Industrial Component Manufacturing€¦ · 2Aug17 Rockwell Automation Inc. Emerson Electric Co....
Transcript of Industrial Component Manufacturing€¦ · 2Aug17 Rockwell Automation Inc. Emerson Electric Co....
SECTORWATCH:
Industrial Component ManufacturingMarch 2018
Sector Dashboard
Public Basket Performance
Operational Metrics
Valuation Comparison
Recent Deals
Appendix
7 Mile Advisors appreciates the opportunity to present this confidential information to the Company.This document is meant to be delivered only in conjunction with a verbal presentation, and is notauthorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of thedocument. All data cited in this document was believed to be accurate at the time of authorship andcame from publicly available sources. Neither 7 Mile Advisors nor 7M Securities make warranties orrepresentations as to the accuracy or completeness of third-party data contained herein. Thisdocument should be treated as confidential and for the use of the intended recipient only. Pleasenotify 7 Mile Advisors if it was distributed in error.
SECTORWATCH:
Industrial Component ManufacturingMarch 2018
3 3All Rights Reserved to 7 Mile Advisors
All Rights Reserved to 7 Mile Advisors
About Us7MA provides Investment Banking & Advisory Services to the
Business Services and Technology Industries globally.
We advise on M&A and private capital transactions, and provide
market assessments and benchmarking. As a close knit team with
a long history together and a laser focus on our target markets, we
help our clients sell their companies, raise capital, grow through
acquisitions, and evaluate new markets.
SectorwatchWe publish sectorwatch, a review of M&A and operational trends in
the industries we focus.
Let us know if we can helpContact us if there are ways we can assist your M&A or financing
strategy.
OVERVIEW
Dashboard
summary metrics on the sector, with commentary on
market momentum by comparing the most recent 12-
month performance against the last 3-year averages
Valuation Comparison
a more graphical, detailed comparison of valuation
multiples for the public basket
Public Basket Performance
summary valuation and operating metrics for a basket of
comparable public companies
Recent Deals
the most recently announced sector deals
DASHBOARD
4All Rights Reserved to 7 Mile Advisors
Operating Metrics
Valuation
PUBLIC BASKET CONSTITUENTS
NasdaqGS:ROLL
NYSE:B
NYSE:TKR
NYSE:AXL
NYSE:BWA
NYSE:ITW
NasdaqGS:NNBR
NasdaqGS:TRS
NasdaqGS:AIMC
NYSE:NPO
Revenue Growth Momentum
5.7% 1 - year revenue growth compared to revenue growth
average for last 3 years
Pricing / Gross Margin Momentum
0.5% 1 - year gross profit % compared to gross profit %
average for last 3 years
Profitability Momentum
1.3% 1 - year EBITDA % compared to EBITDA % average for
last 3 years
Current revenue growth rate exceeds the average of the last 3 years by this
amount, indicating that market momentum is increasing
Current gross profit margin exceeds the average of the last 3 years gross profit
margin by this amount, indicating supplier pricing power
Current EBITDA margin exceeds the average of the last 3 years EBITDA margin
by this amount, a condition that may attract new entrants
9.1%
16.6%
29.7%
0% 6% 12% 18% 24% 30%
Median LTM Rev. Growth %
Median LTM EBITDA Margin %
Median LTM GP Margin %
1.8x
11.5x
17.5x
26.6x
0x 6x 12x 18x 24x 30x
Median TEV / LTM Revenue
Median TEV / LTM EBITDA
Median TEV / LTM EBIT
Median Price / LTM Earnings
PUBLIC BASKET PERFORMANCE
5All Rights Reserved to 7 Mile Advisors
Company TEV $m
LTM Rev
$m
Rev
Growth
YoY GP % EBITDA %
TEV / Rev
X
TEV /
EBITDA X # FTEs
Rev / FTE
$k
NN, Inc. 1,159 620 -26% 28% 15% 1.9 11.5 - NA
