TOM MULLINS CHIP GRAYSON PAUL JONES - … Logistics, Inc. 3.81 57.3% 188.0 231.3 9.3x 7.0x 20.1x...

KEVIN FIELDER

Senior Vice President

O: 727.567.5054 | C: 404.889.4164

[email protected]

MATT STEMMLER

Vice President

O: 901.531.3371 | C: 901.438.0909

[email protected]

TOM MULLINS

Managing Director

O: 727.567.1113 | C: 727.560.6700

[email protected]

CHIP GRAYSON

Managing Director

O: 901.529.3701 | C: 901.230.4244

[email protected]

PAUL JONES

Managing Director

O: 727.567.5025 | C: 727.415.0390

[email protected]

MAY 2018

©2018 Raymond James & Associates, Inc. member New York Stock Exchange/SIPC

Corporate Headquarters

880 Carillon Parkway

St. Petersburg, FL 33716

Memphis Office

50 North Front Street, 20th Floor

Memphis, TN 38103

2

EXECUTIVE FREIGHT TRENDS INSIGHT

FIVE YEAR TRANSPORT & LOGISTICS STOCK INDEX

See publicly traded freight transportation & logistics trading multiples page for companies within each industry.

Past performance does not guarantee future results. There is no assurance these trends will continue. The market value of securities fluctuates and you may incur a profit or a loss. This analysis does not

include transaction costs and tax considerations. If included, these costs would reduce an investor’s return. The S&P 500 is an unmanaged index of 500 widely held stocks.

Select Transport & Logistics Stock Performance

5 Year 3 Year 1 Year 6 Months 3 Months

Asset-Based Truckload 69.2% 14.9% 32.3% 1.9% (2.3%)

Asset-Light Transport 70.2% 61.0% 63.6% 25.9% 5.3%

LTL 216.8% 94.5% 71.5% 22.1% 8.7%

Railroads 76.9% 41.6% 23.5% 15.2% 5.1%

Forwarding & Logistics 63.5% 43.2% 33.7% 15.5% 1.1%

Integrated 66.6% 25.0% 17.2% 7.0% 3.2%

S&P 500 65.7% 29.9% 13.7% 5.0% (1.7%)

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Asset-Based Truckload Asset-Light Transport LTL Railroads Forwarding & Logistics Integrated S&P 500

3


Source: S&P Capital IQ

Publicly Traded Freight Transport Trading Multiples

Share % of Market Enterprise Enterprise Value / Enterprise Value / Price /

Price 52 Week 52 Week Value Value EBITDA EBIT EPS

Company Name 5/23/18 High High ($ MM) ($ MM) 2018E 2019E 2018E 2019E 2018E 2019E

Asset-Based Truckload

Celadon Group Inc. $19.19 19.33 99.3% $400.3 ($136.8) NA NA NA NA NA NA

Covenant Transportation Group, Inc. 30.66 33.36 91.9% 562.0 737.6 5.8x 5.2x 15.5x 12.3x 16.8x 13.4x

Heartland Express, Inc. 18.49 25.22 73.3% 1,521.9 1,416.9 8.1x 7.0x 19.5x 14.9x 25.6x 21.3x

JB Hunt Transport Services Inc. 124.61 129.74 96.0% 13,676.6 14,669.6 11.7x 10.3x 17.9x 15.3x 23.6x 19.7x

Knight Transportation Inc. 40.22 51.94 77.4% 7,171.9 7,961.8 8.4x 7.4x 14.2x 11.8x 17.5x 14.7x

Marten Transport Ltd. 21.95 29.60 74.2% 1,198.3 1,187.9 7.5x 6.7x 17.5x 14.5x 23.9x 20.0x

P.A.M. Transportation Services, Inc. 41.20 43.20 95.4% 256.0 405.4 NA NA NA NA NA NA

USA Truck Inc. 23.26 29.15 79.8% 186.2 277.1 5.6x 4.5x 14.5x 9.8x 16.7x 10.2x

Werner Enterprises Inc. 38.20 43.95 86.9% 2,761.9 2,798.1 6.6x 6.0x 14.4x 12.3x 19.1x 16.5x

Median 7.5x 6.7x 15.5x 12.3x 19.1x 16.5x

Asset-Light Transport

Forward Air Corp. 59.03 64.80 91.1% 1,736.4 1,764.5 10.8x 9.9x 14.9x 13.6x 19.6x 17.5x

Landstar System Inc. 111.75 118.60 94.2% 4,701.1 4,594.6 12.6x 12.0x 14.3x 13.6x 19.3x 18.1x

Radiant Logistics, Inc. 4.08 6.65 61.4% 201.4 242.2 7.7x NA 11.5x NA 12.6x NA

Roadrunner Transportation Systems, Inc. 2.14 9.75 21.9% 82.4 514.0 4.0x NA 5.9x NA 2.1x NA

Universal Logistics Holdings, Inc. 24.35 25.65 94.9% 691.4 948.3 NA NA NA NA 17.1x 14.3x

