29,379 | | |
Interest expense on bank debt
|
| | | | | | | | | | | | | | | | 7,903 | | | | | | c | | | | | | 7,903 | | |
Interest income
|
| | | | | | | | | | (4,255) | | | | | | 4,255 | | | | | | b | | | | | | 0 | | |
Unrealized gain on Trust Account investments
|
| | | | | | | | | | (28) | | | | | | 28 | | | | | | b | | | | | | 0 | | |
Other expense, net
|
| | | | 1,400 | | | | | | | | | | | | | | | | | | | | | | | | 1,400 | | |
INCOME BEFORE INCOME TAXES
|
| | | | 28,400 | | | | | | 3,932 | | | | | | 12,256 | | | | | | | | | | | | 20,076 | | |
(Benefit) provision for incomes taxes
|
| | | | (2,500) | | | | | | | | | | | | 6,716 | | | | | | d | | | | | | 4,216 | | |
NET INCOME
|
| | | $ | 30,900 | | | | | $ | 3,932 | | | | | $ | 18,972 | | | | | | | | | | | $ | 15,860 | | |
| | |
HISTORICAL
|
| |
PRO FORMA
|
| ||||||
Weighted Average number of shares
|
| | | | 8,410,915(1) | | | | | | 38,426,669 | | |
Basic and diluted
|
| | | $ | (0.02)(2) | | | | | $ | 0.41 | | |
| | |
Combined
Merisant/MAFCO |
| |
Act II
|
| |
Adjustments
|
| |
Adj #
|
| |
Pro Forma
|
| |||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 10,500 | | | | | $ | 583 | | | | | $ | 42,571 | | | | | | a | | | | | $ | 53,654 | | |
Accounts receivable – net
|
| | | | 53,100 | | | | | | | | | | | | | | | | | | | | | | | | 53,100 | | |
Inventories
|
| | | | 116,400 | | | | | | | | | | | | | | | | | | | | | | | | 116,400 | | |
Prepaid expenses and other current assets
|
| | | | 6,800 | | | | | | 104 | | | | | | 1,678 | | | | | | k | | | | | | 8,582 | | |
TOTAL CURRENT ASSETS
|
| | | | 186,800 | | | | | | 687 | | | | | | 44,249 | | | | | | | | | | | | 231,736 | | |
Marketable securities held in Trust Account
|
| | | | | | | | | | 305,037 | | | | | | (305,037) | | | | | | a | | | | | | 0 | | |
Property, plant and equipment – net
|
| | | | 20,200 | | | | | | | | | | | | | | | | | | | | | | | | 20,200 | | |
Right of use asset
|
| | | | | | | | | | 267 | | | | | | | | | | | | | | | | | | 267 | | |
Goodwill
|
| | | | 113,100 | | | | | | | | | | | | (63,363) | | | | | | c | | | | | | 49,737 | | |
Other intangible assets – net
|
| | | | 225,900 | | | | | | | | | | | | 2,800 | | | | | | b | | | | | | 228,700 | | |
Other assets
|
| | | | 3,700 | | | | | | 38 | | | | | | | | | | | | | | | | | | 3,738 | | |
TOTAL ASSETS
|
| | | $ | 549,700 | | | | | $ | 306,029 | | | | | $ | (321,351) | | | | | | | | | | | $ | 534,378 | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 27,200 | | | | | $ | 195 | | | | | | | | | | | | | | | | | $ | 27,395 | | |
Current portion of bank debt
|
| | | | | | | | | | | | | | | $ | 5,250 | | | | | | c | | | | | | 5,250 | | |
Operating lease liability
|
| | | | | | | | | | 217 | | | | | | | | | | | | | | | | | | 217 | | |
Accrued expenses and other current liabilities
|
| | | | 21,600 | | | | | | | | | | | | | | | | | | | | | | | | 21,600 | | |
TOTAL CURRENT LIABILITIES
|
| | | | 48,800 | | | | | | 412 | | | | | | 5,250 | | | | | | | | | | | | 54,462 | | |
Bank debt, net of current portion
|
| | | | | | | | | | | | | | | | 127,611 | | | | | | c | | | | | | 127,611 | | |
Operating lease liability, net of current portion
|
| | | | | | | | | | 65 | | | | | | | | | | | | | | | | | | 65 | | |
Deferred underwriting fee payable
|
| | | | | | | | | | 11,280 | | | | | | (11,280) | | | | | | e | | | | | | 0 | | |
Due to related party
|
| | | | 6,900 | | | | | | | | | | | | (6,900) | | | | | | j | | | | | | 0 | | |
Deferred tax liabilities, net
|
| | | | 30,900 | | | | | | | | | | | | |||||||||||||||
Other liabilities
|
| | | | 18,100 | | | | | | | | | | | | (5,900) | | | | | | j | | | | | | 12,200 | | |
TOTAL LIABILITIES
|
| | | | 104,700 | | | | | | 11,757 | | | | | | 108,781 | | | | | | | | | | | | 225,238 | | |
Ordinary shares subject to redemption
|
| | | | | | | | | | 289,272 | | | | | | (289,272) | | | | | | f | | | | |||||
Net parent investment
|
| | | | 445,000 | | | | | | | | | | | | (445,000) | | | | | | g | | | | |||||
Class A ordinary Shares, $0.0001 par value;
200,000,000 shares authorized; 1,550,484 shares issued and outstanding (excluding 28,449,516 shares subject to possible redemption) historically and 38,426,669 shares proforma |
| | | | | | | | | | | | | | | | 3 | | | | | | | | | | | | 3 | | |
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 | | |
Additional capital
|
| | | | | | | | | | 888 | | | | | | 316,686 | | | | | | i | | | | | | 317,574 | | |
Retained earnings
|
| | | | | | | | | | 4,111 | | | | | | (12,548) | | | | | | d | | | | | | (8,437) | | |
TOTAL SHAREHOLDERS’ EQUITY
|
| | | | 445,000 | | | | | | 5,000 | | | | | | (140,860) | | | | | | | | | | | | 309,140 | | |
TOTAL LIABILITIES AND EQUITY
|
| | | $ | 549,700 | | | | | $ | 306,029 | | | | | $ | (321,351) | | | | | | | | | | | $ | 534,378 | | |
|
Cash paid to selling shareholder
|
| | | $ | 386,737 | | |
|
Accounts receivable
|
| | | $ | 53,100 | | |
|
Inventories
|
| | | | 116,400 | | |
|
Prepaids expenses and other current assets
|
| | | | 6,800 | | |
|
Property, plant and equipment
|
| | | | 20,200 | | |
|
Other assets
|
| | | | 3,700 | | |
|
Intangible assets
|
| | | | 228,700 | | |
|
Goodwill
|
| | | | 49,737 | | |
|
Accounts payable
|
| | | | (27,200) | | |
|
Accrued expenses and other current liabilities
|
| | | | (21,600) | | |
|
Deferred tax liabilities
|
| | | | (30,900) | | |
|
Other liabilities
|
| | | | (12,200) | | |
| | | | | $ | 386,737 | | |
| | |
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) | | |
| | |
Shares
Outstanding |
| |
%
|
| ||||||
Shares held by Act II Sponsor
|
| | | | 4,500,000 | | | | | | 11.71% | | |
Shares held by Seller
|
| | | | 600,000 | | | | | | 1.56% | | |
Shares held by PIPE investors
|
| | | | 7,500,000 | | | | | | 19.52% | | |
Shares held by Dicalite Management Group, Inc
