October 2016
THE GLOBAL BUSINESS SERVICES INDUSTRY Introducing Global M&A Partners Global M&A Partners is one of the world’s leading independent M&A advisory firms. Specialized in the middle market, we provide support and opportunities locally and internationally for clients buying or selling companies as well as financings, corporate restructurings and other corporate finance transactions. In the last 5 years, we have closed more than 1,500 transactions with an aggregate deal value of more than €42 billion. The Global M&A Partners team has accumulated extensive experience in cross border deals. The main success factors are: local expert knowledge of international markets, discrete and efficient execution and longstanding track record.
Global Sector Expertise Global M&A Partners has created a growing number of specialised sector teams. These groups meet regularly and exchange intelligence and deal ideas constantly. Most importantly, they co-operate to create seamless cross-border teams on joint projects. This well established system enables us to deliver a unique level of advice and support to our clients. Some of this system’s advantages include: Multinational teams for seamless cross-border co-operation on specific M&A projects. Centralised industry-relevant knowledge on: Public and privileged information on company valuations Buyers‘ and sellers‘ strategies. Access to decision makers at groups and investment houses around the world.
The Global M&A Partners Business Services Insider In this report, the Global M&A Partners Knowledge Center together with the Business Services team reviews valuations and recent valuation trends for various sub-sectors of the global business services industry. The global Business Services landscape remains highly fragmented and consolidation is expected to continue in almost all sub-segments. Whether regional, national and international, many players need to continue to expand services offering, customer base and geographic footprint. “Hot” sectors: In Facility Management, we see a continued rise in requests of acquirers interested in Hard FM such as energy management and industrial maintenance; In HR, large players are interested in reinforcing their technology platforms; We see an increase of transactions in special waste as well as in Environmental Engineering and Consulting the US For more information, olease don’t hesitate contacting your local Business Services Team member and visit the Business Services sector area of the Global M&A Partners website at www.globalma.com.
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Table of Contents The Global M&A Partners Business Services Team Section I:
Executive Summary
Section II:
BPO Companies
Section III:
Facilities Management Companies
Section IV:
Security Services Companies
Section V:
Contract Catering Companies
Section VI:
Human Resources Services Companies
Section VII:
Waste Management Services Companies
Section VIII:
Consulting Services Companies (Excluding IT)
APPENDIX:
Sampling of Business Services Deals
Veronique Zeid-Maurel Managing Director Global M&A Partners Business Services team leader
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THE GLOBAL M&A PARTNERS BUSINESS SERVICES TEAM
The Business Services team understands the challenges of service delivery, typical client demands and the market dynamics in the sector, and has a clear appreciation of how these factors can drive value and the interest of purchasers and investors in your business. In the past ten years we have closed more than 250 transactions of which over 25 deals with an aggregate value of more than a billion€ in 2015. The team is well positioned to advise you on the best ways of creating or unlocking maximum value, and on the best industrial and cultural fit. Areas of Expertise: • Business Process Outsourcing • Catering . Consultancy Services • Facilities Management • Mechanical & Electrical Maintenance • Recruitment, Contract Staffing & Other HR Services . Security • Waste Management & Recycling Please visit the Business Services sector area of the Global M&A Partners website at www.globalma.com for more information.
Corporate Finance Experts from Your World™
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The
Global M&A
Business Services Team
Business Services Team Leader
FRANCE Véronique Zeid-Maurel Managing Director
Véronique Zeid-Maurel is Global M&A Business Services team leader with over 20 years experience as M&A deal maker specializing in cross border transactions. Selection of cross border deals closed in Business Services: Acquisition by MBO team of POLYMARK (France/UK, sale & installation of laundry equipment); sale of French subsidiary HONEYWELL Sécurité & Télésurveillance to CERBERUS SIEMENS; sale of TEAMWORKS (IT Services, Austria) to ALTRAN; sale of KNIGHTS SERVICES (cleaning services, Ireland) to PENAUILLE POLYSERVICES; sale of ORION ENGINEERING (high added value engineering advisory services, Netherlands) to ALTEN. Education: Sorbonne Paris IV, Foreign Languages Applied to Economics
Business Services Team Members Verónica Klammer joined the Buenos Aires based company in March 2006. Previously, Ms. Klammer was a banker at Citigroup/Citibank N.A., where she worked for five years, participating in transactions in the areas of debt restructurings, M&A advisory, private and multilateral debt structuring, syndicated loans and acquisition finance such as the purchase of Hylsamex by Grupo Techint. Prior to joining Citibank, Ms. Klammer worked at Accenture for two years as a financial analyst in the Business Consulting Unit
ARGENTINA Education: Verónica Klammer Certified Public En Bachelor Degree Vice President
Accountant, Universidad Católica Argentina; in Business Administration, Universidad Católica Argentina (Valedictorian 1998); Postgraduate Degree in Marketing, Universidad de San Andrés (2004).
Rosanna has a finance background and began her career working for TNT in Australia, Paris and then globally. She has worked for a number of multinational corporations, gaining extensive international finance and project management experience, before co-founding Australian based firm MergeCo in Sydney in 2005.
AUSTRALIA Rosanna Hawkins
Rosanna has undertaken international strategic engagements ranging from sourcing to outsourcing and is the operational and project management powerhouse of MergeCo.
Senior Advisor
Quintin Althann is a consultant at the Wien based company. He has significant experience in balance sheet and market analysis as well as in research and consulting activities. He has also assisted numerous acquisitions and other transactions.
AUSTRIA Quintin Althann Consultant
Quintin is an active member of the Global M&A Business Services and CEE Teams. Prior to joining the company, Quintin worked for Civitas International Management Consultants and the Swiss Private Bank Ehinger & Armand von Ernst. Education MBA, Vienna University of Technology
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The
Global M&A
Business Services Team
Benoit Roose has over 25 years of experience advising on international acquisitions and divestitures. Previous experience in Belgium, Germany, France and North Africa in reorganizing commercial and industrial groups, and in launching new ventures. Founder of the Brussels based company and of Global M&A.
BELGIUM Benoit Roose
Education: Master of Economics, University of Bonn and Cologne, Germany; Post-Graduate in Business Administration, Solvay Brussels School of Economics and Management, Belgium
Managing Partner
Paulo has twenty years of professional experience and twelve years of consulting advisory. Since the establishment of Condere in 2006 he has originated and conducted more than 60 business strategy and M&A projects and transactions for several business segments. Paulo has held senior executive and management positions at Grupo RBS, JP Morgan Chase, Banco Patrimônio/Salomon Smith Barney and Grupo Amil. At each of these organizations he was responsible for structuring business development and strategy.
BRAZIL Paulo Cury Managing Partner
Has acquired in-depth experience, and now focuses his activities on structuring and executing business strategies and M&A projects. Education: MBA Fuqua Business School
Colin Walker is a Managing Director of Toronto-based Crosbie & Company Inc. After beginning his career at UBS where he focused on lending and debt-capital markets, he has played a leadership role at Crosbie for over 20 years, both as an investment banker and as Investment Advisor and Portfolio Manager for First Ontario Fund. He has also served as a Director of a number of private and public companies, and has been a Director of the Toronto Chapter of the Turnaround Management Association.
CANADA Colin Walker Managing Director
Business Services experience includes key roles in transactions for clients in financial services, asset management, engineering, construction trade services, and software enabled service businesses. Education: Bachelor of Chemical Engineering & Management degree – McMaster University; MBA at the Michael G. DeGroote School of Business
Luis David has almost 20 years of experience in the banking and financial sectors in the Central American region. He is currently on the Board of Directors of GE-BAC (Banco de America Central) and Credomatic. He has been responsible for closing several deals in the Central American Region, Mexico, USA and Europe including leverage buyouts, management buyouts, mergers, acquisitions, debt restructuring, strategic alliances and private equity placements. Education: Masters Degree in Banking and Finance, Giordano Dell’amore CENTRAL AMERICA Institute in Milan, Italy; B.S. in Business Administration, Universidad Francisco Marroquín, Guatemala
Luis David
Managing Director
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APPENDIX: The
Global M&A
Business Services Team
Carlos Taborga Ibargüen has over 20 years of experience in top executive positions and 10 years experience in restructuring and turnarounds. He joined the Santiago based firm in January 2007. Previously, he was CEO of Matreq (Caterpillar Dealership) in Bolivia, General Manager of Ferrocarriles Andinos in Bolivia, General Manager of Morgan Impresores in Chile, and former Undersecretary of Finance in Bolivia. He is a Board member of Empresa Electrica Valle Hermoso.
CHILE Carlos Taborga Ibargüen
Education: BS and MBA, Babson College, USA
Business Director
Prior to joining the Denmark based company, Peter Søgaard was a Director at Booz.Allen & Hamilton Corporate Finance, Director at PricewaterhouseCoopers Financial Advisory Services, Area Manager for Industrialisation Fund for Developing Countries and Vice President of BG Bank Investment Bank. Education: Master of International Economics and Management, Copenhagen Business School; Bachelor of Law, University of Aarhus
DENMARK Peter Søgaard Managing Partner
Antti Kemppainen is a Partner at the Helsinki based company. Previously, he worked at Mandatum & Co since 1998, most recently working as an Associate Director from 2000-2003. He has eleven years of experience in investment banking.
FINLAND Antti Kemppainen
Education: M.Sc. Economics; MBA
Partner
Alexander joined the Düsseldorf based firm in 2008. He has gained expert knowledge in the industries of automotive, healthcare, construction materials, mechanical engineering, IT & telecommunications, leisure products and services. Education: Masters degree in Business Administration (finance & investment, controlling and corporate management), Heinrich Heine University (Düsseldorf, Germany)
GERMANY Alexander Rupp Transaction Manager
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APPENDIX: The Global M&A Business Services Team Prior to founding Budapest firm in 2000, Zoltán Siklósi was a partner of MAVA Investment Management, earlier, Zoltán was managing director of Hypo-Securities Hungary. He also worked on corporate finance deals with MeesPierson EurAmerica and Nomura Investment Bank. He possesses extensive transaction experience in structuring equity placements, strategic financial advisory and successful execution of sell-side and buy-side assignments. As a partner of Invescom, he participated in the management and execution of all major mandates of the company.
HUNGARY Zoltan Siklosi Managing Director
Education: MBA degree from Madrid Business School and an M. Sc. degree in Electrical Engineering from the Budapest Technical University.
Deepak has over 13 years of experience in the Corporate Finance space and his last assignment was with Lazard India where he worked for over 6 years as Director in the advisory business with a focus on M&As. Prior to Lazard, Ladha worked with HSBC in their corporate finance team for 5 years and with Rabo India for 2 years. He has been involved in various strategic M&A transactions with clients across borders in key sectors viz Pharma & Chemicals, FIG and FMCG.
INDIA Deepak Ladha
Education: Deepak is a Fellow member of The Institute of Chartered Accounts of India (ICAI).
Managing Director
ISRAEL Yair Ephrati Managing Director
The Tel Aviv based firm is led by Yair Ephrati. Mr. Ephrati has been involved in numerous Israeli related transactions in the past years including a Leveraged Buyout of an electronic equipment (rugged computers) importer and manufacturer, acquisition of semiconductor trading company, financing of medical device companies, acquisition search for services company in Asia and strategic partnership for a software company in Bulgaria. Previously, Mr. Ephrati was with McKinsey & Co. in London and New York for three years. At McKinsey, he led teams advising Fortune 100 companies on new market development, acquisitions and strategy. Education: B.A., Economics and Business, Tel Aviv University; M.B.A., University of Michigan
Stefano has been with the Milan based firm since 2010. He previosly worked for Banca Esperia in Hedge Funds and for NPL Management S.p.A. in the non performing loans management. During this experience he structured the saucerisation and the financial management of the loans in portfolio. Education: Degree in Economics
ITALY Stefano Oddo
University, Milan
of Financial Markets, Bocconi
.
Transaction Manager
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APPENDIX: The Global M&A Business Services Team Tamotsu Majima, Director, Advisory Group at the Tokyo and Osaka based group, has been engaged in cross border transactions for more than ten years. Before joining the group in 1998, he worked as securities analyst of Japanese corporations and was also involved in international corporate finance business for ten years at Yamaichi Securities. He is a Chartered Member of the Securities Analysts Association. Education:
JAPAN B.A., Tokyo University of Foreign Studies; M.B.A., INSEAD, Tamotsu Majima France Director Advisory Group
Kristaps Berzins has been leading several transactions, Kristaps`s specialisation includes fund raising, acquisitions and LBO transactions - covering industries of retail, wood processing, road construction, waste management, manufacturing and B2B service Education: B.Sc., Stockholm School of Economics in Riga; CFA Level III Candidate, CFA Institute.
LATVIA Kristaps Berzins Associate Director
Prior to joining the Mexico based firm in 2002, Mr. Plettner worked for 3 years as manager of Publix, S.A., a graphic design studio, and Star Technologies, S.A., a company active in the design of information systems, businesses he founded in 1996 and 1997, respectively.
MEXICO Martin Plettner Rutishauser Partner
Previously, Mr. Plettner worked as a trainee in brand management at Procter & Gamble Mexico. During the summer of 2001, Mr. Plettner worked as a consultant at The Boston Consulting Group, where he worked on the merger of two multi-national food companies, and evaluated additional acquisition projects. Education: BS in Industrial and Systems Engineering, Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM); MBA, Stanford Graduate School of Business
Caspar van de Geest joined the Zeist based firm in 2004. Caspar has over 12 years’ experience in M&A with 50 transactions at home and abroad. Education: Master Economics, Erasmus University Rotterdam
NETHERLANDS Caspar van der Geest Partner
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APPENDIX: The Global M&A Business Services Team Erik Kingsrud Treiborg has several years of experience from Corporate Finance M&A and cross border transactions. Mr. Treiborg has been involved in a number of transactions within the business services area, including IT services, facility management, and ground handling services. Prior to joining the Norway office Mr. Treiborg worked a number of years in the offshore industry with business and project management within the international oil and gas field development industry.
NORWAY Erik Kingsrud Treiborg
Education: Ba Finance from the Norwegian School of Management, Oslo; M.Sc. Finance from the University of Strathclyde, Glasgow.
Partner
PERU Manuel Salazar Partner
Mr. Salazar has professional expertise in investment banking, capital markets and finance, with 20 years of experience. Mr. Salazar has been involved in numerous deals with a total value in excess of US$ 2 billion. Mr. Salazar also participated in studies on the development of the Peruvian capital market for the Ministry of Economy and Finance and CONASEV. His previous experience includes the position of General Manager of Sudamericano Brokerage House, Member of Banco Sudamericano’s Assets and Liabilities Committee, Investment Manager of Macrovalores and Investment Advisor to MAPFRE Compañía de Seguros. Education: Economist graduate, Universidad Católica del Perú; Post Graduate Studies in Finance from ESAN
At the Warsau based company, Rafal Nowakowski specializes in deal origination, transaction structuring, corporate finance and investment advisory services. Prior to becoming a co-founder and partner of HCA, Rafal was a managing director and partner at Innova Capital, a leading Central European private equity firm. In the Business Services sector, Rafal was involved in several transactions including investments, sell and buy sides of companies dealing with IT outsourcing, IT consulting, facility management, electronic data storage, cleaning, security and mass print and mail outsourcing.
POLAND Education: Rafal Nowakowski MSc in Economics from Poznań Academy of Economics; Managing Partner
certificate in Corporate Finance & European Law (ERASMUS); INSEAD alumnus; Securities Representative (SFA) and certified accountant.
Prior to joining the Stockholm based firm, Anders Jonsson held several positions both in the IT industry and as a consultant to Private Equity funds. Anders was the owner and CEO of Oscar Dellert AB, a distributor of IT products, Executive Director Strategic Marketing at ISA International, and CEO of Lap Power Holding. Anders has also been a board member of Information Highway, and is the current Chairman of Academic Work (Recruitment).
SWEDEN Anders Jonsson Partner
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APPENDIX: The Global M&A Business Services Team
Frederic de Boer is a founding partner of the Zurich based firm. Over 25 years of experience in M&A, turn-arounds (planning and execution and complex restructurings). Education: MBA Insead, lic.oec. HSG
SWITZERLAND Frederic de Boer Partner
In 1995, Esin began her career in equity research and worked for various brokerage houses including Finans Yatırım and Caspian Securities. Since 1999, after joining Raymond James Securities as a Director, Esin has concentrated on corporate finance. At the Istanbul based firm she is responsible for business development, origination and execution of corporate finance deals. Education: Industrial Engineering degree, Middle East Technical University, Ankara; M.B.A. IAL Consortium of TURKEY International Business Studies, Italy and Clemson Esin Özçelik Ünsal University, U.S.A. Director
David Browne heads up the Corporate Finance Team of the UK based Cooper Parry and has 25 years dedicated corporate finance experience. David’s lead advisory experience is wide ranging including company sales, acquisitions, MBO’s, MBI’s and private equity assignments – many of these transactions are cross border. David has also worked as a Commercial Director and shareholder of a private equity backed global business which achieved a successful exit. David takes pride in delivering practical and commercial
UNITED KINGDOM advice in a clear and frank manner. David Browne Partner
Business services deal experience includes the sale of recruitment, cleaning, security and facilities management companies.
Phil has over 16 years’ corporate finance and private equity experience. He joined Cooper Parry Corporate Finance in May 2015 from ASX-listed Centrepoint Alliance in Sydney where he was Head of Corporate Development. He was previously Director with PwC Corporate Finance in London with whom he spent 12 years and was a founder member of their Business Services sector team. He was also a Director with a UK mid-market private equity house for over 6 years where he focused on investing in the Business Services sector. Education
UNITED KINGDOM Phil Hinson Director
Phil holds a BSc (Hons) in Biology from Nottingham University and a Post-graduate Diploma in Law and Legal Practice Certificate from Nottingham Law School. He is a Fellow of the Institute of Chartered Accountants in England & Wales
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APPENDIX: The Global M&A Business Services Team
USA Effram E.Kaplan Managing Director & Principal
USA Clifford Sladnick Managing Director
USA John O’Dore Managing Director
Effram Kaplan leads the firm’s investment banking activities in the Business Services sector, with sub-sector expertise in Environmental Services. He has significant experience advising clients on strategic and financial alternatives, sale and acquisition transactions, recap transactions and other financial advisory assignments. Effram has spent over 15 years focused on various segments within the business services industry. Prior to joining Brown Gibbons Lang & Company, Effram was an Associate at Key Capital Markets’ and prior to, held management consulting positions at Arthur Andersen and Cap Gemini. Education B.S., Miami University; M.B.A, The University of Chicago Graduate School of Business
Clifford Sladnick leads the firm’s investment banking activities in the Human Capital Management Outsourcing sector. Mr. Sladnick’s distinguished 37-year career includes senior executive positions with leading public and private companies in the HRO space. He brings extensive experience in mergers and acquisitions, corporate finance, corporate development, human resources, legal, investor relations and strategic planning; having completed over $3 billion of corporate acquisitions and divestitures in the business services and outsourcing, financial services, and consumer products industries Education B.S., summa cum laude, University of Illinois; J.D., magna cum laude, University of Illinois; M.M, Northwestern University Kellogg School of Management
John O'Dore is a Managing Director at the Seattle based company. John has more than 20 years of investment banking experience with Meridian Capital and global investment banking firms such as Credit Suisse First Boston, Merrill Lynch and Bank of America. John has closed over 100 financings, divestitures, and merger & acquisition transactions in multiple industries including branded consumer, ecommerce, food and beverage, manufacturing, aerospace, distribution and logistics, business services, technology, and real estate. John brings both a local and global perspective to transactions having lived in Asia for over 20 years in China, Hong Kong, Taiwan, and Singapore. Prior to joining Meridian Capital in early 2011, John most recently spent over 13 years at Credit Suisse First Boston where he worked in the Investment Banking Division as Head of Credit Risk Management for North Asia Education B.S., Miami University; M.B.A, The University of Chicago Graduate School of Business
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Section I: Executive Summary Overview In this report, the Global M&A Partners Knowledge Centre together with the Global M&A Partners Business Services Industry team reviews valuations and recent valuation trends for various sub-sectors of the global business services industry. The seven sub-sectors that we have analyzed for this report include: business process outsourcing (BPO), facilities management, security services, waste management, human resources services, consulting and contract catering companies. For the purpose of this paper we have either excluded smaller or larger sub-segments of the industry, where the data samples are either not as statistically significant or are too numerous to manageably analyze. Our analysis uses the seven aforementioned sub-segments merely as a means to categorize the industry in an easily understandable manner. In the report, we examine valuation statistics derived from the most common valuation techniques used in the Investment Banking and Private Equity industries, namely comparable public company analysis and comparable transactions analysis. In our comparable company analysis we study the valuation of the industry and its sub-sectors based on operating and financial measurements (e.g., EV/EBITDA or EV/EBIT) of groups of public companies that have similar characteristics (for example, a peer or sub-sector group). NB: comparable listed EV/EBITDA and EV/EBIT are calculated based on EV at September 30, 2016 with EBITDA including provisions for inventories and customers and EBIT excluding exceptional Items. Our comparable transaction valuation analysis derives an approximation of value from prices at which entire companies (or significant interests in companies) have been sold by comparing the valuation parameters of the M&A transactions. The results of our analyses are the following: • BPO Companies: The median EV/EBIT and EV/EBITDA for comparable public BPO companies are 13.2x and 12.1x, respectively. The median EV/EBITDA of comparable M&A transactions is 6.9x. • Facilities Management Companies: The median EV/EBIT and EV/EBITDA are 16.9x and 9.8x for comparable public facilities management companies, and are 15.4 and 12.7x for comparable public real estate services companies. The median EV/EBITDA of comparable M&A transactions is 9.8x. • Security Services Companies: The median EV/EBIT and EV/EBITDA for comparable public companies are 16.1x and 9.1x, respectively. The median EV/EBITDA of comparable M&A transactions is 10.9x. • Contract Catering Companies: The median EV/EBIT and EV/EBITDA for comparable public companies are 15.7x and 12.1x, respectively. The median EV/EBITDA of comparable M&A transactions is 7.7x. • Human Resources Services Companies: The median EV/EBIT and EV/EBITDA for comparable public companies are 9.0x and 6.4x, respectively. The median EV/EBITDA of comparable M&A transactions is 9.9x. • Waste Management Companies: The median EV/EBIT and EV/EBITDA are 16.5x and 9.0x for comparable public waste management companies, and are 13.8x and 7.4x for comparable public recycling companies. The median EV/EBITDA of comparable M&A transactions is 6.4x. • Consulting Services Companies – excluding IT: The median EV/EBIT and EV/EBITDA for comparable public companies are 13.9x and 11.2x, respectively. The median EV/EBITDA of comparable M&A transactions is 8.6x.
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Section II: BPO Companies Comparable Public Company Valuations The Knowledge Centre’s BPO comparable public company analysis involves 12 publicly traded BPO companies (IT and IT-enabled BPO not included) providing several different outsourced service offerings (Exhibits 1 and 2). The median EBIT and EBITDA margins are 8.5 % and 11.2%, respectively. The median EV/EBIT and EV/EBITDA are 13.2x and 12.1x, respectively. Exhibit 1 BPO Comparable Company Profit Trends (€ in millions) EBITDA / Sales
BPO Services Company Name
Country Last Year
Sales (Last)
%EBITDA (Last)
%EBIT (Last)
Market Enterprise cap. Value (Current) (Current)
LTM
2015
2014
EBIT / Sales
2013
2012
LTM
2015
2014
2013
2012
Akka Technologies
FR
31/12/15
1 002
8%
6%
632
na
7,9%
7,7%
8,0%
8,4%
9,0%
6,4%
6,1%
6,2%
6,6%
7,5%
Alten SA
FR
31/12/15
1 541
11%
10%
2 079
2 140
11,1%
10,5%
10,3%
10,2%
10,7%
10,5%
9,8%
9,7%
9,4%
10,1%
Altran Technologies S.A.