TriMas Corporation 1,464 818 3% 27% 17% 1.8 10.7 4,000 204
Altra Industrial Motion Corp. 1,627 877 24% 32% 14% 1.9 13.0 4,580 191
EnPro Industries, Inc. 2,089 1,310 10% 34% 14% 1.6 11.5 6,000 218
RBC Bearings Incorporated 3,112 655 6% 38% 24% 4.7 19.4 3,401 193
Barnes Group Inc. 3,647 1,436 17% 35% 21% 2.5 12.1 5,375 267
The Timken Company 4,346 3,004 13% 27% 14% 1.4 10.2 15,006 200
American Axle & Manufacturing Holdings, Inc. 5,248 6,266 59% 18% 17% 0.8 5.0 25,000 251
BorgWarner Inc. 12,423 9,799 8% 22% 17% 1.3 7.4 29,000 338
Illinois Tool Works Inc. 63,362 14,314 5% 42% 27% 4.4 16.4 50,000 286
Average 9,848 3,910 12% 30% 18% 2.2 11.7 14,236 239
Median 3,380 1,373 9% 30% 17% 1.8 11.5 5,688 218
share price as of 16Mar18
6All Rights Reserved to 7 Mile Advisors
Public Revenue Multiples Over Time
Public EBITDA Multiples Over Time PUBLIC BASKET VALUATION TRENDS
10.4x
1.6x
0x
2x
4x
6x
8x
10x
12x
14x
16x
Jun
-13
Sep
-13
Dec
-13
Mar
-14
Jun
-14
Sep
-14
Dec
-14
Mar
-15
Jun
-15
Sep
-15
Dec
-15
Mar
-16
Jun
-16
Sep
-16
Dec
-16
Mar
-17
Jun
-17
Sep
-17
Dec
-17
Mar
-18
TEV/EBITDA - Median TEV/Revenue - Median
TEV/EBITDA - Average TEV/Revenue - Average
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
Jun
-13
Sep
-13
Dec
-13
Mar
-14
Jun
-14
Sep
-14
Dec
-14
Mar
-15
Jun
-15
Sep
-15
Dec
-15
Mar
-16
Jun
-16
Sep
-16
Dec
-16
Mar
-17
Jun
-17
Sep
-17
Dec
-17
Mar
-18
TEV/Revenue - Median TEV/Revenue - Average
0x
2x
4x
6x
8x
10x
12x
14x
16x
Jun
-13
Sep
-13
Dec
-13
Mar
-14
Jun
-14
Sep
-14
Dec
-14
Mar
-15
Jun
-15
Sep
-15
Dec
-15
Mar
-16
Jun
-16
Sep
-16
Dec
-16
Mar
-17
Jun
-17
Sep
-17
Dec
-17
Mar
-18
TEV/EBITDA - Median TEV/EBITDA - Average
7All Rights Reserved to 7 Mile Advisors
OPERATIONAL METRICS
LTM GROSS PROFIT MARGIN %LTM REVENUE GROWTH % LTM EBITDA %
(30%) - 30% 60%
Median
NN, Inc.
TriMas Corporation
Illinois Tool Works Inc.
RBC Bearings Incorporated
BorgWarner Inc.
EnPro Industries, Inc.
The Timken Company
Barnes Group Inc.
Altra Industrial MotionCorp.
American Axle &Manufacturing Holdings,…
- 10% 20% 30% 40%
Median
EnPro Industries, Inc.
The Timken Company
Altra Industrial MotionCorp.
NN, Inc.
BorgWarner Inc.
TriMas Corporation
American Axle &Manufacturing Holdings,…
Barnes Group Inc.
RBC Bearings Incorporated
Illinois Tool Works Inc.
- 20% 40% 60%
Median
American Axle &Manufacturing Holdings,…
BorgWarner Inc.
The Timken Company
TriMas Corporation
NN, Inc.
Altra Industrial MotionCorp.
EnPro Industries, Inc.
Barnes Group Inc.
RBC Bearings Incorporated
Illinois Tool Works Inc.
8All Rights Reserved to 7 Mile Advisors
OPERATIONAL METRICS
Accounts receivable turnoverLTM Rev. per FTE x 000's Avg days sales outstanding
$- $100 $200 $300 $400
Median
Altra Industrial MotionCorp.
RBC Bearings Incorporated
The Timken Company
TriMas Corporation
EnPro Industries, Inc.
American Axle &Manufacturing Holdings,…
Barnes Group Inc.
Illinois Tool Works Inc.
BorgWarner Inc.
0x 2x 4x 6x 8x 10x
Median
Barnes Group Inc.
EnPro Industries,Inc.
Illinois Tool WorksInc.
BorgWarner Inc.
The TimkenCompany
RBC BearingsIncorporated
Altra IndustrialMotion Corp.
TriMas Corporation
American Axle &Manufacturing…
- 20 40 60 80 100
Median
American Axle &Manufacturing Holdings,…
TriMas Corporation
Altra Industrial MotionCorp.
RBC Bearings Incorporated
The Timken Company
BorgWarner Inc.
Illinois Tool Works Inc.
EnPro Industries, Inc.
Barnes Group Inc.
9All Rights Reserved to 7 Mile Advisors
VALUATION
TEV / LTM EBITDATEV / LTM Revenue Price / LTM Earnings
0x 1x 2x 3x 4x 5x
Median
American Axle &…
BorgWarner Inc.
The Timken…
EnPro Industries,…
TriMas Corporation
Altra Industrial…
NN, Inc.
Barnes Group Inc.
Illinois Tool Works…
RBC Bearings…
0x 5x 10x 15x 20x
Median
American Axle &…
BorgWarner Inc.
