John Hill Senior Managing Director hill@hydeparkcapital.com (813) 383 0205 John McDonald Senior Managing Director mcdonald@hydeparkcapital.com (813) 383 0206 Keith Hodgdon Senior Vice President hodgdon@hydeparkcapital.com (813) 383 0208 Florida M&A Report 2013 Jeffrey Bridge Vice President bridge@hydeparkcapital.com (813) 383 0204 Michael Mariani Associate mariani@hydeparkcapital.com (813) 597 2649 Charlie Hendrick Senior Analyst hendrick@hydeparkcapital.com (813) 383 0207 Hyde Park Capital Advisors, LLC 701 N. Franklin Street Tampa, FL 33602 Tel: 813 383 0202 www.hydeparkcapital.com Member FINRA/SIPC
FLORIDA M&A Market Overview Commentary Completed M&A Transactions by Region: VOLUME During 2013, there were 458 completed M&A transactions (including those with undisclosed transaction values) in Florida, 415 of which have disclosed locations; 12 in the Tallahassee Pensacola area, 53 in the Jacksonville Gainesville area, 112 in the Tampa St. Petersburg area, 41 in the Orlando area, 16 in the Fort Myers area and 181 in the Miami South Florida area. Total Florida M&A transaction volume declined 11% to 415 deals in 2013, down from 464 in 2012, with only the Tampa St. Petersburg and Jacksonville Gainesville regions seeing an increase in transaction volume. Several deals valued at over $1 billion involving Florida based target companies were announced in 2013, including Community Health System Inc. s acquisition of Health Management Associates, Inc.; American Tower Corp. s purchase of Global Tower, LLC; and ServiceLink, LP s purchase of Lender Processing Services, Inc. Top 10 Announced M&A Transactions 2013 ($ in millions) Announced Date Target Buyer Industry Enterprise Value 07/29/13 Health Management Associates, Inc. Community Health Systems, Inc. Healthcare $7,716 09/06/13 Global Tower, LLC American Tower Corp. Technology $4,800 05/28/13 Lender Processing Services, Inc. ServiceLink, LP Financial Services $4,084 07/23/13 Harland Financial Solutions, Inc. Davis + Henderson Corp. Technology $1,638 09/25/13 MAKO Surgical Corp. Stryker Corp. Healthcare $1,548 02/06/13 Metals USA Holdings Corp. Reliance Steel & Aluminum Co. Industrials $1,232 10/28/13 CF Industries, Inc. (Phosphate Business) The Mosaic Co. Industrials $1,200 10/18/13 Brightstar Corp. SoftBank Corp. Technology $1,105 02/05/13 NuCO2 Florida, Inc. Praxair, Inc. Industrials $1,100 07/10/13 Security Networks, LLC Monitronics International, Inc. Industrials $742 Region 2009 2010 2011 2012 2013 Tallahassee Pensacola Area 13 20 19 17 12 Jacksonville Gainesville Area 48 74 70 49 53 Tampa St. Petersburg Area 97 121 95 108 112 Orlando Area 59 72 84 74 41 Fort Myers Area 22 25 16 20 16 Miami South Florida Area 176 224 204 196 181 Florida Total 415 536 488 464 415 % Change (Y o Y) (14.8%) 29.2% (9.0%) (4.9%) (10.6%) Source : S&P Capital IQ. 2
