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Industrials M&A Report

The document summarizes M&A activity and market performance in the industrials sector in Q4 2011. It notes that overall M&A transaction volume and value declined from Q4 2010 levels, with the number of deals down 32% and total value down 14%. However, public company stock prices in the sector increased over both 3 and 12 month periods. The electrical equipment industry saw the strongest performance with median multiples of 10.0x LTM EBITDA. Recent M&A transactions highlighted include the acquisitions of Heil Trailer and Unifrax.

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HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising John Hill Senior Managing Director hill@hydeparkcapital.com Industrials (813) 383-0205 John McDonald M&A Report Senior Managing Director mcdonald@hydeparkcapital.com Q4 2011 (813) 383-0206 Keith Hodgdon Senior Vice President hodgdon@hydeparkcapital.com (813) 383-0208 Jeffrey Bridge Vice President bridge@hydeparkcapital.com (813) 383-0204 Michael Mariani Associate mariani@hydeparkcapital.com (813) 597-2649 Hyde Park Capital Advisors, LLC 701 N. Franklin Street Tampa, FL 33602 Tel: 813-383-0202 www.hydeparkcapital.com Member FINRA/SIPC
Capital Markets Overview Commentary Select Equity Offerings – Industrials (Q4 2011) ($ in millions) Transaction Transaction  As of December 31, 2011, major market indices including the S&P Offer Date Issuer Industry Sector Type Value 500 and Nasdaq Composite remained relatively flat over the 12- Pending TriMas Corp. Machinery Secondary $39 month period, while the S&P Global Industrials Sector Index was Pending BioAmber, Inc. Materials IPO $150 down approximately 10%. However, each index increased over 7% during the recently completed 4th quarter. Pending Global Brass and Copper Holdings, Inc. Machinery IPO $150 Pending Edgen Groupm, Inc. Machinery IPO $100  As illustrated in the table on the right, the equity markets displayed overall strength and investor demand across the Industrials 12/21/11 Sealed Air Corp. Materials Secondary $233 industry as several equity offerings were successfully completed in 11/30/11 Douglas Dynamics, Inc. Machinery Secondary $29 Q4 2011 along with additional offerings announced. 11/11/11 Ener1, Inc. Electrical Equipment Secondary $22  The Electrical Equipment sector was the industry’s strongest 11/03/11 Rentech Nitrogen Partners, LP Materials IPO $300 performer in terms of valuation during Q4, trading at 10.0x LTM 10/25/11 ADA-ES, Inc. Materials Secondary $31 EBITDA. The Machinery and Industrial Conglomerates sectors followed at 8.7x and 7.7x, respectively. 10/07/11 Golden Minerals Co. Materials Secondary $31 Public Market Performance (LTM) Public Company Market Performance by Sector 120% Median Change in Stock Price Enterprise Value / LTM 110% Industry Sector 3 Months 12 months Revenue EBITDA 0.0% Construction 23.1% (16.6%) 0.6x 7.0x 100% 2.2% Electrical Equipment 25.3% 3.0% 1.8x 10.0x 90% Machinery 22.5% (6.3%) 1.3x 8.7x 10.2% Industrial Services 7.4% (16.2%) 1.9x 7.5x 80% Transportation 18.2% (0.8%) 1.1x 7.4x 70% Industrial Conglomerates 18.2% (6.8%) 1.6x 7.7x Materials 9.5% (14.7%) 1.3x 7.3x 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 S&P Global Industrials Sector Index Nasdaq Source: Capital IQ HYDE PARK CAPITAL 2 Investment Banking | Mergers & Acquisitions | Capital Raising
Annual Middle Market M&A Activity – Industrials Commentary Middle Market Purchase Multiples  As detailed in the charts below, overall U.S. middle market M&A activity, or deal volume, in the Industrials industry was at a three year high in 2011 with over 370 transactions closed, up approximately 5% from the prior year and 85% from 2009. Enterprise Value / Revenue Enterprise Value / EBITDA  In addition, the total value of completed M&A transactions in the Industrials industry in 2011 climbed nearly 21% to $44.3 billion, up from $36.8 billion during the prior year.  Middle market purchases multiples, defined as Enterprise Value divided by Revenue and Enterprise Value divided by EBITDA, were in line with pre-recession levels, with an average of 1.6x and 10.8x, respectively, for 2011 completed middle market transactions across the Industrials industry. U.S. Middle Market M&A Activity – Annual Trends: VOLUME U.S. Middle Market M&A Activity – Annual Trends: VALUE Total Transaction Value ($ in billions) Total Transaction Volume Less than $100M $100 - $499M $500 - $1,000M Less than $100M $100 - $499M $500 - $1,000M Source: Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion) HYDE PARK CAPITAL 3 Investment Banking | Mergers & Acquisitions | Capital Raising
Quarterly Middle Market M&A Activity – Industrials Commentary Middle Market M&A Transactions by Deal Size  Overall, during the 4th quarter Industrials M&A transaction volume ($ in billions) and value declined across most segments of the middle market (deals valued at less than $1 billion). Q4 2010 Q4 2011 % Change Deal Size Volume Value Volume Value Volume Value  The number of complete Industrial deals declined 32% in Q4 2011 Less than $100M 88 $2.9 54 $1.9 (39%) (33%) to 82, down from 120 in Q4 2010, while total deal value decreased $100 - $499M 25 $5.8 21 $4.5 (16%) (22%) approximately 14% over the same period to $11.8 billion. $500 - $1,000M 7 $5.1 7 $5.4 0% 4% Total Middle Market 120 $13.8 82 $11.8 (32%) (14%)  Transactions valued at less than $500 million represented slightly % of Total Market more than 90% of the total deal volume in Q4 2010, a small decrease Less than $100M 73% 21% 66% 16.0% from the prior year period, and accounted for approximately 55% of $100 - $499M 21% 42% 26% 39.0% the total deal value during the quarter. $500 - $1,000M 6% 37% 9% 45.0% Total Middle Market 100% 100% 100% 100% U.S. Middle Market M&A Activity – Quarterly Trends: VOLUME U.S. Middle Market M&A Activity – Quarterly Trends: VALUE Total Transaction Value ($ in billions) Total Transaction Volume Less than $100M $100 - $499M $500 - $1,000M Less than $100M $100 - $499M $500 - $1,000M Source: Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion) HYDE PARK CAPITAL 4 Investment Banking | Mergers & Acquisitions | Capital Raising
Recent M&A Activity – Industrials Select Announced M&A Transactions (Q4 2011) ($ in millions) Enterprise EV / EV / Announced Date Target Industry Sector Buyer Value ($mm) Revenue EBITDA 12/30/2011 Heil Trailer International, Inc. Macinery American Industrial Partners $220.0 NA NA 12/29/2011 Uniboard USA, LLC Materials Arauco Panels USA, LLC $56.0 NA NA 12/29/2011 E. W. Wylie Corp. Transportation Smokey Point Distributing, Inc. $25.0 NA NA 12/29/2011 Industrial Contractors Skanska Construction Skanska USA Civil, Inc. $135.0 NA NA 12/23/2011 Davis-Standard, LLC Machinery ONCAP $200.0 NA NA 12/23/2011 Baldwin Technology Co., Inc. Machinery Forsyth Capital Investors $25.4 0.2x NM 12/21/2011 Temp-Flex Cable, Inc. Electrical Equipment Molex, Inc. $24.0 NA NA 12/21/2011 EcoServices, LLC Transportation VT Systems, Inc. $66.5 NA NA 12/21/2011 WCA Waste Corp. Industrial Services Macquarie Infrastructure Partners $527.9 2.0x 9.1x 12/20/2011 Overland Products Co., Inc. Materials Lupus Capital plc $15.0 1.5x NA 12/20/2011 Western Pneumatic Tube Co. Materials Leggett & Platt, Inc. $188.0 NA NA 12/14/2011 Mining Claims and Rights Near Livengood Project Materials Tower Hill Mines, Inc. $24.5 NA NA 12/13/2011 J. Royal Co., Inc. Machinery Diploma PLC $18.7 1.2x NA 12/13/2011 Micro Power Electronics, Inc. Electrical Equipment Electrochem Solutions, Inc. $69.9 NA NA 12/07/2011 Wausau Paper Mills, LLC, Premium Print & Color Brands Materials Neenah Paper, Inc. $21.0 NA NA 12/07/2011 Synchrony, Inc. Electrical Equipment Dresser-Rand Group, Inc. $60.0 NA NA 12/05/2011 Acxiom Information Security Services, Inc. Industrial Services Sterling Infosystems, Inc. $74.0 1.5x NA 12/01/2011 Harvel Plastics, Inc. Construction Georg Fischer Piping Systems, Ltd. $50.0 0.8x NA 12/01/2011 Energy Products of Idaho, Inc. Machinery Outotec Oyj $91.6 NA NA 12/01/2011 The Coleman Co., Inc., Propane Cylinder Business Machinery Worthington Industries, Inc. $23.4 NA NA 11/30/2011 Ample Industries, Inc Material Huhtamaki Americas, Inc. $30.9 0.5x NA 11/24/2011 Northern Engraving Corp. Industrial Services Ningbo Lawrence Automobile Interior Co., Ltd $91.6 0.9x NA 11/18/2011 Richco, Inc. Materials Filtrona plc $110.0 1.5x 9.2x 11/18/2011 Niagara LaSalle Corp. Materials The Optima Group, LLC $221.0 NA NA 11/17/2011 Doosan Infracore International, Inc. Machinery Doosan Infracore Co., Ltd. $1,474.1 NA NA 11/17/2011 Valpey Fisher Corp. Electrical Equipment CTS Corp. $15.9 1.1x 11.8x 11/15/2011 Stagecoach Group plc, School Bus Operations Transportation Student Transportation, Inc. $47.0 NA NA 11/15/2011 Radiant's Mexico Gateway Transportation Radiant Global Logistics, Inc. $15.0 0.6x NA 11/18/2011 Pacific High Reach and Equipment Services, Inc. Machinery Sunbelt Rentals, Inc. $17.4 NA NA 11/15/2011 Hussey Copper, Ltd. Materials Patriarch Partners, LLC $107.8 NA NA 11/11/2011 I.E. Miller Services, Inc. Transportation TransForce, Inc. $110.0 0.8x NA 11/14/2011 Waco Equipment Co. Machinery Safway Services, LLC $12.9 0.4x NA 11/10/2011 Tube Supply, Inc. Industrial Services AM Castle & Co. $165.0 0.8x NA 11/07/2011 Force Protection, Inc. Machinery General Dynamics Land Systems, Inc. $238.1 0.4x 11.9x 11/03/2011 Environmental Air Systems, Inc. Construction Comfort Systems USA, Inc. $50.0 0.7x NA 11/01/2011 Scomi OilTools, Inc., Drilling Waste Management Business Industrial Services National Oilwell Varco, LP $25.0 NA NA Source: Capital IQ HYDE PARK CAPITAL 5 Investment Banking | Mergers & Acquisitions | Capital Raising
