Industry Update: IT Services M&A Update – September, 2018

September, 2018

In 2018 YTD, strategic buyers accounted for 89% of the IT Services M&A transactions with financial buyers making up the difference; during 2017, strategic buyers accounted for approximately 90% of the transactions.

Select recent notable publicly announced M&A transactions:

– Canada Pension Plan Investment Board acquired GlobalLogic, Inc. for approximately $2.0 billion.

– General Dynamics (NYSE: GD) acquired CSRA Inc. (NYSE: CSRA) for approximately $9.9 billion.

– Silver Lake and P2 Capital Partners, LLC acquired Blackhawk Network Holdings, Inc. (Nasdaq GS:HAWK) for approximately $4.0 billion.

– SS&C Technologies Holdings, Inc. (Nasdaq GS:SSNC) acquired DST Systems, Inc. (NYSE:DST) for approximately $5.8 billion.

Industry Update: Technology & Software M&A Update – September, 2018

September, 2018

In YTD 2018, Technology and Software transactions value has been higher than 2017 and traded at lower multiples compared to 2017.

Select recent notable publicly announced M&A transactions:

– Microsoft Corporation (Nasdaq: MSFT) acquired GitHub for approximately $7.50 billion.

– Adobe Systems (Nasdaq: ADBE) acquired Magento for approximately $1.68 billion.

– SalesForce (NYSE: CRM) acquired MuleSoft for approximately $6.81 billion.

– General Dynamics (NYSE: GD) acquired CSRA Inc. (NYSE: CSRA) for approximately $9.95 billion.

Industry Update: Automotive M&A Update – September, 2018

September, 2018

For 2017, strategic buyers accounted for 83% of the automotive M&A transactions with financial buyers making up the difference; during 2016, strategic buyers accounted for approximately 89% of the transactions.

Select recent notable publicly announced M&A transactions:

– American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) acquired Metaldyne Performance Group Inc. for approximately $3.42 billion.

– Winnebago Industries, Inc. acquired Grand Design RV for approximately $500 million.

– Polaris Industries Inc. (Delaware) acquired TAP Automotive Holdings, LLC for approximately $670 million.

– Thor Industries, Inc. (NYSE:THO) acquired Jayco, Inc. for approximately $580 million.

– Vitro, S.A.B. de C.V. (BMV:VITRO A) acquired Pittsburgh Glass Works LLC for approximately $310 million.

Industry Update: Food and Beverage M&A Update – September, 2018

September, 2018

For 2017, total U.S. F&B announced transactions of 495 deals, exceeding 2016 levels of 380. 2018 YTD volume is at 229 transactions, less than the 325 transactions in the same period one year ago.

Select recent notable publicly announced M&A transactions:

– ConAgra acquired Pinnacle Foods for an $10.9 billion.

– Frito Lay acquired Bare Snacks for an undisclosed amount.

– Mondelez International acquired Tate’s Bake Shop for $500 million.

– General Mills acquired Blue Buffalo for $8.3 billion

– Peakstone advises Gourmet Gift Concepts on sale of company to Hickory Farms for an undisclosed amount.

– Keurig acquired Dr Pepper Snapple Group for approximately $18.7 billion.

– Campbell’s acquired Snyder Lance for approximately $6.1 billion.

– Kellogg’s acquired Chicago Bar Company for approximately $600 million.

– Peakstone advises Market Fresh Produce on sale of company to Marquette Capital Partners for an undisclosed amount.

Industry Update: Restaurant Industry Insight Spotlight on Fast Casual M&A Update – September, 2018

September, 2018

For announced transactions, Restaurant multiples saw a modest increase from 9.6x EBITDA in 2016 to 10.8x EBITDA in 2017.

Select recent notable publicly announced M&A transactions:

– Cava Group, Inc. acquired Zoe’s Kitchen, Inc. (NYSE:ZOES) for approximately $250 million.

– Focus Brands Inc. acquired Jamba Inc. (Nasdaq:JMBA) for approximately $210 million.

– Del Frisco’s acquired Barteca for approximately $330 million.

– Spice Private Equity acquired Bravo Brio Restaurant Group for approximately $100 million.

– Rhone acquired Fogo de Chao for approximately $450 million.

– Apollo acquired Qdoba for approximately $305 million.

Industry Update: Pet M&A Update – September, 2018

September, 2018

In 2018 YTD, strategic buyers accounted for 94% of the Pet M&A transactions with financial buyers making up the difference; during 2016, strategic buyers accounted for approximately 79% of the transactions.

Select recent notable publicly announced M&A transactions:

– Smucker’s acquired Ainsworth for approximately $1.9 billion.

– Hines Resource Group acquired Spectrum Brands for approximately $2.3 billion.

– General Mills, Inc. acquired Blue Buffalo Pet Products, Inc. for approximately $8.3 billion.

– The Riverside Company acquired Petstages for an undisclosed amount.

– The Riverside Company acquired Bionic for an undisclosed amount.

Industry Update: Warehousing, Transportation and Logistics M&A Update – September, 2018

September, 2018

For 2018 YTD, strategic buyers have accounted for 81% of the Warehousing, Transportation and Logistics M&A transactions with financial buyers making up the difference; during 2017, strategic buyers accounted for approximately 92% of the transactions.

Select recent notable publicly announced M&A transactions:

– Blackstone acquires Gramercy Property Trust for $7.5 billion.

– Prologis acquired DCT Industrial Trust for $8.4 billion.

