TOM MULLINS CHIP GRAYSON PAUL JONES - … Logistics, Inc. 3.81 57.3% 188.0 231.3 9.3x 7.0x 20.1x...
Transcript of TOM MULLINS CHIP GRAYSON PAUL JONES - … Logistics, Inc. 3.81 57.3% 188.0 231.3 9.3x 7.0x 20.1x...
KEVIN FIELDER
Senior Vice President
O: 727.567.5054 | C: 404.889.4164
MATT STEMMLER
Vice President
O: 901.531.3371 | C: 901.438.0909
TOM MULLINS
Managing Director
O: 727.567.1113 | C: 727.560.6700
CHIP GRAYSON
Managing Director
O: 901.529.3701 | C: 901.230.4244
PAUL JONES
Managing Director
O: 727.567.5025 | C: 727.415.0390
MAY 2018
©2018 Raymond James & Associates, Inc. member New York Stock Exchange/SIPC
Corporate Headquarters
880 Carillon Parkway
St. Petersburg, FL 33716
Memphis Office
50 North Front Street, 20th Floor
Memphis, TN 38103
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EXECUTIVE FREIGHT TRENDS INSIGHT
FIVE YEAR TRANSPORT & LOGISTICS STOCK INDEX
See publicly traded freight transportation & logistics trading multiples page for companies within each industry.
Past performance does not guarantee future results. There is no assurance these trends will continue. The market value of securities fluctuates and you may incur a profit or a loss. This analysis does not
include transaction costs and tax considerations. If included, these costs would reduce an investor’s return. The S&P 500 is an unmanaged index of 500 widely held stocks.
Select Transport & Logistics Stock Performance
5 Year 3 Year 1 Year 6 Months 3 Months
Asset-Based Truckload 69.2% 14.9% 32.3% 1.9% (2.3%)
Asset-Light Transport 70.2% 61.0% 63.6% 25.9% 5.3%
LTL 216.8% 94.5% 71.5% 22.1% 8.7%
Railroads 76.9% 41.6% 23.5% 15.2% 5.1%
Forwarding & Logistics 63.5% 43.2% 33.7% 15.5% 1.1%
Integrated 66.6% 25.0% 17.2% 7.0% 3.2%
S&P 500 65.7% 29.9% 13.7% 5.0% (1.7%)
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Asset-Based Truckload Asset-Light Transport LTL Railroads Forwarding & Logistics Integrated S&P 500
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EXECUTIVE FREIGHT TRENDS INSIGHT
Source: S&P Capital IQ
Publicly Traded Freight Transport Trading Multiples
Share % of Market Enterprise Enterprise Value / Enterprise Value / Price /
Price 52 Week 52 Week Value Value EBITDA EBIT EPS
Company Name 5/23/18 High High ($ MM) ($ MM) 2018E 2019E 2018E 2019E 2018E 2019E
Asset-Based Truckload
Celadon Group Inc. $19.19 19.33 99.3% $400.3 ($136.8) NA NA NA NA NA NA
Covenant Transportation Group, Inc. 30.66 33.36 91.9% 562.0 737.6 5.8x 5.2x 15.5x 12.3x 16.8x 13.4x
Heartland Express, Inc. 18.49 25.22 73.3% 1,521.9 1,416.9 8.1x 7.0x 19.5x 14.9x 25.6x 21.3x
JB Hunt Transport Services Inc. 124.61 129.74 96.0% 13,676.6 14,669.6 11.7x 10.3x 17.9x 15.3x 23.6x 19.7x
Knight Transportation Inc. 40.22 51.94 77.4% 7,171.9 7,961.8 8.4x 7.4x 14.2x 11.8x 17.5x 14.7x
Marten Transport Ltd. 21.95 29.60 74.2% 1,198.3 1,187.9 7.5x 6.7x 17.5x 14.5x 23.9x 20.0x
P.A.M. Transportation Services, Inc. 41.20 43.20 95.4% 256.0 405.4 NA NA NA NA NA NA
USA Truck Inc. 23.26 29.15 79.8% 186.2 277.1 5.6x 4.5x 14.5x 9.8x 16.7x 10.2x
Werner Enterprises Inc. 38.20 43.95 86.9% 2,761.9 2,798.1 6.6x 6.0x 14.4x 12.3x 19.1x 16.5x
Median 7.5x 6.7x 15.5x 12.3x 19.1x 16.5x
Asset-Light Transport
Forward Air Corp. 59.03 64.80 91.1% 1,736.4 1,764.5 10.8x 9.9x 14.9x 13.6x 19.6x 17.5x
Landstar System Inc. 111.75 118.60 94.2% 4,701.1 4,594.6 12.6x 12.0x 14.3x 13.6x 19.3x 18.1x
Radiant Logistics, Inc. 4.08 6.65 61.4% 201.4 242.2 7.7x NA 11.5x NA 12.6x NA
Roadrunner Transportation Systems, Inc. 2.14 9.75 21.9% 82.4 514.0 4.0x NA 5.9x NA 2.1x NA
