Environmental, Health & Safety M&A Update Report “Market Intelligence for Business Owners” Capstone Partners Investment Banking Advisors BOSTON | CHICAGO | LONDON | LOS ANGELES | PHILADELPHIA | SAN DIEGO | SILICON VALLEY Q3 2013 Environmental, Health & Safety M&A Update Report MERGER & ACQUISITION ACTIVITY CAPSTONE PARTNERS LLC 23046 Avenida de la Carlota Suite 600 Laguna Hills, CA 92653 www.capstonellc.com David Bench Managing Director (949) 460‐6431 dbench@capstonellc.com Merger and acquisition activity in the Environmental, Health & Safety industry continued strong in the first half of 2013, with the number of completed transactions totaling 38 through June. Transactions continue to be fueled by low interest rates and an improving economic environment, with financial sponsors and strategic acquirers alike purchasing companies in the space at consistently strong valuations. Year‐to‐date activity is on par with 2012 levels, quite an endorsement of this sector, as M&A activity across the board dropped in early 2013, primarily the result of transactions that were hurried to close at the end of 2012 in anticipation of rising capital gains tax rates. The decline in overall market activity in early 2013 was expected, but the fact that the EH&S sector continued to experience a healthy deal environment is an indication of the strong interest in the sector. Environmental, Health & Safety M&A Transactions Tracy Patch Vice President (949) 460‐6432 tpatch@capstonellc.com 90 79 80 68 70 60 61 59 50 47 43 38 40 30 20 10 0 2007 2008 2009 2010 2011 2012 YTD 2013 YTD through June 2013 Source: Capital IQ and Capstone Partners LLC research M&A activity in the EH&S industry continues to be supported by strong market fundamentals, such as a fragmented market, globalization of the industry and strong corporate interest in safety and risk avoidance. As a result, 2013 is anticipated to be another solid year and we expect activity in the industry to continue at a healthy pace for the foreseeable future. The following pages profile a sampling of active buyers in the EH&S industry, followed by a list of recent transactions in the space. These profiles and transactions show that corporate buyers continue to be motivated by a strategic desire to expand their product and service offerings, acquire expertise in specific vertical markets and expand their geographic reach. Private equity groups also remain active in the space and are attracted to the industry’s attractive growth prospects, as well as the opportunity to consolidate this highly fragmented market. 1 Q3 2013 Environmental, Health & Safety SAMPLE ACQUIRER PROFILE: ANSELL LTD. Ansell is a global leader in protection solutions. The company manufactures a wide range of hand and arm protection solutions and clothing for industrial workers and healthcare professionals. Ansell is organized around four Global Business Units consisting of Industrial, Medical, Sexual Wellness and Specialty Markets. The Industrial segment offers hand and upper arm protective gloves for heavy industrial use, such as the automotive & transportation, chemical, metalworking, construction, agriculture, warehousing, electronics, pharmaceutical and food processing industries. The Medical segment provides examination and surgical gloves for healthcare professionals. The Specialty Markets segment provides application‐ specific gloves for industries, such as food, agriculture, construction, do‐it‐yourself, janitorial/sanitation, military, first responders and household goods. The company is headquartered in Richmond, Australia. Ansell has an active acquisition program with the purpose of building scale and adding new capabilities in key geographic markets. Magnus Nicolin, Chief Executive of Ansell, said that company’s mergers and acquisitions "sweet spot" is $30 million to $75 million. Recent acquisitions include the following: Hércules Equipamentos de Protecao Ltda – Acquired in 2013 for approximately $77 million, the company is located in Brazil and manufactures Personal Protective Equipment (PPE) for the military, first responders and industrial workers. Preferred Surgical Products L.L.C. – Acquired in 2012, PSP produces infection prevention products used in invasive areas of hospitals and ambulatory surgery centers. PSP reportedly fits well within Ansell’s Sandel brand of healthcare safety products and strategically expands its perioperative safety offering. Comasec SAS – Acquired in 2012 for approximately $100 million, the company manufactures rubber and fabric hand and arm protection products for users working with hazardous compounds and for electricians. Trelleborg Protective Products AB (Sweden) – Acquired in 2012 for $210 million, Trelleborg manufactures protective products such as rubber dry suits, PU dry suits, hoods, neck and wrist components, dry suit pockets, valves and hoses, boots and underwater bags. Its products are used in fire and rescue, defense, commercial diving, law enforcement, industry, recreational diving and shipping. 