Recent M&A Activity – Industrials Select Announced M&A Transactions (Q4 2011) ($ in millions) Enterprise EV / EV / Announced Date Target Industry Sector Buyer Value ($mm) Revenue EBITDA 11/01/2011 GEL Industries, Inc. Materials SIFCO Industries, Inc. $20.8 1.3x 6.9x 10/28/2011 Unifrax Holding Co. Construction American Securities $1,000.0 NA 11.1x 10/28/2011 Global Albany Door Systems Business Construction Assa Abloy AB $130.0 NA NA 10/26/2011 Clearwater Paper Corp., Lewiston Sawmill Materials Idaho Forest Group, LLC $30.0 NA NA 10/27/2011 GMI Group Materials Rock-Tenn Co. $86.0 0.9x NA 10/20/2011 BEF Foods, Inc., Springfield Distribution Center Industrial Services Millard Refrigerated Services, Inc. $13.0 NA NA 10/19/2011 I-595 Express, LLC Transportation TIAA-CREF Trust Company, FSB $811.6 NA NA 10/18/2011 Cardno TEC Industrial Services Cardno, Ltd. $50.0 NA NA 10/28/2011 Lyman Lumber Co. Construction BlackEagle Partners $23.8 0.2x NA 10/12/2011 Phoenix Distribution Centers Industrial Services BC5 44, LLC $13.3 NA NA 10/11/2011 South Bend Controls, Inc. Machinery Curtiss-Wright Controls, Inc. $10.0 1.3x NA 10/11/2011 Thompson Industries, Inc. Materials Stella-Jones, Inc. $39.0 NA NA 10/10/2011 Tegrant Corp. Materials Sonoco Products Co. $550.0 NA NA 10/28/2011 Draths Corp. Materials Amyris, Inc. $10.4 NA NA 10/07/2011 CenterPoint II Building Industrial Services Duke Realty Corp. $12.9 NA NA 10/07/2011 Southwall Technologies, Inc. Materials Solutia, Inc. $87.0 1.7x 10.7x 10/04/2011 Lawrence Pumps, Inc. Machinery Flowserve Corp. $89.0 2.0x 11.1x 10/04/2011 Airlanco, Inc. Machinery Ag Growth International, Inc. $11.0 1.0x 5.0x 10/03/2011 Magnum Products, LLC Machinery Generac Power Systems, Inc. $80.0 0.7x 5.7x 10/03/2011 G.W. SMITH & SONS, Inc. Materials Quaker Chemical Corp. $13.3 1.0x NA 12/23/2011 Vintage Tech Recyclers, Inc. Industrial Services Kuusakoski Group, Oy $0.0 NA NA 10/03/2011 Hexacomb Corp. Materials Boise Paper Holdings, LLC $125.0 1.1x 9.5x 10/03/2011 RBF Consulting, Inc. Construction Michael Baker Corp. $52.7 0.5x NM 10/03/2011 ColorMatrix Corp. Materials PolyOne Corp. $486.0 2.6x NA 10/03/2011 The GSI Group, Inc. Construction AGCO Corp. $928.0 1.3x NA 10/03/2011 WINSLOW LifeRaft Co. Transportation Goodrich Corp. $49.5 NA NA Average $157.5 1.1x 9.0x Median $50.0 1.1x 9.4x Source: Capital IQ HYDE PARK CAPITAL 6 Investment Banking | Mergers & Acquisitions | Capital Raising
M&A Activity by Industrial Sector U.S. Middle Market M&A Activity by Industrial Sector: VOLUME % Change 20% 5% 11% 18% 79% 4% 2010 2011 U.S. Middle Market M&A Activity by Industrial Sector: VALUE % Change ($ in millions) 6% 54% 1% 16% 94% 29% 2010 2011 Source: Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion); Note: Industrial conglomerates had no transactions with disclosed values in this range during the period. HYDE PARK CAPITAL 7 Investment Banking | Mergers & Acquisitions | Capital Raising
Private Equity Activity – Industrials Commentary Select Private Equity Transactions – Industrials (Q4 2011) ($ in millions)  With financing markets cooperating, financial sponsors remained Announced Date Target Buyer Industry Transaction Value 12/31/11 Interface Solutions, Inc. Wind Point Partners Machinery NA active investors across all sectors of the Industrials industry in Q4 12/30/11 Heil Trailer International, Inc. American Industrial Partners Machinery $220 2011, as shown in the table on the right. 12/23/11 Baldwin Technology Co., Inc. Forsyth Capital Investors Machinery $39  Several notable private equity backed transactions were 12/23/11 Davis-Standard, LLC ONCAP Machinery $200 announced during the 4th quarter including American Securities 11/16/11 Selmet, Inc. Blue Point Capital Partners Materials NA buyout of Unifrax Holding Co., a manufacturer of ceramic fiber 11/15/11 Hussey Copper, Ltd. Patriarch Partners Materials $108 insulation products, for $1 billion; and American Industrial 11/09/11 Trantech Radiator Products, Inc. Industrial Opportunity Partners Electrical Equipment NA Partners acquisition of Heil Trailer International, Inc. for $220 11/02/11 Ideal Clamp Products, Inc. Industrial Growth Partners Machinery NA million. 11/01/11 Quadra, Inc. Blue Point Capital Partners Materials NA 11/01/11 Arrowhead Electrical Products, Inc. Pfingsten Partners Electrical Equipment NA  During 2011 financial sponsors participated in approximately 1 of 11/01/11 Cargo Services, Inc. ICV Capital Partners Transportation NA 4 completed deals. In addition, a number of sizable new private 10/28/11 Lyman Lumber Co. BlackEagle Partners Construction $24 equity funds were raised and closed during 2011, including several by established firms with a focus on investing in the 10/28/11 Unifrax Holding Co. American Securities Construction $1,000 Industrials industry. 10/11/11 Nesco, LLC Platinum Equity Transportation NA Financial Sponsors vs. Strategic Buyers Raised Private Equity Funds Investing in Industrials (2011) ($ in millions) Amount Sponsor Fund Name Raised in 2011 450 $50 Berkshire Partners Berkshire Fund VIII $4,500 $45 $44.3 400 372 The Gores Group Gores Capital Partners III $375 Total Transaction Value ($ in billions) 353 $40 Snow Phipps Group Show Phipps II $536 350 $36.8 Total Transaction Volume $35 American Industrial Partners American Industrial Partners Capital Fund V $700 300 Endeavour Capital Endeavour Capital Fund VI $675 $30 250 74% Cortec Group Cortec Group Fund V $620 78% 74% $25 77% 200 Industrial Growth Partners Industrial Growth Partners IV $600 $20 J.F. Lehman & Co. JFL Equity Investors $576 150 $15 H.I.G. Capital H.I.G. Growth Buyouts & Equity Fund II $500 100 SK Capital Partners SK Capital Partners III $500 $10 Arlington Capital Arlington Capital Partners III $116 50 22% 26% $5 23% 26% Altus Capital Partners Altus Capital Partners II $200 0 $0 Plexus Capital Plexus Fund II $134 2010 2011 2010 2011 Hudson Ferry Capital Hudson Ferry Capital II $155 Financial Sponsor Strategic Buyer Financial Sponsor Strategic Buyer Inverness Graham Investments Inverness Graham Investments II $120 Source: Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion) Carousel Capital Partners Carousel Capital Partners IV $107 HYDE PARK CAPITAL 8 Investment Banking | Mergers & Acquisitions | Capital Raising
Industry Sector Overview – Recent Stock Price Performance Commentary Construction  The charts included on the following pages detail the recent stock 140% price performance by sector for the leading public companies 130% within the Industrials industry for the 12-month period ended December 31, 2011. The shaded section is the most recent 3- 120% month period (Q4) for each sector and relative to the S&P 500. 110%  During Q4 all of the sector indices of the Industrials industry 100% 0.0% increased. The Construction, Electrical Equipment and Machinery sectors delivered the strongest gains for the 3-month period 90% 16.6% ending December 31st, 2011, all finishing up more than 20%. 80% However, for the 12-month period all of the Industrials indices, except Electrical Equipment, declined. 70% 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 Construction Electrical Equipment Machinery 140% 140% 130% 130% 120% 120% 110% 110% 3.0% 0.0% 100% 100% 0.0% 90% 90% 6.3% 80% 80% 70% 70% 60% 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 Electrical Equipment S&P 500 Machinary Source: Capital IQ HYDE PARK CAPITAL 9 Investment Banking | Mergers & Acquisitions | Capital Raising
Industry Sector Overview – Recent Stock Price Performance Industrial Services Transportation 140% 140% 130% 130% 120% 120% 110% 110% 0.0% 100% 0.0% 100% 0.8% 90% 90% 16.2% 80% 80% 70% 70% 60% 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 Industrial Services S&P 500 Transportation Industrial Conglomerates Materials 140% 140% 130% 130% 120% 120% 110% 110% 100% 0.0% 100% 0.0% 90% 90% 6.8% 14.7% 80% 80% 70% 70% 60% 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 Industrial Conglomerates S&P 500 Materials Source: Capital IQ HYDE PARK CAPITAL 10 Investment Banking | Mergers & Acquisitions | Capital Raising
