HW&Co. Industry Reader Template...value. Customers are branching out. They’re trying new things....

wwwharriswilliamsde

Harris Williams amp Co Ltd is a private limited company incorporated under English law having its registered office at 5th Floor 6 St Andrew Street London EC4A 3AE UK registered with the Registrar of Companies for England and Wales under company number 7078852 Directors Mr Ned Valentine Mr Paul Poggi Mr Thierry Monjauze and Mr Aadil Khan authorised and regulated by the Financial Conduct Authority

Harris Williams amp Co Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am MainGermany under registration number HRB 96687 having its business address at Bockenheimer Landstrasse 33-35 60325 Frankfurt am Main Germany Permanent Representative(Staumlndiger Vertreter) of the Branch Niederlassung Mr Jeffery H Perkins

SPECIALTY DISTRIBUTION

INSERT TITLE HERE 01202014

INDUSTRY UPDATE MARCH 2016

PAGE |

wwwharriswilliamsde

CONTENTS

WHAT WErsquoRE READING

PUBLIC COMPARABLES amp TRADING VALUATIONS

MampA AND PUBLIC MARKET TRENDS

NOTABLE MampA ACTIVITY

ECONOMIC UPDATE

GROUP OVERVIEW

Harris Williams amp Co is a leading advisor to the specialty distribution market Our significant experience covers a broad range of end markets industries and business models This particular report focuses on trends and metrics in the following areas

Specialty Catalogand Direct Marketing

Branch-Based Distributors

Route-Based Distributors

Automotive and HeavyDuty Aftermarket

Building amp ConstructionProducts

Consumer amp Food Service

Industrial MROand Safety

Healthcare

Technology

Electrical andCommunications

Alcohol Tobaccoand Firearms

CONTACTS

Bob BaltimoreManaging Directorbbaltimoreharriswilliamscom+1 (804) 915-0129

Derek LewisManaging Directordlewisharriswilliamscom+1 (804) 915-0118

Josh GarnerVice Presidentjgarnerharriswilliamscom

+1 (804) 915-0167

Graham GillamAssociateggillamharriswilliamscom

+1 (804) 887-6074

ARROW ELECTRONICS ACQUIRES DISTRIBUTION CENTRAL


1



The move is an example of Arrow targeting Australia in order to gain a presence to compete with rivals Ingram Micro and Synnex Sean Kerins President of Global Enterprise Computing Solutions for Arrow said This acquisition supports our strategy to expand Arrowrsquos portfolio and build strategic capabilities to help meet the evolving needs of our customersldquo

The Colorado-based company is rumoured to have had its eye on Distribution Central for over a year but bosses Scott Frew and Nick Verykios have remained coy on any interest refusing to confirm or deny despite ongoing industry speculation But Distribution Centralrsquos recent success with emerging brands looks to have brought the two parties closer to an agreement

Locally Arrow has around 40 staff in Australia and revenue of approximately $42 million per employee while Distribution Central operates 130 staff at around $24 million per employee

Read more from this article here

INDUSTRIAL DISTRIBUTORS REACH A FORK IN THE E-COMMERCE ROAD

FEBRUARY US AND EUROPEAN FACTORY PRODUCTION RISES AGAIN

US industrial output grew for a second-straight month in February as the Federal Reserve on Wednesday said that factory production rose 02 percent following a 05 percent gain in January

The two-month streak of gains comes after declines in four of the previous five months hinting that manufacturing is leveling off after a wearisome 2015 It was the first back-to-back monthly gain since March-April 2015

Across the Atlantic industrial output in the 19-country Eurozone grew by 21 percent in January its fastest growth since 23 percent in September 2009 The European Unions statistical agency Eurostat forecasted growth of 16 percent The gain followed two straight months of decline including a 05 percent drop in December


Industrial distributors are facing a significant challenge from their B2B customers Provide a rich online experience thatrsquos similar to a consumerrsquos online retail experience or risk losing them to a manufacturer or competing distributor

