TRANSPORTATION & LOGISTICS - Harris Williams...8/4/2015 Logistics Courier Express Enterprises LLC Asset-free provider of B2B last mile services with over 1,000 dedicated delivery providers.

www.harriswilliams.com

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised andregulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

TRANSPORTATION & LOGISTICS

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INDUSTRY UPDATE │ AUGUST 2015

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www.harriswilliams.com

has acquired

TRANSPORTATION AND LOGISTICS OVERVIEW

1

CONTENTS

M&A TRANSACTIONS

PUBLIC MARKETS OVERVIEW

STOCK PRICE PERFORMANCE

OUR GROUP

CONTACTS

UNITED STATES

Frank MountcastleManaging [email protected]+1 (804) 915-0124

Jason BassManaging [email protected]+1 (804) 915-0132

Joe ConnerManaging Director [email protected]+1 (804) 915-0151

Jeff BurkettDirector [email protected] +1 (804) 932-1334

Jershon JonesDirector [email protected]+1 (804) 932-1356

Jeff KiddVice President [email protected] +1 (804) 915-0178

EUROPE

Jeffery PerkinsManaging Director [email protected]+49 (0) 69 3650638 00



TRUCKING | HOW THE U.S. TRUCKING INDUSTRY IS KEEPING UP

With the U.S. economy continuing to expand, trucking companies have had tokeep up with growing freight demand while battling a significant shortage oflicensed truck drivers. In order to meet demand, trucking companies have optedto add more trailers to increase the capacity of each individual driver. Accordingto CK Commercial Vehicle Research, approximately 70 percent of surveyedtrucking companies plan to buy more trailers, representing the highest level since2007.

Bloomberg

MARINE | WESTBOUND TRANS-ATLANTIC TRANSFORMED

Driven by a combination of the euro’s slide against the dollar and thestrengthening U.S. economy, traffic on the head-haul Europe-to-U.S. westboundtrade grew 8.4 percent year-over-year in the first quarter. That growth matchedthe growth experienced throughout all of 2014, making it the second-fastestgrowing east-west route after the 12.6 percent jump in the Asia-Mediterraneantrade.

Journal of Commerce

AIR | AIR FREIGHT SLOWDOWN CONTINUES

The International Air Transport Association (IATA) released data for global air freightmarkets displaying air freight volumes, measured in freight tonne kilometers (FTM),rose only 1.2 percent compared to a year ago. This is consistent with falling tradeactivity and weaker than expected global growth.

IATA

RAIL | RAIL SHIPPERS SEEK NEW RULES TO PROMOTE RATE COMPETITION

The National Industrial Transportation League and other shipper groups haveurged the Surface Transportation Board to create new rules that would foster lowerrail prices through competitive switching or rate caps, now that carriers havebecome profitable enough to absorb a slight revenue decline.

Transport Topics

LOGISTICS | FREIGHT STARTUPS ATTRACT SILICON VALLEY’S ATTENTION

Silicon Valley investors are piling into companies that want to drag the $160-billion-a-year business of arranging cargo shipments into the internet age. Since the startof 2014, venture capital firms have pumped more than $1 billion into start-upfreight forwarding companies, an industry that was not on most tech investors’radar two years ago.

Wall Street Journal

HARRIS WILLIAMS & CO. DEAL SPOTLIGHT

Harris Williams & Co. announces the acquisition of The KenanAdvantage Group, a portfolio company of Goldman SachsCapital Partners and Centerbridge Partners, by OMERSPrivate Equity (OPE). Kenan Advantage is North America’slargest tank truck transporter and logistics provider, deliveringfuel, chemicals, industrial gasses, and food-grade products.

HW&Co. acted as the buyside advisor for OPE.

Kenan Advantage Group, Inc.

WHAT WE’RE READING

http://www.harriswilliams.com/

mailto:[email protected]







http://www.bloomberg.com/news/articles/2015-08-13/how-the-u-s-trucking-industry-is-keeping-up-with-the-economy

http://www.joc.com/maritime-news/trade-lanes/trans-atlantic/westbound-trans-atlantic-trade-transformed-sleepy-dynamic_20150804.html

http://www.iata.org/pressroom/pr/Pages/2015-08-05-01.aspx

http://www.ttnews.com/articles/petemplate.aspx?storyid=38963&page=1

http://www.wsj.com/articles/freight-startups-attract-silicon-valleys-attention-1438875678

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Announced Sector Target Business Description Acquirer

8/17/2015 Logistics Ozburn-Hessey Logistics,

LLC

Provides third party logistics serv ices, including warehousing &

fulfillment, transportation management, custom brokerage, and

international transportation.

