Market Commentary COMMERCIAL & INDUSTRIAL

Monthly Update
November 2014
COMMERCIAL & INDUSTRIAL
Market Commentary
After a tumultuous month in the public markets, all but one of our industry indices posted gains in October. Three of our indices with the
greatest exposure to residential construction (Building Materials, Consumer Durables, and Engineering & Construction) are still down for
the year. Market volatility contributed to the lack of public equity offering activity, but M&A activity remained strong. Notable closed
transactions in October included AECOM’s acquisition of URS and WSP Global’s acquisition of Parsons Brinckerhoff, two large engineering
& construction deals. Heading into the last two months of the year, the major economic indicators for the industrial economy continue
to point toward expansion.
Changes in Stock Prices
20.0%
15.0%
14.4%
13.6%
12.0%
10.0%
9.3%
8.3%
5.9%
5.5%
5.0%
6.2%
5.5%
4.8%
3.6% 3.1%
2.1%
0.0%
6.2%
5.8%
3.9%
1.0%
0.3%
(1.4%)
(5.0%)
(2.1%)
(4.3%)
Building
Materials
(7.0%)
(7.8%)
(8.6%)
(10.0%)
Cement,
Aggregates
& Concrete
Commercial
Durables
Consumer
Durables
YTD Change
One-Year Change
Source: Capital IQ.
Engineering
& Construction
Flow Control
Industrial
Distribution
Industrial
Equipment
One-Month Change
EBITDA Valuation Multiples1
Last 12 Months (LTM)
16.0x
14.0x
15.7x
13.2x 13.1x 13.1x
13.0x 12.8x
12.7x
12.7x
12.0x
12.0x
12.0x
11.1x 10.8x 11.3x
11.2x 10.9x
10.0x
10.5x
9.8x
8.8x
8.0x
8.7x
9.1x
8.6x
9.5x
8.5x
7.7x
6.0x
4.0x
2.0x
0.0x
Building
Materials
Cement,
Aggregates
& Concrete
Commercial
Durables
Consumer
Durables
10/31/13
Engineering
& Construction
9/30/14
Source: Capital IQ.
(1) Total enterprise value is defined as equity value plus total debt less cash. Past performance is no guarantee of future results.
Flow Control
10/31/14
Industrial
Distribution
Industrial
Equipment
Historical Enterprise Value/EBITDA Multiples
CEMENT, AGGREGATES & CONCRETE
BUILDING MATERIALS
16.0x
18.0x
14.1x 14.1x 14.1x 13.7x 13.7x
14.0x
13.2x 13.2x
14.3x
13.9x 14.1x 14.0x 13.8x 14.0x 13.8x
12.5x
12.0x 12.3x 12.4x 12.1x
12.0x
16.9x
15.7x
16.0x
13.5x 13.1x 13.1x
14.5x
14.0x
11.2x 11.2x
12.0x
10.0x
10.0x
9.6x
10.2x 10.6x
11.3x
10.6x
10.2x 10.5x 10.1x 10.4x
11.3x
12.7x
12.3x 12.5x
11.8x 12.0x
14.4x 14.4x
13.3x
11.8x 12.1x
12.7x
8.0x
8.0x
6.0x
COMMERCIAL DURABLES
14
4
0/
/1
/3
10
8/
14.0x
12.0x
11.3x
10.6x
FLOW CONTROL
14.0x
16.0x
12.0x
14.0x
10.0x
8.6x
8.0x
6.9x
7.3x
9.2x
8.2x
7.8x
8.6x 8.3x 8.6x 8.6x
9.2x 9.1x 9.4x
10.0x
9.6x
9.1x 9.2x 9.1x 9.1x
11.5x 11.2x
9.5x
12.7x
12.5x 12.8x
12.1x 12.1x 12.3x
12.1x
12.7x 13.0x
14.2x
13.4x
13.8x
8.7x
14
4
7.7x
8/
/3
31
0/
/1
4
31
14.4x
13.7x
12.0x
8.2x 8.4x
/1
4
5/
2/
11
10
8/
/3
/3
0/
0/
14
4
31
31
5/
2/
11
/1
/1
4
/1
28
0/
/3
31
8/
31
5/
28
2/
13
3
/1
3
/1
3
/1
12
0/
/3
11
ENGINEERING & CONSTRUCTION
/1
0.0x
28
0.0x
2/
2.0x
13
2.0x
0/
4.0x
/3
4.0x
11
6.0x
9.6x
9.1x 8.8x 9.3x
8.9x 8.8x 9.2x 8.9x 9.2x 9.1x
8.0x
3
6.0x
9.5x 9.7x
8.8x 8.8x
12
8.0x
4
8.0x
9.9x
9.5x
8.7x 8.4x
10
10.0x
9.8x
9.2x
3
10.8x
/1
11.3x
31
10.9x
8/
11.8x
11.4x 11.7x
11.4x 11.6x
3
11.8x
/1
11.3x 11.1x 11.6x
31
10.7x
28
8.8x
11.5x
/1
9.9x 10.0x
10.0x
10.9x 10.8x
10.5x
12.3x
5/
12.0x
14.1x
13.1x 13.2x
13.3x
12.9x
12.8x 12.7x
11.7x
10.0x
8.6x 8.9x 8.6x 8.5x
8.0x
6.0x
14.0x
14.0x
14
4
10
8/
/3
31
0/
/1
4
/1
9.9x
10.5x
10.4x
9.5x
14
10
/3
0/
/1
8/
31
5/
31
/1
4
/1
28
2/
10.4x
4
9.4x
4
10.0x
9.2x 9.4x 9.2x
13
0/
/3
0/
/3
11
2
11
12
14
/3
10
31
8/
31
5/
0/
/1
4
/1
4
28
2/
0/
/3
11
31
8/
/1
13
3
/1
3
/1
5/
31
/1
28
Source: Capital IQ.
