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QUARTERLY UPDATE Q1 2019
WHOLESALE & DISTRIBUTION
Page 2
INDUSTRY OVERVIEWINDUSTRIAL MACHINERY AND EQUIPMENT WHOLESALING IN CANADA
The industrial machinery and equipment wholesaling industry in Canada primarily distributes specialized machinery,equipment and related parts used in manufacturing, extraction and warehousing industries. These products includedrilling, refining and pipeline products for the energy sector; hoists and forklifts for the material handling sector, anddiesel engines, pumps and metalworking machinery for the manufacturing sector.
INDUSTRY GLANCE2018 Revenue
$21.8BAnnual Growth 2013 – 2018
0.0%Projected Annual Growth 2018 – 2023
0.3%Number of Businesses in 2018
4,904
33%
20%17%
11%
9%7%
2%
PRODUCTS & SERVICES SEGMENTATION (2018)
General purpose machinery and equipmentOil well, refinery and pipeline machineryOther industrial machinery and equipmentMaterials handling equipmentMetalworking machinery and equipmentHydraulic and pneumatic machinery and equipmentFood processing machinery
The industrial machinery and equipment wholesaling industryexperienced a modest growth of 4.3% in revenue over the five-yearperiod leading up to 2017.Increased level of manufacturing activity and industrial output in theCanadian economy are the key drivers for growth in this industry.Over the next five years to 2023, the industry is expected to continuegrowing at an annualized rate of 0.3% to $22.1 billion over the five yearsto 2023.Key external drivers:
1. Industrial capacity utilization2. Demand from oil and gas extraction3. Aggregate private investment4. Demand from wholesale trade, durable goods5. World price of steel
The industry has experienced structural change in recent years, including:• Fluctuations in price of crude oil – Demand from oil and gas
markets for industry products increased with higher oil prices,leading to booming natural resource production in Canada in 2014.The industry then experienced a decline in revenue in 2015 and2016 due to weaker demand from the oil and gas markets causedby a decline in the price of crude oil.
• Increased global commodity prices – The industry will benefitfrom increased commodity prices leading to growing demand fromoil and gas markets. This trend is expected to continue withrevenue projected to increase a marginal 0.1% in 2018.
• M&A activity– In an attempt to gain economies of scale, largeindustry operators have focused on mergers and acquisition(M&A) activity to lower purchasing costs and increase profitmargins.
• Maintenance of skilled staff – To achieve a higher bottom-line,industry operators must maintain knowledgeable and technicalstaff for sales, maintenance and repair and customer relations,which is essential in this industry as products and equipment soldby industry wholesalers require a great deal of technical expertise.
Source: IBISWorld Report 56211CA Waste Collection Services in Canada. Leach, Nathaniel. July 2018.
Page 3
INDUSTRY OVERVIEWPLUMBING, HEATING AND AIR-CONDITIONING EQUIPMENT WHOLESALING IN CANADA
The plumbing, heating and air-conditioning equipment wholesaling industry in Canada is defined as distributing pipe,valves and fittings, plumbing fixtures, hydronics and heating, ventilation and air-conditioning equipment. The industryincludes wholesale companies that purchase products directly from manufacturers and subsequently distribute productsto contractors, end-use businesses and retailers.
INDUSTRY GLANCE2018 Revenue
$14.6BAnnual Growth 2013 – 2018
4.1%Projected Annual Growth 2018 – 2023
2.3%Number of Businesses in 2018
1,393
50%
37%
13%
PRODUCTS & SERVICES SEGMENTATION (2018)
Heating, ventilation and air conditioning (HVAC)supplies
Plumbing supplies
Other
The plumbing, heating and air-conditioning equipment wholesalingindustry in Canada performed well over the 5-year period leading up to2017, with revenue growing at an annualized rate of 4.1% over the pastfive years.Strong growth in renovation activity coupled with demand from newconstruction markets has been the primary driver of industry growth overthe five-year period.Over the next five years to 2023, the industry is expected to continuegrowing at an annualized rate of 2.3% to $16.3 billion over the five yearsto 2023.Key external drivers:
1. Residential renovation expenditure2. Housing starts3. Value of non-residential construction4. Demand from hardware stores5. World price of crude oil
The industry has experienced structural change in recent years, including:• Overall housing starts – The industry has benefitted from rising
income levels and low interest rates. As a result, overall housingstarts and value of residential construction have risen leading toincreased demand for industry products.
