1 AUTOMOTIVE AFTERMARKET Weekly Automotive Aftermarket Intelligence Report March 23, 2016 Automotive Aftermarket Stock Performance * Percent Change 1 Week 1 Month YTD Manufacturers 1.6% 14.6% 2.3% (0.7%) 6.8% 6.7% (3.3%) 7.1% (10.6%) 0.1% 16.4% 4.6% 0.2% 13.8% (0.2%) 1.4% 6.9% 0.3% Retailers & Distributors Professional Installers Collision Automotive Aftermarket S&P 500 1 Weighted by market capitalization Segment Index 1 S&P 500 Last Month Return 6.9% S&P 500 Last Week Return 1.4% (10%) (5%) 0% 5% 10% (10%) (5%) 0% 5% 10% 15% 20% Tenneco SMP Snap-On MPA Dorman Cooper Tire Axalta LKQ KAR Copart Boyd Sonic Rush Penske Monro Lithia Motors Inc. Group 1 CarMax Auto Nation Asbury U.S. Auto Parts Uni-Select O’Reilly GPC AutoZone Advance Auto Goodyear Last Month’s Return Last Week’s Return LEADING SLIPPING IMPROVING LAGGING Horizon Global (not shown) had one week and one month returns of 9.4% and 38.6%, respectively. On February 29, 2016, Icahn Enterprises announced a $7 per share offer for the outstanding shares of Federal- Mogul Holdings Corporation. *Size of the bubble represents relative market capitalization Source: Capital IQ
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1 enterprise value = market Capitalization + Debt – Cash; eBitDA = earnings Before interest, taxes, Depreciation, and Amortization2 kAr is included in both retailers & Distributors and CollisionSource: Capital iQ
enterprise value / last 12 Months’ ebitdA Multiples1,2
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Stock 52 Week Market Price / P / E Forward PEG TEV / Revenue TEV / EBITDATicker Price High / Low Cap TEV TBV LTM CY 2016 CY 2017 CY 2016 CY 2017 LTM CY 2016 CY 2017 LTM CY 2016 CY 2017
valuation MetricsAs of 3/18/2016($ in millions, except per share)
1 Stock Prices, market Cap, and enterprise values converted at the exchange rate as of the date above* Definitions: Ltm = Last twelve months; eBitDA = earnings Before interest, taxes, Depreciation, and Amortization; P / e = Stock Price / earnings Per Share; tev = total enterprise value
tBv = tangible Book value; PeG = (Calendarized P / e) / Long term Growth rateSources: Capital iQ, Company filings
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net Margins Sales Growth EBITDA Growth SSSTicker LTM Date Revenue EBITDA EBIT Income Gross EBITDA EBIT nI 1 Year 5 Year 1 Year 5 Year Latest Q
operating ResultsLast 12 months as of 3/20/2016($ in millions, except per share)
1 Affinia Group, American tire Distributors, and uCi international have publicly traded debt only and thus are included in operating and performance metrics, but not valuation multiples2 Same Store Sales for Genuine Parts reflects automotive segment only3 reported results converted at the exchange rate as of the above date4 Same Store Sales reflect Copart’s organic comp growth5 Same Store Sales reflect LkQ’s organic growth for parts and services* Definitions: Ltm = Last twelve months; eBitDA = earnings Before interest, taxes, Depreciation, and Amortization; eBit = earnings Before interest & taxes; Ni = Net income
SSS = Same Store Sales, where applicableSources: Capital iQ, Company filings
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1 Affinia Group, American tire Distributors, and uCi international have publicly traded debt only and thus are included in operating and balance sheet metrics, but not valuation multiples * Definitions: eBitDA = earnings Before interest, taxes, Depreciation, and Amortization; Acct. rec. Days outstanding = Accounts receivable / Sales * Days; inventory Days outstanding = inventory / Cost of Goods Sold
* Days; Days Payable outstanding = Accounts Payable / Cost of Goods Sold * Days; Cash Conversion = Acct. rec. Days outstanding + inventory Days outstanding - Days Payable outstanding; Debt / Capital = total Debt / (total Debt + Book value of equity); interest Coverage = eBitDA / interest expense
Sources: Capital iQ, Bloomberg, Company filings
Days outstanding Cash Total Debt / Debt / Interest Current Quick S&P DebtTicker A / R Inventory A / P Conversion Debt Capital EBITDA Coverage Ratio Ratio Rating outlook