E-commerce has permeated every facet of the industry fostering faster response times and tighter margins while increasing expectations for customer service and value Customers are branching out Theyrsquore trying new things Talking with new vendors Looking for new opportunities to improve their business This growing reliance on e-commerce comes at a critical time Purchasers see little difference between buying from a distributor or direct from a manufacturer ndash differentiation and demonstrated value are critical

The industrial distribution industryrsquos landscape is radically changing Old paths to success have been replaced by new routes to growth and prosperity Fully embracing e-commerce will light your way to providing indispensable value and ultimately spark long-term customer relationships


PAGE |


2

SPECIALTY DISTRIBUTION PUBLIC COMPARABLES



Key Trading StatsAs of March 15 2016($ in millions except per share amounts)

Stock Performance Revenue

LTM Margins Current 1-Month 1-Year of TEVEBITDA Growth

EBITDA Gross TEV Price Change Change LTM High LTM 2016E 3-Yr CAGR

Automotive amp Heavy Duty Aftermarket

AutoZone Inc 219 525 $28493 $79252 86 191 986 125x 120x 61

OReilly Automotive Inc 219 523 27516 27001 67 256 971 158x 143x 88

Genuine Parts Company 83 298 14753 9557 88 (04) 989 117x 111x 55

LKQ Corp 119 394 10925 3081 231 247 955 129x 115x 204

Dorman Products Inc 202 384 1749 5249 262 138 977 108x 100x 121

Uni-Select Inc 66 297 873 4117 (13) 213 767 94x 91x (90)

