www.harriswilliams.com

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 7078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

SPECIALTY DISTRIBUTION

INSERT TITLE HERE 01/20/2014

INDUSTRY UPDATE │ OCTOBER 2017

PAGE |

www.harriswilliams.com

CONTENTS

WHAT WE’RE READING

PUBLIC COMPARABLES &TRADING VALUATIONS

M&A AND PUBLIC MARKET TRENDS

NOTABLE M&A ACTIVITY

ECONOMIC UPDATE

GROUP OVERVIEW

Harris Williams & Co. is a leading advisor to the specialty distribution market. Our significant experience covers a broad range of end markets, industries, and business models. This particular report focuses on trends and metrics in the following areas:

Specialty Catalogand Direct Marketing

Branch-Based Distributors

Route-Based Distributors

Automotive and Heavy Duty Aftermarket

Building Products

Consumer

Foodservice

Industrial,

Healthcare

Technology

Electrical and Communications

CONTACTS

Bob BaltimoreManaging Directorbbaltimore@harriswilliams.com+1 (804) 915-0129

Derek LewisManaging Directordlewis@harriswilliams.com+1 (804) 915-0118

Brian LucasManaging Directorblucas@harriswilliams.com+1 (804) 932-1323

Anthony BasmajianDirectorabasmajian@harriswilliams.com

+1 (804) 887-6030

Graham GillamVice Presidentggillam@harriswilliams.com

+1 (804) 887-6074

HURRICANES HIT 3Q REVENUES BUT SHOULDN'T DERAIL 20171

WHAT WE’RE READING

1

SPECIALTY DISTRIBUTION

INDUSTRY UPDATE │ OCTOBER 2017

Natural disasters took a toll on distributor revenues in the third quarter, but the industryremains poised to close the books on its best year since 2014, according to the mostrecent MDM-Baird Distribution Survey.

Excluding acquisitions, distributors averaged 3.9 percent revenue growth in the thirdquarter, according to the survey. That was down slightly from second quarter but upsignificantly from the nearly flat performance of 3Q 2016. It also fell shy of the 4.5percent revenue growth distributors projected for the quarter.

Read more from this article here.

ISA DISTRIBUTOR INDEX CLIMBS HIGHER, MFG. INDEX DIPS IN SEPTEMBER2

The Industrial Supply Association's Distributor and Manufacturer Indexes showed mixedresults in September, with the surging Distributor Index ticking up higher and theManufacturer Index taking a modest decline.

The Distributor Index increased 1.2 percentage points in September to a reading of 72.4— its highest mark since September 2014 (76.8). That follows an August 10.1-point jump.

ISA's Manufacturer Index followed a 10.8-point August spike by falling 3.9 points inSeptember to a mark of 63.3. It was the fourth time in five months its reading was at least63.3.

Read more from this article here.

SEPTEMBER 2017 M&A ROUNDUP: CORE & MAIN OFF TO FAST M&A START1

Just two months after being sold to private equity and a month after rebranding to Core& Main LP, the company formerly known as HD Supply Waterworks made its firstacquisition with the purchase of Minnesota Pipe & Equipment. The St. Louis, MO-basedcompany said the purchase will strengthen Core & Main’s position in the Minnesotawaterworks distribution industry. It’s a fast M&A start for Core & Main, which HD Supplyagreed to sell to private equity firm Clayton, Dubilier & Rice for $2.5 billion in June.

Core & Main’s private equity ownership and immediate acquisition is one of manyrecent examples of distributors and private equity firms aligning to add scale and growrevenue.

Read more from this article here.

AMAZON BUSINESS UPS ANTE WITH TWO-DAY PRIME1`

On a day when both the NYSE and the NASDAQ composite indexes remained nearlyflat, Grainger’s share price dropped 5.3%, Fastenal stock lost 3.6% of its value and otherbroad-line distributors suffered significant value erosion as well. The likely culprit: AmazonBusiness announced it is launching Business Prime Shipping, a paid annual membershipprogram for registered multi-user business customers in the United States and Germany.