Universal Logistics Holdings, Inc. 24.35 25.65 94.9% 691.4 948.3 NA NA NA NA 17.1x 14.3x
XPO Logistics, Inc. 107.69 111.09 96.9% 12,992.3 17,984.1 11.1x 9.9x 20.6x 17.2x 31.0x 25.2x
Median 10.8x 9.9x 14.3x 13.6x 18.2x 17.8x
LTL
ArcBest Corporation 47.20 49.85 94.7% 1,210.3 1,283.4 6.0x 5.9x 11.3x 10.7x 16.2x 15.0x
Old Dominion Freight Line Inc. 149.91 152.50 98.3% 12,322.5 12,207.6 13.0x 11.8x 17.1x 15.4x 23.4x 20.8x
Saia, Inc. 79.25 80.90 98.0% 2,016.1 2,158.2 9.3x 8.2x 15.8x 13.4x 20.9x 17.9x
YRC Worldwide Inc. 10.53 17.61 59.8% 357.6 1,153.6 3.8x 3.4x 8.9x 7.0x 11.4x 6.6x
Median 7.7x 7.0x 13.5x 12.0x 18.6x 16.5x
Railroads
CSX Corp. 63.55 64.67 98.3% 55,628.7 67,438.7 12.0x 11.2x 15.7x 14.5x 19.4x 16.9x
Canadian National Railway Company 83.76 84.43 99.2% 61,587.5 70,646.4 13.7x 12.5x 17.2x 15.6x 21.0x 18.5x
Canadian Pacific Railway Limited 182.56 187.19 97.5% 26,119.8 32,537.9 12.4x 11.6x 15.8x 14.6x 17.9x 16.0x
Kansas City Southern 108.72 114.91 94.6% 11,154.7 14,039.7 10.4x 9.5x 14.1x 12.8x 17.7x 15.5x
Norfolk Southern Corp. 150.49 157.15 95.8% 42,519.7 52,014.7 10.9x 10.3x 14.2x 13.3x 17.4x 15.7x
Genesee & Wyoming Inc. 76.86 84.40 91.1% 4,674.7 7,195.2 10.0x 9.2x 16.5x 14.7x 20.1x 16.9x
Union Pacific Corporation 144.27 146.73 98.3% 111,892.8 128,342.8 12.1x 11.4x 15.3x 14.3x 18.9x 17.0x
Median 12.0x 11.2x 15.7x 14.5x 18.9x 16.9x
Forwarding and Logistics
Expeditors International of Washington Inc. 73.56 73.89 99.6% 12,849.5 11,719.4 13.6x 13.0x 14.5x 13.7x 23.2x 21.8x
Hub Group Inc. 48.30 52.25 92.4% 1,659.7 1,926.1 10.4x 9.2x 16.6x 14.4x 19.9x 17.3x
Echo Global Logistics, Inc. 27.65 32.95 83.9% 784.4 964.7 10.9x 10.1x 15.7x 13.9x 18.8x 16.5x
CH Robinson Worldwide Inc. 87.44 100.18 87.3% 12,175.0 13,226.2 13.9x 12.8x 15.6x 14.3x 20.0x 18.2x
Median 12.2x 11.5x 15.6x 14.1x 20.0x 17.7x
Integrated
FedEx Corporation 250.47 274.66 91.2% 66,929.4 81,720.4 8.6x 7.5x 13.0x 10.9x 14.4x 13.0x
United Parcel Service, Inc. 115.28 135.53 85.1% 99,335.4 118,300.4 11.6x 10.5x 15.5x 13.9x 15.9x 14.6x
Median 10.1x 9.0x 14.2x 12.4x 15.2x 13.8x
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EXECUTIVE FREIGHT TRENDS INSIGHT
Source: S&P Capital IQ
Historical 2013 – 2016 growth rates reflective of revenue and EBITDA increases due to acquisitions
REVENUE GROWTH RATES BY SECTOR
EBITDA GROWTH RATES BY SECTOR
Freight Transport Growth Estimates
4.3%
68.7%
22.0%
-5.1%
18.1%
29.0%
7.5%5.0%
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TL Asset-Light LTL Rail Forwarding/3PL Integrated
2013-2017 2018E-2019E
20.7%
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TL Asset-Light LTL Rail Forwarding/3PL Integrated
2013-2017 2018E-2019E
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EXECUTIVE FREIGHT TRENDS INSIGHT
FORWARDING & LOGISTICS
LTL RAILROADS
ASSET-LIGHT TRANSPORTASSET-BASED TRUCKLOAD
INTEGRATED
Source: S&P Capital IQ; Multiples calculated as an average over the specified period,
except current which is a snapshot in time
Historical EBITDA Multiples by Sector
8.1x
7.6x
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6.9x6.6x
6.3x6.5x6.2x
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EXECUTIVE FREIGHT TRENDS INSIGHT
Select M&A Transactions in Last Six Months
Date Target
Closed Sector Acquiror Transaction Notes
Pending Rail GE Transportation
Wabtec Corp
Pending 3PL Bartlett and Company
Savage Companies
Pending 3PL Vertex Aerospace
American Industrial Partners
Pending Marine Targa Resources (inland tank barge division)
Kirby Corporation
Pending 3PL Ceva Logistics
CMA CGM SA
Pending Trucking Aveda Transportation and Energy Services
Daseke, Inc.
