What We’ve Been Doing

Transaction Spotlight

screen_shot_2018-06-11_at_5.06.38_pm.pngOverview: North America’s largest provider of food safety solutions and chemicals to the food processing industry

Key Learnings & Transaction Takeaways:

- Mission critical service offering with small ticket, big impact value proposition

- 100% contracted business creating highly stable, visible, and recurring revenue

- Significant competitive advantages associated with scale and market leadership

 

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Overview: Leader of franchise brands focused on repairing, maintaining, and enhancing consumers’ homes and businesses

Key Learnings & Transaction Takeaways:

- Compelling market dynamics in a massive, highly fragmented industry

- Powerful economic model with recurring revenue driven by franchise royalties

- Strong digital growth opportunity to serve as a one-stop-shop for homeowner services

     

    Other Representative HW&Co. Commercial & Industrial Services Transactions

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    What We've Been Reading

    JLL Acquires JCL International

    April 24, 2018

    Global real estate consulting firm JLL (NYSE: JLL) has acquired JCL International, a Philippine company that provides project management and construction services. “With our complementary service offerings and shared commitment to client service excellence, this is an outstanding fit for both companies," says Anthony Couse, CEO, JLL Asia Pacific. "For JLL, the acquisition will significantly expand our existing project and construction platform, giving us the ability to offer our clients even more services." Read more here.

    Darling Ingredients buys Kruger Commodities assets

    May 21, 2018

    Darling Ingredients Inc. (NYSE: DAR), an Irving, Texas-based developer and producer of sustainable natural ingredients, acquired substantially all of the assets of Kruger Commodities, Inc., an Omaha, Nebraska-based cooking oil and grease disposal firmThe deal will help Darling better serve its customers and growing feedstock demand from Diamond Green Diesel, its low carbon fuel facility. Read more here.

    Rentokil Steritech acquires advanced pest management

    May 21, 2018

    Rentokil Steritech, a Rentokil North America company, finalized a deal to acquire Elkton, Md.-based Advanced Pest Management (APM), a $6.9 million firm. The acquisition further expands Rentokil Steritech’s density in the Northeastern U.S. market. “The addition of APM’s local market leadership to our growing family of experts further enhances our ability to serve both residential and commercial customers in the Northeast,” said John Myers, president and CEO of Rentokil Steritech. “Jeremy and his team share our high-level commitment to customer experience and world-class pest control services and we are excited to have them onboard.” Read more here.

    What We’ve Been Hearing

    Excerpts From Recent Earnings Calls

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    “…We closed an acquisition of one plant industrial laundry operation in the Memphis, Tennessee market. We are excited about bringing this business into the UniFirst family and the additional opportunities that it will provide us in that part of the country. Business acquisitions have historically been an integral part of our growth strategy, and we'll continue to seek out opportunities that make sense for us and support our long-term business objectives..”

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    “…We closed on [the Copesan] transaction and expect [the business] to generate approximately $60mm of revenue for the remainder of 2018 and approximately $4mm of adjusted EBITDA, while we invest this year in improving the sales, marketing and commercial service processes for our legacy commercial business. We expect the adjusted EBITDA margin of the acquired business to move higher over the next three years toward our normal commercial account margins. Overall, the Copesan transaction is a key strategic step in anchoring a foundation to build a world-class commercial pest control business...”

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    “The acquisition pipeline remains robust and we continue to look for opportunities that surpass our return criteria and create value for our shareholders… Our plan is to focus on delivering excellent customer service and directing our sales efforts and growth capital to the portions of the U.S. and Canadian economies that are seeing the strongest economic development and generating the results that we expect. Our traditional solid waste performance is as good as we have seen it.”

     

    Public Comparables – Market Performance

    Public Comparables 5-Year Price Index (’13 – ’18)*

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    Public Comparables TEV/LTM EBITDA (’13 – ’18)*

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    *As of May 31, 2018

    Public Comparables – Index

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    Information included in this industry update was sourced from Factset.