Sectorwatch: Industrial Automation & Robotics

Sectorwatch:Industrial Automation & RoboticsApril 2019

2

Industrial Automation & RoboticsApril 2019 Sector Dashboard [4]

Public Basket Performance [5]

Operational Metrics [7]

Valuation Comparison [10]

Recent Deals [13]

Appendix [15]

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only inconjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. Alldata cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7MSecurities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated asconfidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

3

Overview

7MA provides Investment Banking & Advisory Services to the Environmental & Facility 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. We publish our sectorwatch, a review of M&A and operational trends in the industries we focus.

Dashboard• Summary metrics on the sector• Commentary on market momentum by

comparing the most recent 12-month performance against the last 3-year averages.

Public Basket Performance• Summary valuation and operating metrics

for a basket of comparable public companies

Valuation Comparison• Graphical, detailed comparison of valuation

multiples for the public basket

Recent Deals• The most recently announced deals in the

sector

4

Dashboard

Operating Metrics

Valuation

3.9%

14.0%

41.5%

0% 10% 20% 30% 40% 50%

Median LTM Rev. Growth %

Median LTM EBITDA Margin %

Median LTM GP Margin %

1.7x

13.1x

15.8x

22.0x

0x 10x 20x 30x

Median TEV / LTM Revenue

Median TEV / LTM EBITDA

Median TEV / LTM EBIT

Median Price / LTM Earnings

Revenue Growth Momentum

1.8% 1 - year revenue growth compared to revenue growth

average for last 3 years

Pricing / Gross Margin Momentum

0.04% 1 - year gross profit % compared to gross profit %

average for last 3 years

Profitability

-0.5% 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 is less than the average of the last 3 years EBITDA

