business services monthly december 2016
TRANSCRIPT
4.0%
(3.2%)
0.3%
2.7%
8.1%
(8%)
(6%)
(4%)
(2%)
—
2%
4%
6%
8%
10%
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
•
•
•
Eureka Growth Capital, a Pennsylvania-based private equity firm, acquired Merit Service Solutions, a provider of outsourced exterior facilities management servicesMerit has seven locations and a nationwide network of thousands of providers who perform facilities services, such as landscaping, snow management and parking lot servicesThe Company serves a diverse customer base, including national retailers, commercial property managers, government-owned properties and other institutional customers
Indu
stri
al •
•
•
EQT Partners, a Swedish private equity firm, acquired CHEP Aerospace Solutions, a Swiss provider of unit load device (ULD) services and asset management solutions for the aviation industry, for $130 millionCHEP is a global leader in the pooling, management, maintenance and repair of ULDs (specialized cargo containers), serving more than 90 airlines across a network of 48 global service centers and 420 airportsCHEP was a subsidiary of Brambles, an Australian supply-chain logistics provider
Dis
trib
utio
n
•
•
•
Advent International, a Boston-based private equity firm, has agreed to acquire Brammer (LSE:BRAM), a distributor of industrial maintenance, repair and overhaul (MRO) products, for $417 million (12.0x EBITDA)Brammer's extensive product portfolio includes bearings, pulleys, motors and linear motion products used across multiple industries, including aerospace, automotive, construction, petroleum and utilityAdvent will look to leverage its distribution and power manufacturing sector experience to execute a turnaround strategy for Brammer, who has been hurt by lower demand from commodity customers
Logi
stic
s
•
••
Dunavant Global Logistics Group, a Memphis-based provider of supply chain and logistics management services, has agreed to acquire John M. Brining Company, an Alabama-based international freight forwarderBrining is family-owned and specializes in customs brokerage and customized delivery shipping alternativesConcurrent with the transaction announcement, the Company announced the opening of Dunavant International Freight Agency in China
BPO
•
•
Bain Capital, a Boston-based private equity firm, has agreed to acquire MSX International, a Detroit-based provider of retail network and human capital solutions MSX offers consulting, business process outsourcing, technical staffing and vendor management services to the automotive industry, serving more than 200 customers in over 40 countries
Tab - 1. Headline Transactions Page 1
Business Services Headline Transactions
20.9%
12.9%
28.3%
22.4%
32.4%
7.7% 6.0%
8.6%
16.7% 14.1%
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
0.8x
0.6x
1.1x 1.1x 1.1x
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
11.1x 10.2x
12.5x 10.8x
9.7x
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 MonthlyDecember 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
Facilities Services Transactions Industrial Services Transactions
Distribution Transactions Logistics Transactions
BPO TransactionsTarget Acquiror Target Description
Actuarial Consultants, Inc.
CBIZ, Inc. Offers business consulting servicesto retirement plan andcompensation clients
Lindorff Group AB Intrum Justitia AB Provides credit managementservices to businesses
The Centre Group, Inc.
F&H Solutions Group, LLC
Provides executive searches andoutsourced human resources (HR)services
4. Transactions (for PDF)
Target Acquiror Target Description
Tricorbraun Holdings Inc.
AEA Investors LP Distributes rigid packaging solutions
Paynes Marine Supply Inc.
Brunswick Corporation Distributes and wholesales marineequipment and products to dealers,manufacturers, shipyards andgovernment agencies
Acorn Industrial Services Group Ltd.
Axel Johnson International AB
Distributes industrial partsincluding bearings, linear systemsand power transmissions
4. Transactions (for PDF)
Target Acquiror Target Description
EnSite Solutions, LLC
Cushman & Wakefield, Inc.
Provides system maintenance,repair and facility managementservices in the United States andCanada
Window Genie, Inc. The Dwyer Group, Inc. Provides window cleaning services
Source Security & Investigations, Inc.
Allied Universal Provides security services in Canadaand internationally
4. Transactions (for PDF)
Target Acquiror Target Description
Penn Tank Truck Wash, Inc.
QualaWash Holdings, LLC
Offers tank cleaning services
EMS Management, Inc.
Arrow Material Services, LLC
Provides environmental cleaningsolutions to the rail, marine, bargeand terminal assets
M & R Facilities Management Ltd.
Cooperative Facility Support Ltd
Provides industrial services andengineering support tomanufacturing industries
4. Transactions (for PDF)
Target Acquiror Target Description
Elite Paloumé Forwarders NV
Bertschi AG Provides logistics solutionsincluding freight forwarding,business process management andtraining and consultancy services
Airlog Group Holding AB
Scan Global Logistics A/S Provides logistics services includingairfreight and ocean freightforwarders, courier and handlingservices
Cobalt Ground Solutions Ltd.
Groupe CRIT SA Provides ground handling solutionsfor airlines at London HeathrowAirport
4. Transactions (for PDF)
EBITDA Multiples Over Time
11.1x
10.2x
12.5x
10.8x
9.7x
5.0x6.0x7.0x8.0x9.0x
10.0x11.0x12.0x13.0x14.0x
Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Nov 16
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