|
| | | | 3,300,000 | | | | | | 8.59% | | |
Shares held by public
|
| | | | 22,526,669 | | | | | | 58.62% | | |
Total common shares o/s
|
| | | | 38,426,669 | | | | | | 100.00% | | |
|
Act II cash previously in trust as of March 31, 2020(1)
|
| | | $ | 305,037,000 | | |
|
Proceeds from PIPE(2)
|
| | | | 75,000,000 | | |
|
Proceeds from new bank debt(3)
|
| | | | 132,861,000 | | |
|
Shareholder redemptions(4)
|
| | | | 36,334,000 | | |
|
Cash retained by seller
|
| | | | (10,500,000) | | |
|
Repurchase of warrants(5)
|
| | | | (11,250,000) | | |
|
Cash consideration(6)
|
| | | | (386,737,000) | | |
|
Payment of transaction costs(7)
|
| | | | (23,828,000) | | |
|
Expenses prepaid at closing
|
| | | | (1,678,000) | | |
| | | | | $ | 42,571,000 | | |
|
Conversion of redeemable shares held by Act II public shareholders to APIC net of par value amount
|
| | | $ | 252,936,000 | | |
|
Increase in APIC attributable to stock issued to PIPE investors
|
| | | | 74,999,250 | | |
|
Decrease in APIC as the result of the repurchase of warrants
|
| | | | (11,250,000) | | |
|
Cancellation of Act II Sponsor shares
|
| | | | 300 | | |
| | | | | $ | 316,685,550 | | |
| | |
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
|
| |
2017
|
| |||||||||
| | |
(Audited)
|
| |
(Audited)
|
| |
(Audited)
|
| |||||||||
Product revenues, net
|
| | | $ | 272.2 | | | | | $ | 291.0 | | | | | $ | 288.0 | | |
Cost of goods sold
|
| | | | 163.6 | | | | | | 167.9 | | | | | | 167.5 | | |
Gross profit
|
| | | | 108.6 | | | | | | 123.1 | | | | | | 120.5 | | |
Selling, general and administrative expenses
|
| | | | 65.9 | | | | | | 74.8 | | | | | | 77.5 | | |
Amortization of intangible assets
|
| | | | 10.7 | | | | | | 11.1 | | | | | | 11.1 | | |
Restructuring and other non-recurring expenses
|
| | | | 2.2 | | | | | | 9.5 | | | | | | 13.1 | | |
Operating income
|
| | | | 29.8 | | | | | | 27.7 | | | | | | 18.8 | | |
Other expense, net
|
| | | | 1.4 | | | | | | 1.5 | | | | | | 3.9 | | |
Income before income taxes
|
| | | | 28.4 | | | | | | 26.2 | | | | | | 14.9 | | |
(Benefit) Provision for income taxes
|
| | | | (2.5) | | | | | | 5.3 | | | | | | (10.2) | | |
Net income
|
| | | $ | 30.9 | | | | | $ | 20.9 | | | | | | 25.1 | | |
| | |
Three Months Ended March 31,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||||||||
(In millions)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| |
(Audited)
|
| |
(Audited)
|
| |
(Audited)
|
| |||||||||||||||
Net cash provided by operating activities
|
| | | $ | 14.6 | | | | | $ | 10.5 | | | | | $ | 32.0 | | | | | $ | 34.0 | | | | | $ | 39.3 | | |
Net cash used in investing activities
|
| | | | (0.9) | | | | | | (0.4) | | | | | | (4.1) | | | | | | (2.2) | | | | | | (0.7) | | |
Net cash used in financing activities
|
| | | | (13.9) | | | | | | (12.2) | | | | | | (24.2) | | | | | | (28.8) | | | | | | (41.1) | | |
Effect of exchange rates on cash and cash equivalents
|
| | | | 0.3 | | | | | | 0.1 | | | | | | (0.5) | | | | | | — | | | | | | (0.1) | | |
Net increase (decrease) in cash and cash equivalents
|
| | | $ | 0.1 | | | | | $ | (2.0) | | | | | $ | 3.2 | | | | | $ | 3.0 | | | | | $ | (2.6) | | |
| | |
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 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Branded CPG
|
| | | | 61% | | | | | | 60% | | | | | | 58% | | |
Flavors & Ingredients
|
| | | | 39% | | | | | | 40% | | | | | | 42% | | |
Brand
|
| |
Key Markets
|
| |
Price Point
|
| |
Key Product Type
|
|
Whole Earth®
|
| | United States, Puerto Rico, Australia, New Zealand, Canada | | | Premium | | | Sweeteners | |
Pure Via®
|
| |
France, UK, Belgium, Netherlands, South Africa, Mexico, Hungary, Portugal
United States
|
| |
Premium
Mid-Priced
|
| |
Sweeteners, jams
Sweeteners
|
|
Equal®
|
| |
United States, Mexico, Puerto Rico, Australia, New Zealand, Canada
South Africa
|
| |
Premium
Mid-Priced
|
| |
Sweeteners, chocolates
Sweeteners
|
|
Canderel®
|
| | France, UK, Belgium, Netherlands, South Africa, Mexico, Hungary, Portugal, Middle East | | | Premium | | | Sweeteners, jams, chocolates, granola, bars | |
Sugarly Sweet®
|
| | United States | | | Mid-Priced | | | Sweeteners | |
SweetMate®
|
| | United States, Mexico | | | Mid-Priced | | | Sweeteners | |
EqualSweet®
|
| | Argentina | | | Premium | | | Sweeteners | |
Misura,®
Mivida™ |
| | Italy | | | Premium | | | Sweeteners, supplements | |
Sucaryl™
|
| | Argentina | | | Mid-Priced | | | Sweeteners | |
Chuker™
|
| | Argentina, Central America | | | Mid-Priced | | | Sweeteners | |
Name
|
| |
Age
|
| |
Position
|
|
Irwin D. Simon | | |
61
|
| | Executive Chairman of the Board of Directors | |
Albert Manzone | | |
56
|
| | Chief Executive Officer | |
Lucas Bailey | | |
39
|
| | President, Flavors & Ingredients | |
Andrew Rusie | | |
46
|
| | Chief Financial Officer | |
Denise M. Faltischek | | |
47
|
| | Director | |
Steven M. Cohen | | |
56
|
| | Director | |
John M. McMillin | | |
67
|
| | Director | |
Anuraag Agarwal | | |
45
|
| | Director | |
Ira J. Lamel | | |
73
|
| | Director | |
Name
|
| |
Audit
Committee |
| |
Compensation
Committee |
| |
Nominating and
Corporate Governance Committee |
| |
Independent
under Rule 5605(a)(2) |
| |
Independent
under Rule 10A-3(b)(1) |
| |||||||||||||||
Irwin D. Simon
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | N/A | | |
Denise M. Faltischek‡
|
| | | | — | | | | | | — | | | | | | ☒ | | | | | | ☒ | | | | | | N/A | | |
Ira J. Lamel*§
|
| | | | ☒ | | | | | | ☒ | | | | | | — | | | | | | ☒ | | | | | | ☒ | | |
John M. McMillin†
|
| | | | ☒ | | | | | | ☒ | | | | | | — | | | | | | ☒ | | | | | | ☒ | | |
Anuraag Agarwal
|
| | | | ☒ | | | | | | — | | | | | | ☒ | | | | | | ☒ | | | | | | ☒ | | |
Steven M. Cohen
|
