Industry Update: E-Commerce M&A – June, 2015

June, 2015

The ecommerce industry continues to see strong activity. Year-to-date ecommerce 2015 transaction volume of 145 deals is on pace with record 2014 levels. During 2014, there were 375 ecommerce transactions, an increase of over 12% from the prior year.

Strategic buyers continue to lead the way for ecommerce transactions. Year-to-date 2015, strategic buyers accounted for 85% of the buyers with financial buyers making up the difference. During 2014, ecommerce strategic buyers accounted for just over 85% of the buyers.

For announced transactions (albeit a limited sample size), ecommerce multiples saw a modest increase from 10.5x EBITDA and 0.7x revenue in 2014 to 11.2x EBITDA and 0.9x revenue year-to-date 2015.

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

Notable publicly announced 2015 transactions:
– Gamestop entered into a definitive agreement to acquire Geeknet for approximately $130 million.
– Bluestem Brands signed a definitive agreement to acquire Orchard Brands for approximately $410 million.
– Expedia entered into a definitive agreement to acquire Orbitz for $1.4 billion.

Closed Deal Announcement – Peakstone Advises RealTruck.com on Transaction

Closed Deal Announcement – Peakstone Serves as Exclusive Financial Advisor to eComfort.com on Sale to Power Equipment Direct

June, 2015.  Peakstone serves as exclusive financial advisor to Ecomfort Holdings Inc. on the sale transaction to Power Equipment Direct.  eComfort.com, based in Buffalo Grove, Illinois, is a leading online retailer of HVAC and related equipment to retail consumers.  Powerequipmentdirect.com, based in Bolingbrook, IL, is a leading online retailer of outdoor power equipment.

“The Peakstone team was instrumental in helping us get to the right deal with the right acquirer.  They gave me the support I needed to make it through our first ever M&A process,” said Pavel Sokolovsky, chief executive officer and co-founder of eComfort.”

Peakstone is the leading investment bank to E-Commerce companies, completing numerous M&A and capital raising transactions in this sector.

Terms of the transaction were not disclosed.

For additional information about this transaction, contact:
Alex Fridman, Managing Director, 312-346-7303, afridman@peakstone.com
Steve Royko, Managing Director, 608-770-1009, sroyko@peakstone.com

About Peakstone

Peakstone is an 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.

Closed Deal Announcement – Peakstone Serves as Exclusive Financial Advisor to Precision Spine on Recapitalization Transaction with MC Credit Partners LP

February, 2015.  Peakstone serves as exclusive financial advisor to Precision Spine, Inc. on recapitalization transaction with MC Credit Partners.  Precision Spine is a rapidly growing, innovative developer and manufacturer of implants for spinal surgery.

“This financing transaction is an important milestone for Precision Spine,” said Jim Pastena, Precision Spine’s Chairman and Chief Executive Officer.  “It positions the company to pursue an aggressive growth strategy by continuing to introduce innovative new products and confidently seek strategic acquisitions.  The spinal implant market is in a period of consolidation, and we believe Precision Spine will be an acquirer of choice for many smaller firms seeking an exit.”

“Peakstone has been a tremendous resource for Precision Spine,” continued Mr. Pastena.  “The Peakstone team delivered a creative and flexible financing solution with a lender that has the ability to deploy additional capital to fund our growth.  Peakstone worked through a number of complex issues.  They demonstrated resourcefulness, diligence, and creativity during the process, and worked very effectively with our management team.”

“We are very excited to partner with Precision Spine and its management team.  We see them as a leader in the spinal implant industry and are looking forward to supporting their continued growth and success.  Peakstone was essential to completing this transaction, and their team did outstanding work facilitating the transaction to a successful close,” said Jeff Kelly, Managing Director of MC Credit Partners LP.

For additional information about this transaction, contact:

Jeff Temple, Managing Director, 312-204-7301, jtemple@peakstone.com

About Peakstone

Peakstone is an 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.

Closed Deal Announcement – Peakstone Serves as M&A Advisor on Outward Hound’s purchase of Bionic Pet Products

January 2015.  Outward Hound, a portfolio company of The Riverside Company, has acquired Bionic Pet Products, a maker of dog toys, as an add-on to its Outward Hound platform company. Peakstone initiated and led this transaction. This is the first add-on acquisition for Outward Hound since being acquired by Riverside in August 2013.

Outward Hound, formerly known as Kyjen Company, is a designer and distributor of branded dog toys based in Centennial, CO.

