Janney PDF

INDUSTRIALS
Q UARTERLY N EWSLETTER
ADVISORY SERVICES PRIVATE PLACEMENTS
PUBLIC OFFERINGS FAIRNESS OPINIONS
INDUSTRIALS
INDUSTRIALS
Janney Montgomery Scott LLC served as exclusive financial advisor to CMS Small-Cap in its sale of
Multi-Flow Industries (Multi-Flow) to Falconhead Capital, a private equity firm based in New York City.
Founded in 1937, Multi-Flow is a leading independent distributor of fountain beverage solutions in the
United States. Janney managed the marketing, negotiation and due diligence phases of the transaction
on behalf of CMS Small-Cap and Multi-Flow, working closely with the management team and
shareholders throughout the sale process.
ii
INDUSTRIALS
Q4 2015: INSIDE THIS ISSUE
Janneys Top Manufacturing Trends for 2016
1-2
U.S. Macroeconomic Environment
Currencies and Commodities
Tenor of the Industrial Market
Industry Valuation Overview
Public Comparables
7 10
M&A Activity
11
Middle Market M&A Conditions
12
Equity Offerings
13
Investment Banking Capabilities
14
Janney Montgomery Scott LLC is a US broker-dealer registered with the US Securities and Exchange Commission and a member of the New York Stock Exchange, the
Financial Industry Regulatory Authority and the Securities Investor Protection Corp. Janney Montgomery Scott and Janney are trade-names for Janney Montgomery Scott
LLC and its affiliates. Janney provides investment banking, private placement, merger, acquisition and divestiture services, which includes investment advisory, fairness
opinion, solvency opinion, valuation opinion, restructuring advisory and portfolio management services.
Janney gathers its data from sources it considers reliable; however, it does not guarantee the accuracy or completeness of the information provided within this publication.
The materials presented reflect information known to the authors at the time this publication was written, which is subject to change. Janney makes no warranties,
expressed or implied, regarding the accuracy of this material. Officers, directors and partners in the Janney group of companies may have investments in the securities of
the companies discussed herein. Janney or its affiliates may from time to time provide investment banking or related services to these companies. Like all Janney
employees, the authors of this publication receive compensation that is affected by overall firm profitability.
Any public companies included in the Janney indices are companies commonly used for industry information to show performance within a sector. These indices do not
include all public companies that could be categorized within the sector and were not created as benchmark, do not imply benchmarks and do not constitute
recommendations for a particular security and/or sector. The charts and graphs used in this report have been compiled by Janney solely for purposes of illustration. All
charts are current as of the date of this report.
This Quarterly Newsletter mentions a number of companies; however, none of these companies are the subject of the Newsletter. The companies mentioned may include
Janney financial advisory clients, as well as companies involved in transactions where Janney has provided these services to other participants in the transactions.
BRENDAN E. TIERNEY
JOSEPH M. REICHERT
BRIAN W. VAN DER WAAG
Managing Director
(215) 665-6261
btierney@janney.com
Director
(215) 665-6035
jreichert@janney.com
Director
(215) 665-4452
bvanderwaag@janney.com
iii
NDUSTRIALS
VERVIEW
Q4 2015
Janneys Top Manufacturing Trends for 2016

ADDITIVE MANUFACTURING
AGRICULTURE
CONSTRUCTION, ENGINEERING
& CONSULTING
DISTRIBUTION
ELECTRONIC COMPONENTS
/ EQUIPMENT
FLOW CONTROL
INFRASTRUCTURE COMPONENTS
& SERVICES
LARGE DIVERSIFIED
SPECIALTY CHEMICALS
WATER SOLUTIONS
Brendan E. Tierney
Managing Director
btierney@janney.com
(215) 665-6261
Joseph M. Reichert
Director
(215) 665-6035
With the advancement of technology and increased focus on consumers, the

manufacturing industry is shedding its previous image of dirty factories, while embracing
the reality of smart factories that are equipped with refined equipment and progressive
technology systems. In anticipation of the year ahead, we look at the top six
manufacturing trends that we anticipate will shape (or in some cases continue to shape)
the industry in 2016.
SMAC Stack
SMAC (Social, Mobile, Analytics and Cloud) Stack has become an essential technology
structure for businesses. In pursuit of higher customer engagement and greater growth
opportunities, enterprises are incorporating these four technologies to extract, analyze
and act given the behavioral patterns and preferences of their customers. By forecasting
demand and providing a more interactive consumer experience, SMAC is opening doors
for innovation in the manufacturing industry.
Internet of Things
The manufacturing sector is being dramatically affected by the Internet of Things (IoT),
which allows devices to automatically connect and communicate information without the
need of human input (see Janneys Q2 2015 Industrials Newsletter). IoT enables
condition-based maintenance that reduces labor and service costs for businesses. This
instant communication of data, analysis and solutions positively impacts the industry by
increasing the efficiency, quality and visibility of manufacturing.
E-Commerce
A recent report by Frost & Sullivan, The Future of Parts and Service Retailing in the
Automotive Aftermarket, predicts that by 2025, 10 to 15 percent of all global parts sales
will be made online. The Equipment Manufacturing sector, especially in international
markets, will also be affected by this trend. E-Commerce is undermining the traditional
business-to-business model by providing consumers direct access to information and
enabling them to easily communicate their demands. E-Commerce also allows
manufacturers to decrease risk by experimenting with new products online, without
making a significant investment.
JANNEY MONTGOMERY SCOTT

www.janney.com
2015 Janney Montgomery Scott LLC
Member: NYSE, FINRA, SIPC
Capital Investment
Despite a slow economic recovery, recent government and industry reports point to an
uptick in capital investment funding. According to the International Federation of
Robotics: Since 2010, the demand for industrial robots has accelerated considerably
due to the ongoing trend toward automation and the continued innovative technical
improvements of industrial robots. The manufacturing industry is looking to capture
value by expanding investments into upgrading plants, equipment and technology.
These upgrades will work with innovation to improve speed to market, product
development and growth of manufacturing companies.
INDUSTRIALS OVERVIEW Page 1
Source: IndustryWeek, Manufacturing Global, Industry Research
Brian W. Van Der Waag

Director
(215) 665-4452
NDUSTRIALS
VERVIEW
Q4 2015
Janneys Top Manufacturing Trends for 2016 (continued)