SuPPLIERSAffinia Group Intermediate Holdings Inc.1 N/A 35.4 70.6 45.2 60.7 $824 151.2% 5.7x 2.4x 1.2x 0.5x B Stable
Axalta Coating Systems Ltd. AXTA 57.4 75.1 66.9 65.6 3,443 75.1% 4.1x 3.6x 2.2x 1.3x NA NA
balance Sheet MetricsAs of 3/20/2016($ in millions, except per share)
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MileS tRAveled And AveRAGe GASoline PRice PeR GAllon1
1 Data computed with the federal Highway Administration Statistics table focusing on highway-going registered motor vehicles Sources: fHWA, u.S. energy information Administration
Retailers and Distributors Independent Service Providers Collision
0.7%
(2.1%)
1.2%
(0.7%)
(2.2%)
0.4%
(0.6%)
(3.3%)
4.9%
0.5%
(2.8%)
5.9%
1.7%
0.6%
9.0%
1.3%
(2.3%)
7.7%
3.7%
0.3%
7.0%
2.3%
1.0%
9.0%
2.6%
0.4%
6.7%
2.8%
2.1%
8.3%
3.3%
1.7%
7.1%
2.9%
1.7%
6.3%
3.3%
0.1%
7.5%
2.9%
(0.2%)
7.1%
4.5%
(2.5%)
7.0%
SAMe StoRe SAleS GRoWtH*
*Same Store Sales growth measures revenue growth for stores that have been open for at least one yearretailers and Distributors include: Advance Auto Parts, AutoZone, GPC (NAPA), o’reily Automotive, uni-Select, and Pep Boys (no longer included following its acquisition on february 2, 2016)independent Service Providers include: monro muffler Brake and Pep Boys (no longer included following its acquisition on february 2, 2016)Collision includes: Copart, Boyd Group, and LkQ. LkQ and Copart report organic comp sales – LkQ reports comp growth on a distribution center and Copart does so on an established, mature location that has repeat salesSources: Capital iQ, Company filings
Vista Equity Partners Acquires Solera Holdings: San francisco, CA-based private equity firm vista equity Partners completed its buyout of Westlake, tX-based risk and asset management software provider Solera Holdings, inc. on march 3, 2016. the firm paid $55.85 per share, an implied enterprise value of approximately $6.5 billion, to acquire Solera in a deal that was previously announced on September 14, 2015.
formerly listed on the New York Stock exchange under ticker SLH, Solera, provides software to the automobile claims processing industry. vista equity Partners’ bid, which represented an approximately 53% premium to Solera’s August 3rd closing price, came after the company announced that it had established a special committee to evaluate strategic alternatives.
Husky Corporation Acquires S.U.R.&R.: Pacific, mo-based fuel dispensing products and services provider Husky Corporation announced on march 2, 2016 that it had acquired Akron, oH-based aftermarket repair kits and tools supplier S.u.r.&r. financial terms of the transaction were not disclosed.
founded in 2000, S.u.r.&r. supplies fuel, brake, air conditioning, and transmission fluid line repair kits as well as specialty tools to the aftermarket. the acquisition is part of Husky’s strategy as a provider of petroleum dispensing nozzles and related equipment to serve the broader transportation sector.
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Recent Mergers & AcquisitionsClose Date Target Buyer (Sponsor) Transaction Details
Pending Pittsburgh Glass Works LLC (Kohlberg & Company, L.L.C.)
LKQ Corp. (NasdaqGS:LKQ) LKQ Corp. (NasdaqGS:LKQ) has entered into a definitive agreement to acquire Pittsburgh Glass Works LLC, a manufacturer of automotive glass products based in Pittsburgh, Pennsylvania.
Pending BASF Coatings GmbH, Global Industrial Coatings Business
Akzo Nobel N.V. (ENXTAM:AKZA) Akzo Nobel N.V. (ENXTAM:AKZA) has entered into a definitive agreement to acquire Global Industrial Coatings Business from BASF Coatings GmbH. The transaction includes technologies, patents and registered brands, as well as two plants.
Pending American Trailer Works, Inc. (Southlake Equity Group)
Big Tex Trailer Manufacturing, Inc. (Bain Capital, LLC)
Big Tex Trailer Manufacturing, Inc., a portfolio company of Bain Capital, LLC, has entered into a definitive agreement to acquire American Trailer Works, Inc., a manufacturer of trailers based in Sumner, Texas.
