Industry Update: Consumer & Retail M&A Update – August, 2017

August, 2017

For the 2017 YTD, strategic buyers accounted for 59% of Consumer and Retail M&A transactions. During 2016, strategic buyers
accounted for 85% 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.

– 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.

– Samsung Electronics America, Inc. acquired Harman International Industries, Incorporated for approximately $9.38 billion.

– Sycamore Partners acquired Staples, Inc. (NasdaqGS:SPLS) for approximately $7.85 billion

Industry Update: Technology & Software Industry Update – August, 2017

August, 2017

For the 2017 YTD period, Technology and Software transactions are on track with 2016 volume and are trading at significantly
higher multiples compared to 2016.

Select recent notable publicly announced M&A transactions:

– Cisco systems, inc. (nasdaqgs:csco) acquired Appdynamics, inc. for approximately $4.03 billion.

– Inception parent, inc. acquired Rackspace Hosting, inc. for approximately $4.95 billion.

– Micro Focus International plc (lse:mcro) acquired Hewlett Packard enterprise company, software business for approximately $8.73 billion.

– Oracle Corporation (nyse:orcl) acquired Netsuite inc. for approximately $7.08 billion.

– Siemens Industry, inc. acquired Mentor graphics corporation for approximately $4.82 billion.

– Verizon Communications inc. (nyse:vz) acquired Yahoo! Inc., Operating business for approximately $4.48 billion.

Industry Update: Home Décor Industry Update – August, 2017

August, 2017

For the 2017 YTD period, strategic buyers accounted for 78% of the Home Décor M&A transactions with financial buyers making
up the difference; during 2016, strategic buyers also accounted for approximately 78% of the transactions.

Select recent notable publicly announced M&A transactions:

– Legrand North America, Inc. acquired Milestone AV Technologies, LLC for approximately $1.2 billion.

– Mill Road Capital LP acquired Lifetime Brands, Inc. (NasdaqGS:LCUT) for approximately $380 million.

– Stanley Black & Decker, Inc. (NYSE:SWK) acquired Newell Brands Inc., Tool Business including Irwin, Hilmor and Lenox Brands for approximately $1.95 billion.

– Stanley Black & Decker, Inc. (NYSE:SWK) acquired Sears Holdings Corporation, Craftsman for approximately $780 million.

– Steinhoff International Holdings N.V. (JSE:SNH) acquired Mattress Firm Holding Corp. for approximately $2.98 billion.

– Vitro, S.A.B. de C.V. (BMV:VITRO A) acquired PPG Industries, Inc., Flat Glass facilities in US and Canada and PPG Canada Inc. (Calgary) for approximately $750 million.

Industry Update: Automotive M&A Update – August, 2017

August, 2017

For the 2017 YTD period, 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 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.

– Octavius Corporation 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.

Closed Deal Announcement – Peakstone Advises Automotive Assurance Group on Sale to AmTrust

August, 2017. Peakstone served as exclusive financial advisor to AAG in connection with this transaction. Automotive Assurance Group, LLC. (“AAG”) has entered into a strategic transaction with Amtrust Warranty, Inc., a subsidiary of AmTrust Financial Services (“ASFI”), a publicly-traded company listed on the NASDAQ.

Automotive Assurance Group, a Florida-based full service automotive finance & insurance agency has been acquired by ASFI and is now a member of the Amtrust Financial Group of Companies. AAG is a leading F&I consulting boutique providing vehicle service contracts (“VSCs”), related ancillary products, and reinsurance solutions to automotive dealerships. AAG, led by Nick D’Amico and his team, have built one of the most respected F&I agencies in the marketplace.

“I am thrilled to be working with AmTrust Financial and have no doubt that Automotive Assurance Group can achieve new levels of growth and success under the AmTrust Financial umbrella,” said Nick D’Amico, founder of Automotive Assurance Group.

“Peakstone’s dedicated Auto F&I practice team helped us find the perfect partner to continue to accelerate our growth and found us a great strategic partner to extend upon our longstanding reputation as a leader and innovator in Auto F&I products,” said Mr. D’Amico.  “Peakstone developed and executed on a highly targeted marketing process that led to an outstanding outcome for our shareholders.”

Peakstone has a dedicated practice covering the Automotive Finance & Insurance industry and has completed numerous transactions in the F&I sector.

Terms of the transaction were not disclosed.

For additional information please contact:

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

About Peakstone

The Peakstone Group 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: Food and Beverage M&A Update – May, 2017

May, 2017

For 2016, total U.S. announced transactions of 380 deals are exceeding 2015 record levels of 351.