2011 Acquisitions – In 2011, Ansell acquired a minority stake in Lakeland Industries, a manufacturer of safety garments and accessories for the industrial protective clothing market worldwide; and Sandel Medical Solutions LLC, a manufacturer of medical and ergonomic safety products for the healthcare industry, which it acquired for $13.5 million. 2 Q3 2013 Environmental, Health & Safety SAMPLE ACQUIRER PROFILE: W.W. GRAINGER, INC. W.W. Grainger, Inc. engages in the distribution of maintenance, repair and operating supplies, as well as other related products and services for businesses and institutions primarily in the United States and Canada. The company provides a wide array of products, including safety and security supplies. It sells to small and medium‐sized businesses, large corporations, government entities and other institutions. Grainger has recently focused more attention on the safety, energy efficiency and sustainability space, a strategy that has included several acquisitions. The company’s occupational health and safety catalog features a recently‐doubled safety offering including more safety footwear, clothing, training and reference materials. Grainger also recently introduced Online SafetyManager, a tool that allows users to create and manage their safety program to maintain compliance, reduce fines, improve facility safety, reduce accident and injury rates and cut operating costs. The company’s recent acquisitions in the EH&S industry include the following. Techni‐Tool, Inc. – Acquired in 2012 for an estimated $40 million, Techni‐Tool distributes electronic production and rework, field service and maintenance products including apparel, gloves and safety supplies. It distributes products to telecom companies and security companies, as well as government agencies. FABORY Nederland B.V. – Sells fasteners, tools, industrial supplies and safety products for small businesses, maintenance and repair businesses and OEMs internationally. Personal care products include personal protection equipment for eye and face, head, respiratory and hand protection, work wear and footwear. Grainger acquired FABORY in 2011 for approximately $340 million. Wolseley Industrial Products Group, Inc. – Acquired in 2010, Wolseley distributes industrial products including health and safety items. SafetyCertified.com, Inc. – Acquired in 2010, the company is a safety and risk‐ management business that offers an online program to assist organizations in their efforts to comply with OSHA regulations. The company also provides regulatory compliance advisory services and guide books, editorial content, posters and software solutions. Solus Securite, Inc. – Provides solutions for workplace safety and the distribution of safety equipment. The company is based in Canada and had sales of about CAD 20 million when Grainger acquired the company in 2010. Ranson Industrial and Safety Supplies Inc. – Acklands‐Grainger Inc. acquired Ranson Industrial in 2010. Ranson distributes industrial, safety, fire, paper and janitorial supplies in Canada. 3 Q3 2013 Environmental, Health & Safety SAMPLE ACQUIRER PROFILE: HONEYWELL INTERNATIONAL INC. Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. The Honeywell Life Safety division manufactures intelligent sensing; gas, fire and smoke detection; health telemonitoring; and personal protective equipment. Honeywell Life Safety operates as a subsidiary of Honeywell Automation and Control Solutions and is an important component of Honeywell’s overall business strategy. Honeywell had long been in the building safety market and, in 2008, also became a global leader in the PPE market with the acquisition of Norcross Safety Products and its product portfolio designed to protect workers from “head to toe” in a variety of hazardous environments. “We’re excited to have the opportunity to participate in the dynamic growth of the personal protective industry,” said Mark Levy, President, Honeywell Life Safety. The company is very active in mergers & acquisitions, which it utilizes for the opportunity to accelerate product innovation, cross sell with other Honeywell business lines and expand globally. A sampling of Honeywell’s acquisitions