Engineering and construction M&A update: H2-2017

Transcription

1 Engineering and construction M&A update: H2-2017

2 $337,947 $310,886 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q $963,247 $290,047 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 Jan-2003 Jan-2004 Jan-2005 Jan-2006 Jan-2007 Jan-2008 Jan-2009 Jan-2010 Jan-2011 Jan-2012 Jan-2013 Jan-2014 Jan-2015 Jan-2016 Jan-2017 Private Public

3

4 ($ in millions) Enterprise LTM LTM LTM Gross Profit EBITDA Enterprise Value / LTM Total Debt Company Name Ticker Value Revenue Gross Profit EBITDA Margin Margin Revenue EBITDA EBITDA Diversified Engineering & Construction Companies AECOM NYSE:ACM $ 9,116 $ 18,756 $ 650 $ 772 3% 4% 0.5x 11.8x 5.1x ARCADIS NV ENXTAM:ARCAD 2,689 4, % 6% 0.7x 10.7x 3.4x Fluor Corporation NYSE:FLR 6,988 19, % 4% 0.4x 9.6x 2.2x Hochtief AG (Turner Construction) DB:HOT 12,181 27,529 7,765 1,303 28% 5% 0.4x 9.3x 2.7x Jacobs Engineering Group Inc. NYSE:JEC 7,473 10,222 1, % 6% 0.7x 11.3x 3.9x KBR, Inc. NYSE:KBR 2,770 4, % 2% 0.6x NM 5.3x SNC-Lavalin Group Inc. TSX:SNC 9,756 6,893 1, % 8% 1.4x 17.7x 4.8x Stantec Inc. TSX:STN 3,681 2,742 1, % 11% 1.3x 12.6x 2.2x WSP Global Inc. TSX:WSP 5,723 5,422 1, % 8% 1.1x 13.9x 2.3x Diversified Engineering & Construction Adjusted Mean 1 Diversified Engineering & Construction Median Construction Services & Contractors $ 6,708 $ 11,055 $ 1,727 $ % 6% 0.8x 12.1x 3.5x $ 6,988 $ 6,893 $ 1,002 $ % 6% 0.7x 11.6x 3.4x Aecon Group Inc. TSX:ARE $ 1,338 $ 2,370 $ 259 $ % 5% 0.6x 11.1x 5.3x Balfour Beatty plc LSE:BBY 3,281 10, % 1% 0.3x NM NM Bird Construction Inc. TSX:BDT 322 1, % 2% 0.3x 16.0x 3.0x Granite Construction Incorporated NYSE:GVA 2,330 2, % 5% 0.8x 16.8x 1.7x Skanska AB OM:SKA B 8,848 19,835 1, % 3% 0.4x 16.0x 2.6x Stuart Olson Inc. TSX:SOX % 2% 0.3x 11.7x 4.3x Tutor Perini Corporation NYSE:TPC 1,929 4, % 5% 0.4x 8.3x 3.8x Construction Services & Contractors Adjusted Mean 1 Construction Services & Contractors Median Specialty Firms $ 2,608 $ 5,980 $ 461 $ 166 8% 3% 0.4x 13.3x 3.5x $ 1,929 $ 2,855 $ 296 $ 121 9% 3% 0.4x 13.8x 3.4x Aegion Corporation NasdaqGS:AEGN $ 1,105 $ 1,343 $ 292 $ % 9% 0.8x 9.0x 2.9x Chicago Bridge & Iron Company N.V. NYSE:CBI 3,520 9, (114) 2% (1%) 0.4x NM NM Dycom Industries Inc. NYSE:DY 4,172 3, % 13% 1.4x 10.7x 2.0x EMCOR Group Inc. NYSE:EME 4,742 7,624 1, % 6% 0.6x 10.6x 0.9x Goldfield Corp. AMEX:GV % 17% 1.1x 6.5x 1.3x Great Lakes Dredge & Dock Corporation NasdaqGS:GLDD % 9% 1.0x 11.0x 6.2x Hill International, Inc. NYSE:HIL % 1% 1.0x NM NM IBI Group Inc. TSX:IBG % 12% 1.0x 8.5x 2.9x Layne Christensen Company NasdaqGS:LAYN % 2% 0.6x NM NM MasTec, Inc. NYSE:MTZ 5,294 6, % 10% 0.8x 8.7x 2.1x Matrix Service Company NasdaqGS:MTRX 472 1, % 2% 0.4x NM 2.8x McDermott International Inc. NYSE:MDR 2,024 2, % 13% 0.7x 5.4x 1.4x MYR Group, Inc. NasdaqGS:MYRG 670 1, % 5% 0.5x 9.0x 1.1x North American Energy Partners Inc. NYSE:NOA % 20% 0.9x 4.6x 2.3x Orion Marine Group, Inc NYSE:ORN % 3% 0.5x 19.5x 5.2x Primoris Services Corporation NasdaqGS:PRIM 1,496 2, % 7% 0.6x 8.5x 1.4x Quanta Services, Inc. NYSE:PWR 6,744 9,091 1, % 7% 0.7x 10.0x 1.1x Sterling Construction Co. Inc. NasdaqGS:STRL % 4% 0.5x 13.7x 2.6x Tetra Tech, Inc. NasdaqGS:TTEK 2,850 2, % 11% 1.4x 12.5x 2.0x Willbros Group Inc. NYSE:WG (32) 1% (4%) 0.2x NM NM Specialty Firms Adjusted Mean 1 Specialty Firms Median $ 1,811 $ 2,553 $ 315 $ % 7% 0.8x 9.9x 2.4x $ 709 $ 1,220 $ 146 $ 58 14% 7% 0.7x 9.0x 2.0x Total E&C Industry Adjusted Mean 1 $ 3,190 $ 5,345 $ 696 $ % 6% 0.7x 11.2x 2.9x Total E&C Industry Median $ 2,024 $ 2,742 $ 296 $ % 5% 0.6x 10.7x 2.6x