Pending Rhiag - Inter Auto Parts Italia S.p.A. (Apax Partners LLC)
LKQ Corp. (NasdaqGS:LKQ) LKQ Corp. (NasdaqGS:LKQ) has entered into a definitive agreement to acquire Rhiag - Inter Auto Parts Italia S.p.A., a distributor of automotive spare parts based in Milan, Italy.
Pending TireConnect Bridgestone Corporation Bridgestone Corporation has entered into a definitive agreement to acquire TireConnect, an online sales tool developer based in Ontario, Canada.
Pending Truck-Lite Co., LLC Koch Equity Development LLC and BDT Capital Partners LLC
Koch Equity Development LLC, a Wichita, Kansas-based private investment firm, and BDT Capital Partners LLC, a New York, New York-based private investment firm, have entered into a definitive agreement to acquire Truck-Lite Co., LLC, a safety lighting and filtration systems provider based in Falconer, New York.
Pending Affinia Group Holdings Inc. MANN + Hummel Holding GmbH
MANN + Hummel Holding GmbH, a manufacturer of automotive components, has entered into a definitive agreement to acquire Affinia Group Holdings Inc., a manufacturer and distributor of a range of aftermarket products based in Ann Arbor, Michigan.
Pending German Auto Parts, Inc. SSF Imported Auto Parts LLC SSF Imported Auto Parts LLC has entered into a definitive agreement to acquire German Auto Parts, Inc., a wholesaler of replacement parts and services for BMW and Mercedes-Benz automobiles based in Norcross, Georgia.
Pending APCO Holdings, Inc. Ontario Teachers' Pension Plan Ontario Teachers' Pension Plan has entered into a definitive agreement to acquire APCO Holdings, Inc., a marketer and administrator of aftermarket benefits based in Norcross, Georgia.
3/17/2016 LoJack Corporation (NasdaqGS:LOJN)
CalAmp Corp. (NasdaqGS:CAMP)
CalAmp Corp. (NasdaqGS:CAMP) has acquired LoJack Corporation (NasdaqGS:LOJN), a provider of aftermarket safety, security, and protection products based in Canton, Massachusetts.
3/10/2016 Thompson Auto Supply Auto-Wares, Inc. Auto-Wares, Inc. has acquired Thompson Auto Supply, an automotive services provider and parts retailer based in St. Charles, Illinois.
3/8/2016 Missouri Power Transmission, Inc. Motion Industries, Inc. Motion Industries, Inc. has acquired Missouri Power Transmission, Inc., a distributor of power transmission equipment and industrial supplies based in Saint Louis, Missouri.
3/3/2016 Solera Holdings Inc. (NYSE:SLH) Vista Equity Partners Vista Equity Partners, a San Francisco, California-based private equity firm, has acquired Solera Holdings Inc. (NYSE:SLH), an auto claims processing software provider based in Westlake, Texas.
3/2/2016 S.U.R.&R. Auto Parts Inc. Husky Corporation Husky Corporation has acquired S.U.R.&R. Auto Parts Inc., a manufacturer and distributor of fluid line repair kits based in Akron, Ohio.
3/1/16 Covs Parts Pty Ltd. Genuine Parts Company (NYSE:GPC)
Genuine Parts Company (NYSE:GPC) has acquired Covs Parts Pty Ltd., a distributor of auto parts, tools, equipment, and consumables for transportation and fleet companies headquartered in Welshpool, Australia.
3/1/16 Jiffy-tite Company Inc. Oetiker Limited Oetiker Limited has acquired Jiffy-tite Company Inc., a manufacturer of fluid fitting products based in Lancaster, New York.
3/1/2016 Jean Talon Auto Parts (1993) Ltd. and Centre de Pieces Gagnon
Uni-Select Inc. (TSX:UNS) Uni-Select Inc. (TSX:UNS) has acquired Jean Talon Auto Parts (1993) Ltd. and Centre de Pieces Gagnon, wholesalers of automotive parts based in Canada.
2/29/2016 Roll-N-Lock Corporation Lund International, Inc. (Highlander Partners)
Lund International, Inc., a portfolio company of Highlander Partners, has acquired Roll-N-Lock Corporation, a manufacturer of tonneau cover and cargo management products based in Pompano Beach, Florida.