While the move impacts traditional B2C retailers growing their B2B markets – from Costcoto Walmart – those companies did not suffer similar consequences. Walmart was downless than 1% while Costco moved up slightly. It appears that the equity markets believeAmazon Business is primarily a threat to distributors.

Read more from this article here.

PAGE |

PUBLIC COMPARABLES & TRADING VALUATIONS

2

SPECIALTY DISTRIBUTION PUBLIC COMPARABLES3

SPECIALTY DISTRIBUTION

INDUSTRY UPDATE │ OCTOBER 2017

Key Trading StatsAs of October 31, 2017($ in millions, except per share amounts)

Automotive & Heavy Duty Aftermarket

O'Reilly Automotive, Inc. 22.1% 50.2% $22,096 $213.79 (0.7%) (18.9%) 74.6% 11.3x 11.3x 10.7x 7.9%

AutoZone, Inc. 22.1% 52.7% 22,019 590.15 (0.8%) (19.7%) 72.5% 9.2x 9.1x 8.7x 4.7%

Genuine Parts Company 7.4% 28.9% 13,908 88.04 (8.0%) (2.0%) 87.3% 11.8x 11.2x 9.9x 1.8%

LKQ Corporation 11.6% 37.2% 14,223 36.52 1.5% 13.7% 96.9% 13.6x 12.8x 11.5x 13.9%

Dorman Products, Inc. 22.2% 39.8% 2,185 67.88 (5.2%) 8.8% 76.7% 10.9x 10.9x 9.7x 6.6%

Uni-Select Inc. 8.9% 14.4% 1,092 21.66 0.5% (4.6%) 79.2% 9.9x 8.7x 7.1x (11.2%)

Median 16.8% 38.5% (0.8%) (3.3%) 77.9% 11.1x 11.1x 9.8x 5.7%

Mean 15.7% 37.2% (2.1%) (3.8%) 81.2% 11.1x 10.7x 9.6x 4.0%

Building & Construction Products

CRH Plc 11.7% 31.5% $39,149 $37.27 (2.1%) 14.9% 91.1% 11.4x 10.0x 9.3x 6.4%

Ferguson PLC 7.9% 28.5% 18,304 69.47 5.8% 35.1% 98.3% 12.0x 11.2x 10.1x (1.4%)

HD Supply Holdings, Inc. 11.9% 32.8% 10,998 35.25 (2.3%) 7.6% 78.8% 14.2x 15.1x 14.2x (5.6%)

Watsco, Inc. 8.7% 24.4% 5,997 165.23 2.6% 21.5% 98.7% 16.8x 15.6x 14.0x 3.3%

Beacon Roofing Supply, Inc. 9.2% 22.9% 4,509 54.26 5.9% 30.9% 96.3% 11.5x 12.8x 11.0x 22.3%

Builders FirstSource, Inc. 5.5% 24.6% 3,948 17.79 (1.1%) 85.9% 96.5% 10.8x 8.9x 7.8x 61.7%

Boise Cascade Co. 4.6% 11.7% 1,647 35.30 1.1% 87.7% 97.2% 8.4x 7.8x 6.7x 6.7%

Median 8.7% 24.6% 1.1% 30.9% 96.5% 11.5x 11.2x 10.1x 6.4%

Mean 8.5% 25.2% 1.4% 40.5% 93.9% 12.2x 11.6x 10.4x 13.3%

Consumer & Food Service

Sysco Corporation 5.6% 17.7% $37,408 $54.69 1.4% 14.0% 95.8% 12.1x 11.4x 10.5x 5.4%

Bunzl plc 7.3% 12.5% 12,035 30.68 0.9% 16.1% 95.8% 16.0x 14.8x 14.0x 1.3%

US Foods Holding Corp. 3.8% 17.5% 9,860 26.99 1.1% 18.4% 87.8% 11.1x 9.5x 8.8x NA

Performance Food Group Company 2.0% 12.1% 4,175 28.00 (0.9%) 17.2% 93.6% 12.3x 10.2x 9.0x 86.1%

