Capstone Headwaters

WAREHOUSING & FULFILLMENT Q1 2020

TABLE OF CONTENTS MERGER & ACQUISTION OVERVIEW

 M&A Overview From 2018 to 2019, transaction activity in the Warehousing & Fulfillment  Segment Highlight industry increased a significant 31%, climbing from 64 announced or closed mergers and acquisitions (M&A) in 2018 to 84 in 2019. This included the  Emerging Trend Capstone Headwaters’ advised joint sale of Global Transport Logistics, Inc.  Notable Transactions (retail vendor consolidation services) and Am Trans Expedite, Inc. (brokerage  Select Transactions services) to Hudson Hill Capital. Deal terms are confidential. Buyer demographics have shifted over the past year to comprise a large share of  Public Company Data private buyers, as fragmented players seek to expand their capabilities and  Report Contributors geographic presence.  Firm Track Record To-date, 12 deals have already been announced in 2020. This included the $545 dollar acquisition of U.S.-based warehousing and distribution company Performance Team by A.P. Moller Maersk (CPSE:MAERSK B), a global integrated transport logistics company based in Denmark. The acquisition will allow Maersk to grow its e-commerce business, add 24 warehousing sites, and strengthen its supply chain options and flexibility. The deal also highlights a shift in the industry, where established transportation providers are now entering the retail supply chain space to compete with Amazon’s (NASDAQ:AMZN) advanced inventory management and fulfillment capabilities. This trend was also seen in C.H. Robinson’s (NASDAQ:CHRW) $225 million dollar CONTACTS acquisition of Prime Distribution Services, highlighted on page three.

Burke Smith Buyer Breakdown Managing Director, Head of Transportation & Logistics FINANCIAL 310-872-0038 Direct 26.6% 24.7% 28.2% [email protected] Add-on 35.9%

Anant Vashi STRATEGIC Public Director 18.8% 4.7% Private 505-690-3561 18.8% 42.4% [email protected] 2018 2019

Source: Capital IQ, PitchBook, FactSet, and Capstone Research www.capstoneheadwaters.com March 2020 3 Warehousing & Fulfillment | Q1 2020

SEGMENT HIGHLIGHT: E-COMMERCE FULFILLMENT

OF 2019 RETAIL GAINS DRIVEN Acquisitions in the E-Commerce Fulfillment segment have 56.9% BY E-COMMERCE SALES been frequent with several notable transactions already announced in 2020. These include Maersk’s acquisition of E-commerce sales have grown almost 10 times faster than Performance Team (February, $545 million); C.H. instoresalesoverthepastnineyearsandin2019,e- Robinson’s acquisition of Prime Distribution Services. (see commerce drove ~57% of all gains in the Retail market, following page); and Greenbriar Equity Group LLC-backed according to analysis by Digital Commerce 360.1 The SEKO Enterprises, Inc.’s acquisition of Air-City, Inc. rapid and ongoing expansion of online shopping has (January, undisclosed). Additionally, Advantage Media driven significant demand for e-commerce fulfillment Services (AMS) Fulfillment, an omnichannel fulfillment providers including inventory management, picking and service provider acquired by Fort Point Capital in 2019, packing, shipping, and returns management. Worldwide, also announced its acquisition of EchoData Group in the E-Commerce Logistics market is projected to expand January (undisclosed). The addition of EchoData’s east by more than $550 billion, driven by a compounded coast facilities will allow California-based AMS to provide growth rate of 21.3% through 2025, according to Research bi-coastal fulfillment services with reduced delivery times and Markets.2 The rise of e-commerce and, in turn, e- and costs. commerce fulfillment is expected to foster industry investment and M&A activity as operators stay abreast of U.S. E-Commerce: Annual Growth the evolving space to capture market share. 20%

The segment remains highly fragmented and key value 15% drivers for operators in the space include multiple warehouse locations, value-added services (such as 10% labeling, shrink-wrapping, consolidation, and reverse logistics), and product specialization. Speed of delivery is 5% also a significant value driver as reduced delivery time Growth Percentage remains a top priority for capturing online shoppers. A 0% 2018 Arvato study found that 24% of online shoppers 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 canceled their online order when delivery estimates were not fast enough to meet their needs.3 Companies that Total Retail* E-Commerce offer these services have been found to be attractive *Excludes items not normally sold online including restaurant, bar, targets for buyers who seek to utilize inorganic growth to automobile dealer, gas station, and fuel dealer sales expand their geographic reach and capabilities. Source: U.S. Census Bureau, Digital Commerce 360, and Capstone Research

EMERGING TREND: MICRO-FULFILLMENT CENTERS

Micro-fulfillment centers (MFC) are small, hyperlocal, Fabric (formerly CommonSense Robotics) is another automated warehouses that fulfill online orders and have operator in the space whose current retail partners include largely risen as a result of e-commerce fulfillment needs. Israeli drug store chain Super-Pharm. In 2019, Fabric MFCs offer significant cost-savings by reducing money launched its first autonomous sorting center underground spent on picking, last-mile delivery, and prime real estate. in downtown Tel Aviv.