FR
31/12/15
1 945
10%
9%
2 338
2 557
10,2%
10,2%
10,3%
9,6%
9,5%
9,8%
9,3%
9,1%
8,5%
8,5%
Capita plc
UK
31/12/15
5 524
15%
10%
7 398
10 523
15,2%
15,0%
14,8%
14,5%
16,0%
10,2%
9,7%
9,6%
9,4%
11,0%
CCA International
FR
31/12/15
127
6%
4%
37
53
6,8%
6,2%
6,0%
5,6%
1,9%
4,8%
4,4%
3,9%
3,2%
-0,6%
Convergys Corporation
US
31/12/15
2 645
13%
7%
2 612
2 661
13,3%
12,9%
12,5%
11,6%
11,3%
7,8%
7,2%
6,6%
7,2%
6,9%
Datamatics Global Services Limited
IN
31/03/16
110
8%
6%
63
70
9,0%
8,3%
10,5%
12,7%
9,6%
6,6%
5,8%
8,0%
10,5%
7,4%
Fiserv, Inc.
US
31/12/15
4 710
31%
25%
21 184
25 031
31,1%
30,5%
29,7%
28,9%
29,1%
25,7%
25,0%
23,9%
22,7%
23,6%
StarTek, Inc.
US
31/12/15
253
2%
-3%
81
110
3,0%
1,6%
3,8%
3,5%
3,2%
-1,4%
-3,1%
-0,4%
-1,7%
-3,4%
Sykes Enterprises, Incorporated
US
31/12/15
1 153
12%
7%
1 105
1 103
11,3%
11,8%
10,4%
9,0%
9,5%
6,8%
7,3%
5,8%
4,4%
4,9%
Teleperformance SE
FR
31/12/15
3 398
13%
9%
5 334
5 674
13,6%
13,4%
12,7%
12,2%
11,7%
9,2%
9,1%
8,7%
8,4%
7,9%
WNS (Holdings) Ltd.
IN
31/03/16
504
18%
11%
1 370
1 238
17,2%
17,6%
19,1%
19,6%
16,7%
10,9%
11,0%
12,3%
12,0%
7,8%
12,5% 11,2%
12,1% 11,2%
12,3% 10,4%
12,2% 10,9%
11,5% 10,1%
8,9% 8,5%
8,5% 8,2%
8,6% 8,3%
8,4% 8,5%
7,6% 7,7%
Mean Median
Source: Capital IQ (30/09/2016)
Comparable Public Company Valuations (Con’t) Exhibit 2 BPO Public Company Valuation Trends (€ in millions) EV/Net Sales
BPO Services Company Name
Country Last Year
LTM
EV/EBITDA
2015 2014 2013 2012
LTM
EV/EBIT
2015 2014 2013 2012
LTM
PER
2015 2014 2013 2012
LTM
2015 2014 2013 2012
Akka Technologies
FR
31/12/15
na
0,7x
0,7x
0,5x
0,5x
na
8,9x
8,3x
6,2x
5,9x
na
11,2x
10,8x
7,9x
7,0x
18,8x
20,1x
20,4x
12,7x
8,5x
Alten SA
FR
31/12/15
1,3x
1,2x
1,0x
0,9x
0,8x
11,7x
11,0x
10,1x
9,2x
7,2x
12,4x
11,7x
10,8x
10,0x
7,7x
17,1x
16,8x
18,3x
16,4x
12,6x
Altran Technologies S.A.
FR
31/12/15
1,2x
1,2x
1,0x
0,9x
0,7x
12,1x
11,6x
9,4x
9,1x
7,0x
12,7x
12,7x
10,7x
10,2x
7,7x
20,4x
21,3x
20,2x
21,5x
12,2x
Capita plc
UK
31/12/15
1,9x
2,0x
2,2x
2,3x
2,1x
12,2x
13,1x
14,8x
15,9x
13,1x
18,2x
20,3x
22,8x
24,4x
19,0x
76,9x 130,0x 31,6x
40,2x
24,9x
CCA International
FR
31/12/15
0,3x
0,3x
0,2x
0,1x
0,1x
4,7x
5,6x
3,9x
2,4x
3,9x
6,6x
7,9x
6,0x
4,2x
na
17,1x
13,8x
8,5x
8,1x
na
Convergys Corporation
US
31/12/15
1,0x
0,9x
0,9x
0,8x
0,6x
7,6x
7,3x
6,9x
6,8x
5,5x
12,9x
13,0x
13,1x
10,9x
9,0x
16,2x
15,6x
19,2x
36,3x
17,8x
Datamatics Global Services Limited
IN
31/03/16
0,6x
0,5x
0,5x
0,5x
0,2x
7,0x
5,9x
4,6x
3,6x
2,2x
9,6x
8,4x
6,1x
4,4x
2,8x
9,0x
8,2x
8,5x
6,9x
5,4x
Fiserv, Inc.
US
31/12/15
5,1x
5,2x
4,5x
3,8x
3,5x
16,3x
17,1x
15,2x
13,1x
11,9x
19,8x
20,9x
18,8x
16,7x
14,7x
25,3x
32,9x
25,6x
22,7x
19,1x
StarTek, Inc.
US
31/12/15
0,4x
0,4x
0,5x
0,4x
0,5x
13,9x
23,9x
13,4x
12,1x
14,4x
na
na
na
na
na
na
na
na
na
na
Sykes Enterprises, Incorporated
US
31/12/15
0,9x
0,9x
0,7x
0,6x
0,5x
8,1x
7,2x
6,8x
6,6x
5,3x
13,5x
11,7x
12,2x
13,5x
10,2x
19,4x
18,4x
18,7x
23,4x
23,1x
Teleperformance SE
FR
31/12/15
1,7x
1,4x
1,5x
0,9x
0,7x
12,2x
10,2x
11,9x
7,7x
6,3x
18,0x
15,2x
17,3x
11,1x
9,3x
26,3x
21,5x
25,0x
18,3x
14,2x
WNS (Holdings) Ltd.
IN
31/03/16
2,4x
2,2x
2,5x
1,8x
2,0x
14,0x
12,7x
13,0x
9,3x
11,8x
22,1x
20,2x
20,1x
15,2x
25,1x
25,8x
23,4x
24,8x
23,8x
42,7x
1,5x 1,2x
1,4x 1,0x
1,3x 0,9x
1,1x 0,8x
1,0x 0,6x
10,9x 11,2x 12,1x 10,6x
9,9x 9,8x
8,5x 8,4x
7,9x 6,6x
14,6x 13,9x 13,5x 11,7x 11,3x 24,8x 29,3x 20,1x 20,9x 18,1x 13,2x 12,7x 12,2x 10,9x 9,1x 19,4x 20,1x 20,2x 21,5x 16,0x
Mean Median
Source: Capital IQ (30/09/2016)
13
Section II: BPO Companies Comparable M&A Transactions The median EV/EBIT and EV/EBITDA for the comparable BPO M&A transactions are 9.9x and 6.9x, respectively. Exhibit 3 BPO Comparable M&A Transactions (€ in millions except where mentioned in $) Date Dec-15
Target Company
Advantage Salary Packaging Pty Australia-based company, headquartered in Victoria, Ltd engaged in providing professional salary packaging administration service.
Country
Revenue
Smartgroup Corporation Ltd
Australia
10
Deal value Enterprise Value / (m€) Sales EBIT EBITDA 40
Ireland-based company headquartered in Ballinahown, Eurazeo SA which is a provider of multicurrency payment, credit card processing, and value added tax refund services.
FR
Nordea AB (Merchant acquiring business)
Denmark-based company that provides payments, Nets Holding A/S cards and information services, headquartered in Ballerup. USA-based company offering contact center solutions Eckoh Plc (AIM:ECK) and system integration services for customer contact and payment security applications.
DK
446
184
UK
14
5
Product Support Solutions Inc. Nov-15 Fulfillment Technologies, LLC
Singapore Post Enterprise Private Limited
Singapore
147
The Freeman Companies
US
40
Skilled Group Ltd
Australia-based staffing, maintenance and facility management service provider.
Programmed Maintenance Services Limited
Australia
Gemma Communications LP
Provides contact center services for clients in Canada and internationally.
DealNet Capital Corp. (TSXV:DLS)
Canada
CompuClearing Outsourcing Limited
South African-based provider of information technology Wisetech Global Limited products and services to the customs clearing, freight forwarding, air cargo, supply chain, and logistics related industries in South Africa.
Sitel Worldwide Corporation
USA provider of customer care outsourcing services.
Staging Connections Group Limited
Oct-15
Sep-15
Sep-15
Groupe Acticall SAS
4,0x
5,9x
585
USA-based provider of a suite of services in the areas of customer care, direct marketing, merchandise management, financial management and multichannel customer. Australia-based company engaged in providing event management services
Nov-15
Oct-15
Bidder Company
Fintrax Group Holdings, Ltd. Dec-15
Dec-15
Target Description
1 261
439
12,4x
11,1x
9,2x
7,4x
11,0x
9,1x
5,6x
4,4x
5
Australia
5
13
2,6x
FR
1 292
745
0,6x
Italy
412
142
Sep-15
Sep-15
Seat Pagine Gialle SpA (BIT:PG) Italy-based company which provides marketing services Italiaonline S.p.A. in Italy as well as voice services and call center services. BPO Management Sp. z o.o.
Poland-based company provides business process outsourcing services.
NorthStar First Health LLC
US-based company headquartered in Houston, Texas, Constellation Healthcare is a healthcare services organisation engaged in Technologies, Inc. providing outsourced revenue cycle management (RCM), practice management (PM) and group purchasing services to physicians.
US
7
10
Office & General Environmental Services Limited
India-based security and facilities management company Tenon Facility Management UK Limited
UK
46
8
SITEL Worldwide Corporation
France-based company engaged in the customer relation management
FR
Sep-15
Sep-15
Sep-15
Sep-15
Arteria Spólka Akcyjna (WSE:ARR)
Groupe Acticall S.A.
Poland
1
1,5x
6,1x
4,6x
753
14
Section II: BPO Companies Comparable M&A Transactions Exhibit 3 BPO Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Target Description
Contact Center sp. z o.o.
Polish provider customer service and sales services for Arteria Spólka Akcyjna langer and medium-sized entreprises in Poland. (WSE:ARR)
Poland
2
Capital Vision Services, LLC
US-based company engaged in providing management Caisse de Depot et services to optometry practitioners Placement du Quebec; Andell Inc. ; Altas Partners LP India-based company providing services to manage Fairfax India Holdings risks across various stages of commodity and inventory Corporation handling. UK-based company incorporated in Douglas, Isle of Paysafe Group Plc Man, is a provider of online money transfer services.
Canada
721
India
117
UK
1 111
USA-based company which provides offshore Capgemini North America, outsourcing solutions and services to large and medium- Inc. size organizations.
USA
1 048
4 186
4,0x
INDIA
7
17
2,6x
Aug-15
Aug-15
Aug-15
National Collateral Management Services Ltd. (74% Stake) Skrill Holdings Limited
Aug-15 iGATE Corporation Jul-15
Jul-15
Loylty Rewardz Management Pvt. India-based company engaged in the development and Indiaideas.com Limited Ltd. management of consumer loyalty, rewards, data intelligence, and direct marketing communication programs Columbus Data Services, LLC
US-based automatic teller machines processor, Cardtronics, Inc. providing ATM management services, network gateway access and debit card management services.
Novation Solutions Limited; DataPost (HK) Pte Limited
Singapore-based provider of data printing and mail processing services for businesses
Jing King Technology Holdings Ltd.
Imagitas, Inc.
US-based provider of integrated mail and document management systems, services and solutions
Red Ventures, LLC
Jul-15
May-15
Bidder Company
May-15 TRaC Global Limited May-15
Jun-15
May-15 Apr-15
UK-based company headquartered in Worcestershire, Element Materials that provides testing and certification services. Technology Holding Netherlands B.V. Paschoalotto Servicos Financeiros Brazil-based company providing collection and Gavea Investimentos Ltda. adjustment services on claims and other insurance related issues. MC2 Co.,Ltd. Japan-based company which offers telephone SD Entertainment Inc. marketing services (JASDAQ:4650) Payzone Ireland
Ireland-based consumer payments provider
H1 Communication AB
Sweden-based company which offers customer services in various industries, such as banking, ecommerce and consumer electronics. Provides telephone answering services.
Pharol, SGPS S.A. (ENXTLS:PHR)
Portugal-based company which provides telecommunication services in Brazil, Portugal, Africa and Asia.
Oi S.A. (BOVESPA:OIBR4)
Transcom WorldWide AB (publ) (OM:TWW)
Sweden-based company which provides customer experience services to clients in customer-intensive industries worldwide.
Altor Equity Partners
Apr-15
Apr-15
Mar-15
Carlyle Cardinal Ireland Fund, L.P. Panoster Investment AB
Country
Revenue
Deal value Enterprise Value / (m€) Sales EBIT EBITDA
Target Company
US
72
Hong Kong
16
US
106
277
2,6x
Netherlands UK
23
63
2,7x
Brazil
30
Japan
2
20,6x
17,6x
15,9x
8,2x
2,9x
Ireland
171
30
3,3x
3,8x
Sweden
10
3
8,1x
4,4x
Brazil
6 162
13 964
9,9x
4,5x
Sweden
617
45
8,5x
6,5x
2,3x
15
Section II: BPO Companies Comparable M&A Transactions Exhibit 3 BPO Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Target Description
Bidder Company
West At Home, LLC
USA-based company which provides outsourced call center solutions.
Alorica Inc.
USA
3
West Direct II, Inc.
USA-based company which operates call centers focusing on fitness equipment, personal development, electronics, house wares, collectibles, and sporting goods.
Alorica Inc.
USA
18
Physicians Practice Plus. Inc.
US-based company engaged in outsourced revenue Constellation Healthcare cycle management (RCM), practice management (PM) Technologies, Inc. and group purchasing services to physicians.
Mar-15
Mar-15
Mar-15
Mar-15
CMS Info Systems Private Limited India-based company providing cash management (57% Stake) services
9
19
2,1x
Hong Kong
405
231
0,6x
UK
SVS LLC (40% Stake)
US-based company that is engaged in sourcing medical Premier, Inc. and foodservice products
US
Radiant Cash Management Services Private Limited
India-based company engaged in providing cash Ascent Capital Pvt Ltd delivery, network cash management, ATM management services
India
17
Deposition Solutions
US-based company engaged in providing deposition and litigation support services for law firms and corporate legal departments
US
18
Shanghai Motion JUNS Communication Technology Company Limited
China-based company which provides call center Shanghai CM Concept services in Shanghai for a telecommunications operator. Communications Products Franchise Sale Company Limited USA-based company which provides cloud-based NewNet Communication contact center services and voice recognition Technologies, LLC applications
Feb-15
Volt Delta Resources, LLC Dec-14
Trinity Hunt Partners
China
44
1
USA
25
1
0,6x
1,0x
8
South African-based company which provides employment services, information technology skills development and outsourcing solutions primarly in South Africa.
Paracon Holdings Ltd.
South Africa
104
19
Aaa Auto Group N.V.
Czech Republic-based company which is engaged in the purchase and sale of used cars and in addition in call centre operations in the automotive field.
Abris Capital Partners
Poland
379
245
0,6x
PAXYS Inc (PSE:PAX)
Philippines-based company which provides call center and data conversion services in the Philippines and internationally.
Paxys N.V.
Netherlands Antilles
3
19
7,1x
Oct-14
9,1x
210
Kelly Group Limited Nov-14
Sep-14
UK
Switzerland-based company which provides customer Capita plc (LSE:CPI) contact management services in Germany, Switzerland and Austria.
Feb-15
Dec-14
Revenue
avocis AG Feb-15
Feb-15
Baring Private Equity Asia
Country
Deal value Enterprise Value / (m€) Sales EBIT EBITDA
Target Company
11,1x
8,9x
7,2x
6,7x
16
Section II: BPO Companies Comparable M&A Transactions Exhibit 3 BPO Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Sep-14
Target Company
Contact Centres Australia Pty Ltd Australia-based company which provides a range of inbound and outbound call center solutions
Australia
10
Argentina-based company which provides transaction and information processing services for financial institutions.
Visa Argentina SA
Argentina
Beijing Jet-Tech Zhicheng Technology Co.,Ltd.
China-based company which provides third party professional testing for Chinese commercial banks. It also offers financial system development and testing services. USA-based company which provides payment and transaction processing solutions.
Jiangsu Hoperun Software Co.,Ltd. (SZSE:300339)
MNS Holdings LLC
USA-based company which offers design, implementation, and managed services of retail and distributed enterprise network.
G. Fleischhauer Ingenieur-Büro GmbH & Co. KG
Germany-based company which provides services and SPIE GmbH technical solutions in information and security technology.
ICON Communication Centres s.r.o.
Czech Republic-based company which operates as a Utilitywise Plc (AIM:UTW) contact center outsourcing company in Czech Republic and internationally.
Speech Modules, Ltd.
Israel-based company which provides speech-to-text services for telecommunications operators, medical applications, call centers, and homeland security applications primarily in Israel.
The Portal Group, Inc.
USA-based company which provides customized technology, development, and personnel solutions for organizations.
Stream Global Services, Inc.
USA-based company which provides business process Convergys Corporation outsourcing services. (NYSE:CVG)
SQS India BFSI Limited (NSEI:533121)
India-based company which offers software validation and verification services to the banking and financial services industry in India and internationally.
Jun-14
Mar-14
Mar-14
Mar-14
Feb-14
Telekomunikasi Indonesia International Australia Pty Ltd.
Banelco S.A.
Jul-14
Mar-14
Revenue
Australia
Meritus Payment Solutions, Inc.
Apr-14
Country
Australia-based company which offers consulting and HUB24 Limited (ASX:HUB) support services to small-sized businesses and licensed representatives.
Aug-14
Jun-14
Bidder Company
Paragem Pty. Ltd. Sep-14
Aug-14
Target Description
RM Arsiv Yonetim Hizmetleri A.S. Turkey-based company which provides records management services to organizations.
Deal value Enterprise Value / (m€) Sales EBIT EBITDA 8
1
43
1
China
84
Optimal Payments Plc (AIM:OPAY)
UK
154
Tolt Solutions, Inc.
USA
21
Germany
44
24
UK
3
Speech Modules Holdings Ltd (TASE:SPCH)
Israel
1
Beyondsoft Consulting, Inc.
USA
17
SQS Software Quality Systems AG (AIM:SQS)
Iron Mountain Inc. (NYSE:IRM)
USA
742
Germany
24
USA
0,7x
601
16,3x
10,7x
0,5x
7,4x
15,2x
0,8x
22,0x
7,2x
6,5x
5,8x
15
17
Section II: BPO Companies Comparable M&A Transactions Exhibit 3 BPO Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Target Company
Target Description
Bidder Company
Country
SC STAR STORAGE SRL
Romania-based company which provides storage, archiving, and information management (data and documents) solutions in Romania.
Axxess Capital
Romania
OnPoint Consulting, Inc.
USA-based company which provides technology and management consulting services to its clients in the United States.
Sapient Government Services, Inc.
Tape Management Services Pty Ltd.
Australia-based company which offers offsite data storage and data protection services.
Iron Mountain Australia Pty. Ltd.
MicroSourcing International Inc.
Philippines-based company which provides offshoring Salmat Limited (ASX:SLM) and outsourcing solutions to small businesses, mid-sized businesses, and large corporations in the Philippines and internationally.
SJI Inc., West Japan Group Business
Japan-based company which comprises systems development business in the Chubu, Kansai, and Kyushu divisions.
NCXX Solutions Co., Ltd.
Xchanging Italy S.p.A.
Italy-based company which provides business processing including, insurance services, technology, and procurement services.
Xchanging PLC (LSE:XCH)
Black Knight InfoServ, LLC
Atento Ceska Republika a.s.
Feb-14
Feb-14
Jan-14
Jan-14
Jan-14
Jan-14
Jan-14
Dec-13
Revenue 9
Deal value Enterprise Value / (m€) Sales EBIT EBITDA 5
USA
9
Australia
11
Australia
11
6
Japan
4
UK
5
USA-based company which provides integrated ServiceLink, L.P. technology, data, and services to the mortgage lending industry in the United States.
USA
2 961
Czech Republic-based company engaged in outsourcing services and Customer Relationship Management
Spain
9
Sl Spain Holdco Atento
Average Median
Source: Capital IQ, Merger Market
0,5x
0,5x
1,9x 1,2x
13,7x
11,7x
10,8x 9,9x
8,1x 6,9x
18
Section III: Facilities Management Companies Comparable Public Company Valuations The Knowledge Centre’s facilities management comparable public company analysis involves 20 publicly traded Facilities Management and 4 Real Estate Services companies (Exhibits 4 and 5). The median EBIT and EBITDA margins for Facilities Management industry are 4.8% and 6.3%, respectively. The median EV/EBIT and EV/EBITDA for Facilities Management industry are 16.9x and 9.8x respectively. The median EBIT and EBITDA margins for the Real Estate Services industry are 8.1% and 10.4%, respectively. The median EV/EBIT and EV/EBITDA for the Real Estate industry are 15.4x and 12.7x, respectively. Exhibit 4 Facilities Management & Real Estate Services Comparable Company Profit Trends (€ in millions) EBITDA / Sales
Facilities Management Company Name
Country Last Year
Sales (Last)
%EBITDA (Last)
%EBIT (Last)
Market Enterprise cap. Value (Current) (Current)
EBIT / Sales
LTM
2015
2014
2013
2012
LTM
2015
2014
2013
2012
ABM Industries Incorporated
US
31/10/15
4 370
3%
2%
1 972
2 127
3,3%
3,0%
3,8%
3,7%
3,4%
2,2%
1,9%
2,5%
2,4%
2,2%
Aramark
US
02/10/15
12 785
8%
5%
6 051
11 026
8,5%
8,0%
7,4%
7,6%
8,2%
5,0%
4,5%
3,9%
3,7%
4,3%
Balfour Beatty plc
UK
31/12/15
7 917
-3%
-4%
2 185
2 800
-1,3%
-3,1%
-2,8%
-0,7%
2,1%
-1,9%
-3,8%
-3,5%
-1,4%
1,1%
Compass Group PLC
UK
30/09/15
20 024
9%
7%
27 576
31 171
9,1%
9,1%
8,9%
8,7%
8,5%
7,1%
7,1%
7,0%
6,9%
6,7%
Derichebourg
FR
30/09/15
2 356
5%
2%
445
723
5,1%
5,2%
4,5%
4,7%
4,8%
1,7%
2,2%
1,6%
1,0%
2,1%
EMCOR Group Inc.
US
31/12/15
5 995
5%
4%
3 220
3 298
5,4%
5,4%
5,5%
4,8%
5,1%
4,3%
4,3%
4,4%
3,8%
4,1%
FirstService Corporation
CA
31/12/15
856
8%
6%
1 552
2 278
8,2%
8,0%
6,5%
7,4%
6,2%
6,0%
5,7%
4,1%
4,7%
3,7%
ISS A/S
DE
31/12/15
10 694
6%
5%
6 724
8 491
6,3%
6,3%
6,2%
5,5%
6,3%
4,8%
4,8%
4,7%
4,0%
4,6%
Impel S.A.
PD
31/12/15
421
5%
2%
69
136
4,2%
4,9%
5,4%
5,0%
5,2%
1,6%
2,2%
2,5%
2,3%
2,6%
Interserve plc
UK
31/12/15
3 648
4%
2%
672
1 063
4,2%
4,5%
4,7%
4,6%
4,0%
2,3%
2,4%
2,6%
2,7%
2,3%
ISS A/S
DE
31/12/15
na
6%
5%
0
3 062
6,3%
6,3%
6,2%
5,5%
6,3%
4,8%
4,8%
4,7%
4,0%
4,6%
Mears Group plc
UK
31/12/15
1 003
5%
3%
528
545
4,8%
5,0%
5,9%
5,6%
6,1%
2,9%
3,2%
3,9%
3,7%
4,1%
MITIE Group PLC
UK
31/03/16
2 541
6%
5%
967
1 193
6,4%
6,4%
6,8%
9,9%
4,6%
5,3%
5,3%
5,5%
8,7%
3,2%
Nippon Kanzai Co., Ltd.
