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Facilities
ServicesIndex
Stock Index
Facilities Services
| Stock
Q1 2015
LI Facilities Services (“FS”) Index begins 2015 strong with a 3.9% increase in Q1
Qtr over Qtr Performance
Outperformers*
Quarter over Quarter Stock Index Change
Change
FirstService Corporation
38.3%
Securitas AB
31.0%
ServiceMaster Global Holdings
26.1%
Underperformers*
Change
30%
3.9%
0%
-3.1%
Team, Inc.
-3.7%
-10%
-21.3%
-20%
* Based on quarter over quarter share
price performance
-30%
LI Facilities Services Index
S&P 1500 Environmental and Facilities Services Index
S&P 500 Index
Q2-2013
FS Stock Highlights
From last quarter:
 LI Facilities Services Index increased 3.9%
 S&P 1500 Environmental and Facilities
Services Index increased 6.2%
 S&P 500 Index increased 0.4%
 Facilities Services Enterprise Value / LTM
environmental and energy services
company, announced that it will carve out
its oil and gas field services segment into
a standalone entity
 3/2/2015: Rentokil Initial, the UK-based
support services company, intends to use
its high cash flow to accelerate
acquisitions across all of the company’s
regions
 3/31/2015: Compass Group, the UKbased provider of food and support
services, is looking for small- to mediumsize acquisitions
 4/1/2015: AlliedBarton, the security
services company, has been meeting with
potential investors to gauge potential
acquisition interest
1
Q2-2014
Q3-2014
Q4-2014
Q1-2015
35.5%
28.0%
100%
25.0%
LI Facilities Services Index
S&P 1500 Environmental and Facilities Services Index
S&P 500 Index
0%
Q2-2013
 1/12/2015: ABM, the leading provider of
 1/20/2015: Clean Harbors, the
Q1-2014
150%
Heard on the Street
New York-based uniform laundry and
rental company, is seeking to recapitalize
Q4-2013
200%
50%
 1/20/2015: Coyne Textile Services, the
Q3-2013
Two Year Relative Stock Index Performance
EBITDA multiples decreased 2.8% to 11.2x
facility solutions, announced that EVP
Scott Salmirs will succeed Henrik
Slipsager as President and CEO effective
March 31, 2015
0.4%
10%
UniFirst Corp
Matrix Service Company
6.2%
20%
Q3-2013
Q4-2013
Q1-2014
Q2-2014
Q3-2014
Q4-2014
Q1-2015
Enterprise Value(1) / LTM EBITDA Multiples
14.0x
12.0x
10.0x
10.9x
11.2x
10.9x
11.1x
10.7x
Q3-2013
Q4-2013
Q1-2014
Q2-2014
Q3-2014
11.5x
11.2x
Q4-2014
Q1-2015
9.5x
8.0x
6.0x
4.0x
2.0x
0.0x
Q2-2013
Source: Capital IQ as of 3/31/2015
(1)
Enterprise Value is calculated as market capitalization plus total net debt, preferred equity and minority interest
About the LI Facilities Services Index
The LI Facilities Services Index is a market cap weighted composite stock index similar to the S&P 500
Index. The index is prepared by first selecting a base period, in this case, Q2 2013, and totaling the
market caps of the companies in this period. This period and the total market cap is set to a base index
at 100%. Next, the current period’s total market cap is calculated, divided by the base period’s total
market cap and then multiplied by the base index (100%). The result is the index value used for plotting
the Relative Stock Index Performance graph above. A full list of the companies included in the LI
Facilities Services Index can be found on the back page. Figures shown above are historically updated to
reflect the updated LI Facilities Services Index.
Lincoln International S t o c k I n d e x
Facilities Services
© 2015 Lincoln International LLC
Q1 2015
LI Facilities Services Index Stock Data ($ in millions except per share data)
Current
52-Wk
Price
$ 31.86
31.63
81.63
21.04
17.41
46.47
64.74
72.53
4.39
8.62
50.44
17.56
4.10
5.69
2.03
24.73
14.34
33.75
97.53
38.98
117.69
High
$32.52
32.70
88.23
21.44
18.02
48.00
65.33
74.11
4.48
11.16
52.00
38.71
5.02
6.05
2.12
25.00
14.44
36.95
100.90
45.05
124.61
ABM Industries Incorporated
Aramark
Cintas Corporation
Comfort Sy stems USA Inc.
