Business Services Monthly March 2016 - TM Capital...
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4.3% (3.7%) 2.1% 3.8% 6.5% (6%) (4%) (2%) — 2% 4% 6% 8% Facilities Industrial Distribution Logistics BPO 1-Year Revenue Growth LTM Revenue Growth LTM Gross & EBITDA Margins Enterprise Value / LTM EBITDA Enterprise Value / LTM Revenue Target Acquiror Acquisition Synopsis Facilities • • Comfort Systems USA, a provider of commercial, industrial and institutional HVAC services, acquired the ShoffnerKalthoff family of companies, comprised of 3 regional mechanical contracting businesses located throughout the Southeast US Shoffner is expected to contribute $70 million of revenue to Comfort through its mechanical, HVAC and electrical contracting services offering Industrial • • Industrial Service Solutions, a provider of engineering, field and shop services, acquired Plant-N-Power Services, an industrial boiler maintenance and repair company ISS, a portfolio company of The Edgewater Funds, has recently completed five add-on acquisitions of companies that augment the platform with additional products and service capabilities Distribution • • • Sooner, a distributor of oil country tubular goods, acquired MRC Global's oil country tubular goods business for $48m (0.2x Revenue) MRC Global is the largest global distributor of pipe, valves and fittings to the energy industry MRC Global plans to refocus on its higher margin product lines, particularly valve, valve automation and instrumentation businesses Logistics • • • Lloyd's Development Capital acquired an equity stake in CitySprint, a provider of courier and logistics services, in a secondary buyout transaction valuing the Company at $250m (10.4x EBITDA) CitySprint is a portfolio company of Dunedin, a UK-based private equity firm Dunedin has completed 21 add-on acquisitions for the platform since acquiring the company in 2010 BPO • • • RealPage (NasdaqGS:RP), a provider of property management software and services, acquired NWP Services, a provider of cloud-based BPO solutions for the housing industry, for $70m (11.3x EBITDA) NWP Services provides rental services such as utility management, submetering, ePay and more The acquisition expands RealPage's footprint and adds new resident-oriented solutions to its portfolio Oil Country Tubular Goods Business Services Headline Transactions 19.2% 12.2% 28.0% 22.6% 34.1% 7.4% 5.5% 8.4% 16.7% 14.5% 0% 5% 10% 15% 20% 25% 30% 35% — 5% 10% 15% 20% 25% 30% 35% 40% Facilities IndustrialDistributionLogistics BPO LTM EBITDA Margin LTM Gross Margin 0.8x 0.4x 1.1x 1.1x 1.3x 0.0 0.2x 0.4x 0.6x 0.8x 1.0x 1.2x 1.4x 1.6x Facilities Industrial Distribution Logistics BPO TEV / Revenue 9.9x 7.3x 10.1x 8.5x 9.2x 0.0 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x Facilities Industrial Distribution Logistics BPO TEV / EBITDA Business Services Monthly March 2016
Transcript of Business Services Monthly March 2016 - TM Capital...