in the EH&S space include the following: RAE Systems Inc. – In 2013, Honeywell acquired RAE Systems Inc. from Vector Capital, CITIC Capital Partners and other shareholders, for $340 million. RAE Systems manufactures multi‐sensor chemical and radiation detection monitors and networks for oil and gas, hazardous material management, industrial safety, civil defense and environmental remediation applications. The company generated revenue of $107 million in 2012. Fire Sentry Corporation – Acquired in 2012, Fire Sentry Corporation designs and manufactures electro‐optical fire and flame detectors, portable test lamps, controllers and control panels used to detect fires. Its products are used in various industrial applications. King's Safetywear Limited – Designs and manufactures safety footwear and personal safety equipment such as eyewear, boots, fall arrest systems and helmets. It serves heavy and light industries, including oil and gas, ship repair, aviation engineering, mining, manufacturing and automotive industries. King’s was acquired in 2011 for approximately $331 million. Sperian Protection S.A. – In 2010, Sperian Protection was acquired by Honeywell in a transaction valued at $1.1 billion. Sperian manufactures personal protective equipment such as hearing, respiratory and contamination protection products; ventilated suits; hand and arm protection; insulating gloves; eye and face protection; portable and fixed gas detectors; fall protection and safety footwear. Norcross Safety Products L.L.C. – Acquired in 2008 for approximately $1.2 billion to establish Honeywell Safety Products as a provider of personal protection equipment for workers worldwide. 4 Q3 2013 Environmental, Health & Safety SAMPLE ACQUIRER PROFILE: TERRACON CONSULTANTS Founded in 1965 and based in Olathe, Kansas, Terracon Consultants, Inc. operates as an engineering consulting company and has evolved into a successful multi‐ disciplinary firm specializing in environmental, facilities, material and geotechnical consulting. Driven by a desire to provide a full offering of services to its clients, while at the same time expanding its geographic footprint across the US, Terracon has been actively acquiring companies, rolling up a variety of specialty companies that together create a full‐service offering. Terracon has acquired more than 14 companies in the EH&S space and now has more than 2,800 employees in 140 offices across the US. While much of this growth has been organic, a solid portion of Terracon’s expansion has been acquisitive. Terracon President and CEO David Gaboury describes the acquisitions as fulfilling the company’s expansion strategy in three ways. First, “we’ve been acquiring firms in our core business—geotechnical materials and geo‐environmental—to expand geographically,” he notes. Second, in the environmental services arena, Gaboury explains, “We’ve done some small acquisitions and are planning to be more aggressive and bring in complementary capabilities, like an industrial hygiene firm or an asbestos firm, or an indoor air quality firm.” The third prong of the company’s acquisition strategy consists of diversification into facilities, or “building forensics.” This acquisition strategy is intended to differentiate the company from competitors, an ongoing challenge in a market whose services are often viewed as commodity‐like in nature. Terracon’s recent acquisitions include the following: Liesch Associates, Inc. – Liesch operates as an environmental consulting and engineering company. As of January 2013, Liesch Associates operates as a subsidiary of Terracon Consultants, Inc. EARTHTEC, Inc. – In November 2012, Terracon acquired EARTHTEC, a professional consulting company specializing in geotechnical, geo‐environmental and construction monitoring services in Central and Northern California. IHI Environmental Inc. – IHI Environmental provides industrial hygiene, occupational safety and environmental consulting services in the western United States. The company was founded in 1980 is based in Salt Lake City, Utah; it was acquired by Terracon in August 2012. IAQ Consultants, Inc. (IAQC) – A Dallas‐based firm specializing in indoor air quality, asbestos consulting and industrial hygiene. With the addition of IAQC, Terracon expanded into the industrial hygiene services business. The transaction was completed in December 2009. 