Industrials Monthly January 2015

Industrials Monthly
January 2015
Industrial Headline Transactions
Target
Acquiror
Industrial
Acquisition Synopsis
• Watts Water Technologies, Inc. (NYSE: WTS), a manufacturer of flow control products, acquired
Equipment
AERCO International from The Riverside Company for $265 million
&
• AERCO International, Inc. develops and manufactures a wide range of high-efficiency commercial
boilers and water heaters
Technology
• Siemens Aktiengesellschaft (DB:SIE), a German electrical engineering company, acquired Rolls-
Energy
Royce’s energy aero-derivative gas turbine and compressor business for $1.3 billion
Equipment
& Services
• The target, based in the UK, manufactures aero-derivative gas turbines and compressor systems
Turbine and Compressor
to customers in oil and gas and power generation sectors
Business
• Eastman Chemical Co. (NYSE:EMN), a manufacturer of chemicals, plastics and fibers, acquired
Specialty
Taminco Corporation for $2.8 billion
Materials
• Taminco Corporation produces and distributes alkylamines and alkylamine derivatives in the
United States, Belgium and internationally
• Powerflute Oyj (AIM:POWR), a Finnish manufacturer of semi-chemical fluting paper, acquired
Paper &
Corenso United Oy Ltd. for $114 million
Packaging
• Corenso United Oy Ltd., based in Finland, manufactures cores and tubes, coreboards and edge
protectors for customers worldwide
• Builders FirstSource, Inc. (NasdaqGS:BLDR), a manufacturer and supplier of structural and related
Building
building products, acquired Empire Truss Ltd.
Products
• Empire Truss Ltd. manufactures custom designed roof and floor trusses and distributes
engineered wood products
1-Year Revenue Growth
30%
8%
13.7% S&P 500 Return
20%
10%
0%
2.7%
(10%)
-9.5%
(20%)
Industrial
Equip. &
Tech.
6%
5.8%
(25.8%)
Energy
Equip. &
Services
Specialty
Materials
2.9%
0%
Paper &
Packaging
(2%)
Building
Products
(0.7%)
Industrial
Equip.
Tech. &
Tech.
2.0x
1.9x
3.0x
1.7x
1.0x
0.5x
0.0x
Energy
Equip. &
Services
Specialty
Materials
Paper &
Packaging
35%
3.0x
1.5x
Industrial
Equip. &
Tech.
Specialty
Materials
Building
Products
Gross & EBITDA Margins
LTM Gross Margin
2.8x
3.0x
Energy
Equip.
Services&
Services
Paper &
Packaging
Building
Products
30%
25%
20%
15%
23.5%
30.3%
27.4%
17.5%
13.0%
17.9%
11.6%
30%
25%
20.9%
14.2%
35%
12.5%
20%
15%
10%
10%
5%
5%
0%
0%
Industrial
Equip. &
Tech.
Energy
Equip. &
Services
Specialty
Paper &
Building
Materials Packaging Products
Note: EBITDA Margins in red
LTM EBITDA Margin
LTM Debt / EBITDA
3.5x
2.7%
2%
Leverage Multiples
2.5x
4.7%
4%
0.0%
(30%)
1-Year Revenue
Growth
1-Year Stock Return
1-Year Stock Returns
EBITDA Multiples Over Time
TEV / EBITDA
12.0x
11.0x
10.8x
10.0x
9.3x
Building Products
Industrial Equip. & Tech.
9.0x
9.3x
Paper & Packaging
8.0x
9.1x
Specialty Materials
7.0x
7.2x
Energy Equip. & Services
6.0x
5.0x
Q4 '11
Q1 '12
Q2 '12
Q3 '12
Q4 '12
Q1 '13
Q2 '13
Q3 '13
Q4 '13
Selected Industrial Equip. & Tech. Transactions
Target
Acquiror
Swisslog Holding
KUKA
AG (SWX:SLOG)
Aktiengesellschaft solutions, acquired Swisslog Holding, a Switzerland based
Q Holding Co.
Wolf-tec, Inc.