| | | | — | | | | | | ☒ | | | | | | ☒ | | | | | | ☒ | | | | | | N/A | | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($)(1) |
| |
Non-Equity
Incentive Plan Compensation ($)(2) |
| |
Non-Qualified
Deferred Compensation Earnings ($)(6) |
| |
All Other
Compensation ($)(3) |
| |
Total
($) |
| |||||||||||||||||||||
Albert Manzone
Chief Executive Officer(4) |
| | | | 2019 | | | | | $ | 558,606 | | | | | | | | | | | $ | 235,553 | | | | | | — | | | | | $ | 613,124 | | | | | $ | 1,407,283 | | |
| | | | | 2018 | | | | | $ | 534,533 | | | | | $ | 551,137 | | | | | $ | 510,038 | | | | | | — | | | | | $ | 610,434 | | | | | $ | 2,206,142 | | |
Lucas Bailey
President, Flavors & Ingredients |
| | | | 2019 | | | | | $ | 780,300 | | | | | $ | 413,674 | | | | | | — | | | | | $ | 161,328 | | | | | $ | 36,105 | | | | | $ | 1,391,407 | | |
| | | | | 2018 | | | | | $ | 761,250 | | | | | $ | 437,580 | | | | | | — | | | | | | — | | | | | $ | 33,535 | | | | | $ | 1,232,365 | | |
Andrew Rusie
Chief Financial Officer(5) |
| | | | 2019 | | | | | $ | 23,438 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | $ | 23,438 | | |
Name
|
| |
Type of Award
|
| |
Performance
Period |
| |
LTIP Target Award
|
| |
LTIP
Maximum Performance |
| ||||||||||||
Albert Manzone
|
| | | | LTIP | | | | | | 2019 – 2021 | | | | | $ | 512,530 | | | | | | 200% | | |
| | | | | LTIP | | | | | | 2018 – 2020 | | | | | $ | 512,530 | | | | | | 200% | | |
| | | | | Supplemental | | | | | | 2018 – 2019 | | | | | $ | 512,530 | | | | | | 150% | | |
| | | | | LTIP | | | | | | 2017 – 2019 | | | | | $ | 512,530 | | | | | | 200% | | |
Beneficial Owner
|
| |
Number of Shares
of Common Stock |
| |
Percentage of
Outstanding Shares |
| ||||||
5% Stockholders | | | | | | | | | | | | | |
Act II Global LLC (the “Sponsor”)(1)
|
| | | | 4,500,000 | | | | | | 11.71% | | |
Dicalite Management Group, Inc.(5)
|
| | | | 3,300,000 | | | | | | 8.59% | | |
MMCAP International Inc. SPC(2)
|
| | | | 3,525,900 | | | | | | 9.1% | | |
Linden Capital L.P.(3)
|
| | | | 2,435,299 | | | | | | 6.34% | | |
Baron Small Cap Fund(7)
|
| | | | 2,701,800 | | | | | | 6.9% | | |
Millennium Management LLC(6)
|
| | | | 2,506,311 | | | | | | 6.43% | | |
Neuberger Berman Alternative Funds, Neuberger Berman Long Short Fund(8)
|
| | | | 2,104,400 | | | | | | 5.41% | | |
Directors and Named Executive Officers | | | | | | | | | | | | | |
Irwin D. Simon(4)
|
| | | | — | | | | | | — | | |
Albert Manzone
|
| | | | — | | | | | | — | | |
Lucas Bailey
|
| | | | — | | | | | | — | | |
Andrew Rusie
|
| | | | — | | | | | | — | | |
Denise M. Faltischek
|
| | | | — | | | | | | — | | |
Steven M. Cohen
|
| | | | — | | | | | | — | | |
John M. McMillin(4)
|
| | | | — | | | | | | — | | |
Anuraag Agarwal(4)
|
| | | | — | | | | | | — | | |
Ira J. Lamel(4)
|
| | | | — | | | | | | — | | |
All executive officers and directors as a group (nine individuals)
|
| | | | — | | | | | | — | | |
| | |
Before the Offering
|
| | | | | | | | | | | | | |
After the Offering
|
| ||||||||||||||||||||||||||||||
Name of Selling Security Holder
|
| |
Number of
Shares of Common Stock |
| |
Number of
Warrants |
| |
Number of
Shares of Common Stock Being Offered |
| |
Number of
Warrants Being Offered |
| |
Number of
Shares of Common Stock |
| |
%
|
| |
Number of
Warrants |
| |
%
|
| ||||||||||||||||||||||||
Act II Global LLC(1)
|
| | | | 4,500,000 | | | | | | ― | | | | | | 4,500,000 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | |
Baron Small Cap Fund(2)
|
| | | | 2,701,800 | | | | | | 1,403,600 | | | | | | 2,701,800 | | | | | | 1,403,600 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | |
Millennium Management
LLC(3) |
| | | | 2,506,311 | | | | | | 1,081,719 | | | | | | 2,026,350 | | | | | | 1,052,700 | | | | | | 479,961 | | | | | | * | | | | | | 29,019 | | | | | | * | | |
MMCAP International Inc. SPC(4)
|
| | | | 3,150,900 | | | | | | 1,451,800 | | | | | | 1,350,900 | | | | | | 701,800 | | | | | | 2,175,000 | | | | | | 5.61% | | | | | | 750,000 | | | | | | * | | |
Monashee Investment Management LLC(5)
|
| | | | 1,080,720 | | | | | | 561,440 | | | | | | 1,080,720 | | | | | | 561,440 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | |
Neuberger Berman Alternative Funds, Neuberger Berman Long Short Fund(6)
|
| | | | 2,104,400 | | | | | | 1,003,200 | | | | | | 1,350,900 | | | | | | 701,800 | | | | | | 753,500 | | | | | | 1.95% | | | | | | 301,400 | | | | | | 1.49% | | |
Polar Asset Management Partners
Inc.(7) |
| | | | 135,090 | | | | | | 70,180 | | | | | | 135,090 | | | | | | 70,180 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | |
UBS O’Connor LLC(8)
|
| | | | 1,350,900 | | | | | | 701,800 | | | | | | 1,350,900 | | | | | | 701,800 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | |
Wolverine Flagship Fund Trading
Limited(9) |
| | | | 140,635 | | | | | | 80,180 | | | | | | 135,090 | | | | | | 70,180 | | | | | | 5,545 | | | | | | * | | | | | | 10,000 | | | | | | * | | |
| Audited Combined Financial Statements for Mafco Worldwide & Merisant | | | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| Audited Financial Statements for Act II Global Acquisition Corp. | | | | | | | |
| | | | | F-33 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | | |
| | | | | F-36 | | | |
| | | | | F-37 | | | |
| | | | | F-38 | | | |
| Unaudited Financial Statements for Act II Global Acquisition Corp. | | | |||||
|
Combined Financial Statements (unaudited) For the Three Months Ended March 31, 2020 and 2019
|
| | |||||
| | | | | F-49 | | | |
| | | | | F-50 | | | |
| | | | | F-51 | | | |
| | | | | F-52 | | | |
| | | | | F-53 | | | |
| Mafco Worldwide & Merisant The Licorice and Sweetener Businesses of Flavors Holdings Inc. | | | |||||
|
Combined Financial Statements (unaudited) For the Three Months Ended March 31, 2020 and 2019
|
