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LOGISTICS & TRANSPORTATION INDUSTRY
Q1 2020 VALUATION UPDATE LOGISTICS & TRANSPORTATION INDUSTRY – VALUATION UPDATE
“Industry valuation multiples have varied significantly due to the recent market dislocation caused by COVID-19’s global pandemic. We present below valuation multiples before the market disruption (February 19, 2020) as well as the latest available as of the publication date of this report” CURRENT MARKET SITUATION PUBLIC COMPARABLE COMPANIES - GLOBAL ROAD FREIGHT Annual Average Pre Downturn After Downturn Market Annual Enterprise EBITDA EV / EBITDA February 19, 2020 April 24, 2020 Company Country Cap. Revenue Value Margin EV / EV / EV / EV / US$MM US$MM 2018 2019 EBITDA Revenue EBITDA Revenue
CJ Logistics KOR $2,149 $4,950 $9,021 7.0% 13.6x 14.2x 12.9x 0.7x 8.4x 0.6x Corporation
J.B. Hunt Transport USA $10,715 $11,969 $9,356 13.3% 13.0x 10.9x 10.5x 1.4x 9.3x 1.3x Services, Inc.
Knight-Swift Transportation USA $6,092 $7,046 $4,764 18.8% 14.4x 6.7x 7.4x 1.6x 7.2x 1.5x Holdings Inc.
Landstar System, USA $3,943 $3,870 $3,984 7.9% 14.3x 11.3x 12.3x 1.0x 12.3x 1.0x Inc.
Nippon Express Co., JPN $4,366 $6,363 $19,364 5.7% 7.4x 6.1x 6.4x 0.4x 5.7x 0.3x Ltd.
Old Dominion USA $16,823 $16,511 $4,106 26.2% 13.9x 11.7x 16.3x 4.3x 15.1x 4.0x Freight Line, Inc.
Schneider National, USA $3,720 $3,564 $4,747 13.5% 8.1x 5.5x 5.5x 0.8x 5.3x 0.8x Inc.
TFI International CAN $2,244 $3,566 $3,660 14.4% 9.1x 7.5x 7.6x 1.2x 5.9x 1.0x Inc. Mean 13.3% 11.7x 9.2x 9.9x 1.4x 8.6x 1.3x Median 13.4% 13.3x 9.2x 9.1x 1.1x 7.8x 1.0x
Logistics & Transportation Source: Capital IQ, Mergermarket Seale & Associates Industry Q1 2020 Creative Solutions. Trusted Advice. LOGISTICS & TRANSPORTATION INDUSTRY – VALUATION UPDATE
CURRENT MARKET SITUATION PUBLIC COMPARABLE COMPANIES - GLOBAL
RAIL FREIGHT Annual Average Pre Downturn After Downturn Cap. Annual Enterprise EBITDA EV / EBITDA February 19, 2020 April 24, 2020 Company Country Mkt. Revenue Value Margin EV / EV / EV / EV / US$M US$MM 2018 2019 EBITDA Revenue EBITDA Revenue Aurizon Holdings AUS $5,494 $7,631 $2,097 49.4% 8.3x 9.7x 9.6x 4.7x 8.1x 4.0x Limited
Canadian National CAN $56,313 $66,412 $11,501 50.3% 13.2x 13.3x 13.1x 6.8x 12.0x 6.3x Railway Company
Canadian Pacific CAN $31,103 $38,072 $5,692 55.5% 12.8x 12.6x 13.3x 7.4x 11.7x 6.7x Railway Limited
CSX Corporation USA $49,187 $63,943 $11,779 53.1% 12.1x 11.1x 11.3x 6.4x 9.5x 5.4x
GMéxico MEX $3,295 $4,874 $2,525 42.7% 10.1x 7.7x 8.3x 3.3x 6.0x 2.5x Transportes
Kansas City USA $12,487 $16,021 $2,923 50.4% 11.0x 11.5x 14.0x 7.2x 10.5x 5.5x Southern
Norfolk Southern USA $41,312 $53,746 $11,296 46.0% 11.2x 11.5x 12.1x 5.9x 9.8x 4.8x Corporation
Union Pacific USA ####### $134,269 $21,553 51.1% 12.2x 13.2x 13.7x 7.0x 11.8x 6.2x Corporation
West Japan Railway JPN $11,863 $20,876 $14,280 23.9% 6.8x 7.2x 7.2x 1.7x 6.0x 1.4x Company Mean 46.9% 10.9x 10.9x 11.4x 5.6x 9.5x 4.8x Median 50.3% 11.2x 11.5x 12.1x 6.4x 9.8x 5.4x
Logistics & Transportation Source: Capital IQ, Mergermarket Seale & Associates Industry Q1 2020 Creative Solutions. Trusted Advice. LOGISTICS & TRANSPORTATION INDUSTRY – VALUATION UPDATE
CURRENT MARKET SITUATION PUBLIC COMPARABLE COMPANIES - GLOBAL
AIR FREIGHT Annual Average Pre Downturn After Downturn Market Annual Enterprise EBITDA EV / EBITDA February 19, 2020 April 25, 2020 Company Country Cap. Revenue Value Margin EV / EV / EV / EV / US$MM US$MM 2018 2019 EBITDA Revenue EBITDA Revenue
Bollore FRA $7,336 $33,651 $27,879 10.4% 18.6x 12.5x 11.5x 1.5x 11.6x 1.3x
C.H. Robinson USA $9,493 $10,601 $15,310 5.7% 15.6x 12.2x 11.6x 0.7x 11.1x 0.7x Worldwide, Inc.