JN
31/03/16
777
7%
6%
454
334
6,6%
6,6%
7,0%
7,0%
6,2%
5,8%
5,8%
6,2%
6,0%
5,3%
Rentokil Initial plc
UK
31/12/15
2 002
23%
12%
4 548
5 838
23,0%
23,1%
23,6%
24,9%
20,5%
12,2%
12,3%
12,4%
13,1%
11,0%
Renaissance Services SAOG
na
31/12/15
549
34%
21%
155
1 001
35,9%
34,4%
36,9%
31,5%
32,5%
21,2%
20,8%
25,3%
20,2%
20,9%
Rollins Inc.
US
31/12/15
1 325
19%
16%
5 639
5 527
19,4%
19,2%
18,6%
17,2%
17,0%
16,4%
16,2%
15,5%
14,3%
13,9%
Sodexo S.A.
FR
31/08/15
19 815
7%
6%
16 012
17 826
7,1%
7,1%
6,4%
5,8%
7,0%
5,5%
5,7%
5,0%
4,4%
5,2%
Synergis Holdings Ltd.
HK
31/12/15
281
3%
3%
33
55
3,2%
3,4%
3,7%
3,9%
3,4%
2,8%
2,8%
2,9%
2,9%
2,6%
UGL Limited
AU
30/06/16
1 319
-7%
-8%
725
1 183
-7,1%
-7,1%
-11,3%
3,3%
2,9%
-7,8%
-7,8%
-12,2%
1,0%
0,1%
6,7% 6,3%
6,6% 6,3%
6,6% 6,2%
6,9% 5,5%
6,5% 6,2%
4,3% 4,8%
4,2% 4,7%
4,2% 4,3%
4,4% 3,9%
4,1% 4,1%
Mean Median
Source: Capital IQ (30/09/2016)
EBITDA / Sales
Real Estate Company Name
Country Last Year
Sales (Last)
%EBITDA (Last)
%EBIT (Last)
Market Enterprise cap. Value (Current) (Current)
EBIT / Sales
LTM
2015
2014
2013
2012
2011
LTM
2015
2014
2013
2012
CBRE Group, Inc.
US
31/12/15
9 686
10%
8%
8 396
11 440
9,0%
10,5%
11,2%
12,4%
12,9%
9,7%
6,2%
7,6%
8,2%
9,8%
10,3%
Colliers International Group Inc.
CA
31/12/15
1 166
10%
8%
1 464
2 387
10,4%
10,2%
7,9%
6,5%
7,1%
6,0%
8,1%
7,9%
5,6%
4,0%
4,6%
Jones Lang LaSalle Incorporated
US
31/12/15
5 323
11%
9%
4 647
5 748
10,9%
11,3%
11,1%
10,5%
10,5%
10,9%
9,0%
9,5%
9,4%
8,7%
8,5%
Morguard Corp.
CA
31/12/15
588
51%
50%
1 457
4 670
55,2%
50,6%
57,7%
70,7%
72,3%
70,8%
54,1%
49,7%
56,7%
69,8%
71,8%
19,2% 10,4%
18,5% 10,5%
19,2% 11,1%
21,3% 10,5%
22,0% 10,5%
20,7% 9,7%
17,1% 8,1%
16,5% 7,9%
17,1% 8,2%
19,2% 8,7%
19,9% 8,5%
Mean Median
Source: Capital IQ (30/09/2016)
19
Section III: Facilities Management Companies Comparable Public Company Valuations Exhibit 5 Facilities Management & Real Estate Services Public Company Valuation Trends (€ in millions) EV/Net Sales
Facilities Management Company Name
Country Last Year
EV/EBITDA
LTM
2015
2014
2013
2012
LTM
2015
2014
2013
EV/EBIT
PER
2012
LTM
2015
2014
2013
2012
LTM
2015
2014
2013
2012 19,4x
ABM Industries Incorporated
US
31/10/15
0,5x
0,4x
0,4x
0,4x
0,3x
14,1x
12,4x
11,2x
10,8x
9,4x
21,4x
20,2x
16,6x
16,9x
14,3x
25,0x
22,7x
22,2x
20,5x
Aramark
US
02/10/15
0,9x
0,9x
0,9x
0,4x
0,4x
10,2x
11,3x
11,6x
5,5x
5,2x
17,3x
20,1x
22,1x
11,2x
9,9x
26,3x
32,8x
49,3x
0,0x
0,0x
Balfour Beatty plc
UK
31/12/15
0,4x
0,3x
0,3x
0,4x
0,3x
na
na
na
na
12,2x
na
na
na
na
24,2x
na
na
na
na
46,8x
Compass Group PLC
UK
30/09/15
1,5x
1,2x
1,2x
1,1x
0,9x
16,5x
13,6x
14,0x
12,2x
10,4x
21,1x
17,4x
17,8x
15,3x
13,1x
26,7x
21,8x
21,4x
40,3x
22,9x
Derichebourg
FR
30/09/15
0,3x
0,3x
0,3x
0,4x
0,4x
5,9x
6,8x
8,5x
9,0x
19,0x
14,2x
19,0x
41,5x
20,1x
28,6x
16,8x
na
na
12,2x
EMCOR Group Inc.
US
31/12/15
0,5x
0,4x
0,5x
0,5x
0,4x
9,3x
8,2x
8,4x
9,9x
7,2x
11,7x
10,3x
10,6x
12,8x
8,9x
19,2x
17,6x
17,8x
24,8x
17,6x
FirstService Corporation
CA
31/12/15
2,4x
2,3x
0,2x
n.d.
na
29,5x
28,3x
2,4x
na
na
40,8x
39,7x
3,7x
na
na
80,9x
94,3x
0,0x
0,0x
0,0x
ISS A/S
DE
31/12/15
0,8x
0,7x
0,7x
0,3x
0,3x
12,6x
11,6x
11,9x
5,3x
5,2x
16,4x
15,3x
16,0x
7,2x
7,1x
21,4x
21,3x
42,0x
na
na
Impel S.A.
PD
31/12/15
0,3x
0,3x
0,4x
0,4x
0,5x
7,3x
6,6x
7,4x
8,1x
9,0x
18,9x
14,9x
16,1x
17,9x
17,8x
11,4x
14,3x
13,4x
23,4x
16,5x
Interserve plc
16,4x
13,6x
6,5x
UK
31/12/15
0,3x
0,3x
0,4x
0,4x
0,3x
6,8x
7,0x
8,5x
9,7x
7,8x
12,5x
12,9x
15,2x
195,4x
9,0x
18,4x
17,6x
ISS A/S
DE
31/12/15
0,3x
0,7x
0,7x
0,3x
0,3x
4,5x
11,6x
11,9x
5,3x
5,2x
5,9x
15,3x
16,0x
7,2x
7,1x
0,0x
21,3x
42,0x
na
na
Mears Group plc
UK
31/12/15
0,5x
0,5x
0,5x
0,6x
0,5x
11,0x
9,6x
8,7x
10,8x
8,5x
18,1x
14,9x
13,1x
16,4x
12,7x
40,0x
33,1x
17,1x
na
17,5x
MITIE Group PLC
9,2x
11,0x
7,0x
UK
31/03/16
0,5x
0,5x
0,6x
0,6x
0,6x
7,5x
8,9x
6,2x
12,1x
17,6x
11,2x
11,6x
33,7x
24,0x
23,2x
Nippon Kanzai Co., Ltd.
JN
31/03/16
0,4x
0,5x
0,4x
0,4x
0,2x
6,6x
7,2x
6,1x
6,0x
3,9x
7,5x
8,1x
7,0x
6,9x
4,5x
15,2x
14,3x
12,2x
13,1x
10,4x
Rentokil Initial plc
UK
31/12/15
2,7x
2,4x
1,9x
1,8x
1,2x
11,8x
10,4x
7,9x
7,2x
6,0x
22,3x
19,5x
15,1x
13,7x
11,2x
30,0x
26,0x
9,5x
58,1x
36,8x
Renaissance Services SAOG
na
31/12/15
1,9x
1,8x
2,1x
2,3x
2,2x
5,3x
5,1x
5,7x
7,3x
6,9x
8,9x
8,5x
8,3x
11,5x
10,7x
na
na
5,8x
16,1x
na
Rollins Inc.
US
31/12/15
4,1x
3,9x
3,8x
3,2x
2,6x
20,9x
20,2x
20,4x
18,7x
15,5x
24,8x
23,9x
24,5x
22,5x
18,8x
40,4x
38,7x
39,5x
35,6x
30,7x
Sodexo S.A.
FR
31/08/15
0,9x
0,8x
0,7x
0,7x
0,6x
12,3x
10,9x
11,4x
11,2x
8,4x
15,7x
13,5x
14,5x
14,9x
11,4x
22,4x
20,0x
24,8x
24,9x
18,4x
Synergis Holdings Ltd.
HK
31/12/15
UGL Limited
AU
30/06/16
0,1x 0,9x
0,2x 0,2x
0,4x 0,2x
0,3x 0,9x
0,5x 1,0x
4,3x na
7,2x na
11,7x na
7,5x 26,4x
13,1x 34,5x
4,9x na
8,5x na
14,8x na
9,8x 83,3x
17,4x 674,1x
5,2x na
8,2x na
15,4x na
8,7x 16,1x
16,7x 35,9x
1,0x 0,5x
0,9x 0,5x
0,8x 0,5x
0,8x 0,4x
0,7x 0,5x
10,9x 9,8x
10,8x 10,0x
9,7x 8,8x
9,8x 8,3x
10,0x 8,5x
16,5x 16,9x
15,9x 14,9x
14,5x 15,1x
18,5x 14,3x
48,1x 13,1x
35,3x 25,0x
24,9x 21,3x
22,6x 18,4x
21,5x 20,5x
19,3x 17,6x
Mean Median
7,4x
8,9x
3,6x
Source: Capital IQ (30/09/2016)
EV/Net Sales
Real Estate
EV/EBITDA
EV/EBIT
PER
Company Name
LTM
2015
2014
2013
2012
LTM
2015
2014
2013
2012
LTM
2015
2014
2013
2012
LTM
2015
2014
2013
CBRE Group, Inc.
1,0x
1,2x
1,7x
1,5x
1,7x
11,5x
11,4x
15,2x
12,4x
13,1x
16,7x
15,8x
20,6x
15,7x
16,5x
17,7x
17,7x
25,8x
27,3x
24,6x
Colliers International Group Inc.
1,9x
1,8x
3,1x
2,4x
0,9x
18,3x
18,2x
39,1x
37,1x
12,7x
23,5x
23,3x
54,9x
60,3x
19,8x
38,2x
83,1x
69,0x
na
174,7x
Jones Lang LaSalle Incorporated
1,0x
1,1x
1,5x
1,3x
1,2x
9,4x
9,8x
13,6x
12,7x
11,5x
11,4x
11,7x
16,1x
15,3x
14,2x
12,7x
12,2x
19,4x
19,6x
20,3x
Morguard Corp.
7,7x
7,5x
11,5x
8,4x
8,4x
13,9x
14,8x
19,9x
11,8x
11,7x
14,2x
15,1x
20,3x
12,0x
11,7x
17,4x
22,1x
13,9x
5,8x
3,8x
2,9x 1,5x
2,9x 1,5x
4,4x 2,4x
3,4x 2,0x
3,1x 1,5x
13,3x 12,7x
13,6x 13,1x
22,0x 17,5x
18,5x 12,5x
12,3x 12,2x
16,4x 15,4x
16,5x 15,4x
28,0x 20,4x
25,8x 15,5x
15,6x 15,3x
21,5x 17,5x
33,8x 19,9x
32,0x 22,6x
17,6x 19,6x
55,9x 22,5x
Mean Median
2012
Source: Capital IQ (30/09/2016)
20
Section III: Facilities Management Companies Comparable M&A Transactions The median EV/EBIT and EV/EBITDA for the comparable Facilities Management M&A transactions are 10.6x and 9.8x, respectively. Exhibit 6 Facilities Management Comparable M&A Transactions (€ in millions except where mentioned in $) Date
Deal value (m€)
Entreprise value/ Sales EBIT EBITDA
Target Company
Target Description
Mar-16
NWP Services Corporation
US-based company headquartered in Irvine, California, RealPage, Inc. is a provider of utility management, resident and property operation services to the multifamily industry.
US
Feb-16
Zip Textiles (Services) Limited
UK-based provider of laundry services for hotel and leisure sectors,
Johnson Service Group Plc
UK
20
Jan-16
CBM Qatar LLC
Qatar-based company which provides integrated facilities management services for private and public sector customers in Qatar.
CBM International Pte Ltd.
Singapore
2
Jan-16
Availon GmbH
Danemark-based company which maintains, and optimizes wind turbine systems and generators worldwide.
Vestas Wind Systems A/S
Denmark
512
Dec-15
Spectrum Technologies, Inc.
USA-based company which provides commercial Transcat Inc. instrument calibration and test equipment repair services for measurement and test equipment.
USA
Nov-15
RSY S.A.
Poland-based company which provides repair services Zastal Spolka Akcyjna for vehicles and machinery in Poland.
Nov-15
Furmanite Corporation
USA-based company which provides specialized technical maintenance services.
Nov-15
Ashbon Services Limited
UK-based specialist linen hire and laundry business
Oct-15
Ankateks Turizm Insaat Tekstil Temizleme San. Ve Tic. Ltd
Turkey-based company engaged in providing laundry Servizi Italia S.p.A. and sanitization services to hospitals
Oct-15
PONUTech Co., Ltd.
South Korea-based company which provides nuclear power plant integrated maintenance and control services.
Sukwon Industrial Co., Ltd.
Oct-15
Worldwide Flight Services, Inc.
France-based company that provides cargo, ground and technical services at airports.
Platinum Equity LLC
US
640
300
Sep-15
Sure Maintenance Group Limited UK-based company which provides gas, mechanical, electrical, maintenance services to residential and commercial markets in the United Kingdom.
Lakehouse plc
UK
277
106
Aug-15
Office & General Environmental Services Limited
UK-based company which operates as a facilities management company in the United Kingdom.
Tenon Facility Management UK Limited
UK
405
63
Jul-15
Purdy Contracts Limited
UK-based company which provides heating, electrical, Bilby Plc and mechanical repair and maintenance services in the United Kingdom.
UK
169
98
0,6x
Jul-15
Orchard Energy Ltd.
UK-based company which provides energy management services.
UK
7
14
2,0x
Bidder Company
Country
Revenue 53
61
1,1x
11,3x
751
1,5x
16,9x
45
91
2,0x
Poland
13
44
3,8x
Team, Inc.
USA
4 018
2 788
0,6x
Johnson Service Group Plc
UK
Lakehouse plc
IT
14,8x
9,2x
9
14
South Korea
6
100
4,1x
21
Section III: Facilities Management Companies Comparable M&A Transactions Exhibit 6 Facilities Management Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Bidder Company
Revenue
Entreprise value/ Sales EBIT EBITDA
Target Company
Target Description
Jul-15
Choquette CKS, Inc.
Canada-based company that provides repair and Heritage Foodservice maintenance services for commercial kitchen equipment Group, Inc. in Canada.
USA
109
Dec-14
Next Phase Solar, Inc.
USA-based company which provides enterprise solar Enphase Energy, Inc. operations and maintenance services, as well as asset management services to owners.
USA
19
Dec-14
UE Managed Solutions Pte Ltd. (nka:UEMS Pte Ltd.)
Singapore-based integrated facilities management company, provides facilities and environmental management services aiding hospitals in Singapore
Dymon Group; Dymon Asia Private Equity
Singapore
72
Dec-14
CKTiS Spólka Akcyjna
Poland-based company which provides equipment maintenance, technical supervision, and engineering services for power, oil and gas.
Termo-Rex Spólka Akcyjna
Poland
5
Nov-14
WBD Holdings Ltd.
Canada-based company which operates as an industrial and maintenance construction company.
Mosaic Capital L.P.
Canada
322
165
0,6x
Sep-14
Derek Gladwin Ltd
UK-based company which provides car body repair services in East Anglia.
UK
170
120
0,7x
Aug-14
Z-Power Automation Pte. Ltd.
Singapore-based company which is an assembler, manufacturer and repairer of switchboards and switchgears for vessels.
Nationwide Accident Repair Services Plc (nka:Nationwide Accident Repair Services Limited) XMH Holdings Ltd.
Singapore
128
76
May-14
Ansaldo Energia S.p.A.
China-based company which supplies, installs, and provides services for power generation plants and components to governments, public utilities
Shanghai Electric Group Company Limited
China
13 101
4 299
1,1x
11,9x
May-14
Vindea Oy
Finland-based company which provides logistics and industrial packing solutions primarily in Finland.
Suomen Transval Oy
Finland
30
17
0,6x
12,0x
Apr-14
Global Facilities Management Sdn Malaysia-based company which provides facilities Bhd management services to asset owners.
GFM Services Berhad
Malaysia
12
10
0,8x
Apr-14
Maine Industrial Repair
USA-based company which provides electric motor and Timken Co. (NYSE:TKR) controls and generator repairing services.
United States
9
0,7x
Apr-14
National Bulk Handling Corporation Ltd.
India-based company which operates as an integrated India Value Fund Advisors commodity and collateral management company in Private Ltd India.
India
28
1,5x
Apr-14
HSIL Properties (Self Storage) UK UK-based company which provides personal and Limited business self storage services.
Mar-14
Canterm Canadian Terminals, Inc. Canada-based company which operates public storage Vopak Canada terminals of chemical, agriculture, liquid, dry, and bulk products.
Big Yellow Group plc (LSE:BYG)
Country
Deal value (m€)
Date
55
United Kingdom
24
Canada
72
13,6x
5,2x
10,0x
6,0x
22
Section III: Facilities Management Companies Comparable M&A Transactions Exhibit 6 Facilities Management Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Country
Revenue
Entreprise value/ Sales EBIT EBITDA
Target Description
Mar-14
Weyburn Inland Terminal Ltd
Canada-based company which offers grain handling Parrish and Heimbecker, and marketing services, including sourcing, cleaning, Limited blending, processing, selling, and shipping grain to endusers.
Canada
79
0,5x
Dec-13
SeaCo SRL
Barbados-based company which operates as a marine Bohai Leasing Co., Ltd. container leasing company. (SZSE:000415)
China
978
2,7x
Oct-13
Mac-Gray Corporation
US-based laundry facilities management contractor
CSC ServiceWorks, Inc
USA
Sep-13
Tarvia Mantenimiento Ferroviario Spain-based provider of train repair and maintenance SA services
Patentes Talgo, S.A.
Spain
Aug-13
Balfour Beatty WorkPlace Ltd
UK-based provider of facilities management services to GDF Suez SA private and public sectors
Aug-13
SGP Property & Facilities Management Ltd.
UK-based company engaged in providing property and Bell Rock Bidco Limited facilities management support services
Aug-13
Servisair UK Limited
UK-based provider of aviation ground services
Swissport International Ltd.
May-13
Avio S.p.A. (Pratt & Whitney Canada’s PW100 engine maintenance business) Initial Hospital Services
Italy-based PW100 engine maintenance repair and overhaul activities business of Avio S.p.A.
Industria de Turbo Propulsores, S.A.
Belgium-based provider of laundry services in the healthcare sector
CleanLeaseFortex BV
Apr-13
Bidder Company
Deal value (m€)
Target Company
244
47
1,5x
24,5x
16
France
594
221
0,4x
UK
64
35
0,6x
Switzerland
688
450
0,7x
Spain
6
Netherlands
11
Mar-13
ISS A/S (Pest Control operations Denmark based pest control division, with operations in Anticimex AB in 12 countries) Australia, Austria, Belgium, Denmark, Germany, Italy, the Netherlands, New Zealand, Norway, Portugal, Spain, and Switzerland
Mar-13
MISCOR Group Ltd
Feb-13
Enterprise Group Holdings Limited UK-based provider of infrastructure maintenance services for the public and utility sectors, and other organisations
Ferrovial S.A.
Spain
Feb-13
PIMS Group Limited
UK-based provider of maintenance services for water and wastewater systems
Xylem Inc
USA
Nov-12
Autoclenz Limited; Autoclenz Services Limited
UK-based company engaged in car valeting and vehicle preparation services
Autoclenz Limited (MBO Vehicle)
UK
Nov-12
Morrison Facilities Services Limited
UK-based company engaged in repairing and maintaining social housing
Mears Group Plc
UK
349
12
Nov-12
SE Zheldorremmash (75% Stake) Russia-based provider of repair and maintenance services for railways
LCC TMH-Service
Russia
755
195
US-based company providing maintenance and repair Integrated Electrical services to the electric motor industry Services, Inc.
14,9x
Sweden
373
268
0,7x
USA
38
18
0,5x
9,0x
10,7x
7,8x
5,0x
445
29
42
1,5x
5
0,3x
23
Section III: Facilities Management Companies Comparable M&A Transactions Exhibit 6 Facilities Management Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Target Company
Target Description
Bidder Company
Oct-12
JBT Ascenseurs
France-based company engaged in maintenance and installation of elevators
Fain Ascensores S.A.
Oct-12
LH Group
Aug-12
Country
Revenue
Deal value (m€)
Entreprise value/ Sales EBIT EBITDA
Spain
12
10
0,8x
UK-based company engaged in providing maintenance Wabtec Corporation and overhaul services for the passenger transit market
USA
49
40
0,8x
PLH Aviation; Dryden Air Services
Canada based aircraft ground handling company and Aircraft Service International services provider delivering fuel farm management, into- Group plane refuelling, ground handling and de-icing services
USA
Aug-12
Rollright Facilities Limited
UK-based company engaged in the provision of facilities HSG Zander GmbH management services
Germany
12
7
0,6x
Aug-12
ISS A/S (26% Stake)
Denmark based facility services company engaged in Kirkbi A/S; Ontario Teachers' cleaning, support, property, catering, security and facility Pension Plan management services
Denmark Canada
10 447
500
Aug-12
Modus FM Ltd.
UK based provider of a range of business support services
Rentokil Initial Plc
UK
23
Jul-12
VT Services Inc.
US based technical support services company, provides base operations and facilities management services for military bases
VT Holdings Inc
USA
250
May-12
Radiant Hospitality Services Pvt Ltd
India based company provides housekeeping and cleaning services
OCS Group Limited
UK
May-12
Cannon Textile Care
UK based operator of textile rental business
Johnsons Apparelmaster Limited
UK
Apr-12
Absotherm Facility Management (P) Ltd. (51% Stake)
India based company engaged in provision of facility management and project management consultancy services
OCS Group Limited
UK
Mar-12
Clece, S.A. (23.5% Stake)
Spain based company engaged in provision of cleaning Mercapital, S.L. services, partial strategic services, energy services, logistics services, maintenance services, social and airport services
Spain
9,8x
0,6x
10,6x
8,8x
5
0,2x
12,5x
12,5x
77
0,3x
5,1x
0,4x
30,5x
0,6x
9,7x
8,6x
1,0x 0,7x
10,9x 10,6x
10,4x 9,8x
22
4
19
7
19
914
Average Median
Source: Capital IQ, Merger Market
13,4x
80
24
Section IV: Security Services Companies Comparable Public Company Valuations The Knowledge Centre’s security services comparable public company analysis involves 11 publicly traded security services companies (Exhibits 7 and 8). The median EBIT and EBITDA margins are 5.2% and 7.7%, respectively. The median EV/EBIT and EV/EBITDA are 16.1x and 9.1x, respectively. Exhibit 7 Security Services Comparable Company Profit Trends (€ in millions) EBITDA / Sales
Security Services Sales (Last)
Company Name
%EBITDA (Last)
%EBIT (Last)
Market Enterprise cap. Value (Current) (Current)
LTM
EBIT / Sales
2016
2015
2014
2013
2012
LTM
2016
2015
2014
2013
2012
Central Security Patrols Co., Ltd.
