Capital IQ (as of December 31, 2012, with the

First Quarter 2013
AutomotiveIQ
Summary of Automotive M&A and Capital Markets Activity
Recent Deal Activity — Q1 2013
January 4, 2013 – Fenton, Missouri-based AMS Automotive LLC acquired Cincinnati, Ohio-based Inwood Automotive Products Co. Inwood Automotive manufactures and supplies clutch components and
gas-charged lift supports to automotive aftermarket clients in North
America. The founder of Inwood Automotive will be joining AMS Automotive following the acquisition. The financial terms of the transaction
were not disclosed.
January 4, 2013 – Hickory Springs Manufacturing Co., Inc., based in
Hickory, North Carolina, acquired New Washington, Ohio-based C.E.
White Co. from private equity firm Austin Capital Corporation. C.E.
White manufactures quality seating products for the commercial/transit
and school bus markets. The financial terms of the transaction were not
disclosed.
January 7, 2013 – Two executives of Rochester Hills, Michigan-based
Coupled Products, LLC acquired the company, now known as TJD
Industries, LLC, from private holding group SG Industries Inc. TJD
Industries manufactures fluid routing products for the automotive and
off-highway markets. Coupled Products was formerly known as Dana
Corporation’s Fluid Routing Products Group prior to its purchase by SG
Industries in 2007. The financial terms of the transaction were not disclosed.
January 15, 2013 – Carrollton, Texas-based Universal Power Group Inc.
(AMEX: UPG) acquired Toledo, Ohio-based Kinetik from OD Distributor, LLC. Kinetik is an industry leader in power sources for high-end car
audio applications. Shannon Harmon, the founder of Kinetik, has joined
Universal Power Group as Director of Kinetik Brands. UPG management
cited cross market and product expansion as the key drivers for the acquisition. The financial terms of the transaction were not disclosed.
January 24, 2013 – Private equity firm Capital Partners, Inc. simultaneously acquired Louisville, Kentucky-based Derby Fabricating, LLC and
Cadiz, Kentucky-based FabSol, LLC. Derby Fabricating is a manufacturer of foam and non-metallic sealing components for air, water and
noise abatement for the automotive industry. FabSol, a provider of rubber gaskets and automotive seals, will operate as a division of Derby
Fabricating. The financial terms of the transaction were not disclosed.
January 28, 2013 – Private equity firm Audax Group acquired Dyersburg,
Tennessee-based Heckethorn Products (dba Rough Country Suspension Systems). Rough Country provides suspension systems for the
off-road SUV and truck market. Rough Country’s systems raise the ride
height of vehicles to enable steeper approach, higher ground clearance
and larger wheels and tires. Audax management plans to develop new
products and analyze strategic add-on acquisitions. The financial terms
of the transaction were not disclosed.
February 11, 2013 – Milwaukee, Wisconsin-based Rexnord Corporation (NYSE: RXN) announced that it has acquired Taylors, South
Carolina-based Cline Acquisition Corp. from BB&T Capital Partners,
L.L.C. Cline manufactures and supplies aftermarket power transmission solutions. Cline specializes in driveshafts, clutches and brakes
that are used in production machinery. The announced transaction
value is $19.7 million.
February 13, 2013 – DYK Automotive, LLC, based in Memphis, Tennessee, acquired the assets of Philadelphia, Michigan-based Robert
Elgart & Son Inc. Robert Elgart is a wholesale distributor of automotive
appearance and accessory items. Roger Elgart will join the DYK family
of companies, creating one of the largest national distribution networks
of automotive retail aftermarket products. With a Wilmington, Delaware
manufacturing plant near completion, DYK management feels the Roger
Elgart transaction strengthens the Company’s presence in the mid-Atlantic and northeast regions of the United States. The financial terms of
the transaction were not disclosed.
February 22, 2013 – Private equity firm Trive Capital acquired Lexington,
Michigan-based Huron, Inc. from private equity firms Beringea LLC,
Credit Suisse Customized Fund Investment Group and SunTx Capital Partners. Huron is a leading supplier of value-added tubular assemblies and precision machined products for the automotive industry. The
acquisition marks the third platform investment Trive Capital has made
since launching the fund eight months ago. The financial terms of the
transaction were not disclosed.
February 28, 2013 – Canton, Ohio-based Timken Co. (NYSE: TKR)
reached an agreement to purchase substantially all of the equipment
utilized in a reconditioned wheelset roller bearing operation in Elizabethtown, Kentucky from Lake Oswego, Oregon-based The Greenbrier
Companies, Inc. (NYSE: GBX). The Elizabethtown operation manufactures and supplies balls and roller bearings for the railway and automotive industries. Greenbrier will enter into a long-term supply agreement
with Timken for reconditioned and new bearings. The financial terms of
the transaction were not disclosed.
