Transportation & Logistics Industry Insight January 2018

Transcription

1 Industry Insight January 2018

2 M&A Update transaction multiples remained strong For 2017, strategic buyers accounted for 92% of the Transportation and Logistics M&A transactions with financial buyers making up the difference; during 2016, strategic buyers accounted for approximately 91% of the transactions. Select Recent Notable Publicly Announced M&A Transactions Date Status Target Transaction Size Buyer Sep2017 Closed $670 million MBK USA Commercial Vehicles, Inc. Jul2017 Announced $820 million May2017 Announced $1.18 billion Apr2017 Announced $2.97 billion Mar2017 Announced $2.1 billion 1

3 U.S. M&A Market Overview U.S. Transactions by Buyer Type U.S. Transaction Multiples 10.4x 9.6x 8.3x x 7.9x 8.1x x 6.2x x 0.5x 0.6x 0.6x 0.7x 0.5x 0.8x 0.6x Strategic Financial EV / EBITDA EV / Revenue Source: Capital IQ. 2

4 Peakstone Transportation Indices Trading Statistics indexes have been trading inline with the S&P % Relative Stock Performance 300% 250% 200% 150% LTL: 329% Truckload: 144% S&P 500: 89% AssetLight and Logistics: 75% 100% 50% 0% 50% Peakstone Truckload Index CGI, PTSI, KNX, JBHT, WERN, MRTN, USAK, HTLD, SWFT, CVTI Peakstone AssetLight & Logistics Index FWRD, RRTS, LSTR, CHRW, EXPD, XPO, HUBG, ECHO Peakstone LTL Index ARCB, SAIA, YRCW, ODFL Source: Capital IQ, data as of 1/18/2018. Note: Peakstone indexes are equally weighted. 3

5 Peakstone Transportation Indices Trading Statistics indexes have been trading inline with the S&P x Comparable Valuation Trends Enterprise Value / EBITDA 14.0x 12.0x 10.0x AssetLight and Logistics: 14.5x S&P 500: 13.4x LTL: 9.3x Truckload: 8.9x 8.0x 6.0x 4.0x 2.0x 0.0x Peakstone Truckload Index CGI, PTSI, KNX, JBHT, WERN, MRTN, USAK, HTLD, SWFT, CVTI Peakstone AssetLight & Logistics Index FWRD, RRTS, LSTR, CHRW, EXPD, XPO, HUBG, ECHO Peakstone LTL Index ARCB, SAIA, YRCW, ODFL Source: Capital IQ, data as of 1/18/2018. Note: Peakstone indexes are equally weighted. 4

6 Selected Public Trading Comparables Peakstone LTL Index ($ in millions) Market Enterprise Enterprise Value / Forward Gross EBITDA Company Name Cap Value Revenue EBITDA EBIT P/E Ratio Margin % Margin % Old Dominion Freight Line Inc. $11,912 $11, x 15.9x 21.9x 26.8x 31.1% 23.3% Saia, Inc. $1,922 $2, x 11.9x 23.3x 26.2x 19.1% 13.0% YRC Worldwide Inc. $520 $1, x 5.1x 12.8x 10.7x 10.3% 5.2% ArcBest Corporation $934 $1, x 6.7x 19.6x 18.6x 8.9% 5.5% LTL Median $1,428 $1, x 9.3x 20.7x 22.4x 14.7% 9.2% Peakstone Truckload Index ($ in millions) Market Enterprise Enterprise Value / Forward Gross EBITDA Company Name Cap Value Revenue EBITDA EBIT P/E Ratio Margin % Margin % JB Hunt Transport Services Inc. $13,242 $14, x 14.3x 23.0x 26.8x 18.1% 13.9% Knight Transportation Inc. $7,897 $8, x 32.8x 66.4x 25.2x 28.2% 19.6% Werner Enterprises Inc. $2,933 $2, x 8.7x 23.4x 24.4x 26.1% 16.6% Heartland Express, Inc. $1,898 $1, x 12.0x 35.0x 32.8x 36.1% 26.5% Marten Transport Ltd. $1,197 $1, x 9.0x 25.2x 24.9x 28.9% 19.4% Covenant Transportation Group, Inc. $510 $ x 7.0x 24.4x 19.3x 23.7% 14.5% Celadon Group Inc. $159 $ x 6.2x 49.4x 115.0x 15.9% 7.9% P.A.M. Transportation Services, Inc. $229 $ x 6.9x 28.6x 0.0x 18.1% 11.9% USA Truck Inc. $157 $ x 14.0x NM 33.3x 15.1% 4.6% Truckload Median $1,197 $1, x 9.0x 26.9x 25.2x 23.7% 14.5% Source: Capital IQ, data as of 1/18/

