TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
www.harriswilliams.com Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
SUMMARY CONTENTS
M&A | SELECT RECENT ACTIVITY American Capital, Ltd. (Nasdaq:ACAS) has announced that Mirion Technologies, Inc. ("Mirion") was sold to Charterhouse Capital Partners, LLP for $750 million. Mirion is a global provider of radiation detection, measurement, analysis and monitoring products and services to the nuclear power, medical, military and homeland security markets. Source ITT Corporation (NYSE:ITT) has announced that it has completed the acquisition of Hartzell Aerospace, a leading manufacturer of highly engineered and customized solutions for aerospace environmental control systems on a wide range of highgrowth, next-generation aircraft platforms. The addition of Hartzell Aerospace’s high-quality portfolio and innovative technologies will broaden ITT’s capabilities, enhance its ability to serve customers and help further position ITT as a leader in the aerospace market. Source Graybar Electric Company has announced an agreement to acquire Advantage Industrial Automation (“AIA”), a provider of control and automation solutions to industrial users, OEMs and system integrators. AIA will help Graybar Electric Company to accelerate growth within its industrial business. Source Omnicell (Nasdaq:OMCL) has signed an agreement to purchase MACH4 Pharma Systems, based in Bochum, Germany. The combination of Omnicell and MACH4 will create a comprehensive automated medication management offering for hospital and retail pharmacies throughout Europe and emerging markets internationally. Source PUBLIC MARKETS | KEY TRADING STATISTICS Stock Price % Change Sub-Sector Median
1 Month
12 Month
TEV / EBITDA LTM
2015E
TEV / LTM EBITDA Apr-14
Oct-14
LTM Margins Gross
EBITDA
Test and Measurement Instrumentation Sensors Technology and Software Life Sciences and Laboratory
0.5% (0.0%)
6.5% 7.5%
12.9x 12.8x
12.1x 10.8x
12.8x 11.2x
11.5x 11.7x
38.7% 40.0%
16.4% 20.1%
3.6% 0.6%
(14.8%) 8.6%
16.6x 15.2x
11.8x 14.9x
14.9x 14.5x
14.7x 13.7x
43.1% 48.4%
11.0% 20.8%
(0.7%) 3.3%
(7.6%) (7.1%)
11.9x 10.7x
11.5x 10.0x
12.9x 11.3x
11.1x 10.2x
35.3% 33.1%
16.3% 14.6%
Motion and Driv es Intelligent Automation
(1.4%) 2.4%
(5.4%) (11.6%)
11.4x 11.1x
10.2x 9.9x
12.1x 11.3x
10.8x 10.6x
35.4% 42.0%
15.8% 12.4%
Actuators and Positioners Condition Monitoring
0.2% (1.9%)
(9.2%) 8.2%
9.8x 11.2x
9.1x 10.1x
11.0x 12.2x
9.1x 9.7x
30.8% 49.2%
15.3% 18.5%
1.8% 3.5%
(21.9%) (25.5%)
11.2x 11.1x
9.8x 9.2x
12.6x 11.7x
10.2x 10.4x
32.1% 19.4%
17.5% 7.9%
RECENT M&A ACTIVITY WHAT WE’RE READING HW&CO. DEAL UPDATE PUBLIC MARKETS M&A MARKET TRENDS ECONOMIC UPDATE PUBLIC COMPARABLES
CONTACTS
UNITED STATES Bill Roman Managing Director
[email protected] +1 (617) 654-2101 Jay Hernandez Director
[email protected] +1 (617) 654-2114
EUROPE Jeffery Perkins Managing Director
[email protected] +49 (69) 3650638 13 Lars Friemann Director
[email protected] +49 (69) 3650638 12 Alex Murrill Vice President
[email protected] +44 (20) 7518 8918 Ben Lewis Vice President
[email protected] +44 (20) 7518 8908
Flow Control Pumps and Filtration Valv es and Fittings Process / Motion Control
Test Services Testing, Inspection, and Certification Engineering and Consulting
www.harriswilliams.com
PAGE | 1
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
HW&CO. UPDATE DEAL SPOTLIGHT | JR AUTOMATION TECHNOLOGIES The Harris Williams & Co. Test, Measurement, and Control team continues our strong activity in 2015 having closed three sell-side transactions and actively working on several new deals coming to market soon. This includes the recent sale of Huizenga Automation Group, LLC (d/b/a JR Automation Technologies), a leading provider of intelligent automation solutions, to Crestview Partners. Harris Williams & Co. acted as the exclusive financial advisor to JR Automation Technologies and the company’s shareholders.
a portfolio company of
Our intelligent automation market insights were expanded through our active participation at several recent trade shows, including Automate, ProMate, Hannover Messe, and SPS IPC Drives. This allowed us to further witness the latest industry trends and talk with key decision makers about the dynamics driving strong investments in intelligent automation. The following summarizes some of our key observations.
