Industrials M&A Report - Hyde Park Capital · 09/06/2012 Century Plastics, Inc. Materials Autometal S.A. $36.2 NA N A 09/05/2012 Cobasys, LLC Electrical Equipment Robert Bosch Investment

IndustrialsM&A Report

Q3 2012

HYDE PARK CAPITAL

Member FINRA/SIPC

Investment Banking | Mergers & Acquisitions | Capital Raising

Hyde Park Capital Advisors, LLC701 N. Franklin StreetTampa, FL 33602Tel: 813-383-0202www.hydeparkcapital.com

John Hill Senior Managing Director [email protected](813) 383-0205John McDonaldSenior Managing [email protected](813) 383-0206Keith HodgdonSenior Vice [email protected](813) 383-0208Jeffrey Bridge Vice President [email protected](813) 383-0204Michael [email protected](813) 597-2649Jennifer [email protected](813) 383-0203

HYDE PARK CAPITALInvestment Banking | Mergers & Acquisitions | Capital Raising

Offer Date Issuer Industry SectorTransaction

Type Transaction

Value09/28/12 Casella Waste Systems, Inc. Industrial Services Secondary $4009/27/12 Eagle Materials, Inc. Materials Secondary $14009/20/12 Thermon Group Holdings, Inc. Electrical Equipment Secondary $22009/13/12 Genesee & Wyoming, Inc. Transportation Secondary $22708/17/12 Molycorp, Inc. Materials Secondary $12008/15/12 Hi-Crush Partners LP Materials IPO $19108/09/12 Performant Financial Corp. Industrial Services IPO $8108/08/12 Metals USA Holdings Corp. Materials Secondary $5908/07/12 Aircastle, Ltd. Machinery Secondary $10508/01/12 Spirit Airlines, Inc. Transportation Secondary $194

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Sep-11 Dec-11 Mar-12 Jun-12 Sep-12S&P 500 S&P Global Industrials Sector Index Nasdaq

Capital Markets Overview

2

Public Market Performance (LTM)

Select Equity Offerings – Industrials (Q3 2012)

Public Company Market Performance by Sector

Source: S&P Capital IQ

As of September 30, 2012 major market indices including the S&P500, S&P Global Industrials Sector Index and Nasdaq increasedapproximately 27%, 28% and 29%, respectively, over the 12-month period. During the recently completed 3rd quarter all threeindices increased approximately 6%.As illustrated in the table on the right, the equity markets displayedoverall strength and investor demand across the Industrialsindustry as several initial public offerings and follow-on equityofferings were successfully completed in Q3 2012.The Electrical Equipment and Machinery sectors were the industry’sstrongest performers in terms of valuation during the 3rd quarter,trading at 9.5x and 8.8x LTM EBITDA, respectively.

Commentary($ in millions)

Industry Sector 3 Months 12 months Revenue EBITDAConstruction 10.2% 45.7% 0.9x 8.6xElectrical Equipment 6.3% 39.7% 1.6x 9.5xMachinery 6.9% 29.2% 1.3x 8.8xIndustrial Services 1.7% 5.8% 1.7x 8.3xTransportation (6.1%) 19.4% 1.0x 6.3xIndustrial Conglomerates 9.6% 31.0% 1.7x 8.6xMaterials 7.5% 22.2% 1.5x 7.7x

MedianChange in Stock Price Enterprise Value / LTM

29.0%

27.7%

27.3%


Middle Market Purchase Multiples

U.S. Middle Market M&A Activity – Annual Trends: VOLUME U.S. Middle Market M&A Activity – Annual Trends: VALUE

Total Transac

tion Volume

Total Transac

tion Value ($ i

n bi

llion

s)

Annual Middle Market M&A Activity – Industrials

3

As detailed in the charts below, overall U.S. middle market M&Aactivity, or deal volume, in the Industrials industry for the year-to-date (“YTD”) period ended September 30, 2012 declinedapproximately 31% to 214 closed deals, down from 311 duringYTD 2011.In addition, the total value of completed M&A transactions in theIndustrials industry for YTD 2012 declined approximately 24% to$26.6 billion, down from $34.9 billion during YTD 2011.Middle market purchase multiples, defined as enterprise valuedivided by revenue and enterprise value divided by EBITDA, fellslightly in 2012 to 1.4x and 9.2x, respectively, for completed middlemarket transactions across the Industrials industry with disclosedpurchase multiples.

Commentary

Enterprise Va

lue / EBITDA

Enterprise Value / Revenue

Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion)Less than $100M $100 - $499M $500 - $1,000M Less than $100M $100 - $499M $500 - $1,000M


Quarterly Middle Market M&A Activity – Industrials

U.S. Middle Market M&A Activity – Quarterly Trends: VALUEU.S. Middle Market M&A Activity – Quarterly Trends: VOLUME

Middle Market M&A Transactions by Deal Size

($ in billions)

Total Transac

tion Volume

Total Transac

tion Value ($ i

n bi

llion

s)

4

As detailed in the table on the right, Industrials M&A transactionvolume and value decreased year-over-year across nearly allsegments of the middle market during the 3rd quarter of 2012.The number of completed Industrials deals declined 41% in Q3 2012to 72, down from 122 in Q3 2011, while total deal value decreasedapproximately 31% over the same period to $9.2 billion.Despite representing approximately 31% of the total deal volume inQ3 2012, transactions valued between $100 million and $1 billionaccounted for more than 80% of the total deal value during Q3.

Commentary

Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion)Less than $100M $100 - $499M $500 - $1,000MLess than $100M $100 - $499M $500 - $1,000M

Deal Size Volume Value Volume Value Volume Value Less than $100M 84 $2.6 50 $1.6 (40%) (38%)$100 - $499M 33 $7.1 17 $4.1 (48%) (43%)$500 - $1,000M 5 $3.8 5 $3.6 0% (6%)Total Middle Market 122 $13.5 72 $9.2 (41%) (31%)

% of Middle MarketLess than $100M 69% 19% 69% 17%$100 - $499M 27% 53% 24% 44%$500 - $1,000M 4% 28% 7% 39%Total Middle Market 100% 100% 100% 100%

Q3 2011 Q3 2012 % Change


Recent M&A Activity – Industrials

Select Announced M&A Transactions (Q3 2012)