400
6%
2%
232
194
6,5%
5,6%
6,1%
6,2%
5,8%
5,8%
2,8%
2,0%
2,5%
2,6%
2,3%
2,2%
Command Security Corp.
119
-2%
-2%
25
32
-1,7%
-1,7%
1,8%
2,1%
2,8%
1,3%
-2,1%
-2,1%
1,4%
1,7%
2,4%
0,7%
7 813
8%
5%
4 104
6 342
7,7%
7,5%
7,4%
7,5%
8,0%
9,3%
5,2%
5,0%
4,5%
4,5%
4,9%
6,1%
Impel S.A.
421
5%
2%
69
136
4,2%
4,9%
5,4%
5,0%
5,2%
6,6%
1,6%
2,2%
2,5%
2,3%
2,6%
4,1%
Loomis AB
1 670
17%
10%
1 940
2 449
17,3%
17,2%
16,6%
16,3%
15,3%
14,3%
10,4%
10,2%
9,8%
9,4%
8,7%
8,1%
MITIE Group PLC
2 541
6%
5%
967
1 193
6,4%
6,4%
6,8%
9,9%
4,6%
6,5%
5,3%
5,3%
5,5%
8,7%
3,2%
5,1%
Prosegur Compañía de Seguridad, S.A. 3 959
11%
8%
3 508
4 213
11,3%
11,3%
11,1%
11,1%
12,3%
13,0%
8,6%
8,5%
8,2%
8,2%
9,4%
10,2%
SECOM CO.,LTD.
7 598
20%
15%
14 530
13 500
20,1%
20,5%
20,5%
20,5%
19,8%
17,9%
14,2%
14,5%
14,7%
14,6%
14,1%
11,9%
Securitas AB
8 391
6%
5%
5 546
7 124
6,4%
6,2%
6,3%
6,4%
5,9%
6,4%
4,8%
4,7%
4,6%
4,6%
4,1%
4,8%
Sohgo Security Services Co. Ltd.
3 293
11%
8%
4 477
4 361
11,0%
11,1%
9,6%
8,7%
7,7%
7,9%
7,5%
7,6%
6,3%
5,8%
3,7%
3,5%
The Brink's Company
2 732
8%
4%
1 578
1 934
7,7%
8,1%
5,5%
8,6%
8,1%
9,0%
4,0%
4,2%
1,6%
4,7%
4,3%
5,3%
8,8% 7,7%
8,8% 7,5%
8,8% 6,8%
9,3% 8,6%
8,7% 7,7%
8,9% 7,9%
5,7% 5,2%
5,6% 5,0%
5,6% 4,6%
6,1% 4,7%
5,4% 4,1%
5,6% 5,1%
G4S plc
Mean Median
Source: Capital IQ (30/09/2016)
Exhibit 8 Security Services Company Valuation Trends (€ in millions) EV/Net Sales
Security Services
EV/EBITDA
EV/EBIT
PER
Company Name
LTM
2016
2015
2014
2013
2012
LTM
2016
2015
2014
2013
2012
LTM
2016
2015
2014
2013
2012
LTM
2016
2015
2014
2013
2012
Central Security Patrols Co., Ltd.
0,5x
0,6x
0,4x
0,3x
0,2x
0,2x
7,3x
10,3x
6,5x
4,6x
3,9x
3,3x
16,8x
29,1x
15,6x
10,9x
9,7x
8,8x
29,7x
18,2x
29,2x
22,5x
20,0x
23,7x
Command Security Corp.
0,3x
0,3x
0,2x
0,2x
0,1x
0,1x
na
na
8,8x
7,3x
5,2x
9,6x
na
na
11,8x
9,2x
6,1x
17,6x
na
na
14,9x
15,5x
27,0x
82,3x
G4S plc
0,8x
0,7x
0,9x
0,8x
0,9x
0,8x
10,4x
9,4x
12,6x
10,6x
11,1x
9,0x
15,3x
14,3x
20,9x
17,7x
18,0x
13,8x
124,4x 371,0x
32,0x
na
105,6x
21,8x
Impel S.A.
0,3x
0,3x
0,4x
0,4x
0,5x
0,3x
7,3x
6,6x
7,4x
8,1x
9,0x
5,1x
18,9x
14,9x
16,0x
17,9x
17,8x
8,3x
11,4x
14,3x
13,4x
23,4x
16,5x
5,2x
Loomis AB
1,4x
1,3x
1,7x
1,3x
1,0x
0,8x
8,3x
7,5x
10,5x
8,0x
6,4x
5,8x
13,8x
12,7x
17,8x
14,0x
11,2x
10,2x
16,2x
15,9x
22,0x
17,7x
13,6x
13,3x
MITIE Group PLC
0,5x
0,5x
0,6x
0,6x
0,6x
0,5x
7,4x
7,5x
8,9x
6,2x
12,1x
8,4x
8,9x
9,2x
11,0x
7,0x
17,6x
10,7x
11,2x
11,6x
33,7x
24,0x
23,2x
13,5x
Prosegur Compañía de Seguridad, S.A.1,1x
0,9x
1,0x
0,9x
0,9x
1,1x
7,9x
9,2x
8,5x
7,4x
8,1x
12,7x
10,6x
12,4x
11,4x
9,7x
10,4x
18,8x
15,9x
20,1x
17,3x
14,4x
15,4x
SECOM CO.,LTD.
1,7x
1,8x
2,1x
1,6x
1,6x
1,0x
8,7x
8,8x
10,2x
7,9x
8,0x
5,8x
12,3x
12,4x
14,3x
11,1x
11,2x
8,7x
22,0x
21,9x
23,6x
19,5x
19,3x
22,7x
Securitas AB
0,8x
0,7x
0,8x
0,6x
0,5x
0,5x
12,9x
11,7x
13,1x
9,0x
8,3x
8,0x
17,0x
15,6x
17,8x
12,4x
11,8x
10,8x
20,8x
20,0x
22,5x
15,2x
18,9x
13,3x
Sohgo Security Services Co. Ltd.
1,3x
1,4x
1,4x
0,6x
0,4x
0,2x
11,8x
12,9x
14,6x
7,2x
5,6x
2,3x
17,3x
18,8x
22,3x
10,9x
11,5x
5,2x
28,7x
27,9x
38,6x
22,5x
21,2x
28,3x
The Brink's Company
0,7x
0,6x
0,5x
0,5x
0,5x
0,4x
9,5x
7,9x
8,7x
5,2x
5,8x
4,6x
18,3x
15,3x
30,9x
9,6x
10,9x
7,7x
na
na
na
23,2x
14,0x
14,4x
0,9x 0,8x
0,8x 0,7x
0,9x 0,8x
0,7x 0,6x
0,6x 0,5x
0,6x 0,5x
9,3x 9,1x
9,1x 8,4x
10,1x 9,2x
7,5x 7,9x
7,5x 7,4x
6,4x 5,8x
15,1x 16,1x
15,3x 14,6x
17,3x 16,0x
12,0x 11,1x
12,3x 11,2x
10,2x 10,2x
31,5x 20,8x
57,4x 18,2x
25,0x 23,1x
20,1x 21,0x
26,7x 19,3x
23,1x 15,4x
Mean Median
9,7x
Source: Capital IQ (30/09/2016)
25
Section IV: Security Services Companies Comparable M&A Transactions The median EV/EBIT and EV/EBITDA for the comparable Security Services M&A transactions are 22.4x and 10.9x, respectively. Exhibit 9 Security Services Comparable M&A Transactions (€ in millions except where mentioned in $) Country
Revenue
Deal value (m€)
USA-based company providing after-market safety, CalAmp Corp. security, and protection products and services for (NasdaqGS:CAMP) tracking and recovering cars, trucks and other valuable mobile assets.
USA
119
129
Access Locksmiths Ltd.
UK-based company which provides locksmith and security services.
Croma Security Solutions Group PLC (AIM:CSSG)
UK
Nov-15
Proyectos futuro Sistemas S.A.
Spain-based company which offers installation and maintenance of fire and security equipment, devices, and protection systems.
IBEREXT SA
Nov-15
Frontline Security Pte Ltd
Singapore-based company which provides security manpower services, close protection officers, security systems, and organizations.
Tenon Facility Management Singapore Pte. Ltd.
Nov-15
Hi-tech Sekuriteit Laeveld Proprietary Limited
Sweden-based company which provides alarm CSG Holdings Ltd. installations, security monitoring, and guarding services. (JSE:CSG)
Oct-15
ABM Industries Incorporated, Security Business
USA-based company which offers security services Universal Services of including, security staffing, mobile patrol services, America, Inc. investigative services, and security consulting services.
Aug-15
Wemal Maxi-Protect Sdn Bhd
Malaysia-based company which provides central security and alarm-monitoring services.
Digistar Holdings Sdn Bhd
Sep-15
NICE Systems Ltd., Physical Security Business
Israel-based company which provides video surveillance services business.
Battery Ventures
Dec-15
AlliedBarton Security Services LLC
Jul-15
Date
Target Company
Target Description
Mar-16
LoJack Corporation
Dec-15
Bidder Company
Enterprise Value / Sales EBIT EBITDA 0,9x
31,9x
18,6x
3
Spain
Singapore
3
3
South Africa
3
USA
119
1,2x
Malaysia
USA
77
USA-based company which provides trained and Wendel (ENXTPA:MF) responsive security personnel to Fortune 500 companies and other organizations in the United States.
FR
1499
Protection 1, Inc.
USA-based company which provides security services Apollo Global Management, to residential, business, natioanl account and integrated LLC (NYSE:APO) system customers.
USA
1321
Jun-15
Guardforce 1 Limited
Hong Kong-based which provides cash-in-transit services to financial institutions and retailers.
China Anso (HK) Co., Ltd.
Hong Kong
104
Mar-15
Iron Protection Group, LLC
USA-based company which provides discreet armed protection servcies to clients in the US and internationally.
General Cannabis Corp. (OTCPK:CANN)
USA
1
Feb-15
LiveWatch Security, LLC
USA-based company which provides home security systems for customers in the US and Canada.
Monitronics International, Inc.
USA
54
Nov-14
Chubb Guarding Services Singapore Pte Ltd.
Singapore-based company which operates as a securities services company.
Takachiho Koheki Co. Ltd. (TSE:2676); Takachiho Fire, Security & Services (Thailand) Ltd.
Thailand
4
2
0,8x
11,3x
0,5x
26
Section IV: Security Services Companies Comparable M&A Transactions Exhibit 9 Security Services Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Revenue
Enterprise Value / Sales EBIT EBITDA
Target Description
Bidder Company
Nov-14
Centerra Group, LLC
USA-based company which provides security and fire support services to government and commercial customers in the US and internationally.
A&M Capital Advisors, LLC
USA
108
Oct-14
Transporte de Valores e Vigilância Brazil-based company which provides cash armored Ltda car transportation services.
Prosegur Compañía de Seguridad, S.A. (BME:PSG)
Spain
6
0,9x
Oct-14
Clear Image MMS Ltd.
UK-based company which provides security solutions, Gunnebo AB (OM:GUNN) and systems monitoring and maintenance services in the UK.
Sweden
4
0,6x
Sep-14
Protecs A&A CMS SDN BHD
Malaysia-based company which provides professional Digistar Holdings Sdn Bhd security services to commercial, financial, industrial, and private residential sectors in Malaysia.
Malaysia
1
Nov-14
Sunwin Services Group, Limited
UK-based company which provides security services in Cardtronics Europe Limited the UK.
UK
52
Sep-14
G4S Secure Solutions AB
Sweden-based company which provides manned security and security systems.
Sector Alarm Sverige AS
Norway
47
Jul-14
The Pride Group (QLD) Pty Ltd.
Australia-based company which provides electronic security services to the commercial market in Australia.
Turquino Equity LLC
USA
1
May-14
Tyco Fire & Security Services Korea Co., Ltd.
South Korea-based company which provides security solutions in Korea.
The Carlyle Group LP (NasdaqGS:CG)
USA
Jan-14
Evtec Management Services Pte Ltd
Singapore-based company which provides security services to various properties in Singapore.
Prosegur Compañía de Seguridad, S.A. (CATS:PSG)
Spain
4
Jan-14
Incendie Protection Sécurité SAS French-based company which offers fire extinguishers Étoile ID; Amundi Private and maintenance services. Equity Funds
France
5
Jan-14
G4s Cash Solutions (Canada) Ltd. Canada-based company which offers cash services security solutions.
Canada
Jan-14
Hawk Security, A Member of My Alarm Center
USA-based company which designs, installs, monitors, My Alarm Center, LLC sells, and services interactive security solutions for business and residential customers in the United States.
USA
Jan-14
Shagrir Systems Ltd.
Israel-based company which develops a system for Pointer Telocation Ltd. locating and protecting the human environment including (NasdaqCM:PNTR) vehicle security and locating services
Israel
40
14
Aug-13
G4S Cash Solutions (Canada) Ltd.
Canada based company engaged in providing Garda World Security outsourcing of cash cycle management, risk and security Corporation solutions
Canada
140
78
Garda World Security Corp.
Country
Deal value (m€)
Target Company
7
500
116
1791
3,5x
34,8x
17,5x
79
31
0,6x
27
Section IV: Security Services Companies Comparable M&A Transactions Exhibit 9 Security Services Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Bidder Company
Country
Revenue
Deal value Enterprise Value / (m€) Sales EBIT EBITDA
Date
Target Company
Target Description
Jul-13
Devcon Security Systems, Inc.
US based company engaged in the provision of The ADT Corporation electronic security services to commercial and residential customers
USA
Jul-13
Security Networks, LLC
US based company engaged in providing home security services
Monitronics International, Inc.
USA
59
395
6,5x
Jun-13
Infratek ASA
Norway based company that operates within three business segments: Infrastructure, Technical Systems and Guard Services
Triton Partners
Germany,UK, Sweden
382
80
0,2x
May-13
Central Investigation and Security India based company engaged in providing security Services Limited (Minority Stake) and safety services
OCS Group Limited
Apr-13
Arkoon Network Security SA (83.9% Stake)
France based company engaged in providing data protection and protection of information system
Cassidian CyberSecurity
France
11
12
1,3x
Feb-13
Acxiom Information Security Services, Inc.
US based company providing background screening services through legally compliant reports
Sterling Infosystems, Inc.
USA
37
55
1,5x
Dec-12
Deposita Systems Proprietary Limited (87% Stake)
South Africa based cash management and security company
G4S Cash Solutions Business (SA) Proprietary Limited
South Africa
Dec-12
Federal Resguard S.A.
Argentina based company engaged in security solution Securitas AB services
Sweden
16
6
0,4x
Sep-12
G4S Security Sp. z o.o.
Poland based company engaged in providing security Konsalnet SA solutions
Poland
45
10
0,2x
Aug-12
Intrepidus Group, Inc.
US based provider of mobile application and device security services
NCC Group Plc
United Kingdom
3
9
3,4x
Jul-12
The Shield Guarding Company Limited (49% Stake)
UK based security services provider
Tops Security Limited
India
66
25
0,4x
Apr-12
Chillida Sistemas de Seguridad, S.L.
Spain based manufacturer of security systems
Securitas AB
Sweden
26
23
0,9x
Mar-12
Segura
Urugay based alarms and security company
Prosegur Compania de Seguridad, S.A.
Spain
Mar-12
Transbank ; Nordeste Seguranca Brazil based security company specialising in cash in Prosegur Compania de transit, guarding and technology; Brazil based security Seguridad, S.A. company specialising in cash in transit, guarding and technology
Spain
112
UK
10,9x
5,5x
4,0x
5
6,4x
10
47,7x
11
345
359
1,0x
28
Section IV: Security Services Companies Comparable M&A Transactions Exhibit 9 Security Services Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Target Company
Target Description
Bidder Company
Country
Revenue
Spain
Deal value Enterprise Value / (m€) Sales EBIT EBITDA
Jan-12
Security and Intelligence Services India based Valuables Logistics and Cash Management Prosegur Compania de (India) Limited (Valuables Logistics division of Security and Intelligence Services (India) Seguridad, S.A. and Cash Management division) Limited (49% Stake)
16
Jan-12
Protect d.o.o. (85% Stake)
Croatia based provider of security services
Securitas AB
Sweden
8
6
0,8x
Jan-12
MPL Beveiligingsdiensten B.V.
Netherlands based company engaged in providing all kinds of security services
Securitas AB
Sweden
11
5
0,4x
Dec-11
SecurLog GmbH
Germany based provider of collection and delivery services for cash and other valuables
Prosegur Compania de Seguridad, S.A.
Spain
146
23
0,2x
Dec-11
CSS Internacional S.A.
Costa Rica based security services firm
Securitas AB
Sweden
11
6
0,6x
Nov-11
Pristis AS
Estonian based company engaged in the design, sale, K Grupp Turvateenused OU guarding, rental, installation, and maintenance of security systems
Estonia
13
10
0,8x
Oct-11
Cobelguard security NV
Belgium based company providing security systems services
Securitas AB
Sweden
59
38
0,6x
Oct-11
Aeroguard Group
Canada based provider of airport screening and security services
The Garda Security Group Inc.
Canada
Oct-11
Orbis Security Solutions
South Africa based provider of physical guarding services
Securitas AB
Sweden
8
4
0,5x
Sep-11
Sistem-FTO D.O.O.
Serbian company providing security services involving Securitas AB guarding and alarm monitoring
Sweden
14
4
0,3x
Sep-11
Chubb Singapore Pte Ltd
Singapore based security services company
Securitas AB
Sweden
43
4
0,1x
Sep-11
Sensormatic Guvenlik Group (51% Stake)
Turkey based company engaged in providing technical Securitas AB security services
Sweden
22
13
1,2x
Sep-11
Grupo Segur Iberica (41.2% Stake)
Spain based security and safety products and services Corpfin Capital; MCH Private provider Equity
Spain;Spain
220
26
0,3x
10,9x
57,2x
3,5x
0,8x
1,0x
12
Average Median
Source: Capital IQ , Merger Market
13,0x
1,0x 0,6x
3,5x
23,9x 22,4x
12,3x 10,9x
29
Section V: Contract Catering Companies Comparable Public Company Valuations The Knowledge Centre’s contract catering comparable public company analysis involves publicly traded contract catering companies (Exhibits 10 and 11).
5
The median EBIT and EBITDA margins are 5.0% and 7.9%, respectively. The median EV/EBIT and EV/EBITDA are 15.7x and 12.1x, respectively. Exhibit 10 Contract Catering Comparable Company Profit Trends (€ in millions) Catering Sales (Last)
Company Name Aramark
%EBITDA (Last)
%EBIT (Last)
Market Enterprise cap. Value (Current) (Current)
EBITDA / Sales
EBIT / Sales
LTM
2015
2014
2013
2012
LTM
2015
2014
2013
2012
12 785
8%
5%
8 192
12 949
8,5%
8,0%
7,4%
7,6%
8,2%
5,0%
4,5%
3,9%
3,7%
4,3%
4 839
8%
3%
1 940
2 745
7,9%
7,7%
7,0%
6,6%
6,9%
3,7%
3,4%
2,8%
2,0%
2,6%
Catering International & Services 272 SA
5%
4%
105
90
4,3%
4,8%
7,0%
7,5%
7,4%
3,0%
3,5%
5,9%
6,5%
6,5%
Compass Group PLC
20 024
9%
7%
27 576
31 171
9,1%
9,1%
8,9%
8,7%
8,5%
7,1%
7,1%
7,0%
6,9%
6,7%
Sodexo S.A.
19 815
7%
6%
16 012
17 826
7,1%
7,1%
6,4%
5,8%
7,0%
5,5%
5,7%
5,0%
4,4%
5,2%
7,4% 7,9%
7,3% 7,7%
7,4% 7,0%
7,2% 7,5%
7,6% 7,4%
4,9% 5,0%
4,9% 4,5%
4,9% 5,0%
4,7% 4,4%
5,1% 5,2%
Autogrill S.p.A.
Mean Median
Source: Capital IQ (30/09/2016)
Exhibit 11 Contract Catering Public Company Valuation Trends (€ in millions) EV/Net Sales
Catering
EV/EBITDA
Company Name
LTM
2015
2014
2013
2012
LTM
2015
2014
2013
Aramark
1,0x
0,9x
0,9x
0,4x
0,4x
12,1x
11,3x
11,6x
Autogrill S.p.A.
0,6x
0,6x
0,7x
0,6x
0,8x
7,1x
7,2x
10,0x
Catering International & Services 0,4x na SA
0,5x
0,4x
0,5x
8,4x
na
6,9x
Compass Group PLC
1,5x
1,2x
1,2x
1,1x
0,9x
16,5x
13,6x
14,0x
Sodexo S.A.
0,9x
0,8x
0,7x
0,7x
0,6x
12,3x
10,9x
11,4x
0,9x 0,9x
0,9x 0,8x
0,8x 0,7x
0,6x 0,6x
0,6x 0,6x
11,3x 12,1x
10,7x 11,1x
10,8x 11,4x
Mean Median
EV/EBIT 2012
LTM
2015
2014
2013
5,5x
5,2x
20,4x
20,1x
22,1x
8,8x
12,3x
15,2x
16,4x
24,8x
5,8x
6,8x
11,9x
na
8,2x
6,6x
12,2x
10,4x
21,1x
17,4x
17,8x
15,3x
11,2x
8,4x
15,7x
13,5x
14,6x
14,9x
8,7x 8,8x
8,6x 8,4x
16,9x 15,7x
16,8x 16,9x
17,5x 17,8x
15,4x 14,9x
PER 2012
2011
LTM
2015
2014
2013
2012
11,2x
9,9x
10,1x
36,0x
32,8x
49,3x
0,0x
0,0x
29,2x
32,2x
11,3x
20,1x
29,4x
90,6x
21,0x
24,9x
7,6x
7,9x
44,4x
21,6x
20,7x
24,1x
18,9x
13,1x
11,7x
26,7x
21,8x
21,4x
40,3x
22,9x
11,4x
10,5x
22,4x
20,0x
24,8x
24,9x
18,4x
14,9x 11,4x
10,3x 10,5x
29,9x 26,7x
25,1x 21,8x
41,4x 24,8x
22,1x 24,1x
17,0x 18,9x
Source: Capital IQ (30/09/2016)
30
Section V: Contract Catering Companies Comparable M&A Transactions The median EV/EBIT and EV/EBITDA for the comparable contract catering M&A transactions are 13.3x and 7.7x, respectively. Exhibit 12 Contract Catering Comparable M&A Transactions (€ in millions except where mentioned in $) Date
Deal value Enterprise Value / (m€) Sales EBIT EBITDA
Target Company
Target Description
Bidder Company
Country
Feb-16
Oak Event AB
Sweden-based company which provides catering services.
ExeoTech Invest AB (publ) (NGM:ETIN MTF)
Sweden
Dec-15
Peppermint Events Limited
UK-based company which provides bars and catering Matthew Clark Wholesale services to outdoor events. Limited
UK
Jun-15
CH & Co Catering Limited
UK-based company which offers catering services to corporate and commercial customers.
UK
104
May-15
Reem al Bawadi Group
UAE-based company which operates a chain of Marka PJSC (DFM:MARKA) restaurants and provides outsourcing catering servcies for corporate and private clients.
UAE
76
May-15
The National Exhibition Centre Limited
UK-based venue management company operating spaces, a ticketing agency, a hospitality brand, a catering company.
