An Introduction to Platinum Equity
January 2021
©2021 Platinum Equity Advisors, LLC. All Rights Reserved. Mergers. Acquisitions. Operations., M&A&O® and Platinum Equity® are service marks or registered service marks of Platinum Equity Advisors, LLC and Platinum Equity, LLC (collectively, “Platinum Equity”). All other trademarks and service marks used in these materials are the property of their respective owners and/or affiliates of Platinum Equity. . Platinum Equity at a Glance Assets Under Acquisitions Portfolio Management Since 1995 Revenue Overview ~$23B 300+ $25B+ Founded in 1995 by Tom Gores, an entrepreneur and business operator Fund History Headquartered in Los Angeles with offices in Boston, Greenwich, New York, London, and Singapore Pre-Fund 1995-2004 $500M+
® Highly differentiated investment approach: M&A&O Fund I 2004 Vintage $700M • Fully integrated, operations intensive, execution-focused • Large team of in-house operations specialists Fund II 2007 Vintage $2.75B Experienced and stable leadership team Fund III 2012 Vintage $3.75B Cycle-tested over more than 25 years Fund IV 2016 Vintage $6.5B
Current Investment Vehicles
Small Cap 2018 Vintage $1.5B Portfolio company revenue as of September 30, 2020. Pre-fund cash invested and Platinum Equity Capital Fund V 2019 Vintage Partners Funds I, II, III, IV and V; and Platinum Equity Small Cap total capital commitments. $10B
2 Broad Expertise and Global Reach ~40 Portfolio Companies with 91K+ Employees Across 6 Continents
19k+ ~24k 40k+
2k+ ~3k 3k+
Reflects portfolio company headcount by continent as of September 2020. Excludes Ryerson and Key Energy.
Industry Agnostic Approach
Consumer / Retail Healthcare Media & Telecom Technology
Finance Industrials Natural Resources
3 A Flexible Investment Style
Investment Criteria Enterprise Value $100M–$10B Businesses with Operational Opportunities Historical Equity Deployments • Well-positioned in mature markets • Long-term customers and stable revenue $0–$1.2B • Can grow through acquisitions or investment Capacity to Write Equity Check up to • Business models with significant variable $2B+ cost structure • Ability to drive operational improvements Experts in Complex • Positive or negative EBITDA Transactions
Corporate Divestitures Public-to-Private
Private Transactions Special Situations
4 Core Competency
Acquiring Non-Core Divisions of the World’s Largest Corporations
Acquired the Network Acquired Wyndham Acquired the North Acquired LifeScan from Power business from European Vacation Rentals American tin plate division Johnson & Johnson for Emerson, rebranded as from Wyndham Worldwide. from Ball Corporation. $2.1 billion. Vertiv. Emerson retained a Rebranded as Awaze. Rebranded as Ball minority interest in the Metalpack. business.
The “O” The “O” The “O” The “O” • Build on portfolio of product • Integrate operations of • Drive, support and amplify • Drive share and incremental and service offerings for businesses acquired in the management identified value from digital data through power, thermal, and IT past. operational improvements. continued investment in management capabilities. technologies and software. • Streamline operations and • Improve distribution and • Rationalize complex systems structures. logistics via freight and • Increase online, retail, and landscape inherited through warehouse optimization, Point-of-Care presence in • Cross-sell inventory across multiple acquisitions. sourcing and overall plant floor select markets. brands and Europe. operations. • Emphasize growth, speed, • Improve operations and agility, and profitability. • Grow via organic opportunities supply chain. and revenue focused initiatives.