Median 160 389 87 202 974 121x 113x 75

Mean 151 403 120 173 941 122x 113x 73

Building amp Construction Products

CRH plc 91 306 $30465 $2721 119 60 866 125x 89x 25

Wolseley plc 72 280 14902 5420 106 (120) 874 110x 101x 08

Watsco Inc 86 245 4271 12851 35 63 966 121x 113x 62

Beacon Roofing Supply Inc 68 239 3398 3899 189 359 886 172x 107x 119

Builders FirstSource Inc 49 253 2952 971 462 632 582 168x 72x 493

Boise Cascade Company 43 132 834 1739 (100) (531) 437 53x 58x 93

Median 70 249 112 62 870 123x 95x 78

Mean 68 242 135 77 768 125x 90x 133


Sysco Corporation 49 177 $29807 $4604 65 189 997 125x 120x 40

United Natural Foods Inc 36 151 2436 3957 144 (473) 506 80x 86x 141

Core-Mark Holding Company Inc 14 72 1946 8077 91 270 880 154x 128x 87

SpartanNash Company 29 146 1546 2880 432 29 850 69x 66x 428

Median 33 148 117 109 865 103x 103x 114

Mean 32 137 183 04 808 107x 100x 174

Industrial MRO amp Safety

WW Grainger Inc 152 424 $15406 $22064 45 (57) 873 102x 104x 37

Fastenal Company 236 504 13918 4742 102 147 998 152x 148x 73

MSC Industrial Direct Co Inc 155 452 4757 7220 79 (16) 966 106x 108x 64

Applied Industrial Technologies Inc 82 281 1920 4097 45 (56) 899 90x 95x 25

DXP Enterprises Inc 65 282 598 1720 263 (614) 351 73x 100x 44

Median 152 424 79 (56) 899 102x 104x 44

Mean 138 389 107 (120) 817 105x 111x 48

Healthcare

McKesson Corporation 23 60 $42434 $15600 33 (320) 640 99x 84x 153

Cardinal Health Inc 26 54 30047 8110 29 (99) 882 104x 94x 24

Henry Schein Inc 87 283 15000 16741 53 203 983 159x 148x 59

Patterson Companies Inc 91 262 5473 4487 56 (93) 845 111x 118x 146

Owens amp Minor Inc 28 124 2908 3983 47 184 986 107x 103x 33

Median 28 124 47 (93) 882 107x 103x 59

Mean 51 157 44 (25) 868 116x 109x 83

PAGE |


3

TRAILING TWELVE MONTHS STOCK PRICE PERFORMANCE



Stock Prices

As of March 15 2016


Building and Construction


SampP 500

Electrical amp Communications

Healthcare

Technology







Technology

Arrow Electronics Inc 45 130 $7814 $6169 148 16 949 74x 71x 45

Avnet Inc 38 114 6963 4320 108 (40) 914 67x 66x 28

Ingram Micro Inc 18 63 5550 3611 299 518 985 72x 62x 44

SYNNEX Corp 35 89 4326 9903 160 295 995 92x 84x 90

Tech Data Corp 14 49 2551 7742 210 368 979 71x NA 13

ScanSource Inc 36 103 1093 3881 69 11 925 88x 83x 58

Median 35 96 154 155 964 73x 71x 44

Mean 31 92 166 195 958 77x 73x 46


Rexel SA 49 240 $6483 $1344 404 (295) 667 87x 90x (61)

WESCO International Inc 57 199 3584 5241 266 (244) 702 84x 90x 45

Anixter International Inc 57 217 3087 4838 222 (372) 615 88x 82x (03)

Houston Wire amp Cable Company 40 214 157 686 282 (267) 650 127x 164x (78)

Median 53 215 274 (281) 659 88x 90x -32

Mean 51 217 294 (294) 659 97x 106x -24

-500

-400

-300

-200

-100

00

100

200

PAGE |


4

TEV EBITDA MULTIPLES FOR PUBLIC COMPARABLES

RECENT MampA AND PRIVATE EQUITY TRENDS



Distribution Trends

LTM EBITDA as of March 15 2016

MampA Trends

With PE-back exit value growing at a near 20 CAGR since 2010 the sellerrsquos marketextended in 2015 as PE investors sought to take advantage of the frothy multiples

Total exit value last year came in at a record $554 billion across 2320 completedsales

2015 PE-BACKED EXITS

NET DEBT EBITDA EBITDA MARGINS

12x

21x

15x

11x 12x

08x

33x

0x

1x

2x

3x

4x

Ne

t D

eb

t

EB

ITD

A

The median time to exit for PE-backed sales in 2015 came in lower for corporateacquisitions IPOs and secondary buyouts

In 2015 the median was just 51 years and that compares to a reported value of61 for all exits in 2014

The median time for exits had increased for 7 years prior to the 2015 decline

TIME TAKEN TO EXIT

151

68

32

138

51

31

51

0

5

10

15

20

EB

ITD

A M

arg

in

12x11x 12x

12x

14x13x 13x 12x

10x 10x 10x11x

9x 9x10x

10x

12x11x 11x 12x

7x 7x 7x8x8x 7x 7x

10x

0x

5x

10x

15x

20x

Dec-15 Jan-16 Feb-16 Mar-16

TEV

E

BIT

DA

Automotive amp Heavy Duty Aftermarket Building amp Construction Products Consumer amp Food Service Industrial MRO amp Safety

Healthcare Technology Electrical amp Communications

PAGE |

MampA TRANSACTIONS

5



Announced MampA Transactions

Private Equity

Announced Target Description Acquirer Involvement

3152016 Meridian Imaging Solutions Inc Distributor of office equipment and suppliesKonica Minolta Business Solutions

USA Inc

3142016 UampI ENTERTAINMENT LLC Distributor of packaged software and digital game products Established Brands Inc P (Buyer)

3102016 Thompson Auto Supply Inc Distributor of auto parts Auto-Wares Inc

392016Applied Handling Equipment Company

IncorporatedDistributor of ergonomic and material handling products Hy-Tek Material Handling Inc

382016 Sertec LLC Distributor of protective relays and other specialty electrical equipment Circuit Breaker Sales NE Inc

372016 Perfect Products Company of Michigan Inc Distributor of fasteners nuts bolts and other products Lawson Products Inc