Geodis S. A.

8/10/2015 Trucking Hornady Transportation

LLC

Provides flatbed trucking serv ices to customers on the east coast of

the United States.

Daseke, Inc.

8/4/2015 Logistics Hallcon Corporation Canadian provider of specialty outsourced serv ices to the railway

and transit sectors in North America.

Novacap

8/4/2015 Logistics Courier Express

Enterprises LLC

Asset-free provider of B2B last mile serv ices with over 1,000

dedicated delivery prov iders.

Dicom Transportation

Group, L.P.

7/31/2015 Logistics Coyote Logistics, LLC Non-asset based truckload, LTL, and intermodal serv ice provider. United Parcel Serv ice,

Inc.

7/30/2015 Logistics North & South Logistics,

Inc.

Prov ides freight brokerage, focusing on LTL, truckload, and

intermodal freight logistics, throughout the continental United States.

Transport United, Inc.

7/28/2015 Trucking Stagecoach Cartage

and Distribution, LP.

Prov ides regional, intermodal, and over-the-road truckload serv ices

and warehousing and trans-loading solutions.

Roadrunner Transportation

Systems, Inc.

7/27/2015 Logistics SFO Shuttle Bus

Company and Loop

Transportation

Provides employee commuter serv ices as well as airport shuttle

serv ices.

Hallcon Corporation

7/27/2015 Rail Faiveley Transport S.A. International manufacturer and supplier of equipment for the

railway industry.

Westinghouse Air Brake

Technologies Corporation

7/22/2015 Logistics BearWare Inc. Prov ides freight tracking and related solutions for specialty retail

shippers.

The Descartes Systems

Group Inc

7/21/2015 Logistics EXTRA Express Cerritos,

Inc.

Asset-light prov ider of B2B last mile serv ices based in Los Angeles,

CA.

Dicom Transportation

Group, L.P.

7/20/2015 Equipment Allstate Utility Trailers Inc. Prov ides utility trailers, cargo trailers, car trailers, and dump trailers,

parts, and accessories nationwide.

Mobile Mini, Inc.

7/16/2015 Logistics eBay Enterprise, Inc. eBay Enterprise handles warehousing and logistics for third-party

sellers.

Permira Advisers Ltd

7/16/2015 Logistics G4S International

Logistics, Insured Parcel

Serv ices Business

Prov ides secure transportation and delivery for high value goods. UPS Capital Corporation

7/14/2015 Rail Transportation

Technology Serv ices,

Inc.

Engineering and logistics company specializing in handling all aspects

of shipping by rail.

BNSF Logistics, LLC

7/8/2015 Air Fraport Cargo Serv ices

GmbH

Provides independent cargo handling serv ices at Frankfurt Airport,

Europe's joint largest cargo airport alongside Paris CDG.

WFS Global SAS

7/6/2015 Logistics TransForce, Inc. Specialized staffing and recruiting company that prov ides qualified

commercial truck drivers to third-party logistics companies, private

fleets, and trucking companies.

Palladium Equity Partners

7/1/2015 Trucking Bulldog Hiway Express Prov ides truckload and intermodal carrier serv ices in the U.S. and

Canada, operating several hundred power units and more than 400

trailers.

Daseke, Inc.

6/18/2015 Trucking The Kenan Advantage

Group, Inc.

North America's largest tank truck transporter and logistics prov ider,

delivering fuel, chemicals, industrial gases, and food-grade products.