Status Status Status Status Divested: February 2020 Current: Acquired May 2018 Current: Acquired July 2018 Current: Acquired October 2018
5 Creating Value Across Transaction Types
Non-Core Divestitures/Complex Carve-Outs
Provider of blood glucose Rebranded as Neovia Rebranded as Vertiv; Manager of European monitoring products and Logistics; Global integrated Provider of mission-critical vacation rentals solutions for the treatment logistics services provider EUROPE infrastructure technologies of diabetes
Traditional Private Equity
Provides mission-critical Global supplier of injection Global aerospace and services to U.S. Portable sanitation molding equipment and defense supply chain government agencies and and related site services to the plastics service provider international organizations service solutions industry
Distressed Businesses/ Industries in Transition
Rebranded as AEES; Australian print and Provider of wire harness Provider of wind turbine Local daily newspaper online directories and electrical distribution parts and services business products to automotive business OEMs and suppliers
Public-to-Private
Equipment rental for electronic test and Provider of labels and Provider of electronics Metals processing and measurement packaging solutions manufacturing distribution equipment services (“EMS”)
Special Situations
Equipment rental Rebranded as Global manufacturer of services provider in HydroChem; Provider A market-leading North capacitors used in a the U.S. primarily of industrial services American oilfield broad range of serving commercial to the oil, gas, and services provider electronics contractors energy industries
6 The Platinum Difference: M&A&O®
At Platinum Equity, the “O” is fully integrated into everything we do.
People Process Results
It starts with our people – real Integration at the root level Well-informed, seamless operators • In-house operations specialists dig in transactions • Large in-house team with real from the very beginning • Ability to close with speed and world industry experience • Unique expertise drives thoughtful certainty • They know how to drive change diligence and tailored solutions in • Understand business operations better from the ground up often complex situations • Find value and opportunities where • Hands-on expertise across many • Transition planning starts early, others do not functional areas: ensuring seamless carve-outs • Manufacturing • M&A stays engaged post-close to build enterprise value M&A Execution • IT • Distribution Operational toolkit Portfolio Operations & Transitions Operations • Supply Chain • Production Rationalization • Procurement • CapEx investments to take Company Management • Real Estate advantage of strategic opportunities • HR & Benefits • Cost Reduction • Treasury & Cash Management • Restructuring Differentiated approach to • Sales & Marketing • Enhancing Revenue Growth unlocking value • Corporate Communications • Pricing Strategy • Apply disciplined operational • Legal • Margin Expansion improvements to build enterprise value • Tax • Digital Transformation • Collaborate with management to • Accounting empower them to drive change • Technology • Invest in systems for long-term growth
7 Evolution of the “O” Playbook
Pre-Fund / Fund I Fund I / Fund II Fund II / Fund III Fund III / Fund IV Fund IV / Fund V
Operations 5.0 Human Capital
Operations 4.0 Digital Transformation
Operations 3.0 Growth, Pricing & Margin Expansion
Operations 2.0 Operational Excellence & Merger Integration
Operations 1.0 Culture, Intensity, Cost, & Balance Sheet
8 Transacting with Industry Leaders
9 34 Deals in 12 Months
9 Platform Acquisitions
PENDING PENDING
Ingram Micro Nesco Mad Engine Confidential Signed December 2020 Signed December 2020 December 2020 December 2020
L&R Distributors Deluxe Farnese Vini Biscuit International June 2020 June 2020 March 2020 February 2020
Cision January 2020
7 Divestitures
PrimeSource Compart Systems Assets of Sigura Confidential December 2020 December 2020 October 2020 September 2020
DoubleTree Bloomington PAE Vertiv Minneapolis South Hotel February 2020 February 2020 July 2020
Reflects deals signed or closed January 1, 2020 – December 31, 2020.
10 34 Deals in 12 Months (contd.)
18 Add-On Acquisitions
PENDING Able Spiffy Biffy, LLC (USS) Narvik HomeParcs (Awaze) Confidential October 2020 July 2020 Signed December 2020 Sanitary Solutions Inc (USS) Cinevision (Deluxe) Sundog Media Toolkit October 2020 June 2020 (Deluxe) December 2020 Charles Craft Co (Elevate Bond Manufacturing (Orbit) Textiles) June 2020 BCC Software (BlueCrest) October 2020 December 2020 Confidential Global Site Services (USS) April 2020 M.A.S.S. Services (USS) September 2020 December 2020 Digital Ventures (Centerfield) Confidential January 2020 BuyerZone.com (Centerfield) September 2020 December 2020 Wesco Aircraft (Pattonair) Confidential January 2020 Armadillo Portable Toilets July 2020 (USS) November 2020
Reflects deals signed or closed January 1, 2020 – December 31, 2020.
