An Introduction to Platinum Equity
April 2020
©2020 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 250+ $33B+ 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 20 years Fund IV 2016 Vintage $6.5B
Current Investment Vehicles
Small Cap 2018 Vintage $1.5B Portfolio company revenue as of December 31, 2019. 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 130K+ Employees Across 7 Continents
23k+ ~33k 62k+
2k+ 3k+ ~5k
Reflects portfolio company headcount by continent as of December 2019. Excludes Ryerson and Key Energy. ~500 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 38 Deals in 12 Months
9 Platform Acquisitions
Farnese Vini Biscuit International Cision Centerfield March 2020 February 2020 January 2020 December 2019
De Wave Group TruckPro Iberconsa Livingston October 2019 October 2019 May 2019 April 2019
PCI Limited April 2019
11 Divestitures
Embassy Suites Sheraton Pittsburgh PAE Vertiv Boca Raton November 2019 February 2020 February 2020 December 2019 Pittsburgh
Holiday Inn San Artesyn Embedded Artesyn The Citizen Hotel Antonio International Computing Embedded Power Embedded Power July 2019 Embedded Computing September 2019 Airport July 2019 July 2019
Battlespace Flight Services GreenLineSystems Data Blue (from PAE) (from PAE) April 2019 May 2019 April 2019
Reflects deals signed or closed April 1, 2019 – March 31, 2020.
10 38 Deals in 12 Months (contd.)
18 Add-On Acquisitions
Digital Ventures Mike’s Flooring Companies Alpha Precision & Engineering (Centerfield) (ILG) (Compart Systems) January 2020 September 2019 June 2019
Wesco Aircraft (Pattonair) Adams Aviation (Pattonair) Johnny on the Spot (USS) January 2020 September 2019 May 2019
Clean Portables (USS) Dave’s Septic Services Fincallorca (Awaze) December 2019 (USS) April 2019 August 2019 S&B Porta-Bowl Restrooms Travel a la Carte (Awaze) & Subs (USS) Flooring Systems (ILG) April 2019 November 2019 August 2019 Sin City Portables and Posh A&A Portables (USS) Klein’s Restoration (Yak Restrooms (USS) October 2019 Access) April 2019 July 2019 PBS Rentals, Inc and PBS Estuary Cottages (Awaze) Services, Inc. (USS) Multi-Color Corporation (WS April 2019 October 2019 Packaging Group) July 2019
Reflects deals signed or closed April 1, 2019 – March 31, 2020.
11 Select Activity Highlights
Acquisitions
EUROPE
$3.85B Purchase Price $1.3B Purchase Price $2.1B Purchase Price Small Cap Fund Diversified Industrials Hospitality Healthcare Acquisition Consumer Private Transaction Divestiture from Divestiture from March 2018 Wyndham Worldwide Johnson & Johnson Private Transaction 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: Public-to-Private Transports dry and liquid cargo by barge on U.S. inland waterways, and provides shipbuilding and repair services. Revenue: $974 Million Acquired AEP River Operations in November 2015. Industry: Transportation & Logistics Acquisition Date: December 2010
Transaction Type: Divestiture from Emerson Embedded Computing division develops embedded computer systems for OEMs and systems integrators. Embedded Power Revenue: $523 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: $698 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: $795 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: $676 Million nutritional, and other products in the United States. Industry: Industrials Acquisition Date: July 2018
14 Current Portfolio
Company Overview Description
Transaction Type: Private Transaction A leading European manufacturer of private label sweet biscuits, including traditional biscuits and a growing portfolio of Revenue: €500M+ products for consumers with specific dietary requirements. Industry: Food and Beverage Acquisition Date: February 2020
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: $432 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: $122 Million protective packaging solutions, insulation, and component Industry: Manufacturing products. Compart is a supplier of high-precision, machined, Acquisition Date: December 2016 metal components including valves, fittings, sensors, and related components.