UK
403
Dec-14
Allterrain Services Incorporated
Ghana-based company which povides remote site and Tsebo Outsourcing Group corporate catering services. Proprietary Limited
South Africa
17
Oct-14
Lexington Catering Limited
UK-based company which provides food catering services to blue chip businesses in London and the South East of England.
Dec-14
Malaysian Airline System Bhd
Malaysia-based company which provides air Khazanah Nasional Berhad transportation and related servcies. It provides equally catering and cabin handling services.
Jul-14
60% Stake in Gruppo Dac S.p.A. UK-based company which provides commercial and Unknown Stake in PCL 24/7 catering services in Italy. Limited Alliance in Partnership Limited UK-based company which provides catering services to the educational market in central England and West London.
Apr-14
Jul-13
Creativevents Limited (51% Stake)
Mar-13
CIBUS Business Meals Ltd. (81% Israel-based company providing catering services Stake)
Jan-13
MML Capital Partners; CH&Co Group
LDC (Managers) Limited
Elior (ENXTPA:ELIOR)
18
4
40
18
0,4x
Malaysia
3 283
321
1,0x
UK
7,5x
120
15
13
0,8x
17
5
0,6x
Sodexo Pass International S.A.S.
France
14
LSG Lufthansa Service Holding AG (34.3% Stake)
Germany-based company engaged in providing airline Brahim's Holdings Berhad catering, in-flight equipment and logistics, in-flight management services, and airport services
Malaysia
32
Nov-12
Alpha Flight Services BV
Netherlands-based company that provides inflight catering services
Oct-12
Crown Camp Service
Colombia-based provider of food and support services Compass Group Services Colombia S.A. (Subsidiary of Compass UK)
Gate Gourmet Holding Netherlands B.V.
0,3x
France
The Bidvest Group Ltd UK South Africa (JSE:BVT); Bidvest Logistics Ltd Key Capital Partners UK
UK-based provider of catering and hospitality services MITIE Group Plc to a broad range of clients in the exhibition, sporting, festival, culture and heritage sectors
Revenue
Netherlands
14
5
0,3x
Colombia
19
7
0,4x
15,0x
7,9x
31
Section V: Contract Catering Companies Comparable M&A Transactions Exhibit 12 Contract Catering Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Bidder Company
Target Description
Dec-11
Usas Ucak Servisi A.S. (56.25% Stake)
Turkey-based company that provides catering services Turkraft Holding A.S. for both domestic and international airline flights
Turkey
2
11
14,5x
Sep-11
Alessa Catering Services S.A.
Spain-based provider of catering services
Spain
51
23
0,5x
Sep-11
Lenotre SA
France-based company engaged in food and catering Sodexo SA services which also owns and operates gourmet shops and restaurants
France
105
75
0,7x
Sep-11
Puras do Brasil S.A.
Brazil-based company engaged in operating Sodexo SA restaurants and providing meal plan services to schools and companies
France
500
525
1,1x
Sep-11
Cygnet Catering Limited
UK-based company engaged in provides food and Compass Group Plc catering services to schools and colleges, operating individual contracts, and local authority group contracts
UK
11
6
0,5x
Aug-11
Bunzl Vending Services Limited
UK-based firm that distributes, installs, and maintains vending machines serving beverages, snacks, food, water, and cans and bottles
Autobar UK Limited
UK
36
Jun-11
Comissaria Aerea Brasilia Ltda.; Comissaria Aerea Brasil Ltda
Brazil-based catering company providing meals to airlines at the Brasilia and Goiania airports
Grupo RA Catering
Brazil
16
Jun-11
Shing Hin Catering Group Limited Hong Kong-based company that provides catering services to universities and other institutions
Hong Kong
7
Jun-11
Catersource (70% Stake)
USA-based conference and exhibition organizer for catering and event planning industry.
Compass Group Hong Kong Limited (Subsidiary of Compass UK) United Business Media Limited
UK
3
3
1,8x
Apr-11
Elior Nederland BV
Netherlands-based firm offering contract catering services
Netherlands
96
70
0,7x
Jan-11
RistoChef S.p.A.
Compass Group Nederland Holding BV (Subsidiary of Compass UK) Italy-based company engaged in providing restaurant Edenred Italia Srl (Edenred and airline catering services France subsidiary)
Italy France
12
Jan-11
Menke Menue
Germany UK
5
Dec-10
Alpha Flight Group Limited
Germany-based company engaged in food service Compass Group business operating in education and healthcare sectors Deutschland GmbH (Subsidiary of Compass UK) UK-based engaged in providing in-flight catering Dnata service
Nov-10
Life's A Party Group Ltd
Australia-based company engaged in food catering service, educational service and organising events
Australia UK
Nov-10
Alpha-Airfayre Limited (49% Stake)
UK-based company providing food catering services
Compass Group (Australia) Pty Ltd (Subsidiary of Compass UK) Alpha Flight UK Limited
Nov-10
SkyGourmet Catering Private Limited (74% Stake)
India-based company engaged in providing airline catering services
gategroup Holding AG
Switzerland
Serunion, S.A.
Country
United Arab Emirates
UK
Revenue
Deal value Enterprise Value / (m€) Sales EBIT EBITDA
Target Company
189
183
1,0x
71,1x
24,2x
17
8
4
1,1x
57
32
Section V: Contract Catering Companies Comparable M&A Transactions Exhibit 12 Contract Catering Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Target Description
Apr-10
Gruppo Copra
Italy-based provider of catering services to businesses, Elior SCA schools, healthcare, self-service restaurants, buffets and banquets
France
Dec-09
Mediterranea de Catering SL
Spain-based catering company
Alia Private Equity SCR SA Inversiones Ibersuizas SA
Spain
Oct-09
Vanyera3 SL
Spain-based catering company
Union Castellana de Alimentacion SA
Spain
Apr-09
Radhakrishna Hospitality Services India-based food service & hospitality solutions, Sodexo SA Pvt Ltd integrated facilities management and vending solutions
France
70
99
1,4x
Dec-08
G2M (50.00% stake)
Turkey
96
24
0,5x
Oct-08
Horkram Schulz Food Service AS Denmark-based catering company
Oct-08
ITP services, s.r.o.
Oct-08
Arjan van Dijk Groep (75.00% stake)
Sep-08
Centerplate, Inc.
Sep-08
Fast Food Servis
Aug-08
CAFE Group Capitol Vending
USA-based food service provider; US based local vending operation servicing central Indiana
Treat America Food Services Inc
Aug-08
7 Yedi Endustriyel Yemek
Turkey-based catering company
Yemekci
Jul-08
Qua.ser s.r.l.; Zilch Ristorazione s.r.l.
Italy-based company engaged in catering services.; Italy based provider of canteen and refectory outsourcing services.
Gruppo Gemeaz Cusin Srl
Jul-08
CLS Catering Services Limited (30.00% stake)
Canada-based provider of catering services in airlines LSG Lufthansa Service Europa Afrika GmbH
Germany
4
Jul-08
Olympic Catering SA (55.70% stake)
Greece-based inflight catering company
Alkmini Catering
Greece
24
Jul-08
Lufthansa Airport ServiceGesellschaft
Germany-based catering company which has its core competencies in food processing, logistics and service profitably on the ground
SSP Deutschland GmbH
Germany
Turkey-based catering company
Bidder Company
Actera Group
Citti Handelsges mbH & Co. KG
Czech Republic-based company engaged in managing Airest Slovakia Gastronomy food and beverage activities at Prague Airport and Retail sro Airest Terminal & Catering Business Holding Netherland-based event management services Jaarbeurs CateringGmbH Services provider. USA-based provider of food and related services, Kohlberg & Company LLC including concessions, catering and merchandise services in sports facilities, convention centers and other entertainment facilities Czech Republic-based provider of operator activities in Airest Terminal & Catering Food & Beverage at the airport in Prague Czech Business Holding GmbH Republic
Country
Revenue
Deal value Enterprise Value / (m€) Sales EBIT EBITDA
Target Company
13
74
70
0,9x
11,7x
9,5x
4,1x
5
Germany
80
Slovakia Austria
8
Netherlands
30
USA
503
150
0,3x
9,5x
Austria
6
15
2,6x
19,6x
USA
Turkey
Italy
27
33
Section V: Contract Catering Companies Comparable M&A Transactions Exhibit 12 Contract Catering Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Country
Revenue
Deal value Enterprise Value / (m€) Sales EBIT EBITDA
Target Company
Target Description
Bidder Company
Jun-08
Sardunya AS
Turkey-based catering group
ISS Turkey
Turkey
Jun-08
Cerfal Lecocq SA SDM
France-based company providing food catering and event organisation related services.
Holding SDPL Finorpa
France
Jun-08
Grupo Servicoin S.A. de C.V
Mexico-based catering company
ISS A/S
Jun-08
Yedi
Turkey-based company engaged in catering business. Bulutoglu Gida ve Lojistik Hizmetleri AS
Turkey
Jun-08
SCK DUS GmbH& Co KG Duesseldorf
Germany-based joint venture, created by Air Berlin and Gate Gourmet Switzerland SCK Sky Catering Kitchen GmbH Bordverpflegung & GmbH Co Service KG Ulm
Switzerland USA
May-08
Topic Caterers
Australy-based resources catering company
ISS A/S
Denmark
Apr-08
Polrest SA (formerly Gastropol Group Sp. z.o.o.)
Poland-based catering company and restaurant operator.
ISS A/S
Denmark
Apr-08
Aeromeal (majority stake)
Russia-based provider of airline catering services
LSG Lufthansa Service Europa Afrika GmbH
Germany
Mar-08
Cremonini s.p.a.
Italy-based company operating in the food sector. The Luigi Cremonini business interests include distribution, production and catering.
Italy
2 482
138
0,4x
Mar-08
Catering Partnership Holdings Limited
UK-based food services operator
Mitie Facilities Services Limited
UK
18
9
0,5x
Mar-08
Accor (GR Brasil Servicos de Alimentacao) (50.00% stake)
Brasil-based provider of catering services
Compass Group Plc
UK
383
119
0,6x
Feb-08
The Oggenfuss Catering by Switzerland-based restaurant operator and catering Wilfinger services GmbH (Majority service provider Stake)
Kofler & Kompanie AG
Jan-08
Redcoral Catering Limited (Insomnia) (51.00% stake)
Ireland-based coffee shops chain and catering company
Penninn H F
Jan-08
Patman Services
Indian provider of facilities management, housekeeping, Aramark Corporation business dining, catering and other services
Denmark
13
20
10
11,1x
7,0x
23,0x 13,3x
10,0x 7,7x
Germany
Iceland
16
USA
Average Median
1,4x 0,7x
Source: Capital IQ , Merger Market
34
Section VI: Human Resources Services Companies Comparable Public Company Valuations The Knowledge Centre’s Human Resources comparable public company analysis involves 25 publicly traded Human Resources Services companies (Exhibits 13 and 14). The median EBIT and EBITDA margins are 4.3% and 5.2%, respectively. The median EV/EBIT and EV/EBITDA are 9.0x and 6.4x, respectively. Exhibit 13 Human Resources Services Comparable Company Profit Trends (€ in millions)
EBITDA / Sales
HR Company Name
Country Last Year
Sales (Last)
%EBITDA (Last)
%EBIT (Last)
Market Enterprise cap. Value (Current) (Current)
EBIT / Sales
LTM
2015
2014
2013
2012
2011
LTM
2015
2014
2013
2012
2011
Adecco Group AG
SZ
31/12/15
20 117
5%
5%
8 846
10 272
5,3%
5,4%
5,0%
4,5%
4,3%
4,4%
5,0%
5,0%
4,6%
4,0%
3,7%
3,7%
CPL Resources plc
IR
30/06/16
433
4%
4%
173
140
3,7%
3,7%
3,7%
4,0%
3,7%
3,6%
3,6%
3,6%
3,5%
3,8%
3,5%
3,5%
DLSI
FR
31/12/15
190
5%
5%
44
54
5,4%
5,2%
4,0%
4,0%
2,3%
3,3%
5,1%
4,9%
3,6%
3,6%
1,8%
2,9%
Groupe CRIT SA
FR
31/12/15
1 940
6%
5%
636
708
5,9%
6,0%
5,7%
5,2%
3,6%
3,7%
5,0%
5,1%
4,9%
4,5%
3,0%
3,2%
Harvey Nash Group plc
UK
31/01/16
770
2%
2%
52
60
1,4%
1,7%
1,6%
1,3%
1,8%
2,1%
1,2%
1,5%
1,4%
1,0%
1,5%
1,7%
Hays plc
UK
30/06/16
4 817
7%
6%
2 151
2 109
6,9%
6,9%
4,8%
4,0%
3,7%
4,0%
6,4%
6,4%
4,2%
3,7%
3,4%
3,7%
Hydrogen Group PLC
UK
31/12/15
140
0%
-1%
10
9
-0,1%
-0,4%
1,7%
1,6%
2,3%
2,8%
-0,2%
-0,5%
1,5%
1,4%
2,0%
2,5%
Insperity, Inc.
US
31/12/15
2 323
4%
3%
1 511
1 361
4,1%
3,5%
2,9%
3,4%
4,0%
3,6%
3,6%
2,9%
2,2%
2,6%
3,3%
2,9%
Interquest Group PLC
UK
31/12/15
181
4%
3%
20
31
3,0%
3,6%
3,0%
2,2%
1,7%
3,3%
2,5%
3,1%
2,5%
1,9%
1,0%
2,5%
Kelly Services, Inc.
US
03/01/16
4 924
2%
1%
642
636
1,7%
1,6%
1,0%
1,4%
1,8%
1,7%
1,3%
1,2%
0,6%
1,0%
1,4%
1,1%
Korn/Ferry International
US
30/04/16
1 153
12%
10%
1 139
1 162
11,1%
12,1%
13,2%
12,5%
10,5%
12,0%
9,1%
10,1%
11,4%
10,4%
8,7%
10,6%
Monster Worldwide, Inc.
US
31/12/15
595
14%
7%
291
362
11,8%
14,1%
7,5%
12,7%
15,4%
17,4%
5,1%
7,3%
0,8%
4,9%
7,5%
9,9%
Parity Group plc
UK
31/12/15
97
1%
1%
10
17
1,7%
1,1%
1,1%
1,2%
0,9%
-0,2%
1,3%
0,5%
0,8%
1,0%
0,6%
-0,6%
Poolia AB (publ)
SW
31/12/15
711
3%
2%
23
24
2,9%
2,5%
1,3%
0,9%
-1,3%
2,2%
2,5%
2,1%
0,8%
0,3%
-2,1%
1,5%
Prime People Plc
UK
31/03/16
24
11%
10%
15
14
11,3%
11,3%
9,6%
7,9%
6,6%
8,3%
10,4%
10,4%
8,6%
7,1%
5,9%
7,4%
Randstad Holding NV
NE
31/12/15
19 219
5%
4%
8 488
9 553
4,6%
4,6%
4,1%
3,5%
3,0%
3,8%
3,9%
3,7%
3,0%
2,3%
1,6%
2,3%
Robert Half International Inc.
US
31/12/15
6 326
12%
11%
4 783
4 538
12,2%
12,4%
11,6%
10,5%
10,0%
8,0%
11,1%
11,4%
10,6%
9,3%
8,8%
6,6%
Robert Walters PLC
UK
31/12/15
788
3%
3%
304
283
3,1%
3,3%
3,2%
2,3%
2,0%
3,4%
2,7%
2,8%
2,7%
1,8%
1,5%
3,0%
SThree Plc.
UK
30/11/15
823
5%
5%
631
642
5,1%
5,1%
4,3%
3,8%
4,9%
6,1%
4,8%
4,9%
4,0%
3,3%
4,3%
5,5%
Synergie SA
FR
31/12/15
1 799
5%
5%
442
451
5,3%
5,4%
4,9%
4,4%
3,1%
3,6%
5,0%
5,0%
4,4%
3,9%
2,6%
TrueBlue, Inc.
US
25/12/15
3 347
5%
4%
986
893
5,3%
5,4%
5,4%
5,2%
5,2%
4,9%
3,7%
3,8%
4,0%
4,0%
3,8%
3,6%
Willis Towers Watson Public Limited Company UK 31/12/15
4 719
23%
18%
6 872
8 379
20,5%
22,5%
22,4%
22,8%
10,8%
26,6%
13,8%
18,0%
18,5%
18,9%
6,8%
22,6%
0
na
na
3
1
na
na
-13,1%
-8,2%
-37,2%
0,8%
na
na
-15,6%
-9,7%
-38,2%
0,3%
6,0% 5,2%
6,2% 5,2%
4,7% 4,1%
4,8% 4,0%
2,7% 3,6%
5,6% 3,6%
4,9% 4,3%
5,2% 4,3%
3,6% 3,5%
3,7% 3,6%
1,6% 3,0%
4,5% 3,2%
Work Group plc
UK
31/12/15
Mean Median
3,2%
Source: Capital IQ (30/09/2016)
35
Section VI: Human Resources Services Companies Comparable Public Company Valuations Exhibit 14 Human Resources Services Public Company Valuation Trends (€ in millions)
EV/Net Sales
HR
EV/EBITDA
EV/EBIT
PER
Company Name
LTM
2015
2014
2013
2012
LTM
2015
2014
2013
2012
LTM
2015
2014
2013
2012
Adecco Group AG
0,5x
0,6x
0,8x
0,7x
0,5x
9,3x
10,2x
15,3x
16,7x
11,9x
10,0x
11,0x
16,6x
18,7x
13,7x
CPL Resources plc
0,3x
0,3x
0,4x
0,5x
0,5x
8,7x
8,6x
10,4x
12,0x
12,7x
9,0x
8,9x
10,7x
12,4x
13,1x
DLSI
0,3x
0,2x
0,3x
0,2x
0,2x
5,1x
3,2x
6,7x
5,8x
7,1x
5,5x
3,4x
7,4x
6,5x
9,0x
6,6x
Groupe CRIT SA
0,3x
0,3x
0,4x
na
na
5,9x
5,7x
6,4x
na
na
6,9x
6,7x
7,5x
na
na
Harvey Nash Group plc
0,1x
0,1x
0,1x
0,1x
0,1x
5,1x
4,5x
5,9x
9,3x
4,3x
5,8x
5,1x
6,7x
11,8x
Hays plc
0,4x
0,4x
0,5x
0,5x
0,5x
6,4x
6,4x
11,3x
11,8x
13,2x
6,9x
6,9x
12,9x
12,5x
Hydrogen Group PLC
0,1x
0,0x
0,1x
0,2x
0,2x
na
na
7,6x
10,4x
6,8x
na
na
8,6x
12,2x
7,7x
na
Insperity, Inc.
0,5x
0,4x
0,4x
0,2x
0,2x
11,7x
10,7x
14,7x
6,9x
4,9x
13,4x
12,8x
19,7x
8,9x
6,0x
24,6x
Interquest Group PLC
0,2x
0,2x
0,3x
0,4x
0,2x
6,1x
6,8x
9,9x
19,8x
13,5x
7,4x
7,9x
11,9x
22,7x
23,0x
na
10,8x
Kelly Services, Inc.
0,1x
0,1x
0,1x
0,1x
0,1x
7,5x
8,3x
11,9x
9,7x
6,7x
9,9x
11,0x
19,6x
13,2x
8,7x
11,4x
Korn/Ferry International
0,9x
0,9x
1,3x
1,2x
0,8x
8,3x
7,8x
9,6x
8,1x
10,2x
9,2x
11,1x
11,4x
9,8x
Monster Worldwide, Inc.
0,6x
0,5x
1,0x
1,1x
0,6x
5,3x
3,5x
13,6x
8,5x
3,9x
12,2x
6,7x
125,5x
21,9x
8,0x
Parity Group plc
0,2x
0,2x
0,2x
0,2x
0,3x
9,7x
19,6x
16,1x
17,2x
36,6x
13,3x
39,2x
21,9x
22,0x
54,5x
Poolia AB (publ)
0,0x
0,3x
0,3x
0,3x
0,2x
1,4x
11,6x
23,3x
36,4x
na
1,6x
13,7x
37,0x
na
Prime People Plc
0,6x
0,5x
0,9x
0,6x
0,4x
5,2x
4,5x
9,0x
7,6x
6,5x
5,6x
4,9x
10,1x
Randstad Holding NV
0,5x
0,5x
0,6x
0,5x
0,4x
10,1x
10,3x
14,9x
14,1x
11,9x
12,0x
12,8x
Robert Half International Inc.
0,7x
1,1x
1,6x
1,3x
1,1x
5,5x
8,7x
13,8x
12,4x
11,5x
6,1x
9,5x
Robert Walters PLC
0,3x
0,3x
0,4x
0,4x
0,3x
10,9x
8,4x
12,5x
15,1x
12,9x
12,5x
9,7x
SThree Plc.
0,7x
0,5x
0,6x
0,7x
0,7x
14,6x
9,1x
13,3x
19,8x
13,8x
15,3x
Synergie SA
0,3x
0,3x
0,3x
0,3x
0,1x
4,7x
6,0x
6,2x
7,2x
4,7x
TrueBlue, Inc.
0,2x
0,4x
0,5x
0,6x
0,5x
4,4x
8,2x
10,0x
11,4x
3,0x na
2,9x 0,1x
2,6x 0,1x
2,5x 0,1x
10,6x na
13,4x na
12,8x na
0,5x 0,4x
0,6x 0,4x
0,6x 0,4x
0,5x 0,4x
7,5x 6,4x
8,4x 8,3x
11,6x 11,6x
Willis Towers Watson Public Limited Company 2,2x na Work Group plc
Mean Median
0,5x 0,3x
2015
2014
2013
2012
na
na
22,5x
24,1x
25,1x
12,9x
12,8x
14,5x
16,6x
17,0x
4,9x
8,3x
6,5x
27,6x
9,1x
8,3x
9,0x
13,2x
16,4x
5,5x
na
na
12,9x
22,9x
9,5x
14,3x
15,2x
15,2x
19,3x
18,2x
23,5x
na
na
17,8x
10,3x
32,1x
46,9x
25,0x
17,5x
17,7x
41,1x
na
13,4x
27,7x
14,3x
13,3x
115,6x
43,7x
19,4x
20,3x
28,0x
na
4,0x
na
na
na
na
na
na
na
na
na
1,6x
15,5x
na
na
na
8,5x
7,3x
7,7x
6,8x
13,7x
13,9x
14,0x
20,4x
21,8x
23,2x
14,4x
16,8x
29,6x
32,4x
142,5x
15,2x
14,0x
13,0x
10,5x
16,1x
25,7x
23,0x
23,8x
14,7x
19,6x
17,5x
18,8x
15,8x
25,0x
37,5x
32,8x
9,5x
14,2x
22,3x
15,6x
25,0x
15,0x
26,0x
65,2x
25,0x
5,0x
6,4x
6,8x
8,0x
5,7x
7,4x
10,5x
10,3x
14,6x
13,3x
9,4x
6,2x
11,5x
13,4x
14,8x
12,7x
na
14,6x
16,3x
25,7x
23,3x
11,2x na
23,3x na
15,8x na
16,8x na
15,4x na
13,5x na
37,1x na
27,9x 2,6x
21,9x 1,2x
24,0x na
20,8x na
na na
13,0x 11,4x
11,2x 10,4x
9,1x 9,0x
10,7x 9,5x
19,4x 13,8x
14,8x 13,4x
15,3x 12,9x
19,5x 12,1x
14,7x 14,6x
20,5x 19,4x
23,9x 20,8x
27,2x 23,3x
9,5x
LTM
Source: Capital IQ (30/09/2016)
36
Section VI: Human Resources Services Companies Comparable M&A Transactions The median EV/EBIT and EV/EBITDA for the comparable Human Resources Services M&A transactions are 12.8x and 9.9x, respectively. Exhibit 15 Human Resources Services Comparable M&A Transactions (€ in millions except where mentioned in $) Date
Target Description
Bidder Company
Feb-16
Qualtech Resourcing Ltd.