has been acquired by
Global Wage Inflation
The global market continues to face upward pressure on wages, supported by rising educational standards and urban population migration in developing markets, such as Asia and Latin America. The average wage increased by 10% per annum from 2007 to 2011 in emerging Asian countries and 9% per annum in emerging Latin American countries. Having reached the “Lewis Turning Point,” companies in these regions are accelerating their investment in automation to reduce their labor content. China alone has seen a 56% average annual increase in the installed base of industrial robots from 2009 to 2014, with an expected doubling to occur by 2017. Accelerating Wage Growth…
…Resulting in Greater Regional Adoption Rates
Avg. annual percentage change from 2007-2011 100,000
Industrial Robots Sold (units)
10% 9% 8%
4% 3%
2%
80,000
60,000 40,000 20,000 0
'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Developed
Developed (Ex Japan)
Emerging Non-Japan Markets Total Asia Emerging
LatAm Emerging
EMEA Emerging
North America
China
South Korea
Japan
Germany
Profitability Pressures Companies continue to seek improved post-downturn profitability levels via a focus on productivity and process efficiency gains while reducing waste. This has become increasingly important as companies across all end markets seek to compete globally. Studies have consistently evidenced a 10% to 30% boost to productivity in many industries and upwards of 30% higher labor cost savings stemming from the use of automation. Financial Performance of Major Industries Percentage change from 2007-2014
∆ GM%
40%
∆ ROE%
30.4%
30% 20%
5.6%
10%
8.8%
9.8%
1.1%
0% -10%
(0.8%)
(2.6%)
(1.0%)
(3.9%)
(3.3%)
(0.7%)
-20% -30% -40%
(35.6%)
Aerospace
Auto
Medical / Life Sciences
Food / Consumer Goods
Plastics & Rubber
Semiconductors & Electronics
PAGE | 2
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
HW&CO. UPDATE Safety Regulations The automation of test and inspection processes enables medical, pharmaceutical, and food & beverage companies to more efficiently and effectively comply with increasingly stringent quality and safety standards from the FDA and other agencies. Increasingly stringent regulatory standards, such as the FDA's Food Safety Modernization Act and regulatory compliance acts involving medical devices, and the associated penalties for noncompliance, are further accelerating the adoption rate of intelligent automation along the entire supply chain. Automated systems are allowing for more consistent, repeatable process steps that allow for better synchronization across the supply chain, while providing for fulsome and accurate documentation reporting capabilities. These benefits are further adding to the value proposition, and associated adoption rate, of automation systems. Top Industries Adopting Automation 80%
73% 67%
Robot Orders (annual growth rate)
70% 60%
50% 40%
35%
32%
30%
20% 10% 0%
Medical / Life Sciences
Food / Consumer Plastics & Rubber Semiconductors Goods & Electronics
Enterprise Systems Connectivity amongst industrial operations and automated systems is expected to provide significant gains to productivity and process control as a result of the acquisition, organization and usage of the vast amount of data captured in these systems. Aided by emerging enterprise intelligent software solutions, manufacturing-related data from many sources will be combined into actionable analyses and visual summaries. Additionally, the growing ability for autonomous sharing and usage of data between enterprise-level and plant-floor systems will further unlock process efficiencies across the entire supply chain, from raw material providers to product end users. Estimated Commercial Value From Enterprise Connectivity Over the Next Decade
Reduced Time to Market
$810+ billion
Eliminated Waste Through Improved Logistics
$729+ billion
Greater Labor Efficiencies and Increased Productivity
$675+ billion
Increased Asset Utilization Reduces Costs
$675+ billion
PAGE | 3
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
WHAT WE’RE READING TAKEOFF IN ROBOTICS WILL POWER THE NEXT PRODUCTIVITY SURGE IN MANUFACTURING The Boston Consulting Group The use of advanced industrial robots is nearing the point of takeoff, a development that could power a new wave of productivity growth in many industries and lead to changes of up to 5 percentage points in the cost competitiveness of major export economies relative to the U.S. BCG projects that investment in industrial robots will accelerate markedly over the next decade, from annual growth that now averages 2% or 3% to around 10%. As a result, the total cost of manufacturing labor in 2025 could be 16% lower, on average, in the world’s 25 largest goods-exporting nations than they would be otherwise. Depending on the industry and country, output per worker could rise by an estimated 10% to 30% over and above productivity gains that typically come from other measures. Read the full article here. HOW THE INTERNET OF THINGS WILL GROW ACROSS SECTORS Business Insider The internet has already connected people throughout the world. Now the Internet of Things (IoT) aims to take the next step and connect the world’s devices, buildings, and objects. The IoT is forecasted to be the largest device market in the world by 2019, with 23.2 billion active devices. This represents a five-year compound annual growth rate of 57% between 2014 and 2019. The rapid uptick in growth can be attributed to the spread of internet connectivity, large-scale IoT investments, and the declining cost of internet-connected sensors. The primary benefits of the IoT are increased efficiency and lowered costs as enterprises are able to quickly understand mechanical performance, optimize production and shipments, and reallocate resources most effectively. End users stand to have more control over their physical environment and act upon it from anywhere allowing for real-time adjustments. Read the full article here. INTELLIGENT PUMPS EVOLVE WITH SMART VFDS AND CONNECTIVITY Flow Control Magazine Whether at home, the office, or on the industrial plant floor, energy efficiency is a common goal that is well established among homeowners, business owners, industry and government alike. But the focus on “pump systems efficiency” is a relatively new concept when it comes to industrial applications. The industrial pump market is steadily growing with new developments expected in pump control systems. Increasing regulations on energy efficiency and sanitary requirements, especially in the food & beverage and pharmaceutical industries, will provide new opportunities for pump manufacturers. Read the full article here. SLOWING EMERGING-MARKET GROWTH IS SAPPING GLOBAL ECONOMIC PROSPECTS Wall Street Journal According to the IMF, global economic growth will accelerate only marginally this year as slowing output in major emerging markets and a feeble expansion in wealthier countries drag down near-term prospects. Emerging markets are on course for their sixth straight year of slowing growth rates, led by a slowdown in China, a steep contraction in Russia and a recession in Brazil. The global economy should expand by 3.5% this year, with sluggish recoveries in Europe and Japan and softer output in the U.S. as a stronger dollar weighs on exports. Together with aging workforces and deteriorating productivity levels around the world, the global economy faces a bleak, low-growth outlook through 2020. Read the full article here.
PAGE | 4
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
M&A TRANSACTIONS RECENT M&A TRANSACTIONS Date
Target
Vertical
Business Description
Acquirer
4/16/2015
Schroedahl
Flow Control
Manufacturer of safety and control v alv es primarily for the pow er generation market.
CI RCOR I nternational, I nc.
4/9/2015
Sonitec-Vortisand I nc.
Flow Control
Manufactures crossflow micro-sand submicron automatic sand filtration products for the industrial process w ater treatment market.
Neptune-Benson, I nc.
4/9/2015
MATI S I NTERVENTI ONS SARL Test Serv ices
Prov ides maintenance serv ices for critical industrial process applications.
4/8/2015
I nspecta Group Oy
Test Serv ices
4/1/2015
Valv es I nc. of Texas
Flow Control
Prov ides inspection, testing, certification, technical consultancy, and training serv ices to the energy and pow er, manufacturing and engineering, and metals and mining, among other sectors. Prov ides v alv e maintenance products including lube sealant packaging products and v alv e flushes.
La Société Suisse pour la construction de Locomotiv es et de ACTA Holding BV
4/1/2015
Applied Speciation and Consulting, LLC
Test Serv ices
3/31/2015
Energy Dev elopment Associates, LLC
Test and Measurement
3/31/2015
Engineered Machinery I nc.
Test and Measurement
3/30/2015
Agilent Technologies I nc., X-Ray Diffraction Business
Test and Measurement
3/30/2015
Q-DAS GmbH & Co. KG
3/26/2015
KMG Chemicals I nc.
Prov ides analytical testing and laboratory consulting serv ices including trace metal and metal speciation analysis, inductiv ely coupled plasmamass spectrometry, and stable isotope ratio testing serv ices. Designs, dev elops, and manufactures pow er conv ersion products including photo-v oltaic pow er inv erters and regenerativ e load bank test systems. Manufactures, distributes, repairs, and refurbishes pumps and other components for the semiconductor and other high technology industries. Manufactures and markets single-crystal X-ray instruments for the global chemical crystallography market.
Brooks Rand Labs LLC
Process / Motion Control
Dev elops softw are and statistical process control solutions for industrial manufacturing applications.