Transaction Type: Private Transaction Provider of technology-driven, digital performance marketing solutions to drive lead generation and end-to-end customer Revenue: $209 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: $750 Million Industry: Technology Acquisition Date: January 2020
15 Current Portfolio
Company Overview Description
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: $21 Million the U.S. and Mexico. Industry: Natural Resources Acquisition Date: August 2012
Transaction Type: Divestiture from Multiple Sellers Processes freight bills, mines data, and consults on logistics of the global freight market. Revenue: $20 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: $241 Million cruise operators. Industry: Industrials Acquisition Date: October 2019
Transaction Type: Public-to-Private Equipment rental company providing electronic test and measurement equipment to customers in the U.S., Europe, Revenue: $358 Million and Asia. Industry: Equipment Rental Acquisition Date: August 2016
16 Current Portfolio
Company Overview Description
Transaction Type: Private Transaction Farnese Vini acquires grapes from local farmers, oversees production and markets wines under specialty labels to Revenue: €75 Million customers internationally. Industry: Food and Beverage Acquisition Date: March 2020
Transaction Type: Multiple Diversified manufacturer of textiles with operations in the U.S., Mexico, and China. Rebranded from International Textile Group Revenue: $1.2 Billion following acquisition of American & Efird. Industry: Diversified Industrials Acquisition Date: October 2016
Transaction Type: Multiple The Hotel Portfolio comprises hotels and hospitality businesses operating in various locations across the U.S. Revenue: N/A Hotel Portfolio Industry: Hospitality Acquisition Date: Multiple Acquisitions
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: $195 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: $1.3 Billion aftermarket tooling, medical molds, and specialty closure molds. Industry: Diversified Industrials Acquisition Date: March 2018
17 Current Portfolio
Company Overview Description
Transaction Type: Private Transaction Global provider of frozen seafood products, including hake, Argentine red shrimp and squid. The company is vertically Revenue: $398 Million integrated across the full value chain, including wild catch, Industry: Food and Beverage processing, commercialization and distribution. Acquisition Date: May 2019
Transaction Type: Private Transaction A leading global aerospace and defense supply chain service provider. Headquartered in Derby, UK. Pattonair merged with Revenue: $560 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: $1.8 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: $515 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: $763 Million sports segments. Industry: Consumer Acquisition Date: December 2018
1 Post-merger, owned jointly by Littlejohn & Co. and Platinum Equity
18 Current Portfolio
Company Overview Description
Transaction Type: Distressed-for-Control North American market leader in the provision of rig-based well servicing, fishing and rental, fluid management, and coiled Revenue: See public filings tubing services. Platinum acquired a controlling interest in Industry: Natural Resources December 2016, publicly traded on NYSE: KEG. Acquisition Date: December 2016
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: $356 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: 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: $184 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: $244 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: $197 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: $194 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: Divestiture from ITOCHU One of the largest 2-step distributors of construction fasteners in North America. One of the largest building products distributors Revenue: $1.4 Billion in North America. Proprietary "Grip-Rite" brand is the #1 Industry: Building Products construction fastener brand in the United States. Acquisition Date: May 2015
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
20 Current Portfolio
Company Overview Description
Transaction Type: Divestiture from Telstra A leading print and online directory and digital advertising services provider to the Australian market. Revenue: $276 Million Industry: Media Acquisition Date: February 2014
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: $567 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: $630 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: $748 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: $224 Million household mailers and Savings.com, an online provider of digital Industry: Media coupons and promotional codes. Acquisition Date: December 2016
21 Current Portfolio
Company Overview Description
Transaction Type: Divestiture from Staples, Inc. A leading B2B distributor of office products in Australia and New Zealand. Rebranded as Winc. Revenue: $861 Million Industry: Business Services Acquisition Date: April 2017
Transaction Type: Corporate Divestiture Provides temporary access mat solutions to remote construction sites, primarily serving the oil/gas (pipeline) and powerline Revenue: $496 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 December 31, 2019. For companies acquired after December 31, 2019, revenues shown reflect 2018 annual revenue.
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