This report provides an overview of private equity activity in the state of Missouri. Our report offers key market place trends and

drivers as well as professional, high-level insights on the quantity, type, region, and industry of deals reported in the 2H of 2020

in Missouri. R.L. Hulett & Company uses data from Pitchbook for all accompanying charts. For more information please contact

Trevor Hulett at thulett@rlhulett.com.

Missouri PE Deal Report2H 2020

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3,235

3,73260

48

-40.00

-10.00

20.00

50.00

80.00

2000

2400

2800

3200

3600

4000

S&P 500 WTI Crude Oil

Missouri PE Deal Report2020 2H Review

1

On Dec 27, President Donald Trump finally signed a $900 billion relief

bill and accompanying spending bill after days of unnecessary waffling.

This bill includes $600 stimulus checks and an additional $300 in

weekly unemployment benefits.

As of Jan 4th, about 4.6 million people in the U.S. have gotten a Covid-

19 vaccine, according to The New York Times.

Fed Stimulus & Vaccine

Recovery

As of this writing, the S&P 500 Index rebounded to its pre-covid level

and hit a new record since Feb 2020. However, the crude oil market

hasn’t recovered to its prior level.

Volatility has been extremely high in the equity markets. S&P 500 P/E

ratio is currently at 37.42, the highest since the financial crisis.

There were 194 traditional IPO deals closed in 2020, the best year

since 2014. But it was an even better year for SPACs: 200 SPACs raised

about $64 billion.

According to PitchBook, the global PE market had a slight increase in

2H 2020 from 1H 2020 but still down 15% from 2H 2019.

S&P 500 Index vs. WTI Crude Oil

Global PE Deal Count in 2H

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

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Missouri PE Deal ReportMissouri M&A Market Highlights

2

The M&A market in the state of Missouri was relatively active during the COVID period but definitely saw declines in Q2 and Q3. Q4 bounced

back firmly but 2020 still ended with an 8% decline compared to prior year with a total of 60 deals closed.

76% of the buyout deals in 2020 were add-ons as investors focused on the growth of their portfolio companies during COVID.

B2B sectors such as BPO services, industrial supplies, and other commercial services remained popular in the Missouri market in 2020. Of

particular note was the increase in deal volume in the B2C sector in 2020 over the prior year indicating that consumer products are

attracting the attention of buyers.

The total number of PE backed companies in Missouri increased to 225 at the end of 2020 from 194 in 2019.

Marketplace Trends

As always, good companies are getting plenty of attention as they go to market. Key drivers

of interest include:

Key Drivers

St. Louis

Kansas

CityColumbia

• Diversified customer base • Low customer churn

• A good handle on key performance indicators

• Minimal legal risks in play

• Strong and capable management team • Good sources of recurring revenue

• Growth Opportunities • Cutting-edge Technology

Springfield

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St. Louis – Growing Hub for Technology

3

St. Louis is a growing hub for startups, as well as Technology companies. Investments for the future are made, and companies are moving to

the city. Some of the highlights for 2H 2020 include:

St. Louis stays on the list of best cities in the U.S. for startups and entrepreneurs in 2021, according to Crowdspring.

St. Louis-based Venture Capital firms made 98 investments in 2H 2020 and a total of 172 investments in 2020.

The National Geospatial-Intelligence Agency is launching a new tech accelerator in St. Louis as a way to help commercial startups to develop

new geospatial technologies.

In 2020, more than 70 St. Louis-based startups raised a total of $421 million, according to PitchBook.

Key Drivers

• Geographically ideal for fast and cheap airfares

between Silicon Valley and Silicon Alley

• Lower business and living cost

• Local Talent

• Coworking Spaces

• Established accelerators and VC funds

• Sponsorship from large local companies (Bayer,

Ameren, Boeing, Centene, Enterprise, etc.)

Missouri PE Deal Report

Active Investors

(27 investments in 2020)

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Missouri PE Deal ReportPE Deals Closed by Quarter

4

PE deal activity in the state of Missouri slowed down in Q3 of 2020 to 6 deals but rebounded nicely in Q4 to 18

deals. Of these 24 deals in 2H, the St. Louis area accounts for the largest share at 14 deals, compared to 4 in

Kansas City and 3 in Springfield.