3
0.0x
9.8x
/1
0.0x
31
2.0x
8/
2.0x
3
4.0x
9.1x 8.9x 9.3x 8.9x 9.3x 9.0x 9.0x 8.9x 9.1x
8.5x 8.8x
/1
4.0x
4
6.0x
3
6.0x
2/
31
11.0x
8.0x
12
5/
11.6x
10.0x
8.0x
0/
4
12.0x
11.0x 11.3x 11.2x 10.9x
31
11.9x 11.8x 11.7x 11.9x 11.7x
11.0x
5/
11.8x 12.0x 12.0x 12.0x
11.2x
3
11.5x
/1
9.8x
10.8x 11.1x 10.7x
28
10.0x
11.2x
2/
10.9x 10.8x
10.2x
2/
11
INDUSTRIAL EQUIPMENT
12.0x
28
0/
/3
31
8/
INDUSTRIAL DISTRIBUTION
/1
13
3
/1
3
/1
/1
28
2/
10
11
/3
/3
0/
0/
14
4
8/
31
31
/1
/1
4
28
5/
11
2/
/3
0/
/1
13
3
31
8/
31
5/
28
2/
/1
3
/1
3
/1
12
0/
/3
11
31
0.0x
5/
0.0x
12
2.0x
4
4.0x
2.0x
3
6.0x
4.0x
/3
31
31
5/
CONSUMER DURABLES
14.0x
11
/1
4
28
2/
11
8/
/3
31
0/
/1
13
3
/1
3
/1
31
5/
11
2/
/3
28
0/
/1
12
14
/3
10
8/
31
31
0/
/1
4
/1
4
28
5/
11
2/
/3
31
0/
/1
13
3
/1
3
/1
8/
2/
5/
28
31
/1
12
0/
/3
11
3
0.0x
4
2.0x
0.0x
3
4.0x
2.0x
4
6.0x
4.0x
Publicly Traded Companies
ENGINEERING & CONSTRUCTION
CONSUMER DURABLES
COMMERCIAL DURABLES
CEMENT, AGGREGATES
& CONCRETE
BUILDING MATERIALS
$ in millions (except for stock price)
Armstrong World Industries, Inc.
Beacon Roofing Supply, Inc.
Bluelinx Holdings Inc.
Builders FirstSource, Inc.
Fortune Brands Home & Security, Inc.
HD Supply Holdings, Inc.
Leggett & Platt, Incorporated
Masco Corporation
Owens Corning
Ply Gem Holdings, Inc.
Quanex Building Products Corporation
Trex Company, Inc.
USG Corporation
MEDIAN:
Astec Industries, Inc.
CEMEX, S.A.B. de C.V.
CRH plc
Eagle Materials Inc.
Martin Marietta Materials, Inc.
Vulcan Materials Company
MEDIAN:
Acuity Brands, Inc.
Herman Miller, Inc.
HNI Corporation
Hubbell Incorporated
Interface, Inc.
Kimball International, Inc.
Knoll, Inc.
Steelcase Inc.
Zep Inc.
MEDIAN:
Aaron's, Inc.
Bassett Furniture Industries Inc.
Dorel Industries Inc.
Ethan Allen Interiors Inc.
Flexsteel Industries, Inc.
Hooker Furniture Corporation
La-Z-Boy Incorporated
Mohawk Industries, Inc.
Stanley Furniture Company, Inc.
MEDIAN:
ABM Industries Inc.
Comfort Systems USA, Inc.
Dycom Industries, Inc.
EMCOR Group, Inc.
Fluor Corporation
Granite Construction Incorporated
Great Lakes Dredge & Dock Corp.
Jacobs Engineering Group Inc.
KBR, Inc.
MasTec, Inc.
MYR Group Inc.
Orion Marine Group, Inc.
Pike Electric Corporation
Primoris Services Corporation
Quanta Services, Inc.
Sterling Construction Co., Inc.
Team, Inc.