7 Selected Public Trading Comparables (continued) Peakstone AssetLight & Logistics Index ($ in millions) Market Enterprise Enterprise Value / Forward Gross EBITDA Company Name Cap Value Revenue EBITDA EBIT P/E Ratio Margin % Margin % XPO Logistics, Inc. $11,346 $16, x 13.2x 28.1x 33.8x 14.9% 8.2% CH Robinson Worldwide Inc. $12,990 $14, x 16.9x 18.7x 23.0x 8.2% 5.8% Expeditors International of Washington Inc. $11,741 $10, x 14.8x 15.9x 24.7x 13.6% 10.8% Landstar System Inc. $4,534 $4, x 15.9x 18.6x 22.8x 21.6% 7.9% Hub Group Inc. $1,748 $2, x 14.1x 23.1x 23.9x 11.4% 3.7% Forward Air Corp. $1,791 $1, x 12.4x 16.8x 23.1x 25.4% 13.9% Echo Global Logistics, Inc. $805 $ x 31.2x 120.7x 26.6x 17.5% 1.8% Roadrunner Transportation Systems, Inc. $301 $ x 6.9x 11.7x 8.9x 19.8% 5.1% AssetLight & Logistics Median $3,162 $3, x 14.5x 18.6x 23.5x 16.2% 6.9% Total Median $1,791 $1, x 12.4x 23.2x 24.7x 18.1% 10.8% Source: Capital IQ, data as of 1/18/

8 Selected Precedent M&A Transactions Selected Transactions Date Target / Issuer Transaction Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments 12/12/2017 New Acton Mobile Industries LLC $235 WillScot Corporation (NasdaqCM:WSC) WillScot Corporation (NasdaqCM:WSC) entered into a letter agreement to acquire New Acton Mobile Industries LLC from Prophet Equity LLC on December 1, /07/2017 Keen Transport, Inc. $64 Wallenius Wilhelmsen Logistics ASA (OB:WWL) 6.4x Wallenius Wilhelmsen Logistics ASA (OB:WWL) signed an agreement to acquire Keen Transport, Inc. from Platinum Equity, LLC for $64 million on December 7, The transaction will be financed through existing credit facilities. 11/24/2017 Montco Offshore, Inc. $131 Falcon Global USA LLC Falcon Global USA LLC agreed to acquire substantially all of assets of Montco Offshore, Inc. from Lee Orgeron and others for approximately $130 million on November 24, /01/2017 Indiana Transport, Inc. $59 Patrick Industries, Inc. (NasdaqGS:PATK) Patrick Industries, Inc. (NasdaqGS:PATK) acquired the business and the assets of Indiana Transport, Inc. for $59 million on November 1, The purchase price for Indiana Transport was funded under Patrick Industries' existing credit facility. 09/07/2017 Penske Truck Leasing Co., L.P. $674 Penske Automotive Group, Inc. (NYSE:PAG); MBK USA Commercial Vehicles Inc. Penske Automotive Group, Inc. (NYSE:PAG) and MBK USA Commercial Vehicles, Inc. acquired 15.5% stake in Penske Truck Leasing Co from GE Capital Global Holdings, LLC, Investment Arm for approximately $670 million on September 7, /17/2017 Unitrans, Inc. $95 Quick International Courier, Inc. Quick International Courier Inc. signed a stock purchase agreement to acquire Unitrans, Inc. from Ascent Global Logistics Holdings, Inc. for $95 million on August 16, /21/2017 Special Dispatch of San Antonio, Inc. and Special Logistics Dedicated, LLC $136 J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT) J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT) entered into an agreement to acquire Special Dispatch of San Antonio, Inc. for approximately $140 million on July 20, Source: Capital IQ. 7