5 Q3 2013 Environmental, Health & Safety SAMPLE ACQUIRER PROFILE: UNDERWRITERS LABORATORIES INC. Underwriters Laboratories Inc. operates as a safety science company. The company operates through five units: Product Safety, Environment, Life and Health, Verification Services and Knowledge Services. Together they provide safety testing, validation and certification, inspection services, training, advisory services, standards development and auditing services. Recent EH&S transactions include the following. Testtech Laboratorios – Acquired in 2013, Testtech Laboratórios provides electrical safety testing services for equipment used in shops, workshops, farms and light industry. The company positions UL as a single‐source for appliance certification, testing and follow‐up services. National Everclean Services, Inc. – Provides food safety consultation, training and auditing programs. This addition further extended UL's capabilities in the food industry, where the propagation of foodborne illnesses is a growing concern across the globe. The company works on issues such as labeling, permitting and auditing. It was acquired by UL in 2013. GoodGuide, Inc. – Acquired in 2012, GoodGuide provides online information on the health, environmental and social impacts of products and companies. Said George Consagra, Chief Executive Officer of GoodGuide, "This acquisition represents the union of two mission‐driven marketplace leaders that are committed to advancing global sustainability, environmental health and safety." ICQ Global srl – Provides consumer products safety testing services, including electrical, chemical, physical, flammability, microbiological and other performance tests on various products. UL acquired ICQ Global in 2012. eco‐INSTITUT GmbH – Acquired in 2012, eco‐INSTITUT provides emissions and chemical content testing services, indoor air analysis and advisory services. EduNeering, Inc. – UL acquired Kaplan’s EduNeering, Inc. for $14.5 million in 2012. EduNeering develops and delivers cloud computing learning solutions for regulatory compliance, enterprise learning management, safety, corporate culture, ethics and corporate responsibility. PureWorks, Inc. – Acquired in 2011, PureWorks had revenue of $26.4 million and 250 employees at acquisition. PureWorks provides employee safety and health software training and compliance solutions. Air Quality Sciences, Inc. – Provides indoor air quality testing and consulting services. It serves product manufacturers, building owners & managers, architects & interior design professionals, school administrators, industrial hygienists and environmental consultants. UL acquired the company in 2011. 6 Q3 2013 Environmental, Health & Safety SAMPLE ACQUIRER PROFILE: CALTIUS CAPITAL MANAGEMENT Caltius Capital Management is a private equity firm specializing in bridge financing, buyouts, turnarounds and mezzanine investments. The firm seeks to invest in middle market and mature companies across a wide range of industries. For equity investments, the firm seeks controlling or substantial minority ownership positions and a board seat in its portfolio companies. Investments range between $5 million and $20 million in companies with enterprise values of $10 million to $50 million. Caltius Capital Management was founded in 1997 and is based in Los Angeles, California. Some of the firm’s notable acquisitions in the EH&S space include the following:. Impact Facility Services, LLC – Impact Facility Services provides fire protection and alarm services including inspections, repairs, installation and remodels of fire sprinkler systems, fire pumps and suppression systems. In addition, the company also provides foam and cleaning agents, fire extinguishers, backflow preventers, corrosion management services, fire alarm systems and security services (including intrusion, access control and video services). The company was acquired by Caltius in 2012. Diversified Human Resources, Inc. – In 2009, Diversified Human Resources, Inc. received an additional equity investment from Caltius, following an initial investment in 2008. As a result, Caltius acquired a majority stake in the company and is now the primary shareholder. Diversified Human Resources provides human resource services to companies operating in the United States. Its services include HR management, training, safety programs, compliance and records management, specialized HR projects and recruiting. Consolidated Fire Protection – Consolidated Fire Protection was formed in January 2000 by Caltius Equity Partners and co‐investors to acquire Cosco Fire Protection, Inc. and Firetrol Protection Systems, Inc., separately operated subsidiaries of U.S. Industries, Inc., as part of a corporate divestiture. The company repairs, services, inspects, designs, fabricates and installs fire suppression and fire alarm