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Industrials M&A Report

Q2 2016

HYDE PARK CAPITAL

Member FINRA/SIPC

Investment Banking | Mergers & Acquisitions | Capital Raising

Hyde Park Capital Advisors, LLC 701 N. Franklin Street

Tampa, FL 33602 Tel: 813-383-0202

www.hydeparkcapital.com

John Hill Senior Managing Director [email protected] (813) 383-0205 John McDonald Senior Managing Director [email protected] (813) 383-0206 Keith Hodgdon Managing Director [email protected] (813) 383-0208 Greg Bosl Vice President [email protected] (813) 597-2649 Jami Gold Vice President [email protected] (813) 383-0203 Jeffrey Hendricks Vice President [email protected] (678) 523-3073 Kenneth Burnside Business Development Officer [email protected] (864) 905-9633

HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising

Industry Sector 3 Months 12 months Revenue EBITDA

Construction 2.7% 11.5% 1.3x 10.1x

Electrical Equipment (1.4%) (2.8%) 2.2x 12.1x

Machinery (0.1%) (7.1%) 1.5x 10.6x

Industrial Services 5.5% 14.6% 2.5x 11.2x

Transportation (3.7%) (4.4%) 1.3x 7.6x

Industrial Conglomerates 1.3% 10.6% 2.8x 13.7x

Materials 3.0% (3.4%) 2.3x 9.8x

Median

Change in Stock Price Enterprise Value / LTM

Offer Date Issuer Industry Sector

Transaction

Type

Transaction

Value

04/04/16 FedEx Corp. Transportation Fixed-Income $3,402

04/20/16Prime Security Services

Borrower, LLCIndustrial Services Fixed-Income $3,140

05/03/16 United States Steel Corp. Materials Fixed-Income $980

05/25/16 TransDigm, Inc. Industrial Services Fixed-Income $950

04/29/16 Reliance Worldwide Corp. Materials IPO $700

05/11/16 SiteOne Landscape Supply, Inc. Materials IPO $210

06/09/16 Atkore International Group, Inc. Electrical Equipment IPO $192

05/25/16 GMS, Inc. Industrial Services IPO $147

80%

90%

100%

110%

Jun-15 Sep-15 Dec-15 Mar-16 Jun-16

S&P 500 S&P Global Industrials Sector Index Nasdaq

Capital Markets Overview

2

Public Market Performance (LTM)

Select Public Offerings – Industrials (Q2 2016)

Public Company Market Performance by Sector

Source: S&P Capital IQ

The S&P Global Industrials Sector Index rose 2.2% over the last 12 month period ended June 30, 2016, while the Nasdaq declined 3.4% and the S&P 500 increased 1.0%.

IPO activity in the Industrials industry improved in Q2 2016 after

none were completed during Q1 2016. Reliance Worldwide Corp. (ASX: RWC), which provides water control and plumbing solutions, raised $700 million in the largest IPO during the quarter.

The Industrial Conglomerates and Electrical Equipment sectors were the industry’s leaders with respect to valuation during Q2 2016, trading at EBITDA multiples of 13.7x and 12.1x, respectively.

Commentary

2.2%

($ in millions)

3.4%

1.0%


Deal Size Volume Value Volume Value Volume Value

Less than $100M 116 $4.1 60 $2.2 (48%) (47%)

$100 - $499M 36 $8.7 40 $10.6 11% 22%

$500 - $999M 15 $10.4 6 $4.4 (60%) (57%)

Total Middle Market 167 $23.2 106 $17.3 (37%) (26%)

% of Middle Market

Less than $100M 69% 18% 56% 13%

$100 - $499M 22% 37% 38% 61%

$500 - $999M 9% 45% 6% 26%

Total Middle Market 100% 100% 100% 100%

1H 2015 1H 2016 % Change

402

473

550

501

250

412

525

457

398

435

336

167

106

0

50

100

150

200

250

300

350

400

450

500

550

600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H 2015 1H 2016

Middle Market M&A Transactions by Deal Size

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

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Annual Middle Market M&A Activity – Industrials

3

As illustrated in the chart to the right, U.S. Middle Market M&A activity, or deal volume, in the Industrials industry decreased 37% to 106 closed transactions during the first half of 2016, down from 167 during the first half of 2015.

The total value of completed Middle Market M&A transactions in the Industrials industry fell 26% during the first half of 2016 to $17.3 billion, down from $23.2 billion during the first half of 2015.

Transactions valued between $500 million and $1 billion declined the most during 1H 2016 as deal volume decreased 60% and total transaction value fell 57% compared with the prior year period.

