M&A Update | Automotive Supplier H2-2017

The table below shows EV/EBITDA multiples for all segments since the start of 2013. All automotive supplier segments continue to trade significantly below the value of the S&P 500 EV/EBITDA multiple. Multiples in all segments, with the exception of body and structural, have followed the S&P 500 index in H2-2017.

Table 7: Average historical trading multiples (EV/EBITDA)

Automobile Suppliers

Interior

Body & Structural

S&P 500 Index

PowerTrain

Components

Electronics

14.0x

12.5x

12.0x

10.6x

10.0x

9.1x

8.1x 7.5x

8.0x

6.9x

6.0x

5.6x

4.0x

Mar June Sept Dec Mar June Sept Dec Mar June Sep Dec Mar

Jun Sept Dec Mar

Jun Sept Dec

2013

2014

2015

2016

2017

Note: Multiples are based on average enterprise values for each quarterly period.

Select H2-2017 transactions Table 8 highlights selected North American automotive supplier industry transactions with numerical data that occurred during H2-2017. The industry has seen relatively consistent acquisition activity over the past two years. Publicly available valuation details are limited.

Table 8: Selected closed transactions (July 1 – December 31, 2017)

Transaction Value

EV / Revenue

EV / EBITDA

Closed Date Target Company

Buyers/Investors Genuine Parts Co.

11/2/2017

Alliance Automotive Group SAS

1,701

-

- - - - - -

10/31/2017 FTE Automotive Gmbh

Valeo SA

819 290 360 145 132 280 533 290

1.6x

Delhi Automotive PLC Wabash National Corp. Wabco Holdings Inc.

-

10/24/2017 Nutonomy

9/27/2017 9/19/2017 7/17/2017 7/3/2017

Supreme Industries Inc. R.H. Sheppard Co., Inc.

1.1x 1.1x 3.2x 2.7x 1.9x 1.6x

13.2x

Sevcon, Inc

BorgWarner Inc

The Timken Company

Groeneveld Groep B.V.

Mean

$ $

13.2x 13.2x

Median

Source: Capital IQ (as of March 9, 2018)

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