The Timken…
TriMas Corporation
NN, Inc.
EnPro Industries,…
Barnes Group Inc.
Altra Industrial…
Illinois Tool Works…
RBC Bearings…
0x 20x 40x 60x
Median
EnPro Industries, Inc.
American Axle &Manufacturing Holdings,…
The Timken Company
BorgWarner Inc.
Altra Industrial MotionCorp.
NN, Inc.
Illinois Tool Works Inc.
RBC Bearings Incorporated
TriMas Corporation
Barnes Group Inc.
10All Rights Reserved to 7 Mile Advisors
Historical Valuation Multiples versus Gross Profit Historical Valuation Multiples versus Revenue Growth Rate
VALUATION
5x 7x 10x 11x 11x 11x 12x 13x 16x 19x
18.3%
21.6%
27.0% 27.2% 27.6%
33.9% 34.6%
31.7%
42.0%
38.4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0x
5x
10x
15x
20x
25x
LTM
GP
%
EBIT
DA
(x)
Series1 Series2
5x 7x 10x 11x 11x 11x 12x 13x 16x 19x
58.7%
8.0%
12.5%
3.0%
(25.6%)
10.3% 16.7%
23.7%
5.3%
6.1%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
0x
5x
10x
15x
20x
25x
LTM
RG
R%
EBIT
DA
(x)
Series1 Series2
11All Rights Reserved to 7 Mile Advisors
RECENT TRANSACTIONS
Date Target Buyer Total Transaction Value Target Revenue TEV / Revenue TEV / EBITDA
19Jan18 All The Assets Of H.T. Sweeney & Son, Inc. NAPEC Inc. 20.40 50.00 0.4x -
4Jan18 Westinghouse Electric Company LLC Brookfield Business Partners L.P. 4,600.00 - - -
3Dec17 General Cable Corporation Prysmian S.p.A. 2,899.26 3,765.30 0.8x 22.8x
21Sep17 NAPEC Inc. Oaktree Capital Management, L.P. 258.86 334.84 0.8x 10.0x
2Oct17 CRS Reprocessing, LLC Triangle Capital Corporation 27.11 - - -
25Sep17 GE Industrial Systems ABB Ltd 2,600.00 2,700 1.0x -
2Aug17 Rockwell Automation Inc. Emerson Electric Co. 31,290.65 6,311 4.6x -
10Jul17 NN, Inc., Global Precision Bearing Components
Business and NN International B.V.
Tsubaki Nakashima Co., Ltd. 387.60 249 1.6x 11.1x
5Jul17 Multilift Wellbore Technology Ltd. Forum Energy Technologies, Inc. - - - -
22Jun17 Nor-Cal Products, Inc. Pfeiffer Vacuum Inc. 68.00 - - -
16Jun17 Reelcraft Industries, Inc. - 115.00 55 2.1x -
1Jun17 Qualiseal Technology Technetics Group LLC - - - -
30May17 DexKo Global Inc. KPS Capital Partners, LP - - - -
23May17 Complete Gear Services, Inc. Inland Truck Parts Company - - - -
9May17 Mountain Performance, Inc. Straightline Performance Inc. - - - -
7Apr17 Torsion Control Products, Inc. The Timken Company - 20 - -
28Mar17 BVR Technologies Co. Kaney Aerospace, Inc. - - - -
6Mar17 Gammaflux L.P. Barnes Group Inc. - - - -
14Feb17 Racing Winning Brands Dover Corporation; Kinderhook Industries 150.00 - - -
5Feb17 Newcor, Inc. CIE Automotive, S.A. 106.00 - - -
31Dec16 Wilhelm SCHULZ GmbH Precision Castparts Corp. - 214 - -
9Dec16 SONA BLW PRECISION FORGE, INC. Warm Forgings Pvt. Ltd. 4.68 - - -
7Dec16 Melbourne Trailer & Caravan Supplies Pty. Ltd. DexKo Global Inc. - - - -
1Dec16 CLARCOR Inc. Parker-Hannifin Corporation 4,437.42 1,385 3.1x 20.0x
3Nov16 Metaldyne Performance Group Inc. American Axle & Manufacturing Holdings, Inc. 3,418.49 2,879 1.1x 7.1x
1Nov16 EDT Corp. The Timken Company - - - -
25Oct16 Atlantic Precision Inc. Precision Castparts Corp. - - - -
21Oct16 GKN Stromag AG Altra Industrial Motion Corp. 215.14 142 1.5x -
31Aug16 Rockwell American Manufacturing Company DexKo Global Inc. - - - -
26Jul16 Powertrain Industries, Inc. Dorman Products, Inc. 6.00 - - -
12Jul16 Adval Tech Holding AG, Foboha Mold Making
Business
Barnes Group Inc. 134.74 - - -
8Jul16 Lovejoy, Inc. The Timken Company 66.00 56 1.2x -
23May16 General Cable Corporation, Automotive Ignition Wire
Business
Standard Motor Products, Inc. 71.00 96 0.7x -
26Apr16 Kaydon Corporation Stabilus S.A. 339.00 120 2.8x -
25Apr16 Rubber Fab Gasket & Molding, Inc. EnPro Industries, Inc. - 17 - -
28Feb16 Federal-Mogul Holdings Corporation (nka:Federal-
Mogul Holdings LLC)
IEH FM Holdings LLC 304.51 7,434 0.6x 6.4x
25Jan16 ZF TRW Automotive Holdings Corp., Engineered
Fasteners and Components Business
Illinois Tool Works Inc. 450.00 470 1.0x -
10Nov15 Andrews Laser Works Corporation Precision Castparts Corp. - - - -
24Nov15 Titan International, North American Brake And
Actuator Business
Dexter Axle Company, Inc. (nka:DexKo Global
Inc.)