Takeoff Technologies is a MFC provider that has partnered “Taking e-commerce fulfillment underground inside cities with grocery stores including Albertsons and Stop & Shop is one way we can enable retailers to fulfill online orders in to fulfill online orders. Takeoffs’ MFCs require only 1/8 of close proximity to their customers — while doing so the space of a traditional warehouse and can be profitably,” Fabric Co-Founder and CEO Elram Goren said assembled in a few months in the back of a store. In 2019, in a news article.4 Takeoff raised $25 million in a Series C funding round led by Forrestal Capital, bringing its total valuation to $500 After receiving $110 million in a Series B funding round million. Takeoff announced it will roll out Version 2.0 of led by Corner Ventures in 2019, Fabric announced it is its MFC in 2020, with optimized solutions including 6% relocating its headquarters from Tel Aviv to New York and faster order picking and increased storage capacity. is already contracted to build out 14 MFCs in U.S. cities.5 2 Warehousing & Fulfillment | Q1 2020

NOTABLE TRANSACTIONS

C.H. Robinson Worldwide, Inc. to acquire Prime Distribution Services, Inc. (January 2020, $225 Million)

C.H. Robinson Worldwide (NasdaqGS:CHRW) has agreed to acquire Prime Distribution Services, a wholly owned subsidiary of Roadrunner Transportation Systems, Inc. (NYSE:RRTS), for $225 million in cash and credit valued at 2.1x EV/Revenue.

Founded in 1990 and headquartered in Indiana, Prime offers integrated supply chain solutions including warehousing, retail consolidation, retail case picking, and value-added services such as on-site label To Acquire printing and shrink-wrapping. Prime owns and operates ~2.6 million square feet in five fulfillment and distribution facilities throughout Indiana, Texas, California, and Georgia and employs around 270 individuals. Prime achieved $108.7 million in total revenues for fiscal year 2019, according to a press release.6 The acquisition is expected to be slightly accretive to C.H. Robinson in 2020, bringing new capabilities, synergies to its North American Surface Transportation business, and creating strategic advantages for retail deliveries.

“Prime Distribution Services is a high-quality growth company that brings scale and value-added warehouse capabilities to our retail consolidation platform, adding to our global suite of services,” C.H. Robinson CEO Bob Biesterfeld, said in the press release.

Americold Realty Trust (NYSE:COLD) is the largest integrated network of temperature-controlled warehouses in the world and serves the Food Producers, Food Retailers, and Food Services Providers industries. Based in Georgia, Americold owns and operates 176 temperature-controlled warehouses totaling more than 1 billion cubic feet throughout the U.S., Canada, Argentina, New Zealand, and Australia. The company increased revenue by 11.2% to reach $1.78 billion in 2019, according to company filings.7 M&A remains a key growth strategy for Americold, and the company completed more than $1.4 billion in acquisitions in 2019 and grew its portfolio by 17%, according to filings. Notable highlights from these transactions are listed below: Acquires

 Nova Cold Logistics (November 2019, $253.7 Million)  The acquisition included three temperature-controlled warehouses with 23.5 million cubic feet and ~81,000 pallet positions. The transaction expands Americold’s presence in Canada and offers access to key cities Toronto, Calgary, and Halifax.8

 Cold Storage Facilities in PA and MD (November 2019, $54 Million) Mid-Atlantic  The acquisition included two facilities in Chambersburg, PA and Perryville, MD total 19 million Facilities cubic feet and ~86,000 pallet positions. Both facilities are rail-served and will help strengthen Americold’s Mid-Atlantic presence.