11 Select Activity Highlights
Acquisitions
EUROPE
$7.2B Purchase Price $1.3B Purchase Price $2.1B Purchase Price Small Cap Fund Technology Hospitality Healthcare Acquisition Consumer Divestiture from HNA Divestiture from Divestiture from Technology Co Wyndham Worldwide Johnson & Johnson Private Transaction Signed December 2020 May 2018 October 2018 February 2019
Divestitures
Sold to Cerberus Sold via Merger to Sold to United Rentals Sold to Global Management, L.P. SPAC for $2.1B Media for €1.2 billion Business Services Equipment Rental November 2018 Aerospace Services October 2018 October 2018 October 2018
The portfolio companies identified here are indicative of recent transactions that Platinum Equity has made and examples of companies it seeks to acquire. For an exhaustive list of all of Platinum Equity’s portfolio companies please see slides 14 to 22.
12 Our Current Portfolio Current Portfolio
Company Overview Description
Transaction Type: Divestiture from Emerson Embedded Computing division develops embedded computer systems for OEMs and systems integrators. Embedded Power Revenue: $439 Million division designs and manufactures power conversion products. Industry: Technology Acquisition Date: November 2013
Transaction Type: Private Transaction Comprises three business lines for government payments and corrections services that operate independently under the Revenue: $746 Million Aventiv corporate umbrella: Securus Technologies, JPay, and Industry: Business Services AllPaid. Acquisition Date: November 2017
Transaction Type: Divestiture from Wyndham Worldwide One of the largest managers of holiday rentals in Europe, Awaze has more than 110,000 units in over 600 destinations in Revenue: $657 Million more than 25 countries. The business operates more than two Industry: Hospitality dozen local brands, including cottages.com, James Villa Acquisition Date: May 2018 Holidays, Landal GreenParks, Novasol, and Hoseasons.
Transaction Type: Divestiture from Ball Corporation A packaging company that manufactures steel containers for aerosol products, food, household consumables, pet food, Revenue: $738 Million nutritional, and other products in the United States. Industry: Industrials Acquisition Date: July 2018
Transaction Type: Private Transaction A leading European manufacturer of private label sweet biscuits, including traditional biscuits and a growing portfolio of Revenue: $578 Million products for consumers with specific dietary requirements. Industry: Food and Beverage Acquisition Date: February 2020
14 Current Portfolio
Company Overview Description
Transaction Type: Divestiture from Pitney Bowes A global leader in enterprise print, mail, and customer communications solutions to a variety of industries and end- Revenue: $418 Million markets, providing a wide range of inserting, sorting, and Industry: Business Services printing-related equipment primarily for the transactional and Acquisition Date: July 2018 direct mail industries.
