Industry Update: Warehousing, Transportation and Logistics M&A Update – December, 2019

December, 2019

For 2019 YTD, strategic buyers have accounted for 82% of Warehousing, Transportation and Logistics M&A transactions with financial buyers making up the difference. During 2018, strategic buyers accounted for approximately 81% of the transactions.

Select recent notable publicly announced M&A transactions:

– Brookfield acquires Genesee & Wyoming for $6.4 billion.

– Aurora Capital Partners acquired Petroleum Services Corporations for $335 million.

– Variant Equity acquires Coach USA for $270 million.

– Odyssey acquires American Fast Freight for $465 million.

– ATSG acquires Omni Air International for $845 million.

– 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: Pet M&A Update – December, 2019

December, 2019

In 2019 YTD, strategic buyers accounted for 82% of Pet M&A transactions while financial buyers making up the difference. During 2018, strategic buyers accounted for approximately 97% of the transactions.

Select recent notable publicly announced M&A transactions:

– Sergeant’s acquired PetIQ for approximately $185 million.

– 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.

Update: Consumer and Retail M&A Update – December, 2019

December, 2019

For 2019 YTD, strategic buyers accounted for 65% of Consumer and Retail M&A transactions. During 2018, strategic buyers accounted for 69% of the transactions.

Select recent notable publicly announced M&A transactions:

– Perrigo Company entered an agreement to acquire Ranir for $750 million.

– Tivity Health acquired Nutrisystem for $1.4 billion.

– Platinum Equity acquired Jostens for $1.3 billion.

– ARG Holdings acquired Sonic for $2.3 billion.

– 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 Advises on Recapitalization of Capital Equipment Manufacturer

November, 2019. Peakstone served as exclusive financial advisor to BTM Company (“BTM”) on its recapitalization transaction with First Capital Partners (“FCP”).

BTM was founded in 1966 and is based in Marysville, Michigan. BTM is a leading supplier of clinching and piercing tools and equipment, inserted fastener and work holding equipment, and fully automated assembly systems for companies that use sheet metal to manufacture products. Its products employ patented and proprietary metal clinching processes that form strong interlocking joints between metal sheets without using fasteners or welding. BTM’s products are used by global OEMs and suppliers that serve the automotive, appliance, furniture, garage door and general industrial end markets.

“The team from Peakstone was critical in helping us identify the ideal financing partner to support the continued growth of BTM”, noted BTM CEO Tom Kemeny. “Their thoughtful guidance, commitment of senior resources, and understanding of our business resulted in a great outcome for all parties.”

Tom Kemeny will continue to serve as CEO. Terms of the transaction were not disclosed.

Additional information: Click Here

For additional information please contact the following:

Andy Savarie, Managing Director, 312-560-5199, asavarie@peakstone.com

Stephen Sleigh, Managing Director, 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.

Peakstone Advises on Environmental Services Transaction

October, 2019. Peakstone served as the exclusive financial advisor to Beneficial Reuse Management (“BRM”) in connection with its transaction with Skyline Global Partners.

Founded in 1999, BRM is a privately-owned, Illinois-based processor, manufacturer, and distributor of specialty agricultural and construction products. BRM sources materials from the by-product streams of utilities, municipalities and industrial companies, and creates branded and non-branded products. The Company’s branded product, Gypsoil®, provides valuable nutrients and improves soil structure for the agriculture industry. Environmental benefits from BRM’s products include preservation of landfill space, conservation of natural resources and reduced carbon dioxide emissions.

“This transaction represents a key milestone for the company,” noted Dave Schuurman, Chairman. “Our new partnership with Skyline will help us capitalize on numerous market opportunities and strategic growth initiatives.”

Robert Spoerri, Chief Executive Officer, added, “BRM has maintained a strong relationship with Peakstone for several years as we evaluated our strategic alternatives.  We appreciate the Peakstone team’s dedication, guidance and support that helped us achieve a very successful outcome.”

Terms of the transaction were not disclosed.

For additional information please contact the following:

Eric Dziedzic, Managing Director, (312) 346-7314, eric@peakstone.com

Alex Fridman, Managing Director, (312) 346-7303, alex@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.

Peakstone Advises on Sale of Renewable Energy Company

October, 2019. Peakstone served as the exclusive M&A advisor to GreenWhey Energy, Inc. on its sale to Viresco AD.

Founded in 2013, GreenWhey Energy (www.greenwheyenergy.com) uses anaerobic digesters to treat whey-rich wastewater produced by cheesemakers, as well as other nutrient-rich liquids produced by other food and beverage companies. Viresco AD (www.virescoad.com) is a leading biofuels company specializing in advanced anaerobic digestion technology for the conversion of waste into energy.

GreenWhey entered voluntary receivership in 2016 as operational and regulatory issues created financial stress. Rebecca DeMarb (www.demarb-brophy.com), the Receiver, noted, “After a long sale process and restructuring inside of the receivership, we are thrilled to see GreenWhey in the competent hands of Viresco.”

GreenWhey Energy’s General Manager, Barry Bassett, who joined the company in 2018 and was instrumental to stabilizing GreenWhey’s operations, said, “Due to our unique business model, we met a wide range of potential buyers, including anaerobic digestor companies, financial investors, municipalities, industry experts and engineering groups. Peakstone effectively advised us on the range of alternatives. We are delighted to join forces with Viresco AD. They bring a vision and financial commitment to make the GreenWhey Energy plant an innovative leader in the anaerobic digester industry.”

Terms of the transaction were not disclosed.

For additional information regarding Peakstone services, please contact the following:

Steve Royko, Managing Director, 608-236-4490, sroyko@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.

