What We’ve Been Doing
International Association of Venue Managers – 2018 Venue Connect Conference
In July, Harris Williams’ Business Services team attended the International Association of Venue Managers (IAVM) 2018 VenueConnect conference in Toronto. The event gathered venue managers, products, and service providers serving the entertainment industry, including stadiums, arenas, convention centers, and theaters. The venue management industry continues to demonstrate strong growth through continued demand for live sports and entertainment. Panelists during the conference discussed how the impact of the “expression economy,” where consumers seek in-person, shareable experiences, is influencing demand for live sports and entertainment events, which further supports demand for products and services that utilize these types of venues.
Harris Williams advised SMG Holdings, Inc., one of the leading global managers of convention centers, stadiums, arenas, theatres, performing arts centers and other venues, on its investment from Onex Corporation. Read more here.
What We’ve Been Reading
“MCR Facility Services Acquired By The Service Companies”
MCR Facility Services announced that it has been acquired by The Service Companies, Inc, the nation’s premier provider and leader of managed services, food & beverage staffing and specialty cleaning services for the hospitality and gaming industries. “This is a tremendous opportunity for MCR to partner with an industry leader who recognizes the same opportunities we do for enhancing the client service provider experience,” said Mike Latham, President and CEO of MCR. “Becoming a part of The Service Companies now provides MCR with the strategic resources to more effectively meet our customers’ needs.” Read more here.
“RiverRoad Waste Solutions Acquired By Rubicon Global”
Rubicon Global, an Atlanta, Georgia-based waste management startup has acquired New Jersey waste and recycling business RiverRoad Waste Solutions for an undisclosed price. “This is a rather surprising move as Rubicon has long marketed itself as the ‘Uber for trash,’ and being a waste brokerage is a descriptor that the company has long resisted. RiverRoad Waste is a registered waste broker, meaning the company brokers agreements between business customers and trade waste removal companies,” writes Fortune. Read more here.
What We’ve Been Hearing
Excerpts From Recent Earnings Calls
“…Acquisitions net of divestitures yielded 2.1% revenue growth, as we continue to benefit from the carryover of acquisitions completed during 2017, and six small tuck-in acquisitions year-to-date 2018. Our pipeline remains healthy with most of our current targets located in existing markets that improve route density and drive new volume to our disposal facilities. While the timing on when deals close varies, we believe an important part of our value proposition to shareholders is completing acquisitions at disciplined multiples, and we anticipate a more active second half of 2018...”
“…As part of our 2021 plan, we set a goal to grow revenues by $20 million to $40 million per year through acquisitions or development activity for the next three years. Year-to-date, we've acquired over $19 million in revenues, and we are actively working on another $40 million of potential revenues to be acquired in our near-term pipeline. Overall, our mid-term acquisition pipeline remains robust and we believe there are over $500 million of acquisition opportunities across our Northeast footprint that could be great strategic fits as direct tuck-ins or new market opportunities…”
Public Comparables – Market Performance
Public Comparables 5-Year Price Index (’13 – ’18)*
Public Comparables TEV/LTM EBITDA (’13 – ’18)*
* As of July 4, 2018
Information included in this industry update was sourced from Factset.
The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.