“The Bionic brand is synonymous with indestructible dog products that can withstand even the most aggressive chewers. Bionic is an ideal, synergistic partner for Outward Hound that strengthens our position as a leading pet company creating innovative products that engage and excite both dogs and their owners,” said Kyle Hansen of Outward Hound.

“We’re excited about bringing Bionic’s fantastic products to millions of new consumers,” said Riverside Vice President Steve Rice. “Bionic offers some of the most durable and fun dog toys in the market today and will add an exciting new dimension to the Outward Hound portfolio.”

Brad Curtis, who leads Peakstone’s  pet and animal care practice, led the transaction. Peakstone continues to focus on the pet products space and will be in attendance at the Global Pet Expo in Orlando in March to continue to work with clients in the sector seeking strategic options and growth capital solutions.

Peakstone continues to be one of the most active independent investment banks focused on the pet products industry, having closed numerous transactions in the sector.

The Riverside Company

The Riverside Company acquires businesses that have valuations of up to $250 million. Since its founding in 1988, Riverside has invested in more than 370 transactions and the firm’s international portfolio includes more than 75 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London.

About The Peakstone Group

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. For additional information, please visit our website, www.peakstone.com

Peakstone Awarded Strategic Acquisition of the Year at the 13th Annual M&A Advisor Awards

January 2015. Peakstone is pleased to announce that it has been awarded Corporate/Strategic Acquisition of the Year for the 13th Annual M&A Advisor Awards.

Peakstone was the exclusive financial advisor to The Allstate Companies (Allstate Insulation Corporation, Allstate Insulation, LLC, State Insulation Corporation, and State Laminating Corporation), in the sale of its businesses to Distribution International, Inc., a portfolio company of Audax Private Equity.

“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 of The M&A Advisor.  While our industry has undergone significant transformation since our first awards were presented 12 years ago, we are convinced, more than ever before, that M&A is a driving force of the economy.  It is truly an honor to recognize Peakstone as a winner in their category amongst many qualified investment banking firms.

“The Peakstone Group, representing the best of the industry, has demonstrated creativity and perseverance in today’s challenging climate,” says Roger Aguinaldo, CEO and Founder of The M&A Advisor.

For additional information regarding this transaction contact:
Anup Agarwal, Managing Director, 312-204-7300, aagarwal@peakstone.com
Brad Curtis, Managing Director, 312-204-7300, bcurtis@peakstone.com

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 The Peakstone Group

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.  Please visit our website, www.peakstone.com, or contact Carolyn Henson at chenson@peakstone.com for additional information.

Closed Deal Announcement – Peakstone Serves as Exclusive Financial Advisor to Ashford.com on Recapitalization Transaction with Prudential Capital Partners

December 2014.  Peakstone serves as exclusive financial advisor to Ashford.com on recapitalization transaction with Prudential Capital Partners. Ashford.com is the leading global online retailer of fine watches and specialty jewelry, and sells thousands of products from over 70 brands in over 100 countries annually.

“Peakstone has been an important trusted advisor as we execute on our global strategy. Peakstone delivered and demonstrated unparalleled capabilities in its knowledge of e-commerce, understanding of our business and shareholder objectives as well as access to global capital partners during the process. Peakstone’s leadership and guidance enabled us to complete a transformational transaction that positions us for the next phase of our global growth. ” said Mozes Hoch, Chief Executive Officer of Ashford.com.

“From an investor’s perspective, Peakstone’s e-commerce and execution capabilities were extremely helpful to us. Their ability to get us involved and efficiently lead the due diligence and negotiation process led to a successful transaction close,” said Mark Hoffmeister, Managing Director and Principal, Prudential Capital Partners.

Peakstone has the leading middle market practice in E-Commerce and has completed numerous transactions in the sector.

Terms of the transaction were not disclosed.

For additional information about this transaction, contact:

Alex Fridman, Managing Director, 312-204-7303, afridman@peakstone.com

About The Peakstone Group

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. Please visit our website, peakstone.com.

About Prudential Capital Partners

Prudential Capital Partners is the middle-market mezzanine and structured equity business sponsored by Prudential Capital Group. Prudential Capital Group has been a leading provider of private debt, mezzanine and equity securities to companies worldwide for more than 70 years.  Managing a portfolio of $69.1 billion as of September 30, 2014, Prudential Capital offers senior debt and mezzanine capital, leveraged leases, credit tenant leases, and equipment finance to companies, worldwide.  The global regional office network has locations in Atlanta, Chicago, Dallas, Frankfurt, London, Los Angeles, Minneapolis, Newark, N.J., New York, Paris and San Francisco. For more information, visit www.prudentialcapitalgroup.com.