| | |||||
| Combined Financial Statements | | | | | | | |
| | | | | F-67 | | | |
| | | | | F-68 | | | |
| | | | | F-69 | | | |
| | | | | F-70 | | | |
| | | | | F-71 | | | |
| | | | | F-72 | | |
| | |
December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 10.4 | | | | | $ | 7.2 | | |
Accounts receivable (net of allowances of $2.8 and $1.6, respectively)
|
| | | | 55.0 | | | | | | 56.6 | | |
Inventories
|
| | | | 121.1 | | | | | | 123.5 | | |
Prepaid expenses and other current assets
|
| | | | 7.3 | | | | | | 4.1 | | |
Total current assets
|
| | | | 193.8 | | | | | | 191.4 | | |
Property, plant and equipment, net
|
| | | | 20.4 | | | | | | 19.7 | | |
Goodwill
|
| | | | 130.8 | | | | | | 130.8 | | |
Other intangible assets, net
|
| | | | 251.3 | | | | | | 262.0 | | |
Other assets
|
| | | | 3.5 | | | | | | 4.1 | | |
Total assets
|
| | | $ | 599.8 | | | | | $ | 608.0 | | |
Liabilities and net parent investment | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 26.3 | | | | | $ | 24.6 | | |
Accrued expenses and other current liabilities
|
| | | | 28.1 | | | | | | 31.3 | | |
Total current liabilities
|
| | | | 54.4 | | | | | | 55.9 | | |
Due to related party
|
| | | | 8.4 | | | | | | 6.9 | | |
Deferred tax liabilities, net
|
| | | | 31.5 | | | | | | 42.2 | | |
Other liabilities
|
| | | | 17.8 | | | | | | 18.5 | | |
Net parent investment
|
| | | | 487.7 | | | | | | 484.5 | | |
Total liabilities and net parent investment
|
| | | $ | 599.8 | | | | | $ | 608.0 | | |
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Product revenues, net
|
| | | $ | 272.2 | | | | | $ | 291.0 | | | | | $ | 288.0 | | |
Cost of goods sold
|
| | | | 163.6 | | | | | | 167.9 | | | | | | 167.5 | | |
Gross profit
|
| | | | 108.6 | | | | | | 123.1 | | | | | | 120.5 | | |
Selling, general and administrative expenses
|
| | | | 65.9 | | | | | | 74.8 | | | | | | 77.5 | | |
Amortization of intangible assets
|
| | | | 10.7 | | | | | | 11.1 | | | | | | 11.1 | | |
Restructuring and other non-recurring expenses
|
| | | | 2.2 | | | | | | 9.5 | | | | | | 13.1 | | |
Operating income
|
| | | | 29.8 | | | | | | 27.7 | | | | | | 18.8 | | |
Other expense, net
|
| | | | 1.4 | | | | | | 1.5 | | | | | | 3.9 | | |
Income before income taxes
|
| | | | 28.4 | | | | | | 26.2 | | | | | | 14.9 | | |
(Benefit) provision for income taxes
|
| | | | (2.5) | | | | | | 5.3 | | | | | | (10.2) | | |
Net income
|
| | | $ | 30.9 | | | | | $ | 20.9 | | | | | $ | 25.1 | | |
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Net income
|
| | | $ | 30.9 | | | | | $ | 20.9 | | | | | $ | 25.1 | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | (1.5) | | | | | | (0.6) | | | | | | 5.9 | | |
Net change in pension benefit obligation recognized
|
| | | | (0.5) | | | | | | 0.7 | | | | | | 1.3 | | |
Total other comprehensive (loss) income, net of tax
|
| | | | (2.0) | | | | | | 0.1 | | | | | | 7.2 | | |
Comprehensive income
|
| | | $ | 28.9 | | | | | $ | 21.0 | | | | | $ | 32.3 | | |
Tax (benefit) provision of other comprehensive income (loss) included in above amounts:
|
| | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | $ | — | | | | | $ | — | | | | | $ | 0.2 | | |
Net change in pension benefit obligation recognized
|
| | | | (2.7) | | | | | | 0.1 | | | | | | 0.3 | | |
Total net tax (benefit) provision included in other comprehensive
(loss) income |
| | | $ | (2.7) | | | | | $ | 0.1 | | | | | $ | 0.5 | | |
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Beginning balance
|
| | | $ | 484.5 | | | | | $ | 499.2 | | | | | $ | 508.0 | | |
Funding to Parent, net
|
| | | | (25.7) | | | | | | (35.7) | | | | | | (41.1) | | |
Net income
|
| | | | 30.9 | | | | | | 20.9 | | | | | | 25.1 | | |
Other comprehensive (loss) income, net of tax
|
| | | | (2.0) | | | | | | 0.1 | | | | | | 7.2 | | |
Ending balance
|
| | | $ | 487.7 | | | | | $ | 484.5 | | | | | $ | 499.2 | | |
| | |
Years Ended December 31
|
| | |||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| | |||||||||||
Operating activities | | | | | | | | | | | | | | | | | | | | | ||
Net income
|
| | | $ | 30.9 | | | | | $ | 20.9 | | | | | $ | 25.1 | | | | ||
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | | | | | | | | | ||
Depreciation
|
| | | | 3.0 | | | | | | 3.6 | | | | | | 3.4 | | | | ||
Amortization of intangible assets
|
| | | | 10.7 | | | | | | 11.1 | | | | | | 11.1 | | | | ||
Deferred income taxes
|
| | | | (10.5) | | | | | | (6.0) | | | | | | (14.8) | | | | ||
Loss on sale of fixed assets
|
| | | | 0.1 | | | | | | 0.5 | | | | | | 0.2 | | | | ||
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | | | | | | | | | ||
Accounts receivable
|
| | | | 1.5 | | | | | | 2.5 | | | | | | (7.0) | | | | ||
Inventories
|
| | | | 2.0 | | | | | | (0.7) | | | | | | 4.8 | | | | ||
Pension
|
| | | | (1.6) | | | | | | 1.6 | | | | | | 1.7 | | | | ||
Prepaid expenses and other current assets
|
| | | | (3.1) | | | | | | 0.3 | | | | | | 2.5 | | | | ||
Accounts payable, accrued liabilities and income taxes
|
| | | | (3.0) | | | | | | 0.2 | | | | | | 9.3 | | | | ||
Other, net
|
| | | | 2.0 | | | | | | — | | | | | | 3.0 | | | | ||
Net cash provided by operating activities
|
| | | | 32.0 | | | | | | 34.0 | | | | | | 39.3 | | | | ||
Investing activities | | | | | | | | | | | | | | | | | | | | | ||
Capital expenditures
|
| | | | (4.1) | | | | | | (4.1) | | | |
(3.1)
|
| ||||||
Proceeds from sale of fixed assets
|
| | | | — | | | | | | 1.9 | | | | | | 2.4 | | | | ||
Net cash used in investing activities
|
| | | | (4.1) | | | | | | (2.2) | | | | | | (0.7) | | | | ||
Financing activities | | | | | | | | | | | | | | | | | | | | | ||
Borrowings under revolver
|
| | | | 1.5 | | | | | | 7.5 | | | | | | — | | | | ||
Repayments of revolver
|
| | | | — | | | | | | (0.6) | | | | | | — | | | | ||
