M&A MARKETMONITORINDUSTRIAL MACHINERY APRIL 2019

5 Yr

4 Yr

3 Yr

2 Yr

1 Yr

PP

About the DataThe information presented in this report is an analysis of deals in the United States or Canada. A deal is described as any closed or announced M&A transaction where the target is headquartered in the United States or Canada, financial terms of the transaction have been disclosed, and the target has an industry classification that falls into the subject industry group and as such may not be representative of your company's market valuation. Past performance is not indicative of future results. Certain adjustments have been made to the information

to exclude transactions which are not specific to the industry or incorporate relevant transactions for which an industry classification was omitted.

US & Canada M&A Market OverviewOverall Market Transactions

Source: S&P Capital IQ; ArkMalibu; Other publicly available sources

*YTD as of 03/31/2019

22,926 20,858

18,487 19,455

5,196

11.1x 10.7x12.0x

11.2x10.5x

-

5,000

10,000

15,000

20,000

25,000

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

2015 2016 2017 2018 2019 YTD*

Dea

l C

oun

t

Med

ian

TE

V/ L

TM

EB

ITD

A

Mult

iple

Deal Count Median TEV/ LTM EBITDA Multiple

Industrial Machinery

5 Yr

4 Yr

3 Yr

2 Yr

1 Yr

About the DataThe information presented in this report is an analysis of deals in the United States or Canada. A deal is described as any closed or announced M&A transaction where the target is headquartered in the United States or Canada, financial terms of the transaction have been disclosed, and the target has an industry classification that falls into the subject industry group and as such may not be representative of your company's market valuation. Past performance is not indicative of future results. Certain adjustments have been made to the information

to exclude transactions which are not specific to the industry or incorporate relevant transactions for which an industry classification was omitted.

Source: S&P Capital IQ; ArkMalibu; Other publicly available sources

*YTD as of 03/31/2019

US & Canada M&A Market OverviewIndustrial Machinery Transactions

434 389 370 394

124

9.2x8.8x

9.7x9.0x

6.6x

0

50

100

150

200

250

300

350

400

450

500

2015 2016 2017 2018 2019 YTD*

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

Dea

l C

oun

t

Med

ian

TE

V/ L

TM

EB

ITD

A

Mult

iple

Deal Count Median TEV/ LTM EBITDA Multiple

Public Companies' Trading Metrics | Industrial MachineryAs of: 3/31/2019

USD in millions except per share price

Last Equity Enterprise EBITDA

Price Value Value Margin 2017A LTM NTM 2017A LTMLast Sale PriceMarket CapitalizationTotal Enterprise ValueLTM EBITDA Margin %CY - 1 TEV/Total RevenuesLTM TEV/Total RevenuesNTM TEV/Forward Total RevenueCY - 1 TEV/EBITDALTM TEV/EBITDANTM TEV/Forward EBITDA

