business services monthly september...
TRANSCRIPT
0.2%
2.0%
6.4% 5.6%
6.6%
—
2%
4%
6%
8%
Facilities Industrial Distribution Logistics BPO
1-Ye
ar R
even
ue G
row
th
LTM Revenue Growth LTM Gross & EBITDA Margins
Enterprise Value / LTM EBITDAEnterprise Value / LTM Revenue
Target Acquiror Acquisition Synopsis
Faci
litie
s •
••
Service Logic, a provider of energy and heating services, acquired Modern Heating and Air Conditioning, a Minnesota-based mechanical contracting services providerThe acquisition enhances Service Logic's capabilities in maintenance, repair and replacementSterling Investment Partners purchased Service Logic from Audax Group and The Jordan Company in 2012
Indu
stri
al •
•
•
WSP Global, one of the world's largest engineering and professional service platforms, acquired MMM Group, a sizable Canadian engineering consulting company, for $320m (8.9x EBITDA)MMM specializes in transportation, infrastructure, environmental and building services; the acquisition will add 2,000 consultants to WSP and expand its presence in the eastern CanadaWSP now has a global workforce of 34,000, which management expects to grow to 45,000 by 2020
Dis
trib
utio
n •
•
The Riverside Company has acquired Arrowhead Electrical Products, a distributor of rotating electrical parts and components, from Pfingsten PartnersArrowhead has completed 8 acquisitions since 2011 to expand its product offering and geographic reach, a trend that is expected to continue with new capital support from Riverside
Logi
stic
s
•
•
•
Geodis, the giant French logistics and supply chain service provider, acquired Ozburn-Hessey Logistics, a leading US-based 3PL provider in a deal estimated at $800m (approximately 10x earnings)Previously owned by private equity firm Welsh, Carson, Anderson & Stowe, OHL generates approximately $1.2 billion in annual sales and employs 8,000 peopleThis sizable cross-border transaction will give Geodis a large logistics footprint in the US, including more than 120 strategically located distribution centers
BPO
•
•
Accenture plc, one of the world's largest providers of business process outsourcing providers, acquired SBC, the management consulting unit of Schlumberger, an energy focused IT and information solutions platformThe acquisition will significantly bolster Accenture's presence in the upstream oil and gas industry, where outsourced services and business consulting are in high demand given fundamental market transformations driven by oil price volatility and increased regulation
Tab - 1. Headline Transactions Page 1
Business Services Headline Transactions
19.2%
14.2%
28.0%
22.2%
33.7%
7.4% 6.7% 8.4%
14.2% 14.2%
0%
5%
10%
15%
20%
25%
30%
35%
—
5%
10%
15%
20%
25%
30%
35%
40%
Facilities Industrial Distribution Logistics BPO
LTM EBITD
A M
arginLTM
Gro
ss M
argi
n
0.8x
0.4x
1.0x 1.0x
1.4x
0.0
0.2x
0.4x
0.6x
0.8x
1.0x
1.2x
1.4x
1.6x
Facilities Industrial Distribution Logistics BPO
TEV
/ Rev
enue
11.1x
8.3x
11.3x
9.1x 9.9x
0.0
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
Facilities Industrial Distribution Logistics BPO
TEV
/ EBI
TDA
Business Services MonthlySeptember 2015
TM Capital’s Business Services Contacts
James S. Grien Managing Director
[email protected] 404-995-6235
Jarrad S. Zalkin Managing Director
[email protected] 617-259-2207
Andrew O. Redmond Vice President
[email protected] 617-259-2215
Facilities Services Transactions Industrial Services Transactions
Distribution Transactions Logistics Transactions
BPO TransactionsTarget Acquiror Target Description
Elysium Digital, LLC Stroz Friedberg, LLC Provides expert testimony,intellectual property litigationconsulting, eDiscovery and otherlegal services
PrimaGraphics, Inc. Independent Printing Co., Inc.
Provides commercial printingservices to the healthcare, retailand financial institutions markets
National Administration Company, Inc.
Arthur J Gallagher & Co. Offers outsourced legal consultingand maintenance services toclients throughout the UnitedStates
4. Transactions (for PDF)
Target Acquiror Target Description
Green Resource, LLC
John Deere Landscapes (d.b.a. SiteOne Landscape Supply)
Operates as a lawn productsdistributor throughout the UnitedStates
Magneto Power, LLC
Power Distributors, LLC Distributes outdoor powerequipment and replacement partsand provides sales support,customer service and more
Lake Erie Abrasive & Tool, Inc.
Motion Industries, Inc. Distributes abrasive products andmachinery to the industrialmarketplace
4. Transactions (for PDF)
Target Acquiror Target Description
Andex, Co. Rentokil Initial plc Offers residential and commercialpest control services throughoutthe United States
Fay, Spofford & Thorndike, Inc.
Stantec Inc. Provides civil engineering,planning and environmentalconsulting services for themunicipal and commercial
Premier Store Fixtures, Inc.
Tailwind Capital Group, LLC
Designs, engineers, manufacturesand installs retail store fixturesand displays
4. Transactions (for PDF)
Target Acquiror Target Description
Empire Refractory Services of Ohio, L.L.C.
Brand Energy & Infrastructure Services, Inc.
Designs and installs refractory andindustrial fireproofing systems
Robert Bowden, Inc.
Building Materials Holding Corporation
Manufactures, assembles, sells,installs and services variousbuilding materials for constructionprofessionals and homebuilders
Leonard Buildings and Truck Accessories
Copeley Capital Management
Manufactures, retails, anddistributes storage buildings,trailers and aftermarketaccessories
4. Transactions (for PDF)
Target Acquiror Target Description
SPT Inc. Teekay Tankers Ltd. Provides ship to ship cargotransfer services in the UnitedStates and internationally
AirNet Systems, Inc. Kalitta Charters, LLC Provides express cargo and parcelshipping services as well as aircargo transportation, scheduledpackage delivery and more
Liberty International Inc.
Janel Corporation Offers global transportationservices as well as 3PL, 4PL andtotal logistics managementservices
4. Transactions (for PDF)
EBITDA Multiples Over Time
11.1x
8.3x
11.3x
9.1x
9.9x
5.0x6.0x7.0x8.0x9.0x
10.0x11.0x12.0x13.0x14.0x
Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 15 Aug '15
TEV
/ EBI
TDA
Facilities
Industrial
Distribution
Logistics
BPO
www.tmcapital.com/business-services
New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360
Boston201 Washington Street32nd FloorBoston, MA 02108Tel: 617.259.2200
Atlanta3575 Piedmont Road NESuite 1010Atlanta, GA 30305 Tel: 404.995.6230