FLORIDA Annual M&A Market Activity Commentary As detailed in the table on the right, the volume of Florida M&A transactions with disclosed deal value greater than $10 million declined year over year across all segments, with the only exception being transactions valued greater than $1 billion. The number of middle market Florida transactions (transactions valued at less than $1 billion) declined from 88 in 2012 to 68 in 2011, a 23% decline, while the total transaction value decreased 45% from $9.7 billion to $5.4 billion over the same period. The volume of closed transactions valued at greater than $1 billion increased from 3 to 6, and saw a 60% increase in transaction value rising from $7.7 billion in 2012 to $12.3 billion in 2013. Despite representing approximately 92% of the total deal volume in 2013, middle market transactions accounted for approximately 30% of the total deal value. M&A Activity Annual Trends: VOLUME ($ in billions) M&A Transactions by Deal Size 2012 2013 % Change Deal Size Volume Value Volume Value Volume Value Less than $100M 64 $1.9 53 $1.7 (17%) (10%) $100 $499M 18 $3.2 13 $2.1 (28%) (35%) $500 $999M 6 $4.5 2 $1.5 (67%) (67%) Total Middle Market 88 $9.7 68 $5.4 (23%) (45%) Greater than $1 Billion 3 $7.7 6 $12.3 100% 60% Total Market 91 $17.3 74 $17.6 (19%) 2% % of Total Market Less than $100M 70% 11% 72% 10% $100 $499M 20% 19% 18% 12% $500 $999M 7% 26% 4% 8% Total Middle Market 97% 56% 92% 30% Greater than $1 Billion 3% 44% 8% 70% Total Market 100% 100% 100% 100% M&A Activity Annual Trends: VALUE Total Transaction Volume Total Transaction Value ($ in billions) Less than $100M $100 $499M $500 $999M Greater than $1 Billion Less than $100M $100 $499M $500 $999M Greater than $1 Billion Source : S&P Capital IQ (includes all closed deals with disclosed deal value greater than $10 million) 3
FLORIDA M&A Activity Select Announced M&A Transactions 2013 ($ in millions) Announced Date Target Buyer Industry Enterprise Value ($mm) EV / Revenue EV / EBITDA 12/18/13 Nicholas Financial, Inc. Prospect Capital Corp. Financial Services $200.2* NA NA 12/17/13 Globe Wireless, LLC Inmarsat Plc Technology $45.0 0.5x NA 12/17/13 Jabil Circuit, Inc. (Aftermarket Services Business) iqor Holdings, Inc. Industrial $725.0 NA NA 12/12/13 Galaxy Aviation, Inc. Atlantic Aviation Corp. Industrial $195.0 3.0x NA 12/06/13 Food Technology Service, Inc. Sterigenics U.S., LLC Industrial $17.5 4.2x 8.2x 12/02/13 Prolexic Technologies, Inc. Akamai Technologies, Inc. Technology $402.6 NA NA 11/04/13 Senior Home Care, Inc. Kindred Healthcare, Inc. Healthcare $95.0 0.7x NA 11/04/13 Edwin Watts Golf Shops, LLC Hilco Merchant Resources, LLC / GWNE, Inc. Consumer $45.0 NA NA 10/28/13 CF Industries, Inc. (Phosphate Business) The Mosaic Co. Industrial $1,200.0 NA NA 10/18/13 Alico, Inc. Arlon Group, LLC Industrial $281.6 2.8x 13.0x 10/18/13 Brightstar Corp. SoftBank Corp. Technology $1,105.0 0.2x NA 10/15/13 TLO, LLC TransUnion Corp. Technology $154.0 NA NA 09/27/13 Econocaribe Consolidators, Inc. Ecu Line N.V. Industrial $50.0 NA NA 09/25/13 MAKO Surgical Corp. Stryker Corp. Healthcare $1,488.8 13.2x NM 09/06/13 Global Tower, LLC American Tower Corp. Technology $4,800.0 NA NA 09/05/13 Florida Shores Bancorp, Inc. Stonegate Bank Financial Services $61.6 NA NA 08/28/13 Boca Pharmacal, Inc. Generics Bidco I, LLC Healthcare $225.0 NA NA 08/07/13 Premiere Radiation Oncology Radiation Therapy Services Holdings, Inc. Healthcare $28.5 NA NA 07/31/13 Devcon Security Services Corp. The ADT Corp. Industrial $148.5 NA NA 07/30/13 Gulfstream Bancshares, Inc. CenterState Banks, Inc. Financial Services $67.3 NA NA 07/30/13 Pan Am International Flight