 Lanier Cold Storage, LLC (May 2019, $81.9 Million, 13.7x EV/Revenue)  The acquisition included two temperature-controlled facilities in Georgia with ~14 million refrigerated cubic feet and ~51,000 pallet positions. The acquisition complements Americold’s existing holdings in Georgia and builds on its position in a key Poultry market.9

 Cloverleaf Cold Storage, LLC (April 2019, $1.2 Billion, 32.6x EV/EBITDA, 7.2X EV/Revenue)  The acquisition included a portfolio of 22 facilities totaling 132 million refrigerated cubic feet. Cloverleaf is the fifth largest cold storage provider in the U.S. with over 360 customers. The deal complements Americold’s geographic reach and expands its focus in the Protein market.10

 PortFresh Holdings, LLC (January 2019, $35.9 Million)  The acquisition included a temperature-controlled facility in the leading port of Savannah, Georgia. Americold will build a 15 million cubic foot facility on adjacent land post acquisition. 3 Warehousing & Fulfillment | Q1 2020

SELECT TRANSACTIONS

Enterprise EV / LTM Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA

RPM Consolidated Odyssey Logistics Offers services including beer warehousing, wine and 01/30/20 --- Services & Technology spirits warehousing, and order fulfillment.

Prime Distribution C.H. Robinson Provides warehousing, cross-docking, packaging, and 01/28/20 $225.0 2.1x - Services Worldwide multi-vendor freight consolidation services.

Provides ocean and airfreight, customs brokerage, 01/22/20 The Apex Group KLN Investment $362.4 - - logistics, and door-to-door delivery services.

Advantage Media Offers third party fulfillment services including retail 01/21/20 EchoData Services --- Services and channel distribution, and warehousing.

Offers supply chain, inventory, and 01/14/20 LeSaint Logistics TAGG Logistics --- warehouse management. Newport-St.Paul Offers frozen and refrigerated storage, handling 01/09/20 Americold Realty $56.0 - - Cold Storage Trust services, customer centric service, and local shuttle. Greenbriar Equity; Offers webtracking, e-commerce, warehousing and 01/07/20 Air-City --- SEKO Enterprises distribution, and pick and pack services.

Assets of RDI 01/02/20 J.B. Hunt Transport Offers home delivery and warehousing services. - - - Last Mile

Western Distribution Operates a cold storage warehouse that provides 12/20/19 Lineage Logistics --- Services storage solutions. Florida Beauty Operates as a transportation, logistics, and warehouse 12/20/19 REAC Group $4.5 - - Flora distribution specialist for perishable cargo.

COBEPA; JF Offers warehouse and distribution, customizes, 12/17/19 Royal Logistics --- Hillebrand; Sofina container drayage and cross docking services.

Provides transportation, and warehousing and 12/03/19 Veeco Holdings STG Logistics --- distribution services in the United States.

Nova Cold Americold Realty Provides warehouse services, such as handling, storage 11/21/19 $253.7 - - Logistics Trust and freezing of temperature controlled foods.

Two Cold Storage Americold Realty Comprises two cold storage facilities in Chambersburg, 11/21/19 $54.0 - - Facilities Trust PA and Perryville, MD.

11/18/19 Emergent Cold Lineage Logistics Owns and operates cold storage facilities. $900.0 - -

Priority Express Offers warehousing and distribution services in North 10/29/19 Capstone Logistics --- Courier Jersey and New York.

Facilities of Perkins Fairfield Gourmet 09/10/19 Comprise warehousing and storage facility. $18.7 - - & Marie Callender's Food Versant Supply 08/27/19 Exegistics Provides logistics and warehousing services - - - Chain

New Orleans 08/22/19 Emergent Cold Provides refrigerated storage facilities. - - - Cold Storage

Premium Offers transloading, value-added warehousing, drayage, 08/02/19 --- Tri Pak Transportation long-haul, and brokerage trucking services.

07/01/19 BWP Transport A&R Logistics Provides bulk transportation and logistics services. - - -

Offers retail vendor consolidation services with 06/20/19 GTLI &. Am Trans Hudson Hill Capital --- dedicated warehousing and logistics services.

Note: CF = confidential; highlighted deals are Capstone’s transactions Source: Capital IQ, PitchBook, and Capstone Research 4 Warehousing & Fulfillment | Q1 2020

SELECT TRANSACTIONS (CONTINUED)

Enterprise EV / LTM Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA

Custom Courier Provides logistics management, warehousing, and 06/05/19 Excel Courier --- Systems delivery services.

06/03/19 Remar FIDELITONE Offers warehousing and logistics services. - - -

Jet Acquisition Novacap; The GTI Provides customized delivery and 05/13/19 --- Partners Group (Canada) warehousing solutions.