5Source: S&P Capital IQ

Announced Date Target Industry Sector Buyer Enterprise

Value ($mm)EV /

Revenue EV /

EBITDA 09/28/2012 Latshaw Enterprises, Inc. Materials Caledonia Investments plc / Nova Capital Management, Ltd. $48.6 0.5x NA09/28/2012 SpeedFC, Inc. Industrial Services Navarre Corp. $68.0 1.2x 17.9x09/28/2012 TCI Services, Inc. Construction Team Industrial Services, Inc. $22.3 NA NA09/28/2012 Trench Plate Rental Co. Machinery Perella Weinberg Partners, LP $40.0 NA NA09/26/2012 Cement Plants (Sugar Creek, Missouri / Tulsa, Oklahoma) Materials Eagle Materials, Inc. $445.6 2.5x NA09/25/2012 Phoenix International Freight Services, Ltd. Transportation CH Robinson Worldwide, Inc. $635.0 0.8x NA09/24/2012 Orange County Container Group, LLC Materials Smurfit Kappa Group plc $340.0 NA NA09/21/2012 Mitchell’s Oil Field Service, Inc. Construction Production Services Network, Ltd. $182.5 NA NA09/20/2012 Becker Underwood, Inc. Materials BASF SE $1,020.0 NA NA09/17/2012 Fabpro NetWrap, LLC Materials Fabpro Oriented Polymers, LLC $11.8 NA NA09/17/2012 Rolling Rock Minerals, Inc. Materials S&B Industrial Minerals North America, Inc. $55.5 1.2x NA09/16/2012 R3 Treatment, Inc. Industrial Services Waste Connections, Inc. $1,300.0 4.3x NA09/13/2012 Skylink, Ltd. Construction DirectSat USA, LLC $23.5 0.8x 4.0x09/11/2012 Environmental Filtration Technologies, LLC Machinery Nederman Holding AB (publ) $37.7 0.3x NA09/06/2012 Century Plastics, Inc. Materials Autometal S.A. $36.2 NA NA09/05/2012 Cobasys, LLC Electrical Equipment Robert Bosch Investment Nederland B.V. $26.8 NA NA09/04/2012 Allied Transportation Co. Transportation Kirby Corp. $116.0 NA NA09/04/2012 Badlands Energy, LLC Industrial Services Heckmann Corp. $530.6 1.5x 3.4x09/04/2012 Hartford Retirement Services, LLC Industrial Services Massachusetts Mutual Life Insurance Co. $400.0 NA NA08/30/2012 Knaack, LLC Industrial Services New Werner Holding Co., Inc. $115.0 1.2x NA08/29/2012 Floridian Vest, LLC Industrial Services CubeSmart, LP $13.4 NA NA08/29/2012 Goodman Global Group, Inc. Construction Daikin Industries, Ltd. $3,700.0 1.8x NA08/28/2012 Excellence in Motivation, Inc. Industrial Services Aimia, Inc. $28.0 NA NA08/27/2012 TPC Group, Inc Materials First Reserve Corp. / SK Capital Partners $865.2 0.3x 9.3x08/26/2012 Dollar Thrifty Automotive Group, Inc. Transportation Hertz Global Holdings, Inc. $3,861.4 2.5x 9.7x08/24/2012 The Fuller Brush Co., Inc. Materials Victory Park Capital Advisors $18.0 NA NA08/19/2012 ECM Plastics, Inc. Materials A. Schulman, Inc. $36.5 0.9x NA08/14/2012 KSW, Inc. Machinery The Related Companies, LP $15.9 0.2x 4.2x08/13/2012 Expedited Freight Systems, Inc. Transportation Roadrunner Transportation Systems, Inc. $10.0 0.5x NA08/13/2012 Lee-Var, Inc. Machinery Synalloy Corp. $36.1 1.1x NA08/09/2012 Cerus Industrial, Inc. Electrical Equipment Franklin Electric Co. Inc. $25.7 1.8x NA08/09/2012 CrossGlobe Group Industrial Services Logistec USA, Inc. $16.0 NA NA08/09/2012 Robbins & Myers, Inc. Machinery National Oilwell Varco, Inc. $2,423.3 2.4x 9.4x


Recent M&A Activity – Industrials

Select Announced M&A Transactions (Q3 2012)


Announced Date Target Industry Sector Buyer Enterprise

Value ($mm)EV /

Revenue EV /

EBITDA 08/08/2012 HRE Sparrows Point, LLC Materials Commercial Development Co., Inc. /Environmental Liability Transfer, Inc. / Sparrows Point, LLC $72.5 NA NA08/08/2012 Symphony Teleca Corp. (Telecommunications Expense Management Business) Industrial Services Tangoe, Inc. $44.0 NA NA08/07/2012 US Home Systems, Inc. Construction THD At-Home Services, Inc. $82.9 0.5x 8.7x08/06/2012 DMI Industries, Inc. Electrical Equipment Trinity Industries, Inc. $20.0 NA NA08/06/2012 Dunn's Tank Service, Inc. / Nassau Disposal, Inc. Transportation Quality Distribution, Inc. $37.9 2.2x NA08/03/2012 Central Precast Concrete, Inc. / U.S. Concrete Precast Group Materials Oldcastle Precast, Inc. $21.3 NA NA08/03/2012 Jefferson Capital Systems, LLC Industrial Services Flexpoint Ford $141.3 NA NA08/03/2012 R&M Transportation, Inc. / Sortino Transportation, Inc. Transportation Roadrunner Transportation Systems, Inc. $29.4 0.5x NA07/30/2012 Alpine Access, Inc. Industrial Services Sykes Enterprises, Inc. $150.0 1.4x NA07/30/2012 Shaw Group, Inc. Construction Chicago Bridge & Iron Co. N.V. $3,288.8 0.5x 19.9x07/27/2012 D&H Manufacturing Co. Materials Celestica, Inc. $70.0 0.9x NA07/26/2012 Bentley Prince Street, Inc. Construction Dominus Capital $35.0 NA NA07/26/2012 Linc Logistics Co. Transportation Universal Truckload Services, Inc. $258.2 0.8x 5.2x07/25/2012 Milton Roy Co., Inc. / Sullair Corp. / Sundyne Corp. Machinery BC Partners / The Carlyle Group $3,440.0 NA NA07/23/2012 RailAmerica, Inc. Transportation Genesee & Wyoming, Inc. $1,994.7 3.4x 9.9x07/23/2012 SP Fiber Technologies, LLC Materials General Electric Capital Corp. $145.0 NA NA07/20/2012 Mayfran Holdings, Inc. Machinery Tsubakimoto Chain Co. $89.0 0.6x NA07/19/2012 Eagle Spinco, Inc. Materials Georgia Gulf Corp. $2,097.5 1.2x 5.1x07/18/2012 K.A. Steel Chemicals, Inc. Materials Olin Corp. $328.0 0.8x 10.6x07/18/2012 Veolia ES Solid Waste, Inc. (U.S. Operations) Industrial Services Highstar Capital $1,909.0 2.3x NA07/17/2012 Anchor Glass Container Corp. Materials Ardagh Group S.A. $880.0 1.1x NA07/16/2012 Koontz-Wagner Holdings, LLC Construction Global Power Equipment Group, Inc. $31.5 0.9x NA07/16/2012 Noble Technologies Corp. Materials United Resource Holdings Group, Inc. $24.4 NA NA07/16/2012 Synventive Molding Solutions, Inc. Machinery Barnes Group, Inc. $335.0 NA NA07/13/2012 WGI Heavy Minerals, Inc. Materials Opta Minerals, Inc. $10.4 0.3x NM07/05/2012 Chico Coffman Tank Trucks, Inc. Industrial Services Frontier Oilfield Services, Inc. $19.9 0.5x 6.1x07/03/2012 AgraQuest, Inc. Materials Bayer CropScience AG $425.0 10.6x NA07/03/2012 EM-Assist, Inc. Industrial Services Cardno, Ltd. $14.3 NA NA07/02/2012 Cardno MM&A Construction Cardno, Ltd. $31.0 NA NAAverage $524.7 1.5x 8.8x