Industry Sector Overview – Public Company Analysis Construction ($ in millions, except per share) Building Products Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Masco Corp. MAS $10.48 70% $3,647 $6,067 $7,535 $1,760 $395 23.4% 5.2% 0.8x NM Owens Corning OC $28.72 74% $3,521 $5,527 $5,307 $1,000 $732 18.8% 13.8% 1.0x 7.6x Armstrong World Industries, Inc. AWI $43.87 90% $2,580 $3,060 $2,850 $706 $347 24.8% 12.2% 1.1x 8.8x USG Corp. USG $10.16 51% $1,070 $2,858 $2,970 $186 $45 6.3% 1.5% 1.0x NM Fortune Brands Home & Security, Inc. FBHS $17.03 100% $2,641 $2,597 $3,296 $1,037 $266 31.5% 8.1% 0.8x 9.8x Lennox International, Inc. LII $33.75 62% $1,745 $2,165 $3,304 $834 $229 25.2% 6.9% 0.7x 9.5x AO Smith Corp. AOS $40.12 90% $1,864 $1,700 $1,711 $513 $187 30.0% 10.9% 1.0x 9.1x Simpson Manufacturing Co., Inc. SSD $33.66 96% $1,623 $1,409 $603 $271 $96 44.9% 15.8% 2.3x 14.8x Average 79% $2,336 $3,173 $3,447 $788 $287 25.6% 9.3% 1.1x 9.9x Median 82% $2,222 $2,727 $3,133 $770 $248 25.0% 9.5% 1.0x 9.3x Construction and Engineering Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Fluor Corp. FLR $50.25 66% $8,702 $6,774 $22,396 $938 $979 4.2% 4.4% 0.3x 6.9x Jacobs Engineering Group, Inc. JEC $40.58 73% $5,198 $4,774 $10,657 $1,649 $673 15.5% 6.3% 0.4x 7.1x KBR, Inc. KBR $27.87 71% $4,208 $3,617 $9,361 $671 $524 7.2% 5.6% 0.4x 6.9x AECOM Technology Corp. ACM $20.57 69% $2,357 $3,063 $8,130 $464 $470 5.7% 5.8% 0.4x 6.5x URS Corp. URS $35.12 73% $2,718 $3,053 $9,532 $729 $606 7.6% 6.4% 0.3x 5.0x Shaw Group, Inc. SHAW $26.90 65% $1,950 $1,748 $5,912 $255 $63 4.3% 1.1% 0.3x NM EMCOR Group, Inc. EME $26.81 82% $1,834 $1,511 $5,666 $747 $277 13.2% 4.9% 0.3x 5.5x Tutor Perini Corp. TPC $12.34 46% $589 $1,124 $3,290 $342 $187 10.4% 5.7% 0.3x 6.0x Average 68% $3,445 $3,208 $9,368 $724 $472 8.5% 5.0% 0.3x 6.3x Median 70% $2,538 $3,058 $8,746 $700 $497 7.4% 5.6% 0.3x 6.5x Source: Capital IQ HYDE PARK CAPITAL 11 Investment Banking | Mergers & Acquisitions | Capital Raising
Industry Sector Overview – Public Company Analysis Electrical Equipment ($ in millions, except per share) Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Rockwell Automation, Inc. ROK $73.37 75% $10,558 $10,779 $6,109 $2,465 $1,104 40.4% 18.1% 1.8x 9.8x Cooper Industries, plc CBE $54.15 77% $8,680 $9,431 $5,409 $1,797 $890 33.2% 16.5% 1.7x 10.6x Roper Industries, Inc. ROP $86.87 98% $8,571 $9,318 $2,797 $1,516 $801 54.2% 28.6% 3.3x 11.6x Ametek, Inc. AME $42.10 90% $6,800 $7,889 $2,990 $1,034 $719 34.6% 24.1% 2.6x 11.0x Hubbell, Inc. HUB.B $66.86 92% $3,978 $3,995 $2,872 $924 $492 32.2% 17.1% 1.4x 8.1x Woodward, Inc. WWD $40.93 97% $2,881 $3,247 $1,755 $533 $298 30.4% 17.0% 1.9x 10.9x Thomas & Betts Corp. TNB $54.60 88% $2,863 $2,886 $2,298 $719 $374 31.3% 16.3% 1.3x 7.7x Polypore International, Inc. PPO $43.99 59% $2,077 $2,685 $742 $314 $235 42.3% 31.7% 3.6x 11.4x Generac Holdings, Inc. GNRC $28.03 96% $1,896 $2,397 $686 $260 $160 37.9% 23.3% 3.5x 15.0x Acuity Brands, Inc. AYI $53.00 86% $2,210 $2,391 $1,845 $748 $237 40.5% 12.9% 1.3x 10.1x GrafTech International, Ltd. GTI $13.65 57% $1,995 $2,360 $1,253 $309 $240 24.6% 19.2% 1.9x 9.8x Belden, Inc. BDC $33.28 82% $1,606 $1,808 $1,943 $562 $225 28.9% 11.6% 0.9x 8.0x Brady Corp. BRC $31.57 82% $1,672 $1,691 $1,360 $660 $223 48.5% 16.4% 1.2x 7.6x Coleman Cable, Inc. CCIX $8.70 51% $152 $468 $847 $120 $78 14.2% 9.2% 0.6x 6.0x Average 81% $3,996 $4,382 $2,350 $854 $434 35.2% 18.7% 1.9x 9.8x Median 84% $2,537 $2,786 $1,894 $689 $269 33.9% 17.1% 1.8x 10.0x Source: Capital IQ HYDE PARK CAPITAL 12 Investment Banking | Mergers & Acquisitions | Capital Raising
Industry Sector Overview – Public Company Analysis Machinery ($ in millions, except per share) Construction and Farm Machinery Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Caterpillar, Inc. CAT $90.60 78% $60,331 $93,094 $60,138 $15,734 $9,680 26.2% 16.1% 1.5x 9.6x Deere & Co. DE $77.35 78% $32,062 $55,029 $32,013 $9,334 $5,246 29.2% 16.4% 1.7x 10.5x PACCAR, Inc. PCAR $37.47 64% $13,455 $18,516 $16,355 $2,221 $2,153 13.6% 13.2% 1.1x 8.6x Cummins, Inc. CMI $88.02 72% $16,856 $15,781 $18,048 $4,589 $2,429 25.4% 13.5% 0.9x 6.5x Joy Global, Inc. JOY $74.97 72% $8,001 $9,105 $4,404 $1,506 $1,019 34.2% 23.1% 2.1x 8.9x AGCO Corp. AGCO $42.97 72% $4,164 $4,244 $8,423 $1,661 $735 19.7% 8.7% 0.5x 5.8x Manitowoc Co., Inc. MTW $9.19 40% $1,220 $3,039 $3,652 $838 $347 22.9% 9.5% 0.8x 8.7x Oshkosh Corp. OSK $21.38 53% $1,958 $2,538 $7,763 $989 $542 12.7% 7.0% 0.3x 4.7x Toro Co. TTC $60.66 89% $1,883 $2,029 $1,884 $637 $233 33.8% 12.4% 1.1x 8.7x Average 69% $15,548 $22,597 $16,964 $4,168 $2,487 24.2% 13.3% 1.1x 8.0x Median 72% $8,001 $9,105 $8,423 $1,661 $1,019 25.4% 13.2% 1.1x 8.7x Industrial Machinery Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Illinois Tool Works, Inc. ITW $46.71 79% $22,684 $25,497 $17,787 $6,269 $3,320 35.2% 18.7% 1.4x 7.7x Eaton Corp. ETN $43.53 77% $14,717 $17,406 $16,049 $4,788 $2,192 29.8% 13.7% 1.1x 7.9x Stanley Black & Decker, Inc. SWK $67.60 86% $11,289 $13,834 $10,376 $3,830 $1,561 36.9% 15.0% 1.3x 8.9x Parker Hannifin Corp. PH $76.25 77% $11,797 $13,047 $12,991 $3,156 $1,947 24.3% 15.0% 1.0x 6.7x Dover Corp. DOV $58.05 83% $10,867 $11,848 $7,950 $3,051 $1,514 38.4% 19.0% 1.5x 7.8x Pall Corp. PLL $57.15 96% $6,699 $6,864 $2,841 $1,420 $609 50.0% 21.4% 2.4x 11.3x Flowserve Corp. FLS $99.32 73% $5,578 $5,860 $4,385 $1,493 $700 34.0% 16.0% 1.3x 8.4x Donaldson Co., Inc. DCI $68.08 96% $5,210 $5,252 $2,365 $841 $392 35.5% 16.6% 2.2x 13.4x Timken Co. TKR $38.71 67% $3,808 $3,858 $5,170 $1,370 $936 26.5% 18.1% 0.7x 4.1x Average 82% $10,294 $11,496 $8,879 $2,913 $1,463 34.5% 17.0% 1.5x 8.5x Median 79% $10,867 $11,848 $7,950 $3,051 $1,514 35.2% 16.6% 1.3x 7.9x Source: Capital IQ HYDE PARK CAPITAL 13 Investment Banking | Mergers & Acquisitions | Capital Raising
Industry Sector Overview – Public Company Analysis Machinery ($ in millions, except per share) Trading Companies and Distributors Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA W.W. Grainger, Inc. GWW $187.19 97% $13,363 $13,544 $8,078 $3,511 $1,202 43.5% 14.9% 1.7x 11.3x Fastenal Co. FAST $43.61 98% $12,920 $12,775 $2,767 $1,434 $620 51.8% 22.4% 4.6x 20.6x GATX Corp. GMT $43.66 97% $2,074 $5,373 $1,241 $681 $560 54.8% 45.2% 4.3x 9.6x United Rentals, Inc. URI $29.55 85% $2,169 $5,175 $2,611 $898 $487 34.4% 18.7% 2.0x 10.6x MSC Industrial Direct Co., Inc. MSM $71.55 90% $4,481 $4,357 $2,095 $975 $399 46.6% 19.1% 2.1x 10.9x RSC Holdings, Inc. RRR $18.50 98% $1,949 $4,266 $1,522 $432 $249 28.4% 16.4% 2.8x 17.1x WESCO International, Inc. WCC $53.01 82% $2,597 $3,183 $6,126 $1,237 $365 20.2% 6.0% 0.5x 8.7x Watsco, Inc. WSO $65.66 89% $2,020 $2,114 $2,989 $722 $201 24.1% 6.7% 0.7x 10.5x EnerSys ENS $25.97 64% $1,293 $1,494 $2,173 $479 $243 22.0% 11.2% 0.7x 6.2x Applied Industrial Technologies, Inc. AIT $35.17 96% $1,499 $1,429 $2,306 $640 $187 27.8% 8.1% 0.6x 7.7x Titan Machinery, Inc. TITN $21.73 68% $458 $998 $1,420 $239 $80 16.8% 5.6% 0.7x 12.5x Average 88% $4,075 $4,973 $3,030 $1,022 $417 33.7% 15.8% 1.9x 11.4x Median 90% $2,074 $4,266 $2,306 $722 $365 28.4% 14.9% 1.7x 10.6x Source: Capital IQ HYDE PARK CAPITAL 14 Investment Banking | Mergers & Acquisitions | Capital Raising
Industry Sector Overview – Public Company Analysis Industrial Services ($ in millions, except per share) Environmental and Facilities Services Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Southern Copper Corp. SCCO $30.18 60% $25,465 $26,437 $6,648 $4,040 $3,916 60.8% 58.9% 4.0x 6.8x Waste Management, Inc. WM $32.71 82% $15,364 $24,763 $13,159 $4,822 $3,295 36.6% 25.0% 1.9x 7.5x Republic Services, Inc. RSG $27.55 83% $10,323 $17,276 $8,189 $3,346 $2,482 40.9% 30.3% 2.1x 7.0x Stericycle, Inc. SRCL $77.92 81% $6,751 $8,112 $1,676 $802 $510 47.8% 30.4% 4.8x 15.9x Waste Connections, Inc. WCN $33.14 92% $3,751 $4,916 $1,462 $633 $474 43.3% 32.5% 3.4x 10.4x Covanta Holding Corp. CVA $13.69 77% $1,917 $3,960 $1,638 $673 $421 41.1% 25.7% 2.4x 9.4x Clean Harbors, Inc. CLH $63.73 99% $3,401 $3,685 $1,855 $558 $315 30.1% 17.0% 2.0x 11.7x Rollins, Inc. ROL $22.22 94% $3,251 $3,205 $1,205 $588 $199 48.8% 16.5% 2.7x 16.1x Sims Metal Management, Ltd. ASX:SGM $12.65 56% $2,614 $2,741 $9,498 $978 $390 10.3% 4.1% 0.3x 7.0x Titanium Metals Corp. TIE $14.98 72% $2,650 $2,554 $1,004 $217 $204 21.6% 20.3% 2.5x 12.5x Schnitzer Steel Industries, Inc. SCHN $42.28 61% $1,172 $1,640 $3,596 $384 $247 10.7% 6.9% 0.5x 6.7x Tetra Tech, Inc. TTEK $21.59 84% $1,362 $1,419 $1,879 $332 $204 17.7% 10.9% 0.8x 6.9x Casella Waste Systems, Inc. CWST $6.40 77% $171 $632 $478 $149 $84 31.2% 17.6% 1.3x 7.5x Average 78% $6,015 $7,795 $4,022 $1,348 $980 33.9% 22.8% 2.2x 9.6x Median 81% $3,251 $3,685 $1,855 $633 $390 36.6% 20.3% 2.1x 7.5x Diversified Support Services Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Iron Mountain, Inc. IRM $30.80 86% $6,059 $8,898 $3,231 $1,931 $930 59.8% 28.8% 2.8x 9.6x Pitney Bowes, Inc. PBI $18.54 70% $3,749 $7,225 $5,371 $2,708 $1,086 50.4% 20.2% 1.3x 6.7x R.R. Donnelley & Sons Co. RRD $14.43 68% $2,753 $6,324 $10,597 $2,520 $1,252 23.8% 11.8% 0.6x 5.1x Cintas Corp. CTAS $34.81 99% $4,516 $5,464 $3,986 $1,694 $652 42.5% 16.4% 1.4x 8.4x Avery Dennison Corp. AVY $28.68 66% $3,063 $4,066 $6,026 $1,521 $597 25.2% 9.9% 0.7x 6.8x KAR Auction Services, Inc. KAR $13.50 64% $1,864 $4,041 $1,842 $828 $450 44.9% 24.4% 2.2x 9.0x Copart, Inc. CPRT $47.89 100% $3,204 $3,493 $885 $400 $318 45.2% 35.9% 3.9x 11.0x Corrections Corp. of America CXW $20.37 77% $2,139 $3,301 $1,728 $535 $446 30.9% 25.8% 1.9x 7.4x Ritchie Bros. Auctioneers, Inc. RBA $22.08 70% $2,360 $2,343 $371 $324 $127 87.4% 34.3% 6.3x 18.4x United Stationers, Inc. USTR $32.56 87% $1,439 $1,933 $4,991 $756 $259 15.1% 5.2% 0.4x 7.5x Brinks Co. BCO $26.88 78% $1,296 $1,497 $3,886 $711 $334 18.3% 8.6% 0.4x 4.5x Herman Miller, Inc. MLHR $18.45 64% $1,077 $1,137 $1,760 $585 $184 33.2% 10.4% 0.6x 6.2x Average 77% $2,793 $4,143 $3,723 $1,209 $553 39.7% 19.3% 1.9x 8.4x Median 74% $2,557 $3,767 $3,558 $792 $448 37.9% 18.3% 1.4x 7.4x Source: Capital IQ HYDE PARK CAPITAL 15 Investment Banking | Mergers & Acquisitions | Capital Raising
