PowerPoint · PDF file01/11/16 Aon Hewitt, LLC PeopleScout, Inc. Industrial Services $72.0 NA NA 01/08/16 TransMontaigne GP ArcLight Capital Partners Industrial Services $350.0 NA

Industrials M&A Report

Q1 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

Offer Date Issuer Industry SectorTransaction

Type Transaction

Value

03/28/16 HD Supply, Inc. Materials Fixed-Income $1,615

03/21/16 FedEx Corp. Transportation Fixed-Income $1,993

03/21/16 Trinseo SA Materials Secondary $384

03/14/16 Continental Building Products Construction Secondary $72

02/25/16 Union Pacific Corp. Transportation Fixed-Income $1,087

02/15/16 Honeywell International, Inc. Industrial Conglomerates Fixed-Income $4,455

02/12/16 United Technologies Corp. Aerospace Fixed-Income $1,900

02/04/16 Praxair, Inc. Materials Fixed-Income $615

80%

90%

100%

110%

120%

Mar-15 Jun-15 Sep-15 Dec-15 Mar-16

S&P 500 S&P Global Industrials Sector Index Nasdaq

Industry Sector 3 Months 12 months Revenue EBITDA

Construction 5.6% 7.2% 1.4x 9.7x

Electrical Equipment 2.5% 2.1% 2.1x 12.5x

Machinery 11.6% (5.5%) 1.6x 10.1x

Industrial Services 11.4% 5.0% 2.3x 11.4x

Transportation 6.5% (7.7%) 1.5x 7.4x

Industrial Conglomerates 4.9% 9.8% 2.9x 12.6x

Materials 6.5% (10.4%) 2.5x 10.8x

Median

Change in Stock Price Enterprise Value / LTM

Capital Markets Overview

2

Public Market Performance (LTM)

Select Public Offerings – Industrials (Q1 2016)

Public Company Market Performance by Sector

Source: S&P Capital IQ

The S&P Global Industrials Sector Index rose 1.2% over the last 12 month period ended March 31, 2016, while the Nasdaq declined 0.2% and the S&P 500 remained unchanged.

The Industrial industry remained active in the Public Debt Markets

as companies continue to issue new debt offerings in support of ongoing stock repurchase programs.

The Industrial Conglomerates and Electrical Equipment sectors were the industry’s leaders with respect to valuation during Q1 ‘16, trading at EBITDA multiples of 12.6x and 12.5x, respectively.

Commentary

0.2%

1.2%

0.0%

($ in millions)


$48.6

$52.5

$75.2

$54.4

$21.6

$43.3

$56.4 $55.8

$50.5

$60.6

$45.8

$0

$10

$20

$30

$40

$50

$60

$70

$80

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Deal Size Volume Value Volume Value Volume Value

Less than $100M 287 $10.1 227 $8.0 (21%) (21%)

$100 - $499M 131 $28.6 93 $21.6 (29%) (24%)

$500 - $999M 31 $21.9 23 $16.2 (26%) (26%)

Total Middle Market 449 $60.6 343 $45.8 (24%) (24%)

% of Middle Market

Less than $100M 64% 17% 66% 17%

$100 - $499M 29% 47% 27% 47%

$500 - $999M 7% 36% 7% 36%

Total Middle Market 100% 100% 100% 100%

2014 2015 % Change

Middle Market M&A Transactions by Deal Size

U.S. Middle Market M&A Activity – Annual Trends: VOLUME U.S. Middle Market M&A Activity – Annual Trends: VALUE

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Annual Middle Market M&A Activity – Industrials

3

As illustrated in the charts below, U.S. Middle Market M&A activity, or deal volume, in the Industrials industry decreased 24% to 343 closed transactions during 2015, down from 449 during 2014.

The total value of completed Middle Market M&A transactions in the Industrials industry fell 24% during 2015 to $45.8 billion, down from $60.6 billion during 2014.

Transactions valued between $100 million and $499 million experienced the largest decline in transaction volume during 2015, falling 29% to 93 transactions, down from 131 completed during 2014.

Commentary

Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion)

($ in billions)

Less than $100M $100 - $499M $500 - $999M Less than $100M $100 - $499M $500 - $999M

402

473

550

501

250

412

525

465

399

449

343

0

50

100

150

200

250

300

350

400

450

500

550

600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


Deal Size Volume Value Volume Value Volume Value

Less than $100M 64 $2.3 28 $1.1 (56%) (50%)

$100 - $499M 21 $4.9 15 $4.0 (29%) (19%)

$500 - $999M 5 $3.7 2 $1.4 (60%) (63%)

Total Middle Market 90 $10.9 45 $6.5 (50%) (41%)

% of Middle Market

Less than $100M 71% 21% 62% 18%

$100 - $499M 23% 45% 33% 61%

$500 - $999M 6% 34% 5% 21%

Total Middle Market 100% 100% 100% 100%

Q1 2015 Q1 2016 % Change

$10.0

$8.8

$15.0

$16.8

$13.8

$18.0

$12.4

$16.5

$10.9

$12.1 $11.7 $11.1

$6.5

$0.0

$3.0

$6.0

$9.0

$12.0

$15.0

$18.0

$21.0

Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16

69

101

109

120

99

133

98

119

9087 87

79

45

0

25

50

75

100

125

150

Q1 '13 Q2'13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16

Quarterly Middle Market M&A Activity – Industrials

U.S. Middle Market M&A Activity – Quarterly Trends: VALUE U.S. Middle Market M&A Activity – Quarterly Trends: VOLUME

Middle Market M&A Transactions by Deal Size

($ in billions)

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4

As detailed in the table on the right, Middle Market M&A activity in the Industrials industry decreased 50% to 45 completed transactions during Q1 2016 compared to Q1 2015; while the value of completed transactions fell 41% to $6.5 billion.

