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1、Specialty Distribution Industry Update Harris Williams|Q4 2022Specialty Distribution|Q4 20221Harris Williams Specialty Distribution ExperienceSelect Specialty Distribution ExperienceHarris Williams Client SpotlightJune 16,2022Imperial Dade is a leading distributor of foodservice packaging,facilities
2、 maintenance supplies,and equipment in North America.Company BackgroundThe transaction delivered a successful outcome for Imperial Dade and Bain Capital Private Equity.The investment will allow Imperial Dade to continue to grow and thrive in its next chapter.Harris Williams served as financial advis
3、or to Imperial Dade,a portfolio company of Bain Capital Private Equity,in this transaction.Successful OutcomeHarris Williams Client SpotlightSeptember 16,2022D&H United Fueling Solutions is the leading supplier of both petroleum fueling and EV charging system equipment,installation,and service.Compa
4、ny BackgroundThe transaction delivered a successful outcome for D&H United Fueling Solutions and KLH Capital.The investment will allow D&H to continue to add new territories,grow its technician base,and enhance its scope of services.Harris Williams served as financial advisor to D&H United Fueling S
5、olutions,a portfolio company of KLH Capital,in this transaction.Successful OutcomeSpecialty Distribution|Q4 2022What Were Reading“As channels evolve,distributors face growing competition from pure digital players like marketplaces.As a result,distributors must master digital competencies.However,its
6、 in value-added services where they can truly differentiate.”Read the full article here.Competing and Winning With Value-Added ServicesDistribution Strategy Group“The quickest way to add scale in the distribution sector is to buy up another companys operations.So it should be no surprise that,as the
7、 industry consolidates,many of its largest players remain on the hunt for potential acquisitions.”Read the full article here.Major Industry Players Still on the Acquisition HuntIndustrial Distribution“The wholesale distribution industry is at an inflection point of rapidly changing business fundamen
8、tals.To turn the inflection point into an advantage,distributors should have a framework for action.”Read the full article here.Wholesale Distribution Trends:Distribution DisruptedDeloitte“Agility and resilience need to become the focus of our manufacturing and distribution process.Resilience is our
9、 ability to recover quickly.Think of a marathon runner in training her ability to recover after a long run and get started the next day again is resilience.Agility is the ability to respond quickly and nimbly to changing conditions.Together,agility and resilience are much more strategic characterist
10、ics to embed into your supply chain management(SCM)strategy,such as those below.”Read the full article here.Building Resiliency and Innovation in Supply Chain Strategy Forbes“Distributors are still only scratching the surface of automations potential.Aside from the tangible,physical tasks in the war
11、ehouse,there are so many tasks within different departments of a distributor where automation can be applied including sales,customer service,accounts payable,eCommerce,rebate management,pricing that enable staff in those areas to focus on more high-value tasks.”Read the full article here.Automation
12、:Make It Easier for Employees to Say YesModern Distribution ManagementIn this Industry Update,we have included a collection of articles focused on a variety of trends that the Harris Williams team is seeing from market participants.Value-added services remains a core component of specialty distribut