OMERS Private Equity

M&A TRANSACTIONS

2

RECENT M&A TRANSACTIONS1,2



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8.8%

11.6%

14.0%

15.1%

15.6%

Rail & Rail Services

Transportation

Equipment

Logistics Providers

Trucking

Marine

6.9%

7.4%

7.5%

13.0%

17.5%

Logistics Providers

Transportation

Equipment

Marine

Trucking


(0.4%)

5.2%

6.1%

6.6%

8.5%

Marine

Transportation

Equipment

Logistics Providers


Trucking

3.5%

6.4%

7.7%

8.7%

11.5%

Marine

Logistics Providers

Trucking

Transportation

Equipment


5.3x

6.5x

8.1x

8.2x

10.7x

Transportation

Equipment

Trucking

Marine


Logistics Providers

6.2x

6.6x

8.2x

9.8x

10.6x

Transportation

Equipment

Trucking


Marine

Logistics Providers

PUBLIC MARKETS OVERVIEW

3


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)


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(30%)

(20%)

(10%)

0%

10%

20%

30%

Aug-13-2014 Nov-13-2014 Feb-13-2015 May-13-2015 Aug-13-2015

Logistics Providers Trucking Rail & Rail Services

Marine Transportation Equipment S&P 500 Index

(26.5%)

(17.6%)

(3.0%)

2.6%

2.7%

Marine


Transportation

Equipment

Logistics Providers

Trucking

(8.0%)

(5.9%)

(2.9%)

(2.7%)

1.3%

Marine

Logistics Providers

Trucking

Transportation

Equipment


STOCK PRICE PERFORMANCE

4


(Indexed to August 13, 2014)

TRAILING TWELVE MONTHS

MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)


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has been acquired by

a portfolio company ofa portfolio company of

has been acquired byhas been acquired by

a portfolio company of



and

in partnership with

and

RCL Services Group

has sold

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OUR GROUP

Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & LogisticsGroup serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marineand air transportation, transportation equipment, and the automotive and heavy duty vehicle market.


RECENTLY CLOSED T&L TRANSACTIONS

DEEP EXPERIENCE ACROSS T&L SECTORS

MARINE TRANSPORTATION

NICHE TRANSPORTATION

TRANSPORTATION EQUIPMENT

RAIL & RAIL SERVICES

AUTOMOTIVE & HEAVY DUTY

VEHICLE

THIRD-PARTY LOGISTICS

AIR TRANSPORTATION

5




has acquired

http://www.portlogisticsgroup.com/

http://www.portlogisticsgroup.com/

http://corpjetfin.live.subhub.com/custom/Hawker_Beechcraft_black_h_logo.jpg

http://corpjetfin.live.subhub.com/custom/Hawker_Beechcraft_black_h_logo.jpg

Energy, Power & Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

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HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

BostonTwo International Place24th FloorBoston, Massachusetts 02110Phone: +1 (617) 482-7501Fax: +1 (617) 482-7503

Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400Fax: +1 (216) 689-2401

Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359-2700Fax: +1 (612) 359-2701

Richmond (Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072Fax: +1 (804) 648-0073

San Francisco575 Market Street31st FloorSan Francisco, California 94105, USAPhone: +1 (415) 288-4260Fax: +1 (415) 288-4269

FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00Fax: +49 069 3650638 01

London63 Brook StreetLondon W1K 4HS, EnglandPhone: +44 (0) 20 7518 8900Fax: +44 (0) 20 7526 2187

NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai


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 andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries.

OUR FIRM


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Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Aug-14 Feb-15 Current 2014 2015E


TEV / LTM EBITDA as of

Logistics Providers

Agility Public Warehousing Company KSC $2,360 $2.18 1.6% (20.7%) $2.90 75.3% 9.5x 10.7x 9.1x 8.9x 8.3x

Air Transport Services Group, Inc. 919 9.64 (9.1%) 13.9% 10.96 88.0% 5.2x 4.9x 4.8x 5.1x 4.7x

Atlas Air Worldwide Holdings, Inc. 2,576 44.78 (15.5%) 35.5% 59.47 75.3% 7.8x 8.7x 6.6x 7.5x 6.5x

CH Robinson Worldwide Inc. 10,702 68.71 6.0% 1.8% 77.49 88.7% 14.6x 14.3x 12.5x 13.4x 11.8x

Deutsche Post AG 39,729 29.51 (5.9%) (6.9%) 34.75 84.9% 8.0x 9.3x 10.9x 8.9x 8.2x

DSV A/S 7,198 37.92 11.6% 21.1% 38.73 97.9% 11.7x 12.5x 15.1x 14.8x 13.7x

Echo Global Logistics, Inc. 921 24.52 (25.5%) 7.9% 34.35 71.4% 18.3x 16.1x NM NM 14.4x

Expeditors International of Washington Inc. 8,186 48.72 6.1% 19.6% 49.51 98.4% 11.4x 11.9x 11.4x 12.7x 10.9x

