Environmental and Facility Services

ENVIRONMENTAL AND FACILITY SERVICES

INDUSTRY UPDATE │ NOVEMBER 2017

www.harriswilliams.de

Harris Williams & Co. Ltd is a private limited company authorised and regulated by the Financial Conduct Authority, incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 07078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan.

Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.

0 ENVIRONMENTAL AND FACILITY SERVICES INDUSTRY UPDATE │ NOVEMBER 2017

SUMMARY

CONTENTS M&A │ SELECT RECENT ACTIVITY . NOTABLE M&A ACTIVITY Food, facility, and uniform services provider Aramark Corp. plans to acquire two . PUBLIC COMPARABLES closely held companies for a total of $2.35 billion, in its largest deals since going public . PUBLIC COMPARABLES INDEX nearly four years ago. The company is buying Avendra LLC, which procures food, supplies and such services as landscaping for hotels and other institutions, for $1.35 OUR PRACTICE billion; and AmeriPride Services Inc., a supplier of uniforms and towels, for $1 billion. Harris Williams & Co. is a Buying Avendra, which manages $5 billion in purchasing, “will allow us to leverage our leading advisor to the scale to procure food at a lower cost,” Aramark Chief Executive Eric Foss said in an environmental and facility interview. AmeriPride, which has annual sales of $600 million, “will improve our services M&A market. Our competitive position” by allowing the company to offer more services to customers, environmental and facility particularly in Canada, he said. Read more here. services practice includes experience across a broad range of sectors, including Sodexo signed an agreement to acquire Centerplate, a portfolio company of services and products that Olympus Partners, for $675 million. Centerplate is a global leader in live event meet exacting demands for a hospitality, serving more than 116 million guests each year at entertainment, sports and variety of end markets. convention venues across North America, Europe, and the United Kingdom. ENVIRONMENTAL AND Centerplate has provided event hospitality services to 36 official U.S. Presidential FACILITY Inaugural Balls, 14 Super Bowls, and 22 World Series. The acquisition substantially SERVICES SECTORS strengthens Sodexo’s position in the North American market, and brings it’s Sports & Leisure business to scale in the region. In the UK, the acquisition supports Sodexo’s . Engineering, Construction, strategy to grow its stadia and cultural destination portfolio. The acquisition positions and Consulting (ECC) Sodexo as a leading player in Sports & Leisure globally, more than doubling its . Facility Services footprint. Read more here. . Remediation, Cleaning, and Abatement Ecolab Inc. announced it has agreed to sell its Equipment Care business to Audax . Test, Measurement, Private Equity, a Boston, MA-based private equity firm. Equipment Care had 2016 sales and Control of $180 million. Ecolab is a global leader in water, hygiene, and energy technologies . Waste Management and services that protect people and vital resources. Ecolab delivers comprehensive and Recycling solutions and on-site service to promote safe food, maintain clean environments, . Water and Wastewater optimize water and energy use, and improve operational efficiencies for customers CONTACTS throughout 170 countries. Read more here. Bob Baltimore SiteOne Landscape Supply, Inc., the largest national wholesale distributor of Managing Director landscape supplies in the United States, acquired Harmony Gardens. Harmony [email protected] +1 (804) 915-0129 Gardens has two locations in Colorado serving the greater Denver and Fort Collins markets. Harmony Gardens is a leader in the distribution of nursery and related Derek Lewis products to landscape professionals in these markets and this acquisition further Managing Director expands SiteOne’s footprint and nursery offering within the state. Read more here. [email protected] +1 (804) 915-0118 Andrew Spitzer PUBLIC MARKETS │ KEY TRADING STATISTICS* Managing Director [email protected] Key Trading Statistics +1 (804) 915-0174

Stock Price % Change TEV / LTM EBITDA as of TEV / EBITDA P/E Brian Lucas Managing Director 1 Month 12 Month Aug-15 Feb-16 Current 2016 2017P Current 2016 [email protected] +1 (804) 932-1323 Engineering, Construction, and Consulting 2.6% (22.5%) 8.6x 8.5x 10.3x 8.6x 8.0x 18.2x 18.7x Matt White Facility Services 1.4% 12.1% 11.6x 11.1x 10.7x 10.1x 9.2x 26.3x 19.2x Managing Director [email protected] Remediation, Cleaning, and Abatement 7.7% 3.7% 9.7x 8.2x 11.9x 8.2x 7.2x 23.3x 25.6x +1 (804) 915-0131