5 14.0x 13.0x 12.0x 11.0x 10.0x 9.0x 8.0x 7.0x 6.0x 5.0x Diversified Engineering and Construction Construction Services & Contractors Specialty Firms 13.3x 12.1x 9.9x 4.0x Mar JuneSept Dec Mar JuneSept Dec Mar JuneSept Dec Mar JuneSept Dec Mar JuneSept Dec Mar JuneSept Dec Mar JuneSept Dec Mar June Sep Dec Comparable Transactions with Numerical Data 7/1/ /31/2017 ($ in millions) Date Target Company Acquiring Company Implied EV EV / Revenue EV / EBITDA 12/04/17 NAPEC Inc. (TSX:NPC) 2 Oaktree Capital Management, L.P. $ x 9.7x 10/30/17 CalAtlantic Group, Inc. 2 Lennar Corporation (NYSE:LEN) $9, x 13.4x 10/26/17 Aecon Group Inc. (TSX:ARE) 2 CCCC International Holding Limited $1, x 9.8x 10/06/17 Amec Foster Wheeler plc John Wood Group PLC (LSE:WG.) $3, x 10.6x 07/06/17 Distinct Infrastructure Group Inc. (TSXV:DUG) - $ x 10.7x Total $15, Mean $3, x 10.8x Median $1, x 10.6x

6 Date Target Company Acquiring Company Total Transaction Value 12/29/17 Blind Ambitions LLC and Allpro Insulation Co Installed Building Products, Inc. (NYSE:IBP) - 12/26/17 SSGI, Inc. Vicapsys Life Sciences, Inc. (OTCPK:VICP) - 12/25/17 Westinghouse Electric Company LLC Toshiba Corporation (TSE:6502) $ /15/17 CH2M HILL Companies, Ltd. Jacobs Engineering Group Inc. (NYSE:JEC) $3, /14/17 Legat Kingscott, LLC Legat Architects, Inc. - 12/13/17 Atlanta Homebuilding Operations of Home South Communities LLC CalAtlantic Group, Inc. - 12/11/17 Royal Oaks Building Group, LLC Mattamy Group Corporation - 12/06/17 Woolpert, Inc. Long Point Capital - 12/04/17 Larssen Ltd Aurora Cannabis Inc. (TSX:ACB) $ /30/17 CBI Consulting LLC IBA Holdings, LLC - 11/30/17 Stouten Cramer, Inc. King Engineering Associates, Inc. - 11/10/17 Schommer Engineering, Inc. H2M Architects and Engineers - 11/09/17 PBA Architects, P.A. Gibson, Mancini, Carmichael & Nelson P.A. - 11/02/17 Primary Integration, LLC Bureau Veritas SA (ENXTPA:BVI) - 10/31/17 Sundquist Homes, LLC Century Communities, Inc. (NYSE:CCS) $ /30/17 Heery International, Inc. CBRE Group, Inc. (NYSE:CBG) $ /19/17 LandBros Aerial Photography, LLC Premium Inspection & Testing, Inc. - 10/11/17 Andregg Geomatics, Inc. Psomas - 10/10/17 Moser Mayer Phoenix Associates, PA Clark Patterson Engineers, Surveyor and Architects P.C. - 10/03/17 Brothers' Fence Company Inc. Split Rail Fence & Supply Co. - 10/02/17 Raymond J. Donnelly & Associates, Inc. Spalding DeDecker Associates, Inc. - 09/25/17 National Development Corporation Beacon Communities LLC - 09/20/17 MC Endeavors, Inc., Prior to Reverse Merger with Room 21 Media Inc. MC Endeavors, Inc. (OTCPK:MSMY) - 09/11/17 SarPoint Engineering Ltd. McElhanney Land Surveys Ltd. - 09/06/17 John R. Wald Company, Inc. Hills Numberplates Ltd. - 09/01/17 Leggette, Brashears & Graham, Inc. WSP Global Inc. (TSX:WSP) - 08/30/17 Keating Consulting, LLC Gilbane Building Company, Inc. - 08/29/17 Community Asphalt Corp. Obrascón Huarte Lain, S.A. (BME:OHL) - 08/23/17 PPS Group LLC Designer Group Engineering Contractors Limited - 08/07/17 NuVision Engineering, Inc. Carr's Group plc (LSE:CARR) $ /04/17 W.H. Hobbs Inc. Andrew Roby, Inc. - 08/02/17 Precision Aerial Compliance Solutions, LLC LJA Engineering, Inc. - 07/31/17 Alpha Energy, Inc. Southwest Business Services, LLC; Black Rock Oil And - Gas, LLC; Croci Land Holdings, LLC; Arrow Consulting LLP; AG Management Associates; CBK Management Associates 07/31/17 David A. Mann Land Surveyor Dubois & King, Inc. - 07/31/17 Service Logic, LLC Warburg Pincus LLC - 07/31/17 LandAir Surveying Company of Georgia, Inc. KCI Technologies Inc. - 07/28/17 Shimmick Construction Company, Inc. AECOM (NYSE:ACM) $ /18/17 EJM Engineering, Inc. TranSmart Technologies Inc - 07/12/17 McClure Engineering Associates, Inc. KJWW Engineering Consultants, P.C. - 07/11/17 Casteel Heating and Cooling, Inc. and Gold Medal Service Horizon Services, Inc. - 07/10/17 Ghyabi + Associates, Inc. Alfred Benesch & Company, Inc. - 07/07/17 Harris Doyle Homes, Inc. Clayton Properties - 07/06/17 Halmar International, LLC Itinera Usa Corp. $ /06/17 5 Bars, LLC Neutral Connect Networks LLC - 07/03/17 Oakwood Homes LLC Clayton Properties - 07/03/17 CKGP/PW & Associates, Inc. EDAG Engineering Group AG (DB:ED4) -

