Business Services Monthly October 2013 - TM Capital Corp....TM Capital Corp. is a partner-owned...
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5.1% 8.9% (1.2%) 3.7% 7.5% (4%) (2%) 0% 2% 4% 6% 8% 10% Facilities Industrial Staffing Logistics BPO 1-Year Revenue Growth 24.6% 43.3% 63.9% 32.4% 31.9% 0% 10% 20% 30% 40% 50% 60% 70% Facilities Industrial Staffing Logistics BPO 1-Year Stock Return S&P 500 Return Business Services Headline Transactions Leverage Multiples Gross & EBITDA Margins Business Services Monthly October 2013 1-Year Revenue Growth 1-Year Stock Returns 1.7x 1.5x 0.8x 0.7x 0.9x 0.0x 0.5x 1.0x 1.5x 2.0x Facilities Industrial Staffing Logistics BPO LTM Debt / EBITDA 20.6% 12.9% 22.4% 22.6% 32.3% 7.1% 6.2% 4.8% 12.8% 14.0% 0% 5% 10% 15% 20% 25% 30% 35% 0% 5% 10% 15% 20% 25% 30% 35% Facilities Industrial Staffing Logistics BPO LTM EBITDA Margin LTM Gross Margin Target Acquiror Acquisition Synopsis Facilities • • • Carillion adds John Laing's FM division, enhancing its position as a leading FM provider in the UK JLIS will be tucked into Carillion's Facilities Management & Property Services segment The acquisition is expected to contribute over $100m in revenue and ~1,500 employees Industrial • • Strengthens Quanta's presence in the Gulf of Mexico and in select international offshore markets Augments Quanta's industrial contracting capabilities by adding expertise in upstream oil & gas support services Staffing • • NY based New Mountain Capital acquires UK based talent acquisition and management firm, Alexander Mann Solutions, for an implied EV of ~415m With NMC's backing, Alexander Mann hopes to extend its geographic footprint, particularly in the US Logistics • • • Accelerates Ingram's growth in the rapidly expanding market for e-Commerce fulfillment services Combines Ingram's supply-chain expertise and Shipwire's award-winning cloud logistics platform The additional growth capital will enable Shipwire to develop its software solution for enterprise brands BPO • • RR Donnelley's acquisition of Consolidated Graphics is a landscape altering transaction in the commercial printing space; RRD plans to acquire CGX for an implied EV of ~$685m (5.8x LTM EBITDA) RRD's broad range of printing capabilities will benefit from CGX's balanced geographic footprint
Transcript of Business Services Monthly October 2013 - TM Capital Corp....TM Capital Corp. is a partner-owned...
5.1%
8.9%
(1.2%)
3.7%
7.5%
(4%)
(2%)
0%
2%
4%
6%
8%
10%
Facilities Industrial Staffing Logistics BPO
1-Ye
ar R
even
ue G
row
th
24.6%
43.3%
63.9%
32.4% 31.9%
0%
10%
20%
30%
40%
50%
60%
70%
Facilities Industrial Staffing Logistics BPO
1-Ye
ar S
tock
Ret
urn
S&P 500 Return
Business Services Headline Transactions
Leverage Multiples Gross & EBITDA Margins
Business Services Monthly October 2013
1-Year Revenue Growth1-Year Stock Returns
1.7x 1.5x
0.8x 0.7x
0.9x
0.0x
0.5x
1.0x
1.5x
2.0x
Facilities Industrial Staffing Logistics BPO
LTM
Deb
t / E
BITD
A
20.6%
12.9%
22.4% 22.6%
32.3%
7.1% 6.2% 4.8%
12.8% 14.0%
0%
5%
10%
15%
20%
25%
30%
35%
0%
5%
10%
15%
20%
25%
30%
35%
Facilities Industrial Staffing Logistics BPO
LTM EBITD
A M
argin LTM
Gro
ss M
argi
n
Target Acquiror Acquisition Synopsis
Faci
litie
s •••
Carillion adds John Laing's FM division, enhancing its position as a leading FM provider in the UKJLIS will be tucked into Carillion's Facilities Management & Property Services segmentThe acquisition is expected to contribute over $100m in revenue and ~1,500 employees
Indu
stri
al
••
Strengthens Quanta's presence in the Gulf of Mexico and in select international offshore marketsAugments Quanta's industrial contracting capabilities by adding expertise in upstream oil & gas support services
Staf
fing •
•
NY based New Mountain Capital acquires UK based talent acquisition and management firm, Alexander Mann Solutions, for an implied EV of ~415mWith NMC's backing, Alexander Mann hopes to extend its geographic footprint, particularly in the US
Logi
stic
s •••
Accelerates Ingram's growth in the rapidly expanding market for e-Commerce fulfillment servicesCombines Ingram's supply-chain expertise and Shipwire's award-winning cloud logistics platformThe additional growth capital will enable Shipwire to develop its software solution for enterprise brands
BPO
•
•
RR Donnelley's acquisition of Consolidated Graphics is a landscape altering transaction in the commercial printing space; RRD plans to acquire CGX for an implied EV of ~$685m (5.8x LTM EBITDA)RRD's broad range of printing capabilities will benefit from CGX's balanced geographic footprint
1. Headline Transactions
New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360
Boston200 Clarendon Street25th FloorBoston, MA 02116Tel: 617.259.2200
Atlanta15 Piedmont Center NE Suite 1010Atlanta, GA 30305 Tel: 404.995.6230
www.tmcapital.com
TM Capital’s Business Services Contacts
TM Capital Corp. is a partner-owned investment banking firm based in New York, Boston and Atlanta, which has completed over 250 transactions with a combined value in excess of $13.5 billion. Since 1989, we have advised clients navigating a full range of critical transactions, including complex mergers, acquisitions, debt and equity financings, minority and majority recapitalizations, restructurings, and advisory services including takeover defense, fairness and solvency opinions, valuations, as well as litigation support. We have built deep industry expertise in key sectors and our team regularly publishes research highlighting current and emerging trends in targeted industries and markets. TM Capital is a member firm of M&A International Inc., the world’s leading alliance of mid-market investment banks with over 600 M&A professionals in 41 countries. Members have closed over 1,300 transactions totaling more than $75 billion in value over the past five years. For more information, visit www.tmcapital.com.