Compass Group plc
EMCOR Group Inc.
FirstServ ice Corporation
G&K Serv ices Inc.
G4S plc
Interserv e plc
Johnson Controls Inc.
Matrix Serv ice Company
MITIE Group plc
Prosegur Compañía de Seguridad, S.A.
Rentokil Initial plc
Rollins Inc.
Securitas AB
Serv iceMaster Global Holdings, Inc.
Sodex o S.A.
Team, Inc.
UniFirst Corp.
Mean
Median
Adjusted Mean (ex cludes highest and low est v alue)
Market Enterprise Diluted
Cap
Value
EPS
$1,784 $ 2,108 $ 1.40
7,514
13,253
0.78
9,334
10,144
3.62
781
804
0.61
28,970
32,520
0.79
2,927
2,843
2.59
2,328
2,855
1.15
1,446
1,674
2.93
6,788
9,276
0.09
1,251
1,668
0.49
33,154
40,970
2.22
469
405
1.04
1,466
1,819
0.06
3,407
4,139
0.00
3,690
4,817
0.11
5,407
5,299
0.63
5,235
6,515
0.72
4,544
7,196
0.38
14,809
15,726
4.19
807
857
1.69
2,366
2,159
6.08
LTM
Rev
$5,096
14,772
4,551
1,411
27,671
6,425
2,714
922
10,672
4,540
42,920
1,390
3,624
4,606
2,713
1,412
8,974
2,457
23,685
815
1,436
EV / LTM
Rev EBITDA EBIT
0.4x
11.4x 16.4x
0.9x
11.7x 21.3x
2.2x
12.1x 15.0x
0.6x
12.7x 19.1x
1.2x
13.1x 16.7x
0.4x
8.0x 10.1x
1.1x
13.7x 19.5x
1.8x
12.0x 15.4x
0.9x
11.6x 18.5x
0.4x
7.9x 14.0x
1.0x
12.2x 16.9x
0.3x
6.5x 10.1x
0.5x
17.5x 30.8x
0.9x
8.0x 11.0x
1.8x
7.4x 14.0x
3.8x
20.2x 24.2x
0.7x
11.4x 15.7x
2.9x
13.3x 16.4x
0.7x
10.3x 13.2x
1.1x
9.9x 13.4x
1.5x
7.9x 10.8x
1.2x
11.4x 16.3x
0.9x
11.6x 15.7x
1.1x
11.2x 15.9x
LTM Growth
EBITDA Net Debt/
Rev
EBITDA
Margin EBITDA
5.0%
1.7%
3.6%
1.7x
4.2%
8.7%
7.7%
5.1x
1.9%
5.9%
18.4%
1.1x
3.9%
(1.2%)
4.5%
0.1x
(2.7%)
0.5%
9.0%
1.6x
1.4%
16.5%
5.5%
(0.3x )
15.8%
19.5%
7.7%
1.6x
4.4%
6.3%
15.2%
1.6x
(13.3%)
35.6%
7.5%
3.2x
25.0%
28.3%
4.7%
2.0x
2.5%
(9.2%)
7.8%
2.2x
39.2%
3.3%
4.5%
(0.9x )
2.7%
(39.5%)
2.9%
3.7x
(9.5%)
(17.9%) 11.2%
1.6x
(29.6%)
(16.6%) 23.9%
1.8x
5.5%
13.7%
18.6%
(0.4x )
(12.2%)
(12.8%)
6.4%
2.5x
7.2%
23.6%
21.9%
4.9x
(2.5%)
7.8%
6.4%
0.7x
10.2%
22.8%
10.6%
0.6x
4.8%
4.1%
19.0%
(0.8x )
3.1%
4.8%
10.3%
1.6x
3.9%
5.9%
7.7%
1.6x
2.9%
5.5%
10.0%
1.5x
Source: Capital IQ
Note: All values based on publicly available data as of 3/31/2015
M&A Transaction Highlights ($ in millions)
Closed
Announced
Announced
Mar-15
Feb-15
Feb-15
Feb-15
Jan-15
Jan-15
Jan-15
Jan-15
Jan-15
Jan-15
Jan-15
Jan-15
Jan-15
Target
Johnson Controls' Global WorkPlace Solutions Business
Thermo Fluids, Inc.
