Industrial Component Manufacturing€¦ · 2Aug17 Rockwell Automation Inc. Emerson Electric Co....

SECTORWATCH:

Industrial Component ManufacturingMarch 2018

Sector Dashboard

Public Basket Performance

Operational Metrics

Valuation Comparison

Recent Deals

Appendix

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company.This document is meant to be delivered only in conjunction with a verbal presentation, and is notauthorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of thedocument. All data cited in this document was believed to be accurate at the time of authorship andcame from publicly available sources. Neither 7 Mile Advisors nor 7M Securities make warranties orrepresentations as to the accuracy or completeness of third-party data contained herein. Thisdocument should be treated as confidential and for the use of the intended recipient only. Pleasenotify 7 Mile Advisors if it was distributed in error.

SECTORWATCH:


3 3All Rights Reserved to 7 Mile Advisors

All Rights Reserved to 7 Mile Advisors

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a long history together and a laser focus on our target markets, we

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Let us know if we can helpContact us if there are ways we can assist your M&A or financing

strategy.

OVERVIEW

Dashboard

summary metrics on the sector, with commentary on

market momentum by comparing the most recent 12-

month performance against the last 3-year averages

Valuation Comparison

a more graphical, detailed comparison of valuation

multiples for the public basket

Public Basket Performance

summary valuation and operating metrics for a basket of

comparable public companies

Recent Deals

the most recently announced sector deals

DASHBOARD

4All Rights Reserved to 7 Mile Advisors

Operating Metrics

Valuation

PUBLIC BASKET CONSTITUENTS

NasdaqGS:ROLL

NYSE:B

NYSE:TKR

NYSE:AXL

NYSE:BWA

NYSE:ITW

NasdaqGS:NNBR

NasdaqGS:TRS

NasdaqGS:AIMC

NYSE:NPO

Revenue Growth Momentum

5.7% 1 - year revenue growth compared to revenue growth

average for last 3 years

Pricing / Gross Margin Momentum

0.5% 1 - year gross profit % compared to gross profit %

average for last 3 years

Profitability Momentum

1.3% 1 - year EBITDA % compared to EBITDA % average for

last 3 years

Current revenue growth rate exceeds the average of the last 3 years by this

amount, indicating that market momentum is increasing

Current gross profit margin exceeds the average of the last 3 years gross profit

margin by this amount, indicating supplier pricing power

Current EBITDA margin exceeds the average of the last 3 years EBITDA margin

by this amount, a condition that may attract new entrants

9.1%

16.6%

29.7%

0% 6% 12% 18% 24% 30%

Median LTM Rev. Growth %

Median LTM EBITDA Margin %

Median LTM GP Margin %

1.8x

11.5x

17.5x

26.6x

0x 6x 12x 18x 24x 30x

Median TEV / LTM Revenue

Median TEV / LTM EBITDA

Median TEV / LTM EBIT

Median Price / LTM Earnings

PUBLIC BASKET PERFORMANCE


Company TEV $m

LTM Rev

$m

Rev

Growth

YoY GP % EBITDA %

TEV / Rev

X

TEV /

EBITDA X # FTEs

Rev / FTE

$k

NN, Inc. 1,159 620 -26% 28% 15% 1.9 11.5 - NA

TriMas Corporation 1,464 818 3% 27% 17% 1.8 10.7 4,000 204

Altra Industrial Motion Corp. 1,627 877 24% 32% 14% 1.9 13.0 4,580 191

EnPro Industries, Inc. 2,089 1,310 10% 34% 14% 1.6 11.5 6,000 218

RBC Bearings Incorporated 3,112 655 6% 38% 24% 4.7 19.4 3,401 193

Barnes Group Inc. 3,647 1,436 17% 35% 21% 2.5 12.1 5,375 267

The Timken Company 4,346 3,004 13% 27% 14% 1.4 10.2 15,006 200

American Axle & Manufacturing Holdings, Inc. 5,248 6,266 59% 18% 17% 0.8 5.0 25,000 251