XPO Logistics, Inc. 107.69 111.09 96.9% 12,992.3 17,984.1 11.1x 9.9x 20.6x 17.2x 31.0x 25.2x

Median 10.8x 9.9x 14.3x 13.6x 18.2x 17.8x

LTL

ArcBest Corporation 47.20 49.85 94.7% 1,210.3 1,283.4 6.0x 5.9x 11.3x 10.7x 16.2x 15.0x

Old Dominion Freight Line Inc. 149.91 152.50 98.3% 12,322.5 12,207.6 13.0x 11.8x 17.1x 15.4x 23.4x 20.8x

Saia, Inc. 79.25 80.90 98.0% 2,016.1 2,158.2 9.3x 8.2x 15.8x 13.4x 20.9x 17.9x

YRC Worldwide Inc. 10.53 17.61 59.8% 357.6 1,153.6 3.8x 3.4x 8.9x 7.0x 11.4x 6.6x

Median 7.7x 7.0x 13.5x 12.0x 18.6x 16.5x

Railroads

CSX Corp. 63.55 64.67 98.3% 55,628.7 67,438.7 12.0x 11.2x 15.7x 14.5x 19.4x 16.9x

Canadian National Railway Company 83.76 84.43 99.2% 61,587.5 70,646.4 13.7x 12.5x 17.2x 15.6x 21.0x 18.5x

Canadian Pacific Railway Limited 182.56 187.19 97.5% 26,119.8 32,537.9 12.4x 11.6x 15.8x 14.6x 17.9x 16.0x

Kansas City Southern 108.72 114.91 94.6% 11,154.7 14,039.7 10.4x 9.5x 14.1x 12.8x 17.7x 15.5x

Norfolk Southern Corp. 150.49 157.15 95.8% 42,519.7 52,014.7 10.9x 10.3x 14.2x 13.3x 17.4x 15.7x

Genesee & Wyoming Inc. 76.86 84.40 91.1% 4,674.7 7,195.2 10.0x 9.2x 16.5x 14.7x 20.1x 16.9x

Union Pacific Corporation 144.27 146.73 98.3% 111,892.8 128,342.8 12.1x 11.4x 15.3x 14.3x 18.9x 17.0x

Median 12.0x 11.2x 15.7x 14.5x 18.9x 16.9x

Forwarding and Logistics

Expeditors International of Washington Inc. 73.56 73.89 99.6% 12,849.5 11,719.4 13.6x 13.0x 14.5x 13.7x 23.2x 21.8x

Hub Group Inc. 48.30 52.25 92.4% 1,659.7 1,926.1 10.4x 9.2x 16.6x 14.4x 19.9x 17.3x

Echo Global Logistics, Inc. 27.65 32.95 83.9% 784.4 964.7 10.9x 10.1x 15.7x 13.9x 18.8x 16.5x

CH Robinson Worldwide Inc. 87.44 100.18 87.3% 12,175.0 13,226.2 13.9x 12.8x 15.6x 14.3x 20.0x 18.2x

Median 12.2x 11.5x 15.6x 14.1x 20.0x 17.7x

Integrated

FedEx Corporation 250.47 274.66 91.2% 66,929.4 81,720.4 8.6x 7.5x 13.0x 10.9x 14.4x 13.0x

United Parcel Service, Inc. 115.28 135.53 85.1% 99,335.4 118,300.4 11.6x 10.5x 15.5x 13.9x 15.9x 14.6x

Median 10.1x 9.0x 14.2x 12.4x 15.2x 13.8x

4


Source: S&P Capital IQ

Historical 2013 – 2016 growth rates reflective of revenue and EBITDA increases due to acquisitions

REVENUE GROWTH RATES BY SECTOR

EBITDA GROWTH RATES BY SECTOR

Freight Transport Growth Estimates

4.3%

68.7%

22.0%

-5.1%

18.1%

29.0%

7.5%5.0%

7.0% 5.5% 5.4% 6.7%

-10.0%

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50.0%

60.0%

70.0%

80.0%

TL Asset-Light LTL Rail Forwarding/3PL Integrated

2013-2017 2018E-2019E

20.7%

40.0%

48.6%

19.4% 20.6%

27.0%

12.8%

8.9%10.7%

7.5% 8.0%

12.8%

0.0%

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30.0%

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60.0%

TL Asset-Light LTL Rail Forwarding/3PL Integrated

2013-2017 2018E-2019E

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FORWARDING & LOGISTICS

LTL RAILROADS

ASSET-LIGHT TRANSPORTASSET-BASED TRUCKLOAD

INTEGRATED

Source: S&P Capital IQ; Multiples calculated as an average over the specified period,

except current which is a snapshot in time

Historical EBITDA Multiples by Sector

8.1x

7.6x

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6


Select M&A Transactions in Last Six Months

Date Target

Closed Sector Acquiror Transaction Notes

Pending Rail GE Transportation

Wabtec Corp

Pending 3PL Bartlett and Company

Savage Companies

Pending 3PL Vertex Aerospace

American Industrial Partners

Pending Marine Targa Resources (inland tank barge division)

Kirby Corporation

Pending 3PL Ceva Logistics

CMA CGM SA

Pending Trucking Aveda Transportation and Energy Services

Daseke, Inc.

