www.harriswilliams.de Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze, authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins. TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2015
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TRANSPORTATION & LOGISTICS · 2/9/2015 Logistics UX Specialized Logistics Provides non-asset based, last mile logistics services including home delivery, assembly and installation,
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www.harriswilliams.de
Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered withthe Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze,authorised and regulated by the Financial Conduct Authority.
Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main,Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative(Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.
Jeffery PerkinsManaging Director [email protected]+49 (0) 69 3650638 00
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 2015
LOGISTICS | MANAGING MOUNTAIN OF DATA A CHALLENGE TO VISIBILITY
The quality, availability and management of data has to improve if the supplychain is to efficiently handle the mountain of information that is now available tocarriers and their customers, panelists said at the 15th annual TPM Conference inLong Beach, California. Bill Schwebel, president of INTTRA Data, said theinformation management business was at a “lucky” time, with the cloud basedtechnology and all the analytics that were available. But with so much dataavailable, one of the greatest challenges being faced by carriers, forwarders andsoftware providers was how to manage it without being buried under the tsunamiof information.
Journal of Commerce
LOGISTICS | SIDECAR'S DELIVERY SERVICE NOW ACCOUNTS FOR 25% OF SF RIDES
Sidecar is turning into a delivery company. The San Francisco based start-up reported today that 25 percent of its total rides provided in the Bay Area arenow deliveries, up 15 percent from last month. Sidecar is working with e-commerce, food, flower, and grocery companies to deliver items that are often inthe trunk of a car that’s also shuttling people around town. Sidecar said it can offera cheaper price point and faster deliveries than traditional companies in thedelivery industry.
Geek Wire
RAIL | WEST COAST INTERMODAL VOLUME SURGE TESTS INLAND HUBS
Tightening Chicago drayage capacity is causing rates to spike, as shippers havelittle choice but to pay for more local trucking to avoid demurrage charges thatrailroads impose if loads aren’t removed from terminals after two days. Drayagerates for the largest North American freight hub have spiked at least 10 percentover the last several weeks, largely because there are not enough drivers tohandle the surges of international intermodal cargo moving from West Coast ports.
Journal of Commerce
MARINE | CONTAINER LINE FINANCIALS GRADUALLY IMPROVING
Container line financials are gradually improving thanks to asset sales, reducedoperating expenses, debt reduction and effects of a 50 percent drop in bunkerfuel, says the consulting firm Alix Partners. Yet the industry remains challenged andhas yet to demonstrate that the recent improvements are sustainable, EsbenChristensen, director, told a webcast organized by Stifel Capital Markets on Friday.
Journal of Commerce
TRUCKING | INTERMODAL FREIGHT MARKET FACING BIG CHALLENGES
Intermodal freight movements are finally recovering since a tentativeagreement was worked out about three weeks ago between West Coast Portworkers and shipping companies, but diversions of freight from this part of thecountry are expected to continue. That was one of the messages on Thursdaycoming from intermodal and rail expert and senior consultant to FTR, Larry Gross,during a webinar hosted by the freight forecasting firm.
Trucking Info
AIR | THREE PRIORITIES FOR AIR CARGO
The International Air Transport Association (IATA) called for further action on threevital aspects of the air cargo business: transitioning to paperless freight processes,a focus on global handling standards for pharmaceutical freight, and toughaction to ensure the continued safe transportation of lithium batteries by air.
Pending Rail Freightliner Group Ltd Provides international freight rail serv ices with operations in the
United Kingdom, Poland, Germany, the Netherlands, and Australia.
Genesee & Wyoming Inc.
Pending Logistics Toll Holdings Limited Provides integrated logistics serv ices in the Asia-Pacific region and
internationally.
Japan Post Bank Co., Ltd.
Pending Logistics APL Logistics Ltd Provides global supply chain and logistics serv ices across all modes
of transportation.
Kintetsu World Express,
Inc.
Pending Logistics Wheels Group Inc. Prov ides third party logistics and supply chain solutions in North
America.
Radiant Global Logistics
Pending Marine Horizon Lines, Inc. Engages in Jones Act container shipping with primary serv ice to ports
within the continental United States, Alaska, Hawaii, and Puerto Rico.
Matson Navigation
Company, Inc.
3/9/2015 Trucking CLP Towne Inc. Doing business as Towne Air Freight. Prov ides full-serv ice trucking
solutions and specializes in time-definite airport-to-airport trucking.
Forward Air, Inc.
3/3/2015 Equipment Milestone Equipment
Holdings, LLC
Transportation equipment lessor specializing in highway trailers,
intermodal trailers, domestic intermodal containers, and chassis.