Deal Activity Records

9

7 78 8

9

11

14

10

14

54

10

14 1415

1011 11

15 15

18

10

18

13

1615

21

24

12

10

23

12 12

20

12

26

21

17

20

16

21

18

10

24

12

6

18

0

5

10

15

20

25

30

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

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Date Company Investor Industry Code Transaction Type Transaction DetailDeal Size

($mm)

Implied EV

($mm)City Target Business Description

22-Dec-20 JCI Industries Genstar Capital Industrial Supplies and Parts Buyout/LBO Add-on - - Lee's SummitProvider of rotating equipment and process

solutions

21-Dec-20 Jer-And Walcro Distributors/Wholesale Buyout/LBO Add-on - - Saint LouisDistributor of commercial products for the flooring

industry and architecture & design community

17-Dec-20 ADB Companies Warren Equity Partners Construction and Engineering Buyout/LBO - - - PacificProvider of infrastructure services intended for the

communication, utility and technology industries

15-Dec-20 Ozark Mountain Energy Court Square, Offen Petroleum Distributors/Wholesale Buyout/LBO Add-on - - Mount VernonDistributor of motor fuel and propane supplying

retail outlets and trucking companies

09-Dec-20 Red Monkey Foods Norwest Equity Partners BPO/Outsource Services Buyout/LBO Secondary Buyout - - Springfield Provider of contract manufacturing services

04-Dec-20 Clean-Tech Company HES Facilities Other Commercial Services Buyout/LBO Add-on - - Saint Louis Provider of commercial cleaning services

02-Dec-20 Health Technologies Evolution Capital Partners Business/Productivity Software PE Growth/Expansion - - - Saint Louis Provider of online menu software programs

23-Nov-20 Associated CouriersAuctus Capital Partners,

SamedayLogisticsLogistics Buyout/LBO Add-on - - Maryland Heights Provider of third-party logistics and courier services

10-Nov-20 Interstate Truck Center Dickinson Fleet Services Road Buyout/LBO Add-on - - IndependenceProvider of fleet repairs and maintenance services

to the commercial trucking industry

06-Nov-20 Manna Pro Products The Carlyle Group Other Consumer Non-Durables Buyout/LBO Secondary Buyout - - ChesterfieldManufacturer of animal nutrition and care products,

enabling customers

03-Nov-20 Gateway Fiber Crosstimbers Capital Group Internet Service Providers PE Growth/Expansion - 40.0 - JonesburgDeveloper and operator of fiber-to-the-home

broadband networks

03-Nov-20 True North Management Services Congruex Other Communications and Networking Buyout/LBO Add-on - - FentonProvider of wireless infrastructure wireless carriers,

fiber companies and tower owners

20-Oct-20 Micro-Select Instruments Audax Group Surgical Devices Buyout/LBO Add-on - - Saint Clair Manufacturer of surgical instruments

06-Oct-20 Kenneth H. Lemp Elevator ConsultantAmerican Testing & Inspection

ServicesConsulting Services (B2B) Buyout/LBO Add-on - - Valley Park Provider of elevator consulting services

05-Oct-20 Ferguson Consulting Eliassen Group IT Consulting and Outsourcing Buyout/LBO Add-on - - ChesterfieldProvider of information technology (IT) consulting

services for staff augmentation

05-Oct-20 Podiatry Growth Partners Compass Group Equity Partners Enterprise Systems (Healthcare) PE Growth/Expansion - - - Saint LouisProvider of back-office support services for

podiatric clinics

01-Oct-20 ATRO Engineered Systems Alitus Partners Road Buyout/LBO - - - Saint ClairDesigner, manufacturer and distributor of

polyurethane parts

01-Oct-20 Intertel Aquiline Capital Partners Media and Information Services (B2B) Buyout/LBO Add-on - - Saint LouisProvider of professional investigative services to

assist in the fight against insurance fraud

29-Sep-20Air Services Heating, Cooling, and All

Service Professional Plumbing

Alpine Investors, Apex Service

PartnersOther Services (B2C Non-Financial) Buyout/LBO Add-on - - Springfield Provider of HVAC and plumbing services

28-Sep-20 Messenger Coffee FairWave Beverages Buyout/LBO Add-on - - Kansas City Provider of specialty roasted artisan coffee

28-Sep-20 The Roasterie FairWave Beverages Buyout/LBO Add-on - - Kansas City Provider of specialty roasted coffee services

03-Aug-20 Black Widow Imaging N/A Other Commercial Products PE Growth/Expansion - 1.5 - O'Fallon Manufacturer of vehicle imaging products

31-Jul-20 Midland GIS Solutions Austin Ventures Construction and Engineering Buyout/LBO Add-on - - Maryville Provider of geographic information systems

13-Jul-20Detalus (Institutional Fixed Income Line

of Business)ALM First Group Asset Management Buyout/LBO Add-on - - N/A Provider of asset management services

Missouri PE Deal ReportPrivate Equity Transactions

5

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Missouri PE Deal ReportActive Investors in Missouri

6

Company LocationInvestments in the

last 12 monthsTargets

St. Louis 15

St. Louis 12

KansasCity

9

St. Louis 9

St. Louis 4

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Missouri PE Deal Report

7

We saw 76% of PE transactions closed

as add-ons in 2020. This is slightly

down from 77 % in the previous year.