372016 Serv ice Experts LLC Distributor of HVAC equipment EnerCare Solutions Inc P (Seller)

372016 3i Supply Company Distributor of industrial and commercial insulation products Distribution International Inc P (Buyer)

332016Charles amp Colvard Direct LLC Certain Lulu

Avenue AssetsDistributor of jewels Yanbal USA Inc

332016 The Progressive Group Distributor of mobile and home electronic products Patrick Industries Inc

312016 Liberty USA Inc Distributor of snacks beverages and other food products Eby-Brown Company LLC

312016 Office Systems Inc Distributor of copiers computers and document imaging products SymQuest Group Inc

312016 Atlanta Electrical Distributors LLC Distributor of electrical equipment WESCO Distribution Inc

312016 Atlanta Powertrain amp Hydraulics Inc Distributor of hydraulics pumps and motors FORCE America Inc

312016 Midwest Equipment Supply LLC Distributor of vending equipment American Vending Sales Inc

2292016 Joe Johnson Equipment Inc Distributor of infrastructure maintenance equipment Sirit Inc

2282016 Haddon House Food Products Inc Distributor of grocery food products United Natural Foods Inc

2262016 Borax Paper Products Inc Distributor of food packaging paper and janitorial products Imperial Bag amp Paper Co LLC P (Buyer)

2232016 Vision Dynamics LLC Distributor of low v ision and blindness aidsNew England Low Vision and

Blindness

2222016 Epperson amp Company Distributor of material handling products Motion Industries Inc

2222016 TNT Parts Inc Distributor of heavy duty aftermarket solutions Tidewater Fleet Supply LLC P (Buyer)

2172016 Europa Sports Products Inc Distributor of sports supplements and drinks Lone Star Distribution Inc P (Buyer)

2172016 Ingram Micro Inc Distributor of IT products Tianjin Tianhai Investment Co Ltd

2172016 Missouri Power Transmission Inc Distributor of power transmission equipment and supplies Motion Industries Inc

2162016 Magnuson-Hagopian Enterprises Inc Distributor of automotive and industrial finishing solutions Finishmaster Inc

2122016 Mauk LLC Distributor of advertising branding and promotional products Augusta Marketing Products Inc

PAGE |

ECONOMIC UPDATE

6



A Snapshot of Key Economic Indicators

As of March 15 2016

PMI INDEX1 ISM NEW ORDERS INDEX2

INDUSTRY PRODUCTION INDEX3 US MANUFACTURING CAPACITY UTILIZATION

MANUFACTURING INVENTORIES amp BACKLOG45 DURABLE GOODS NEW ORDERS6

1 A PMI Index figure greater than 50 indicates expansion

3 A Production Index figure greater than 50 indicates expansion

4 A Manufacturing Inventory Index figure greater than 50 indicatesexpansion5 A Backlog Index figure greater than 50 indicates expansion

2 An ISM Index figure greater than 50 indicates expansion

6 Durable Goods New Orders for January 2016 February releaseon April 25

50

60

70

80

90

100

32

38

44

50

56

62

25

30

35

40

45

50

55

60

65

70

75

25

30

35

40

45

50

55

60

65

70

75

35

40

45

50

55

60

65

Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16

Inventories Backlog of Orders

$100

$150

$200

$250

$300

$350

($ in

bill

ion

s)

Energy Poweramp Infrastructure

IndustrialsHealthcare amp Life Sciences

Transportation amp Logistics

Aerospace Defense amp Government

Services

Business Services

Building Products amp Materials

Technology Media amp Telecom

Specialty Distribution

Consumer

PAGE |

HARRIS WILLIAMS amp CO OFFICE LOCATIONS

UNITED STATES EUROPE

BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501

Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400

Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700

Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072

San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260

FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone +49 069 3650638 00

London63 Brook StreetLondon W1K 4HS EnglandPhone +44 (0) 20 7518 8900

NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai


Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunities Our clients benefit from our deep-sector experience integrated industry intelligence and collaboration across the firm and our commitment to learning what makes them unique For more information visit our website