BorgWarner Inc. 12,423 9,799 8% 22% 17% 1.3 7.4 29,000 338

Illinois Tool Works Inc. 63,362 14,314 5% 42% 27% 4.4 16.4 50,000 286

Average 9,848 3,910 12% 30% 18% 2.2 11.7 14,236 239

Median 3,380 1,373 9% 30% 17% 1.8 11.5 5,688 218

share price as of 16Mar18


Public Revenue Multiples Over Time

Public EBITDA Multiples Over Time PUBLIC BASKET VALUATION TRENDS

10.4x

1.6x

0x

2x

4x

6x

8x

10x

12x

14x

16x

Jun

-13

Sep

-13

Dec

-13

Mar

-14

Jun

-14

Sep

-14

Dec

-14

Mar

-15

Jun

-15

Sep

-15

Dec

-15

Mar

-16

Jun

-16

Sep

-16

Dec

-16

Mar

-17

Jun

-17

Sep

-17

Dec

-17

Mar

-18

TEV/EBITDA - Median TEV/Revenue - Median

TEV/EBITDA - Average TEV/Revenue - Average

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

Jun

-13

Sep

-13

Dec

-13

Mar

-14

Jun

-14

Sep

-14

Dec

-14

Mar

-15

Jun

-15

Sep

-15

Dec

-15

Mar

-16

Jun

-16

Sep

-16

Dec

-16

Mar

-17

Jun

-17

Sep

-17

Dec

-17

Mar

-18

TEV/Revenue - Median TEV/Revenue - Average

0x

2x

4x

6x

8x

10x

12x

14x

16x

Jun

-13

Sep

-13

Dec

-13

Mar

-14

Jun

-14

Sep

-14

Dec

-14

Mar

-15

Jun

-15

Sep

-15

Dec

-15

Mar

-16

Jun

-16

Sep

-16

Dec

-16

Mar

-17

Jun

-17

Sep

-17

Dec

-17

Mar

-18

TEV/EBITDA - Median TEV/EBITDA - Average


OPERATIONAL METRICS

LTM GROSS PROFIT MARGIN %LTM REVENUE GROWTH % LTM EBITDA %

(30%) - 30% 60%

Median

NN, Inc.

TriMas Corporation

Illinois Tool Works Inc.

RBC Bearings Incorporated

BorgWarner Inc.

EnPro Industries, Inc.

The Timken Company

Barnes Group Inc.

Altra Industrial MotionCorp.

American Axle &Manufacturing Holdings,…

- 10% 20% 30% 40%

Median


The Timken Company


NN, Inc.

BorgWarner Inc.

TriMas Corporation


Barnes Group Inc.



- 20% 40% 60%

Median


BorgWarner Inc.

The Timken Company

TriMas Corporation

NN, Inc.



Barnes Group Inc.




OPERATIONAL METRICS

Accounts receivable turnoverLTM Rev. per FTE x 000's Avg days sales outstanding

$- $100 $200 $300 $400

Median



The Timken Company

TriMas Corporation



Barnes Group Inc.


BorgWarner Inc.

0x 2x 4x 6x 8x 10x

Median

Barnes Group Inc.

EnPro Industries,Inc.

Illinois Tool WorksInc.

BorgWarner Inc.

The TimkenCompany

RBC BearingsIncorporated

Altra IndustrialMotion Corp.

TriMas Corporation

American Axle &Manufacturing…

- 20 40 60 80 100

Median


TriMas Corporation



The Timken Company

BorgWarner Inc.



Barnes Group Inc.


VALUATION

TEV / LTM EBITDATEV / LTM Revenue Price / LTM Earnings

0x 1x 2x 3x 4x 5x

Median

American Axle &…

BorgWarner Inc.

The Timken…

EnPro Industries,…

TriMas Corporation

Altra Industrial…

NN, Inc.

Barnes Group Inc.

Illinois Tool Works…

RBC Bearings…

0x 5x 10x 15x 20x

Median

American Axle &…

BorgWarner Inc.

The Timken…

TriMas Corporation

NN, Inc.

EnPro Industries,…

Barnes Group Inc.

Altra Industrial…

Illinois Tool Works…

RBC Bearings…

0x 20x 40x 60x

Median



The Timken Company

BorgWarner Inc.


NN, Inc.



TriMas Corporation

Barnes Group Inc.