Transaction Type: Divestiture from Broadway Industrial Group Acquired the Broadway Foam Plastics Solutions business along with Compart Flow Control Devices. Broadway is a supplier of Revenue: $128 Million protective packaging solutions, insulation, and component Industry: Manufacturing products. Acquisition Date: December 2016
Transaction Type: Private Transaction Provider of technology-driven, digital performance marketing solutions to drive lead generation and end-to-end customer Revenue: $266 Million acquisition. Industry: Technology Acquisition Date: December 2019
Transaction Type: Public-to-Private A leading global provider of software and services to public relations and marketing communications professionals. Revenue: $731 Million Industry: Technology Acquisition Date: January 2020
Transaction Type: Divestiture from United Technologies Provider of wind turbine components and services. Total installed base of over 700 Clipper turbines at customer sites in Revenue: $14 Million the U.S. and Mexico. Industry: Natural Resources Acquisition Date: August 2012
15 Current Portfolio
Company Overview Description
Transaction Type: Divestiture from Multiple Sellers Processes freight bills, mines data, and consults on logistics of the global freight market. Revenue: $21 Million Industry: IT Services Acquisition Date: October 2001
Transaction Type: Divestiture from WorldCom Provides billing and back-office outsourcing services to telecommunications carriers, resellers, agents, and service Revenue: N/A providers. Industry: Telecom Acquisition Date: March 1997
Transaction Type: Private Transaction A marine contractor that specializes in cruise ship interiors, providing both new build and refit services to ship builders and Revenue: $190 Million cruise operators. Industry: Industrials Acquisition Date: October 2019
Transaction Type: Divestiture from Deluxe A leading provider of end-to-end post production services for the world’s leading content production studios. Revenue: $318 Million Industry: Entertainment Acquisition Date: June 2020
Transaction Type: Public-to-Private Equipment rental company providing electronic test and measurement equipment to customers in the U.S., Europe, Revenue: $337 Million and Asia. Industry: Equipment Rental Acquisition Date: August 2016
16 Current Portfolio
Company Overview Description
Transaction Type: Multiple Diversified manufacturer of textiles with operations in the U.S., Mexico, and China. Rebranded from International Textile Group Revenue: $1 Billion following acquisition of American & Efird. Industry: Diversified Industrials Acquisition Date: October 2016
Transaction Type: Private Transaction Farnese Vini acquires grapes from local farmers, oversees production and markets wines under specialty labels to Revenue: $90 Million customers internationally. Industry: Food and Beverage Acquisition Date: March 2020
Transaction Type: Private Transaction Hunterstown is an 810 MW natural gas-fired, combined-cycle power plant built in 2003 and located in the PJM region. Revenue: $172 Million Produces and sells electric energy, capacity, and ancillary Industry: Natural Resources services to the wholesale power generation sector. Acquisition Date: June 2018
Transaction Type: Private Transaction Global supplier of injection molding equipment and services to the plastics industry. A leading provider of PET systems, Revenue: $1.2 Billion aftermarket tooling, medical molds, and specialty closure molds. Industry: Diversified Industrials Acquisition Date: March 2018
Transaction Type: Private Transaction Global provider of frozen seafood products, including hake, Argentine red shrimp and squid. The company is vertically Revenue: $407 Million integrated across the full value chain, including wild catch, Industry: Food and Beverage processing, commercialization and distribution. Acquisition Date: May 2019
17 Current Portfolio
Company Overview Description
Transaction Type: Private Transaction A leading global aerospace and defense supply chain service provider. Headquartered in Derby, UK. Pattonair merged with Revenue: $530 Million Wesco Aircraft and the combined company now operates as Industry: Aerospace, Defense & Government Services Incora. Acquisition Date: October 2017
Transaction Type: Multiple Private Transactions Provider of outsourced design center and installation services to homebuilders for new-build housing construction as well as Revenue: $1.7 Billion repair and remodel services to multi-family property owners. Industry: Building Products & Construction Merged with Interior Specialist, Inc. under the Interior Logic 1 Acquisition Date: March 2017 and May 2018 Group name in May 2018.