United Natural Foods, Inc. 3.4% 15.4% 2,304 38.09 (8.4%) (9.8%) 76.6% 7.2x 7.0x 6.5x 8.9%

Core-Mark Holding Company, Inc. 0.8% 5.1% 1,730 33.18 3.2% (5.6%) 75.2% 14.9x 11.4x 9.8x 14.2%

SpartanNash Company 2.9% 14.4% 1,544 24.38 (7.5%) (11.8%) 60.4% 6.8x 6.2x 5.9x 5.8%

Essendant Inc. 1.6% 13.7% 790 9.80 (25.6%) (35.3%) 43.5% 9.6x NA NA (0.8%)

Median 3.2% 14.1% (0.0%) 4.2% 82.2% 11.6x 10.2x 7.6x 5.8%

Mean 3.4% 13.6% (4.5%) 0.4% 78.6% 11.2x 10.1x 8.9x 17.3%

Industrial, MRO & Safety

Air Liquide SA 24.9% 34.7% $72,278 $126.74 4.5% 36.4% 99.3% 13.1x 11.9x 11.2x 2.7%

Fastenal Company 23.2% 49.7% 13,762 46.79 2.7% 20.7% 88.7% 14.0x 13.7x 12.6x 5.5%

W.W. Grainger, Inc. 13.4% 38.2% 13,641 199.39 10.9% (4.3%) 75.9% 9.9x 10.0x 9.8x 1.4%

MSC Industrial Direct Co., Inc. Class A 15.3% 44.5% 5,046 79.50 5.2% 11.1% 75.2% 11.4x 11.2x 9.6x 1.2%

Applied Industrial Technologies, Inc. 8.3% 27.4% 2,707 63.40 (3.6%) 26.2% 90.5% 12.2x 12.0x 10.5x 1.2%

DXP Enterprises, Inc. 6.3% 27.4% 789 31.26 (0.7%) 44.1% 74.4% 13.2x 11.9x 9.7x (13.0%)

Median 14.3% 36.4% 3.6% 23.4% 82.3% 12.7x 11.9x 9.6x 1.3%

Mean 15.2% 37.0% 3.2% 22.4% 84.0% 12.3x 11.8x 10.3x (0.2%)

Healthcare

McKesson Corporation 2.0% 5.2% $35,754 $135.02 (12.1%) 8.8% 79.8% 8.8x 8.3x 8.1x 7.8%

Cardinal Health, Inc. 2.5% 4.7% 23,398 61.70 (7.8%) (8.6%) 72.7% 7.3x 7.2x 6.8x 12.8%

Henry Schein, Inc. 8.4% 27.7% 14,443 77.70 (5.2%) 4.1% 83.1% 14.3x 13.7x 12.8x 5.5%

Patterson Companies, Inc. 8.7% 24.3% 4,494 36.35 (6.0%) (15.0%) 73.8% 9.2x 10.9x 10.3x 9.0%

Owens & Minor, Inc. 2.5% 11.8% 1,988 24.49 (16.1%) (24.3%) 66.2% 8.5x 8.0x 6.1x 0.4%

Median 2.5% 11.8% (7.8%) (8.6%) 73.8% 8.8x 8.3x 9.2x 7.8%

Mean 4.8% 14.7% (9.4%) (7.0%) 75.1% 9.6x 9.6x 10.2x 7.1%

Stock Performance Revenue

LTM Margins Current 1-Month 1-Year % of TEV/EBITDA Growth

EBITDA Gross TEV Price Change Change LTM High LTM 2017E 2018E 3-Yr. CAGR

PAGE |

PUBLIC COMPARABLES & TRADING VALUATIONS

3

TRAILING TWELVE MONTHS STOCK PRICE PERFORMANCE3

SPECIALTY DISTRIBUTION

INDUSTRY UPDATE │ OCTOBER 2017

Stock Prices

As of October 31, 2017

Consumer & Food Service

Building and Construction

Industrial, MRO, & Safety

S&P 500

Electrical & Communications

Healthcare

Technology

Automotive & Heavy Duty Aftermarket

SPECIALTY DISTRIBUTION PUBLIC COMPARABLES3

Key Trading StatsAs of October 31, 2017($ in millions, except per share amounts)