9 Selected Precedent M&A Transactions (continued) Selected Transactions Date Target / Issuer Transaction Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments 07/06/2017 Interstate Distributor Co., Inc. $117 Heartland Express, Inc. (NasdaqGS:HTLD) Heartland Express, Inc. (NasdaqGS:HTLD) acquired Interstate Distributor Co., Inc. from Saltchuk Resources, Inc. for an enterprise value of approximately $110 million on July 6, /03/2017 Global Gateway South Terminal $817 EQT Partners AB EQT Infrastructure III fund, fund sponsored by EQT Partners AB, signed a definitive agreement to acquire a 90% stake in Global Gateway South from CMA CGM for approximately $820 million on June 30, /01/2017 Teekay Tankers Operations Ltd $39 Teekay Tankers Ltd. (NYSE:TNK) Teekay Tankers Ltd. (NYSE:TNK) acquired the remaining 50% stake in Teekay Tankers Operations Ltd from Teekay Corporation (NYSE:TK) for $39 million on May 31, /30/2017 Aerostar Airport Holdings, LLC $430 Grupo Aeroportuario del Sureste Public Sector Pension Investment Board acquired 50% stake in Aerostar Airport Holdings, LLC from Oaktree Capital Management, L.P. for approximately $430 million on May 30, /25/2017 Estenson Logistics, LLC $285 Hub Group Trucking, Inc. Hub Group Trucking, Inc. entered into an agreement to acquire substantially all assets of Estenson Logistics, LLC from Timothy J. Estenson, Traci M. Estenson and Paul A. Truman for approximately $290 million on May 25, /23/2017 Navig8 Product Tankers Inc. $1,177 Scorpio Tankers Inc. (NYSE:STNG) 17.9x Scorpio Tankers Inc. (NYSE:STNG) entered into a definitive agreement to acquire Navig8 Product Tankers Inc. (NPTI) for approximately $250 million on May 23, /10/2017 Enviva Port of Wilmington, LLC $130 Enviva Partners, LP (NYSE:EVA) Enviva Partners, LP (NYSE:EVA) agreed to acquire Enviva Port of Wilmington, LLC from Enviva Wilmington Holdings, LLC for $130 million on May 10, Source: Capital IQ.. 8

10 Selected Precedent M&A Transactions (continued) Selected Transactions Date Target / Issuer Transaction Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments 04/12/2017 United Road Towing, Inc. $40 Medley Capital Corporation (NYSE:MCC); MCC Advisors LLC Medley Capital Corporation (NYSE:MCC), managed by MCC Advisors LLC won an auction to acquire substantially all the assets of United Road Towing, Inc. for $40 million on April 10, /10/2017 Swift Transportation Company (NYSE:SWFT) $2,971 Knight Transportation, Inc. (NYSE:KNX) Knight Transportation, Inc. (NYSE:KNX) entered into a definitive agreement to acquire Swift Transportation Company (NYSE:SWFT) for $3 billion on April 9, /10/ Companies $24 Central States Trucking Co. 4.6x Central States Trucking Co. entered into an agreement to acquire Atlantic Trucking Company, Inc. for $23.5 million on April 10, /28/2017 Florida East Coast Holdings Corp. $2,100 Grupo México Transportes S.A. de C.V. Grupo México Transportes S.A. de C.V. entered into an agreement to acquire Florida East Coast Holdings Corp. from Florida East Coast Industries, LLC for $2.1 billion on March 28, /07/2017 Dominion Terminal Associates LLP $20 Ashland Terminal, Inc.; Contura Energy, Inc. (OTCPK:CNTE) Ashland Terminal, Inc. and Contura Energy, Inc. (OTCPK:CNTE) agreed to acquire 37.5% stake in Dominion Terminal Associates LLP from Peabody Energy Corporation (OTCPK:BTUU.Q) for $20.5 million on March 7, /02/2017 Dulles Greenway, VA $445 Macquarie Atlas Roads Group (ASX:MQA) Macquarie Atlas Roads Group (ASX:MQA) entered into a purchase agreement to acquire additional 50% stake in Dulles Greenway, VA from Toll Road Investors Partnership II, LP for approximately $450 million on February 23, /18/2017 Canadian Pacific Railway Limited, Obico Rail Yard $29 Canadian Pacific Railway Limited (TSX:CP) sold Obico rail yard for CAD 38 million during the fourth quarter of Source: Capital IQ.. 9

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