Industry Sector Overview – Public Company Analysis Transportation ($ in millions, except per share) Air Freight and Logistics Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA United Parcel Service, Inc. UPS $73.19 95% $71,507 $78,474 $53,105 $25,530 $7,855 48.1% 14.8% 1.5x 10.0x FedEx Corp. FDX $83.51 85% $26,389 $26,172 $41,323 $10,295 $4,891 24.9% 11.8% 0.6x 5.4x CH Robinson Worldwide, Inc. CHRW $69.78 84% $11,432 $11,058 $10,336 $936 $725 9.1% 7.0% 1.1x 15.2x Expeditors International of Washington, Inc. EXPD $40.96 73% $8,795 $7,534 $6,231 $806 $650 12.9% 10.4% 1.2x 11.6x Hub Group, Inc. HUBG $32.43 79% $1,203 $1,180 $2,752 $313 $111 11.4% 4.0% 0.4x 10.6x Atlas Air Worldwide Holdings, Inc. AAWW $38.43 53% $1,017 $1,115 $1,370 $331 $195 24.1% 14.3% 0.8x 5.7x Forward Air Corp. FWRD $32.05 88% $947 $911 $521 $140 $92 26.9% 17.7% 1.7x 9.8x Average 80% $17,327 $18,063 $16,520 $5,479 $2,074 22.5% 11.4% 1.1x 9.8x Median 84% $8,795 $7,534 $6,231 $806 $650 24.1% 11.8% 1.1x 10.0x Road and Rail Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Union Pacific Corp. UNP $105.94 98% $51,349 $59,038 $19,557 $8,123 $7,341 41.5% 37.5% 3.0x 8.0x Norfolk Southern Corp. NSC $72.86 93% $24,670 $31,909 $11,172 $4,075 $4,082 36.5% 36.5% 2.9x 7.8x CSX Corp. CSX $21.06 78% $22,618 $30,553 $11,743 $4,394 $4,394 37.4% 37.4% 2.6x 7.0x Kansas City Southern KSU $68.01 96% $7,475 $8,971 $2,098 $772 $771 36.8% 36.8% 4.3x 11.6x JB Hunt Transport Services, Inc. JBHT $45.07 92% $5,380 $6,123 $4,527 $760 $655 16.8% 14.5% 1.4x 9.3x Ryder System, Inc. R $53.14 88% $2,694 $5,972 $6,051 $2,721 $1,242 45.0% 20.5% 1.0x 4.8x Genesee & Wyoming, Inc. GWR $60.58 95% $2,594 $3,184 $788 $322 $230 40.9% 29.2% 4.0x 13.8x AMERCO UHAL $88.40 85% $1,721 $2,818 $2,364 $819 $595 34.7% 25.2% 1.2x 4.7x Old Dominion Freight Line, Inc. ODFL $40.53 97% $2,328 $2,521 $1,883 $476 $323 25.3% 17.1% 1.3x 7.8x Con-way, Inc. CNW $29.16 69% $1,638 $2,408 $5,290 $208 $409 3.9% 7.7% 0.5x 5.9x Landstar System, Inc. LSTR $47.92 96% $2,249 $2,299 $2,651 $601 $209 22.7% 7.9% 0.9x 11.0x Werner Enterprises, Inc. WERN $24.10 89% $1,766 $1,754 $2,003 $481 $333 24.0% 16.6% 0.9x 5.3x Average 90% $10,540 $13,129 $5,844 $1,979 $1,715 30.5% 23.9% 2.0x 8.1x Median 92% $2,644 $4,578 $3,589 $766 $625 35.6% 22.9% 1.3x 7.8x Source: Capital IQ HYDE PARK CAPITAL 16 Investment Banking | Mergers & Acquisitions | Capital Raising
Industry Sector Overview – Public Company Analysis Transportation ($ in millions, except per share) Airlines Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Delta Air Lines, Inc. DAL $8.09 61% $6,836 $18,184 $35,115 $7,050 $3,738 20.1% 10.6% 0.5x 4.9x United Continental Holdings, Inc. UAL $18.87 65% $6,227 $11,027 $37,003 $9,892 $3,850 26.7% 10.4% 0.3x 2.9x Southwest Airlines Co. LUV $8.56 63% $6,702 $7,309 $15,658 $3,421 $1,542 21.8% 9.8% 0.5x 4.7x JetBlue Airways Corp. JBLU $5.20 73% $1,783 $3,630 $4,504 $1,286 $563 28.6% 12.5% 0.8x 6.4x US Airways Group, Inc. LCC $5.07 44% $828 $3,447 $13,055 $2,376 $687 18.2% 5.3% 0.3x 5.0x Alaska Air Group, Inc. ALK $75.09 97% $2,727 $2,685 $4,318 $1,145 $733 26.5% 17.0% 0.6x 3.7x Westjet Airlines, Ltd. WJA $11.76 75% $1,639 $1,213 $2,873 $897 $432 31.2% 15.0% 0.4x 2.8x Allegiant Travel Co. ALGT $53.34 96% $1,025 $890 $779 $180 $126 23.0% 16.2% 1.1x 7.0x Spirit Airlines, Inc. SAVE $15.60 89% $1,130 $779 $1,013 $273 $136 27.0% 13.4% 0.8x 5.7x Average 74% $3,211 $5,463 $12,702 $2,947 $1,312 24.8% 12.3% 0.6x 4.8x Median 73% $1,783 $3,447 $4,504 $1,286 $687 26.5% 12.5% 0.5x 4.9x Marine Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Kirby Corp. KEX $65.84 99% $3,651 $4,451 $1,850 $622 $433 33.6% 23.4% 2.4x 10.3x Alexander & Baldwin, Inc. ALEX $40.82 74% $1,719 $2,272 $1,732 $264 $218 15.2% 12.6% 1.3x 10.4x International Shipholding Corp. ISH $18.69 69% $135 $422 $263 $71 $51 27.0% 19.4% 1.6x 8.3x Rand Logistics, Inc. RLOG $6.51 79% $115 $219 $133 $33 $22 24.8% 16.8% 1.6x 9.8x Average 80% $1,405 $1,841 $995 $247 $181 25.2% 18.0% 1.7x 9.7x Median 76% $927 $1,347 $998 $167 $134 25.9% 18.1% 1.6x 10.1x Source: Capital IQ HYDE PARK CAPITAL 17 Investment Banking | Mergers & Acquisitions | Capital Raising
Industry Sector Overview – Public Company Analysis Industrial Conglomerates ($ in millions, except per share) Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA General Electric Co.* GE $17.91 83% $189,685 $189,688 $106,737 $19,078 $22,809 17.9% 21.4% 1.8x 8.3x Siemens AG SIE $73.83 57% $65,262 $71,547 $95,893 $28,010 $12,422 29.2% 13.0% 0.7x 5.8x United Technologies Corp. UTX $73.09 80% $65,708 $70,008 $58,190 $16,037 $9,446 27.6% 16.2% 1.2x 7.4x 3M Co. MMM $81.73 83% $57,824 $59,310 $29,611 $13,918 $7,403 47.0% 25.0% 2.0x 8.0x Danaher Corp. DHR $47.04 84% $33,466 $38,234 $16,091 $8,177 $3,185 50.8% 19.8% 2.4x 12.0x Tyco International, Ltd. TYC $46.71 88% $21,907 $25,068 $17,184 $6,649 $3,397 38.7% 19.8% 1.5x 7.4x Average 79% $72,309 $75,643 $53,951 $15,312 $9,777 35.2% 19.2% 1.6x 8.1x Median 83% $61,543 $64,659 $43,901 $14,978 $8,425 34.0% 19.8% 1.6x 7.7x Source: Capital IQ * Note: General Electric Co. enterprise value and LTM financials excludes GE Capital HYDE PARK CAPITAL 18 Investment Banking | Mergers & Acquisitions | Capital Raising
Industry Sector Overview – Public Company Analysis Materials ($ in millions, except per share) Chemicals Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA E.I. du Pont de Nemours and Co. DD $45.78 80% $42,837 $51,371 $38,833 $11,468 $6,952 29.5% 17.9% 1.3x 7.4x The Dow Chemical Co. DOW $28.76 68% $33,341 $49,665 $59,985 $8,956 $6,791 14.9% 11.3% 0.8x 7.3x Potash Corp. of Saskatchewan, Inc. POT $41.28 65% $36,149 $40,256 $8,219 $4,286 $4,398 52.1% 53.5% 4.9x 9.2x Praxair, Inc. PX $106.90 96% $32,466 $38,938 $11,252 $4,794 $3,472 42.6% 30.9% 3.5x 11.2x Monsanto Co. MON $70.07 89% $37,936 $36,839 $12,425 $6,353 $3,292 51.1% 26.5% 3.0x 11.2x Air Products & Chemicals, Inc. APD $85.19 87% $18,222 $22,424 $10,113 $2,744 $2,510 27.1% 24.8% 2.2x 8.9x The Sherwin-Williams Co. SHW $89.27 99% $9,305 $10,427 $8,766 $3,745 $962 42.7% 11.0% 1.2x 10.8x Celanese Corp. CE $44.27 75% $7,035 $9,306 $6,763 $1,441 $1,035 21.3% 15.3% 1.4x 9.0x Eastman Chemical Co. EMN $39.06 71% $5,472 $6,293 $7,178 $1,640 $1,286 22.8% 17.9% 0.9x 4.9x W.R. Grace & Co. GRA $45.92 87% $3,476 $3,453 $3,212 $1,159 $564 36.1% 17.5% 1.1x 6.1x Average 82% $22,624 $26,897 $16,675 $4,659 $3,126 34.0% 22.7% 2.0x 8.6x Median 84% $25,344 $29,631 $9,440 $4,015 $2,901 32.8% 17.9% 1.3x 9.0x Metals and Mining Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Barrick Gold Corp. ABX $45.25 81% $45,295 $55,713 $13,457 $8,349 $7,556 62.0% 56.1% 4.1x 7.4x Goldcorp, Inc. GG $44.25 79% $35,946 $35,196 $5,229 $3,300 $2,943 63.1% 56.3% 6.7x 12.0x Freeport-McMoRan Copper & Gold, Inc. FCX $36.79 60% $35,061 $33,776 $20,880 $10,982 $10,162 52.6% 48.7% 1.6x 3.3x Newmont Mining Corp. NEM $60.01 83% $30,245 $32,253 $10,141 $6,335 $5,332 62.5% 52.6% 3.2x 6.0x Southern Copper Corp. SCCO $30.18 60% $25,465 $26,437 $6,648 $4,040 $3,916 60.8% 58.9% 4.0x 6.8x Alcoa, Inc. AA $8.65 47% $9,207 $16,639 $24,951 $4,471 $3,262 17.9% 13.1% 0.7x 5.1x United States Steel Corp. X $26.46 41% $3,812 $7,632 $19,884 $1,541 $819 7.7% 4.1% 0.4x 9.3x Walter Energy, Inc. WLT $60.56 42% $3,801 $6,030 $2,255 $957 $807 42.4% 35.8% 2.7x 7.5x Average 62% $23,604 $26,710 $12,931 $4,997 $4,350 46.1% 40.7% 2.9x 7.2x Median 60% $27,855 $29,345 $11,799 $4,256 $3,589 56.7% 50.6% 2.9x 7.1x Source: Capital IQ HYDE PARK CAPITAL 19 Investment Banking | Mergers & Acquisitions | Capital Raising
Industry Sector Overview – Public Company Analysis Materials ($ in millions, except per share) Paper and Forest Products Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA International Paper Co. IP $29.60 90% $12,914 $20,100 $26,034 $7,074 $3,651 27.2% 14.0% 0.8x 5.5x MeadWestvaco Corp. MWV $29.95 87% $5,124 $6,501 $6,060 $1,394 $975 23.0% 16.1% 1.1x 6.7x Domtar Corp. UFS $79.96 76% $2,991 $3,378 $5,612 $1,441 $1,105 25.7% 19.7% 0.6x 3.1x Resolute Forest Products ABH $14.55 48% $1,413 $1,830 $4,881 $1,221 $511 25.0% 10.5% 0.4x 3.6x Average 75% $5,611 $7,952 $10,647 $2,783 $1,560 25.2% 15.1% 0.7x 4.7x Median 81% $4,057 $4,939 $5,836 $1,418 $1,040 25.3% 15.1% 0.7x 4.5x Source: Capital IQ HYDE PARK CAPITAL 20 Investment Banking | Mergers & Acquisitions | Capital Raising
HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising Recent Transactions John Hill Senior Managing Director hill@hydeparkcapital.com (813) 383-0205 has been acquired by has been recapitalized by has been acquired by has been acquired by has acquired John McDonald Senior Managing Director mcdonald@hydeparkcapital.com ADG Acquisition (813) 383-0206 Harbert Mezzanine Partners Holdings, LLC Keith Hodgdon Senior Vice President hodgdon@hydeparkcapital.com (813) 383-0208 Jeffrey Bridge has been acquired by has been acquired by has been acquired by has been recapitalized by has merged with Vice President bridge@hydeparkcapital.com (813) 383-0204 Michael Mariani Associate mariani@hydeparkcapital.com (813) 597-2649 has been recapitalized by has acquired has been recapitalized by has been acquired by has been acquired by Hyde Park Capital Advisors, LLC Sage Compliance 701 N. Franklin Street Services, Inc. Tampa, FL 33602 Tel: 813-383-0202 www.hydeparkcapital.com HYDE PARK CAPITAL Member FINRA/SIPC Investment Banking | Mergers & Acquisitions | Capital Raising

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Industrials M&A Report

  • 1.
    HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising John Hill Senior Managing Director [email protected] Industrials (813) 383-0205 John McDonald M&A Report Senior Managing Director [email protected] Q4 2011 (813) 383-0206 Keith Hodgdon Senior Vice President [email protected] (813) 383-0208 Jeffrey Bridge Vice President [email protected] (813) 383-0204 Michael Mariani Associate [email protected] (813) 597-2649 Hyde Park Capital Advisors, LLC 701 N. Franklin Street Tampa, FL 33602 Tel: 813-383-0202 www.hydeparkcapital.com Member FINRA/SIPC
  • 2.
    Capital Markets Overview Commentary Select Equity Offerings – Industrials (Q4 2011) ($ in millions) Transaction Transaction  As of December 31, 2011, major market indices including the S&P Offer Date Issuer Industry Sector Type Value 500 and Nasdaq Composite remained relatively flat over the 12- Pending TriMas Corp. Machinery Secondary $39 month period, while the S&P Global Industrials Sector Index was Pending BioAmber, Inc. Materials IPO $150 down approximately 10%. However, each index increased over 7% during the recently completed 4th quarter. Pending Global Brass and Copper Holdings, Inc. Machinery IPO $150 Pending Edgen Groupm, Inc. Machinery IPO $100  As illustrated in the table on the right, the equity markets displayed overall strength and investor demand across the Industrials 12/21/11 Sealed Air Corp. Materials Secondary $233 industry as several equity offerings were successfully completed in 11/30/11 Douglas Dynamics, Inc. Machinery Secondary $29 Q4 2011 along with additional offerings announced. 11/11/11 Ener1, Inc. Electrical Equipment Secondary $22  The Electrical Equipment sector was the industry’s strongest 11/03/11 Rentech Nitrogen Partners, LP Materials IPO $300 performer in terms of valuation during Q4, trading at 10.0x LTM 10/25/11 ADA-ES, Inc. Materials Secondary $31 EBITDA. The Machinery and Industrial Conglomerates sectors followed at 8.7x and 7.7x, respectively. 10/07/11 Golden Minerals Co. Materials Secondary $31 Public Market Performance (LTM) Public Company Market Performance by Sector 120% Median Change in Stock Price Enterprise Value / LTM 110% Industry Sector 3 Months 12 months Revenue EBITDA 0.0% Construction 23.1% (16.6%) 0.6x 7.0x 100% 2.2% Electrical Equipment 25.3% 3.0% 1.8x 10.0x 90% Machinery 22.5% (6.3%) 1.3x 8.7x 10.2% Industrial Services 7.4% (16.2%) 1.9x 7.5x 80% Transportation 18.2% (0.8%) 1.1x 7.4x 70% Industrial Conglomerates 18.2% (6.8%) 1.6x 7.7x Materials 9.5% (14.7%) 1.3x 7.3x 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 S&P Global Industrials Sector Index Nasdaq Source: Capital IQ HYDE PARK CAPITAL 2 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 3.
    Annual Middle MarketM&A Activity – Industrials Commentary Middle Market Purchase Multiples  As detailed in the charts below, overall U.S. middle market M&A activity, or deal volume, in the Industrials industry was at a three year high in 2011 with over 370 transactions closed, up approximately 5% from the prior year and 85% from 2009. Enterprise Value / Revenue Enterprise Value / EBITDA  In addition, the total value of completed M&A transactions in the Industrials industry in 2011 climbed nearly 21% to $44.3 billion, up from $36.8 billion during the prior year.  Middle market purchases multiples, defined as Enterprise Value divided by Revenue and Enterprise Value divided by EBITDA, were in line with pre-recession levels, with an average of 1.6x and 10.8x, respectively, for 2011 completed middle market transactions across the Industrials industry. U.S. Middle Market M&A Activity – Annual Trends: VOLUME U.S. Middle Market M&A Activity – Annual Trends: VALUE Total Transaction Value ($ in billions) Total Transaction Volume Less than $100M $100 - $499M $500 - $1,000M Less than $100M $100 - $499M $500 - $1,000M Source: Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion) HYDE PARK CAPITAL 3 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 4.
    Quarterly Middle MarketM&A Activity – Industrials Commentary Middle Market M&A Transactions by Deal Size  Overall, during the 4th quarter Industrials M&A transaction volume ($ in billions) and value declined across most segments of the middle market (deals valued at less than $1 billion). Q4 2010 Q4 2011 % Change Deal Size Volume Value Volume Value Volume Value  The number of complete Industrial deals declined 32% in Q4 2011 Less than $100M 88 $2.9 54 $1.9 (39%) (33%) to 82, down from 120 in Q4 2010, while total deal value decreased $100 - $499M 25 $5.8 21 $4.5 (16%) (22%) approximately 14% over the same period to $11.8 billion. $500 - $1,000M 7 $5.1 7 $5.4 0% 4% Total Middle Market 120 $13.8 82 $11.8 (32%) (14%)  Transactions valued at less than $500 million represented slightly % of Total Market more than 90% of the total deal volume in Q4 2010, a small decrease Less than $100M 73% 21% 66% 16.0% from the prior year period, and accounted for approximately 55% of $100 - $499M 21% 42% 26% 39.0% the total deal value during the quarter. $500 - $1,000M 6% 37% 9% 45.0% Total Middle Market 100% 100% 100% 100% U.S. Middle Market M&A Activity – Quarterly Trends: VOLUME U.S. Middle Market M&A Activity – Quarterly Trends: VALUE Total Transaction Value ($ in billions) Total Transaction Volume Less than $100M $100 - $499M $500 - $1,000M Less than $100M $100 - $499M $500 - $1,000M Source: Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion) HYDE PARK CAPITAL 4 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 5.
    Recent M&A Activity– Industrials Select Announced M&A Transactions (Q4 2011) ($ in millions) Enterprise EV / EV / Announced Date Target Industry Sector Buyer Value ($mm) Revenue EBITDA 12/30/2011 Heil Trailer International, Inc. Macinery American Industrial Partners $220.0 NA NA 12/29/2011 Uniboard USA, LLC Materials Arauco Panels USA, LLC $56.0 NA NA 12/29/2011 E. W. Wylie Corp. Transportation Smokey Point Distributing, Inc. $25.0 NA NA 12/29/2011 Industrial Contractors Skanska Construction Skanska USA Civil, Inc. $135.0 NA NA 12/23/2011 Davis-Standard, LLC Machinery ONCAP $200.0 NA NA 12/23/2011 Baldwin Technology Co., Inc. Machinery Forsyth Capital Investors $25.4 0.2x NM 12/21/2011 Temp-Flex Cable, Inc. Electrical Equipment Molex, Inc. $24.0 NA NA 12/21/2011 EcoServices, LLC Transportation VT Systems, Inc. $66.5 NA NA 12/21/2011 WCA Waste Corp. Industrial Services Macquarie Infrastructure Partners $527.9 2.0x 9.1x 12/20/2011 Overland Products Co., Inc. Materials Lupus Capital plc $15.0 1.5x NA 12/20/2011 Western Pneumatic Tube Co. Materials Leggett & Platt, Inc. $188.0 NA NA 12/14/2011 Mining Claims and Rights Near Livengood Project Materials Tower Hill Mines, Inc. $24.5 NA NA 12/13/2011 J. Royal Co., Inc. Machinery Diploma PLC $18.7 1.2x NA 12/13/2011 Micro Power Electronics, Inc. Electrical Equipment Electrochem Solutions, Inc. $69.9 NA NA 12/07/2011 Wausau Paper Mills, LLC, Premium Print & Color Brands Materials Neenah Paper, Inc. $21.0 NA NA 12/07/2011 Synchrony, Inc. Electrical Equipment Dresser-Rand Group, Inc. $60.0 NA NA 12/05/2011 Acxiom Information Security Services, Inc. Industrial Services Sterling Infosystems, Inc. $74.0 1.5x NA 12/01/2011 Harvel Plastics, Inc. Construction Georg Fischer Piping Systems, Ltd. $50.0 0.8x NA 12/01/2011 Energy Products of Idaho, Inc. Machinery Outotec Oyj $91.6 NA NA 12/01/2011 The Coleman Co., Inc., Propane Cylinder Business Machinery Worthington Industries, Inc. $23.4 NA NA 11/30/2011 Ample Industries, Inc Material Huhtamaki Americas, Inc. $30.9 0.5x NA 11/24/2011 Northern Engraving Corp. Industrial Services Ningbo Lawrence Automobile Interior Co., Ltd $91.6 0.9x NA 11/18/2011 Richco, Inc. Materials Filtrona plc $110.0 1.5x 9.2x 11/18/2011 Niagara LaSalle Corp. Materials The Optima Group, LLC $221.0 NA NA 11/17/2011 Doosan Infracore International, Inc. Machinery Doosan Infracore Co., Ltd. $1,474.1 NA NA 11/17/2011 Valpey Fisher Corp. Electrical Equipment CTS Corp. $15.9 1.1x 11.8x 11/15/2011 Stagecoach Group plc, School Bus Operations Transportation Student Transportation, Inc. $47.0 NA NA 11/15/2011 Radiant's Mexico Gateway Transportation Radiant Global Logistics, Inc. $15.0 0.6x NA 11/18/2011 Pacific High Reach and Equipment Services, Inc. Machinery Sunbelt Rentals, Inc. $17.4 NA NA 11/15/2011 Hussey Copper, Ltd. Materials Patriarch Partners, LLC $107.8 NA NA 11/11/2011 I.E. Miller Services, Inc. Transportation TransForce, Inc. $110.0 0.8x NA 11/14/2011 Waco Equipment Co. Machinery Safway Services, LLC $12.9 0.4x NA 11/10/2011 Tube Supply, Inc. Industrial Services AM Castle & Co. $165.0 0.8x NA 11/07/2011 Force Protection, Inc. Machinery General Dynamics Land Systems, Inc. $238.1 0.4x 11.9x 11/03/2011 Environmental Air Systems, Inc. Construction Comfort Systems USA, Inc. $50.0 0.7x NA 11/01/2011 Scomi OilTools, Inc., Drilling Waste Management Business Industrial Services National Oilwell Varco, LP $25.0 NA NA Source: Capital IQ HYDE PARK CAPITAL 5 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 6.
