industrials m&a report - hyde park capital united parcel service, inc. transportation fixed...

IndustrialsM&AReport

Q42015

HYDEPARKCAPITAL

MemberFINRA/SIPC

InvestmentBanking|Mergers&Acquisitions| CapitalRaising

HydeParkCapitalAdvisors,LLC701N.FranklinStreetTampa,FL33602Tel:813‐383‐0202

www.hydeparkcapital.com

[email protected](813)383‐0205





KennethBurnsideBusinessDevelopmentOfficerburnside@hydeparkcapital.com(864)905‐9633


HYDEPARKCAPITALInvestmentBanking|Mergers&Acquisitions| CapitalRaising

90%

95%

100%

105%

110%

115%

Dec‐14 Mar‐15 Jun‐15 Sep‐15 Dec‐15

S&P500 S&PGlobalIndustrialsSectorIndex Nasdaq

CapitalMarketsOverview

2

PublicMarketPerformance(LTM)

SelectPublicOfferings– Industrials(Q42015)

PublicCompanyMarketPerformancebySector

Source:S&PCapitalIQ

Major market indices including the Nasdaq and the S&P GlobalIndustrials Sector Index increased 5.9% and 3.4%, while the S&P500 fell by 0.7% over the 12‐month period ended December 31,2015.

The table on the right illustrates select public offerings completedin Q4 2015. Multi Packaging Solutions International Ltd.(NYSE:MPSX), which manufactures and sells specialty packagingsolutions, raised $215 in the largest IPO during the quarter.

The Electrical Equipment, Construction, and IndustrialConglomerates sectors were the industry’s leaders with respect tovaluation during the 4th quarter, trading at EBITDA multiples of11.4x, 10.6x and 10.1x, respectively.

Commentary

5.9%

3.4%

0.7%

($inmillions)

IndustrySector 3Months 12months Revenue EBITDA

Construction 9.3% 6.4% 1.4x 10.6x

ElectricalEquipment 12.3% 7.5% 2.0x 11.4x

Machinery 6.2% (10.9%) 1.3x 9.0x

IndustrialServices 1.6% (0.8%) 2.4x 9.7x

Transportation (1.3%) (17.2%) 1.4x 7.7x

IndustrialConglomerates 13.5% 3.7% 1.6x 10.1x

Materials 8.6% (14.2%) 2.0x 8.4x

MedianChangeinStockPrice EnterpriseValue/LTM

OfferDate Issuer IndustrySectorTransaction

TypeTransaction

Value

12/03/15 BAESystemsHoldings,Inc. Machinery FixedIncome $741

11/19/15 BuildersFirstSource,Inc. Materials Secondary $93

11/16/15 LockheedMartinCorp. Aerospace FixedIncome $1,985

11/13/15 UnitedParcelService,Inc. Transportation FixedIncome $749

11/04/15 HC2Holdings,Inc. Construction Secondary $51

11/02/15 SouthwestAirlinesCo. Transportation FixedIncome $500

10/21/15MultiPackagingSolutionsInternationalLtd. Materials IPO $215

10/20/15 FedExCorp. Transportation FixedIncome $1,238


MiddleMarketM&ATransactionsbyDealSize

U.S.MiddleMarketM&AActivity– AnnualTrends:VOLUME U.S.MiddleMarketM&AActivity– AnnualTrends:VALUE

TotalTransactionVolume

TotalTransactionValue($inbillions)

AnnualMiddleMarketM&AActivity– Industrials

3

As illustrated in the charts below, U.S. Middle Market M&A activity,or deal volume, in the Industrials industry decreased 26% to 323closed transactions during 2015, down from 435 during 2014.

The total value of completed Middle Market M&A transactions inthe Industrials industry fell 18% during 2015 to $47.4 billion,down from $57.6 billion during 2014.

Transactions valued between $100 million and $499 millionexperienced the largest decline in transaction volume during 2015,falling 29% compared with the prior year period.

Commentary

Source:S&PCapitalIQ(middlemarketincludesallcloseddealswithdiscloseddealvaluebetween$10millionand$1billion)

($inbillions)

Lessthan$100M $100‐$499M $500‐$999M Lessthan$100M $100‐$499M $500‐$999M

DealSize Volume Value Volume Value Volume ValueLessthan$100M 278 $9.5 206 $7.4 (26%) (22%)$100‐$499M 129 $28.2 92 $22.2 (29%) (21%)$500‐$999M 28 $19.9 25 $17.7 (11%) (11%)

TotalMiddleMarket 435 $57.6 323 $47.4 (26%) (18%)

%ofMiddleMarketLessthan$100M 64% 17% 64% 16%$100‐$499M 30% 49% 28% 47%$500‐$999M 6% 34% 8% 37%TotalMiddleMarket 100% 100% 100% 100%

2014 2015 %Change


QuarterlyMiddleMarketM&AActivity – Industrials

U.S.MiddleMarketM&AActivity– QuarterlyTrends:VALUEU.S.MiddleMarketM&AActivity– QuarterlyTrends:VOLUME

MiddleMarketM&ATransactionsbyDealSize

($inbillions)



4

As detailed in the table on the right, Middle Market M&A activity inthe Industrials industry decreased 23% during Q4 2015 comparedto Q4 2014; while the value of completed transactions fell 4% to$12.7 billion.

