www.peakstone.com Transportation & Logistics Industry Insight February 2018 Transportation & Logistics Industry Insight | February 2018 Transportation & Logistics M&A Update Transportation & Logistics transaction multiples remained strong For 2017, strategic buyers accounted for 92% of the Transportation and Logistics M&A transactions with financial buyers making up the difference; during 2016, strategic buyers accounted for approximately 91% of the transactions. Select Recent Notable Publicly Announced M&A Transactions Transaction Date Status Target Buyer Size Sep-2017 Closed $670 million MBK USA Commercial Vehicles, Inc. Jul-2017 Announced $820 million May-2017 Announced $1.18 billion Apr-2017 Announced $2.97 billion Mar-2017 Announced $2.1 billion www.peakstone.com 1 Transportation & Logistics Industry Insight | February 2018 Transportation & Logistics – U.S. M&A Market Overview U.S. Transportation & Logistics Transactions by Buyer Type U.S. Transportation & Logistics Transaction Multiples 10.4x 10.7x 8.3x 8.0x 8.1x 24 7.9x 6.9x 20 12 6.2x 19 12 11 13 13 169 128 143 150 134 126 131 125 0.7x 0.8x 0.8x 0.6x 0.5x 0.6x 0.6x 0.5x 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 EV / EBITDA EV / Revenue Strategic Financial Source: Capital IQ. www.peakstone.com 2 Transportation & Logistics Industry Insight | February 2018 Peakstone Transportation Indices – Trading Statistics Transportation & Logistics indexes have been trading in-line with the S&P 500 Relative Stock Performance 350% 300% 250% LTL: 329% 200% Truckload: 144% S&P 500: 89% 150% Asset-Light and Logistics: 75% 100% 50% Peakstone Truckload Index 0% CGI, PTSI, KNX, JBHT, WERN, MRTN, USAK, HTLD, SWFT, CVTI -50% Peakstone Asset-Light & Logistics Index FWRD, RRTS, LSTR, CHRW, EXPD, XPO, HUBG, ECHO Peakstone LTL Index ARCB, SAIA, YRCW, ODFL Source: Capital IQ, data as of 1/18/2018. Note: Peakstone indexes are equally weighted. www.peakstone.com 3 Transportation & Logistics Industry Insight | February 2018 Peakstone Transportation Indices – Trading Statistics Transportation & Logistics indexes have been trading in-line with the S&P 500 Comparable Valuation Trends – Enterprise Value / EBITDA 16.0x 14.0x Asset-Light and Logistics: 14.5x 12.0x S&P 500: 13.4x LTL: 9.3x 10.0x Truckload: 8.9x 8.0x 6.0x 4.0x Peakstone Truckload Index CGI, PTSI, KNX, JBHT, WERN, MRTN, USAK, 2.0x HTLD, SWFT, CVTI Peakstone Asset-Light & Logistics Index FWRD, RRTS, LSTR, CHRW, EXPD, XPO, 0.0x HUBG, ECHO Peakstone LTL Index ARCB, SAIA, YRCW, ODFL Source: Capital IQ, data as of 1/18/2018. Note: Peakstone indexes are equally weighted. www.peakstone.com 4 Transportation & Logistics Industry Insight | February 2018 Selected Public Trading Comparables Peakstone LTL Index ($ in millions) Market Enterprise Enterprise Value / Forward Gross EBITDA Company Name Cap Value Revenue EBITDA EBIT P/E Ratio Margin % Margin % Old Dominion Freight Line Inc. $11,912 $11,928 3.7x 15.9x 21.9x 26.8x 31.1% 23.3% Saia, Inc. $1,922 $2,050 1.5x 11.9x 23.3x 26.2x 19.1% 13.0% YRC Worldwide Inc. $520 $1,301 0.3x 5.1x 12.8x 10.7x 10.3% 5.2% ArcBest Corporation $934 $1,032 0.4x 6.7x 19.6x 18.6x 8.9% 5.5% LTL Median $1,428 $1,675 1.0x 9.3x 20.7x 22.4x 14.7% 9.2% Peakstone Truckload Index ($ in millions) Market Enterprise Enterprise Value / Forward Gross EBITDA Company Name Cap Value Revenue EBITDA EBIT P/E Ratio Margin % Margin % JB Hunt Transport Services Inc. $13,242 $14,320 2.0x 14.3x 23.0x 26.8x 18.1% 13.9% Knight Transportation Inc. $7,897 $8,723 6.4x 32.8x 66.4x 25.2x 28.2% 19.6% Werner Enterprises Inc. $2,933 $2,998 1.4x 8.7x 23.4x 24.4x 26.1% 16.6% Heartland Express, Inc. $1,898 $1,846 3.2x 12.0x 35.0x 32.8x 36.1% 26.5% Marten Transport Ltd. $1,197 $1,196 1.7x 9.0x 25.2x 24.9x 28.9% 19.4% Covenant Transportation Group, Inc. $510 $721 1.0x 7.0x 24.4x 19.3x 23.7% 14.5% Celadon Group Inc. $159 $534 0.5x 6.2x 49.4x 115.0x 15.9% 7.9% P.A.M. Transportation Services, Inc. $229 $358 0.8x 6.9x 28.6x 0.0x 18.1% 11.9% USA Truck Inc. $157 $278 0.7x 14.0x NM 33.3x 15.1% 4.6% Truckload Median $1,197 $1,196 1.4x 9.0x 26.9x 25.2x 23.7% 14.5% Source: Capital IQ, data as of 1/18/2018. www.peakstone.com 5 Transportation & Logistics Industry Insight | February 2018 Selected Public Trading Comparables (continued) Peakstone Asset-Light & Logistics Index ($ in millions) Market Enterprise Enterprise Value / Forward Gross EBITDA Company Name Cap Value Revenue EBITDA EBIT P/E Ratio Margin % Margin % XPO Logistics, Inc. $11,346 $16,049 1.1x 13.2x 28.1x 33.8x 14.9% 8.2% CH Robinson Worldwide Inc. $12,990 $14,161 1.0x 16.9x 18.7x 23.0x 8.2% 5.8% Expeditors International of Washington Inc. $11,741 $10,710 1.6x 14.8x 15.9x 24.7x 13.6% 10.8% Landstar System Inc. $4,534 $4,394 1.3x 15.9x 18.6x 22.8x 21.6% 7.9% Hub Group Inc. $1,748 $2,028 0.5x 14.1x 23.1x 23.9x 11.4% 3.7% Forward Air Corp. $1,791 $1,819 1.7x 12.4x 16.8x 23.1x 25.4% 13.9% Echo Global Logistics, Inc. $805 $993 0.6x 31.2x 120.7x 26.6x 17.5% 1.8% Roadrunner Transportation Systems, Inc. $301 $700 0.4x 6.9x 11.7x 8.9x 19.8% 5.1% Asset-Light & Logistics Median $3,162 $3,211 1.0x 14.5x 18.6x 23.5x 16.2% 6.9% Transportation & Logistics Total Median $1,791 $1,846 1.1x 12.4x 23.2x 24.7x 18.1% 10.8% Source: Capital IQ, data as of 1/18/2018. www.peakstone.com 6 Transportation & Logistics Industry Insight | February 2018 Selected Precedent M&A Transactions Selected Transportation & Logistics Transactions Transaction Date Target / Issuer Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments WillScot Corporation (NasdaqCM:WSC) entered into a letter agreement to New Acton Mobile Industries WillScot Corporation 12/12/2017 $235 - acquire New Acton Mobile Industries LLC from Prophet Equity LLC on LLC (NasdaqCM:WSC) December 1, 2017. Wallenius Wilhelmsen Logistics ASA (OB:WWL) signed an agreement to Wallenius Wilhelmsen acquire Keen Transport, Inc. from Platinum Equity, LLC for $64 million on 12/07/2017 Keen Transport, Inc. $64 6.4x Logistics ASA (OB:WWL) December 7, 2017. The transaction will be financed through existing credit facilities. Falcon Global USA LLC agreed to acquire substantially all of assets of 11/24/2017 Montco Offshore, Inc. $131 Falcon Global USA LLC - Montco Offshore, Inc. from Lee Orgeron and others for approximately $130 million on November 24, 2017. Patrick Industries, Inc. (NasdaqGS:PATK) acquired the business and the Patrick Industries, Inc. assets of Indiana Transport, Inc. for $59 million on November 1, 2017. The 11/01/2017 Indiana Transport, Inc. $59 - (NasdaqGS:PATK) purchase price for Indiana Transport was funded under Patrick Industries' existing credit facility. Penske Automotive Group, Inc. (NYSE:PAG) and MBK USA Commercial Penske Automotive Group, Vehicles, Inc. acquired 15.5% stake in Penske Truck Leasing Co from GE 09/07/2017 Penske Truck Leasing Co., L.P. $674 Inc. (NYSE:PAG); MBK USA - Capital Global Holdings, LLC, Investment Arm for approximately $670 Commercial Vehicles Inc. million on September 7, 2017. Quick International Courier Inc. signed a stock purchase Quick International Courier, 08/17/2017 Unitrans, Inc. $95 - agreement to acquire Unitrans, Inc. from Ascent Global Logistics Holdings, Inc. Inc. for $95 million on August 16, 2017. Seven self-storage facilities in Public Storage (NYSE:PSA) acquired seven self-storage facilities in United 07/27/2017 $34 Public Storage (NYSE:PSA) - United States States for $34.4 million during the six months ended June 30, 2017. Source: Capital IQ. www.peakstone.com 7 Transportation & Logistics Industry Insight | February 2018 Selected Precedent M&A Transactions (continued) Selected Transportation & Logistics Transactions Transaction Date Target / Issuer Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments Special Dispatch of San J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT) entered into an J.B. Hunt Transport Services, 07/21/2017 Antonio, Inc. and Special $136 - agreement to acquire Special Dispatch of San Antonio, Inc. for Inc. (NasdaqGS:JBHT) Logistics Dedicated, LLC approximately $140 million on July 20, 2017. Heartland Express, Inc. (NasdaqGS:HTLD) acquired Interstate Distributor Heartland Express, Inc. 07/06/2017 Interstate Distributor Co., Inc. $117 - Co., Inc. from Saltchuk Resources, Inc. for an enterprise value of (NasdaqGS:HTLD) approximately $110 million on July 6, 2017. EQT Infrastructure III fund, fund sponsored by EQT Partners AB, signed a Global Gateway South 07/03/2017 $817 EQT Partners AB - definitive agreement to acquire a 90% stake in Global Gateway South from Terminal CMA CGM for approximately $820 million on June 30, 2017. Teekay Tankers Ltd. (NYSE:TNK) acquired the remaining 50% stake in Teekay Tankers Operations Teekay Tankers Ltd. 06/01/2017 $39 - Teekay Tankers Operations Ltd from Teekay Corporation (NYSE:TK) for $39 Ltd (NYSE:TNK) million on May 31, 2017. Public Sector Pension Investment Board acquired 50% stake in Aerostar Grupo Aeroportuario del 05/30/2017 Aerostar Airport Holdings, LLC $430 - Airport Holdings, LLC from Oaktree Capital Management, L.P. for Sureste approximately $430 million on May 30, 2017.