During Q1 2016, transactions valued at $500 to $1 billion saw the

largest decline compared with the prior year period as deal volume and value within this size range fell 60% and 63%, respectively.

Industrial M&A activity during Q1 2016 was also down compared to

Q4 2015 as the volume of completed transactions fell 43% over the prior quarter.

Commentary

Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion)

Less than $100M $100 - $499M $500 - $1,000MLess than $100M $100 - $499M $500 - $1,000M


Announced Date Target Buyer Industry

Enterprise Value ($mm)

EV / Revenue

EV / EBITDA

03/31/16 Mindful Management, LLC Strategic Storage Operating Partnership Industrial Services $371.0 NA NA

03/29/16 MWH Global, Inc. Stantec, Inc. Construction $793.0 0.7x 10.3x

03/23/16RF Integrated Solutions(Microsemi Corp.)

Mercury Systems, Inc. Aerospace and Defense $300.0 3.0x 10.7x

03/21/16 Hexion, Inc. Synthomer plc Chemicals $226.0 0.6x 7.5x

03/21/16Ardent Services, LLC/ Rabalais, LLC

EMCOR Group, Inc. Construction $205.0 0.7x NA

03/14/16 Total Plastics, Inc. Prophet Equity Trading/ Distribution Companies $55.0 NA NA

03/09/16 Crompton Greaves First Reserve International Ltd. Electrical Equipment NA NA NA

02/29/16 API Technologies Corp. J.F. Lehman & Co. Aerospace and Defense $305.9 1.3x 15.1x

02/29/16 Hydro Flask Helen of Troy Ltd. Materials $210.0 NA NA

02/24/16 PowerSecure International, Inc. Southern Co. Electrical Equipment $426.2 1.0x 18.6x

02/24/16 Prestone Products Corp. Centerbridge Partners Materials $230.0 NA NA

03/21/16 IHS, Inc. Markit Ltd. Industrial Services $10,278.2 4.6x 17.7x

03/20/16 The Valspar Corp. The Sherwin-Williams Co. Chemicals $11,278.8 2.6x 16.2x

02/16/16 The ADT Corp. Protection 1, Inc. Industrial Services $12,383.4 3.5x 6.8x

Recent M&A Activity – Industrials

Select Announced M&A Transactions (Q1 2016)

5

Source: S&P Capital IQ.

($ in millions)


Announced Date Target Buyer Industry

Enterprise Value ($mm)

EV / Revenue

EV / EBITDA

02/09/16 Flanders Holdings, LLC American Air Filter Co. Industrial Machinery $430.0 1.4x NA

02/06/16 FLS Transportation Services, Inc. ABRY Partners, LLC Transportation NA NA NA

02/05/16 Akron Brass Co. IDEX Corp. Industrial Services $224.2 1.9x 8.8x

02/03/16 Kurion, Inc. Veolia Environnement S.A. Machinery $350.0 NA NA

01/26/16 Terex Corp.Zoomlion Heavy Industry Science and Technology Co.

Machinery $4,763.5 0.7x 9.3x

01/19/16 Southern Air Holdings, Inc. Atlas Air Worldwide Holdings, Inc. Transportation $110.0 NA NA

01/11/16 Aon Hewitt, LLC PeopleScout, Inc. Industrial Services $72.0 NA NA

01/08/16 TransMontaigne GP ArcLight Capital Partners Industrial Services $350.0 NA NA

01/08/16 Convergence Fuel Systems, LLC GE Aviation Aerospace and Defense $573.4 NA NA

01/07/16 PEG Bandwidth, LLC Communications Sales & Leasing, Inc. Construction $422.3 NA NA

01/06/16 Source Refrigeration & HVAC, Inc. Audax Group, Inc. Construction NA NA NA

01/05/16 Metalico, Inc. Yechiu Metal Recycling Ltd. Industrial Services $154.8 0.4x NA

01/04/16 Underground Solutions, Inc. Aegion Corp. Machinery $85.0 NA NA

01/04/16 Deluxe Packages Amcor Ltd. Materials $45.0 1.1x NA

Recent M&A Activity – Industrials

Select Announced M&A Transactions (Q1 2016)

6


($ in millions)


10

2

11

9

1

4

29

10

16

11

0

7

0 5 10 15 20 25 30 35

Materials

Transportation

Industrial Services

Machinery

Electrical Equipment

Construction

$1.3

$0.6

$2.1

$1.0

$0.4

$0.4

$3.2

$1.5

$1.5

$1.3

$0.0

$0.2

$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5

Materials

Transportation

Industrial Services

Machinery


Construction

Q1 2015 Q1 2016

Q1 2015 Q1 2016

M&A Activity by Industrial Sector

% Change

% Change

U.S. Middle Market M&A Activity by Industrial Sector: VALUE

7

Source: S&P Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion). Screen excludes Aerospace and Defenses and Professional Services.