Historical Valuation Multiples versus Gross Profit Historical Valuation Multiples versus Revenue Growth Rate

VALUATION

5x 7x 10x 11x 11x 11x 12x 13x 16x 19x

18.3%

21.6%

27.0% 27.2% 27.6%

33.9% 34.6%

31.7%

42.0%

38.4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0x

5x

10x

15x

20x

25x

LTM

GP

%

EBIT

DA

(x)

Series1 Series2

5x 7x 10x 11x 11x 11x 12x 13x 16x 19x

58.7%

8.0%

12.5%

3.0%

(25.6%)

10.3% 16.7%

23.7%

5.3%

6.1%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

0x

5x

10x

15x

20x

25x

LTM

RG

R%

EBIT

DA

(x)

Series1 Series2


RECENT TRANSACTIONS

Date Target Buyer Total Transaction Value Target Revenue TEV / Revenue TEV / EBITDA

19Jan18 All The Assets Of H.T. Sweeney & Son, Inc. NAPEC Inc. 20.40 50.00 0.4x -

4Jan18 Westinghouse Electric Company LLC Brookfield Business Partners L.P. 4,600.00 - - -

3Dec17 General Cable Corporation Prysmian S.p.A. 2,899.26 3,765.30 0.8x 22.8x

21Sep17 NAPEC Inc. Oaktree Capital Management, L.P. 258.86 334.84 0.8x 10.0x

2Oct17 CRS Reprocessing, LLC Triangle Capital Corporation 27.11 - - -

25Sep17 GE Industrial Systems ABB Ltd 2,600.00 2,700 1.0x -

2Aug17 Rockwell Automation Inc. Emerson Electric Co. 31,290.65 6,311 4.6x -

10Jul17 NN, Inc., Global Precision Bearing Components

Business and NN International B.V.

Tsubaki Nakashima Co., Ltd. 387.60 249 1.6x 11.1x

5Jul17 Multilift Wellbore Technology Ltd. Forum Energy Technologies, Inc. - - - -

22Jun17 Nor-Cal Products, Inc. Pfeiffer Vacuum Inc. 68.00 - - -

16Jun17 Reelcraft Industries, Inc. - 115.00 55 2.1x -

1Jun17 Qualiseal Technology Technetics Group LLC - - - -

30May17 DexKo Global Inc. KPS Capital Partners, LP - - - -

23May17 Complete Gear Services, Inc. Inland Truck Parts Company - - - -

9May17 Mountain Performance, Inc. Straightline Performance Inc. - - - -

7Apr17 Torsion Control Products, Inc. The Timken Company - 20 - -

28Mar17 BVR Technologies Co. Kaney Aerospace, Inc. - - - -

6Mar17 Gammaflux L.P. Barnes Group Inc. - - - -

14Feb17 Racing Winning Brands Dover Corporation; Kinderhook Industries 150.00 - - -

5Feb17 Newcor, Inc. CIE Automotive, S.A. 106.00 - - -

31Dec16 Wilhelm SCHULZ GmbH Precision Castparts Corp. - 214 - -

9Dec16 SONA BLW PRECISION FORGE, INC. Warm Forgings Pvt. Ltd. 4.68 - - -

7Dec16 Melbourne Trailer & Caravan Supplies Pty. Ltd. DexKo Global Inc. - - - -

1Dec16 CLARCOR Inc. Parker-Hannifin Corporation 4,437.42 1,385 3.1x 20.0x

3Nov16 Metaldyne Performance Group Inc. American Axle & Manufacturing Holdings, Inc. 3,418.49 2,879 1.1x 7.1x

1Nov16 EDT Corp. The Timken Company - - - -

25Oct16 Atlantic Precision Inc. Precision Castparts Corp. - - - -

21Oct16 GKN Stromag AG Altra Industrial Motion Corp. 215.14 142 1.5x -

31Aug16 Rockwell American Manufacturing Company DexKo Global Inc. - - - -

26Jul16 Powertrain Industries, Inc. Dorman Products, Inc. 6.00 - - -

12Jul16 Adval Tech Holding AG, Foboha Mold Making

Business

Barnes Group Inc. 134.74 - - -

8Jul16 Lovejoy, Inc. The Timken Company 66.00 56 1.2x -

23May16 General Cable Corporation, Automotive Ignition Wire

Business

Standard Motor Products, Inc. 71.00 96 0.7x -

26Apr16 Kaydon Corporation Stabilus S.A. 339.00 120 2.8x -

25Apr16 Rubber Fab Gasket & Molding, Inc. EnPro Industries, Inc. - 17 - -

28Feb16 Federal-Mogul Holdings Corporation (nka:Federal-

Mogul Holdings LLC)

IEH FM Holdings LLC 304.51 7,434 0.6x 6.4x

25Jan16 ZF TRW Automotive Holdings Corp., Engineered

Fasteners and Components Business

Illinois Tool Works Inc. 450.00 470 1.0x -

10Nov15 Andrews Laser Works Corporation Precision Castparts Corp. - - - -

24Nov15 Titan International, North American Brake And

Actuator Business

Dexter Axle Company, Inc. (nka:DexKo Global

Inc.)