and detection systems for commercial, industrial and institutional customers throughout the Western United States. Caltius Equity Partners was attracted to Cosco's and Firetrol's solid reputations in their respective markets and to the opportunity to expand the businesses, both organically through additional service offerings and vis‐à‐vis acquisitions. Caltius believed that Consolidated Fire would benefit from the fire and life safety industry's built‐in regulatory environment and fragmentation to become a market leader, particularly in the high margin repair and service sector. Five years after it was formed, in 2005, Caltius sold Consolidtaed Fire Protection to Gryphon Investors, who in‐turn sold it to Minimax GmbH in 2007. 7 Q3 2013 Environmental, Health & Safety SAMPLE ACQUIRER PROFILE: KRG CAPITAL PARTNERS KRG Capital Partners is a private equity firm specializing in investments in middle‐ market companies. The firm invests in owner recapitalizations, management buyouts of public and private companies, add‐on acquisitions, industry consolidations, family successions and outright purchases. KRG tends to invest in manufacturing, distribution and service‐oriented industries, with a focus on packaging, transportation and logistics, healthcare, medical devices, business services, advertising and construction materials. KRG seeks out companies that are customer centric and have viable buy‐and‐build strategies. It prefers to take a controlling stake in its portfolio companies and have full control over the board of directors. KRG was founded in 1996 and is based in Denver, Colorado with additional offices in Mill Valley, California and Las Vegas, Nevada. KRG has been particularly active in the middle market space in the last 5 years, acquiring over 10 companies, including the following in the EH&S industry: Convergint Technologies, LLC – Convergint Technologies designs, installs and services building systems, such as electronic security, fire alarm, life safety and building automation systems. It offers installation, support, automation and communications services. The company also provides electronic security solutions, such as card access, closed‐circuit television, IP based cameras, IP video management systems, alarm intrusion solutions, digital video recording solutions and physical security information management solutions. Fire and Life Safety America, Inc. – Fire and Life Safety America, Inc. designs, fabricates, installs, inspects and services fire protection systems. Fire alarm and life safety solutions include intelligent fire and smoke detection, one‐ and two‐ way emergency voice communication, notification, graphic and directory annunciation, air sampling detection, area of rescue assistance, monitoring and suppression system solutions. Fire and Life Safety America, Inc. was founded in 1997 and is headquartered in Richmond, Virginia. Trafficware, Ltd. – Headquartered in Sugar Land, Texas, Trafficware is a leading provider of innovative hardware and software solutions for arterial traffic management. The company is a “one‐stop‐shop” for proprietary, integrated hardware and software products that allow users to control traffic through intelligent systems. In 2012, Trafficware made an add‐on acquisition with its purchase of Naztec, a designer and manufacturer of advanced traffic control hardware and software for transportation agencies. 8 Q3 2013 Environmental, Health & Safety SAMPLE ACQUIRER PROFILE: RHV CAPITAL, LLC RHV Capital, LLC is a private equity firm specializing in direct and fund of fund investments. It focuses on acquisitions, buyouts, recapitalizations and growth investments in the lower middle market. Targeting companies with enterprise value in the range of $10 million to $50 million, RHV seeks to make co‐investments with owners, private equity firms and other private investors. The firm’s website states that, “RHV seeks investments that afford us the opportunity to co‐invest with the owner‐manager operating the business. We invest to provide funds for a variety of purposes, which may include growth initiatives, acquisitions, buyout of selling shareholders, and/or a recapitalization to provide partial liquidity to the owner‐manager. RHV’s focus is on companies with recurring or repeating revenue streams, low customer concentration and low customer attrition. We look for industries that support sustainable profitability and are fragmented or have other characteristics that allow small enterprises to develop good market positions. Our Principals have a unique blend of experience that provides a basis to add value to the