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Issue: August 30, 2013 M&A Industry Update

The McLean Group | www.mcleanllc.com | 703.827.0200 Industry Snapshot Five Weeks Ending Friday, August 30, 2013

Industry News . C.H. Robinson Worldwide appointed Ivo Aris director of global forwarding for C.H. Robinson Europe. Mr. Aris is charged with leading continental growth and advancement of the global forwarding division.

. appointed Steven Preston CEO following Peter Luit’s retirement after 16 years at the helm.

. UTi Worldwide opened new London operations, expanding its existing air hub. Complete with X-ray screening, bonded storage and refrigerated capabilities, the 33,000 square foot building serves as its primary UK air and road facility while consolidating air cargo to and from other UK locations.

. OnTrac will expand its San Diego overnight delivery service’s operation to 84,000 square feet to support increased volume.

. UPS Freight opened its new 72-door East Indianapolis Service Center on August 12. The new facility serves eastern Greater Indianapolis, complementing an existing 80-door Indianapolis Service Center that now serves the western metropolitan area.

. of , Inc. reported Q2 2013 profits of $92.3 million, up 10.0% vs. Q2 2012’s $84.0 million. However, Q2 revenue slipped 0.3% year-over-year to $1.5 billion.

. C.H. Robinson Worldwide reported Q2 net income of $111.9 million, a 2.4% decline vs. Q2 2012’s $114.6 million. Q2 2013 revenue rose 11.3% to $3.3 billion, vs. $3.0 billion in Q2 2012.

Notable M&A Activity Capital Markets (% Change) . Qualcomm signed a definitive agreement to sell % Change subsidiary Omnitracs, Inc. to Vista Equity Partners 1 Week 4 Weeks YTD . Platinum Equity entered into an agreement to acquire the Large Cap Logistics Index (1.4%) (2.5%) 14.4% assets of Bridge Terminal Transport Middle Cap Logistics Index (2.1%) (5.1%) 11.2% . Daseke Inc. acquired Central Truck Company Small Cap Logistics Index (1.2%) (3.5%) 13.8% . Company acquired Central S&P 500 (1.1%) (4.0%) 14.9% Refrigerated Transportation . Rose Rock Midstream will acquire the assets of Barcas Field Services . TransForce agreed to acquire E.L. Farmer

Source: Public Filings; Industry Newswires and Capital IQ as of 08/29/13 1 Announced M&A Transactions Five Weeks Ending Friday, August 30, 2013

acquired will acquire will acquire

Closed Announced Announced July 29, 2013 July 29, 2013 August 2, 2013

Notes Notes Notes Apex Freight Services acquired TransForce agreed to acquire Rose Rock Midstream executed a Timberline Freight Services, a 100% of E.L. Farmer. Founded in definitive agreement to acquire the -based company 1910, E.L. Farmer is an asset-light assets of Barcas Field Services for specializing in full and less-than- dedicated provider of pipe storage $47 million. Based in Texas, truckload transportation of and hauling services for the oilfield Barcas owns and operates a crude temperature-protected goods. The industry, operating throughout oil trucking fleet. Barcas’ 140 acquisition dramatically increases Texas. The transaction is expected employees will join Rose Rock Apex’s cold-shipping expertise and to generate annual revenues of when the transaction closes during access to the frozen food approximately $70.0 million and be the third quarter of 2013. transportation industry. Apex will completed in the third quarter. retain Timberline’s leadership while centralizing operations in its Louisiana headquarters.

Source: Capital IQ and InfoBase as of 08/29/13 2 Announced M&A Transactions Five Weeks Ending Friday, August 30, 2013

will acquire acquired acquired

Announced Closed Closed August 4, 2013 August 5, 2013 August 6, 2013

Notes Notes Notes Greentree Logistics, Inc. agreed in Atlantic Street Capital portfolio Swift Transportation Company principle to purchase the assets of company EZE Trucking acquired acquired Central Refrigerated SCS Transport LLC. Based in Rig Runners, Inc. Based in Texas, Transportation (CRT) for $225 Minnesota, SCS is a national Rig Runners provides specialized million. Based in , CRT is a transportation and logistics heavy and line haul freight and premium service truckload carrier company that provides full logistics operations to national specializing in temperature- truckload and LTL freight with both energy and industrial customers, controlled freight transportation. company drivers and independent primarily in Texas. The EZE/Rig CRT is the fifth-largest provider of contractors. Current SCS drivers, Runners combination creates one temperature-controlled truckload owner operators, and dispatch of the US’ largest national specialty services in the US. The acquisition personnel will be retained. hauling and logistics businesses. will make Swift the nation's second largest temperature-controlled truckload provider.