margins, which may signal further consolidation

5

Public Basket

Company TEV $mLTM Rev

$m

Rev Growth

YoY GP %EBITDA

%TEV / Rev X

TEV / EBITDA

X # FTEsRev / FTE $k

Krones AG 2,636 4,469 4% 47% 8% 0.6 8.0 16,545 270

KUKA Aktiengesellschaft 2,912 3,631 -6% 22% 4% 0.8 20.1 14,235 255

Amada Holdings Co., Ltd. 3,583 3,023 15% 44% 17% 1.2 6.8 8,228 367

Nabtesco Corporation 3,852 2,644 1% 27% 12% 1.5 10.6 7,713 343

Lincoln Electric Holdings, Inc. 6,022 3,030 8% 34% 16% 2.0 12.6 11,000 275

OMRON Corporation 9,979 7,756 0% 41% 12% 1.3 10.6 - NA

Rockwell Automation, Inc. 22,751 6,728 3% 43% 22% 3.4 15.3 23,000 293

Fanuc Corporation 30,572 5,736 -13% 42% 32% 5.4 15.7 - NA

ABB Ltd 50,504 28,068 18% 31% 11% 1.8 15.9 146,600 191

Emerson Electric Co. 48,434 17,739 12% 43% 21% 2.7 13.3 87,500 203

Average 18,125 8,282 4% 37% 16% 2.1 12.9 31,482 275

Median 8,001 5,103 4% 42% 14% 1.7 13.0 12,618 273

share price as of 30Apr19

6

Public Basket Valuation Trends

Public EBITDA Multiples over Time

Public Revenue Multiples over Time

0.0x

0.5x

1.0x

1.5x

2.0x

Jul-

14

Oct-

14

Jan-1

5

Apr-

15

Jul-

15

Oct-

15

Jan-1

6

Apr-

16

Jul-

16

Oct-

16

Jan-1

7

Apr-

17

Jul-

17

Oct-

17

Jan-1

8

Apr-

18

Jul-

18

Oct-

18

Jan-1

9

Apr-

19

TEV/Revenue - Median TEV/Revenue - Average

0x

5x

10x

15x

20x

Jul-

14

Oct-

14

Jan-1

5

Apr-

15

Jul-

15

Oct-

15

Jan-1

6

Apr-

16

Jul-

16

Oct-

16

Jan-1

7

Apr-

17

Jul-

17

Oct-

17

Jan-1

8

Apr-

18

Jul-

18

Oct-

18

Jan-1

9

Apr-

19

TEV/EBITDA - Median TEV/EBITDA - Average10.9x

1.5x

0x

3x

6x

9x

12x

15x

18x

Jul-

14

Oct-

14

Jan-1

5

Apr-

15

Jul-

15

Oct-

15

Jan-1

6

Apr-

16

Jul-

16

Oct-

16

Jan-1

7

Apr-

17

Jul-

17

Oct-

17

Jan-1

8

Apr-

18

Jul-

18

Oct-

18

Jan-1

9

Apr-

19

TEV/EBITDA - Median TEV/Revenue - Median

TEV/EBITDA - Average TEV/Revenue - Average

7

Operational Metrics

LTM Gross Profit Margin % LTM EBITDA %

- 10% 20% 30% 40%

Median

KUKA Aktiengesellschaft

Krones AG

ABB Ltd

OMRON Corporation

Nabtesco Corporation

Lincoln Electric Holdings,

Inc.

Amada Holdings Co., Ltd.

Emerson Electric Co.

Rockwell Automation, Inc.

Fanuc Corporation

- 10% 20% 30% 40% 50%

Median



ABB Ltd


Inc.

OMRON Corporation

Fanuc Corporation




Krones AG

8

Operational Metrics

LTM Revenue Growth %LTM Revenue per

Full Time Employee x 000’s

(10%) - 10% 20%

Median


Fanuc Corporation

OMRON Corporation


Krones AG


ABB Ltd




Inc.

$- $300 $600 $900

Median

ABB Ltd


OMRON Corporation


Krones AG


Inc.




Fanuc Corporation

9

Operational Metrics

Accounts Receivable TurnoverAverage Days

Sales Outstanding

0x 2x 4x 6x 8x 10x

Median


Krones AG



ABB Ltd

Fanuc Corporation

OMRON Corporation




Inc.

0 30 60 90 120 150

Median


Inc.



OMRON Corporation

Fanuc Corporation

ABB Ltd



Krones AG


10

Valuation

TEV / LTM Revenue TEV / LTM EBITDA

0x 1x 2x 3x 4x 5x 6x

Median

Krones AG



OMRON Corporation


ABB Ltd


Inc.



Fanuc Corporation

0x 10x 20x 30x

Median


Krones AG


OMRON Corporation


Inc.


Fanuc Corporation

ABB Ltd



11

Valuation

TEV / LTM EBIT Price / LTM Earnings

0x 20x 40x 60x 80x

Median


Krones AG


OMRON Corporation


Inc.


Fanuc Corporation


ABB Ltd


0x 50x 100x 150x 200x

Median


Krones AG



Inc.


OMRON Corporation

Fanuc Corporation


ABB Ltd


12

Valuation

Historical Valuation Multiples versus Gross Profit

Historical Valuation Multiples versus Revenue Growth Rate

7x 8x 10x 10x 13x 13x 14x 15x 16x 23x

43.5%

47.0%

27.0%

41.5%

34.0%

42.8% 43.5%

31.1%

43.3%

22.4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0x

5x

10x

15x

20x

25x

LTM

GP%

EBIT

DA(x

)

EBITDA(x) LTM GP%

7x 8x 10x 10x 13x 13x 14x 15x 16x 23x

14.6%

4.4%

4.3%

2.4%

15.4%

11.8%

0.6%

9.8%

4.9%

(6.8%)

-10%

-5%

0%

5%

10%

15%

20%

0x

5x

10x

15x

20x

25x

LTM

RG

R%

EBIT

DA(x

)