March 11, 2013 – Buford, Georgia-based Lund International Holdings,
Inc., a portfolio company of private equity firm Highlander Partners,
L.P., acquired Allen, Texas-based Empower Group, Inc. (dba Prestige Fender Flares). Prestige Fender Flares is a leading designer and
producer of premium quality fender flares for light trucks and SUVs
throughout the United States. Prestige co-founders will be joining Lund
in a management capacity focusing on new product development. Lund
management cited expansion in the exterior aftermarket for automotive
accessories as the key driver for the acquisition. The financial terms of
the transaction were not disclosed.
March 25, 2013 – Private equity firm Torque Capital Group LLC acquired McHenry, Illinois-based Brake Parts Inc. Brake Parts manufactures and supplies brake product offerings including brake pads, shoes,
rotors, drums, calipers, hydraulic parts and wheel hubs to the transportation industry. Torque management cited the opportunity to leverage the
Raybestos brand of brake products to drive international sales growth
as the key driver in the acquisition. The financial terms of the transaction
were not disclosed.
March 29, 2013 – India-based TVS Logistics Investment USA acquired
St. Peters, Missouri-based Wainwright Industries, Inc. Wainwright provides metal stamping, machining and logistics services to a variety of
industries including automotive, aerospace and lawn and garden equipment. The financial terms of the transaction were not disclosed.
Source: Capital IQ and Amherst Partners
A m her s t P a r t ner s .com
AutomotiveIQ
U.S. Public Supplier Trading Multiples
($ in millions)
Company
American Axle & Manufacturing
BorgWarner Inc.
Cooper Tire & Rubber Co.
Dana Holding Corporation
Federal-Mogul Corp.
Gentex Corp.
Gentherm Incorporated
Goodyear Tire & Rubber Co.
Harman International Industries
Johnson Controls Inc.
Lear Corp.
Meritor, Inc.
Modine Manufacturing Co.
Shiloh Industries Inc.
Standard Motor Products Inc.
Stoneridge Inc.
Superior Industries International
Tenneco Inc.
Tesla Motors, Inc.
Tower International, Inc.
TRW Automotive Holdings Corp.
Exchange/
Ticker
NYSE:AXL
NYSE:BWA
NYSE:CTB
NYSE:DAN
NasdaqGS:FDML
NasdaqGS:GNTX
NasdaqGS:THRM
NasdaqGS:GT
NYSE:HAR
NYSE:JCI
NYSE:LEA
NYSE:MTOR
NYSE:MOD
NasdaqGM:SHLO
NYSE:SMP
NYSE:SRI
NYSE:SUP
NYSE:TEN
NasdaqGS:TSLA
NYSE:TOWR
NYSE:TRW
Median(2)
Mean
03/31/13
Stock Price
Q1 Price
Growth
Market
Cap.
Net
Debt
Total
EV (1)
Total
Assets
LTM
Revenue
EBITDA
Gross
Margin
EBITDA
Margin
Net Debt/
EBITDA
Enterprise Value/LTM
Revenue
EBITDA
$
13.65
77.34
25.66
17.83
6.03
20.01
16.38
12.61
44.63
35.07
54.87
4.73
9.10
10.77
27.72
7.63
18.68
39.31
37.89
14.00
55.00
21.9%
8.0%
1.2%
14.2%
(24.8%)
6.2%
23.2%
(8.7%)
(0.0%)
14.3%
17.1%
0.0%
11.9%
4.6%
24.8%
49.0%
(8.4%)
12.0%
11.9%
73.9%
2.6%
$
838.2
8,382.2
1,595.7
2,311.8
793.2
2,690.9
395.0
3,382.9
3,028.0
20,975.9
4,538.7
456.6
383.7
174.1
507.0
142.9
555.9
2,114.3
3,853.7
163.0
6,550.2
$
1,391.7
351.5
19.5
(215.0)
2,370.0
(450.5)
(1.2)
2,805.0
(307.9)
6,111.0
(775.9)
916.0
131.8
21.4
27.6
156.8
(207.3)
957.0
264.8
383.0
240.0
$
2,209.1
8,924.2
1,850.9
3,100.8
3,198.2
2,288.3
479.2
8,502.9
2,728.3
27,176.9
4,030.1
1,300.6
519.0
195.5
556.6
373.9
336.0
3,307.3
4,242.5
769.7
7,235.2
$
2,866.0
6,400.8
2,801.2
5,144.0
6,927.0
1,265.7
439.2
16,973.0
3,104.8
31,232.0
8,194.1
2,341.0
799.6
249.1
576.6
592.7
599.6
3,608.0
1,114.2
1,238.1
10,857.0
$
2,930.9
7,183.2
4,200.8
7,224.0