- - - -
Appendix: Public Basket
Constituents
7 Mile Advisors appreciates the opportunity to present this confidential information to the Company.This document is meant to be delivered only in conjunction with a verbal presentation, and is notauthorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of thedocument. All data cited in this document was believed to be accurate at the time of authorship andcame from publicly available sources. Neither 7 Mile Advisors nor 7M Securities make warranties orrepresentations as to the accuracy or completeness of third-party data contained herein. Thisdocument should be treated as confidential and for the use of the intended recipient only. Pleasenotify 7 Mile Advisors if it was distributed in error.
SECTORWATCH:
Industrial Component ManufacturingMarch 2018
NN, Inc.
13All Rights Reserved to 7 Mile Advisors
NN, Inc., a diversified industrial company, manufactures high precision
bearing components, industrial plastic products, and precision metal
components to various markets in North America, Western Europe,
Eastern Europe, South America, and China. The company operates
through three segments: Precision Bearing Components Group,
Precision Engineered Products Group, and Autocam Precision
Components Group. The Precision Bearing Components Group
segment manufactures and sells precision steel balls that are used
primarily by manufacturers of anti-friction bearings and constant velocity
joints; steel rollers, including tapered rollers used in automotive gearbox
applications, automotive wheel bearings, and various industrial
applications; cylindrical rollers used in various industrial applications;
and precision metal retainers for roller bearings. The Precision
Engineered Products Group segment manufactures a range of
components, assemblies, and instruments, such as surgical knives,
bioresorbable implants, surgical staples, orthopedic system tools,
laparoscopic devices, drug delivery devices, and catheter components
for the medical end market, electrical contacts, connectors, contact
assemblies and precision stampings for the electrical control end
market, precision components, assemblies and electrical contacts for
the automotive end market, and various engineered materials for the
aerospace and defense end market. This segment also manufactures
and sells precision plastic retainers for ball and roller bearings; and
various specialized plastic products, such as automotive under-the-
hood components, electronic instrument cases, and precision electronic
connectors and lenses. NN, Inc. was founded in 1980 and is
headquartered in Johnson City, Tennessee.
PUBLIC BASKET CONSTITUENTS
Date Key Development Headline
2/21/18 NN, Inc. (NASDAQ:NNBR) acquired Bridgemedica, LLC.
0.0x
0.6x
1.2x
1.8x
2.4x
3.0xRevenue Multiples - NN, Inc.
TEV/Revenue Average
0x
5x
10x
15x
20x
EBITDA Multiples - NN, Inc.
TEV/EBITDA Average
0x
20x
40x
60x
80x
100x
P/E Multiples - NN, Inc.
P/E Average
TriMas Corporation
14All Rights Reserved to 7 Mile Advisors
TriMas Corporation manufactures and sells products for consumer
products, aerospace, industrial, petrochemical, refinery, and oil and gas
markets worldwide. The Packaging segment designs and manufactures
industrial closure products, including steel drum and plastic enclosures,
plastic drum closures, and plastic pail dispensers and plugs; and
specialty dispensing products, such as foamers, lotion pumps, fine mist
sprayers, and other packaging solutions for the cosmetic, personal
care, and household product markets, as well as specialty plastic
closures for bottles and jars, and dispensing pumps for the food and
beverage markets. The Aerospace segment offers fasteners, collars,
blind bolts, rivets, and precision-machined components for use in
commercial, maintenance and repair (MRO), and military aerospace
applications and platforms to OEMs, supply chain distributors,
MRO/aftermarket providers, and tier one suppliers. This segment offers
its products under the Monogram Aerospace Fasteners, Allfast
Fastening Systems, Mac Fasteners, and Martinic Engineering brands.
