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M&A MARKETMONITORDISTRIBUTION 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

Distribution

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 OverviewDistribution Transactions

996 882

776 798

269

8.9x

10.2x

14.0x

10.1x

5.9x

0

200

400

600

800

1,000

1,200

2015 2016 2017 2018 2019 YTD*

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

Dea

l C

oun

t

Med

ian

TE

V/

LT

M E

BIT

DA

M

ult

iple

Deal Count Median TEV/ LTM EBITDA Multiple

| DistributionAs 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

Broadline

AutoZone, Inc. 1,024.12 25,488 30,352 22.6% 2.2 2.7 2.5 10.0 11.9

Bunzl plc 32.97 10,894 12,707 7.0% 1.0 1.1 1.0 14.1 15.3

Dorman Products, Inc. 88.09 2,891 2,848 20.7% 2.1 2.9 2.7 9.7 14.1

Genuine Parts Company 112.03 16,350 19,181 7.5% 0.9 1.0 1.0 12.4 13.6

O'Reilly Automotive, Inc. 388.30 30,438 33,824 21.9% 2.6 3.5 3.3 11.9 16.2

Uni-Select Inc. 10.37 440 846 6.5% 1.1 0.5 0.5 12.6 7.3

Median 100.06 13,622 15,944 14.1% 1.6 1.9 1.8 12.1 13.9

Building Products & Construction

Beacon Roofing Supply, Inc. 32.16 2,201 5,613 7.1% 1.1 0.8 0.8 13.0 11.3

Builders FirstSource, Inc. 13.34 1,539 3,090 6.0% 0.6 0.4 0.4 11.4 6.6

Ferguson plc 63.60 14,665 16,543 7.9% 0.9 0.8 0.7 11.7 9.7

Foundation Building Materials, Inc. 9.84 422 1,005 7.4% 0.6 0.5 0.5 8.2 6.6

HD Supply Holdings, Inc. 43.35 7,404 9,613 13.5% 1.2 1.6 1.5 10.2 11.8

Houston Wire & Cable Company 6.33 105 175 4.5% 0.6 0.5 NM 48.8 10.9

Pool Corporation 164.97 6,533 7,181 11.4% 2.1 2.4 2.2 19.0 21.0

SiteOne Landscape Supply, Inc. 57.15 2,342 2,897 7.4% 1.9 1.4 1.2 25.9 18.4

Watsco, Inc. 143.21 5,381 5,688 8.5% 1.4 1.3 1.2 16.3 14.4

Median 43.35 2,342 5,613 7.4% 1.1 0.8 1.0 13.0 11.3

14.2

13.9

10.2

9.0

5.9

10.3

NM

18.3

15.3

7.9

12.8

10.0

6.6

NTM

11.7

13.8

13.1

12.4

Category / Company Valuation Statistics Multiples Data

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

Source: SP Capital IQ; ArkMalibu; EV = enterprise value; LTM = last twelve months; NTM = next twelve months NM = Not Meaningful




Price Value Value Margin 2017A LTM NTM 2017A LTM NTM



Diversified Industrial

Applied Industrial Technologies, Inc. 59.47 2,305 3,193 9.5% 1.1 0.9 0.9 12.8 9.8