Next-Shoring
AGRICULTURE
& CONSULTING
DISTRIBUTION
/ EQUIPMENT
FLOW CONTROL
& SERVICES
LARGE DIVERSIFIED
SPECIALTY CHEMICALS
WATER SOLUTIONS
As a result of rising wages in Asia, higher shipping costs and accelerating retailer and
consumer demands, businesses are moving towards the strategy of next-shoring.
Rather than outsourcing overseas, manufacturers are developing products closer to
where they will be sold. Next-shoring allows companies to replenish products on store
shelves, sell to consumers and free up manufacturing costs while boosting speed and
efficiency.
Additive Manufacturing
A holdover from 2015, additive manufacturing (3-D Printing) is expected to continue to
reshape the way engineers and designers approach product development and
consequently, altering the training of prospective employees in the industry. While the
stock market has recently turned its head on public valuations of 3-D printing
companies for the time being, this evolving technology has the capacity to produce
components made of metals, mixed materials, plastics and human tissue. In addition,
3-D Printing shortens lead times, improves product quality and reduces waste all of
which provide flexibility and cost savings to manufacturers.
Brendan E. Tierney
Managing Director
btierney@janney.com
(215) 665-6261
Joseph M. Reichert
Director
(215) 665-6035
Director
(215) 665-4452
www.janney.com
Source: IndustryWeek, Manufacturing Global, Industry Research
NDUSTRIALS
VERVIEW
Q4 2015
U.S. Macroeconomic Environment

U.S. Treasuries
Stock Markets
GDP Growth
Consumer Price Index
Unemployment
Housing Starts
AGRICULTURE
& CONSULTING
DISTRIBUTION
/ EQUIPMENT
FLOW CONTROL
& SERVICES
LARGE DIVERSIFIED
SPECIALTY CHEMICALS
WATER SOLUTIONS
Brendan E. Tierney
Managing Director
btierney@janney.com
(215) 665-6261
Joseph M. Reichert
Director
(215) 665-6035
Director
(215) 665-4452
www.janney.com
Source: Bloomberg, FactSet
NDUSTRIALS
VERVIEW
Q4 2015
Currencies and Commodities

YEN / USD
EUR / USD
GBP / USD
Natural Gas
Crude Oil (WTI)
Copper
AGRICULTURE
& CONSULTING
DISTRIBUTION
/ EQUIPMENT
FLOW CONTROL
& SERVICES
LARGE DIVERSIFIED
SPECIALTY CHEMICALS
WATER SOLUTIONS
( $ / MMBtu )
Brendan E. Tierney
Managing Director
btierney@janney.com
(215) 665-6261
Joseph M. Reichert
Director
(215) 665-6035
( $ / barrel )

Director
(215) 665-4452
www.janney.com
Source: Bloomberg, FactSet
( $ / MT )
NDUSTRIALS
VERVIEW
Q4 2015
Tenor of the Industrial Market

Purchasing Manager Index (PMI)
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
AGRICULTURE
& CONSULTING
January
DISTRIBUTION
March
February
FLOW CONTROL
# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
April
/ EQUIPMENT
# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
May
# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
June
# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
July
August
& SERVICES
September
LARGE DIVERSIFIED
November
October
December
# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
Contraction
Expansion
# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
# # # # # # #
# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
20 32 40 48 52 60 68 80
# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
SPECIALTY CHEMICALS
WATER SOLUTIONS
New Orders
Expansion
Contraction
Production
Expansion
Contraction
Brendan E. Tierney
Managing Director
btierney@janney.com
(215) 665-6261
Joseph M. Reichert
Director
(215) 665-6035
Suppliers Inventories
Expansion
Contraction
Customers Inventories
Expansion
Contraction

Director
(215) 665-4452
www.janney.com
Source: ISM
Note: Index above dotted line is generally consistent with expansion in the Census Bureaus figures.
NDUSTRIALS
VERVIEW
Q4 2015
Industry Valuation Overview

Stock Price Performance
AGRICULTURE
30 Day
& CONSULTING
2014
2015
14.8%
DISTRIBUTION
/ EQUIPMENT
1.2%
(8.2%)
FLOW CONTROL
(25.2%)
(26.1%)
(4.8%)
(11.9%)
(18.7%)
(20.0%)
(21.3%)
(21.9%)
(25.2%)
(7.4%)
(8.7%)
(10.7%)
(9.0%)
(9.2%)
(13.6%)
(16.1%)
& SERVICES
(5.2%)
(5.2%)
(6.6%)
(5.8%)
(8.0%)
(24.1%)
(27.3%)
(29.0%)
(33.3%)
LARGE DIVERSIFIED
SPECIALTY CHEMICALS
(49.3%)
WATER SOLUTIONS
(73.2%)
Additive
Manufacturing
Agriculture
Construction,
Engineering &
Consulting
Distribution
Electronic
Components /
Equipment
Flow Control
Infrastructure
Components &
Services
Large Diversified
Specialty Chemicals
Water Solutions
EBITDA Valuation Multiples

LTM
Brendan E. Tierney
Managing Director
btierney@janney.com
(215) 665-6261
2016E
13.0x
11.7x
11.6x
11.1x
10.7x
10.2x
9.4x
Joseph M. Reichert
Director
(215) 665-6035
2015A
9.8x 9.7x
10.6x
10.2x10.4x10.1x
9.9x
9.9x 9.8x
9.5x
10.4x10.5x
10.3x
9.8x
9.5x
9.0x
8.9x
8.0x
8.3x
7.0x
6.7x 6.7x 6.8x

