Industry Update: Transportation & Logistics M&A – September 2015

September, 2015

U.S. transportation & logistics M&A continues to see strong activity. Year-to-date 2015 transaction volume of 93 deals is on pace to surpass 2014 deal volume of 99 transactions.

For the year-to-date 2015 period, strategic buyers accounted for 87% of the transportation & logistics M&A transactions with financial buyers making up the difference. During 2014, strategic buyers accounted for approximately 81% of the transactions.

Asset-light transport and logistics companies are trading at premium valuations compared to the S&P 500.

Many larger, publicly traded transportation and logistics companies have been very active in pursuing acquisitions.

Notable publicly announced 2015 transactions:
– XPO Logistics entered into a definitive agreement to acquire Con-way for approximately $3.5 billion.
– United Parcel Service acquired Coyote Logistics for approximately $1.8 billion.
– Apax Partners acquired Quality Distribution for approximately $780 million.
– Echo Global Logistics acquired Command Transportation for approximately $410 million.

Closed Deal Announcement – Peakstone Advises Clarke Group on Sale Transaction

September, 2015. Peakstone served as exclusive financial advisor to Clarke Engineering Services and Acquire Automation (collectively, “Clarke Group”) on its sale to Red Oak Growth Partners, a growth-oriented private investment firm, and management.

Founded in 1997 in Fishers, Indiana, Clarke Group is a leading provider of mission-critical engineering, machine vision and validation solutions to blue-chip clients in the life sciences, food and beverage, consumer products, packaging, and industrial end-markets. The Company leverages its in-house expertise, deep understanding of automation systems, collaborative partnerships with leading equipment suppliers and extensive experience resulting from prior project work to develop highly customized solutions for manufacturing processes that require world-class quality control. Click here to learn more about Clarke Group.

Clarke Group’s existing management team, led by President John Duffin, will continue to lead Clarke Group and oversee the day-to-day operations of the business.

“This transaction accomplished all of my objectives, enabling the team that worked so closely with my husband to partner with an equity team that understands engineering and automation services.  I am appreciative of the efforts of The Peakstone Group to identify the ideal partners and craft a transaction that achieved the objectives of the company, management and my family, in a manner attractive to Red Oak and its co-investors,” said Jane Clarke, owner of Clarke Group.

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

For additional information about this transaction, contact:
Nick Clementi, Managing Director, 763-478-1777, nclementi@peakstone.com
Eric Dziedzic, Managing Director, 312-346-7314, eric@peakstone.com

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: Packaging M&A – September 2015

September, 2015

Packaging M&A continues to see strong activity. Year-to-date 2015 transaction volume of 50 deals is just below pace of 2014 record levels.

For the year-to-date 2015 period, strategic buyers accounted for 76% of the packaging M&A transactions with financial buyers making up the difference. During 2014, strategic buyers accounted for approximately 72% of the transactions.

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

Notable publicly announced 2015 transactions:
– WestRock Company acquired SP Fiber for approximately $290 million.
– KapStone acquired Victory Packaging for $640 million.
– Jarden Corp. acquired WNA for approximately $1.4 billion.
– WestRock Company acquired MeadWestvaco Corporation for approximately $11.6 billion.

Closed Deal Announcement – Peakstone Advises Anderson Machining Service on Sale Transaction

September, 2015. Anderson Machining Service, Inc. has been acquired by Basin Holdings, a global energy and industrial holding company. Anderson will operate through Basin Industries, a division of Basin Holdings that manufactures industrial equipment.

Anderson is an established leader in precision CNC contract manufacturing, specializing in machined components and assemblies that serve a range of industrial OEM applications in the hydraulic, recreational vehicle and energy industries. Founded in 1980 as a family-owned business, the company now has more than 150 employees and over 60,000 sq. ft. of manufacturing space in Jefferson, Wisconsin and Whitewater, Wisconsin.

Anderson’s existing management team will continue to participate in the leadership and day-to-day operations of the business.

“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 Anderson and can help drive continued growth for the business” said Erik Anderson, Chief Operating Officer of Anderson.

Basin Holdings is a privately held industrial holding company focused on providing market leading products and services to energy companies around the world. Basin’s experienced managers oversee a global platform that offers supply chain management services, oilfield services and specialty equipment manufacturing. Basin is focused on long-term economic value creation and community impact.

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

Click here for the press release.

For additional information about this transaction, contact:
Eric Dziedzic, Managing Director, 312-346-7314, eric@peakstone.com
Steve Royko, Managing Director, 608-236-4490, sroyko@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: E-Commerce M&A – September, 2015

September, 2015

E-Commerce M&A continues to see strong activity. Year-to-date 2015 transaction volume of 216 deals is on pace with record 2014 levels. During 2014, there were 375 transactions, an increase of over 12% from the prior year.

For the year-to-date 2015 period, strategic buyers accounted for 80% of the e-commerce M&A transactions with financial buyers making up the difference. During 2014, strategic buyers accounted for just over 85% of the transactions.

For announced transactions (albeit a limited sample size), e-commerce multiples saw a modest increase from 10.5x EBITDA and 0.7x revenue in 2014 to 10.6x EBITDA and 1.1x revenue year-to-date 2015.

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

Notable publicly announced 2015 transactions:
– QVC, Inc. entered into a definitive agreement to acquire zulily, Inc. for approximately $2.4 billion.
– Gamestop entered into a definitive agreement to acquire Geeknet for approximately $130 million.
– Expedia entered into a definitive agreement to acquire Orbitz for $1.4 billion.