During Q4 2015, transactions valued at less than $100 million sawthe largest declines compared with the prior year period as dealvolume and value within this size range fell 28% and 21%,respectively.

Prior to Q4 2015, Middle Market M&A volume in the Industrialsindustry had declined for four consecutive quarters, although weexpect deal volume will stabilize during 2016.

Commentary

Source:S&PCapitalIQ(middlemarketincludesallcloseddealswithdiscloseddealvaluebetween$10millionand$1billion)Lessthan$100M $100‐$499M $500‐$1,000MLessthan$100M $100‐$499M $500‐$1,000M

DealSize Volume Value Volume Value Volume ValueLessthan$100M 68 $2.3 49 $1.8 (28%) (21%)$100‐$499M 38 $8.1 31 $7.1 (18%) (12%)$500‐$999M 4 $2.8 5 $3.7 25% 33%

TotalMiddleMarket 110 $13.2 85 $12.7 (23%) (4%)

%ofMiddleMarketLessthan$100M 62% 18% 58% 14%$100‐$499M 34% 61% 36% 57%$500‐$999M 4% 21% 6% 29%TotalMiddleMarket 100% 100% 100% 100%

Q42014 Q42015 %Change


RecentM&AActivity– Industrials

SelectAnnouncedM&ATransactions(Q42015)

5

Source:S&PCapitalIQ.

($inmillions)

AnnouncedDate Target Buyer Industry

EnterpriseValue($mm)

EV/Revenue

EV/EBITDA

12/30/15 ThermalDynamicsInternationalCorp.

ZhejiangYinlunMachineryCo.,Ltd. Machinery $56.7 NA NA

12/21/15 RobertsonFuelSystems,LLC HEICOElectronicTechnologiesCorp. Machinery $255.0 NA NA

12/21/15 HussmannCorp. PanasonicCorp.ofNorthAmerica,Inc. Machinery $1,545.0 1.4x NA

12/16/15 UniversalTechnologies,Inc. TheRectorSealCorp. Materials $16.8 NA NA

12/11/15 DuPontCo. TheDowChemicalCo. Materials $69,104.7 2.1x 12.5x

12/10/15 BlountInternational,Inc. AmericanSecurities Machinery $856.9 1.0x 8.2x

12/10/15 EGSystems,Inc. TrugreenHoldingCorp. IndustrialServices $288.2 NA NA

12/03/15 TheInfinityGroup WoodGroupPSN,Inc. Construction $192.0 NA NA

12/01/15 BearTransportationServices,LP ABFLogisticsII,Inc. Transportation $26.0 0.2x NA

11/19/15 WasteControlSpecialists,LLC RockwellHoldco,Inc. IndustrialServices $367.0 NA NA

11/17/15 Airgas,Inc. AirLiquideSA Materials $13,400.4 2.5x 13.7x

11/16/15 EnergySolutions,Inc. WSAtkinsPLC IndustrialServices NA NA NA

11/12/15 LaneIndustries,Inc. SaliniImpregiloS.p.A. Construction $406.0 0.3x NA

11/10/15 MotorCoachIndustriesInternational,Inc.

NewFlyerIndustries,Inc. Construction $455.0 0.7x NA


RecentM&AActivity– Industrials

SelectAnnouncedM&ATransactions(Q42015)

6


($inmillions)

AnnouncedDate Target Buyer Industry

EnterpriseValue($mm)

EV/Revenue

EV/EBITDA

11/05/15 RockRiverEnviromentalServices,Inc.

WasteConnections,Inc. IndustrialServices $225.0 3.0x NA

11/02/15 FurmaniteCorp. Team,Inc. Construction $312.6 0.6x 9.2x

10/29/15 JunoLighting,LLC AcuityBrandsLighting,Inc. ElectricalEquipment $385.0 1.7x 12.0x

10/27/15 CB&IStone&Webster,Inc. WestinghouseElectricCo.,LLC Construction $229.0 NA NA

10/26/15 APREnergyPLC FairfaxFinancialHoldingsLtd. IndustrialServices $837.4 2.4x 8.6x

10/26/15 NorthStarBlueScopeSteel,LLC BlueScopeSteelLtd. Materials $1,481.0 1.3x 8.0x

10/22/15 SecureCommunicationSystems,Inc. BenchmarkElectronics,Inc. Machinery $230.0 NA NA

10/14/15 ProfessionalServiceIndustries,Inc. IntertekGroupPLC Construction $330.0 1.3x 8.3x

10/14/15 FulfillmentTechnologies,LLC SingaporePostEnterprisePrivateLtd. IndustrialServices $175.1 NA NA

10/13/15 WausauPaperCorp. SCAAmericas,Inc. Materials $686.3 1.9x 13.0x

10/08/15 Plaskolite,Inc. CharlesbankCapitalPartners,LLC Materials NA NA NA

10/05/15 Elmer'sProducts,Inc. NewellRubbermaid,Inc. Materials $600.0 NA NA


$3.9

$0.3

$3.3

$2.4

$1.1

$1.7

$5.5

$1.8

$2.8

$1.9

$0.6

$0.6

$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0

Materials

Transportation

IndustrialServices

Machinery

ElectricalEquipment

Construction

21

6

27

16

6

9

35

16

27

21

4

7

0 5 10 15 20 25 30 35 40

Materials

Transportation

IndustrialServices

Machinery

ElectricalEquipment

Construction

Q42014 Q42015

M&AActivitybyIndustrialSector

%Change

%Change

U.S.MiddleMarketM&AActivitybyIndustrialSector:VALUE

7

Source:S&PCapitalIQ(includesallcloseddealswithdiscloseddealvaluebetween$10millionand$1billion).