Transaction Description
KUKA, a German developer of industrial automation process
Q1 '14
Q2 '14
Q3 '14
Q4 '14
Selected Energy Equip. & Services Transactions
Target
Acquiror
Cimarron Energy,
Turnbridge
Turnbridge Capital, a private equity firm, acquired Cimarron
Transaction Description
Inc.
Capital, LLC
Energy, a designer and manufacturer of oil and gas
Hyduke Energy
Hyduke Energy, a Canadian integrated oilfield services
(DB:KU2)
provider of automation solutions, for $390 million
3i Group plc
3i Group, a UK based private equity firm, acquired Q Holding,
Thunder &
production equipment, for $100 million
(LSE:III)
a manufacturer of rubber components, for $160 million
Lightning Welding Services Inc.
company, acquired Thunder & Lightning Welding, a Canadian
Ltd.
(TSX:HYD)
designer and fabricator of oilfield equipment
Flogistix, LP
White Deer Energy White Deer, a private equity firm, acquired Flogistix, an oil
John Bean
John Bean, a provider of solutions to food processing and air
Technologies
transportation industries, acquired Wolf-tec, a manufacturer
and gas optimization company, which manufactures a line of
Corporation
of meat, poultry and seafood processors, for $54.0 million
wellhead compressors
(NYSE:JBT)
Selected Specialty Materials Transactions
Target
Acquiror
Solvay SA
CCMP Capital
(ENXTBR:SOLB),
Advisors, LLC
Transaction Description
Acquiror
CCMP, a private equity firm, acquired Solvay's Eco Services
Gault et Fremont,
UI Gestion SA
Business, a developer of technologies that sustainably
S.A.S.
Eco Services Div.
regenerate sulfuric acid, for $890 million
Farrow & Ball Ltd.
Ares Private Equity Ares Private Equity, a private equity firm, acquired Farrow &
Group
Selected Paper & Packaging Transactions
Target
Fremont, a French manufacturer of cardboard and paper
packaging products, for $20.0 million
K-Sun Corporation Seiko Epson Corp. Seiko Epson, a Japanese manufacturer of computer printers
Ball, a manufacturer and marketer of paints and wallpapers,
(TSE:6724)
and information and imaging related equipment, acquired K-
Maui Capital Ltd.
Maui Capital, a New Zealand based private equity firm,
for $433 million
Sun, a provider of identification solutions
Ferro Corp. (NYSE: H.I.G. Capital, LLC
H.I.G. Capital, a private equity firm, acquired Ferro's Poymer
Pedersen Group
FOE), Polymer
Division, a manufacturer of specialty chemicals, for $154
Ltd.
Additives Div.
million
Acquiror
Lumber
US LBM Holdings,
Specialties Ltd.
LLC
acquired Pedersen Group, a New Zealand based provider of
services to pulp mills and the forestry industry
Selected Building Products Transactions
Target
Transaction Description
UI Gestion, a French private equity firm, acquired Gault et
TM Capital’s Industrial Contacts
Transaction Description
US LBM, a distributor of building materials, acquired Lumber
Specialties, a manufacturer and distributor of structural
building components
Steel Storage
Janus
Europe Ltd.
International
Janus, a manufacturer of steel roll up sheet doors and
storage facility components, acquired Steel Storage, a UK
Group LLC
based manufacturer and installer of self storage systems
Homestyle
Acrysil Ltd.
Acrysil, an Indian manufacturer of kitchen sinks and
Products Ltd.
(BSE:524091)
appliances, acquired Homestyle Products, a UK based
manufacturer of kitchen sinks, taps and accessories
W. Gregory Robertson Paul R. Smolevitz
Chairman
Managing Director
212-809-1410
212-809-1416
Michael S. Goldman
Managing Director
212-809-1419
Jerome S. Romano
Managing Director
617-259-2206
Selected TM Capital Industrial Experience
New York
641 Lexington Avenue
30th Floor
New York, NY 10022
Tel: 212.809.1360
Boston
200 Clarendon Street
25th Floor
Boston, MA 02116
Tel: 617.259.2200
Atlanta
15 Piedmont Center NE
Suite 1010
Atlanta, GA 30305
Tel: 404.995.6230
www.tmcapital.com