U.S. Middle Market M&A Activity by Industrial Sector: VOLUME

41%

59%

18%

31%

80%

65%

($ in billions)

N/A

43%

61%

71%

18%

N/A


Announced

Date Target Buyer Industry

Enterprise

Value

03/31/16 American Scaffold Inc. J.F. Lehman & Co. Construction NA

03/29/16 Iowa Northern Railway Co. Trive Capital Transportation NA

03/28/16 Elite Foam, Inc. Arsenal Capital Partners Materials NA

03/14/16 Total Plastics, Inc. Prophet Equity Trading Companies $55.0

03/14/16 Thermoforming Technology Group Tenex Capital Management Machinery NA

03/07/16 Lithko Contracting, Inc. The Pritzker Organization Construction NA

03/04/16 Inmark, LLC Quad-C Management Materials NA

02/29/16 API Technologies Corp. J.F. Lehman & Co. Aerospace & Defense $306.0

02/24/16 Prestone Products Corp. Centerbridge Partners Materials $230.0

02/17/16 Texas Hydraulics, Inc. Wynnchurch Capital Machinery NA

02/06/16 FLS Transportation Services, Inc. ABRY Partners Transportation NA

02/02/16 Cascade Windows, Inc. CenterOak Partners Materials NA

02/01/16 Veritext Corp. Pamplona Capital Management Industrial Services NA

02/01/16 Preferred Compounding Corp. Audax Group Materials NA

01/19/16 Pacific Architects and Engineers, Inc. Platinum Equity Industrial Services NA

01/12/16 Commercial Cleaning Systems, Inc. Silver Oak Services Partners Industrial Services NA

01/07/16Cortel, Inc. & TowerCom

Technologies, LLCRidgemont Equity Partners Construction NA

01/06/16 Source Refrigeration & HVAC, Inc. Audax Group Construction NA

01/04/16 Inovar Packaging Group, LLC AEA Investors Materials NA$0.0

$2.5

$5.0

$7.5

$10.0

$12.5

Q1 '15 Q1 '16

$10.9

$6.5

41%

78%

9% 22%

91%

90

45

0

20

40

60

80

100

Q1 '15 Q1 '16

7%

93%

13%

87%

50%

During Q1 2016 financial sponsors were active across many sectors within the Industrials Industry, specifically Construction, announcing a number of significant buyouts.

Several notable private equity backed transactions were

announced during Q1 2016 including Audax Group’s proposed purchase of Preferred Compounding Corp.; AEA Investors’ announced acquisition of Inovar Packaging Group, LLC; and J.F. Lehman & Co.’s announced purchase of API Technologies Corp. for $306 million.

In total, financial sponsors accounted for approximately 13% of completed deal volume and 22% of deal value during Q1 ’16.

Select Private Equity Transactions – Industrials (Q1 2016)

Financial Sponsors vs. Strategic Buyers

Private Equity Activity – Industrials

8

Commentary

Source: S&P Capital IQ. (includes all closed deals with disclosed deal value between $10 million and $1 billion).

($ in millions)

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Financial Sponsor Strategic Buyer


70%

80%

90%

100%

110%

120%


S&P 500 Machinery

80%

90%

100%

110%

120%


S&P 500 Construction

80%

90%

100%

110%

120%


S&P 500 Electrical Equipment

Industry Sector Overview – Recent Stock Price Performance


Commentary

9

Construction

Machinery


The charts included on the following pages detail the recent stock price performance by sector for the leading public companies within the Industrials industry for the trailing 12-month period ending March 31, 2016. The shaded section is the most recent 3-month period (Q1) for each sector and relative to the S&P 500.

For the 12-month period ending March 31, 2016, the Industrial Conglomerates sector increased the most (up 9.8%), while the Materials and Transportation sectors saw the largest declines, falling 10.4% and 7.7%, respectively.

During Q1 2016, all sectors in the Industrials industry increased, led by Machinery (up 11.6%), Industrial Services (up 11.4%), and Transportation (up 6.5%).