• Non-residential construction markets – The ripple effect fromdecreased revenues in downstream energy markets due to lowerprices of crude oil and natural gas has resulted in a decline in newnon-residential construction projects.
• Government and growing green movements – Increasedgovernment regulations, particularly at the provincial level,promoting energy efficiency by offering favorable tax incentiveshave resulted in increased demand for industry products.
• Changing consumer trends – Shifting consumer trends to consumelonger-lasting and more energy-efficient products will furtherbolster demand for such products.
• Competition and consolidation – In response to technologicalefficiencies resulting in improved margins and new entrants in theindustry, there has been increased acquisition activity in theindustry.
Source: IBISWorld Report 56211CA Waste Collection Services in Canada. Leach, Nathaniel. July 2018.
Page 4
INDUSTRY OVERVIEWM&A TRANSACTIONS & PERFORMANCE
-
50
100
150
200
250
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Q12019
-
2
4
6
8
10
12
Tran
sact
ion
Volu
me
(Num
ber o
f Dea
ls)
Tran
sact
ion
Valu
e ($
Bill
ions
)
Transaction Value Transaction Volume
Source: Capital IQ. Data as of March 31, 2019, based on publicly disclosed information. *All figures are in $CAD unless otherwise stated.
• Our analysis includes the following sectors within the distribution industry: trading companies and distributors(machinery distribution, building product distribution, chemical distribution, electrical equipment distribution,transportation equipment and supplies distribution), retail distribution, food distribution, healthcare distribution andoffice product distribution.
• Overall M&A activity in the North American distribution industry, as measured by transaction volume, increasedquarter-over-quarter from Q4-2018 to Q1-2019. There were 169 and 209 reported transactions in Q4-2018 and Q1-2019, respectively. However, there was a decrease in the total reported transaction value from $2.4 billion in Q4-2018to $1.7 billion in Q1-2019.
• Of the 209 transactions announced during the quarter, 137 were related to the industrial machinery distribution sector.This represents a 42% increase in transaction volume within the sector compared to the 96 transactions announced inQ4-2018.
• Consolidation remains a key theme in the industry, which has been fueling the M&A activity, particularly within thewholesale and distribution sector. Two notable transactions that occurred in Q1-2019, include:
• Steel Dynamics Inc. acquired United Steel Supply LLC for $175 million.• Nexeo Solutions Inc. sold its plastics distribution business to One Rock Capital Partners LLC for $850 million.
M&A MARKET UPDATE FOR Q1 2019
Number of M&A transactions in Canada in Q1-2019 in wholesale and distribution 209
NORTH AMERICAN WHOLESALE & DISTRIBUTIONPUBLICLY DISCLOSED M&As
Page 5
INDUSTRY OVERVIEWNEWS
Source: https://clarkstonconsulting.com/insights/2019-wholesale-distribution-trends/*All figures are in $CAD unless otherwise stated.
2019 WHOLESALE DISTRIBUTION INDUSTRY TRENDS
The wholesale distribution industry is experiencing rapid change as businesses explore new methods and processes. Manywholesale distributors are exploring incremental growth and cost-reduction opportunities. Operators within the industrywill be required to adopt key trends in order to remain competitive and profitable. These key wholesale distributiontrends going forward include the following:
E-COMMERCE
• Leading wholesale distribution companies will continue to invest in e-commerce capabilities and platforms, leveragingthese tools for sales growth and improved customer service. Integrated e-commerce platforms enable wholesaledistributors to address challenges inherent in the distribution model, such as customer segmentation and pricing, andallows them to improve customer service while reducing overhead costs. Integrated platforms can improve acompany’s ability to provide real-time pricing, incorporating quantity tier pricing, discounts, associations, andpromotional pricing, encouraging customers to trust and rely on this method of ordering. Additionally, it allowscustomers to access order history, order status, existing purchase orders and invoices. An integrated platform alsofurther enables customer segmentation through the integration into customer relations management (CRM) systems,providing distributors with the ability to distinguish the specific characteristics and buying trends of the individualcontact conducting the transaction. This enables marketing to segment those characteristics for direct promotions andcoordination with sales reps to improve focused customer service based upon those characteristics and trends.