Academy, Inc. ANA Holdings, Inc. Industrial $139.5 NA NA 07/29/13 Health Management Associates, Inc. Community Health Systems, Inc. Healthcare $7,630.0 1.3x 8.7x 07/23/13 Harland Financial Solutions, Inc. Davis + Henderson Corp. Technology $1,628.7 5.8x 18.5x 07/15/13 Payless Car Rental System, Inc. Avis Budget Group, Inc. Consumer $50.0 0.6x NA 07/15/13 Platinum Health Services, LLC Healthcare Services Group, Inc. Healthcare $35.4 NA NA 07/10/13 Security Networks, LLC Monitronics International, Inc. Industrial $740.2 8.1x 13.7x Source: S&P Capital IQ. * Represents transaction value. 4
FLORIDA M&A Activity Select Announced M&A Transactions 2013 ($ in millions) Announced Date Target Buyer Industry Enterprise Value ($mm) EV / Revenue EV / EBITDA 07/10/13 Voxeo Corp. Aspect Software, Inc. Technology $145.0 NA NA 07/03/13 DSE, Inc. AMTEC Corp. Industrial $47.1 NA NA 06/04/13 igps Company, LLC One Equity Partners, LLC / Balmoral Funds, LLC Technology $39.0 NA NA 05/28/13 Lender Processing Services, Inc. ServiceLink, LP Financial Services $3,880.9 2.1x 11.7x 05/10/13 Florida Chemical Company, Inc. Flotek Industries, Inc. Industrial $102.9 1.1x 8.3x 05/01/13 Qzina Specialty Foods, Inc. The Chefs' Warehouse, Inc. Consumer $31.6 NA NA 04/22/13 Aerosonic Corp. TransDigm Group, Inc. Industrial $37.9 1.2x 16.1x 04/11/13 Zeno Office Solutions, Inc. Global Imaging Systems, Inc. Industrial $60.0 NA NA 03/01/13 AutoInfo, Inc. Comvest Partners Industrial $52.2 0.2x 6.8x 02/28/13 Regional One, Inc. Exchange Income Corp. Industrial $96.5 NA NA 02/28/13 The Aragon Group, Inc. Dania Entertainment Center, LLC Consumer $65.5 NA NA 02/06/13 Metals USA Holdings Corp. Reliance Steel & Aluminum Co. Industrial $1,216.5 0.6x 8.5x 02/06/13 Channel Intelligence, Inc. Google, Inc. Technology $125.0 NA NA 02/05/13 NuCO2 Florida, Inc. Praxair, Inc. Industrial $1,100.0 NA NA 01/14/13 AcariaHealth, Inc. Centene Corp. Healthcare $146.2 NA NA 01/10/13 Bentrani Watches, LLC Fossil, Inc. Consumer $26.0 NA NA 01/07/13 ArrMaz Custom Chemicals, Inc. Golden Gate Capital / Carillon Equity Partners Industrial $500.0* NA NA Source: S&P Capital IQ. * Represents transaction value. 5
FLORIDA Annual M&A Activity by Industry M&A Activity by Industry Sector: VOLUME % Change Consumer 12 23 48% Healthcare 16 29 45% Industrials 11 28 155% Technology / Telecom 9 9 0% Financial Services 5 6 20% 0 5 10 15 20 25 30 35 2012 2013 M&A Activity by Industry Sector: VALUE % Change ($ in billions) Consumer $1.0 $3.0 67% Healthcare $4.5 $6.8 34% Industrials $4.1 $5.1 20% Technology / Telecom $0.9 $7.0 663% Financial Services $0.3 $1.0 74% $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2012 2013 Source : S&P Capital IQ (includes all closed deals with disclosed deal value greater than $10 million). 6
