An Introduction to Platinum Equity
April 2019
Copyright © 2019 Platinum Equity Advisors, LLC. All Rights Reserved. “Mergers. Acquisitions. Operations.” is a service mark and “M&A&O” and “Platinum Equity” are registered service marks of Platinum Equity Advisors, LLC. Other trademarks and service marks belonging to affiliates of Platinum Equity and appearing herein are the property of such affiliates. It is not Platinum Equity’s intention to claim as its own any third-party trademark or service mark that may appear in this material. Platinum Equity at a Glance
Assets Under Acquisitions Portfolio Overview Management Since 1995 Revenue Founded in 1995 by Tom Gores, an entrepreneur $13B 250+ $28B+ and business operator Headquartered in Los Angeles with offices in Boston, Greenwich, New York, London, and Fund History Singapore
Highly differentiated investment approach: M&A&O® Pre-Fund 1995-2004 $500M+ • Fully integrated, operations intensive, execution-focused • Large team of in-house operations specialists Fund I 2004 Vintage $700M Experienced and stable leadership team Fund II 2007 Vintage $2.75B Proven track record and cycle-tested over more than 20 years Fund III 2012 Vintage $3.75B
Current Investment Vehicles Fund IV 2016 Vintage $6.5B
Portfolio company revenue as of December 31, 2018. Pre-fund cash invested and Platinum Equity Capital Partners Funds I, II, III, and IV; and Platinum Equity Small Cap total capital commitments. Small Cap 2018 Vintage $1.5B
2 Broad Expertise and Global Reach ~40 Portfolio Companies with 110K+ Employees Across 7 Continents
17k+ ~43k ~48k
400+ ~800 ~4k
Reflects portfolio company headcount by continent as of December 2018. Excludes Ryerson and Key Energy. 450+ Industry Agnostic Approach
Consumer / Retail Healthcare Media & Telecom Technology
Finance Industrials Natural Resources
3 A Flexible Investment Style
Investment Criteria Enterprise Value $100M–$5B+ 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 Current: Acquired November 2016 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
Technology and Global supplier of injection Global aerospace and communications services Portable sanitation molding equipment and defense supply chain to corrections and law and related site services to the plastics service provider. enforcement industries. 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 Marine transport electronic test and U.S.-focused IT Metals processing and services and barge measurement solutions provider distribution manufacturing equipment
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 from the ground up often complex situations better • Hands-on expertise across many • Transition planning starts early, • Find value and opportunities where functional areas: ensuring seamless carve-outs others do not • Manufacturing • M&A stays engaged post-close to • IT build enterprise value M&A Execution • Distribution Operational toolkit Portfolio Operations & • Supply Chain Transitions Operations • Enhancing Revenue Growth • Procurement • Margin Expansion Company • Real Estate Management • HR & Benefits • Production Rationalization • Treasury & Cash Management • Pricing Strategy Unique ability to unlock value • Sales & Marketing • CapEx investments to take • Apply disciplined operational • Corporate Communications advantage of strategic opportunities improvements to build enterprise • Legal • Cost Reduction value • Tax • Restructuring • Collaborate with management to • Accounting • Digital Transformation 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
Operations 4.0 Digital Transformation
Operations 3.0 Growth, Pricing, and Margin Expansion
Operations 2.0 Operational Excellence and Merger Integration
Operations 1.0 Culture, Intensity, Cost, and Balance Sheet
8 Transacting with Industry Leaders
9 52 Deals in 12 Months
13 Platform Acquisitions
PENDING PENDING PENDING Lonza Iberconsa Livingston PCI Limited Orbit Water Care Signed Signed Signed February 2019 Water Care February 2019 March 2019 February 2019 January 2019
Yak Access Jostens LifeScan Ball Metalpack July 2018 December 2018 October 2018 July 2018
Pitney Bowes PLI Card Marketing Hunterstown Power Wyndham European Document Messaging DMT (BlueCrest) Solutions Generation Station Vacation Rentals (Awaze) Technologies July 2018 June 2018 June 2018 EUROPE May 2018
15 Divestitures
Electro Rent UK Test Embassy & Measurement Terratest Exterion Media Enbi Suites St. Paul Business December 2018 November 2018 March 2019 UK Test & January 2019 Measurement Business February 2019
Crowne Plaza Worldwide BlueLine Rental Verra Mobility Kymera Melbourne Hotel Flight Services October 2018 October 2018 October 2018 October 2018 October 2018
Pittsburgh Winc New Fabcon Schutt Sports MXD Group Airport Marriott Zealand August 2018 April 2018 April 2018 September 2018 July 2018
Reflects deals signed or closed April 1, 2018 – March 31, 2019.
10 52 Deals in 12 Months (contd.)