Median $69.0 1.0x 9.0x


Recent M&A Transactions Profiled – Industrials

Transaction DetailsRailAmerica, Inc. (NYSE:RA)

Transaction Details

7

Dollar Thrifty Automotive Group, Inc. (NYSE:DTG) Dollar Thrifty Automotive Group, Inc. (NYSE:DTG) is a leadinginternational car rental company with nearly 6,000 employees and1,600 locations worldwide.On August 26, 2012 Hertz Global Holdings, Inc. (NYSE:HTZ)announced that it entered into a definitive agreement to acquireDollar Thrifty for $87.50 per share in cash.The transaction, which was unanimously approved by DollarThrifty’s board of directors, is valued at approximately $3.9 billion,including the assumption of debt and is expected to produce at least$160 million of annual cost synergies as well as additional revenuegrowth opportunities for the combined entity.RailAmerica, Inc. (NYSE:RA) owns and operates short line andregional freight railroads in North America, operating a porfolio of45 individual railroads with approximately 7,500 miles of track in28 states and three Canadian provinces.On July 23, 2012 Genesee & Wyoming, Inc. (NYSE:GWI) announcedthat it entered into a definitive agreement to acquire RailAmericafor an all cash purchase price of $27.50 per share, representing a10.6% premium over RailAmerica’s stock price as of July 20, 2012,the last trading day prior to announcement, and a premium of27.6% over the closing stock price as of May 21, 2012, the lasttrading day prior to the date on which RailAmerica announced itwas exploring strategic alternatives.The transaction is valued at approximately $2.0 billion, includingthe assumption of debt.

($ in millions)LTM

Income Statement 6/30/12 Purchase Price (Equity) $2,463.6Revenue $1,555.7 Net Assumed Liabilities $1,276.6EBITDA $396.6 Rights / Warrants / Options $121.2Net Income $190.3 Implied Enterprise Value $3,861.43

As ofBalance Sheet 6/30/12 Implied Purchase MultiplesCash $285.5 Revenue 2.5xDebt $1,562.1 EBITDA 9.7xNet Debt $1,276.6 Net Income 12.9x

Financial Profile Transaction Analysis

($ in millions)LTM

Income Statement 6/30/12 Purchase Price (Equity) $1,397.5Revenue $586.5 Net Assumed Liabilities $589.8EBITDA $201.2 Minority Interest $7.5Net Income ($4.7) Implied Enterprise Value $1,994.7

As ofBalance Sheet 6/30/12 Implied Purchase MultiplesCash $51.0 Revenue 3.4xDebt $640.8 EBITDA 9.9xNet Debt $589.8 Net Income NM

Financial Profile Transaction Analysis


Overview of the TransactionOn October 8, 2012 MaxxAir Vent Corp. (“MaxxAir”) announced its sale to Airxcel,Inc.Founded in 1989 and headquartered in Tampa, Florida, MaxxAir is a leadingprovider of ventilation solutions to the RV aftermarket. MaxxAir manufacturesmounted fans, window mounted vents, rain covers, vent cap covers and ancillaryaccessories that protect more than 2 million RVs. The Company offers its productsthrough over 4,000 authorized RV dealers across the U.S. and internationally.Airxcel is a leading designer and manufacturer of climate control solutions andcomplementary products. Airxcel has a leading share in the North American climatecontrol equipment market for recreation vehicles (RVs), telecommunicationshelters and self-contained classrooms.Hyde Park Capital’s RoleHyde Park Capital was engaged as the exclusive investment banker and financialadvisor to MaxxAir in connection with the sale of the Company.Hyde Park Capital marketed the opportunity to a select group of strategic buyersand identified, negotiated and closed the transaction with Airxcel.The transaction will further diversify Airxcel’s portfolio of product offerings andhighlights Hyde Park Capital’s successful ability to quickly and comprehensivelygarner market interest and value for clients.

has been acquired by

8

MaxxAir Vent Corp. has been acquired by Airxcel, Inc.

Featured Hyde Park Capital Transaction


$8,918$2,976

$5,218$5,894

$1,189$2,363

$11,189$4,032

$6,627$6,730

$3,801$2,490

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000Materials

TransportationIndustrial Services

MachineryElectrical Equipment

Construction

6119

7029

1520

9033

9546

1730

0 10 20 30 40 50 60 70 80 90 100Materials

TransportationIndustrial Services

MachineryElectrical Equipment

Construction

M&A Activity by Industrial Sector

% Change

% Change

U.S. Middle Market M&A Activity by Industrial Sector: VOLUME

9Source: S&P Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion); Note: Industrial conglomerates had no transactions with disclosed values in this range during the period.