Commentary

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

($ in billions)

Less than $100M $100 - $499M $500 - $999M Less than $100M $100 - $499M $500 - $999M

$48.6

$52.5

$75.2

$54.4

$21.6

$43.3

$56.4

$51.7 $51.2

$57.6

$46.1

$23.2

$17.3

$0

$10

$20

$30

$40

$50

$60

$70

$80

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H 2015 1H 2016


Deal Size Volume Value Volume Value Volume Value

Less than $100M 55 $1.8 31 $1.0 (44%) (45%)

$100 - $499M 14 $3.4 21 $5.4 50% 60%

$500 - $999M 10 $6.7 3 $2.6 (70%) (62%)

Total Middle Market 79 $11.9 55 $8.9 (30%) (25%)

% of Middle Market

Less than $100M 70% 15% 57% 11%

$100 - $499M 18% 28% 38% 60%

$500 - $999M 12% 57% 5% 29%

Total Middle Market 100% 100% 100% 100%

Q2 2015 Q2 2016 % Change

Quarterly Middle Market M&A Activity – Industrials

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

Middle Market M&A Transactions by Deal Size

($ in billions)

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4

As detailed in the table on the right, Middle Market M&A activity in the Industrials industry decreased 30% to 55 completed transactions during Q2 2016 compared to Q2 2015; while the total value of completed transactions fell 25% to $8.9 billion.

During Q2 2016, transactions valued at $500 to $999 million saw

the largest decline compared with the prior year period as deal volume and value within this size range fell 70% and 62%, respectively.

As evidenced in the charts on this page, increased volatility in the

capital markets coupled with slow global growth had a negative impact on M&A activity within the Industrial industry during Q2 2016.

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

69

100

108

121

96

131

98

110

88

7983

86

5155

0

25

50

75

100

125

150

Q1 '13 Q2'13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16

$10.0 $9.7

$14.8

$16.7

$13.1

$16.9

$14.5

$13.2

$11.4 $11.9

$11.1

$11.8

$8.4 $8.9

$0.0

$3.0

$6.0

$9.0

$12.0

$15.0

$18.0

$21.0

Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16


Recent M&A Activity – Industrials

Select Announced M&A Transactions (Q2 2016)

5

Source: S&P Capital IQ.

Announced

Date Target Buyer Industry

Enterprise

Value ($mm)

EV /

Revenue

EV /

EBITDA

06/21/16 SolarCity Corp. Tesla Motors, Inc. Electrical Equipment $6,921.4 12.9x NA

06/21/16 American Science & Engineering, Inc. OSI Systems, Inc. Transportation $182.5 1.8x NA

06/16/16 Dejana Truck & Utility Equipment Co. Douglas Dynamics, Inc. Machinery $206.0 1.4x NA

06/14/16 DST Systems, Inc. Broadridge Investor Corp. Industrial Services $410.0 0.4x NA

06/13/16 BWAY Parent Co., Inc. Stone Canyon Industries, LLC Materials $2,400.0 NA NA

06/10/16 Axiall Corp. Westlake Chemical Corp. Materials $3,622.9 1.1x NA

05/31/16 Vertellus Specialties, Inc. Black Diamond Capital Materials $453.8 NA NA

05/27/16 Blue Bird Corp. American Securities Machinery $416.1 0.5x NA

05/24/16 ILC Industries, LLC TransDigm, Inc. Transportation $1,000.0 NA NA

05/24/16 American Covers, Inc. Energizer Reliance, Inc. Materials $340.0 NA NA

05/23/16 Wyle, Inc. KBR Holdings, LLC Transportation $600.0 NA NA

05/19/16 Lifestorage, LP Sovran Acquisition Ltd. Industrial Services $1,300.0 NA NA

05/18/16 Monsanto Co. Bayer AG Materials $63,980.6 4.8x NA

05/18/16 Cambridge International, Inc. Rexnord Corp. Machinery $210.0 NA NA


Recent M&A Activity – Industrials

Select Announced M&A Transactions (Q2 2016)

6


Announced Date Target Buyer Industry

Enterprise Value ($mm)

EV / Revenue

EV / EBITDA

05/17/16 Herndon Aerospace & Defense Co. KLX, Inc. Transportation $210.0 1.6x NA

05/16/16Terex Corp. (material handlingand port solutions business)

Konecranes Plc Machinery $1,332.3 0.9x 11.9x

05/16/16 Armed Forces Services Corp. Magellan Healthcare, Inc. Industrial Services $127.5 0.9x NA

05/13/16 Great Plains Manufacturing, Inc. Kubota U.S.A., Inc. Machinery $430.0 NA NA

05/12/16 The Climate Control Group, Inc. NIBE Energy Systems, Inc. Machinery $364.0 1.3x 14.6x

05/05/16 NRG EV Services, LLC Capricorn Investment Group Electrical Equipment NA NA NA

04/30/16 Emerald Performance Materials, LLC DyStar LP Materials $245.0 NA NA

04/29/16 Power Service, Inc. NOW, Inc. Machinery $90.0 NA NA

04/26/16 Kaydon Corp. Stabilus S.A. Machinery $339.0 2.8x NA

04/25/16 Ball Corp. Ardagh Group S.A. Materials NA NA NA

04/04/16 Heritage Bag Co. Novolex Materials NA NA NA

04/04/16 Virgin America, Inc. Alaska Air Group, Inc. Transportation $2,432.4 1.6x 11.5x

04/01/16 Downhole Technology, LLC Schoeller-Bleckmann Oilfield Equipment AG Machinery $151.5 3.5x NA


20

5

30

22

5

12

62

19

46

17

0

17

0 10 20 30 40 50 60 70

Materials

Transportation

Industrial Services

Machinery

Electrical Equipment

Construction

1H 2015 1H 2016

$3.1

$0.8

$4.3

$3.5

$1.1

$2.5

$6.9

$2.7

$5.3

$2.0

$0.0

$1.6

$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0

Materials

Transportation

Industrial Services

Machinery


Construction

1H 2015 1H 2016

M&A Activity by Industrial Sector

% Change

% Change

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

7

Source: S&P Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion). Screen excludes Aerospace and Defenses and Professional Services.