Hexagon AB
ResMan AS
Test and Measurement
Prov ides w ireless and dow nhole measurement systems for inflow monitoring and control.
Nordic Capital
3/26/2015
Miitors ApS
Test and Measurement
Dev elops w ater meters based on ultrasonic systems measuring technology.
Apator Pow ogaz S.A.
3/25/2015
CONTROS Systems & Solutions GmbH
Test and Measurement
Prov ides underw ater sensors, systems, and serv ices for the detection, localization, and measurement of hydrocarbons and CO.
Kongsberg Maritime AS
3/24/2015
Clearw ater Group Plc
Flow Control
Baird Capital
3/24/2015
Mirion Technologies, I nc.
Test and Measurement
3/24/2015
Adv antage I ndustrial Automation, I nc.
Process / Motion Control
3/23/2015
RST Rostock System-Technik Test and Measurement GmbH
Specializes in designing, manufacturing, installing, serv icing, consulting, and optimizing filtration, separation, and treatment equipment to v arious industries in the United Kingdom and Europe. Prov ides radiation detection, measurement, analysis, and monitoring products and serv ices to the nuclear, defense, and medical end markets. Prov ides factory automation products, serv ices, and support for industrial users, original equipment manufacturers, and system integrators. Manufactures gas sensors, ground support systems, and test equipment for aerospace applications.
3/20/2015
Digi-Star I nv estments, I nc.
Test and Measurement
3/17/2015
Precisiv e, LLC
Test and Measurement
3/16/2015
Radiation Safety Serv ices Pty Ltd and Western Radiation Serv ices Pty Ltd Beijing New Biolink Technology Dev elopment Co., Ltd.
Test Serv ices
Prov ides radiation safety, protection, equipment, and training and consulting serv ices.
SGS SA
Flow Control
Designs, manufactures, and markets membrane and filters, chemicals, and fluid equipment for w astew ater treatment, and material filtration and separation.
Focused Photonics (Hangzhou), I nc.
3/13/2015
Rhombus Energy Solutions, I nc. Ryan Herco Flow Solutions, I nc. Rigaku Corporation
Charterhouse Capital Partners LLP Graybar Electric Company, I nc. FERCHAU Engineering GmbH
Dev elops, manufactures, and sells agricultural solutions including w eight Topcon Positioning Systems, sensors and control systems for feeding, planting, fertilizer, and harv est I nc. equipment manufacturers. Designs, manufactures and sells non-contact, optics-based instruments MKS I nstruments, I nc. for chemical composition monitoring in liquid, gas and solid samples.
PAGE | 5
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
M&A TRANSACTIONS RECENT M&A TRANSACTIONS (CONTINUED) Date
Target
Vertical
Business Description
Acquirer
3/11/2015
ReVera I ncorporated
Test and Measurement
Prov ides production metrology solutions for semiconductor processing.
Nov a Measuring I nstruments Ltd.
3/11/2015
Nav con Nav egacao e Controle Ltda
Test and Measurement
Designs and dev elops data acquisition and motion monitoring systems using inertial sensors for offshore, air, land, and space applications.
BMT Group Limited
3/8/2015
Distech Controls I nc.
Process / Motion Control
3/6/2015
Apex Metrology Solutions
Test Serv ices
3/4/2015
PCH Engineering A/S
Test and Measurement
Designs and manufactures building automation systems (BAS) and Acuity Brands, I nc. energy management systems for commercial, institutional, and gov ernment portfolios. Operates an inspection and testing laboratory, prov iding on-site Transcat I nc. serv ices; and scanning, large gage/fixture inspection, rev erse engineering, mold v erification, and probe serv ices. Manufactures v ibration monitoring equipment for industrial applications. Erhv erv sinv est Management A/S
3/3/2015
kubit GmbH
Test and Measurement
Dev elops softw are for capturing, surv eying, and as-built documentation FARO Technologies I nc. of existing conditions into the AutoCAD env ironment.
3/2/2015
Shenzhen Farad Electric Co., Ltd.
Process / Motion Control
Prov ides electric pow er engineering consulting, design, construction, supply, and automation solutions.
Guangdong Dynav olt Pow er Technology Co., Ltd.
2/26/2015
MACH4 Automatisierungstechnik GmbH KCB Kalibriercentrum Bayern
Process / Motion Control
Dev elops and produces automated modular systems that are used in pharmacies and hospitals in Germany and Europe.
Omnicell I nternational, I nc.
Test Serv ices
Prov ides laboratory and field calibration serv ices.
Atlas Copco AB
2/24/2015
JR Automation Technologies, LLC
Process / Motion Control
Designs, assembles, tests, and integrates intelligent automated manufacturing systems.
Crestv iew Partners, L.P.
2/23/2015
ACL I nstruments AG
Test and Measurement
Dev elops instruments, modules, and related softw are for the chemiluminescence-based analysis of oxidativ e reactions.
ReseaChem GmbH
2/23/2015
Aspen Pumps Limited
Flow Control
3i Group plc
2/23/2015
Polypore I nternational I nc. Flow Control
Designs, manufactures, and supplies condensate remov al pumps and accessories for the air conditioning, heating, and refrigeration industry w orldw ide. Dev elops, manufactures, and markets specialized microporous membranes for the use in separation and filtration processes.
2/19/2015
Gruppo Aturia SpA
Flow Control
Dev elops and produces magnetic driv e sealless pumps.
WPI L Limited
2/17/2015
MAGWEN Valv es GmbH
Flow Control
2/17/2015
Siemens Energy Packaged Process / Motion Control Pow er Solutions
Dev elops and manufactures ball and butterfly v alv es, choke and piston Rotex Automation Limited check v alv es, duo check and gate v alv es, shut/off v alv es, and self pressure regulators. Manufactures and assembles pow er equipment centers for low and Koontz-Wagner Custom medium v oltage sw itchgear and motor control center equipment. Controls Holdings LLC
2/12/2015
Applimotion, I nc.
Process / Motion Control
2/11/2015
PureSense Env ironmental I nc.
Test and Measurement
2/11/2015
Electric Field Solutions, I nc. Test and Measurement
2/11/2015
BioDiagnostics I nc.
Test Serv ices
2/10/2015
Air Monitor Corporation
Test and Measurement
2/25/2015
ESM Holdings Corporation
Designs, manufactures, and markets direct driv e frameless motors, linear GSI Group I nc. and linear arc (ARC) motor solutions, precision motion systems, motor components, and actuators. Prov ides real-time irrigation and field monitoring and controlling tools for Jain I rrigation, I nc. the agricultural industry. Dev elops and deliv ers electric field sensors used in v arious applications, Premier Serv ice I nc. including av iation, electric fault detection, electrostatic paint monitoring, and electrostatic discharge prev ention. Prov ides genetic testing, trait purity, germination and v igor testing, and Eurofins Scientific SA quality assurance consulting serv ices for the seed industry. Manufactures flow measurement products for use in the measurement and control of airflow and space pressurization in the commercial, industrial, and pow er industries.