Director
(215) 665-4452
www.janney.com
Additive
Manufacturing
Agriculture
Source: FactSet, Public Filings
Construction,
Engineering &
Consulting
Distribution
Electronic
Components /
Equipment
Flow Control
Infrastructure
Components &
Services
Large Diversified
Specialty Chemicals
Water Solutions
I
As of December 31, 2015
($ in millions, except per share data)
Market Statistics
% of
52 Week
High
Stock
Price
52 Week
High
Low
Average
Median
$1.65
8.69
10.04
7.06
63.69
23.48
4.49
$17.01
8.69
$10.28
32.81
17.52
9.95
78.16
81.05
10.40
$34.31
17.52
$1.55
8.52
6.19
6.49
57.62
22.58
4.33
$15.33
6.49
16.1%
26.5%
57.3%
71.0%
81.5%
29.0%
43.2%
46.3%
43.2%
Average
Median
$45.39
76.27
72.40
3.94
73.07
21.45
106.02
$56.93
72.40
$57.87
97.33
89.70
12.18
78.11
27.26
128.26
$70.10
78.11
$42.72
72.89
64.06
3.67
61.00
16.12
93.99
$50.64
61.00
$30.03
6.76
38.99
69.96
36.14
3.88
5.26
17.38
20.61
2.03
22.03
20.25
26.02
2.69
$21.57
20.43
$35.36
18.72
58.63
88.91
39.67
5.47
10.14
22.07
31.91
3.63
23.79
30.41
28.02
6.93
$28.83
25.91
$24.92
6.52
34.51
30.81
34.68
3.17
3.78
14.67
18.22
0.81
16.26
18.74
23.03
0.73
$16.49
17.24
Company
N D U S T R I A L S
Last Twelve Months
Market
Cap.
EBITDA
V E R V I E W
Valuation Metrics
Enterprise
Value
Revenue
$31
974
146
333
1,666
1,222
84
$637
333
$89
839
128
296
1,574
962
43
$562
296
$108
670
40
112
246
740
26
$278
112
$15
8
(22)
(7)
79
(25)
(7)
$6
(7)
13.5%
1.2%
NM
NM
32.1%
NM
NM
15.6%
13.5%
($1)
(58)
(32)
(6)
45
(1,234)
(9)
($185)
(9)
NM
NM
NM
NM
18.1%
NM
NM
18.1%
18.1%
0.8x
1.3x
3.2x
2.7x
6.4x
1.3x
1.6x
2.5x
1.6x
0.8x
1.3x
3.2x
2.7x
6.0x
1.4x
1.7x
2.5x
1.7x
0.8x
1.3x
2.4x
2.2x
4.7x
1.3x
1.3x
2.0x
1.3x
6.1x
NM
NM
NM
19.9x
NM
NM
13.0x
13.0x
5.5x
7.8x
NM
NM
17.9x
9.8x
NM
10.2x
8.8x
6.5x
6.9x
NM
NM
14.9x
7.3x
NM
8.9x
7.1x
NM
NM
NM
NM
37.2x
NM
NM
37.2x
37.2x
NM
NM
NM
NM
32.8x
NM
NM
32.8x
32.8x
NM
30.0x
NM
NM
26.4x
NM
NM
28.2x
28.2x
78.4%
78.4%
80.7%
32.3%
93.5%
78.7%
82.7%
75.0%
78.7%
$3,882
24,118
806
212
4,000
5,373
2,443
$5,833
3,882
$5,043
56,382
794
608
4,252
6,010
2,947
$10,862
4,252
$7,994
28,863
547
1,470
2,378
2,295
2,748
$6,613
2,378
$716
4,446
69
53
351
423
357
$916
357
9.0%
15.4%
12.6%
3.6%
14.8%
18.4%
13.0%
12.4%
13.0%
$282
1,939
26
(89)
202
153
111
$375
153
3.5%
6.7%
4.7%
NM
8.5%
6.7%
4.0%
5.7%
5.7%
0.6x
2.0x
1.5x
0.4x
1.8x
2.6x
1.1x
1.4x
1.5x
0.7x
2.2x
1.4x
0.4x
1.8x
2.6x
1.1x
1.5x
1.4x
0.7x
2.4x
1.5x
0.5x
1.7x
2.6x
1.1x
1.5x
1.5x
7.0x
12.7x
11.6x
11.6x
12.1x
14.2x
8.2x
11.1x
11.6x
7.7x
15.1x
11.0x
12.6x
11.8x
14.2x
8.7x
11.6x
11.8x
8.8x
NM
11.4x
12.6x
11.1x
12.3x
8.3x
10.7x
11.3x
14.2x
13.2x
32.6x
NM
20.6x
37.0x
22.8x
23.4x
21.7x
14.2x
13.2x
22.9x
NM
20.6x
19.5x
18.7x
18.2x
19.1x
18.5x
17.9x
25.6x
NM
18.5x
16.8x
16.4x
19.0x
18.2x
84.9%
36.1%
66.5%
78.7%
91.1%
70.9%
51.9%
78.7%
64.6%
55.9%
92.6%
66.6%
92.9%
38.8%
69.3%
68.8%
$4,547
133
4,089
2,272
933
200
104
1,388
425
19
1,138
3,096
1,536
167
$1,432
1,036
$8,693
110
6,342
2,777
944
317
193
2,563
394
22
1,302
3,412
1,597
335
$2,071
1,123
$17,990
1,016
13,026
2,171
537
700
718
4,415
1,041
144
1,920
7,730
1,719
1,351
$3,891
1,535
$1,004
16
1,250
281
82
43
(3)
292
92
(8)
126
475
187
(5)
$274
109
5.6%
1.6%
9.6%
12.9%
15.3%
6.1%
NM
6.6%
8.9%
NM
6.6%
6.1%
10.9%
NM
8.2%
6.6%
($155)
(29)
(288)
94
42
5
(62)
26
35
(11)
33
190
39
(81)
($12)
15
NM
NM
NM
4.3%
7.8%
0.7%
NM
0.6%
3.4%
NM
1.7%
2.5%
2.3%
NM
2.9%
2.4%
0.5x
0.1x
0.5x
1.3x
1.8x
0.5x
0.3x
0.6x
0.4x
0.2x
0.7x
0.4x
0.9x
0.2x
0.6x
0.5x
0.5x
0.1x
0.5x
1.4x
1.8x
0.5x
0.3x
0.6x
0.4x
N/A
0.7x
0.5x
0.9x
0.3x
0.6x
0.5x
0.5x
0.1x
0.5x
1.1x
1.7x
0.5x
0.3x
0.6x
0.4x
N/A
0.6x
0.4x
0.9x
N/A
0.6x
0.5x
8.7x
6.8x
5.1x
9.9x
11.5x
7.4x
NM
8.8x
4.3x
NM
10.3x
7.2x
8.5x
NM
8.0x
8.5x
8.3x
12.9x
5.1x
10.5x
10.9x
6.0x
NM
8.6x
4.8x
NM
9.6x
6.7x
8.3x
NM
8.3x
8.3x
7.8x
11.3x
5.7x
7.9x
9.6x
4.7x
5.0x
6.1x
4.6x
NM
6.7x
5.9x
7.6x
7.8x
7.0x
6.7x
NM
NM
NM
25.6x
22.7x
NM
NM
NM
12.3x
NM
34.4x
11.1x
40.7x
NM
24.5x
24.2x
9.8x
NM
6.7x
29.0x
20.8x
14.4x
NM
31.6x
15.9x
N/A
28.2x
18.4x
40.7x
NM
21.5x
19.6x
9.4x
NM
7.7x
17.9x
18.7x
8.6x
NM
12.4x
15.0x
N/A
16.0x
11.6x
14.2x
N/A
13.2x
13.3x
Earnings
$
%
LTM
EV / Revenue
2015E
2016E
LTM
EV / EBITDA
2015E
2016E
LTM
Price / EPS
2015E
2016E
Additive Manufacturing
ARC Group Worldwide, Inc.
3D Systems Corporation
ExOne Co.
Materialise NV Sponsored ADR
Proto Labs, Inc.
Stratasys Ltd.
voxeljet AG ADR
Agriculture
AGCO Corporation
Deere & Company
Lindsay Corporation
Titan International, Inc.
Toro Company
Trimble Navigation Limited
Valmont Industries, Inc.
Construction, Engineering & Consulting