We expect add-ons to remain a high

percentage of PE transactions as more

PE firms are seeking acquisition

targets that are complementary to

their current investments.

The Consolidation Game

PE Deals Closed by Type

1018

1022

13 1914

22 16 23 1912

7 3

4

10

513

1412 10 15 9

7

12 1919

20

2726

3631 28 42 37

39

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Buyout/LBO PE Growth/Expansion Platform Creation Add-On

10 1

8

10

22

13 1

9

14 2

2

16 2

3

19

12

12

19

19

20

27

26

36

31

28

42

37

39

55% 51%

66%

48%

68%

58%

72%58% 64% 65%

77% 76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

10

20

30

40

50

60

70

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Buyout/LBO (Non Add-On) Add-On Add-On %

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Missouri PE Deal ReportPE Deals by Sector

8

Historically, B2B has been the most

active sector in Missouri PE Deal activity

and 2020 was no exception. 28 deals

were completed in 2020, accounting for

47% of the total.

Deal activity in the B2C sector increased

to 9 transactions from 6 in the prior year.

In the COVID environment, the work

from home economy has driven an

increase in online consumer activity

leading to an increase in deal flow in the

sector. We anticipate a continuing

upward trend in 1H 2021 as tailwinds

from COVID continue in the B2C space.

The Healthcare and IT sectors followed

with 8 deals and 7 deals in 2020,

respectively.

B2B Most Active Sector

15

1510

27 24

26 2623 19

37 2828

6

9

6

11 10

15

7

810

96

9

3

49

4

3

511

18

8

15

11

8

2

6

5 4

4

8 613

8

6

117

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

B2B B2C Energy Financial Services Healthcare IT Materials and Resources

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Missouri PE Deal ReportPE-Backed Exits by Type

9

Secondary buyouts (SBOs) have

been a popular exit type over the

last few years. Missouri has seen a

slowdown in corporate acquisitions

from a peak of 17 in 2016 to 1 in

2020.

Persistence of SBO Exits

8

2

10

7 7

11 11 12

17

11

64

1

17

2

4

2

6

8

13 12

8

8

6

4

7

0

5

10

15

20

25

30

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Corporate Acquisitions IPO Secondary Buyouts

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Missouri PE Deal ReportInventory of Currently PE-Backed Companies

10

The number of companies in Missouri held by Private Equity firms has increased over the past

decade. This demonstrates the growth and appeal of the PE business model. Dry powder for

investments is still largely available in the private markets. We expect this trend to continue.

PE Holdings Continue to Rise

225

19 21 24 2428 34 37

4349

5160

68

82

93

108

123

143

155

177194

0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2017 - 2020

2012 - 2016

2007 - 2011

2000 - 2006

Pre-2000

# of Companies

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0.00x

1.00x

2.00x

3.00x

4.00x

5.00x

6.00x

7.00x

20202019201820172016201520142013201220112010

0.00x

10.00x

20.00x

30.00x

40.00x

50.00x

60.00x

70.00x

80.00x

20202019201820172016201520142013201220112010

0

2

4

6

8

10

12

14

20202019201820172016201520142013201220112010

Missouri PE Deal ReportValuation Multiples

11

Total Capital Invested ($B) Leverage

EV/EBITDA EV/Revenue

0.00x

4.00x

8.00x

12.00x

16.00x

20.00x

20202019201820172016201520142013201220112010

Debt/ Equity Debt/ EBITDA

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30-Dec-20 Veran Medical TechnologiesOlympus Corporation of the

AmericasDiagnostic Equipment 340 Saint Louis Developer of an interventional pulmonology device

11-Dec-20 Beyond Self Storage Public Storage Logistics 528 RiversideOperator of the self-storage facility that is suited to meet

business or residential storage needs

11-Dec-20Riviana Foods (Dry Pasta and Noodles

Business)Treehouse Foods Food Products 242.5 Saint Louis Producer of dry pasta and noodles in Saint Louis, Missouri