7

8 About Baker Tilly Capital, LLC > > Baker Tilly Capital, LLC is a boutique investment banking firm specializing in merger and acquisition (M&A), capital sourcing, project finance and corporate finance advisory services. > > The Baker Tilly Capital team is led by investment bankers and corporate finance specialists that have meaningful experience advising clients in evaluating strategic and financial alternatives, creating and executing sell-side and buy-side M&A strategies and identifying cost-effective financing alternatives and sources. > > Baker Tilly Capital leverages more than 50 specialized professionals to provide strategic guidance and pragmatic insight to help clients achieve their strategic and financial objectives throughout the business life cycle. > > Backed by Baker Tilly Virchow Krause, LLP, a national accounting and advisory firm with significant industry expertise, Baker Tilly Capital offers value added insights before, during and after the transaction. About Baker Tilly Virchow Krause, LLP Baker Tilly Virchow Krause, LLP (Baker Tilly) is a nationally recognized, full-service accounting and advisory firm whose specialized professionals connect with clients and their businesses through refreshing candor and clear industry insight. With more than 2,700 employees across the United States, Baker Tilly is ranked as one of the 15 largest accounting and advisory firms in the country. Headquartered in Chicago, Baker Tilly is an independent member of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 147 territories, with 33,600 professionals. The combined worldwide revenue of independent member firms is $3.4 billion. Connect with us: Michael Milani Executive and Principal mike.milani@bakertilly.com Kevin Rudd Executive and Principal kevin.rudd@bakertilly.com Michael Land Senior michael.land@bakertilly.com Brooke Borden brooke.borden@bakertilly.com Michael Demers michael.demers@bakertilly.com Sean Dingeldein sean.dingeldein@bakertilly.com Steve Economou steve.economou@bakertilly.com Steven Higgins steven.higgins@bakertilly.com Lisa Van Lieshout lisa.vanlieshout@bakertilly.com bakertilly.com An independent member of Baker Tilly International This information should not be construed as a recommendation, an offer of services, or an offer to sell, or solicitation of an offer to buy a particular security or investment strategy. The reader should not rely on this information other than as authorized by a written agreement with Baker Tilly Capital, LLC. The commentaries provided are opinions of Baker Tilly Capital, LLC and are for informational purposes only. While the information is deemed reliable, Baker Tilly Capital, LLC cannot guarantee its accuracy, completeness, or suitability for any purpose and makes no warranties with regard to the results to be obtained from its use, or whether any expressed course of events will actually occur. Securities involve risk and possible loss of principal. Past performance does not guarantee future results. No compensation has been paid to person providing a testimonial. Any testimonial is not representative of the experiences of other clients and is not indicative of future performance or success. Securities, when offered, and transaction advisory services are offered through Baker Tilly Capital, LLC, Member FINRA and SIPC; Office of Supervisory Jurisdiction located at Ten Terrace Court, Madison, WI 53718; phone Baker Tilly Capital, LLC is a wholly-owned subsidiary of Baker Tilly Virchow Krause, LLP, an accounting firm. Baker Tilly Virchow Krause, LLP is an independently owned and managed Member of Baker Tilly International Baker Tilly Virchow Krause, LLP