EBITDA(x) LTM RGR%

13

Recent TransactionsDate Target Buyer / Investor

Total Transaction

Value Target

Revenue TEV /

Revenue TEV /

EBITDA

15Apr19 Quest Industrial, LLC ProMach Inc. - - - -

10Apr19 Canvas Technology, Inc. Amazon.com, Inc. - - - -

8Apr19 Jaka Robot SAIF Partners 15.00 - - -

14Mar19 Bright Machines, Inc. BMW i Ventures - - - -

28Feb19 Beijing Aqrose Technology Co., Ltd. DCM Ventures; Legend Capital Management Co., Ltd.; Baidu Venture

10.00 - - -

29Jan19 Dic Technology BARON Groupe - - - -

16Jan19 drag and bot GmbH Speedinvest GmbH - - - -

14Jan19 PRI Robotics & Automation, Inc. Eckhart & Associates, Inc. - - - -

11Dec18 Robotiq Inc. Battery Ventures 23.11 - - -

20Nov18 Aripix Robotics LLC Genezis Technology Capital 0.50 - - -

5Nov18 LPK Co.,Ltd Optimus One Co., Ltd. 1.70 - - -

15Oct18 liqun automation Technology Financial Group 14.46 - - -

5Sep18 Sarcos Corp. Schlumberger Limited; Cottonwood Capital Partners, LLC; M12; GE Ventures; Caterpillar Ventures; DIG Investment; Alex. Brown & Sons, Investment Arm

30.00 - - -

4Sep18 Plus One Robotics Inc. Zebra Technologies Corporation; Lerer Hippeau Ventures; FF Ventures LLC; Pritzker Group Venture Capital; Procyon Ventures; Tcl Ventures, Inc.; Schematic Ventures; Dynamo

8.30 - - -

6Aug18 Ground Drone Ltd. Viola Ventures; NFX Guild Partners 3.00 - - -

16Jul18 Automation Machine Design Rc Inc. Premier Tech Ltd. - - - -

12Jul18 Asic Robotics AG Paragon Partners GmbH - - - -

3May18 TAL Manufacturing Solutions Limited Tata Advanced Systems Limited 93.61 50.56 1.9x 7.1x

25Apr18 Mobile Industrial Robots ApS Teradyne, Inc. 272.00 12.00 22.7x -

22Apr18 ELXSI Corporation SPX Corporation 189.00 90.00 2.1x -

18Apr18 LPK Co.,Ltd People & Telecommunication Inc. 12.23 - - -

8Apr18 Beijing Aresbots Technology Co., Ltd. Megvii Technology Limited - - - -

13Mar18 Robotic VISION Technologies, LLC - 10.50 - - -

7Mar18 Jaka Robot F&G Venture 9.50 - - -

14

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 inconjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. Alldata cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7MSecurities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated asconfidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

Industrial Automation & RoboticsApril 2019

15

Public Basket

Krones AG

Krones AG, together with its subsidiaries, engages in planning,developing, and manufacturing machinery and systems for thefields of process technology, filling and packaging technology,and intralogistics in Germany and internationally. The companyoperates through three segments: Machines and Lines forProduct Filling and Decoration, Machines and Lines forBeverage Production/Process Technology, and Machines andLines for the Compact Class. It provides plant engineeringsolutions, such as planning new plants, plant expansion, plantstructural planning, and energy and media optimization; andprocess technology systems for use in beer, soft drink, water,milk, wine, spirit, juice, and dairy products. It also provides fillingtechnology products for bottle design, stretch blow moulder,PET recycling, bottle washing machine, filling technology,inspection technology, labeling, conveyor, product treatment,and block technology applications; and packaging, palletising,block, and robot technology products. Krones AG was foundedin 1951 and is headquartered in Neutraubling, Germany.

Date Key Development Headline11/7/18 Krones AG (XTRA:KRN) acquired MHT Mold & Hotrunner

Technology AG.

9/16/18 Krones AG (XTRA:KRN) acquired Shanghai Xiantong Equipment Installation Co., Ltd.

7/25/18 Krones AG (XTRA:KRN) acquired 70% stake in Integrated Plastics Systems AG from Integrated Packaging Systems FZCO.