The Energy segment provides metallic and nonmetallic gaskets, bolts,
fasteners, and specialty products for the petrochemical, petroleum
refining, oil field, water/waste water treatment, and other industrial
markets under the Lamons brand. The Engineered Components
segment offers steel cylinders for use in the transportation, storage, and
dispensing of compressed gases under the Norris Cylinder name; and
various natural gas powered wellhead engines, compressors, and
replacement parts for use in oil and natural gas production, and other
industrial and commercial markets under the Arrow Engine nameThe
company is based in Bloomfield Hills, Michigan.
PUBLIC BASKET CONSTITUENTS
Date Key Development Headline
2/27/18 TriMas Corporation (NasdaqGS:TRS)
7/27/17 TriMas Seeks Acquisitions
0.0x
0.6x
1.2x
1.8x
2.4x
3.0xRevenue Multiples - TriMas Corporation
TEV/Revenue Average
0
3
6
9
12
15
18
EBITDA Multiples - TriMas Corporation
TEV/EBITDA Average
0
10
20
30
40
50
P/E Multiples - TriMas Corporation
P/E Average
Altra Industrial Motion Corp.
15All Rights Reserved to 7 Mile Advisors
Altra Industrial Motion Corp. designs, produces, and markets
mechanical power transmission components worldwide. The company
operates through three segments: Couplings, Clutches and Brakes;
Electromagnetic Clutches and Brakes; and Gearing. It offers coupling
products under the Ameridrives, Bibby, Lamiflex, TB Wood’s, Huco
Dynatork, Guardian, and Stromag brands for food processing, oil and
gas, power generation, material handling, medical, metals, mining, and
mobile off-highway markets; and heavy duty clutches and brakes under
the Wichita Clutch, Twiflex, Industrial Clutch, Svendborg Brakes, and
Stromag brands for use in metal forming, oil and gas drilling platforms,
mining, material handling, marine, and wind turbine applications. The
company also provides overrunning clutches under the Formsprag,
Marland, and Stieber brands used in conveyors, gear reducers, hoists
and cranes, mining machinery, machine tools, paper machinery, and
other specialty machinery, as well as aerospace and defense market;
and engineered belted drives under the TB Wood’s brand for aggregate,
energy, chemical, and material handling markets. The company was
founded in 2004 and is headquartered in Braintree, Massachusetts.
Date Key Development Headline
3/7/18 Altra Industrial Motion Corp., Fortive Corporation - M&A
Call
3/6/18 Altra Industrial Motion Corp. (NasdaqGS:AIMC) entered
into a definitive agreement to acquire Jacobs Vehicle
Systems, Inc., Kollmorgen Corporation, Portescap U.S. Inc.
and Thomson Industries, Inc. from Fortive Corporation
(NYSE:FTV) in a reverse morris trust transaction for $3
billion.
PUBLIC BASKET CONSTITUENTS
0.0x
0.6x
1.2x
1.8x
2.4x
3.0x
Revenue Multiples - Altra Industrial Motion Corp.
TEV/Revenue Average
0
5
10
15
20EBITDA Multiples - Altra Industrial Motion Corp.
TEV/EBITDA Average
0
10
20
30
40
50P/E Multiples - Altra Industrial Motion Corp.
P/E Average
EnPro Industries, Inc.
16All Rights Reserved to 7 Mile Advisors
EnPro Industries, Inc. designs, develops, manufactures, and markets
engineered industrial products worldwide. The company’s Sealing
Products segment offers metallic, non-metallic, and composite material
gaskets; dynamic seals; compression packings; resilient metal seals;
elastomeric seals; hydraulic components; expansion joints; flange
sealing and isolation products; pipeline casing spacers/isolators; casing
end seals; modular sealing systems for sealing pipeline penetrations;
hole forming products; manhole infiltration sealing systems; bellows and
bellows assemblies; pedestals; custom-engineered mechanical seals;
polytetrafluoroethylene products; and heavy-duty commercial vehicle
parts. This segment’s products are used in the chemical and
petrochemical processing, petroleum extraction and refining, pulp and
paper processing, power generation, food and pharmaceutical
processing, primary metal manufacturing, mining, water and waste
treatment, heavy-duty trucking, aerospace, medical, filtration, and
semiconductor fabrication industries. Its Engineered Products segment
offers self-lubricating, non-rolling, metal-polymer, solid polymer, and
filament wound bearing products; aluminum blocks for hydraulic
applications; and precision engineered components and lubrication
systems for reciprocating compressors. Its products has applications in
the automotive, pharmaceutical, pulp and paper, natural gas, health,
power generation, machine tools, air treatment, refining, petrochemical,
and general industrial markets. EnPro Industries, Inc. was founded in
2002 and is headquartered in Charlotte, North Carolina.