FedEx Corporation 49,711 163.60 (4.3%) 9.5% 185.19 88.3% 6.9x 8.1x 7.0x 7.7x 7.2x

Forward Air Corp. 1,561 48.03 (9.6%) 3.2% 57.65 83.3% 12.3x 12.6x 11.8x 12.3x 10.7x

Hub Group Inc. 1,456 40.85 (2.2%) (10.4%) 47.35 86.3% 12.2x 10.6x 10.6x 10.7x 11.4x

JB Hunt Transport Services Inc. 10,197 80.08 (6.6%) 5.0% 93.50 85.6% 11.5x 11.2x 10.2x 11.0x 9.7x

Kuehne + Nagel International AG 16,098 137.74 3.4% 2.6% 152.39 90.4% 14.1x 16.1x 15.2x 16.3x 15.4x

Landstar System Inc. 2,996 68.90 (0.1%) 2.7% 81.80 84.2% 13.9x 12.1x 11.4x 12.0x 11.0x

Panalpina World Transport Holding Ltd. 2,655 122.36 (0.7%) (12.7%) 151.67 80.7% 18.3x 18.2x 17.0x 17.7x 13.4x

Roadrunner Transportation Systems, Inc. 1,338 23.89 (8.5%) (6.6%) 28.51 83.8% 12.1x 11.3x 9.8x 11.1x 8.7x

Ryder System, Inc. 9,881 88.75 (3.3%) 1.6% 100.64 88.2% 6.0x 5.7x 5.8x 6.1x 5.5x

TransForce Inc. 3,155 18.63 (8.0%) (26.5%) 24.18 77.0% 10.4x 8.9x 8.1x 8.7x 8.1x

United Parcel Service, Inc. 98,258 101.84 4.2% 5.4% 114.40 89.0% 12.2x 14.3x 11.8x 14.3x 10.0x

Universal Truckload Services Inc. 777 20.27 (8.4%) (16.6%) 29.06 69.8% 8.9x 8.2x 6.7x 6.8x 6.5x

UTi Worldwide Inc. 1,435 7.91 (14.9%) (16.2%) 14.75 53.6% 19.0x NM NM 17.0x 15.1x

World Fuel Services Corp. 3,252 41.22 (15.2%) (7.5%) 58.50 70.5% 12.0x 12.6x 10.5x 10.2x 10.8x

XPO Logistics, Inc. 7,512 38.18 (17.1%) 23.9% 50.96 74.9% NM NM NM NM 18.9x

Median (5.9%) 2.6% 84.2% 11.8x 11.3x 10.6x 11.0x 10.7x

Trucking

ArcBest Corporation $752 $32.25 0.4% (5.3%) $47.52 67.9% 6.3x 6.1x 4.4x 4.9x 4.0x

Celadon Group Inc. 1,106 20.38 (8.2%) (2.8%) 29.15 69.9% 7.2x 9.5x 9.7x 10.6x 8.3x

Con-way Inc. 2,393 36.74 (1.7%) (27.5%) 53.54 68.6% 6.8x 6.6x 4.8x 4.9x 4.5x

Covenant Transportation Group, Inc. 588 24.50 (8.4%) 104.5% 36.82 66.5% 5.4x 8.1x 5.2x 6.6x 4.8x

Heartland Express, Inc. 1,762 20.96 2.3% (9.3%) 27.96 75.0% 11.8x 10.7x 8.5x 8.5x 7.2x

Knight Transportation Inc. 2,325 27.66 (4.5%) 14.8% 34.73 79.6% 9.8x 11.0x 8.5x 9.7x 7.6x

Marten Transport Ltd. 628 18.80 (15.3%) (5.7%) 24.92 75.4% 6.2x 6.5x 5.1x 5.5x 4.6x

Old Dominion Freight Line Inc. 6,318 72.50 6.5% 12.0% 81.48 89.0% 11.3x 11.1x 9.9x 10.8x 9.3x

P.A.M. Transportation Services, Inc. 390 47.04 (23.6%) 21.0% 67.61 69.6% 7.3x 8.5x 6.4x 7.1x NA

Quality Distribution Inc. 774 15.95 1.2% 12.8% 15.98 99.8% 11.5x 9.3x 12.1x 11.0x 9.0x