0.0x

0.5x

1.0x

1.5x

Revenue Multiples - Krones AG

TEV/Revenue Average

0x

5x

10x

15x

EBITDA Multiples - Krones AG

TEV/EBITDA Average

0x

10x

20x

30x

P/E Multiples - Krones AG

P/E Average

16

Public Basket


KUKA Aktiengesellschaft, an automation company, providesrobot-based automation solutions worldwide. It operates inAutomotive, Industries, Consumer Goods & LogisticAutomation, and Operating/Manufacturing/Purchase segments.The company develops, manufactures, and distributes industrialand service robots, as well as robot controllers and software. Italso plans, designs, and builds automated production systems,including individual system components, tools and fixtures,automated production cells, and turnkey systems; andautomates individual production processes, such as weldingand joining, processing various materials, and integratingvarious production stages to form an automatic system. Inaddition, the company offers automated solutions for hospitals,warehouses, and distribution centers. It sells its products underthe KUKA brand to customers in the automotive, consumergoods, energy and storage, electronics, e-commerce,healthcare, and metal industries, as well as various othersectors. The company was founded in 1898 and isheadquartered in Augsburg, Germany. KUKA Aktiengesellschaftis a subsidiary Mecca International (BVI) Limited.

Date Key Development Headline7/3/18 Körber AG acquired connyun from KUKA Aktiengesellschaft

(DB:KU2).

0.0x

0.5x

1.0x

1.5x

2.0x

Revenue Multiples - KUKA Aktiengesellschaft

TEV/Revenue Average

0x

10x

20x

30xEBITDA Multiples - KUKA Aktiengesellschaft

TEV/EBITDA Average

0x

50x

100x

150x

200x

P/E Multiples - KUKA Aktiengesellschaft

P/E Average

17

Public Basket


Amada Holdings Co., Ltd., together with its subsidiaries,engages in the manufacture, sale, lease, repair, maintenance,checking, and inspection of metalworking machinery andequipment in Japan, North America, Europe, other countries inAsia, and internationally. It offers sheet metal fabricationmachines, including laser machines, turret punch presses, pressbrakes, and welders, as well as software solutions; metal cuttingmachines, such as band saw and structural steel machines thatare used in the fabrication of steel frames for high-risebuildings, bridges, and other structures; and machine tools,which include multiprocess centers, grinding machines, andelectrical discharge machines for use in the precision finishingof medical devices and other equipment. Amada Holdings Co.,Ltd. was founded in 1946 and is headquartered in Isehara,Japan.

Date Key Development Headline11/13/18 Tokyo Century Corporation (TSE:8439) concluded a share

transfer agreement to acquire 60% stake in Amada Lease Co.,Ltd. from Amada Holdings Co., Ltd. (TSE:6113).

8/7/18 Amada Holdings Co., Ltd. (TSE:6113) concluded a contract to acquire Orii and Mec Corporation from Namura Shipbuilding Co., Ltd. (TSE:7014) for ¥12.5 billion.

0.0x

0.5x

1.0x

1.5x

2.0x

2.5xRevenue Multiples - Amada Holdings Co.,

Ltd.

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - Amada Holdings Co., Ltd.

TEV/EBITDA Average

0x

10x

20x

30x

40x

50x

P/E Multiples - Amada Holdings Co., Ltd.

P/E Average

18

Public Basket


Nabtesco Corporation manufactures and sells equipment in theindustrial, daily life, and environmental fields in Japan andinternationally. It operates through Component Solutions,Transport Solutions, Accessibility Solutions, and ManufacturingSolutions segments. The company offers precision reductiongears for industrial robots’ joints; hydraulic equipment, suchas traveling unit for crawlers, control valve for mini excavators,and swing unit for hydraulic excavators; railroad vehicleequipment, such as railroad vehicle brake systems, dooroperating units, test equipment, brake shoes, seat turningequipment, and snow removal devices; and aircraft equipmentcomprising flight control actuation systems and high voltageelectric power distribution units. It also provides air dryers andwedge brake chambers for commercial vehicles, and hydraulicclutch master cylinders for passenger vehicles; engine remotecontrol systems for vessels; automatic doors and platform doorsfor buildings; automatic filters/sealers for retort pouch foods;and intelligent prosthetic knee joints, electric wheelchairs, stairlift with a wheelchair, and rollator with a speed control system,as well as new energy equipment comprising yaw and pitchdrives, and solar tracking equipment. Nabtesco Corporationwas founded in 2003 and is headquartered in Tokyo, Japan.