Date Key Development Headline
2/13/18 EnPro Industries Mulls Acquisitions
7/31/17 EnPro Industries Seeks Acquisitions
PUBLIC BASKET CONSTITUENTS
0.0x
0.6x
1.2x
1.8x
2.4x
3.0x
Revenue Multiples - EnPro Industries, Inc.
TEV/Revenue Average
0
4
8
12
16
20
EBITDA Multiples - EnPro Industries, Inc.
TEV/EBITDA Average
0
30
60
90
120
150
P/E Multiples - EnPro Industries, Inc.
P/E Average
RBC Bearings Incorporated
17All Rights Reserved to 7 Mile Advisors
RBC Bearings Incorporated manufactures and markets engineered
precision bearings and components in North America, Europe, Asia,
and Latin America. It operates in four segments: Plain Bearings, Roller
Bearings, Ball Bearings, and Engineered Products. The Plain Bearings
segment produces plain bearings with self-lubricating or metal-to-metal
designs, including rod end bearings, spherical plain bearings, and
journal bearings that are primarily used to rectify misalignments in
various mechanical components, such as aircraft controls, helicopter
rotors, or in heavy mining and construction equipment. The Roller
Bearings segment provides heavy duty needle roller bearings with inner
rings, tapered roller bearings, track rollers, and aircraft roller bearings,
which are anti-friction bearings that use rollers instead of balls. The Ball
Bearings segment specializes in high precision aerospace, airframe
control, thin section, and commercial ball bearings that utilize high
precision ball elements to reduce friction in high speed applications.
The Engineered Products segment offers engineered hydraulics and
valves for aircraft and submarine applications, and aerospace and
defense aftermarket services; fasteners; precision mechanical
components, which are used in various general industrial applications;
and machine tool collets that are used for holding circular or rod. It
serves the construction and mining, oil and natural resource extraction,
heavy truck, marine, rail and train, packaging, semiconductor
machinery, and other general industrial markets. The company offers its
products through direct sales force, and a network of industrial and
aerospace distributors. RBC Bearings Incorporated was founded in
1919 and is headquartered in Oxford, Connecticut.
Date Key Development Headline
2/6/18 RBC Bearings Mulls Acquisitions
5/31/17 RBC Bearings Mulls Acquisition
PUBLIC BASKET CONSTITUENTS
0x
1x
2x
3x
4x
5x
6x
Revenue Multiples - RBC Bearings Incorporated
TEV/Revenue Average
0
5
10
15
20
25
EBITDA Multiples - RBC Bearings Incorporated
TEV/EBITDA Average
0
10
20
30
40
50
P/E Multiples - RBC Bearings Incorporated
P/E Average
Barnes Group Inc.
18All Rights Reserved to 7 Mile Advisors
Barnes Group Inc. operates as an industrial and aerospace
manufacturer, and service provider in the United States and
internationally. Its Industrial segment offers precision components,
products, and systems for applications serving various customers in
end-markets, such as transportation, industrial equipment, consumer
products, packaging, electronics, medical devices, and energy. This
segment also manufactures and supplies precision mechanical
products, including mechanical springs, high-precision punched and
fine-blanked components, and retention rings; force and motion
solutions for sheet metal forming, heavy duty suspension, and other
markets; and hot runner systems, mold cavity sensors and process
control systems, and precision high cavitation mold for injection molding
applications. The company’s Aerospace segment produces fabricated
and precision-machined components and assemblies for original
equipment manufacturer turbine engine, airframe, and industrial gas
turbine builders, as well as for the military. It also offers maintenance,
repair, and overhaul services for jet engine components to turbine
engine manufacturers, commercial airlines, and the military. In addition,
this segment manufactures aerospace aftermarket spare parts. The
company sells its products primarily through its direct sales force and
distribution channels. Barnes Group Inc. was founded in 1857 and is
headquartered in Bristol, Connecticut.
Date Key Development Headline
2/16/18 Barnes Group Mulls Acquisitions
7/28/17 Barnes Group Seeks Acquisitions
PUBLIC BASKET CONSTITUENTS
0x
1x
2x
3x
4x
Revenue Multiples - Barnes Group Inc.
TEV/Revenue Average
0
5
10
15
20
EBITDA Multiples - Barnes Group Inc.
TEV/EBITDA Average
0
8
16
24
32
40
P/E Multiples - Barnes Group Inc.
