Industrials Monthly March 2014 in Review

Industrials Monthly March 2014 in Review

Industrials Monthly
March 2014 in Review
Industrial Headline Transactions
Target
Acquiror
Acquisition Synopsis
• Guangdong Dongfang Precision Science & Technology Co., Ltd. (SZSE:002611) is a designer and
Industrial
manufacturer of corrugated carton machines in China and internationally
Equipment &
• Dongfang acquired Fosber Spa, an Italian company that constructs, sells and installs individual
Technology
machine units for the production of corrugated board packaging products
• Calumet Lubricants, a manufacturer and distributor of hydrocarbon products and naphthenic
Energy
specialty oils, acquired Anchor Drilling Fluids USA, Inc. for $234 million
Equipment &
• Anchor Drilling Fluids USA, Inc. offers drilling fluids, completion fluids, closed-loop solids,
Services
production chemicals and environmental chemicals
• ThyssenKrupp AG (XTRA:TKA) acquired Acciai Speciali Terni S.p.A. and Outokumpu VDM GmbH
Acciai Speciali Terni
Specialty
S.p.A. and
Materials
Outokumpu VDM
from Outokumpu Oyj (HLSE:OUT1V) for €1.3 billion
• ThyssenKrupp AG (XTRA:TKA), which operates in the areas of materials and technologies in
GmbH
Germany, expanded its stainless steel flat products operations through the acquisition
• S.A. Industrias Celulosa Aragonesa, a Spanish manufacturer of paper for corrugated purposes,
Paper &
acquired Omk Oluklu Mukavva Ve Kutu Ambalaj Sanayii A S
Packaging
• Omk is a Turkish manufacturer and supplier of packaging solutions that serves the home care,
personal care, chemicals, tile and ceramics industries, among others
• Baillie Lumber Co., Inc., a New York based manufacturer, distributer and exporter of hardwood
Building
lumber, acquired American Hardwood Industries, Inc. from H.I.G. Capital, LLC
Products
• American Hardwood produces and sells hardwood logs, lumber and flooring products for
customers in North America, Asia, the Middle East, and Europe
50%
1-Year Revenue Growth
40.3%
40%
32.8%
30%
31.7%
21.4%
18.1%
20%
S&P 500 Return
10%
0%
Industrial
Equip. &
Tech.
Energy
Equip. &
Services
Specialty
Materials
Paper &
Packaging
Building
Products
1-Year Revenue Growth
1-Year Stock Return
1-Year Stock Returns
6%
4.9%
4%
2.3%
(0.8%)
0%
(2%)
Industrial
Equip. &
Equip. &
Tech.
Tech.
Leverage Multiples
2.0x
3.2x
2.6x
1.9x
1.6x
1.5x
1.0x
0.5x
0.0x
Industrial
Equip. &
Tech.
Energy
Equip. &
Services
Specialty
Materials
35%
LTM Gross Margin
2.5x
Specialty
Paper &
Building
Materials
Packaging
Products
Materials
Packaging
Products
Gross & EBITDA Margins
3.1x
3.0x
Energy
Equip. &
Equip. &
Services
Services
Paper &
Packaging
Building
Products
30%
25%
20%
15%
23.3%
29.2%
27.1%
17.4%
12.7%
18.1%
12.0%
30%
25%
20.7%
13.9%
35%
12.8%
20%
15%
10%
10%
5%
5%
0%
0%
Industrial
Equip. &
Tech.
Energy
Equip. &
Services
Specialty
Paper &
Building
Materials Packaging Products
LTM EBITDA Margin
LTM Debt / EBITDA
3.5x
2.0%
1.4%
2%
EBITDA Multiples Over Time
12.0x
11.0x Building Products
TEV / EBITDA
11.0x
10.1x Industrial Equip. & Tech.
10.0x
9.7x Specialty Materials
9.0x
9.4x Energy Equip. & Services
8.0x
9.0x
Paper & Packaging
7.0x
6.0x
5.0x
Q1 '11
Q2 '11
Q3 '11
Q4 '11
Q1 '12
Q2 '12
Q3 '12
Q4 '12
Selected Industrial Equip. & Tech. Transactions
Target
Acquiror
Harvey Tool
The Riverside
Company, LLC
Company
Steffes
Worthington
Transaction Description
Q1 '13
Q2 '13
Q3 '13
Q4 '13
Q1 '14
Selected Energy Equip. & Services Transactions
Target
Acquiror
The Riverside Company, a private equity firm, acquired Harvey
Frontline Energy
Excellere Partners Excellere Partners, a private equity firm, acquired Frontline
Transaction Description
Tool Company, a provider of specialty carbide end mills and
Services and G2
and G2, which provide data and engineering services for the
cutting tools
Partners, LLC
energy industry
Worthington, a metals manufacturing company, acquired the
PPI Technology
Cardno Limited
Cardno, an Australian infrastructure and environmental
Corporation, Tank Industries, Inc.
Tank Division of Steffes Corporation, which manufactures
Services, LLC
(ASX:CDD)
services company, acquired PPI, a provider of oil and gas
Division
(NYSE:WOR)
oilfield storage tanks
Thermal Product
Resilience Capital
Resilience Capital Partners, a private equity firm, acquired
Kreuz Holdings
Headland Capital
Headland Capital, a private equity firm in Hong Kong, acquired
Solutions, Inc.
Partners LLC
Thermal Product Solutions, a manufacturer of thermal
Limited
Partners Limited
Kreuz, a Singaporean provider of subsea services, for $381
services and solutions, for $145 million
million
processing and test solutions
Selected Specialty Materials Transactions
Selected Paper & Packaging Transactions
Target
Acquiror
FESIL AS
MFC Industrial Ltd MFC, a Canadian commodity supply chain company, acquired
(NYSE:MIL)
Transaction Description
FESIL AS, which produces and sells ferrosilicon primarily in
Target
Acquiror
Transaction Description
Winbox (BVI)
Goodwill
Goodwill, a Hong Kong based holding company, acquired
Limited
International
Winbox (BVI) Limited, which manufactures plastic and paper
(Holdings) Ltd.
boxes in Hong Kong
Norway, for $81 million
Material Sciences
New Star Metals
Corporation
New Star Metals and Insight Equity, a private equity firm,
Indiana
Welch Packaging
Welch Packaging, which manufactures corrugated boxes,
acquired Material Sciences, which manufactures material-
Corrugated, Inc.
Group, Inc.
acquired Indiana Corrugated, a provider of packaging
based solutions
Brigus Gold Corp
solutions
Primero Mining
Primero Mining Corp., a precious metals producer, acquired
Hanover
TimBar Packaging
Corp. (TSX:P)
Brigus which extracts, processes and refines gold deposits, for
Packaging Co.
& Display Group
acquired Hanover, a manufacturer of rigid boxes and folding
cartons
$287 million
Selected Building Products Transactions
TM Capital’s Industrial Contacts
Target
Acquiror
Universal Forest
Universal Forest
Universal
Products
Products Inc.
acquired High Level Components, a manufacturer of building
(Nasdaq:UFPI)
TimBar, which manufactures corrugated packaging products,
Transaction Description
Forest
Products,
which
manufactures
wood,
components
MSS Clean
Environmental
Technology
Engineering
Limited
Environmental Engineering, a UK based designer of HVAC
building services, acquired MSS, a UK manufacturer of labs
and clean rooms
ET Industries Inc.
Protoplast Inc.
Protoplast, a Canadian plastic injection molding company,
acquired ET, a manufacturer of kitchen and bath products in
North America
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