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.


Peakstone Closed Deal Announcement: B2B Manufacturing and Distribution

August, 2018. Peakstone served as exclusive M&A advisor to Block and Company, Inc. in connection with its sale to Speyside Equity. Founded in 1934 in Wheeling, IL, Block is a leading manufacturer and distributor of cash handling, document security, and office supply products in North America. The Company manufactures and sources 7,000+ product SKUs to serve a wide range of domestic and international customers.

“We have been very proud and grateful to have had the privilege to carry on the outstanding legacy created by our parents, Grace and Mitchell Block,” said Kenneth Block.  “We are  thankful to our entire workforce for their dedication to the operation of our business.  In particular, we thank our executive team and Peakstone, our investment bankers, for their thoughtful, focused determination to achieve a successful transaction.”

Eric Wiklendt, Operating Partner for Speyside commented, “We are excited to add Block to our portfolio of metal forming companies. The talents of Block’s employees and the unique capabilities of its facilities will significantly improve the ability of our portfolio companies’ abilities to service customers. The acquisition of Block pushes the combined revenues of Speyside’s steel fabrication companies over $100 million, and further strengthens the platform for future growth.”

Speyside Equity is an operationally focused private equity firm that has been investing in manufacturing-related businesses since 2005. The firm is based in Ann Arbor, MI.

Terms of the transaction were not disclosed.

For additional information please contact the following:

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

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.


Peakstone Advises Entegra Capital on sale to Adelphi Capital.

August, 2018. Peakstone served as exclusive M&A advisor to Entegra Capital.

Terms of the transaction were not disclosed.

For additional information please contact the following:

Jim Breen, Managing Director, 312-543-3881, jbreen@peakstone.com

Dan Sholem, Managing Director, 217-722-2444, dsholem@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 Publishes Industry Reports

July, 2018. Peakstone has published eleven updated industry reports, which can be accessed through the links below.  We deliver sector knowledge, experience, and relationships to every client.  We welcome a chance to open dialogue with companies in these sectors to exchange information and viewpoints.

Automotive

Consumer & Retail

E-Commerce


Food & Beverage

Industrials & Manufacturing

IT Services

Packaging

Pet

Restaurant

Technology & Software

Transportation & Logistics

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. Our 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.


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

June, 2018

For 2017, strategic buyers accounted for 89% of the automotive M&A transactions with financial buyers making up the difference; during 2016, strategic buyers accounted for approximately 88% 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: Technology & Software M&A Update – June, 2018

June, 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: IT Services M&A Update – June, 2018

June, 2018

In 2018 YTD, strategic buyers accounted for 86% 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.


Peakstone Closed Deal Announcement: MixOnSite USA Sold to CEMATRIX

July, 2018. Peakstone served as exclusive M&A advisor to MixOnSite USA, Inc. (“MixOnSite” or the “Company”) in connection with its sale to CEMATRIX.  MixOnSite is a nationwide provider of highly customized, lightweight, low density cellular concrete.  The Company specializes in providing innovative solutions for a wide range of demanding geotechnical and underground construction challenges.

CEMATRIX is a publicly-traded corporation with its headquarters in Calgary, Alberta, Canada. CEMATRIX manufactures and supplies technologically advanced cellular concrete products developed from proprietary formulations.

“Peakstone was truly a great partner in helping us complete this transaction.  In addition to delivering a great transaction with a strategic buyer, Peakstone’s experience with family-owned businesses provided us with strong leadership in navigating a number of complex issues throughout the process,” noted Ed Weiner, CEO and Founder of MixOnSite. “We are excited about our new partnership with CEMATRIX.”

CEMATRIX’s Press Release: Click Here

For additional information please contact the following:

Andy Savarie, Managing Director, 312-346-7334, asavarie@peakstone.com

Alex Fridman, Managing Director, 312-346-7303, afridman@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.