2015 automotive aftermarket investment report · u.s. auto parts network 2.34 2.95 26.1% 3.34 2.93...
TRANSCRIPT
2015 Automotive Aftermarket Investment Report An Annual Review of Automotive Aftermarket M&A, Equity, and Debt Activity
2
Foreword
Jonathan Carey Managing Director & Global Co-Head +1 617.342.7865 [email protected]
Rex Green Managing Director & Global Co-Head +1 617.342.7886 [email protected]
Treavor Hill Vice President +1 617.342.7929 [email protected]
Yogesh Punjabi Vice President +1 617.342.7927 [email protected]
Matthew Grau Associate +1 617.342.7889 [email protected]
Jack Walsh Associate +1 617.342.7868 [email protected]
Automotive Aftermarket Suppliers Association – Programs and Member Services
Welcome to the 2015 Automotive Aftermarket Investment Report, an annual review of automotive aftermarket mergers and acquisitions, equity, and debt activity. This report is provided to you by Jefferies LLC (“Jefferies”) and the Automotive Aftermarket Suppliers Association (“AASA”). The purpose of this publication is to touch on notable transactions that occurred in 2015 and discuss deal trends in the aftermarket landscape.
The mergers and acquisitions environment has been very active in recent years and 2015 was no exception. 119 sizeable transactions occurred in North America in 2015. As market conditions remain favorable, we expect this volume of notable deals to continue as both strategic and financial investors aggressively look to deploy capital in what remains a fragmented and dynamic industry.
Jefferies Automotive Aftermarket Practice
Jefferies Automotive Aftermarket Investment Banking practice is the only full-service investment banking team to focus exclusively on the entire Aftermarket channel and the only investment bank that brings a global focus to its Aftermarket practice. We offer our clients a full suite of investment banking products, including end-to-end financial advisory services including M&A, equity underwriting, leverage financing, and restructuring. We pride ourselves on our best-in-class execution and intimate knowledge of the opportunities and challenges that exist in today’s Aftermarket. Jefferies is a proud affiliate of the AASA and frequently provides thought-leadership to AASA member companies.
Investment Banking Team
Jay Burkhart Vice President & Chief Strategy Officer +1 919.406.8846 [email protected]
Bailey Overman Senior Analyst +1 919.406.8823 [email protected]
AASA (www.aftermarketsuppliers.org) exclusively serves manufacturers of aftermarket components, tools and equipment, and related products which support 710,000 employees in the United States. AASA is a recognized industry change agent – promoting a collaborative industry environment, providing a forum to address issues and serving as a valued resource for members. AASA is the light vehicle aftermarket division of the Motor & Equipment Manufacturers Association (MEMA). “AASA, The Voice for the Automotive Aftermarket Supplier Industry”
3
Public Equity Performance & Transactions
4
2015 S&P Returns versus Jefferies Aftermarket Sector Indices(1)
Aftermarket v. S&P 500 in 2015
Nearly All Sectors of the Aftermarket Outperform Broad Market
In 2015 the S&P 500 index posted a negative return (-.73%) for the first time since 2009. The S&P’s return was supported heavily by five well-known consumer and tech names (Amazon – +218%, Google – +147%, Microsoft – +119%, Facebook – +134%, GE – +123%), which accounted for nearly all of the S&P’s gains. Without these names’ contributions, the S&P would have returned -3.03% for the year.
Four of the S&P’s ten sectors rose, led by consumer discretionary (+8.4%) and healthcare (+5.2%). 2015 marked the seventh consecutive year of consumer discretionary sector growth; the job market strengthened (+.7% rise in employment), home sales were relatively steady (-3.0% decline), and relatively cheap gasoline (less than $2.50/gallon) allowed consumers to spend more on new cars (+5.7% YoY), restaurants, and online shopping.
The energy, materials, and utilities sectors all experienced double-digit declines, driven by falling commodity prices and the market’s expectation of continued rising interest rates.
The U.S. market’s lackluster performance for 2015 (and the rocky start to 2016) highlights a potential disconnect between Wall Street (facing stock price sentiment headwinds) and Main Street (benefiting from steady consumer spending and a growing job market). One thing is certain, after a six year bull market with the S&P rising approximately +125% investors are wary of being caught in a market correction.
The Aftermarket(1) returned +10.4% in 2015. The sectors that outperformed the Aftermarket Index’s growth were the Service Providers sector, by +70%, followed by Parts Retail & Distribution sector, by 17% – see market weighting graphic on page 6. Within these sectors the companies with the highest stock price outperformance were, Uni-Select (+86.9%), O’Reilly (+31.6), U.S. Auto Parts (+26.1%) and Snap-on (+25.4%).
Aftermarket sales and earnings grew 0.2% and 7.4% in 2015, respectively; the Service Providers and Collision sectors experienced the strongest earnings growth at 12.4% and 9.5%, respectively(2).
2015 marks the eighth consecutive year the Aftermarket has outperformed the S&P 500. A dollar invested ten years ago in the aftermarket would have returned $4.83 versus $1.65 for the broader market in 2015 – and that dollar would have experienced less volatility(3).
Equity analysts are expecting aftermarket earnings(4) to grow at a similar rate in 2016 (+8.2%) – here’s hoping for another great year for aftermarket stocks.
108.6%
112.0% 114.6%
105.7%
110.4%
99.3%
90%
100%
110%
120%
130%
140%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Suppliers Parts Retailers & DistributorsService Providers CollisionAutomotive Aftermarket Index S&P 500
Indices Year over Year Growth
Revenue EBITDA P / E Revenue EBITDA P / E
— 6.3% 12.4% 33.2x 10.0% 17.4% 27.5x
— 2.5% 7.1% 21.7x 3.4% 8.0% 19.9x
— 0.2% 7.4% 19.2x 3.9% 8.2% 17.4x
— (5.5%) 6.8% 13.7x 2.4% 7.0% 12.3x
— 8.8% 9.5% 20.8x 9.0% 10.6% 18.4x
— 3.3% 0.8% 16.6x 4.1% 7.2% 15.9x
2015E 2016P
Source: Capital IQ, Company Filings (1) Jefferies North American Aftermarket Market Weighted Index (2) 2015 revenue and EBITDA earnings are estimated for Q4 2015, where applicable (3) Based on a comparison on the number of days where each index changes price +/- 1% (4) Earnings before interest, taxes, depreciation, and amortization
5
Aftermarket Sector Constituents’ Equity Performance
Source: Capital IQ. (1) Company started trading on 7/1/15. (2) Company started trading on 5/14/15. (3) Trading terminated as of March 3, 2016 after Vista Equity Partners completed acquisition.