Construction Machinery and Heavy Trucks

Alamo Group Inc. 99.94 1,173 1,225 12.3% 1.6 1.2 1.1 13.6 9.9

Allison Transmission Holdings, Inc. 44.92 5,626 7,927 40.7% 3.9 2.9 3.0 10.5 7.2

Astec Industries, Inc. 37.76 850 883 -3.9% 1.1 0.8 0.7 15.6 NM

Blue Bird Corporation 16.93 447 638 4.8% 0.6 0.6 0.6 9.2 12.7

Caterpillar Inc. 135.49 77,980 107,646 20.3% 2.9 2.0 1.9 18.1 9.7

Cummins Inc. 157.87 24,776 26,638 12.9% 1.6 1.1 1.1 11.0 7.7

Navistar International Corporation 32.30 3,200 7,507 7.7% 1.0 0.7 0.7 15.9 9.1

NFI Group Inc. 24.50 1,495 2,163 12.6% 1.4 0.8 0.9 10.6 6.7

Oshkosh Corporation 75.13 5,263 5,921 10.9% 1.0 0.7 0.7 11.3 6.9

PACCAR Inc 68.14 23,630 29,300 13.7% 1.7 1.2 1.3 12.4 9.1

REV Group, Inc. 10.95 688 1,147 4.4% 1.0 0.5 0.5 18.4 10.9

Terex Corporation 32.13 2,262 3,114 5.7% 1.0 0.6 0.7 28.8 10.6

The Manitowoc Company, Inc. 16.41 585 718 5.7% 1.1 0.4 0.4 41.9 6.8

Median 37.76 2,262 3,114 10.9% 1.1 0.8 0.7 13.6 9.1

Agricultural and Farm Machinery

AGCO Corporation 69.55 5,335 6,529 8.4% 1.0 0.7 0.7 10.9 7.9

Deere & Company 159.84 50,908 91,459 15.3% 2.8 2.4 2.5 18.3 15.5

Lindsay Corporation 96.79 1,044 1,024 7.3% 1.8 1.9 2.1 15.7 20.5

The Toro Company 68.84 7,305 7,367 16.4% 2.8 2.8 2.6 16.2 16.4

Titan International, Inc. 5.97 358 844 6.2% 0.8 0.5 0.5 21.4 8.2

Median 69.55 5,335 6,529 8.4% 1.8 1.9 2.1 16.2 15.5

Chemical Processing Machinery and Equipment

Milacron Holdings Corp. 11.32 794 1,442 14.9% 1.8 1.1 1.2 11.6 7.7

Standex International Corporation 73.40 929 1,126 14.7% 1.8 1.3 1.4 13.7 8.7

Median 42.36 862 1,284 14.8% 1.8 1.2 1.3 12.7 8.2

Food and Beverage Machinery

Illinois Tool Works Inc. 143.53 46,923 52,803 27.5% 4.4 3.6 3.6 16.4 13.0

Category / Company Valuation Statistics Multiples Data

EV / Revenue (x) EV / EBITDA (x)

NTM

9.1

7.7

7.1

7.8

9.3

6.9

8.5

6.7

7.3

10.2

6.6

6.4

5.4

7.3

7.5

15.2

15.4

15.7

6.7

15.2

6.7

9.0

7.8

12.7

to exclude transactions which are not specific to the industry or incorporate relevant transactions for which an industry classification was omitted.

Source: SP Capital IQ; ArkMalibu;

EV = enterprise value; LTM = last twelve months; NTM = next twelve months

NM = Not Meaningful

Public Companies' Trading Metrics | Industrial MachineryAs of: 3/31/2019

USD in millions except per share price

Last Equity Enterprise EBITDA

Price Value Value Margin 2017A LTM NTM 2017A LTM

Category / Company Valuation Statistics Multiples Data

EV / Revenue (x) EV / EBITDA (x)

NTM

to exclude transactions which are not specific to the industry or incorporate relevant transactions for which an industry classification was omitted.

Dover Corporation 93.80 13,621 16,389 17.0% 2.5 2.3 2.3 14.6 13.8

The Middleby Corporation 130.03 7,243 9,064 22.2% 3.7 3.3 3.0 15.6 15.0

SPX FLOW, Inc. 31.90 1,357 1,923 12.0% 1.4 0.9 0.9 14.0 7.7

John Bean Technologies Corporation 91.89 2,897 3,241 12.9% 2.5 1.7 1.7 21.1 13.1

Welbilt, Inc. 16.38 2,305 3,557 18.0% 3.1 2.2 2.1 16.5 12.4

Standex International Corporation 73.40 929 1,126 14.7% 1.8 1.3 1.4 13.7 8.7

Median 91.89 2,897 3,557 17.0% 2.5 2.2 2.1 15.6 13.0

12.2

13.0

7.4

12.4

11.2

9.0

12.2

Source: SP Capital IQ; ArkMalibu;

EV = enterprise value; LTM = last twelve months; NTM = next twelve months

NM = Not Meaningful

Public Companies' Trading Metrics | Industrial MachineryAs of: 3/31/2019

USD in millions except per share price

Last Equity Enterprise EBITDA

Price Value Value Margin 2017A LTM NTM 2017A LTM

Category / Company Valuation Statistics Multiples Data

EV / Revenue (x) EV / EBITDA (x)

NTM

to exclude transactions which are not specific to the industry or incorporate relevant transactions for which an industry classification was omitted.

Fluid/Material Handling and Processing

Actuant Corporation 24.37 1,490 1,805 13.0% 1.7 1.5 1.6 15.1 11.7

Columbus McKinnon Corporation 34.35 802 1,080 14.6% 1.7 1.2 1.3 14.0 8.5

Crane Co. 84.62 5,067 5,676 17.2% 2.0 1.7 1.7 11.3 9.8

Dover Corporation 93.80 13,621 16,389 17.0% 2.5 2.3 2.3 14.6 13.8

Flowserve Corporation 45.14 5,913 6,794 12.1% 1.8 1.8 1.7 14.9 14.3

Graco Inc. 49.52 8,196 8,341 28.8% 5.4 5.0 4.8 18.8 17.5

Hillenbrand, Inc. 41.53 2,597 2,910 16.4% 2.0 1.6 1.6 11.2 9.9

IDEX Corporation 151.74 11,501 11,883 26.5% 4.8 4.8 4.6 18.8 18.0

ITT Inc. 58.00 5,069 4,636 17.0% 1.8 1.7 1.6 12.3 9.9

Parker-Hannifin Corporation 171.62 22,202 26,577 17.4% 2.5 1.8 1.8 15.8 10.2

Rexnord Corporation 25.14 2,634 3,649 18.2% 1.9 1.6 1.7 11.2 8.9

Xylem Inc. 79.04 14,192 16,218 18.3% 3.2 3.1 3.0 18.1 16.9

Median 53.76 5,491 6,235 17.1% 2.0 1.7 1.7 14.7 11.0

11.2

8.0

8.8

12.2

12.3

16.3

9.5

17.1

8.9

10.2

8.0

14.9

10.7

Source: SP Capital IQ; ArkMalibu;

EV = enterprise value; LTM = last twelve months; NTM = next twelve months

NM = Not Meaningful

Public Companies' Trading Metrics | Industrial MachineryAs of: 3/31/2019

USD in millions except per share price

Last Equity Enterprise EBITDA

Price Value Value Margin 2017A LTM NTM 2017A LTM

Category / Company Valuation Statistics Multiples Data

EV / Revenue (x) EV / EBITDA (x)

NTM

to exclude transactions which are not specific to the industry or incorporate relevant transactions for which an industry classification was omitted.