7

OUR FIRM



PAGE |

wwwharriswilliamsde

HARRIS WILLIAMS amp CO

8



Federal Reserve

Industrial Distribution

The Electrical Distributor Magazine

The Wall Street Journal

PitchBook

Harvard Business Review

DISCLOSURES

PNC Economic Outlook

SampP Capital IQ

Thomson Financial ndash SDC Database

United States Census Bureau

Modern Distribution Management

New York Times Dealbook

SOURCES

Harris Williams amp Co (wwwharriswilliamscom and wwwharriswilliamsde) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services


Harris Williams amp Co Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main Germany under registration number HRB 96687 having its business address at Bockenheimer Landstrasse 33-35 60325 Frankfurt am Main Germany Permanent Representative (Staumlndiger Vertreter) of the Branch Niederlassung Mr Jeffery H Perkins

The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities optionsthereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent

Copyrightcopy 2016 Harris Williams amp Co all rights reserved

PAGE |

wwwharriswilliamsde

CONTENTS




NOTABLE MampA ACTIVITY

ECONOMIC UPDATE

GROUP OVERVIEW

Harris Williams amp Co is a leading advisor to the specialty distribution market Our significant experience covers a broad range of end markets industries and business models This particular report focuses on trends and metrics in the following areas

Specialty Catalogand Direct Marketing

Branch-Based Distributors

Route-Based Distributors

Automotive and HeavyDuty Aftermarket

Building amp ConstructionProducts


Industrial MROand Safety

Healthcare

Technology

Electrical andCommunications

Alcohol Tobaccoand Firearms

CONTACTS

Bob BaltimoreManaging Directorbbaltimoreharriswilliamscom+1 (804) 915-0129

Derek LewisManaging Directordlewisharriswilliamscom+1 (804) 915-0118

Josh GarnerVice Presidentjgarnerharriswilliamscom

+1 (804) 915-0167

Graham GillamAssociateggillamharriswilliamscom

+1 (804) 887-6074

ARROW ELECTRONICS ACQUIRES DISTRIBUTION CENTRAL


1



The move is an example of Arrow targeting Australia in order to gain a presence to compete with rivals Ingram Micro and Synnex Sean Kerins President of Global Enterprise Computing Solutions for Arrow said This acquisition supports our strategy to expand Arrowrsquos portfolio and build strategic capabilities to help meet the evolving needs of our customersldquo

The Colorado-based company is rumoured to have had its eye on Distribution Central for over a year but bosses Scott Frew and Nick Verykios have remained coy on any interest refusing to confirm or deny despite ongoing industry speculation But Distribution Centralrsquos recent success with emerging brands looks to have brought the two parties closer to an agreement

Locally Arrow has around 40 staff in Australia and revenue of approximately $42 million per employee while Distribution Central operates 130 staff at around $24 million per employee


INDUSTRIAL DISTRIBUTORS REACH A FORK IN THE E-COMMERCE ROAD

FEBRUARY US AND EUROPEAN FACTORY PRODUCTION RISES AGAIN

US industrial output grew for a second-straight month in February as the Federal Reserve on Wednesday said that factory production rose 02 percent following a 05 percent gain in January

The two-month streak of gains comes after declines in four of the previous five months hinting that manufacturing is leveling off after a wearisome 2015 It was the first back-to-back monthly gain since March-April 2015

Across the Atlantic industrial output in the 19-country Eurozone grew by 21 percent in January its fastest growth since 23 percent in September 2009 The European Unions statistical agency Eurostat forecasted growth of 16 percent The gain followed two straight months of decline including a 05 percent drop in December


Industrial distributors are facing a significant challenge from their B2B customers Provide a rich online experience thatrsquos similar to a consumerrsquos online retail experience or risk losing them to a manufacturer or competing distributor