4.3%
(3.7%)
2.1%
3.8%
6.5%
(6%)
(4%)
(2%)
—
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
•
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Comfort Systems USA, a provider of commercial, industrial and institutional HVAC services, acquired the ShoffnerKalthoff family of companies, comprised of 3 regional mechanical contracting businesses located throughout the Southeast USShoffner is expected to contribute $70 million of revenue to Comfort through its mechanical, HVAC and electrical contracting services offering
Indu
stri
al •
•
Industrial Service Solutions, a provider of engineering, field and shop services, acquired Plant-N-Power Services, an industrial boiler maintenance and repair companyISS, a portfolio company of The Edgewater Funds, has recently completed five add-on acquisitions of companies that augment the platform with additional products and service capabilities
Dis
trib
utio
n •
••
Sooner, a distributor of oil country tubular goods, acquired MRC Global's oil country tubular goods business for $48m (0.2x Revenue)MRC Global is the largest global distributor of pipe, valves and fittings to the energy industryMRC Global plans to refocus on its higher margin product lines, particularly valve, valve automation and instrumentation businesses
Logi
stic
s •
••
Lloyd's Development Capital acquired an equity stake in CitySprint, a provider of courier and logistics services, in a secondary buyout transaction valuing the Company at $250m (10.4x EBITDA)CitySprint is a portfolio company of Dunedin, a UK-based private equity firmDunedin has completed 21 add-on acquisitions for the platform since acquiring the company in 2010
BPO
•
••
RealPage (NasdaqGS:RP), a provider of property management software and services, acquired NWP Services, a provider of cloud-based BPO solutions for the housing industry, for $70m (11.3x EBITDA)NWP Services provides rental services such as utility management, submetering, ePay and moreThe acquisition expands RealPage's footprint and adds new resident-oriented solutions to its portfolio
Oil Country Tubular Goods
Tab - 1. Headline Transactions Page 1
Business Services Headline Transactions
19.2%
12.2%
28.0%
22.6%
34.1%
7.4% 5.5%
8.4%
16.7% 14.5%
0%
5%
10%
15%
20%
25%
30%
35%
—
5%
10%
15%
20%
25%
30%
35%
40%
Facilities IndustrialDistributionLogistics BPO
LTM EBITD
A M
arginLTM
Gro
ss M
argi
n
0.8x
0.4x
1.1x 1.1x 1.3x
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 9.9x
7.3x
10.1x 8.5x
9.2x
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 MonthlyMarch 2016
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
Fahrenheit 212 LLC Cap Gemini S.A. Provides innovation consultancyservices to the clothing and apparel,financial services and retailindustries
VOA Associates Incorporated
Stantec Inc. Offers services in the areas ofarchitecture, interior design,landscape, planning, reuse andpreservation and sustainability
PricewaterhouseCoopers LLP, Canada, Debt Solutions Business
MNP LTD Serves as PWC's Canadianinsolvency practice
4. Transactions (for PDF)
Target Acquiror Target Description
Global Tooling and Supply LLC
Burton Saw & Supply Company
Distributes cutting tools, knives andassociated products to the woodmanufacturing industry
Mechanical Supply Company, Inc.
The Macomb Group, Inc. Distributes pipes, valves, fittingsand related products to industrial,construction and other commercialmarkets
Seaboard Industries, Inc.
Pool Corp. Distributes swimming pool and spaproducts including chemicals,equipment and parts
4. Transactions (for PDF)
Target Acquiror Target Description
Systems Sales Corporation
Red Hawk Fire & Security, LLC
Specializes in the design andmaintenance of commercial firealarm and security systems
Cross Gate Services, Inc.
The Budd Group, Inc. Offers janitorial and custodialservices to corporate officebuildings, multi-tenant buildings,industrial plants and more
Genesys Engineering, P.C.
Willdan Energy Solutions, Inc.
Provides planning, design, projectmanagement and commissioningservices for the energy and utilityinfrastructure of major facilities
4. Transactions (for PDF)
Target Acquiror Target Description
API Technologies Corp.
J.F. Lehman & Company Designs, develops andmanufactures systems, subsystems,modules and other industrialcomponents
Sebesta, Inc. NV5 Global, Inc. Provides building engineering andconstruction services to thegovernment, education andcommercial industries
Flanders Holdings LLC
American Air Filter Company, Inc.
Manufactures air filters and relatedequipment
4. Transactions (for PDF)
Target Acquiror Target Description
SC Trucking, Inc. Integrated Freight Corporation
Offers local and long haul truckingservices in the United States
Prostar Packaging, Inc.
South Atlantic Packaging Corporation
Provides copacking, labeling,warehousing, logistics and e-commerce order fulfillment services
Mercator Lines (Singapore) Limited
MIB Investments Private Limited
Charters maritime vessels on short-term and long-term contracts andprovides marine transportationservices
4. Transactions (for PDF)
EBITDA Multiples Over Time
9.9x
7.3x
10.1x
8.5x 9.2x
5.0x6.0x7.0x8.0x9.0x
10.0x11.0x12.0x13.0x14.0x
Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 15 Q3 15 Q4 15 Feb2016
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