U.S.MiddleMarketM&AActivitybyIndustrialSector:VOLUME

22%

84%

24%

0%

63%

40%

($inbillions)

50%

29%

29%

200%

74%

22%

Q42014 Q42015


During the 4th quarter of 2015 financial sponsors were activeacross many sectors within the Industrials Industry, specificallyIndustrial Services and Machinery, announcing a number ofsignificant buyouts.

Several notable private equity backed transactions wereannounced during the 4th quarter including American Securities’proposed purchase of Blount International, Inc. for $857 million;Fairfax Financial Holdings Ltd.’s announced acquisition of APREnergy Plc for $837 million; and Bain Capital Private Equity’sannounced purchase of Big Tex Trailer Manufacturing, Inc.

In total, financial sponsors accounted for approximately 15% ofcompleted deal volume and 22% of deal value during Q4 ‘15

SelectPrivateEquityTransactions– Industrials(Q42015)

FinancialSponsorsvs.StrategicBuyers

Private EquityActivity– Industrials

8

Commentary


($inmillions)



AnnouncedDate Target Buyer IndustryEnterpriseValue

12/21/15 BigTexTrailerManufacturing,Inc.

BainCapitalPrivateEquity Machinery NA

12/10/15 BlountInternational,Inc. AmericanSecurities Machinery $857

12/07/15 KysorPanelSystems,Inc. DCubedGroup,LLC Machinery $85

12/07/15 JENSENHUGHES,Inc. GryphonInvestors IndustrialServices NA

12/04/15 CherryHillPhotoEnterprises,Inc.

KeystoneCapital,Inc. IndustrialServices NA

11/26/15 HuntValveCo.,Inc. MayRiverCapital,LLC Machinery NA

11/20/15 CleanVenture,Inc. KinderhookIndustries IndustrialServices NA

11/16/15 GCAServicesGroup,Inc. GoldmanSachsGroup IndustrialServices NA

11/13/15 ATCGroupServices,Inc. BernhardCapitalPartnersManagementLP

IndustrialServices $63

11/12/15 RubyHillMine WatertonGlobalResourceManagement

Materials NA

11/12/15 SpringValleyProject WatertonGlobalResourceManagement

Materials $83

10/26/15 APREnergyPLC FairfaxFinancialHoldingsLtd.

IndustrialServices $837

10/10/15 MarineHydraulicsInternational,Inc.

StellexCapitalManagementLP

Machinery NA

10/08/15 Plaskolite,Inc. CharlesbankCapitalPartners Materials NA

10/01/15 AviationTechnicalServices,Inc. JLLPartners Machinery NA


80%

90%

100%

110%

120%


S&P500 ElectricalEquipment

80%

90%

100%

110%

120%


S&P500 Construction

80%

90%

100%

110%

120%


S&P500 Machinery

IndustrySectorOverview– RecentStockPricePerformance

ElectricalEquipment

Commentary

9

Construction

Machinery

Source:S&PCapitalIQ

The charts included on the following pages detail the recent stockprice performance by sector for the leading public companieswithin the Industrials industry for the trailing 12‐month periodending December 31, 2015. The shaded section is the most recent3‐month period (Q4) for each sector and relative to the S&P 500.

For the 12‐month period ending December 31, 2015, the ElectricalEquipment sector increased the most (up 7.5%), while theTransportation and Materials sectors saw the largest declines,falling 17.2% and 14.2%, respectively.

During Q4 2015, most sectors in the Industrials industryincreased, led by the Electrical Equipment (up 12.0%),Construction (up 9.0%), and Industrial Conglomerates (up 13.5%),respectively.

10.9%

0.7%

0.7%

6.4%

0.7%

7.5%


80%

90%

100%

110%

120%


S&P500 IndustrialConglomerates

80%

90%

100%

110%

120%


S&P500 IndustrialServices

70%

80%

90%

100%

110%

Dec‐14 Mar‐15 Jun‐15 Sep‐15

S&P500 Materials

70%

80%

90%

100%

110%


S&P500 Transportation

IndustrySectorOverview– RecentStockPricePerformance

IndustrialConglomerates

IndustrialServices

10

Transportation

Source:S&PCapitalIQ

Materials

17.2%

3.7%

0.7%

0.7%

0.8%

0.7%

14.2%

0.7%


ClosingPrice %of52 Equity EnterpriseCompany Ticker 12/31/15 WeekHigh Value Value Revenue GrossProfit EBITDA GrossProfit EBITDA Revenue EBITDA