Date Key Development Headline6/26/18 Nabtesco Corporation and Emerald Technology Ventures

Establish Corporate Venture Partnership

0.0x

0.5x

1.0x

1.5x

2.0x

2.5xRevenue Multiples - Nabtesco Corporation

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - Nabtesco Corporation

TEV/EBITDA Average

0x

10x

20x

30xP/E Multiples - Nabtesco Corporation

P/E Average

19

Public Basket

Lincoln Electric Holdings, Inc.

Lincoln Electric Holdings, Inc., through its subsidiaries, designs,manufactures, and sells welding, cutting, and brazing productsworldwide. It operates through three segments: AmericasWelding, International Welding, and The Harris Products Group.The company offers welding products, including arc weldingpower sources, plasma cutters, wire feeding systems, roboticwelding packages, integrated automation systems, fumeextraction equipment, consumable electrodes, fluxes andwelding accessories, and specialty welding consumables andfabrication products. Lincoln Electric Holdings, Inc. was foundedin 1895 and is headquartered in Cleveland, Ohio.

Date Key Development Headline3/31/19 Lincoln Electric Holdings, Inc. (NasdaqGS:LECO) acquired Baker

Industries, Inc.

1/31/19 Lincoln Electric Holdings, Inc. (NasdaqGS:LECO) completed the acquisition of certain brazing assets from Worthington Industries, Inc. (NYSE:WOR) for $1.1 million.

1/10/19 Lincoln Electric To Seek Acquisitions

1/1/19 Lincoln Electric Holdings, Inc. (NasdaqGS:LECO) entered into a purchase agreement to acquire certain brazing assets from Worthington Industries, Inc. (NYSE:WOR).

12/10/18 Lincoln Electric Holdings, Inc. (NasdaqGS:LECO) acquired Coldwater Machine Company, LLC/Pro Systems LLC/Related Assets.

0x

1x

2x

3x

4x

5xRevenue Multiples - Lincoln Electric Holdings,

Inc.

TEV/Revenue Average

0x

10x

20x

30xEBITDA Multiples - Lincoln Electric Holdings,

Inc.

TEV/EBITDA Average

0x

20x

40x

60x

80xP/E Multiples - Lincoln Electric Holdings, Inc.

P/E Average

20

Public Basket

OMRON Corporation

OMRON Corporation manufactures and sells automationcomponents, equipment, and systems worldwide. Thecompany’s Industrial Automation Business offersprogrammable and motion controllers, sensing and safetydevices, inspection systems, industrial robots, precision laserprocessing equipment, and control devices for manufacturingindustry. Its Electronic and Mechanical Components Businessprovides electric and electronic components; sensors; andcontrol components. OMRON Corporation was founded in 1933and is headquartered in Kyoto, Japan.

Date Key Development Headline4/15/19 Nidec Corporation (TSE:6594) entered into an agreement to

acquire Omron Automotive Electronics Co.,Ltd. from OMRON Corporation (TSE:6645).

4/15/19 Nidec Corporation (TSE:6594) agreed to acquire Omron Automotive Electronics de Mexico S de RL de CV And OMRON Componentes Automotivos Ltda. And electronics components business of OMRON VIETNAM CO., LTD., PT. OMRON MANUFACTURING OF INDONESIA, and OMRON HONG KONG LTD. from OMRON Corporation (TSE:6645).

3/25/19 Nomura Securities Co., Ltd. acquired 10.4% stake in OMRON Corporation (TSE:6645).

