THE PEAKSTONE GROUPpeakstonegroup.com/wp-content/uploads/2018/02/...Transportation & Logistics Industry Insight | February 2018 MBK USA Commercial Vehicles, Inc. Date Status Target

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Transportation & LogisticsIndustry Insight

February 2018

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Transportation & LogisticsIndustry Insight | February 2018

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MBK USA Commercial Vehicles, Inc.

Date Status TargetTransaction

SizeBuyer

Sep-2017 Closed $670 million

Jul-2017 Announced $820 million

May-2017 Announced $1.18 billion

Apr-2017 Announced $2.97 billion

Mar-2017 Announced $2.1 billion

Transportation & Logistics M&A Update

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.

1

Transportation & Logistics transaction multiples remained strong

Select Recent Notable Publicly Announced M&A Transactions



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U.S. Transportation & Logistics Transactions by Buyer Type

Transportation & Logistics – U.S. M&A Market Overview

U.S. Transportation & Logistics Transaction Multiples

Source: Capital IQ.

2

8.0x

6.9x

7.9x

6.2x

8.3x

8.1x

10.4x 10.7x

0.6x 0.5x 0.6x 0.6x 0.7x 0.5x0.8x 0.8x

2010 2011 2012 2013 2014 2015 2016 2017

EV / EBITDA EV / Revenue

126 131

169

143134

150

125

128

1119

24

20

12

12

13 13

2010 2011 2012 2013 2014 2015 2016 2017

Strategic Financial



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Relative Stock Performance

Peakstone Truckload IndexCGI, PTSI, KNX, JBHT, WERN, MRTN, USAK, HTLD, SWFT, CVTI

Peakstone Asset-Light & Logistics IndexFWRD, RRTS, LSTR, CHRW, EXPD, XPO, HUBG, ECHO

Peakstone LTL IndexARCB, SAIA, YRCW, ODFL

Peakstone Transportation Indices – Trading Statistics

3

Transportation & Logistics indexes have been trading in-line with the S&P 500

Source: Capital IQ, data as of 1/18/2018.Note: Peakstone indexes are equally weighted.

-50%

0%

50%

100%

150%

200%

250%

300%

350%

LTL: 329%

Truckload: 144%

S&P 500: 89%

Asset-Light and Logistics: 75%



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Comparable Valuation Trends – Enterprise Value / EBITDA

Peakstone Truckload IndexCGI, PTSI, KNX, JBHT, WERN, MRTN, USAK, HTLD, SWFT, CVTI

Peakstone Asset-Light & Logistics IndexFWRD, RRTS, LSTR, CHRW, EXPD, XPO, HUBG, ECHO

Peakstone LTL IndexARCB, SAIA, YRCW, ODFL

Peakstone Transportation Indices – Trading Statistics

4

Transportation & Logistics indexes have been trading in-line with the S&P 500

Source: Capital IQ, data as of 1/18/2018.Note: Peakstone indexes are equally weighted.

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

Asset-Light and Logistics: 14.5x

S&P 500: 13.4x

LTL: 9.3x

Truckload: 8.9x



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Selected Public Trading Comparables

Peakstone LTL Index

Peakstone Truckload Index

5

Source: Capital IQ, data as of 1/18/2018.

($ in millions) Market Enterprise 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%

Enterprise Value /



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%

Enterprise Value /



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Selected Public Trading Comparables (continued)

Peakstone Asset-Light & Logistics Index

6



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%

Enterprise Value /

Source: Capital IQ, data as of 1/18/2018.



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Selected Precedent M&A Transactions

Selected Transportation & Logistics Transactions

7

Source: Capital IQ.

Date Target / Issuer

Transaction

Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments

12/12/2017New Acton Mobile Industries

LLC$235

WillScot Corporation

(NasdaqCM:WSC)-

WillScot Corporation (NasdaqCM:WSC) entered into a letter agreement to

acquire New Acton Mobile Industries LLC from Prophet Equity LLC on

December 1, 2017.

12/07/2017 Keen Transport, Inc. $64Wallenius Wilhelmsen

Logistics ASA (OB:WWL)6.4x

Wallenius Wilhelmsen Logistics ASA (OB:WWL) signed an agreement to

acquire Keen Transport, Inc. from Platinum Equity, LLC for $64 million on

December 7, 2017. The transaction will be financed through existing credit

facilities.

11/24/2017 Montco Offshore, Inc. $131 Falcon Global USA LLC -

Falcon Global USA LLC agreed to acquire substantially all of assets of

Montco Offshore, Inc. from Lee Orgeron and others for approximately

$130 million on November 24, 2017.

11/01/2017 Indiana Transport, Inc. $59Patrick Industries, Inc.

(NasdaqGS:PATK)-

Patrick Industries, Inc. (NasdaqGS:PATK) acquired the business and the

assets of Indiana Transport, Inc. for $59 million on November 1, 2017. The

purchase price for Indiana Transport was funded under Patrick Industries'

existing credit facility.

09/07/2017 Penske Truck Leasing Co., L.P. $674

Penske Automotive Group,

Inc. (NYSE:PAG); MBK USA

Commercial Vehicles Inc.

-

Penske Automotive Group, Inc. (NYSE:PAG) and MBK USA Commercial

Vehicles, Inc. acquired 15.5% stake in Penske Truck Leasing Co from GE

Capital Global Holdings, LLC, Investment Arm for approximately $670

million on September 7, 2017.