MascoCorp. MAS $28.30 92% $9,771 $11,848 $8,608 $2,527 $1,094 29.4% 12.7% 1.4x 10.8xFortuneBrandsHome&Security,Inc. FBHS $55.50 97% $9,034 $10,028 $4,394 $1,507 $567 34.3% 12.9% 2.3x 17.7xOwensCorning OC $47.03 97% $5,567 $7,543 $5,343 $1,114 $798 20.8% 14.9% 1.4x 9.5xLennoxInternational,Inc. LII $124.90 90% $5,705 $6,588 $3,446 $945 $422 27.4% 12.2% 1.9x 15.6xAOSmithCorp. AOS $76.61 94% $6,887 $6,541 $2,524 $981 $428 38.9% 17.0% 2.6x 15.3xUSGCorp. USG $24.29 74% $3,524 $5,290 $3,805 $679 $465 17.8% 12.2% 1.4x 11.4xArmstrongWorldIndustries,Inc. AWI $45.73 75% $2,547 $3,317 $2,430 $610 $287 25.1% 11.8% 1.4x 11.6xSimpsonManufacturingCo.,Inc. SSD $34.15 89% $1,685 $1,442 $776 $352 $136 45.4% 17.5% 1.9x 10.6x

Average 88% $4,993 $5,821 $3,245 $884 $443 30.0% 14.1% 1.8x 13.1x

Median 90% $5,567 $6,541 $3,446 $945 $428 27.4% 12.9% 1.9x 11.6x

LTMMarginsEnterpriseValue/

LTM LTM

ConstructionandEngineering

IndustrySectorOverview– PublicCompanyAnalysis

BuildingProducts

($inmillions,exceptpershare)

11

Construction


ClosingPrice %of52 Equity EnterpriseCompany Ticker 12/31/15 WeekHigh Value Value Revenue GrossProfit EBITDA GrossProfit EBITDA Revenue EBITDAAECOMTechnologyCorp. ACM $30.03 85% $4,493 $8,639 $17,990 $535 $1,020 3.0% 5.7% 0.5x 8.5xFluorCorp. FLR $47.22 76% $7,084 $6,164 $19,199 $1,204 $1,216 6.3% 6.3% 0.3x 5.1xJacobsEngineeringGroup,Inc. JEC $41.95 87% $5,290 $5,492 $12,115 $1,968 $593 16.2% 4.9% 0.5x 9.3xEMCORGroup,Inc. EME $48.04 92% $3,065 $2,945 $6,656 $940 $353 14.1% 5.3% 0.4x 8.3xKBR,Inc. KBR $16.92 81% $2,458 $1,748 $5,433 $69 ($65) 1.3% (1.2%) 0.3x NMTutorPeriniCorp. TPC $16.74 63% $831 $1,566 $4,922 $419 $198 8.5% 4.0% 0.3x 7.9x

Average 80% $3,746 $3,583 $9,665 $920 $459 9.3% 3.9% 0.4x 7.6x

Median 81% $3,065 $2,945 $6,656 $940 $353 8.5% 4.9% 0.3x 8.1x

EnterpriseValue/LTM LTMMargins LTM



12


ElectricalEquipment($inmillions,exceptpershare)


Ametek,Inc. AME $53.59 93% $13,046 $14,635 $4,010 $1,447 $1,074 36.1% 26.8% 3.6x 13.6xRockwellAutomation,Inc. ROK $102.61 81% $13,924 $13,276 $6,308 $2,703 $1,313 42.9% 20.8% 2.1x 10.1xAcuityBrands,Inc. AYI $233.80 97% $10,164 $9,957 $2,796 $1,192 $458 42.6% 16.4% 3.6x 21.8xHubbell,Inc. HUBB $101.04 86% $5,883 $6,047 $3,410 $1,124 $601 33.0% 17.6% 1.8x 10.1xWoodward,Inc. WWD $49.66 88% $3,280 $4,051 $2,038 $585 $339 28.7% 16.6% 2.0x 11.9xBeldenInc. BDC $47.68 50% $2,060 $3,735 $2,321 $900 $331 38.8% 14.2% 1.6x 11.3xGeneracHoldings,Inc. GNRC $29.77 59% $2,083 $3,096 $1,363 $467 $270 34.3% 19.8% 2.3x 11.5xBradyCorp. BRC $22.98 79% $1,179 $1,319 $1,145 $548 $136 47.8% 11.9% 1.2x 9.7x

Average 79% $6,453 $7,015 $2,924 $1,121 $565 38.0% 18.0% 2.3x 12.5x

Median 84% $4,582 $5,049 $2,558 $1,012 $398 37.4% 17.1% 2.0x 11.4x




ConstructionandFarmMachinery($inmillions,exceptpershare)