Pending 3PL Cloverleaf Cold Storage
Blackstone
05/17/18 3PL Roar Logistics (Phoenix-based division)
Redwood Logistics
05/09/18 3PL Direct Connect Logistix
Huron Capital
05/09/18 3PL Bridge Logistics Services
Smart Warehousing
05/08/18 3PL Alaskan Express
AFF Global Logistics
General Electric announced a $11.1 billion deal to merge its transportation business
with U.S. rail equipment manufacturer Wabtec Corp. GE will receive a $2.9 billion up-
front payment in cash and a 9.9% stake in the combined company, with GE
shareholders awarded 40.2% and existing Wabtec shareholders owning 49.9%. The
deal is tax-free for GE and Wabtec shareholders because it is structured as a Reverse
Morris Trust, with GE spinning off the transportation unit and simultaneously merging it
with Wabtec.
Kirby Corporation announced the signing of an agreement to acquire Targa Resources
Corp's inland marine tank barge business for approximately $69.3 million in cash. The
purchase will be financed through additional borrowings. The closing of the acquisition
is expected to occur near the end of the second quarter and is subject to customary
closing conditions.
Supply chain provider Savage Companies, based in Salt Lake City, Utah, and grain
and milling firm Bartlett and Company, based in Kansas City, Missouri, are pleased to
announce the planned merger of their businesses to form a new combined entity,
Savage Enterprises. Together, Savage and Bartlett have more than 180 years of
experience providing transportation, logistics and materials management services for
customers across multiple industries, with a focus on energy and agriculture.
AFF Global Logistics ("AFF"), the largest U.S. domestic ocean freight forwarder
specializing in less-than-container-load freight shipments, has acquired Alaskan
Express ("AE"). Headquartered in Sumner, Washington, AE is a highly-regarded
domestic freight forwarder with decades of experience serving the Alaska market.
L3 Technologies has agreed to sell its Vertex Aerospace business to American
Industrial Partners for $540 million in cash. The deal is expected to close this summer.
Vertex Aerospace provides aviation logistics services, supply chain management, and
maintenance, repair and overhaul services.
Huron Capital has invested in Indianapolis, Indiana-based Direct Connect Logistix to
create a new platform in the third-party logistics industry. Direct Connect Logistix is a
nationwide transportation and logistics services company led by co-founder and CEO
Roger Singh, co-founder and President Greg Humrichouser and Vice President John
Leininger.
Redwood Logistics purchased the Phoenix-based freight management services
division of Roar Logistics to expand its presence in the Southwest. Terms weren’t
disclosed. Chicago-based Redwood is a full-service 3PL owned by its management
and CI Capital Partners, a private equity investment firm with about $2.4 billion in
assets under management.
Smart Warehousing has acquired Bridge Logistics Services of Milwaukee. Both are
third-party logistics companies that allow customers to outsource much of their
warehouse and e-commerce fulfillment work. The deal involves Bridge Logistics’
200,000 square feet of warehouse space and 40 customers, according to a release. In
all, Smart Warehousing has 21 warehouses, totaling more than 7 million square feet,
in 10 markets nationwide.
CMA CGM SA has agreed to buy a 25% equity stake in global logistics operator Ceva
Logistics as the French container shipping line moves to expand its reach in
international supply chains beyond port-to-port transportation. The agreement is
subject to the completion of the Ceva IPO and to approvals from various regulatory
authorities.
Cloverleaf Cold Storage, a leading cold storage warehousing and food logistics
company owned by the Feiges and Kaplan families since its founding in 1952,
announced that it has entered into a definitive agreement to recapitalize the Company
whereby private equity funds affiliated with Blackstone will make a majority equity
investment into Cloverleaf alongside the existing family shareholders, who will continue
to operate the business post-closing, to support future growth in the Company. Terms
of the transaction were not disclosed.
Daseke, Inc. has entered into a merger agreement with Aveda Transportation and
Energy Services, one of the largest oil rig moving companies in North America. Aveda
provides specialized transportation services and equipment required for the
exploration, development and production of petroleum resources in the U.S. and
Canada. Aveda owns one of the largest and youngest fleets in the industry with
approximately 430 tractors, 660 trailers and 200 light-duty trucks.
7
EXECUTIVE FREIGHT TRENDS INSIGHT
Select M&A Transactions in Last Six Months
Date Target
Closed Sector Acquiror Transaction Notes
05/08/18 3PL Total E-com Home Delivery
Metro Supply Chain Group
05/02/18 3PL GTG Technology Group
McLarty Capital Partners
04/26/18 Equipment Boxwheel Trailer Leasing
Leasing Crosstimbers Capital Group
04/05/18 Trucking Unified Logistics
Prodos Capital
04/04/18 Passenger Mears Transportation, LLC
Transport Palm Beach Capital
04/02/18 3PL MXD Group
Ryder System Inc.
03/27/18 3PL P2P Mailing Limited
FedEx Corp.