13、ion,and acquisitions are a top priority as companies look for growth and expansion opportunities.Implementing automation and supply chain strategies will also expedite the industrys growth as distribution companies look to create more agile processes and reduce human capital for repetitive functions
14、.2Imperial Dade:A Private Equity Growth StoryLink to ReadRecent Harris Williams Industry Content“Imperial Dade has achieved significant growth organically and via acquisition,evolving into a world-class specialty distribution business and leader in its industry.It represents a success story for its
15、multiple private equity partners over the years,exemplifying the value-creation and growth private equity can help unlock.”“Imperial Dade has continuously demonstrated the ability to unlock operating leverage from acquired businesses.It also began its network and optimization strategy that will cont
16、inue to yield substantial operating advantages.”Specialty Distribution|Q4 20221)S&P Cap IQ;Data as of November 1,2022 2)Comparable company sets listed on page 10 Indexed stock price performance for the period November 2017-November 2022Indexed stock price performance for the period November 2017-Nov
17、ember 2022Historical Stock Prices Last 5 Years1,2Historical Median TEV/LTM EBITDA Multiples Last 5 Years1,2Representative Key Public Comparables23S&P 500 IndexSpecialty Distribution IndexSpecialty Distribution Public Company Performance and Trends0 x2x4x6x8x10 x12x14x16x18x20 xNov-17 Mar-18 Jul-18No
18、v-18 Mar-19 Jul-19Nov-19 Mar-20 Jul-20Nov-20 Mar-21 Jul-21Nov-21 Mar-22 Jul-22Nov-22(40%)(20%)0%20%40%60%80%100%120%Nov-17 Mar-18 Jul-18 Nov-18 Mar-19 Jul-19 Nov-19 Mar-20 Jul-20 Nov-20 Mar-21 Jul-21 Nov-21 Mar-22 Jul-22 Nov-22Specialty Distribution|Q4 202210.2%23.5%13.9%17.8%8.2%18.5%22.9%13.3%10.8
19、%AutomotiveBuilding ProductsConsumerIndustrialHealthcareSpecialty ChemicalsTechnologyFoodserviceS&P 5006.3%4.7%8.5%0.2%4.5%6.7%2.6%5.5%6.4%AutomotiveBuilding ProductsConsumerIndustrialHealthcareSpecialty ChemicalsTechnologyFoodserviceS&P 50011.0 x5.7x9.3x11.5x9.8x10.5x5.9x9.0 x12.1xAutomotiveBuildin
20、g ProductsConsumerIndustrialHealthcareSpecialty ChemicalsTechnologyFoodserviceS&P 500Specialty Distribution Public Company Performance and Trends(Cont.)12-Month Change in Stock Price1,2Median TEV/2022E EBITDA Multiple1,24Median 3-Year Revenue CAGR(2019 2022)1,2Median LTM Revenue Growth1,228.0%-0.4%-
21、27.9%9.9%13.2%-24.4%-10.9%10.1%-28.5%AutomotiveBuilding ProductsConsumerIndustrialHealthcareSpecialty ChemicalsTechnologyFoodserviceS&P 5001)S&P Cap IQ;Data as of November 1,2022 2)Comparable company sets listed on page 10 Specialty Distribution|Q4 20222.0 x1.2x2.9x1.1x1.4x1.7x2.2x3.9x1.7xAutomotive
22、Building ProductsConsumerIndustrialHealthcareSpecialty ChemicalsTechnologyFoodserviceS&P 50013.8%11.7%11.1%11.1%3.1%9.9%5.4%2.7%24.5%AutomotiveBuilding ProductsConsumerIndustrialHealthcareSpecialty ChemicalsTechnologyFoodserviceS&P 50013.2%8.7%9.2%11.5%2.7%4.8%3.6%2.5%22.7%AutomotiveBuilding Product
23、sConsumerIndustrialHealthcareSpecialty ChemicalsTechnologyFoodserviceS&P 500Specialty Distribution Public Company Performance and Trends(Cont.)Median EBITDA Margin(2019 2021)1,2Median LTM EBITDA Margin1,25Net Debt/LTM EBITDA1,21)S&P Cap IQ;Data as of November 1,2022 2)Comparable company sets listed
24、on page 10 Median LTM Gross Margin1,237.8%29.3%30.8%35.0%11.3%24.9%13.1%15.8%41.9%AutomotiveBuilding ProductsConsumerIndustrialHealthcareSpecialty ChemicalsTechnologyFoodserviceS&P 500Specialty Distribution|Q4 2022Economic Trends 6PMI Index1ISM New Orders Index1Production Index1CPI&PPI Index(%Change
25、)2Manufacturing Inventories&Backlog1Durable Goods New Orders31)Institute for Supply Management Manufacturing PMI 2)Bureau of Labor Statistics3)Federal Reserve Economic Data St.Louis Fed-2%-1%0%1%2%Sep-17Sep-18Sep-19Sep-20Sep-21Sep-22CPIPPI$150$200$250$300Sep-14Sep-16Sep-18Sep-20Sep-22($in billions)3