Funding to Parent, net
|
| | | | (25.7) | | | | | | (35.7) | | | | | | (41.1) | | | | ||
Net cash used in financing activities
|
| | | | (24.2) | | | | | | (28.8) | | | | | | (41.1) | | | | ||
Effect of exchange rate changes on cash and cash equivalents
|
| | | | (0.5) | | | | | | — | | | | | | (0.1) | | | | ||
Net change in cash and cash equivalents
|
| | | | 3.2 | | | | | | 3.0 | | | | | | (2.6) | | | | ||
Cash and cash equivalents, beginning of period
|
| | | | 7.2 | | | | | | 4.2 | | | | | | 6.8 | | | | ||
Cash and cash equivalents, end of period
|
| | | $ | 10.4 | | | | | $ | 7.2 | | | | | $ | 4.2 | | | | ||
Supplemental disclosure of cash paid | | | | | | | | | | | | | | | | | | | | | ||
Taxes paid, net of refunds
|
| | | $ | 4.5 | | | | | $ | 5.1 | | | | | $ | 4.8 | | | |
|
Land, building and building improvements
|
| |
10 – 40 years
|
|
|
Machinery and equipment
|
| |
3 – 20 years
|
|
|
Furniture and fixtures
|
| |
3 – 10 years
|
|
|
Vehicles
|
| |
3 – 10 years
|
|
|
Computers
|
| |
3 – 5 years
|
|
| | |
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 | | |
| | |
December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Raw materials and supplies
|
| | | $ | 89.6 | | | | | $ | 87.2 | | |
Work in process
|
| | | | 0.4 | | | | | | 0.5 | | |
Finished goods
|
| | | | 31.1 | | | | | | 35.8 | | |
| | | | $ | 121.1 | | | | | $ | 123.5 | | |
| | |
December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Machinery, equipment and other
|
| | | $ | 50.1 | | | | | $ | 48.1 | | |
Land, land rights, buildings and building improvements
|
| | | | 25.1 | | | | | | 24.1 | | |
Construction in progress
|
| | | | 0.6 | | | | | | 1.0 | | |
| | | | | 75.8 | | | | | | 73.2 | | |
Accumulated depreciation
|
| | | | (55.4) | | | | | | (53.5) | | |
| | | | $ | 20.4 | | | | | $ | 19.7 | | |
| | |
December 31
|
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| | |
2019
|
| |
2018
|
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| | |
Gross
|
| |
Accumulated
Amortization |
| |
Net
|
| |
Gross
|
| |
Accumulated
Amortization |
| |
Net
|
| ||||||||||||||||||
Indefinite-lived: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product formulations
|
| | | $ | 109.9 | | | | | $ | — | | | | | $ | 109.9 | | | | | $ | 109.9 | | | | | $ | — | | | | | $ | 109.9 | | |
Definite-lived: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Customer relationships
|
| | | $ | 105.0 | | | | | $ | (38.8) | | | | | $ | 66.2 | | | | | $ | 105.0 | | | | | $ | (31.9) | | | | | $ | 73.1 | | |
Tradenames
|
| | | | 95.1 | | | | | | (19.9) | | | | | | 75.2 | | | | | | 95.1 | | | | | | (16.1) | | | | | | 79.0 | | |
| | | | $ | 310.0 | | | | | $ | (58.7) | | | | | $ | 251.3 | | | | | $ | 310.0 | | | | | $ | (48.0) | | | | | $ | 262.0 | | |
| | |
Net
Currency Translation Gains (Losses) |
| |
Funded
Status of Benefit Plans |
| |
Total
Accumulated Other Comprehensive Loss |
| |||||||||
Balance at December 31, 2016
|
| | | $ | (0.9) | | | | | $ | (12.5) | | | | | $ | (13.4) | | |
Foreign currency translation adjustments
|
| | | | 5.9 | | | | | | — | | | | | | 5.9 | | |
Net change in pension benefit obligation
|
| | | | — | | | | | | 1.3 | | | | | | 1.3 | | |
Net current-period other comprehensive income
|
| | | | 5.9 | | | | | | 1.3 | | | | | | 7.2 | | |
Balance at December 31, 2017
|
| | | $ | 5.0 | | | | | $ | (11.2) | | | | | $ | (6.2) | | |
Foreign currency translation adjustments
|
| | | | (0.6) | | | | | | — | | | | | | (0.6) | | |
Net change in pension benefit obligation
|
| | | | — | | | | | | 0.7 | | | | | | 0.7 | | |
Net current-period other comprehensive income
|
| | | | (0.6) | | | | | | 0.7 | | | | | | 0.1 | | |
Balance at December 31, 2018
|
| | | | 4.4 | | | | | | (10.5) | | | | | | (6.1) | | |
Foreign currency translation adjustments
|
| | | | (1.5) | | | | | | — | | | | | | (1.5) | | |
Net change in pension benefit obligation
|
| | | | — | | | | | | (0.5) | | | | | | (0.5) | | |
Net current-period other comprehensive income
|
| | | | (1.5) | | | | | | (0.5) | | | | | | (2.0) | | |
Balance at December 31, 2019
|
| | | $ | 2.9 | | | | | $ | (11.0) | | | | | $ | (8.1) | | |
Component
|
| |
Line Items Affected by Reclassifications
from Net Parent Investment in the Combined Statements of Operations |
| |
Expense Reclassified for the
Years Ended December 31, |
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| | | | | |
2019
|
| |
2017
|
| |
2018
|
| |||||||||
Funded Status of
Benefit Plans |
| |
Cost of goods sold
|
| | | $ | (0.5) | | | | | $ | (0.4) | | | | | $ | (0.5) | | |
|
Selling, general and administrative expenses
|
| | | | (1.0) | | | | | | (0.6) | | | | | | (0.7) | | | ||
| | | | | | | $ | (1.5) | | | | | $ | (1.0) | | | | | $ | (1.2) | | |
| | |
December 31
|
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| | |
2019
|
| |
2018
|
| ||||||
Accumulated benefit obligation
|
| | | $ | 28.8 | | | | | $ | 24.0 | | |
Changes in projected benefit obligation: | | | | | | | | | | | | | |
Projected benefit obligation at beginning of year
|
| | | $ | 26.1 | | | | | $ | 28.0 | | |
Service cost
|
| | | | 0.6 | | | | | | 0.8 | | |
Interest cost
|
| | | | 1.1 | | | | | | 1.0 | | |
Liability gain due to curtailment
|
| | | | (2.5) | | | | | | — | | |
Actuarial loss (gain)
|
| | | | 4.2 | | | | | | (2.0) | | |
Benefits paid
|
| | | | (0.7) | | | | | | (1.7) | | |
Projected benefit obligation at end of year
|
| | | | 28.8 | | | | | | 26.1 | | |
Change in plan assets: | | | | | | | | | | | | | |
Fair value of assets at beginning of year
|
| | | | 25.8 | | | | | | 29.4 | | |
Actual returns on plan assets
|
| | | | 5.1 | | | | | | (1.9) | | |
Benefits paid
|
| | | | (0.7) | | | | | | (1.7) | | |
Fair value of assets at end of year
|
| | | | 30.2 | | | | | | 25.8 | | |