AECOM
CDI Corp.
Chicago Bridge & Iron Co. NV
Dycom Industries, Inc.
ESCO Technologies Inc.
Hill International, Inc.
Layne Christensen Company
MasTec, Inc.
MYR Group Inc.
Pernix Group, Inc.
Primoris Services Corporation
Quanta Services, Inc.
Tetra Tech, Inc.
Willbros Group, Inc.
Average
Median
Source: FactSet, Bloomberg, Public Filings and Consensus Estimates
Page 7
I
Market Statistics
Stock
Price
Company
52 Week
High
Low
% of
52 Week
High
N D U S T R I A L S
Last Twelve Months
Market
Cap.
Enterprise
Value
Revenue
EBITDA
V E R V I E W
Valuation Metrics
Earnings
$
%
LTM
EV / Revenue
2015E
2016E
LTM
EV / EBITDA
2015E
2016E
LTM
Price / EPS
2015E
2016E
Distribution
Airgas, Inc.
Anixter International Inc.
Applied Industrial Technologies, Inc.
Beacon Roofing Supply, Inc.
Fastenal Company
HD Supply Holdings, Inc.
Houston Wire & Cable Company
MRC Global Inc.
MSC Industrial Direct Co., Inc. Class A
W.W. Grainger, Inc.
Watsco, Inc.
WESCO International, Inc.
$138.32
60.39
40.49
41.18
40.82
30.03
5.28
12.90
56.27
202.59
117.13
43.68
Average $65.76
Median
42.43
$138.93
88.18
45.34
43.16
47.40
36.69
12.10
16.87
81.24
255.22
131.89
76.10
$81.09
61.75
$87.97
56.66
37.63
23.21
35.50
27.02
5.15
10.37
55.01
190.83
104.92
40.04
$56.19
38.84
99.6%
68.5%
89.3%
95.4%
86.1%
81.8%
43.6%
76.5%
69.3%
79.4%
88.8%
57.4%
78.0%
80.6%
$9,987
1,991
1,592
2,426
11,825
6,010
89
1,318
2,717
12,720
3,543
1,840
$4,672
2,571
$12,757
2,662
1,884
2,604
12,061
10,327
127
2,305
3,107
14,359
4,089
3,206
$5,791
3,156
$5,358
6,024
2,691
2,515
3,869
7,526
327
5,074
2,886
10,006
4,086
7,652
$4,835
4,580
$977
354
223
159
914
834
17
321
454
1,628
349
473
$559
404
18.2%
5.9%
8.3%
6.3%
23.6%
11.1%
5.3%
6.3%
15.7%
16.3%
8.6%
6.2%
11.0%
8.4%
$367
133
111
62
516
238
6
93
229
765
157
237
$243
193
6.9%
2.2%
4.1%
2.5%
13.3%
3.2%
1.8%
1.8%
7.9%
7.6%
3.8%
3.1%
4.9%
3.5%
2.4x
0.4x
0.7x
1.0x
3.1x
1.4x
0.4x
0.5x
1.1x
1.4x
1.0x
0.4x
1.2x
1.0x
2.4x
0.4x
0.7x
1.0x
3.1x
1.4x
0.4x
0.5x
1.1x
1.4x
1.0x
0.4x
1.2x
1.0x
2.3x
0.3x
0.7x
0.7x
3.0x
1.3x
0.4x
0.6x
1.1x
1.4x
0.9x
0.4x
1.1x
0.8x
13.1x
7.5x
8.4x
NM
13.2x
12.4x
7.3x
7.2x
6.8x
8.8x
11.7x
6.8x
9.4x
8.4x
12.9x
7.4x
8.3x
NM
13.1x
11.8x
9.8x
9.8x
6.8x
9.3x
11.5x
7.3x
9.8x
9.8x
12.3x
5.9x
8.9x
8.4x
12.9x
10.7x
11.0x
11.8x
7.1x
9.5x
10.4x
7.8x
9.7x
10.0x
28.6x
15.1x
14.9x
33.2x
23.1x
12.2x
15.5x
15.5x
15.1x
17.8x
24.2x
9.6x
18.7x
15.5x
28.2x
14.1x
14.5x
29.8x
22.9x
17.6x
29.3x
19.8x
14.8x
17.4x
24.0x
10.4x
20.2x
18.7x
26.3x
11.7x
15.4x
22.4x
21.9x
12.4x
16.2x
30.4x
15.4x
17.3x
21.3x
11.4x
18.5x
16.8x
$23.96
27.03
76.61
36.32
51.89
63.41
58.52
171.43
88.70
11.32
$60.92
55.21
$27.14
39.56
80.00
43.40
72.23
76.93
80.95
174.09
111.48
17.34
$72.31
74.58
$17.57
26.75
68.86
33.05
50.33
55.76
55.46
131.45
83.47
10.60
$53.33
52.90
88.3%
68.3%
95.8%
83.7%
71.8%
82.4%
72.3%
98.5%
79.6%
65.3%
80.6%
81.0%
$1,418
1,253
5,862
3,251
3,760
940
2,614
9,951
3,144
137
$3,233
2,879
$1,834
1,420
6,409
2,750
3,750
910
4,218
10,787
3,848
93
$3,602
3,250
$1,227
959
2,045
2,479
2,653
560
3,512
3,595
2,320
234
$1,958
2,183
$181
127
507
396
340
78
520
824
387
22
$338
364
14.8%
13.2%
24.8%
16.0%
12.8%
14.0%
14.8%
22.9%
16.7%
9.5%
15.9%
14.8%
$11
59
275
309
154
45
46
464
201
(4)
$156
106
0.9%
6.1%
13.5%
12.5%
5.8%
8.1%
1.3%
12.9%
8.6%
NM
7.7%
8.1%
1.5x
1.5x
3.1x
1.1x
1.4x
1.6x
1.2x
3.0x
1.7x
0.4x
1.7x
1.5x
1.5x
1.5x
3.1x
1.1x
1.5x
1.6x
1.2x
3.2x
1.7x
0.4x
1.7x
1.5x
1.6x
1.4x
3.1x
1.1x
1.5x
1.6x
1.2x
3.0x
1.7x
0.4x
1.6x
1.5x
10.1x
11.2x
12.6x
6.9x
11.0x
11.6x
8.1x
13.1x
9.9x
4.2x
9.9x
10.6x
9.6x
10.8x
12.7x
6.8x
8.7x
11.0x
7.7x
12.8x
10.4x
4.2x
9.5x
10.0x
10.5x
9.3x
12.0x
6.4x
8.6x
10.3x
7.5x
11.6x
9.9x
4.0x
9.0x
9.6x
NM
22.2x
21.8x
9.5x
25.9x
21.1x
NM
21.9x
16.1x
NM
19.8x
21.8x
14.5x
18.4x
21.8x
14.4x
14.7x
21.1x
11.1x
21.3x
17.2x
22.2x
17.7x
17.8x
18.4x
15.9x
19.9x
13.2x
14.5x
20.0x
10.4x
18.9x
16.3x
13.4x
16.1x
16.1x
Electronic Components / Equipment