13

IndustrialMachinery

Machinery



Caterpillar,Inc. CAT $67.96 74% $41,343 $74,154 $50,225 $11,757 $7,838 23.4% 15.6% 1.5x 9.5xDeere&Co. DE $76.27 78% $25,627 $59,225 $28,821 $6,824 $3,935 23.7% 13.7% 2.1x 15.1xPACCAR,Inc. PCAR $47.40 69% $16,876 $22,166 $19,879 $3,083 $2,859 15.5% 14.4% 1.1x 7.8xCummins,Inc. CMI $88.01 59% $15,836 $16,098 $19,434 $5,030 $2,656 25.9% 13.7% 0.8x 6.1xAGCOCorp. AGCO $45.39 78% $4,024 $5,188 $7,994 $1,661 $713 20.8% 8.9% 0.6x 7.3xTheToroCompany TTC $73.07 93% $4,147 $4,399 $2,391 $836 $361 35.0% 15.1% 1.8x 12.2xOshkoshCorp. OSK $39.04 70% $3,083 $3,980 $6,098 $1,039 $517 17.0% 8.5% 0.7x 7.7xManitowocCo.,Inc. MTW $15.35 67% $2,105 $3,670 $3,538 $856 $314 24.2% 8.9% 1.0x 11.7xJoyGlobal,Inc. JOY $12.61 27% $1,229 $2,213 $3,172 $839 $403 26.4% 12.7% 0.7x 5.5x

Average 68% $12,697 $21,233 $15,728 $3,547 $2,177 23.5% 12.4% 1.2x 9.2x

Median 70% $4,147 $5,188 $7,994 $1,661 $713 23.7% 13.7% 1.0x 7.8x



IllinoisToolWorks,Inc. ITW $92.68 93% $34,850 $39,665 $13,634 $5,573 $3,350 40.9% 24.6% 2.9x 11.8xEatonCorp. ETN $52.04 70% $24,434 $32,585 $21,363 $6,706 $3,396 31.4% 15.9% 1.5x 9.6xStanleyBlack&Decker,Inc. SWK $106.73 96% $16,540 $20,663 $11,309 $4,111 $1,876 36.4% 16.6% 1.8x 11.0xParkerHannifinCorp. PH $96.98 75% $13,770 $15,339 $12,311 $2,944 $1,766 23.9% 14.3% 1.2x 8.7xDoverCorporation DOV $61.31 78% $9,908 $11,932 $7,240 $2,710 $1,381 37.4% 19.1% 1.6x 8.6xFlowserveCorp. FLS $42.08 65% $5,691 $7,151 $4,655 $1,610 $821 34.6% 17.6% 1.5x 8.7xDonaldsonCo.,Inc. DCI $28.66 73% $3,947 $4,379 $2,313 $789 $358 34.1% 15.5% 1.9x 12.2xTheTimkenCompany TKR $28.59 66% $2,477 $3,064 $2,920 $845 $464 28.9% 15.9% 1.0x 6.6x

Average 77% $13,952 $16,847 $9,468 $3,161 $1,676 33.5% 17.4% 1.7x 9.7x

Median 74% $11,839 $13,636 $9,274 $2,827 $1,574 34.4% 16.2% 1.6x 9.2x




TradingCompaniesandDistributors


14

Machinery



UnitedRentals,Inc. URI $72.54 69% $7,172 $15,516 $5,858 $2,566 $1,822 43.8% 31.1% 2.6x 8.5xW.W.Grainger,Inc. GWW $202.59 79% $13,637 $15,277 $10,006 $4,284 $1,594 42.8% 15.9% 1.5x 9.6xFastenalCo. FAST $40.82 84% $11,921 $12,157 $3,869 $1,949 $914 50.4% 23.6% 3.1x 13.3xGATXCorp. GMT $42.55 67% $1,885 $6,071 $1,473 $865 $657 58.8% 44.6% 4.1x 9.2xWatsco,Inc. WSO $117.13 88% $3,801 $4,347 $4,086 $1,000 $352 24.5% 8.6% 1.1x 12.4xMSCIndustrialDirectCo.,Inc. MSM $56.27 68% $3,458 $3,774 $2,886 $1,305 $448 45.2% 15.5% 1.3x 8.4xWESCOInternational,Inc. WCC $43.68 56% $2,259 $3,625 $7,652 $1,532 $463 20.0% 6.0% 0.5x 7.8xEnerSys ENS $55.93 76% $2,611 $2,969 $2,373 $621 $331 26.2% 14.0% 1.3x 9.0xAppliedIndustrialTechnologies,Inc. AIT $40.49 88% $1,648 $1,939 $2,691 $756 $222 28.1% 8.2% 0.7x 8.7xTitanMachinery,Inc. TITN $10.93 64% $230 $867 $1,523 $257 $56 16.9% 3.7% 0.6x 15.5x

