AstroNova Inc To Acquire MTEX NS S.A M&A call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brandon Daniel - Atai Capital Management - Analyst : Hey, guys. So if I'm just looking at MTEX Annual Report on their website, they have around 30% EBITDA margins. Is that kind of what we should be expecting from that business moving forward or is IFRS affecting that number some? I know you mentioned growth initiatives there, are those going to affect those margins? Just some color around that would be great. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 09, 2024 / 7:00PM, ALOT.OQ - AstroNova Inc To Acquire MTEX NS S.A M&A call

Question: Brandon Daniel - Atai Capital Management - Analyst : Got it. And then I have a follow-up here. In the deck, you're highlighting a lot of it. There are costs manufacturing -- I think I even see it in your annual reports there. Are you going to be able to utilize their like manufacturing for some of the existing products? Is there any facility consolidation there? Any types of synergies we should be thinking about?

Question: Brandon Daniel - Atai Capital Management - Analyst : Got it. Any synergies side of that, that we should be thinking of? And then I noticed there's a Konica Minolta partnership, could you maybe talk about that a little bit?

Question: John Deysher - Pinnacle Value Fund - Analyst : I was just curious if there are other bidders for the company? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 09, 2024 / 7:00PM, ALOT.OQ - AstroNova Inc To Acquire MTEX NS S.A M&A call

Question: John Deysher - Pinnacle Value Fund - Analyst : Okay. And what -- was the seller actually the management team or was it owned by another entity?

Question: John Deysher - Pinnacle Value Fund - Analyst : OKay. Alright. And there may be other bid. Is there disclosed anywhere the financial results for the last couple of years? Is that disclosed anywhere?

Question: John Deysher - Pinnacle Value Fund - Analyst : Yeah. I'm looking at that, I don't see a lot of disclosure or unless I've missed it in terms of financials.

Question: John Deysher - Pinnacle Value Fund - Analyst : Okay. So they -- and you disclosed the '23 results as well?

Question: John Deysher - Pinnacle Value Fund - Analyst : To flip that 2023 Annual Report up?

Question: Tom Spiro - Spiro Capital - Analyst : How much are you borrowing and at what rate to finance the transaction?

Question: Tom Spiro - Spiro Capital - Analyst : And what rate are you paying on the 18 million and what rate are you paying on the 6?

Question: Tom Spiro - Spiro Capital - Analyst : You just don't have a ballpark idea?

Question: Tom Spiro - Spiro Capital - Analyst : I see. Okay. Do you can you expect the transaction to be accretive in the current fiscal year?

Question: Tom Spiro - Spiro Capital - Analyst : Well, this fiscal year has got quite a ways to run. I think you've only completed three months of it. You've got most of the fiscal year ahead of us.

Question: Tom Spiro - Spiro Capital - Analyst : And I did a quick look at the website that you mentioned. If I looked at this probably and again, it was quick, it looks like the company was founded in 2011. And here we are in 2024, and it seems like it should perhaps going to have sales this year something in the neighborhood of -- on a full year basis, something like $12 million, which is nice growth and no question about it. But I wouldn't call that sort of taking the market by storm, to use your phrase. So is there something in the last year or two or some recent developments that lead you to be particularly optimistic about its growth rates?

Question: Tom Spiro - Spiro Capital - Analyst : So you expect the growth rates we would be experiencing in the next couple of years to exceed the growth rates that the company itself has enjoyed over the last couple of years?