Net pension asset (liability)
|
| | | $ | 1.4 | | | | | $ | (0.3) | | |
| | |
December 31
2019 |
| |||
Prior service cost
|
| | | $ | — | | |
Net actuarial loss
|
| | | | 9.3 | | |
| | | | $ | 9.3 | | |
|
| | |
Years Ended December 31
|
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| | |
2019
|
| |
2018
|
| |
2017
|
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Net actuarial (gain) loss
|
| | | $ | (1.9) | | | | | $ | 1.4 | | | | | $ | (0.3) | | |
Prior service credit
|
| | | | (0.3) | | | | | | — | | | | | | 0.1 | | |
Amortization of prior service costs
|
| | | | (0.1) | | | | | | (0.1) | | | | | | (0.1) | | |
Amortization of actuarial loss
|
| | | | (1.1) | | | | | | (1.0) | | | | | | (1.2) | | |
Total (gain) loss recognized in other comprehensive income
|
| | | $ | (3.4) | | | | | $ | 0.3 | | | | | $ | (1.5) | | |
| | |
Years Ended December 31
|
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| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Service cost
|
| | | $ | (0.6) | | | | | $ | (0.8) | | | | | $ | (0.8) | | |
Interest cost
|
| | | | (1.1) | | | | | | (1.0) | | | | | | (1.0) | | |
Expected return on plan assets
|
| | | | 1.5 | | | | | | 1.5 | | | | | | 1.5 | | |
Amortization of prior service costs
|
| | | | (0.1) | | | | | | (0.1) | | | | | | (0.1) | | |
Settlement/Curtailment expense
|
| | | | (0.3) | | | | | | — | | | | | | — | | |
Amortization of net actuarial loss
|
| | | | (1.1) | | | | | | (1.0) | | | | | | (1.2) | | |
Net periodic pension expense
|
| | | $ | (1.7) | | | | | $ | (1.4) | | | | | $ | (1.6) | | |
| | |
Years Ended December 31
|
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| | |
2019
|
| |
2018
|
| |
2017
|
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Net periodic benefit cost: | | | | | | | | | | | | | | | | | | | |
Cost of Goods Sold
|
| | | $ | 0.4 | | | | | $ | 0.5 | | | | | $ | 0.6 | | |
Selling, general and administrative expense
|
| | | | 1.3 | | | | | | 0.9 | | | | | | 1.0 | | |
Total net periodic benefit cost
|
| | | $ | 1.7 | | | | | $ | 1.4 | | | | | $ | 1.6 | | |
|
2020
|
| | | $ | 0.8 | | |
|
2021
|
| | | | 0.9 | | |
|
2022
|
| | | | 1.3 | | |
|
2023
|
| | | | 1.2 | | |
|
2024
|
| | | | 1.4 | | |
|
2025 – 2029
|
| | | | 7.2 | | |
| | |
December 31
|
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| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Weighted-average assumptions used to determine benefit obligation at year end:
|
| | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 3.25% | | | | | | 4.25% | | | | | | 3.75% | | |
Rate of compensation increase
|
| | | | — | | | | | | 3.50% | | | | | | 3.50% | | |
Weighted-average assumptions used to determine net periodic benefit cost:
|
| | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 4.25% | | | | | | 3.75% | | | | | | 4.25% | | |
Expected long-term rate of return on plan assets
|
| | | | 5.75% | | | | | | 5.25% | | | | | | 5.75% | | |
Rate of compensation increase
|
| | | | 3.50% | | | | | | 3.50% | | | | | | 3.50% | | |
| | |
December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Weighted-average assumptions used to determine benefit obligation at year end:
|
| | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 3.25% | | | | | | 4.25% | | | | | | 3.50% | | |
Rate of compensation increase
|
| | | | 3.50% | | | | | | 3.50% | | | | | | 3.50% | | |
Weighted-average assumptions used to determine net periodic benefit cost:
|
| | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 4.25% | | | | | | 3.50% | | | | | | 4.00% | | |
Rate of compensation increase
|
| | | | 3.50% | | | | | | 3.50% | | | | | | 3.50% | | |
| | |
Target Ranges
|
|
Asset classes: | | | | |
Cash equivalents and other
|
| |
0% – 17%
|
|
Fixed income securities
|
| |
45% – 100%
|
|
Equity securities
|
| |
0% – 28%
|
|
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Cash and cash equivalents
|
| | | $ | 0.4 | | | | | $ | 0.4 | | | | | $ | — | | | | | $ | — | | |
Mutual funds
|
| | | | 5.5 | | | | | | 5.0 | | | | | | 0.5 | | | | | | — | | |
U.S. Government securities
|
| | | | 2.7 | | | | | | — | | | | | | 2.7 | | | | | | — | | |
Municipal/provincial bonds
|
| | | | 0.3 | | | | | | — | | | | | | 0.3 | | | | | | — | | |
Corporate bonds
|
| | | | 12.5 | | | | | | — | | | | | | 12.5 | | | | | | — | | |
Total investments
|
| | | $ | 21.4 | | | | | $ | 5.4 | | | | | $ | 16.0 | | | | | $ | — | | |
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Cash and cash equivalents
|
| | | $ | 0.4 | | | | | $ | 0.4 | | | | | $ | — | | | | | $ | — | | |
Mutual funds
|
| | | | 5.6 | | | | | | 5.6 | | | | | | — | | | | | | — | | |
U.S. Government securities
|
| | | | 2.5 | | | | | | — | | | | | | 2.5 | | | | | | — | | |
Municipal/provincial bonds
|
| | | | 0.3 | | | | | | — | | | | | | 0.3 | | | | | | — | | |
Corporate bonds
|
| | | | 11.0 | | | | | | — | | | | | | 11.0 | | | | | | — | | |
Total investments
|
| | | $ | 19.8 | | | | | $ | 6.0 | | | | | $ | 13.8 | | | | | $ | — | | |
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Income (loss) before income taxes: | | | | | | | | | | | | | | | | | | | |
Domestic
|
| | | $ | 10.9 | | | | | $ | (6.0) | | | | | | (9.8) | | |
Foreign
|
| | | | 17.5 | | | | | | 32.2 | | | | | | 24.7 | | |
Total income before income taxes
|
| | | $ | 28.4 | | | | | $ | 26.2 | | | | | | 14.9 | | |
|
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
(Benefit) provision for income taxes: | | | | | | | | | | | | | | | | | | | |
Current:
|
| | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | 1.9 | | | | | $ | 4.8 | | | | | | 0.1 | | |
State and local
|
| | | | 0.2 | | | | | | 0.1 | | | | | | 0.1 | | |
Foreign
|
| | | | 5.9 | | | | | | 6.4 | | | | | | 4.4 | | |
| | | | | 8.0 | | | | | | 11.3 | | | | | | 4.6 | | |
Deferred:
|