- - - -

Appendix: Public Basket

Constituents

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company.This document is meant to be delivered only in conjunction with a verbal presentation, and is notauthorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of thedocument. All data cited in this document was believed to be accurate at the time of authorship andcame from publicly available sources. Neither 7 Mile Advisors nor 7M Securities make warranties orrepresentations as to the accuracy or completeness of third-party data contained herein. Thisdocument should be treated as confidential and for the use of the intended recipient only. Pleasenotify 7 Mile Advisors if it was distributed in error.

SECTORWATCH:


NN, Inc.


NN, Inc., a diversified industrial company, manufactures high precision

bearing components, industrial plastic products, and precision metal

components to various markets in North America, Western Europe,

Eastern Europe, South America, and China. The company operates

through three segments: Precision Bearing Components Group,

Precision Engineered Products Group, and Autocam Precision

Components Group. The Precision Bearing Components Group

segment manufactures and sells precision steel balls that are used

primarily by manufacturers of anti-friction bearings and constant velocity

joints; steel rollers, including tapered rollers used in automotive gearbox

applications, automotive wheel bearings, and various industrial

applications; cylindrical rollers used in various industrial applications;

and precision metal retainers for roller bearings. The Precision

Engineered Products Group segment manufactures a range of

components, assemblies, and instruments, such as surgical knives,

bioresorbable implants, surgical staples, orthopedic system tools,

laparoscopic devices, drug delivery devices, and catheter components

for the medical end market, electrical contacts, connectors, contact

assemblies and precision stampings for the electrical control end

market, precision components, assemblies and electrical contacts for

the automotive end market, and various engineered materials for the

aerospace and defense end market. This segment also manufactures

and sells precision plastic retainers for ball and roller bearings; and

various specialized plastic products, such as automotive under-the-

hood components, electronic instrument cases, and precision electronic

connectors and lenses. NN, Inc. was founded in 1980 and is

headquartered in Johnson City, Tennessee.


Date Key Development Headline

2/21/18 NN, Inc. (NASDAQ:NNBR) acquired Bridgemedica, LLC.

0.0x

0.6x

1.2x

1.8x

2.4x

3.0xRevenue Multiples - NN, Inc.

TEV/Revenue Average

0x

5x

10x

15x

20x

EBITDA Multiples - NN, Inc.

TEV/EBITDA Average

0x

20x

40x

60x

80x

100x

P/E Multiples - NN, Inc.

P/E Average

TriMas Corporation


TriMas Corporation manufactures and sells products for consumer

products, aerospace, industrial, petrochemical, refinery, and oil and gas

markets worldwide. The Packaging segment designs and manufactures

industrial closure products, including steel drum and plastic enclosures,

plastic drum closures, and plastic pail dispensers and plugs; and

specialty dispensing products, such as foamers, lotion pumps, fine mist

sprayers, and other packaging solutions for the cosmetic, personal

care, and household product markets, as well as specialty plastic

closures for bottles and jars, and dispensing pumps for the food and

beverage markets. The Aerospace segment offers fasteners, collars,

blind bolts, rivets, and precision-machined components for use in

commercial, maintenance and repair (MRO), and military aerospace

applications and platforms to OEMs, supply chain distributors,

MRO/aftermarket providers, and tier one suppliers. This segment offers

its products under the Monogram Aerospace Fasteners, Allfast

Fastening Systems, Mac Fasteners, and Martinic Engineering brands.

The Energy segment provides metallic and nonmetallic gaskets, bolts,

fasteners, and specialty products for the petrochemical, petroleum

refining, oil field, water/waste water treatment, and other industrial

markets under the Lamons brand. The Engineered Components

segment offers steel cylinders for use in the transportation, storage, and

dispensing of compressed gases under the Norris Cylinder name; and

various natural gas powered wellhead engines, compressors, and

replacement parts for use in oil and natural gas production, and other

industrial and commercial markets under the Arrow Engine nameThe

company is based in Bloomfield Hills, Michigan.