-30%

-20%

-10%

0%

10%

20%

30%

Stock Performance Revenue

LTM Margins Current 1-Month 1-Year % of TEV/EBITDA Growth

EBITDA Gross TEV Price Change Change LTM High LTM 2017E 2018E 3-Yr. CAGR

Technology

Arrow Electronics, Inc. 4.5% 12.3% $10,169 $83.21 3.5% 36.5% 98.4% 9.2x 8.6x 8.1x 3.0%

SYNNEX Corporation 4.1% 9.0% 6,128 134.01 5.9% 31.5% 99.3% 9.7x 11.5x 8.2x 6.1%

Avnet, Inc. 4.2% 13.7% 5,769 39.70 1.0% (4.5%) 77.1% 7.7x 7.2x 6.6x (13.8%)

Tech Data Corporation 1.6% 5.4% 4,746 91.46 2.9% 19.4% 82.3% 9.5x 7.0x 6.0x 2.5%

ScanSource, Inc. 3.4% 10.1% 1,137 42.95 (1.6%) 22.5% 94.7% 9.5x 8.8x 7.9x 6.3%

Median 4.1% 10.1% 2.9% 22.5% 94.7% 9.5x 8.6x 6.1x 3.0%

Mean 3.6% 10.1% 2.4% 21.1% 90.4% 9.1x 8.6x 6.1x 0.8%

Electrical & Communications

Rexel SA 5.1% 23.5% $8,187 $17.74 2.5% 20.9% 94.8% 10.8x 10.5x 9.7x (5.2%)

WESCO International, Inc. 5.2% 18.5% 4,342 62.40 7.1% 13.1% 81.9% 11.3x 11.2x 10.3x (1.3%)

Anixter International Inc. 4.8% 19.5% 3,519 68.40 (19.5%) 4.1% 77.2% 9.5x 8.7x 7.9x 7.0%

Median 5.1% 19.5% 2.5% 13.1% 81.9% 10.8x 10.5x 8.3x (1.3%)

Mean 5.0% 20.5% (3.3%) 12.7% 84.7% 10.5x 10.1x 8.1x 0.2%

PAGE |

A total of 661 PE deals worth $138bn were announced globally in Q3,representing a 42% hike in value compared to Q3 2016

In North America, there were 1,237 M&A deals valued at $295.5bnannounced in Q3, including four of the top 10 deals of the quarter

Global average deal value reached $356m, 5.8% higher than the YTD2016 figure of $336m and the second-highest figure since 2007

There have been 26 megadeals (> $10bn) so far in 2017, on pace withthe same time period in 2016

Chinese investment into Europe and the U.S. dropped 61.9% comparedwith YTD 2016, falling from $119.9bn to $45.7bn

M&A AND PUBLIC MARKET TRENDS

4

TEV / EBITDA MULTIPLES FOR PUBLIC COMPARABLES3

RECENT M&A AND PRIVATE EQUITY TRENDS4

SPECIALTY DISTRIBUTION

INDUSTRY UPDATE │ OCTOBER 2017

Distribution Trends

LTM EBITDA as of October 31, 2017

M&A Trends

NET DEBT / EBITDA3 EBITDA MARGINS3

Q3 GLOBAL PRIVATE EQUITY

UPDATE

11.0x10.4x

11.5x 11.6x

10.2x9.0x

10.1x10.7x 10.4x

11.5x 11.7x

9.6x8.8x

9.7x

11.4x10.8x

11.5x 11.9x

9.7x8.8x

10.7x11.1x 10.8x11.5x 11.9x

9.0x 8.8x

10.9x

0x

5x

10x

15x

20x

Automotive & Heavy Duty

Aftermarket

Building & Construction

Products

Consumer & Food Service Industrial, MRO & Safety Healthcare Technology Electrical &