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

19%

70%

30%

35%

74%

68%

($ in billions)

N/A

29%

56%

58%

73%

N/A


During the first half of 2016, financial sponsors were active across many sectors within the Industrials Industry, announcing a number of significant buyouts as shown to the right.

Several notable private equity backed transactions were

announced including: Stone Canyon Industries' acquisition of BWAY Parent Co. for $2.4 billion; TA Associates Management’s proposed purchase of Conservice; and AEA Investors’ acquisition of Generation Brands, LLC.

In total, financial sponsors accounted for approximately 14% of completed deal volume and 19% of deal value during 1H ’16.

Select Private Equity Transactions – Industrials (Q2 2016)

Financial Sponsors vs. Strategic Buyers

Private Equity Activity – Industrials

8

Commentary

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

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Financial Sponsor Strategic Buyer

$0.0

$2.5

$5.0

$7.5

$10.0

$12.5

$15.0

$17.5

$20.0

$22.5

$25.0

1H '15 1H '16

$23.2

25%$17.3

81%

13% 19%

87%

167

106

0

20

40

60

80

100

120

140

160

180

1H '15 1H '16

10%

90%

14%

86%

37%

Announced

Date Target Buyer Industry

Enterprise

Value ($mm)

06/17/16 Evergreen Industrial Services, Inc. The Sterling Group Industrial Services NA

06/14/16 Electric Guard Dog, LLC Snow Phipps Group Materials NA

06/13/16 Ennis-Flint Inc. Olympus Partners Materials NA

06/13/16 BWAY Parent Co, Inc. Stone Canyon Industries Materials $2,400.0

06/10/16 Forum Plastics, Inc. Squadron Capital Materials NA

06/10/16 Panolam Industries International, Inc. Insight Equity Construction NA

06/09/16 United Plastics Group, Inc. Turnspire Capital Partners Materials NA

06/09/16 American Global Logistics Constitution Capital Partners Transportation NA

06/08/16 Conservice TA Associates Management, L.P. Industrial Services NA

06/01/16 Bulk Tank, Inc. Sage Capital Machinery NA

05/31/16 MGS Mfg. Group, Inc. Mason Wells Materials NA

05/31/16 Vertellus Specialties, Inc. Black Diamond Capital Management Materials $453.8

05/28/16 Standard Components, Inc. Summit Equity Group Machinery NA

05/27/16 Blue Bird Corp. American Securities Machinery $416.1

05/26/16 DeBusk Services Group, LLC Turnbridge Capital Industrial Services NA

05/25/16 Generation Brands, LLC AEA Investors LP Materials NA

05/25/16 Royal Pacific Ltd.Midwest Mezzanine Funds;

Fulton Capital, LLCElectrical Equipment NA

05/17/16 NSi Industries, LLC Blue Sea Capital, LLC Electrical Equipment NA

05/13/16 Amerijet International, Inc. ZS Fund L.P. Transportation NA


70%

80%

90%

100%

110%


S&P 500 Machinery

70%

80%

90%

100%

110%


S&P 500 Electrical Equipment

80%

90%

100%

110%

120%


S&P 500 Construction

Industry Sector Overview – Recent Stock Price Performance


Commentary

9

Construction

Machinery


The charts included on the following pages detail the recent stock price performance by sector for the leading public companies within the Industrials industry for the trailing 12-month period ending June 30, 2016. The shaded section is the most recent 3-month period (Q2) for each sector and relative to the S&P 500.

For the 12-month period ending June 30, 2016, the Industrial Services and Construction sectors saw the largest ascent, rising 14.6% and 11.5%, respectively. Machinery saw the largest decline, falling 7.1%.

During Q2 2016, the Industrials industry produced mixed results with the Industrial Services and Materials sectors increasing the most at 5.0% and 3.0% respectively.

