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HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising
Florida M&A Report
2016
HYDE PARK CAPITAL
Member FINRA/SIPC
Investment Banking | Mergers & Acquisitions | Capital Raising
Hyde Park Capital Advisors, LLC 701 N. Franklin Street
Tampa, FL 33602 Tel: 813-383-0202
www.hydeparkcapital.com
John Hill Senior Managing Director [email protected] (813) 383-0205 John McDonald Senior Managing Director [email protected] (813) 383-0206 Keith Hodgdon Managing Director [email protected] (813) 383-0208 Greg Bosl Vice President [email protected] (813) 597-2649 Jami Gold Vice President [email protected] (813) 383-0203 Jeffrey Hendricks Vice President [email protected] (678) 523-3073 Kenneth Burnside Business Development Officer [email protected] (864) 905-9633
HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising
Top Announced M&A Transactions – 2016
Commentary Completed M&A Transactions by Region: VOLUME
2
FLORIDA – M&A Market Overview
During 2016, there were 514 completed M&A transactions (including those with undisclosed transaction values) in Florida. For deals with a disclosed location, 18 were completed in the Tallahassee – Pensacola area, 63 in the Jacksonville – Gainesville area, 132 in the Tampa – St. Petersburg area, 77 in the Orlando area, 14 in the Fort Myers area and 210 in the Miami – South Florida area.
Total M&A transaction volume in Florida decreased 12.7% to 514 deals in 2016, down from 589 in 2015. The Miami – South Florida area saw the largest decrease in transaction volume, down from 254 in 2015 to 210 in 2016.
Several significant deals involving Florida-based target companies were announced in 2016 including Protection 1, Inc.’s acquisition of The ADT Corp.; Rockwell Collins, Inc.’s proposed purchase of B/E Aerospace, Inc.; and Johnson & Johnson Consumer Co., Inc.’s acquisition of Vogue International, LLC.
Tallahassee - Pensacola Area
Jacksonville - Gainesville Area
Tampa - St. Petersburg Area
Orlando Area
Fort Myers Area
Miami - South Florida Area
Region 2012 2013 2014 2015 2016
Tallahassee - Pensacola Area 18 15 17 19 18
Jacksonville - Gainesville Area 70 68 76 72 63
Tampa - St. Petersburg Area 126 123 131 135 132
Orlando Area 75 61 96 89 77
Fort Myers Area 23 18 15 20 14
Miami - South Florida Area 236 240 276 254 210
Florida Total 548 525 611 589 514
% Change (Y-o-Y) 12.1% (4.2%) 16.4% (3.6%) (12.7%)
Source : S&P Capital IQ *Excludes Oil & Gas, Utilities and Real Estate transactions, as defined by S&P Capital IQ. .
Jacksonville
Miami
Tampa
St. Petersburg
Orlando
Tallahassee
Fort Lauderdale
Port St. Lucie
Pensacola
Gainesville 18
63
132
14
77
210
Fort Myers
Announced Date Target Buyer Industry
Enterprise Value
($mm)
02/16/16 The ADT Corp. Protection 1, Inc. Security and Alarm Services $12,470
10/23/16 B/E Aerospace, Inc. Rockwell Collins, Inc. Aerospace and Defense $8,354
06/02/16 Vogue International, LLC Johnson & Johnson Consumer Co., Inc. Personal Products $3,300
08/07/16 EverBank Financial Corp.Teachers Insurance & AnnuityAssociation of America
Thrifts and Mortgage Finance $2,514
09/28/15 Arizona Chemical Co., LLC Kraton Polymers, LLC Commodity Chemicals $1,370
11/02/16 Anchor Glass Container Corp. CVC Capital Partners Metal and Glass Containers $1,000
09/22/16 WCI Communities, Inc. Lennar Corp. Homebuilding $958
06/16/16 Elizabeth Arden, Inc. Revlon Consumer Products Corp. Personal Products $909
02/18/16 Aston Care Systems, Inc. Welltower, Inc. Healthcare Facilities $570
05/09/16 Emerging Markets Communications, LLC Global Eagle Entertainment, Inc. Alternative Carriers $521
02/11/16 HealthPlan Holdings, Inc. Wipro Ltd. Insurance Brokers $460
HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising
M&A transaction volume in Florida (transactions with disclosed deal value above $10 million) fell 27% during 2016 to 90 closed transactions, down from 124 in 2015. The total value of completed transactions rose 266% to $47.6 billion due to 5 deals over $1 billion closing in 2016.
