an introduction to platinum equity

An Introduction to Platinum EquityApril 2018

Copyright © 2018 Platinum Equity, LLC. All Rights Reserved. “Mergers. Acquisitions. Operations.” is a service mark and “M&A&O” and “Platinum Equity” are registered service marks of Platinum Equity, LLC. Other trademarks and service marks belonging to affiliates of Platinum Equity and appearing herein are the property of such affiliates. It is not Platinum Equity’s intention to claim as its own any third-party trademark or service mark that may appear in this material.

Platinum Equity at a Glance

Overview

• Founded in 1995 by Tom Gores, an entrepreneur and

business operator

• Headquartered in Los Angeles with offices in Boston,

Greenwich, New York, London, and Singapore

• Highly differentiated investment approach: M&A&O®

– Fully integrated, operations intensive, execution focused

– Large team of in-house operations specialists

• Experienced and stable leadership team

• Excellent track record and cycle-tested over more than

20 years

$13BAssets Under Management

200+Acquisitions Since 1995

$23B+Portfolio Company Revenue

Fund History

Pre-Fund (1995–2004)

$500M

Fund I (2004 Vintage)

$700M

Fund II (2007 Vintage)

$2.75B

Fund III (2012 Vintage)

$3.75B

Fund IV (2016 Vintage)

$6.5B

2

Portfolio company revenue as of December 31, 2017. Pre-fund cash invested and Platinum Equity Capital Partners Fund I, II, III, and IV total capital commitments.

Consumer / Retail

Finance

Healthcare

Industrials

Media &Telecom

Natural Resources

Technology

30+ Portfolio Companies with 100K+ Employees Across 7 Continents

Industry Agnostic Approach

Broad Expertise and Global Reach

3

Reflects portfolio company headcount by continent as of December 2017.

Excludes Ryerson and Key Energy.

50k+

4k+

16k+36k+

3k+

800+

~450

A Flexible Investment Style

Investment Criteria

4

• Ability to drive operational improvements

• Long-term customers and stable revenue

• Business models with significant variable

cost structure

• Well-positioned in mature markets

• Can grow through acquisitions or investment

• Positive or negative EBITDA

Experts in Complex TransactionsBusinesses with

Operational Opportunities

Corporate Divestitures

Public-to-Private

Private Transactions

Special Situations

$100M–$5B+

Enterprise

Value

$0–$1.2B

Historical Equity

Deployments

$2B

Capacity to Write

Equity Checks Up to

Acquiring Non-Core Divisions of the World’s Largest Corporations

Core Competency

5

Acquired 65% of Caterpillar Logistics

Services, a non-core asset from

Caterpillar, which retained a 35%

stake. Rebranded as Neovia

Logistics.

The “O”

• Maintained strong relationship with

Caterpillar that also continued as a

customer

• Revamped and invested in once-

dormant sales force

• Acquired complementary business

MIQ Contract Logistics

Acquired national ingredient

distributor JM Swank as ConAgra

looked to re-focus the company’s

strategy.

The “O”

• Grow customer base and enhance

route density

• Partner with management team to

improve operations

• Seek opportunities to grow the

business through add-on

acquisitions

Acquired the Network Power business

from Emerson, rebranded as Vertiv.

Emerson retained a minority interest

in the business.

The “O”

• Build on portfolio of product and

service offerings for power, thermal

and IT management capabilities

• Rationalize complex systems

landscape inherited through

multiple acquisitions

• Emphasize growth, speed, agility,

and profitability

Acquired 70% of Sensis, a leading

print and online directory provider in

Australia, from Telstra, which retained

a 30% stake.

The “O”

• Transition to a stand-alone

enterprise

• Execute on management’s plan to

re-design business processes and

increase operating efficiency

• Renew focus on the core

directories business including SEM

and TrueLocal

Status

Divested: Sold February 2015

Status

Current: Acquired July 2016

Status

Current: Acquired November 2016

Status

Current: Acquired February 2014

Non-Core Divestitures/Complex Carve-Outs

A market-leading North

American oilfield services

provider

Rebranded as

HydroChem. Provider

of industrial services

to the oil, gas and

energy industries

Global manufacturer of

capacitors used in a

broad range of electronics

Rebranded as AEES.

Provider of wire harness

and electrical distribution

products to automotive

OEMs and suppliers

Provider of wind turbine

parts and services

Australian print and

online directories

business

Local daily newspaper

business

Marine transport

services and barge

manufacturing

Rigid metal and plastic

container manufacturing

Portable sanitation and

related site service

solutions

Rebranded as Neovia

Logistics. Global integrated

logistics services provider

Rebranded as Exterion

Media. European out-

of-home media

company

Rebranded as Vertiv.