11.5%

1.0%

1.0% 1.0%

7.1%

2.8%


80%

90%

100%

110%

120%


S&P 500 Transportation

80%

90%

100%

110%

120%


S&P 500 Industrial Conglomerates

70%

80%

90%

100%

110%


S&P 500 Materials

80%

90%

100%

110%

120%


S&P 500 Industrial Services

Industry Sector Overview – Recent Stock Price Performance

Industrial Conglomerates

Industrial Services

10

Transportation


Materials

4.4%

10.6%

1.0%

1.0%

3.4%

14.6%

1.0%

1.0%


Closing Price % of 52 Equity Enterprise

Company Ticker 6/30/16 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA

AECOM Technology Corp. ACM $31.77 93% $4,890 $8,948 $17,952 $621 $1,015 3.5% 5.7% 0.5x 8.8x

Fluor Corp. FLR $49.28 88% $7,119 $6,363 $17,989 $1,053 $1,076 5.9% 6.0% 0.4x 5.9x

Jacobs Engineering Group, Inc. JEC $49.81 93% $6,108 $6,238 $11,654 $1,843 $685 15.8% 5.9% 0.5x 9.1x

EMCOR Group, Inc. EME $49.26 94% $3,091 $3,021 $6,875 $951 $364 13.8% 5.3% 0.4x 8.3x

Tutor Perini Corp. TPC $23.55 97% $1,168 $1,901 $4,939 $371 $171 7.5% 3.5% 0.4x 11.1x

KBR, Inc. KBR $13.24 66% $1,897 $1,121 $4,656 $323 $210 6.9% 4.5% 0.2x 5.3x

Average 88% $3,876 $3,729 $9,223 $908 $501 10.0% 5.0% 0.4x 8.0x

Median 93% $3,091 $3,021 $6,875 $951 $364 7.5% 5.3% 0.4x 8.3x

Enterprise Value /

LTM LTM Margins LTM



Masco Corp. MAS $30.94 94% $10,442 $12,566 $7,203 $2,327 $1,123 32.3% 15.6% 1.7x 11.2x

Fortune Brands Home & Security, Inc. FBHS $57.97 97% $9,390 $10,760 $4,735 $1,648 $685 34.8% 14.5% 2.3x 15.7x

Owens Corning OC $51.52 98% $6,064 $8,002 $5,378 $1,224 $906 22.8% 16.8% 1.5x 8.8x

AO Smith Corp. AOS $88.11 100% $7,858 $7,505 $2,555 $1,043 $484 40.8% 18.9% 2.9x 15.5x

Lennox International, Inc. LII $142.60 100% $6,417 $7,438 $3,524 $1,005 $470 28.5% 13.3% 2.1x 15.8x

USG Corp. USG $26.96 82% $3,968 $5,529 $3,837 $733 $573 19.1% 14.9% 1.4x 9.7x

Armstrong World Industries, Inc. AWI $39.15 64% $2,188 $3,019 $2,440 $614 $289 25.2% 11.8% 1.2x 10.5x

Simpson Manufacturing Co., Inc. SSD $39.97 100% $1,956 $1,724 $817 $374 $151 45.8% 18.5% 2.1x 11.4x

Average 92% $5,406 $6,282 $3,327 $949 $508 31.0% 15.6% 1.9x 12.5x

Median 98% $6,064 $7,438 $3,524 $1,005 $484 28.5% 14.9% 2.1x 11.4x

LTM Margins

Enterprise Value /

LTM LTM

Construction and Engineering

Industry Sector Overview – Public Company Analysis

Building Products

($ in millions, except per share)

11

Construction





Rockwell Automation, Inc. ROK $114.82 91% $15,323 $14,804 $6,050 $2,549 $1,214 42.1% 20.1% 2.4x 12.2x

Ametek, Inc. AME $46.23 80% $11,092 $12,924 $3,935 $1,436 $1,070 36.5% 27.2% 3.3x 12.1x

Acuity Brands, Inc. AYI $247.96 94% $10,817 $10,835 $3,125 $1,358 $537 43.5% 17.2% 3.5x 20.2x

Hubbell, Inc. HUBB $105.47 95% $6,070 $6,735 $3,416 $1,122 $594 32.8% 17.4% 2.0x 11.3x

Woodward, Inc. WWD $57.64 97% $3,725 $4,357 $1,982 $561 $317 28.3% 16.0% 2.2x 13.8x

Belden, Inc. BDC $60.37 75% $2,592 $4,139 $2,304 $946 $366 41.1% 15.9% 1.8x 11.3x

Generac Holdings, Inc. GNRC $34.96 88% $2,389 $3,451 $1,292 $458 $249 35.5% 19.3% 2.7x 13.9x

Brady Corp. BRC $30.56 93% $1,556 $1,657 $1,127 $547 $137 48.5% 12.2% 1.5x 12.1x

Average 89% $5,463 $6,300 $2,454 $918 $467 38.0% 17.9% 2.4x 13.5x

Median 93% $3,725 $4,357 $2,304 $946 $366 36.5% 17.2% 2.2x 12.1x

Enterprise Value /

LTM LTM Margins LTM


12






Construction and Farm Machinery


13

Industrial Machinery

Machinery




Illinois Tool Works, Inc. ITW $104.16 95% $37,893 $42,545 $13,334 $5,577 $3,427 41.8% 25.7% 3.2x 12.4x

Eaton Corp. ETN $59.73 88% $27,583 $35,811 $20,153 $6,441 $3,201 32.0% 15.9% 1.8x 11.2xStanley Black & Decker, Inc. SWK $111.22 97% $16,576 $20,438 $11,279 $4,148 $1,911 36.8% 16.9% 1.8x 10.7x