2/27/18 TriMas Corporation (NasdaqGS:TRS)

7/27/17 TriMas Seeks Acquisitions

0.0x

0.6x

1.2x

1.8x

2.4x

3.0xRevenue Multiples - TriMas Corporation

TEV/Revenue Average

0

3

6

9

12

15

18

EBITDA Multiples - TriMas Corporation

TEV/EBITDA Average

0

10

20

30

40

50

P/E Multiples - TriMas Corporation

P/E Average

Altra Industrial Motion Corp.


Altra Industrial Motion Corp. designs, produces, and markets

mechanical power transmission components worldwide. The company

operates through three segments: Couplings, Clutches and Brakes;

Electromagnetic Clutches and Brakes; and Gearing. It offers coupling

products under the Ameridrives, Bibby, Lamiflex, TB Wood’s, Huco

Dynatork, Guardian, and Stromag brands for food processing, oil and

gas, power generation, material handling, medical, metals, mining, and

mobile off-highway markets; and heavy duty clutches and brakes under

the Wichita Clutch, Twiflex, Industrial Clutch, Svendborg Brakes, and

Stromag brands for use in metal forming, oil and gas drilling platforms,

mining, material handling, marine, and wind turbine applications. The

company also provides overrunning clutches under the Formsprag,

Marland, and Stieber brands used in conveyors, gear reducers, hoists

and cranes, mining machinery, machine tools, paper machinery, and

other specialty machinery, as well as aerospace and defense market;

and engineered belted drives under the TB Wood’s brand for aggregate,

energy, chemical, and material handling markets. The company was

founded in 2004 and is headquartered in Braintree, Massachusetts.


3/7/18 Altra Industrial Motion Corp., Fortive Corporation - M&A

Call

3/6/18 Altra Industrial Motion Corp. (NasdaqGS:AIMC) entered

into a definitive agreement to acquire Jacobs Vehicle

Systems, Inc., Kollmorgen Corporation, Portescap U.S. Inc.

and Thomson Industries, Inc. from Fortive Corporation

(NYSE:FTV) in a reverse morris trust transaction for $3

billion.


0.0x

0.6x

1.2x

1.8x

2.4x

3.0x

Revenue Multiples - Altra Industrial Motion Corp.

TEV/Revenue Average

0

5

10

15

20EBITDA Multiples - Altra Industrial Motion Corp.

TEV/EBITDA Average

0

10

20

30

40

50P/E Multiples - Altra Industrial Motion Corp.

P/E Average



EnPro Industries, Inc. designs, develops, manufactures, and markets

engineered industrial products worldwide. The company’s Sealing

Products segment offers metallic, non-metallic, and composite material

gaskets; dynamic seals; compression packings; resilient metal seals;

elastomeric seals; hydraulic components; expansion joints; flange

sealing and isolation products; pipeline casing spacers/isolators; casing

end seals; modular sealing systems for sealing pipeline penetrations;

hole forming products; manhole infiltration sealing systems; bellows and

bellows assemblies; pedestals; custom-engineered mechanical seals;

polytetrafluoroethylene products; and heavy-duty commercial vehicle

parts. This segment’s products are used in the chemical and

petrochemical processing, petroleum extraction and refining, pulp and

paper processing, power generation, food and pharmaceutical

processing, primary metal manufacturing, mining, water and waste

treatment, heavy-duty trucking, aerospace, medical, filtration, and

semiconductor fabrication industries. Its Engineered Products segment

offers self-lubricating, non-rolling, metal-polymer, solid polymer, and

filament wound bearing products; aluminum blocks for hydraulic

applications; and precision engineered components and lubrication

systems for reciprocating compressors. Its products has applications in

the automotive, pharmaceutical, pulp and paper, natural gas, health,

power generation, machine tools, air treatment, refining, petrochemical,

and general industrial markets. EnPro Industries, Inc. was founded in

2002 and is headquartered in Charlotte, North Carolina.


2/13/18 EnPro Industries Mulls Acquisitions

7/31/17 EnPro Industries Seeks Acquisitions


0.0x

0.6x

1.2x

1.8x

2.4x

3.0x

Revenue Multiples - EnPro Industries, Inc.

TEV/Revenue Average

0

4

8

12

16

20

EBITDA Multiples - EnPro Industries, Inc.