Provider of mission-critical

infrastructure technologies

Distributor of construction

fasteners and non-lumber

building products in North

America

Creating Value Across Transaction Types

6

Metals processing

and distribution

Special Situations

Public-to-Private

Traditional Private Equity

Distressed Businesses/ Industries in Transition

Mission-critical

services for U.S.

government

customers

Equipment rental for

electronic test and

measurement

equipment

U.S.-focused IT

solutions provider

Equipment rental services

provider in the U.S.

primarily serving

commercial contractors

A global leader in air

cargo handling and airline

ramp and passenger services

Well-informed, seamless

transactions

• Ability to close with speed and certainty

• Understand business operations better

• Find value and opportunities where

others do not

The Platinum Difference: M&A&O®

7

People Process Results

M&A Execution

Company

Management

Portfolio Operations &

Transitions Operations

Unique ability to unlock value

• Apply disciplined operational

improvements to build enterprise value

• Collaborate with management to

empower them to drive change

• Invest in systems for long-term growth

At Platinum, the “O” is fully integrated into everything we do.

Operational toolkit

• Enhancing Revenue Growth

• Margin Expansion

• Production Rationalization

• Pricing Strategy

• CapEx investments to take

advantage of strategic opportunities

• Cost Reduction

• Restructuring

Integration at the root level

• In-house operations specialists dig in

from the very beginning

• Unique expertise drives thoughtful

diligence and tailored solutions in

often complex situations

• Transition planning starts early,

ensuring seamless carve-outs

• M&A stays engaged post-close to

build enterprise value

It starts with our people –

real operators

• Our operators are in-house. They

come from industry

• They know how to drive change from

the ground up

• Hands-on expertise across many

functional areas:

‒ Manufacturing

‒ IT

‒ Distribution

‒ Supply Chain

‒ Procurement

‒ Real Estate

‒ HR & Benefits

‒ Treasury & Cash Management

‒ Sales & Marketing

‒ Corporate Communications

‒ Legal

‒ Tax

‒ Accounting

Evolution of the “O” Playbook

Fund III / Fund IVPre-Fund / Fund I Fund I / Fund II Fund II / Fund III

Digital Transformation

Operations 4.0

Culture, Intensity, Cost,

and Balance Sheet

Operations 1.0

Operational Excellence

and Merger Integration

Operations 2.0

Growth, Pricing and

Margin Expansion

Operations 3.0

8

Transacting with Industry Leaders

9

JobView

33 Deals in 12 Months

7 Platform Acquisitions 6 Divestitures

20 Add-On Acquisitions

WS Packaging Group

February 2018

Securus

November 2017

Pattonair

October 2017

United Site Services

August 2017

American Traffic

Solutions

May 2017

Staples ANZ (Winc)

April 2017

Keen Transport

December 2017

ASCO (from Vertiv)

October 2017

NILCO

October 2017

Aquilex (HydroChem)

October 2017

KEMET

September 2017

Quark

June 2017

GeoStructures (Terratest)

January 2018

OfficeMax AUS (Winc/Staples ANZ)

February 2018

Macfadden & Associates (PAE)

February 2018

Geist (Vertiv)

February 2018

Government Payment Services

(Securus)

December 2017

Energy Labs (Vertiv)

December 2017

A Company (USS)

December 2017

Jobview (Securus)

December 2017

TDSL (PAE)

November 2017

Tidy Coast (USS)

November 2017

Fischer Tech (Pearl Engineered

Solutions)

November 2017

FarWest Sanitation & Storage

(USS)

October 2017

Williams Sanitary (USS)

October 2017

Crew2 (ILG)

September 2017

NCC (TSI)

August 2017

Capital Rentals, Inc. (BlueLine Rental)

July 2017

FCi Federal (PAE)

June 2017

Reflects deals done April 2017–March 2018

Husky Injection Molding

Systems

March 2018

Lam Site Services (USS)

December 2017Highway Toll Administration (ATS)

March 2018

Lentz Milling Company (JM Swank)

February 2018

Sold to U.S. LUMBER GROUP

Building Products

October 2017

Sold to Stone Canyon

Industries for $2.4B

Packaging

August 2016

$382M Purchase Price

Equipment Rental

Public-to-Private

August 2016

Select Activity Highlights

11

Select Acquisitions Select Divestitures

$460M Revenue

Industrial Services

Private Transaction

August 2017

$477M Revenue

Food Distribution

Divestiture from ConAgra

July 2016

$4B Purchase Price

Industrial Technology

Divestiture from Emerson

November 2016

Sold Mactac Europe to Avery

Dennison for €200M

Packaging

August 2016

Sold Mactac NA to LINTEC

Packaging

December 2016

Sold to Schneider Electric

for $1.25B

Divestiture from Vertiv


October 2017

Our Current Portfolio

Current Portfolio

13

Company Overview Description

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Public-to-Private

$991 Million

Transportation & Logistics

December 2010

Transports dry and liquid cargo by barge on the U.S. inland

waterways, and provides shipbuilding and repair services.