Parker Hannifin Corp. PH $108.05 92% $14,793 $15,944 $11,361 $2,537 $1,485 22.3% 13.1% 1.4x 10.7xDover Corp. DOV $69.32 96% $10,844 $13,606 $6,791 $2,528 $1,213 37.2% 17.9% 2.0x 11.2x

Flowserve Corp. FLS $45.17 86% $5,942 $7,330 $4,358 $1,472 $684 33.8% 15.7% 1.7x 10.7xDonaldson Co., Inc. DCI $34.36 93% $4,653 $5,016 $2,237 $758 $352 33.9% 15.8% 2.2x 14.2x

The Timken Co. TKR $30.66 83% $2,493 $3,052 $2,779 $756 $418 27.2% 15.0% 1.1x 7.3x

Average 91% $15,097 $17,968 $9,037 $3,027 $1,586 33.1% 17.0% 1.9x 11.1x

Median 92% $12,819 $14,775 $9,035 $2,533 $1,349 33.8% 15.8% 1.8x 11.0x

Enterprise Value /

LTM LTM Margins LTM



Caterpillar, Inc. CAT $75.81 89% $44,690 $77,554 $41,795 $8,932 $5,629 21.4% 13.5% 1.9x 13.8xDeere & Co. DE $81.04 83% $26,188 $60,826 $27,670 $6,264 $3,783 22.6% 13.7% 2.2x 16.1x

PACCAR, Inc. PCAR $51.87 78% $18,313 $23,548 $17,916 $2,852 $2,626 15.9% 14.7% 1.3x 9.0xCummins, Inc. CMI $112.44 85% $19,509 $20,399 $18,205 $4,673 $2,351 25.7% 12.9% 1.1x 8.7xAGCO Corp. AGCO $47.13 81% $3,971 $5,291 $7,250 $1,505 $579 20.8% 8.0% 0.7x 9.1x

The Toro Company TTC $88.20 98% $4,958 $5,145 $2,413 $871 $388 36.1% 16.1% 2.1x 13.3xOshkosh Corp. OSK $47.71 96% $3,589 $4,545 $6,102 $1,010 $478 16.5% 7.8% 0.7x 9.5x

Joy Global, Inc. JOY $21.14 60% $2,065 $2,911 $2,786 $651 $253 23.4% 9.1% 1.0x 11.5xManitowoc Co., Inc. MTW $5.45 28% $744 $1,006 $3,437 $833 $329 24.2% 9.6% 0.3x 3.1x

Average 78% $13,781 $22,358 $14,175 $3,066 $1,824 23.0% 11.7% 1.3x 10.4x

Median 83% $4,958 $5,291 $7,250 $1,505 $579 22.6% 12.9% 1.1x 9.5x

Enterprise Value /

LTM LTM Margins LTM



Trading Companies and Distributors


14

Machinery




W.W. Grainger, Inc. GWW $227.25 95% $14,269 $16,144 $10,081 $4,149 $1,473 41.2% 14.6% 1.6x 11.0xUnited Rentals, Inc. URI $67.10 79% $6,175 $13,663 $5,804 $2,462 $1,750 42.4% 30.2% 2.4x 7.8x

Fastenal Co. FAST $44.39 89% $12,859 $13,133 $3,919 $1,956 $904 49.9% 23.1% 3.4x 14.5xWatsco, Inc. WSO $140.69 100% $4,578 $5,039 $4,147 $1,012 $352 24.4% 8.5% 1.2x 14.3x

MSC Industrial Direct Co., Inc. MSM $70.56 90% $4,331 $4,561 $2,846 $1,282 $448 45.0% 15.7% 1.6x 10.2xWESCO International, Inc. WCC $51.49 74% $2,485 $3,808 $7,473 $1,479 $410 19.8% 5.5% 0.5x 9.3xEnerSys ENS $59.47 84% $2,661 $2,887 $2,355 $628 $322 26.7% 13.7% 1.2x 9.0x

Applied Industrial Technologies, Inc. AIT $45.14 96% $1,781 $2,093 $2,519 $707 $195 28.1% 7.7% 0.8x 10.7xTitan Machinery, Inc. TITN $11.15 66% $236 $769 $1,299 $227 $37 17.4% 2.8% 0.6x 21.0x*

Average 86% $5,486 $6,900 $4,494 $1,545 $654 32.8% 13.5% 1.5x 10.8x

Median 89% $4,331 $4,561 $3,919 $1,282 $410 28.1% 13.7% 1.2x 10.5x

Enterprise Value /

LTM LTM Margins LTM




Iron Mountain, Inc. IRM $39.83 100% $8,451 $13,379 $3,009 $1,715 $904 57.0% 30.1% 4.4x 14.8x

Cintas Corp. CTAS $98.13 100% $10,975 $11,911 $4,777 $2,063 $918 43.2% 19.2% 2.5x 13.0x