$ in USD - $ in Millions Except Per Share Prices
Price Price 2015 Price Highest Current Price 2015YE TEV / Price / as of as of Gain / Price in as of Equity 2015YE EBITDA Earnings Company 12/31/2014 12/31/2015 (Loss) 2015 3/14/2016 Value TEV 2014A 2015E 2016E 2014A 2015E 2016E
SUPPLIERS
Axalta Coating Systems $ 26.02 $ 26.65 2.4% $ 36.50 $ 26.96 $ 6,339 $ 9,555 11.7x 11.1x 10.3x NM 25.2x 20.5x
Cooper Tire & Rubber 34.65 37.85 9.2% 43.94 36.18 2,121 2,051 4.0x 4.6x 4.5x 11.9x 11.2x 11.0x
Dorman Products 48.27 47.47 (1.7%) 53.75 52.17 1,685 1,606 10.5x 9.8x 9.3x 19.5x 18.0x 16.8x
Federal-Mogul Holdings 16.09 6.85 (57.4%) 16.11 9.66 1,158 4,086 6.7x 6.7x 6.1x 8.8x 8.1x 8.9x
Goodyear Tire & Rubber 28.57 32.67 14.4% 35.30 32.41 8,785 13,904 6.2x 5.5x 5.2x 15.2x 10.5x 8.8x
Horizon Global (1) NA 10.37 (31.1%) 15.88 11.67 188 364 8.2x 7.9x 6.1x NA 10.9x 10.0x
Motorcar Parts of America 31.09 33.81 8.7% 41.03 37.05 619 626 17.1x 7.8x 6.9x 41.1x 16.0x 14.1x
Snap-on 136.74 171.43 25.4% 174.52 154.10 9,951 10,788 14.3x 13.0x 11.8x 25.6x 21.3x 18.9x
Standard Motor Products $ 38.12 $ 38.05 (0.2%) $ 45.72 $ 32.64 $ 862 $ 874 6.9x 8.5x 7.4x 15.1x 16.2x 13.7x
Mean (3.4%) 9.5x 8.3x 7.5x 19.6x 15.3x 13.6x
Median 2.4% 8.2x 7.9x 6.9x 15.2x 16.0x 13.7x
PARTS RETAILERS & DISTRIBUTORS
Advance Auto Parts $ 159.28 $ 150.51 (5.5%) $201.24 $ 159.34 $11,023 $12,211 9.8x 9.8x 8.7x 19.8x 19.1x 16.2x
AutoZone 619.11 741.91 19.8% 803.25 796.61 22,412 26,990 12.8x 12.0x 11.3x 23.0x 20.0x 17.8x
Genuine Parts 106.57 85.89 (19.4%) 108.07 95.00 12,949 13,387 10.5x 10.5x 10.1x 18.8x 18.7x 17.4x
KAR Auction Services 34.65 37.03 6.9% 39.87 37.19 5,093 7,959 13.9x 12.1x 11.2x 28.1x 21.5x 18.6x
O'Reilly Automotive 192.62 253.42 31.6% 277.96 271.62 24,997 26,117 17.8x 15.2x 13.8x 34.6x 27.8x 24.4x
U.S. Auto Parts Network 2.34 2.95 26.1% 3.34 2.93 101 116 21.5x 14.2x 10.3x NM NM NM
Uni-Select $ 26.42 $ 49.38 86.9% $ 51.82 41.22 $ 1,058 $ 1,150 12.5x 11.8x 11.6x 27.6x 18.8x 19.2x
Mean 20.9% 14.1x 12.2x 11.0x 25.3x 21.0x 18.9x
Median 19.8% 12.8x 12.0x 11.2x 25.3x 19.6x 18.2x
SERVICE PROVIDERS
Monro Muffler Brake $ 57.80 $ 66.22 14.6% $ 77.00 $ 68.64 $ 2,118 $ 2,432 17.2x 14.8x 12.7x 34.0x 31.9x 27.0x
COLLISION
Boyd Group Income Fund $ 41.10 $ 47.64 15.9% $ 53.67 $ 49.50 $ 811 $ 876 14.8x 12.4x 10.5x 32.4x 27.5x 23.1x
Copart 36.49 38.01 4.2% 39.86 40.50 4,570 4,702 12.0x 11.0x 10.5x 22.6x 22.0x 19.1x
Fenix Parts (2) NA 6.79 (19.6%) 11.92 5.35 137 144 NA NM 10.0x NA NM 27.4x
KAR Auction Services 34.65 37.03 6.9% 39.87 37.19 5,093 7,959 13.9x 12.1x 11.2x 28.1x 21.5x 18.6x
LKQ 28.12 29.63 5.4% 32.25 30.83 9,052 10,524 13.3x 12.5x 11.0x 23.9x 21.0x 18.5x
Solera Holdings $ 51.18 $ 54.83 7.1% $ 56.73 N/A(3) $ 3,687 $ 6,416 15.5x 13.8x 12.7x NM 18.9x 18.0x
Mean 3.3% 13.9x 12.4x 11.0x 26.8x 22.2x 20.8x
Median 6.1% 13.9x 12.4x 10.8x 26.0x 21.5x 18.8x
6
2015 Aftermarket Index Weighting (1)
Size of Box Relates to Each Constituent’s Relative Market Capitalization
Goodyear +14.4%
Dor
man
Pro
duct
s
-1.7
%
Snap-On +25.4%
Axalta Coating +2.4%
Cop
art
4
.2%
LKQ Corp +5.4%
Boy
d G
roup
+1
5.9
%
Solera Holdings +7.1%
O’Reilly Automotive +31.6%
AutoZone +19.8%
Genuine Parts -19.4%
Advanced Auto Parts -5.5%
KAR Auction Services 6.9%
Mon
ro
Muf
fler
B
rake
+1
4.6
%
Federal-Mogul
-57.4%
Mot
orca
r P
arts
+8
.7%
Coo
per
Tire
+9
.2%
Standard Motor
Products -0.2%
Uni-Select
+86.9%
Horizon -31.1%
Fenix Parts -19.6%
U.S. Auto Parts +26.1%
Service Providers Supplier Parts Retailers & Distributers Collision
Negative Change % Positive Change %
2015 Stock Price Performance
… and outperforms in good times
-50%
0%
50%
100%
150%
200%
250%
300%
350%
400%
Jun-09 Jul-10 Sep-11 Oct-12 Dec-13 Jan-15 Mar-16
Service ProvidersParts Retailers & DistributorsSupplierCollisionJefferies' Automotive Aftermarket IndexS&P 500 Index
Source: Capital IQ. (1) Size of box represents individuals 2015 contribution to market weight index. Percentage increase / (decrease) indicate Company’s 2015 stock price performance. Based on market weighting as of 12/31/15.
