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Business Services Monthly December 2015 - TM Capital...
Transcript of Business Services Monthly December 2015 - TM Capital...
4.4%
(0.8%)
5.1%
3.8%
6.6%
(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
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Thomas H. Lee Partners and Goldman Sachs (Merchant Banking Division) have acquired GCA Services Group from BlackstoneGCA Services Group is a leading national provider of facility services, including janitorial services, facilities maintenance services and staffing servicesGCA Services Group has more than 37,000 employees and serves over 930 clients in a variety of sectors
Indu
stri
al •
••
Team, Inc., a leading provider of specialty industrial services, has acquired Furmanite Corporation, a global specialized technical services provider, for $360m (9.2x EBITDA)The acquisition adds depth to Team's balanced portfolio of NDT inspection/assessment services and specialty mechanical servicesThe deal significantly expands Team's global presence, now covering 220 locations in 22 countries on 6 continents
Dis
trib
utio
n
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••
Needham Electric Supply Corporation, a wholesale electrical distributor, has been acquired by WESCO International, a leading provider of electrical, industrial and communications OEM productsThe acquisition expands WESCO's footprint in the northeast, enhances national market share in the electrical industry and is expected to be accretive within one yearAcquisitions are expected to remain vital to the growth of WESCONeedham represents WESCO's fifth acquisition since 2014
Logi
stic
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Copper Logistics, a provider of domestic and international transportation and logistics services, has been acquired by Radiant Logistics, a leading third party logistics company, as Radiant continues its active yearThe MCA transaction is the fourth asset-light acquisition completed by Radiant in the past year Company revenue has doubled in 2015 as a result of Radiant’s aggressive buy-to-grow strategy – management has stated it will continue to use its credit facility to complete additional bolt-on acquisitions
BPO
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System One Holdings, a portfolio company of MidOcean Partners, has acquired Precision Resource Company, a provider of technical staffing services to power generating, transmission, refining and production facilities in the USThe deal significantly boosts System One's Industrial and Energy Technical Solutions offerings, and represents the third add-on acquisition since being acquired by MidOcean Partners in 2013
Copper Logistics, Inc.
Tab - 1. Headline Transactions Page 1
Business Services Headline Transactions
19.5%
13.8%
28.0%
22.5%
34.1%
7.4% 5.7%
8.4%
15.0% 14.6%
0%
5%
10%
15%
20%
25%
30%
35%
—
5%
10%
15%
20%
25%
30%
35%
40%
Facilities Industrial Distribution Logistics BPO
LTM EBITD
A M
arginLTM
Gro
ss M
argi
n
0.8x
0.5x
1.1x 1.2x
1.6x
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
10.7x
8.8x 9.9x
8.5x
10.2x
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 MonthlyDecember 2015
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
EmployeeScreenIQ, Inc.
SterlingBackcheck Provides background check andsubstance abuse screening servicesfor Fortune 100 companies
Proffice AB Randstad Nordic AB Provides staffing, recruitment, andoutplacement assistance servicesfor companies in Europe
DynaVenture Corp. Golden Opportunities Fund, Westcap Management
Operates as a management supportcenter that offers strategic planning, accounting, managementinformation systems and more
4. Transactions (for PDF)
Target Acquiror Target Description
Stauber Performance Ingredients, Inc.
Hawkins Inc. Distributes ingredients tonutritional, food, pharmaceutical,cosmetic, and pet care industriesworldwide
Kerkhoff Associates Inc.
Calverton Holdings LLC Manufactures and distributesstructural building components forresidential, light commercial andagricultural structures
Polygon Aerospace, Inc.
Herndon Aerospace & Defense
Manufactures and distributesaircraft fasteners serving aerospacemanufacturing and maintenanceindustries
4. Transactions (for PDF)
Target Acquiror Target Description
MPA, Inc. Jones Lang LaSalle Incorporated
Provides owner representative,development management andproject management services
Rock River Environmental Services, Inc.
Waste Connections Inc. Provides waste disposal andcomposting, waste hauling andrecycling and environmental andremediation services
STORY DESIGN a.s. Umdasch Shopfitting Group GmbH
Designs and develops commercialspace, including interiors of salesand commercial outlets andbranches, office space, hotels,
4. Transactions (for PDF)
Target Acquiror Target Description
Rose Paving Company
Merit Capital Partners; Merit Mezzanine Fund V, L.P.
Provides parking lot managementsolutions to commercial andindustrial properties in NorthAmerica
Clean Venture, Inc. Kinderhook Industries Offers demolition, environmentaland other industrial services
ATC Group Services, Inc.
Bernhard Capital Partners Management LP
Operates as a professionalinfrastructure and environmentalservices company
4. Transactions (for PDF)
Target Acquiror Target Description
Norfolk Southern Corporation
Canadian Pacific Railway Limited
Provides rail transportationservices, freight services and otherlogistics services
The Secor Group, Inc.
The Suddath Companies Provides moving, storage, andlogistics services such as trucking,archiving & shredding anddocument management services
ShipNorthAmerica Transportation, Inc.
Tandet Management Inc.
Provides various freight transportsolutions for businesses throughoutNorth America
4. Transactions (for PDF)
EBITDA Multiples Over Time
10.7x
8.8x
9.9x
8.5x
10.2x
5.0x6.0x7.0x8.0x9.0x
10.0x11.0x12.0x13.0x14.0x
Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 15 Q3 15 Nov '15
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