Tutor Perini Corporation
MEDIAN:
Market Data
Ticker
AWI
BECN
BXC
BLDR
FBHS
HDS
LEG
MAS
OC
PGEM
NX
TREX
USG
ASTE
CX
ISE:CRG
EXP
MLM
VMC
AYI
MLHR
HNI
HUB.B
TILE
KBAL
KNL
SCS
ZEP
AAN
BSET
DII.B
ETH
FLXS
HOFT
LZB
MHK
STLY
ABM
FIX
DY
EME
FLR
GVA
GLDD
JEC
KBR
MTZ
MYRG
ORN
PIKE
PRIM
PWR
STRL
TISI
TPC
Stock Price
% of
10/31/14 52-Week High
$48.42
78.2%
27.67
66.9%
1.20
60.6%
5.93
63.1%
43.25
90.3%
28.84
97.5%
39.38
99.2%
22.07
88.6%
32.06
68.7%
11.35
61.5%
20.02
93.5%
43.00
99.0%
26.86
74.2%
78.2%
$37.91
82.4%
12.30
89.0%
22.13
80.8%
87.43
82.7%
116.92
85.7%
61.71
88.8%
84.2%
$139.43
95.3%
32.00
97.8%
46.65
98.2%
113.41
89.1%
15.99
71.2%
14.09
70.1%
19.89
98.0%
17.72
98.8%
16.06
80.1%
95.3%
$24.76
67.4%
17.38
98.0%
31.04
83.4%
28.30
89.8%
34.31
84.8%
15.29
85.9%
22.86
73.2%
142.04
91.4%
2.90
74.0%
84.8%
$27.64
93.7%
15.36
73.3%
31.39
92.3%
44.13
91.9%
66.34
79.0%
36.91
91.0%
6.99
74.0%
47.45
70.9%
19.08
54.0%
28.64
63.9%
25.94
95.0%
10.96
81.2%
11.94
99.4%
28.72
85.9%
34.08
90.9%
8.82
71.3%
42.14
87.6%
28.01
86.2%
86.0%
Equity
Value
$2,658
1,365
107
582
6,823
5,644
5,419
7,863
3,770
770
751
1,376
3,887
$2,658
$869
15,109
16,361
4,395
7,824
8,078
$7,951
$5,924
1,904
2,071
6,747
1,066
691
968
2,149
369
$1,904
$1,790
182
1,001
819
254
164
1,201
10,346
43
$819
$1,541
569
1,068
2,857
10,364
1,445
419
6,314
2,771
2,345
553
302
383
1,484
7,388
166
867
1,362
$1,404
Total
Enterprise
Value
$3,569
1,652
583
898
7,335
11,065
6,177
9,941
5,954
1,647
618
1,375
5,795
$3,569
$853
31,784
21,137
4,696
9,369
9,857
$9,613
$5,725
2,202
2,203
6,693
1,273
555
1,214
2,205
585
$2,202
$2,337
142
1,452
823
256
127
1,075
12,630
24
$823
$1,828
586
1,505
2,774
8,974
1,387
666
6,403
1,876
3,503
499
289
579
1,541
7,220
176
912
2,050
$1,523
Source: Capital IQ.
Bolded companies represent BB&T Capital Markets Equity Research coverage. Past performance is no guarantee of future results.
3
Financial Performance
LTM
Total
EBITDA
Sales
EBITDA
Margin
$2,734
$286
10.5%
2,284
135
5.9%
2,020
23
1.2%
1,576
60
3.8%
4,383
535
12.2%
8,810
773
8.8%
3,957
444
11.2%
8,455
968
11.4%
5,293
663
12.5%
1,419
103
7.2%
996
59
5.9%
381
77
20.1%
3,685
479
13.0%
$2,734
$286
10.5%
$960
$75
7.8%
15,395
2,660
17.3%
25,119
1,622
6.5%
970
255
26.3%
2,391
508
21.3%
2,919
536
18.4%
$2,655
$522
17.8%
$2,394
$344
14.4%
1,924
213
11.1%
2,117
169
8.0%
3,317
590
17.8%
983
105
10.7%
1,285
68
5.3%
994
93
9.3%
3,074
252
8.2%
692
54
7.9%
$1,924
$169
9.3%
$2,519
$213
8.4%
329
19
5.8%
2,544
169
6.6%
756
93
12.2%
443
33
7.5%
233
16
7.1%
1,379
118
8.6%
7,776
1,198
15.4%
96
(8)
NM
$756
$93
8.0%
$4,971
$183
3.7%
1,385
56
4.1%
1,812
180
9.9%
6,443
354
5.5%
22,368
1,368
6.1%
2,284
93
4.1%
763
79
10.3%
12,619
707
5.6%
6,604
(154)
NM
4,537
414
9.1%
932
86
9.2%
385
30
7.7%
811
69
8.6%
2,075
184
8.8%
7,090
731
10.3%
641
(14)
NM
763
76
10.0%
4,169
294
7.1%
$2,179
$136
8.1%
Valuation Multiples
TEV/LTM
Total
Sales
1.3x
0.7x
0.3x
0.6x
1.7x
1.3x
1.6x
1.2x
1.1x
1.2x
0.6x
3.6x
1.6x
1.2X
0.9x
2.1x
0.8x
4.8x
3.9x
3.4x
2.7X
2.4x
1.1x
1.0x
2.0x
1.3x
0.4x
1.2x
0.7x
0.8x
1.1X
0.9x
0.4x
0.6x
1.1x
0.6x
0.5x
0.8x
1.6x
0.3x
0.6X
0.4x
0.4x
0.8x