AGRO Merchants 05/07/19 Cool-Pak Solutions Provides warehousing, storage and cold chain solutions. - - - Group

Advantage Media Provides third party warehouse management, order 05/07/19 Fort Point Capital --- Services management, and fulfillment services.

Wind Point Provides dry bulk transportation, warehousing and 05/07/19 A&R Logistics --- Advisors packaging, and third-party logistics solutions. Americold Realty 05/01/19 Lanier Cold Storage Provides cold storage facilities. $82.4 - 13.7x Trust

Whiplash Provides storage and shipping services for products on 04/24/19 Port Logistics --- Merchandising demand for e-commerce companies.

Cloverleaf Cold Americold Realty Operates as a cold storage warehouse and 04/16/19 $1,241.5 7.2x 32.6x Storage Trust processing company.

Logistics Business Offers non-asset transportation, supply chain, and 04/15/19 TA Dispatch $64.3 0.5x - Division Assets warehousing solutions across .

International Rakuten Super Provides complete front end e-commerce shipping 03/26/19 --- Fulfillment Logistics solutions for carriers, networks, and shippers globally.

03/18/19 FSA Logistix Forward Air Designs and delivers world-class final mile solutions. $27.0 --

Preferred Freezer Provides cold storage services through a network of 02/25/19 Lineage Logistics --- Services temperature-controlled warehouses.

Offers cross docking and distribution, warehousing, 02/18/19 BeavEx TFI International $7.2 - - storage, and product fulfillment services.

Columbia Provides warehousing, container transloading, freight 02/05/19 Timber Investments --- Containers forwarding, and logistics services.

Americold Realty Operates temperature controlled facility at the Port 01/31/19 PortFresh Holdings $35.9 - - Trust of Savannah, GA.

Provides package management services designed to 01/23/19 Parcel Pending Neopost $100.0 3.3x provide secure parcel deliveries.

DSI Warehouse Offers warehousing services including storage, pick up 01/14/19 Houston-Johnson --- & Storage and packaging, container handling, and fulfillment.

All Assets of Joseph Comprises a business that offers furniture preparation, 01/09/19 J.B. Hunt Transport $100.0 - - Cory Warehouses warehousing, and distribution.

Ace Logistics/C & C 01/08/19 Britton Transport Comprises warehousing and distribution facilities. - - - Realty Assets

Provides storage warehousing services to the 01/07/19 Zero Mountain Chiller Holdco --- Food industry.

GoodShip 01/03/19 SEKO Worldwide Provides freight and warehousing services. - - - International

Source: Capital IQ, PitchBook, and Capstone Research 5 Warehousing & Fulfillment | Q1 2020

PUBLIC COMPANY TRADING & OPERATING DATA

Price % 52 Wk Market Enterprise LTM EV / LTM Company 03/02/20 High Cap Value Revenue EBITDA Margin Revenue EBITDA

Amazon.com, Inc. $1,883.75 86.2% $937,750.4 $960,264.4 $280,522.0 $40,814.0 14.5% 3.4x 23.5x

Americold Realty Trust $30.67 75.9% $5,882.5 $7,579.9 $1,783.6 $349.7 19.6% NM 21.7x

FedEx Corporation $141.17 70.8% $36,862.2 $68,048.2 $69,189.0 $6,436.0 9.3% 1.0x 10.6x

J.B. Hunt Transport Services, Inc. $96.44 78.9% $10,243.2 $11,503.9 $9,165.3 $1,228.1 13.4% 1.3x 9.4x

Penske Automotive Group, Inc. $46.02 85.5% $3,744.0 $12,493.1 $23,179.4 $1,225.3 5.3% 0.5x 10.2x

Pitney Bowes Inc. $3.42 47.0% $585.3 $2,509.3 $3,205.1 $464.7 14.5% 0.8x 5.4x

Ryder System, Inc. $38.04 56.2% $2,026.5 $10,101.3 $8,925.8 $2,265.9 25.4% 1.1x 4.5x

Schneider National, Inc. $17.91 73.5% $3,172.2 $3,016.2 $4,747.0 $675.9 14.2% 0.6x 4.5x

United Parcel Service, Inc. $90.49 72.2% $77,684.5 $100,138.5 $74,094.0 $9,867.0 13.3% 1.4x 10.1x

XPO Logistics, Inc. $73.97 73.8% $6,831.7 $14,183.7 $16,648.0 $2,541.0 15.3% 0.9x 5.6x