Test, Measurement, and Control 2.6% 3.7% 11.9x 10.6x 17.0x 13.3x 12.0x 21.5x 27.5x Anthony Basmajian Director Waste Management and Recycling 2.2% 1.0% 8.7x 8.0x 9.6x 8.7x 7.3x 21.2x 19.3x [email protected] +1 (804) 887-6030 Water and Wastewater 0.1% 11.1% 10.7x 11.8x 12.7x 11.8x 11.0x 24.2x 24.4x Taylor Morris S&P 500 2.6% 2.8% 10.8x 9.8x 10.2x 9.3x 8.5x 16.4x 18.2x Vice President [email protected] +1 (804) 887-6019

www.harriswilliams.de * As of November 20, 2017.

PAGE | 1 ENVIRONMENTAL AND FACILITY SERVICES INDUSTRY UPDATE │ NOVEMBER 2017

PUBLIC COMPARABLES – MARKET PERFORMANCE

PUBLIC COMPARABLES 5-YEAR PRICE INDEX (’12 – ’17)*

125%

100%

75%

50%

25%

(25%)

(50%) Nov-12 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17

S&P 500 Index - 5-Year Stock Price Index ECC Remediation, Cleaning, and Abatement Test, Measurement, & Control Waste Management & Recycling Water & Wastewater Facility Services

5-Year Minimum 5-Year Median 3-Year Median Current 5-Year Maximum Engineering, Construction, and Consulting (15.3%) 17.3% 9.9% 18.7% 64.5% Facility Services (0.7%) 47.1% 60.3% 91.7% 98.4% Remediation, Cleaning, and Abatement (0.6%) 54.1% 60.6% 94.4% 95.6% Test, Measurement, and Control (0.2%) 37.2% 41.0% 87.5% 89.6% Waste Management and Recycling 0.0% 40.5% 45.6% 76.1% 77.3% Water and Wastewater 0.0% 49.0% 52.8% 81.7% 82.1% S&P 500 0.0% 47.0% 52.2% 86.3% 86.9%

PUBLIC COMPARABLES TEV/LTM EBITDA (’12 – ’17)*

18x

16x

14x

12x

10x

4x Nov-12 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 SP50 ECC Remediation, Cleaning, and Abatement Test, Measurement, & Control Waste Management & Recycling Water & Wastewater Facility Services 5-Year Minimum 5-Year Median 3-Year Median Current 5-Year Maximum Engineering, Construction, and Consulting 7.5x 9.3x 9.3x 10.3x 12.0x Facility Services 7.8x 10.3x 10.9x 10.7x 12.2x Remediation, Cleaning, and Abatement 7.2x 8.9x 9.7x 11.9x 12.7x Test, Measurement, and Control 10.1x 12.4x 12.5x 17.0x 17.0x Waste Management and Recycling 7.3x 8.6x 8.9x 9.6x 10.0x Water and Wastewater 9.2x 11.2x 12.3x 12.7x 13.6x S&P 500 9.2x 11.4x 11.9x 12.3x 12.5x

*As of November 20, 2017. PAGE | 2 ENVIRONMENTAL AND FACILITY SERVICES INDUSTRY UPDATE │ NOVEMBER 2017

PUBLIC COMPARABLES – INDEX

Engineering, Construction, and Consulting

Abengoa SA Fomento de Construcciones y Contratas, S.A. Stantec Inc. AECOM WSP Global Inc. Tetra Tech Inc. Amec Foster Wheeler plc IHS Inc. TRC Companies Inc. ARCADIS NV Interserve plc CITIC Envirotech Ltd. Cardno Limited Jacobs Engineering Group Inc. WS Atkins plc Chicago Bridge & Iron Company N.V. Leidos Holdings, Inc.