Harbour Group
PAGE | 6
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
M&A TRANSACTIONS RECENT M&A TRANSACTIONS (CONTINUED) Date
Target
Vertical
Business Description
Acquirer
2/10/2015
Dr. Noll GmbH
Test and Measurement
Dev elops and assembles measurement dev ices for tire industry, textile, glass, and plastics industries.
Erhardt + Leimer GmbH
2/9/2015
SLETI SA
Process / Motion Control
Cockerill Maintenance & I ngénierie S.A.
2/9/2015
National I nspection & Consultants, LLC
Test Serv ices
2/9/2015
Env ironmental Ev aluation Limited
Test Serv ices
2/6/2015
iNDAT Robotics GmbH
Process / Motion Control
Designs and manufactures robotic systems, automation dev ices, tanks and equipment, industrial and I T products, production tools, plastic sheets, v entilation solutions, and measurement/control equipment. Prov ides non destructiv e examination serv ices including ultrasonic, contact, X-ray and gamma, flaw detection, liquid penetrant, and magnetic particle inspections/examinations. Prov ides consulting and monitoring serv ices in the areas of occupational hygiene, env ironmental assessment, and health and safety. Manufactures integrated robotic systems.
2/3/2015
J-Mac Tool, I nc.
Flow Control
Manufactures w ell serv ice pumps and fluid ends for oil and gas industries.
Forum Energy Technologies, I nc.
2/3/2015
Trace Laboratories, I nc.
Test Serv ices
2/2/2015
I nstrumentation Northw est, Test and Measurement I nc.
Offers testing, qualification, analysis, automation, and training serv ices in National Technical Systems the areas of compliance, life cycle testing, and printed circuit board I nc. design. Manufactures pressure transducers and w ater quality instrumentation Seametrics I nc. solutions.
2/2/2015
Adelaide I nspection Serv ices Pty Ltd
Test Serv ices
Prov ides non-destructiv e testing serv ices to pow er generation, construction, oil and gas, and mining industries.
I ntertek Group plc
2/2/2015
Bow tech Products Limited
Test and Measurement
Engages in the design, manufacture, supply, and lease of v ision systems for underw ater harsh env ironments.
Teledyne Technologies I nc.
1/31/2015
ALMA Serv ices
Test and Measurement
Prov ides petroleum metering and distribution products to the petroleum Grupo Orona distribution industry in Europe and Africa.
1/30/2015
JC Carter LLC
Flow Control
Designs, manufactures, and installs cryogenic submerged motor pumps.
Nikkiso Cryo, I nc.
1/30/2015
CableTest Systems I nc.
Test and Measurement
Prov ides cable testing solutions including w iring analyzer and softw are tools for flexible test dev elopment env ironments.
NEXEYA
1/30/2015
FronTone GmbH
Test and Measurement
Dev elops and manufactures adv anced safety test equipment for v ehicle interior and front testing.
Humanetics I nnov ativ e Solutions, I nc.
1/29/2015
Lansmont Corporation
Test and Measurement
Designs and manufactures testing equipment and self-pow ered field instruments for recording and characterizing distribution env ironments.
Data Physics Corporation
1/29/2015
Alicona I maging GmbH
Test and Measurement
Prov ides optical 3D measurement and inspection solutions for the laboratory and production use.
1/29/2015
M&R Automation GmbH
Process / Motion Control
1/29/2015
Centre of Testing Serv ice Co., Ltd.
Test Serv ices
Dev elops and manufactures custom-made production lines and testing systems for automotiv e, electronics, consumer goods, pharmaceutical, and medical industries. Prov ides testing and certification serv ices in Guangzhou and Ningbo, China.
Quadriga Capital Beteiligungsberatung GmbH Quadriga Capital Beteiligungsberatung GmbH Bureau Veritas SA
1/20/2015
Ardan Control Tech LTD
Process / Motion Control
Distributes integrated automation and control solutions.
LUDAN-TECH Ltd.
1/16/2015
ChemiSens AB
Test and Measurement
Manufactures and sells reaction calorimeter systems that measure the heat flow to chemical industries and institutions w orldw ide.
Blacktrace Holdings Limited
1/14/2015
ProFlo I nc., ProStrainer Product Line
Flow Control
Prov ides pump strainers, flow straighteners, and auto air ev acuators.
Neptune-Benson, I nc.
The Edgew ater Funds; JZ Capital Partners Limited Exov a Group plc
NSM MAGNETTECHNI K GmbH
PAGE | 7
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
PUBLIC MARKETS OVERVIEW Test and Measurement
Flow Control
TEV / LTM EBITDA
Process / Motion Control
Test Serv ices
TEV / 2015E EBITDA
Instrumentation
12.9x
Instrumentation
Sensors
12.8x
Sensors
16.6x
Technology and Software
15.2x
Life Sciences and Laboratory
11.9x
Pumps and Filtration
11.4x
Motion and Drives
11.1x
Inte lligent Automation
10.0x
Motion and Drives
10.2x
11.2x
Condition Monitoring
11.2x
Testing, Ins pection, and Certification
Engineering and Consulting
11.1x
Engineering and Consulting
NET DEBT / LTM EBITDA 1.2x
0.7x
Life Sciences and Laboratory
0.7x
Pumps and Filtration
1.2x
Valves and Fittings
1.0x
2.0x 0.7x 2.1x
15.1%
Actuators and Positioners
15.1% 21.0% 16.8%
Testing, Ins pection, and Certification
2.7x
Engineering and Consulting
CAPEX / REVENUE (2013 – 2015P)
9.9%
Engineering and Consulting
RESEARCH & DEVELOPMENT / LTM REVENUE 3.1%
3.7%
Pumps and Filtration
2.7%
Valves and Fittings
3.3%
Motion and Drives
8.0%
Te chnology and Software
5.4%
Life Sciences and Laboratory
3.2%
Pumps and Filtration
6.6%
Sensors
4.8%
Technology and Software Life Sciences and Laboratory
7.2%
Instrumentation
4.1%
Sensors
1.7% 1.3% 4.4%
Motion and Drives
2.8%
3.6%
Inte lligent Automation
2.5%
3.0%
Actuators and Positioners
4.1% 4.5%
Te sting, Ins pection, and Certification
Engineering and Consulting
17.0%
Intelligent Automation
Condition Monitoring
Te sting, Ins pection, and Certification
Condition Monitoring
14.3%
Motion and Drives
Actuators and Positioners
Intelligent Automation
20.6% 17.6%
Valves and Fittings
-0.4x
Condition Monitoring
20.1% 16.5%
Te chnology and Software
Pumps and Filtration
Motion and Drives
16.0%
Sensors
-0.9x
Life Sciences and Laboratory
Actuators and Positioners
9.2x
Instrumentation
0.9x
Sensors
Valves and Fittings
10.1x 9.8x
AVERAGE EBITDA MARGIN (2013 – 2015P)
Instrumentation
Instrumentation
9.9x 9.1x
Actuators and Positioners
Condition Monitoring
Inte lligent Automation
11.5x
Valves and Fittings
Testing, Ins pection, and Certification
Technology and Software
14.9x
Inte lligent Automation
9.8x
Actuators and Positioners
11.8x
Te chnology and Software Life Sciences and Laboratory Pumps and Filtration
10.7x
Valves and Fittings
12.1x 10.8x
3.7%
11.1%
Condition Monitoring Testing, Ins pection, and Certification
0.1%
Engineering and Consulting
0.1%
PAGE | 8
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
GLOBAL M&A TRENDS GENERAL MARKET OBSERVATIONS The global M&A industry saw $902.2 billion in deals announced in Q1 2015, a 23.1% jump compared to the $732.8 billion figure from the same time period in 2014.