5.5% 0.0%

0.0%

7.2%

0.0%

2.1%


70%

80%

90%

100%

110%

120%


S&P 500 Materials

80%

90%

100%

110%

120%


S&P 500 Industrial Conglomerates

70%

80%

90%

100%

110%

120%


S&P 500 Transportation

80%

90%

100%

110%

120%


S&P 500 Industrial Services

Industry Sector Overview – Recent Stock Price Performance

Industrial Conglomerates

Industrial Services

10

Transportation


Materials

7.7%

9.8%

0.0%

0.0%

5.0%

0.0%

10.4%

0.0%


Closing Price % of 52 Equity Enterprise

Company Ticker 3/31/16 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA

AECOM Technology Corp. ACM $30.79 87% $4,697 $8,766 $18,077 $541 $987 3.0% 5.5% 0.5x 8.9x

Fluor Corp. FLR $53.70 86% $7,879 $6,841 $18,114 $1,095 $1,116 6.0% 6.2% 0.4x 6.1x

Jacobs Engineering Group, Inc. JEC $43.55 90% $5,405 $5,651 $11,776 $1,889 $558 16.0% 4.7% 0.5x 10.1x

EMCOR Group, Inc. EME $48.60 93% $3,077 $2,912 $6,719 $944 $362 14.1% 5.4% 0.4x 8.0x

Tutor Perini Corp. TPC $15.54 63% $772 $1,520 $4,920 $356 $147 7.2% 3.0% 0.3x 10.3x

KBR, Inc. KBR $15.48 75% $2,229 $1,394 $5,096 $325 $209 6.4% 4.1% 0.3x 6.7x

Average 81% $3,872 $3,664 $9,325 $922 $478 10.0% 4.7% 0.4x 8.3x

Median 86% $3,077 $2,912 $6,719 $944 $362 7.2% 4.7% 0.4x 8.0x

Enterprise Value /

LTM LTM Margins LTM



Masco Corp. MAS $31.45 99% $10,724 $12,624 $7,142 $2,253 $1,053 31.5% 14.7% 1.8x 12.0x

Fortune Brands Home & Security, Inc. FBHS $56.04 98% $9,135 $10,071 $4,579 $1,587 $649 34.7% 14.2% 2.2x 15.5x

Owens Corning OC $47.28 97% $5,588 $7,403 $5,350 $1,163 $841 21.7% 15.7% 1.4x 8.8x

Lennox International, Inc. LII $135.19 98% $6,165 $6,870 $3,467 $953 $429 27.5% 12.4% 2.0x 16.0x

AO Smith Corp. AOS $76.31 94% $6,830 $6,434 $2,537 $1,010 $462 39.8% 18.2% 2.5x 13.9x

USG Corp. USG $24.81 75% $3,653 $5,192 $3,776 $691 $522 18.3% 13.8% 1.4x 9.9x

Armstrong World Industries, Inc. AWI $48.37 80% $2,704 $3,473 $2,420 $612 $286 25.3% 11.8% 1.4x 12.1x

Simpson Manufacturing Co., Inc. SSD $38.17 99% $1,877 $1,618 $794 $359 $141 45.2% 17.7% 2.0x 11.5x

Average 92% $5,136 $5,866 $3,275 $911 $476 30.4% 14.8% 1.8x 12.5x

Median 97% $5,588 $6,434 $3,467 $953 $462 27.5% 14.2% 2.0x 12.1x

LTM Margins

Enterprise Value /

LTM LTM

Construction and Engineering

Industry Sector Overview – Public Company Analysis

Building Products

($ in millions, except per share)

11

Construction





Rockwell Automation, Inc. ROK $113.75 90% $15,314 $14,748 $6,160 $2,628 $1,266 42.7% 20.5% 2.4x 11.7x

Ametek, Inc. AME $49.98 87% $12,074 $13,636 $3,974 $1,461 $1,094 36.8% 27.5% 3.4x 12.5x

Acuity Brands, Inc. AYI $218.14 90% $9,484 $9,276 $2,796 $1,192 $458 42.6% 16.4% 3.3x 20.3x

Hubbell, Inc. HUBB $105.93 94% $6,144 $6,441 $3,390 $1,116 $594 32.9% 17.5% 1.9x 10.8x

Woodward, Inc. WWD $52.02 92% $3,405 $4,208 $1,996 $566 $324 28.3% 16.2% 2.1x 13.0x

Belden Inc. BDC $61.38 64% $2,636 $4,174 $2,309 $928 $346 40.2% 15.0% 1.8x 12.1x

Generac Holdings, Inc. GNRC $37.24 75% $2,577 $3,523 $1,317 $460 $261 34.9% 19.8% 2.7x 13.5x

Brady Corp. BRC $26.84 95% $1,373 $1,505 $1,131 $542 $137 48.0% 12.1% 1.3x 11.0x

Average 85% $5,385 $6,109 $2,416 $895 $459 37.7% 17.8% 2.4x 13.3x

Median 90% $3,405 $4,208 $2,309 $928 $346 36.8% 16.4% 2.1x 12.5x

Enterprise Value /

LTM LTM Margins LTM


12







Illinois Tool Works, Inc. ITW $102.44 99% $37,913 $42,249 $13,405 $5,517 $3,344 41.2% 24.9% 3.2x 12.6x

Eaton Corp. ETN $62.56 85% $29,222 $37,273 $20,855 $6,605 $3,314 31.7% 15.9% 1.8x 11.2x

Stanley Black & Decker, Inc. SWK $105.21 95% $16,066 $19,526 $11,172 $4,072 $1,787 36.4% 16.0% 1.7x 10.9x