Saia, Inc. 1,136 41.31 1.1% (13.7%) 57.60 71.7% 9.7x 8.1x 7.0x 7.8x 6.5x

Swift Transportation Company 4,616 22.88 (4.2%) 11.1% 29.44 77.7% 8.0x 8.7x 7.4x 7.9x 6.8x

Universal Truckload Services Inc. 777 20.27 (8.4%) (16.6%) 29.06 69.8% 8.9x 8.2x 6.7x 6.8x 6.5x

USA Truck Inc. 297 20.11 (7.0%) 8.2% 32.14 62.6% 7.5x 7.1x 4.8x 4.9x 4.7x

Werner Enterprises Inc. 2,047 28.09 1.6% 12.1% 33.42 84.1% 6.2x 6.9x 5.9x 6.4x 5.3x

YRC Worldwide Inc. 1,528 19.54 46.8% (12.3%) 25.40 76.9% 11.2x 7.7x 5.5x 7.7x 4.2x

Median (2.9%) 2.7% 73.3% 7.8x 8.2x 6.6x 7.4x 6.5x

PUBLIC COMPARABLES

7



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Rail and Rail Services

American Railcar Industries, Inc. $1,239 $40.29 (13.2%) (46.2%) $82.82 48.6% 8.8x 6.7x 5.2x 6.1x 4.8x

Canadian National Railway Company 56,480 61.86 6.6% (8.0%) 68.03 90.9% 12.9x 12.8x 11.6x 11.5x 11.7x

Canadian Pacific Railway Limited 30,445 158.06 0.8% (17.0%) 189.46 83.4% 15.4x 14.9x 12.4x 12.5x 12.2x

CSX Corp. 37,933 29.39 (7.9%) (1.1%) 37.99 77.4% 8.5x 9.3x 7.7x 8.0x 7.7x

FreightCar America Inc. 205 22.10 4.0% (18.3%) 37.48 59.0% NM 14.1x 6.3x 12.0x 4.7x

Genesee & Wyoming Inc. 6,332 73.82 1.8% (21.6%) 105.49 70.0% 12.8x 11.5x 10.7x 11.0x NA

The Greenbrier Companies, Inc. 1,742 44.73 (7.2%) (30.8%) 78.32 57.1% 10.4x 7.7x 4.8x 7.3x 4.1x

Kansas City Southern 13,201 97.78 3.9% (11.9%) 126.49 77.3% 14.0x 13.7x 12.1x 11.9x 12.1x

Norfolk Southern Corporation 33,199 81.02 (6.3%) (21.5%) 117.64 68.9% 9.1x 9.3x 7.8x 7.3x 8.2x

Trinity Industries Inc. 7,485 28.01 8.5% (35.9%) 50.77 55.2% 7.8x 5.6x 5.0x 5.3x 4.6x

Union Pacific Corporation 91,733 92.70 (4.5%) (7.8%) 124.52 74.4% 10.1x 11.0x 8.7x 8.6x 8.9x

Westinghouse Air Brake Technologies Corporation 9,769 99.63 4.3% 21.5% 105.10 94.8% 15.6x 14.8x 15.2x 16.6x 14.5x

Median 1.3% (17.6%) 72.2% 10.4x 11.3x 8.2x 9.8x 8.2x

Marine

Aegean Marine Petroleum Network Inc. $1,201 $11.51 (8.4%) 21.8% $15.71 73.3% 12.1x 13.2x 12.1x 12.3x 9.3x

Costamare Inc. 2,688 15.83 (12.7%) (31.6%) 23.84 66.4% 11.9x 9.9x 8.5x 8.5x 7.9x

Diana Shipping Inc. 932 7.01 (7.9%) (30.7%) 11.04 63.5% 19.7x 15.1x NM 18.6x NM

Kirby Corporation 4,671 70.41 (10.1%) (40.6%) 124.12 56.7% 12.0x 7.7x 7.5x 7.2x 8.1x

Matson, Inc. 2,278 40.84 (5.8%) 51.5% 43.84 93.2% 8.2x 8.7x 9.9x 11.2x 8.1x

Neptune Orient Lines Limited 4,454 0.62 (4.5%) (17.8%) 0.86 72.5% NM NM 9.8x 15.2x 9.9x

Nordic American Tankers Limited 1,490 15.09 (0.2%) 70.7% 17.45 86.5% NM 17.7x 11.1x NM 6.8x