Closed Deal Announcement – Peakstone Advises Technomic on Sale to Winsight

September, 2015.  Peakstone served as exclusive M&A advisor to Technomic Inc. on its sale to Winsight, LLC, formerly known as CSP Business Media.  Technomic is the leading provider of primary and secondary market information and advisory services to the food industry.  Technomic was acquired from its founder, Ron Paul, who spent much of the last 50 years establishing the business as the “go-to” source for food and foodservice industry insights and strategic advice.

“The acquisition of Technomic represents an important step in Winsight’s growth strategy by providing our customers and audiences access to the most credible source of food industry market intelligence,” said Mike Wood, Chief Executive Officer of Winsight. “Winsight’s industry leading print and digital assets, along with its world class events, will act as new platforms from which to broadcast Technomic’s insights.  This is a big win for customers of both businesses as we are now the single source provider of the best content, media platforms, analysis, education, and in-person events across the industries we serve.  Peakstone was essential to completing this transaction, and their team did outstanding work facilitating the transaction to a successful close.”

Technomic’s founder, CEO, and President, Ron Paul, will leave the business to spend more time with family and to pursue personal interests, while the firm’s Executive Vice Presidents, Gary Karp, Bob Goldin, and Darren Tristano, will continue on in their respective roles.  “After many years in this industry, I believe now is the right time to pursue other interests.  I couldn’t be prouder of our employees or their work, and I am confident Winsight will continue building the Technomic brand and supporting our great talent.”  Karp, Goldin, and Tristano echoed Paul’s sentiment in a joint statement. “We are excited for Technomic to join Winsight in delivering critical information and analysis to the marketplace.  Winsight’s growth plan over the next five years presents great opportunities for our employees and expansion opportunities for our business.  Now more than ever, we think the time is right to make investments in the business to expand our offerings so we can help our clients be more successful in their pursuits.  As part of Winsight, we can do that.  The Peakstone team was invaluable to the sale process. They executed on a well thought out strategy to sell Technomic, provided great advice throughout, and guided the transaction to closing efficiently and smoothly.”

Terms of the transaction were not disclosed.

For additional information about this transaction, contact:
Cathy Jaros, Managing Director, 312-262-7735, cjaros@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.

Closed Deal Announcement – Peakstone Advises Glen Oak on Sale to Menzner Lumber & Supply Co.

January, 2016. Glen Oak Lumber & Milling has sold its Kentucky assets and facility to Menzner Lumber & Supply Co., a Marathon, Wisconsin company.

Menzner is a fourth generation family-owned company with operations in Wisconsin, Mississippi, and South Carolina and 350 employees. Menzner Hardwoods’ cabinet and molding products are sold through retailers and dealers throughout the U.S. The acquisition of Glen Oak’s Kentucky business will add strategic production assets and 90 talented employees to Menzner’s operations.

“Steve and the Peakstone team were very thorough and diligent in maximizing the number of potential buyers for our Kentucky operations. They applied a great deal of expertise and resources to bring multiple parties to the table.” said Tom Talbot, owner of Glen Oak.

The transaction was the first of two completed by The Peakstone Group in 2015 in its role as exclusive M&A advisor to Glen Oak. Terms of the transaction were not disclosed.

For additional information about this transaction, contact:
Steve Royko, Managing Director, 608-236-4490, sroyko@peakstone.com

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

Closed Deal Announcement – Peakstone Serves as Exclusive Financial Advisor to Hazen Final Mile on its Sale to TransForce, Inc.

August, 2015.  Peakstone served as exclusive financial advisor to Hazen Final Mile on its sale to Dynamex, a division of TransForce, Inc.  Headquartered in Taylor, Michigan, Hazen Final Mile is a rapidly growing white glove delivery business serving over 20 of the largest metropolitan areas in the United States.  The combined business will operate in over 70 markets.

“Our acquisition by TransForce marks an important milestone for our company,” said Hazen Final Mile President Rick Palmer.  “This is a perfect fit for us.”

“Peakstone has been a tremendous resource for Hazen,” continued Mr. Palmer.  “We were approached by a strategic buyer and the Peakstone team provided great support to complete the transaction.”

Terms of the transaction were not disclosed.

For additional information about this transaction, contact:
Jeff Temple, Managing Director, jtemple@peakstone.com, 312-346-7301

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: Restaurant M&A – August, 2015

August, 2015

For restaurant M&A year-to-date 2015, strategic buyers accounted for 75% of restaurant M&A transactions. During 2014, strategic buyers accounted for just over 80% of the transactions.

For announced transactions (albeit a limited sample size), restaurant multiples saw a modest increase from 10.1x EBITDA and 0.9x revenue in 2014 to 11.1x EBITDA and 1.2x revenue year-to-date 2015.

Peakstone Fast Casual and Coffee indices continue to outperform other restaurant categories as well as the S&P 500.

Notable publicly announced 2015 M&A transactions:
– Brinker International entered into a definitive agreement to acquire Pepper Dining for approximately $106 million.
– McCormick & Co. signed a definitive agreement to acquire One World Foods for approximately $100 million.
– NRD Capital Management signed a definitive agreement to acquire Frisch’s for approximately $177 million.
– Levy Acquisition Corp. entered into a definitive agreement to acquire Del Taco Holdings for $500 million.
– AMC Wings, Inc. entered into a definitive agreement to acquire A Sure Wing, L.L.C. for $54 million.

Notable IPO’s include: Shake Shack, Wingstop, Bojangles and Carrols Restaurant Group, Inc.

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.