Parker Hannifin Corp. PH $111.08 89% $15,471 $16,905 $11,882 $2,788 $1,676 23.5% 14.1% 1.4x 10.1x

Dover Corporation DOV $64.33 82% $10,240 $12,646 $6,956 $2,589 $1,303 37.2% 18.7% 1.8x 9.7x

Flowserve Corp. FLS $44.41 74% $5,943 $7,225 $4,561 $1,554 $762 34.1% 16.7% 1.6x 9.5x

Donaldson Co., Inc. DCI $31.91 84% $4,354 $4,777 $2,241 $757 $348 33.8% 15.5% 2.1x 13.7x

The Timken Company TKR $33.49 78% $2,834 $3,373 $2,872 $800 $437 27.9% 15.2% 1.2x 7.7x

Average 86% $15,255 $17,997 $9,243 $3,085 $1,621 33.2% 17.1% 1.9x 10.7x

Median 84% $12,855 $14,775 $9,064 $2,689 $1,489 33.9% 15.9% 1.8x 10.5x

Enterprise Value /

LTM LTM Margins LTM



Caterpillar, Inc. CAT $76.54 85% $46,024 $78,857 $47,011 $10,918 $7,264 23.2% 15.5% 1.7x 10.9x

Deere & Co. DE $76.99 78% $25,328 $58,791 $27,923 $6,482 $3,814 23.2% 13.7% 2.1x 15.4x

PACCAR, Inc. PCAR $54.69 80% $19,448 $24,708 $19,115 $3,013 $2,768 15.8% 14.5% 1.3x 8.9x

Cummins, Inc. CMI $109.94 77% $19,614 $19,786 $19,110 $4,947 $2,569 25.9% 13.4% 1.0x 7.7x

AGCO Corp. AGCO $49.70 86% $4,329 $5,188 $7,467 $1,561 $644 20.9% 8.6% 0.7x 8.1x

The Toro Company TTC $86.12 97% $4,865 $5,164 $2,403 $850 $371 35.4% 15.4% 2.1x 13.9x

Oshkosh Corp. OSK $40.87 73% $3,177 $4,129 $5,997 $992 $482 16.5% 8.0% 0.7x 8.6x

Joy Global, Inc. JOY $16.07 36% $1,568 $2,450 $2,995 $741 $327 24.7% 10.9% 0.8x 7.5x

Manitowoc Co., Inc. MTW $4.33 19% $595 $1,946 $3,436 $833 $315 24.3% 9.2% 0.6x 6.2x

Average 70% $13,883 $22,335 $15,051 $3,371 $2,061 23.3% 12.1% 1.2x 9.7x

Median 78% $4,865 $5,188 $7,467 $1,561 $644 23.2% 13.4% 1.0x 8.6x

Enterprise Value /

LTM LTM Margins LTM


Construction and Farm Machinery


13

Industrial Machinery

Machinery





W.W. Grainger, Inc. GWW $233.43 92% $15,352 $17,137 $9,973 $4,231 $1,526 42.4% 15.3% 1.7x 11.2x

Fastenal Co. FAST $49.00 98% $14,310 $14,546 $3,869 $1,949 $914 50.4% 23.6% 3.8x 15.9x

United Rentals, Inc. URI $62.19 59% $5,994 $13,977 $5,817 $2,509 $1,795 43.1% 30.9% 2.4x 7.8x

GATX Corp. GMT $47.50 77% $2,081 $6,082 $1,450 $881 $672 60.7% 46.3% 4.2x 9.1x

MSC Industrial Direct Co., Inc. MSM $76.31 100% $4,690 $5,005 $2,886 $1,305 $448 45.2% 15.5% 1.7x 11.2x

Watsco, Inc. WSO $134.74 99% $4,376 $4,834 $4,113 $1,007 $353 24.5% 8.6% 1.2x 13.7x

WESCO International, Inc. WCC $54.67 73% $2,754 $4,126 $7,518 $1,494 $428 19.9% 5.7% 0.5x 9.6x

EnerSys ENS $55.72 76% $2,568 $2,882 $2,335 $610 $319 26.1% 13.7% 1.2x 9.0x

Applied Industrial Technologies, Inc. AIT $43.40 96% $1,744 $2,055 $2,610 $733 $213 28.1% 8.2% 0.8x 9.6x

Titan Machinery, Inc. TITN $11.56 68% $244 $880 $1,523 $257 $56 16.9% 3.7% 0.6x 15.8x

Average 84% $5,411 $7,152 $4,209 $1,498 $672 35.7% 17.1% 1.8x 11.3x

Median 85% $3,565 $4,919 $3,378 $1,156 $438 35.3% 14.5% 1.5x 10.4x

Enterprise Value /

LTM LTM Margins LTM


Trading Companies and Distributors


14

Machinery





Iron Mountain, Inc. IRM $33.91 88% $7,193 $11,930 $3,008 $1,718 $895 57.1% 29.7% 4.0x 13.3x

Cintas Corp. CTAS $89.81 95% $10,044 $10,958 $4,777 $2,063 $918 43.2% 19.2% 2.3x 11.9x