    Recent M&A Activity– Industrials Select Announced M&A Transactions (Q4 2011) ($ in millions) Enterprise EV / EV / Announced Date Target Industry Sector Buyer Value ($mm) Revenue EBITDA 11/01/2011 GEL Industries, Inc. Materials SIFCO Industries, Inc. $20.8 1.3x 6.9x 10/28/2011 Unifrax Holding Co. Construction American Securities $1,000.0 NA 11.1x 10/28/2011 Global Albany Door Systems Business Construction Assa Abloy AB $130.0 NA NA 10/26/2011 Clearwater Paper Corp., Lewiston Sawmill Materials Idaho Forest Group, LLC $30.0 NA NA 10/27/2011 GMI Group Materials Rock-Tenn Co. $86.0 0.9x NA 10/20/2011 BEF Foods, Inc., Springfield Distribution Center Industrial Services Millard Refrigerated Services, Inc. $13.0 NA NA 10/19/2011 I-595 Express, LLC Transportation TIAA-CREF Trust Company, FSB $811.6 NA NA 10/18/2011 Cardno TEC Industrial Services Cardno, Ltd. $50.0 NA NA 10/28/2011 Lyman Lumber Co. Construction BlackEagle Partners $23.8 0.2x NA 10/12/2011 Phoenix Distribution Centers Industrial Services BC5 44, LLC $13.3 NA NA 10/11/2011 South Bend Controls, Inc. Machinery Curtiss-Wright Controls, Inc. $10.0 1.3x NA 10/11/2011 Thompson Industries, Inc. Materials Stella-Jones, Inc. $39.0 NA NA 10/10/2011 Tegrant Corp. Materials Sonoco Products Co. $550.0 NA NA 10/28/2011 Draths Corp. Materials Amyris, Inc. $10.4 NA NA 10/07/2011 CenterPoint II Building Industrial Services Duke Realty Corp. $12.9 NA NA 10/07/2011 Southwall Technologies, Inc. Materials Solutia, Inc. $87.0 1.7x 10.7x 10/04/2011 Lawrence Pumps, Inc. Machinery Flowserve Corp. $89.0 2.0x 11.1x 10/04/2011 Airlanco, Inc. Machinery Ag Growth International, Inc. $11.0 1.0x 5.0x 10/03/2011 Magnum Products, LLC Machinery Generac Power Systems, Inc. $80.0 0.7x 5.7x 10/03/2011 G.W. SMITH & SONS, Inc. Materials Quaker Chemical Corp. $13.3 1.0x NA 12/23/2011 Vintage Tech Recyclers, Inc. Industrial Services Kuusakoski Group, Oy $0.0 NA NA 10/03/2011 Hexacomb Corp. Materials Boise Paper Holdings, LLC $125.0 1.1x 9.5x 10/03/2011 RBF Consulting, Inc. Construction Michael Baker Corp. $52.7 0.5x NM 10/03/2011 ColorMatrix Corp. Materials PolyOne Corp. $486.0 2.6x NA 10/03/2011 The GSI Group, Inc. Construction AGCO Corp. $928.0 1.3x NA 10/03/2011 WINSLOW LifeRaft Co. Transportation Goodrich Corp. $49.5 NA NA Average $157.5 1.1x 9.0x Median $50.0 1.1x 9.4x Source: Capital IQ HYDE PARK CAPITAL 6 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 7.
    M&A Activity byIndustrial Sector U.S. Middle Market M&A Activity by Industrial Sector: VOLUME % Change 20% 5% 11% 18% 79% 4% 2010 2011 U.S. Middle Market M&A Activity by Industrial Sector: VALUE % Change ($ in millions) 6% 54% 1% 16% 94% 29% 2010 2011 Source: Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion); Note: Industrial conglomerates had no transactions with disclosed values in this range during the period. HYDE PARK CAPITAL 7 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 8.
    Private Equity Activity– Industrials Commentary Select Private Equity Transactions – Industrials (Q4 2011) ($ in millions)  With financing markets cooperating, financial sponsors remained Announced Date Target Buyer Industry Transaction Value 12/31/11 Interface Solutions, Inc. Wind Point Partners Machinery NA active investors across all sectors of the Industrials industry in Q4 12/30/11 Heil Trailer International, Inc. American Industrial Partners Machinery $220 2011, as shown in the table on the right. 12/23/11 Baldwin Technology Co., Inc. Forsyth Capital Investors Machinery $39  Several notable private equity backed transactions were 12/23/11 Davis-Standard, LLC ONCAP Machinery $200 announced during the 4th quarter including American Securities 11/16/11 Selmet, Inc. Blue Point Capital Partners Materials NA buyout of Unifrax Holding Co., a manufacturer of ceramic fiber 11/15/11 Hussey Copper, Ltd. Patriarch Partners Materials $108 insulation products, for $1 billion; and American Industrial 11/09/11 Trantech Radiator Products, Inc. Industrial Opportunity Partners Electrical Equipment NA Partners acquisition of Heil Trailer International, Inc. for $220 11/02/11 Ideal Clamp Products, Inc. Industrial Growth Partners Machinery NA million. 11/01/11 Quadra, Inc. Blue Point Capital Partners Materials NA 11/01/11 Arrowhead Electrical Products, Inc. Pfingsten Partners Electrical Equipment NA  During 2011 financial sponsors participated in approximately 1 of 11/01/11 Cargo Services, Inc. ICV Capital Partners Transportation NA 4 completed deals. In addition, a number of sizable new private 10/28/11 Lyman Lumber Co. BlackEagle Partners Construction $24 equity funds were raised and closed during 2011, including several by established firms with a focus on investing in the 10/28/11 Unifrax Holding Co. American Securities Construction $1,000 Industrials industry. 10/11/11 Nesco, LLC Platinum Equity Transportation NA Financial Sponsors vs. Strategic Buyers Raised Private Equity Funds Investing in Industrials (2011) ($ in millions) Amount Sponsor Fund Name Raised in 2011 450 $50 Berkshire Partners Berkshire Fund VIII $4,500 $45 $44.3 400 372 The Gores Group Gores Capital Partners III $375 Total Transaction Value ($ in billions) 353 $40 Snow Phipps Group Show Phipps II $536 350 $36.8 Total Transaction Volume $35 American Industrial Partners American Industrial Partners Capital Fund V $700 300 Endeavour Capital Endeavour Capital Fund VI $675 $30 250 74% Cortec Group Cortec Group Fund V $620 78% 74% $25 77% 200 Industrial Growth Partners Industrial Growth Partners IV $600 $20 J.F. Lehman & Co. JFL Equity Investors $576 150 $15 H.I.G. Capital H.I.G. Growth Buyouts & Equity Fund II $500 100 SK Capital Partners SK Capital Partners III $500 $10 Arlington Capital Arlington Capital Partners III $116 50 22% 26% $5 23% 26% Altus Capital Partners Altus Capital Partners II $200 0 $0 Plexus Capital Plexus Fund II $134 2010 2011 2010 2011 Hudson Ferry Capital Hudson Ferry Capital II $155 Financial Sponsor Strategic Buyer Financial Sponsor Strategic Buyer Inverness Graham Investments Inverness Graham Investments II $120 Source: Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion) Carousel Capital Partners Carousel Capital Partners IV $107 HYDE PARK CAPITAL 8 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 9.
    Industry Sector Overview– Recent Stock Price Performance Commentary Construction  The charts included on the following pages detail the recent stock 140% price performance by sector for the leading public companies 130% within the Industrials industry for the 12-month period ended December 31, 2011. The shaded section is the most recent 3- 120% month period (Q4) for each sector and relative to the S&P 500. 110%  During Q4 all of the sector indices of the Industrials industry 100% 0.0% increased. The Construction, Electrical Equipment and Machinery sectors delivered the strongest gains for the 3-month period 90% 16.6% ending December 31st, 2011, all finishing up more than 20%. 80% However, for the 12-month period all of the Industrials indices, except Electrical Equipment, declined. 70% 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 Construction Electrical Equipment Machinery 140% 140% 130% 130% 120% 120% 110% 110% 3.0% 0.0% 100% 100% 0.0% 90% 90% 6.3% 80% 80% 70% 70% 60% 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 Electrical Equipment S&P 500 Machinary Source: Capital IQ HYDE PARK CAPITAL 9 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 10.
    Industry Sector Overview– Recent Stock Price Performance Industrial Services Transportation 140% 140% 130% 130% 120% 120% 110% 110% 0.0% 100% 0.0% 100% 0.8% 90% 90% 16.2% 80% 80% 70% 70% 60% 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 Industrial Services S&P 500 Transportation Industrial Conglomerates Materials 140% 140% 130% 130% 120% 120% 110% 110% 100% 0.0% 100% 0.0% 90% 90% 6.8% 14.7% 80% 80% 70% 70% 60% 60% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 S&P 500 Industrial Conglomerates S&P 500 Materials Source: Capital IQ HYDE PARK CAPITAL 10 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 11.
    Industry Sector Overview– Public Company Analysis Construction ($ in millions, except per share) Building Products Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Masco Corp. MAS $10.48 70% $3,647 $6,067 $7,535 $1,760 $395 23.4% 5.2% 0.8x NM Owens Corning OC $28.72 74% $3,521 $5,527 $5,307 $1,000 $732 18.8% 13.8% 1.0x 7.6x Armstrong World Industries, Inc. AWI $43.87 90% $2,580 $3,060 $2,850 $706 $347 24.8% 12.2% 1.1x 8.8x USG Corp. USG $10.16 51% $1,070 $2,858 $2,970 $186 $45 6.3% 1.5% 1.0x NM Fortune Brands Home & Security, Inc. FBHS $17.03 100% $2,641 $2,597 $3,296 $1,037 $266 31.5% 8.1% 0.8x 9.8x Lennox International, Inc. LII $33.75 62% $1,745 $2,165 $3,304 $834 $229 25.2% 6.9% 0.7x 9.5x AO Smith Corp. AOS $40.12 90% $1,864 $1,700 $1,711 $513 $187 30.0% 10.9% 1.0x 9.1x Simpson Manufacturing Co., Inc. SSD $33.66 96% $1,623 $1,409 $603 $271 $96 44.9% 15.8% 2.3x 14.8x Average 79% $2,336 $3,173 $3,447 $788 $287 25.6% 9.3% 1.1x 9.9x Median 82% $2,222 $2,727 $3,133 $770 $248 25.0% 9.5% 1.0x 9.3x Construction and Engineering Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Fluor Corp. FLR $50.25 66% $8,702 $6,774 $22,396 $938 $979 4.2% 4.4% 0.3x 6.9x Jacobs Engineering Group, Inc. JEC $40.58 73% $5,198 $4,774 $10,657 $1,649 $673 15.5% 6.3% 0.4x 7.1x KBR, Inc. KBR $27.87 71% $4,208 $3,617 $9,361 $671 $524 7.2% 5.6% 0.4x 6.9x AECOM Technology Corp. ACM $20.57 69% $2,357 $3,063 $8,130 $464 $470 5.7% 5.8% 0.4x 6.5x URS Corp. URS $35.12 73% $2,718 $3,053 $9,532 $729 $606 7.6% 6.4% 0.3x 5.0x Shaw Group, Inc. SHAW $26.90 65% $1,950 $1,748 $5,912 $255 $63 4.3% 1.1% 0.3x NM EMCOR Group, Inc. EME $26.81 82% $1,834 $1,511 $5,666 $747 $277 13.2% 4.9% 0.3x 5.5x Tutor Perini Corp. TPC $12.34 46% $589 $1,124 $3,290 $342 $187 10.4% 5.7% 0.3x 6.0x Average 68% $3,445 $3,208 $9,368 $724 $472 8.5% 5.0% 0.3x 6.3x Median 70% $2,538 $3,058 $8,746 $700 $497 7.4% 5.6% 0.3x 6.5x Source: Capital IQ HYDE PARK CAPITAL 11 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 12.
    Industry Sector Overview– Public Company Analysis Electrical Equipment ($ in millions, except per share) Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Rockwell Automation, Inc. ROK $73.37 75% $10,558 $10,779 $6,109 $2,465 $1,104 40.4% 18.1% 1.8x 9.8x Cooper Industries, plc CBE $54.15 77% $8,680 $9,431 $5,409 $1,797 $890 33.2% 16.5% 1.7x 10.6x Roper Industries, Inc. ROP $86.87 98% $8,571 $9,318 $2,797 $1,516 $801 54.2% 28.6% 3.3x 11.6x Ametek, Inc. AME $42.10 90% $6,800 $7,889 $2,990 $1,034 $719 34.6% 24.1% 2.6x 11.0x Hubbell, Inc. HUB.B $66.86 92% $3,978 $3,995 $2,872 $924 $492 32.2% 17.1% 1.4x 8.1x Woodward, Inc. WWD $40.93 97% $2,881 $3,247 $1,755 $533 $298 30.4% 17.0% 1.9x 10.9x Thomas & Betts Corp. TNB $54.60 88% $2,863 $2,886 $2,298 $719 $374 31.3% 16.3% 1.3x 7.7x Polypore International, Inc. PPO $43.99 59% $2,077 $2,685 $742 $314 $235 42.3% 31.7% 3.6x 11.4x Generac Holdings, Inc. GNRC $28.03 96% $1,896 $2,397 $686 $260 $160 37.9% 23.3% 3.5x 15.0x Acuity Brands, Inc. AYI $53.00 86% $2,210 $2,391 $1,845 $748 $237 40.5% 12.9% 1.3x 10.1x GrafTech International, Ltd. GTI $13.65 57% $1,995 $2,360 $1,253 $309 $240 24.6% 19.2% 1.9x 9.8x Belden, Inc. BDC $33.28 82% $1,606 $1,808 $1,943 $562 $225 28.9% 11.6% 0.9x 8.0x Brady Corp. BRC $31.57 82% $1,672 $1,691 $1,360 $660 $223 48.5% 16.4% 1.2x 7.6x Coleman Cable, Inc. CCIX $8.70 51% $152 $468 $847 $120 $78 14.2% 9.2% 0.6x 6.0x Average 81% $3,996 $4,382 $2,350 $854 $434 35.2% 18.7% 1.9x 9.8x Median 84% $2,537 $2,786 $1,894 $689 $269 33.9% 17.1% 1.8x 10.0x Source: Capital IQ HYDE PARK CAPITAL 12 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 13.