U.S. Middle Market M&A Activity by Industrial Sector: VALUE

12%37%

69%21%12%

33%

5%

26%42%32%

26%20%

($ in millions)

YTD 2011 YTD 2012

YTD 2011 YTD 2012


With financing markets cooperating, financial sponsors remainedactive investors across all sectors of the Industrials industry in Q32012, as shown in the table on the right.Several notable private equity backed transactions wereannounced during the 3rd quarter including Highstar Capital’sacquisition of Veolia ES Solid Waste, Inc.’s U.S. operations for $1.9billion and SK Capital Partners’ buyout of TPC Group, Inc., aleading producer of value-added products derived frompetrochemical raw materials, for $1 billion.During YTD 2012 financial sponsors participated in 23% of thecompleted deals and accounted for approximately 23% of totaltransaction volume.

Select Private Equity Transactions – Industrials (Q3 2012)

Financial Sponsors vs. Strategic Buyers

Private Equity Activity – Industrials

Financial Sponsor Strategic Buyer Financial Sponsor Strategic Buyer

Total Transac

tion Value ($ i

n billions)

10

($ in millions)

Commentary

Source: S&P Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion)

Total Transac

tion Volume

Announced Date Target Buyer Industry Transaction Value 09/14/12 Landmark Aviation The Carlyle Group Transportation NA09/12/12 Convergint Technologies, LLC KRG Capital Partners Industrial Services NA09/12/12 PAC Stainless, Ltd. Evergreen Pacific Partners Machinery NA09/05/12 GCA Services Group, Inc. The Blackstone Group Industrial Services NA09/05/12 Parts Now!, LLC CounterPoint Capital Partners Industrial Services NA08/27/12 TPC Group, Inc First Reserve Corp. / SK Capital Partners Materials $1,00108/24/12 The Fuller Brush Co., Inc. Victory Park Capital Advisors Materials $1808/23/12 Pine Environmental Services, LLC Saw Mill Capital Machinery NA08/15/12 Storage Battery Systems, LLC Supply Chain Equity Partners Electrical Equipment NA08/09/12 Quick Attach Attachments, Inc. Hanover Partners Machinery NA08/08/12 New Star Metals, Inc. Insight Equity Materials NA08/06/12 Cardinal Logistics Management Corp. Centerbridge Partners Transportation NA08/03/12 Jefferson Capital Systems, LLC Flexpoint Ford Industrial Services $14108/02/12 Safety Sam, Inc. Serent Capital Industrial Services NA07/30/12 Receivables Management Partners, LLC Thompson Street Capital Partners Industrial Services NA07/30/12 Zodiac Recreational OpenGate Capital Materials NA07/27/12 McNutt Automotive Logistics, LLC Corinthian Capital Group Transportation NA07/26/12 Bentley Prince Street, Inc. Dominus Capital Construction $3507/25/12 Milton Roy Co., Inc. / Sullair Corp. / Sundyne Corp. BC Partners / The Carlyle Group Machinery $3,46007/19/12 Hi-Tech Manufacturing, LLC Yukon Partners / May River Capital Machinery NA07/18/12 Veolia ES Solid Waste, Inc. (U.S. Operations) Highstar Capital Industrial Services $1,90907/17/12 StorFlex Fixture Corp. Hadley Capital Industrial Services NA07/16/12 Empire Facilities Management Group, Inc. / A-OK Security / Maintenance, Inc. Charterhouse Equity Partners Industrial Services NA07/13/12 National Security Partners, LLC Waud Capital Partners Industrial Services NA07/12/12 KMCO, LP Argosy Capital / RCP Advisors / Owner Resource Group, LLC Materials NA07/12/12 Total Fleet Solutions, Ltd. CI Capital Partners Industrial Services NA


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Sep-11 Dec-11 Mar-12 Jun-12 Sep-12S&P 500 Machinery

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Sep-11 Dec-11 Mar-12 Jun-12 Sep-12S&P 500 Construction

Industry Sector Overview – Recent Stock Price Performance

Electrical Equipment

Commentary

11

Construction

Machinery


The charts included on the following pages detail the recent stockprice performance by sector for the leading public companieswithin the Industrials industry for the trailing 12-month periodending September 30, 2012. The shaded section is the most recent3-month period (Q3) for each sector and relative to the S&P 500.During Q3 2012 all of the sector indices of the Industrials industryincreased except for the Transportation index. For the 12-monthperiod ending September 30, 2012, all of the Industrial industry’ssectors increased, led by the Construction and Electrical Equipmentsectors, increasing 46% and 40%, respectively.

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100%110%120%130%140%150%160%

Sep-11 Dec-11 Mar-12 Jun-12 Sep-12S&P 500 Electrical Equipment

29.2%

27.3%

45.7%

27.3%

39.7%

27.3%


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100%110%120%130%140%150%160%

Sep-11 Dec-11 Mar-12 Jun-12 Sep-12S&P 500 Industrial Services80%90%

100%110%120%130%140%150%160%

Sep-11 Dec-11 Mar-12 Jun-12 Sep-12S&P 500 Transportation

80%90%

100%110%120%130%140%150%160%

Sep-11 Dec-11 Mar-12 Jun-12 Sep-12S&P 500 Materials80%90%

100%110%120%130%140%150%160%

Sep-11 Dec-11 Mar-12 Jun-12 Sep-12S&P 500 Industrial Conglomerates

Industry Sector Overview – Recent Stock Price Performance

Industrial Conglomerates

Industrial Services

12

Transportation


Materials

5.8%

27.3%

19.4%

27.3%

31.0%

27.3%

27.3%

22.2%


Industry Sector Overview – Public Company Analysis

Building Products

($ in millions, except per share)

13

Construction and Engineering

Construction


Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Masco Corp. MAS $15.05 91% $5,245 $7,955 $7,595 $1,837 $541 24.2% 7.1% 1.0x 14.7xOwens Corning OC $33.46 88% $4,042 $6,242 $5,209 $930 $691 17.9% 13.3% 1.2x 9.0xFortune Brands Home & Security, Inc. FBHS $27.01 93% $4,395 $4,526 $3,519 $1,126 $266 32.0% 7.6% 1.3x 17.0xUSG Corp. USG $21.95 91% $2,322 $4,120 $3,249 $375 $216 11.5% 6.6% 1.3x NMArmstrong World Industries, Inc. AWI $46.37 78% $2,747 $3,531 $2,766 $667 $334 24.1% 12.1% 1.3x 10.6xLennox International, Inc. LII $48.36 94% $2,495 $2,928 $3,376 $871 $264 25.8% 7.8% 0.9x 11.1xAO Smith Corp. AOS $57.54 98% $2,677 $2,474 $1,891 $621 $249 32.9% 13.2% 1.3x 9.9xSimpson Manufacturing Co., Inc. SSD $28.62 81% $1,383 $1,196 $643 $283 $98 44.0% 15.2% 1.9x 12.3x