03/19/18 3PL Aeropost
PriceSmart
03/16/18 Trucking Abilene Motor Express
Knight-Swift Transportation
03/16/18 3PL Michael Dusi Logistics
Headhaul Capital Partners
Tattooed Dog Holdings
03/15/18 3PL Summit Northwest Corporation
St. George Logistics
03/12/18 Trucking Jarvis Trans Inc.
RoadOne IntermodaLogistics
Boxwheel Trailer Leasing has received a significant capital investment from
Crosstimbers Capital Group, a private investment firm that partners with growing and
scalable entrepreneur-owned companies. The new capital will enable Boxwheel to
build an optimized fleet of dry vans, flat beds, and refrigerated trailer units to better
serve its customers seeking long haul, cartage, and storage solutions.
Palm Beach Capital has made an investment in Mears Transportation, LLC, Central
Florida’s oldest transportation company and one of the largest private transportation
companies in the country. Mears Transportation is a “full service” transportation
company with primary operations serving Central Florida residents and tourist
destinations, owning and operating nearly 1200 vehicles including 251 motor coaches,
620 taxicabs, 260 luxury vehicles and 52 shuttle vans.
McLarty Capital Partners has invested in GTG Technology Group, leading provider of
cloud-based software-as-a-service to the intermodal and freight management
industries. GTG will use the capital infusion to accelerate and expand its leading
transportation technology solutions.
Metro Supply Chain Group has acquired Total E-com Home Delivery Inc., a
Mississauga-based operation with 18 years' experience in door to door fulfilment of
"big and bulky" online retail purchases. Total E-com Home Delivery's operations will
continue under Metro's Metro To Home division, which leverages leading-edge
software to optimize delivery capabilities for major home furnishings and big box
retailers.
Unified Logistics has partnered with Prodos Capital, an investment firm based in New
York. Unified Logistics, headquartered in Bethesda, MD, is a specialized logistics
company focused on the handling, transport and delivery of hard to deliver cargo,
predominantly highly urgent and/or over-dimensional, permitted freight.
Ryder System Inc. has acquired MXD Group, an e-commerce fulfillment provider, with
its North American network of facilities, including last-mile capabilities. With the
acquisition, Miami-based Ryder becomes the second-largest last-mile delivery
provider of big and bulky goods.
FedEx Corp. has acquired P2P Mailing Limited, a leading provider of worldwide e-
commerce transportation solutions, for £92 million. P2P’s capabilities complement and
expand the FedEx portfolio of offerings important to the rapidly growing global e-
commerce marketplace. P2P is headquartered in Laindon, United Kingdom and will
operate as a subsidiary of FedEx Cross Border within the FedEx Trade Networks
operating company.
St. George Logistics has expanded its leading import/export presence into the Pacific
Northwest and Canada through the acquisition of Summit Northwest Corp. Founded in
1999, Summit is a comprehensive import/export logistics provider in the gateway cities
of Seattle-Tacoma, Portland and Vancouver.
RoadOne IntermodaLogistics purchased Jarvis Trans Inc., to continue its expansion in
the Northeast. The deal is the fourth in the last 18 months for the Randolph, Mass.-
based RoadOne. Leadership at Jarvis will remain in place, with President Peter
Lawless and COO Eric Jones continuing in their roles.
PriceSmart, the largest operator of membership warehouse clubs in Central America,
the Caribbean, and Colombia, has acquired Aeropost, an end-to-end cross-border
package delivery service and online retailer headquartered in Miami, Florida. Aeropost
is one of the largest and most visible cross border logistics and e-commerce providers
in Latin America and the Caribbean.
Michael Dusi Logistics ("MDL") has received an investment from Headhaul Capital
Partners and Tattooed Dog Holdings. MDL provides a broad suite of specialized
logistics solutions to the California wine and craft beer industry including value-added
warehousing, direct-to-consumer fulfillment and wine clubs, regional bulk, refrigerated,
flatbed and dry-van trucking as well as truckload and LTL brokerage. Proceeds from
the investment will be used to support the Company's growth initiatives and for general
working capital purposes.
Knight-Swift Transportation has acquired Abilene Motor Express, a carrier operating
about 450 trucks with most of its business in the dry van and refrigerated space.
Terms of the deal were not disclosed, but Abilene generated about $100 million in
annual revenue and had an operating ratio in the low-90s, putting its operating income
just shy of $10 million, according to an SEC filing.
8
EXECUTIVE FREIGHT TRENDS INSIGHT
Select M&A Transactions in Last Six Months
Date Target
Closed Sector Acquiror Transaction Notes
03/09/18 3PL Freight Force
St. George Logistics
03/01/18 3PL LaserShip
Greenbriar Equity Group
03/01/18 Marine Gulf Stream Marine
LOGISTEC Corporation
02/22/18 Trucking Central Arizona Freight
Red Arts Capital
02/15/18 Marine Higman Marine
Kirby Corporation
02/15/18 3PL Tidewater Logistics
Apollo Global Management
02/07/18 3PL Cargomatic
Genesee & Wyoming
02/02/18 Trucking Fore Transportation
Universal Logistics Holdings
02/02/18 3PL Tibbett Logistics
Yusen Logistics
02/01/18 Trucking Robin Hood Container Express
RoadOne IntermodaLogistics
02/01/18 3PL Safe Fleet Holdings
Oak Hill Capital Partners
01/30/18 3PL Global Solutions A/S
Bollore Logistics
St. George Logistics has expanded its position in first and final mile delivery services
through the acquisition of Freight Force. Headquartered in Anaheim, California, Freight
Force operates the nation's largest network of independent carriers serving freight
forwarders and other 3PL providers.
