Amplify Snack Brands (BETR) Announces Completion of Tyrrells Acquisition

September 2, 2016 8:52 AM EDT
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Amplify Snack Brands, Inc. (NYSE: BETR) announced that effective today it has completed the acquisition of Crisps Topco Limited and Subsidiaries (“Tyrrells”). Tyrrells is now a wholly-owned subsidiary of Amplify. The Company continues to expect that this acquisition will be accretive to both its 2017 and 2018 diluted earnings per share.

As part of the transaction, Amplify paid approximately £278 million in cash and issued approximately 2.1 million shares of its common stock to Investcorp and members of Tyrrells’ management team. Amplify financed the cash portion of this transaction with proceeds from a $600 million covenant lite term loan. The interest rate on the term loan is a floating rate based upon LIBOR plus 5.50% with a 1.00% floor on LIBOR. A $50 million, five-year revolver adjoins the term loan. Pro forma for the transaction, net leverage is approximately 5.7x. Amplify remains committed to maintaining long-term net leverage in the 4.0x to 4.5x range or less and expects to be within that range by the end of 2017, via organic growth and subsequent free cash generation.

“We took a tremendous step forward to build upon our Better-For-You snacking growth strategy with the acquisition of Tyrrells and its international portfolio of premium snack brands,” said Tom Ennis, Amplify’s President and Chief Executive Officer. “We are excited to welcome David Milner and the entire Tyrrells team to the Amplify family and look forward to significantly broadening our international customer reach, meaningfully diversifying our brand, product, category, geographic and retail presence, as we realize the benefits of operating scale to fuel our future revenue synergies and continued sales and profit growth.”

Jefferies served as the Company’s exclusive financial advisor, and also acted as the lead left arranger and Administrative Agent for the financing. Credit Suisse and Goldman Sachs acted as Joint Lead Arrangers and Bookrunners, and as Syndication Agents. SunTrust served as Documentation Agent for the transaction.

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