26、0354045505560657075Oct-14Oct-15Oct-16Oct-17Oct-18Oct-19Oct-20Oct-21Oct-222530354045505560657075Oct-14Oct-15Oct-16Oct-17Oct-18Oct-19Oct-20Oct-21Oct-224046525864Oct-14Oct-15Oct-16Oct-17Oct-18Oct-19Oct-20Oct-21Oct-223545556575Oct-17Oct-18Oct-19Oct-20Oct-21Oct-22PMIInventoriesBacklog of OrdersSpecialty
27、Distribution|Q4 2022Recent Specialty Distribution Transactions Detail7DateTargetBusiness DescriptionAcquirer(s)10/31/22Lipari Foods(H.I.G.Capital)Specialty food distributor,importer,and manufacturer serving independent and specialty grocers,national chains,and convenience storesLittlejohn&Co.10/21/2
28、2Accucam(Fulcrum Capital)Ontario-based supplier of steel parts to equipment manufacturersEQI(Atlas)10/20/22Bedrock Landscape SupplyIndependent distributor of natural stone,pavers,bulk materials,and landscape supplies based in Las Vegas,NVOutdoor Living Supply(Trilantic North America)10/20/22Great Pl
29、ains/Pool&Spa ProductsPool and spa equipment and parts distributor serving the Midwest and Gulf Coast regionsMarcone(Genstar Capital)10/17/22Madison Block&StoneWholesale distributor of natural stone,pavers,bulk materials,and landscape suppliesSiteOne Landscape Supply10/12/22Wiseway SupplyFlorence,KY
30、-based distributor of electrical,plumbing,and lighting products to contractorsCID Capital10/12/22Coastal Supply CompanyFamily-owned distributor with six branch locations in and around Knoxville and Johnson City,TNHeritage Distribution Holdings(Gryphon Investors)10/10/22Mobile Janitorial&PaperDistrib
31、utor of janitorial sanitation and foodservice products based in Mobile,AL Imperial Dade(Advent International&Bain Capital)10/07/22Glser&Flaschen GmbHGerman glass packaging distributorTricorBraun(Ares Management)10/07/22Silver State Wire Rope and RiggingLeading supplier of rigging and safety critical
32、 equipment for the entertainment industryBishop Lifting Products(Altamont Capital Partners)10/06/22Medical Imaging Solutions InternationalMISI is a supplier of computed tomography,magnetic resonance imaging,and cardio/angiogram vascular injector syringe disposablesCanadian Hospital Specialties(Flexp
33、oint Ford)10/06/22Star Flooring(Enterprises Group)The Enterprises Group of companies specializes in facility supplies,foodservice,and commercial flooringEnvoy Solutions10/05/22Westech Rigging SupplyLeading source for web slings,wire rope slings,wire rope,hoists,winches,shackles,and spreader barsBish
34、op Lifting Products(Altamont Capital Partners)10/04/22Susquehanna Wire Rope&Rigging,LLCValue-added distributors and fabricators of lifting and rigging products including wire rope,chain,synthetic slings,and other related hardwareAscent Lifting,Inc.(Shorehill Capital)10/04/22Advantage Sales&Supply Co
35、.,LLCValue-added distributors and fabricators of lifting and rigging products including wire rope,chain,synthetic slings,and other related hardware(combined with Susquehanna Wire Rope&Rigging,LLC)Ascent Lifting,Inc.(Shorehill Capital)09/30/22StyleGlassA company that specializes in the decoration of
36、glass packaging for the food,beverage,beauty,and pharmaceutical end marketsBerlin Packaging(Oak Hill Capital Partners)09/21/22Marks Barrel CompanyLas Vegas,NV-based independent distributor of natural stone,pavers,bulk materials,and landscape suppliesTricorBraun(Ares Management)09/20/22HLC,Inc.Distri
37、butor of more than 170 leading brands in the cycling world including SRAM,Shimano,Garmin,ABUS,RockShox,Kuat,Tacx,and Muc-OffMiddleGround Capital09/16/22D&H United Fueling SolutionsThe leading supplier of both petroleum fueling and EV charging system equipment,installation,and serviceWind Point Partn
38、ers09/14/22Total Air Supply/Spiral Air ManufacturingTotal Air Supply:Nashua,NH-based HVAC distributor and custom fabricator,Spiral Air Manufacturing:Derry,NH-based metal fabricator of HVAC componentsMunchs Supply(Marcone,Genstar Capital)09/07/22SandBox Medical LLCNeonatal products makerCanadian Hosp