0.4x
0.4x
0.6x
0.9x
0.5x
0.3x
0.8x
0.5x
0.8x
0.7x
0.7x
1.0x
0.3x
1.2x
0.5x
0.6X
EBITDA
12.5x
12.3x
NM
14.9x
13.7x
14.3x
13.9x
10.3x
9.0x
16.0x
10.4x
17.9x
12.1x
13.1X
11.4x
11.9x
13.0x
18.4x
18.4x
18.4x
15.7X
16.6x
10.3x
13.0x
11.3x
12.1x
8.1x
13.1x
8.8x
10.8x
11.3X
11.0x
7.5x
8.6x
8.9x
7.7x
7.7x
9.1x
10.5x
NM
8.7X
10.0x
10.4x
8.4x
7.8x
6.6x
14.9x
8.5x
9.1x
NM
8.5x
5.8x
9.8x
8.4x
8.4x
9.9x
NM
12.0x
7.0x
8.5X
EBIT
19.3x
15.9x
NM
17.2x
16.8x
19.8x
18.8x
12.4x
16.3x
29.8x
NM
22.4x
17.9x
17.9X
16.9x
20.1x
NM
25.3x
NM
NM
20.1X
19.0x
12.9x
17.7x
12.9x
15.7x
15.2x
16.5x
11.5x
16.6x
15.7X
18.0x
12.1x
11.5x
11.1x
8.9x
8.9x
11.3x
14.7x
NM
11.4X
14.4x
16.2x
17.7x
10.0x
7.6x
NM
20.4x
11.1x
NM
13.2x
9.1x
NM
19.4x
11.9x
13.1x
NM
16.7x
8.7x
13.2X
Publicly Traded Companies
INDUSTRIAL EQUIPMENT
INDUSTRIAL DISTRIBUTION
FLOW CONTROL
$ in millions (except for stock price)
Calgon Carbon Corporation
CIRCOR International, Inc.
CLARCOR Inc.
Colfax Corporation
Donaldson Company, Inc.
ESCO Technologies Inc.
Flowserve Corporation
Gorman-Rupp Company
Graco Inc.
Mueller Water Products, Inc.
Nordson Corporation
Pall Corporation
Polypore International, Inc.
Watts Water Technologies, Inc.
Xylem Inc.
MEDIAN:
Airgas, Inc.
Anixter International Inc.
Applied Industrial Technologies, Inc.
DXP Enterprises, Inc.
Fastenal Company
Houston Wire & Cable Company
Lawson Products, Inc.
MSC Industrial Direct Co., Inc.
Watsco, Inc.
WESCO International, Inc.
Wolseley plc
W.W. Grainger, Inc.
MEDIAN:
Barnes Group Inc.
Belden Inc.
Columbus McKinnon Corporation
General Cable Corporation
Global Power Equipment Group Inc.
Illinois Tool Works Inc.
Lincoln Electric Holdings, Inc.
NN, Inc.
Regal-Beloit Corporation
Rexnord Corporation
Timken Company
MEDIAN:
Market Data
Ticker
CCC
CIR
CLC
CFX
DCI
ESE
FLS
GRC
GGG
MWA
NDSN
PLL
PPO
WTS
XYL
ARG
AXE
AIT
DXPE
FAST
HWCC
LAWS
MSM
WSO
WCC
WOS
GWW
B
BDC
CMCO
BGC
GLPW
ITW
LECO
NNBR
RBC
RXN
TKR
Stock Price
% of
10/31/14 52-Week High
$21.03
90.9%
75.15
90.1%
66.96
99.7%
54.38
72.2%
41.58
95.1%
38.02
99.6%
67.99
82.7%
31.74
80.6%
78.50
98.3%
9.87
95.0%
76.55
90.1%
91.42
99.2%
43.92
90.1%
60.63
92.1%
36.36
90.9%
90.9%
$111.54
97.1%
85.17
73.5%
48.81
92.8%
66.29
56.7%
44.04
84.4%
13.56
93.7%
24.08
95.9%
80.97
83.8%
101.62
96.4%
82.41
87.0%
53.05
93.8%
246.80
90.4%
91.6%
$36.56
89.3%
71.19
89.8%
28.41
91.7%
14.17
40.9%
13.63
65.2%
91.05
99.6%
72.48
95.0%
25.00
80.8%
70.97
88.3%
29.55
42.99
95.5%
61.8%
89.3%
Equity
Value
$1,119
1,328
3,356
6,726
5,753
1,000
9,268
834
4,668
1,577
4,830
9,764
1,972
2,134
6,613
$3,356
$8,313
2,797
2,025
958
13,055
239
209
4,988
3,300
3,665
13,776
16,828
$3,483
$1,991
3,078
568
690
233
35,595
5,630
472
3,207
2,995
3,902
$2,995
Total
Enterprise
Value
$1,134
1,247
3,707
8,332
5,760
1,008
10,285
817
4,733
1,963
5,415
9,689
2,471
2,167
7,324
$3,707
$10,688
3,951
2,297
1,438
13,044
295
218
5,278
3,894
5,072
14,962
17,048
$4,511
$2,467
4,168
605
2,033
268
38,310
5,442
526
3,572
4,656
4,210
$3,572
Source: Capital IQ.
Bolded companies represent BB&T Capital Markets Equity Research coverage. Past performance is no guarantee of future results.