24 Add-On Acquisitions PENDING Multi-Color Corporation Paramount Porta-Potty Amason’s Portable Toilets J&J Portable Toilet & (WS Packaging Group) (USS) & Holding Tanks, Inc. Septic Services, Inc. Signed February 2019 November 2018 (USS) (USS) July 2018 May 2018 Able Jons (USS) Project CPT November 2018 iBlock (Compart) OfficeMax NZ (Winc) (PrimeSource) July 2018 May 2018 March 2019 Harvard Card Systems (PLI) Central Steel and Wire American & Efird Schulz Clearwater October 2018 (Ryerson) (Elevate Textiles) Sanitation (USS) July 2018 May 2018 January 2019 PLAN ADRIA d.o.o (Awaze) Sterling Hi-5 Port-A-Potties Mr. John (USS) October 2018 Manufacturing (ILG) (USS) November 2018 June 2018 April 2018 Mulberry Cottages MEMS’ Service Division (Awaze) Nature’s Calling, Inc. and ZZZ Sanitation (USS) (Vertiv) October 2018 Fenn-Vac Environmental, April 2018 November 2018 Inc. (USS) Don’s Johns, Inc. (USS) May 2018 Euro Parking Collection August 2018 (Verra Mobility) Interior Specialists, Inc. April 2018 Intellirent (Electro Rent) (Merged with ILG)1 July 2018 May 2018
Reflects deals signed or closed April 1, 2018 – March 31, 2019. 1 Post-merger, owned jointly by Littlejohn & Co. and Platinum Equity. 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 21.
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: $1.0 Billion 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: $1.1 Billion division designs and manufactures power conversion products. Industry: Technology Acquisition Date: November 2013
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: $804.5 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: $745M nutritional, and other products in the United States. Industry: Industrials Acquisition Date: July 2018
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.
14 Current Portfolio
Company Overview Description
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: $164 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: Divestiture from United Technologies Provider of wind turbine components and services. Total installed base of over 700 Clipper turbines at customer sites in Revenue: $29 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: $19 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: Public-to-Private Equipment rental company providing electronic test and measurement equipment to customers in the U.S., Europe, Revenue: $328 Million and Asia. Industry: Equipment Rental Acquisition Date: August 2016
15 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: N/A following acquisition of American & Efird. Industry: Diversified Industrials Acquisition Date: October 2016
Transaction Type: Multiple The Hotel Portfolio comprises 5 hotel 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: $242 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
Transaction Type: Divestiture from Lonza A leading provider of innovative water treatment solutions with a leading global consumer brand in residential pool care and key Revenue: $590 Million Innovative positions in high growth industrial and municipal water care Water Care Industry: Consumer // Chemicals markets. Acquisition Date: February 2019
16 Current Portfolio
Company Overview Description
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 U.S. Revenue: $513 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: $775 Million sports segments. Industry: Consumer Acquisition Date: December 2018
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: $1.3 Billion Industry: Healthcare Acquisition Date: October 2018 1 Post-merger, owned jointly by Littlejohn & Co. and Platinum Equity
17 Current Portfolio
Company Overview Description
Transaction Type: Private Transaction Purchased parent company, Pro-Mark, from founders. Orbit is a provider of irrigation systems and related products for residential Revenue: $215 Million customers. Hydro-Rain serves the professional market with a Industry: Consumer line of contractor-grade irrigation and lighting products. Acquisition Date: February 2019
Transaction Type: Private Transaction Purchased from a private equity seller. Provider of integrated global operation and mission-critical support services to U.S. Revenue: $2.5 Billion government agencies and international organizations. Industry: Aerospace, Defense & Government Services Acquisition Date: March 2016
Transaction Type: Private Transaction A leading global aerospace and defense supply chain service provider. Headquartered in Derby, UK. Revenue: $505 Million Industry: Aerospace, Defense & Government Services Acquisition Date: October 2017
Transaction Type: Private Transaction Purchased as Ying Shing from the founder. Vertically integrated manufacturer of plastic injection molded and metal stamping Revenue: $236 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: $182 Million fulfillment, direct mail, and print services. This is the first Industry: Industrials acquisition out of the Small Cap Fund. Acquisition Date: June 2018
18 Current Portfolio
Company Overview Description
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 U.S. 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
Transaction Type: Private Transaction Provider of technology and communications services to corrections and law enforcement industries. Revenue: $684 Million Industry: Business Services Acquisition Date: November 2017
Transaction Type: Divestiture from Telstra A leading print and online directory and digital advertising services provider to the Australian market. Revenue: $358 Million Industry: Media Acquisition Date: February 2014
Transaction Type: Private Transaction A leading provider of portable sanitation and related site service solutions in the U.S. Revenue: $630 Million Industry: Industrial Services Acquisition Date: August 2017
19 Current Portfolio
Company Overview Description
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: $209 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 Emerson Provider of mission-critical infrastructure technologies for vital applications in data centers, communication networks, and Revenue: $4.3 Billion commercial and industrial environments. Divested the ASCO Industry: Industrial Technology business to Schneider Electric in October 2017. Acquisition Date: November 2016
Transaction Type: Divestiture from Staples, Inc. A leading B2B distributor of office products in Australia and New Zealand. Rebranded as Winc. Revenue: $960 Million Industry: Business Services Acquisition Date: April 2017
Transaction Type: Private Transaction A leading provider of pressure-sensitive labels, as well as glue applied, sleeve (shrink), and in-mold labels to the food & Revenue: $431 Million beverage, consumer packaged goods, and pharmaceutical Industry: Packaging industries. Acquisition Date: February 2018
Transaction Type: Corporate Divestiture Provides temporary access mat solutions to remote construction sites, primarily serving the oil/gas (pipeline) and powerline Revenue: $507 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 year ending December 31, 2018.
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www.platinumequity.com
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