| | | | | | | | | | | | | | | | | | |
Federal
|
| | | | (1.8) | | | | | | (5.1) | | | | | | (15.4) | | |
State and local
|
| | | | 0.3 | | | | | | (1.0) | | | | | | (0.6) | | |
Foreign
|
| | | | (9.0) | | | | | | 0.1 | | | | | | 1.2 | | |
| | | | | (10.5) | | | | | | (6.0) | | | | | | (14.8) | | |
Total (benefit) provision for income taxes
|
| | | $ | (2.5) | | | | | $ | 5.3 | | | | | | (10.2) | | |
|
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Tax provision at federal statutory rate
|
| | | $ | 5.9 | | | | | $ | 5.5 | | | | | | 5.2 | | |
State and local taxes
|
| | | | 0.4 | | | | | | (0.9) | | | | | | (0.2) | | |
Foreign rate differential
|
| | | | 0.7 | | | | | | 1.5 | | | | | | (3.2) | | |
Change in tax rates
|
| | | | (2.2) | | | | | | (0.1) | | | | | | (3.0) | | |
Changes in uncertain tax positions
|
| | | | 0.1 | | | | | | (0.1) | | | | | | (0.8) | | |
Change in valuation allowance
|
| | | | 0.6 | | | | | | (2.0) | | | | | | 0.2 | | |
Impact of U.S. tax reform
|
| | | | — | | | | | | — | | | | | | (8.8) | | |
Impact of Luxembourg restructuring
|
| | | | (6.4) | | | | | | — | | | | | | — | | |
U.S. effects of international operations
|
| | | | 3.1 | | | | | | 6.1 | | | | | | 3.6 | | |
Tax credits
|
| | | | (5.2) | | | | | | (5.5) | | | | | | (4.9) | | |
Other
|
| | | | 0.5 | | | | | | 0.8 | | | | | | 1.7 | | |
Total (benefit) provision for income taxes
|
| | | $ | (2.5) | | | | | $ | 5.3 | | | | | | (10.2) | | |
| | |
December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Accounts receivable
|
| | | $ | 0.7 | | | | | $ | 0.3 | | |
Accrued expenses
|
| | | | 2.1 | | | | | | 1.6 | | |
Inventory
|
| | | | 4.1 | | | | | | 2.0 | | |
Other assets
|
| | | | 1.0 | | | | | | 1.4 | | |
Deferred rent
|
| | | | 0.4 | | | | | | 0.5 | | |
Pension asset
|
| | | | 1.8 | | | | | | 1.9 | | |
Property, plant and equipment
|
| | | | 0.9 | | | | | | 1.1 | | |
U.S. and foreign net operating losses
|
| | | | 15.0 | | | | | | 15.6 | | |
Tax credits
|
| | | | 2.3 | | | | | | 3.3 | | |
Total deferred tax assets
|
| | | | 28.3 | | | | | | 27.7 | | |
Less valuation allowance
|
| | | | (12.4) | | | | | | (11.9) | | |
Net deferred tax assets
|
| | | $ | 15.9 | | | | | $ | 15.8 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Intangible assets
|
| | | | (38.5) | | | | | | (49.2) | | |
Unremitted earnings
|
| | | | (1.2) | | | | | | (1.3) | | |
Other liabilities
|
| | | | (6.4) | | | | | | (5.8) | | |
Total deferred tax liabilities
|
| | | | (46.1) | | | | | | (56.3) | | |
Net deferred tax liability
|
| | | $ | (30.2) | | | | | $ | (40.5) | | |
| | |
Year Ended December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Balance as of January 1
|
| | | $ | 0.9 | | | | | $ | 1.5 | | |
Additions based on tax positions taken in the current year
|
| | | | — | | | | | | 0.1 | | |
Additions based on tax positions taken in prior years
|
| | | | — | | | | | | — | | |
Decreases based on tax positions taken in prior years
|
| | | | — | | | | | | (0.2) | | |
Settlements
|
| | | | (0.1) | | | | | | (0.2) | | |
Currency differences
|
| | | | 0.1 | | | | | | (0.3) | | |
Balance as of December 31
|
| | | $ | 0.9 | | | | | $ | 0.9 | | |
|
2020
|
| | | $ | 3.2 | | |
|
2021
|
| | | | 2.8 | | |
|
2022
|
| | | | 2.6 | | |
|
2023
|
| | | | 2.4 | | |
|
2024
|
| | | | 1.0 | | |
|
Thereafter
|
| | | | 2.2 | | |
|
Less: sublease rental income
|
| | | | (3.7) | | |
| | | | | $ | 10.5 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Product revenues, net | | | | | | | | | | | | | | | | | | | |
Mafco Worldwide
|
| | | $ | 106.3 | | | | | $ | 117.2 | | | | | $ | 119.9 | | |
Merisant
|
| | | | 165.9 | | | | | | 173.8 | | | | | | 168.1 | | |
Total Product revenues, net
|
| | | | 272.2 | | | | | | 291.0 | | | | | | 288.0 | | |
Income (loss) before income taxes | | | | | | | | | | | | | | | | | | | |
Mafco Worldwide
|
| | | | 19.5 | | | | | | 19.8 | | | | | | 22.4 | | |
Merisant
|
| | | | 8.9 | | | | | | 6.4 | | | | | | (7.5) | | |
Total Income before income taxes
|
| | | | 28.4 | | | | | | 26.2 | | | | | | 14.9 | | |
Depreciation expense | | | | | | | | | | | | | | | | | | | |
Mafco Worldwide
|
| | | | 1.6 | | | | | | 1.7 | | | | | | 1.3 | | |
Merisant
|
| | | | 1.4 | | | | | | 1.9 | | | | | | 2.1 | | |
Total Depreciation expense
|
| | | | 3.0 | | | | | | 3.6 | | | | | | 3.4 | | |
Property, plant and equipment, net | | | | | | | | | | | | | | | | | | | |
Mafco Worldwide
|
| | | | 15.2 | | | | | | 13.9 | | | | | | 13.4 | | |
Merisant
|
| | | | 5.2 | | | | | | 5.8 | | | | | | 7.2 | | |
Total Property, plant and equipment, net
|
| | | | 20.4 | | | | | | 19.7 | | | | | | 20.6 | | |
Capital Expenditures | | | | | | | | | | | | | | | | | | | |
Mafco Worldwide
|
| | | | 3.1 | | | | | | 2.5 | | | | | | 1.6 | | |
Merisant
|
| | | | 1.0 | | | | | | 1.6 | | | | | | 1.5 | | |
Total Capital expenditures
|
| | | | 4.1 | | | | | | 4.1 | | | | | | 3.1 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Geographic Information: | | | | | | | | | | | | | | | | | | | |
North America
|
| | | $ | 104.9 | | | | | $ | 104.0 | | | | | $ | 104.0 | | |
Europe, Middle East and Africa
|
| | | | 105.6 | | | | | | 119.3 | | | | | | 117.4 | | |
Asia-Pacific
|
| | | | 47.7 | | | | | | 48.8 | | | | | | 45.8 | | |
Latin America
|
| | | | 14.0 | | | | | | 18.9 | | | | | | 20.8 | | |
Total Product Revenue, net
|
| | | $ | 272.2 | | | | | $ | 291.0 | | | | | $ | 288.0 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Long-Lived Assets* | | | | | | | | | | | | | | | | | | | |
United States
|
| | | $ | 7.8 | | | | | $ | 6.9 | | | | | $ | 7.5 | | |
China
|
| | | | 5.3 | | | | | | 5.2 | | | | | | 5.2 | | |
Czech Republic
|
| | | | 3.3 | | | | | | 3.6 | | | | | | 3.6 | | |
France
|
| | | | 3.1 | | | | | | 2.9 | | | | | | 3.0 | | |