Facility Services

ABM Industries Incorporated Compass Group PLC MITIE Group PLC Aramark ISS A/S Sodexo S.A. Cintas Corporation

Remediation, Cleaning, and Abatement

Products Services Ecolab Inc. EMCOR Group Inc. Federal Signal Corp. Heritage-Crystal Clean, Inc Swisher Hygiene Inc. Newalta Corporation Rentokil Initial plc

Test, Measurement, and Control

Test and Measurement Products and Technologies Testing, Inspection, and Certification Services Control Products and Technologies Badger Meter Inc. Bureau Veritas SA Calgon Carbon Corporation Danaher Corp. Intertek Group plc CECO Environmental Corp. FLIR Systems, Inc. SGS SA CLARCOR Inc. Halma plc ALS Limited Flowserve Corp. HORIBA, Ltd. Eurofins Scientific SA Franklin Electric Co., Inc. Roper Industries Inc. SAI Global Limited IDEX Corporation Teledyne Technologies Inc. Mistras Group, Inc. Johnson Matthey plc Thermo Fisher Scientific, Inc. Furmanite Corporation L'Air Liquide SA Trimble Navigation Limited Pall Corporation Waters Corporation Pentair plc Rockwell Automation Inc.

Waste Management and Recycling

Diversified Waste Management and Recycling Recycled Materials Specialty Waste Fomento de Construcciones y Contratas, S.A. Mondi plc Clean Harbors, Inc. ALBA SE Resolute Forest Products Inc. Stericycle, Inc. Séché Environnement SA Clearwater Paper Corporation US Ecology, Inc. Pennon Group Plc LKQ Corp. Heritage-Crystal Clean, Inc Waste Connections Inc. Colas SA Newalta Corporation Suez Environnement Company SA Eagle Materials Inc. Perma-Fix Environmental Services Inc. Shanks Group plc Sonoco Products Co. Veolia Environnement S.A. Transpacific Industries Group Ltd. WestRock Company Nuverra Environmental Solutions, Inc. Waste Management, Inc.

Metals Processing and E-Waste Solid Waste Management and Recycling Waste to Energy Commercial Metals Company Republic Services, Inc. Covanta Holding Corporation Aurubis AG Progressive Waste Solutions Ltd. Dowa Holdings Co., Ltd. Casella Waste Systems Inc. Metalico Inc. Schnitzer Steel Industries, Inc. Sims Metal Management Limited

Water and Wastewater

Products and Technologies Utilities and Services IDEX Corporation Aegion Corporation Pennon Group Plc Mueller Water Products, Inc. American States Water Company Severn Trent Plc Pentair plc American Water Works Company, Inc. Suez Environnement Company SA Watts Water Technologies, Inc. Aqua America Inc. The York Water Company Xylem Inc. California Water Service Group United Utilities Group PLC Kurita Water Industries Ltd. Veolia Environnement S.A.

PAGE | 3 ENVIRONMENTAL AND FACILITY SERVICES INDUSTRY UPDATE │NOVEMBER 2017 OUR FIRM

Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website.

Aerospace, Defense Building Products Business Consumer Energy, Power & Government & Materials Services & Infrastructure Services

Healthcare Industrials Specialty Technology, Transportation & Life Sciences Distribution Media & Telecom & Logistics

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

Boston Richmond (Headquarters) Frankfurt One International Place 1001 Haxall Point Bockenheimer Landstrasse 33-35 Suite 2620 9th Floor 60325 Frankfurt Boston, Massachusetts 02110 Richmond, Virginia 23219 Germany Phone: +1 (617) 482-7501 Phone: +1 (804) 648-0072 Phone: +49 069 3650638 00 Cleveland San Francisco London 1900 East 9th Street 575 Market Street 63 Brook Street 20th Floor 31st Floor London W1K 4HS, England Cleveland, Ohio 44114 San Francisco, California 94105 Phone: +44 (0) 20 7518 8900 Phone: +1 (216) 689-2400 Phone: +1 (415) 288-4260 Minneapolis Washington, D.C. 222 South 9th Street 800 17th St. NW Suite 3350 2nd Floor NETWORK OFFICES Minneapolis, Minnesota 55402 Washington, D.C. 20006 Phone: +1 (612) 359-2700 Phone: +1 202-207-2300 Beijing New Delhi Hong Kong Shanghai Mumbai

PAGE | 4 ENVIRONMENTAL AND FACILITY SERVICES INDUSTRY UPDATE │ NOVEMBER 2017 HARRIS WILLIAMS & CO.

SOURCES

Information included in this industry update was sourced from Factset.

DISCLOSURES

Harris Williams & Co. (www.harriswilliams.de) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

PAGE | 5