Jerry Erdmann - The Property Advisor

Jerry Erdmann
262-719-4635
[email protected]
SAPUTO,
INC.
(
)
Toronto: SAP
Green Bay, WI Cheese Plant
Absolute Net Lease - Investment
13190 Velp Avenue
Suamico, Wisconsin 54313
PROPERTY FOR SALE
Green Bay, WI Cheese Plant
13190 Velp Avenue
Suamico, Wisconsin 54313
Confidentiality & Disclaimer
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It
is intended to be reviewed only by the party receiving it from The Property Advisor and should not be made
available to any other person or entity without the written consent of The Property Advisor. This Marketing
Brochure has been prepared to provide summary, unverified information to prospective purchasers, and
to establish only a preliminary level of interest in the subject property. The information contained herein
is not a substitute for a thorough due diligence investigation. The Property Advisor has not made any
investigation, and makes no warranty or representation, with respect to the income or expenses for the
subject property, the future projected financial performance of the property, the size and square footage of
the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos,
the compliance with State and Federal regulations, the physical condition of the improvements thereon, or
the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue
its occupancy of the subject property. The information contained in this Marketing Brochure has been
obtained from sources we believe to be reliable; however, The Property Advisor has not verified, and will not
verify, any of the information contained herein, nor has The Property Advisor conducted any investigation
regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or
completeness of the information provided. All potential buyers must take appropriate measures to verify all
of the information set forth herein.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR
AGENT FOR MORE DETAILS.
Page 2 of 9
262-569-5922 | 1288 Summit Avenue, Suite 107-266, Oconomowoc, WI 53066 | www.thepropertyadvisor.com
Green Bay, WI Cheese Plant
13190 Velp Avenue
Suamico, Wisconsin 54313
Tenant Profile
Saputo produces, markets, and distributes a wide array of dairy products of the utmost quality, including cheese, fluid
milk, extended shelf-life milk and cream products, cultured products and dairy ingredients. We are one of the top ten
dairy processors in the world, the largest in Canada, the third in Argentina and the fourth in Australia. In the US, the
Company ranks among the top three cheese producers and is one of the largest producers of extended shelf-life and
cultured dairy products. Our products are sold in more than 40 countries under well-known brand names such as
Saputo, Alexis de Portneuf, Armstrong, Baxter, Dairyland, Dragone, DuVillage 1860, Friendship, Frigo Cheese Heads,
Great Midwest, King’s Choice, Kingsey, La Paulina, Milk2Go, Neilson, Nutrilait, Ricrem, Salemville, Scotsburn, Stella,
Sungold and Treasure Cave. Saputo Inc. is a publicly traded company whose shares are listed on the Toronto Stock
Exchange under the symbol “SAP”.
NUMBER OF EMPLOYEES
Number of plants
12,700
55
Canada Sector
Dairy Division
Bakery Division
24
1
USA Sector
Cheese Division
16
Dairy Foods Division
10
International Sector
Dairy Division (Argentina)
2
Dairy Division (Australia)
2
Dairy Ingredients
USA Sector
Through its Cheese Division (USA), Saputo produces, markets and distributes in the US a variety of cheeses, including
a broad line of mozzarella, American-style and specialty cheeses, such as ricotta, provolone, blue, swiss, parmesan
and romano, which are sold under a variety of the Company’s brand names, including Dragone, Frigo Cheese Heads,
Gardenia, Great Midwest, King’s Choice, Lorraine, Lugano, Salemville, Saputo, Stella and Treasure Cave, as well as
under customer brand names. The Company also converts, markets and sells a broad range of specialty cheeses and,
moreover, holds an important portfolio of import licences for specialty cheeses manufactured abroad. As well, Saputo produces dairy ingredients, including whey powder, whey protein concentrates and dairy ingredient blends.
Through its Dairy Foods Division (USA), the Company produces, markets and distributes in the US a variety of dairy
and non-dairy extended shelf-life products, including cream and creamers, ice cream mixes, whipping cream, aerosol
whipped toppings, iced coffee, half and half and value-added milks, as well as cultured products, such as sour cream
and cottage cheese. These products are manufactured under customer brand names, as well as under the Company’s
own brands.
The product offerings and manufacturing and distribution footprints of the Cheese and Dairy Foods Divisions (USA)
are complementary.