companies in which we invest. That experience includes Board of Directors (public and private), owner‐manager, operations, finance, information technology and investment banking.” Currently RHV Capital maintains an ownership stake in the following EH&S companies: Continental Fire & Safety Inc. – In 2012, RHV acquired Continental Fire & Safety Inc., a company that provides fire, safety and suppression equipment and services in the United States. The company offers adapters, airbags, rescue struts, fire escape systems training and CPR and AED training. Continental Fire & Safety Inc. was founded in 1974 and is based in Trenton, New Jersey. Pyott‐Boone Electronics, Inc. – Acquired in 2011, Pyott‐Boone Electronics manufactures electronic monitoring and communication products for the underground mining industry worldwide. The company’s products are used in fan and pump monitoring, coal mine monitoring, underground radio communications and processing plant applications. Since its acquisition by RHV, Pyott‐Boone has made two of its own purchases, acquiring TR Minecom in 2013 and Mine Radio Systems Inc. in 2013. Both companies provide communications, tracking and safety solutions for mining, tunneling and industrial applications. Workplace Answers, LLC – Workplace Answers provides online compliance training courses to educational institutions, corporate enterprises and government organizations in the United States. It offers a full selection of safety training services for the workplace. The company offers courses in the areas of sexual harassment and discrimination prevention, diversity awareness and inclusion and safety and workforce management. Workplace Answers was founded in 1997 and is based in Austin, Texas. 9 Q3 2013 Environmental, Health & Safety SAMPLE ACQUIRER PROFILE: THE RIVERSIDE COMPANY The Riverside Company is a private equity firm specializing in leveraged buyouts, management buyouts, public to private transactions and recapitalizations of middle market companies. The company makes investments with a focus on healthcare, education, software and information technology, software‐as‐a‐service (SaaS), franchisors, energy and sustainability, cleantech, materials, financial service companies, communication technology and consumer products. The firm typically invests between $3 million and $100 million in companies having enterprise values between $10 million and $250 million. It targets companies with revenue between $5 million and $25 million and EBITDA between $1 million and $25 million, and typically holds its investments from four to ten years. The firm seeks to make both minority and majority equity investments. Riverside’s investments in EH&S companies include the following: Alchemy Systems, LP – Acquired in January 2013, Alchemy Systems provides food and workplace safety training services for production workers. It offers courses in the areas of workplace safety, food safety, food service, poultry handling, animal welfare, HR training and customer service. The company provides both onsite and online training services, customized content for training and identifies funding sources and secures grants. Alchemy is actively seeking add‐on acquisitions and recently acquired Avatar Technology Inc., an IT consulting firm. DISA Global Solutions, Inc. – DISA Global provides employee screening and compliance services to safety‐sensitive employers in the United States and internationally. It offers drug and alcohol testing, employee background screening, occupational health screening, safety training and driver qualification file management services. The company also provides contractor compliance services for the petrochemical industry, Department of Transportation compliance services, audit assistance, online Occupational Safety & Health Administration, substance‐abuse training programs and electronic document management services. DISA was acquired by Riverside in early 2011. Later that year, DISA and Riverside acquired Bay Area Training, a provider of safety orientation programs for major refineries. Health & Safety Institute – Acquired in 2006, Health & Safety Institute provides emergency care and response training services. Health & Safety Institute was acquired as a platform for other acquisitions. It acquired Medic First Aid International, Inc., a provider of CPR/first aid emergency care training programs for business, industry and the public; and JSL Communications LLC, which designs and creates workplace training solutions. Riverside sold Health & Safety Institute in 2012 to DW Healthcare Partners. 