The U.S. M&A environment remains active, with aggregate deal volume increasing by 27.8% in Q1 2015 year over year. European M&A deal volume increased by 12.7% in Q1 2015 year over year, reaching the highest Q1 level since 2011.
The global test, measurement, and control sector saw 149 deals close through Q1 2015, representing a 4.2% increase compared to Q4 2014.
TEST, MEASUREMENT, AND CONTROL QUARTERLY M&A ACTIVITY
Number ofAnnounced M&A Deals
250
200
150
100
50
0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010
2011
2012
2013
2014
2015
PAGE | 9
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
ECONOMIC UPDATE GROSS DOMESTIC PRODUCT U.S.
Real GDP increased by 0.5% for Q4 2014, (overall GDP increased by 2.4% in 2014), led by gains in consumer spending and nonresidential fixed investment. Growth for the year was lower than anticipated due to an increased trade gap and a weather-driven drop in GDP during the first quarter. PNC economists forecast GDP growth of 3.0% and unemployment nearing 5.0% in 2015. Energy prices continue to weigh on the economy in the short-term; however, growth will reaccelerate over the rest of the year as consumers spend more on other goods and services, supporting faster economic growth.
EU-28
2.0% 1.5%
Q4: 0.5% 1.0% 0.5% 0.0%
Q4: 0.4%
-0.5%
-1.0% Q4 Q1 2012 2013
Seasonally adjusted GDP in the EU for Q4 2014 rose by 0.4%, with 1.3% annualized growth.
Q2 Q3 Q4 Q1 2013 2013 2013 2014
U.S. INDUSTRIAL PRODUCTION U.S.
Industrial production increased by 0.1% from January 2015 to February 2015, after a slight decrease from December 2014 to January 2015. The slight increase in February is largely due to an increase in consumer goods and consumer energy products. Capacity utilization has decreased to 78.9% as of February 2015.
EU-28
Industrial production during February 2015 increased by 0.9%, led by a rise in non-durable consumer goods and energy. Capacity utilization has remained relatively flat at 80.2% as of February 2015.
U.S.
In February 2015, new orders decreased by 0.2%. Severe weather and low oil prices adversely affected core capital goods orders.
EU-28
The EU saw total new orders fall by 0.9% in February 2015, resulting in a total decrease of 3.4% through Q1 2015.
Feb-15: 105.8
106.0
104.0 102.0 100.0
Feb-15: 103.0
98.0 96.0 94.0 92.0
U.S.
The Leading Economic Index increased by 0.2% from January 2015 to February 2015 to reach 121.4.
EU-28
140.0 136.0
132.0 128.0 124.0 120.0 116.0 112.0 108.0 104.0 100.0 96.0
Feb-15: 115.1
Feb-15: 110.2
U.S. ECONOMIC SENTIMENT
EU-28
130.0
120.0 Feb-15: 121.4
110.0
EU-28
The Euro Commission Economic Sentiment Index slightly increased in February 2015 by 0.4%.
Q3 Q4 2014 2014
EU-28
108.0
U.S. NEW ORDERS
Q2 2014
100.0
Feb-15: 104.7
90.0
U.S.
EU-28 PAGE | 10
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
OUR FIRM Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at www.harriswilliams.com/industries. Aerospace, Defense & Government Services
Building Products & Materials
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PAGE | 11
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
PUBLIC COMPARABLES TEST AND MEASUREMENT As of April 23, 2015 ($ in Millions, except per share amounts) Stock Performance LTM Margins EBITDA Instrumentation AMETEK, I nc.
Gross
TEV
Current
1-Month
1-Year
% of
R&D / Sales
Price
Change
Change
LTM High
LTM
TEV / EBITDA LTM
2015E
25.8%
35.4%
$14,057
$52.69
(0.8%)
1.3%
96.7%
5.2%
13.6x
12.7x
Danaher Corp.
22.6%
52.8%
$60,657
$84.69
(2.7%)
16.3%
96.1%
6.5%
13.3x
12.8x
Spectris plc
18.4%
57.6%
$4,221
$33.88
1.8%
(11.2%)
93.0%
7.0%
12.5x
11.9x
Badger Meter I nc.
16.9%
36.2%
$997
$64.22
8.9%
26.1%
99.4%
2.6%
16.2x
15.1x
Teledyne Technologies I nc.
16.4%
38.1%
$4,458
$109.15
6.4%
14.3%
99.2%
17.9%
11.3x
10.8x
National I nstruments Corporation
16.3%
74.5%
$3,651
$32.17
(2.1%)
16.6%
95.8%
18.2%
18.0x
12.6x
ESCO Technologies I nc.
15.6%
39.3%
$1,015
$38.05
(1.0%)
8.8%
95.8%
7.8%
12.3x
10.9x
Jenoptik AG
12.1%
34.8%
$797
$12.20
(13.0%)
(25.3%)
82.6%
6.7%
9.2x
8.4x
Oxford I nstruments plc
10.7%
44.9%
$991
$13.73
13.4%
(40.9%)
62.8%
7.4%
15.3x
12.4x
$1,670
$37.24
I tron, I nc.