6,664.0
1,099.6
555.0
20,992.0
4,240.3
41,960.0
14,567.0
4,150.0
1,405.2
586.1
948.9
938.5
821.5
7,363.0
413.3
2,084.9
16,444.0
$
348.0
1,125.9
525.9
753.0
451.0
289.6
66.7
1,819.0
405.0
2,586.0
951.4
238.0
98.6
42.0
88.6
64.8
58.9
639.0
(372.9)
167.9
1,585.0
13.6%
20.5%
14.0%
13.1%
14.8%
33.9%
25.5%
17.5%
26.9%
14.8%
8.4%
11.1%
15.5%
8.7%
26.9%
22.9%
8.0%
16.3%
9.6%
10.5%
11.0%
11.9%
15.7%
12.5%
10.4%
6.8%
26.3%
12.0%
8.7%
9.6%
6.2%
6.5%
5.7%
7.0%
7.2%
9.3%
6.9%
7.2%
8.7%
N/M
8.1%
9.6%
4.00x
0.31x
0.04x
-0.29x
5.25x
-1.56x
-0.02x
1.54x
-0.76x
2.36x
-0.82x
3.85x
1.34x
0.51x
0.31x
2.42x
-3.52x
1.50x
N/M
2.28x
0.15x
0.75x
1.24x
0.44x
0.43x
0.48x
2.08x
0.86x
0.41x
0.64x
0.65x
0.28x
0.31x
0.37x
0.33x
0.59x
0.40x
0.41x
0.45x
N/M
0.37x
0.44x
6.35x
7.93x
3.52x
4.12x
7.09x
7.90x
7.19x
4.67x
6.74x
10.51x
4.24x
5.46x
5.26x
4.65x
6.28x
5.77x
5.71x
5.18x
N/M
4.58x
4.56x
$
$
18.68
26.14
11.9%
12.1%
$
$
1,595.7
3,039.7
$
$
156.8
675.7
$
$
2,288.3
3,967.9
$
$
2,571.1
4,823.3
$
$
3,540.5
6,516.4
$
$
318.8
517.3
14.8%
16.4%
8.7%
9.8%
0.41x
0.95x
.44x
.60x
5.59x
5.89x
Source: Capital IQ (as of December 31, 2012, with the exception of share price and price growth).
(1) TEV (“Total Enterprise Value”) is defined as net debt plus preferred equity, minority interest and market capitalization.
(2) Median and mean values exclude all negative and non-meaningful values.
Index Value
Amherst Partners’ Automotive Supplier Index
Note: The supplier index used in this newsletter has been compiled by Amherst Capital Partners, LLC solely for illustrative purposes. The Companies chosen for the index are publiclytraded companies that are commonly used for industry composites representing sector stock performance. The index does not include all public companies that could be categorized
within the sector, and was not created as a benchmark, nor should it imply benchmarking or a recommendation for a particular stock and/or sector.
Total Units Sold ( in millions)
U.S. Light Vehicle Sales
Source: IHS
A m her s t P a r t ner s .com
AutomotiveIQ
EBITDA Margin
US $s (in billions)
Select Global OEM Aggregate Sales and EBITDA Margin
Note: Asian Aggregates include - Toyota Motor Corp., Honda Motor Co., Ltd., Nissan Motor Co. Ltd., Hyundai Motor Co., Suzuki Motor Corp., Mazda Motor Corp., Kia Motors Corp., Mitsubishi Motors Corp., and Daihatsu Motor
Co. Ltd.; Europe Aggregates include - Volkswagen AG, Daimler AG, BMW Group, Fiat S.p.A., PSA Peugeot Citroen, Renault SA, and Audi AG; North American Aggregates include – Ford Motor Co. and General Motors Company.
Excludes Chrysler.
U.S. Supplier Index Enterprise Value as a Multiple of EBITDA
U.S. Supplier Index Total Debt as a Multiple of EBITDA
Source: Capital IQ
Total Transaction Volume (#)
Global Automotive M&A Activity
Source: Capital IQ
Search Criteria: (1) Automobiles and Components (Primary); (2) Mergers or acquisitions for
majority control; (3) Transactions Announced Date (Including Bids and Letters of Intent)
A m her s t P a r t ner s .com
Source: Capital IQ, OneSource, SEC filings, company information and Amherst research.
AutomotiveIQ
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Automotive Team Contacts
Don Luciani, Partner
Head of Automotive Industry Team
248.633.2139
[email protected]
Chas Chandler, Partner
248.633.2140
[email protected]
Scott Eisenberg, Partner
248.633.2150
[email protected]
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248.633.2135
[email protected]