TEV/EBITDA Average

0

30

60

90

120

150

P/E Multiples - EnPro Industries, Inc.

P/E Average



RBC Bearings Incorporated manufactures and markets engineered

precision bearings and components in North America, Europe, Asia,

and Latin America. It operates in four segments: Plain Bearings, Roller

Bearings, Ball Bearings, and Engineered Products. The Plain Bearings

segment produces plain bearings with self-lubricating or metal-to-metal

designs, including rod end bearings, spherical plain bearings, and

journal bearings that are primarily used to rectify misalignments in

various mechanical components, such as aircraft controls, helicopter

rotors, or in heavy mining and construction equipment. The Roller

Bearings segment provides heavy duty needle roller bearings with inner

rings, tapered roller bearings, track rollers, and aircraft roller bearings,

which are anti-friction bearings that use rollers instead of balls. The Ball

Bearings segment specializes in high precision aerospace, airframe

control, thin section, and commercial ball bearings that utilize high

precision ball elements to reduce friction in high speed applications.

The Engineered Products segment offers engineered hydraulics and

valves for aircraft and submarine applications, and aerospace and

defense aftermarket services; fasteners; precision mechanical

components, which are used in various general industrial applications;

and machine tool collets that are used for holding circular or rod. It

serves the construction and mining, oil and natural resource extraction,

heavy truck, marine, rail and train, packaging, semiconductor

machinery, and other general industrial markets. The company offers its

products through direct sales force, and a network of industrial and

aerospace distributors. RBC Bearings Incorporated was founded in

1919 and is headquartered in Oxford, Connecticut.


2/6/18 RBC Bearings Mulls Acquisitions

5/31/17 RBC Bearings Mulls Acquisition


0x

1x

2x

3x

4x

5x

6x

Revenue Multiples - RBC Bearings Incorporated

TEV/Revenue Average

0

5

10

15

20

25

EBITDA Multiples - RBC Bearings Incorporated

TEV/EBITDA Average

0

10

20

30

40

50

P/E Multiples - RBC Bearings Incorporated

P/E Average

Barnes Group Inc.


Barnes Group Inc. operates as an industrial and aerospace

manufacturer, and service provider in the United States and

internationally. Its Industrial segment offers precision components,

products, and systems for applications serving various customers in

end-markets, such as transportation, industrial equipment, consumer

products, packaging, electronics, medical devices, and energy. This

segment also manufactures and supplies precision mechanical

products, including mechanical springs, high-precision punched and

fine-blanked components, and retention rings; force and motion

solutions for sheet metal forming, heavy duty suspension, and other

markets; and hot runner systems, mold cavity sensors and process

control systems, and precision high cavitation mold for injection molding

applications. The company’s Aerospace segment produces fabricated

and precision-machined components and assemblies for original

equipment manufacturer turbine engine, airframe, and industrial gas

turbine builders, as well as for the military. It also offers maintenance,

repair, and overhaul services for jet engine components to turbine

engine manufacturers, commercial airlines, and the military. In addition,

this segment manufactures aerospace aftermarket spare parts. The

company sells its products primarily through its direct sales force and

distribution channels. Barnes Group Inc. was founded in 1857 and is

headquartered in Bristol, Connecticut.


2/16/18 Barnes Group Mulls Acquisitions

7/28/17 Barnes Group Seeks Acquisitions


0x

1x

2x

3x

4x

Revenue Multiples - Barnes Group Inc.

TEV/Revenue Average

0

5

10

15

20

EBITDA Multiples - Barnes Group Inc.

TEV/EBITDA Average

0

8

16

24

32

40

P/E Multiples - Barnes Group Inc.

P/E Average

The Timken Company


The Timken Company engineers, manufactures, and markets bearings,

transmissions, gearboxes, belts, chains, lubrication systems, couplings,

industrial clutches and brakes, and related products worldwide. It

operates through two segments, Mobile Industries and Process

Industries. The Mobile Industries segment offers a portfolio of bearings,

seals, lubrication devices, and systems, as well as power transmission

components, engineered chains, augers, belts, couplings, clutches and

brakes, and related products and maintenance services to original

equipment manufacturers (OEMs) and end users of off-highway

equipment for the agricultural, construction, mining, outdoor power

equipment, and power sports markets; and on-highway vehicles,

including passenger cars, light trucks, and medium- and heavy-duty

trucks, as well as rail cars and locomotives. It also provides power

transmission systems and flight-critical components for civil and military

aircraft, which comprise bearings, helicopter transmission systems,

rotor-head assemblies, turbine engine components, gears, and

housings. The Timken Company was founded in 1899 and is

headquartered in North Canton, Ohio.