Packaging Machinery

Graphic Packaging Holding Company 12.63 3,733 7,397 15.3% 1.6 1.2 1.2 10.3 8.0

Illinois Tool Works Inc. 143.53 46,923 52,803 27.5% 4.4 3.6 3.6 16.4 13.0

Nordson Corporation 132.52 7,597 8,901 26.2% 4.8 4.0 3.8 17.6 15.4

Sealed Air Corporation 46.06 7,168 10,371 18.2% 1.6 2.2 2.2 10.6 12.1

The Middleby Corporation 130.03 7,243 9,064 22.2% 3.7 3.3 3.0 15.6 15.0

Winpak Ltd. 32.27 2,098 1,775 21.7% 2.5 2.0 2.0 11.1 9.0

Median 88.05 7,206 8,982 21.9% 3.1 2.8 2.6 13.3 12.5

Paper and Forest Products Machinery

Kadant Inc. 87.96 983 1,115 18.0% 2.8 1.8 1.6 16.0 9.8

SpartanNash Company 15.87 571 1,250 2.4% 0.2 0.2 0.1 7.2 6.3

Sysco Corporation 66.76 34,279 42,413 5.6% 0.7 0.7 0.7 13.1 12.8

United Natural Foods, Inc. 13.22 672 3,864 2.6% 0.3 0.3 0.2 9.0 10.6

US Foods Holding Corp. 34.91 7,598 11,121 4.2% 0.4 0.5 0.4 11.3 11.0

Median 34.91 983 3,864 4.2% 0.4 0.5 0.4 11.3 10.6

Diversified Industrial Machinery

Archer-Daniels-Midland Company 43.13 24,157 30,606 4.5% 0.5 0.5 0.5 9.8 9.0

Chart Industries, Inc. 90.52 2,860 3,291 14.0% 2.1 3.0 2.5 22.1 21.7

Colfax Corporation 29.68 3,483 4,644 12.5% 1.7 1.3 0.9 13.8 10.1

Donaldson Company, Inc. 50.06 6,390 6,916 16.7% 2.7 2.4 2.3 16.0 14.6

ITT Inc. 58.00 5,069 4,636 17.0% 1.8 1.7 1.6 12.3 9.9

Kadant Inc. 87.96 983 1,115 18.0% 2.8 1.8 1.6 16.0 9.8

Tennant Company 62.09 1,125 1,396 10.7% 1.7 1.2 1.2 16.3 11.6

Watts Water Technologies, Inc. 80.82 2,751 2,900 15.4% 2.0 1.9 1.8 13.6 12.1

Median 60.05 3,171 3,963 14.7% 1.9 1.7 1.6 14.9 10.9

11.3

9.8

7.3

12.7

13.6

11.1

13.0

8.9

11.9

8.4

5.7

11.6

5.9

9.6

8.4

8.8

17.1

6.0

13.2

8.9

8.4

10.6

Source: SP Capital IQ; ArkMalibu;

EV = enterprise value; LTM = last twelve months; NTM = next twelve months

NM = Not Meaningful

ABOUTArkMalibu advises business owners by making highly informed and relevant recommendations on steps towards finding a great partner or monetizing their businesses. We help you maximize value by effectively conveying your company’s investment merits and minimizing the buyers’ perceived investment risks. As one of the most trusted boutique investment banking firms, we leverage our proprietary process to serve our privately-owned clients based on our experience, creativity, and avoidance of conflicts of interest. We focus our energy and talent on turning culture into capital so that we can creatively deliver value beyond our clients’ expectations.

Sell-Side Focused• ArkMalibu’s unique business model is to focus solely

on sell-side clients• Experienced and expert negotiators motivated to

meet all your goals• No conflicts of interest – other investment banks often

find themselves negotiating against their regular clients on the buyside

Art of the Possible• ArkMalibu has a strong track record of achieving

maximum value for our clients• Creativity to explore less obvious avenues for meeting

our client’s goals and achieving maximum value

Four Boxes Methodology• Proprietary process minimizes buyers’ perceived risks

and unlocks value for your company• Focus on your corporate culture fit

Client Focus• Active senior banker involvement• Financial advocates – effectively execute the client’s

chosen deal strategy• Financial confidants – confidentiality is of utmost

importance

Experienced Team• Our team has decades of M&A experience• Decades of operations, leadership, and strategic