P/E Average
The Timken Company
19All Rights Reserved to 7 Mile Advisors
The Timken Company engineers, manufactures, and markets bearings,
transmissions, gearboxes, belts, chains, lubrication systems, couplings,
industrial clutches and brakes, and related products worldwide. It
operates through two segments, Mobile Industries and Process
Industries. The Mobile Industries segment offers a portfolio of bearings,
seals, lubrication devices, and systems, as well as power transmission
components, engineered chains, augers, belts, couplings, clutches and
brakes, and related products and maintenance services to original
equipment manufacturers (OEMs) and end users of off-highway
equipment for the agricultural, construction, mining, outdoor power
equipment, and power sports markets; and on-highway vehicles,
including passenger cars, light trucks, and medium- and heavy-duty
trucks, as well as rail cars and locomotives. It also provides power
transmission systems and flight-critical components for civil and military
aircraft, which comprise bearings, helicopter transmission systems,
rotor-head assemblies, turbine engine components, gears, and
housings. The Timken Company was founded in 1899 and is
headquartered in North Canton, Ohio.
Date Key Development Headline
2/7/18 Timken Mulls Acquisitions
7/2/17 The Timken Company (NYSE:TKR) completed the
acquisition of Groeneveld Groep B.V. from Henk
Groeneveld.
6/26/17 The Timken Company (NYSE:TKR) entered into an
agreement to acquire Groeneveld Groep B.V. from Henk
Groeneveld for $280 million.
5/4/17 The Timken Company (NYSE:TKR) acquired EBO Group
from an employee of EBO Group.
4/6/17 The Timken Company (NYSE:TKR) acquired Torsion
Control Products, Inc.
PUBLIC BASKET CONSTITUENTS
0.0x
0.5x
1.0x
1.5x
2.0xRevenue Multiples - The Timken Company
TEV/Revenue Average
0
3
6
9
12
15EBITDA Multiples - The Timken Company
TEV/EBITDA Average
0
8
16
24
32
40
P/E Multiples - The Timken Company
P/E Average
American Axle & Manufacturing Holdings, Inc.
20All Rights Reserved to 7 Mile Advisors
American Axle & Manufacturing Holdings, Inc., together with its
subsidiaries, designs, engineers, validates, and manufactures driveline,
metal forming, powertrain, and casting products. The company’s
Driveline segment offers axles, driveshafts, power transfer units, rear
drive modules, transfer cases, and electric and hybrid driveline products
and systems for light trucks, sport utility vehicles, crossover vehicles,
passenger cars, and commercial vehicles. Its Metal Forming segment
provides axle and transmission shafts, ring and pinion gears, differential
gears, transmission gears and shafts, and suspension components for
original equipment manufacturers and automotive suppliers. The
company’s Powertrain segment offers transmission module and
differential assemblies, transmission valve bodies, connecting rod
forging and assemblies, torsional vibration dampers, and variable valve
timing products for original equipment manufacturers and automotive
suppliers. Its Casting segment produces thin wall castings and high
strength ductile iron castings, as well as differential cases, steering
knuckles, control arms, brackets, and turbo charger housings for the
light vehicle, commercial, and industrial markets. The company has
operations in the United States, Canada, Mexico, South America,
China, Europe, other Asian countries, and internationally. American
Axle & Manufacturing Holdings, Inc. was founded in 1994 and is
headquartered in Detroit, Michigan.
Date Key Development Headline
4/5/17 American Axle & Manufacturing Holdings Inc. (NYSE:AXL)
completed the acquisition of Metaldyne Performance Group
Inc. (NYSE:MPG) from American Securities, Levin Capital
Strategies, L.P. and others.
3/28/17 American Axle & Manufacturing Holdings, Inc. (NYSE:AXL)
acquired U.S. Manufacturing de Mexico, S. de R.L. de C.V.
from U.S. Manufacturing Corporation.
PUBLIC BASKET CONSTITUENTS
0.0x
0.4x
0.8x
1.2x
1.6x
2.0x
Revenue Multiples - American Axle & Manufacturing Holdings, Inc.
TEV/Revenue Average
0
3
6
9
12
EBITDA Multiples - American Axle & Manufacturing Holdings, Inc.
TEV/EBITDA Average
0
3
6
9
12
15
18
P/E Multiples - American Axle & Manufacturing Holdings, Inc.
P/E Average
BorgWarner Inc.
21All Rights Reserved to 7 Mile Advisors
BorgWarner Inc. provides solutions for combustion, hybrid, and electric
vehicles worldwide. It operates through two segments, Engine and
Drivetrain. It also provides emissions systems, including electric air
pumps and exhaust gas recirculation (EGR) modules, EGR coolers,
EGR valves, glow plugs, and instant starting systems; turbocharger
actuators; and thermal systems products comprising viscous fan drives,
polymer fans, and coolant pumps. The Drivetrain segment develops
and manufactures friction and mechanical products, including dual and
friction clutch modules, friction and separator plates, transmission
bands, torque converter and one-way clutches, and torsional vibration
dampers. It also offers control products comprising electro-hydraulic
solenoids, transmission solenoid modules, and dual clutch control
modules; torque management products, such as rear-wheel drive/all-
wheel drive (AWD) transfer case systems, front wheel drive-AWD
coupling systems, and cross-axle coupling systems; starters,
alternators, and hybrid electric motors; and motor controllers, battery
chargers, and uninterrupted power source systems. BorgWarner Inc.
was founded in 1987 and is headquartered in Auburn Hills, Michigan.