Closed Deal Announcement – Peakstone Advises The Oak Group on Strategic Alliance with Total Warranty Services, Inc.

October 2014.  The Oak Group has entered into a strategic alliance partnership with Total Warranty Services, Inc. (“TWS”) of West Palm Beach Florida.

Founded in 1975, The Oak Group (including its related affiliates) is a leading master general agency and third-party administrator of vehicle service contracts (“VSCs”) and related ancillary products sold through automotive dealerships nationwide. Oak’s managing principals, Steve Pearl and John Peterson, are two of the most respected industry leaders in the Automotive F&I industry and pioneers in product innovation in the F&I marketplace. They have built a highly successful agency that is also a leader in reinsurance, providing customized programs for automotive dealerships.

“Peakstone’s dedicated Auto F&I practice team, led by Brad Curtis, delivered us a terrific outcome and found us a great strategic partner to extend upon our longstanding reputation as a leader and innovator in Auto F&I products and administration,” said Steve Pearl. “Peakstone developed and executed on a highly targeted strategy and led every aspect of the process in a highly efficient and discrete manner and brought us a partner in TWS that will greatly benefit Oak’s customers by bringing additional strategic resources to the Oak platform,” Pearl said. John Peterson, added, “Peakstone delivered us numerous strategic options that enabled us to select the best partner for Oak employees and stakeholders for accelerated growth. We are extremely pleased with the result and we could not have found a better partner in TWS to build upon the Oak franchise.”

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

The Peakstone Group served as exclusive financial advisor to The Oak Group in connection with this transaction. Terms of the transaction were not disclosed.

For additional information please contact:

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

About The Peakstone Group

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. Please visit our website, peakstone.com.

Peakstone Selected as a Finalist for the 13th Annual M&A Advisor Awards

September 2014. Peakstone is pleased to announce that it has been selected as a finalist for Corporate/Strategic Acquisition of the Year for the 13th Annual M&A Advisor Awards.

“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 of The M&A Advisor.  While our industry has undergone significant transformation since our first awards were presented 12 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 2014 award finalists have made.”

“The Peakstone Group, representing the best of the industry, has demonstrated creativity and perseverance in today’s challenging climate,” says Roger Aguinaldo, CEO and Founder of The M&A Advisor.  Peakstone was named as a finalist for its role as exclusive financial advisor to The Allstate Companies (Allstate Insulation Corporation, Allstate Insulation, LLC, State Insulation Corporation, and State Laminating Corporation), in the sale of its businesses to Distribution International, Inc., a portfolio company of Audax Private Equity.

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.

For more information regarding this transaction, please contact:
Anup Agarwal, Managing Director, 312-204-7300, aagarwal@peakstone.com
Brad Curtis, Managing Director, 312-204-7306, bcurtis@peakstone.com

About The Peakstone Group

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. Please visit our website, peakstone.com, or contact Carolyn Henson at chenson@peakstone.com for additional information.

Closed Deal Announcement – Peakstone Advises Food Evolution on Sale Transaction

September 2014.  Food Evolution has been sold to Akoya Capital Partners LLC in partnership with Balance Point Capital Partners, Plexus Capital, LLC and current management. Food Evolution, based in Chicago, IL, is a leading producer of upscale convenience foodservice products and fresh outsourced commissary solutions. The Company develops and produces a full range of upscale “grab-and-go” sandwiches, wraps, salads, and other custom food products for a wide variety of customers in the specialty grocery, airport food concessions and institutional foodservice markets.

“The Peakstone team was invaluable to the transaction process. They developed and executed on a successful strategy to find the right partner that shares our strategic vision for Food Evolution and can help drive continued growth for the business” said Bret Schultz, President of Food Evolution.

Click here to view the press release.

The Peakstone Group served as exclusive M&A advisor to Food Evolution in connection with this transaction. Terms of the transaction were not disclosed.

For additional information about this transaction, contact:
Eric Dziedzic, Managing Director, 312-346-7314, eric@peakstone.com
Mark Horita, Managing Director, 312-346-7308, mhorita@peakstone.com

About The Peakstone Group

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. Please visit our website, peakstone.com.