4
Financial Performance
LTM
Total
EBITDA
Sales
EBITDA
Margin
$549
$100
18.2%
837
109
13.1%
1,397
256
18.3%
4,589
634
13.8%
2,473
425
17.2%
524
83
15.8%
4,886
872
17.9%
422
64
15.3%
1,187
342
28.8%
1,185
184
15.5%
1,646
408
24.8%
2,789
625
22.4%
649
139
21.4%
1,513
195
12.9%
3,907
660
16.9%
$1,397
$256
17.2%
$5,182
$954
18.4%
6,375
403
6.3%
2,557
203
7.9%
1,431
136
9.5%
3,621
825
22.8%
393
28
7.0%
281
3
0.9%
2,787
466
16.7%
3,895
311
8.0%
7,774
510
6.6%
22,170
1,430
6.5%
9,831
1,557
15.8%
$3,758
$434
8.0%
$1,243
$257
20.7%
2,209
289
13.1%
595
70
11.8%
6,094
163
2.7%
506
36
7.1%
14,534
3,260
22.4%
2,844
519
18.3%
425
50
11.8%
3,209
433
13.5%
2,083
4,369
$2,209
396
656
$289
19.0%
15.0%
13.5%
Valuation Multiples
TEV/LTM
Total
Sales
2.1x
1.5x
2.7x
1.8x
2.3x
1.9x
2.1x
1.9x
4.0x
1.7x
3.3x
3.5x
3.8x
1.4x
1.9x
2.1X
2.1x
0.6x
0.9x
1.0x
3.6x
0.7x
0.8x
1.9x
1.0x
0.7x
0.7x
1.7x
0.9X
2.0x
1.9x
1.0x
0.3x
0.5x
2.6x
1.9x
1.2x
1.1x
EBITDA
11.3x
11.4x
14.5x
13.1x
13.6x
12.1x
11.8x
12.7x
13.8x
10.7x
13.3x
15.5x
17.8x
11.1x
11.1x
12.7X
11.2x
9.8x
11.3x
10.5x
15.8x
10.7x
NM
11.3x
12.5x
9.9x
10.5x
10.9x
10.9X
9.6x
14.4x
8.6x
12.5x
7.5x
11.8x
10.5x
10.5x
8.2x
EBIT
16.1x
13.9x
17.5x
16.7x
18.3x
14.9x
13.5x
16.3x
15.5x
15.4x
15.5x
19.0x
29.3x
14.8x
14.3x
15.5X
16.8x
10.5x
13.4x
13.4x
17.3x
12.0x
NM
13.2x
13.3x
11.2x
12.6x
12.4x
13.2X
14.1x
21.5x
10.2x
NM
10.4x
13.5x
12.1x
15.6x
12.1x
2.2x
1.0x
1.2X
11.8x
6.4x
10.5X
16.3x
8.6x
12.8X
M&A Activity
Date
Target Name
Target Description
Acquirer
Seller
BUILDING MATERIALS
10/27/14
TMI, LLC
Pittsburgh, Pa.-based manufacturer of flexible polyvinyl chloride
(PVC) and energy control strip doors.
River Associates Investments, LLC
ShoreView Industries
10/23/14
Peterson Industries, Inc.
Miami, Fla.-based manufacturer and distributor of tub
enclosures, shower enclosures and doors, mirror closet doors,
and sliding glass patio doors.
Aldora Aluminum and Glass
Products Inc.
Private
10/19/14
TRK Design Company LLC
Marblehead, Mass.-based designer and manufacturer of
kitchens, bathrooms, homes and custom cabinetry.
Regatta Construction, Inc.
Private
10/16/14
Fort Knox Security Services And SW
Security Services
Fort Knox, Ky.-based manufacturer of home security solutions.
Central Security Group, Inc.
Private
10/16/14
Sutton-Clark Supply, Inc., Fire
Suppression Division
Richmond, Va.-based seller of fire suppression systems.
Statewide Fire Protection, LLC
Sutton-Clark Supply, Inc.
10/15/14
Wholesale Roofing Supply Houston, Inc.
Grand Prairie, Tex.-based distributor of residential and
commercial roofing products.
Beacon Roofing Supply, Inc.
Dallas Wholesale Builders Supply, Inc.
10/1/14
S&S Fire Suppression Systems, Inc.
Tappan, N.Y.-based provider of design, installation, inspection,
and maintenance of fire suppression systems.
Davis-Ulmer Sprinkler Co., Inc.
Private
10/21/14
Custom Crete Inc, 11 Volumetric
Ready Mixed Concrete Facilities and
61 Volumetric Ready Mixed Trucks
Dallas, Tex.-based ready mixed concrete facilities.
Redi-Mix, L.P.
Custom Crete Inc.
10/9/14
Colorado County Sand & Gravel And
Concrete Supply of Topeka
Topeka, Kans.-based manufacturer of sand and gravel aggregates.
Summit Materials, LLC
Private
10/4/14
VantaCore Partners LP
Philadelphia, Pa.-based manufacturer and supplier of
aggregates ranging from graded limestone to washed sand,
gravel, and asphalt.
Natural Resource Partners LP
Kayne Anderson Energy Development Company
10/13/14
Bell'O International Corporation
Morganville, N.J.-based designer and manufacturer of home
theater furniture.