KAR Auction Services, Inc. KAR $38.14 96% $5,427 $8,347 $2,640 $1,142 $644 43.3% 24.4% 3.2x 13.0x

Avery Dennison Corp. AVY $72.11 99% $6,699 $7,582 $5,967 $1,646 $686 27.6% 11.5% 1.3x 11.1x

Pitney Bowes, Inc. PBI $21.54 90% $4,328 $6,827 $3,578 $2,019 $818 56.4% 22.9% 1.9x 8.3x

R.R. Donnelley & Sons Co. RRD $16.40 81% $3,392 $6,439 $11,257 $2,464 $1,148 21.9% 10.2% 0.6x 5.6x

Copart, Inc. CPRT $40.77 98% $5,206 $5,723 $1,168 $517 $402 44.3% 34.4% 4.9x 14.2x

Corrections Corp. of America CXW $32.05 78% $3,775 $5,203 $1,793 $537 $437 29.9% 24.4% 2.9x 11.9x

The Brink's Co. BCO $33.59 98% $1,656 $1,915 $3,061 $590 $249 19.3% 8.1% 0.6x 7.7x

Average 92% $5,066 $6,624 $4,280 $1,372 $663 35.7% 19.4% 2.2x 10.5x

Median 95% $4,767 $6,633 $3,320 $1,394 $665 36.6% 21.0% 2.1x 11.5x

Enterprise Value /

LTM LTM Margins LTM



Waste Management, Inc. WM $59.00 98% $26,898 $35,862 $12,961 $4,730 $3,387 36.5% 26.1% 2.8x 10.6x

Republic Services, Inc. RSG $47.65 98% $16,744 $24,288 $9,115 $3,546 $2,563 38.9% 28.1% 2.7x 9.5x

Stericycle, Inc. SRCL $126.19 83% $10,873 $14,049 $2,986 $1,328 $786 44.5% 26.3% 4.7x 17.9x

Waste Connections, Inc. WCN $64.59 97% $7,976 $10,143 $2,117 $940 $709 44.4% 33.5% 4.8x 14.3x

Rollins, Inc. ROL $27.12 89% $5,928 $5,793 $1,485 $749 $286 50.4% 19.2% 3.9x 20.3x

Covanta Holding Corp. CVA $16.86 74% $2,242 $4,636 $1,645 $532 $350 32.3% 21.3% 2.8x 13.2x

Clean Harbors, Inc. CLH $49.34 83% $2,883 $4,081 $3,275 $918 $494 28.0% 15.1% 1.2x 8.3x

Tetra Tech, Inc. TTEK $29.82 99% $1,810 $1,877 $1,703 $310 $183 18.2% 10.7% 1.1x 10.3x

Sims Metal Management, Ltd. ASX:SGM $6.64 72% $1,361 $1,080 $3,914 $440 $72 11.2% 1.8% 0.3x 15.0x

Casella Waste Systems, Inc. CWST $6.70 93% $272 $794 $547 $164 $91 30.0% 16.7% 1.5x 8.7x

Schnitzer Steel Industries, Inc. SCHN $18.44 89% $499 $687 $1,683 $163 $60 9.7% 3.6% 0.4x 11.4x

Average 89% $7,044 $9,390 $3,766 $1,256 $816 31.3% 18.4% 2.4x 12.7x

Median 89% $2,883 $4,636 $2,117 $749 $350 32.3% 19.2% 2.7x 11.4x

Enterprise Value /

LTM LTM Margins LTM


Environmental and Facilities Services


15

Industrial Services

Diversified Support Services





Union Pacific Corp. UNP $79.55 71% $68,443 $80,963 $21,028 $10,699 $9,785 50.9% 46.5% 3.9x 8.3x

CSX Corp. CSX $25.75 68% $25,151 $34,594 $11,402 $4,671 $4,671 41.0% 41.0% 3.0x 7.4x

Norfolk Southern Corporation NSC $83.25 78% $25,119 $34,308 $10,364 $4,062 $4,067 39.2% 39.2% 3.3x 8.4x

Kansas City Southern KSU $85.45 79% $9,344 $11,990 $2,378 $1,104 $1,104 46.4% 46.4% 5.0x 10.9x

JB Hunt Transport Services, Inc. JBHT $84.24 90% $9,753 $10,709 $6,276 $1,273 $1,075 20.3% 17.1% 1.7x 10.0x

Ryder System, Inc. R $64.78 64% $3,454 $8,997 $6,634 $1,502 $1,793 22.6% 27.0% 1.4x 5.0x

AMERCO UHAL $357.31 82% $7,002 $8,616 $3,235 $1,063 $1,175 32.9% 36.3% 2.7x 7.3x

Old Dominion Freight Line, Inc. ODFL $69.62 92% $5,909 $6,028 $2,984 $899 $662 30.1% 22.2% 2.0x 9.1x

Genesee & Wyoming, Inc. GWR $62.70 64% $3,640 $5,880 $2,086 $735 $578 35.2% 27.7% 2.8x 10.2x