Peakstone Serves as M&A Advisor on the sale of Design Tanks to The Purcell Companies

October, 2019. Peakstone served as exclusive M&A advisor to Design Tanks, LLC, an Aldine Capital Partners portfolio company, in connection with its sale to The Purcell Companies.

Founded in 1956, Design Tanks sells a full range of fiberglass reinforced plastic (FRP) tank sizes and accessory products for a wide range of applications. Headquartered in Sioux Falls, South Dakota, its products are sold nationally and internationally.

Mike Revord of Aldine Capital stated, “We are thrilled with the results. The process and advice from Peakstone helped get a great deal done with an ideal partner to support the management team going forward.”

Mike McLoone, COO of The Purcell Companies, said, “Design Tanks is well-positioned to capitalize on its core strengths. With our capital resources, operational experience and long-term investment horizon, we look forward to further optimizing the Company’s operations and business model and elevating Design Tanks to its next level.”

Terms of the transaction were not disclosed.

For additional information regarding Peakstone services, please contact the following:

Mark Horita, Managing Director, (312) 346-7308, mhorita@peakstone.com

Peter Melloni, Managing Director, (630) 664-3457, pmelloni@peakstone.com

Jeff Temple, Managing Director, (312) 346-7301, jtemple@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 Aldine Capital Partners

Aldine Capital Partners is a private investment firm, which provides mezzanine and junior capital financing to lower middle-market companies. Aldine typically invests $4-25 million per transaction in a combination of subordinated debt and equity. Collaborating with traditional and independent sponsors as well as talented management teams, Aldine deploys capital to facilitate growth, support acquisitions/buyouts, or provide shareholder liquidity. Our success is built on a collaborative approach that harnesses over 70 years of combined experience and relationships to create tailored capital solutions. http://aldinecapital.com

About Design Tanks

Headquartered in Sioux Falls, South Dakota, Design Tanks creates premier fiberglass storage tanks for customers across the nation and around the world. Our custom tanks come in many shapes and sizes—from two to 14 feet in diameter and holding from 50 to 50,000 gallons, with a variety of product options. http://www.designtanks.com

Michael Taylor joins Peakstone as Managing Director

September, 2019. Michael Taylor has joined Peakstone as a Managing Director focusing on the Consumer and Retail sectors. Michael brings substantial depth to Peakstone’s Consumer and Retail practice, having completed over 100 transactions totaling over $28 billion in value for leading consumer and retail clients globally.

Prior to joining Peakstone, Michael was with KeyBanc Capital Markets’ Consumer and Retail Group, where he ran the Hardgoods Consumer Products and Hardlines Retail Investment Banking practice. Michael began his investment banking career with Bank of America’s Global Corporate and Investment Banking business. Michael spent 14 years with Bank of America, including as a founding member of the firm’s Consumer and Retail Corporate and Investment Banking Group, eventually working as a Managing Director responsible for origination and execution of transactions in the Consumer Products sector. Michael later joined BMO Capital Markets in the Consumer and Retail Investment Banking Group where he was a Managing Director responsible for the Consumer Products sector.

Michael has an MBA from the Marshall School of Business at the University of Southern California and a Bachelor of Science from the University of Colorado.

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.

Peakstone Serves as M&A Advisor to Countryside Tank Company on Sale to TerraVest Industries

September, 2019. Peakstone served as the exclusive M&A advisor to Iowa Steel Fabrication LLC, (doing business as Countryside Tank Company) and Majona Steel Corporation (collectively, “Countryside Tank”) in connection with its sale to TerraVest Industries Inc.

Founded in 1973, Countryside Tank is a privately-owned, Iowa-based company primarily focused on manufacturing transportation equipment for the propane and anhydrous ammonia markets as well as structural steel projects.

“Countryside Tank is a leading manufacturer of propane and anhydrous ammonia trailers for the U.S. market, the addition of the company enhances TerraVest’s propane and NH3 trailer offering in the U.S. as well as the scope of services offered in the Midwest. Countryside Tank will play a part in TerraVest’s overall effort to maximize product and service capabilities to customers across North America,” said Dustin Haw, Chief Executive Officer of TerraVest Industries.

Joe Greving, Iowa Steel’s Executive Chairman, noted, “We’re excited to become a part of the TerraVest family and accelerate our efforts to meet the evolving needs of our customers. It expands our growth strategy in North America and supports our commitment to outstanding customer service. Peakstone was an invaluable partner throughout the sale process and helped us achieve a great outcome for Countryside Tank.”

Press Release: Click Here

Terms of the transaction were not disclosed.

For additional information please contact:

Christian Colucci, Managing Director, (312) 346-7349, christian@peakstone.com

Eric Dziedzic, Managing Director, (312) 346-7314, eric@peakstone.com

Mark Horita, Managing Director, (312) 346-7308, mhorita@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.

Peakstone Advises on Growth Capital Transaction for Event Management Consumer Services Business

September, 2019. Peakstone served as financial advisor to 828 Venue Management Company in connection with its institutional investor growth capital raise.

Founded in 2014, 828 is leading the wedding and event venue industry with unique urban locations that are perfect for the modern couple. The Company provides unmatched service for its customers including a 24-hour venue rental, the flexibility to bring in any vendor of choice and creative freedom to personalize the event. This transparency has enabled 828 to modernize the wedding industry and provide a creative marketplace for its clients to design and execute the event of their dreams. The Company currently operates eight locations in six cities across the United States.

Terms of the transaction were not disclosed.

For additional information please contact:

Michael Dockendorf, Managing Director, 312-346-7351, mdockendorf@peakstone.com

Cathy Jaros, Managing Director, 312-262-7735, cjaros@peakstone.com

Nicholas Patrick, Managing Director, 312-346-7335, npatrick@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.