Rand Logistics, Inc. 249 2.66 (17.4%) (57.6%) 6.65 40.0% 11.1x 7.8x 7.9x 8.5x 7.0x

SEACOR Holdings Inc. 1,691 62.82 (8.2%) (22.3%) 83.12 75.6% 8.8x 7.7x 9.2x 7.0x 9.7x

Wilh. Wilhelmsen ASA 2,151 5.48 (4.2%) (36.3%) 6.76 81.1% NM 15.1x 12.2x 15.4x 4.8x

Median (8.0%) (26.5%) 72.9% 11.9x 9.9x 9.8x 11.2x 8.1x

Transportation Equipment

Accuride Corp. $461 $3.66 (2.7%) (26.9%) $5.47 66.9% 9.3x 7.3x 5.8x 6.2x 5.2x

Dana Holding Corporation 3,612 18.40 (8.9%) (20.8%) 23.93 76.9% 5.9x 6.1x 5.2x 5.1x 5.0x

Gentherm Incorporated 1,759 48.82 (4.5%) 7.9% 57.95 84.2% 14.4x 10.6x 12.8x 13.1x 12.2x

Spartan Motors Inc. 150 4.82 9.0% 3.0% 5.71 84.4% 16.3x 17.1x 12.4x 15.9x 12.1x

Wabash National Corp. 1,099 13.55 8.6% (3.0%) 15.21 89.1% 8.3x 7.0x 6.2x 6.8x 5.3x

Median (2.7%) (3.0%) 84.2% 9.3x 7.3x 6.2x 6.8x 5.3x

PUBLIC COMPARABLES

8



Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Aug-14 Feb-15 Current 2014 2015E


TEV / LTM EBITDA as of

PAGE |

Logistics Providers

Agility Public Warehousing Company KSC $4,775 $5,039 $4,873 $4,633 $4,603 $4,815 (1.0%) 1.9% $199 $254 $296 $265 $284 $303 10.0% 7.1%

Air Transport Services Group, Inc. 730 607 580 590 605 623 (6.9%) 2.8% 181 163 158 179 191 199 (0.3%) 5.3%

Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,834 1,872 8.8% 2.4% 203 296 307 344 376 373 19.1% 4.1%

CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 14,270 15,278 9.2% 6.5% 720 751 731 797 880 926 3.4% 7.8%

Deutsche Post AG 68,631 73,191 75,621 68,547 65,236 67,747 (0.0%) (0.6%) 3,384 4,129 5,108 4,424 4,819 5,332 9.3% 9.8%

DSV A/S 7,639 7,937 8,439 7,896 7,523 7,819 1.1% (0.5%) 498 519 543 486 503 537 (0.8%) 5.2%

Echo Global Logistics, Inc. 603 758 884 1,173 1,684 2,255 24.9% 38.6% 23 27 27 36 74 107 16.5% 72.6%

Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 7,089 7,585 2.1% 7.5% 655 571 600 644 731 787 (0.6%) 10.6%

FedEx Corporation 39,304 42,680 44,287 45,567 47,609 50,467 5.1% 5.2% 4,506 5,367 6,112 6,417 6,891 7,899 12.5% 10.9%

Forward Air Corp. 509 584 652 781 992 1,080 15.4% 17.6% 97 104 107 127 158 184 9.4% 20.7%

Hub Group Inc. 2,752 3,124 3,374 3,571 3,673 3,912 9.1% 4.7% 112 134 138 135 123 142 6.4% 2.4%

JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,280 NA 11.4% NA 658 759 830 926 1,056 1,181 12.1% 12.9%

Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 21,399 22,623 0.5% 13.3% 1,038 979 1,070 987 1,065 1,116 (1.7%) 6.4%

Landstar System Inc. 2,594 2,735 2,628 3,145 3,377 3,620 6.6% 7.3% 204 223 201 250 271 297 6.9% 9.0%

Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 6,877 7,172 (1.0%) 3.1% 220 92 161 150 208 266 (11.9%) 33.1%

Roadrunner Transportation Systems, Inc. 844 1,073 1,361 1,873 2,144 2,293 30.5% 10.7% 54 81 99 121 151 169 30.9% 18.4%

Ryder System, Inc. 6,051 6,257 6,419 6,639 6,708 7,135 3.1% 3.7% 1,290 1,396 1,459 1,628 1,790 1,946 8.1% 9.3%