LaserShip, a portfolio company of Monitor Clipper Partners, has been acquired by
Greenbriar Equity Group. LaserShip is a leading regional asset-light provider of "last
mile" parcel delivery services for Fortune 500 companies across a variety of
industries. LaserShip leverages its robust network of sorting centers and delivery hubs
to provide services throughout the East Coast.
LOGISTEC Corporation has expanded its network of terminals through the strategic
acquisition of Gulf Stream Marine. Headquartered in Houston, Texas, Gulf Stream
Marine is a leader in cargo handling, stevedoring and terminal operations in the U.S.
Gulf Coast region.
Red Arts Capital has added a second regional less-than-truckload carrier to its
holdings with the purchase of Central Arizona Freight in Phoenix. Launched in 1998,
Central Arizona Freight provides LTL and pool distribution service for goods moving
throughout Arizona, California, New Mexico and to and from El Paso, Texas.
RoadOne IntermodaLogistics has acquired Robin Hood Container Express to obtain a
greater grip on the fast-growing U.S. Southeast port region. Robin Hood is a second-
generation intermodal trucking company with operations throughout the U.S. Southeast
including Savannah, Charleston, and Wilmington, North Carolina.
Yusen Logistics has acquired Tibbett Logistics, a wholly owned subsidiary of UK-
based Keswick Enterprises Group. Tibbett Logistics was established in Romania in
2010, although the business can trace its beginnings back to 2004. The company has
since developed into a domestic market leader within the contract logistics,
warehousing, transport and intermodal sectors.
Tidewater Logistics Corporation announced the acquisition of a majority interest in the
Company by certain funds managed by affiliates of Apollo Global Management, LLC.
Tidewater Logistics is a leading provider of frac sand supply chain solutions, delivering
procurement, transloading, last mile and wellsite operations services to E&P,
Pressure Pumping and Sand Mining customers.
Kirby Corporation has acquired Higman Marine, an operator of tank barges and
towboats participating in the inland tank barge transportation industry in the United
States. Higman's marine transportation fleet consists of 159 inland tank barges with
4.8 million barrels of capacity, and 75 inland towboats which primarily transport
petrochemicals, refined petroleum products, crude oil, natural gas condensate, and
black oil on the Mississippi River System and Gulf Intracoastal Waterway.
Genesee & Wyoming Inc. has made an investment in and formed a strategic alliance
with Cargomatic, Inc., a technology platform connecting shippers and truck carriers
with a focus on short-haul markets. Terms of the investment were not disclosed.
Founded in 2013 and headquartered in Long Beach, CA, Cargomatic focuses on the
fragmented short-haul and drayage trucking markets connecting shippers and carriers
real-time via its web platform and apps.
Safe Fleet Holdings, the market-leading provider of safety and productivity solutions for
fleet vehicles, has beeen acquired by Oak Hill Capital Partners. Oak Hill acquired the
Company from its prior owner, The Sterling Group.
Universal Logistics Holdings, a leading asset-light provider of customized
transportation and logistics solutions, has acquired Fore Transportation. Fore
Transportation offers a full suite of intermodal logistics solutions, including local and
regional drayage services, yard services, chassis rental, and repair and maintenance.
Bollore Logistics has acquired a majority stake in the Danish freight forwarder Global
Solutions A/S. This acquisition is part of Bollore Logistics' strategic development
through external growth. This latest transaction will expand further Bolloré Logistics'
global end-to-end offering in the Scandinavian markets.
9
EXECUTIVE FREIGHT TRENDS INSIGHT
Select M&A Transactions in Last Six Months
Date Target
Closed Sector Acquiror Transaction Notes
01/23/18 3PL Veeco Holdings, LLC
Undisclosed Buyer
01/17/18 3PL Transflo
True Wind Capital Management
01/12/18 3PL TRAC Intermodal (assets)
Direct ChassisLink, Inc.
01/12/18 3PL Piramide SeaAir
Rhenus Logistics
01/12/18 Marine LeBlanc Marine
Rock Hill Capital Group
01/10/18 3PL AJR Transportation
GlobalTranz Enterprises
01/08/18 3PL The Irwin Brown Co.
CH Powell Co.
01/02/18 3PL Redwood Logistics
CI Capital Partners
01/02/18 3PL Trucking Unlimited
TransForce
12/14/17 3PL Channel Distribution Corporation
St. George Logistics
12/12/17 Trucking H&M Terminal Transport
IMC Companies
12/11/17 3PL Grocontinental Limited
AGRO Merchants Group
Direct ChassisLink, Inc. has acquired TRAC Intermodal’s fleet of approximately 72,000
53-foot domestic chassis and related customer and hosting contracts with major
Class I railroads and intermodal shipping companies throughout the United States.
