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 and regulated 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 INDUSTRY UPDATE │ APRIL 2015
12
Embed
TRANSPORTATION & LOGISTICS · Pending Logistics TNT Express N.V. Provides express delivery services in Europe, the Middle East and Africa, Asia-Pacific, and the Americas. FedEx Corporation
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
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.
Jeffery PerkinsManaging Director [email protected]+49 (0) 69 3650638 00
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ APRIL 2015
LOGISTICS | INTERNET OF THINGS POISED TO TRANSFORM LOGISTICS
A new trend report compiled by Cisco Consulting Services and DHL claims that theInternet of Things (IoT) will completely transform global supply chain structures andlogistics practices. The IoT presents a unique technology transition that is impactingall our lives and will have huge implications for the business of logistics as we movefrom 15 billion connected devices today to some 50 billion by 2020.
Fleet Owner
TRUCKING | REVENUE INCREASINGLY FLOWS TO BIGGEST CARRIERS
In the U.S., trucking is considered a "fragmented" industry, with hundreds ofthousands of carriers, many of them fielding only a few trucks, hauling freightacross the continent. However, trucking revenue has become increasinglyconcentrated, as the number of carriers with more than $1bn in annual revenuemore than doubled over the last decade.
Journal of Commerce
MARINE | SAVINGS AVAILABLE THROUGH ALLIANCE COOPERATION
The scale advantage container shipping alliances are realizing at sea comes to anend when vessels arrive in port, and extending that cooperation to land is thecritical next step towards improving efficiency and profitability, a new McKinseyreport has found. Reducing the overall cost base and complexity of land-basedwork by combining the operations of alliance members would give a midsizealliance member $100 million in U.S. landside savings a year, the report found.
Journal of Commerce
AIR | LUNAR NEW YEAR AND U.S. PORT CONGESTION BOOST AIR FREIGHT
The International Air Transport Association (IATA) released February data for globalair freight markets showing a sharp increase in year-on-year air freight volumes.Growth measured by freight tonne kilometers (FTK) was up 11.7% in February,compared to February 2014. Capacity grew 7.4%.
IATA
WHAT WE’RE READING
HARRIS WILLIAMS & CO. DEAL SPOTLIGHT
has been acquired by
a portfolio company ofHarris Williams & Co. advised Marquette TransportationCompany (“Marquette”), a portfolio company of KRGCapital Partners, on its sale to BDT Capital Partners.Marquette is a leading provider of towing services on theinland waterways of the United States.
Press Release
Marquette Transportation Company
RAIL | 2014 SAFEST YEAR ON RECORD
The most recent safety statistics released by the Federal Railroad Administration(FRA) in April show that 2014 was the safest year on record for train operations inthe United States, in terms of both the number of accidents and the accident rateper million train-miles, for a variety of causes.
Prov ides truckload and less-than-truckload transport serv ices with
emphasis on U.S.-Canada cross-border business.
Dicom Transportation
Group, L.P.
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 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.
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.
2/4/2015 Rail Railroad Controls Limited Provides railroad signal construction serv ices to the freight and
commuter rail industry.
Westinghouse Air Brake
Technologies Corporation
M&A TRANSACTIONS
2
RECENT M&A TRANSACTIONS1,2
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ APRIL 2015
PAGE |
PUBLIC MARKETS OVERVIEW
3
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ APRIL 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)
7.1x
8.2x
9.4x
10.6x
11.3x
Transportation
Equipment
Trucking
Marine
Rail & Rail Services
Logistics Providers
6.0x
6.6x
8.4x
9.1x
10.4x
Transportation
Equipment
Trucking
Marine
Rail & Rail Services
Logistics Providers
3.5%
6.4%
7.7%
8.7%
11.5%
Marine
Logistics Providers
Trucking
Transportation
Equipment
Rail & Rail Services
2.0%
5.2%
7.0%
8.7%
9.5%
Marine
Transportation
Equipment
Logistics Providers
Rail & Rail Services
Trucking
6.8%
7.4%
8.1%
13.0%
17.5%
Logistics Providers
Transportation
Equipment
Marine
Trucking
Rail & Rail Services
11.2%
11.5%
12.3%
13.3%
15.7%
Transportation
Equipment
Rail & Rail Services
Marine
Logistics Providers
Trucking
PAGE |
STOCK PRICE PERFORMANCE
4
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ APRIL 2015
(Indexed to April 21, 2014)
TRAILING TWELVE MONTHS
MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)
(7.2%)
(4.5%)
(4.3%)
(2.0%)
9.7%
Trucking
Logistics Providers
Transportation
Equipment
Rail & Rail Services
Marine
(9.5%)
(5.9%)
6.9%
9.1%
15.7%
Marine
Transportation
Equipment
Trucking
Logistics Providers
Rail & Rail Services
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
4/21/14 7/21/14 10/21/14 1/21/15 4/21/15
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 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
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ APRIL 2015
6
PAGE |
PUBLIC COMPARABLES
7
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ APRIL 2015
Logistics Providers
Agility Public Warehousing Company KSC $2,660 $2.55 (4.3%) (4.6%) $2.65 96.2% 8.8x 10.1x 10.1x 10.1x NA
Air Transport Services Group, Inc. 917 9.35 4.5% 18.4% 9.72 96.2% 5.4x 4.6x 5.1x 5.1x 5.0x
Atlas Air Worldwide Holdings, Inc. 2,730 43.28 (7.8%) 22.4% 51.00 84.9% 6.8x 7.5x 7.9x 7.9x 7.5x
Harris Williams & Co. (www.harriswilliams.com) 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.
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 and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.
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.