MERGERS, ACQUISITIONS AND DIVESTITURES
• M&A activity is expected to continue at a rapid pace within the wholesale distribution industry. In order to remaincompetitive and relevant in today’s ever-changing market, companies must differentiate themselves in one or moreways by pushing for innovation in product offering, speed-to-market, operational efficiencies or other customer-oriented strategies. Such capabilities can be costly, or difficult to grow organically, making acquisitions in the industryquite appealing as businesses seek to improve operational efficiencies or increase complementary product offerings.Conversely, strategic divestitures will help companies establish a core focus, to become a premier supplier or providean opportunity to increase reinvestment in growing the core business.
DIGITAL TRANSFORMATION
• The Internet of things (IoT) and increased data generation will drive a greater need for advanced analytics capabilitiesand data management systems in 2019. Digital transformation in the industry has generated greater access to data, butnot the ability to manage and interpret it. Wholesale distribution companies must continue to explore embedding thesecapabilities within their businesses via new talent or managed analytics to enable data-driven decision making.
WAREHOUSE AUTOMATION
• As robotics, artificial intelligence and automation continue to proliferate through the industry, operators will have theability to streamline their operations and create an autonomous, or semi-autonomous warehouse. Companies thatinvest in these advanced technologies will remain ahead of the curve and will be able to achieve tremendous ROIthrough speed of processing, increased accuracy shipping processing, and reduced overhead. The operationalimprovements delivered by warehouse automation will lead to direct improvements in customer satisfaction.
Page 6
MACROECONOMIC INDICATORS
Source: IBISWorld Industry Reports.
The key external drivers that affect the distribution industry in Canada include: industrial capacity utilization, the worldprice of crude oil, the Canadian-dollar effective exchange rate index, the world price of steel, housing starts, residentialrenovation expenditure, value of non-residential construction and aggregate private investment. Growth in thedistribution industry in Canada is expected to be fueled by lower crude oil and steel prices, a depressed Canadian dollarrelative to key trading partners and more stable industrial capacity utilization rates as a result of lower volatility in oilprices. It is important to note that if the uncertainty surrounding NAFTA negotiations and tariff disputes persist, consumerconfidence may decline, which could restrict the Canadian distribution industry from reaching full potential.
77
78
79
80
81
82
83
84
Util
izatio
n (%
)
INDUSTRIAL CAPACITY UTILIZATION
Historical Forecast
0
20
40
60
80
100
120
Pric
e pe
r Bar
rel (
$US)
WORLD PRICE OF CRUDE
Historical Forecast
95
100
105
110
115
120
125
Inde
x
CANADIAN DOLLAR EFFECTIVE EXHANGE RATE
Historical Forecast
0
50
100
150
200
250
Inde
x
WORLD PRICE OF STEEL
Historical Forecast
Page 7
MACROECONOMIC INDICATORS
Source: IBISWorld Industry Reports.
Growth in the distribution industry in Canada is also expected to increase due to a projected rise in residential renovationexpenditure, value of private non-residential construction and increase in aggregate private investment, even thoughhousing start numbers are forecasted to decline.
0
10
20
30
40
50
60
Reno
vatio
n Ex
pend
iture
($
USD
bill
ion)
RESIDENTIAL RENOVATION EXPENDITURE
Historical Forecast
0
5
10
15
20
25
30
Expe
nditu
re ($
USD
bill
ion)
NON-RESIDENTIAL CONSTRUCTION
Historical Forecast
170,000
180,000
190,000
200,000
210,000
220,000
230,000
Uni
ts
CANADIAN HOUSING STARTS
Historical Forecast
320
340
360
380
400
420
440
Spen
ding
($CA
D bi
llion
)
AGGREGATE PRIVATE INVESTMENT
Historical Forecast
Page 8
SELECT RECENT M&A TRANSACTIONS
Source: Capital IQ.All figures are in $CAD.