8.6%
31.6%
2.5%
4.2%
85.3%
8.9%
9.9x
9.9x
Median
16.4%
38.7%
0.5%
6.5%
95.8%
7.2%
12.9x
12.1x
Mean
16.3%
44.5%
1.3%
1.0%
90.7%
8.8%
13.2x
11.8x
Sensors Sensata Technologies Holding NV
25.1%
34.8%
$12,529
$58.29
2.4%
30.3%
98.7%
3.4%
20.7x
16.2x
Meggitt PLC
22.7%
40.1%
$7,421
$8.28
(2.7%)
4.3%
92.7%
7.0%
13.5x
11.0x
FLI R Systems, I nc.
22.7%
49.8%
$4,165
$30.91
(1.1%)
(13.4%)
82.6%
9.4%
12.1x
11.2x
Honeywell I nternational I nc.
17.5%
28.8%
$81,689
$103.01
(0.0%)
10.6%
97.0%
7.3%
11.7x
10.1x
MTS Systems Corporation
14.3%
39.9%
$1,133
$74.80
(0.0%)
11.3%
96.7%
4.2%
13.9x
10.6x
First Sensor AG
10.2%
50.3%
$147
$11.19
1.2%
(18.4%)
91.4%
6.2%
9.6x
8.1x
Median
20.1%
40.0%
(0.0%)
7.5%
94.7%
6.6%
12.8x
10.8x
Mean
18.8%
40.6%
(0.0%)
4.1%
93.2%
6.2%
13.6x
11.2x
Technology and Software Hexagon AB
24.8%
57.8%
$15,493
$37.56
8.5%
19.9%
16.3%
NM
19.7x
16.0x
FARO Technologies I nc.
13.1%
55.3%
$602
$44.66
(26.5%)
(9.1%)
68.0%
8.0%
13.4x
13.3x
Mistras Group, I nc.
8.9%
28.7%
$655
$18.19
1.3%
(24.3%)
71.4%
0.4%
10.3x
8.3x
Muehlbauer Holding AG & Co. KGaA
1.1%
31.0%
$267
$20.28
6.0%
(20.5%)
80.8%
14.4%
91.3x
10.4x
Median
11.0%
43.1%
3.6%
(14.8%)
69.7%
8.0%
16.6x
11.8x
Mean
12.0%
43.2%
(2.7%)
(8.5%)
59.1%
7.6%
33.7x
12.0x 14.9x
Life Sciences and Laboratory Waters Corporation
32.1%
58.5%
$9,691
$124.35
0.6%
11.9%
98.1%
5.4%
15.2x
Mesa Laboratories I nc.
29.8%
60.5%
$321
$83.26
10.4%
(4.8%)
92.6%
4.6%
15.7x
NA
Thermo Fisher Scientific, I nc.
23.9%
46.6%
$65,552
$129.55
(3.9%)
8.6%
93.2%
4.1%
16.2x
15.7x
FEI Company
22.0%
48.6%
$2,782
$75.15
(3.2%)
(19.9%)
79.5%
10.7%
13.2x
12.1x
Mettler-Toledo I nternational I nc.
20.8%
47.4%
$9,474
$324.36
(1.9%)
38.9%
97.3%
5.0%
18.3x
16.7x
Sartorius Aktiengesellschaft
20.3%
48.4%
$3,012
$152.64
12.6%
11.7%
95.0%
6.0%
14.6x
12.5x
Agilent Technologies I nc.
17.7%
52.0%
$13,855
$42.62
1.0%
(22.0%)
71.5%
10.2%
11.2x
15.8x
PerkinElmer I nc.
15.4%
45.0%
$6,711
$51.57
3.5%
16.5%
99.2%
5.4%
19.5x
15.0x
Bruker Corporation
12.0%
43.6%
$3,119
$19.32
(2.0%)
(8.7%)
77.5%
9.6%
14.4x
13.4x
Median
20.8%
48.4%
0.6%
8.6%
93.2%
5.4%
15.2x
14.9x
Mean
21.5%
50.1%
1.9%
3.6%
89.3%
6.8%
15.4x
14.5x
Overall Median
17.5%
45.0%
0.6%
4.3%
93.0%
6.8%
13.6x
12.4x
Overall Mean
17.9%
45.3%
0.7%
1.1%
86.4%
7.5%
16.8x
12.5x
PAGE | 12
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
PUBLIC COMPARABLES FLOW CONTROL As of April 23, 2015 ($ in Millions, except per share amounts) Stock Performance LTM Margins EBITDA
Gross
TEV
Current
1-Month
1-Year
% of
R&D / Sales
Price
Change
Change
LTM High
LTM
TEV / EBITDA LTM
2015E
Pumps and Filtration Graco I nc.
28.2%
54.6%
$4,375
$71.33
(2.7%)
(3.3%)
86.8%
4.4%
12.7x
12.4x
I DEX Corporation
24.4%
44.3%
$6,255
$75.42
(1.3%)
3.1%
92.2%
1.7%
11.9x
12.0x
Pall Corporation
23.2%
51.1%
$10,607
$98.08
(5.8%)
13.7%
92.4%
3.6%
16.0x
15.5x
I MI plc
20.0%
45.7%
$5,370
$18.67
(4.8%)
(25.5%)
77.5%
0.0%
10.2x
10.5x
Essentra plc
19.7%
57.2%
$4,026
$15.19
0.6%
9.1%
95.1%
NM
15.1x
11.6x
Flow serv e Corp.
18.2%
35.2%
$8,425
$57.24
(0.1%)
(27.6%)
71.8%
0.8%
9.5x
9.4x
Pentair plc
16.9%
35.0%
$14,326
$63.59
(1.2%)
(20.1%)
78.9%
1.7%
12.0x
11.5x
Donaldson Company, I nc.
16.5%
35.3%
$5,450
$37.66
(0.7%)
(10.4%)
86.8%
2.5%
13.3x
12.9x
Trelleborg AB
16.3%
35.5%
$6,226
$19.73
1.9%
(0.6%)
94.7%
1.5%
13.3x
12.8x
Xylem I nc.
16.1%
38.6%
$7,009
$35.14
(1.1%)
(0.5%)
87.9%
2.7%
11.1x
11.1x
Gorman-Rupp Co.
15.6%
24.7%
$741
$28.69
0.3%
(8.0%)
72.9%
NM
10.9x
9.9x
ESCO Technologies I nc.
15.6%
39.3%
$1,003
$37.60
(2.2%)
7.6%
94.6%
7.8%
12.2x
10.8x
I TT Corporation
15.2%
32.6%
$3,115
$40.83
2.7%
(6.7%)
82.6%
2.9%
7.7x
7.5x
Franklin Electric Co., I nc.
15.2%
32.9%
$1,955
$38.41
(0.2%)
(7.6%)
92.0%
0.0%
12.3x
11.5x
Colfax Corporation
13.8%
32.2%
$7,424
$48.33
0.8%
(32.7%)
64.1%
0.9%
11.6x
11.9x
Sulzer, Ltd.