Select recent notable publicly announced M&A transactions:

– Peakstone advises PepperJax Grill on sale of company to TA Associates for an undisclosed amount.

– Peakstone advises Clearbrook Farms on sale of company to Glencoe for an undisclosed amount.

– Charoen Pokphand Foods Public Company Limited (SET:CPF) acquired Bellisio Foods, Inc. for approximately $1.08 billion.

– Mott’s, LLP acquired BAI Brands LLC for approximately $1.7 billion.

– Reckitt Benckiser Group plc (LSE:RB.) acquired Mead Johnson Nutrition Company (NYSE:MJN) for approximately $19.67 billion.

– Tyson Foods, Inc. (NYSE:TSN) acquired AdvancePierre Foods Holdings, Inc. (NYSE:APFH) for approximately $4.44 billion.

Closed Deal Announcement – Peakstone Advises HVAC Service Provider on Sale to Strategic Buyer

May, 2017. Peakstone served as exclusive M&A advisor to Thornton Service, Inc. on its sale to Service Logic, a portfolio company of Sterling Investment Partners.  Thornton Service, Inc. is a leading provider of commercial HVAC service solutions to organizations in the Washington D.C. metropolitan area.  Specializing in preventive maintenance and repair of commercial heating and cooling systems, Thornton Service supports a range of markets, including healthcare, financial, religious, airports, labs, and mission critical data centers, providing both full service and preventive, maintenance-only HVAC contracts to owner-occupied and managed buildings.

Service Logic, headquartered in Charlotte, North Carolina, (www.servicelogic.com) is a provider of mission-critical services for HVAC systems, chilled water systems and building automation and controls to commercial, industrial and institutional clients.  Through its 1,400 dedicated employees, the Company provides a comprehensive suite of solutions to improve the energy efficiency and sustainability of its clients’ facilities.

Terms of the transaction were not disclosed.

For additional information about this transaction, contact:

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

 

About Peakstone

The Peakstone Group 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 – April, 2017

April, 2017

For 2016, strategic buyers accounted for 88% of Automotive M&A transactions. During 2015, strategic buyers accounted for 87% 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 and Software Industry Insight- April, 2017

April, 2017

For 2016, strategic buyers accounted for 91% of technology and software M&A transactions. During 2015, strategic buyers accounted for 95% of the transactions.

Select recent notable publicity announced M&A transactions:

– Cisco Systems, Inc. (NasdaqGS:CSCO) acquired AppDynamics, Inc. for approximately $4.03 billion.

– Siemens Industry, Inc. acquired Mentor Graphics Corporation for approximately $4.82 billion.

– Micro Focus International plc (LSE:MCRO) acquired Hewlett Packard Enterprise Company, Software Business for approximately $8.73 billion.

– Inception Parent, Inc. acquired Rackspace Hosting, Inc. for approximately $4.95 billion.

– Oracle Corporation (NYSE:ORCL) acquired NetSuite Inc. for approximately $7.08 billion.

– Verizon Communications Inc. (NYSE:VZ) acquired Yahoo! Inc., Operating Business for approximately $4.48 billion.

– Microsoft Corporation (NasdaqGS:MSFT) acquired LinkedIn Corporation for approximately $29.31 billion.

Industry Update: Restaurant Update: Spotlight on Fast Casual – April, 2017

April, 2017

For announced transactions, restaurant multiples saw a modest increase from 0.9x revenue in 2016 to 1.3x revenue in year-to-date 2017.

Recent notable publicly announced M&A transactions:

– Peakstone advises PepperJax Grill on sale of company to TA Associates.

– JAB Holdings B.V. entered into an agreement to acquire Panera Bread Company for approximately $7 billion. The transaction is expected to close during the third quarter of 2017.

– Darden Restaurants, Inc. acquired Cheddar’s Casual Cafe, Inc. for approximately $780 million.

– Oak Hill Capital Partners acquired Checkers Drive-In Restaurants for approximately $525 million.

– Restaurant Brands International Inc. acquired Popeyes Louisiana Kitchen, Inc. for approximately $2 billion.

– Golden Gate Capital acquired Bob Evans Farms, LLC for approximately $565 million.

– Cortland Capital Market Services LLC entered in an agreement to acquire Garden Fresh Restaurant Corp. for approximately $98 million.

– REINS international Inc. agreed to acquire Reins International (USA) Co Ltd for approximately $87 million.

– BDT Capital Partners made a significant investment in Lou Malnati’s for an undisclosed sum.

– Roark Capital Group acquired majority stake in Jimmy John’s Franchise, LLC for an undisclosed amount