Average 74% $4,862 $6,654 $4,242 $1,514 $686 35.7% 17.1% 1.7x 10.2x

Median 72% $3,034 $4,060 $3,378 $1,153 $456 35.5% 14.7% 1.3x 9.1x




EnvironmentalandFacilitiesServices


15

IndustrialServices

DiversifiedSupportServices



CintasCorp. CTAS $91.05 97% $10,375 $11,002 $4,669 $2,014 $895 43.1% 19.2% 2.4x 12.3xIronMountain,Inc. IRM $27.01 65% $5,684 $10,378 $3,034 $1,732 $903 57.1% 29.8% 3.4x 11.5xKARAuctionServices,Inc. KAR $37.03 93% $5,301 $8,167 $2,563 $1,123 $637 43.8% 24.8% 3.2x 12.8xPitneyBowes,Inc. PBI $20.65 84% $4,180 $6,718 $3,625 $2,047 $841 56.5% 23.2% 1.9x 8.0xAveryDennisonCorp. AVY $62.66 94% $5,823 $6,687 $6,117 $1,669 $692 27.3% 11.3% 1.1x 9.7xR.R.Donnelley&SonsCo. RRD $14.72 73% $3,011 $6,444 $11,392 $2,497 $1,064 21.9% 9.3% 0.6x 6.1xCopart,Inc. CPRT $38.01 95% $4,939 $5,071 $1,145 $507 $390 44.3% 34.1% 4.4x 13.0xCorrectionsCorp.ofAmerica CXW $26.49 63% $3,120 $4,361 $1,769 $526 $424 29.7% 24.0% 2.5x 10.3xTheBrink'sCo. BCO $28.86 86% $1,421 $1,736 $3,177 $567 $194 17.9% 6.1% 0.5x 8.9x

Average 83% $4,872 $6,729 $4,166 $1,409 $671 38.0% 20.2% 2.2x 10.3x

Median 86% $4,939 $6,687 $3,177 $1,669 $692 43.1% 23.2% 2.4x 10.3x



WasteManagement,Inc. WM $53.37 95% $24,493 $33,452 $13,152 $4,778 $3,433 36.3% 26.1% 2.5x 9.7xRepublicServices,Inc. RSG $43.99 97% $15,540 $23,001 $9,039 $3,349 $2,393 37.0% 26.5% 2.5x 9.6xStericycle,Inc. SRCL $120.60 80% $10,400 $11,265 $2,775 $1,227 $719 44.2% 25.9% 4.1x 15.7xWasteConnections,Inc. WCN $56.32 98% $6,979 $8,939 $2,112 $942 $709 44.6% 33.6% 4.2x 12.6xRollins,Inc. ROL $25.90 85% $5,659 $5,525 $1,467 $738 $281 50.3% 19.1% 3.8x 19.7xCovantaHoldingCorp. CVA $15.49 67% $2,037 $4,420 $1,648 $542 $354 32.9% 21.5% 2.7x 12.5xCleanHarbors,Inc. CLH $41.65 70% $2,459 $3,675 $3,407 $963 $527 28.3% 15.5% 1.1x 7.0xTetraTech,Inc. TTEK $26.02 92% $1,601 $1,662 $1,719 $316 $189 18.4% 11.0% 1.0x 8.8xSimsMetalManagement,Ltd. ASX:SGM $5.27 55% $1,088 $840 $4,870 $525 $192 10.8% 4.0% 0.2x 4.4xCasellaWasteSystems,Inc. CWST $5.98 83% $243 $773 $567 $176 $104 31.0% 18.3% 1.4x 7.4xSchnitzerSteelIndustries,Inc. SCHN $14.37 63% $389 $577 $1,683 $163 $60 9.7% 3.6% 0.3x 9.6x

Average 81% $6,444 $8,557 $3,858 $1,247 $815 31.2% 18.6% 2.2x 10.6x

Median 83% $2,459 $4,420 $2,112 $738 $354 32.9% 19.1% 2.5x 9.6x




AirFreightandLogistics


16

Transportation

RoadandRail



UnitedParcelService,Inc. UPS $96.23 84% $87,545 $96,514 $58,204 $13,108 $8,386 22.5% 14.4% 1.7x 11.5xFedExCorp. FDX $148.99 80% $42,462 $47,310 $48,562 $13,886 $7,271 28.6% 15.0% 1.0x 6.5xCHRobinsonWorldwide,Inc. CHRW $62.02 81% $9,047 $9,934 $13,622 $1,181 $886 8.7% 6.5% 0.7x 11.2xExpeditorsInternationalofWashington,Inc. EXPD $45.10 87% $8,654 $7,680 $6,789 $931 $748 13.7% 11.0% 1.1x 10.3xAtlasAirWorldwideHoldings,Inc. AAWW $41.34 70% $1,032 $2,448 $1,839 $594 $390 32.3% 21.2% 1.3x 6.3xForwardAirCorp. FWRD $43.01 75% $1,332 $1,383 $917 $234 $135 25.6% 14.7% 1.5x 10.2xHubGroup,Inc. HUBG $32.95 75% $1,192 $1,131 $3,551 $386 $141 10.9% 4.0% 0.3x 8.0x