Mean 14.5% 1.2x 10.5x EV = enterprise value; LTM = last twelve months $ in millions, except per share data Median 14.4% 1.0x 9.8x NM = Not Meaningful Harmonic Mean 12.3% 0.9x 8.0x

Last Twelve Month Margin Performance 60% Gross Margin % EBITDA Margin %

50% 41.0% 40.0% 40%

30% 26.8% 25.4% 19.6% 21.2% 17.9% 18.2% 18.4% 20% 17.9% 16.0% 14.5% 13.4% 14.9% 14.5% 14.2% 13.3% 15.3% 9.3% 10% 5.3% 0% Amazon.com Americold FedEx J.B. Hunt Penske Pitney Bowes System Schneider UPS XPO Logistics Realty

Last Twelve Month Revenue Growth

25% 20.5% 20%

15% 11.3% 10% 6.4% 6.1% 3.1% 5% 0.7% 1.7% 0% -5% -0.2% -4.6% -3.7% -10% Amazon.com Americold FedEx J.B. Hunt Penske Pitney Bowes Ryder System Schneider UPS XPO Logistics Realty Source: Capital IQ as of February 24, 2020 6 Warehousing & Fulfillment | Q1 2020

WAREHOUSING & FULFILLMENT REPORT CONTRIBUTORS

Burke Smith Managing Director, Head of Transportation & Logistics [email protected] | 310-872-0038

Burke is the Head of the Transportation & Logistics practice at Capstone Headwaters and is based in the Denver office. Burke joined the firm in 2014, bringing to Capstone Headwaters 19 years experience as an advisor to or leader of middle market companies. Most recently, Burke ran several asset-based trucking and warehousing operations, and previously managed an 8-state last mile delivery network. Over his career to date, Burke has executed more than 45 transactions with a combined value in excess of $40 billion. Burke began his career working on Wall Street. He initially trained at Wasserstein Perella & Co., where he worked directly for famed M&A banker Bruce Wasserstein. Burke then joined Donaldson, Lufkin & Jenrette (DLJ) as an early member of the firm’s ExclusiveSalesGroup,whichbecameoneofthemost successful middle market sell-side advisory practices on Wall Street. Following the acquisition of DLJ by Credit Suisse, Burke joined UBS as an Executive Director in the mergers and acquisitions group. Burke earned a Law degree from Harvard Law School, and an MA and BA from Stanford University. He is a Series 79 Registered Investment banking Representative.

Anant Vashi Director [email protected] | 505-690-3561

Anant joined Capstone Headwaters after several years in investment banking sourcing capital for early and growth stage companies. Prior to investment banking, Anant worked with Sun Mountain Capital, a $90 million New Mexico-based co-investment fund focused on emerging technologies and economic development within the state. Prior to that, Anant worked as a Senior Associate for Mesa Capital Partners, a private equity fund which invests in growth opportunities in the service, manufacturing and technology areas. Anant began his private equity career with MWV Pinnacle, a $23 million fund mandated to invest in minority owned or managed companies. In addition to his investment banking and private equity positions, Anant has also worked in several corporate roles, including as CFO for an early stage transportation technology company and as Director of Corporate Development and FP&A for two middle market private equity sponsored companies. Anant earned his MBA from Case Western University and holds an MA from New School University and a BA from St John’s College.

Sarah Doherty Vice President of Research [email protected] | 617-619-3310

Sarah joined Capstone Headwaters in 2016 and has more than eight years of research and writing experience. She oversees the firm’s corporate Research Team, which produces more than 150 reports annually on middle-market M&A activity. Sarah specializes in the Education & Training, Aerospace & Defense, and Transportation & Logistics industries.

Previously, Sarah worked at a think tank in Washington, D.C. as the Data Graphics Specialist, where she collaborated with economists and industry experts to analyze and present data for congressional testimonies and research publications. Prior to that, she covered the economy, healthcare, and Capitol Hill as a reporter. Sarah holds a BA in Journalism and Political Science from Biola University and is a certified Market Research Analyst through the International Institute of Market Research and Analytics.