Pending 3PL Cloverleaf Cold Storage

Blackstone

05/17/18 3PL Roar Logistics (Phoenix-based division)

Redwood Logistics

05/09/18 3PL Direct Connect Logistix

Huron Capital

05/09/18 3PL Bridge Logistics Services

Smart Warehousing

05/08/18 3PL Alaskan Express

AFF Global Logistics

General Electric announced a $11.1 billion deal to merge its transportation business

with U.S. rail equipment manufacturer Wabtec Corp. GE will receive a $2.9 billion up-

front payment in cash and a 9.9% stake in the combined company, with GE

shareholders awarded 40.2% and existing Wabtec shareholders owning 49.9%. The

deal is tax-free for GE and Wabtec shareholders because it is structured as a Reverse

Morris Trust, with GE spinning off the transportation unit and simultaneously merging it

with Wabtec.

Kirby Corporation announced the signing of an agreement to acquire Targa Resources

Corp's inland marine tank barge business for approximately $69.3 million in cash. The

purchase will be financed through additional borrowings. The closing of the acquisition

is expected to occur near the end of the second quarter and is subject to customary

closing conditions.

Supply chain provider Savage Companies, based in Salt Lake City, Utah, and grain

and milling firm Bartlett and Company, based in Kansas City, Missouri, are pleased to

announce the planned merger of their businesses to form a new combined entity,

Savage Enterprises. Together, Savage and Bartlett have more than 180 years of

experience providing transportation, logistics and materials management services for

customers across multiple industries, with a focus on energy and agriculture.

AFF Global Logistics ("AFF"), the largest U.S. domestic ocean freight forwarder

specializing in less-than-container-load freight shipments, has acquired Alaskan

Express ("AE"). Headquartered in Sumner, Washington, AE is a highly-regarded

domestic freight forwarder with decades of experience serving the Alaska market.

L3 Technologies has agreed to sell its Vertex Aerospace business to American

Industrial Partners for $540 million in cash. The deal is expected to close this summer.

Vertex Aerospace provides aviation logistics services, supply chain management, and

maintenance, repair and overhaul services.

Huron Capital has invested in Indianapolis, Indiana-based Direct Connect Logistix to

create a new platform in the third-party logistics industry. Direct Connect Logistix is a

nationwide transportation and logistics services company led by co-founder and CEO

Roger Singh, co-founder and President Greg Humrichouser and Vice President John

Leininger.

Redwood Logistics purchased the Phoenix-based freight management services

division of Roar Logistics to expand its presence in the Southwest. Terms weren’t

disclosed. Chicago-based Redwood is a full-service 3PL owned by its management

and CI Capital Partners, a private equity investment firm with about $2.4 billion in

assets under management.

Smart Warehousing has acquired Bridge Logistics Services of Milwaukee. Both are

third-party logistics companies that allow customers to outsource much of their

warehouse and e-commerce fulfillment work. The deal involves Bridge Logistics’

200,000 square feet of warehouse space and 40 customers, according to a release. In

all, Smart Warehousing has 21 warehouses, totaling more than 7 million square feet,

in 10 markets nationwide.

CMA CGM SA has agreed to buy a 25% equity stake in global logistics operator Ceva

Logistics as the French container shipping line moves to expand its reach in

international supply chains beyond port-to-port transportation. The agreement is

subject to the completion of the Ceva IPO and to approvals from various regulatory

authorities.

Cloverleaf Cold Storage, a leading cold storage warehousing and food logistics

company owned by the Feiges and Kaplan families since its founding in 1952,

announced that it has entered into a definitive agreement to recapitalize the Company

whereby private equity funds affiliated with Blackstone will make a majority equity

investment into Cloverleaf alongside the existing family shareholders, who will continue

to operate the business post-closing, to support future growth in the Company. Terms

of the transaction were not disclosed.

Daseke, Inc. has entered into a merger agreement with Aveda Transportation and

Energy Services, one of the largest oil rig moving companies in North America. Aveda

provides specialized transportation services and equipment required for the

exploration, development and production of petroleum resources in the U.S. and

Canada. Aveda owns one of the largest and youngest fleets in the industry with

approximately 430 tractors, 660 trailers and 200 light-duty trucks.

7



Date Target


05/08/18 3PL Total E-com Home Delivery

Metro Supply Chain Group

05/02/18 3PL GTG Technology Group

McLarty Capital Partners

04/26/18 Equipment Boxwheel Trailer Leasing

Leasing Crosstimbers Capital Group

04/05/18 Trucking Unified Logistics

Prodos Capital

04/04/18 Passenger Mears Transportation, LLC

Transport Palm Beach Capital

04/02/18 3PL MXD Group

Ryder System Inc.

