Industry Update: Food and Beverage Industry M&A Update – December, 2016

December, 2016.

For year-to-date 2016, total announced transactions of 357 deals are exceeding 2015 record levels. There were 351 transactions during 2015.

For announced transactions, Food and Beverage (“F&B”) multiples saw a modest decrease from 13.4x Enterprise Value to EBITDA to 11.0x.

Many F&B categories continue to outperform the S&P 500.

Notable publicly announced recent 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.

– B&G Foods, Inc. acquired Victoria Fine Foods Holding Company and Victoria Fine Foods, Inc. for approximately $70 million.

– Pilgrim’s Pride Corporation acquired GNP Company for approximately $350 million.

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

– Onex Corporation acquired Moran Foods, LLC from Supervalu, Inc. for approximately $1.4 billion.

– ConAgra Foods acquired Frontera Foods including the Frontera, Red Fork and Salpica brands from the Frontera Hospitality Group for an undisclosed amount.

– B&G Foods North America Inc. acquired ACH Food Companies, Inc., Spices and Seasonings Business for approximately $365 million.

Industry Update: Automotive Industry M&A Update – December, 2016

December, 2016.

For year-to-date 2016, total announced transactions of 52 deals are on pace with 2015 record levels. There were 55 transactions during 2015.

For year-to-date 2016, strategic buyers accounted for 96% of Automotive M&A transactions. During 2015, strategic buyers accounted for 93% of the transactions.

For announced transactions, Automotive multiples saw a modest decrease from 12.3x to 10.5x Enterprise Value to EBITDA in 2015 and 2016, respectively.

Many Automotive categories continue to outperform the S&P 500.

Select recent notable publicly announced M&A transactions:

– American Axle & Manufacturing Holdings Inc. entered into a definitive agreement to acquire Metaldyne Performance Group Inc. for approximately $1.5 billion.

– Polaris Industries Inc. entered into an agreement to acquire Transamerican Auto Parts Company, LLC for approximately $670 million.

– Octavius Corporation entered into a definitive agreement to acquire Grand Design RV from Summit Partners LLP and others for approximately $500 million.

– General Motors Company agreed to acquire Cruise Automation, Inc. from Signia Venture Partners, Spark Capital Partners, LLC, Felicis Ventures and others for approximately $600 million.

– Ningbo Joyson Electronic Corp. entered into a definitive agreement to acquire Key Safety Systems, Inc. from funds managed by FountainVest Partners, Canada Pension Plan Investment Board and Crestview Partners, L.P. for approximately $920 million.

Peakstone Selected as Finalist for M&A Investment Banking Firm of the Year

December, 2016. Peakstone is pleased to announce that we have been selected as a finalist for the 15th Annual M&A Advisor Awards for Investment Banking Firm of the Year.

“Since the inception of the M&A Advisor Awards in 2002, we have been recognizing the leading dealmakers, firms and transactions. And each year we celebrate the creativity, perseverance and ingenuity of our industry’s professionals”, says David Fergusson, President and Co-Chief Executive Officer of The M&A Advisor. “While our industry has undergone significant transformation since our first awards were presented 15 years ago, we are convinced, more than ever before, that M&A is a driving force of the economy. It is truly an honor for our firm to be able to recognize the contribution that the 2016 award finalists have made.”

About The M&A Advisor

The M&A Advisor was founded in 1998 to offer insights and intelligence on M&A activities. Over the past sixteen years, through our research, reporting, publishing, symposiums and awards we have established the world’s premier network of mergers and acquisitions, restructuring and financing professionals. For more information, please visit www.maadvisor.com or contact The M&A Advisor at 718-997-7900.

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 or contact Alex Fridman, alex@peakstone.com or 312-204-7300.

Industry Update: Packaging Industry M&A Update – November, 2016

November, 2016.

Packaging M&A continues to see strong activity. Year-to-date 2016 transaction volume of 50 deals is just below pace of 2015 levels.

For the year-to-date 2016 period, strategic buyers accounted for 90% of the packaging M&A transactions with financial buyers making up the difference. During 2015, strategic buyers accounted for approximately 80% of the transactions.

Peakstone equally weighted packaging index continues to outperform the S&P 500.

Notable publicly announced 2016 transactions:

‒ Stone Canyon Industries acquired BWAY Parent Company for approximately $2.4 billion

‒ Berry Plastics Group acquired AEP Industries for approximately $769 million.