• Steel Dynamics, Inc. acquired United Steel Supply, LLCfor a reported $175 million.
• United Steel Supply, LLC distributes galvanized and pre-painted steel coil products for metal roofing and sidingapplications in agriculture, residential and commercialconstruction, and industrial markets in the U.S. andinternationally.
• Steel Dynamics, Inc., is a steel manufacturer, andmetals recycler in the US and international markets.The company was founded in 1993 and isheadquartered in Fort Wayne, Indiana.
• One Rock Capital Partners, LLC acquired Nexeo Plasticsfor a reported $110 million.
• Nexeo Solutions, Inc. operates as a chemical and plasticproducts distributor worldwide. Its plastics DistributionBusiness distributes chemical and plastic products inNorth America. The business is located in the U.S.
• One Rock Capital Partners LLC is a private equity firmspecializing investments in buyouts. It was founded in2010 and based in New York.
• Generex Biotechnology Corporation acquired FuseMedical for a reported $45 million.
• Fuse Medical Inc. is a distributor of medical devices inthe U.S. The company offers products in biologics, footand ankle, orthopedics, spine and sports medicine.
• Generex Biotechnology Corporation is an integratedhealthcare holding company with end-to-end solutionsfor patient centric care from rapid diagnosis throughdelivery of personalized therapies.
• EVI Industries, Inc. acquired PAC Industries Inc. for areported $17 million.
• PAC Industries sells, services and supports commerciallaundry equipment. The company was founded in 1963and is headquartered in Harrisburg, Pennsylvania withoperations in Croydon and Cranberry Twp.
• EVI Industries, Inc., through its subsidiaries, distributes,leases and rents commercial, industrial and vendedlaundry and dry cleaning equipment, and steam andhot water boilers in the U.S., Canada, the Caribbean,and Latin America.
Announced Feb 1, 2019
TEV $175 million
TEV/EBITDA 5.0x
TEV/Revenue Not disclosed
Announced Feb 08, 2019
TEV $110 million
TEV/EBITDA Not disclosed
TEV/Revenue Not disclosed
Announced Jan 16, 2019
TEV $45 million
TEV/EBITDA Not disclosed
TEV/Revenue Not disclosed
Announced Jan 22, 2019
TEV $17 million
TEV/EBITDA Not disclosed
TEV/Revenue Not disclosed
acquired
acquired
acquired
acquired
Page 9
SELECT RECENT M&A TRANSACTIONS
Source: Capital IQ.All figures are in $CAD.
• American Lighting Inc. manufactures and distributeslighting solutions for residential, commercial, andspecialty lighting markets. The company was founded in1989 and is based in Denver, Colorado.
• Novelty Lights Inc. imports and sells rope lights, holidaylights, and novelty lights. The company was founded in1999 and is based in Centennial, Colorado.
• Mill Road Capital II, L.P. specializes in mid-marketbuyout investments in publicly traded micro-capcompanies. The fund seeks to invest in the energy andpower sector. It typically invests in North America.
• Huttig Building Products, Inc., together with itssubsidiaries, distributes millwork, building materials,and wood products for new residential construction,home improvement, remodeling, and repair work in theU.S.
• Headwater Companies LLC engages in groundwaterdistribution activities. The company was founded in2003 and is headquartered in Greenwood Village,Colorado. The company operates as a subsidiary ofFranklin Electric Co., Inc.
• Milan Supply Company distributes products andequipment for wholesale water well, wastewater,environmental, storm water and related water resourcemarkets.
• MagneGas Welding Supply, LLC sells and distributeswelding gases, welding tools, hardware, weldingequipment, and safety products. The company wasincorporated in 1991 and is based in Clearwater,Florida.
• Tyler Welders Supply Inc. distributes weldingequipment and supplies. The company was founded in1974 and is based in Tyler, Texas.