03/27/18 3PL P2P Mailing Limited

FedEx Corp.

03/19/18 3PL Aeropost

PriceSmart

03/16/18 Trucking Abilene Motor Express

Knight-Swift Transportation

03/16/18 3PL Michael Dusi Logistics

Headhaul Capital Partners

Tattooed Dog Holdings

03/15/18 3PL Summit Northwest Corporation

St. George Logistics

03/12/18 Trucking Jarvis Trans Inc.

RoadOne IntermodaLogistics

Boxwheel Trailer Leasing has received a significant capital investment from

Crosstimbers Capital Group, a private investment firm that partners with growing and

scalable entrepreneur-owned companies. The new capital will enable Boxwheel to

build an optimized fleet of dry vans, flat beds, and refrigerated trailer units to better

serve its customers seeking long haul, cartage, and storage solutions.

Palm Beach Capital has made an investment in Mears Transportation, LLC, Central

Florida’s oldest transportation company and one of the largest private transportation

companies in the country. Mears Transportation is a “full service” transportation

company with primary operations serving Central Florida residents and tourist

destinations, owning and operating nearly 1200 vehicles including 251 motor coaches,

620 taxicabs, 260 luxury vehicles and 52 shuttle vans.

McLarty Capital Partners has invested in GTG Technology Group, leading provider of

cloud-based software-as-a-service to the intermodal and freight management

industries. GTG will use the capital infusion to accelerate and expand its leading

transportation technology solutions.

Metro Supply Chain Group has acquired Total E-com Home Delivery Inc., a

Mississauga-based operation with 18 years' experience in door to door fulfilment of

"big and bulky" online retail purchases. Total E-com Home Delivery's operations will

continue under Metro's Metro To Home division, which leverages leading-edge

software to optimize delivery capabilities for major home furnishings and big box

retailers.

Unified Logistics has partnered with Prodos Capital, an investment firm based in New

York. Unified Logistics, headquartered in Bethesda, MD, is a specialized logistics

company focused on the handling, transport and delivery of hard to deliver cargo,

predominantly highly urgent and/or over-dimensional, permitted freight.

Ryder System Inc. has acquired MXD Group, an e-commerce fulfillment provider, with

its North American network of facilities, including last-mile capabilities. With the

acquisition, Miami-based Ryder becomes the second-largest last-mile delivery

provider of big and bulky goods.

FedEx Corp. has acquired P2P Mailing Limited, a leading provider of worldwide e-

commerce transportation solutions, for £92 million. P2P’s capabilities complement and

expand the FedEx portfolio of offerings important to the rapidly growing global e-

commerce marketplace. P2P is headquartered in Laindon, United Kingdom and will

operate as a subsidiary of FedEx Cross Border within the FedEx Trade Networks

operating company.

St. George Logistics has expanded its leading import/export presence into the Pacific

Northwest and Canada through the acquisition of Summit Northwest Corp. Founded in

1999, Summit is a comprehensive import/export logistics provider in the gateway cities

of Seattle-Tacoma, Portland and Vancouver.

RoadOne IntermodaLogistics purchased Jarvis Trans Inc., to continue its expansion in

the Northeast. The deal is the fourth in the last 18 months for the Randolph, Mass.-

based RoadOne. Leadership at Jarvis will remain in place, with President Peter

Lawless and COO Eric Jones continuing in their roles.

PriceSmart, the largest operator of membership warehouse clubs in Central America,

the Caribbean, and Colombia, has acquired Aeropost, an end-to-end cross-border

package delivery service and online retailer headquartered in Miami, Florida. Aeropost

is one of the largest and most visible cross border logistics and e-commerce providers

in Latin America and the Caribbean.

Michael Dusi Logistics ("MDL") has received an investment from Headhaul Capital

Partners and Tattooed Dog Holdings. MDL provides a broad suite of specialized

logistics solutions to the California wine and craft beer industry including value-added

warehousing, direct-to-consumer fulfillment and wine clubs, regional bulk, refrigerated,

flatbed and dry-van trucking as well as truckload and LTL brokerage. Proceeds from

the investment will be used to support the Company's growth initiatives and for general

working capital purposes.

Knight-Swift Transportation has acquired Abilene Motor Express, a carrier operating

about 450 trucks with most of its business in the dry van and refrigerated space.

Terms of the deal were not disclosed, but Abilene generated about $100 million in

annual revenue and had an operating ratio in the low-90s, putting its operating income

just shy of $10 million, according to an SEC filing.