E-commerce has permeated every facet of the industry fostering faster response times and tighter margins while increasing expectations for customer service and value Customers are branching out Theyrsquore trying new things Talking with new vendors Looking for new opportunities to improve their business This growing reliance on e-commerce comes at a critical time Purchasers see little difference between buying from a distributor or direct from a manufacturer ndash differentiation and demonstrated value are critical

The industrial distribution industryrsquos landscape is radically changing Old paths to success have been replaced by new routes to growth and prosperity Fully embracing e-commerce will light your way to providing indispensable value and ultimately spark long-term customer relationships


PAGE |


2









AutoZone Inc 219 525 $28493 $79252 86 191 986 125x 120x 61



LKQ Corp 119 394 10925 3081 231 247 955 129x 115x 204


Uni-Select Inc 66 297 873 4117 (13) 213 767 94x 91x (90)

Median 160 389 87 202 974 121x 113x 75

Mean 151 403 120 173 941 122x 113x 73


CRH plc 91 306 $30465 $2721 119 60 866 125x 89x 25

Wolseley plc 72 280 14902 5420 106 (120) 874 110x 101x 08

Watsco Inc 86 245 4271 12851 35 63 966 121x 113x 62




Median 70 249 112 62 870 123x 95x 78

Mean 68 242 135 77 768 125x 90x 133






Median 33 148 117 109 865 103x 103x 114

Mean 32 137 183 04 808 107x 100x 174







Median 152 424 79 (56) 899 102x 104x 44

Mean 138 389 107 (120) 817 105x 111x 48

Healthcare






Median 28 124 47 (93) 882 107x 103x 59

Mean 51 157 44 (25) 868 116x 109x 83

PAGE |


3




Stock Prices

As of March 15 2016




SampP 500


Healthcare

Technology







Technology


Avnet Inc 38 114 6963 4320 108 (40) 914 67x 66x 28


SYNNEX Corp 35 89 4326 9903 160 295 995 92x 84x 90



Median 35 96 154 155 964 73x 71x 44

Mean 31 92 166 195 958 77x 73x 46


Rexel SA 49 240 $6483 $1344 404 (295) 667 87x 90x (61)




Median 53 215 274 (281) 659 88x 90x -32

Mean 51 217 294 (294) 659 97x 106x -24

-500

-400

-300

-200

-100

00

100

200

PAGE |


4





Distribution Trends


MampA Trends





12x

21x

15x

11x 12x

08x

33x

0x

1x

2x

3x

4x

Ne

t D

eb

t

EB

ITD

A




TIME TAKEN TO EXIT

151

68

32

138

51

31

51

0

5

10

15

20

EB

ITD

A M

arg

in

12x11x 12x

12x

14x13x 13x 12x

10x 10x 10x11x

9x 9x10x

10x

12x11x 11x 12x

7x 7x 7x8x8x 7x 7x

10x

0x

5x

10x

15x

20x


TEV

E

BIT

DA



PAGE |

MampA TRANSACTIONS

5




Private Equity



USA Inc





















Blindness








PAGE |

ECONOMIC UPDATE

6




As of March 15 2016









50

60

70

80

90

100

32

38

44

50

56

62

25

30

35

40

45

50

55

60

65

70

75

25

30

35

40

45

50

55

60

65

70

75

35

40

45

50

55

60

65



$100

$150

$200

$250

$300

$350

($ in

bill

ion

s)





Services

Business Services




Consumer

PAGE |










NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai



7

OUR FIRM



PAGE |

wwwharriswilliamsde


8



Federal Reserve




PitchBook


DISCLOSURES


SampP Capital IQ





SOURCES






PAGE |


2









AutoZone Inc 219 525 $28493 $79252 86 191 986 125x 120x 61



LKQ Corp 119 394 10925 3081 231 247 955 129x 115x 204


Uni-Select Inc 66 297 873 4117 (13) 213 767 94x 91x (90)