UK-based company which provides industry specific recruitment services to organizations in the UK
Capital Outsourcing Group Ltd
Jan-16
Human Capital Group AB
Sweden-based company which provides recruitment services.
NGS Group AB (publ)
Jan-16
Aon Hewitt LLC, RPO Business
USA-based company which provides recruitment process outsourcing business.
PeopleScout Inc.
USA
Dec-15
Paladin Consulting, Inc.
USA-based company which provides permanent and temporary professional staffing services in the United States.
General Employment Enterprises Inc.
USA
Dec-15
The Bartech Group, Inc.
USA-based provider of workforce management and staff Impellam Group PLC augmentation solutions to Fortune 1000 companies and (AIM:IPEL) other users of non-employee labor and business process outsourcing.
USA
116
Dec-15
Operating Businesses in the UK, Hong Kong and USA
UK-based company which comprises businesses of providing employee recruitment services.
UK
3
Dec-15
The Bartech Group, Inc.
USA-based company which provides workforce Impellam Group PLC management and staff augmentation solutions to Fortune 1000 companies.
UK
116
Dec-15
Allied Healthcare International Inc. USA-based company which provides healthcare staffing Aurelius SE & Co. KGaA services to the healthcare and social care industry in the United Kingdom.
Germany
400
27
0,1x
Nov-15
Proffice AB (Publ)
Sweden-based company which provides staffing, recruitment, and outplacement assistance services for companies.
Randstad Nordic AB
Sweden
442
186
Oct-15
Miura Challendy CO.,LTD.
Japan-based company which provides employees staffing solutions.
Crie Anabuki Inc.
Japan
3
Oct-15
Access Data Consulting Corporation
USA-based company which provides systems outsourcing and information systems professionals to Fortune 500 clients.
General Employment Enterprises Inc.
USA
19
Sep-15
JobKorea Ltd.
South-Korea based company which operates online recruitment portal.
H&Q Korea Partners Co., Ltd
Sep-15
RiseSmart, Inc.
USA-based outplacement firm which provides Randstad Holding NV contemporary career transition services that strengthen employer brands, improve retention, and re-engage talent.
Sep-15
A+ Teachers Limited
UK-based company which provides education Servoca Plc recruitment services for teachers in the United Kingdom.
Aug-15
Yingjiesheng
China-based company which operates an online recruitment Website/job search portal that focuses on graduates and college students in China.
Capita Resourcing Ltd.; Capita International Limited
51job Inc.
Country
Revenue
Deal value Enterprise Value / (€m) Sales EBIT EBITDA
Target Company
UK
Sweden
9
8
7
0,9x
66
19
6
13
South Korea
75
Netherlands
89
UK
5
China
37
0,3x
19,1x
15,6x
0,4x
13,5x
12,5x
0,1x
6,6x
0,7x
6,0x
37
Section VI: Human Resources Services Companies Comparable M&A Transactions Exhibit 15 Human Resources Services Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Target Description
Bidder Company
Country
Aug-15
Bluefin Resources Pty Limited
Australia-based company which offers permanent and contract recruitment services.
Outsourcing, Inc.
Japan
Jul-15
Lighthouse Placement Services, LLC
USA-based company which provides staffing services for engineering and technical professionals.
Staffing 360 Solutions, Inc.
USA
14
6
0,4x
Jun-15
7S Group GmbH
Germany-based company which provides human resource services in Germany and internationally.
ManpowerGroup Inc.
USA
310
137
0,4x
Jun-15
Towers Watson & Co.
UK
3 272
7 807
2,2x
Jun-15
PT Monroe Consulting Group
USA-based company which offers risk management and Willis Group Holdings Plc human resource consulting services. (nka:Willis Towers Watson Plc) Indonesia-based company which offers executive Empresaria Group plc search and recruitment services.
UK
2
Jun-15
Speed Group AB
Sweden-based company which provides solutions in Ratos AB staffing, recruitment, production, education, logistics, and warehousing.
Sweden
45
35
1,1x
Jun-15
SKILLED Group Limited
Australia-based company which provides staffing and related solutions to the public and private sectors.
Programmed Maintenance Services Ltd.
Australia
1 379
400
0,3x
Jun-15
7S Group GmbH
Germany-based company which provides human resource services in Germany and internationally.
ManpowerGroup Inc.
USA
310
137
0,4x
May-15
CTC Aviation Group Ltd. (nka:L-3 UK-based company which provides airline pilot training L-3 Communications CTC Ltd.) and crew resourcing services. Holdings Inc.
USA
May-15
Creative Circle, LLC
USA-based company which is a specialized staffing company.
USA
May-15
McDowall Associates Human Resource Consultants Ltd.
Canada-based company which provides compensation Gallagher Benefit Services consulting services. (Canada) Group Inc.
Apr-15
Atterro, Inc.
USA-based company which offers specialty staffing, Advantage Resourcing contingent workforce solutions, and recruitment process America, Inc. outsourcing services.
Apr-15
A. Soriano Corp.
Philippines-based company which provides temporary Anscor Consolidated health-care staffing services in the United States and the Corporation Philippines.
Apr-15
Proffice Aviation AB
Sweden-based company which offers staffing services for the Norwegian airline.
Apr-15
Clarius Group Limited
Australia-based company which provides employment Ego Pty Ltd. services for businesses and government in Australia, New Zealand, and Asia.
Mar-15
Knightsbridge Human Capital Canada-based company which provides talent mobility Lee Hecht Harrison, LLC Management Inc. (nka:Lee Hecht solutions. Harrison Knightsbridge)
On Assignment Inc.
OSM Aviation AS
Revenue
Deal value Enterprise Value / (€m) Sales EBIT EBITDA
Target Company
13
13,2x
11,0x
2,5x
8,3x
8,1x
6,4x
200
203
Canada
534
2,6x
19,7x
35
0,1x
5,4x
4
USA
236
Philippines
117
Norway
32
5
0,2x
Australia
127
3
0,1x
USA
41
59
1,4x
3,8x
38
Section VI: Human Resources Services Companies Comparable M&A Transactions Exhibit 15 Human Resources Services Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Target Company
Target Description
Bidder Company
Country
Revenue
Deal value Enterprise Value / (€m) Sales EBIT EBITDA
Mar-15
Grasshopper Staffing Incorporated USA-based company which provides staffing solutions. Tomichi Creek Outfitters
USA
Mar-15
Payroll 1, Inc.
USA-based company which provides payroll processing and tax filing services for employers in the United States.
USA
Jan-15
Networkers International Plc
UK-based company which provides permanent and Matchtech Group Plc temporary recruitment services in Africa, Asia, Europe, the Middle East, and the Americas.
Jan-15
Chandler Macleod Group Limited Australia-based company which provides human resource outsourcing (HRO)
RGF Staffing Melbourne two Pty Ltd.
Jan-15
EmployBridge Holding Company USA-based company which offers staffing services.
Eastern Staffing, LLC
USA
Dec-14
Panasonic Excel Staff Co., Ltd.
Tempstaff Co., Ltd.
Japan
Dec-14
Independent Benefit Services, Inc. USA-based company which provides advisory services Arthur J Gallagher & Co. human resources (HR) practices in the United States.
USA
32
Dec-14
KDE Holding Corporation
Japan-based company which offers placement services Outsourcing, Inc. for construction engineers.
Japan
9
Dec-14
Employability & Skills Group Ltd.
UK-based company which provides training services in Interserve plc the areas of employability and skills for businesses and individuals.
UK
32
Dec-14
RIG Energy Limited
UK-based company is an engineering recruitment agency.
Ganymede Solutions Limited
UK
7
1
0,2x
Dec-14
Global Outreach Ventures, Inc.
USA-based company which operates as a career consultation company.
Professional Diversity Network, Inc.
USA
4
2
0,4x
Dec-14
Ryukosha Netware Inc.
Japan-based company which provides human resources outsourcing business for fields such as systems operation and service support.
Internet Initiative Japan Inc.
Japan
9
4
0,4x
Nov-14
HeadHunter Company
Russia
33
121
Nov-14
Lorien Resourcing Limited
Russia-based company which provides online Elbrus Capital Investment resources for job hunting and personnel hiring for mid- Adviser; Goldman Sachs level and top managers. European Special Situations Group UK-based company which provides technology Impellam Group PLC recruitment consultancy services and solutions for organizations in the United Kingdom.
UK
81
Oct-14
PRO Unlimited, Inc.
USA-based company which develops contingent Investcorp Bank B.S.C.; workforce management solutions for Global and Fortune Bahrain Mumtalakat Holding 500 companies worldwide. Company B.S.C.
Bahrain
238
Japan-based company which offers temporary staffing services.
Heartland Payment Systems, Inc.
27
UK
227
93
0,4x
10,1x
9,3x
Australia
965
274
0,3x
13,8x
11,2x
344
435
114
0,4x
4,2x
39
Section VI: Human Resources Services Companies Comparable M&A Transactions Exhibit 15 Human Resources Services Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Target Company
Target Description
Bidder Company
Oct-14
Avanti Staff Corp.
Japan-based company which offers temporary staffing services.
Hulic Co., Ltd.
Japan
126
Sep-14
Ergalis SAS
France-based company which offers temporary employment services banking and financing sectors.
LFPI Gestion
France
160
80
0,5x
Aug-14
Aus-Com Training Services Pty Ltd.
Australia-based company which specializes in facilitating BJC Heavy Industries Public training and assessment programs for personnel in the Company Limited mining and civil industry.
Thailand
1
1
1,2x
Aug-14
Hawksmoor Search Limited
UK-based executive search boutique.
The Caldwell Partners International Inc.
Canada
1
Aug-14
RogenSi Worldwide Pty Ltd.
Australia-based company which provides training and professional development services for leaders, managers, and business professionals.
TeleTech Holdings Inc.
USA
25
Jul-14
Personalhuset Staffing Group AS Norway-based company which provides tailor-made staffing and recruitment services in the Nordic region.
The Adolfsen Group
Norway
May-14
Jobsite UK (Worldwide) Ltd.
UK-based company which operates an online career portal that connects jobseekers with recruiters/hiring managers.
StepStone Deutschland GmbH
Germany
Apr-14
Kelly Group Limited
South Africa-based company which provides employment services primarily in South Africa.
Paracon Holdings Ltd.
South Africa
Feb-14
JobStreet.com Pte. Ltd. and Agensi Pekerjaan Js Staffing Services Sdn. Bhd. Multiple Technology MSC Sdn. Bhd.
JobStreet.com Pte. Ltd. and Agensi Pekerjaan JS Staffing Services Sdn.
SEEK Asia Investments Pte. Ltd.
Singapore
Malaysia-based company offering training services to organizations, organizing educational activities and distributing training material and products.
Eduspec Holdings Berhad (KLSE:EDUSPEC)
Malaysia
Oct-13
Work Express Sp. z o.o. (80% Stake)
Poland based provider of recruitment services
Work Service S.A.
Poland
10
Sep-13
The Work Connection, Inc.
US based company engaged in providing recruiting, staffing and screening solutions
TrueBlue, Inc.
USA
15
Sep-13
KGIC Education Group, Inc.
Canada based company engaged in operating schools Loyalist Group ltd and colleges
Sep-13
The British School of Guangzhou China based international school
Nord Anglia Education (UK) Holdings PLC
Aug-13
Pan Am International Flight Academy
Aug-13
Orane Consultants Pvt. Ltd.; India based companies offering recruitment services, NuGrid Consulting Pvt Ltd; Stanton retained executive search services in the areas of Chase Mumbai FS banking, financial services and insurance
Nov-13
US based company provides flight training for airlines and aviation professionals
Country
Canada
Revenue
Deal value Enterprise Value / (€m) Sales EBIT EBITDA
Date
100
0,1x
42
3,7x
0,4x
110
104
19
0,1x
11,1x
8,9x
0,8x
7,7x
-
460
1
18
1
10
UK
21
ANA Holdings Inc.
Japan
105
RGF HR Agent India Private Limited
India
19
0,5x
40
Section VI: Human Resources Services Companies Comparable M&A Transactions Exhibit 15 Human Resources Services Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Target Company
Target Description
Bidder Company
Aug-13
ATC Group B.V.
Netherlands based company engaged in providing financial training services
Intertrust Group Holding S.A.
Aug-13
TrainSignal, Inc.
US based online training resource for serious IT professionals
Jul-13
Job Board Enterprises Limited
Jul-13
Country
Revenue
Deal value Enterprise Value / (€m) Sales EBIT EBITDA
Netherlands
303
Pluralsight LLC
USA
18
UK based provider of information technology (IT) recruitment services
Dice Holdings, Inc.
USA
6
9
1,6x
Informa Group Plc (Five Corporate Training businesses)
Switzerland based corporate training businesses of Informa Group Plc
Providence Equity Partners LLC
USA
147
137
1,3x
Jul-13
Nigel Frank International Limited (Undisclosed Stake)
UK based company engaged in providing recruitment services
ISIS Equity Partners LLP
UK
Jul-13
Fortune Industries, Inc.
US based holding company that provides full service human resources outsourcing services
CEP, Inc.
USA
44
13
0,3x
May-13
Prospero Learning Solutions Inc. Canada based company engaged in providing custom GP Strategies Corporation learning and content development solutions
USA
5
8
1,5x
May-13
Jobboom Inc.; Reseau Contact
Canada based company engaged in online dating services; Canada based company engaged in online recruitment services
Mediagrif Interactive Technologies Inc
Canada
Apr-13
Intelligence Holdings, Ltd.
Japan based recruitment, human resources services company in Japan as well as permanent placement services In China and South East Asia
Temp Holdings Co Ltd
Japan
632
554
1,0x
13,5x
Apr-13
Centre for Investor Education Pty Australia Based company providing investment forums Euromoney Institutional Ltd. (75% Stake) and training modules for pension funds, institutional Investor Plc investment bodies and entities operating in the financial services market
UK
3
11
4,5x
12,8x
2,4x 0,5x
21,5x 12,8x
11,0x
10,4x
26
9,3x
7,0x
48
Average Median
Source: Capital IQ , Merger Market
12,5x
14,2x 9,9x
41
Section VII: Waste Management Services Companies Comparable Public Company Valuations The Knowledge Centre’s Waste Management comparable public company analysis involves 23 publicly traded Waste Management & 7 Recycling companies (Exhibits 16 and & 17). The median EBIT and EBITDA margins for the Waste Management industry are 6.7% and 16.5%, respectively. The median EV/EBIT and EV/EBITDA for the Waste Management industry are 16.5x and 9.0x, respectively. The median EBIT and EBITDA margins for the Recycling industry are 0.3% and 4.1%, respectively. The median EV/EBIT and EV/EBITDA for the Recycling industry are 13.8x and 7.4x, respectively. Exhibit 16 Waste Management & Recycling Comparable Company Profit Trends (€ in millions)
EBITDA / Sales
Waste Management Company Name
Country Last Year
Sales (Last)
%EBITDA (Last)
%EBIT (Last)
Market Enterpris cap. e Value (Current) (Current)
LTM
2015
2014
2013
EBIT / Sales 2012
LTM
2015
2014
2013
2012
ALBA SE
GE
31/12/15
1 356
1%
1%
486
476
0,8%
1,4%
1,0%
-0,2%
0,8%
0,0%
0,6%
0,1%
-1,2%
-0,1%
Augean plc
UK
31/12/15
69
19%
11%
59
74
19,2%
19,4%
17,9%
17,9%
21,4%
10,2%
11,0%
11,0%
11,8%
12,5%
Casella Waste Systems Inc.
US
31/12/15
488
17%
5%
350
799
18,0%
16,7%
17,4%
16,0%
18,6%
6,7%
5,2%
6,1%
3,9%
6,6%
Clean Harbors, Inc.
US
31/12/15
2 922
15%
7%
2 416
3 561
14,7%
15,1%
15,0%
14,2%
16,9%
5,1%
6,7%
6,9%
6,7%
9,5%
Cleanaway Waste Management Limited
AU
30/06/16
1 521
18%
7%
1 263
1 957
17,5%
17,5%
15,4%
24,0%
21,3%
6,6%
6,6%
5,6%
7,8%
8,9%
Covanta Holding Corporation
US
31/12/15
1 415
22%
10%
1 786
4 095
21,3%
22,1%
27,1%
29,2%
30,4%
8,7%
9,6%
13,8%
15,4%
17,0%
Fomento de Construcciones y Contratas, S.A. SP
31/12/15
6 508
13%
6%
2 266
6 770
12,8%
12,8%
12,8%
7,3%
11,1%
5,7%
6,1%
6,4%
1,0%
4,5%
Gruppo Waste Italia S.p.A.
IT
31/12/15
119
16%
-1%
114
227
14,5%
15,9%
17,7%
23,9%
6,6%
-6,8%
-1,3%
-3,3%
9,2%
2,9%
Groupe Pizzorno Environnement
FR
31/12/15
222
17%
4%
82
129
17,0%
16,7%
15,3%
16,9%
17,3%
4,4%
4,5%
3,5%
5,7%
6,6%
Heritage-Crystal Clean, Inc
US
02/01/16
312
7%
2%
265
304
6,9%
7,3%
4,7%
6,5%
5,0%
2,0%
2,4%
0,9%
3,1%
1,8%
Lassila & Tikanoja Oyj
FI
31/12/15
646
14%
8%
664
752
13,6%
13,9%
13,8%
12,8%
12,8%
7,6%
7,7%
7,5%
6,6%
6,5%
Newalta Corporation
CA
31/12/15
222
18%
-1%
90
296
12,0%
17,8%
24,7%
24,4%
17,9%
-11,7%
-0,8%
13,1%
13,8%
9,3%
Perma-Fix Environmental Services Inc.
US
31/12/15
56
8%
2%
53
64
3,1%
7,7%
5,1%
-4,6%
-2,0%
-3,3%
1,7%
-2,4%
-8,5%
-3,5%
Promotora Ambiental SAB de CV
MX
31/12/15
158
18%
7%
140
196
18,0%
17,7%
15,0%
18,3%
21,1%
7,5%
7,5%
6,3%
7,3%
7,4%
Republic Services, Inc.
US
31/12/15
11 292
28%
17%
10 630
16 729
27,9%
28,1%
25,7%
27,7%
28,2%
16,4%
16,6%
14,5%
16,3%
16,8%
Séché Environnement SA
FR
31/12/15
465
16%
8%
247
551
16,5%
16,0%
13,2%
13,7%
14,1%
8,1%
8,5%
6,1%
6,9%
6,8%
Shanks Group plc
UK
31/03/16
699
11%
5%
472
788
10,8%
10,8%
11,5%
14,0%
10,7%
4,9%
4,9%
5,0%
6,9%
3,3%
Stericycle, Inc.
US
31/12/15
2 664
23%
18%
6 282
9 058
21,3%
22,6%
26,8%
29,6%
28,9%
15,3%
18,3%
22,7%
25,5%
24,9%
SUEZ SA
FR
31/12/15
15 135
14%
7%
7 831
18 502
13,9%
14,2%
14,0%
15,0%
14,4%
7,0%
7,2%
6,9%
7,9%
7,5%
US Ecology, Inc.
US
31/12/15
699
22%
14%
701
635
22,8%
22,1%
25,5%
35,0%
33,9%
15,1%
14,1%
17,6%
26,3%
24,0%
Veolia Environnement S.A.
FR
31/12/15
24 965
10%
5%
7 001
16 584
10,3%
10,0%
9,6%
9,0%
8,8%
5,0%
4,8%
4,2%
3,5%
3,8%
Waste Connections US, Inc.
US
31/12/15
na
33%
21%
0
1 859
32,2%
33,5%
34,3%
33,9%
31,4%
19,0%
20,8%
21,9%
21,3%
19,7%
Waste Management, Inc.
US
31/12/15
16 091
26%
16%
16 965
26 767
27,2%
26,1%
25,3%
24,3%
24,2%
16,9%
16,0%
14,1%
14,7%
14,7%
16,2% 16,5%
16,7% 16,7%
16,9% 15,3%
17,8% 16,9%
17,1% 17,3%
6,5% 6,7%
7,8% 6,7%
8,2% 6,4%
9,2% 7,3%
9,2% 7,4%
Mean Median
Source: Capital IQ (30/09/2016)
42
Section VII: Waste Management Services Companies EBITDA / Sales
Recycling %EBITDA (Last)
%EBIT (Last)
Market Enterprise cap. Value (Current) (Current)
Country
Last Year
Sales (Last)
ALBA SE
GE
31/12/15
1 356
1%
1%
486
Aurea SA
FR
31/12/15
176
5%
2%
59
Commercial Metals Company
US
31/08/15
5 343
8%
6%
Daiseki Co. Ltd.
JN
29/02/16
438
21%
Derichebourg
FR
30/09/15
2 356
Industrial Services of America, Inc.
US
31/12/15
41
Sims Metal Management Limited
US
30/06/16
3 172
2%
Company Name
EBIT / Sales
LTM
2015
2014
2013
2012
2011
LTM
2015
2014
2013
2012
476
0,8%
1,4%
1,0%
-0,2%
0,8%
1,9%
0,0%
0,6%
0,1%
-1,2%
-0,1%
57
4,1%
5,3%
5,0%
5,0%
6,7%
6,2%
0,3%
1,8%
1,5%
1,7%
3,4%
1 615
2 147
9,0%
7,8%
5,5%
5,2%
4,9%
3,8%
6,3%
5,5%
3,5%
3,2%
3,1%
15%
726
555
22,1%
20,9%
19,5%
21,5%
20,1%
20,5%
15,7%
15,5%
16,0%
17,3%
15,0%
5%
2%
445
723
5,1%
5,2%
1,7%
2,2%
-12%
-18%
12
17
-1%
1 325
1 154
Mean Median
-10,3% -12,4%
4,5%
4,7%
4,8%
7,3%
1,6%
1,0%
2,1%
-4,7%
-2,8%
1,3%
0,2%
-17,4% -17,5%
-7,2%
-5,7%
-0,9%
1,6%
1,6%
4,0%
3,3%
-0,3%
1,6%
-1,1%
-1,1%
2,0%
1,5%
-2,0%
4,6% 4,1%
4,2% 5,2%
5,0% 4,5%
5,3% 4,7%
5,5% 4,8%
5,9% 3,8%
0,8% 0,3%
1,0% 1,8%
2,5% 1,6%
2,5% 1,5%
2,9% 2,1%
2014
2013
2012
Source: Capital IQ (30/09/2016)
Comparable Public Company Valuations Exhibit 17 Waste Management Public Company Valuation Trends (€ in millions) EV/Net Sales
Waste Management Company Name
LTM
2015
2014
ALBA SE
0,5x
0,4x
Augean plc
1,0x
0,9x
Casella Waste Systems Inc.
1,6x
Clean Harbors, Inc.
EV/EBITDA
2013
2012
LTM
2015
2014
0,4x
na
0,4x
56,9x
28,6x
1,0x
1,2x
1,2x
5,1x
4,4x
1,5x
1,4x
1,4x
1,6x
9,0x
1,4x
1,2x
1,3x
1,3x
2,1x
9,2x
Cleanaway Waste Management Limited 1,4x Covanta Holding Corporation
EV/EBIT
2013
2012
38,8x
na
5,7x
6,9x
8,9x
7,9x
8,1x
8,8x
PER
LTM
2015
2014
2013
44,2x
na
62,3x
309,0x
na
5,5x
9,5x
7,7x
9,2x
10,4x
8,8x
8,7x
24,2x
28,7x
22,5x
35,9x
8,9x
12,3x
26,4x
18,2x
19,2x
2012
LTM
2015
na
65,6x
47,9x
na
na
18,9x
9,3x
141,8x
29,2x
10,0x
na
18,3x
24,4x
na
na
na
na
na
19,0x
21,7x
113,3x
63,8x
na
35,3x
26,0x
1,5x
1,0x
1,0x
1,9x
7,8x
8,3x
6,4x
4,2x
9,1x
20,6x
22,0x
17,5x
13,1x
21,9x
27,0x
40,1x
na
48,8x
na
2,8x
2,9x
3,2x
3,0x
3,2x
13,2x
13,1x
11,8x
10,1x
10,7x
32,4x
30,2x
23,1x
19,2x
19,1x
43,4x
32,5x
na
na
22,3x
Fomento de Construcciones y Contratas, S.A. 1,3x
1,3x
1,5x
1,5x
1,1x
10,0x
9,9x
12,1x
21,1x
10,4x
22,3x
20,7x
24,0x
147,6x
25,2x
161,7x
na
na
na
na
Gruppo Waste Italia S.p.A.