Actuant Corporation Class A
Franklin Electric Co., Inc.
IDEX Corporation
ITT Corporation
Lincoln Electric Holdings, Inc.
MTS Systems Corporation
Regal Beloit Corp
Snap-on Incorporated
Teledyne Technologies Incorporated
Vishay Precision Group, Inc.
Average
Median
Page 8
I
Market Statistics
% of
52 Week
High
Stock
Price
52 Week
High
Low
$63.20
7.68
42.15
49.68
23.35
68.50
28.66
42.08
72.07
64.15
49.53
9.33
$43.37
45.84
$70.68
15.38
60.13
67.04
53.47
77.08
38.47
62.86
80.35
83.97
68.75
90.43
$64.05
67.90
$42.09
6.91
39.63
46.54
22.00
61.97
27.15
39.85
64.79
61.48
48.21
8.34
$39.08
40.97
89.4%
49.9%
70.1%
74.1%
43.7%
88.9%
74.5%
66.9%
89.7%
76.4%
72.0%
10.3%
67.2%
73.1%
Aegion Corporation
$19.31
General Communication, Inc. Class A
19.78
Harsco Corporation
7.88
L. B. Foster Company
13.66
Nuverra Environmental Solutions, Inc.
0.51
Pure Technologies Ltd.
3.36
SUEZ Environnement Co. SA
18.75
Veolia Environnement SA
23.75
Westinghouse Air Brake Technologies Corporation 71.12
Average $19.79
Median
18.75
$22.32
21.68
18.60
51.15
6.27
6.95
21.10
24.51
102.39
$30.55
21.68
$15.32
12.92
7.87
10.36
0.50
2.94
16.65
16.80
68.89
$16.92
12.92
86.5%
91.2%
42.4%
26.7%
8.2%
48.4%
88.9%
96.9%
69.5%
62.1%
69.5%
Company
N D U S T R I A L S
Last Twelve Months
Market
Cap.
Enterprise
Value
Revenue
EBITDA
$12,078
261
695
2,479
2,901
3,132
3,802
5,507
4,030
3,662
8,928
381
$3,988
3,397
$13,793
426
752
2,771
4,281
3,843
4,234
6,964
4,296
4,743
12,047
1,525
$4,973
4,258
$9,469
342
711
1,481
4,112
2,186
2,313
4,660
1,267
1,689
6,491
2,581
$3,108
2,249
$700
708
631
141
14
179
10,174
13,381
6,862
$3,643
700
$902
2,098
1,476
315
483
171
10,174
11,212
6,896
$3,747
1,476
$1,355
966
1,828
647
430
83
19,000
31,675
3,296
$6,587
1,355
V E R V I E W
Valuation Metrics
Earnings
$
%
LTM
$1,613
45
81
255
542
366
365
810
339
394
1,078
47
$495
365
17.0%
13.3%
11.4%
17.2%
13.2%
16.7%
15.8%
17.4%
26.7%
23.4%
16.6%
1.8%
15.9%
16.7%
$203
(1)
12
135
204
168
191
355
341
211
517
(180)
$180
197
2.1%
NM
1.7%
9.1%
5.0%
7.7%
8.2%
7.6%
26.9%
12.5%
8.0%
NM
8.9%
7.8%
1.5x
1.2x
1.1x
1.9x
1.0x
1.8x
1.8x
1.5x
3.4x
2.8x
1.9x
0.6x
1.7x
1.6x
1.6x
1.1x
1.2x
1.9x
1.1x
1.7x
1.8x
1.6x
3.4x
2.8x
1.9x
0.9x
1.7x
1.7x
1.8x
0.9x
1.2x
1.9x
1.2x
1.7x
1.9x
1.6x
3.2x
2.7x
1.8x
0.9x
1.7x
1.7x
8.6x
9.4x
9.3x
10.9x
7.9x
10.5x
11.6x
8.6x
12.7x
12.0x
11.2x
NM
10.2x
10.5x
9.2x
8.8x
9.6x
10.6x
8.7x
9.4x
11.5x
8.9x
12.6x
12.0x
10.7x
12.3x
10.4x
10.1x
11.3x
7.0x
8.8x
10.4x
9.2x
9.0x
11.7x
9.3x
11.7x
11.7x
9.8x
11.4x
10.1x
10.1x
NM
NM
NM
18.6x
14.4x
28.0x
20.8x
16.1x
12.6x
18.6x
17.7x
NM
18.3x
18.1x
17.5x
7.6x
17.6x
18.6x
15.3x
17.8x
18.1x
13.6x
12.7x
18.0x
12.9x
9.8x
14.9x
16.4x
25.0x
7.8x
15.6x
17.9x
16.2x
15.9x
18.2x
14.3x
19.9x
16.7x
12.1x
6.7x
15.5x
16.0x
$126
319
222
60
50
1
2,271
3,251
661
$773
222
9.3%
33.0%
12.1%
9.3%
11.5%
1.1%
12.0%
10.3%
20.0%
13.2%
11.5%
($9)
(32)
(32)
(42)
(482)
(5)
490
252
388
$59
(9)
NM
NM
NM
NM
NM
NM
2.6%
0.8%
11.8%
5.1%
2.6%
0.7x
2.2x
0.8x
0.5x
1.1x
2.0x
0.5x
0.4x
2.1x
1.1x
0.8x
0.7x
2.2x
0.8x
0.5x
1.4x
2.2x
0.6x
0.4x
2.1x
1.2x
0.8x
0.7x
2.1x
0.8x
0.5x
1.6x
1.8x
0.6x
0.4x
2.0x
1.2x
0.8x
7.2x
6.6x
6.7x
5.2x
9.7x
NM
4.5x
3.4x
10.4x
6.7x
6.6x
7.6x
6.3x
5.2x
5.4x
11.1x
NM
3.7x
3.7x
10.2x
6.7x
5.8x
6.9x
6.0x
4.8x
6.0x
12.4x
8.8x
3.5x
3.4x
9.6x
6.8x
6.0x
NM
NM
NM
NM
NM
NM
19.9x
NM
17.8x
18.8x
18.8x
15.1x
NM
16.1x
NM
NM
NM
21.8x
24.3x
17.3x
18.9x
17.3x
14.4x
23.8x
10.5x
9.9x
NM
18.7x
19.6x
21.6x
15.8x
16.8x
17.2x
EV / Revenue
2015E
2016E
LTM
EV / EBITDA
2015E
2016E
LTM
Price / EPS
2015E
2016E
Flow Control
Cameron International Corporation
CECO Environmental Corp.
CIRCOR International, Inc.
CLARCOR Inc.
Colfax Corporation
Curtiss-Wright Corporation
Donaldson Company, Inc.
Flowserve Corporation
Graco Inc.
Nordson Corporation
Pentair plc
SPX Corporation
Average
Median
Infrastructure Components & Services
Page 9
I
Market Statistics
% of
52 Week
High
Stock
Price
52 Week
High
Low
$41.81
53.59
92.88
61.31
47.83
92.68
55.29
39.49
96.98
102.61
189.79
106.73
$81.75
77.00
$43.55
57.50
97.35
77.77
61.87
99.81
70.91
53.59
129.16
126.89
194.83
110.17
$93.62
87.56
$33.37
47.90
81.88
55.99
42.78
80.09
50.61
38.75
93.62
99.62
145.75
90.51
$71.74
68.04
96.0%
93.2%
95.4%
78.8%
77.3%
92.9%
78.0%
73.7%
75.1%
80.9%
97.4%
96.9%
86.3%
86.9%
$114.38
39.13
35.77
28.98
18.25
77.26
98.65
54.32
Average $58.34
Median
46.73
$122.10
64.59
42.95
62.62
27.09
93.16
102.71
78.59
$74.23
71.59
$98.93
32.93
34.49
28.98
16.12
75.74
80.62
49.82
$52.20
42.16
$76.61
8.79
58.59
17.25
12.24
7.07
26.73
36.18
8.60
18.12
49.67
36.50
$80.86
9.77
65.58
23.06
13.50
8.62
32.11
41.86
10.54
28.19
62.91
38.08
$29.70