Announced Jan 3, 2019
TEV $16 million
TEV/EBITDA Not disclosed
TEV/Revenue Not disclosed
Announced Mar 18, 2019
TEV $12 million
TEV/EBITDA 36.79
TEV/Revenue 0.35
Announced Jan 2, 2019
TEV $8 million
TEV/EBITDA Not disclosed
TEV/Revenue 0.27
Announced Jan 18, 2019
TEV $3.3 million
TEV/EBITDA Not disclosed
TEV/Revenue Not disclosed
acquired
acquired
acquired
acquired
Page 10
PUBLIC COMPARABLE ANALYSISTRADING MULTIPLES & OPERATING STATISTICS
Source: Capital IQ. Data as March 31, 2018.Estimates based on Capital IQ calendar year consensus.“LTM” refers to last twelve months. “NTM” refers to next twelve months.
(Figures In $CAD Millions, except percentages and ratios)
LTM Operating Figures NTM Consensus Estimates Valuation (LTM)
CompanyMarket
CapEnterprise
Value RevenueRevenue
Growth EBITDAEBITDA Margin
Revenue Growth
EBITDA Margin
NTM EV/EBITDA
EV/EBITDA
EV/Revenue
Trading Companies and Distributors
W.W. Grainger, Inc. $22,364 $24,842 $15,312 7.6% $2,211 14.4% 3.9% 14.6% 10.7x 11.2x 1.6x
Fastenal Company $24,596 $25,041 $6,801 12.4% $1,559 22.9% 7.1% 22.7% 15.2x 16.1x 3.7x
United Rentals, Inc. $12,032 $27,675 $10,980 21.2% $3,264 29.7% 13.3% 47.8% 4.7x 8.5x 2.5x
HD Supply Holdings, Inc. $9,896 $12,848 $7,915 18.1% $1,068 13.5% 7.6% 14.6% 10.3x 12.0x 1.6x
Watsco, Inc. $7,192 $7,602 $6,204 4.7% $525 8.5% 1.7% 8.6% 13.9x 14.5x 1.2x
MSC Industrial Direct Co., Inc. $6,118 $6,801 $4,405 9.4% $699 15.9% 5.8% 14.9% 9.8x 9.7x 1.5x
Toromont Industries Ltd. $5,544 $5,844 $3,504 49.1% $509 14.5% 7.4% 15.1% 10.3x 11.5x 1.7x
Finning International Inc. $3,884 $4,968 $6,996 11.8% $606 8.7% 3.3% 9.6% 7.2x 8.2x 0.7x
Univar Inc. $5,026 $8,028 $11,779 4.6% $814 6.9% 22.7% 7.0% 7.9x 9.9x 0.7x
Median $7,192 $8,028 $6,996 11.8% $814 14.4% 7.1% 14.6% 10.3x 11.2x 1.6x
Mean $10,739 $13,739 $8,211 15.4% $1,250 15.0% 8.1% 17.2% 10.0x 11.3x 1.7x
Retail Distributors
Genuine Parts Company $21,853 $25,637 $25,242 11.2% $1,892 7.5% 3.0% 7.9% 12.4x 13.6x 1.0x
LKQ Corporation $11,931 $17,379 $16,381 21.2% $1,693 10.3% 4.7% 10.8% 9.4x 10.3x 1.1x
Pool Corporation $8,731 $9,597 $4,023 6.4% $463 11.5% 8.2% 12.0% 18.3x 20.7x 2.4x
Core-Mark Holding Company, Inc. $2,276 $2,769 $17,608 5.6% $183 1.0% 28.3% 1.1% 11.6x 15.1x 0.2x
Uni-Select Inc. $587 $1,131 $2,391 21.0% $156 6.5% -0.4% 6.0% 7.9x 7.3x 0.5x
Funko, Inc. $794 $1,293 $936 32.9% $142 15.1% 17.1% 17.2% 6.9x 9.1x 1.4x
Weyco Group, Inc. $411 $386 $407 5.2% $40 9.9% N/A N/A N/A 9.6x 0.9x
AMCON Distributing Company $73 $110 $1,329 8.4% $17 1.3% N/A N/A N/A 6.4x 0.1x
Median $1,535 $2,031 $3,207 9.8% $169 8.7% 6.5% 9.4% 10.5x 9.9x 1.0x
Mean $5,832 $7,288 $8,540 14.0% $573 7.9% 10.2% 9.2% 11.1x 11.5x 0.9x
Page 11
PUBLIC COMPARABLE ANALYSISTRADING MULTIPLES & OPERATING STATISTICS
Source: Capital IQ. Data as of March 31, 2018.Estimates based on Capital IQ calendar year consensus.“LTM” refers to last twelve months. “NTM” refers to next twelve months.”