KAR Auction Services, Inc. KAR $41.74 100% $5,888 $8,825 $2,752 $1,188 $672 43.2% 24.4% 3.2x 13.1x

Avery Dennison Corp. AVY $74.75 97% $6,920 $7,957 $5,924 $1,638 $712 27.7% 12.0% 1.3x 11.2x

R.R. Donnelley & Sons Co. RRD $16.92 89% $3,536 $6,863 $11,162 $2,454 $1,139 22.0% 10.2% 0.6x 6.0x

Copart, Inc. CPRT $49.01 98% $6,105 $6,668 $1,218 $547 $430 44.9% 35.3% 5.5x 15.5x

Pitney Bowes, Inc. PBI $17.80 82% $3,535 $6,141 $3,532 $1,999 $786 56.6% 22.2% 1.7x 7.8x

Corrections Corp. of America CXW $35.02 99% $4,125 $5,476 $1,814 $545 $446 30.0% 24.6% 3.0x 12.3x

The Brink's Co. BCO $28.49 81% $1,407 $1,731 $3,007 $568 $225 18.9% 7.5% 0.6x 7.7x

Average 93% $5,311 $6,947 $4,273 $1,375 $666 35.8% 19.4% 2.3x 10.8x

Median 97% $5,007 $6,766 $3,270 $1,413 $692 36.6% 20.7% 2.1x 11.7x

Enterprise Value /

LTM LTM Margins LTM



Waste Management, Inc. WM $66.27 100% $30,048 $38,947 $13,097 $4,819 $3,462 36.8% 26.4% 3.0x 11.2x

Republic Services, Inc. RSG $51.31 100% $17,926 $25,469 $9,194 $3,549 $2,563 38.6% 27.9% 2.8x 9.9x

Stericycle, Inc. SRCL $104.12 69% $8,958 $12,144 $3,197 $1,424 $816 44.5% 25.5% 3.8x 14.9x

Waste Connections, Inc. WCN $72.05 97% $8,875 $11,044 $2,126 $942 $711 44.3% 33.4% 5.2x 15.5x

Rollins, Inc. ROL $29.27 96% $6,399 $6,268 $1,507 $761 $291 50.5% 19.3% 4.2x 21.5x

Covanta Holding Corp. CVA $16.45 75% $2,176 $4,491 $1,665 $526 $343 31.6% 20.6% 2.7x 13.1x

Clean Harbors, Inc. CLH $52.11 96% $3,029 $4,056 $3,179 $904 $484 28.4% 15.2% 1.3x 8.4x

Tetra Tech, Inc. TTEK $30.75 97% $1,847 $1,925 $1,749 $315 $191 18.0% 10.9% 1.1x 10.1x

Sims Metal Management, Ltd. ASX:SGM $5.83 65% $1,194 $913 $3,914 $440 $72 11.2% 1.8% 0.2x 12.7x

Casella Waste Systems, Inc. CWST $7.85 99% $320 $842 $555 $170 $95 30.6% 17.2% 1.5x 8.8x

Schnitzer Steel Industries, Inc. SCHN $17.60 82% $478 $678 $1,419 $176 $73 12.4% 5.1% 0.5x 9.3x

Average 89% $7,386 $9,707 $3,782 $1,275 $827 31.6% 18.5% 2.4x 12.3x

Median 96% $3,029 $4,491 $2,126 $761 $343 31.6% 19.3% 2.7x 11.2x

Enterprise Value /

LTM LTM Margins LTM


Environmental and Facilities Services


15

Industrial Services

Diversified Support Services





United Parcel Service, Inc. UPS $107.72 100% $97,083 $106,324 $58,804 $14,574 $9,964 24.8% 16.9% 1.8x 10.7x

FedEx Corp. FDX $151.78 88% $42,347 $47,994 $50,365 $14,457 $7,531 28.7% 15.0% 1.0x 6.4x

CH Robinson Worldwide, Inc. CHRW $74.25 98% $10,742 $11,532 $13,249 $1,233 $933 9.3% 7.0% 0.9x 12.4x

Expeditors International of Washington, Inc. EXPD $49.04 95% $9,210 $8,199 $6,358 $923 $750 14.5% 11.8% 1.3x 10.9x

Atlas Air Worldwide Holdings, Inc. AAWW $41.42 72% $1,027 $2,575 $1,796 $591 $363 32.9% 20.2% 1.4x 7.1x

Forward Air Corp. FWRD $44.53 84% $1,378 $1,411 $983 $250 $143 25.4% 14.6% 1.4x 9.8x

Hub Group, Inc. HUBG $38.37 87% $1,371 $1,311 $3,496 $432 $166 12.4% 4.7% 0.4x 7.9x

Average 89% $23,308 $25,621 $19,293 $4,637 $2,836 21.1% 12.9% 1.2x 9.3x

Median 88% $9,210 $8,199 $6,358 $923 $750 24.8% 14.6% 1.3x 9.8x

LTM

Enterprise Value /

LTM Margins LTM


Air Freight and Logistics


16

Transportation

Road and Rail




Union Pacific Corp. UNP $87.25 88% $74,302 $87,328 $20,369 $10,436 $9,503 51.2% 46.7% 4.3x 9.2xCSX Corp. CSX $26.08 79% $25,245 $34,967 $11,042 $4,514 $4,514 40.9% 40.9% 3.2x 7.7x

