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

July, 2016.

Packaging M&A continues to see steady activity. Year-to-date 2016 transaction volume of 32 deals is just below pace of 2015 levels.

For the year-to-date 2016 period, strategic buyers accounted for 91% of the packaging M&A transactions with financial buyers making up the difference. During 2015, strategic buyers accounted for approximately 81% of the transactions.

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

Notable publicly announced 2015 and 2016 transactions:

‒ Stone Canyon Industries announced it will acquire BWAY Parent Company for $2.4 billion in June 2016.

‒ 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.

Industry Update: Consumer & Retail Industry M&A Update – June, 2016

June, 2016.

For year-to-date 2016, strategic buyers accounted for 92% of Consumer & Retail M&A transactions

– During 2015, strategic buyers accounted for 87% of the transaction

For reported closed transactions, Consumer & Retail transaction multiples have ranged between 8x and 12x since 2010

Select recent notable publicly announced M&A transactions:

– Samsonite International entered into a merger agreement to acquire Tumi Holdings, Inc. for approximately $1.8 billion

– JAB Beech entered into a definitive agreement to acquire Krispy Kreme Doughnuts, Inc. for $1.3 billion

– SBE Entertainment Group, LLC entered into a definitive agreement to acquire Morgans Hotel Group Co. for approximately $790 million

– GP Investments Acquisitions Corp. entered into a definitive agreement to acquire WKI Holding Company, Inc. for approximately $500 million

– Hunter Douglas entered into a definitive agreement to acquire window coverings business from Rubbermaid, Inc. for approximately $270 million

– DS Healthcare Group, Inc. entered into a stock purchase agreement to acquire WR Group, Inc. for approximately $42 million

Notable IPO’s include US Foods Holdings, MGM Growth Properties, Atkore International Group and Paragon Commercial Corp.

Industry Update: Business Services Industry M&A Update – June, 2016

June, 2016.

For YTD 2016, strategic buyers accounted for 91% of Business Services M&A transactions. During 2015, strategic buyers accounted for 94% of the transactions.

Many Business Services categories continue to outperform the S&P 500.

Notable publicly announced 2016 M&A transactions:

– Envision Healthcare Holdings, Inc. signed a definitive merger agreement to acquire AmSurg Corp. for approximately $7.6 billion.

– Thoma Bravo, LLC entered into a definitive agreement to acquire Qlik Technologies, Inc. for approximately $2.9 billion.

– Platinum Equity, LLC signed a definitive agreement to acquire Electro Rent Corporation for approximately $320 million.

– Vista Equity Partners Fund VI, L.P. entered into an agreement to acquire Marketo, Inc. for approximately $1.7 billion.

– Quintiles Transnational Holdings Inc. signed an agreement to acquire IMS Health Holdings, Inc. for approximately $8.8 billion.

– Leonard Green & Partners, L.P. entered into a definitive agreement to acquire ExamWorks Group, Inc. for approximately $2.0 billion.

Industry Update: Industrial & Manufacturing Industry M&A Update – June, 2016

June, 2016.

For year-to-date 2016, strategic buyers accounted for 91% 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:

– American Securities signed a definitive agreement to acquire Blount International, Inc. for $882 million

– Acon Investment, Fairfax Financial Holdings and Albright Capital Management made an offer to acquire APR Energy plc for approximately $771 million

– LKQ Corporation entered into a definitive merger agreement to acquire Pittsburgh Glass Works LLC for approximately $635 million

– Southern Company entered into an agreement to acquire PowerSecure International, Inc. for approximately $445 million

– Salini Impregilo S.p.A. agreed to acquire Lane Industries, Inc. for approximately $410 million

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

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

June, 2016.

E-Commerce M&A continues to see strong activity. YTD 2016 transaction volume of 166 deals is on pace with 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 (albeit a limited sample size), e-commerce multiples saw 9.7x EBITDA and 2.0x revenue in Year-to-Date 2016.

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

Notable publicly announced transactions:

– Salesforce.com Inc. announced the acquisition of Demandware Inc. for approximately $2.8 billion.

– GP Investments Acquisition Corp. entered into a definitive agreement to acquire WKI Holding Company, Inc. for approximately $741 million.

– MKS Instruments, Inc. signed a merger agreement to acquire Newport Corp. for approximately $1 billion.

– Dalian Wanda Group Corporation Ltd. agreed to acquire Legend Pictures, LLC for approximately $3.5 billion.

Industry Update: Pet Industry M&A – May, 2016

May, 2016.

For YTD 2016, strategic buyers accounted for 79% of Pet Industry M&A transactions. During 2015, strategic buyers accounted for approximately 89% of the transactions.

Notable recent M&A transactions:

– CVC Capital Partners Limited and Canada Pension Plan Investment Board signed a definitive agreement to acquire PETCO Animal Supplies, Inc. for approximately $4.6 billion

– Central Garden & Pet Company entered into an asset purchase agreement to acquire Dallas Manufacturing Company, Inc. for approximately $61 million.

– Patterson Companies, Inc. acquired Animal Health International, Inc. for approximately $1.1 billion.