Source: Capital IQ and InfoBase as of 08/29/13 3 Announced M&A Transactions Five Weeks Ending Friday, August 30, 2013

acquired will acquire acquired

Closed Announced Closed August 1, 2013 August 7, 2013 August 12, 2013

Notes Notes Notes Daseke Inc. acquired Central Platinum Equity agreed to acquire PGT Trucking acquired Liedtka Oregon Truck Company (COTC), a the assets of Bridge Terminal Trucking. Headquartered in New premier flatbed carrier. The Transport, Inc. (BTT) from Jersey and founded in 1964, transaction will make the Daseke Inc. BTT is a marine drayage Liedtka specializes in flatbed and one of North America’s 20 largest company with a 30-year history specialized hauling. The flatbed and specialty carriers. covering port locations and inland acquisition expands PGT’s footprint rail sites through a network of 28 into New England and the Mid- terminals, 25 container yards and Atlantic while expanding the roster more than 1,285 owner operators. of products it moves. The acquisition also adds four terminals in the Northeast US.

Source: Capital IQ and InfoBase as of 08/29/13 4 Announced M&A Transactions Five Weeks Ending Friday, August 30, 2013

acquired acquired will acquire

Southeast Drayage Division

Closed Closed Announced August 13, 2013 August 15, 2013 August 23, 2013

Notes Notes Notes Transportation Solutions Roadrunner Transportation Qualcomm agreed to sell Enterprises (TSE) acquired The Systems, Inc. acquired certain subsidiary Omnitracs, Inc. to Vista Treppel Group. Based in , assets of Transport Corporation of Equity Partners for $800 million in Treppel is a leader in rail and America’s Southeast drayage cash. Qualcomm pioneered the intermodal space transportation. division for $1.2 million. The use of commercial vehicle The Treppel Group averages 17% division provides intermodal telematics by introducing the first savings, and competes with over transportation and related services transportation and logistics mobile the road prices with truck-like primarily in imports and exports for information system with Omnitracs transit times. steamship lines and intermodal among the earliest industry marketing companies. leaders. The acquisition will include all Omnitracs operations in the US, and .

Source: Capital IQ and InfoBase as of 08/29/13 5 Capital Markets: Overview Five Weeks Ending Friday, August 30, 2013

35.0% Last 52 Weeks Custom Index Performance 30.0%

25.0% 25.4% 22.0% 20.0% 17.1% 15.0% 17.1%

10.0%

5.0%

0.0%

-5.0%

-10.0% Aug 2012 Sep 2012 Oct 2012 Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Aug 2013

Large Cap Logistics Index Small Cap Logistics Index S&P 500 Index Mid Cap Logistics Index

Index Constituents and Stock Price as a % of 52 Week High

Large Cap Logistics Index 93% 96% 85%

Mid Cap Logistics Index 92% 93% 87% 93%

Small Cap Logistics Index 90% 96% 92% 97% 92%

Source: Public Filings and Capital IQ as of 08/29/13 6 Capital Markets: Stock Performance Five Weeks Ending Friday, August 30, 2013

Last 4 Weeks Last 52 Weeks

Landstar System 0.1% XPO Logistics 58.5%

FedEx Corporation (1.3%) System 42.5%

UTi Worldwide (2.1%) JB Hunt Transport Services 39.5%

TransForce (2.1%) Hub Group 26.5%

Echo Global Logistics (2.2%) FedEx Corporation 24.5%

United Parcel Service (2.6%) UTi Worldwide 24.1%

Expeditors Int'l of Washington (3.0%) Echo Global Logistics 22.3%

S&P 500 Index (4.0%) TransForce 18.3%

Hub Group (4.2%) 17.2%

CH Robinson Worldwide (6.0%) S&P 500 Index 17.1%

JB Hunt Transport Services (6.0%) 16.1%

XPO Logistics (6.5%) Expeditors Int'l of Washington 11.8%

Ryder System (12.3%) CH Robinson Worldwide 2.1%

(16%) (12%) (8%) (4%) 0% 4% 0% 20% 40% 60% 80%

Large Cap Logistics Index Mid Cap Logistics Index Small Cap Logistics Index S&P 500