‒ Packaging Corporation of America acquired Tim-Bar Corporation for approximately $386 million.

‒ Amcor Rigid Plastics acquired Rigid Plastics Blow Molding Operations for approximately $280 million.

‒ Packaging Corporation of America acquired Columbus Container for approximately $100 million.

Industry Update: Transportation & Logistics Industry M&A Update – November, 2016

November, 2016.

Transportation and logistics M&A continues to see strong activity. YTD 2016 transaction volume of 99 exceeded 2015 levels. During 2015, there were 93 transactions.

For YTD 2016, strategic buyers accounted for 96% of the transportation and logistics M&A transactions with financial buyers making up the difference. During 2015, strategic buyers accounted for approximately 87% of the transactions.

For announced transactions, transportation and logistics multiples saw 9.4x EBITDA and 0.7x revenue in YTD 2016.

Peakstone equally weighted transportation and logistics index is slightly underperforming the S&P 500.

Notable publicly announced transactions:

‒General Logistics Systems acquired Golden State Overnight Delivery Service Inc. for approximately $90 million.
‒Menzies Aviation Inc. entered into a definitive agreement to acquire Aircraft Service International Group, Inc. for approximately $200 million.
‒Genesee & Wyoming Inc. entered into a definitive agreement to acquire Providence and Worcester Railroad Company for approximately $130 million.
‒Matson Logistics, Inc. acquired Span-Alaska Transportation, Inc. for approximately $200 million.

Industry Update: E-Commerce Industry M&A Update – October, 2016

October, 2016.

E-Commerce M&A continues to see strong activity. YTD 2016 transaction volume of 327 exceeded 2015 levels.  During 2015, there were 320 transactions.

For Year-to-Date 2016, strategic buyers accounted for 87% of the e-commerce M&A transactions with financial buyers making up the difference.  During 2015, strategic buyers accounted for approximately 80% of the transactions.

For announced transactions, e-commerce multiples saw 9.3x EBITDA and 1.3x revenue in YTD 2016.

Peakstone equally weighted e-commerce index continues to outperform the S&P 500.

Notable publicly announced transactions:

– Tractor Supply Company acquired Petsense, Inc. for approximately $120 million.

– UniFirst Corp. acquired Arrow Uniform-Taylor LLC for approximately $120 million.

– LeftLane Sports, Inc. acquired Retail Innovation Group, Inc. for approximately $19 million.

– Hudson’s Bay Company entered into a definitive agreement to acquire Gilt Groupe Inc. for approximately $250 million.

Industry Update: Industrial & Manufacturing M&A – October 2016

October, 2016.

For year-to-date 2016, strategic buyers accounted for approximately 93% of industrial & manufacturing M&A transactions. During 2015, strategic buyers accounted for just over 90% of the transactions.

For closed transactions, industrial & manufacturing transaction multiples increased from 8.4x EBITDA and 1.3x revenue in 2014 to 10.5x EBITDA and 1.1x revenue in 2015

Notable publicly announced 2016 M&A transactions:

– Tesla Motors, Inc. made a proposal to acquire SolarCity Corporation for approximately $7.1 billion

– Cintas Corporation entered into a definitive agreement to acquire G&K Services, Inc. for approximately of $2.2 billion

– Teleperformance SE entered into a definitive agreement to acquire LanguageLine Solutions, Inc. for approximately $1.5 billion

– Konecranes Plc agreed to acquire Terex Corporation, Material Handling and Port Solutions business for approximately $1.3 billion

– Sovran Acquisition LP entered into a definitive agreement to acquire Lifestorage, LP for $1.3 billion

Notable IPO’s include Forterra, Green Plains Partners LP, Milacron Holdings, JELD-WEN Holdings, Inc. and Atkore International Group, Inc.

Dan Sholem joins The Peakstone Group as Managing Director

October, 2016. Dan Sholem is a Managing Director at Peakstone Group where he is responsible for transaction origination and execution. Dan brings over 20 years of experience in corporate finance, primarily focused on advising clients on debt and equity financing to fund a variety of equipment transactions. Dan’s client advisory industry experience includes aviation, construction, commercial lending, electronics manufacturing, medical device and technology services.

Prior to forming his own advisory practice, Dan worked for Comdisco Electronics Group in San Jose, California where his team managed a $2 billion portfolio of equipment leased to global semiconductor manufacturers. He has also worked in the aircraft finance industry where he remarketed commercial and corporate aircraft.