2,0x
2,2x
6,7x
2,4x
0,9x
13,7x
13,9x
38,1x
10,2x
13,0x
na
na
na
26,5x
29,7x
na
na
na
36,2x
46,8x
Groupe Pizzorno Environnement
0,6x
0,6x
0,6x
0,7x
na
3,8x
3,5x
4,2x
4,1x
na
14,5x
12,8x
18,2x
12,3x
na
11,8x
10,4x
na
16,3x
13,5x
Heritage-Crystal Clean, Inc
1,0x
0,8x
1,0x
1,1x
0,9x
14,5x
11,1x
21,0x
17,4x
18,5x
50,6x
33,9x
112,8x
36,3x
51,3x
na
187,9x
na
70,2x
116,1x
Lassila & Tikanoja Oyj
1,2x
1,1x
1,2x
1,0x
0,9x
8,5x
7,8x
8,6x
7,5x
6,9x
15,4x
14,1x
15,8x
14,6x
13,6x
16,2x
15,8x
38,1x
25,1x
14,7x
Newalta Corporation
2,1x
1,3x
2,7x
3,6x
1,5x
17,9x
7,4x
10,8x
14,9x
8,2x
na
na
20,3x
26,2x
15,9x
na
na
na
51,5x
17,4x
Perma-Fix Environmental Services Inc.
1,3x
0,8x
0,9x
0,9x
0,4x
40,6x
10,9x
17,6x
na
na
na
50,0x
na
na
na
na
na
na
na
na
Promotora Ambiental SAB de CV
1,2x
1,1x
1,0x
1,1x
1,1x
6,9x
6,4x
6,5x
6,1x
5,4x
16,5x
15,1x
15,5x
15,3x
15,2x
20,1x
20,7x
38,7x
32,9x
39,9x
Republic Services, Inc.
1,7x
2,6x
2,5x
2,3x
2,3x
5,9x
9,3x
9,6x
8,3x
8,3x
10,1x
15,7x
17,1x
14,0x
13,9x
11,7x
21,6x
26,2x
21,1x
21,0x
Séché Environnement SA
1,2x
1,1x
1,1x
1,1x
1,0x
7,1x
6,9x
8,3x
8,1x
7,4x
14,4x
13,1x
18,1x
16,2x
15,5x
15,8x
13,4x
28,2x
34,2x
na
Shanks Group plc
1,1x
1,1x
1,3x
1,2x
1,0x
10,4x
10,2x
11,2x
8,5x
9,6x
23,0x
22,5x
25,8x
17,1x
30,9x
na
na
na
na
na
Stericycle, Inc.
3,0x
4,6x
5,3x
5,2x
5,5x
14,0x
20,6x
19,7x
17,5x
19,1x
19,5x
25,4x
23,2x
20,3x
22,1x
25,3x
40,1x
36,2x
31,0x
34,3x
SUEZ SA
1,2x
1,2x
1,3x
1,2x
1,0x
8,7x
8,8x
9,3x
7,9x
6,6x
17,2x
17,1x
18,9x
15,0x
12,7x
17,8x
21,5x
22,3x
20,9x
20,6x
US Ecology, Inc.
0,9x
2,1x
3,2x
4,1x
3,0x
4,1x
9,7x
12,6x
11,6x
9,0x
6,2x
15,1x
18,2x
15,4x
12,7x
16,6x
36,1x
28,0x
27,7x
18,6x
Veolia Environnement S.A.
0,6x
0,8x
0,8x
0,7x
0,7x
6,2x
8,4x
8,6x
8,3x
8,5x
12,8x
17,6x
19,6x
21,3x
19,8x
20,1x
25,7x
42,4x
na
12,5x
Waste Connections US, Inc.
0,9x
1,0x
1,0x
1,0x
1,3x
2,8x
2,9x
2,8x
3,1x
4,1x
4,7x
4,7x
4,4x
4,9x
6,5x
na
na
0,0x
0,0x
0,0x
Waste Management, Inc.
1,8x
2,7x
2,4x
2,2x
2,1x
6,8x
10,5x
9,4x
9,0x
8,7x
10,8x
17,1x
16,9x
14,9x
14,4x
11,7x
34,3x
18,8x
202,0x
22,2x
1,4x 1,2x
1,5x 1,2x
1,9x 1,3x
1,8x 1,2x
1,6x 1,2x
12,3x 8,7x
10,0x 8,9x
12,6x 9,4x
9,6x 8,5x
11,1x 8,7x
18,5x 16,5x
22,1x 17,6x
36,6x 18,9x
24,6x 16,2x
19,8x 17,5x
45,0x 20,1x
40,1x 30,8x
26,3x 28,0x
43,6x 32,9x
27,3x 20,6x
Mean Median
Source: Capital IQ (30/09/2016)
43
EV/Net Sales
Recycling Company Name
LTM
2015
2014
ALBA SE
0,5x
0,4x
Aurea SA
0,3x
0,4x
Commercial Metals Company
0,5x
Daiseki Co. Ltd.
EV/EBITDA
2013
2012
LTM
2015
2014
0,4x
na
0,4x
56,9x
28,6x
0,4x
0,4x
0,3x
8,4x
6,8x
0,4x
0,4x
0,5x
0,3x
5,5x
1,4x
1,5x
2,0x
1,5x
1,6x
Derichebourg
0,3x
0,3x
0,3x
0,4x
Industrial Services of America, Inc.
0,6x
0,4x
0,4x
0,4x
Sims Metal Management Limited
0,4x
0,4x
0,3x
0,6x 0,5x
0,5x 0,4x
0,6x 0,4x
Mean Median
EV/EBIT
2013
2012
LTM
2015
2014
38,8x
na
7,9x
8,0x
44,2x
na
62,3x
309,0x
3,9x
102,6x
19,7x
27,3x
5,4x
7,7x
9,6x
7,2x
7,9x
7,6x
12,2x
6,1x
7,0x
10,2x
7,0x
8,0x
8,6x
9,4x
0,4x
6,5x
0,2x
na
5,9x
6,8x
8,5x
9,0x
19,0x
na
na
na
17,6x
na
0,3x
0,3x
22,6x
22,7x
6,9x
9,4x
na
0,6x 0,4x
0,5x 0,3x
17,7x 7,4x
12,7x 6,9x
13,1x 7,8x
8,5x 8,5x
15,0x 8,5x
PER
2013
2012
LTM
2015
2014
2013
2012
na
na
65,6x
47,9x
24,1x
7,7x
56,3x
41,1x
na
na
18,9x
13,2x
41,2x
15,9x
11,4x
13,9x
11,7x
16,3x
29,8x
24,3x 7,9x
12,5x
8,7x
10,7x
21,3x
24,3x
27,1x
20,7x
24,2x
14,2x
19,0x
41,5x
20,1x
28,6x
16,8x
na
na
12,2x
na
na
na
na
27,8x
na
na
na
na
na
na
13,3x
20,5x
na
na
na
18,5x
na
na
34,5x 13,8x
22,6x 14,2x
65,5x 16,1x
22,1x 20,5x
12,4x 11,0x
35,6x 28,2x
28,4x 24,3x
18,8x 17,4x
30,6x 29,8x
17,5x 18,9x
Source: Capital IQ (30/09/2016)
44
Section VII: Waste Management Services Companies Comparable M&A Transactions The median EV/EBIT and EV/EBITDA for the comparable Waste Management M&A transactions are 15.3x and 6.4x, respectively. Exhibit 18 Waste Management Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Deal value Date
Target Description
Bidder Company
Dec-15
M2 Renewables. Inc.
UK-based company engaged in the treatment of domestic wastewater
Hydro International plc (AIM:HYD)
UK
50
10
Nov-15
Gateway Rolloff Services. L.P.
USA-based company providing waste management services in the United States
National Waste Management Holdings. Inc.
USA
2
3
1,5x
Nov-15
Rock River Environmental Services. Inc.
USA-based company providing waste disposal and composting, waste hauling and recycling, in northern Illinois.
Waste Connections Inc. (NYSE:WCN)
USA
62
207
3,0x
Oct-15
Waste Recovery Enterprises. LLC USA-based company providing waste processing and National Waste Management disposal services Holdings. Inc.
USA
1
5
Oct-15
Christian Disposal. LLC
USA-based company providing solid waste collection
Meridian Waste Solutions. Inc. (OTCPK:MRDN)
USA
Aug-15
Guangzhou LvYou Industrial Waste Recycling and Treatment Co., Ltd. Johnson Cleaning Services Co. Ltd.
China-based company engaged in the recycling, disposal and utilization of industrial wastes
CT Environmental Group Limited
China
14
82
Hong Kong
5
27
Aug-15
Hong Kong-based company providing cleaning and iOne Holdings Ltd waste management services in Hong Kong and China. (SEHK:982); Hong Kong Huafa Investment Holdings Ltd
Country
Revenue
(€m)
Enterprise Value /
Target Company
Sales
EBIT
EBITDA
29,7x
29,7x
3,4x
135,7x
25,0x
1,4x
16,9x
17
Jul-15
EGF - Empresa Geral de Fomento Portugal-based company engaged in waste SA (95% Stake) management
Urbaser S.A.; Mota-Engil SGPS SA
Spain
150
Jun-15
MS. Industrial Services Limited
UK-based company providing environmental waste management and inspection services
Primary Capital Limited
UK
27
Jun-15
ECO Industrial Environmental Engineering Pte Ltd.
Singapore-based company providing waste management services
Beijing Capital (Hong Kong) Limited
Hong Kong
35
163
Jun-15
Ladurner Ambiente SpA
Italy-based company designing. building. and operating plants for treating of municipal solid waste, civil and industrial wastewater producing energy from solid and liquid waste and agricultural biomass.
China
65
66
May-15
Advanced Waste Services. Inc.
USA-based company providing hazardous and nonhazardous waste collection and recycling
Zoomlion Heavy Industry Science and Technology Co.. Ltd. (SZSE:000157); Mandarin Capital Management SA; China Development Bank Capital Corporation Ltd. Corporation Covanta Holding
USA
43
(NYSE:CVA)
May-15
Altergis SAS
France-based company which provides energy, climatic, and environmental services.
Veolia Environnement S.A.
Apr-15
North Maine Utilities
USA-based water and wastewater treatment facility
Aqua Illinois, Inc.
Mar-15
Indaver N.V.
Belgium-based company providing waste management Katoen Natie NV services for industrial businesses and public authorities in Belgium.NL, Ireland. Germany. UK. Italy. and Portugal.
France
70
USA Netherlands
50
0,7x
16 519
607
1,4x
14,2x
6,4x
45
Section VII: Waste Management Services Companies Comparable M&A Transactions Exhibit 18 Waste Management Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Deal value Date
Target Description
Feb-15
Shanghai Biofit Environmental Technology Co., Ltd.
China-based company engaged in organic wastewater Xi Hua Shanghai Investment treatment, sludge treatment and disposal Management Company Ltd
China
Feb-15
Thermo Fluids. Inc.
USA-based company providing environmental and oil recycling services in the Western United States.
Safety-Kleen. Inc.
USA
74
Jan-15
BCG NZ Investment Holding Limited
New Zealand-based company offering collection and treatment of solid and liquid waste.
Beijing Capital (Hong Kong) Limited
Hong Kong
242
Dec-14
Essencis Soluções Ambientais S.A.
Brasil-based company providing waste management and treatment, and environmental recovery solutions.
Solví Participações S.A.
Brazil
156
3,3x
Nov-14
Ecoenergy Srl
Italy-based company engaged in the collection of recoverable residues, and grading and treating of special wastes
Herambiente Recuperi Srl
Italiy
11
1,0x
Nov-14
CITIC Envirotech Ltd. (SGX:U19) Singapore-based company providing environmental engineering services in China, UK and Malaysea
China
1 417
6,2x
24,1x
21,1x
Nov-14
Geotea S.p.A.
KKR China Water Investment Holdings Ltd; CITIC Environment Protection Co. Waste Italia S.p.A.
Italy
84
2,6x
12,2x
5,7x
Oct-14
Guangzhou Lvyou Industrial China-based company which collects, treats, recycles, Waste Recycle And Treatment Co disposes, and utilizes industrial wastes Ltd
Guangzhou Xintao Wastewater Treatment Company Limited
China
82
Oct-14
Deffenbaugh Disposal. Inc.
USA-based company which offers commercial and Waste Management residential waste disposal, collection, and transportation Holdings. Inc. services.
USA
322
Sep-14
Dongguan Fenggang Yantian Fangzhong Water Services Co., Ltd.
China-based company engaged in providing wastewater treatment services
China
10
Jul-14
Wheelabrator Technologies Inc.
USA-based company which develops, owns, and Granite Acquisition. Inc. operates energy-from-waste facilities in North America, Europe, and China.
USA
1 446
2,3x
Jul-14
Fanhe (Hulu Island) Water Investment Co.. Ltd
China-based company offering sewage treatment services.
Beijing Capital Co..Ltd (SHSE:600008)
China
12
3,1x
Jul-14
Guodian Langxinming Puyang Water Co.. Ltd.
China-based company which constructs and operates waste water treatment plants.
China
7
Jul-14
SIA Vides Konsultaciju BirojsServiss
Latvia-based company providing environmental consulting, tank cleaning, and hazardous waste handling services.
Chongqing Kangda Environmental Protection Industry (Group) Co.. Ltd. Ragn-Sells AS
Estonia
2
Jun-14
Veolia E.S. Matières Résiduelles Inc.
Canada-based company offering services for collection, Services Matrec Inc. transportation, disposal and recycling of trash and industrial waste to municipalities.
Canada
17
Italiy-based company operating non-hazardous industrial waste treatment and disposal and bio gas plants.
Bidder Company
SIIC Environment Holdings (Weifang) Co., Ltd.
Country
Revenue 6
(€m)
Enterprise Value /
Target Company
5
Sales
EBIT
EBITDA
0,7x
0,8x
5,0x
46
Section VII: Waste Management Services Companies Comparable M&A Transactions Exhibit 18 Waste Management Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Deal value Date
Target Company
Target Description
Bidder Company
Apr-14
Qingyuan Luyou Environmental Protection Technology Co. Ltd
China-based company engaged in the treatment of municipal and industrial sludge and solid waste
CT Environmental Group Limited
Apr-14
Tri-Line Disposal Inc. and Deuce Canada-based company providing waste collection and GFL Environmental Inc. Disposal Ltd. recycling servcies for customers throughout the greater Edmonton area.
Apr-14
Nanchang Xinguan Energy China-based company providing waste disposal Development Co.. Ltd. and Hefei services. Xinguan Energy Development Co.. Ltd.
Apr-14
Country
Revenue
(€m)
Enterprise Value / Sales
China
15
Canada
47
Shenzhen Dongjiang Environmental Renewable Energy Company Limited
China
11
Screwbean Landfill. LLC and S.A. USA-based company operating and managing waste Dunn & Company. LLC landfills.
R3 Treatment Inc.
USA
22
Apr-14
Stericycle Environmental Solutions. Inc.
USA-based company offering recycling, industrial cleaning, and environmental services.
Stericycle. Inc. (NasdaqGS:SRCL)
USA
227
Apr-14
Sostenya Plc
UK-based company providing waste management and Gruppo Waste Italia S.p.A. disposal services in Italy. (BIT:WIG)
Italia
59
0,7x
Mar-14
SteriHealth Limited
Australy-based company provides medical waste collection and disposal services in Australia.
Australia
31
1,1x
Mar-14
Beijing Capital Waste Management New Zealand-based company engaged in the Beijing Capital Group Co.. NZ Ltd. collection, transportation, treatment, and disposal of solid Ltd. residential, commercial, in New Zealand.
China
578
Feb-14
Newpark Environmental Services. USA-based company providing waste management L.P. solutions.
Ecoserv. LLC
USA
73
Feb-14
UAB Ecoservice
Lithuania-based company specialising in waste management
AS BaltCap
Estonia
15
Jan-14
Shenzhen City Li Sai Industrial Development Limited
China-based company offering treatment of domestic wastewater, pollution and noise
New China Water (Nanjing) Renewable Resources Investment Company Ltd Star Atlantic Waste Holdings. L.P. USA-based company which offers solid waste collection, BTG Pactual Group treatment and disposal services. (BOVESPA:BBTG11)
China
7
Brazil
68
Nov-13
Dale Service Corporation
USA
21
Nov-13
Hunan Renhe Huiming China-based company owning and operating domestic Jiangsu WELLE Environmental Technology Limited waste landfill sites. Environmental Co..Ltd (SZSE:300190) Inutec Limited UK-based company providing integrated radioactive Tradebe S.a.r.l waste management and decommissioning services in the UK and internationally.
China
8
France
10
Singapore
4
Dec-13
Nov-13
Oct-13
Sembramky Environmental Management Private Limited
Catilina Nominees Proprietary Limited
USA-based company engaged in providing wastewater Virginia-American Water collection and treatment services Company
India-based company operating biomedical waste Ramky International treatment facilities and providing collection and treatment (Singapore) Pte Limited services.
EBIT
EBITDA
3,6x
1,7x
8,8x
5,4x
47
Section VII: Waste Management Services Companies Comparable M&A Transactions Exhibit 18 Waste Management Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Deal value Date
Target Company
Target Description
Bidder Company
Country
Oct-13
Beijing CM Environmental Engineering Co. Ltd
China-based waste water treatment company
Luoyang Longhua Heat Transfer & Energy Conservation Co Ltd
China
Sep-13
Evergreen Oil, Inc.
USA-based company engaged in collecting, handling, and recycling of automotive and industrial wastes
Clean Harbors, Inc.
USA
Sep-13
OSS Group, Ltd.
UK-based company engaged in the waste oil and hazardous waste collection, and oil recycling activities
Hydrodec Group Plc
Australia UK USA
Sep-13
Tomoe Corporation
Japan-based company engaged in the collection, transportation, and treatment of industrial wastes
Natoco Co.. Ltd. (JASDAQ:4627)
Sep-13
Revenue 33
(€m) 60
Enterprise Value / Sales 1,7x
EBIT 11,7x
0,2x
Japan
8
0,4x
3,8x
AMGA Azienda Multiservizi S.p.A Italy-based company distributing gas, electricity, and Hera S.p.A. (BIT:HER) water in the unicipality of Udine and surrounding areas.
Italy
184
1,5x
15,3x
Aug-13
Terra Renewal Services, Inc.
USA-based non-hazardous waste management company
Darling International Inc.
USA
90
Aug-13
Rothsay Ltd.
Canada-based company engaged in the collection, processing and recycling of animal by-products
Darling International Inc.
USA
462
Aug-13
Oilfield Water Lines LP
USA-based company providing water disposeal services
NGL Energy Partners LP
USA
225
Aug-13
AVR-Afvalverwerking B.V.
Netherlands-based company engaged in the business Consortium led by Cheung of waste processing and production and supply of Kong Infrastructure Holdings renewable energy from the incineration of waste Limited
HongKong
944
Jul-13
Sims Metal Management Limited USA-based scrap metal facility in Mississippi and auto (Scrap Metal Facility in Mississippi) shredder in Birmingham
USA
9
Sep-13
Evergreen Oil, Inc.
US-based company engaged in collecting, handling, and recycling of automotive and industrial wastes
USA
45
Sep-13
OSS Group, Ltd.
UK-based company engaged in the waste oil and hazardous waste collection, and oil recycling activities
Aug-13
Terra Renewal Services, Inc.
US-based non-hazardous waste management company Darling International Inc.
USA
90
Aug-13
Rothsay Ltd.
Canada-based company engaged in the collection, processing and recycling of animal by-products
USA
462
Aug-13
Oilfield Water Lines LP
US-based company providing water disposeal services NGL Energy Partners LP
USA
225
Jul-13
Befesa Medio Ambiente, S.A.
Spain-based company engaged in steel waste recycling, aluminum waste recycling, and industrial waste management activities
Germany UK Sweden
1 075
Hydrodec Group Plc
Darling International Inc.
Triton Partners
Australia UK USA
11,3x
45
6
Steel City Recycling, LLC; Virtual Realty Enterprises, LLC Clean Harbors, Inc.
EBITDA
35
35
6
4,7x
6,4x
7,2x
0,2x
4,7x
7,2x
48
Section VII: Waste Management Services Companies Comparable M&A Transactions Exhibit 18 Waste Management Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Deal value Date
Target Company
Target Description
Bidder Company
Country
Jun-13
AVE Osterreich GmbH (Eastern European Assets)
Czech Republic, Slovakia, Hungary, Romania, Moldova, and Ukraine-based assets of Austrian recycling group AVE
EP Industries, a.s.
Czech Republic
Jun-13
Proactiva Medio Ambiente, S.A. (50% Stake)
Spain-based company engaged in providing waste and Veolia Environnement SA water management services
Jun-13
TERRA Recycling S.A. (50.83% Poland-based company engaged in treatment of waste Elemental Holding S.A. Stake) electrical and electronic equipment
Poland
6
May-13
Benev Capital Inc. (Waste Treatment Plant)
Canada-based waste treatment plant of Benev Capital Inc.
8439117 Canada Inc.
Canada
6
May-13
EnergySolutions, Inc.
USA-based provider of integrated technologies and services focused on decommissioning and decontamination
Energy Capital Partners
May-13
Predpriyatie ZhKKh OOO
Russia-based waste disposal and utilization company
Apr-13
Synagro Technologies, Inc.
USA-based company provides waste capture and conversion services to municipal and industrial water and wastewater facilities
Apr-13
County Waste of Virginia LLC (Undisclosed stake)
Apr-13
KL Resources Pte Ltd (40% Stake)
USA-based waste and recycling company engaged in Clairvest Equity Partners IV providing residential, commercial, industrial, and Ltd Partnership; Clairvest construction and demolition waste collection Equity Partners IV-A Ltd Partnership Singapore-based based company engaged in recycling Tansfield Limited of waste paper and processing business
Apr-13
EnviroWaste Services Limited
France
Revenue
Enterprise Value / Sales
EBIT
EBITDA
108
540
209
0,8x
USA
1 369
778
0,6x
RT-Invest OOO
Russia
30
31
1,0x
EQT Infrastructure II
Sweden
350
Canada
12
British Virgin Islands
8
Hong Kong
307
New Zealand-based company provides waste Cheung Kong Infrastructure management and recycling services to communities and Holdings Limited businesses
Average Median
Source: Capital IQ , Merger Market
(€m)
1,7x 1,3x
4,4x
25,5x
8,5x
27,1x 15,3x
9,7x 6,4x
49
Section VIII: Consulting Services – Excluding IT Comparable Public Company Valuations The Knowledge Centre’s Consulting Services comparable public company analysis involves 17 publicly traded Consulting Services companies (Exhibits 19 and 20). The median EBIT and EBITDA margins are 9.5% and 10.2%, respectively. The median EV/EBIT and EV/EBITDA are 13.9x and 11.2x, respectively. Exhibit 19 Consulting Services Comparable Company Profit Trends (€ in millions) EBITDA / Sales
Consulting Service Sales (Last)
Company Name Accenture plc
%EBITDA (Last)
%EBIT (Last)
Market Enterprise cap. Value (Current) (Current)
EBIT / Sales
LTM
2016
2015
2014
2013
2012
LTM
2016
2015
2014
2013
2012 13,9%
29 340
17%
15%
63 224
63 764
16,8%
16,8%
16,6%
16,3%
16,3%
15,0%
14,6%
14,6%
14,5%
14,3%
14,2%
Akka Technologies
1 002
8%
6%
632
na
7,9%
7,7%
8,0%
8,4%
9,0%
9,8%
6,4%
6,1%
6,2%
6,6%
7,5%
9,0%
Alten SA
1 541
11%
10%
2 079
2 140
11,1%
10,5%
10,3%
10,2%
10,7%
10,8%
10,5%
9,8%
9,7%
9,4%
10,1%
10,1%
Altran Technologies S.A.