39、ital Specialties(Flexpoint Ford)09/07/22Kaknes Landscape SupplyWholesale distributor of nursery products with one location in Naperville,ILSiteOne Landscape Supply09/02/22Knight Marketing CorporationQueens,NY-based solutions-driven distributor with a reputation for reliability and customer service e
40、xcellenceEnvoy Solutions09/02/22International Sales&MarketingPuerto Rico-based distributor of foodservice and janitorial sanitation productsImperial Dade(Advent International&Bain Capital)Specialty Distribution|Q4 20228Harris Williams:At a GlanceMinneapolisWashington,DCLondonBostonSan FranciscoFrank
41、furtClevelandRichmondDedicated Harris Williams Asia-Pacific Coverage Team 30 years and thousands of deals closed100%of revenue is from M&A advisory10 Industry Groups with deep sector expertise70%of revenue from repeat clients8 offices across the U.S.and EuropeThe Harris Williams Business Services&Sp
42、ecialty Distribution Coverage Areas Harris Williams Specialty Distribution Group ContactsSpecialty Distribution Subsectors Automotive Building Products Consumer Foodservice Specialty Distribution Commercial&Industrial Services Professional Services IT ServicesBob BaltimoreManaging D(804)915-0129Bria
43、n LucasManaging D(804)932-1323Graham GillamD(804)887-6074Rob DevlinVice P(804)887-6037Katie BaskindBusiness Development M(804)915-0121 Healthcare Industrial Specialty Chemicals TechnologySpecialty Distribution|Q4 2022Harris Williams Capabilities and Locations9IndustrialsSpecialty DistributionBusines
44、s ServicesConsumerBuilding Products&MaterialsAerospace,Defense&Government ServicesEnergy,Power&InfrastructureHealthcare&Life SciencesTechnologyTransportation&LogisticsHarris Williams has a broad range of industry expertise,which creates powerful opportunities.Our clients benefit from our deep sector
45、 experience,integrated industry intelligence and collaboration across the firm,and our commitment to learning what makes them unique.For more information,visit our website at .Office LocationsBostonOne International PlaceSuite 2620Boston,Massachusetts 02110Phone:+1(617)482-7501Cleveland1900 East 9th
46、 Street25th FloorCleveland,Ohio 44114Phone:+1(216)689-2400Minneapolis222 South 9th StreetSuite 3350Minneapolis,Minnesota 55402Phone:+1(612)359-2700Richmond1001 Haxall Point9th FloorRichmond,Virginia 23219Phone:+1(804)648-0072FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone:+49 069
47、3650638 00London25 Savile Row4th FloorLondon,England W1S 2ERPhone:+44 20 7518 8900San FranciscoOne Market Plaza,Steuart Tower11th FloorSan Francisco,California 94105Phone:+1(415)288-4260Washington,DC 800 17th Street NW2nd FloorWashington,DC 20006Phone:+1(202)-207-2300United StatesEuropeSpecialty Dis
48、tribution|Q4 2022Sources&Disclaimers10SourcesPublic Comparable Companies:(Pages 3-5)Automotive&Heavy Duty Aftermarket:AutoZone,OReilly Automotive,LKQ Corp.,Genuine Parts Company,Dorman Products,Uni-SelectBuilding&Construction Products:CRH,Watsco,Beacon Roofing Supply,Builders FirstSource,Boise Casca
49、de,GMS,Ferguson,Hardwoods DistributionConsumer:Fortune Brands Home&Security,Pool Corp.,SiteOne Landscape Supply,Central Garden&Pet Co.,Colabor Group,AMCON DistributingIndustrial,MRO&Safety:LAir Liquide,Fastenal,WW Grainger,MSC Industrial,Applied Industrial Tech,MRC Global,SPX Corp.,NOW,DXP Enterpris
50、esHealthcare:McKesson,Cardinal Health,AmerisourceBergen,Henry Schein,Patterson Companies,Owens&MinorSpecialty Chemicals:Burning Rock Biotech Limited,Univar Solutions,DKSH Holding,IMCD NVTechnology:Arrow Electronics,Rexel,TD SYNNEX Corp.,Avnet,WESCO International,Archer Materials,ScanSourceFoodservic