8



Date Target


03/09/18 3PL Freight Force


03/01/18 3PL LaserShip

Greenbriar Equity Group

03/01/18 Marine Gulf Stream Marine

LOGISTEC Corporation

02/22/18 Trucking Central Arizona Freight

Red Arts Capital

02/15/18 Marine Higman Marine

Kirby Corporation

02/15/18 3PL Tidewater Logistics

Apollo Global Management

02/07/18 3PL Cargomatic

Genesee & Wyoming

02/02/18 Trucking Fore Transportation

Universal Logistics Holdings

02/02/18 3PL Tibbett Logistics

Yusen Logistics

02/01/18 Trucking Robin Hood Container Express

RoadOne IntermodaLogistics

02/01/18 3PL Safe Fleet Holdings

Oak Hill Capital Partners

01/30/18 3PL Global Solutions A/S

Bollore Logistics

St. George Logistics has expanded its position in first and final mile delivery services

through the acquisition of Freight Force. Headquartered in Anaheim, California, Freight

Force operates the nation's largest network of independent carriers serving freight

forwarders and other 3PL providers.

LaserShip, a portfolio company of Monitor Clipper Partners, has been acquired by

Greenbriar Equity Group. LaserShip is a leading regional asset-light provider of "last

mile" parcel delivery services for Fortune 500 companies across a variety of

industries. LaserShip leverages its robust network of sorting centers and delivery hubs

to provide services throughout the East Coast.

LOGISTEC Corporation has expanded its network of terminals through the strategic

acquisition of Gulf Stream Marine. Headquartered in Houston, Texas, Gulf Stream

Marine is a leader in cargo handling, stevedoring and terminal operations in the U.S.

Gulf Coast region.

Red Arts Capital has added a second regional less-than-truckload carrier to its

holdings with the purchase of Central Arizona Freight in Phoenix. Launched in 1998,

Central Arizona Freight provides LTL and pool distribution service for goods moving

throughout Arizona, California, New Mexico and to and from El Paso, Texas.

RoadOne IntermodaLogistics has acquired Robin Hood Container Express to obtain a

greater grip on the fast-growing U.S. Southeast port region. Robin Hood is a second-

generation intermodal trucking company with operations throughout the U.S. Southeast

including Savannah, Charleston, and Wilmington, North Carolina.

Yusen Logistics has acquired Tibbett Logistics, a wholly owned subsidiary of UK-

based Keswick Enterprises Group. Tibbett Logistics was established in Romania in

2010, although the business can trace its beginnings back to 2004. The company has

since developed into a domestic market leader within the contract logistics,

warehousing, transport and intermodal sectors.

Tidewater Logistics Corporation announced the acquisition of a majority interest in the

Company by certain funds managed by affiliates of Apollo Global Management, LLC.

Tidewater Logistics is a leading provider of frac sand supply chain solutions, delivering

procurement, transloading, last mile and wellsite operations services to E&P,

Pressure Pumping and Sand Mining customers.

Kirby Corporation has acquired Higman Marine, an operator of tank barges and

towboats participating in the inland tank barge transportation industry in the United

States. Higman's marine transportation fleet consists of 159 inland tank barges with

4.8 million barrels of capacity, and 75 inland towboats which primarily transport

petrochemicals, refined petroleum products, crude oil, natural gas condensate, and

black oil on the Mississippi River System and Gulf Intracoastal Waterway.

Genesee & Wyoming Inc. has made an investment in and formed a strategic alliance

with Cargomatic, Inc., a technology platform connecting shippers and truck carriers

with a focus on short-haul markets. Terms of the investment were not disclosed.

Founded in 2013 and headquartered in Long Beach, CA, Cargomatic focuses on the

fragmented short-haul and drayage trucking markets connecting shippers and carriers

real-time via its web platform and apps.

Safe Fleet Holdings, the market-leading provider of safety and productivity solutions for

fleet vehicles, has beeen acquired by Oak Hill Capital Partners. Oak Hill acquired the

Company from its prior owner, The Sterling Group.

Universal Logistics Holdings, a leading asset-light provider of customized

transportation and logistics solutions, has acquired Fore Transportation. Fore

Transportation offers a full suite of intermodal logistics solutions, including local and

regional drayage services, yard services, chassis rental, and repair and maintenance.

Bollore Logistics has acquired a majority stake in the Danish freight forwarder Global

Solutions A/S. This acquisition is part of Bollore Logistics' strategic development

through external growth. This latest transaction will expand further Bolloré Logistics'

global end-to-end offering in the Scandinavian markets.

9



Date Target


01/23/18 3PL Veeco Holdings, LLC

Undisclosed Buyer

01/17/18 3PL Transflo

True Wind Capital Management

01/12/18 3PL TRAC Intermodal (assets)

Direct ChassisLink, Inc.

01/12/18 3PL Piramide SeaAir

Rhenus Logistics

01/12/18 Marine LeBlanc Marine

Rock Hill Capital Group

01/10/18 3PL AJR Transportation

GlobalTranz Enterprises

01/08/18 3PL The Irwin Brown Co.

CH Powell Co.

01/02/18 3PL Redwood Logistics

CI Capital Partners

01/02/18 3PL Trucking Unlimited

TransForce

12/14/17 3PL Channel Distribution Corporation


12/12/17 Trucking H&M Terminal Transport

IMC Companies

12/11/17 3PL Grocontinental Limited

AGRO Merchants Group

Direct ChassisLink, Inc. has acquired TRAC Intermodal’s fleet of approximately 72,000

53-foot domestic chassis and related customer and hosting contracts with major

Class I railroads and intermodal shipping companies throughout the United States.