08/17/2017 Unitrans, Inc. $95Quick International Courier,

Inc.-

Quick International Courier Inc. signed a stock purchase

agreement to acquire Unitrans, Inc. from Ascent Global Logistics Holdings,

Inc. for $95 million on August 16, 2017.

07/27/2017Seven self-storage facilities in

United States$34 Public Storage (NYSE:PSA) -

Public Storage (NYSE:PSA) acquired seven self-storage facilities in United

States for $34.4 million during the six months ended June 30, 2017.



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Selected Precedent M&A Transactions (continued)


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Source: Capital IQ..


Transaction


07/21/2017

Special Dispatch of San

Antonio, Inc. and Special

Logistics Dedicated, LLC

$136J.B. Hunt Transport Services,

Inc. (NasdaqGS:JBHT)-

J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT) entered into an

agreement to acquire Special Dispatch of San Antonio, Inc. for

approximately $140 million on July 20, 2017.

07/06/2017 Interstate Distributor Co., Inc. $117Heartland Express, Inc.

(NasdaqGS:HTLD)-

Heartland Express, Inc. (NasdaqGS:HTLD) acquired Interstate Distributor

Co., Inc. from Saltchuk Resources, Inc. for an enterprise value of

approximately $110 million on July 6, 2017.

07/03/2017Global Gateway South

Terminal$817 EQT Partners AB -

EQT Infrastructure III fund, fund sponsored by EQT Partners AB, signed a

definitive agreement to acquire a 90% stake in Global Gateway South from

CMA CGM for approximately $820 million on June 30, 2017.

06/01/2017Teekay Tankers Operations

Ltd$39

Teekay Tankers Ltd.

(NYSE:TNK)-

Teekay Tankers Ltd. (NYSE:TNK) acquired the remaining 50% stake in

Teekay Tankers Operations Ltd from Teekay Corporation (NYSE:TK) for $39

million on May 31, 2017.

05/30/2017 Aerostar Airport Holdings, LLC $430Grupo Aeroportuario del

Sureste-

Public Sector Pension Investment Board acquired 50% stake in Aerostar

Airport Holdings, LLC from Oaktree Capital Management, L.P. for

approximately $430 million on May 30, 2017.

05/25/2017 Estenson Logistics, LLC $285 Hub Group Trucking, Inc. -

Hub Group Trucking, Inc. entered into an agreement to acquire

substantially all assets of Estenson Logistics, LLC from Timothy J. Estenson,

Traci M. Estenson and Paul A. Truman for approximately $290 million on

May 25, 2017.

05/23/2017 Navig8 Product Tankers Inc. $1,177Scorpio Tankers Inc.

(NYSE:STNG)17.9x

Scorpio Tankers Inc. (NYSE:STNG) entered into a definitive agreement to

acquire Navig8 Product Tankers Inc. (NPTI) for approximately $250 million

on May 23, 2017.



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Selected Precedent M&A Transactions (continued)


9

Source: Capital IQ..


Transaction


05/10/2017Enviva Port of Wilmington,

LLC$130

Enviva Partners, LP

(NYSE:EVA)-

Enviva Partners, LP (NYSE:EVA) agreed to acquire Enviva Port of

Wilmington, LLC from Enviva Wilmington Holdings, LLC for $130 million on

May 10, 2017.

04/12/2017 United Road Towing, Inc. $40

Medley Capital Corporation

(NYSE:MCC); MCC Advisors

LLC

-

Medley Capital Corporation (NYSE:MCC), managed by MCC Advisors LLC

won an auction to acquire substantially all the assets of United Road

Towing, Inc. for $40 million on April 10, 2017.

04/10/2017Swift Transportation

Company (NYSE:SWFT)$2,971

Knight Transportation, Inc.

(NYSE:KNX)-

Knight Transportation, Inc. (NYSE:KNX) entered into a definitive agreement

to acquire Swift Transportation Company (NYSE:SWFT) for $3 billion on

April 9, 2017.

04/10/2017 4 Companies $24 Central States Trucking Co. 4.6xCentral States Trucking Co. entered into an agreement to acquire Atlantic

Trucking Company, Inc. for $23.5 million on April 10, 2017.

03/28/2017Florida East Coast Holdings

Corp.$2,100

Grupo México Transportes

S.A. de C.V.-

Grupo México Transportes S.A. de C.V. entered into an agreement to

acquire Florida East Coast Holdings Corp. from Florida East Coast

Industries, LLC for $2.1 billion on March 28, 2017.

03/07/2017Dominion Terminal Associates

LLP$20

Ashland Terminal, Inc.;

Contura Energy, Inc.

(OTCPK:CNTE)

-

Ashland Terminal, Inc. and Contura Energy, Inc. (OTCPK:CNTE) agreed to

acquire 37.5% stake in Dominion Terminal Associates LLP from Peabody

Energy Corporation (OTCPK:BTUU.Q) for $20.5 million on March 7, 2017.

03/02/2017 Dulles Greenway, VA $445Macquarie Atlas Roads Group

(ASX:MQA)-

Macquarie Atlas Roads Group (ASX:MQA) entered into a purchase

agreement to acquire additional 50% stake in Dulles Greenway, VA from

Toll Road Investors Partnership II, LP for approximately $450 million on

February 23, 2017.



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About Peakstone

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THE PEAKSTONE GROUPpeakstonegroup.com/wp-content/uploads/2018/02/...Transportation & Logistics Industry Insight | February 2018 MBK USA Commercial Vehicles, Inc. Date Status Target