TransForce Inc. 2,378 2,822 2,620 2,817 3,429 3,518 5.8% 11.8% 313 392 318 361 415 448 4.9% 11.4%

United Parcel Service, Inc. 53,105 54,127 55,438 58,232 59,696 62,766 3.1% 3.8% 7,830 3,201 8,868 6,864 9,647 10,333 (4.3%) 22.7%

Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,166 1,234 6.3% 1.8% 84 96 105 115 118 129 11.1% 6.1%

UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 4,157 (0.8%) (3.2%) 183 213 146 84 96 111 NM 14.6%

World Fuel Services Corp. 34,623 38,945 41,562 43,386 31,998 35,056 7.8% (10.1%) 291 287 301 319 362 377 3.0% 8.7%

XPO Logistics, Inc. 177 279 702 2,357 6,705 10,617 NM NM 3 (25) (20) 95 381 698 NM NM

Total $276,120 $295,078 $306,963 $308,106 $309,181 $323,643 6.4% 6.1% $22,746 $20,009 $27,664 $25,752 $30,591 $33,862 6.9% 14.0%

Trucking

ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,760 $2,941 11.1% 6.1% $82 $70 $104 $155 $190 $216 23.5% 18.1%

Celadon Group Inc. 467 475 489 615 888 997 9.6% 27.3% 89 103 106 104 136 158 5.4% 23.3%

Con-way Inc. 5,290 5,580 5,473 5,806 5,922 6,252 3.2% 3.8% 386 428 427 493 547 600 8.5% 10.3%

Covenant Transportation Group, Inc. 512 527 539 579 736 782 4.2% 16.2% 63 71 65 89 123 133 11.8% 22.4%

Heartland Express, Inc. 529 546 582 871 780 832 18.1% (2.3%) 132 138 149 208 240 268 16.3% 13.5%

Knight Transportation Inc. 697 752 792 926 1,269 1,406 9.9% 23.2% 169 184 192 239 314 353 12.3% 21.5%

Marten Transport Ltd. 604 638 659 673 684 755 3.7% 5.9% 97 101 110 115 139 152 5.9% 15.0%

Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 3,051 3,409 13.6% 10.6% 326 396 460 587 676 774 21.6% 14.8%

P.A.M. Transportation Services, Inc. 284 298 313 317 NA NA 3.7% NA 29 41 50 55 NA NA 23.7% NA

Quality Distribution Inc. 628 719 805 854 1,020 1,093 10.8% 13.1% 70 69 72 70 84 92 0.0% 14.7%

Saia, Inc. 1,030 1,099 1,139 1,272 1,249 1,348 7.3% 2.9% 65 107 126 145 169 190 30.3% 14.6%

Swift Transportation Company 3,779 3,976 4,118 4,299 4,417 4,787 4.4% 5.5% 549 573 577 583 666 742 2.0% 12.8%

Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,166 1,234 6.3% 1.8% 84 96 105 115 118 129 11.1% 6.1%

USA Truck Inc. 411 512 555 602 589 639 13.6% 3.0% 33 20 35 60 67 74 22.0% 10.7%

Werner Enterprises Inc. 2,003 2,036 2,029 2,139 NA NA 2.2% NA 311 318 296 318 380 408 0.7% 13.3%

YRC Worldwide Inc. 4,869 4,851 4,865 5,069 5,072 5,294 1.4% 2.2% 49 198 199 197 312 343 NM NM

Total $25,905 $27,247 $28,030 $30,615 $29,604 $31,769 7.7% 8.5% $2,536 $2,913 $3,073 $3,532 $4,161 $4,631 13.0% 15.1%

PUBLIC COMPARABLES

9



Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth

($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P


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Rail and Rail Services

American Railcar Industries, Inc. $519 $712 $751 $733 $925 $849 12.2% 7.6% $55 $145 $179 $204 $253 $242 NM 8.8%

Canadian National Railway Company 8,881 9,952 9,954 10,478 9,765 10,394 5.7% (0.4%) 4,112 4,624 4,568 4,900 4,721 5,124 6.0% 2.3%

Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,320 5,747 3.9% 1.5% 1,378 1,778 2,190 2,434 2,556 2,794 20.9% 7.1%