Average 89% $3,163 $4,122 $3,531 $839 $332 26.5% 10.4% 1.3x 12.1x

Median 91% $2,712 $3,826 $3,312 $769 $265 25.0% 9.9% 1.3x 11.1x

LTM MarginsEnterprise Value /

LTM LTM

Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Fluor Corp. FLR $56.28 87% $9,621 $8,008 $25,708 $1,166 $1,205 4.5% 4.7% 0.3x 6.6xJacobs Engineering Group, Inc. JEC $40.43 84% $5,183 $4,839 $10,831 $1,707 $693 15.8% 6.4% 0.4x 7.0xURS Corp. URS $35.31 75% $2,664 $4,821 $9,917 $817 $718 8.2% 7.2% 0.5x 6.7xKBR, Inc. KBR $29.82 78% $4,436 $3,662 $7,988 $594 $445 7.4% 5.6% 0.5x 8.2xAECOM Technology Corp. ACM $21.16 87% $2,416 $3,144 $8,253 $430 $439 5.2% 5.3% 0.4x 7.2xEMCOR Group, Inc. EME $28.54 92% $1,934 $1,609 $6,253 $792 $293 12.7% 4.7% 0.3x 5.5xTutor Perini Corp. TPC $11.44 65% $542 $1,043 $4,179 $419 $214 10.0% 5.1% 0.2x 4.9x

Average 81% $3,828 $3,875 $10,447 $846 $572 9.1% 5.6% 0.4x 6.6x

Median 84% $2,664 $3,662 $8,253 $792 $445 8.2% 5.3% 0.4x 6.7x

Enterprise Value /LTM LTM Margins LTM




Electrical Equipment($ in millions, except per share)

Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDARoper Industries, Inc. ROP $109.89 99% $10,915 $12,665 $2,923 $1,611 $866 55.1% 29.6% 4.3x 14.6xCooper Industries plc CBE $75.06 98% $12,114 $12,574 $5,744 $1,960 $983 34.1% 17.1% 2.2x 12.8xRockwell Automation, Inc. ROK $69.55 82% $10,020 $10,040 $6,250 $2,532 $1,159 40.5% 18.5% 1.6x 8.7xAmetek, Inc. AME $35.45 97% $8,623 $9,827 $3,255 $1,156 $825 35.5% 25.3% 3.0x 11.9xHubbell, Inc. HUB.B $80.74 96% $4,828 $4,817 $3,032 $999 $537 32.9% 17.7% 1.6x 9.0xWoodward, Inc. WWD $33.98 74% $2,391 $2,758 $1,826 $550 $289 30.1% 15.9% 1.5x 9.5xAcuity Brands, Inc. AYI $63.29 91% $2,652 $2,721 $1,934 $792 $266 41.0% 13.7% 1.4x 10.2xGenerac Holdings, Inc. GNRC $22.89 75% $1,565 $2,450 $1,040 $386 $259 37.1% 24.9% 2.4x 9.5xPolypore International, Inc. PPO $35.35 59% $1,670 $2,345 $741 $296 $217 40.0% 29.3% 3.2x 10.8xBelden, Inc. BDC $36.88 89% $1,742 $1,955 $1,932 $583 $235 30.2% 12.2% 1.0x 8.3xGrafTech International, Ltd. GTI $8.99 51% $1,279 $1,882 $1,225 $315 $224 25.7% 18.3% 1.5x 8.4xBrady Corp. BRC $29.28 84% $1,536 $1,546 $1,324 $636 $212 48.0% 16.0% 1.2x 7.3xColeman Cable, Inc. CCIX $9.64 73% $167 $519 $893 $127 $78 14.2% 8.8% 0.6x 6.6x

Average 82% $4,577 $5,084 $2,471 $919 $473 35.7% 19.0% 2.0x 9.8x

Median 84% $2,391 $2,721 $1,932 $636 $266 35.5% 17.7% 1.6x 9.5x




Construction and Farm Machinery


15

Industrial Machinery

Machinery


Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Caterpillar, Inc. CAT $86.04 74% $57,544 $94,085 $67,043 $18,322 $12,271 27.3% 18.3% 1.4x 7.7xDeere & Co. DE $82.47 92% $33,524 $60,809 $34,977 $10,122 $5,598 28.9% 16.0% 1.7x 10.9xPACCAR, Inc. PCAR $40.02 83% $14,286 $20,544 $17,907 $2,481 $2,403 13.9% 13.4% 1.1x 8.5xCummins, Inc. CMI $92.21 71% $17,635 $17,357 $18,471 $4,837 $2,515 26.2% 13.6% 0.9x 6.9xJoy Global, Inc. JOY $56.06 58% $5,989 $7,156 $5,401 $1,801 $1,292 33.3% 23.9% 1.3x 5.5xAGCO Corp. AGCO $47.48 88% $4,667 $5,838 $9,581 $2,036 $936 21.3% 9.8% 0.6x 6.2xManitowoc Co., Inc. MTW $13.34 79% $1,800 $3,794 $3,836 $888 $378 23.2% 9.9% 1.0x 10.0xOshkosh Corp. OSK $27.43 92% $2,522 $2,936 $8,181 $991 $504 12.1% 6.2% 0.4x 5.8xToro Co. TTC $39.78 98% $2,431 $2,514 $1,987 $679 $263 34.2% 13.2% 1.3x 9.6x

Average 82% $15,600 $23,892 $18,598 $4,684 $2,907 24.5% 13.8% 1.1x 7.9x

Median 83% $5,989 $7,156 $9,581 $2,036 $1,292 26.2% 13.4% 1.1x 7.7x


Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Illinois Tool Works, Inc. ITW $59.47 96% $28,467 $31,418 $18,023 $6,495 $3,495 36.0% 19.4% 1.7x 9.0xEaton Corp. ETN $47.27 89% $16,060 $19,278 $16,184 $4,898 $2,269 30.3% 14.0% 1.2x 8.5xStanley Black & Decker, Inc. SWK $76.25 93% $12,776 $16,340 $11,046 $4,040 $1,581 36.6% 14.3% 1.5x 10.3xParker Hannifin Corp. PH $83.58 91% $12,868 $14,219 $13,127 $3,118 $1,924 23.8% 14.7% 1.1x 7.4xDover Corp. DOV $59.49 89% $11,061 $12,463 $8,433 $3,205 $1,654 38.0% 19.6% 1.5x 7.5xPall Corp. PLL $63.49 96% $7,470 $7,666 $2,672 $1,380 $557 51.7% 20.9% 2.9x 13.8xFlowserve Corp. FLS $127.74 94% $6,911 $7,632 $4,689 $1,553 $753 33.1% 16.1% 1.6x 10.1xDonaldson Co., Inc. DCI $34.71 89% $5,309 $5,291 $2,493 $874 $424 35.0% 17.0% 2.1x 12.5xTimken Co. TKR $37.16 64% $3,643 $3,661 $5,171 $1,466 $996 28.4% 19.3% 0.7x 3.7x