Aftermarket is recession resistant…
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
Dec-07 Apr-08 Aug-08 Dec-08 Apr-09
Service ProvidersParts Retailers & DistributorsSupplierCollisionJefferies' Automotive Aftermarket IndexS&P 500 Index
(17.7%) (23.7%)
(37.4%)
(45.3%)
+37.1%
+2.1%
Recession Performance
(As of 3/14/16)
+309.4%
+218.1%
+114.2%
+302.2% +288.3%
+354.6%
Post-Recession Performance
Aftermarket Equity Performance During and After Financial Downturn
7
New Aftermarket Public Companies in 2015
Horizon Global designs, manufacturers, and distributes towing, trailer and cargo management products. The Company was created through a tax free spin-off of 100% of Trimas’ Cequent division. The company began trading on the New York Stock Exchange on July 1st, 2015.
The Company has more than 5,700 active customers and generates approximately 75% of its revenue in the U.S. and Australia. Horizon Global’s consumer brands include Reese (towing products), Draw-Tite (trailer hitches), and Tekonsha (brake controllers).
A few of the Company’s 2016 stated revenue drivers include addressing growing world-platform vehicles, engaging with end-users through eCommerce initiatives, and expanding in certain Central and Latin American markets, most notably Mexico and Brazil.
Over the next 18 months Horizon is planning to drive margin improvement by utilizing its global manufacturing footprint in lower cost countries and consolidating its operations in North America.
Fenix Parts, the self-proclaimed 2nd largest recycler of original equipment parts, priced its initial public offering (“IPO”) on May 14th for $8.00 per share. Shortly after its public offering (May 19th), Fenix purchased eight separate collision companies in NY, PA, FL, NJ, and Ontario.
Fenix’s mission is to become a “critical link” in the collision supply chain by buying and dismantling cars, and then distributing those parts in volume to large collision and service chains. Over 80% of Fenix’s revenue is generated from recycled OE parts, which are increasingly being used in repairs as insurers look to save on repair costs.
Fenix is focusing on building out its footprint in the Eastern US, primarily through building a pipeline of additional self-and full-service auto salvage locations. Since its May IPO, Fenix has purchased three additional locations (one in NJ and two in NC). Management states that Fenix’s current acquisition pipeline has approximately ~20 current candidates, collectively generating over $150 million in annual revenue.
Fenix Location Full-Service Locations Self-Service Locations
Ontario (Canada) Ottawa, Ontario Port Hope, Ontario
Ottawa, Ontario Scarborough, Ontario
New York
Binghamton, NY Queensbury, NY Watertown, NY Niagara Falls, NY
Binghamton, NY Elmira, NY
Pennsylvania Pennsburg, PA
New Jersey Rahway, NJ Bayville, NJ*
North Carolina Greensboro, NC* Forest City, NC*
Florida Jacksonville, FL
$1,400
$650 $650
$350
Front Door Rear Bumper
New OE Recycled OE
Fenix Parts
Horizon Global
(1) Analyst estimates as of 11/18/15 from IPO underwriter.
(2) LTM as of September 30, 2015.
~50% Savings
~45% Savings
Illustrative Cost Comparison Analysis: New Vs. Recycled OE Parts
Source: Fenix Investor Presentation (Jan 2016) *Post-IPO acquired locations.
Retail / e-Commerce
OEM/OES Aftermarket
Revenue by Channel
Other
Towing
Trailering
Cargo
Revenue by Product Category
2015 Year End Stats (As of 12/31/15)
Current Price $6.79
Market Cap (MM) $137.1
Revenue (1) $108.0
EBITDA (2) $11.0
As of 3/14/16
Current Price $5.35
Market Cap (MM) $108.1
2015 Year End Stats (As of 12/31/15)
Current Price $8.75
Market Cap (MM) $158.7
Revenue (1) $575.5
EBITDA (2) $38.8
As of 3/14/16
Current Price $11.67
Market Cap (MM) $211.6
8
Mergers and Acquisitions: Notable Transactions & Select Trends
9
Accessories / External 7
Suspension 5
Drivetrain / Transmission
5
Brakes / Friction 4
Collision / Body Parts /
Mirrors 3
Accessories / Internal 2
Chemicals / Car Care 2
Motors / Rotating
Electrical 2
Passenger Car / Truck 86%
Heavy Duty 9%
Powersports 5%
View from 30k Feet
2015 was another strong year for M&A transaction volume, with 119 sizable(1) transactions occurring in North America. Four of the last five years have had over 100 M&A aftermarket transactions, a volume level that is not surprising given that: 1) aftermarket industry drivers have remained favorable (increasing miles driven, growing car PARC, aging fleet), 2) the macroeconomic environment has improved, 3) leverage levels and interest rates have remained conducive to deal-making , and 4) both financial and strategic buyers have significant capital to invest.
Approximately 80% of transactions involved a strategic buyer(1), a level of strategic involvement that is inline with the last five years’ average. Of 2015 deals, 29 had disclosed prices - half above and half below $250 million.
In 44 transactions the target was an aftermarket supplier, a level on par with last year’s supplier M&A volume. A majority of suppliers purchased serve the light-vehicle vehicle market (86%), of this market approximately 68% were purchased by a strategic buyer. Suppliers of external accessories, suspension, and drivetrain categories accounted for approximately 40% of this year’s deal volume.