Financial terms of the transaction were not disclosed.

CH Powell Co. has acquired The Irwin Brown Co., a customs broker and international

freight forwarder specializing in trade between the US Gulf and Central and South

America.

Rock Hill Capital Group has completed a majority recapitalization of LeBlanc Marine,

LLC, a marine service company providing marine construction, barge & tug services,

and material offloading services along the Gulf Coast. LeBlanc was founded in 2004 by

Ben LeBlanc.

True Wind Capital Management has led a new investment in Transflo, partnering with

its management team to recapitalize the business. Based in Tampa, Florida, Transflo

is a leading mobile, telematics, and business process automation provider to the

transportation industry. True Wind’s investment serves as a capstone for Transflo’s

2017 growth.

Rhenus Logistics has enhanced its network of business sites in Brazil by acquiring

Piramide SeaAir. Pirâmide SeaAir has been operating as a licenced customs

clearance broker for more than 20 years and has developed its own customs

clearance software for this purpose. As a result of the acquisition, Rhenus can now

not only operate classic freight forwarding services, but also offer greater efficiency in

providing advice and completing customs clearance for imports and exports.

Veeco Holdings, LLC, a portfolio company of Lineage Capital, has been a acquired.

Veeco is a complete “port-to-door” logistics services company, providing end-to-end

omni-channel supply chain solutions including transportation, deconsolidation, e-

commerce fulfillment, distribution, warehousing, and brokerage services. The

Company operates in three divisions Veeco Services, Crest CFS, and Sundance

Logistics.

IMC Companies, a Memphis-based leader in nationwide intermodal logistics, has

added another top-tier company to its family of brands. IMC Companies has acquired

the drayage and depot operations of H&M Terminal Transport. The company will

operate under the name H&M Intermodal Services, as part of IMC Companies.

GlobalTranz Enterprises, a leading technology-driven freight management solution

provider, today announced it has acquired AJR Transportation, a Texas-based freight

brokerage and logistics company. The acquisition further solidifies GlobalTranz’s

position as a top freight brokerage firm and validates the continued strength of the

freight agent business model. AJR Transportation brings freight management

expertise and best practices that can be leveraged across the GlobalTranz network,

helping to improve operational excellence.

CI Capital Partners, a New York-based private equity firm, has acquired a majority

interest in Redwood Logistics, an industry leading provider of truckload, transportation

management and technology services. Redwood Logistics will combine with

Simplified Logistics, an Ohio-based less-than-truckload logistics provider acquired by

CI Capital in February 2017, to form a unique, full service logistics platform, which will

operate as Redwood Logistics.

TransForce, the nation's leading workforce management solutions firm specializing in

commercial truck drivers, has acquired the assets of Trucking Unlimited. Trucking

Unlimited operates www.truckdrivingjobs.com as their primary job board matching

motor carriers with professional truck drivers. Trucking Unlimited was founded in 2012

by co-Founders Serge Gorelyshev and Mike Pourshakori.

St. George Logistics (“STG”) has expanded its leading position in outsourced

import/export services through the acquisition of Channel Distribution Corp. (“CDC”).

CDC’s management, led by Founder Joe Tamari and Partner Alan Muir, will both

continue with the business and will join STG as shareholders and senior members of

its executive management team.

AGRO Merchants Group, a global leader in cold storage and logistics solutions, has

acquired UK-based Grocontinental Limited. This transaction reinforces AGRO’s

position as the leading cold storage and logistics provider in the United Kingdom and

Ireland, deepens its commodity expertise, and substantially enhances its value-added

service offerings for customers.

10



Date Target


12/07/17 3PL Apex Logistics Group

GlobalTranz Enterprises

12/07/17 Trucking Keen Transport

Wallenius Wilhelmsen Logistics

12/04/17 Trucking Moore Freight Service

The Roadmaster Group

Tennessee Steel Haulers

Daseke, Inc.

Daseke, the largest owner of flatbed equipment in North America, has acquired three

trucking firms in deals aimed at gaining access to higher margin freight. Daseke

bought privately held, Tennessee-based Moore Freight Service, which hauls massive

sheets of glass on proprietary trailers, as well as Roadmaster Group, a leading U.S.

carrier of ammunition and explosives, and Tennessee Steel Haulers & Co. The deals

included cash, stock swaps and assumption of debt.

GlobalTranz Enterprises, a leading technology-driven freight management solution

provider, has acquired Apex Logistics Group, a prominent enterprise shipping and

logistics company. The acquisition further solidifies GlobalTranz’s position as a top

freight brokerage firm and increases the company’s market share in third-party

logistics (3PL) services.

Wallenius Wilhelmsen Logistics has acquired Keen Transport from Platinum Equity.