Source: Public Filings and Capital IQ as of 08/29/13 7 Capital Markets: Short Interest Five Weeks Ending Friday, August 30, 2013

Short Interest as a % of Shares Outstanding

Large Cap Logistics Index

Average

Current (08/29/13) 1.8% 2.0% 6.2% 3.3%

4 Weeks (08/01/13) 1.3% 1.9% 5.2% 2.8%

52 Weeks (08/30/12) 1.2% 2.0% 4.4% 2.5%

Mid Cap Logistics Index

Average

Current (08/29/13) 3.0% 1.1% 2.5% 1.6% 2.0%

4 Weeks (08/01/13) 2.8% 1.2% 3.0% 2.0% 2.3%

52 Weeks (08/30/12) 2.3% 3.6% 3.0% 2.1% 2.8%

Small Cap Logistics Index

Average

Current (08/29/13) 0.0% 4.8% 2.6% 11.6% 13.5% 6.5%

4 Weeks (08/01/13) 0.0% 5.5% 3.3% 11.9% 21.4% 8.4%

52 Weeks (08/30/12) 0.0% 1.1% 3.4% 8.4% 9.6% 4.5%

Source: Capital IQ as of 08/29/13 8 Dry Powder Calculations Five Weeks Ending Friday, August 30, 2013

Large Cap Logistics Index

($ millions) 3x LTM EBITDA $9,468.0 $16,791.0 $2,332.1 Less LT Debt 12,007.0 2,990.0 365.7 Plus Cash 4,808.0 4,917.0 150.0 Dry Powder $2,269.0 $18,718.0 $2,116.5

Mid Cap Logistics Index

3x LTM EBITDA $1,766.7 $2,373.2 $4,291.9 $669.8 Less LT Debt 0.0 674.1 3,914.4 146.3 Plus Cash 1,286.1 5.9 73.4 67.5 Dry Powder $3,052.8 $1,705.0 $451.0 $590.9

Small Cap Logistics Index

3x LTM EBITDA $1,043.6 $384.6 $416.3 $88.2 -$104.8 Less LT Debt 799.4 392.3 31.2 0.0 112.8 Plus Cash 0.0 185.3 72.0 46.9 178.2 Dry Powder $244.2 $177.7 $457.1 $135.1 -$39.5

Source: Capital IQ as of 08/29/13 9 About The McLean Group Five Weeks Ending Friday, August 30, 2013

Founded in 1997, The McLean Group is a national, middle market investment bank with deep expertise in a variety of industry verticals. Headquartered in McLean, VA, The McLean Group is among the largest independent middle market investment banks in the region. Our core advisory services include:

Mergers & Acquisitions Business Valuation & Litigation Support The McLean Group uses its considerable experience and As a core competency and complement to its M&A expertise in the aerospace, defense and government business, The McLean Group provides business valuation services industry to guide its clients through each stage of services, including intangible asset and financial security the mergers & acquisitions (M&A) process and ultimately valuations for a variety of transactions, financial reporting identify the most probable and suitable candidates to and tax purposes. In addition, The McLean Group has the complete transactions under the most favorable terms. experience and credentials necessary to support litigation proceedings, including quantifying economic damages and valuing a minority interest in a business.

Capital Formation Strategic Consulting The McLean Group arranges private equity, venture capital, The McLean Group's Strategic Consulting business senior debt and subordinated debt to support clients’ provides transaction, financial and interim management expansions, M&A, refinancings, recapitalizations, leveraged services to companies ranging from start-up entities to buyouts and other shareholder liquidity objectives. publicly-held corporations across an assortment of industries.

McLean Securities, a wholly-owned affiliate of The McLean Group, is a registered broker/dealer with the Financial Industry Regulatory Authority (FINRA) and a Member, Securities Investor Protection Corporation (SIPC).

10 Recent Advisory Experience Five Weeks Ending Friday, August 30, 2013

11 Contact Information Five Weeks Ending Friday, August 30, 2013

The McLean Group 7900 Westpark Drive, Suite A320 McLean, VA 22102 Main: 703.827.0200 Fax: 703.827.0175

Logistics Team

Mitch Martin Harry Ward Principal Director [email protected] [email protected]

Samuel Britton Neil Paschall Jack Zollinger Managing Director Managing Director Managing Director [email protected] [email protected] [email protected]

Disclaimer: The McLean Group does not provide accounting, tax or legal advice. The contents of this document are believed to be reliable, however The McLean Group, LLC makes no representation as to the accuracy or completeness of this information.

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