Median 160 389 87 202 974 121x 113x 75

Mean 151 403 120 173 941 122x 113x 73


CRH plc 91 306 $30465 $2721 119 60 866 125x 89x 25

Wolseley plc 72 280 14902 5420 106 (120) 874 110x 101x 08

Watsco Inc 86 245 4271 12851 35 63 966 121x 113x 62




Median 70 249 112 62 870 123x 95x 78

Mean 68 242 135 77 768 125x 90x 133






Median 33 148 117 109 865 103x 103x 114

Mean 32 137 183 04 808 107x 100x 174







Median 152 424 79 (56) 899 102x 104x 44

Mean 138 389 107 (120) 817 105x 111x 48

Healthcare






Median 28 124 47 (93) 882 107x 103x 59

Mean 51 157 44 (25) 868 116x 109x 83

PAGE |


3




Stock Prices

As of March 15 2016




SampP 500


Healthcare

Technology







Technology


Avnet Inc 38 114 6963 4320 108 (40) 914 67x 66x 28


SYNNEX Corp 35 89 4326 9903 160 295 995 92x 84x 90



Median 35 96 154 155 964 73x 71x 44

Mean 31 92 166 195 958 77x 73x 46


Rexel SA 49 240 $6483 $1344 404 (295) 667 87x 90x (61)




Median 53 215 274 (281) 659 88x 90x -32

Mean 51 217 294 (294) 659 97x 106x -24

-500

-400

-300

-200

-100

00

100

200

PAGE |


4





Distribution Trends


MampA Trends





12x

21x

15x

11x 12x

08x

33x

0x

1x

2x

3x

4x

Ne

t D

eb

t

EB

ITD

A




TIME TAKEN TO EXIT

151

68

32

138

51

31

51

0

5

10

15

20

EB

ITD

A M

arg

in

12x11x 12x

12x

14x13x 13x 12x

10x 10x 10x11x

9x 9x10x

10x

12x11x 11x 12x

7x 7x 7x8x8x 7x 7x

10x

0x

5x

10x

15x

20x


TEV

E

BIT

DA



PAGE |

MampA TRANSACTIONS

5




Private Equity



USA Inc





















Blindness








PAGE |

ECONOMIC UPDATE

6




As of March 15 2016









50

60

70

80

90

100

32

38

44

50

56

62

25

30

35

40

45

50

55

60

65

70

75

25

30

35

40

45

50

55

60

65

70

75

35

40

45

50

55

60

65



$100

$150

$200

$250

$300

$350

($ in

bill

ion

s)





Services

Business Services




Consumer

PAGE |










NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai



7

OUR FIRM



PAGE |

wwwharriswilliamsde


8



Federal Reserve




PitchBook


DISCLOSURES


SampP Capital IQ





SOURCES






PAGE |


3




Stock Prices

As of March 15 2016




SampP 500


Healthcare

Technology







Technology


Avnet Inc 38 114 6963 4320 108 (40) 914 67x 66x 28


SYNNEX Corp 35 89 4326 9903 160 295 995 92x 84x 90



Median 35 96 154 155 964 73x 71x 44

Mean 31 92 166 195 958 77x 73x 46


Rexel SA 49 240 $6483 $1344 404 (295) 667 87x 90x (61)




Median 53 215 274 (281) 659 88x 90x -32

Mean 51 217 294 (294) 659 97x 106x -24

-500

-400

-300

-200

-100

00

100

200

PAGE |


4





Distribution Trends


MampA Trends





12x

21x

15x

11x 12x

08x

33x

0x

1x

2x

3x

4x

Ne

t D

eb

t

EB

ITD

A




TIME TAKEN TO EXIT

151

68

32

138

51

31

51

0

5

10

15

20

EB

ITD

A M

arg

in

12x11x 12x

12x

14x13x 13x 12x

10x 10x 10x11x

9x 9x10x

10x

12x11x 11x 12x

7x 7x 7x8x8x 7x 7x

10x

0x

5x

10x

15x

20x


TEV

E

BIT

DA



PAGE |

MampA TRANSACTIONS

5




Private Equity



USA Inc





















Blindness








PAGE |

ECONOMIC UPDATE

6




As of March 15 2016









50

60

70

80

90

100

32

38

44

50

56

62

25

30

35

40

45

50

55

60

65

70

75

25

30

35

40

45

50

55

60

65

70

75

35

40

45

50

55

60

65



$100

$150

$200

$250

$300

$350

($ in

bill

ion

s)