Deals valued between $100-$499 million provided a boost to the Florida middle market (deals valued between $10-$999 million) with 21 closed deals totaling $5.1 billion in transaction value.
While the 5 deals above $1 billion drove the overall Florida M&A market, the total Florida middle market deal volume and value fell 31% and 20%, respectively.
Commentary M&A Transactions by Deal Size
M&A Activity – Annual Trends: VOLUME M&A Activity – Annual Trends: VALUE
FLORIDA – Annual M&A Market Activity
3
To
tal T
ran
sact
ion
Vo
lum
e
To
tal T
ran
sact
ion
Val
ue
($ i
n b
illi
ons)
Less than $100M $100 - $499M $500 - $999M Greater than $1 Billion Less than $100M $100 - $499M $500 - $999M Greater than $1 Billion
($ in billions)
$40.5
$12.2
$6.9
$8.8
$17.9
$20.2 $19.8
$35.4
$13.0
$47.6
$0
$10
$20
$30
$40
$50
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
139
103
51
80
91
99 98
134
124
90
0
30
60
90
120
150
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
139
103
51
80
91
99 98
134
124
90
0
30
60
90
120
150
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Deal Size Volume Value Volume Value Volume Value
Less than $100M 96 $3.5 59 $2.0 (39%) (43%)
$100 - $499M 21 $4.0 21 $5.1 0% 29%
$500 - $999M 7 $5.5 5 $3.3 (29%) (40%)
Total Middle Market 124 $13.0 85 $10.4 (31%) (20%)
Greater than $1 Billion 0 $0.0 5 $37.2 NA NA
Total Market 124 $13.0 90 $47.6 (27%) 266%
% of Total Market
Less than $100M 77% 27% 65% 4%
$100 - $499M 17% 31% 23% 11%
$500 - $999M 6% 42% 6% 7%
Total Middle Market 100% 100% 94% 22%
Greater than $1 Billion 0% 0% 6% 78%
Total Market 100% 100% 100% 100%
2015 2016 % Change
Source : S&P Capital IQ (includes all closed deals with disclosed deal value greater than $10 million). *Excludes Oil & Gas, Utilities and Real Estate transactions, as defined by S&P Capital IQ. .
HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising
4
FLORIDA – M&A Activity
Select Announced M&A Transactions – 2016
Source: S&P Capital IQ.
Announced
Date Target Buyer Industry
Enterprise
Value ($mm)
EV /
Revenue
EV /
EBITDA
12/23/16 Miami Beach Medical Group, LLC Gauge Capital Healthcare NA NA NA
12/19/16 Lakeview Health Systems, LLC The Riverside Co. Healthcare NA NA NA
12/19/16 Brown Jordan International, Inc. Littlejohn & Co., LLC Consumer & Retail NA NA NA
12/13/16 Beeline.com, Inc. IQNavigator, Inc. Technology $130.0 NA NA
11/30/16 Comfort Medical, LLC Coloplast A/S Healthcare $160.0 NA NA
11/30/16 Gateway Financial Holdings of Florida, Inc. CenterState Banks, Inc. Financial Services $137.1 NA NA
11/30/16 MegaHoot, Inc. Falcon Global Acquisitions, LLC Technology NA NA NA
11/07/16 Giant Holdings, Inc. Home Bancshares, Inc. Financial Services $96.0 NA NA
11/07/16 NodeServ, LLC Cloud Equity Group Technology NA NA NA
11/02/16 Anchor Glass Container Corp. CVC Capital Partners Industrials $1,000.0 NA NA
10/23/16 B/E Aerospace, Inc. Rockwell Collins, Inc. Industrials $8,354.3 2.9x 13.6x
10/21/16 Intrepid Powerboats, Inc. JDG Capital Industrials NA NA NA
10/21/16 Coverall North America, Inc. ICV Partners Industrials NA NA NA
10/18/16 Platinum Bank Holding Co. CenterState Banks, Inc. Financial Services $83.9 NA NA
09/30/16 The Gates Hotel South Beach Rockpoint Group, LLC Consumer & Retail $105.0 NA NA
09/22/16 WCI Communities, Inc. Lennar Corp. Industrials $957.7 1.3x 13.5x
09/16/16 Aircraft Service International Group, Inc. Menzies Aviation, Inc. Industrials $202.0 0.5x 6.3x
09/08/16 Desert Sunlight Investment Holdings, LLC NextEra Energy Partners, LP Industrials $218.0 NA NA
HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising
5
FLORIDA – M&A Activity
Select Announced M&A Transactions – 2016
Source: S&P Capital IQ.