Deutsche Post AG DEU $34,773 $49,881 $71,359 7.6% 9.7x 8.0x 8.5x 0.9x 6.7x 0.7x
Expeditors International of USA $12,083 $11,247 $8,175 10.0% 14.2x 13.6x 12.3x 1.5x 12.2x 1.4x Washington, Inc.
FedEx Corporation USA $32,149 $63,825 $69,666 5.8% 9.2x 10.1x 11.4x 1.1x 6.5x 0.9x
Financière de FRA $2,631 $32,722 $27,879 10.4% 16.9x 11.2x 10.2x 1.3x 11.3x 1.2x l'Odet SA
United Parcel USA $85,999 $108,453 $74,094 10.7% 12.0x 13.8x 12.2x 1.5x 11.0x 1.5x Service, Inc.
ZTO Express CHN $22,647 $20,416 $3,175 30.4% 16.4x 16.4x 19.3x 5.9x 20.1x 6.4x (Cayman) Inc. Mean 11.4% 14.1x 12.2x 12.1x 1.8x 11.3x 1.8x Median 10.2% 14.9x 12.4x 11.5x 1.4x 11.2x 1.2x
Logistics & Transportation Source: Capital IQ, Mergermarket Seale & Associates Industry Q1 2020 Creative Solutions. Trusted Advice. LOGISTICS & TRANSPORTATION INDUSTRY – VALUATION UPDATE
CURRENT MARKET SITUATION PUBLIC COMPARABLE COMPANIES - GLOBAL
SEA FREIGHT Annual Average Pre Downturn After Downturn Market Annual Enterprise EBITDA EV / EBITDA February 19, 2020 April 24, 2020 Company Country Cap. Revenue Value Margin EV / EV / EV / EV / US$MM US$MM 2018 2019 EBITDA Revenue EBITDA Revenue A.P. Møller - Mærsk DNK $17,673 $29,940 $38,890 11.5% 11.7x 8.8x 7.3x 0.9x 5.1x 0.8x A/S
Kuehne + Nagel CHE $17,216 $18,647 $21,780 5.9% 15.1x 13.6x 13.0x 1.0x 10.5x 0.9x International AG
Hapag-Lloyd DEU $22,582 $28,952 $14,149 11.8% 11.3x 9.5x 10.8x 1.6x 13.7x 2.1x Aktiengesellschaft
Mitsui O.S.K. Lines, JPN $1,984 $12,435 $10,666 10.8% 13.5x 12.2x 10.1x 1.2x 9.5x 1.2x Ltd.