Services

Business Services




Consumer

PAGE |










NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai



7

OUR FIRM



PAGE |

wwwharriswilliamsde


8



Federal Reserve




PitchBook


DISCLOSURES


SampP Capital IQ





SOURCES






PAGE |


4





Distribution Trends


MampA Trends





12x

21x

15x

11x 12x

08x

33x

0x

1x

2x

3x

4x

Ne

t D

eb

t

EB

ITD

A




TIME TAKEN TO EXIT

151

68

32

138

51

31

51

0

5

10

15

20

EB

ITD

A M

arg

in

12x11x 12x

12x

14x13x 13x 12x

10x 10x 10x11x

9x 9x10x

10x

12x11x 11x 12x

7x 7x 7x8x8x 7x 7x

10x

0x

5x

10x

15x

20x


TEV

E

BIT

DA



PAGE |

MampA TRANSACTIONS

5




Private Equity



USA Inc





















Blindness








PAGE |

ECONOMIC UPDATE

6




As of March 15 2016









50

60

70

80

90

100

32

38

44

50

56

62

25

30

35

40

45

50

55

60

65

70

75

25

30

35

40

45

50

55

60

65

70

75

35

40

45

50

55

60

65



$100

$150

$200

$250

$300

$350

($ in

bill

ion

s)





Services

Business Services




Consumer

PAGE |










NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai



7

OUR FIRM



PAGE |

wwwharriswilliamsde


8



Federal Reserve




PitchBook


DISCLOSURES


SampP Capital IQ





SOURCES






PAGE |

MampA TRANSACTIONS

5




Private Equity



USA Inc





















Blindness








PAGE |

ECONOMIC UPDATE

6




As of March 15 2016









50

60

70

80

90

100

32

38

44

50

56

62

25

30

35

40

45

50

55

60

65

70

75

25

30

35

40

45

50

55

60

65

70

75

35

40

45

50

55

60

65



$100

$150

$200

$250

$300

$350

($ in

bill

ion

s)





Services

Business Services




Consumer

PAGE |










NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai



7

OUR FIRM



PAGE |

wwwharriswilliamsde


8



Federal Reserve




PitchBook


DISCLOSURES


SampP Capital IQ





SOURCES






PAGE |

ECONOMIC UPDATE

6




As of March 15 2016









50

60

70

80

90

100

32

38

44

50

56

62

25

30

35

40

45

50

55

60

65

70

75

25

30

35

40

45

50

55

60

65

70

75

35

40

45

50

55

60

65



$100

$150

$200

$250

$300

$350

($ in

bill

ion

s)





Services

Business Services




Consumer

PAGE |










NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai



7

OUR FIRM



PAGE |

wwwharriswilliamsde


8



Federal Reserve




PitchBook


DISCLOSURES


SampP Capital IQ





SOURCES










Services

Business Services




Consumer

PAGE |










NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai



7

OUR FIRM



PAGE |

wwwharriswilliamsde


8



Federal Reserve




PitchBook


DISCLOSURES


SampP Capital IQ





SOURCES






PAGE |

wwwharriswilliamsde


8



Federal Reserve




PitchBook


DISCLOSURES


SampP Capital IQ





SOURCES






HW&Co. Industry Reader Template...value. Customers are branching out. They’re trying new things....

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Transcript of HW&Co. Industry Reader Template...value. Customers are branching out. They’re trying new things....