James S. Grien Partner
[email protected] 404-350-7943
Jarrad S. Zalkin Partner
[email protected] 617-259-2207
Andrew O. Redmond Vice President
[email protected] 617-259-2215
Facilities Services Transactions (Oct. 2013) Industrial Services Transactions (Oct. 2013)
Staffing Services Transactions (Oct. 2013) Distribution & Logistics Transactions (Oct. 2013)
BPO Services Transactions (Oct. 2013)Target Acquiror Target Description
JMJ Associates LLC 3i Group plc Provides management consulting services primarily for theenergy, mining and construction industries
Cornerstone Records Management LLC
Iron Mountain Information Management LLC
Offers document storage, retrieval, shredding, imaging andconversion services
everis Spain SLU NTT Data Corporation
Provides business advisory services including solutionsintegration and technological applications mainten-anceservices
Booz & Company Inc
PricewaterhouseCoopers International Ltd
Provides management consulting services including corporategrowth strategies, strategic alternatives and acquisitionscreening
3. Transactions (for PDF)
Target Acquiror Target Description
Technipower BV DPA Group NV Provides recruiting services for mechanical engineering andelectrical engineering sectors
Cameo Employment Services Inc
Corporate Resource Services Inc
Offers staffing services in Southern California
Employment Plus Inc
EmployBridge Inc Provides temporary, temp-to-hire, contract and direct hirestaffing services
Lucas Associates Inc
Orchard Holdings Group LLC
Provides executive search and recruiting services foraccounting, finance, HR, IT, legal, operations and marketing
3. Transactions (for PDF)
Target Acquiror Target Description
Field Asset Services Inc
Assurant Inc Offers property preservation and maintenance servicesincluding landscape, janitorial, code compliance and utilitiesservices
Leach Engineering Consultants
Tata & Howard Inc Provides engineering and consulting services for wastewaterand water systems
PM Property Maintenance Ltd
Contract Solutions Grampian Ltd
Provides general building repair, office cleaning, electricalinstalls and plumbing services
Integrated Energy Solutions Inc
Sunbelt Controls Inc
Offers building automation and energy management systemsfor commercial, education and healthcare markets
3. Transactions (for PDF)
Target Acquiror Target Description
Cost Containment International LLC
Alternative Utility Services Inc
Provides energy management and procurement services toSMB and enterprise-sized customers
MacAljon Inc Control Southern Inc
Offers piping fabrication and installation services and tank,pressure vessel, and heat exchanger design, fabrication andrepairs
Ansaldo Energia SpA
Fondo Strategico Italiano SpA
Supplies, installs and provides services for power generationplants and components
RSH Energy LLC GFI Energy Ventures LLC
Provides survey, inspection, engineering and GIS datamanagement services for pipelines and oil and gas companies
3. Transactions (for PDF)
Target Acquiror Target Description
On Time Express Inc
Radiant Transportation Services Inc
Offers time critical/time sensitive shipping services, groundservices and ocean containers and tracking services
Cunninghame Global Logistics NZ Ltd
S B International Freight Ltd
Offers international cargo solutions including couriers, airfreight and sea freight
KFS Inc SCL Group LLC Provides logistics and transportation services includingdomestic air and ground transportation and truck brokerageservices
EBREX France SAS Stef SA Provides supply chain services, specializing in shipping andlogistics at temperatures above and below freezing points
3. Transactions (for PDF)
EBITDA Multiples Over Time
10.4x
9.4x
12.0x
9.8x
10.4x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Oct 2013
TEV
/ EBI
TDA
Facilities
Industrial
Staffing
Logistics
BPO