1/31/19 Advantech Co. Ltd. (TSEC:2395) completed the acquisition of 80% stake in OMRON Nohgata Corporation from OMRON Corporation (TSE:6645).

0.0x

0.5x

1.0x

1.5x

2.0xRevenue Multiples - OMRON Corporation

TEV/Revenue Average

0x

5x

10x

15xEBITDA Multiples - OMRON Corporation

TEV/EBITDA Average

0x

10x

20x

30xP/E Multiples - OMRON Corporation

P/E Average

21

Public Basket


Rockwell Automation, Inc. provides industrial automation andinformation solutions worldwide. It operates in two segments,Architecture & Software; and Control Products & Solutions. TheArchitecture & Software segment provides control platforms,including controllers, electronic operator interface devices,electronic input/output devices, communication and networkingproducts, and industrial computers that perform multiplecontrol disciplines and monitoring of applications, such asdiscrete, batch and continuous process, drives control, motioncontrol, and machine safety control. This segment also offersconfiguration and visualization software, which is used tooperate and supervise control platforms, process controlsoftware, and manufacturing execution systems andinformation solution software to enhance productivity and meetregulatory requirements; and other products comprisingsensors, machine safety components, and linear motion controlproducts. Rockwell Automation, Inc. was founded in 1903 and isheadquartered in Milwaukee, Wisconsin.

Date Key Development Headline2/25/19 Rockwell Automation To Seek Acquisitions

2/19/19 Rockwell Automation and Schlumberger Enters Joint Venture Agreement to Create Sensia

1/27/19 Rockwell Automation, Inc. (NYSE:ROK) acquired Emulate3d, Inc.

11/7/18 Rockwell Intends To Seek Acquisitions

4/25/18 Rockwell Automation Seeks Acquisitions

0x

1x

2x

3x

4x

5xRevenue Multiples - Rockwell Automation,

Inc.

TEV/Revenue Average

0x

10x

20x

30xEBITDA Multiples - Rockwell Automation, Inc.

TEV/EBITDA Average

0x

20x

40x

60x

80xP/E Multiples - Rockwell Automation, Inc.

P/E Average

22

Public Basket

Fanuc Corporation

Fanuc Corporation provides factory automation productsprimarily in the Americas, Europe, and Asia. It offers CNC seriesproducts, servo motors, lasers, robots, compact machiningcenters, electric injection molding machines, wire-cut electricdischarge machines, and ultra-precision machines. Thecompany was founded in 1972 and is headquartered inMinamitsuru, Japan.

Date Key Development Headline10/24/18 Fanuc Corporation (TSE:6954) cancelled the acquisition of

remaining 33.4% stake in Mold Institute Ltd. from Kuroda Precision Industries Ltd. (TSE:7726), Makino Milling Machine Co., Ltd. (TSE:6135) and other shareholders.

0x

2x

4x

6x

8x

10x

Revenue Multiples - Fanuc Corporation

TEV/Revenue Average

0x

10x

20x

30x

EBITDA Multiples - Fanuc Corporation

TEV/EBITDA Average

0x

10x

20x

30x

40x

P/E Multiples - Fanuc Corporation

P/E Average

23

Public Basket

ABB Ltd

ABB Ltd manufactures and sells electrification, industrialautomation, and robotics and motion products for customers inutilities, industry and transport, and infrastructure worldwide. ItsElectrification Products segment provides electric vehiclecharging infrastructure, solar power solutions, modularsubstation packages, distribution automation products,switchboard and panel boards, switchgears, UPS solutions,circuit breakers, measuring and sensing devices, controlproducts, wiring accessories, enclosures and cabling systems,and intelligent home and building solutions. This segmentserves building, data center, rail, wind and solar, distributionutilities, food and beverage, marine, e-mobility, and oil and gasindustries. ABB Ltd was founded in 1883 and is headquarteredin Zurich, Switzerland.