Norfolk Southern Corp. NSC $85.13 86% $25,496 $34,408 $10,105 $4,028 $4,033 39.9% 39.9% 3.4x 8.5xKansas City Southern KSU $90.09 89% $9,793 $12,374 $2,361 $1,101 $1,135 46.6% 48.1% 5.2x 10.9xJB Hunt Transport Services, Inc. JBHT $80.93 90% $9,288 $10,234 $6,351 $1,275 $1,084 20.1% 17.1% 1.6x 9.4x

AMERCO UHAL $374.55 86% $7,339 $9,244 $3,314 $1,176 $1,247 35.5% 37.6% 2.8x 7.4xRyder System, Inc. R $61.14 65% $3,261 $8,795 $6,675 $1,503 $1,808 22.5% 27.1% 1.3x 4.9xGenesee & Wyoming, Inc. GWR $58.95 77% $3,437 $5,690 $2,045 $731 $573 35.7% 28.0% 2.8x 9.9xOld Dominion Freight Line, Inc. ODFL $60.31 81% $5,084 $5,199 $2,977 $898 $661 30.2% 22.2% 1.7x 7.9x

Landstar System, Inc. LSTR $68.66 93% $2,940 $2,875 $3,179 $700 $258 22.0% 8.1% 0.9x 11.1xWerner Enterprises, Inc. WERN $22.97 78% $1,665 $1,802 $2,045 $550 $355 26.9% 17.4% 0.9x 5.1x

Average 82% $9,355 $12,559 $5,009 $1,648 $1,567 32.0% 28.6% 2.4x 8.3x

Median 83% $6,211 $9,020 $3,246 $1,138 $1,109 32.8% 27.6% 2.3x 8.2x

LTM

Enterprise Value /

LTM Margins LTM




Kirby Corp. KEX $62.39 79% $3,386 $4,107 $2,019 $752 $544 37.3% 26.9% 2.0x 7.6x

Matson, Inc. MATX $32.29 61% $1,420 $1,881 $1,941 $375 $295 19.3% 15.2% 1.0x 6.4x

Rand Logistics, Inc. RLOG $1.03 31% $19 $224 $148 $42 $29 28.5% 19.5% 1.5x 7.8x

International Shipholding Corp. ISHC $0.30 4% $2 $111 $245 $46 $12 18.9% 4.8% 0.5x 9.3x

Average 44% $1,207 $1,581 $1,088 $304 $220 26.0% 16.6% 1.2x 7.8x

Median 46% $719 $1,053 $1,093 $211 $162 23.9% 17.3% 1.2x 7.7x

Enterprise Value /

LTM LTM Margins LTM


Airlines


17

Transportation

Marine




American Airlines Group, Inc. AAL $28.31 60% $17,711 $32,337 $40,134 $14,137 $8,600 35.2% 21.4% 0.8x 3.8xDelta Air Lines, Inc. DAL $36.43 69% $28,434 $33,283 $40,307 $12,091 $8,352 30.0% 20.7% 0.8x 4.0x

Southwest Airlines Co. LUV $39.21 76% $25,565 $25,504 $20,333 $8,133 $5,670 40.0% 27.9% 1.3x 4.5xUnited Continental Holdings, Inc. UAL $41.04 66% $14,672 $21,593 $36,933 $13,918 $7,342 37.7% 19.9% 0.6x 2.9xAlaska Air Group, Inc. ALK $58.29 67% $7,350 $6,390 $5,733 $2,416 $1,781 42.1% 31.1% 1.1x 3.6x

JetBlue Airways Corp. JBLU $16.56 61% $5,669 $5,939 $6,541 $2,783 $1,658 42.5% 25.3% 0.9x 3.6xSpirit Airlines, Inc. SAVE $44.87 69% $3,211 $2,905 $2,217 $906 $578 40.9% 26.1% 1.3x 5.0xAllegiant Travel Co. ALGT $151.50 64% $2,513 $2,803 $1,303 $574 $481 44.0% 36.9% 2.2x 5.8x

Westjet Airlines, Ltd. WJA $16.24 78% $2,001 $1,852 $3,070 $1,524 $585 49.6% 19.1% 0.6x 3.2x

Average 69% $11,177 $12,534 $14,555 $5,293 $3,306 40.9% 25.9% 1.1x 4.1x

Median 68% $6,510 $6,165 $6,137 $2,600 $1,720 41.5% 25.7% 1.0x 3.8x

Enterprise Value /

LTM LTM Margins LTM




18

Industrial Conglomerates




General Electric Co. GE $31.48 98% $302,507 $453,712 $121,921 $25,705 $17,721 21.1% 14.5% 3.7x 25.6x

3M Co. MMM $175.12 100% $109,397 $118,823 $30,081 $14,940 $8,618 49.7% 28.6% 4.0x 13.8x