22.43
$34.59
30.15
Company
N D U S T R I A L S
Last Twelve Months
Market
Cap.
EBITDA
V E R V I E W
Valuation Metrics
Enterprise
Value
Revenue
$13,888
12,748
63,649
9,501
31,155
33,688
14,433
25,586
13,187
13,523
19,132
15,980
$22,206
15,207
$13,301
14,337
76,899
11,525
34,891
38,503
18,412
31,974
14,757
12,875
21,230
20,073
$25,731
19,242
$4,038
4,010
20,096
6,990
22,304
13,634
13,215
37,179
12,311
6,300
3,585
11,238
$12,908
11,774
$802
1,088
4,517
1,340
4,501
3,350
1,802
3,343
1,763
1,306
1,237
1,976
$2,252
1,783
19.9%
27.1%
22.5%
19.2%
20.2%
24.6%
13.6%
9.0%
14.3%
20.7%
34.5%
17.6%
20.3%
20.0%
$438
606
2,525
611
2,710
1,910
667
1,439
927
827
673
867
$1,183
847
10.8%
15.1%
12.6%
8.7%
12.2%
14.0%
5.0%
3.9%
7.5%
13.1%
18.8%
7.7%
10.8%
11.5%
3.3x
3.6x
3.8x
1.6x
1.6x
2.8x
1.4x
0.9x
1.2x
2.0x
5.9x
1.8x
2.5x
1.9x
3.3x
3.6x
3.7x
1.7x
1.6x
2.9x
1.4x
0.9x
1.2x
2.0x
5.9x
1.8x
2.5x
1.9x
3.2x
3.5x
3.3x
1.6x
1.7x
2.9x
1.4x
0.8x
1.3x
2.2x
5.5x
1.7x
2.4x
1.9x
NM
13.2x
NM
8.6x
7.8x
11.5x
10.2x
9.6x
8.4x
9.9x
NM
10.2x
9.9x
9.9x
NM
13.1x
NM
9.3x
8.4x
11.5x
9.8x
7.9x
7.9x
9.1x
NM
11.3x
9.8x
9.3x
14.2x
12.6x
14.2x
8.9x
9.2x
11.0x
9.3x
8.2x
9.2x
9.8x
NM
10.5x
10.6x
9.8x
34.8x
21.5x
26.3x
15.6x
11.9x
37.4x
21.7x
28.4x
14.9x
16.8x
28.6x
21.6x
23.3x
21.6x
24.0x
21.0x
21.6x
16.9x
15.1x
18.1x
14.9x
11.5x
13.4x
16.0x
28.2x
18.1x
18.2x
17.5x
22.1x
19.7x
19.0x
15.9x
15.6x
16.9x
13.7x
10.4x
15.8x
16.9x
25.5x
16.4x
17.3x
16.7x
93.7%
60.6%
83.3%
46.3%
67.4%
82.9%
96.0%
69.1%
74.9%
76.0%
$33,777
5,229
377
558
375
1,028
1,418
7,097
$6,232
1,223
$40,355
7,266
345
757
1,112
1,048
1,423
6,915
$7,403
1,268
$13,814
3,469
373
813
1,690
748
374
4,612
$3,237
1,251
$2,850
611
44
125
134
100
73
1,318
$657
130
20.6%
17.6%
11.9%
15.4%
8.0%
13.3%
19.6%
28.6%
16.9%
16.5%
$1,129
77
20
42
(18)
52
46
717
$258
49
8.2%
2.2%
5.2%
5.2%
NM
6.9%
12.2%
15.6%
7.9%
6.9%
2.9x
2.1x
0.9x
0.9x
0.7x
1.4x
3.8x
1.5x
1.8x
1.4x
3.0x
2.2x
N/A
0.9x
0.7x
1.4x
3.8x
1.5x
1.9x
1.5x
2.8x
2.1x
N/A
0.9x
0.7x
1.3x
3.5x
1.5x
1.8x
1.5x
14.2x
11.9x
7.8x
6.1x
8.3x
10.5x
19.4x
5.2x
10.4x
9.4x
13.8x
11.3x
NM
5.9x
7.1x
10.6x
19.5x
5.6x
10.5x
10.6x
12.9x
9.5x
NM
5.8x
5.9x
10.1x
18.5x
5.7x
9.8x
9.5x
30.7x
7.2x
19.5x
14.3x
NM
19.7x
31.4x
10.1x
19.0x
19.5x
26.0x
16.4x
N/A
11.3x
10.7x
17.9x
32.5x
11.0x
18.0x
16.4x
23.0x
13.0x
N/A
10.9x
7.8x
16.9x
29.8x
11.6x
16.1x
13.0x
$54.23
7.59
55.31
14.83
9.78
2.11
22.19
28.30
7.46
16.71
48.34
30.46
94.7%
90.0%
89.3%
74.8%
90.7%
82.0%
83.2%
86.4%
81.6%
64.3%
79.0%
95.9%
$5,737
217
850
888
181
388
697
1,371
1,381
1,819
1,397
6,547
$5,392
218
914
935
144
363
665
1,671
1,758
3,376
1,691
7,211
$2,524
162
371
545
59
43
412
1,898
1,165
1,974
1,486
3,722
$423
25
60
106
14
(13)
56
120
189
302
114
631
16.7%
15.3%
16.2%
19.4%
24.0%
NM
13.5%
6.3%
16.2%
15.3%
7.7%
17.0%
$256
16
26
48
7
(17)
28
(46)
31
86
(3)
322
10.2%
10.0%
7.1%
8.8%
11.7%
NM
6.7%
NM
2.7%
4.4%
NM
8.7%
2.1x
1.3x
2.5x
1.7x
2.4x
8.4x
1.6x
0.9x
1.5x
1.7x
1.1x
1.9x
2.1x
N/A
2.4x
1.8x
2.4x
3.2x
1.6x
0.9x
1.5x
1.7x
1.2x
2.0x
1.9x
N/A
2.3x
1.6x
2.4x
3.5x
1.7x
0.8x
1.5x
1.7x
1.2x
1.9x
12.8x
8.8x
15.2x
8.8x
10.2x
NM
11.9x
14.0x
9.3x
11.2x
14.8x
11.4x
11.5x
NM
15.2x
9.3x
NM
5.2x
NM
12.7x
9.3x
9.1x
8.5x
11.8x
10.4x
NM
13.1x
8.0x
NM
9.1x
NM
8.5x
8.5x
8.6x
7.9x
11.0x
26.9x
13.4x
32.2x
19.2x
26.6x
NM
25.5x
NM
NM
24.2x
NM
20.7x
24.7x
N/A
31.2x
20.8x
24.2x
6.8x
25.2x
36.2x
22.1x
12.7x
21.1x
19.7x
21.6x
N/A
25.4x
17.1x
19.9x
9.4x
24.3x
16.8x
17.9x
11.3x
18.7x
18.3x
$24.78
19.45
84.3%
84.8%
$1,789
1,129
$2,028
1,303
$1,197
855
$169
110
15.2%
16.2%
$63
27
7.8%
8.7%
2.3x
1.7x
1.9x
1.8x
1.9x
1.7x
11.7x
11.4x
10.3x
9.3x
9.5x
8.6x
23.6x
24.8x
22.2x
22.1x
18.3x
18.3x
Earnings
$
%
LTM
EV / Revenue
2015E
2016E
LTM
EV / EBITDA
2015E
2016E
LTM
Price / EPS
2015E
2016E
Large Diversified
Agilent Technologies, Inc.
AMETEK, Inc.
Danaher Corporation
Dover Corporation
Emerson Electric Co.
Illinois Tool Works Inc.
Ingersoll-Rand Plc
Johnson Controls, Inc.
Parker-Hannifin Corporation
Rockwell Automation, Inc.
Roper Technologies, Inc.
Stanley Black & Decker, Inc.
Average
Median
Specialty Chemicals
Ecolab Inc.
FMC Corporation
Hawkins, Inc.
Innophos Holdings, Inc.
Koppers Holdings Inc.
Quaker Chemical Corporation
WD-40 Company
Westlake Chemical Corporation
Water Solutions
A. O. Smith Corporation
Arad Ltd.
Badger Meter, Inc.
Calgon Carbon Corporation
Consolidated Water Co. Ltd.
Energy Recovery, Inc.
Gorman-Rupp Company
Itron, Inc.
Mueller Water Products, Inc. Class A
Rexnord Corporation
Watts Water Technologies, Inc. Class A
Xylem Inc.
Average
Median
Page 10
NDUSTRIALS
VERVIEW
Q4 2015
M&A Activity for Janneys Industrials Universe(1)