Disclosed Value
No disclosed value 90Less than 250M 16Greater or Equal to 250M 8Greater than 1B 5
Total 119
Supplier Product Category # of DealsAccessories - External 7Suspension 5Drivetrain / Transmission 5Brakes / Friction 4Collision / Body Parts / Mirrors 3Accessories - Internal 2Chemicals / Car Care 2Motors / Rotating Electrical 2Other 14Total 44
Strategic 68%
Financial 32%
2015 Supplier Aftermarket M&A Metrics
Buyer Type(2) (% of 2015 Supplier Transactions)
Supplier Product Category(2) (% of 2015 Supplier Transactions)
Target Company Vehicle Focus(2) (% of 2015 Supplier Transactions)
Supplier 44
Installer / Service Provider
25
Distributor 14
Retailer 8
Manufacturer 23
E-tailer / Online 2
Software / Systems
3
23 33 12
35
93 116
72 104 94
18 15
10
17
42 20
16
20 25
41 48
22
52
135 136
88
124 119
0
20
40
60
80
100
120
140
2007 2008 2009 2010 2011 2012 2013 2014 2015
Num
ber
of T
rans
acti
ons
Strategic Buyers Financial Buyers
Aftermarket M&A Metrics
Number of Aftermarket Transactions (by Buyer Type)
2015 Aftermarket Transactions (by Target Channel Position)
(1) Includes private equity-owned strategic buyers. (2) According to Jefferies’ internal estimates / tracking.
Aftermarket and Supplier M&A in 2015
10
Select 2015 Aftermarket Transactions
Close Date Acquirer Target Announced Metrics Observations
2/2/2016 (Announced 12/7/2015)
Icahn Enterprises
Pep Boys – Manny, Moe & Jack
Price: $878 Implied EV: $1,265 EV / LTM EBITDA(1): 15.6x EV / LTM Rev(1): .60x
Icahn Enterprises, which also controls publicly-traded Federal-Mogul, a leading parts supplier, is now an owner at every step of the auto parts supply channel (supply, distribution, retail, and installer)
11/10/2015 Borg Warner Remy Price: $938 Implied EV: $1,195 EV / LTM EBITDA(2): 9.3x EV / LTM Rev(2): 1.0x
Acquiring Remy is part of Borg Warner’s strategy to capitalize on fuel economy and emission driven trends; Remy has a rotating electrical line addressing start/stop & hybrid/EV powertrain vehicles
9/29/2015 AP Exhaust Eastern Catalytic Not publicly disclosed Combined company is now the #1 supplier of catalytic convertors to the North American market
9/22/2015 Holley Performance Products
MSD Performance Not publicly disclosed Transaction created one of the largest suppliers of enthusiast products and a dominant supplier of performance fuel systems, ignition parts, and electronics
8/26/2015 The Riverside Company
Arrowhead Electrical Products
Not publicly disclosed Partnering with Riverside, Arrowhead has a significant mandate to make bolt-on acquisitions in both the light-duty vehicle and powersports markets
8/17/2015 Mann + Hummel
Wix Filters(3) Price: $513 Implied EV: $1,335
Gives Mann + Hummel access to US heavy duty PARC and hydraulic filtration markets
8/5/2015 Mavis Tire Somerset Tire Not publicly disclosed Transaction combines the 6th and 7th largest U.S. tire retailers; combined company will operate 324 retail locations in three states
6/26/2015 New Mountain Zep Price: $476 Implied EV: $699 EV / LTM EBITDA(4): 14.8x EV / LTM Rev(4): 1.0x
Well-known chemical brands Blue Coral, Black Magic, and Rain-X now have private equity partner. New Mountain has invested in chemical companies before
6/8/2015 Driven Brands 1-800 Radiator Not publicly disclosed Represents Driven Brand’s first acquisition of a franchised parts distributor
6/1/2015 Icahn Enterprises
Uni-Select USA (rebranded Auto Plus)
Price: $340 Icahn Enterprises is taking notice of the attractive commercial parts distribution sector. It will be interesting to see how the Icahn portfolio evolves in 2016
6/1/2015 Highlander Partners
Niteo Products (f/k/a Valvoline Car Care)
Not publicly disclosed
Ashland sold Niteo to focus on growing core lubricants business and expanding Valvoline Instant Oil Change store base
5/21/2015 Spectrum Brands
Armored Auto Group
Price: $1,400 EV/LTM EBITDA(5): 11.5x EV/LTM Rev(5): 3.1x
Largest acquisition for Spectrum since its 2012 acquisition of Stanley Black & Decker ($1.4B)
DIY auto chemicals is a new product category for Spectrum (car care, refrigerants, and functional fluids)
5/8/2015 NGK Spark Plug
Wells Manufacturing
Price: $251 EV / LTM EBIT(6): 10.1X EV / LTM Rev(6): 1.1X
Gives NGK increased North American distribution and expands NGK product line into ignition, fuel systems, and emissions categories
5/7/2015 BBB Industries ATSCO Remanufacturing
Not publicly disclosed Acquisition deepens BBB’s offering of remanufactured steering and pump products
4/10/2015 Roark Capital Driven Brands Not publicly disclosed Partnering with Roark, Driven Brands has a mandate to grow through acquisitions. Post transaction the Company quickly made three additional acquisitions in 2015 (1-800 Radiator; Carstar; Carstar Automotive Canada)
Notes: 1. Pep Boys offer price = 878M. Implied enterprise value =
1265M. LTM revenue / EBITDA 2079 / 80.9 2. Mann + Hummel transaction ID is IQTR309455353 3. Icahn / Auto Plus:
http://www.autonews.com/article/20151205/RETAIL05/151209893/icahn-buys-into-pep-boys-seeks-retail-sale-to-his-auto-plus
4. Spectrum Brands: http://www.bloomberg.com/news/articles/2015-04-28/spectrum-brands-buys-armor-all-in-1-4-billion-deal From investor deck: Armored LTM EBITDA was 121M and rev was 444M
(1) Trailing period as of 12/8/2015. (2) Trailing period as of 8/3/15. (3) Wix Filters was part of Affinia Group Holdings.
(4) Trailing period as of 4/8/15. (5) Trailing period as of 8/6/15. (6) Trailing period as of 5/8/15.
($Millions)
11
Additional Detail on Recent Icahn Enterprises Acquisitions
On October 26th, Philadelphia-based auto parts and maintenance chain Pep Boys (“PBY”) agreed to a buy-out offer from Bridgestone, for $15.00 a share. Bridgestone is the largest tire manufacturer in the world and it also operates approximately 2,200 tire and service centers in the U.S. (under the Firestone, Tires Plus, and Wheelworks brands). However, shortly after the Bridgestone offer Icahn Enterprises (Nasdaq:IEP) disclosed a 12.1% stake in PBY.