Announced
Date Target Buyer Industry
Enterprise
Value ($mm)
EV /
Revenue
EV /
EBITDA
08/18/16 United States Warranty Corp. Protective Life Insurance Co. Financial Services $127.0 3.1x NA
08/17/16 American Coastal Insurance Co. United Insurance Holdings Corp. Financial Services $310.4 NA NA
08/07/16 EverBank Financial Corp.Teachers Insurance & AnnuityAssociation of America
Financial Services $2,514.4 NA NA
07/19/16 InnFocus, Inc. Santen Pharmaceutical Co., Ltd. Healthcare $225.0 NA NA
06/20/16 Indiantown Cogeneration, L.P. Florida Power & Light Co. Industrials $451.0 NA NA
06/20/16 Tower Cloud, Inc. PEG Bandwidth, LLC Technology $362.2 8.8x 27.9x
06/16/16 Elizabeth Arden, Inc. Revlon Consumer Products Corp. Consumer & Retail $909.3 0.9x NA
06/02/16 Vogue International, LLC Johnson & Johnson Consumer Companies, Inc. Consumer & Retail $3,300.0 NA NA
05/24/16Association of Certified Anti-MoneyLaundering Specialists, LLC
Becker Professional Development Corp. Industrials $330.1 NA NA
05/09/16 Emerging Markets Communications, LLC Global Eagle Entertainment, Inc. Technology $520.7 NA NA
05/03/16 ReNew Life Formulas, Inc. The Clorox Co. Consumer & Retail $290.0 2.5x NA
03/31/16 Mindful Management, LLC Strategic Storage Trust, Inc. Industrials $371.0 NA NA
02/29/16 API Technologies Corp. J.F. Lehman & Company, Inc. Industrials $311.2 1.3x 15.2x
02/18/16 Aston Care Systems, Inc. Welltower, Inc. Healthcare $570.0 NA NA
02/16/16 The ADT Corp. Protection 1, Inc. Technology $12,470.4 3.5x 6.8x
02/11/16 HealthPlan Holdings, Inc. Wipro Ltd. Financial Services $460.0 2.1x NA
02/04/16Hyatt Regency ClearwaterBeach Resort and Spa
Westmont Hospitality Group, Inc. Consumer & Retail $120.5 NA NA
01/19/16 Bankers Healthcare Group, LLC Pinnacle Bank (Nashville, TN) Financial Services $114.7 4.2x NA
HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising
$2.2
$1.6
$4.4
$1.4
$37.9
$3.1
$1.5
$2.3
$2.5
$3.6
$0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0
Financial Services
Technology / Telecom
Industrials
Healthcare
Consumer
22
10
9
13
36
19
15
18
17
55
0 10 20 30 40 50 60
Financial Services
Technology / Telecom
Industrials
Healthcare
Consumer
FLORIDA – Annual M&A Activity by Industry
M&A Activity by Industry Sector: VALUE % Change
6
M&A Activity by Industry Sector: VOLUME % Change
33%
35%
16%
42%
90%
8%
957%
28%
50%
24%
($ in billions)
2015 2016
2015 2016
Source : S&P Capital IQ (includes all closed deals with disclosed deal value greater than $10 million). *Excludes Oil & Gas, Utilities and Real Estate transactions, as defined by S&P Capital IQ. .
HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising
0
5
10
15
20
25
30
Consumer Healthcare Industrials Technology / Telecom Financial Services
Commentary Select Private Equity Transactions – 2016
Financial Sponsors vs. Strategic Buyers
FLORIDA – Recent Private Equity Activity
7
During 2016, financial sponsors were active across many industry sectors in Florida, announcing a number of significant buyouts as shown in the table on the right.
Several notable sponsor led transactions include Littlejohn & Co.’s
acquisition of Brown Jordan International, LLC, a home furnishings manufacturer and distributer, Gauge Capital’s purchase of Miami Beach Medical Group, LLC, who operates a medical and wellness center in South Florida; and Harvest Partners’ acquisition of Advanced Dermatology & Cosmetic Surgery, which provides dermatologic care services across the US.
During 2016, Financial sponsors were most active in the Consumer
and Industrials sectors, announcing 25 and 17 deals, respectively.
Source : S&P Capital IQ (includes all closed deals with disclosed deal value greater than $10 million). *Excludes Oil & Gas, Utilities and Real Estate transactions, as defined by S&P Capital IQ. .
Announced Date Target Buyer Industry
Transaction Value
($mm)
12/23/16 Miami Beach Medical Group, LLC Gauge Capital Healthcare NA
12/19/16 Lakeview Health Systems, LLC The Riverside Co. Healthcare NA
12/19/16 Brown Jordan International, Inc. Littlejohn & Co. Consumer & Retail NA
11/30/16 MegaHoot, Inc. Falcon Global Acquisitions Technology NA
11/28/16 BioMatrix, LLC Triton Pacific Capital Consumer & Retail NA
11/07/16 NodeServ, LLC Cloud Equity Group Technology NA
11/04/16 Easy Solutions, Inc. BC Partners / Medina Capital Technology NA
10/21/16 Coverall North America, Inc. ICV Partners Industrials NA
10/21/16 Intrepid Powerboats, Inc. JDG Capital Industrials NA
10/19/16 Blue Pelican Marina, Inc. AFLG Investments Private Equity Consumer & Retail NA
10/06/16 Convey Health Solutions, Inc. New Mountain Capital Healthcare NA
10/01/16 Sunco Carriers, Inc. KJM Capital Industrials NA
09/30/16 The Gates Hotel South Beach Rockpoint Group Consumer & Retail $105
09/30/16 Destin Jet, LLC The Sterling Group Industrials NA
08/05/16 Clickbooth.com, LLC Centre Lane Partners Technology NA
05/18/16Advanced Dermatology & Cosmetic
Surgery, Inc.Harvest Partners Healthcare NA
04/11/16 Life Care Community Saint Johns, Inc. HCP Healthcare $24
02/29/16 API Technologies Corp. J.F. Lehman & Co. Industrials $311
02/18/16 Aston Care Systems, Inc. Welltower, Inc. Healthcare $570
02/12/16 Nationwide Industries, Inc. Argosy Capital Industrials $23
HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising
Member FINRA/SIPC
Recent Transactions
HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising Integrity | Expertise | Results
Hyde Park Capital Advisors, LLC 701 N. Franklin Street
Tampa, FL 33602 Tel: 813-383-0202
www.hydeparkcapital.com
John Hill Senior Managing Director [email protected] (813) 383-0205 John McDonald Senior Managing Director [email protected] (813) 383-0206 Keith Hodgdon Managing Director [email protected] (813) 383-0208 Greg Bosl Vice President [email protected] (813) 597-2649 Jami Gold Vice President [email protected] (813) 383-0203 Jeffrey Hendricks Vice President [email protected] (678) 523-3073 Kenneth Burnside Business Development Officer [email protected] (864) 905-9633
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