Twin-Star International, Inc.
Florida Capital Partners, Inc.
10/2/14
Tell Manufacturing, Inc.
Lititz, Pa.-based manufacturer and distributor of commercial
and residential locks and door hardware.
Hardware and Home Improvement
Group
Private
10/1/14
Vermont Castings Group
Paris, Ky.-based manufacturer and supplier of hearth products
for gas, wood burning, and electric fireplaces.
Hearth & Home Technologies LLC
Private
CEMENT, AGGREGATES & CONCRETE
CONSUMER DURABLES
ENGINEERING & CONSTRUCTION
10/31/14
Parsons Brinckerhoff Group Inc.
New York, N.Y.-based multinational infrastructure engineering
and design firm.
WSP Global Inc.
Balfour Beatty plc
10/21/14
Tarragon Homes LLC
Austin, Tex.-based provider of homebuilding services.
AVEW Holdings Inc.
Private
10/20/14
WesTower Communications Inc.
Orlando, Fla.-based designer and constructor of communication
towers that offers site development, and project and
construction management.
MasTec, Inc.
Exchange Income Corporation
10/20/14
Tower 16 Inc. and SCE, Inc.
Chantilly, Va.-based provider of wireless infrastructure design,
project management, site acquisition, management, and
construction services.
S & N Communications, Inc.
Private
10/20/14
Sun & Sun Industries Inc.
Santa Ana, Calif.-based provider of energy efficient lighting,
relamping, and retrofit services for businesses and government
facilities in the U.S.
Eco-Shift Power Corp.
Private
10/17/14
Callison, LLC
Seattle, Wash.-based provider of architecture and design
services for luxury and specialty retail, commercial and
corporate interiors, department stores and offices.
ARCADIS NV
Blue Point Capital Partners
10/17/14
URS Corporation
San Francisco, Calif.-based provider of engineering,
construction, and technical services to public agencies and
private sector clients.
AECOM Technology Corporation
Publicly Held (NYSE: URS)
10/14/14
Power Design, Inc., Data Center
St. Petersburg, Fla.-based provider of electrical infrastructure
Energy Services Business and Certain design, implementation and commissioning service to data
Related Assets
center owners.
PowerSecure, Inc.
Power Design, Inc.
10/9/14
Asheville Maintenance and
Construction, Inc. , Electrical and
General Contracting Divisions
Arden, N.C.-based provider of general contracting, industrial,
and commercial construction services.
Imoco Inc.
Asheville Maintenance and Construction, Inc.
10/9/14
Omland Engineering Associates, Inc.
Cedar Knolls, N.J.-based provider of site development,
municipal, planning and landscape architecture, and traffic and
transportation engineering services.
Bowman Consulting Group, Ltd.
Private
10/9/14
COCAT Restoration & Reconstruction,
LLC
Denver, Colo.-based provider of disaster restoration services for
residential, multi-family, commercial, and industrial properties.
Comprehensive Risk Services, LLC
Private
10/7/14
AmQuip Crane Rental LLC
Trevose, Pa.-based provider of crane rental services for all
terrain, boom truck, carry deck, crawler, hydraulic truck, rough
terrain, and tower cranes.
Clearlake Capital Group, LLC
Altpoint Capital Partners LLC
10/7/14
Schuff International, Inc.
Phoenix, Ariz.-based steel fabrication and erection contractor.
HC2 Holdings, Inc.
Private
Source: Capital IQ.
5
M&A Activity
Date
Target Name
Target Description
Acquirer
Seller
ENGINEERING & CONSTRUCTION
10/6/14
Deer Valley Corporation
Tampa, Fla.-based designer, manufacturer, and seller of factory
built homes primarily in the Southeastern and South Central
regions of the U.S.
Peerless Systems Corp.
Publicly Held (OTC: DVLY)
10/3/14
Stark Sandblasting & Painting
Company and Southern Insulation,
Inc.
Canton, Ohio-based provider of surface preparation and
protective coatings services for large architectural, commercial,
and industrial projects.
Apache Industrial Services, Inc.
Private
10/3/14
Cliff's Heating & Air Conditioning Inc.
Mechanicsville, Md.-based provider of industrial heating and
cooling products and services in the Southern Maryland area.
Southern Pride Service Inc.
Private
10/2/14
MC², Inc., South Florida Business
Operations
Sanford, Fla.-based provider of building automation, energy
management, system integration, access control, and CCTV
solutions.
Advanced Control Corporation
MC2, Inc.
10/2/14
Oakmont Home Builders, Inc.
Charlotte, N.C.-based developer and builder of homes.
LGI Homes, Inc.
Private
10/1/14
L&L Maintenance Company and L&L
Cleanroom Construction
Royse City, Tex.-based manufactur and installer of modular wall
systems and ceiling grids.
AM Technical Solutions, Inc.
Private
10/1/14
Orth-Rodgers & Associates, Inc.
Newtown Square, Pa.-based provider of transportation
engineering, planning, and environmental services.
Burns Engineering, Inc.
Private
10/1/14
WHR Architects, Inc.
Houston, Tex.-based provider of architecture, interior design,
and technology planning services for the healthcare, science,
and education sectors.