Market speculation occurred as to whether IEP’s intentions were to either acquire the business or to drive Bridgestone to increase its offer for Pep Boys. On December 8th IEP submitted a bid for $15.50 a share and shortly thereafter Bridgestone countered to match IEP’s offer. Icahn Enterprises then raised its offer to $16.50. While awaiting a potential counter-offer from Bridgestone, IEP announced it would outbid any future bids by Bridgestone by $0.10 more per share, up to a maximum of $18.10 per share. In response, Bridgestone revised its bid to $17.00 per share. In an effort to stop the bidding war, IEP bolstered its bid to $18.50 per share.
On December 30th Pep Boys agreed to IEP’s latest offer, which represented an approximate 34.3% upside from trading levels before Bridgestone proposed its first bid. On a trailing twelve month basis, the transaction price represents roughly 0.6x revenue and 15.6x EBITDA. To close the deal (valued at an implied enterprise value of $1.3 billion) IEP paid a $39.5 million termination fee to Bridgestone. The transaction closed February 4th, 2016.
Pep Boys – February 2016
Auto Plus (f/k/a Uni-Select USA) – June 2015
Retail / e-Commerce
OEM/OES
Aftermarket
Service 56%
Do it Yourself
33%
Commercial 11%
IEP announced on February 9th that it entered into a definitive agreement to acquire substantially all of the assets of Uni-Select USA, a leading automotive parts distributor for domestic and imported vehicles, for ~$340 million, which closed June 1st, 2015.
The transaction included the Beck/Arnley Worldparts premium OE parts distributions business, which included 38 distribution centers and satellite locations, 240 corporate-owned jobber stores, and over 3,500 employees. The acquisition excludes the Finish Master paint and coatings business.
Uni-Select USA has been undergoing a rebranding effort as Auto Plus, in an effort to its unite stores under one unified banner while pursing an aggressive growth strategy.
Recent News - As of March 9th, 2016, Brent Windom has been named as the new CEO of Auto Plus and Pep Boys. Windom, a 30-year automotive aftermarket veteran, previously served as the CEO of Auto Plus. Mr. Windom will lead the integration between the two companies with an executive team comprised of seasoned Pep Boys and Auto Plus leaders.
The combined organization employs over 20,000 associates and has 27 distribution centers and 1,069 corporate locations. These corporate locations are comprised of 264 Auto Plus stores, 561 Pep Boys Super Centers, 5 Pep Boys retail-only locations, and 239 Pep Boys Service & Tire Centers. In addition, the company supports more than 530 independently owned stores and over 2,400 independently owned service centers across the U.S.
Source: Jefferies estimates and Company website. (1) TTM Q2 2015.
$1.91 $1.99 $2.06 $2.09 $2.07 $2.08
23.6% 23.0%
21.2% 19.5%
19.2%
20.3%
0%
5%
10%
15%
20%
25%
2009 2010 2011 2012 2013 2014$0.0
$0.5
$1.0
$1.5
$2.0
$2.5(Billions)
553 560 562 567 568 563
24 52 169 185 226 237 577 612
731 752 794 800
2009 2010 2011 2012 2013 20140
200
400
600
800
Super Center Service and Tire Center
(Locations)
Links: http://www.nytimes.com/2015/12/24/
business/dealbook/icahn-vows-to-outbid-bridgestone-for-pep-
boys.html?_r=0
http://www.bizjournals.com/philadelphia/morning_roundup/2016/03/ceo-windom-auto-plus-pep-boys-icahn-sider-
holt.html?ana=yahoo
PR Please frame out the “Pep Boys Information
(As of Q2 2015) and 3 charts below)
Pep Boys Information (As of Q2 2015)
Revenue by Aftermarket Segment(1)
Historical Revenue & Gross Margin # of Locations (by type)
12
M&A Trends - Brand Driven Enthusiast Suppliers Are Consolidating
The last five years have seen an explosion of M&A activity in the performance and functional accessories aftermarket (for both the street performance and truck / jeep market segments).
2015 saw a continuation of this acquisition trend from both private equity-backed and strategic buyers.
While a majority of the transactions were relatively small (less than $50 million purchase price), there were larger transactions, most notably the acquisitions of Driven Performance Brands and MSD Performance.
Despite recent acquisitions, the performance and accessory aftermarkets remain very fragmented compared to other sectors of the traditional aftermarket.
M&A volume has been largely driven by private equity-backed companies seeking manufacturing and distribution synergies. As a result, supply chain constituents are now purchasing from the largest suppliers in the performance aftermarket’s long history.
These suppliers are aggressively expanding by 1) disintermediating traditional distribution to sell direct, 2) rapidly introducing products for new make / model combinations (squeezing smaller competitors out of new and growing markets) and, 3) expanding legacy brands to new product categories.
We expect the pace of consolidation in this market to continue in 2016. Macroeconomic drivers are favorable (low gas prices; steady new and used vehicle sales; low unemployment; and above average disposable income). The opportunity to combine some of the leading platforms / brands and create significant scale is real.
Acquisition History of Large Private Equity-Owned Companies
Select Branded Supplier Acquisitions In 2015 – Performance and Functional Accessories Market
Source: Jefferies internal tracking.