51、e:Sysco Corporation,Performance Food Group,Bunzl,US Foods,United Natural Foods,SpartanNash,VeritivHarris Williams LLC is a registered broker-dealer and member of FINRA and SIPC.Harris Williams&Co.Ltd is a private limited company incorporated under English law with its registered office at 8th Floor,
52、20 Farringdon Street,London EC4A 4AB,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&Co.Corporate Finance Advisors GmbH is registered in the commerc
53、ial register of the local court of Frankfurt am Main,Germany,under HRB 107540.The registered address is Bockenheimer Landstrasse 33-35,60325 Frankfurt am Main,Germany(email address:).Geschftsfhrer/Directors:Jeffery H.Perkins,Paul Poggi.(VAT No.DE321666994).Harris Williams is a trade name under which
54、 Harris Williams LLC,Harris Williams&Co.Ltd and Harris Williams&Co.Corporate Finance Advisors GmbH conduct business.Investment banking services are provided by Harris Williams LLC(“Harris Williams”).Harris Williams is a registered brokerdealer and member of FINRA and SIPC.Harris Williams&Co.Ltd is a
55、 private limited company incorporated under English law with its registered office at 8th Floor,20 Farringdon Street,London EC4A 4AB,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 Co
56、nduct Authority.Harris Williams&Co.Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main,Germany,under HRB 107540.The registered address is Bockenheimer Landstrasse3335,60325 Frankfurt am Main,Germany(email address:).Geschftsfhrers/Directors
57、:Jeffery H.Perkins,Paul Poggi,VAT No.DE321666994.Harris Williams is a trade name under which Harris Williams LLC,Harris Williams&Co.Ltd and Harris Williams&Co.Corporate Finance Advisors GmbH conduct business.The information and views contained in this content have been prepared in part by Harris Wil
58、liams.This content does not purport to be comprehensive or to contain all the information that a recipient may need in order to evaluate any investment or potential transaction.This content is not a research report,as such term is defined by applicable law and regulations,and is provided for informa
59、tional purposes only.Any and all information,including estimates,projections and other forwardlooking statements,presented in this document may involve various assumptions and significant elements of subjective judgment and analysis that may or may not be correct.Harris Williams has not independentl
60、y verified,and neither Harris Williams nor any other person will independently verify,any of the information,estimates,projections or forwardlooking statements contained herein or the assumptions on which they are based.The information contained in this document is made as of the date hereof unless
61、stated otherwise.Harris Williams does not expect to update or otherwise revise this document nor provide any additional information,nor correct any inaccuracies herein which may become apparent.This content is intended for institutional use only and should not be relied upon by retail investors or m
62、embers of the general public.The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation or warranty as to the accuracy or completeness of such information,and information contained herein that is based on material prepared by others may
63、 involve significant elements of subjective judgment and analysis which may or may not be correct.Opinions,estimates and projections contained herein constitute Harris Williams judgment and are subject to change without notice.This content is not to be construed as investment advice an offer to buy
64、or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular transaction,nor shall this content form the basis of any contract.It does not constitute and should not be construed as an endorsement or recommendation of any entities products or services.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.Disclosures and Disclaimers