02-Dec-20 Workgroup Connections Converge Technology Solutions IT Consulting and Outsourcing Saint LouisProvider of cloud computing and consultancy services intended

to help increase corporate productivity

25-Nov-20 Greenway Family Office MAI Capital Management Asset Management BrentwoodProvider of wealth management services to high net worth

individuals and families

24-Nov-20 NHC Healthcare Town & Country REACH LTC Clinics/Outpatient Services Town and CountryOperator of a healthcare and rehabilitation center based in

Town and Country, Missouri

18-Nov-20 Navvis Healthcare N/A Practice Management (Healthcare) 10 Saint LouisProvider of healthcare consultancy services based in Saint Louis,

Missouri

12-Nov-20 BacklotCars KAR Global Automotive 425.0 Kansas CityOperator of an online marketplace intended to make wholesale

automotive deals simple and transparent

12-Nov-20 CBC Bank Peoples Savings Bank of Rhineland Regional Banks Troy Provider of banking services

11-Nov-20 Lockwood Chiropractic IMAC Regeneration Center Clinics/Outpatient Services Webster Groves Provider of chiropractic and physiotherapy services

05-Nov-20 Solid Gold H&H Group Other Consumer Non-Durables 163 ChesterfieldProducer and supplier of holistic nutrition solutions intended

for cats and dogs

21-Oct-20 Taylored Analytics Midwest BankCentre Media and Information Services (B2B) Saint LouisProvider of data analysis services intended to improve the

measurement capabilities of our clients

16-Oct-20 The Growth Partnership Engineered Tax Services Consulting Services (B2B) Saint Louis Provider of consultancy services to the accounting firms

15-Oct-20 EPSi Strata Decision Technology Enterprise Systems (Healthcare) 365.0 ChesterfieldProvider of financial decision support and planning tools for

hospitals and health systems

13-Oct-20 Family Pharmacy Healthcare Healthdirect Pharmacy Services Specialty Retail Ozark Operator of a pharmacy chain

18-Sep-20 Double V.V. (Intermodal Division) IXT Logistics Road Butler Provider of trucking and transportation services

14-Sep-20 Burns Architecture Ireland Architects Construction and Engineering Springfield Operator of an architectural firm

14-Sep-20 J&W Automotive Telle Tire & Auto Service Automotive Saint Louis Provider of automotive maintenance and repair services

11-Sep-20 Canopy Biosciences Bruker Discovery Tools (Healthcare) Saint LouisDeveloper of gene editing, gene expression analysis and

regulation and bio processing

Target Business DescriptionDate Company Investor Industry CodeDeal Size

($mm)City

Missouri PE Deal ReportStrategic Acquisitions

12

Note: Strategic acquisitions are not analyzed in our report.

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Missouri PE Deal ReportStrategic Acquisitions

13

Note: Strategic acquisitions are not analyzed in our report.

01-Sep-20 Citizens Communications Green Hills Communications Telecommunications Service Providers Higginsville Provider of internet, telephone and cable TV services

01-Sep-20 GreenCourse Financial Advisors Buckingham Asset Management Other Financial Services Chesterfield Provider of wealth management and financial advisory services

24-Aug-20 The Law Office of Mike Campbell Thomas Law Offices Legal Services (B2C) Columbia Operator of a personal injury law firm

23-Aug-20 Depth SecurityKonica Minolta Business Solutions

U.S.A.IT Consulting and Outsourcing Kansas City Provider of information security services

12-Aug-20 NeoTech Solutions (Missouri) Netsolus IT Consulting and Outsourcing JoplinProvider of IT consulting services in design, implementation and

support of computer networks

10-Aug-20 Bick Group Murphy Mech Contrs & Engineers Other Commercial Services Maryland Heights Provider of infrastructure services

03-Aug-20 RevWorks R1 RCM Consulting Services (B2B) 30.0 Kansas City Provider of revenue cycle management services

01-Aug-20 Otologic Center Ascentist Ear, Nose and Throat Clinics/Outpatient Services Kansas CityProvider of medical and surgical treatment solutions for

patients with hearing loss and balance problems

31-Jul-20 Wise Safety & Environmental Mallory Safety & Supply Distributors/Wholesale Saint Louis Distributor of emergency preparedness products and services