2/25/2016 Automotive Development Group, LLC
APCO Holdings, Inc. APCO Holdings, Inc. has acquired Automotive Development Group, LLC, a provider of dealership consulting, automotive sales training, and compliance training services to automobile dealerships based in Mooresville, North Carolina.
2/17/2016 Brasher's Auctions, Inc. and West Coast Auto Auctions, Inc.
ADESA, Inc. ADESA, Inc. has acquired Brasher's Auctions, Inc. and West Coast Auto Auctions, Inc., providers of auto auction services based in Salt Lake City, Utah and Sherwood, Oregoan, respectively.
2/16/2016 Professional Collision Centers, Inc.
Service King Paint & Body, LLC (The Blackstone Group)
Service King Paint & Body, LLC, a portfolio company of The Blackstone Group, has acquired Professional Collision Centers, Inc., a provider of auto collision repair services based in Stafford, Virginia.
2/16/2016 Magnuson-Hagopian Enterprises, Inc.
Finishmaster Inc. Finishmaster Inc., a subsidiary of Uni-Select Inc. (TSX:UNS), has acquired Magnuson-Hagopian Enterprises, Inc., a provider of automotive and industrial finishing solutions based in Ferndale, Michigan.
2/11/2016 Florida Auto Wash, Inc. Mister Car Wash, Inc. (Leonard Green & Partners)
Mister Car Wash, a portfolio company of Leonard Green & Partners, has acquired Florida Auto Wash, Inc., an operator of car wash centers based in West Melbourne, Florida.
2/2/2016 Pep Boys (NYSE:PBY) Icahn Enterprises (NasdaqGS:IEP)
Icahn Enterprises (NasdaqGS:IEP) has acquired Pep Boys (NYSE:PBY), an automotive parts retailer based in Philadelphia, Pennsylvania.
2/2/2016 MICO, Incorporated WABCO Holdings Inc. (NYSE:WBC)
WABCO Holdings Inc. (NYSE:WBC) has acquired MICO, Incorporated, a manufacturer of off-road vehicle components based in North Mankato, Minnesota.
2/2/2016 Pure Power Technologies Principals of the Smithfield Group and Kensington Capital Partners
Principals of the Smithfield Group and Kensington Capital Partners have acquired Pure Power Technologies, a supplier of diesel fuel-injection systems based in Blythewood, South Carolina.
2/1/2016 OCH International, Inc. Ashland Inc. (NYSE:ASH) Ashland Inc. (NYSE:ASH) has acquired OCH International, Inc., an operator and franchisor of quick-lube service centers based in Portland, Oregon.
2/1/2016 Magnum Automotive Group, LLC Dana Holding Corporation (NYSE:DAN)
Dana Holding Corporation (NYSE:DAN) has acquired Magnum Automotive Group, LLC, a manufacturer of automotive gaskets based in Bannockbum, Illinois.
1/29/2016 First Impressions Collision, Inc. Service King Paint & Body, LLC (The Blackstone Group)
Service King Paint & Body, LLC, a portfolio company of The Blackstone Group, has acquired First Impressions Collision, Inc., a provider of automotive collision repair services based in Columbus, Ohio.
1/19/2016 Automotive Collision Technologies
Caliber Bodyworks, Inc. (OMERS)
Caliber Bodyworks, Inc., a portfolio company of OMERS, has acquired Automotive Collision Technologies, a collision repair operator based in Baltimore, Maryland.
1/19/2016 Wayne’s Tire & Auto Repair American Tire Depot American Tire Depot has acquired Wayne’s Tire & Auto Repair, an independent tire dealer based in Santa Maria, California.
1/11/2016 Drake Automotive Group Huron Capital Partners Huron Capital Partners has acquired Drake Automotive Group, an automotive parts manufacturer and distributor based in Henderson, Nevada.
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contact our Automotive Aftermarket investment banking team to find out more.
Joe SparacinoGroup Head of Aftermarket Investment Banking
BB&t Capital markets is the leading investment bank to the aftermarket. the firm provides unparalleled industry expertise with best-in-class transaction execution. BB&t Capital markets has the only dedicated aftermarket practice on Wall Street and offers merger and acquisition advisory, capital raising, and a full suite of investment banking services to the entire aftermarket channel and in every niche of the industry.
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$975,000,000
Initial Public OfferingCo-Manager
$110,400,000
Initial Public OfferingCo-Manager
Advisor to the Board
has received an investment from
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