business services monthly september...

0.2%

2.0%

6.4% 5.6%

6.6%

—

2%

4%

6%

8%

Facilities Industrial Distribution Logistics BPO

1-Ye

ar R

even

ue G

row

th

LTM Revenue Growth LTM Gross & EBITDA Margins

Enterprise Value / LTM EBITDAEnterprise Value / LTM Revenue

Target Acquiror Acquisition Synopsis

Faci

litie

s •

••

Service Logic, a provider of energy and heating services, acquired Modern Heating and Air Conditioning, a Minnesota-based mechanical contracting services providerThe acquisition enhances Service Logic's capabilities in maintenance, repair and replacementSterling Investment Partners purchased Service Logic from Audax Group and The Jordan Company in 2012

Indu

stri

al •

•

•

WSP Global, one of the world's largest engineering and professional service platforms, acquired MMM Group, a sizable Canadian engineering consulting company, for $320m (8.9x EBITDA)MMM specializes in transportation, infrastructure, environmental and building services; the acquisition will add 2,000 consultants to WSP and expand its presence in the eastern CanadaWSP now has a global workforce of 34,000, which management expects to grow to 45,000 by 2020

Dis

trib

utio

n •

•

The Riverside Company has acquired Arrowhead Electrical Products, a distributor of rotating electrical parts and components, from Pfingsten PartnersArrowhead has completed 8 acquisitions since 2011 to expand its product offering and geographic reach, a trend that is expected to continue with new capital support from Riverside

Logi

stic

s

•

•

•

Geodis, the giant French logistics and supply chain service provider, acquired Ozburn-Hessey Logistics, a leading US-based 3PL provider in a deal estimated at $800m (approximately 10x earnings)Previously owned by private equity firm Welsh, Carson, Anderson & Stowe, OHL generates approximately $1.2 billion in annual sales and employs 8,000 peopleThis sizable cross-border transaction will give Geodis a large logistics footprint in the US, including more than 120 strategically located distribution centers

BPO

•

•

Accenture plc, one of the world's largest providers of business process outsourcing providers, acquired SBC, the management consulting unit of Schlumberger, an energy focused IT and information solutions platformThe acquisition will significantly bolster Accenture's presence in the upstream oil and gas industry, where outsourced services and business consulting are in high demand given fundamental market transformations driven by oil price volatility and increased regulation

Tab - 1. Headline Transactions

Business Services Headline Transactions

19.2%

14.2%

28.0%

22.2%

33.7%

7.4% 6.7% 8.4%

14.2% 14.2%

0%

5%

10%

15%

20%

25%

30%

35%

—

5%

10%

15%

20%

25%

30%

35%

40%


LTM EBITD

A M

arginLTM

Gro

ss M

argi

n

0.8x

0.4x

1.0x 1.0x

1.4x

0.0

0.2x

0.4x

0.6x

0.8x

1.0x

1.2x

1.4x

1.6x


TEV

/ Rev

enue

11.1x

8.3x

11.3x

9.1x 9.9x

0.0

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x


TEV

/ EBI

TDA

Business Services MonthlySeptember 2015

TM Capital’s Business Services Contacts

James S. Grien Managing Director

[email protected] 404-995-6235

Jarrad S. Zalkin Managing Director


Andrew O. Redmond Vice President


Facilities Services Transactions Industrial Services Transactions

Distribution Transactions Logistics Transactions

BPO TransactionsTarget Acquiror Target Description

Elysium Digital, LLC Stroz Friedberg, LLC Provides expert testimony,intellectual property litigationconsulting, eDiscovery and otherlegal services

PrimaGraphics, Inc. Independent Printing Co., Inc.

Provides commercial printingservices to the healthcare, retailand financial institutions markets

National Administration Company, Inc.

Arthur J Gallagher & Co. Offers outsourced legal consultingand maintenance services toclients throughout the UnitedStates

4. Transactions (for PDF)

Target Acquiror Target Description

Green Resource, LLC

John Deere Landscapes (d.b.a. SiteOne Landscape Supply)

Operates as a lawn productsdistributor throughout the UnitedStates

Magneto Power, LLC

Power Distributors, LLC Distributes outdoor powerequipment and replacement partsand provides sales support,customer service and more

Lake Erie Abrasive & Tool, Inc.

Motion Industries, Inc. Distributes abrasive products andmachinery to the industrialmarketplace



Andex, Co. Rentokil Initial plc Offers residential and commercialpest control services throughoutthe United States

Fay, Spofford & Thorndike, Inc.

Stantec Inc. Provides civil engineering,planning and environmentalconsulting services for themunicipal and commercial

Premier Store Fixtures, Inc.

Tailwind Capital Group, LLC

Designs, engineers, manufacturesand installs retail store fixturesand displays



Empire Refractory Services of Ohio, L.L.C.

Brand Energy & Infrastructure Services, Inc.

Designs and installs refractory andindustrial fireproofing systems

Robert Bowden, Inc.

Building Materials Holding Corporation

Manufactures, assembles, sells,installs and services variousbuilding materials for constructionprofessionals and homebuilders

Leonard Buildings and Truck Accessories

Copeley Capital Management

Manufactures, retails, anddistributes storage buildings,trailers and aftermarketaccessories



SPT Inc. Teekay Tankers Ltd. Provides ship to ship cargotransfer services in the UnitedStates and internationally

AirNet Systems, Inc. Kalitta Charters, LLC Provides express cargo and parcelshipping services as well as aircargo transportation, scheduledpackage delivery and more

Liberty International Inc.

Janel Corporation Offers global transportationservices as well as 3PL, 4PL andtotal logistics managementservices


EBITDA Multiples Over Time

11.1x

8.3x

11.3x

9.1x

9.9x

5.0x6.0x7.0x8.0x9.0x

10.0x11.0x12.0x13.0x14.0x

Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 15 Aug '15

TEV

/ EBI

TDA

Facilities

Industrial

Distribution

Logistics

BPO

www.tmcapital.com/business-services

New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360

Boston201 Washington Street32nd FloorBoston, MA 02108Tel: 617.259.2200

Atlanta3575 Piedmont Road NESuite 1010Atlanta, GA 30305 Tel: 404.995.6230

business services monthly september...

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