Closed Date
Target Product Categories Acquirer
Dec-15 Stilo Srl Safety (helmets) Simpson Performance
Dec-15 N-FAB Tubular accessories Truck Hero
Dec-15 Colorado Components
ATV wheel products & tires Wheel Pros
Nov-15 DynoJet Dynamometers & electronics New Value Capital
Oct-15 Corvette America
Restoration parts Restoration Parts Unlimited
Sep-15 MSD Performance Ignition & electronics Holley Performance
Sep-15 Driven Performance Brands
Fuel systems, exhaust, & electronics
Sentinel Capital Partners
Aug-15 Bestop Soft tops & bumpers Kinderhook Industries
Jun-15 Powerstop Brakes Sterling Investment Partners
May-15 AIRAID Air filtration K&N Engineering
May-15 RWA Holding (Randy's)
Gear & axle Linsalata Capital Partners
May-15 Spyke Starters & alternators PerTronix
Mar-15 C&R Racing Radiators PWR Performance
Mar-15 Superwinch Winches Kinderhook Industries
Mar-15 ReadyLIFT Lift kits Mangrove Equity Partners
Feb-15 Simpson Performance
Safety gear Bruckmann, Rosser, Sherrill
Jan-15 Poison Spyder Customs
Tubular accessories Transamerican Auto Parts
Jan-15 Bushwacker Off-road exterior accessories
Lund International
Jan-15 ACCEL Performance
Ignition coils MSD Performance
Driven Holley + MSD Performance K&N Derive Lund Transmerican Performance Brands Engineering Performance Truck Hero International Auto Parts
Accessories Select Electronics Driveline Caps / Liners Accessories Driveline Product Exhaust Electronics Air Filtration Calibration Bed Rugs Bars / Flares Rims Categories Fuel Intake Exhaust Air Intake Electronics Tonneau Covers Suspension (present) Ignition Suspension Covers Liners Winches 2016 Roll-N-Lock
Acqu
isitio
n Ye
ar
2015 MSD MSD AIRAID A.R.E. Bridgeway N-FAB ACCEL ACCEL Auto Customs Bushwacker CSC Customs Real Truck Poison Spyder
2014 Diablo Sport BullyDog BAK Ind. Rampage
2013 Mallory Dinan Eng. Spectre SCT Retrax Prestige Tradesman AMP Research
2012 Quick Fuel
2011 Flowmaster Rubicon Express
2010 QuickTime Undercover Advantage
< 2009 Weiand Superchips Mallory HDC BedRug Smittybuilt Smittybuilt Hooker Edge Lakewood Hurst Shifters Trailmaster Trailmaster NOS Racepak Hays B&M Nifty Earls Mr. Gasket Trenz
13
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1960 1970 1980 1990 2000 2010 2020 2030
Elec
tric
al/E
lect
roni
c Co
nten
t of V
ehic
les
Basic Infancy Proliferation Systems Integration
Early Automobiles
HornGenerator
LampsStarter
Radio 8-track Player
Cassette Player
Breakerless Ignition Alternator
Cruise Control
Trip ComputerService IndicatorAntilock BrakingCellular Phone
Electronic Fuel InjectionElectronic Transmission Controls
Single-Point Crash SensorVehicle Immobilizer
CD Player
MultiplexingDiagnosticsNavigation Systems
DVD Player
MP3 PlayerSatellite Radio
Traction ControlAdaptive Suspension
Remote Keyless EntryIntegrated Powertrain ControlElectronic Instrument ClusterCrash-Sensor DiagnosticsTheft-Deterrent Systems
Side-Impact SensorTire-Pressure Sensing
Steer-By-WireBrake-By-WireDrive-By-Wire
Keyless VehicleOccupant SensingRollover Sensing
ADAS & V2XSemi Fully Automated
Adaptive Cruise ControlStability Control
Today
DSRC-based Safety Systems
Predicative Collision AvoidanceIntegrated ADAS
Proactive Control SystemsCollision Impact Mitigation
Sensor-based WarningRide/Handling Control Assist
M&A Trends – Targeting Tech / Electronics-Focused Suppliers
The rapid increase in vehicle technology, particularly the growth of electronically controlled systems, is a strong technology tailwind driving deal activity. More “traditional” aftermarket parts suppliers are looking to acquire existing product portfolios (to quickly address growing vehicle SKU proliferation) and to acquire the engineering / sourcing know-how to continue to service growing product categories.
There were six larger transactions in 2015 (shown to the right). With the exception of Bain Capital’s acquisition of TI Group, the acquisitions each introduced new product categories for the acquiring entity.
In 2016, we expect strong acquisition activity particularly in the engine controllers & sensors, chassis control, fuel injection, and emissions monitoring product categories.
All of the above mentioned aftermarket parts categories benefit from the existing car PARC mix shift towards more vehicles with higher technology powertrains (direct injection, forced induction, start/stop) and more hybrid / electric vehicles. This mix shift is largely driven by the OEM’s rush to meet CAFE 2025 fuel standards and to address consumers’ taste for luxury amenities and improved vehicle drivability.
Growth of Vehicle Electronic Content
Source: CAR 2013, adapted from Hellestrand 2005 and Fedewa 2013.
2.4 6.0
10.0
2005 2009 2010
2015 M&A Transactions with Electronic Product Lines
Closed Date Target Target's Electronic
Products Acquirer Disclosed
Deal Value
Nov-15 Remy International Starters & alternators BorgWarner $1,298
Nov-15 Titan International (Brake & Actuator Business)
Brake components & actuators
DexKo Global –
Jul-15 Wells Manufacturing
Switches, sensors, & control modules
NGK Spark Plug
$251
Jun-15 ATSCO Remanufacturing
Pumps, gears, & steering products
BBB Industries –
Jun-15 TI Group Fuel pumps, fuel sensors, & harnesses
Bain Capital –
May-15 TRW Automotive
Integrated & safety electronics, sensors, & brake control, actuators
ZF Friedrichshafen
–
Source: Jefferies, Capital IQ.
Average Ford Vehicle Lines of Software Code (Millions)
(by Model Year)
Estimates of 100M lines of code in luxury models
Source: Jefferies
($ in Millions)
14
Leverage Finance Commentary
15
Leverage Finance Market Commentary
2015 Select Bond Yields
While the leveraged capital markets remained strong for most of 2015, beginning in Q4 a broad equity market sell-off triggered a credit market slowdown. Overall, leverage loan issuance for the year was $420.7 billion, down 20.3% from 2014. Issuance of loans to finance corporate M&A transactions and to refinance existing bank was strong in 2015. Loan issuance for leverage buyouts or dividend recapitalizations was weak (down ~40% from 2014, a three year low).
Leverage levels also decreased mid-year in 2015, falling from a intra-year high of 6.3x earnings to 5.1x earnings (based on quarterly issuance averages). Pricing also increased significantly during the year. Single B yields began the year at ~LIBOR(1) + 6.0% and ended the year close to ~LIBOR + 8.0%.
Several aftermarket companies tapped the leverage loan market in 2015, including ABRA Auto Body (refinancing), Allison Transmission (refinancing), Autoparts Holdings (terms amendment), American Tire Distributors (refinancing), Dexter Axle (acquisition financing for AL-KO Vehicle Technology), and Service King (refinancing).