Date Key Development Headline4/1/19 ABB and Ericsson Strengthen Their Long-Standing Relationship

with the Signing of Memorandum of Understanding

1/22/19 ABB Ltd (SWX:ABBN) Will Seek Acquisitions

12/17/18 ABB Ltd, Hitachi, Ltd. - M&A Call



12/16/18 Hitachi, Ltd. (TSE:6501) signed an agreement to acquire 80.1% stake in Power Grids business of ABB Ltd (SWX:ABBN) for $6.4 billion.

11/16/18 ABB Reportedly To Seek Acquisitions

0x

1x

2x

3x

Revenue Multiples - ABB Ltd

TEV/Revenue Average

0x

5x

10x

15x

20x

EBITDA Multiples - ABB Ltd

TEV/EBITDA Average

0x

10x

20x

30x

40xP/E Multiples - ABB Ltd

P/E Average

24

Public Basket


Emerson Electric Co., a technology and engineering company,provides various solutions to industrial, commercial, andconsumer markets worldwide. The company’s AutomationSolutions segment offers products and integrated solutions,including measurement and analytical instrumentation; valves,actuators, and regulators; industrial solutions; and processcontrol systems and solutions. It serves the oil and gas, refining,chemicals and power generation, pharmaceuticals, food andbeverage, automotive, pulp and paper, metals and mining, andmunicipal water supplies markets. Emerson Electric Co. wasfounded in 1890 and is headquartered in St. Louis, Missouri.

Date Key Development Headline4/15/19 Emerson Electric Co. (NYSE:EMR) acquired Bioproduction Group

Inc.

4/3/19 Emerson Electric Co. (NYSE:EMR) acquired KnowledgeNet Software of Integration Objects.

3/12/19 Emerson and Repsol to Form Alliance on Advanced, Cloud-Based Exploration and Development Software

2/14/19 Emerson To Seek Acquisitions

1/31/19 Emerson Electric Co. (NYSE:EMR) completed the acquisition of GE Intelligent Platforms, Inc. from General Electric Company (NYSE:GE).

12/11/18 Emerson Electric Co. (NYSE:EMR) acquired Advanced Engineering Valves.

0x

1x

2x

3x

4xRevenue Multiples - Emerson Electric Co.

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - Emerson Electric Co.

TEV/EBITDA Average

0x

10x

20x

30x

40x P/E Multiples - Emerson Electric Co.

P/E Average

25

CONTACT INFO7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&Aand private capital transactions and provide market assessments and benchmarking. As a close-knit team with a long history togetherand a laser focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluatenew markets. Securities offered through 7M Securities LLC.

Leroy Davis, Partner 704.899.5962 [email protected]

Tripp Davis, Partner 704.899.5762 [email protected]

Andy Johnston, Partner 704.899.5961 [email protected]

Ben Lunka, Managing Director 704.496.2995 [email protected]

Jeff Stoecklein, Managing Director 312.796.9330 [email protected]

Mark Landry, Managing Director 561.972.0609 [email protected]

Kristina Sergueeva, Director 704.899.5149 [email protected]

Neil Churman, Director 281.742.9340 [email protected]

John Cooper, Director 704.973.3996 [email protected]

Tim Frye, Director 704.973.3994 [email protected]

Nicholas Prendergast, Financial Analyst 704.973.3995 [email protected]

Ariail Siggins, Marketing Director 704.981.2908 [email protected]

Sydney Larese, Associate 704.973.3998 [email protected]

Marty Johnson, Associate 704.973.3999 [email protected]

Rory Julyan, Associate 704.981.2520 [email protected]

Garth Martin, Associate 704.973.3997 [email protected]

Dennis Fox, Associate 704.706.9168 [email protected]

Steve Buffington, Associate 704.960.1828 [email protected]

Brynne Miller, Associate 704.960.1701 [email protected]

Emily Halstenberg, Marketing / Sales Coordinator 704.409.9912 [email protected]

Documents

Sectorwatch: Industrial Automation & Robotics