10 Q3 2013 Environmental, Health & Safety RECENT ENVIRONMENTAL, HEALTH & SAFETY M&A TRANSACTIONS Date Jun‐13 Jun‐13 Jun‐13 Jun‐13 Jun‐13 May‐13 Apr‐13 Apr‐13 Apr‐13 Target American Radiation Services, Inc. Birdsall Services Group, Inc. Target Business Description Acquiror Offers environmental consulting services. The Aleut Corporation Operates as an engineering and environmental consulting company. Manufactures multi‐sensor chemical and radiation detection monitors RAE Systems Inc. and networks for oil and gas, industrial safety and other markets. Data Transfer Solutions Provides services and software used to support fire protection, planning, LLC, Wildfire Division response, suppression and incident management. DeLuca‐Hoffman Provides civil and environmental engineering services in Maine and Associates, Inc. northern New England. Powerline EHV; Southern Manufactures LED lighting and provides utility infrastructure safety Energy; Innovative Elect. training services and energy & green building consulting/verification. MSi Testing & Provides metallurgical testing and failure analysis services including Engineering Inc. consumer product, corrosion and other safety testing. Global Safety Provides drug safety services to the life sciences industry and hosting Surveillance, Inc. services for the Oracle Argus Safety Suite. Provides consulting, system engineering and project management for Macro Corporation public safety/homeland security and other markets. Enterprise EV / LTM Value Revenue EBITDA ($mm) ‐ ‐ ‐ $8.1 ‐ ‐ $340.0 3.2x ‐ ‐ ‐ ‐ ‐ ‐ ‐ $4.3 ‐ ‐ ‐ ‐ ‐ Telerx Marketing Inc. ‐ ‐ ‐ Ross & Baruzzini, Inc. ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Partner Assessment Corporation Honeywell Analytics Ltd. Timmons Group, Inc. Fay, Spofford & Thorndike, Inc. PowerSecure International SGS SA (SWX:SGSN) Apr‐13 Arges Group, Inc. Provides risk control and management services. R. J. Ahmann Co. Mar‐13 Charles Haller Enterprises, Inc. Mar‐13 Citation Global, Inc. Supplies tools and services including a full array of safety items for the commercial and industrial construction trades. Offers environmental, health and safety compliance management solutions. Colony Hardware Corporation A group of private investors Mar‐13 Ashburn Hill Corp. Provides fire protective gear. INVISTA S.à.r.l. ‐ ‐ ‐ Mar‐13 Stone Pump and Trench (Certain Assets) Provides trench safety and pumping solutions. National Trench Safety, LLC ‐ ‐ ‐ Mar‐13 DataTech911, Inc. Engages in the development, testing and installation of software products for the management of the public safety industry. Offers environmental engineering, occupational hygiene, and health & safety services. Provides engineering and environmental consulting, as well as solid waste management services. Provides inspection software and safety compliance management solutions. Provides food safety training and technical services to the food and beverage industry. ElanTech, Inc. ‐ ‐ ‐ Conestoga‐Rovers & Associates, Inc. Stearns, Conrad & Schmidt Con. Engng. Master Lock Canada, Inc. ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ NSF International Inc. ‐ ‐ ‐ High Park Capital Partners ‐ ‐ ‐ Mar‐13 INSPEC‐SOL Inc. Mar‐13 SCS Aquaterra Feb‐13 N4 Systems Incorporated Guelph Food Technology Centre eCompliance Management Provides occupational health and safety (OHS) management solutions. Solutions Inc. Alexander/Ryan Marine & Supplies marine safety products and services to the oil and gas industry Safety Co. Inc. worldwide. Pelican Bay Trading Designs and manufactures safety eyewear and goggles. Company, Inc. Provides environmental, forensic, occupational and analytical laboratory INALAB, Inc. services in Hawaii and the Pacific Rim basin. Manufactures temperature and refrigeration monitoring systems to Modularm Corporation protect perishables, save energy and increase operator safety. Provides environmental moisture control products for the waterproofing, DryDog Barriers, LLC repair and grading industries. Drew Marine, Inc. ‐ ‐ ‐ Radians, Inc. ‐ ‐ ‐ Galson Laboratories Inc. ‐ ‐ ‐ Kitchen Brains, LLC ‐ ‐ ‐ GMX, Inc. ‐ ‐ ‐ Jan‐13 Liesch Associates, Inc. Operates as an environmental consulting and engineering company. Terracon Consultants, Inc. ‐ ‐ ‐ Jan‐13 Fire Research Corporation Manufactures and distributes equipment and solutions for fire, rescue and R∙O∙M Corporation emergency services throughout the world. ‐ ‐ ‐ Jan‐13 Backcountry Access, Inc. Manufactures and distributes ski and snow safety products. K2 Sports ‐ ‐ ‐ Provides food safety consultation, training and auditing programs. Underwriters Laboratories Inc. ‐ ‐ ‐ ‐ ‐ ‐ Feb‐13 Feb‐13 Jan‐13 Jan‐13 