While the leveraged capital markets remained strong for most of 2015, beginning in Q4 a broad equity sell-off shifted technical and trading sentiment driving a material downturn
‒ This downturn caught many market makers off-guard resulting in a wave of “hung” financings
With oil prices falling, a commodities overhang began in the credit markets where approximately 12% of the current leveraged issuers are energy related
‒ Fundamental credit quality remained stable aside from these sector-specific issues
Consistent regulatory pressure throughout the year affected leveraged deal-making and M&A lending broadly
‒ Corporate issuers drove 2015 acquisition financing volume while sponsor-backed LBO issuance was down materially (~40% down from 2014, a 3 year low in issuance)
‒ Additionally, highly leveraged deals (6.5x+) all but disappeared from the market
2015 concluded with limited activity as market participants wound down for the year and awaited the Fed actions
Create similar graphs – here for illustration
Source: LCD (1) London Interbank Offered Rate (2) Large LCOs defined as companies with EBITDA greater than $50 million
90
100
110
120
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
Affinia Group American Axle & Manufacturing Cooper Tire & Rubber Dana Holding LKQ Meritor
(Bond price % of Face Value)
Leveraged Loan Issuance
0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%10.00%
L+300
L+400
L+500
L+600
L+700 All BB/B Loans HY Broad Market Index
∆ All BB/B Loans: +107 bps
∆ HY Broad Market Index: +216 bps
L + 625
8.81%
L + 518
6.65%
$465.5
$606.7
$528.1
$96.9 $140.2 $113.2
$73.5
$420.7
0
100
200
300
400
500
600
700
800
900
1,000
$0
$100
$200
$300
$400
$500
$600
$700
2012 2013 2014 Q1'15 Q2'15 Q3'15 Q4'15 2015
Volume Deals
($ in Billions) (Loan and HY benchmark indices )
2015 Leveraged Capital Markets Performance
Average Debt Multiples of Large Corporate LBO Loans(2)
5.0x
6.5x 5.7x 5.5x 5.3x
6.7x 5.9x 5.6x
6.3x 5.6x 6.0x
6.7x 5.8x 5.5x 5.5x 5.6x
5.1x 5.1x 6.0x 5.9x
5.2x 5.9x 6.1x 6.3x
5.7x 5.4x 5.1x
1st Lien/EBITDA 2nd Lien/EBITDA Other Sr Debt/EBITDA
5.6x
Significant mid-year decrease in leverage levels
16
Automotive High Yield Bond Trading Levels
Aftermarket and OE Suppliers / Distributors
Source: Capital IQ, Bloomberg, LCD, Jefferies High Yield Sales. (1) Free Cash Flow defined as EBITDA less Capital Expenditures. (2) Per April 2013 Offering Memorandum. (3) Per February 2015 Offering Memorandum. (4) Per June 2014 Offering Memorandum. (5) Per September 2014 Offering Memorandum (excluding EBITDA and capital expenditures). (6) Per September 2014 Offering Memorandum. (7) Per Q2 reporting package. (8) Per June 2015 Offering Memorandum.
Source: Capital IQ, Bloomberg, LCD, Jefferies High Yield Sales. (1) Free Cash Flow defined as EBITDA less Capital Expenditures. (2) Data taken from Offering Memorandum (“OM”)
($Millions) (data as if 3/14/2016)
High Yield Comparables
Offer Maturity Amount Issue Rating Current Issuer Date Date Outstanding Security Coupon Moody's S&P Price YTW
Accuride Jul-10 Aug-18 $ 310 Secured 9.500% B3 B- 77.00% 22.15% Affinia Group Apr-13 May-21 250 Senior 7.750% Caa2 B- 102.25% 6.95% American Axle & Manufacturing Oct-11 Nov-19 200 Senior 7.750% B2 BB- 105.50% 6.08% American Axle & Manufacturing Sep-12 Oct-22 550 Senior 6.630% B2 BB- 98.00% 7.00% American Axle & Manufacturing Feb-13 Mar-21 400 Senior 6.250% B2 BB- 98.00% 6.72% American Axle & Manufacturing Nov-13 Feb-19 200 Senior 5.130% B2 BB- 97.50% 6.05% American Tire Distributors Feb-15 Mar-22 855 Subordinated 10.250% Caa1 CCC+ 82.50% 14.72% Cooper Tire & Rubber Dec-99 Dec-19 174 Senior 8.000% B2 BB- 111.13% 4.78% Cooper Tire & Rubber Mar-97 Mar-27 117 Senior 7.630% B2 BB- 103.25% 7.19% Dana Holding Jan-11 Feb-21 350 Senior 6.750% B1 BB+ 100.25% 6.66% Dana Holding Jul-13 Sep-21 450 Senior 5.380% B1 BB+ 94.00% 6.68% Dana Holding Jul-13 Sep-23 300 Senior 6.000% B1 BB+ 94.00% 7.03% Dana Holding Dec-14 Dec-24 425 Senior 5.500% B1 BB+ 89.85% 7.06% Gates Jun-14 Jul-22 1,040 Senior 6.000% Caa2 B 72.44% 12.35% JAC Products Sep-14 Oct-19 150 Secured 11.500% B3 B 93.00% 14.02% LKQ May-13 May-23 600 Senior 4.750% Ba2 BB- 94.75% 5.64% Meritor May-13 Jun-21 275 Senior 6.750% B2 B 82.75% 11.13% Meritor Feb-14 Feb-24 450 Senior 6.250% B2 B 76.00% 10.81% Service King Sep-14 Oct-22 300 Senior 7.875% Caa1 CCC+ 87.00% 10.66% Tenneco Dec-10 Dec-20 500 Senior 6.880% Ba3 BB 104.00% 5.91% Tenneco Dec-14 Dec-24 225 Senior 5.380% Ba3 BB 101.25% 5.15% TI Automotive Jun-15 Jul-23 450 Senior 8.750% Caa1 B 89.00% 11.03% UCI International Jan-11 Feb-19 400 Senior 8.630% Ca CCC 30.00% 63.86%
Mean 7.13% 89.77% 11.34% Median 6.75% 94.00% 7.05%