Average 89% $11,618 $13,107 $9,093 $3,003 $1,517 34.8% 17.2% 1.6x 9.2x

Median 91% $11,061 $12,463 $8,433 $3,118 $1,581 35.0% 17.0% 1.5x 9.0x




Trading Companies and Distributors


16

Machinery


Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA W.W. Grainger, Inc. GWW $208.37 94% $14,862 $15,004 $8,801 $3,852 $1,242 43.8% 14.1% 1.7x 12.1xFastenal Co. FAST $42.99 78% $12,762 $12,539 $3,074 $1,581 $707 51.4% 23.0% 4.1x 17.7xUnited Rentals, Inc. URI $32.71 68% $2,842 $10,204 $3,614 $1,367 $842 37.8% 23.3% 2.8x 12.1xGATX Corp. GMT $42.44 93% $2,016 $5,293 $1,321 $766 $619 57.9% 46.9% 4.0x 8.5xMSC Industrial Direct Co., Inc. MSM $67.46 80% $4,254 $4,147 $2,254 $1,037 $431 46.0% 19.1% 1.8x 9.6xWESCO International, Inc. WCC $57.20 84% $2,894 $3,508 $6,524 $1,322 $404 20.3% 6.2% 0.5x 8.7xWatsco, Inc. WSO $75.79 95% $2,330 $2,782 $3,312 $792 $240 23.9% 7.2% 0.8x 11.6xEnerSys ENS $35.29 89% $1,717 $1,829 $2,308 $539 $287 23.4% 12.4% 0.8x 6.4xApplied Industrial Technologies, Inc. AIT $41.43 92% $1,769 $1,712 $2,406 $660 $197 27.4% 8.2% 0.7x 8.7xTitan Machinery, Inc. TITN $20.28 55% $424 $1,198 $1,862 $308 $106 16.5% 5.7% 0.6x 11.3x

Average 83% $4,587 $5,822 $3,548 $1,222 $508 34.8% 16.6% 1.8x 10.7x

Median 86% $2,586 $3,828 $2,740 $914 $417 32.6% 13.3% 1.3x 10.5x




Environmental and Facilities Services


17

Industrial Services


Diversified Support Services

Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAWaste Management, Inc. WM $32.08 88% $14,875 $24,793 $13,621 $4,821 $3,323 35.4% 24.4% 1.8x 7.5xRepublic Services, Inc. RSG $27.51 88% $10,231 $17,278 $8,184 $3,273 $2,431 40.0% 29.7% 2.1x 7.1xStericycle, Inc. SRCL $90.48 96% $7,857 $9,153 $1,856 $875 $557 47.2% 30.0% 4.9x 16.4xWaste Connections, Inc. WCN $30.25 84% $3,600 $4,503 $1,593 $674 $504 42.3% 31.6% 2.8x 8.9xCovanta Holding Corp. CVA $17.16 96% $2,308 $4,291 $1,644 $690 $430 42.0% 26.2% 2.6x 10.0xRollins, Inc. ROL $23.39 96% $3,424 $3,330 $1,254 $618 $215 49.3% 17.2% 2.7x 15.5xClean Harbors, Inc. CLH $48.85 68% $2,611 $2,838 $2,197 $669 $383 30.5% 17.4% 1.3x 7.4xSims Metal Management, Ltd. ASX:SGM $9.94 61% $2,046 $2,337 $9,256 $744 $194 8.0% 2.1% 0.3x 12.1xTitanium Metals Corp. TIE $12.83 71% $2,254 $2,336 $1,080 $232 $219 21.5% 20.3% 2.2x 10.7xTetra Tech, Inc. TTEK $26.26 94% $1,668 $1,671 $1,962 $361 $218 18.4% 11.1% 0.9x 7.7xSchnitzer Steel Industries, Inc. SCHN $28.15 54% $776 $1,048 $3,341 $261 $138 7.8% 4.1% 0.3x 7.6xCasella Waste Systems, Inc. CWST $4.27 60% $115 $605 $475 $144 $84 30.4% 17.8% 1.3x 7.2x

Average 80% $4,314 $6,182 $3,872 $1,114 $725 31.1% 19.3% 1.9x 9.8x

Median 86% $2,459 $3,084 $1,909 $672 $301 32.9% 19.0% 2.0x 8.3x


Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAIron Mountain, Inc. IRM $34.11 100% $5,969 $9,386 $2,989 $1,731 $918 57.9% 30.7% 3.1x 10.2xCintas Corp. CTAS $41.43 97% $5,337 $6,316 $4,136 $1,745 $708 42.2% 17.1% 1.5x 8.9xPitney Bowes, Inc. PBI $13.82 65% $2,779 $6,219 $5,142 $2,597 $1,044 50.5% 20.3% 1.2x 6.0xR.R. Donnelley & Sons Co. RRD $10.60 63% $1,939 $5,350 $10,458 $2,425 $1,267 23.2% 12.1% 0.5x 4.2xKAR Auction Services, Inc. KAR $19.74 95% $2,731 $5,074 $1,924 $875 $470 45.5% 24.4% 2.6x 10.8xAvery Dennison Corp. AVY $31.82 97% $3,339 $4,525 $5,958 $1,538 $593 25.8% 10.0% 0.8x 7.6xCorrections Corp. of America CXW $33.45 95% $3,390 $4,518 $1,759 $510 $417 29.0% 23.7% 2.6x 10.8xCopart, Inc. CPRT $27.73 96% $3,644 $3,953 $924 $429 $337 46.4% 36.4% 4.3x 11.7xRitchie Bros. Auctioneers, Inc. RBA $19.23 74% $2,056 $2,258 $434 $384 $166 88.4% 38.3% 5.2x 13.6xThe Brink's Co. BCO $25.69 82% $1,245 $1,543 $3,910 $725 $312 18.5% 8.0% 0.4x 5.0xUnited Stationers, Inc. USTR $26.07 73% $1,086 $1,520 $5,037 $747 $231 14.8% 4.6% 0.3x 6.6xHerman Miller, Inc. MLHR $19.44 83% $1,138 $1,194 $1,716 $586 $173 34.2% 10.1% 0.7x 6.9x