2/7/18 Timken Mulls Acquisitions

7/2/17 The Timken Company (NYSE:TKR) completed the

acquisition of Groeneveld Groep B.V. from Henk

Groeneveld.

6/26/17 The Timken Company (NYSE:TKR) entered into an

agreement to acquire Groeneveld Groep B.V. from Henk

Groeneveld for $280 million.

5/4/17 The Timken Company (NYSE:TKR) acquired EBO Group

from an employee of EBO Group.

4/6/17 The Timken Company (NYSE:TKR) acquired Torsion

Control Products, Inc.


0.0x

0.5x

1.0x

1.5x

2.0xRevenue Multiples - The Timken Company

TEV/Revenue Average

0

3

6

9

12

15EBITDA Multiples - The Timken Company

TEV/EBITDA Average

0

8

16

24

32

40

P/E Multiples - The Timken Company

P/E Average

American Axle & Manufacturing Holdings, Inc.


American Axle & Manufacturing Holdings, Inc., together with its

subsidiaries, designs, engineers, validates, and manufactures driveline,

metal forming, powertrain, and casting products. The company’s

Driveline segment offers axles, driveshafts, power transfer units, rear

drive modules, transfer cases, and electric and hybrid driveline products

and systems for light trucks, sport utility vehicles, crossover vehicles,

passenger cars, and commercial vehicles. Its Metal Forming segment

provides axle and transmission shafts, ring and pinion gears, differential

gears, transmission gears and shafts, and suspension components for

original equipment manufacturers and automotive suppliers. The

company’s Powertrain segment offers transmission module and

differential assemblies, transmission valve bodies, connecting rod

forging and assemblies, torsional vibration dampers, and variable valve

timing products for original equipment manufacturers and automotive

suppliers. Its Casting segment produces thin wall castings and high

strength ductile iron castings, as well as differential cases, steering

knuckles, control arms, brackets, and turbo charger housings for the

light vehicle, commercial, and industrial markets. The company has

operations in the United States, Canada, Mexico, South America,

China, Europe, other Asian countries, and internationally. American

Axle & Manufacturing Holdings, Inc. was founded in 1994 and is

headquartered in Detroit, Michigan.


4/5/17 American Axle & Manufacturing Holdings Inc. (NYSE:AXL)

completed the acquisition of Metaldyne Performance Group

Inc. (NYSE:MPG) from American Securities, Levin Capital

Strategies, L.P. and others.

3/28/17 American Axle & Manufacturing Holdings, Inc. (NYSE:AXL)

acquired U.S. Manufacturing de Mexico, S. de R.L. de C.V.

from U.S. Manufacturing Corporation.


0.0x

0.4x

0.8x

1.2x

1.6x

2.0x

Revenue Multiples - American Axle & Manufacturing Holdings, Inc.

TEV/Revenue Average

0

3

6

9

12

EBITDA Multiples - American Axle & Manufacturing Holdings, Inc.

TEV/EBITDA Average

0

3

6

9

12

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18

P/E Multiples - American Axle & Manufacturing Holdings, Inc.

P/E Average

BorgWarner Inc.


BorgWarner Inc. provides solutions for combustion, hybrid, and electric

vehicles worldwide. It operates through two segments, Engine and

Drivetrain. It also provides emissions systems, including electric air

pumps and exhaust gas recirculation (EGR) modules, EGR coolers,

EGR valves, glow plugs, and instant starting systems; turbocharger

actuators; and thermal systems products comprising viscous fan drives,

polymer fans, and coolant pumps. The Drivetrain segment develops

and manufactures friction and mechanical products, including dual and

friction clutch modules, friction and separator plates, transmission

bands, torque converter and one-way clutches, and torsional vibration

dampers. It also offers control products comprising electro-hydraulic

solenoids, transmission solenoid modules, and dual clutch control

modules; torque management products, such as rear-wheel drive/all-

wheel drive (AWD) transfer case systems, front wheel drive-AWD

coupling systems, and cross-axle coupling systems; starters,

alternators, and hybrid electric motors; and motor controllers, battery

chargers, and uninterrupted power source systems. BorgWarner Inc.

was founded in 1987 and is headquartered in Auburn Hills, Michigan.