11.7%
31.4%
$3,030
$112.76
1.9%
(25.4%)
77.3%
2.4%
8.0x
7.9x
7.9%
28.9%
$4,372
$83.60
(1.0%)
(16.3%)
75.0%
1.1%
11.7x
8.5x
Median
16.3%
35.3%
(0.7%)
(7.6%)
86.8%
1.7%
11.9x
11.5x
Mean
17.3%
38.5%
(0.8%)
(8.9%)
83.7%
2.3%
11.7x
11.0x
The Weir Group PLC
18.0%
33.1%
$7,256
$27.97
6.7%
(35.0%)
65.7%
1.0%
10.8x
11.7x
Curtiss-Wright Corporation
17.9%
34.6%
$4,068
$74.47
2.8%
17.1%
96.0%
3.0%
10.1x
9.4x
Cameron I nternational Corporation
15.8%
28.1%
$11,946
$49.78
13.2%
(21.7%)
66.5%
1.2%
7.3x
9.0x
Mueller Water Products, I nc.
15.3%
29.6%
$2,071
$10.05
3.9%
6.2%
95.4%
1.3%
11.4x
10.0x
Crane Co.
14.9%
34.9%
$4,064
$61.21
(3.7%)
(13.8%)
79.5%
2.3%
9.3x
8.2x
Parker-Hannifin Corporation
14.6%
24.0%
$18,313
$121.47
1.6%
(3.1%)
91.1%
3.1%
9.4x
8.8x
Aalberts I ndustries NV
14.6%
60.5%
$4,165
$30.59
(2.0%)
(9.4%)
93.1%
NM
10.7x
10.2x
Watts Water Technologies, I nc.
13.0%
35.8%
$2,178
$54.42
(0.9%)
(7.1%)
82.7%
1.5%
11.1x
10.6x
I ndutrade AB
13.0%
33.7%
$2,167
$47.64
9.0%
4.5%
97.5%
1.1%
13.4x
12.8x
CI RCOR I nternational, I nc.
12.6%
31.5%
$901
$57.02
3.3%
(20.9%)
68.6%
0.9%
8.5x
10.0x
8.0%
13.6%
$2,011
$36.67
3.4%
23.1%
98.6%
NM
10.7x
NA
Median
14.6%
33.1%
3.3%
(7.1%)
91.1%
1.3%
10.7x
10.0x
Mean
14.3%
32.7%
3.4%
(5.5%)
85.0%
1.7%
10.2x
10.1x
Overall Median
15.6%
34.8%
0.1%
(7.3%)
86.8%
1.6%
11.1x
10.6x
Overall Mean
16.2%
36.2%
0.9%
(7.5%)
84.2%
2.1%
11.2x
10.7x
SPX Corporation
Valves and Fittings
Mueller I ndustries I nc.
PAGE | 13
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
PUBLIC COMPARABLES PROCESS / MOTION CONTROL As of April 23, 2015 ($ in Millions, except per share amounts) Stock Performance LTM Margins EBITDA
Gross
TEV
Current
1-Month
1-Year
% of
R&D / Sales
Price
Change
Change
LTM High
LTM
TEV / EBITDA LTM
2015E
Motion and Drives AMETEK I nc.
25.8%
35.4%
$13,821
$51.71
(2.6%)
(0.6%)
94.9%
5.2%
13.3x
12.5x
Danaher Corp.
22.8%
52.7%
$60,093
$84.22
(3.2%)
15.6%
95.6%
6.6%
13.2x
12.6x
Rockw ell Automation I nc.
20.4%
42.0%
$14,713
$112.31
(1.9%)
(11.6%)
87.4%
4.4%
10.9x
10.2x
Rexnord Corporation
17.6%
36.1%
$4,236
$26.31
0.6%
(5.4%)
87.8%
1.9%
11.4x
9.8x
Nidec Corporation
15.8%
23.6%
$20,091
$69.04
5.1%
19.6%
96.9%
4.4%
15.5x
12.6x
Schneider Electric SE
14.9%
37.7%
$48,684
$75.02
(3.3%)
(17.5%)
92.5%
2.3%
10.8x
10.5x
ABB Ltd.
13.8%
28.2%
$50,534
$21.81
4.5%
(15.3%)
89.3%
3.8%
9.2x
9.3x
Siemens Aktiengesellschaft
10.9%
28.8%
$101,711
$106.57
(0.7%)
(21.0%)
93.0%
5.7%
10.6x
9.9x
Yaskaw a Electric Corp.
10.5%
31.2%
$4,105
$14.53
(1.4%)
11.1%
94.5%
3.6%
11.9x
10.1x
Median
15.8%
35.4%
(1.4%)
(5.4%)
93.0%
4.4%
11.4x
10.2x
Mean
16.9%
35.1%
(0.3%)
(2.8%)
92.4%
4.2%
11.9x
10.8x
Fanuc Corporation
43.1%
51.6%
$34,559
$216.20
(6.0%)
18.8%
91.8%
2.8%
14.8x
13.9x
Rockw ell Automation I nc.
20.4%
42.0%
$14,713
$112.31
(1.9%)
(11.6%)
87.4%
4.4%
10.9x
10.2x
ABB Ltd.
13.8%
28.2%
$50,534
$21.81
4.5%
(15.3%)
89.3%
3.8%
9.2x
9.3x
FARO Technologies I nc.
13.1%
55.3%
$907
$62.23
2.4%
26.6%
94.8%
8.0%
20.3x
16.5x
Metso Corporation
12.4%
30.0%
$5,051
$29.52
(1.5%)
(26.7%)
85.7%
1.7%
9.2x
9.7x
ATS Automation Tooling Systems I nc.
12.3%
26.8%
$1,200
$11.13
5.6%
(16.4%)
82.3%
0.5%
13.4x
9.8x
Krones AG
9.1%
100.0%
$3,181
$107.75
9.3%
17.5%
96.7%
3.6%
9.7x
9.9x
KUKA Aktiengesellschaft
8.7%
25.1%
$2,570
$73.11
(6.2%)
48.6%
89.2%
3.7%
11.6x
11.0x
Mikron Holding AG
3.1%
57.9%
$86
$6.87
10.7%
(13.3%)
66.2%
2.5%
11.1x
8.7x
Median
12.4%
42.0%
2.4%
(11.6%)
89.2%
3.6%
11.1x
9.9x
Mean
15.1%
46.3%
1.9%
3.1%
87.0%
3.4%
12.2x
11.0x
Pentair plc
16.9%
35.0%
$14,326
$63.59
(1.2%)
(20.1%)
78.9%
1.7%
12.0x
11.5x
CTS Corporation
16.6%
32.6%
$519
$17.34
(2.4%)
(12.1%)
85.0%
5.6%
7.7x
8.1x
Eaton Corporation plc
15.9%
31.2%
$40,381
$69.11
2.3%
(6.4%)
86.4%
2.9%
11.3x
10.9x
Parker-Hannifin Corporation
14.6%
24.0%
$18,313
$121.47
1.6%
(3.1%)
91.1%
3.1%
9.4x
8.8x
Moog I nc.