CSX Corp. 11,795 11,763 12,026 12,669 12,185 12,638 2.4% (0.1%) 4,446 4,523 4,577 4,764 4,934 5,265 2.3% 5.1%

FreightCar America Inc. 487 677 290 599 745 798 7.1% 15.5% 12 41 (8) 17 36 48 12.2% NM

Genesee & Wyoming Inc. 829 875 1,569 1,639 2,075 2,346 25.5% 19.7% 252 277 534 574 609 693 31.6% 10.0%

The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,647 2,830 21.8% 15.5% 97 152 145 237 427 472 34.5% 41.0%

Kansas City Southern 2,098 2,239 2,369 2,577 2,473 2,669 7.1% 1.8% 772 872 962 1,106 1,095 1,234 12.7% 5.6%

Norfolk Southern Corporation 11,172 11,040 11,245 11,624 10,938 11,469 1.3% (0.7%) 4,082 4,036 4,169 4,522 4,108 4,471 3.5% (0.6%)

Trinity Industries Inc. 2,938 3,812 4,365 6,170 7,081 6,872 28.1% 5.5% 575 730 963 1,400 1,566 1,439 34.6% 1.4%

Union Pacific Corporation 18,508 19,686 20,684 22,560 23,106 24,586 6.8% 4.4% 7,341 8,505 9,223 10,657 10,559 11,519 13.2% 4.0%

Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,363 3,627 15.7% 9.1% 334 436 485 588 670 743 20.8% 12.4%

Total $65,339 $70,451 $73,136 $79,795 $80,623 $84,825 11.5% 6.6% $23,455 $26,119 $27,987 $31,403 $31,533 $34,043 17.5% 8.8%

Marine

Aegean Marine Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $4,297 $5,037 (1.5%) (13.0%) $75 $85 $75 $98 $134 $149 9.1% 23.4%

Costamare Inc. 382 386 414 484 490 513 8.2% 3.0% 236 238 258 318 334 354 10.4% 5.6%

Diana Shipping Inc. 256 221 164 176 163 187 (11.8%) 3.1% 166 124 53 50 35 43 (32.9%) (6.9%)

Kirby Corporation 1,850 2,113 2,242 2,566 2,268 2,376 11.5% (3.8%) 445 509 582 647 583 627 13.3% (1.5%)

Matson, Inc. 1,463 1,560 1,637 1,714 1,896 2,082 5.4% 10.2% 142 175 172 203 244 275 12.8% 16.4%

Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 6,945 6,868 (2.2%) (10.7%) (90) 96 131 294 478 544 NM NM

Nordic American Tankers Limited 95 131 244 351 283 255 NM NM 10 13 (21) 60 219 186 NM 76.5%

Rand Logistics, Inc. 98 109 119 129 149 152 9.9% 8.3% 16 28 25 29 35 36 23.3% 11.0%

SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,199 1,322 8.5% 0.1% 155 164 197 245 199 248 16.4% 0.6%

Wilh. Wilhelmsen ASA 309 395 325 285 2,488 2,571 NM NM 147 227 154 140 453 447 NM NM

Total $21,661 $22,993 $21,559 $22,303 $20,178 $21,361 3.5% (0.4%) $1,301 $1,658 $1,627 $2,083 $2,713 $2,911 7.5% 15.6%

Transportation Equipment

Accuride Corp. $805 $795 $643 $705 $750 $755 (4.3%) 3.4% $74 $65 $43 $75 $90 $94 0.2% 12.4%

Dana Holding Corporation 7,544 7,224 6,769 6,617 6,360 6,702 (4.3%) 0.6% 720 753 706 705 740 797 (0.7%) 6.3%

Gentherm Incorporated 370 555 662 811 907 1,028 30.0% 12.5% 46 67 84 135 151 181 42.6% 16.0%

Spartan Motors Inc. 426 471 470 507 535 570 6.0% 6.1% 14 16 6 9 11 16 (12.6%) NM

Wabash National Corp. 1,187 1,462 1,636 1,863 2,024 1,996 16.2% 3.5% 33 108 142 161 200 200 NM 11.6%

Total $10,331 $10,506 $10,179 $10,504 $10,576 $11,050 8.7% 5.2% $888 $1,008 $981 $1,084 $1,191 $1,288 7.4% 11.6%

PUBLIC COMPARABLES

10



Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth

($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P


PAGE |


SOURCES


1. Capital IQ.

2. MergerMarket.

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