EYP Architecture & Engineering, P.C.
Private
10/1/14
Rubeling & Associates Inc
Towson, Md.-based provider of architecture and interior design
services for master planning, site evaluation, feasibility studies,
and conceptual budgets.
Johnson, Mirmiran & Thompson, Inc.
Private
10/1/14
Brigadier Pipelines Inc. and The LinkLine Group of Companies
Troy, Pa.-based natural gas distribution contractor, providing
a range of construction and maintenance services to the utility
industry in Canada and the U.S.
Southwest Gas Corporation; NPL
Construction Co.
Private
10/21/14
Paragon Water Systems, Inc.
Clearwater, Fla.-based original equipment/designer and manufacturer JZ Capital Partners Limited
in the water purification industry in the U.S. and China.
Private
10/20/14
Quench USA, Inc.
King of Prussia, Pa.-based designer, manufacturer, and installer
of bottleless water coolers for offices in North America.
Seven Seas Water Corporation
Private
10/15/14
Drinkable Air, Inc
Lauderdale Lakes, Fla.-based manufacturer of atmospheric water
generators that convert moisture from the air into drinking water.
Union Dental Holdings Inc.
Private
10/14/14
Westar Oilfield Rentals Inc.
Fort St. John, Canada-based supplier of support equipment for the oil
and gas fields in the Northern British Columbia region.
Enterprise Group, Inc.
Private
10/21/14
Neutronic Stamping & Plating Inc.
Fountain Valley, Calif.-based manufacturer of electronic contacts
to automotive and electronic, medical, defense, aerospace, and
telecommunications industries in the U.S. and internationally.
Summit Equity Group, LLC
Private
10/16/14
All Pressure Washers Inc.
Lake Mary, Fla.-based supplier of pressure washing equipment
for professional, industrial, commercial, homeowner, and rental
applications in the U.S. and internationally.
Water Cannon, Inc.
Private
10/14/14
Drake Manufacturing Services Co., LLC Warren, Ohio-based manufacturer of precision computer
numerical control (CNC) machine tools.
Uni-World Capital, L.P.
Private
10/7/14
TRJ, Inc.
Fort Worth, Tex.-based provider of machining, laser cutting,
welding, shearing, breaking, and assembly services.
Banyan Mezzanine Fund, L.P.
Southlake Equity Group
10/6/14
Sampla Belting Canada Ltd.
Milton, Canada-based manufacturer of conveyor and
transmission belts.
Sampla Belting North America LLC
Private
10/3/14
Easom Automation Systems, Inc.
Madison Heights, Mich.-based designer of transfer systems,
tool shuttles, conveyors, lifters, robot slides, turntables, weld
positioners, cymonic drives, weld cells, and weld systems.
Lincoln Electric Holdings Inc.
Private
10/3/14
R.E. Atckison Co., Inc., Hydraulic Jack
Manufacturing Business
Azusa, Calif.-based manufacturer of hydraulic jacks.
Columbus Jack Corporation
R.E. Atckison Co., Inc.
10/2/14
The HGA Group, Inc.
Brighton, Mich.-based manufacturer of equipment for the food
service industry.
Acosta, Inc.
Private
10/1/14
Frost Fighter Inc.
Winnipeg, Canada-based provider of indirect and direct fired
light duty diesel products and heaters.
Headwater Equity Partners
Ironbridge Equity Partners
FLOW CONTROL
INDUSTRIAL DISTRIBUTION
INDUSTRIAL EQUIPMENT
Source: Capital IQ.
6
Macroeconomic Stats
ISM – PURCHASING MANAGERS’ INDEX (PMI)1
MANUFACTURERS’ ORDERS ($ IN BILLIONS)2
70.0
$600
59.0
60.0
$502.0
$500
50.0
$400
40.0
$300
30.0
ISM – NEW ORDERS3
HOUSING STARTS (IN THOUSANDS)4
80.0
2,500
70.0
g
t’
’1
4
13
12
Au
Oc
Oc
t’
11
Oc
Oc
t’
t’
10
09
Oc
t’
08
t’
Oc
Oc
t’
06
t’
05
Oc
Oc
Oc
t’
t’
04
14
Oc
Oc
Oc
Oc
t’
t’
12
t’
11
t’
10
t’
Oc
Oc
t’
08
Oc
Oc
t’
t’
06
Oc
Oc
t’
t’
04
t’
Oc
13
$0
09
0.0
07
$100
05
10.0
07
$200
20.0
65.8
2,000
60.0
50.0
1,500
40.0
1,017
1,000
30.0
20.0
500
10.0
INDUSTRIAL PRODUCTION5
ARCHITECTURAL BILLINGS INDEX6
120.0
70.0
Se
Oc
p
t’
’1
4
13
12
Oc
t’
11
t’
Oc
Oc
t’
10
09
Oc
t’
08
t’
Oc
Oc
t’
06
Oc
t’
05
Oc
t’
Oc
t’
04
14
t’
Oc
Oc
Oc
t’
13
12
t’
11
Oc
t’
t’
10
09
Oc
Oc
Oc
t’
t’
08
07
Oc
Oc
Oc
t’
t’
06
05
t’
04
t’
Oc
07
0
0.0
60.0
105.1
100.0
55.2
50.0
40.0
80.0
30.0
20.0
60.0
10.0
’1
4
13
p
Se
Oc
t’
12
Oc
t’
11
t’
Oc
Oc
t’
10
09
t’
Oc
Oc
t’
08
07
Oc
t’
06
t’
Oc
Oc
t’
Oc
t’
04
4
’1
Se
p
13
Oc
t’
12
t’
11
t’
Oc
Oc
Oc
t’
10
09
t’
Oc
t’
08
07
t’
Oc
Oc
Oc
t’
06
05
Oc
t’
04
t’
Oc
05
0.0
40.0
CAPACITY UTILIZATION7
90.0%
79.3%
80.0%
70.0%
60.0%
50.0%
4
’1
p
Se
Oc
t’
13
12
Oc
t’
11
t’
Oc
Oc
t’
10
09
t’
Oc
Oc
t’
08
07
Oc
t’
06
t’
Oc
t’
Oc
Oc
t’
04
05
40.0%
(1) Source: Institute for Supply Management (ISM). Note: The PMI is a diffusion index. A reading above 50 represents expansion while a reading below 50 represents contraction. Data is seasonally adjusted.