Landstar System, Inc. LSTR $64.61 88% $2,794 $2,731 $3,272 $719 $270 22.0% 8.3% 0.8x 10.1x

Werner Enterprises, Inc. WERN $27.16 86% $1,969 $2,024 $2,081 $566 $375 27.2% 18.0% 1.0x 5.4x

Average 79% $9,414 $12,588 $5,071 $1,659 $1,577 31.7% 28.3% 2.4x 8.4x

Median 80% $6,456 $8,806 $3,253 $1,083 $1,089 31.5% 27.4% 2.3x 8.8x

LTM

Enterprise Value /

LTM Margins LTM



United Parcel Service, Inc. UPS $105.47 98% $95,556 $105,488 $58,363 $14,388 $9,747 24.7% 16.7% 1.8x 10.8x

FedEx Corp. FDX $162.72 88% $45,846 $51,500 $49,500 $14,205 $7,353 28.7% 14.9% 1.0x 7.0x

CH Robinson Worldwide, Inc. CHRW $74.23 99% $10,789 $11,651 $13,476 $1,217 $915 9.0% 6.8% 0.9x 12.7x

Expeditors International of Washington, Inc. EXPD $48.81 94% $9,285 $8,480 $6,617 $942 $767 14.2% 11.6% 1.3x 11.0x

Atlas Air Worldwide Holdings, Inc. AAWW $42.27 71% $1,058 $2,421 $1,823 $608 $390 33.4% 21.4% 1.3x 6.2x

Forward Air Corp. FWRD $45.32 82% $1,407 $1,472 $959 $242 $141 25.2% 14.7% 1.5x 10.5x

Hub Group, Inc. HUBG $40.79 93% $1,467 $1,383 $3,526 $413 $154 11.7% 4.4% 0.4x 9.0x

Average 89% $23,630 $26,056 $19,180 $4,573 $2,781 21.0% 12.9% 1.2x 9.6x

Median 93% $9,285 $8,480 $6,617 $942 $767 24.7% 14.7% 1.3x 10.5x

LTM

Enterprise Value /

LTM Margins LTM


Air Freight and Logistics


16

Transportation

Road and Rail





Delta Air Lines, Inc. DAL $48.68 92% $38,579 $44,113 $40,567 $12,936 $9,125 31.9% 22.5% 1.1x 4.8x

American Airlines Group Inc. AAL $41.01 77% $27,107 $41,921 $40,598 $14,360 $8,825 35.4% 21.7% 1.0x 4.8x

United Continental Holdings, Inc. UAL $59.86 92% $22,133 $29,767 $37,451 $13,859 $7,302 37.0% 19.5% 0.8x 4.1x

Southwest Airlines Co. LUV $44.80 87% $29,590 $29,362 $20,060 $7,842 $5,413 39.1% 27.0% 1.5x 5.4x

Alaska Air Group, Inc. ALK $82.02 94% $10,470 $9,553 $5,676 $2,361 $1,716 41.6% 30.2% 1.7x 5.6x

JetBlue Airways Corp. JBLU $21.12 77% $7,257 $7,750 $6,509 $2,706 $1,615 41.6% 24.8% 1.2x 4.8x

Allegiant Travel Co. ALGT $178.06 75% $2,996 $3,305 $1,280 $568 $476 44.4% 37.2% 2.6x 6.9x

Spirit Airlines, Inc. SAVE $47.98 61% $3,456 $3,261 $2,186 $880 $563 40.2% 25.8% 1.5x 5.8x

Westjet Airlines, Ltd. WJA $15.88 68% $1,979 $2,053 $3,066 $1,510 $598 49.3% 19.5% 0.7x 3.4x

Average 79% $13,124 $15,872 $14,603 $5,511 $3,314 41.1% 25.7% 1.4x 5.1x

Median 77% $8,863 $8,651 $6,093 $2,534 $1,666 40.9% 25.3% 1.3x 5.1x

Enterprise Value /

LTM LTM Margins LTM



Kirby Corp. KEX $60.29 72% $3,305 $4,121 $2,148 $785 $573 36.6% 26.7% 1.9x 7.2x

Matson, Inc. MATX $40.17 76% $1,767 $2,223 $1,885 $377 $298 20.0% 15.8% 1.2x 7.5x

Rand Logistics, Inc. RLOG $0.95 26% $17 $225 $149 $38 $25 25.5% 16.6% 1.5x 9.1x

International Shipholding Corp. ISHC $2.05 16% $15 $217 $259 $52 $15 20.0% 5.9% 0.8x 14.1x

Average 47% $1,276 $1,697 $1,110 $313 $228 25.5% 16.2% 1.4x 9.5x

Median 49% $892 $1,224 $1,072 $214 $161 22.7% 16.2% 1.3x 8.3x

Enterprise Value /

LTM LTM Margins LTM


Airlines


17

Transportation

Marine





General Electric Co. GE $31.79 99% $312,885 $494,185 $117,654 $23,829 $13,541 20.3% 11.5% 4.2x 36.5x

3M Company MMM $166.63 99% $105,014 $114,792 $30,105 $14,905 $8,570 49.5% 28.5% 3.8x 13.4x