Financial terms of the transaction were not disclosed.
CH Powell Co. has acquired The Irwin Brown Co., a customs broker and international
freight forwarder specializing in trade between the US Gulf and Central and South
America.
Rock Hill Capital Group has completed a majority recapitalization of LeBlanc Marine,
LLC, a marine service company providing marine construction, barge & tug services,
and material offloading services along the Gulf Coast. LeBlanc was founded in 2004 by
Ben LeBlanc.
True Wind Capital Management has led a new investment in Transflo, partnering with
its management team to recapitalize the business. Based in Tampa, Florida, Transflo
is a leading mobile, telematics, and business process automation provider to the
transportation industry. True Wind’s investment serves as a capstone for Transflo’s
2017 growth.
Rhenus Logistics has enhanced its network of business sites in Brazil by acquiring
Piramide SeaAir. Pirâmide SeaAir has been operating as a licenced customs
clearance broker for more than 20 years and has developed its own customs
clearance software for this purpose. As a result of the acquisition, Rhenus can now
not only operate classic freight forwarding services, but also offer greater efficiency in
providing advice and completing customs clearance for imports and exports.
Veeco Holdings, LLC, a portfolio company of Lineage Capital, has been a acquired.
Veeco is a complete “port-to-door” logistics services company, providing end-to-end
omni-channel supply chain solutions including transportation, deconsolidation, e-
commerce fulfillment, distribution, warehousing, and brokerage services. The
Company operates in three divisions Veeco Services, Crest CFS, and Sundance
Logistics.
IMC Companies, a Memphis-based leader in nationwide intermodal logistics, has
added another top-tier company to its family of brands. IMC Companies has acquired
the drayage and depot operations of H&M Terminal Transport. The company will
operate under the name H&M Intermodal Services, as part of IMC Companies.
GlobalTranz Enterprises, a leading technology-driven freight management solution
provider, today announced it has acquired AJR Transportation, a Texas-based freight
brokerage and logistics company. The acquisition further solidifies GlobalTranz’s
position as a top freight brokerage firm and validates the continued strength of the
freight agent business model. AJR Transportation brings freight management
expertise and best practices that can be leveraged across the GlobalTranz network,
helping to improve operational excellence.
CI Capital Partners, a New York-based private equity firm, has acquired a majority
interest in Redwood Logistics, an industry leading provider of truckload, transportation
management and technology services. Redwood Logistics will combine with
Simplified Logistics, an Ohio-based less-than-truckload logistics provider acquired by
CI Capital in February 2017, to form a unique, full service logistics platform, which will
operate as Redwood Logistics.
TransForce, the nation's leading workforce management solutions firm specializing in
commercial truck drivers, has acquired the assets of Trucking Unlimited. Trucking
Unlimited operates www.truckdrivingjobs.com as their primary job board matching
motor carriers with professional truck drivers. Trucking Unlimited was founded in 2012
by co-Founders Serge Gorelyshev and Mike Pourshakori.
St. George Logistics (“STG”) has expanded its leading position in outsourced
import/export services through the acquisition of Channel Distribution Corp. (“CDC”).
CDC’s management, led by Founder Joe Tamari and Partner Alan Muir, will both
continue with the business and will join STG as shareholders and senior members of
its executive management team.
AGRO Merchants Group, a global leader in cold storage and logistics solutions, has
acquired UK-based Grocontinental Limited. This transaction reinforces AGRO’s
position as the leading cold storage and logistics provider in the United Kingdom and
Ireland, deepens its commodity expertise, and substantially enhances its value-added
service offerings for customers.
10
EXECUTIVE FREIGHT TRENDS INSIGHT
Select M&A Transactions in Last Six Months
Date Target
Closed Sector Acquiror Transaction Notes
12/07/17 3PL Apex Logistics Group
GlobalTranz Enterprises
12/07/17 Trucking Keen Transport
Wallenius Wilhelmsen Logistics
12/04/17 Trucking Moore Freight Service
The Roadmaster Group
Tennessee Steel Haulers
Daseke, Inc.
Daseke, the largest owner of flatbed equipment in North America, has acquired three
trucking firms in deals aimed at gaining access to higher margin freight. Daseke
bought privately held, Tennessee-based Moore Freight Service, which hauls massive
sheets of glass on proprietary trailers, as well as Roadmaster Group, a leading U.S.
carrier of ammunition and explosives, and Tennessee Steel Haulers & Co. The deals
included cash, stock swaps and assumption of debt.
GlobalTranz Enterprises, a leading technology-driven freight management solution
provider, has acquired Apex Logistics Group, a prominent enterprise shipping and
logistics company. The acquisition further solidifies GlobalTranz’s position as a top
freight brokerage firm and increases the company’s market share in third-party
logistics (3PL) services.
Wallenius Wilhelmsen Logistics has acquired Keen Transport from Platinum Equity.