Average 85% $2,888 $4,321 $3,699 $1,191 $553 39.7% 19.6% 1.9x 8.5x

Median 89% $2,755 $4,522 $3,449 $811 $444 38.2% 18.7% 1.4x 8.3x




Air Freight and Logistics


18

Transportation

Road and Rail


Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAUnited Parcel Service, Inc. UPS $71.57 88% $69,584 $75,471 $53,722 $11,326 $7,116 21.1% 13.2% 1.4x 10.6xFedEx Corp. FDX $84.62 87% $26,782 $26,398 $42,951 $10,950 $5,436 25.5% 12.7% 0.6x 4.9xCH Robinson Worldwide, Inc. CHRW $58.58 76% $9,516 $9,243 $10,957 $970 $749 8.9% 6.8% 0.8x 12.3xExpeditors International of Washington, Inc. EXPD $36.35 76% $7,778 $6,420 $6,025 $784 $615 13.0% 10.2% 1.1x 10.4xAtlas Air Worldwide Holdings, Inc. AAWW $51.63 91% $1,367 $2,025 $1,535 $395 $237 25.7% 15.4% 1.3x 8.6xHub Group, Inc. HUBG $29.68 79% $1,103 $1,047 $3,086 $346 $133 11.2% 4.3% 0.3x 7.9xForward Air Corp. FWRD $30.41 81% $893 $800 $577 $157 $103 27.2% 17.9% 1.4x 7.7x

Average 83% $16,718 $17,344 $16,979 $3,561 $2,055 18.9% 11.5% 1.0x 8.9x

Median 81% $7,778 $6,420 $6,025 $784 $615 21.1% 12.7% 1.1x 8.6x

LTMEnterprise Value /

LTM Margins LTM

Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAUnion Pacific Corp. UNP $118.70 92% $56,929 $65,285 $20,784 $9,154 $8,357 44.0% 40.2% 3.1x 7.8xCSX Corp. CSX $20.75 88% $21,725 $30,075 $11,823 $4,518 $4,518 38.2% 38.2% 2.5x 6.7xNorfolk Southern Corp. NSC $63.63 81% $21,007 $28,912 $11,153 $4,114 $4,112 36.9% 36.9% 2.6x 7.0xKansas City Southern KSU $75.78 90% $8,338 $10,062 $2,201 $844 $844 38.3% 38.3% 4.6x 11.9xJB Hunt Transport Services, Inc. JBHT $52.04 85% $6,237 $6,876 $4,922 $842 $735 17.1% 14.9% 1.4x 9.4xRyder System, Inc. R $39.06 68% $1,982 $5,771 $6,215 $1,255 $1,375 20.2% 22.1% 0.9x 4.2xGenesee & Wyoming, Inc. GWR $66.86 98% $2,875 $3,458 $852 $354 $259 41.6% 30.4% 4.1x 13.3xAMERCO UHAL $106.36 84% $2,073 $2,956 $2,525 $639 $601 25.3% 23.8% 1.2x 4.9xOld Dominion Freight Line, Inc. ODFL $30.15 92% $2,597 $2,873 $2,068 $548 $385 26.5% 18.6% 1.4x 7.5xLandstar System, Inc. LSTR $47.28 80% $2,220 $2,247 $2,821 $633 $234 22.4% 8.3% 0.8x 9.6xCon-way, Inc. CNW $27.37 71% $1,542 $1,880 $5,508 $1,001 $425 18.2% 7.7% 0.3x 4.4xWerner Enterprises, Inc. WERN $21.36 80% $1,567 $1,549 $2,035 $486 $320 23.9% 15.7% 0.8x 4.8x

Average 84% $10,758 $13,496 $6,076 $2,032 $1,847 29.4% 24.6% 2.0x 7.6x

Median 85% $2,736 $4,614 $3,872 $843 $668 25.9% 23.0% 1.4x 7.2x

LTMEnterprise Value /

LTM Margins LTM



Airlines


19

Transportation

Marine


Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDADelta Air Lines, Inc. DAL $9.16 75% $7,765 $17,650 $36,467 $7,938 $4,672 21.8% 12.8% 0.5x 3.8xUnited Continental Holdings, Inc. UAL $19.50 75% $6,445 $12,009 $37,378 $9,207 $3,076 24.6% 8.2% 0.3x 3.9xSouthwest Airlines Co. LUV $8.77 87% $6,718 $6,709 $17,023 $3,708 $1,696 21.8% 10.0% 0.4x 4.0xUS Airways Group, Inc. LCC $10.46 72% $2,024 $4,158 $13,708 $2,793 $1,136 20.4% 8.3% 0.3x 3.7xJetBlue Airways Corp. JBLU $4.80 76% $1,748 $3,429 $4,821 $1,381 $638 28.6% 13.2% 0.7x 5.4xAlaska Air Group, Inc. ALK $35.06 88% $2,538 $2,251 $4,569 $1,235 $817 27.0% 17.9% 0.5x 2.8xWestjet Airlines, Ltd. WJA $17.72 98% $2,449 $2,018 $3,193 $961 $474 30.1% 14.8% 0.6x 4.3xAllegiant Travel Co. ALGT $63.36 83% $1,219 $1,003 $880 $230 $183 26.2% 20.8% 1.1x 5.5xSpirit Airlines, Inc. SAVE $17.08 69% $1,241 $826 $1,210 $344 $183 28.4% 15.1% 0.7x 4.5x

Average 80% $3,572 $5,561 $13,250 $3,089 $1,431 25.4% 13.5% 0.6x 4.2x

Median 76% $2,449 $3,429 $4,821 $1,381 $817 26.2% 13.2% 0.5x 4.0x


Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAKirby Corp. KEX $55.28 78% $3,073 $3,885 $2,150 $705 $505 32.8% 23.5% 1.8x 7.7xMatson, Inc. MATX $20.91 39% $883 $1,221 $1,775 $281 $236 15.8% 13.3% 0.7x 5.2xInternational Shipholding Corp. ISH $16.87 70% $122 $309 $249 $61 $51 24.5% 20.7% 1.2x 6.0xRand Logistics, Inc. RLOG $7.53 81% $128 $292 $155 $41 $30 26.8% 19.6% 1.9x 9.6x