Dan is a First Tee volunteer and former board member at the Don Moyer Boys & Girls Club in Champaign, Illinois and serves on the University of Illinois Willard Airport (CMI) Advisory Board.

Dan also serves as an Adjunct Lecturer in the Finance Department of the College of Business at the University of Illinois (Urbana-Champaign) where he teaches Growth Corp Capital Funding.

Dan earned a B.A. from Southern Methodist University and a MBA from Saint Louis University.

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 or contact Carolyn Henson, chenson@peakstone.com or 312-204-7300.

Peakstone Closes 25 Deals in 25 Months

In the last 25 months, Peakstone has closed the following 25 transactions. In each case, we solved a unique capital need for a business owner.  We welcome discussions with business owners interested in liquidity, growth capital, or other needs.

#25: Sale of Brett Equipment (distributor of trailer parts and hitches) to SOGID

#24: Sale of UPF Services (technology solutions to real estate space) to Chronos Solutions

#23: Strategic partnership with a leading service provider for vehicle service contracts

#22: Majority Sale of Pepperjax (fast casual restaurant) to TA Associates

#21: Sale of H A Advantage (transportation management technology solutions) to AFN

#20: Bison Group acquisition of CYLX (engineering services)

#19: Majority Sale of Clearbrook Farms (natural jams and jellies) to Glencoe Capital

#18: Sale of certain Glen Oak assets (lumber and milling) to Custom Floor Finishing

#17: Sale of Petstages (dog and cat products) to Outward Hound (Riverside Company)

#16: ABCOMRENTS acquisition of Rent Fusion (event technology solutions)

#15: Simply Color acquisition of ShootQ (SaaS management system for photographers)

#14: Sale of Clarke Group (engineering services) to Red Oak Growth Partners

#13: Sale of Anderson Machining (precision CNC contract manufacturing) to Basin Holdings

#12: Sale of Technomic (information services to food industry) to Winsight

#11: Sale of certain Glen Oak assets (lumber and milling) to Menzner Lumber & Supply

#10: Sale of Hazen Final Mile (white glove delivery business) to TransForce

#9: Sale of RealTruck.com (internet retailer of truck accessories) to THI (TA company)

#8: Sale of eComfort.com (internet retailer of HVAC products) to PED (Ferguson division)

#7: Recapitalization of Precision Spine (implants provider for spinal surgery) with MC Credit

#6: Outward Hound’s acquisition of Bionic Pet Products (maker of dog toys)

#5: Recapitalization of Ashford.com (internet retailer of watches/jewelry) with Prudential

#4: Sale of Oak Group (vehicle service contracts) to Total Warranty Services

#3: Sale of Food Evolution (upscale foodservice products) to Akoya and Balance Point

#2: Sale of Allstate (insulation and HVAC) to Distribution International (Audax company)

#1: Sale of Duro Bag (manufacturer of paper bags) to Hilex Poly (Wind Point company)

About Peakstone

Peakstone is an investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients.  The Peakstone team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars.

Industry Update: Food & Beverage M&A Update – October, 2016

October, 2016.

For year-to-date 2016, total announced transactions of 281 deals are on pace with 2015 record levels. There were 351 transactions during 2015.

For announced transactions, Food and Beverage (“F&B”) multiples saw a modest decrease from 13.4x Enterprise Value to EBITDA to 12.1x.

Many F&B categories continue to outperform the S&P 500.

Notable publicly announced recent M&A transactions:

– ConAgra Foods acquired Frontera Foods including the Frontera, Red Fork and Salpica brands from the Frontera Hospitality Group for an undisclosed amount.

– B&G Foods North America Inc. acquired ACH Food Companies, Inc., Spices and Seasonings Business for approximately $365 million.

– Cott Corporation acquired S&D Coffee, Inc. for approximately $355 million.

– UTZ Quality Foods, Inc. acquired Golden Enterprises Inc. for approximately $144 million.

– Gores Holdings, Inc. acquired Hostess Brands, LLC for approximately $2.2 billion.

– Dean Foods Company acquired Friendly’s Ice Cream, LLC, Manufacturing and retail ice cream business for approximately $155 million.

– Apollo Global Management, LLC entered into a definitive agreement to acquire The Fresh Market, Inc. for approximately $1.3 billion.

– 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.