Annual M&A Activity
Quarterly M&A Activity
AGRICULTURE
80
250
73
& CONSULTING
FLOW CONTROL
& SERVICES
LARGE DIVERSIFIED
SPECIALTY CHEMICALS
53
47
47
49
52
50
46
44
200
48
40
40
30 31
30
31
33
36
29
210
191
189
190
167
143
150
147
142
118
103
100
20
20
50
10
0
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
WATER SOLUTIONS
59
60
50
61
Number of Transactions
/ EQUIPMENT
211
70
Number of Transactions
DISTRIBUTION
233
225
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
YTD
Recent M&A Activity

Ann.
Date
Target
Acquiror
12/29/15
Statewide Wholesale, Inc.
12/18/15
Roofing & Insulation Supply, Inc.
12/15/15
Stress-Tek, Inc.
VPG Systems U.S., Inc.
12/1/15
RCI Roofing Supply Co., Inc.
11/23/15
Hawkins, Inc.
11/11/15
Stauber Performance Ingredients,

Inc.
Telog Instruments, Inc.
Trimble Navigation Ltd.
11/4/15
Reduction Engineering, Inc.
Maag Pump Systems AG
11/3/15
Precision Planting LLC
11/2/15
10/31/15
Joseph M. Reichert
Director
(215) 665-6035
Director
(215) 665-4452
Brendan E. Tierney
Managing Director
btierney@janney.com
(215) 665-6261
EV
($MM)
EV /
Rev.
EBITDA
Rev.
EBITDA
$70.0
19.9
-
1.3x
117.0
Deere & Co.
Needham Electric Supply Corp.
WESCO Distribution, Inc.
115.0
Fremont Plastics, Inc.
ESCO Technologies, Inc.
10/26/15
Atlas Medical Software
48.0
10/22/15
Sunset Hydro Corp.
Xylem, Inc.
18.0
14.4x
10/21/15
IntelliSAW, Inc.
Gala Industries, Inc.
Emerson Process Management,

Inc.
Dover Corp.
10/20/15
10/8/15
Aderant Holdings, Inc.
10/8/15
Fasteners, Inc.
Fastenal Co.
10/6/15
EdgeRock Technologies LLC
CDI Corp.
35.0
0.8x
44.0
10/2/15
S.G. Morris Co.
American Galvanizing Co.
Applied Industrial Technologies,

Inc.
Valmont Industries, Inc.
14.5
10/1/15
13.2
157.0
5.0
695.0
-

www.janney.com
Source: FactSet
(1) Refers to all companies Janney has identified under Publicly Traded Companies within this Newsletter
NDUSTRIALS
VERVIEW
Q4 2015
Middle Market M&A Conditions

EBITDA Multiples for General Industrial
EBITDA Multiples for General Industrial of

EV < $250 MM
AGRICULTURE
& CONSULTING
9.0x
7.8x
DISTRIBUTION
7.8x
7.4x
8.8x
9.1x
8.9x
8.4x
8.1x 8.0x
8.8x
8.4x
8.4x
7.1x
7.0x
6.6x
7.2x
6.9x
7.1x
6.9x
6.7x
6.5x
6.3x
5.9x
6.4x
8.3x
8.2x
6.0x
5.5x
/ EQUIPMENT
FLOW CONTROL
& SERVICES
LARGE DIVERSIFIED
SPECIALTY CHEMICALS
WATER SOLUTIONS
N/A
N/A
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: S&P LCD
Source: S&P LCD
Middle Market LBO Purchase Price

Multiples (Under $50 MM of EBITDA)
Senior Debt / EBITDA
Sub Debt / EBITDA
Equity / EBITDA
8.5x
6.7x
7.0x 7.2x
8.1x
Middle Market LBO Equity Contributions

(Under $50 MM of EBITDA)
Other
9.6x
9.3x
7.0x
N/A
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM
8.4x
8.3x
45.6%
44.8%
10.7x
40.8%
8.8x
8.2x
7.9x
36.1%
36.3%
37.9%
35.4%
6.6x
34.1%
45.6%
40.7%
40.2%
39.7%
41.2%
44.7%
40.4%
32.1%
5.9x
Brendan E. Tierney
Managing Director
btierney@janney.com
(215) 665-6261
Joseph M. Reichert
Director
(215) 665-6035
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
YTD
Source: S&P LCD
Lower Middle Market EBITDA Multiples