Page 3 of 9
262-569-5922 | 1288 Summit Avenue, Suite 107-266, Oconomowoc, WI 53066 | www.thepropertyadvisor.com
Green Bay, WI Cheese Plant
13190 Velp Avenue
Suamico, Wisconsin 54313
Tenant Financial Rating
Name: Market Segment: Long Term Rtg: Saputo Inc.
Corporates
Baa1, 21 Nov 2014
Long Term Watch: Not on Watch
Outlook: Stable, 10 Nov 2014
Industry: Consumer Products;
PCKD FOOD
Domicile: Canada
Global Credit Research - 21 Nov 2014
$250 million of debt rated
Toronto, November 21, 2014 -- Moody’s Investors Service assigned a Baa1 senior unsecured rating to Saputo Inc.’s (Saputo) $250 million in notes issued under its $2 billion medium term note program, rated (P)Baa1. The company plans
to use the net proceeds to repay existing debt. The ratings outlook is stable.
RATINGS RATIONALE
Saputo’s Baa1 senior unsecured rating is primarily driven by the company’s long history of strong credit metrics, a
public leverage target that provides cushion for growth initiatives, good geographic and product diversification,
good market share positions, and strong free cash flow after modest dividends. Growth has come almost entirely
from acquisitions, which the rating anticipates will continue but with disciplined execution. The rating also reflects
the company’s established platform outside Canada from which to serve Asia and other emerging markets, where
consumption of dairy products is growing. The company’s low EBIT margins relative to rated peers, declining per
capita milk consumption in North America, the potential for food safety recalls and stringent regulation in Canada are
also considered in the rating.
Moody’s expects Saputo to maintain strong liquidity, supported by cash around $50 million, annual free cash flow
above $330 million, more than $300 million of availability under its US$500 million unsecured credit facility that matures in July 2019, and solid headroom under its leverage and interest coverage covenants (more than 50% cushion).
Moody’s liquidity assessment excludes the company’s uncommitted facilities.
The stable outlook reflects Moody’s view that Saputo will continue to maintain strong credit metrics, despite its
acquisition growth orientation.
A rating upgrade would require Saputo to further enhance diversification and build stronger brands while sustaining
Debt/ EBITDA below 2x and EBIT/Interest above 10x. A downgrade could occur if Debt/ EBITDA was sustained above
2.5x and EBIT/Interest below 6x.
Financial Statements: Go Here.
http://www.saputo.com/uploadedFiles/Saputo/investors-and-medias/financial-documents/SAP_RA2014_EN.pdf
Page 4 of 9
262-569-5922 | 1288 Summit Avenue, Suite 107-266, Oconomowoc, WI 53066 | www.thepropertyadvisor.com
Green Bay, WI Cheese Plant
13190 Velp Avenue
Suamico, Wisconsin 54313
Area Map
Page 5 of 9
262-569-5922 | 1288 Summit Avenue, Suite 107-266, Oconomowoc, WI 53066 | www.thepropertyadvisor.com
Green Bay, WI Cheese Plant
13190 Velp Avenue
Suamico, Wisconsin 54313
Building Footprint
Page 6 of 9
262-569-5922 | 1288 Summit Avenue, Suite 107-266, Oconomowoc, WI 53066 | www.thepropertyadvisor.com
Green Bay, WI Cheese Plant
13190 Velp Avenue
Suamico, Wisconsin 54313
Page 7 of 9
262-569-5922 | 1288 Summit Avenue, Suite 107-266, Oconomowoc, WI 53066 | www.thepropertyadvisor.com
Green Bay, WI Cheese Plant
13190 Velp Avenue
Suamico, Wisconsin 54313
Offering Summary
• Single Tenant Industrial / Food Processing
• Absolute Net Leased Cheese Plant
• High Quality Credit Tenant.
Price:$7,000,000
Square Feet:134,596
12.2 Acres
Lot Size:
Year Built:1985
Additions: 2002 & 2008
Financial Proforma
Price:$7,000,000
Down Paymant (25%):$1,750,000
Loan Amount:$5,250,000
Interest Rate:4.75%
20 Year Terms
Amortization:
Monthly Payment:$33,927
($407,124 Annualized)
Net Rent:$854,932
Miscellaneous Expense:$10,000
Reserves:$17,000
Estimated NOI:$827,932
CAP Rate:11.83%
Debt Service:$407,124
Debt Service Coverage Ratio:2.03
Net Cash Flow After Debt Service:
$420,808
Simple Cash on Cash Return
24%
Page 8 of 9
262-569-5922 | 1288 Summit Avenue, Suite 107-266, Oconomowoc, WI 53066 | www.thepropertyadvisor.com