Download - 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
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
Industrial Technology
October 2017
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:
Divestiture from Emerson
$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
Company Overview Description
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.
Current Portfolio (Cont’d)
15
Company Overview Description
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
Diversified Industrials
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
Current Portfolio (Cont’d)
16
Company Overview Description
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
Diversified Industrials
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.
Current Portfolio (Cont’d)
17
Company Overview Description
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
Aerospace, Defense & Government Services
October 2017
A leading global aerospace and defense supply chain service
provider.
Transaction Type:
Revenue:
Industry:
Acquisition Date:
Private Transaction
$235 Million
Diversified Industrials
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
Current Portfolio (Cont’d)
18
Company Overview Description
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
Diversified Industrials
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.
Current Portfolio (Cont’d)
19
Company Overview Description
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:
Divestiture from Emerson
$3.9 Billion
Industrial Technology
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
Aerospace, Defense & Government Services
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.
Current Portfolio (Cont’d)
20
Company Overview Description
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