FLORIDA Recent Private Equity Activity Commentary Select Private Equity Transactions 2013 During 2013 financial sponsors were active across all industry sectors in Florida, announcing a number of significant buyouts, as shown in the table on the right. Several notable sponsor led transactions in Florida were announced during 2013, including Golden Gate Capital and Carillon Equity s purchase of ArrMaz Custom Chemicals, a manufacturer and supplier of chemicals for the fertilizer and mining industries, for $500 million; and Prospect Capital Corp. s announced acquisition of Nicholas Financial, Inc., a specialty consumer finance company, for over $200 million; and Comvest Partners purchase of Autoinfo, Inc., a non asset based transportation services company, for over $50 million. In total, financial sponsors accounted for approximately 20% of the completed deals during the full year 2013. ($ in millions) Announced Date Target Buyer Industry Transaction Value 12/20/13 BEL USA, LLC Comvest Partners Technology NA 12/18/13 Nicholas Financial, Inc. Prospect Capital Corp. Financial Services $200.2 12/18/13 Naylor, LLC RLJ Equity Partners, LLC Consumer NA 11/22/13 Stoutamire Pavlik & Associates, Inc. AssuredPartners, Inc. Financial Services NA 11/19/13 CTS Engines, LLC Palm Beach Capital Industrial NA 10/25/13 Align Networks, Inc. Apax Partners, LLP Healthcare NA 10/22/13 Signal Outdoor Advertising, LLC MSouth Equity Partners Consumer NA 10/11/13 International Shipping Partners, Inc. Waterland Private Equity Industrial $18.1 10/08/13 NexTech Systems, Inc. Francisco Partners Management, LLC Healthcare NA 08/07/13 Aldora Holdings, LLC Superior Capital Partners, LLC Industrial NA 07/22/13 Miller's Ale House, Inc. Roark Capital Group Consumer NA Financial Sponsors vs. Strategic Buyers 07/22/13 SAXOTECH, Inc. Vista Equity Partners Technology NA 06/28/13 Suwannee Lumber Co. Blue Wolf Capital Partners Industrial NA 06/05/13 Enviro Water Solutions, Inc. Trivest Partners Consumer NA 06/04/13 igps Company, LLC One Equity Partners, LLC / Balmoral Funds, LLC Technology $39.0 Total Transaction Volume Total Transaction Value ($ in billions) 05/24/13 CableOrganizer.com, Inc. CapitalSouth Growth Fund / KT Capital Technology 05/21/13 Atlas Paper Mills, LLC Peak Rock Capital Industrial NA 05/08/13 Dyno, LLC Bunker Hill Capital Industrial NA 03/24/13 Advanced Air & Heat, LLC Pulte Capital Partners, LLC Financial Services NA 03/22/13 Honeycomb Co. of America, Inc. 03/18/13 GFI Software Florida, Inc. Plexus Capital / Overall Capital Partners Bessemer Venture Partners / Insight Venture Partners / Greenspring Associates, Inc. Industrial NA NA Technology $23.0 03/01/13 AutoInfo, Inc. Comvest Partners Industrial $52.2 01/10/13 Triad Digital Media, LLC Falcon Investment Advisors / Rockbridge Growth Equity Consumer NA Financial Sponsor Strategic Buyer Financial Sponsor Strategic Buyer 01/07/13 ArrMaz Custom Chemicals, Inc. Golden Gate Capital / Carillon Equity Partners Industrial $500.0 Source : S&P Capital IQ (includes all closed deals with disclosed deal value greater than $10 million). 7
Integrity Expertise Results John Hill Senior Managing Director hill@hydeparkcapital.com (813) 383 0205 Recent Transactions John McDonald Senior Managing Director mcdonald@hydeparkcapital.com (813) 383 0206 Keith Hodgdon Senior Vice President hodgdon@hydeparkcapital.com (813) 383 0208 Jeffrey Bridge Vice President bridge@hydeparkcapital.com (813) 383 0204 Michael Mariani Associate mariani@hydeparkcapital.com (813) 597 2649 Charlie Hendrick Senior Analyst hendrick@hydeparkcapital.com (813) 383 0207 Hyde Park Capital Advisors, LLC 701 N. Franklin Street Tampa, FL 33602 Tel: 813 383 0202 www.hydeparkcapital.com Member FINRA/SIPC