Average 67% $1,052 $1,427 $1,082 $272 $206 25.0% 19.3% 1.4x 7.1x

Median 74% $506 $765 $1,012 $171 $144 25.6% 20.2% 1.5x 6.9x





20

Industrial Conglomerates

Source: S&P Capital IQ* Note: General Electric Co. enterprise value and LTM financials excludes GE Capital

Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA EBT Revenue EBITDAGeneral Electric Co.* GE $22.71 99% $103,108 $107,608 $103,180 $30,752 $19,546 29.8% 18.9% 15.6% 1.0x 5.5xSiemens AG SIE $100.07 97% $88,566 $99,085 $97,727 $27,862 $12,163 28.5% 12.4% 9.0% 1.0x 8.1xUnited Technologies Corp. UTX $78.29 89% $70,865 $94,692 $58,078 $16,196 $9,666 27.9% 16.6% 12.9% 1.6x 9.8x3M Co. MMM $92.42 98% $65,140 $66,480 $29,606 $14,088 $7,684 47.6% 26.0% 21.2% 2.2x 8.7xDanaher Corp. DHR $55.15 98% $39,354 $42,593 $18,002 $9,381 $4,129 52.1% 22.9% 17.9% 2.4x 10.3xTyco International, Ltd. TYC $56.26 97% $26,442 $29,611 $17,714 $6,890 $3,491 38.9% 19.7% 10.7% 1.7x 8.5x

Average 96% $65,579 $73,345 $54,051 $17,528 $9,447 37.5% 19.4% 14.5% 1.7x 8.5x

Median 97% $68,002 $80,586 $43,842 $15,142 $8,675 34.4% 19.3% 14.2% 1.7x 8.6x




21Source: Capital IQ

Materials($ in millions, except per share)

Chemicals

Metals and Mining

Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAE.I. du Pont de Nemours and Co. DD $50.27 87% $47,295 $59,180 $39,432 $11,197 $6,510 28.4% 16.5% 1.5x 9.1xThe Dow Chemical Co. DOW $28.96 80% $33,907 $55,899 $56,966 $8,845 $6,669 15.5% 11.7% 1.0x 8.4xMonsanto Co. MON $91.02 99% $49,169 $47,981 $13,504 $7,051 $3,841 52.2% 28.4% 3.6x 12.5xPotash Corp. of Saskatchewan, Inc. POT $43.38 83% $37,997 $41,574 $7,683 $3,714 $3,849 48.3% 50.1% 5.4x 10.8xPraxair, Inc. PX $103.88 89% $31,455 $39,057 $11,221 $4,810 $3,471 42.9% 30.9% 3.5x 11.3xAir Products & Chemicals, Inc. APD $82.70 89% $17,756 $23,132 $9,612 $2,560 $2,375 26.6% 24.7% 2.4x 9.7xThe Sherwin-Williams Co. SHW $148.91 99% $15,491 $16,405 $9,383 $4,097 $1,142 43.7% 12.2% 1.7x 14.4xEastman Chemical Co. EMN $57.01 96% $8,252 $9,087 $7,656 $1,787 $1,413 23.3% 18.5% 1.2x 6.4xCelanese Corp. CE $37.91 72% $6,045 $8,068 $6,531 $1,197 $842 18.3% 12.9% 1.2x 9.6xW.R. Grace & Co. GRA $59.08 96% $4,492 $4,326 $3,183 $1,151 $573 36.2% 18.0% 1.4x 7.5x

Average 89% $25,186 $30,471 $16,517 $4,641 $3,068 33.5% 22.4% 2.3x 10.0x

Median 89% $24,605 $31,094 $9,497 $3,905 $2,923 32.3% 18.2% 1.6x 9.7x


Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDABarrick Gold Corp. ABX $41.70 76% $41,746 $55,785 $14,731 $7,655 $7,876 52.0% 53.5% 3.8x 7.1xFreeport-McMoRan Copper & Gold, Inc. FCX $39.58 81% $37,740 $41,140 $17,659 $7,623 $7,021 43.2% 39.8% 2.3x 5.9xGoldcorp, Inc. GG $45.85 85% $38,723 $38,737 $5,515 $3,226 $2,986 58.5% 54.1% 7.0x 13.0xNewmont Mining Corp. NEM $56.02 77% $28,260 $35,436 $10,421 $6,257 $4,996 60.0% 47.9% 3.4x 7.1xSouthern Copper Corp. SCCO $34.36 93% $28,886 $30,114 $6,687 $3,974 $3,823 59.4% 57.2% 4.5x 7.9xAlcoa, Inc. AA $8.86 76% $9,435 $20,866 $23,791 $3,136 $1,961 13.2% 8.2% 0.9x 10.6xUnited States Steel Corp. X $19.07 59% $2,748 $5,990 $20,089 $1,779 $1,084 8.9% 5.4% 0.3x 5.5xWalter Energy, Inc. WLT $32.46 39% $2,032 $4,167 $2,687 $893 $714 33.2% 26.6% 1.6x 5.8x

Average 73% $23,696 $29,029 $12,698 $4,318 $3,808 41.0% 36.6% 3.0x 7.9x

Median 77% $28,573 $32,775 $12,576 $3,600 $3,405 47.6% 43.9% 2.9x 7.1x




22Source: Capital IQ

Materials($ in millions, except per share)

Paper and Forest Products

Closing Price % of 52 Equity EnterpriseCompany Ticker 9/28/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAInternational Paper Co. IP $36.32 98% $15,954 $25,479 $27,125 $7,094 $3,581 26.2% 13.2% 0.9x 7.1xMeadWestvaco Corp. MWV $30.60 94% $5,389 $6,808 $6,155 $1,374 $926 22.3% 15.0% 1.1x 7.4xDomtar Corp. UFS $78.29 78% $2,811 $3,436 $5,524 $1,222 $853 22.1% 15.4% 0.6x 4.0xResolute Forest Products, Inc. RFP $13.00 71% $1,268 $1,527 $4,593 $1,124 $462 24.5% 10.1% 0.3x 3.3x

Average 85% $6,356 $9,313 $10,849 $2,704 $1,456 23.8% 13.4% 0.8x 5.5x

Median 86% $4,100 $5,122 $5,840 $1,298 $890 23.4% 14.1% 0.8x 5.6x


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Documents

Industrials M&A Report - Hyde Park Capital · 09/06/2012 Century Plastics, Inc. Materials Autometal S.A. $36.2 NA N A 09/05/2012 Cobasys, LLC Electrical Equipment Robert Bosch Investment