– Renovo Capital and Summit Investment Management entered into an asset purchase agreement to acquire Dallas Manufacturing Company for approximately $37 million.

– Outward Hound, a Riverside portfolio Company, acquired Petstages, Inc. for an undisclosed amount.

– Outward Hound, a Riverside portfolio Company, acquired Bionic for an undisclosed amount.

Industry Update: Restaurant Update: Spotlight on Fast Casual – May, 2016

May, 2016.

For YTD 2016, strategic buyers account for 90% of restaurant M&A transactions. In 2015, strategic buyers accounted for 80% of the transactions.

Restaurant multiples in announced transactions have been consistent over the past several years, at approximately 10x enterprise value to EBITDA and 1x enterprise value to revenue.

Recent notable publicly announced M&A transactions:

– Brinker International, Inc. entered into a definitive agreement to acquire Pepper Dining, Inc. for approximately $106 million.

– McCormick & Company, Incorporated signed a definitive agreement to acquire One World Foods, Inc. for approximately $100 million.

– NRD Capital Management signed a definitive agreement to acquire Frisch’s Restaurants, Inc. for approximately $177 million.

– Levy Acquisition Corp. entered into a definitive agreement to acquire Del Taco Holdings, Inc. for $500 million.

– AMC Wings, Inc. entered into a definitive agreement to acquire A Sure Wing, L.L.C. for $54 million.

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

May, 2016.

Food and Beverage (“F&B”) M&A continues to see strong activity. Q1 2016 had a transaction volume of 117 deals which is just under Q4 2015 record levels, 127 deals in Q4 2015.

For YTD 2016, strategic buyers accounted for 90% of F&B M&A transactions. During 2015, strategic buyers accounted for 87% of the transactions.

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

Notable publicly announced Q1 2016 M&A transactions:

– InvenTrust Properties Corp. acquired Stevenson Ranch Plaza in Los Angeles, California for approximately $73 million.

– Constellation Brands Inc. entered into a definitive agreement to acquire Huneeus Vintners LLC for approximately $285 million.

-United Natural Foods, Inc. acquired Nor-Cal Produce, Inc. for approximately $69 million.

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

– Sazerac Company, Inc. entered into an agreement to acquire the Southern Comfort and Tuaca brands from Brown-Forman Corporation for approximately $544 million.

– Glencoe acquired Clearbrook Farms for an undisclosed amount.  Peakstone was the advisor to Clearbrook on this transaction.

Christian Colucci Joins Peakstone as Managing Director

April, 2016. Christian Colucci is a Managing Director at The Peakstone Group with over 15 years of investment banking experience. Christian has completed over 50 M&A and capital raising advisory assignments for middle market and large capitalization clients mostly in the industrial and consumer sectors. Christian has primarily focused on the middle market throughout his career and has completed transactions up to $4 billion in enterprise value.

Prior to joining Peakstone, Christian was instrumental in building the industrial technology investment banking practice at Robert W. Baird and completed several of the firm’s largest transactions. Christian began his career in the Mergers & Acquisitions group of Banc of America Securities and worked in the industrial investment banking groups of Bear Stearns and Deutsche Bank in their New York and Chicago offices.

Christian has a MBA from the University of Chicago, with High Honors and Beta Gamma Sigma distinction, and a BA in Economics from the University of Chicago.

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.

Andy Savarie Joins The Peakstone Group as Managing Director

April, 2016. Andy Savarie is a Managing Director at The Peakstone Group and has over 25 years of investment banking and entrepreneurial business experience. Andy has advised clients of all sizes on well over 100 M&A and financing transactions totaling over $125 billion in market value across a variety of industries including general industrial, automotive, technology, healthcare, financial services and telecommunications. Andy has assisted clients with a wide range of transactions, including mergers, acquisitions, divestitures, joint ventures, recapitalizations, initial public offerings, common stock and convertible equity issuance, and high yield and investment grade debt financings.

Andy began his investment banking career at Morgan Stanley where he spent almost ten years as a generalist and member of the firm’s industrial practice and eventually as head of the automotive group. Andy later joined the industrial practices and ran the automotive groups as a Managing Director at both Banc of America Securities and Bear Stearns. In 2008, Andy became a co-founder and senior executive of Carbon Motors Corporation, an early stage company focused on developing a highly innovative purpose-built law enforcement vehicle, working closely with a team of nearly 50 automotive suppliers, including leading players like BMW, Lotus, Bosch and Lear. Just prior to joining Peakstone, Andy spent two years as a Managing Director in the industrial group at KPMG Corporate Finance where he ran the firm’s automotive investment banking practice and worked with a wide variety of middle market clients in the industrial and automotive sectors on a range of strategic M&A and growth capital financing transactions.

Prior to his career as an investment banker and entrepreneur, Andy also spent four years as an officer in the United States Air Force working on an advanced satellite communications system.

Andy holds an MBA, with distinction, from The Kellogg Graduate School of Management at Northwestern University and a Bachelor of Science degree in Electrical Engineering from Duke 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.