Acquired AEP River Operations in November 2015.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Private Transaction

$340 Million

Business Services

May 2017

Acquired from founders and private equity owners.

Transportation solutions company that provides road safety

cameras, processing of traffic violations, and management and

processing of tolls and fleets in the U.S. Acquired Highway Toll

Administration in March 2018.

Transaction Type:

Revenue:

Industry:

Acquisition Date:


$1.0 Billion

Technology

November 2013

Embedded Computing division develops embedded computer

systems for OEMs and systems integrators. Embedded Power

division designs and manufactures power conversion products.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Divestiture from Volvo

$735 Million

Equipment Rental

January 2014

Provider of small- to medium-sized construction rental

equipment with a network of 130+ rental stores across North

America.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Divestiture from Broadway Industrial Group

$189 Million

Manufacturing

December 2016

Acquired the Broadway Foam Plastics Solutions business,

along with Compart Flow Control Devices. Broadway is a

supplier of protective packaging solutions, insulation and

component products. Compart is a supplier of high-precision,

machined, metal components including valves, fittings,

sensors, and related components.

Current Portfolio (Cont’d)

14


Transaction Type:

Revenue:

Industry:

Acquisition Date:

Divestiture from United Technologies

$28 Million

Natural Resources

August 2012

Provider of wind turbine components and services. Total

installed base of over 700 Clipper turbines at customer sites in

the U.S. and Mexico.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Divestiture from Multiple Sellers

$19 Million

IT Services

October 2001

Processes freight bills, mines data, and consults on logistics of

the global freight market.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Private Transaction

$242 Million

IT Services

May 2016

Acquired from private sellers, including the two founders.

Value-added reseller of storage, backup, recovery, and cloud

architecture systems.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Divestiture from WorldCom

N/A

Telecom

March 1997

Provides billing and back-office outsourcing services to

telecommunications carriers, resellers, agents, and service

providers.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Public-to-Private

$305 Million

Equipment Rental

August 2016

Equipment rental company providing electronic test and

measurement equipment to customers in the U.S., Europe

and Asia.


15


Transaction Type:

Revenue:

Industry:

Acquisition Date:

Divestiture from Royal Ten Cate

$75 Million

Diversified Industrials

March 2015

Manufacturer of paper transport, fusing and image transfer

rollers as well as insulation used in thermal and acoustic

capacities and gaskets for use in cash handling and automotive

applications.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Divestiture from CBS Corporation

$483 Million

Media

September 2013

A leading outdoor media company, among the largest out-of-

home media and billboard businesses in Europe.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Private Transaction

$314 Million

Building Products & Services

September 2016

Acquired from affiliates of the company’s founders. Supplier

and installer of pre-cast concrete walls, primarily for the

construction of distribution centers, data centers and retail

stores. Fabcon offers in-house design, engineering, production,

installation, and finishing capabilities.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Multiple

$147 Million

Hospitality

Multiple Acquisitions

The Hotel Portfolio comprises 12 hotel and hospitality

businesses operating in various locations across the U.S.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Private Transaction

$1.2 Billion


March 2018

Global supplier of injection molding equipment and services to

the plastics industry, and a leading provider of PET systems,

aftermarket tooling, medical molds, and specialty closure

molds.

Hotel Portfolio


16


Transaction Type:

Revenue:

Industry:

Acquisition Date:

Private Transaction

$664 Million

Building Products & Construction

March 2017

Acquired from a private equity seller. Provider of outsourced

design center and installation services to homebuilders for

new-build housing construction as well as repair and remodel

services to multi-family property owners.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Public-to-Private

$567 Million


October 2016

Diversified manufacturer of textiles with operations in the U.S.,

Mexico and China.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Divestiture from ConAgra Foods

$448 Million

Food & Beverage

July 2016

National, full-line food ingredient distributor, operating from 24

distribution locations across the U.S.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Distressed-for-Control

N/A

Natural Resources

December 2016

North American market leader in the provision of rig-based well

servicing, fishing and rental, fluid management, and coiled

tubing services. Platinum acquired a controlling interest in

December 2016, publicly traded on NYSE: KEG.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Multiple (CD, Bankruptcy, Private)

$394 Million

Chemicals

November 2008

Manufactures and distributes metal powders and pastes used

in industrial and commercial applications worldwide. Previously

operated as SCM Metal Products, Ecka Granules, and

ACuPowder International. Rebranded as Kymera International.