Communications

TEV

/ E

BIT

DA

Jul-17 Aug-17 Sep-17 Oct-17

1.6x

2.2x

2.6x

1.3x 1.4x1.3x

3.4x

0x

1x

2x

3x

4x

Ne

t D

eb

t /

EB

ITD

A

15.7%

8.0%

3.4%

15.2%

4.8%3.6%

5.0%

0%

5%

10%

15%

20%

EB

ITD

A M

arg

in

PAGE |

M&A TRANSACTIONS

5

SPECIALTY DISTRIBUTION

INDUSTRY UPDATE │ OCTOBER 2017

Announced M&A Transactions3

10/23/2017 Chagrin Safety Supply, Inc. Supplies personal protection apparels Innovest Global, Inc.

10/19/2017 Andalou Naturals, Inc. Develops and distributes hair, and skin care products BWX Ltd.

10/19/2017 Monroe Motor Products, Inc. Distributes automotive parts and accessories Genuine Parts Co.

10/19/2017 A.J. Silberman & Co., Inc. Distributes general line of groceries and other related products Eby-Brown Co. LLC

10/18/2017 Associated Grocers of Florida, Inc. Distributes groceries and other food products SUPERVALU, Inc.

10/18/2017 American Silk Mills LLC Distributes text iles Sut lej Text iles & Industries Ltd.

10/18/2017 First Choice Seafood, Inc. Distributes fish and seafood products Enson Group, Inc.

10/18/2017 Ross Imaging LLC /Wisconsin Offices Distributes office machines James Imaging Systems, Inc.

10/17/2017 HFM FoodService, Inc. Distributes food products in Hawaii Sysco Corp.

10/9/2017 Farmers Pride, Inc. Sells and distributes poultry products Jamaica Broilers Group Ltd.

10/4/2017 T & T Marketing, Inc. Distributes polymer resins and compounds M. Holland Co.

10/3/2017 The Bolt Supply House Ltd. Distributes fasteners, nuts and bolts Lawson Products, Inc.

10/2/2017 Central Paper Products Co., Inc. Distributes wrapping and other coarse paper products Imperial Bag & Paper Co. LLC

10/2/2017 Katun Corp. Distributes OEM compatible imaging productsGeneral Plast ic Industrial Co.,

Ltd.(Seller)

10/2/2017 Power Sources/Distribut ion & Supply Business Distributes power conversion products Sager Electronics, Inc.

9/25/2017 General Electric/Industrial Solut ions Division Manufactures and distributes electrical equipment ABB Ltd.

9/25/2017 Alliance Automotive Group SAS Distributes spare parts for automotive industry Genuine Parts Co. (Seller)

9/20/2017 Performance Nutrit ion Center LLC Distributes drugs and drug-related products Agritek Holdings, Inc.

9/19/2017 National Industrial Lumber Co. Provides industrial lumber products and solut ions U.S. Lumber Group LLC (Seller)

9/18/2017 Dash Distributors, Inc. Distributes automotive products Uni-Sélect, Inc.

9/14/2017 Satellite Vending Co Provides vending, micro-market and office coffee services Continental Cafe, Inc.

9/8/2017 Vantage Medical Supplies, Inc Distributes medical and surgical equipment Dealmed Medical Supplies LLC

9/7/2017 C.H. Spencer & Co. Distributes industrial pumps, compressors and related products Atlas Copco AB

9/7/2017 Medcart Pharmacy Offers pharmacy products and services PharmScript LLC

9/6/2017 Newgist ics, Inc. Provides e-commerce services to retailers Pitney Bowes, Inc. (Seller)

9/27/2017 Wizner Corporation Distributes fasteners and consumable maintenance supplies ShoreView Industries (Buyer)

9/5/2017 Medical Imaging Systems, Inc Distributes medical equipment Alpha Imaging, Inc.