(Figures In $CAD Millions, except percentages and ratios)
LTM Operating Figures NTM Consensus Estimates Valuation (LTM)
CompanyMarket
CapEnterprise
Value RevenueRevenue
Growth EBITDAEBITDA Margin
Revenue Growth
EBITDA Margin
NTM EV/EBITDA
EV/EBITDA
EV/Revenue
Food DistributorsSysco Corporation $45,816 $56,687 $81,290 4.6% $4,523 5.6% 1.5% 5.9% 11.6x 12.5x 0.7x
US Foods Holding Corp. $10,155 $14,864 $32,947 0.1% $1,379 4.2% 2.7% 4.6% 9.6x 10.8x 0.5x
Performance Food Group Company $5,499 $7,224 $24,667 4.4% $568 2.3% 4.1% 2.5% 11.0x 12.7x 0.3x
United Natural Foods, Inc. $898 $5,164 $18,904 47.1% $483 2.6% 75.1% 2.7% 5.9x 10.7x 0.3x
The Andersons, Inc. $1,428 $2,459 $4,156 -17.4% $192 4.6% 189.3% 2.9% 7.0x 12.8x 0.6x
The Chefs' Warehouse, Inc. $1,244 $1,559 $1,969 11.0% $94 4.8% 6.0% 5.7% 13.2x 16.5x 0.8x
SpartanNash Company $763 $1,671 $10,991 1.3% $269 2.4% 3.6% 2.6% 5.7x 6.2x 0.2x
Colabor Group Inc. $55 $162 $1,203 -8.8% $18 1.5% 1.2% 1.9% 6.8x 9.1x 0.1x
Median $1,336 $3,811 $14,947 2.8% $376 3.4% 3.8% 2.8% 8.3x 11.7x 0.4x
Mean $8,232 $11,224 $22,016 5.3% $941 3.5% 35.4% 3.6% 8.9x 11.4x 0.4x
Healthcare Distributors
McKesson Corporation $30,013 $42,854 $291,354 3.9% $5,593 1.9% 1.2% 2.0% 7.4x 7.7x 0.1x
AmerisourceBergen Corporation $22,435 $25,441 $235,882 11.2% $2,946 1.2% 2.9% 1.3% 8.1x 8.6x 0.1x
Cardinal Health, Inc. $19,179 $28,357 $193,676 7.0% $3,916 2.0% 1.7% 1.9% 7.6x 7.2x 0.1x
Henry Schein, Inc. $12,164 $15,875 $17,992 5.9% $1,500 8.3% -26.2% 8.9% 13.5x 10.6x 0.9x
Patterson Companies, Inc. $2,730 $3,627 $7,343 0.5% $286 3.9% 3.2% 4.9% 9.8x 12.7x 0.5x
Owens & Minor, Inc. $345 $2,422 $13,425 5.6% $308 2.3% -1.5% 2.5% 7.5x 7.9x 0.2x
PetIQ, Inc. $923 $1,070 $721 98.2% $31 4.3% 12.5% 8.5% 15.5x 34.2x 1.5x
HLS Therapeutics Inc. $437 $557 $84 -18.2% $55 65.2% -3.2% 63.9% 10.7x 10.2x 6.6x
Median $7,447 $9,751 $15,709 5.8% $904 3.1% 1.4% 3.7% 9.0x 9.4x 0.3x
Mean $11,028 $15,026 $95,060 14.3% $1,829 11.2% -1.2% 11.7% 10.0x 12.4x 1.3x
Office Distributors
Herman Miller, Inc. $2,769 $3,010 $3,335 7.4% $351 10.5% N/A 11.9% 7.2x N/A 0.9x
Acme United Corporation $72 $125 $187 5.2% $15 7.8% 1.1% 8.2% 8.0x 8.5x 0.7x
Median $1,420 $1,567 $1,761 6.3% $183 9.2% 1.1% 10.0% 7.6x 8.5x 0.8x
Mean $1,420 $1,567 $1,761 6.3% $183 9.2% 1.1% 10.0% 7.6x 8.5x 0.8x
Page 12
PUBLIC COMPARABLE ANALYSISGROWTH & MULTIPLES
10.3x
10.5x
8.3x
9.0x
7.6x
0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x
Trading Companies and Distributors
Retail Distributors
Food Distributors