Keen operates 14 High & Heavy Equipment Processing Centers (EPC's) and a

specialty trucking entity in the US. With its 450 employees Keen provides value-added

facility services, equipment modification, transportation and load consolidation for

about 20 Original Equipment Manufacturers (OEMs).

11


CASS FREIGHT SHIPMENTS INDEX

Source: Cass Information Systems Source: EIA National Average

DIESEL PRICES

ATA TRUCK TONNAGE

FLATBED SPOT RATES DRY VAN SPOT RATES

Source: DAT RateView Source: DAT RateView

Key Trucking Metrics

Source: American Trucking Association

0.95

1.00

1.05

1.10

1.15

1.20

1.25

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 2015 2016 2017 2018

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50


2014 2015 2016 2017 2018

1.35

1.45

1.55

1.65

1.75

1.85

1.95

2.05


2014 2015 2016 2017 2018

1.05

1.15

1.25

1.35

1.45

1.55

1.65

1.75

1.85

1.95


2014 2015 2016 2017 2018

-30%

-20%

-10%

0%

10%

20%

30%

70.0

80.0

90.0

100.0

110.0

120.0

Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18

Adjusted Truck Tonnage Index YOY Change

12


Source: AAR

(1) Excludes U.S. operations of CN and Canadian Pacific

RAILCAR CARLOADS(1)

Source: AAR

Source: AAR

(1) Excludes intermodal units

U.S. RAIL TRAFFIC(1)

CHEMICALS

Rail Volume Trends

Source: AAR

Cars vs 2017 Cumulative vs 2017

Total Carloads 261,273 1.2% 5,141,257 1.1%

Chemicals 31,862 4.7% 647,613 3.6%

Coal 78,519 -0.5% 1,643,405 0.8%

Farm and Food Products, Excluding Grain 16,018 1.0% 322,778 0.6%

Forest Products 10,636 4.9% 202,223 1.3%

Grain 22,225 -6.9% 459,615 -0.8%

Metallic Ores and Metals 23,639 1.8% 442,996 1.4%

Motor Vehicles and Parts 17,006 -4.4% 336,743 -3.2%

Nonmetallic Minerals and Products 40,836 6.6% 695,431 3.9%

Petroleum and Petroleum Products 10,655 10.2% 203,679 3.7%

Other 9,877 -1.6% 186,774 -3.5%

Intermodal Units 285,142 5.9% 5,443,730 5.9%

Total Traffic 546,415 3.6% 10,584,987 3.6%

Week 20, 2018 Year-To-Date

190,000

210,000

230,000

250,000

270,000

290,000

310,000

330,000

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52

2014 2015 2016 2017 2018

23,000

25,000

27,000

29,000

31,000

33,000

35,000

37,000

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52

2014 2015 2016 2017 2018

140,000

160,000

180,000

200,000

220,000

240,000

260,000

280,000

300,000

320,000

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52

2014 2015 2016 2017 2018

INTERMODAL

(CONTAINERS & TRAILERS)

13


Source: Port of Savannah

PORTS OF LOS ANGELES AND

LONG BEACH

PORT OF SAVANNAH PORT OF CHARLESTON

Source: Port of Charleston

Source: Port of Los Angeles & Long Beach Source: Port of New York & New Jersey

PORTS OF NEW YORK AND

NEW JERSEY

CONTAINER RATE BENCHMARK (HONG KONG TO LOS ANGELES)

Source: Drewry, JOC

Ocean Shipping Rates & Large U.S. Port Volume Trends

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600


TE

Us (

in t

housands)

2014 2015 2016 2017 2018

250

300

350

400

450

500


TE

Us (

in t

housands)

2014 2015 2016 2017 2018

140

190

240

290

340

390

440


TE

Us (

in t

housands)

2014 2015 2016 2017 2018

80

100

120

140

160

180

200

220


TE

Us (

in t

housands)

2014 2015 2016 2017 2018

14


TRANSPORT & INFRASTRUCTURE SECTOR EXPERTISE

TRANSPORT PRACTICE CREDENTIALS

• 13 dedicated professionals led by senior bankers with a 18-year average tenure with the company

• Completed over 160 M&A and financing transactions:

90+ advisory services transactions, leading all sector-focused investment banks

70+ equity and debt offerings raising over $14.0 billion in proceeds

• Extensive experience and industry knowledge with deep senior executive and private equity relationships