(2) Source: U.S. Census Bureau. Note: Data is seasonally adjusted and annualized.
(3) Source: Institute for Supply Management (ISM). Note: The ISM - New Orders is a diffusion index. A reading above 50 represents expansion while a reading below 50 represents contraction. Data is seasonally adjusted.
(4) Source: U.S. Census Bureau. Note: Data is seasonally adjusted and annualized.
(5) Source: The Federal Reserve Board. Note: Data is seasonally adjusted.
(6) Source: The American Institute of Architects. Note: The ABI is a diffusion index. A reading above 50 represents expansion while a reading below 50 represents contraction. Data is seasonally adjusted.
(7) Source: The Federal Reserve Board. Note: Data is seasonally adjusted.
7
BB&T Capital Markets Commercial & Industrial Group
Recent Mergers & Acquisitions Advisory Activity
a portfolio company of
a portfolio company of
a portfolio company of
a portfolio company of
a portfolio company of
has been acquired by
has been acquired by
has been acquired by
has been acquired by
has been acquired by
a portfolio company of
a portfolio company of
has been recapitalized by
has been acquired by
has been acquired by
a portfolio company of
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
a portfolio company of
has been acquired by
has been acquired by
a portfolio company of
a portfolio company of
has been acquired by
has been acquired by
has been acquired by
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
has been acquired by
has been acquired by
a subsidiary of
portfolio company
a subsidiary of
portfolio company
has acquired certain
assets of
has been acquired by
has been acquired by
portfolio company
has been acquired by
a subsidiary of
8
has been acquired by
Commercial & Industrial Investment Banking
The BB&T Capital Markets Commercial and Industrial Investment Banking Group provides M&A and capital-raising services to
companies in the sector, including:
Building Materials
Cement, Aggregates & Concrete
n Commercial Durables
Consumer Durables
Engineering & Construction
n Flow Control
Industrial Distribution
Industrial Equipment
n
n
n
n
n
n
Public and Private Equity Financings
Public and Private Debt Financings
Investment Banking Services
Mergers & Acquisitions Advisory
losed more than 200 M&A deals
C
since 2006
n Focused on middle-market companies
n Services include sell-side M&A,
buy-side M&A, and fairness opinions
n
aised more than $27 billion through
R
public offerings of equity in 2013
n Nationally recognized equity research
analysts are supported by strong
institutional and retail sales and
trading capabilities
aised more than $85 billion as a lead
R
manager or co-manager in fixed-income
offerings in 2013
n One of the largest “Off-Wall Street”
fixed-income distribution agents in the
U.S., with more than 115 associates
n
n
Commercial & Industrial Group
Matt Gilman
Co-Head, Managing Director
804-782-8780
[email protected]
Ryan Mitchell
Co-Head, Managing Director
804-787-8240
[email protected]
Jonathan Brabrand
Managing Director
804-782-8898
[email protected]
Nicole Guarella
Vice President
804-782-8760
[email protected]
Andrew Latimer
Vice President
804-787-8278
[email protected]
Allan Cruickshanks
Vice President
804-343-3761
[email protected]
Patrick Warren
Associate Vice President
804-344-8370
[email protected]
Charles “Chip” Hogge
Associate Vice President
804-787-8270
[email protected]
Andrew Jones
Associate Vice President
804-782-2015
[email protected]
BB&T Capital Markets
BB&T Capital Markets offers a full spectrum of capital and advisory solutions including equity and debt underwriting, M&A advisory,
corporate banking, equity research and sales and trading. Headquartered in Richmond, Va., with offices throughout the U.S., we have
specific expertise within 11 distinct industry verticals including Aerospace, Defense & Government Services; Automotive Aftermarket;
Commercial & Industrial; Financial Services; Food & Agribusiness; Logistics & Transportation Services; Healthcare Finance; Education;
Energy; Real Estate; and Retail & Consumer. Our commitment to industry expertise, combined with our resources as one of the nation’s
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long-term success of each client.
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