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FIRM TRACK RECORD

Capstone Headwaters maintains an active Transportation & Logistics practice with operational expertise that enables us to profoundly understand how to help companies maximize value. We are known for our work in all links of the supply chain, including transportation, logistics, warehousing, supply-chain management, technology, packaging and other outsourced services. This market presence allows Capstone Headwaters to provide companies with experienced, up-to-date market data and access to key decision makers among the industry’s most active acquirers and investors.

has secured debt financing in has been acquired by connection with a growth has been acquired by investment by

have been acquired by has been acquired by has been acquired by

to form Fusion Transport Holdings

a subsidiary of

has been acquired by has been acquired by has been acquired by

8 Warehousing & Fulfillment | Q1 2020

CITATIONS

1. Digital Commerce 360, “U.S. E-Commerce Sales Grow 14.9% in 2019,” https://www.digitalcommerce360.com/article/us- ecommerce-sales/, accessed February 20, 2020. 2. Research and Markets, “E-Commerce Logistics - Market Analysis, Trends, and Forecasts,” https://www.researchandmarkets.com/reports/4804353/e-commerce-logistics-market-analysis-trends, accessed February 21, 2020. 3. Cision, Retailers Must Deliver on Fulfillment to Drive Conversions, a New Study by Arvato Reveals, https://www.prnewswire.com/news-releases/retailers-must-deliver-on-fulfillment-to-drive-conversions-a-new-study- by-arvato-reveals-668024593.html, accessed February 20, 2020. 4. Venture Beat, “CommonSense Robotics Announces ‘World’s First’ Underground Micro-Fulfillment Center,” https://venturebeat.com/2019/07/11/commonsense-robotics-announces-worlds-first-underground-micro-fulfillment- center/, accessed February 21, 2020. 5. The Spoon, “Fabric (Formerly Common Sense Robotics) Raises $110M Series B for More Automated Grocery Fulfillment,” https://thespoon.tech/fabric-formerly-common-sense-robotics-raises-110m-series-b-for-more- automated-grocery-fulfillment/, accessed February 20, 2020. 6. C.H. Robinson, “C.H. Robinson to Acquire Prime Distribution Services,” https://www.chrobinson.com/en- us/newsroom/press-releases/2020/01-28-20_ch-robinson-to-acquire-prime-distribution-services/, accessed February 24, 2020. 7. Americold, “Americold Realty Trust Announces Fourth Quarter and Full Year 2019 Results,” https://ir.americold.com/news/news-details/2020/Americold-Realty-Trust-Announces-Fourth-Quarter-and-Full-Year- 2019-Results/default.aspx, accessed February 24, 2020. 8. Americold, “Americold Realty Trust Signs Definitive Agreement to Acquire Canadian Temperature-Controlled Operator - Nova Cold Logistics - and Acquires Two Mid-Atlantic Facilities,” https://ir.americold.com/news/news- details/2019/Americold-Realty-Trust-Signs-Definitive-Agreement-to-Acquire-Canadian-Temperature-Controlled- Operator---Nova-Cold-Logistics---and-Acquires-Two-Mid-Atlantic-Facilities/default.aspx, accessed February 24, 2020. 9. Americold, “Americold Announces Strategic Acquisition of Lanier Cold Storage for $82 Million,” https://ir.americold.com/news/news-details/2019/Americold-Announces-Strategic-Acquisition-of-Lanier-Cold-Storage- for-82-Million/default.aspx, accessed February 24, 2020. 10. Americold, “Americold Realty Trust Announces the Strategic Acquisition of Cloverleaf Cold Storage, the Fifth Largest U.S. Temperature-Controlled Owner and Operator,” https://ir.americold.com/news/news-details/2019/Americold- Realty-Trust-Announces-the-Strategic-Acquisition-of-Cloverleaf-Cold-Storage-the-Fifth-Largest-US-Temperature- Controlled-Owner-and-Operator/default.aspx, accessed February 24, 2020.

Disclosure: This report is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and acquisi- tion activity. Information contained in this report should not be construed as a recommendation to sell or buy any security. Any reference to or omission of any reference to any company in this report should not be construed as a recommendation to buy, sell or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this report. The report is published solely for the general information of clients and friends of Capstone Headwaters. It does not take into account the particular investment objectives, financial situation or needs of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all investors. This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known and unknown risks and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this report. Opinions expressed are our present opinions only and are subject to change without notice. Additional information is available upon request. The companies mentioned in this report may be clients of Capstone Headwaters. The decisions to include any company in this report is unrelated in all respects to any service that Capstone Headwaters may provide to such company. This report may not be copied or reproduced in any form, or redistributed without the prior written consent of Capstone Headwaters. The information contained herein should not be construed as legal advice.

9 BUILT FOR THE MIDDLE MARKET

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