Keen operates 14 High & Heavy Equipment Processing Centers (EPC's) and a
specialty trucking entity in the US. With its 450 employees Keen provides value-added
facility services, equipment modification, transportation and load consolidation for
about 20 Original Equipment Manufacturers (OEMs).
11
EXECUTIVE FREIGHT TRENDS INSIGHT
CASS FREIGHT SHIPMENTS INDEX
Source: Cass Information Systems Source: EIA National Average
DIESEL PRICES
ATA TRUCK TONNAGE
FLATBED SPOT RATES DRY VAN SPOT RATES
Source: DAT RateView Source: DAT RateView
Key Trucking Metrics
Source: American Trucking Association
0.95
1.00
1.05
1.10
1.15
1.20
1.25
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014 2015 2016 2017 2018
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014 2015 2016 2017 2018
1.35
1.45
1.55
1.65
1.75
1.85
1.95
2.05
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014 2015 2016 2017 2018
1.05
1.15
1.25
1.35
1.45
1.55
1.65
1.75
1.85
1.95
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014 2015 2016 2017 2018
-30%
-20%
-10%
0%
10%
20%
30%
70.0
80.0
90.0
100.0
110.0
120.0
Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Adjusted Truck Tonnage Index YOY Change
12
EXECUTIVE FREIGHT TRENDS INSIGHT
Source: AAR
(1) Excludes U.S. operations of CN and Canadian Pacific
RAILCAR CARLOADS(1)
Source: AAR
Source: AAR
(1) Excludes intermodal units
U.S. RAIL TRAFFIC(1)
CHEMICALS
Rail Volume Trends
Source: AAR
Cars vs 2017 Cumulative vs 2017
Total Carloads 261,273 1.2% 5,141,257 1.1%
Chemicals 31,862 4.7% 647,613 3.6%
Coal 78,519 -0.5% 1,643,405 0.8%
Farm and Food Products, Excluding Grain 16,018 1.0% 322,778 0.6%
Forest Products 10,636 4.9% 202,223 1.3%
Grain 22,225 -6.9% 459,615 -0.8%
Metallic Ores and Metals 23,639 1.8% 442,996 1.4%
Motor Vehicles and Parts 17,006 -4.4% 336,743 -3.2%
Nonmetallic Minerals and Products 40,836 6.6% 695,431 3.9%
Petroleum and Petroleum Products 10,655 10.2% 203,679 3.7%
Other 9,877 -1.6% 186,774 -3.5%
Intermodal Units 285,142 5.9% 5,443,730 5.9%
Total Traffic 546,415 3.6% 10,584,987 3.6%
Week 20, 2018 Year-To-Date
190,000
210,000
230,000
250,000
270,000
290,000
310,000
330,000
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52
2014 2015 2016 2017 2018
23,000
25,000
27,000
29,000
31,000
33,000
35,000
37,000
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52
2014 2015 2016 2017 2018
140,000
160,000
180,000
200,000
220,000
240,000
260,000
280,000
300,000
320,000
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52
2014 2015 2016 2017 2018
INTERMODAL
(CONTAINERS & TRAILERS)
13
EXECUTIVE FREIGHT TRENDS INSIGHT
Source: Port of Savannah
PORTS OF LOS ANGELES AND
LONG BEACH
PORT OF SAVANNAH PORT OF CHARLESTON
Source: Port of Charleston
Source: Port of Los Angeles & Long Beach Source: Port of New York & New Jersey
PORTS OF NEW YORK AND
NEW JERSEY
CONTAINER RATE BENCHMARK (HONG KONG TO LOS ANGELES)
Source: Drewry, JOC
Ocean Shipping Rates & Large U.S. Port Volume Trends
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TE
Us (
in t
housands)
2014 2015 2016 2017 2018
250
300
350
400
450
500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TE
Us (
in t
housands)
2014 2015 2016 2017 2018
140
190
240
290
340
390
440
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TE
Us (
in t
housands)
2014 2015 2016 2017 2018
80
100
120
140
160
180
200
220
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TE
Us (
in t
housands)
2014 2015 2016 2017 2018
14
EXECUTIVE FREIGHT TRENDS INSIGHT
TRANSPORT & INFRASTRUCTURE SECTOR EXPERTISE
TRANSPORT PRACTICE CREDENTIALS
• 13 dedicated professionals led by senior bankers with a 18-year average tenure with the company
• Completed over 160 M&A and financing transactions:
90+ advisory services transactions, leading all sector-focused investment banks
70+ equity and debt offerings raising over $14.0 billion in proceeds
• Extensive experience and industry knowledge with deep senior executive and private equity relationships
• Reverse Logistics
• Transportation
Management
• Last-Mile
• Air Freight
Forwarding
• Ocean Freight
Forwarding
• Customs
Clearance
• Freight Brokerage
• Intermodal
Marketing
• Compliance
• Global Trade
Management
LOGISTICS / SUPPLY CHAIN
TRUCKING
• Truckload
• LTL
• Intermodal
• Expedited
• Dedicated Contract
Carriage
• Dry Van
• Temperature-
Controlled
• Bulk
• Tank
• Flatbed
• Import
Deconsolidation
• Multi-Vendor
Consolidation
• Fulfillment
• Value-Added
Services
• Pool Distribution
• Kitting and Sub-
Assembly
WAREHOUSING & DISTRIBUTION RAIL & RAIL SUPPLIERS
