Business Services Monthly November 2017 - TM Capital Corp. · 2020-01-01 · TM Capital’s...
Transcript of Business Services Monthly November 2017 - TM Capital Corp. · 2020-01-01 · TM Capital’s...
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8.4%
3.8% 5.6%
7.2% 5.8%
(8%)
(6%)
(4%)
(2%)
—
2%
4%
6%
8%
10%
Facilities Industrial Distribution Logistics BPO
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LTM Revenue Growth LTM Gross & EBITDA Margins
Enterprise Value / LTM EBITDAEnterprise Value / LTM Revenue
Target Acquiror Acquisition Synopsis
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Aramark (NYSE:ARMK), a leader in food, facilities and uniform services, has agreed to acquire AmeriPride Services, a provider of uniform and linen rental services, in a transaction valued at $1 billion (~1.7x Revenue)Operating more than 115 production facilities and service centers throughout North America, AmeriPride provides linen and towels, uniforms, floor mats and cleaning products to nearly 150,000 customers The transaction is Aramark's second deal in Q4 2017 – the Company also agreed to acquire Avendra, a hospitality supply chain management company majority-owned by Marriott International, for $1.35 billion
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China Communications Construction Company Limited ("CCCC") (SEHK:1800), the world's largest network of engineering and construction companies, has agreed to acquire Aecon Group (TSX:ARE), a Canadian leader in construction and infrastructure development, for $1.4 billion (10.7x LTM EBITDA)CCCC's size and financial strength will augment Aecon's access to capital and its ability to bid for larger and more complex projects in Canada and abroadThe transaction advances CCCC's global growth strategy – in 2015, the Company acquired John Holland, a leading Austrialian construction company, which has since achieved double-digit growth
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Office Depot, the second largest office supply retailer in the U.S., has agreed to acquire Complete Office of Wisconsin, one of the largest independent office supplies dealers in the countryComplete Office, with annual sales of ~$150 million, primarily supplies office products, furniture, business printing and promotional products throughout Washington, California and WisconsinThe deal – which was announced on the heels of Office Depot's $1 billion acquisition of tech support services firm CompuCom – will support the Company's strategy to create a network of local office supply and service firms with sales forces to cross sell IT services
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Walmart (NYSE:WMT) acquired Parcel, a NYC-based last-mile delivery service Parcel handles scheduled and same-day delivery services in New York for online retailers like Bonobos and meal-kit companies like Chef’d and Martha Stewart’s Martha & Marley SpoonWalmart plans to leverage Parcel for last mile delivery to customers in NYC for both general merchandise and groceries from Walmart and Jet.com; the deal will position Walmart to compete with Amazon.com, whose recent Whole Foods acquisition will accelerate its grocery delivery capabilities, especially in NYC
BPO
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E*TRADE Financial (NASDAQ:ETFC), an online discount brokerage and retail banking services firm, has agreed to acquire Trust Company of America ("TCA"), a provider of custody services and technical support to the independent Registered Investment Adviser ("RIA") market, for $275 millionDenver-based TCA has $17 billion in institutional assets under custody and over 180 active RIAs on its platform, including 7,000 financial advisorsThe purchase of TCA will help strengthen E*TRADE's position in the investment-advice sector and will complement the Company's existing digitial experience offering for retail investors
Tab - 1. Headline Transactions Page 1
Business Services Headline Transactions
21.0%
13.5%
28.7%
20.5%
32.3%
8.0% 5.7%
8.5% 13.5% 13.1%
0%
5%
10%
15%
20%
25%
30%
35%
—
5%
10%
15%
20%
25%
30%
35%
Facilities IndustrialDistributionLogistics BPO
LTM EBITD
A M
arginLTM
Gro
ss M
argi
n
1.0x
0.6x
1.2x 1.3x
1.5x
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
12.5x 10.7x
12.1x 12.2x 12.9x
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 MonthlyNovember 2017
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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
Facilities Services Transactions Industrial Services Transactions
Distribution Transactions Logistics Transactions
BPO TransactionsTarget Acquiror Target Description
Young Samuel Chambers ("YSC") Ltd.
Graphite Capital Management LLP
Provides leadership consultingservices.
Ultra Force, LLC Gaston Capital Partners Provides staffing and recruitmentservices on a temporary, temp-to-hire and direct hire basis.
Xebec Global Corporation
Arlington Capital Partners LP
Provides strategic advisory servicesto public and private sector clients.
4. Transactions (for PDF)
Target Acquiror Target Description
Kuroda Electric Co., Ltd.
MBK Partners Operates as a trading company thatprovides electrical materials,semiconductors and equipment inJapan and internationally.
Comtrad Strategic Sourcing Inc.
Ardenton Capital Imports and distributes hardwareto furniture, kitchen and bathcabinet manufacturers anddistributors.
Harmony Gardens Inc.
SiteOne Landscape Supply, Inc. (NYSE:SITE)
Distributes nursery and relatedproducts to landscapeprofessionals.
4. Transactions (for PDF)
Target Acquiror Target Description
Heery International, Inc.
CBRE Group, Inc. (NYSE:CBG)
Provides architecture, interiordesign, engineering, constructionmanagement, and programmanagement services.
VLS Recovery Services, LLC
Aurora Capital Partners Provides waste management andrailcar cleaning services.
Bob Hamilton Plumbing, Inc.
American Residential Services, Inc.
Provides plumbing, rooter, airconditioning, and heating services.
4. Transactions (for PDF)
Target Acquiror Target Description
O-Tex Pumping, LLC
C&J Energy Services, Inc. (NYSE:CJ)
Provides specialty cementingpumping services to the oil and gasindustry.
AFW UK Oil & Gas Limited
WorleyParsons Limited (ASX:WOR)
Provides engineering, maintenance,modifications, and operationservices in the oil and gas sector.
Equis Energy Pte. Ltd.
Global Infrastructure Partners
Owns, develops, constructs andoperates renewable energy plantsthat generate electricity.
4. Transactions (for PDF)
Target Acquiror Target Description
Avendra, LLC Aramark Services, Inc. Operates as a supply chainmanagement company thatprovides procurement services tothe hospitality industry.
ITS Technologies & Logistics, LLC
AMP Capital Investors Limited
Provides intermodal rail terminalservices, auto loading andunloading and container depotservices
IntegraCore, LLC Visible Supply Chain Management, LLC
Provides supply chain management,fulfillment and logistics services
4. Transactions (for PDF)
EBITDA Multiples Over Time
12.5x
10.7x
12.1x
12.2x
12.9x
5.0x6.0x7.0x8.0x9.0x
10.0x11.0x12.0x13.0x14.0x
Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Oct '17
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
Atlanta1230 Peachtree Street NESuite 550Atlanta, GA 30309 Tel: 404.995.6230
David M. Felts Managing Director
[email protected] 404-995-6252