9/26/17 BorgWarner Inc. (NYSE:BWA) completed the acquisition of

Sevcon, Inc. (NasdaqCM:SEV) from Meson Capital

Partners LP and Meson Constructive Capital LP managed

by Meson Capital Partners LLC, Ryan J. Morris and Bassi

Holding S.r.l.

7/16/17 BorgWarner Inc. (NYSE:BWA) entered into an agreement

to acquire Sevcon, Inc. (NasdaqCM:SEV) from Meson

Capital Partners LP and Meson Constructive Capital LP

managed by Meson Capital Partners LLC, Ryan J. Morris

and Bassi Holding S.r.l. for approximately $130 million.


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3.0xRevenue Multiples - BorgWarner Inc.

TEV/Revenue Average

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15EBITDA Multiples - BorgWarner Inc.

TEV/EBITDA Average

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15

30

45

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75

90P/E Multiples - BorgWarner Inc.

P/E Average



Illinois Tool Works Inc. manufactures and sells industrial products and

equipment worldwide. It operates through seven segments: Automotive

OEM; Food Equipment; Test & Measurement and Electronics; Welding;

Polymers & Fluids; Construction Products; and Specialty Products. The

Automotive OEM segment offers plastic and metal components,

fasteners, and assemblies for automobiles, light trucks, and other

industrial uses. The Food Equipment segment produces warewashing,

cooking, refrigeration, and food processing equipment; kitchen exhaust,

ventilation, and pollution control systems; and food equipment,

maintenance, and repair services. The Test & Measurement and

Electronics segment produces equipment, consumables, and related

software for testing and measuring of materials and structures, as well

as equipment and consumables used in the production of electronic

subassemblies and microelectronics. The Welding segment produces

arc welding equipment; metal arc welding consumables and related

accessories; and metal jacketing and other insulation products for

various industrial and commercial applications. The Polymers & Fluids

segment produces adhesives, sealants, lubrication and cutting fluids,

and fluids and polymers for auto aftermarket maintenance and

appearance. The Construction Products segment produces engineered

fastening systems and solutions for the residential construction,

renovation/remodel, and commercial construction markets. The

Specialty Products segment offers beverage packaging equipment and

consumables, product coding and marking equipment and

consumables, and appliance components and fasteners. Illinois Tool

Works Inc. was founded in 1912 and is headquartered in Glenview,

Illinois.


12/1/17 Illinois Tool Works Seeks Acquisition

6/8/17 Illinois Tool Works Seeks Acquisitions


0x

1x

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3x

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6x

Revenue Multiples - Illinois Tool Works Inc.

TEV/Revenue Average

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8

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EBITDA Multiples - Illinois Tool Works Inc.

TEV/EBITDA Average

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6

12

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24

30P/E Multiples - Illinois Tool Works Inc.

P/E Average

7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally.

We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a

close-knit team with a long history together and a laser focus on our target markets, we help our clients sell their

companies, raise capital, grow through acquisitions, and evaluate new markets. Securities offered through 7M

Securities LLC.

CONTACT INFORMATION


Charlotte | Los Angeles | Tampa | Houston | Chicago

Leroy Davis, Partner 704.899.5962 [email protected]

Tripp Davis, Partner 704.899.5762 [email protected]

Andy Johnston, Partner 704.899.5961 [email protected]

Tom Dinnegan, Managing Director 310. 426.2410 [email protected]

Ben Lunka, Managing Director 704.496.2995 [email protected]

Jeff Stoecklein, Managing Director 312-373-3737 [email protected]

Kristina Sergueeva, Director 704.899.5149 [email protected]

Neil Churman, Director 704.899.5960 x 121 [email protected]

John Cooper, Director 704.973.3996 [email protected]

Tim Frye, Director 704.973.3994 [email protected]

Casey Augustine, Business Development - Manager 704.973.3999 [email protected]

Nicholas Prendergast, Financial Analyst 704.899.5960 [email protected]

Ariail Siggins, Marketing Director 704.899.5960 x 123 [email protected]

Rory Julyan, Associate 704.899.5960 [email protected]

Chevonese Dacres, Analyst 360.499.1502 [email protected]

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