• Short-line Railroads
• Maintenance and Repair
• Railcar Manufacturers
• Outsourced Services
• Equipment and Infrastructure
INFRASTRUCTURE & OTHER
• Port Services
• Marine / Terminals
• Component
Manufacturing
• Mobile Asset
Management
• Equipment Leasing
• Outsourced
Services
• Solid Waste
Hauling
• Specialized
• Air Cargo
• Passenger Transportation
AIRLINES & AVIATION
TRANSPORT & INFRASTRUCTURE EQUITY RESEARCH
Savanthi Syth, Airlines Analyst
• 6+ years of experience covering the airline industry
• Raymond James has longstanding recognition of being a leader in
aviation equity research
Tyler Brown, Transportation and Logistics Analyst
• 10+ years covering logistics, trucking, leasing, and rail companies
• Recognized by StarMine Top Analyst survey for his coverage of the
transportation services sector
Transport & Infrastructure Investment Banking
Investment
Banking• Over 300 investment banking professionals across 19 office locations focused on 11 industry sectors
• Since 2011, we have participated in raising more than $450 billion in capital and completed more than 400
advisory assignments, including nearly 350 M&A buy-side or sell-side advisory assignments
Equity Capital
Markets• Powerful institutional and retail distribution capabilities
• More than 6,700 financial advisors serving in excess of 2.8 million client accounts in the U.S.
• 300 experienced institutional salespersons servicing more than 2,400 institutional accounts
Equity Research • One of Wall Street’s leading research efforts with 84 fundamental and technical research
analysts covering more than 1,000 U.S. and more than 300 international companies
• Full-service financial services firm with investment banking, equity research, institutional sales & trading and
asset management operations
• Founded in 1962 and public since 1983 (NYSE: RJF)
• Fiscal 2016 revenue of nearly $5.4 billion
• International operations in Brussels, Buenos Aires, Calgary, Düsseldorf, Geneva, London, Munich, Paris,
Toronto and Vancouver
Raymond James
Overview
15
EXECUTIVE FREIGHT TRENDS INSIGHT
REPRESENTATIVE M&A ADVISORY EXPERIENCE
REPRESENTATIVE CAPITAL RAISING EXPERIENCE
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2016 INVESTMENT BANK
OF THE YEAR
SALE OF SEKO TO
GREENBRIAR EQUITY
B-to-B DEAL OF THE
YEAR
2016 INVESTMENT
BANKING FIRM
OF THE YEAR
RECEIVED THOMSON
REUTERS ANALYST
AWARDS
2015 M&A INVESTMENT
BANK OF
THE YEAR – USA
*
RJTRANSPORTANDINFRASTRUCTURE.COM
$300,000,000
Follow-on Offering
Co-Manager
$665,500,000
Follow-on Offering
Co-Manager
Initial Public Offering
Co-Manager
$340,000,000
Follow-On Offering
Sole Manager
$80,500,000$1,600,000,000
Senior Notes
Co-Manager
$1,600,000,000
Term Loan B
Co-Manager
Has received an investment
led by
$30,000,000
Has received an investment
led by
A portfolio company of
Has been acquired by
Has been acquired byHas acquired
Has acquired
A portfolio company of
A portfolio company of
Has received a majority
investment from
Has received an equity
investment from
Has been acquiredby
A portfoliocompany of
A portfoliocompany of
Has acquiredHas been acquired byHas acquiredHas received an equity
investment from
A portfolio company of
Has been acquired by
Has been acquired by
Has divested its freight
brokerage division to
Transport & Infrastructure Investment Banking
A portfolio company of
Has acquired
Initial Public Offering
Bookrunning Manager
$570,000,000
Has received a preferred
stock investment from
$540,500,000
September 2017
An affiliate of
Has been acquired by
$75,000,000
Start-Up Capital
Commitments
Has received an ABL
facility from
$292,000,000Follow-On Offering
Bookrunning Manager
$362,300,000
a portfolio company of
AN UNDISCLOSED
BUYER
has been acquired by
August 2017 May 2017 September 2016
August 2016 August 2016 February 2016 October 2015 October 2015
Has been acquired by
July 2015 June 2015
April 2015 February 2015 February 2015 October 2014 September 2014 February 2014 February 2014
December 2016 September 2016 October 2015 October 2015 June 2015 May 2015 May 2015
October 2017 September 2017 July 2017 July 2017 July 2017 May 2017 April 2017
Completed an out-of-court
restructuring led by
In conjunction with a new $80
million ABL facility led by
A portfolio company of
December 2017
a portfolio company of
has been acquired by
Criteria for the awards can be found at https://www.raymondjames.com/about-us/accolades
March 2018
Freight Force, Inc.
a portfolio company of
has been acquired by
a portfolio company of
May 2018
has been acquired by