United Technologies Corporation UTX $100.10 84% $86,581 $103,691 $56,135 $15,772 $10,105 28.1% 18.0% 1.8x 10.3xSiemens Aktiengesellschaft SIE $86.01 73% $70,792 $88,927 $88,900 $26,074 $9,872 29.3% 11.1% 1.0x 9.0x

Danaher Corp. DHR $94.86 97% $66,696 $81,115 $21,256 $11,215 $4,911 52.8% 23.1% 3.8x 16.5x

Tyco International, Ltd. TYC $36.71 84% $15,694 $18,474 $9,701 $3,594 $1,574 37.0% 16.2% 1.9x 11.7x

Average 89% $109,610 $150,197 $53,959 $15,898 $8,095 36.2% 18.1% 2.8x 16.2x

Median 91% $78,687 $96,309 $43,120 $15,339 $9,221 33.2% 17.1% 2.9x 12.6x

LTM LTM Margins LTM



18

Industrial Conglomerates

Source: S&P Capital IQ. * Note: General Electric Co. enterprise value and LTM financials excludes GE Capital




Freeport-McMoRan Copper & Gold, Inc. FCX $10.34 43% $11,733 $37,224 $15,251 $3,638 $3,104 23.9% 20.4% 2.4x 12.0x

Southern Copper Corp. SCCO $27.71 83% $21,803 $27,133 $5,016 $2,042 $1,898 40.7% 37.8% 5.4x 14.3x

Alcoa Inc. AA $9.58 67% $12,284 $22,162 $21,662 $4,088 $2,665 18.9% 12.3% 1.0x 8.3x

Newmont Mining Corp. NEM $26.58 94% $13,921 $20,041 $7,789 $3,429 $2,893 44.0% 37.1% 2.6x 6.9x

United States Steel Corp. X $16.05 58% $2,347 $4,764 $10,643 $132 ($249) 1.2% (2.3%) 0.4x NM

Average 69% $12,418 $22,265 $12,072 $2,666 $2,062 25.7% 21.1% 2.4x 10.4x

Median 67% $12,284 $22,162 $10,643 $3,429 $2,665 23.9% 20.4% 2.4x 10.2x

Enterprise Value /

LTM LTM Margins LTM



The Dow Chemical Co. DOW $50.86 89% $63,138 $79,408 $48,778 $11,152 $8,613 22.9% 17.7% 1.6x 9.2x

E.I. du Pont de Nemours and Co. DD $63.32 84% $56,958 $61,140 $25,130 $10,018 $4,105 39.9% 16.3% 2.4x 14.9x

Monsanto Company MON $87.74 71% $41,464 $48,908 $14,350 $7,824 $4,358 54.5% 30.4% 3.4x 11.2x

Praxair, Inc. PX $114.45 92% $33,082 $43,001 $10,776 $4,816 $3,568 44.7% 33.1% 4.0x 12.1x

Air Products & Chemicals, Inc. APD $144.05 94% $31,338 $37,052 $9,690 $2,979 $2,905 30.7% 30.0% 3.8x 12.8x

The Sherwin-Williams Co. SHW $284.67 97% $26,766 $28,520 $11,339 $5,559 $1,813 49.0% 16.0% 2.5x 15.7x

Potash Corporation of Saskatchewan Inc. TSX:POT $17.05 53% $14,276 $18,308 $5,791 $2,269 $2,347 39.2% 40.5% 3.2x 7.8x

Eastman Chemical Co. EMN $72.23 86% $10,820 $17,920 $9,648 $2,671 $2,283 27.7% 23.7% 1.9x 7.8x

Celanese Corp. CE $65.50 88% $9,975 $12,421 $5,674 $1,318 $1,043 23.2% 18.4% 2.2x 11.9x

W.R. Grace & Co. GRA $71.18 68% $5,168 $7,064 $3,052 $1,168 $648 38.3% 21.2% 2.3x 10.9x

Average 82% $29,298 $35,374 $14,423 $4,977 $3,168 37.0% 24.7% 2.7x 11.4x

Median 87% $29,052 $32,786 $10,233 $3,897 $2,626 38.7% 22.4% 2.5x 11.6x

Enterprise Value /

LTM LTM Margins LTM


19

Materials


Chemicals

Metals and Mining





International Paper Co. IP $41.04 73% $17,261 $32,248 $22,365 $6,897 $3,657 30.8% 16.4% 1.4x 8.8x

Domtar Corp. UFS $40.50 88% $2,568 $3,730 $5,264 $1,117 $706 21.2% 13.4% 0.7x 5.3x

Resolute Forest Products Inc. RFP $5.51 30% $509 $1,060 $3,645 $884 $275 24.3% 7.5% 0.3x 3.9x

Average 64% $6,779 $12,346 $10,425 $2,966 $1,546 25.4% 12.4% 0.8x 6.0x

Median 73% $2,568 $3,730 $5,264 $1,117 $706 24.3% 13.4% 0.7x 5.3x

Enterprise Value /

LTM LTM Margins LTM


20

Source: Capital IQ.

Materials


Paper and Forest Products


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