Wood Creek Capital
Management, LLC
3/3/2015 Logistics Neovia Logistics
Serv ices, LLC
Provides third party contract logistics serv ices, including warehouse
management, fulfillment, and distribution solutions.
The Goldman Sachs Group
Rhone Capital L.L.C.
3/2/2015 Logistics Pegasus Transportation,
Inc.
Prov ides regional truckload serv ices, with a focus on the high-
security, temperature sensitive, health sciences sector and the
automotive industry.
CRST International, Inc.
2/26/2015 Logistics ITS Logistics LLC Provides a variety of serv ices in supply chain management,
transportation, warehousing, brokerage logistics, and transportation
management.
McNally Capital, LLC
Coughlin Capital, LLC
2/9/2015 Logistics UX Specialized Logistics Prov ides non-asset based, last mile logistics serv ices including home
delivery, assembly and installation, and same-day delivery.
XPO Last Mile, Inc.
2/5/2015 Logistics Xpress Solutions, Inc. Prov ides non-asset based less-than-truckload and truckload solutions
with a regional focus in the Midwest.
Echo Global Logistics, Inc.
2/4/2015 Rail Railroad Controls Limited Provides railroad signal construction serv ices to the freight and
commuter rail industry.
Westinghouse Air Brake
Technologies Corporation
2/9/2015 Logistics Lazer Spot, Inc. Prov ides outsourced yard management serv ices including trailer
spotting and shuttling.
Greenbriar Equity Group
2/2/2015 Logistics PODS Enterprises, Inc. Prov ides container-based moving and storage serv ices. Ontario Teachers' Pension
Plan
2/2/2015 Logistics Linkex, Inc. Prov ides asset-light, third party logistics serv ices including supply
chain design, transportation, warehousing, and last mile solutions.
Saia, Inc.
1/30/2015 Logistics GENCO Distribution
Systems, Inc.
Prov ides product lifecycle and reverse logistics solutions in North
America and internationally.
FedEx Corporation
M&A TRANSACTIONS
2
RECENT M&A TRANSACTIONS1,2
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 2015
PAGE |
PUBLIC MARKETS OVERVIEW
3
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 2015
TEV / LTM EBITDA TEV / 2015E EBITDA
AVERAGE REVENUE GROWTH (2011 – 2014) AVERAGE REVENUE GROWTH (2014 – 2016P)
AVERAGE EBITDA GROWTH (2011 – 2014) AVERAGE EBITDA GROWTH (2014 – 2016P)
7.5x
8.7x
9.4x
11.3x
11.8x
Transportation
Equipment
Trucking
Marine
Rail & Rail Services
Logistics Providers
6.4x
7.3x
8.3x
9.1x
10.6x
Transportation
Equipment
Trucking
Marine
Rail & Rail Services
Logistics Providers
5.4%
7.4%
7.7%
8.7%
12.2%
Marine
Logistics Providers
Trucking
Transportation
Equipment
Rail & Rail Services
5.2%
5.8%
8.0%
8.7%
9.7%
Transportation
Equipment
Marine
Logistics Providers
Rail & Rail Services
Trucking
7.2%
7.4%
7.7%
13.0%
18.4%
Logistics Providers
Transportation
Equipment
Marine
Trucking
Rail & Rail Services
11.1%
12.5%
12.6%
13.9%
16.0%
Transportation
Equipment
Rail & Rail Services
Marine
Logistics Providers
Trucking
PAGE |
STOCK PRICE PERFORMANCE
4
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 2015
(Indexed to March 17, 2014)
TRAILING TWELVE MONTHS
MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)
(6.5%)
(4.6%)
(1.6%)
3.6%
3.7%
Transportation
Equipment
Marine
Rail & Rail Services
Trucking
Logistics Providers
(12.4%)
(2.5%)
13.8%
18.6%
21.2%
Marine
Transportation
Equipment
Trucking
Rail & Rail Services
Logistics Providers
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
3/17/14 6/17/14 9/17/14 12/17/14 3/17/15
Logistics Providers Trucking Rail & Rail Services
Marine Transportation Equipment S&P 500 Index
PAGE |
OUR GROUP
Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & LogisticsGroup has experience across a broad range of sectors, including third-party logistics, rail and rail services, marinetransportation, transportation equipment, niche transportation, automotive and heavy duty vehicle, and airport andaviation services.
Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website.
Note: 2014 revenue and EBITDA estimates for Aegean Marine Petroleum Network Inc. and Nordic American Tankers Limited.
PAGE |
TRANSPORTATION & LOGISTICS
SOURCES
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 2015
1. Capital IQ.
2. MergerMarket.
DISCLOSURES
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Harris Williams & Co. (www.harriswilliams.com and www.harriswilliams.de) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.
Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze, authorised and regulated by the Financial Conduct Authority.
Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.
The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.