    Industry Sector Overview– Public Company Analysis Machinery ($ in millions, except per share) Construction and Farm Machinery Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Caterpillar, Inc. CAT $90.60 78% $60,331 $93,094 $60,138 $15,734 $9,680 26.2% 16.1% 1.5x 9.6x Deere & Co. DE $77.35 78% $32,062 $55,029 $32,013 $9,334 $5,246 29.2% 16.4% 1.7x 10.5x PACCAR, Inc. PCAR $37.47 64% $13,455 $18,516 $16,355 $2,221 $2,153 13.6% 13.2% 1.1x 8.6x Cummins, Inc. CMI $88.02 72% $16,856 $15,781 $18,048 $4,589 $2,429 25.4% 13.5% 0.9x 6.5x Joy Global, Inc. JOY $74.97 72% $8,001 $9,105 $4,404 $1,506 $1,019 34.2% 23.1% 2.1x 8.9x AGCO Corp. AGCO $42.97 72% $4,164 $4,244 $8,423 $1,661 $735 19.7% 8.7% 0.5x 5.8x Manitowoc Co., Inc. MTW $9.19 40% $1,220 $3,039 $3,652 $838 $347 22.9% 9.5% 0.8x 8.7x Oshkosh Corp. OSK $21.38 53% $1,958 $2,538 $7,763 $989 $542 12.7% 7.0% 0.3x 4.7x Toro Co. TTC $60.66 89% $1,883 $2,029 $1,884 $637 $233 33.8% 12.4% 1.1x 8.7x Average 69% $15,548 $22,597 $16,964 $4,168 $2,487 24.2% 13.3% 1.1x 8.0x Median 72% $8,001 $9,105 $8,423 $1,661 $1,019 25.4% 13.2% 1.1x 8.7x Industrial Machinery Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Illinois Tool Works, Inc. ITW $46.71 79% $22,684 $25,497 $17,787 $6,269 $3,320 35.2% 18.7% 1.4x 7.7x Eaton Corp. ETN $43.53 77% $14,717 $17,406 $16,049 $4,788 $2,192 29.8% 13.7% 1.1x 7.9x Stanley Black & Decker, Inc. SWK $67.60 86% $11,289 $13,834 $10,376 $3,830 $1,561 36.9% 15.0% 1.3x 8.9x Parker Hannifin Corp. PH $76.25 77% $11,797 $13,047 $12,991 $3,156 $1,947 24.3% 15.0% 1.0x 6.7x Dover Corp. DOV $58.05 83% $10,867 $11,848 $7,950 $3,051 $1,514 38.4% 19.0% 1.5x 7.8x Pall Corp. PLL $57.15 96% $6,699 $6,864 $2,841 $1,420 $609 50.0% 21.4% 2.4x 11.3x Flowserve Corp. FLS $99.32 73% $5,578 $5,860 $4,385 $1,493 $700 34.0% 16.0% 1.3x 8.4x Donaldson Co., Inc. DCI $68.08 96% $5,210 $5,252 $2,365 $841 $392 35.5% 16.6% 2.2x 13.4x Timken Co. TKR $38.71 67% $3,808 $3,858 $5,170 $1,370 $936 26.5% 18.1% 0.7x 4.1x Average 82% $10,294 $11,496 $8,879 $2,913 $1,463 34.5% 17.0% 1.5x 8.5x Median 79% $10,867 $11,848 $7,950 $3,051 $1,514 35.2% 16.6% 1.3x 7.9x Source: Capital IQ HYDE PARK CAPITAL 13 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 14.
    Industry Sector Overview– Public Company Analysis Machinery ($ in millions, except per share) Trading Companies and Distributors Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA W.W. Grainger, Inc. GWW $187.19 97% $13,363 $13,544 $8,078 $3,511 $1,202 43.5% 14.9% 1.7x 11.3x Fastenal Co. FAST $43.61 98% $12,920 $12,775 $2,767 $1,434 $620 51.8% 22.4% 4.6x 20.6x GATX Corp. GMT $43.66 97% $2,074 $5,373 $1,241 $681 $560 54.8% 45.2% 4.3x 9.6x United Rentals, Inc. URI $29.55 85% $2,169 $5,175 $2,611 $898 $487 34.4% 18.7% 2.0x 10.6x MSC Industrial Direct Co., Inc. MSM $71.55 90% $4,481 $4,357 $2,095 $975 $399 46.6% 19.1% 2.1x 10.9x RSC Holdings, Inc. RRR $18.50 98% $1,949 $4,266 $1,522 $432 $249 28.4% 16.4% 2.8x 17.1x WESCO International, Inc. WCC $53.01 82% $2,597 $3,183 $6,126 $1,237 $365 20.2% 6.0% 0.5x 8.7x Watsco, Inc. WSO $65.66 89% $2,020 $2,114 $2,989 $722 $201 24.1% 6.7% 0.7x 10.5x EnerSys ENS $25.97 64% $1,293 $1,494 $2,173 $479 $243 22.0% 11.2% 0.7x 6.2x Applied Industrial Technologies, Inc. AIT $35.17 96% $1,499 $1,429 $2,306 $640 $187 27.8% 8.1% 0.6x 7.7x Titan Machinery, Inc. TITN $21.73 68% $458 $998 $1,420 $239 $80 16.8% 5.6% 0.7x 12.5x Average 88% $4,075 $4,973 $3,030 $1,022 $417 33.7% 15.8% 1.9x 11.4x Median 90% $2,074 $4,266 $2,306 $722 $365 28.4% 14.9% 1.7x 10.6x Source: Capital IQ HYDE PARK CAPITAL 14 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 15.
    Industry Sector Overview– Public Company Analysis Industrial Services ($ in millions, except per share) Environmental and Facilities Services Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Southern Copper Corp. SCCO $30.18 60% $25,465 $26,437 $6,648 $4,040 $3,916 60.8% 58.9% 4.0x 6.8x Waste Management, Inc. WM $32.71 82% $15,364 $24,763 $13,159 $4,822 $3,295 36.6% 25.0% 1.9x 7.5x Republic Services, Inc. RSG $27.55 83% $10,323 $17,276 $8,189 $3,346 $2,482 40.9% 30.3% 2.1x 7.0x Stericycle, Inc. SRCL $77.92 81% $6,751 $8,112 $1,676 $802 $510 47.8% 30.4% 4.8x 15.9x Waste Connections, Inc. WCN $33.14 92% $3,751 $4,916 $1,462 $633 $474 43.3% 32.5% 3.4x 10.4x Covanta Holding Corp. CVA $13.69 77% $1,917 $3,960 $1,638 $673 $421 41.1% 25.7% 2.4x 9.4x Clean Harbors, Inc. CLH $63.73 99% $3,401 $3,685 $1,855 $558 $315 30.1% 17.0% 2.0x 11.7x Rollins, Inc. ROL $22.22 94% $3,251 $3,205 $1,205 $588 $199 48.8% 16.5% 2.7x 16.1x Sims Metal Management, Ltd. ASX:SGM $12.65 56% $2,614 $2,741 $9,498 $978 $390 10.3% 4.1% 0.3x 7.0x Titanium Metals Corp. TIE $14.98 72% $2,650 $2,554 $1,004 $217 $204 21.6% 20.3% 2.5x 12.5x Schnitzer Steel Industries, Inc. SCHN $42.28 61% $1,172 $1,640 $3,596 $384 $247 10.7% 6.9% 0.5x 6.7x Tetra Tech, Inc. TTEK $21.59 84% $1,362 $1,419 $1,879 $332 $204 17.7% 10.9% 0.8x 6.9x Casella Waste Systems, Inc. CWST $6.40 77% $171 $632 $478 $149 $84 31.2% 17.6% 1.3x 7.5x Average 78% $6,015 $7,795 $4,022 $1,348 $980 33.9% 22.8% 2.2x 9.6x Median 81% $3,251 $3,685 $1,855 $633 $390 36.6% 20.3% 2.1x 7.5x Diversified Support Services Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Iron Mountain, Inc. IRM $30.80 86% $6,059 $8,898 $3,231 $1,931 $930 59.8% 28.8% 2.8x 9.6x Pitney Bowes, Inc. PBI $18.54 70% $3,749 $7,225 $5,371 $2,708 $1,086 50.4% 20.2% 1.3x 6.7x R.R. Donnelley & Sons Co. RRD $14.43 68% $2,753 $6,324 $10,597 $2,520 $1,252 23.8% 11.8% 0.6x 5.1x Cintas Corp. CTAS $34.81 99% $4,516 $5,464 $3,986 $1,694 $652 42.5% 16.4% 1.4x 8.4x Avery Dennison Corp. AVY $28.68 66% $3,063 $4,066 $6,026 $1,521 $597 25.2% 9.9% 0.7x 6.8x KAR Auction Services, Inc. KAR $13.50 64% $1,864 $4,041 $1,842 $828 $450 44.9% 24.4% 2.2x 9.0x Copart, Inc. CPRT $47.89 100% $3,204 $3,493 $885 $400 $318 45.2% 35.9% 3.9x 11.0x Corrections Corp. of America CXW $20.37 77% $2,139 $3,301 $1,728 $535 $446 30.9% 25.8% 1.9x 7.4x Ritchie Bros. Auctioneers, Inc. RBA $22.08 70% $2,360 $2,343 $371 $324 $127 87.4% 34.3% 6.3x 18.4x United Stationers, Inc. USTR $32.56 87% $1,439 $1,933 $4,991 $756 $259 15.1% 5.2% 0.4x 7.5x Brinks Co. BCO $26.88 78% $1,296 $1,497 $3,886 $711 $334 18.3% 8.6% 0.4x 4.5x Herman Miller, Inc. MLHR $18.45 64% $1,077 $1,137 $1,760 $585 $184 33.2% 10.4% 0.6x 6.2x Average 77% $2,793 $4,143 $3,723 $1,209 $553 39.7% 19.3% 1.9x 8.4x Median 74% $2,557 $3,767 $3,558 $792 $448 37.9% 18.3% 1.4x 7.4x Source: Capital IQ HYDE PARK CAPITAL 15 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 16.