1 945
10%
9%
2 338
2 557
10,2%
10,2%
10,3%
9,6%
9,5%
8,8%
9,8%
9,3%
9,1%
8,5%
8,5%
7,9%
Amec Foster Wheeler plc
6 210
6%
4%
2 474
3 724
5,8%
6,1%
7,6%
8,3%
7,8%
9,4%
3,6%
3,7%
6,3%
6,8%
6,5%
8,0%
Assystem SA
908
7%
6%
547
397
7,3%
7,0%
6,6%
7,6%
7,9%
8,2%
6,5%
6,3%
5,9%
6,8%
7,1%
7,4%
WS Atkins plc
2 120
9%
7%
1 587
1 399
8,6%
8,6%
7,7%
6,8%
6,5%
6,8%
7,2%
7,2%
6,3%
5,8%
5,5%
Cap Gemini S.A.
5,5%
11 915
12%
10%
15 035
17 482
12,3%
11,9%
10,3%
9,5%
9,4%
8,7%
9,9%
9,7%
8,4%
7,4%
7,1%
6,7%
FTI Consulting, Inc.
1 587
11%
9%
1 592
1 871
11,5%
11,2%
11,7%
14,8%
15,8%
16,8%
9,5%
9,2%
9,2%
11,8%
12,4%
13,7%
Intertek Group plc
2 466
19%
14%
6 435
7 991
18,3%
18,5%
17,5%
18,2%
19,1%
18,9%
14,3%
14,1%
13,2%
14,2%
14,8%
14,2%
Management Consulting Group PLC
158
0%
-1%
102
100
-1,2%
-0,1%
5,3%
8,2%
9,0%
9,6%
-2,3%
-1,1%
4,2%
6,9%
7,9%
8,4%
49
21%
16%
208
174
20,9%
20,9%
20,9%
22,8%
25,0%
25,9%
16,1%
16,1%
16,6%
18,0%
20,5%
21,6%
Ricardo plc
378
14%
11%
523
562
13,7%
13,7%
12,9%
13,2%
13,0%
12,3%
10,7%
10,7%
9,9%
9,9%
9,6%
9,0%
RPS Group plc
645
11%
6%
432
540
10,2%
11,4%
13,7%
13,1%
12,6%
11,8%
5,5%
6,4%
9,2%
9,3%
9,1%
8,2%
SMS Management & Technology Ltd.
224
5%
5%
78
83
5,0%
5,0%
8,9%
6,6%
10,1%
13,1%
4,6%
4,6%
8,1%
6,1%
9,8%
12,8%
The Hackett Group, Inc.
209
12%
10%
463
469
13,0%
11,8%
10,4%
9,6%
10,1%
10,6%
11,3%
9,7%
8,3%
8,4%
8,8%
9,1%
WYG PLC
151
4%
2%
98
97
4,0%
4,0%
2,9%
3,7%
-0,2%
28,5%
1,8%
1,8%
0,9%
1,8%
-2,0%
26,8%
10,3% 10,2%
10,3% 10,5%
10,7% 10,3%
11,0% 9,6%
11,3% 10,1%
13,2% 10,8%
8,2% 9,5%
8,1% 9,2%
8,6% 8,4%
8,9% 8,4%
9,3% 8,8%
11,3% 9,0%
Mattioli Woods PLC
Mean Median
Source: Capital IQ (30/09/2016)
50
Section VIII: Consulting Services – Excluding IT Comparable Public Company Valuations Exhibit 20 Consulting Services Comparable Company Profit Trends (€ in millions) EV/Net Sales
Consulting Service
EV/EBITDA
EV/EBIT
PER
Company Name
LTM
2016
2015
2014
2013
2012
LTM
2016
2015
2014
2013
2012
LTM
2016
2015
2014
2013
2012
LTM
2016
2015
2014
2013
2012
Accenture plc
2,2x
-0,1x
2,2x
1,8x
1,7x
1,5x
12,9x
-0,9x
13,3x
11,3x
10,7x
10,1x
14,9x
-1,0x
15,3x
12,9x
12,2x
10,9x
17,2x
0,0x
21,8x
18,6x
15,2x
17,1x
Akka Technologies
na
0,7x
0,7x
0,5x
0,5x
0,6x
na
8,9x
8,3x
6,2x
5,9x
5,7x
na
11,2x
10,8x
7,9x
7,0x
6,3x
18,8x
20,1x
20,4x
12,7x
8,5x
10,7x
Alten SA
1,3x
1,2x
1,0x
0,9x
0,8x
0,6x
11,7x
11,0x
10,1x
9,2x
7,2x
5,8x
12,4x
11,7x
10,8x
10,0x
7,7x
6,2x
17,1x
16,8x
18,3x
16,4x
12,6x
11,8x
Altran Technologies S.A.
1,2x
1,2x
1,0x
0,9x
0,7x
0,6x
12,1x
11,6x
9,4x
9,1x
7,0x
6,7x
12,7x
12,7x
10,7x
10,2x
7,7x
7,4x
20,4x
21,3x
20,2x
21,5x
12,2x
na
Amec Foster Wheeler plc
0,6x
0,5x
1,1x
0,9x
0,7x
1,0x
9,9x
8,4x
14,5x
10,6x
9,4x
10,8x
16,4x
13,8x
17,4x
12,9x
11,4x
12,7x
na
na
43,2x
20,0x
14,9x
16,3x
Assystem SA
0,4x
0,3x
0,3x
0,5x
0,3x
0,4x
5,8x
4,9x
3,8x
6,2x
3,8x
4,4x
6,5x
5,4x
4,3x
7,0x
4,2x
4,9x
19,8x
18,7x
19,9x
14,6x
7,9x
6,9x
WS Atkins plc
0,7x
0,6x
0,8x
0,6x
0,5x
0,4x
8,0x
7,1x
9,9x
9,3x
8,3x
5,3x
9,4x
8,4x
12,0x
10,8x
9,8x
6,5x
13,5x
12,7x
17,4x
13,2x
12,4x
6,7x
Cap Gemini S.A.
1,4x
1,3x
1,1x
0,8x
0,4x
0,4x
11,2x
11,2x
10,5x
8,1x
4,8x
5,1x
13,9x
13,8x
12,9x
10,3x
6,3x
6,6x
12,4x
12,4x
21,6x
18,7x
15,1x
11,9x
FTI Consulting, Inc.
1,1x
1,0x
1,1x
1,1x
1,2x
1,3x
10,0x
9,3x
9,8x
7,3x
7,6x
7,7x
12,1x
11,3x
12,4x
9,1x
9,7x
9,4x
23,1x
22,2x
25,9x
na
na
14,3x
Intertek Group plc
3,0x
3,0x
2,4x
2,5x
3,0x
2,7x
16,6x
15,9x
13,6x
13,9x
15,7x
14,5x
21,2x
21,0x
18,0x
17,8x
20,4x
19,3x
na
23,9x
23,7x
31,2x
29,1x
Management Consulting Group PLC
0,7x
0,9x
0,8x
0,6x
0,6x
0,7x
na
na
14,4x
7,2x
7,2x
7,5x
na
na
18,2x
8,5x
8,2x
8,5x
na
na
na
12,2x
15,0x
11,4x
Mattioli Woods PLC
3,6x
3,6x
3,5x
2,6x
2,4x
1,6x
17,0x
17,0x
16,6x
11,5x
9,7x
6,0x
22,1x
22,1x
20,9x
14,6x
11,8x
7,2x
34,9x
34,8x
32,5x
20,3x
17,9x
12,0x
Ricardo plc
1,5x
1,7x
1,8x
1,4x
1,3x
0,9x
10,9x
12,2x
13,8x
10,5x
10,2x
7,7x
13,9x
15,6x
17,9x
13,8x
13,8x
10,5x
17,9x
20,4x
25,5x
17,6x
18,5x
12,9x
RPS Group plc
0,8x
0,9x
1,0x
1,2x
1,0x
1,0x
8,1x
8,0x
7,5x
9,3x
8,1x
8,5x
15,0x
14,2x
11,2x
13,1x
11,2x
12,1x
165,3x
63,8x
15,4x
23,0x
21,3x
17,3x
SMS Management & Technology Ltd.
0,4x
0,4x
0,9x
0,8x
1,0x
1,1x
7,4x
7,4x
10,6x
12,5x
9,8x
8,6x
8,1x
8,1x
11,6x
13,7x
10,1x
8,8x
11,8x
11,7x
20,3x
21,3x
14,8x
13,3x
The Hackett Group, Inc.
2,1x
1,9x
1,3x
0,9x
0,8x
1,1x
15,9x
16,1x
12,6x
9,7x
7,6x
10,8x
18,3x
19,5x
15,9x
11,2x
8,8x
12,6x
30,1x
34,0x
28,4x
21,4x
8,8x
11,3x
WYG PLC
0,6x
0,6x
0,6x
0,5x
0,4x
0,1x
16,1x
14,8x
19,5x
12,9x
na
0,2x
35,4x
32,6x
65,2x
26,1x
na
0,2x
30,3x
27,9x
44,5x
36,6x
na
2,8x
1,3x 1,2x
1,2x 0,9x
1,3x 1,0x
1,1x 0,9x
1,0x 0,8x
0,9x 0,9x
11,6x 11,2x
10,2x 10,1x
11,7x 10,6x
9,7x 9,3x
8,3x 7,9x
7,4x 7,5x
15,5x 13,9x
13,8x 13,2x
16,8x 12,9x
12,3x 11,2x
10,0x 9,8x
8,8x 8,5x
30,9x 19,3x
22,6x 20,2x
24,9x 21,7x
19,5x 19,4x
15,1x 14,9x
12,9x 12,0x
Mean Median
na
Source: Capital IQ (30/09/2016)
51
Section VIII: Consulting Services – Excluding IT Comparable M&A Transactions The median EV/EBIT and EV/EBITDA for the comparable Consulting Services M&A transactions are 12.8x and 8.6x, respectively. Exhibit 21 Consulting Services Comparable M&A Transactions (€ in millions except where mentioned in $) Date
Target Company
Target Description
Bidder Company
Country
Revenue
Deal value Enterprise Value / (€m) Sales EBIT EBITDA
Mar-16
New Paradigm Resources Group, USA-based company which operates as a magicJack VocalTec Ltd. Inc. telecommunications research and consulting company.
Feb-16
LOC Consulting Limited
UK-based company which provides management iBe TSE Ltd consultancy services to public sector, financial services, new media, and consumer sectors.
Jan-16
Greater China Appraisal Limited
Hong Kong-based company which offers asset and business valuation services.
Roma Group Limited
Dec-15
Efeso Consulting SA
France-based company which provides management consultancy services.
Partners In Action
Dec-15
JMP Consultants Ltd.
UK-based company which provides transport consultancy and planning services in the UK.
Systra Ltd.
Dec-15
EastSideCapital Spólka Akcyjna
Poland-based company which provides financial, legal, EBC Solicitors Spólka and tax consulting services. Akcyjna
Nov-15
STC Energy and Carbon Holdings Limited
UK-based energy management consultancy
Inspired Energy plc
UK
5
17
3,2x
Oct-15
Professional Service Industries, Inc.
USA-based company which provides consulting engineering and testing services in the United States.
Intertek Group plc
UK
222
288
1,3x
11,4x
8,3x
Oct-15
Coffey International Limited
Australia-based company which provides consulting Tetra Tech, Inc. services in the geoservices, international development, and project management areas worldwide.
USA
353
127
0,3x
13,5x
8,2x
Oct-15
Starland Holdings Limited
Singapore-based investment holding company which engages in financial consulting services.
Singapore
46
4
0,4x
1,4x
1,4x
Sep-15
EastSideCapital Spólka Akcyjna
Poland-based company which provides financial, legal, EBC Solicitors Spólka and tax consulting services. Akcyjna
Poland
0
3,4x
Sep-15
Cardno Limited
Australia-based company which provides professional consulting services in the development and improvement of physical and social infrastructure for communities worldwide.
Australia
939
79
0,5x
14,3x
8,9x
Sep-15
Jelf Group plc
UK-based company which provides consultancy Marsh & McLennan services on insurance, employee benefits, and financial Companies, Inc. planning for businesses and individuals in the UK.
USA
119
357
2,9x
27,8x
16,3x
Sep-15
Taylor Patterson Group Ltd.
UK-based company which provides financial advisory services to businesses and individuals.
UK
4
11
2,6x
Aug-15
Gilardi & Company LLC
USA-based company which provides class action notice Kurtzman Carson and claim administration services. Consultants LLC
USA
35
36
1,0x
GRP Land Pte. Ltd.
Crescent Capital Investments Pty Limited
Mattioli Woods PLC
Israel
12
38
3,2x
9,2x
UK
9
5
0,2x
2,4x
Hong Kong
4
3
3,4x
France
69
18
1,3x
UK
16
11
0,7x
Poland
12,2x
11,3x
7,8x
7,1x
52
Section VIII: Consulting Services – Excluding IT Comparable M&A Transactions Exhibit 21 Consulting Services Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Target Company
Target Description
Bidder Company
Aug-15
MMM Group Limited
Canada-based company which provides management, WSP Global Inc. planning, engineering, and advisory services.
Jul-15
Wholesale Power UK Limited
UK-based company which provides energy procurement consulting services for companies in commercial and industrial sectors.
Jul-15
Chime Communications plc
Jul-15
Deal value Enterprise Value / (€m) Sales EBIT EBITDA
Country
Revenue
Canada
178
281
1,5x
Inspired Energy plc
UK
1
4
3,2x
UK-based company which provides sports marketing, public relations, advertising, market research, direct marketing, and design and event management consultancy services.
WPP plc; Providence Equity Partners
USA
534
544
1,2x
36,3x
19,9x
Ecology & Environment, Inc.
USA-based environmental consulting firm.
Mill Road Capital
USA
114
4
0,4x
9,7x
7,4x
Jul-15
SDIC CGOG Futures Co,LTD.
China-based which offers futures brokerage, consulting, SDIC Capital Holding Co., and business training services. Ltd.
China
74
45
2,2x
17,1x
Jun-15
Towers Watson & Co.
USA-based which offers risk management and human resource consulting services.
UK
3 272
7 807
2,2x
13,2x
Jun-15
Kerensen Consulting SAS
France-based company which provides management consulting, business solutions, and technology services.
USA
15
22
1,4x
May-15
Seat Pagine Gialle SpA
Italy-based company which provides marketing services Italiaonline S.p.A. in Italy.
Italy
399
154
0,4x
Apr-15
Trissential, LLC
USA-based management consulting company which offers strategic planning and project management
SQS Software Quality Systems AG
Germany
29
28
1,0x
Apr-15
Inspecta Group Oy
Finland-based company which provides certification, technical consultancy, and training services.
ACTA Holding BV
Netherlands
198
202
1,0x
Mar-15
Quindell Plc, Professional Services UK-based company which provides legal, claims Division management, health and medical reporting services.
Slater and Gordon (UK), Investment Arm
UK
882
926
1,0x
Mar-15
Impetus Automotive Limited
UK-based company which provides automotive consultancy services to vehicle manufacturers.
Volvere plc
UK
21
2
0,1x
Mar-15
Wood Mackenzie Ltd
UK-based company which provides research and consulting services.
Verisk Analytics, Inc.
USA
320
2 605
8,1x
Mar-15
Scitor Holdings, Inc.
USA-based company which provides systems engineering, management consulting, and information services to customers in the United States.
Science Applications International Corporation
USA
539
878
1,6x
Feb-15
Oakland Innovation Ltd.
UK-based company which delivers research, understanding, and insight services for food and beverages.
Sagentia Group plc (nka:Science Group plc)
UK
5
7
1,1x
Feb-15
Research and Development, Inc. Japan-based company which provides analysis services for consumer insights and trends in Japan.
Japan
16
1
0,1x
Willis Group Holdings Plc (nka: Willis Towers Watson Plc) salesforce.com, inc.
Cross Marketing Inc.
8,9x
11,0x
5,5x
2,3x
17,3x
33,0x
18,3x
4,2x
53
Section VIII: Consulting Services – Excluding IT Comparable M&A Transactions Exhibit 21 Consulting Services Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Target Company
Target Description
Bidder Company
Feb-15
B.I. Appraisals Limited
Hong Kong-based company which provides property valuation, appraisal, business analysis, and related professional services.
United Brilliant Limited
Dec-14
Country
Revenue
Deal value Enterprise Value / (€m) Sales EBIT EBITDA
British Virgin Islands
1
5
8,0x
Beaumonts Risk Management LLP UK-based company which provides health, safety, and Jelf Insurance Brokers Ltd. employment law advisory services.
UK
1
1
1,1x
Dec-14
Royall & Company, Inc.
UK-based company which provides enrollment management, financial aid optimization, and alumni fundraising services to colleges and universities.
The Advisory Board Company
USA
84
684
8,1x
Dec-14
Initiate Consulting Ltd.
UK-based consultancy that provides development management, project management, and construction management services.
Driver Group Plc
UK
9
7
0,7x
Nov-14
Source8
UK-based company which offers telecommunications management consultancy services.
Mitie Investments Limited
UK
6
20
4,0x
Nov-14
Lightbridge Communications Corporation
USA-based company which provides consulting and network services to the telecommunications industry in the United States and internationally.
Tech Mahindra Limited
India
343
192
0,6x
Sep-14
Alliance Environment and Planning Ltd.
UK-based company which provides town planning, environmental, and development consulting services.
WYG Plc
UK
4
4
1,0x
Sep-14
Business Aspect Group Pty Ltd
Australia-based company which provides business and Data#3 Ltd. technology consulting services.
Australia
10
9
0,9x
Sep-14
Nurun Inc.
Canada-based company which provides design and technology consultancy services worldwide.
France
97
87
0,9x
Aug-14
Paragem Pty. Ltd.
Australia-based company which offers consulting and HUB24 Limited support services to small-sized businesses and licensed representatives.
Australia
14
6
0,4x
Jul-14
Hyder Consulting PLC
UK-based design and engineering consultancy company.
Netherlands
374
372
0,9x
18,2x
12,9x
May-14
Crowe Horwath Australasia Limited
Australia-based company which provides business and KKR Asset Management, financial services. LLC (nka:KKR Credit Advisors (US) LLC); Financial Index Australia Pty Ltd US-based environmental consulting firm RPS Group Plc
USA
270
130
0,5x
17,9x
10,1x
UK
11
25
2,2x
Publicis Groupe SA
ARCADIS NV
20/05/2014
GaiaTech, Inc.
19/05/2014
Medaxial Limited
UK-based value communication consultancy engaged in Covance Inc the provision of research, analytical, and presentational services to the healthcare sector
USA
13/05/2014
Axia Strategies, Inc.
US-based company providing catastrophic care services including specialty claims review and audit, specialty contract negotiation, oncology risk management, and subrogation
USA
Axiom Re, LP
7,9x
22,2x
7,3x
9
3
7
2,7x
54
Section VIII: Consulting Services – Excluding IT Comparable M&A Transactions Exhibit 21 Consulting Services Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Target Company
Target Description
Bidder Company
17/04/2014
RINA S.p.A (20% Stake)
Italy-based company engaged in ship classification, Intesa Sanpaolo S.p.A.; VEI assessment, control, certification and research services Capital SPA and in charge of the operational activities of Registro Italiano Navale
Italy
14/04/2014
Simpler Consulting, L.P.
US-based company that provides consulting services for lean enterprise transformation
Truven Health Analytics Inc.
USA
10/04/2014
Clear Environmental Consultants UK-based consultancy providing services primarily to Limited the water industry
RPS Group Plc
UK
28/03/2014
Only Italia Srl (80% Stake)
08/04/2014
TERA Environmental Consultants Canada based environmental consulting services provider
21/02/2014
Santiago & Cintra Consultoria (50% Stake)
Brazil based company engaged in providing consulting BlackBridge AG services and solutions in geospatial technology
03/03/2014
VALTEQ Gesellschaft mbH
Germany based technical and economical consulting firm
08/01/2014
Finnamore Limited
18/12/2013
Italy based company promoting the exportation of Made Balletown in Italy products to the Chinese market
Country
Revenue 291
Deal value Enterprise Value / (€m) Sales EBIT EBITDA 125
0,4x
5,5x
0,7x
2,2x
4,3x
55
7
5
China
13
USA
71
Germany
10
CBRE Group, Inc.
USA
50
UK based health and social care consultancy firm
GE Healthcare Ltd.
UK
10
18
1,8x
13,4x
11,1x
Getinsa Ingenieria S.L. (70% Stake)
Spain-based company engaged in providing civil engineering consultancy services
TPF Group N.V.
Belgium
26
42
1,6x
23,0x
20,2x
16/12/2013
Context Information Security Limited
UK based company providing technical consultancy services for cyber security market
Babcock International Group Plc
UK
12
38
3,2x
17/01/2014
Opus Capital Markets Consultants, US based company engaged in providing mortgage LLC consulting services
Wipro Limited
India
25/11/2013
Advanced Geomechanics Pty Ltd Australia based company engaged in geotechnical and Fugro N.V. geophysical engineering and consulting services to the oil and gas industry
Netherlands
15/11/2013
Dans Energy Consulting Private Limited
India based company engaged in providing consultancy Hydreq Pte Ltd services and assistance to hydropower project developers
Singapore
02/01/2014
Brand Loyalty International B.V. (60% Stake)
Netherlands based provider of loyalty concepts for the food retail sector
01/11/2013
JMJ Associates, LLC
US based management consultancy company providing 3i Group Plc enterprise transformation services to energy, petrochemical, mining and construction industries
CH2M
Alliance Data Systems Corporation
55
24
24
USA
444
UK
128
1,2x
55
Section VIII: Consulting Services – Excluding IT Comparable M&A Transactions Exhibit 21 Consulting Services Comparable M&A Transactions (Con’t) (€ in millions except where mentioned in $) Date
Deal value Enterprise Value / (€m) Sales EBIT EBITDA
Target Company
Target Description
Bidder Company
Country
14/02/2014
PT Wisesa Inspirasi Nusantara (74% Stake)
Indonesia-based company engaged in providing management consulting services
Kulim (Malaysia) Berhad
Malaysia
18
03/10/2013
Enovity Inc (80% Stake)
US based energy engineering consulting company headquartered in California
ORIX Corporation
Japan
19
15/10/2013
Lambert Smith Hampton Limited
UK-based company engaged in providing commercial property consultancy services
Countrywide Plc
UK
75
41
0,5x
03/10/2013
The Birchman Group Asia Pacific Australia based company offering business consulting, Pty Ltd integration and managed services to enterprise and government clients
SMS Management & Technology Limited
Australia
25
17
0,8x
12/12/2013
Sinclair Knight Merz Pty Ltd.
Australia-based company that provides engineering, strategic consulting, and project delivery services
Jacobs Engineering Group Inc
04/09/2013
Stewart, Weir & Co. Ltd.
Canada based engineering and environmental consultancy firm
Opus International Consultants Limited
Revenue
USA
New Zealand
908
67
Average Median
Source: Capital IQ , Merger Market
45
0,6x
6,5x
5,4x
2,6x 1,2x
13,9x 12,8x
10,2x 8,6x
56
Appendix Sampling of Business Services Deals
57
Appendix Sampling of Business Services Deals
58
Appendix Sampling of Business Services Deals
59