Average 79% $21,609 $23,772 $19,069 $4,331 $2,565 20.3% 12.4% 1.1x 9.1x

Median 80% $8,654 $7,680 $6,789 $931 $748 22.5% 14.4% 1.1x 10.2x

LTMEnterpriseValue/

LTMMargins LTM


UnionPacificCorp. UNP $78.20 63% $68,695 $80,936 $22,758 $11,408 $10,491 50.1% 46.1% 3.6x 7.7xNorfolkSouthernCorporation NSC $84.59 75% $25,997 $35,340 $10,863 $4,157 $4,161 38.3% 38.3% 3.3x 8.5xCSXCorp. CSX $25.95 69% $25,535 $34,800 $11,811 $4,792 $4,792 40.6% 40.6% 2.9x 7.3xKansasCitySouthern KSU $74.67 61% $8,240 $10,784 $2,463 $1,086 $1,086 44.1% 44.1% 4.4x 9.9xJBHuntTransportServices,Inc. JBHT $73.36 78% $8,619 $9,607 $6,176 $1,227 $1,035 19.9% 16.8% 1.6x 9.3xAMERCO UHAL $389.50 89% $7,632 $9,022 $3,197 $1,034 $1,143 32.4% 35.8% 2.8x 7.9xRyderSystem,Inc. R $56.83 56% $3,023 $8,398 $6,555 $1,467 $1,746 22.4% 26.6% 1.3x 4.8xGenesee&Wyoming,Inc. GWR $53.69 51% $3,095 $5,372 $1,901 $732 $595 38.5% 31.3% 2.8x 9.0xOldDominionFreightLine,Inc. ODFL $59.07 73% $5,067 $5,241 $2,959 $893 $657 30.2% 22.2% 1.8x 8.0xLandstarSystem,Inc. LSTR $58.65 80% $2,601 $2,569 $3,337 $722 $268 21.6% 8.0% 0.8x 9.6xWernerEnterprises,Inc. WERN $23.39 70% $1,699 $1,728 $2,118 $553 $360 26.1% 17.0% 0.8x 4.8x

Average 70% $14,564 $18,527 $6,740 $2,552 $2,394 33.1% 29.7% 2.4x 7.9x

Median 70% $7,632 $9,022 $3,337 $1,086 $1,086 32.4% 31.3% 2.8x 8.0x

LTMEnterpriseValue/

LTMMargins LTM



Airlines


17

Transportation

Marine



DeltaAirLines,Inc. DAL $50.69 96% $40,755 $45,647 $40,704 $13,342 $9,682 32.8% 23.8% 1.1x 4.7xAmericanAirlinesGroupInc. AAL $42.35 75% $29,963 $41,651 $41,520 $14,111 $8,674 34.0% 20.9% 1.0x 4.8xSouthwestAirlinesCo. LUV $43.06 84% $29,130 $28,756 $19,299 $7,024 $4,656 36.4% 24.1% 1.5x 6.2xUnitedContinentalHoldings,Inc. UAL $57.30 77% $21,702 $28,224 $38,141 $13,168 $6,777 34.5% 17.8% 0.7x 4.2xAlaskaAirGroup,Inc. ALK $80.51 92% $10,553 $10,027 $5,527 $2,167 $1,560 39.2% 28.2% 1.8x 6.4xJetBlueAirwaysCorp. JBLU $22.65 83% $7,815 $8,666 $6,268 $2,370 $1,337 37.8% 21.3% 1.4x 6.5xAllegiantTravelCo. ALGT $167.83 70% $2,876 $3,186 $1,230 $522 $434 42.4% 35.3% 2.6x 7.3xSpiritAirlines,Inc. SAVE $39.85 48% $2,903 $2,692 $2,096 $783 $508 37.4% 24.2% 1.3x 5.3xWestjetAirlines,Ltd. WJA $14.67 59% $1,870 $1,714 $3,034 $1,089 $621 35.9% 20.5% 0.6x 2.8x

Average 76% $16,396 $18,951 $17,535 $6,064 $3,805 36.7% 24.0% 1.3x 5.4x

Median 77% $10,553 $10,027 $6,268 $2,370 $1,560 36.4% 23.8% 1.3x 5.3x



KirbyCorp. KEX $52.62 62% $2,927 $3,745 $2,332 $819 $597 35.1% 25.6% 1.6x 6.3xMatson,Inc. MATX $42.63 80% $1,873 $2,329 $1,834 $371 $262 20.2% 14.3% 1.3x 8.9xRandLogistics,Inc. RLOG $1.60 38% $29 $236 $152 $44 $30 28.6% 19.8% 1.6x 7.8xInternationalShipholdingCorp. ISHC $1.45 8% $11 $216 $273 $62 $25 22.7% 9.3% 0.8x 8.5x

Average 47% $1,210 $1,632 $1,148 $324 $229 26.7% 17.3% 1.3x 7.9x

Median 50% $951 $1,282 $1,053 $216 $146 25.7% 17.0% 1.4x 8.2x





18

IndustrialConglomerates

Source:S&PCapitalIQ.*Note:GeneralElectricCo.enterprisevalueandLTMfinancialsexcludesGECapital


GeneralElectricCo. GE $31.15 99% $116,594 $222,792 $146,598 $49,312 $28,420 33.6% 19.4% 1.5x 7.8x3MCompany MMM $150.64 88% $96,956 $106,489 $30,695 $15,112 $8,496 49.2% 27.7% 3.5x 12.5xUnitedTechnologiesCorporation UTX $96.07 77% $86,172 $105,020 $63,978 $17,209 $11,574 26.9% 18.1% 1.6x 9.1xSiemensAktiengesellschaft SIE $86.01 74% $71,632 $91,621 $84,410 $24,381 $9,040 28.9% 10.7% 1.1x 10.1xDanaherCorp. DHR $92.88 95% $66,281 $79,531 $20,662 $11,049 $4,665 53.5% 22.6% 3.8x 17.0xTycoInternational,Ltd. TYC $31.89 72% $13,617 $15,338 $9,902 $3,649 $1,530 36.9% 15.5% 1.5x 10.0x