17


Transaction Type:

Revenue:

Industry:

Acquisition Date:

Private Transaction

$2.4 Billion

Aerospace, Defense & Government Services

March 2016

Purchased from a private equity seller. Provider of integrated

global operation and mission critical support services to U.S.

government agencies and international organizations.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Private Transaction

$476 Million


October 2017

A leading global aerospace and defense supply chain service

provider.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Private Transaction

$235 Million


April 2015

Purchased as Ying Shing from the founder. Vertically

integrated manufacturer of plastic injection molded and metal

stamping components. Rebranded as Pearl Engineered

Solutions.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Divestiture from ITOCHU

$1.4 Billion

Building Products

May 2015

One of the largest 2-step distributors of construction fasteners

in North America. One of the largest building products

distributors in North America. Proprietary "Grip-Rite" brand is

#1 construction fastener brand in U.S.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Public-to-Private

N/A

Metals & Mining

October 2007

Processes, fabricates and distributes metal sheet, coil, plate,

and long products through service centers in North America

and China. IPO’d in August 2014.

Pearl Engineered Solutions


18


Transaction Type:

Revenue:

Industry:

Acquisition Date:

Acquired Assets out of Bankruptcy

$74 Million

Consumer

December 2010

Manufactures protective football, baseball and softball

equipment for all levels and leagues, and provides aftermarket

reconditioning services.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Private Transaction

$628 Million

Business Services

November 2017

Provider of technology and communications services to

corrections and law enforcement industries.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Divestiture from Telstra

$428 Million

Media

February 2014

A leading print and online directory and digital advertising

services provider to the Australian market.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Debt Restructuring

$176 Million


October 2014

International ground engineering specialist services

subcontractor providing foundation work, ground improvement

and microtunnelling.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Divestiture from Expert Global Solutions

$224 Million

Business Services

October 2014

A leading provider of technology-enabled business process

outsourcing (BPO) and accounts receivable management.


19


Transaction Type:

Revenue:

Industry:

Acquisition Date:

Private Transaction

$491 Million

Industrial Services

August 2017

A leading provider of portable sanitation and related site

service solutions in the United States.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Divestiture from Cox Media Group

$195 Million

Media

December 2016

One of the nation’s largest direct marketing service providers,

reaching more than 100 million consumers through Valpak

household mailers, plus Savings.com, an online provider of

digital coupons and promotional codes.

Transaction Type:

Revenue:

Industry:

Acquisition Date:


$3.9 Billion


November 2016

Provider of mission-critical infrastructure technologies for vital

applications in data centers, communication networks, and

commercial and industrial environments. Divested the ASCO

business to Schneider Electric in October 2017.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Private Transaction

$1.3 Billion


September 2015

Purchased from a private equity seller. A global leader in air

cargo handling and airline ramp and passenger (R&P) services

with a strong presence in Europe. Acquired Consolidated

Aviation Services in February 2016.

Transaction Type:

Revenue:

Industry:

Acquisition Date:

Divestiture from Staples, Inc.

$598 Million

Business Services

April 2017

A leading B2B distributor of office products in Australia and

New Zealand. Rebranded as Winc.


20


Transaction Type:

Revenue:

Industry:

Acquisition Date:

Private Transaction

$434 Million

Packaging

February 2018

A leading provider of pressure-sensitive labels, as well as glue

applied, sleeve (shrink) and in-mold labels to the food &

beverage, consumer packaged goods, and pharmaceuticals

industries.

Greenwich

1 Greenwich Office Park

N. Building, Floor 2

Greenwich, CT 06831

+1 203.900.4052

London

40 Bruton Street

London W1J 6QZ

United Kingdom

+44 (0) 20.3535.0899

World Headquarters360 N. Crescent Drive

Beverly Hills, CA 90210

+1 310.712.1850

www.platinumequity.com

New York

52 Vanderbilt Avenue

21st Floor

New York, NY 10017

+1 212.905.0010

Singapore

12 Marina View #21-05

Asia Square Tower 2

Singapore 018961

+65 (0) 6709.4090

3 Allied Drive,

Suite 109

Dedham, MA 02026

+1 781.461.8888

Boston

an introduction to platinum equity

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