Operating Statistics Reporting LTM LTM LTM Total Debt / Total Debt / Net Debt / Net Debt / EBITDA / FCF(1) / Issuer Date Revenues EBITDA FCF(1) EBITDA FCF(1) EBITDA FCF(1) Interest Interest Accuride 2/26/2016 $ 685.6 $ 75.8 $ 75.8 4.2x 4.2x 3.8x 3.8x 2.3x 2.3x Affinia Group OM(2) 1,453.0 180.0 163.0 5.2x 5.8x 5.0x 5.5x 2.9x 2.6x American Axle & Manufacturing 2/12/2016 3,903.1 553.3 359.8 2.5x 3.8x 2.0x 3.0x 5.6x 3.6x American Tire Distributors OM(2) 4,723.8 234.8 170.7 9.9x 13.6x 9.8x 13.4x 2.2x 1.6x Cooper Tire & Rubber 2/23/2016 2,972.9 554.7 372.2 0.6x 0.8x -0.4x -0.5x 23.3x 15.6x Dana Holding 2/18/2016 6,060.0 618.0 358.0 2.5x 4.4x 1.3x 2.2x 5.5x 3.2x Gates OM(2) 2,966.5 602.6 508.4 6.9x 8.2x 6.6x 7.9x 3.0x 2.6x JAC Products OM(2) 339.8 38.5 34.6 3.9x 4.3x 3.8x 4.2x 2.2x 2.0x LKQ 2/25/2016 7,192.6 852.3 681.8 1.9x 2.3x 1.8x 2.2x 14.7x 11.8x Service King OM(2) 655.7 81.0 74.1 6.8x 7.5x 6.3x 6.9x 2.2x 2.0x Techniplas 2Q 2015 483.4 43.2 27.5 5.0x 7.9x 4.8x 7.6x 1.6x 1.0x Tenneco 2/24/2016 8,209.0 772.0 486.0 1.6x 2.5x 1.2x 1.9x 11.5x 7.3x
TI Automotive OM(2) 3,576.2 457.7 321.1 3.9x 5.6x 3.7x 5.3x 4.4x 3.1x UCI International 11/10/2015 1,003.0 83.7 61.8 5.7x 7.7x 5.2x 7.0x 1.5x 1.1x
Mean 4.3x 5.6x 3.9x 5.0x 5.9x 4.3x Median 4.1x 5.0x 3.8x 4.7x 3.0x 2.6x
17
Jefferies Automotive Aftermarket Practice
18
Jefferies Automotive Aftermarket Practice
Jonathan Carey Managing Director & Global Co-Head +1 617.342.7865 [email protected]
Rex Green Managing Director & Global Co-Head +1 617.342.7886 [email protected]
Treavor Hill Vice President +1 617.342.7929 [email protected]
Yogesh Punjabi Vice President +1 617.342.7927 [email protected]
Matthew Grau Associate +1 617.342.7889 [email protected]
Jack Walsh Associate +1 617.342.7868 [email protected]
Automotive Aftermarket Investment Banking Team
Leading Investment Bank To The Automotive Aftermarket
Jefferies Principal Offices Jefferies Overview
Part of Leucadia, a member of the S&P 500 and Fortune 500, and one of the world’s best known investment companies
Investment banking, sales, trading, and research global presence
$35 billion in assets
725 investment bankers
800 equity sales, trading, and research professionals
Completed more than 310 sell-side transactions since 2013, representing over $285 billion aggregate transaction value
Ranked 5th in the U.S. and 9th globally in our share of the overall financial sponsor M&A fee pool for all transaction sizes
Jefferies has a stronger focus on sell-side M&A than any other major global banking firm
US M&A Advisory < $1 Bn US Ranking by Number of Transactions Announced January 1, 2012 to Present
Arranger Issues
Goldman Sachs 353
JPMorgan 274
Lazard 265
Morgan Stanley 264
Barclays 249
Jefferies 243
RBC Capital 225
Bank of America 224
Raymond James 215
Citi 190
US Leveraged Loans US Ranking by Issuances Leverage Loan Issuances January 1, 2013 to Present
Arranger Issues
Credit Suisse 130
Bank of America 89
Deutsche Bank 86
GE Capital 79
Jefferies 77
Goldman Sachs 76
Morgan Stanley 73
RBC Capital 65
UBS 60
Barclays 59
US Equity Issuance US Ranking by Number of Bookrun Transactions January 1, 2010 to Present
Bookrunner No. of Deals JPMorgan 530
Morgan Stanley 433
BofA-ML 433
Credit Suisse 429
Goldman Sachs 382
Jefferies 357
Deutsche Bank 347
Citi 328
Barclays 259
Stifel 207
StamfordBoston
Jersey CityChicago
Charlotte
Houston
Dallas
Los Angeles
Silicon Valley
San FranciscoDenver
Nashville
AtlantaWashington DC
Albany
New York(Global Headquarters)
Tokyo
Singapore
MumbaiHong Kong(Asia Headquarters)
London(European
Headquarters)
Frankfurt
Zurich
MilanParisDubai
São Paulo
TorontoStockholm
Extensive Experience Uniquely Focused On The Automotive Aftermarket
Since the Team Joined Jefferies in July 2015
Sale to The Riverside Company
Financial Advisor
August 2015
Undisclosed
A portfolio company of Pfingsten Partners, LLC
Sale to Highlander Partners, LP
Financial Advisor
July 2015
Undisclosed
Car Care Products
Sale to Sentinel Capital Partners
Financial Advisor
September 2015
Undisclosed
A portfolio company of Dubin Clark & Company
Sale to Holley Performance Products
Financial Advisor
September 2015
Undisclosed
A portfolio company of Z Capital Partners, LLC
February 2016 Pending
$635,000,000 Sale to
LKQ Corporation Lead Financial Advisor
A portfolio company of Kohlberg & Company, L.L.C.
Suppliers
Accessories
Appearance
Collision Parts
Heavy Duty / Ag
Performance
Powersports
Remanufacturers
Recreational Vehicle
Specialty Chemicals & Lubricants
Specialty Products
Systems Technology Providers
Tires / Wheels
Tools & Equipment
Traditional Hard Parts
Truck / Jeep / Off-Road
Parts Distributors
Accessories
Broadline WD’s / Jobbers
Collision (PBE)
Commercial Distributors (DIFM)
Heavy Duty / Ag
Marine
OES Distributors
Performance
Powersports
Recreational Vehicle
Specialty Chemicals
Tire / Wheel Distributors
Tool & Equipment
Truck / Jeep / Off-Road
Whole Car / Salvage Vehicle Auctions
Parts Retailers
Catalog / Direct Marketers
Heavy Duty / Ag
Mass Merchants
Online Retailers
Performance
Powersports
Recreational Vehicles
Traditional Auto Parts
Truck / Jeep / Off-Road
Used Car Dealers
Retail Service Providers
Accessories
Car Dealers
Collision Repair
Franchisors
Heavy Duty / Ag Service
Large Franchisee Groups
Mechanical Repair
Paint & Body Work
Performance
Powersports
Quick Lube
Repair / Maintenance
Tire Retailers
Truck / Jeep / Off-Road
Warehouse Club
Jefferies Automotive Aftermarket Transactions
20
Important Disclosure
This material has been prepared by Jefferies Group LLC or one of its affiliates as noted below (herein collectively referred to as “Jefferies”).
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