    Industry Sector Overview– Public Company Analysis Transportation ($ in millions, except per share) Air Freight and Logistics Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA United Parcel Service, Inc. UPS $73.19 95% $71,507 $78,474 $53,105 $25,530 $7,855 48.1% 14.8% 1.5x 10.0x FedEx Corp. FDX $83.51 85% $26,389 $26,172 $41,323 $10,295 $4,891 24.9% 11.8% 0.6x 5.4x CH Robinson Worldwide, Inc. CHRW $69.78 84% $11,432 $11,058 $10,336 $936 $725 9.1% 7.0% 1.1x 15.2x Expeditors International of Washington, Inc. EXPD $40.96 73% $8,795 $7,534 $6,231 $806 $650 12.9% 10.4% 1.2x 11.6x Hub Group, Inc. HUBG $32.43 79% $1,203 $1,180 $2,752 $313 $111 11.4% 4.0% 0.4x 10.6x Atlas Air Worldwide Holdings, Inc. AAWW $38.43 53% $1,017 $1,115 $1,370 $331 $195 24.1% 14.3% 0.8x 5.7x Forward Air Corp. FWRD $32.05 88% $947 $911 $521 $140 $92 26.9% 17.7% 1.7x 9.8x Average 80% $17,327 $18,063 $16,520 $5,479 $2,074 22.5% 11.4% 1.1x 9.8x Median 84% $8,795 $7,534 $6,231 $806 $650 24.1% 11.8% 1.1x 10.0x Road and Rail Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Union Pacific Corp. UNP $105.94 98% $51,349 $59,038 $19,557 $8,123 $7,341 41.5% 37.5% 3.0x 8.0x Norfolk Southern Corp. NSC $72.86 93% $24,670 $31,909 $11,172 $4,075 $4,082 36.5% 36.5% 2.9x 7.8x CSX Corp. CSX $21.06 78% $22,618 $30,553 $11,743 $4,394 $4,394 37.4% 37.4% 2.6x 7.0x Kansas City Southern KSU $68.01 96% $7,475 $8,971 $2,098 $772 $771 36.8% 36.8% 4.3x 11.6x JB Hunt Transport Services, Inc. JBHT $45.07 92% $5,380 $6,123 $4,527 $760 $655 16.8% 14.5% 1.4x 9.3x Ryder System, Inc. R $53.14 88% $2,694 $5,972 $6,051 $2,721 $1,242 45.0% 20.5% 1.0x 4.8x Genesee & Wyoming, Inc. GWR $60.58 95% $2,594 $3,184 $788 $322 $230 40.9% 29.2% 4.0x 13.8x AMERCO UHAL $88.40 85% $1,721 $2,818 $2,364 $819 $595 34.7% 25.2% 1.2x 4.7x Old Dominion Freight Line, Inc. ODFL $40.53 97% $2,328 $2,521 $1,883 $476 $323 25.3% 17.1% 1.3x 7.8x Con-way, Inc. CNW $29.16 69% $1,638 $2,408 $5,290 $208 $409 3.9% 7.7% 0.5x 5.9x Landstar System, Inc. LSTR $47.92 96% $2,249 $2,299 $2,651 $601 $209 22.7% 7.9% 0.9x 11.0x Werner Enterprises, Inc. WERN $24.10 89% $1,766 $1,754 $2,003 $481 $333 24.0% 16.6% 0.9x 5.3x Average 90% $10,540 $13,129 $5,844 $1,979 $1,715 30.5% 23.9% 2.0x 8.1x Median 92% $2,644 $4,578 $3,589 $766 $625 35.6% 22.9% 1.3x 7.8x Source: Capital IQ HYDE PARK CAPITAL 16 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 17.
    Industry Sector Overview– Public Company Analysis Transportation ($ in millions, except per share) Airlines Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Delta Air Lines, Inc. DAL $8.09 61% $6,836 $18,184 $35,115 $7,050 $3,738 20.1% 10.6% 0.5x 4.9x United Continental Holdings, Inc. UAL $18.87 65% $6,227 $11,027 $37,003 $9,892 $3,850 26.7% 10.4% 0.3x 2.9x Southwest Airlines Co. LUV $8.56 63% $6,702 $7,309 $15,658 $3,421 $1,542 21.8% 9.8% 0.5x 4.7x JetBlue Airways Corp. JBLU $5.20 73% $1,783 $3,630 $4,504 $1,286 $563 28.6% 12.5% 0.8x 6.4x US Airways Group, Inc. LCC $5.07 44% $828 $3,447 $13,055 $2,376 $687 18.2% 5.3% 0.3x 5.0x Alaska Air Group, Inc. ALK $75.09 97% $2,727 $2,685 $4,318 $1,145 $733 26.5% 17.0% 0.6x 3.7x Westjet Airlines, Ltd. WJA $11.76 75% $1,639 $1,213 $2,873 $897 $432 31.2% 15.0% 0.4x 2.8x Allegiant Travel Co. ALGT $53.34 96% $1,025 $890 $779 $180 $126 23.0% 16.2% 1.1x 7.0x Spirit Airlines, Inc. SAVE $15.60 89% $1,130 $779 $1,013 $273 $136 27.0% 13.4% 0.8x 5.7x Average 74% $3,211 $5,463 $12,702 $2,947 $1,312 24.8% 12.3% 0.6x 4.8x Median 73% $1,783 $3,447 $4,504 $1,286 $687 26.5% 12.5% 0.5x 4.9x Marine Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Kirby Corp. KEX $65.84 99% $3,651 $4,451 $1,850 $622 $433 33.6% 23.4% 2.4x 10.3x Alexander & Baldwin, Inc. ALEX $40.82 74% $1,719 $2,272 $1,732 $264 $218 15.2% 12.6% 1.3x 10.4x International Shipholding Corp. ISH $18.69 69% $135 $422 $263 $71 $51 27.0% 19.4% 1.6x 8.3x Rand Logistics, Inc. RLOG $6.51 79% $115 $219 $133 $33 $22 24.8% 16.8% 1.6x 9.8x Average 80% $1,405 $1,841 $995 $247 $181 25.2% 18.0% 1.7x 9.7x Median 76% $927 $1,347 $998 $167 $134 25.9% 18.1% 1.6x 10.1x Source: Capital IQ HYDE PARK CAPITAL 17 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 18.
    Industry Sector Overview– Public Company Analysis Industrial Conglomerates ($ in millions, except per share) Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA General Electric Co.* GE $17.91 83% $189,685 $189,688 $106,737 $19,078 $22,809 17.9% 21.4% 1.8x 8.3x Siemens AG SIE $73.83 57% $65,262 $71,547 $95,893 $28,010 $12,422 29.2% 13.0% 0.7x 5.8x United Technologies Corp. UTX $73.09 80% $65,708 $70,008 $58,190 $16,037 $9,446 27.6% 16.2% 1.2x 7.4x 3M Co. MMM $81.73 83% $57,824 $59,310 $29,611 $13,918 $7,403 47.0% 25.0% 2.0x 8.0x Danaher Corp. DHR $47.04 84% $33,466 $38,234 $16,091 $8,177 $3,185 50.8% 19.8% 2.4x 12.0x Tyco International, Ltd. TYC $46.71 88% $21,907 $25,068 $17,184 $6,649 $3,397 38.7% 19.8% 1.5x 7.4x Average 79% $72,309 $75,643 $53,951 $15,312 $9,777 35.2% 19.2% 1.6x 8.1x Median 83% $61,543 $64,659 $43,901 $14,978 $8,425 34.0% 19.8% 1.6x 7.7x Source: Capital IQ * Note: General Electric Co. enterprise value and LTM financials excludes GE Capital HYDE PARK CAPITAL 18 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 19.
    Industry Sector Overview– Public Company Analysis Materials ($ in millions, except per share) Chemicals Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA E.I. du Pont de Nemours and Co. DD $45.78 80% $42,837 $51,371 $38,833 $11,468 $6,952 29.5% 17.9% 1.3x 7.4x The Dow Chemical Co. DOW $28.76 68% $33,341 $49,665 $59,985 $8,956 $6,791 14.9% 11.3% 0.8x 7.3x Potash Corp. of Saskatchewan, Inc. POT $41.28 65% $36,149 $40,256 $8,219 $4,286 $4,398 52.1% 53.5% 4.9x 9.2x Praxair, Inc. PX $106.90 96% $32,466 $38,938 $11,252 $4,794 $3,472 42.6% 30.9% 3.5x 11.2x Monsanto Co. MON $70.07 89% $37,936 $36,839 $12,425 $6,353 $3,292 51.1% 26.5% 3.0x 11.2x Air Products & Chemicals, Inc. APD $85.19 87% $18,222 $22,424 $10,113 $2,744 $2,510 27.1% 24.8% 2.2x 8.9x The Sherwin-Williams Co. SHW $89.27 99% $9,305 $10,427 $8,766 $3,745 $962 42.7% 11.0% 1.2x 10.8x Celanese Corp. CE $44.27 75% $7,035 $9,306 $6,763 $1,441 $1,035 21.3% 15.3% 1.4x 9.0x Eastman Chemical Co. EMN $39.06 71% $5,472 $6,293 $7,178 $1,640 $1,286 22.8% 17.9% 0.9x 4.9x W.R. Grace & Co. GRA $45.92 87% $3,476 $3,453 $3,212 $1,159 $564 36.1% 17.5% 1.1x 6.1x Average 82% $22,624 $26,897 $16,675 $4,659 $3,126 34.0% 22.7% 2.0x 8.6x Median 84% $25,344 $29,631 $9,440 $4,015 $2,901 32.8% 17.9% 1.3x 9.0x Metals and Mining Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA Barrick Gold Corp. ABX $45.25 81% $45,295 $55,713 $13,457 $8,349 $7,556 62.0% 56.1% 4.1x 7.4x Goldcorp, Inc. GG $44.25 79% $35,946 $35,196 $5,229 $3,300 $2,943 63.1% 56.3% 6.7x 12.0x Freeport-McMoRan Copper & Gold, Inc. FCX $36.79 60% $35,061 $33,776 $20,880 $10,982 $10,162 52.6% 48.7% 1.6x 3.3x Newmont Mining Corp. NEM $60.01 83% $30,245 $32,253 $10,141 $6,335 $5,332 62.5% 52.6% 3.2x 6.0x Southern Copper Corp. SCCO $30.18 60% $25,465 $26,437 $6,648 $4,040 $3,916 60.8% 58.9% 4.0x 6.8x Alcoa, Inc. AA $8.65 47% $9,207 $16,639 $24,951 $4,471 $3,262 17.9% 13.1% 0.7x 5.1x United States Steel Corp. X $26.46 41% $3,812 $7,632 $19,884 $1,541 $819 7.7% 4.1% 0.4x 9.3x Walter Energy, Inc. WLT $60.56 42% $3,801 $6,030 $2,255 $957 $807 42.4% 35.8% 2.7x 7.5x Average 62% $23,604 $26,710 $12,931 $4,997 $4,350 46.1% 40.7% 2.9x 7.2x Median 60% $27,855 $29,345 $11,799 $4,256 $3,589 56.7% 50.6% 2.9x 7.1x Source: Capital IQ HYDE PARK CAPITAL 19 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 20.
    Industry Sector Overview– Public Company Analysis Materials ($ in millions, except per share) Paper and Forest Products Enterprise Value / Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM Company Ticker 12/30/11 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA International Paper Co. IP $29.60 90% $12,914 $20,100 $26,034 $7,074 $3,651 27.2% 14.0% 0.8x 5.5x MeadWestvaco Corp. MWV $29.95 87% $5,124 $6,501 $6,060 $1,394 $975 23.0% 16.1% 1.1x 6.7x Domtar Corp. UFS $79.96 76% $2,991 $3,378 $5,612 $1,441 $1,105 25.7% 19.7% 0.6x 3.1x Resolute Forest Products ABH $14.55 48% $1,413 $1,830 $4,881 $1,221 $511 25.0% 10.5% 0.4x 3.6x Average 75% $5,611 $7,952 $10,647 $2,783 $1,560 25.2% 15.1% 0.7x 4.7x Median 81% $4,057 $4,939 $5,836 $1,418 $1,040 25.3% 15.1% 0.7x 4.5x Source: Capital IQ HYDE PARK CAPITAL 20 Investment Banking | Mergers & Acquisitions | Capital Raising
  • 21.
    HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising Recent Transactions John Hill Senior Managing Director [email protected] (813) 383-0205 has been acquired by has been recapitalized by has been acquired by has been acquired by has acquired John McDonald Senior Managing Director [email protected] ADG Acquisition (813) 383-0206 Harbert Mezzanine Partners Holdings, LLC Keith Hodgdon Senior Vice President [email protected] (813) 383-0208 Jeffrey Bridge has been acquired by has been acquired by has been acquired by has been recapitalized by has merged with Vice President [email protected] (813) 383-0204 Michael Mariani Associate [email protected] (813) 597-2649 has been recapitalized by has acquired has been recapitalized by has been acquired by has been acquired by Hyde Park Capital Advisors, LLC Sage Compliance 701 N. Franklin Street Services, Inc. Tampa, FL 33602 Tel: 813-383-0202 www.hydeparkcapital.com HYDE PARK CAPITAL Member FINRA/SIPC Investment Banking | Mergers & Acquisitions | Capital Raising