– Kirby Corporation acquired Higman Marine, Inc. for $419 million.

– Penske Automotive Group, Inc. (NYSE:PAG); MBK USA Commercial Vehicles Inc. acquired Penske Truck Leasing Co., L.P. for approximately $670 million.

– EQT Partners AB acquired Global Gateway South Terminal for approximately $820 million.

– Scorpio Tankers Inc. (NYSE:STNG) acquired Navig8 Product Tankers Inc. for approximately $1.18 billion.

– Knight Transportation, Inc. (NYSE:KNX) acquired Swift Transportation Company (NYSE:SWFT) for approximately $2.97 billion.

– Grupo México Transportes S.A. de C.V. acquired Florida East Coast Holdings Corp. for approximately $2.1 billion.

Industry Update: Consumer and Retail M&A Update – September, 2018

September, 2018

For 2018 YTD, strategic buyers accounted for 74% of Consumer and Retail M&A transactions. During 2017, strategic buyers accounted for 65% of the transactions.

Select recent notable publicly announced M&A transactions:

– Vintage Investment Partners acquired Rent-A-Center for $1.3 billion.

– Marriott Vacations Worldwide Corp. acquired ILG Inc. for about $5.8 billion.

– Tenneco acquired Federal-Mogul for $5.4 billion.

– Peakstone advises Erehwon Mountain Outfitter on sale of company to Camping World Holdings, Inc. (NYSE:CWH) for an undisclosed amount.

– Arby’s Restaurant Group Inc. acquired Buffalo Wild Wings Inc. for approximately $2.9 billion.

– American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) acquired Metaldyne Performance Group Inc. for approximately $3.42 billion.

– BPS Direct, L.L.C. acquired Cabela’s Incorporated (NYSE:CAB) for approximately $8.67 billion.

– Circle K Stores Inc. acquired CST Brands, Inc. (NYSE:CST) for approximately $6.09 billion.

– Rye Parent Corp. acquired Panera Bread Company (NasdaqGS:PNRA) for approximately $7.66 billion.

Peakstone Closed Deal Announcement: Automotive Finance and Insurance Industry

September, 2018. Peakstone served as the exclusive M&A advisor to Finance & Insurance Resources, Inc. (“F&I Resources”) in connection with its acquisition by Brown & Brown, Inc. (“Brown & Brown” NYSE:BRO).

F&I Resources is a leader in finance and insurance performance management for auto dealers in the Northeast and Mid-Atlantic states, providing F&I sales training and auto related service contracts to its dealer partners. The F&I Resources team, which is lead by Jason Bayko and Bob Hunter, will become part of the Brown & Brown auto, RV and powersports practice, which operates under the leadership of Mike Neal, President of Brown & Brown of Kentucky, Inc.

Peakstone is the market leading advisor to automotive finance and insurance agencies, third party administrators, F&I ancillary product suppliers, and related commercial insurance agencies. Including F&I Resources, Peakstone has advised on 10 automotive finance and insurance transactions and is actively representing other vehicle extended warranty companies in the marketplace.

Mike Neal of Brown & Brown stated, “Jason and Bob have grown F&I Resources to be a best-in-class operation delivering sales performance training and warranty insurance products for their dealer partners. The F&I Resources team will provide additional expertise to our growing platform in this space and establish a base for operations in the Northeast. We are confident that this will complement and enhance our existing operations.”

Jason Bayko of F&I Resources stated, “I could not be more excited to become a part of Brown & Brown and their sales culture. We are now well positioned to grow by having access to additional insurance products, giving us a unique value proposition for our dealer partners.”

Bob Hunter of F&I Resources added, “Brown & Brown’s culture, which is focused on clients and teammates, is a perfect match for us. Joining our company with Brown & Brown will provide us the opportunity to enhance our relationships with our valued customers through additional product offerings and training. I want to take this time to thank our dedicated, talented and long-term team members and our clients for their past and continued support.”

Terms of the transaction were not disclosed.

For additional information please contact the following:

Stephen Sleigh, Managing Partner, 312-346-7318, ssleigh@peakstone.com

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. The team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com.

About Brown & Brown, Inc.

Brown & Brown, Inc., through its subsidiaries, offers a broad range of insurance products and related services. Additionally, certain Brown & Brown subsidiaries offer a variety of risk management, third-party administration, and other services. Serving business, public entity, individual, trade and professional association clients nationwide, Brown & Brown is ranked by Business Insurance magazine as the United States’ sixth largest independent insurance intermediary. Brown & Brown’s web address is www.bbinsurance.com.

Brown & Brown Official Press Release: Click Here

Industry Update: Packaging M&A Update – September, 2018

September, 2018

For 2018 YTD, strategic buyers accounted for 86% of the Packaging M&A transactions with financial buyers making up the difference; during 2017, strategic buyers also accounted for approximately 82% of the transactions.

Select recent notable publicly announced M&A transactions:

– Novolex acquired The Waddington Group for $2.3 billion.

– Graphic Packaging International, Inc. acquired North America Consumer Packaging Business of International Paper Company for approximately $1.8 billion.

– DS Smith Plc (LSE:SMDS) acquired Indevco Management Resources, Inc. for approximately $1.15 billion.

– Loews Corporation (NYSE:L) acquired Consolidated Container Company LLC for approximately $1.2 billion.

– RPC Group Plc (LSE:RPC) acquired Letica Corporation for approximately $640 million.

– WestRock Company (NYSE:WRK) acquired Multi Packaging Solutions International Limited for approximately $2.3 billion.