Transaction Type: Divestiture from Conagra Foods National, full-line food ingredient distributor, operating from 24 distribution locations across the United States. Revenue: $500 Million Industry: Food & Beverage Acquisition Date: July 2016
Transaction Type: Divestiture from Newell Brands Provider of yearbooks, publications, jewelry and consumer goods that serve the K-12 educational, college and professional Revenue: $716 Million sports segments. Industry: Consumer Acquisition Date: December 2018
Transaction Type: Private Transaction A national wholesale distributor of cosmetics and general merchandise. Revenue: $244 Million Industry: Distribution Acquisition Date: June 2020
1 Post-merger, owned jointly by Littlejohn & Co. and Platinum Equity
18 Current Portfolio
Company Overview Description
Transaction Type: Divestiture from Johnson & Johnson Purchased from Johnson & Johnson. Provider of blood glucose monitoring products and solutions for the treatment of diabetes. Revenue: $1 Billion Industry: Healthcare Acquisition Date: October 2018
Transaction Type: Private Transaction An international trade-services firm which specializes in customs brokerage, freight forwarding and trade consulting. It is Revenue: $324 Million Canada’s largest customs broker and the third-largest entry filer Industry: Business Services in the United States. Acquisition Date: April 2019
Transaction Type: Private Transaction A full-service, global apparel and accessories company that creates, designs, produces and distributes a full range of Revenue: $400 Million licensed, private label and branded products Industry: Business Services Acquisition Date: December 2020
Transaction Type: Multiple A leading global provider of labels and packaging solutions. Merged with WS Packaging in July 2019; WS Packaging Revenue: $2.1 Billion operates as a Multi-Color business unit. Industry: Packaging Acquisition Date: February 2018 and July 2019
Transaction Type: Private Transaction Purchased parent company, Pro-Mark, from founders. Orbit is a provider of irrigation systems and related products for residential Revenue: $238 Million customers. Hydro-Rain serves the professional market with a Industry: Consumer line of contractor-grade irrigation and lighting products. Acquisition Date: February 2019
19 Current Portfolio
Company Overview Description
Transaction Type: Public-to-Private A leading electronics manufacturing services (“EMS”) provider, offering design, manufacturing, testing, and supply chain Revenue: $260 Million services to global customers. Industry: Industrials Acquisition Date: April 2019
Transaction Type: Private Transaction Purchased as Ying Shing from the founder. Vertically integrated manufacturer of plastic injection molded and metal stamping Revenue: $168 Million components. Rebranded as Pearl Engineered Solutions. Industry: Diversified Industrials Acquisition Date: April 2015
Transaction Type: Private Transaction A leading provider of gift, loyalty, and membership card marketing solutions, including card production, personalization, Revenue: $137 Million fulfillment, direct mail, and print services. This is the first Industry: Industrials acquisition out of the Small Cap Fund. Acquisition Date: June 2018
Transaction Type: Public-to-Private Processes, fabricates, and distributes metal sheet, coil, plate, and long products through service centers in North America and Revenue: See public filings China. IPO’d in August 2014. Industry: Metals & Mining Acquisition Date: October 2007
Transaction Type: Divestiture from Telstra A leading print and online directory and digital advertising services provider to the Australian market. Revenue: $227 Million Industry: Media Acquisition Date: February 2014
20 Current Portfolio
Company Overview Description
Transaction Type: Divestiture from Lonza Acquired Lonza’s water care business. Rebranded as Sigura. A leading provider of innovative water treatment solutions with a Revenue: $591 Million leading global consumer brand in residential pool care and key Industry: Consumer // Chemicals positions in high growth industrial and municipal water care Acquisition Date: February 2019 markets.
Transaction Type: Private Transaction A leading distributor of heavy-duty truck and trailer products, and provider of advanced repair services. Revenue: $572 Million Industry: Distribution Acquisition Date: October 2019
Transaction Type: Private Transaction A leading provider of portable sanitation and related site service solutions in the United States. Revenue: $897 Million Industry: Industrial Services Acquisition Date: August 2017
Transaction Type: Divestiture from Cox Media Group One of the nation’s largest direct marketing service providers, reaching more than 100 million consumers through Valpak Revenue: $225 Million household mailers and Savings.com, an online provider of digital Industry: Media coupons and promotional codes. Acquisition Date: December 2016
Transaction Type: Divestiture from Staples, Inc. A leading B2B distributor of office products in Australia and New Zealand. Rebranded as Winc. Revenue: $726 Million Industry: Business Services Acquisition Date: April 2017
21 Current Portfolio
Company Overview Description
Transaction Type: Corporate Divestiture Provides temporary access mat solutions to remote construction sites, primarily serving the oil/gas (pipeline) and powerline Revenue: $477 Million sectors in the U.S. that enable the navigation of difficult terrain Industry: Industrials and mitigation of environmental disruption, particularly in Acquisition Date: July 2018 federally protected wetland.
Portfolio company revenues shown are annual for the TTM year ending September 30, 2020. For companies acquired after September 30, 2020, revenues shown reflect 2020 annual revenue.
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