Nippon Yusen JPN $2,144 $12,223 $15,624 7.7% 11.7x 12.7x 9.2x 0.8x 8.7x 0.8x Kabushiki Kaisha
MISC Berhad MYS $7,987 $9,956 $2,189 40.1% 9.0x 10.9x 10.0x 4.9x 10.3x 4.8x
Kirby Corporation USA $2,942 $4,456 $2,838 16.3% 14.1x 12.3x 13.4x 2.1x 8.3x 1.6x
Orient Overseas HKG $2,612 $2,952 $6,879 6.7% 16.1x 10.2x 6.9x 0.7x 4.4x 0.4x Limited Mean 13.8% 12.8x 11.3x 10.1x 1.7x 8.8x 1.6x Median 11.1% 12.6x 11.6x 10.0x 1.1x 9.1x 1.0x
Logistics & Transportation Source: Capital IQ, Mergermarket Seale & Associates Industry Q1 2020 Creative Solutions. Trusted Advice. LOGISTICS & TRANSPORTATION INDUSTRY – VALUATION UPDATE
GLOBAL TRANSACTIONS ROAD FREIGHT
% Size EV / EV / Date Target Country Description Buyer Acquired US$MM EBITDA Revenue
Warehousing and Jan-20 Prime Distribution Services, Inc. USA C.H. Robinson Worldwide, Inc. 100% $10 - 2.1x freight services Xin Yuan Enterprises Group Asphalt tanker Oct-19* CHN Well Grace Trading Co., Limited 12% $10 10.3x 3.9x Limited chatering services Dry-van truck load Aug-19 Millis Transfer, Inc. USA Heartland Express, Inc. 100% $150 - 1.0x services
Jun-19 Chalmers Limited AUS Road freight services Qube Logistics (Aust) Pty Ltd 100% $53 NM 1.0x
Mar-19 Space Cargo Headquarters SA ESP Road freight services C.H. Robinson Worldwide, Inc. 100% $53 - 0.6x
Autotransportes El Bisonte, S.A. DE Aug-18 MEX Road freight services Grupo Traxión, S.A.B. de C.V. 100% $76 7.1x 1.4x C.V. Sichuan Fulin Transportation Jun-18 CHN Road freight services Undisclosed 19% $150 - - Group Co., Ltd. CM Downton (Haulage Mar-18 GBR Logistic services EmergeVest Limited 100% $104 - 0.6x Contractors) Ltd. Two modern Big Box logistics Oct-17 GBR Logistic centres Tritax Big Box REIT plc 100% $104 - 0.0x facilities at Prologis Park
Aug-17 Milgram & Company Ltd. CAN Logistic services C.H. Robinson Worldwide, Inc. 100% $49 - 0.4x
Jul-17 Interstate Distributor Co., Inc. USA Road freight services Heartland Express, Inc. 100% $117 - 0.3x
Apr-17 Swift Transportation Company USA Road freight services Knight Transportation, Inc. 100% $2,971 - -
Jul-16 Paragon Automotive Ltd. GBR Logistic services BCA Marketplace plc 100% $174 12.1x 0.8x
Road freight services Jul-16 Span-Alaska Transportation, Inc. USA Matson Logistics, Inc. 100% $198 9.4x - in Alaska
Jun-16 Palletways Group Limited GBR Distribution services Imperial Mobility International BV 100% $235 9.9x 1.2x
NM: Not Meaningful Mean 9.8x 1.1x *Announced Median 9.9x 0.9x
Logistics & Transportation Source: Capital IQ, Mergermarket Seale & Associates Industry Q1 2020 Creative Solutions. Trusted Advice. LOGISTICS & TRANSPORTATION INDUSTRY – VALUATION UPDATE
GLOBAL TRANSACTIONS RAIL FREIGHT
% Size EV / EV / Date Target Country Description Buyer Acquired US$MM EBITDA Revenue
Container leasing Brookfield Asset Management Inc. Jul-19 Genesee & Wyoming Inc. USA 100% $9,556 13.1x 4.1x services and logistics (TSX:BAM.A)
Container leasing Jul-18 VTG Aktiengesellschaft DEU Morgan Stanley Infrastructure Inc. 42% $2,736 9.7x 3.1x services and logistics
May-18 GatewayRail Freight Limited IND Train freight services Gateway Distriparks Limited 1% $98 - -
Inner Mongolia Yitai Zhundong Yanzhou Coal Mining Ordos Dec-17 CHN Train freight services 25% $294 - - Railway Co., Ltd. Nenghua Co., Ltd.
GMéxico Transportes, S.A.B. de Mar-17 Florida East Coast Holdings Corp. USA Train freight services 100% $2,100 13.6x 5.2x C.V.
Feb-17 Rumo S.A. BRA Train freight services Cosan S.A. 1% $90 NM 10.2x
Nov-16 TSS Cargo a.s. CZE Train freight services CEFC China Energy Company 80% $276 - -
Container leasing Oct-16 VTG Aktiengesellschaft DEU Morgan Stanley Infrastructure Inc. 29% $264 7.6x 2.4x services and logistics
Providence and Worcester Aug-16 USA Train freight services Genesee & Wyoming Inc. 100% $131 NM 3.5x Railroad Company
Railway asset Mar-16 Pacific National Holdings Pty Ltd AUS GIC PTE, CPP, entre otros 100% $9,570 12.0x 3.4x management
NM: Not Meaningful Mean 11.1x 5.0x *Announced Median 12.0x 3.5x
Logistics & Transportation Source: Capital IQ, Mergermarket Seale & Associates Industry Q1 2020 Creative Solutions. Trusted Advice. LOGISTICS & TRANSPORTATION INDUSTRY – VALUATION UPDATE
GLOBAL TRANSACTIONS AIR FREIGHT
% Size EV / EV / Date Target Country Description Buyer Acquired US$MM EBITDA Revenue
Panalpina Welttransport (Holding) Air transport and Jan-19 CHE DSV A/S (nka:DSV Panalpina A/S) 100% $5,128 17.1x 0.8x AG logistics services
Sinotrans Air Transportation Air transport and Feb-18* CHN Sinotrans Limited 39% $751 NM 1.2x Development Co., Ltd. logistics services
Operates a logistics Frasers Property Investments Jan-18 Hermes Logistics Package DEU 100% $310 - - centre (Europe) B.V.