Jan‐13 Jan‐13 Jan‐13 Jan‐13 Jan‐13 National Everclean Services, Inc. Lotspeich and Associates, Inc. An ecological consulting company, provides natural resource assessment GAI Consultants, Inc. and regulatory compliance assistance services. Sources: Capstone Partners LLC research, Capital IQ, Pitchbook LTM = last twelve months; EV = enterprise value 11 Q3 2013 Environmental, Health & Safety CAPSTONE PARTNERS: REPRESENTATIVE EH&S TRANSACTIONS CLIENT (CONFIDENTIAL) CLIENT (CONFIDENTIAL) is pursuing a corporate sale is pursuing a corporate sale has been acquired by FIRE RESISTANT COATINGS FIRE PROTECTION SYSTEMS PROVIDER OF CORPORATE TRAINING H.P. White Laboratory, Inc. has recapitalized with has recapitalized with has been acquired by has been acquired by has been acquired by has secured financing from has been acquired by has been acquired by Hyde Park Holdings LLC PRIVATE INVESTOR GROUP a division of a division of HUNT CAPITAL. has been acquired by has been acquired by has been acquired by Jarex Distribution LLC has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by acquisition advisory THE ENVIRONMENTAL, HEALTH & SAFETY TEAM David Bench, Managing Director dbench@capstonellc.com • (949) 460‐6431 David is Capstone’s Managing Director in charge of the West Region, based out of Los Angeles. Prior to Capstone, David managed the West region for Morgan Stanley Smith Barney’s Capital Strategies Group and its predecessor, Citi Capital Strategies. David has focused on middle market investment banking for over 25 years and has been the lead banker in over 250 M&A transactions involving both domestic and foreign corporate buyers, as well as leveraged recaps with private equity sponsors. David’s achievements in the investment banking industry have gained national recognition by The M&A Advisor: in 2008, one of his transactions was awarded the “Energy Deal of the Year” and, in 2007, he was awarded Middle Market Financing Professional of the Year. Mr. Bench holds a BS and an MBA in Finance from Brigham Young University. He is a Series 7 and 63 Registered Securities Representative and a Series 24 Registered Securities Principal. Tracy Patch, Vice President tpatch@capstonellc.com • (949) 460‐6432 Tracy is a Vice President in the Los Angeles office, supporting the management of the West Region. Prior to Capstone, Tracy worked as a senior banking professional in Morgan Stanley Smith Barney’s Capital Strategies Group and its predecessor, Citi Capital Strategies. She possesses ten years of experience in middle market investment banking, working on both domestic and cross‐border transactions. Her previous finance experience includes working in the hedge fund industry with Collins/Bay Island Securities LLC and Talisman Capital Partners. Prior to that, Mrs. Patch worked with institutional fixed income sales at both Vining Sparks IBG, LP and Robert Thomas Securities, Inc. Tracy also enjoyed tenure in management at The Disney Company. Mrs. Patch holds an MBA from Pepperdine University and a BS in Finance from Miami University of Ohio. She is a Series 7 and 63 Registered Securities Representative. 12 ABOUT CAPSTONE PARTNERS Capstone Partners LLC is a leading international investment banking firm dedicated to serving the corporate finance needs of middle market business owners, investors and creditors. The firm provides merger & acquisition, private placement, corporate restructuring, valuation and financial advisory services. Capstone maintains various industry specialties including one in the Environmental, Health & Safety sector. The firm also possesses merchant banking capabilities to actively co‐invest in transactions. Additional information about Capstone Partners can be found at www.capstonellc.com. LEADERSHIP TEAM NATIONAL John Ferrara Founder, President (617) 619‐3325 jferrara@capstonellc.com CHICAGO Ted Polk Managing Director (312) 674‐4531 tpolk@capstonellc.com LOS ANGELES David Bench Managing Director (949) 460‐6431 dbench@capstonellc.com SAN DIEGO & SILICON VALLEY David Michaels Managing Director (858) 926‐5950 dmichaels@capstonellc.com BOSTON Jacob Voorhees Director and Principal (617) 619‐3323 jvoorhees@capstonellc.com LONDON John Snead Managing Director +44 7979 704302 jsnead@capstonellc.com PHILADELPHIA Eric Williams Managing Director (215) 854‐4065 ewilliams@capstonellc.com CORPORATE RESTRUCTURING Brian Davies Managing Director (617) 619‐3328 bdavies@capstonellc.com Capstone Partners Investment Banking Advisors www.capstonellc.com World Class Wall Street Expertise. Built for the Middle Market. © 2013 Capstone Partners LLC. All rights reserved.