8/31/2017 Advanced Auto Service & Tire Centers, Inc. Distributes t ires and provides repair servicesThe Pep Boys-Manny Moe &

Jack

8/30/2017 Colton Truck Supply Supplies t ruck parts, accessories, tools and shop equipment FleetPride, Inc.

8/29/2017 Southern States Cooperative, Inc. /Ag. Retail Provides farm supplies Agrium, Inc.

8/28/2017 Challenger Component Services, Inc. Wholesale and distributes motor vehicle accessories, tools, and equipment Bolts & Nuts Corp.

8/25/2017 Milliken Millwork, Inc. Manufactures and distributes doors and related products JELD-WEN Holding, Inc.

8/24/2017 Allied Building Products Corp. Distributes building products Beacon Roofing Supply, Inc.

8/9/2017 Airgas Refrigerants, Inc. Distributes industrial and medical equipment and specialty gases Hudson Holdings, Inc.

8/4/2017 L.V. Lomas Ltd. Distributes chemical products IMCD NV

8/3/2017 Brenner Medical GmbH Sells products related to obstetrics and gynecology Clinical Innovations LLC

8/3/2017 Midshire Business Systems Ltd. Engages in the wholesale distribut ion of office machines and equipmentSharp Electronics (Europe)

GmbH

8/1/2017 Omni Industrial Tire Distributes industrial t ires Camso, Inc.

7/31/2017 Magic Mobile Homes, Inc. Wholesales auto parts and repairing services Style Crest, Inc.

7/28/2017 SEI/Aaron's, Inc. Retails consumer electronics, computers, furniture, and other goods Aaron's, Inc.

Private Equity

Announced Target Description Acquirer Involvement

PAGE |

32

38

44

50

56

62

ECONOMIC UPDATE

6

SPECIALTY DISTRIBUTION

INDUSTRY UPDATE │ OCTOBER 2017

A Snapshot of Key Economic Indicators

As of October 31, 2017

PMI INDEX5 ISM NEW ORDERS INDEX5

PRODUCTION INDEX5 U.S. MANUFACTURING CAPACITY UTILIZATION6

MANUFACTURING INVENTORIES & BACKLOG5 DURABLE GOODS NEW ORDERS5

Note: A PMI Index figure greater than 50 indicates expansion.

Note: A Production Index figure greater than 50 indicates expansion.

Note: A Manufacturing Inventory Index figure greater than 50 indicates expansion; A Backlog Index figure greater than 50 indicates expansion.

Note: An ISM Index figure greater than 50 indicates expansion.

50%

60%

70%

80%

90%

100%

25

30

35

40

45

50

55

60

65

70

75

25

30

35

40

45

50

55

60

65

70

75

35

40

45

50

55

60

65

Sept-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17

Inventories Backlog of Orders

$100

$150

$200

$250

$300

$350

($ in

bill

ion

s)

Energy, Power& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

PAGE |

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

NETWORK OFFICES

BostonOne International PlaceSuite 2620Boston, Massachusetts 02110Phone: +1 (617) 482-7501

Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400

Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359-2700

Richmond (Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072

San Francisco575 Market Street31st FloorSan Francisco, California 94105Phone: +1 (415) 288-4260

Washington, D.C. 800 17th St. NW2nd FloorWashington, D.C. 20006Phone: +1 202-207-2300

FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00

London63 Brook StreetLondon W1K 4HS, EnglandPhone: +44 (0) 20 7518 8900

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai

Specialty Distribution

Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries.

7

OUR FIRM

SPECIALTY DISTRIBUTION

INDUSTRY UPDATE │ OCTOBER 2017

PAGE |

www.harriswilliams.com

HARRIS WILLIAMS & CO.

8

SPECIALTY DISTRIBUTION

INDUSTRY UPDATE │ OCTOBER 2017

DISCLOSURES

SOURCES

Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 7078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Copyright© 2017 Harris Williams & Co., all rights reserved.

1. Modern Distribution Management

2. Industrial Distribution

3. FactSet

4. Mergermarket/Acuris

5. United States Census

6. U.S. Federal Reserve