17-Jul-20 Elmwood Reclaimed Timber N/A Building Products PeculiarProvider of wood products, building materials, and natural

wood

07-Jul-20 Performance Tool Essig Research Industrial Supplies and Parts MoberlyManufacturer of tools, dies, fixtures, and assorted industrial

hardware

02-Jul-20 Sage Communications (Kansas) ModOp Media and Information Services (B2B) Kansas CityProvider of marketing communications services intended for

businesses

01-Jul-20 Casino KC Bally's Casinos and Gaming Kansas City Operator of a casino

01-Jul-20 Triumph Premium Finance Peoples Bank Specialized Finance Kansas CityProvider of premium finance services for customers to purchase

property and casualty insurance products

Target Business DescriptionDate Company Investor Industry CodeDeal Size

($mm)City

Largest Transaction (Disclosed)

Seller / Target Transaction Type Buyer / Investor Deal Size

M&A $425M

| Confidential

Second generation family-owned, middle-market investment bank

Focused on advising middle-market businesses with revenues from $10 to $250 million

Small Business Monthly’s Best M&A Providers: 2018-2020

CorporateINTL Magazine’s M&A Advisor of the Year: 2014-2020

M&A Today’s M&A Advisory Firm of the Year – Missouri, USA: 2020

Named one of “Top 100 Very Best Middle Market M&A Advisory Firms in the U.S.” by Axial Markets in 2017

Silver Sponsor in the Association for Corporate Growth

Member firm in the Alliance for M&A Advisors, an international network of over 900 M&A professionals

About R.L. Hulett & Company

14

Founded

1981Experience

40 yearsTransactions Closed

250+

| Confidential

Recent Transactions

15

has completed a recapitalization with

has sold substantially all

of its assets to

The Boeing Company

| Confidential

RLH Team

R.L. Hulett & Company is one of the most established middle-market investment banking firms in St. Louis

8 professionals from a variety of backgrounds

Managing Directors

Directors

Analyst

Bob Hulett Founder & Chairman, over five decades of experience as Investment Banker and CPA

Trevor Hulett CPA with over 25 years of Investment banking, Corporate Finance and Public Accounting experience

Lori Moser 30 years of business experience in manufacturing and consumer product industries

David Vass 30 years of business executive level and business management experience in multiple industries

Jason Qiao

Senior Advisors

Turk Lewis Bill Sheridan

Marketing & Administration

Cheryl Morris 30 years of experience in marketing and office administration

16

| Confidential

Our Team

17

At R.L. Hulett and Co. we are ready to assist you or your clients in determining a succession plan and process. We have advised on over 250 transactions over our 40 years in business.

Mr. Vass has over 30 years of business management

experience including more than 10 years as President

of a highly successful consumer products

manufacturing company with revenues exceeding $25

million. During this time, he not only reversed a

declining sales and earnings trend, but increased both

sales and operating income over 100%. In addition, he

has spent over 20 years at the executive level of Vice

President of Sales and Business Development. Mr.

Vass earned his MBA from the University of Michigan.

David T. Vassdvass@rlhulett.com | (314) 721-0607 x 115

Director

Lori has over 30 years of business experience in

manufacturing and consumer product industries. She

has a strong depth of expertise in multiple disciplines

including business development, M&A, project

management, sales, finance, and marketing. Working

for a Fortune 500 company, she has led several

divestitures, initiated, developed, and ran strategic

new business platforms. Ms. Moser holds a Bachelor’s

Degree in Finance from Southeast Missouri State and

an MBA from Webster University.

Lori Moserlmoser@rlhulett.com | (314) 721-0607 x 114

Director

Mr. Hulett has led M&A transactions in a variety of

industries including manufacturing/industrial,

software development/IT, business services and

value-added distribution. Prior to joining the firm, he

held senior level accounting and financial

management positions in both public accounting and

large corporate environment. Mr. Hulett holds his

Series 62, 63 and 79 Securities registration. Mr. Hulett

earned a Bachelor’s Degree in Accounting from the

University of Missouri, Columbia.

R. Trevor Hulettthulett@rlhulett.com | (314) 721-0607 x 112

Managing Director

| Confidential

Methodology

18

Missouri Private Equity Deals

Private Equity Backed Missouri Companies

Missouri Private Equity Firms

Missouri private equity backed companies

are defined in this report as companies that

are headquartered in the state of Missouri

and financially backed in whole or in part by

private equity firms.

Private equity deals in Missouri are defined

in this report as investments made by

private equity firms or their portfolio

companies. These deals include companies

headquartered in Missouri that are

categorized as Buyout/LBO, secondary

buyouts, public to private,

growth/expansion, recapitalization, or PIPE.

Real estate is not included in our data.

Missouri private equity firms are defined in

this report as private-equity firms

headquartered in Missouri that are actively

investing or raising funds in the 2H of 2020.

Missouri PE Deal Report2H 2020