Healthcare Distributors
Office Distributors
EV/EBITDA (NTM)
11.2x
9.6x
10.8x
9.4x
8.5x
0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x
Trading Companies and Distributors
Retail Distributors
Food Distributors
Healthcare Distributors
Office Distributors
EV/EBITDA (LTM)
15%
9%
3%
4%
10%
0% 5% 10% 15% 20%
Trading Companies and Distributors
Retail Distributors
Food Distributors
Healthcare Distributors
Office Distributors
EBITDA Margin (NTM)
14%
10%
4%
3%
9%
0% 5% 10% 15% 20%
Trading Companies and Distributors
Retail Distributors
Food Distributors
Healthcare Distributors
Office Distributors
EBITDA Margin (LTM)
7%
6%
4%
1%
1%
0% 2% 4% 6% 8%
Trading Companies and Distributors
Retail Distributors
Food Distributors
Healthcare Distributors
Office Distributors
Revenue Growth (NTM)12%
15%
3%
6%
6%
0% 5% 10% 15% 20%
Trading Companies and Distributors
Retail Distributors
Food Distributors
Healthcare Distributors
Office Distributors
Revenue Growth(LTM)
Source: Capital IQ. Data as of March 31, 2018.“LTM” refers to last twelve months. “NTM” refers to next twelve months.
Median 3.8%
Median 9.2%
Median 9.0x
Median 9.4%
Median 9.6x
Median. 5.8%
Page 13
PUBLIC COMPARABLE ANALYSISPERFORMANCE ANALYSIS
Source: Capital IQ. Data as of March 31, 2018.Custom indexes are market capitalization weighted. Further detail on index constituents is provided on pages 8 and 9 .“LTM” refers to last twelve months. “NTM” refers to next twelve months.
225%
274%
321%
200%182%164%
-50%
0%
50%
100%
150%
200%
250%
300%
350%
400%
Pric
e Re
turn
(%)
BENCHMARK PERFORMANCE (Last 10 years)
S&P 500 Trading Companies & Distributors Retail DistributorsFood Distributors Healthcare Distributors Office Distributors
10.9x
12.3x11.0x
8.6x
7.2x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
EV /
NTM
EBI
TDA
Mul
tiple
INDUSTRY PEER GROUPHISTORICAL EV/NTM EBITDA
Trading Companies & Distributors Retail Distributors Food DistributorsHealthcare Distributors Office Distributors
Page 14
MNPCF – LEADERSHIP TEAM
DUE DILIGENCE LEADERSHIP
TRANSACTION LEADERSHIP
Aleem BandaliManaging Director
Dale AntonsenManaging Director
John CaggianielloManaging Director
[email protected] 416.513.4177
Brett FranklinPresident
Mike ReynoldsManaging Director
Johnny EarlManaging Director
[email protected] 604.637.1514
Dan PorterManaging Director
Stephen ShawManaging Director
Jason BurgessManaging Director
Mark RegehrManaging Director
Craig MaloneyManaging Director
Patrick KhouzamManaging Director
Page 15
MNPCF – RECENTLY CLOSED DEALS
NATIONAL