13.4%
29.7%
$3,579
$71.44
(4.4%)
13.7%
90.2%
5.1%
10.1x
9.5x
Altra I ndustrial Motion Corp.
13.3%
30.4%
$952
$28.14
4.3%
(17.4%)
73.9%
1.9%
8.7x
8.8x
Median
15.3%
30.8%
0.2%
(9.2%)
85.7%
3.0%
9.8x
9.1x
Mean
15.1%
30.5%
0.0%
(7.6%)
84.2%
3.4%
9.9x
9.6x
Cognex Corporation
32.1%
75.1%
$4,196
$50.08
0.9%
51.3%
95.4%
12.3%
26.9x
25.8x
AMETEK I nc.
25.8%
35.4%
$13,821
$51.71
(2.6%)
(0.6%)
94.9%
5.2%
13.3x
12.5x
I sra Vision AG.
20.5%
55.3%
$306
$62.84
(3.6%)
(10.8%)
87.4%
13.2%
11.9x
8.3x
MKS I nstruments, I nc.
20.3%
43.3%
$1,315
$32.89
(9.0%)
15.4%
86.9%
8.1%
8.3x
7.3x
Augusta Technologie AG
18.5%
49.2%
$222
$35.16
1.4%
(1.7%)
99.1%
9.5%
7.6x
NA
Basler AG
17.5%
51.8%
$183
$53.97
3.6%
8.2%
89.4%
11.1%
10.9x
9.6x
Teledyne Technologies I nc.
16.4%
38.1%
$4,391
$107.27
4.5%
12.3%
97.4%
17.9%
11.2x
10.6x
National I nstruments Corporation
16.3%
74.5%
$3,659
$32.23
(1.9%)
16.9%
96.0%
18.2%
18.1x
12.7x
AB SKF
13.8%
25.0%
$13,203
$23.93
(5.8%)
(2.3%)
89.3%
3.1%
11.2x
9.4x
Median
18.5%
49.2%
(1.9%)
8.2%
94.9%
11.1%
11.2x
10.1x
Mean
20.1%
49.7%
(1.4%)
9.8%
92.9%
11.0%
13.3x
12.0x
Overall Median
15.9%
35.4%
(1.2%)
(2.3%)
89.4%
4.4%
11.2x
10.0x
Overall Mean
17.0%
41.3%
0.0%
1.4%
89.6%
5.7%
12.0x
10.9x
Intelligent Automation
Actuators and Positioners
Condition Monitoring
PAGE | 14
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
PUBLIC COMPARABLES TEST SERVICES As of April 23, 2015 ($ in Millions, except per share amounts) Stock Performance LTM Margins EBITDA
Gross
TEV
Current
1-Month
1-Year
% of
Price
Change
Change
LTM High
TEV / EBITDA LTM
2015E
Testing, Inspection, and Certification SGS SA
20.7%
44.7%
$15,210
$1,926.89
(0.2%)
(21.0%)
81.3%
12.4x
12.3x
Bureau Veritas SA
19.5%
23.3%
$11,808
$22.41
3.7%
(26.8%)
89.9%
12.0x
12.2x
ALS Limited
18.9%
84.4%
$2,103
$3.62
(7.6%)
(47.5%)
50.2%
8.3x
8.7x
SAI Global Limited
18.0%
32.1%
$818
$3.07
(2.1%)
(22.9%)
75.3%
10.4x
8.4x
I ntertek Group plc
17.5%
56.0%
$7,275
$39.13
2.9%
(20.3%)
84.2%
12.8x
11.9x
Eurofins Scientific SA
17.5%
17.8%
$4,760
$279.08
2.1%
0.0%
95.0%
16.0x
14.1x
Applus Serv ices, S.A.
10.2%
33.4%
$2,226
$11.53
4.4%
NA
61.1%
11.2x
9.8x
Mistras Group, I nc.
8.9%
28.7%
$657
$18.26
1.7%
(24.0%)
71.7%
10.3x
8.3x
Furmanite Corporation
6.4%
24.9%
$324
$7.77
1.8%
(20.6%)
64.8%
9.6x
8.0x
Median
17.5%
32.1%
1.8%
(21.9%)
75.3%
11.2x
9.8x
Mean
15.3%
38.3%
0.7%
(22.9%)
74.8%
11.4x
10.4x
Abengoa SA
18.3%
43.2%
$12,172
$3.72
3.5%
(33.3%)
67.1%
7.5x
7.8x
Fomento de Construcciones y Contratas, S.A.
11.1%
64.9%
$8,439
$11.85
3.7%
(44.4%)
59.4%
9.8x
9.2x
Tetra Tech I nc.
8.1%
15.3%
$1,629
$24.73
1.1%
(12.7%)
85.0%
11.1x
7.7x
ARCADI S NV
7.9%
19.4%
$3,252
$32.55
3.5%
(10.9%)
96.3%
12.8x
10.5x
WSP Global I nc.
7.6%
20.1%
$3,672
$35.29
9.8%
4.4%
97.8%
19.2x
10.8x
Amec Foster Wheeler plc
7.6%
13.0%
$6,702
$14.04
0.4%
(29.7%)
73.9%
14.2x
9.5x
Jacobs Engineering Group I nc.
6.2%
16.7%
$6,205
$47.46
7.9%
(25.5%)
73.0%
7.8x
7.5x
7.9%
19.4%
3.5%
(25.5%)
73.9%
11.1x
9.2x
Engineering and Consulting
Median
9.5%
27.5%
4.3%
(21.7%)
78.9%
11.8x
9.0x
Overall Median
Mean
10.6%
26.8%
2.5%
(22.9%)
74.6%
11.1x
9.3x
Overall Mean
12.8%
33.6%
2.3%
(22.3%)
76.6%
11.6x
9.8x
PAGE | 15
TEST, MEASUREMENT, AND CONTROL INDUSTRY UPDATE │ SPRING 2015
HARRIS WILLIAMS & CO. SOURCES Automation World
Manufacturing Business Technology
BCG
Markets & Markets
Bureau of Labor Statistics
Mergermarket
Business Insider
PitchBook
Capital IQ
PNC Economic Outlook
Dealogic
RIA
Eurostat
S&P Leveraged Commentary & Data
Flow Control Magazine
Thomson Reuters
Food Magazine
U.S. Census Bureau
IFR
The Wall Street Journal
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PAGE | 16