DS Parent Inc.

Overview Key strengths Key risks Recurring revenue base with long-term secular growth tailwinds. Participation in the highly competitive and fragmented food packaging industry. Moderate geographic and end-market diversity. Small scale and scope of operations. Financial sponsor ownership increases the risk of releveraging. DS Parent in January 2024 completed the acquisition of ETG, a supplier of extrusion equipment and services. We expect the acquisition to add an incremental $36 million in EBITDA on a run-rate basis. ETG?s equipment is used to extrude resins into various shapes, sizes, and profiles used in infrastructure projects, water management, packaging, and other industrial applications. In our opinion, the acquisition will moderately improve the diversity of DS Parent?s product portfolio and increase its geographic presence in

...We believe the Extrusion Technology Group (ETG) acquisition will complement DS Parent Inc.'s business. DS Parent in January 2024 completed the acquisition of ETG, a supplier of extrusion equipment and services. We expect the acquisition to add an incremental $36 million in EBITDA on a run-rate basis. ETG's equipment is used to extrude resins into various shapes, sizes, and profiles used in infrastructure projects, water management, packaging, and other industrial applications. In our opinion, the acquisition will moderately improve the diversity of DS Parent's product portfolio and increase its geographic presence in Europe and surrounding regions. While ETG's margins are similar to those of DS Parent, in the low-double-digit percent area, we believe management can execute on cost synergies to improve this over time....

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