DXP Enterprises, Inc. 38.92 684 886 7.8% 0.8 0.7 0.7 12.2 9.4

Fastenal Company 64.31 18,403 18,736 22.9% 3.8 3.8 3.4 16.3 16.5

Kaman Corporation 58.44 1,628 1,903 8.6% 1.1 1.0 1.0 12.4 11.7

Lawson Products, Inc. 31.36 281 286 4.4% 0.7 0.8 0.8 40.5 18.6

MRC Global Inc. 17.48 1,477 2,473 4.8% 0.7 0.6 0.6 17.8 12.4

MSC Industrial Direct Co., Inc. 82.71 4,577 5,088 15.5% 2.1 1.6 1.5 13.5 9.7

National Oilwell Varco, Inc. 26.64 10,215 11,569 10.7% 2.2 1.4 1.3 NM 12.9

Vallourec SA 2.35 1,075 3,936 3.8% 1.3 0.9 0.8 NM 23.1

Veritiv Corporation 26.32 419 1,349 1.3% 0.2 0.2 0.2 13.3 12.3

W.W. Grainger, Inc. 300.93 16,733 18,587 14.4% 1.5 1.7 1.6 11.8 11.6

Median 38.92 1,628 3,193 8.6% 1.1 0.9 0.9 13.3 12.3

Electrical

Anixter International Inc. 56.11 1,879 3,049 4.7% 0.5 0.4 0.3 10.0 7.8

Rexel S.A. 11.29 3,409 5,703 4.8% 0.5 0.4 0.4 10.8 8.0

WESCO International, Inc. 53.01 2,396 3,535 5.0% 0.6 0.4 0.4 12.1 8.7

Median 53.01 2,396 3,535 4.8% 0.5 0.4 0.4 10.8 8.0

6.9

6.8

7.9

6.9

13.1

10.8

7.1

10.7

9.8

15.2

11.4

9.7

8.8

9.8

9.2

8.2








Energy/Oil & Gas

DCP Midstream, LP 33.05 4,737 10,930 7.8% 3.8 1.1 0.9 18.9 9.6

Enbridge Inc. 36.21 73,262 130,367 22.0% 4.1 3.8 3.6 18.0 14.9

EnerSys 65.16 2,805 3,504 12.1% 1.3 1.3 1.0 9.4 10.7

Global Partners LP 19.66 664 2,010 2.0% 0.2 0.2 0.2 6.8 7.8

Martin Midstream Partners L.P. 12.45 486 1,149 12.5% 1.6 1.2 1.1 9.4 9.4

Suburban Propane Partners, L.P. 22.41 1,382 2,670 20.0% 2.3 2.0 1.8 11.3 9.9

Median 27.73 2,093 3,087 12.3% 1.9 1.2 1.1 10.4 9.8

Food Services

Core-Mark Holding Company, Inc. 37.13 1,703 2,071 1.0% 0.2 0.2 0.1 15.5 15.4

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 1,703 3,864 2.6% 0.3 0.3 0.2 11.3 11.0

Specialty chemicals

Air Products and Chemicals, Inc. 190.96 41,941 43,077 33.4% 4.4 4.8 4.6 13.7 13.5

AmeriGas Partners, L.P. 30.87 2,871 5,844 19.4% 2.9 2.0 2.0 12.1 10.5

Brenntag AG 51.52 7,959 9,955 6.7% 0.8 0.7 0.7 11.9 10.6

Ferrellgas Partners, L.P. 1.31 127 2,233 10.8% 1.2 1.2 1.2 12.0 11.5

Hawkins, Inc. 36.83 393 477 10.2% 1.0 0.9 NM 8.8 8.5

Innophos Holdings, Inc. 30.14 591 871 14.0% 1.7 1.1 1.1 10.0 7.7

L'Air Liquide S.A. 127.22 54,384 68,932 23.6% 3.0 2.9 2.8 12.5 12.4

Linde plc 174.24 95,866 112,144 29.5% 4.8 7.5 NM 14.6 25.1

Univar Inc. 22.16 3,761 6,007 6.9% 0.9 0.7 0.6 14.6 10.1

Median 36.83 3,761 6,007 14.0% 1.7 1.2 1.2 12.1 10.6

7.9

9.4

9.5

NM

6.9

10.9

NM

9.6

9.6

12.3

9.1

9.4

9.2

11.6

5.7

11.6

5.9

13.4

7.7

9.3

7.4

9.5

9.2








Technology

Arrow Electronics, Inc. 77.06 6,564 9,592 4.6% 0.4 0.3 0.3 8.6 7.1

Avnet, Inc. 43.37 4,703 6,184 3.9% 0.3 0.3 0.3 8.0 8.0

Insight Enterprises, Inc. 55.06 1,955 2,313 3.9% 0.3 0.3 0.3 8.3 8.4

ScanSource, Inc. 35.82 921 1,270 3.7% 0.3 0.3 0.3 9.5 8.9

Tech Data Corporation 102.41 3,779 4,391 2.0% 0.2 0.1 0.1 9.1 6.0

Median 55.06 3,779 4,391 3.9% 0.3 0.3 0.3 8.6 8.0

Transportation & Heavy Equipment

AAR Corp. 32.51 1,118 1,266 7.3% 0.8 0.6 0.6 13.0 8.8

Finning International Inc. 17.78 2,906 3,717 8.7% 1.1 0.7 0.7 12.3 8.0

HEICO Corporation 94.87 11,754 12,556 25.9% 5.3 6.8 6.3 21.6 26.3

LKQ Corporation 28.38 8,926 13,003 10.5% 1.6 1.1 1.0 14.4 11.0

Titan Machinery Inc. 15.56 337 629 4.3% 0.7 0.5 0.5 26.9 11.7

Triumph Group, Inc. 19.06 951 2,556 3.8% 0.8 0.8 0.9 7.6 20.0

Wesco Aircraft Holdings, Inc. 8.79 877 1,719 8.5% 1.1 1.1 1.0 11.8 12.6

Median 19.06 1,118 2,556 8.5% 1.1 0.8 0.9 13.0 11.7 9.4

7.5

7.5

7.2

24.3

9.4

8.2

5.2

11.7

9.6

9.1

6.8

7.5

7.7


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

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