YESCO Electronics LLC
LCS Correction Serv ices, Inc.
Brantley Security Serv ices & Valor Security Serv ices
CGC Ev ents Limited
Ex cel Pest Control, Ltd. & Cabot Pest Control
GSH Group plc, UK, Ireland & European Operations
American Audio Visual Center, Inc.
CellBlox , Inc.
Allied Protectiv e Sy stems, Inc.
CLEAN Linen Serv ices
Long's Tank Wash Inc.
Yellow stone Landscape Group, Inc.
Fiv e Star Painting Inc.
Target Description
Prov ides integrated facilities management solutions for commercial real estate
Prov ides env ironmental and oil recy cling serv ices
Prov ides electronic display s, digital outdoor and indoor display s and v ideo screens
Manages and operates detention and correctional facilities
Prov ides security guards for the retail industry
Prov ides ev ent catering serv ices and ev ent space solutions
Prov ides pest control serv ices for residential, commercial and industrial clients
Prov ides mechanical and electrical engineering serv ices
Prov ides audiov isual and production serv ices for the hospitality sector
Prov ides a managed access solution that limits use of mobile w ireless dev ices
Prov ides alarm and security sy stems, installation and monitoring serv ices
Prov ides commercial laundry serv ices
Prov ides cleaning, testing and repair serv ices for commercial and industrial containers
Prov ides landscape design, construction and management serv ices
Offers interior and ex terior painting serv ices
Source: Capital IQ, Mergermarket, Company Filings
About Lincoln International
Lincoln International specializes in merger and acquisition
advisory services, debt advisory services, private capital
raising and restructuring advice on mid-market transactions.
Lincoln International also provides fairness opinions,
valuations and pension advisory services on a wide range of
transaction sizes. With 16 offices in the Americas, Asia and
Europe, Lincoln International has strong local knowledge and
contacts in the key global economies. The firm provides
clients with senior-level attention, in-depth industry expertise
and integrated resources. By being focused and independent,
Lincoln International serves its clients without conflicts of
interest. More information about Lincoln International can be
obtained at www.lincolninternational.com.
Acquirer
CBRE, Inc.
Clean Harbors, Inc.
Samsung Electronics Co. Ltd.
The GEO Group
Univ ersal Protection Serv ice, Inc.
SMG Europe Holdings Limited
Terminix International Company
ISS UK Limited
PSAV Presentation Serv ices
Securus Technologies, Inc.
Central Security Group, Inc.
MML Capital Partners
QualaWash Holdings, LLC
CIVC Partners, L.P.
The Dw y er Group, Inc.
Enterprise
Value
$1,475
$85
$350
$80
-
EV / LTM
Rev. EBITDA
0.7x
-
Officer Contacts
NORTH AMERICA
Lucien G. Webb
Managing Director
[email protected]
+1-312-506-2747
Michael J. Iannelli
Managing Director
[email protected]
+1-312-580-6281
Lincoln International’s Global Footprint
AMSTERDAM
BEIJING
CHICAGO
FRANKFURT
LONDON
LOS ANGELES
MADRID
MILAN
MOSCOW
MUMBAI
NEW YORK
PARIS
SÃO PAULO
TOKYO
VIENNA
ZURICH
Contributor:
Matt Menker, Analyst
[email protected]
2
Lincoln International S t o c k I n d e x
Facilities Services
© 2015 Lincoln International LLC
Q1 2015