Average 84% $75,209 $103,465 $59,374 $20,119 $10,621 38.2% 19.0% 2.2x 11.1x

Median 83% $78,902 $98,321 $47,337 $16,161 $8,768 35.2% 18.7% 1.6x 10.1x




19

Materials($inmillions,exceptpershare)

Chemicals

MetalsandMining



TheDowChemicalCo. DOW $51.48 90% $63,161 $80,486 $51,700 $11,181 $8,640 21.6% 16.7% 1.6x 9.3xE.I.duPontdeNemoursandCo. DD $66.60 83% $60,441 $67,099 $32,172 $12,116 $5,525 37.7% 17.2% 2.1x 12.1xMonsantoCompany MON $98.52 78% $46,558 $54,002 $14,350 $7,824 $4,358 54.5% 30.4% 3.8x 12.4xPraxair,Inc. PX $102.40 79% $29,778 $39,708 $11,171 $4,948 $3,633 44.3% 32.5% 3.6x 10.9xAirProducts&Chemicals,Inc. APD $130.11 82% $28,273 $34,061 $9,895 $2,951 $2,835 29.8% 28.6% 3.4x 12.0xTheSherwin‐WilliamsCo. SHW $259.60 88% $24,602 $26,471 $11,304 $5,434 $1,680 48.1% 14.9% 2.3x 15.8xPotashCorporationofSaskatchewanInc. TSX:POT $17.08 50% $14,297 $18,347 $6,303 $2,629 $2,662 41.7% 42.2% 2.9x 6.9xEastmanChemicalCo. EMN $67.51 80% $10,115 $17,199 $9,772 $2,669 $2,280 27.3% 23.3% 1.8x 7.5xCelaneseCorp. CE $67.33 91% $10,368 $12,823 $5,899 $1,453 $931 24.6% 15.8% 2.2x 13.8xW.R.Grace&Co. GRA $99.59 95% $7,312 $9,208 $3,097 $1,155 $568 37.3% 18.3% 3.0x 16.2x

Average 82% $29,491 $35,940 $15,566 $5,236 $3,311 36.7% 24.0% 2.7x 11.7x

Median 82% $26,438 $30,266 $10,533 $3,949 $2,748 37.5% 20.8% 2.6x 12.1x



Freeport‐McMoRanCopper&Gold,Inc. FCX $6.77 28% $7,090 $32,470 $17,317 $5,980 $5,396 34.5% 31.2% 1.9x 6.0xSouthernCopperCorp. SCCO $26.12 78% $20,981 $25,581 $5,263 $2,463 $2,309 46.8% 43.9% 4.9x 11.1xAlcoaInc. AA $9.87 58% $12,423 $21,750 $22,534 $4,465 $3,248 19.8% 14.4% 1.0x 6.7xNewmontMiningCorp. NEM $17.99 64% $9,152 $15,539 $7,930 $4,059 $3,492 51.2% 44.0% 2.0x 4.5xUnitedStatesSteelCorp. X $7.98 29% $1,164 $3,489 $13,074 $1,090 $679 8.3% 5.2% 0.3x 5.1x

Average 52% $10,162 $19,766 $13,224 $3,611 $3,025 32.1% 27.7% 2.0x 6.7x

Median 58% $9,152 $21,750 $13,074 $4,059 $3,248 34.5% 31.2% 1.9x 6.0x




20

Source:CapitalIQ.

Materials($inmillions,exceptpershare)

PaperandForestProducts


InternationalPaperCo. IP $37.70 65% $15,953 $26,041 $22,865 $7,057 $3,777 30.9% 16.5% 1.1x 6.9xDomtarCorp. UFS $36.95 77% $2,356 $3,516 $5,329 $1,109 $697 20.8% 13.1% 0.7x 5.0xResoluteForestProductsInc. RFP $7.57 39% $709 $1,083 $3,806 $988 $350 26.0% 9.2% 0.3x 3.1x

Average 60% $6,339 $10,213 $10,667 $3,051 $1,608 25.9% 12.9% 0.7x 5.0x

Median 65% $2,356 $3,516 $5,329 $1,109 $697 26.0% 13.1% 0.7x 5.0x



MemberFINRA/SIPC

RecentTransactions

HYDEPARKCAPITALInvestmentBanking|Mergers&Acquisitions| CapitalRaisingIntegrity | Expertise| Results

HydeParkCapitalAdvisors,LLC701N.FranklinStreetTampa,FL33602Tel:813‐383‐0202

www.hydeparkcapital.com






KennethBurnsideBusinessDevelopmentOfficerburnside@hydeparkcapital.com(864)905‐9633


industrials m&a report - hyde park capital united parcel service, inc. transportation fixed...

Documents