• Reverse Logistics

• Transportation

Management

• Last-Mile

• Air Freight

Forwarding

• Ocean Freight

Forwarding

• Customs

Clearance

• Freight Brokerage

• Intermodal

Marketing

• Compliance

• Global Trade

Management

LOGISTICS / SUPPLY CHAIN

TRUCKING

• Truckload

• LTL

• Intermodal

• Expedited

• Dedicated Contract

Carriage

• Dry Van

• Temperature-

Controlled

• Bulk

• Tank

• Flatbed

• Import

Deconsolidation

• Multi-Vendor

Consolidation

• Fulfillment

• Value-Added

Services

• Pool Distribution

• Kitting and Sub-

Assembly

WAREHOUSING & DISTRIBUTION RAIL & RAIL SUPPLIERS

• Short-line Railroads

• Maintenance and Repair

• Railcar Manufacturers

• Outsourced Services

• Equipment and Infrastructure

INFRASTRUCTURE & OTHER

• Port Services

• Marine / Terminals

• Component

Manufacturing

• Mobile Asset

Management

• Equipment Leasing

• Outsourced

Services

• Solid Waste

Hauling

• Specialized

• Air Cargo

• Passenger Transportation

AIRLINES & AVIATION

TRANSPORT & INFRASTRUCTURE EQUITY RESEARCH

Savanthi Syth, Airlines Analyst

• 6+ years of experience covering the airline industry

• Raymond James has longstanding recognition of being a leader in

aviation equity research

Tyler Brown, Transportation and Logistics Analyst

• 10+ years covering logistics, trucking, leasing, and rail companies

• Recognized by StarMine Top Analyst survey for his coverage of the

transportation services sector

Transport & Infrastructure Investment Banking

Investment

Banking• Over 300 investment banking professionals across 19 office locations focused on 11 industry sectors

• Since 2011, we have participated in raising more than $450 billion in capital and completed more than 400

advisory assignments, including nearly 350 M&A buy-side or sell-side advisory assignments

Equity Capital

Markets• Powerful institutional and retail distribution capabilities

• More than 6,700 financial advisors serving in excess of 2.8 million client accounts in the U.S.

• 300 experienced institutional salespersons servicing more than 2,400 institutional accounts

Equity Research • One of Wall Street’s leading research efforts with 84 fundamental and technical research

analysts covering more than 1,000 U.S. and more than 300 international companies

• Full-service financial services firm with investment banking, equity research, institutional sales & trading and

asset management operations

• Founded in 1962 and public since 1983 (NYSE: RJF)

• Fiscal 2016 revenue of nearly $5.4 billion

• International operations in Brussels, Buenos Aires, Calgary, Düsseldorf, Geneva, London, Munich, Paris,

Toronto and Vancouver

Raymond James

Overview

15


REPRESENTATIVE M&A ADVISORY EXPERIENCE

REPRESENTATIVE CAPITAL RAISING EXPERIENCE

This report includes logos or other words or devices that may be registered trademarks of their respective owners. Such use is solely for purposes of convenience in referring to the trademark owners and

their products/services. This report and its contents are not endorsed, sponsored or affiliated with any trademark owner. Raymond James & Associates, Inc. and its affiliates are not affiliated with any

trademark owner but may provide certain financial services to one or more trademark owners or their affiliates.

2016 INVESTMENT BANK

OF THE YEAR

SALE OF SEKO TO

GREENBRIAR EQUITY

B-to-B DEAL OF THE

YEAR

2016 INVESTMENT

BANKING FIRM

OF THE YEAR

RECEIVED THOMSON

REUTERS ANALYST

AWARDS

2015 M&A INVESTMENT

BANK OF

THE YEAR – USA

*

RJTRANSPORTANDINFRASTRUCTURE.COM

$300,000,000

Follow-on Offering

Co-Manager

$665,500,000

Follow-on Offering

Co-Manager

Initial Public Offering

Co-Manager

$340,000,000

Follow-On Offering

Sole Manager

$80,500,000$1,600,000,000

Senior Notes

Co-Manager

$1,600,000,000

Term Loan B

Co-Manager

Has received an investment

led by

$30,000,000

Has received an investment

led by

A portfolio company of

Has been acquired by

Has been acquired byHas acquired

Has acquired



Has received a majority

investment from

Has received an equity

investment from

Has been acquiredby

A portfoliocompany of

A portfoliocompany of

Has acquiredHas been acquired byHas acquiredHas received an equity

investment from




Has divested its freight

brokerage division to

Transport & Infrastructure Investment Banking


Has acquired

Initial Public Offering

Bookrunning Manager

$570,000,000

Has received a preferred

stock investment from

$540,500,000

September 2017

An affiliate of


$75,000,000

Start-Up Capital

Commitments

Has received an ABL

facility from

$292,000,000Follow-On Offering

Bookrunning Manager

$362,300,000

a portfolio company of

AN UNDISCLOSED

BUYER

has been acquired by

August 2017 May 2017 September 2016

August 2016 August 2016 February 2016 October 2015 October 2015


July 2015 June 2015

April 2015 February 2015 February 2015 October 2014 September 2014 February 2014 February 2014

December 2016 September 2016 October 2015 October 2015 June 2015 May 2015 May 2015

October 2017 September 2017 July 2017 July 2017 July 2017 May 2017 April 2017

Completed an out-of-court

restructuring led by

In conjunction with a new $80

million ABL facility led by


December 2017



Criteria for the awards can be found at https://www.raymondjames.com/about-us/accolades

March 2018

Freight Force, Inc.




May 2018


https://www.raymondjames.com/about-us/accolades

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