State of M&A in Kansas City 2019

State of M&A in Kansas City 2019

2019

The St a t e o f M&A i n Kansas C i t y CC CAPI TAL ADV ISORS

{~CC Capital Advisors

Parkville,MO

KansasCity,MO

hasbeenacquiredby

OverlandPark,KS

hasbeenacquiredby

hasbeenacquiredby

Pittsburgh,PA

Tulsa,OK

Chicago, IL

Theundersigned servedas exclusive financialadvisor toM.A.EnergyResources.

Theundersigned servedas financial advisor toWattMasterControls.

Theundersigned servedas financialadvisor toAndersonMetalsCorporation, Inc.

KansasCity,MO

Brussels,Belgium SauermannGroup

hasbeenacquiredby

Onaway,MI

hasacquired

hasacquired

Vaughan,ON

and its financial sponsors ledby

E Instruments International

Onaway,MI

Langhorne,PA

Theundersigned servedas financial advisor toPIE&G.

Theundersigned servedas financialadvisor toSauermannGroup.

Theundersigned servedas exclusive financial advisor toEnvironmentalEnergy, Inc.

$65,000,000

McLean,VA

OverlandPark,KS

Mansfield,PA

hasbeenacquiredby

Dallas,TX

Denver,CO

and itsbroadband subsidiary

have sold

Tri-Co Connections, LLC

Lombard, IL

haveentered intoa credit facilitywith

via its financial sponsor

Osborne,KS

to

Evanston, IL

Dulles,VA

Dallas,TX

Theundersignedservedasexclusive financialadvisor to J&JDriveAway, Inc.

Theundersigned servedas exclusivefinancialadvisor toTri-CountyREC, Inc .

Theundersigned servedas exclusive financial advisor toStarSeed, Inc.

December 2018

Brighton,CO

KansasCity,MO

Omaha,NE

hasacquired themunicipalelectricutilityof

hasacquired

hasbeenacquiredby

Delavan,WI

Frederick,CO

Greeley,CO

YEAR IN REVIEW CCCA had a successful 2019 advising several high-quality local companies across a number of industries and types of transactions. Deal volume continues to increase, with 15 transactions over the last 24 months, as valuations rise and companies search for growth.

Theundersigned servedas exclusive financial advisor toUnitedPower.

Theundersigned servedas exclusive financial advisor to ImperialBeef, LLC

Theundersigned servedas exclusive financialadvisor toBERKSGroup.

Lee’s Summit,MO

OverlandPark,KS

hasbeenacquiredby

Belmont,NC

has sold theassetsof itspublic safety network consultingbusiness to

has sold twoplastic injectionmolding plants to

OverlandPark,KS

and its financial sponsor

PortMatilda,PA

Indianapolis, IN

Grinnell, IA

Theundersigned servedas exclusive financial advisor toBlack&Veatch

Theundersigned servedas exclusive financialadvisor toDriveawayUSA.

Theundersigned servedas exclusive financial advisor toWilbertPlasticsServices.

Th e e nd o f a memorable decade MUCH LIKE THE KANSAS CITY CHIEFS, M&A activity ended this memorable decade on a high note as we witnessed record levels of transactions nationally and in our region. On a global scale, cross-border activity was down amidst several geopolitical factors, notably involving relations with China as well as concerns over Brexit and increased tensions in the Middle East. Domestically, strong M&A performance was evident as the stock markets reached new highs, private equity firms continued to raise unprecedented funds, unemployment reached record lows, the Federal Reserve eased rates, and companies capitalized on the desire to grow through strategic consolidation. We anticipate these favorable economic conditions will continue to provide momentum for the start of the new decade.

The 2019 CC Capital Advisors State of M&A Report tracked 207 transactions involving Kansas City-area companies. This is the highest number of transactions reported since we began publishing this report in 2004, and an increase of 6.2% year-over-year. The area once again saw the Technology sector lead the way, with strong activity in Manufacturing and Professional Services as well. Private Equity was active in our region with a reported 71 total tractions, or 34% of the total. and increasing Private Equity activity. Even though global M&A transaction volume was down in comparison to 2018, global M&A transaction value was in line with last year, primarily driven by the increase in megadeals in the US. North America transaction values were up 10% versus 2018, while activity in Europe, the Middle East and Africa was down 13% and Asia down 6%. M&A volume continues to progress behind the tailwinds of record liquidity

Deal volume in the US was particularly active, with notable deals including United Technologies Corporation acquiring Raytheon Company in a merger of equals transaction for $89 billion, Bristol-Myers Squibb acquiring Celgene Corp. for $74 billion, and AbbVie Inc. purchasing Allergan PLC for $63 billion. A few noteworthy 2019 transactions in our region include the sale of Bayer’s Animal Health Unit located in Shawnee, KS to Elanco Animal Health for $7.6 billion, the combined sale of Tallgrass Energy LP and GP to The Blackstone Group for a total equity value of $6.8 billion, the sale of the prepaid wireless business of Sprint to DISH Network Corporation for $1.4 billion, and the additional sale of Jefferies Financial Group’s 31% equity stake in National Beef Packing Company to Marfrig Global Foods S.A. for $970 million (raising Marfrig’s stake in National Beef to 82%).

TO P D E A LS I N 2019* $7.6 billion — Sale of Bayer AG’s animal health business to Elanco Animal Health Inc. $6.8 billion 1 — Sale of Tallgrass Energy GP and Tallgrass Energy LP to The Blackstone Group

$1.4 billion — Sale of Sprint’s prepaid wireless business to DISH Network $970 million — Sale of 31% interest in National Beef to Marfrig Global Foods

* This list of top deals is compiled from the limited number of transactions for which terms were disclosed. Many deals do not disclose pricing and thus are not included on this list. 1) Total equity value of the combined sale of Tallgrass Energy LP and GP

DEALS BY INDUSTRY

Deals 33

Deals 32

Deals 32

Deals 30

Deals 28

Deals 14

Deals 16

Deals 11

Deals 6

Deals 5

Architecture/ Engineering Construction

Consumer Products & Services

Energy/Utility & Infrastructure

Financial Institutions

Food/Agriculture & Animal Health

Healthcare/ Life Sciences

Manufacturing & Distribution

Professional Services/ Advisory

Technology/Media and Telecom

Transportation & Logistics

TOP DEAL MAKERS

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