United Technologies Corp. UTX $102.55 91% $87,193 $104,733 $56,319 $15,746 $10,175 28.0% 18.1% 1.9x 10.3xSiemens Aktiengesellschaft SIE $102.87 92% $84,428 $102,949 $87,755 $26,182 $10,451 29.8% 11.9% 1.2x 9.9x

Danaher Corp. DHR $101.00 100% $70,488 $81,473 $22,080 $11,720 $5,095 53.1% 23.1% 3.7x 16.0x

Tyco International, Ltd. TYC $42.60 97% $18,222 $21,003 $9,661 $3,593 $1,526 37.2% 15.8% 2.2x 13.8x

Average 96% $112,039 $147,116 $54,636 $16,314 $8,931 36.5% 18.7% 2.8x 14.9x

Median 98% $85,811 $103,841 $43,200 $15,343 $9,397 33.5% 16.9% 2.9x 13.8x

Enterprise Value /

LTM LTM Margins LTM




Freeport-McMoRan Copper & Gold, Inc. FCX $11.14 59% $12,641 $38,132 $15,251 $3,998 $3,464 26.2% 22.7% 2.5x 11.0x

Newmont Mining Corp. NEM $39.12 100% $20,489 $26,609 $7,789 $3,429 $2,893 44.0% 37.1% 3.4x 9.2x

Southern Copper Corp. SCCO $26.98 86% $21,229 $26,559 $5,016 $2,042 $1,898 40.7% 37.8% 5.3x 14.0x

Alcoa Inc. AA $9.27 81% $12,101 $21,509 $21,060 $3,930 $2,467 18.7% 11.7% 1.0x 8.7x

United States Steel Corp. X $16.86 78% $2,466 $4,883 $10,643 $132 ($249) 1.2% (2.3%) 0.5x NM

Average 81% $13,785 $23,538 $11,952 $2,706 $2,095 26.2% 21.4% 2.5x 10.7x

Median 81% $12,641 $26,559 $10,643 $3,429 $2,467 26.2% 22.7% 2.5x 10.1x

Enterprise Value /

LTM LTM Margins LTM


19

Materials


Chemicals

Metals and Mining




The Dow Chemical Co. DOW $49.71 87% $60,977 $75,599 $46,153 $11,122 $8,735 24.1% 18.9% 1.6x 8.7x

E.I. du Pont de Nemours and Co. DD $64.80 86% $57,170 $62,216 $24,638 $9,913 $4,322 40.2% 17.5% 2.5x 14.4xMonsanto Co. MON $103.41 91% $46,982 $56,357 $13,295 $7,028 $3,636 52.9% 27.3% 4.2x 15.5xPraxair, Inc. PX $112.39 94% $32,289 $41,662 $10,455 $4,692 $3,451 44.9% 33.0% 4.0x 12.1x

Air Products & Chemicals, Inc. APD $142.04 93% $30,951 $36,375 $9,511 $3,056 $3,057 32.1% 32.1% 3.8x 11.9xThe Sherwin-Williams Co. SHW $293.67 95% $27,521 $29,158 $11,550 $5,794 $1,947 50.2% 16.9% 2.5x 15.0xPotash Corporation of Saskatchewan Inc. TSX:POT $16.18 53% $13,561 $17,982 $4,658 $1,427 $1,654 30.6% 35.5% 3.9x 10.9xEastman Chemical Co. EMN $67.90 83% $10,141 $17,121 $9,205 $2,525 $2,154 27.4% 23.4% 1.9x 7.9x

Celanese Corp. CE $65.45 88% $9,759 $12,068 $5,502 $1,290 $1,085 23.4% 19.7% 2.2x 11.1xW.R. Grace & Co. GRA $73.21 70% $5,231 $6,634 $3,001 $1,179 $664 39.3% 22.1% 2.2x 10.0x

Average 84% $29,458 $35,517 $13,797 $4,803 $3,071 36.5% 24.7% 2.9x 11.7x

Median 87% $29,236 $32,767 $9,983 $3,874 $2,605 35.7% 22.8% 2.5x 11.5x

Enterprise Value /

LTM LTM Margins LTM



20

Source: Capital IQ.

Materials


Paper and Forest Products



International Paper Co. IP $42.38 86% $17,649 $32,432 $21,566 $6,187 $3,069 28.7% 14.2% 1.5x 10.6x

Domtar Corp. UFS $35.01 82% $2,202 $3,379 $5,160 $1,064 $654 20.6% 12.7% 0.7x 5.2xResolute Forest Products, Inc. RFP $5.29 45% $476 $1,045 $3,567 $862 $265 24.2% 7.4% 0.3x 3.9x

Average 71% $6,776 $12,286 $10,098 $2,704 $1,329 24.5% 11.4% 0.8x 6.6x

Median 82% $2,202 $3,379 $5,160 $1,064 $654 24.2% 12.7% 0.7x 5.2x

Enterprise Value /

LTM LTM Margins LTM


Member FINRA/SIPC

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