Other Foreign Countries
|
| | | | 1.0 | | | | | | 1.1 | | | | | | 1.3 | | |
Total
|
| | | $ | 20.5 | | | | | $ | 19.7 | | | | | $ | 20.6 | | |
| ASSETS | | | | | | | |
| Current assets | | | | | | | |
|
Cash
|
| | | $ | 1,005,831 | | |
|
Prepaid expenses
|
| | | | 65,714 | | |
|
Total Current Assets
|
| | | | 1,071,545 | | |
|
Security deposit
|
| | | | 38,000 | | |
|
Marketable securities held in Trust Account
|
| | | | 304,283,025 | | |
|
Total Assets
|
| | | $ | 305,392,570 | | |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| | | | | | |
|
Current liabilities – Accrued expenses
|
| | | $ | 19,781 | | |
|
Total Current Liabilities
|
| | | | 19,781 | | |
|
Deferred underwriting fees payable
|
| | | | 11,280,000 | | |
|
Total Liabilities
|
| | | | 11,299,781 | | |
|
Commitments (Note 6)
|
| | | | | | |
|
Ordinary shares subject to possible redemption, 28,502,357 shares at redemption value
|
| | | | 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; 1,497,643 shares issued and outstanding (excluding 28,502,357 shares subject to possible redemption)
|
| | | | 150 | | |
|
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 7,500,000 shares issued and outstanding
|
| | | | 750 | | |
|
Additional paid in capital
|
| | | | 1,066,965 | | |
|
Retained earnings
|
| | | | 3,932,144 | | |
|
Total Shareholders’ Equity
|
| | | | 5,000,009 | | |
|
Total Liabilities and Shareholders’ Equity
|
| | | $ | 305,392,570 | | |
|
Operating costs
|
| | | $ | 350,881 | | |
|
Loss from operations
|
| | | | (350,881) | | |
| Other income: | | | | | | | |
|
Interest income
|
| | | | 4,254,861 | | |
|
Unrealized gain on marketable securities held in Trust Account
|
| | | | 28,164 | | |
|
Other income
|
| | | | 4,283,025 | | |
|
Net Income
|
| | | $ | 3,932,144 | | |
|
Weighted average shares outstanding, basic and diluted(1)
|
| | | | 8,410,915 | | |
|
Basic and diluted net loss per ordinary share(2)
|
| | | $ | (0.02) | | |
| | |
Class A Ordinary Shares
|
| |
Class B Ordinary Shares
|
| |
Additional
Paid in Capital |
| |
Retained
Earnings |
| |
Total
Shareholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2019
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B ordinary shares to Sponsor
|
| | | | — | | | | | | — | | | | | | 7,503,750 | | | | | | 750 | | | | | | 24,250 | | | | | | — | | | | | | 25,000 | | |
Sale of 30,000,000 Units, net of underwriting discounts and offering expenses
|
| | | | 30,000,000 | | | | | | 3,000 | | | | | | — | | | | | | — | | | | | | 283,382,645 | | | | | | — | | | | | | 283,385,645 | | |
Sale of 6,750,000 Private Placement Warrants
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,750,000 | | | | | | — | | | | | | 6,750,000 | | |
Forfeiture of Founder Shares
|
| | | | — | | | | | | — | | | | | | (3,750) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Ordinary shares subject to possible redemption
|
| | | | (28,502,357) | | | | | | (2,850) | | | | | | — | | | | | | — | | | | | | (289,089,930) | | | | | | — | | | | | | (289,092,780) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,932,144 | | | | | | 3,932,144 | | |
Balance – December 31, 2019
|
| | | | 1,497,643 | | | | | $ | 150 | | | | | | 7,500,000 | | | | | $ | 750 | | | | | $ | 1,066,965 | | | | | $ | 3,932,144 | | | | | $ | 5,000,009 | | |
|
| Cash Flows from Operating Activities: | | | | | | | |
|
Net income
|
| | | $ | 3,932,144 | | |
| Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | |
|
Interest earned on marketable securities held in Trust Account
|
| | | | (4,254,861) | | |
|
Unrealized gain on marketable securities held in Trust Account
|
| | | | (28,164) | | |
|
Changes in operating assets and liabilities:
|
| | | | | | |
|
Prepaid expenses
|
| | | | (65,714) | | |
|
Accrued expenses
|
| | | | 19,781 | | |
|
Net cash used in operating activities
|
| | | | (396,814) | | |
| Cash Flows from Investing Activities: | | | | | | | |
|
Security deposits
|
| | | | (38,000) | | |
|
Investment of cash in Trust Account
|
| | | | (300,000,000) | | |
|
Net cash used in investing activities
|
| | | | (300,038,000) | | |
| Cash Flows from Financing Activities: | | | | | | | |
|
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | 294,780,000 | | |
|
Proceeds from sale of Private Placement Warrants
|
| | | | 6,750,000 | | |
|
Proceeds from issuance of Class B ordinary shares to Sponsor
|
| | | | 25,000 | | |
|
Proceeds from promissory note – related party
|
| | | | 274,178 | | |
|
Repayment of promissory note – related party
|
| | | | (274,178) | | |
|
Payment of offering costs
|
| | | | (114,355) | | |
|
Net cash provided by financing activities
|
| | | | 301,440,645 | | |
|
Net Change in Cash
|
| | | | 1,005,831 | | |
|
Cash – Beginning
|
| | | | — | | |
| Cash – Ending | | | | $ | 1,005,831 | | |
| Non-Cash Investing and Financing Activities: | | | | | | | |
|
Initial classification of ordinary shares subject to possible redemption
|
| | | $ | 285,145,870 | | |
|
Change in value of ordinary shares subject to possible redemption
|
| | | $ | 3,946,910 | | |
|
Deferred underwriting fees
|
| | | $ | 11,280,000 | | |
| | |
Year Ended
December 31, 2019 |
| |||
Net income
|
| | | $ | 3,932,144 | | |
Less: Income attributable to ordinary shares subject to possible redemption
|
| | | | (4,069,302) | | |
Adjusted net loss
|
| | | $ | (137,158) | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 8,410,915 | | |
Basic and diluted net loss per ordinary share
|
| | | $ | (0.02) | | |
Description
|
| |
Level
|
| |
December 31,
2019 |
| ||||||
Assets: | | | | | | | | | | | | | |
Marketable securities held in Trust Account
|
| | | | 1 | | | | | $ | 304,283,025 | | |
| | |
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 | | |
| | |
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 | | |