China Merchants Logistics Holding Aug-17 CHN Logistic services Sinotrans Limited 100% $819 - 0.4x Co., Ltd.
Jan-17 Tiantian Express Co., Ltd. CHN Logistic services Jiangsu Suning Logistics Co., Ltd. 70% $428 - -
Dec-16 Dongbu Express Co., Ltd. KOR Logistic services Dongwon Industries Co., Ltd. 100% $350 6.1x 0.6x
Shanghai Eastern Airlines Logistics Eastern Airlines Industry Nov-16 CHN Logistic services 100% $353 - 0.4x Co., Ltd. Investment Company Limited
Sep-16 UK Mail Group plc GBR Logistic services Deutsche Post AG 100% $331 13.7x 0.5x
Shenzhen Chiwan Petroleum Shenzhen New Nanshan Holding Jul-16 CHN Logistic services 100% $1,557 NM NM Supply Base Co., Ltd. (Group) Co., Ltd.
NM: Not Meaningful Mean 12.3x 0.6x *Announced Median 13.7x 0.6x
Logistics & Transportation Source: Capital IQ, Mergermarket Seale & Associates Industry Q1 2020 Creative Solutions. Trusted Advice. LOGISTICS & TRANSPORTATION INDUSTRY – VALUATION UPDATE
GLOBAL TRANSACTIONS SEA FREIGHT
% Size EV / EV / Date Target Country Description Buyer Acquired US$MM EBITDA Revenue Logistics services Feb-20* DP World PLC ARE and transportation Port & Free Zone World FZE 20% $2,718 8.7x 3.7x services
Jun-19 Ignazio Messina & C. S.p.A. ITA Logistics services Marinvest S.R.L. 49% $28 - -
Shanghai Zhenyi Enterprise Milkyway Chemical Supply Chain Mar-19 CHN Logistics services 100% $22 - 6.4x Development Limited Company Service Co., Ltd
DP World Limited (nka:DP World Aug-18 Unifeeder A/S DNK Logistic services 100% $765 26.0x 1.6x PLC)
Transport services Mar-18 Scandlines GmbH DEU for passengers and 3i Group Plc 100% $2,115 - - cargo
Feb-18 Higman Marine Services, Inc. USA Oil transportation Kirby Corporation 100% $419 - -
Oct-17 Compañía Trasmediterránea, S.A. ESP Cargo shipping Anarafe, S.L.U. 93% $477 - -
Container logistics Orient Overseas (International) Jul-17 HKG and transport COSCO Shipping Holdings 98% $10,403 18.7x 1.3x Limited services
May-17 Navig8 Product Tankers Inc. USA Oil ships Scorpio Tankers Inc. 100% $1,204 18.3x 9.6x
Dec-16 Hamburg Süd DEU Cargo shipping Maersk Line A/S 100% $3,933 0.0x 0.6x
NM: Not Meaningful Mean 14.4x 3.9x *Announced Median 18.3x 2.7x
Logistics & Transportation Source: Capital IQ, Mergermarket Seale & Associates Industry Q1 2020 Creative Solutions. Trusted Advice. REPRESENTATIVE MEXICO ENGAGEMENTS
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Washington, D.C. | Miami | Mexico City | Monterrey Mexico Contact Information Seale & Associates James A. Seale President Creative Solutions. Trusted Advice. [email protected]
Brett M. Carmel Senior Managing Director & Co-founder Since 1999, Seale & Associates has been the trusted advisor to [email protected] Felipe Bueno Viesca highly respected public and private companies from around the Senior Director world, with a track record of success in a diverse range of [email protected] Sergio Garcia del Bosque industries. Seale is an elite boutique global investment banking Managing Director [email protected] firm with extensive experience in mergers and acquisitions Adan Sierra (M&A), corporate finance advisory, and enterprise level strategy Managing Director [email protected] consulting. Our experienced team of professionals are Carlos Hernandez committed to serving clients with excellence and integrity, while Managing Director [email protected] offering innovative ideas and solutions to address complex Alejandro Montemayor dealings. Senior Associate [email protected] ADVISOR TO LEADING COMPANIES WORLDWIDE Sofia Felix Business Development [email protected]
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