Date Key Development Headline
9/26/17 BorgWarner Inc. (NYSE:BWA) completed the acquisition of
Sevcon, Inc. (NasdaqCM:SEV) from Meson Capital
Partners LP and Meson Constructive Capital LP managed
by Meson Capital Partners LLC, Ryan J. Morris and Bassi
Holding S.r.l.
7/16/17 BorgWarner Inc. (NYSE:BWA) entered into an agreement
to acquire Sevcon, Inc. (NasdaqCM:SEV) from Meson
Capital Partners LP and Meson Constructive Capital LP
managed by Meson Capital Partners LLC, Ryan J. Morris
and Bassi Holding S.r.l. for approximately $130 million.
PUBLIC BASKET CONSTITUENTS
0.0x
0.6x
1.2x
1.8x
2.4x
3.0xRevenue Multiples - BorgWarner Inc.
TEV/Revenue Average
0
3
6
9
12
15EBITDA Multiples - BorgWarner Inc.
TEV/EBITDA Average
0
15
30
45
60
75
90P/E Multiples - BorgWarner Inc.
P/E Average
Illinois Tool Works Inc.
22All Rights Reserved to 7 Mile Advisors
Illinois Tool Works Inc. manufactures and sells industrial products and
equipment worldwide. It operates through seven segments: Automotive
OEM; Food Equipment; Test & Measurement and Electronics; Welding;
Polymers & Fluids; Construction Products; and Specialty Products. The
Automotive OEM segment offers plastic and metal components,
fasteners, and assemblies for automobiles, light trucks, and other
industrial uses. The Food Equipment segment produces warewashing,
cooking, refrigeration, and food processing equipment; kitchen exhaust,
ventilation, and pollution control systems; and food equipment,
maintenance, and repair services. The Test & Measurement and
Electronics segment produces equipment, consumables, and related
software for testing and measuring of materials and structures, as well
as equipment and consumables used in the production of electronic
subassemblies and microelectronics. The Welding segment produces
arc welding equipment; metal arc welding consumables and related
accessories; and metal jacketing and other insulation products for
various industrial and commercial applications. The Polymers & Fluids
segment produces adhesives, sealants, lubrication and cutting fluids,
and fluids and polymers for auto aftermarket maintenance and
appearance. The Construction Products segment produces engineered
fastening systems and solutions for the residential construction,
renovation/remodel, and commercial construction markets. The
Specialty Products segment offers beverage packaging equipment and
consumables, product coding and marking equipment and
consumables, and appliance components and fasteners. Illinois Tool
Works Inc. was founded in 1912 and is headquartered in Glenview,
Illinois.
Date Key Development Headline
12/1/17 Illinois Tool Works Seeks Acquisition
6/8/17 Illinois Tool Works Seeks Acquisitions
PUBLIC BASKET CONSTITUENTS
0x
1x
2x
3x
4x
5x
6x
Revenue Multiples - Illinois Tool Works Inc.
TEV/Revenue Average
0
4
8
12
16
20
EBITDA Multiples - Illinois Tool Works Inc.
TEV/EBITDA Average
0
6
12
18
24
30P/E Multiples - Illinois Tool Works Inc.
P/E Average
7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally.
We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a
close-knit team with a long history together and a laser focus on our target markets, we help our clients sell their
companies, raise capital, grow through acquisitions, and evaluate new markets. Securities offered through 7M
Securities LLC.
CONTACT INFORMATION
23All Rights Reserved to 7 Mile Advisors
Charlotte | Los Angeles | Tampa | Houston | Chicago
Leroy Davis, Partner 704.899.5962 [email protected]
Tripp Davis, Partner 704.899.5762 [email protected]
Andy Johnston, Partner 704.899.5961 [email protected]
Tom Dinnegan, Managing Director 310. 426.2410 [email protected]
Ben Lunka, Managing Director 704.496.2995 [email protected]
Jeff Stoecklein, Managing Director 312-373-3737 [email protected]
Kristina Sergueeva, Director 704.899.5149 [email protected]
Neil Churman, Director 704.899.5960 x 121 [email protected]
John Cooper, Director 704.973.3996 [email protected]
Tim Frye, Director 704.973.3994 [email protected]
Casey Augustine, Business Development - Manager 704.973.3999 [email protected]
Nicholas Prendergast, Financial Analyst 704.899.5960 [email protected]
Ariail Siggins, Marketing Director 704.899.5960 x 123 [email protected]
Rory Julyan, Associate 704.899.5960 [email protected]
Chevonese Dacres, Analyst 360.499.1502 [email protected]