(EV Between $10 - $250 MM)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
YTD
Source: S&P LCD
Lower Middle Market Leverage Multiples

(EV Between $10 - $250 MM)
Senior Debt / EBITDA
4.0x
3.6x
4.0x
3.7x
3.7x
1.0x
1.0x
2.7x
2.7x
3Q14
4Q14
0.7x
1.1x

Director
(215) 665-4452
1.2x
2.9x
2.4x

www.janney.com
1Q14
Source: GF Data
2Q14
Sub. Debt / EBITDA
3.3x
1Q15
4.0x
1.1x
2.9x
2Q15
4.1x
0.9x
3.2x
3Q15
Source: GF Data
Note: S&P LCD considers the middle market to consist of companies with less than $50 MM of EBITDA; GF Data considers the lower middle market
to consist of transactions between $10 - $250 MM
NDUSTRIALS
VERVIEW
Q4 2015
Equity Offerings for General Universe(1)
AGRICULTURE
IPO
60
& CONSULTING
/ EQUIPMENT
FLOW CONTROL
& SERVICES
LARGE DIVERSIFIED
FO
CVT
250
23 10
40
10
10
20
24
11 28
8
11
30
35 25
19
24
16
20
31
38 4
13
22 20 18
32
25 27
19
1 3
22
11
19
25
FO
CVT
89
200
150
55
20
100
15
26
59
60
163
1 9
11
0
7
3
6 6 5
6
6 4
5
4 4 2
3
2
2 1 4 3 1 2 3 3 3
1 2
1 2
0 0 0 2 2
50
25
71
10
41
0
9
2003
35
34
35
2005
2006
2007
22
2004
81
99
15
13
44
21
18
11 11
IPO
300
50
Number of Offerings
DISTRIBUTION
Annual Equity Offering Activity
Quarterly Equity Offering Activity
Number of Offerings
70
9
101 114
8
55
74
53
10
10
20
11
10
16
11
10
2008
2009
2010
2011
2012
2013
2014
2015
SPECIALTY CHEMICALS
WATER SOLUTIONS
Select Recent Equity Offering Activity(2)

Pricing Date
Issuer
Amt.
($MM)
% Ch.
1-day
% Ch.
1-month
12/10/2015
Hydrogenics Corp.
FO
$19.0
(6.6% )
N/A
11/20/2015
Builders FirstSource, Inc.
FO
92.8
(0.3% )
(18.3% )
10/21/2015
Multi Packaging Solutions International Ltd
IPO
246.7
21.8%
26.4%
Brendan E. Tierney
Managing Director
btierney@janney.com
(215) 665-6261
Joseph M. Reichert
Director
(215) 665-6035
Director
(215) 665-4452
www.janney.com
Deal Type
Source: IPREO
(1)
General Universe includes Industrials and Specialty Chemicals
(2)
Excludes convertible securities
NDUSTRIALS
VERVIEW
Q4 2015
Investment Banking Capabilities

AGRICULTURE
& CONSULTING
DISTRIBUTION
/ EQUIPMENT
FLOW CONTROL
& SERVICES
M&A Advisory
The sale of a company is often the most important event in a companys life. Janney understands this and
has established a highly-personalized approach to mergers and acquisitions guided by seasoned M&A
bankers and industry advisors alike. A single, cohesive team drives each transaction from start to finish,
focused exclusively on delivering the most advantageous terms to our clients.
Exclusive Sales
Acquisition Advisory
Management Buyouts
Leveraged Buyouts
Fairness Opinions
LARGE DIVERSIFIED
SPECIALTY CHEMICALS
Public Offerings
WATER SOLUTIONS
Janney underwrites and syndicates initial public and follow-on offerings of primary and secondary shares
for companies that have demonstrated management leadership and sustainable, competitive market
positions. Our teams deep industry knowledge and extensive institutional relationships ensure expert
book-building and optimal pricing dynamics.
Brendan E. Tierney
Managing Director
btierney@janney.com
(215) 665-6261
Joseph M. Reichert
Director
(215) 665-6035
Director
(215) 665-4452
www.janney.com
Initial Public Offerings

Follow-on Offerings
At-the-Market Offerings (ATMs)
Senior & High Yield Debt
Convertible Securities
Preferred Securities
Registered Directs
Private Placements
Janney is an active placement agent and has raised substantial capital for clients in private financings,
including equity and equity-linked securities for both public and private companies.
PIPEs
Private Equity
Senior Debt
Subordinated Debt

Janney PDF

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Janney PDF

Загружено:

Авторское право:

Доступные форматы

INDUSTRIALS

U.S. Macroeconomic Environment

Currencies and Commodities

Tenor of the Industrial Market

Industry Valuation Overview

Middle Market M&A Conditions

Investment Banking Capabilities

BRIAN W. VAN DER WAAG

Janneys Top Manufacturing Trends for 2016

With the advancement of technology and increased focus on consumers, the

JANNEY MONTGOMERY SCOTT

INDUSTRIALS OVERVIEW Page 1

Source: IndustryWeek, Manufacturing Global, Industry Research

Brian W. Van Der Waag

Janneys Top Manufacturing Trends for 2016 (continued)

Source: IndustryWeek, Manufacturing Global, Industry Research

U.S. Macroeconomic Environment

Consumer Price Index

Source: Bloomberg, FactSet

Currencies and Commodities

Crude Oil (WTI)

Brian W. Van Der Waag

Source: Bloomberg, FactSet

Tenor of the Industrial Market

Brian W. Van Der Waag

Industry Valuation Overview

Stock Price Performance

EBITDA Valuation Multiples

6.7x 6.7x 6.8x

Brian W. Van Der Waag

Source: FactSet, Public Filings

Last Twelve Months

Construction, Engineering & Consulting

Source: FactSet, Bloomberg, Public Filings and Consensus Estimates

Last Twelve Months

Electronic Components / Equipment

Source: FactSet, Bloomberg, Public Filings and Consensus Estimates

Last Twelve Months

Source: FactSet, Bloomberg, Public Filings and Consensus Estimates

Last Twelve Months

Source: FactSet, Bloomberg, Public Filings and Consensus Estimates

M&A Activity for Janneys Industrials Universe(1)

Annual M&A Activity

Quarterly M&A Activity

Recent M&A Activity

Statewide Wholesale, Inc.

Beacon Roofing Supply, Inc.

Roofing & Insulation Supply, Inc.

Beacon Roofing Supply, Inc.

VPG Systems U.S., Inc.

RCI Roofing Supply Co., Inc.

Beacon Roofing Supply, Inc.

Stauber Performance Ingredients,

Trimble Navigation Ltd.

Reduction Engineering, Inc.

Maag Pump Systems AG

Precision Planting LLC

Deere & Co.

Needham Electric Supply Corp.

WESCO Distribution, Inc.

Fremont Plastics, Inc.

ESCO Technologies, Inc.