Industrial Technology 2023 ANNUAL REPORT
INDUSTRIAL TECH SUMMARY & OUTLOOK
HARBOR VIEW’S INDUSTRIAL TECH ANNUAL REPORT
M&A TRENDS
Harbor View Advisors conducted our second annual survey, engaging active lower-middle market private equity funds across the United States (see page 2). The survey allowed us to gather insights into prevailing buyer sentiments about market activity expectations in 2024.
Following a relatively subdued dealmaking climate in 2023, lower -middle market investors are now gearing up to deploy capital more assertively. There seems to be a shift from the add -on acquisition trend of 2023 to what appears to be the emergence of the “year of the platform” in 2024. This shift of focus is expected to result in a notable increase of private equity-backed assets entering the market, contributing to a rise in deal volume compared to the previous year.
Despite the renewed vigor in the market, certain concerns from 2023 persist, such as the quality of available assets and discrepancies in valuation expectations between buyers and sellers. Premium multiples continue to be associated with A+ assets, while companies compelled to enter the market due to factors beyond their control may experience this valuation gap. In response to the scarcity of highquality assets, private equity firms are increasingly enlisting the support of buyside advisors to survey markets on their behalf, allowing them to focus on enhancing the operational aspects of their portfolio companies a trend that Harbor View has observed firsthand.
Although these factors might suggest the possibility of another measured year, the landscape of dealmaking is expected to become clearer as the Federal Reserve develops a defined plan for interest rate guidance. This key development will likely play a pivotal role in shaping the trajectory of market activities in the foreseeable future.
INDUSTRY COMMENTARY
“We're encouraged that the improvement in trends we experienced in the second half of fiscal year 2023 have carried into fiscal year '24. This is the first time since fiscal year 2021 that our business has been firing on all cylinders.”
– Steve Brass, WD-40; President and CEO
“Turning now to capital allocation […] First, we look at investing in the business and both organic investment and opportunistic M&A […] we remain highly selective, but are also open to investing in capabilities and acquiring the right assets to further our strategy.”
– Deidra Merriwether,W.W.
Grainger; CFO & SVP“We ended our fiscal year on a strong note as the Powell team delivered another great quarter to close out one of the best years in the company's history. The sharp recovery of our industrial end markets led to $1.4 billion of orders in fiscal 2024, by far the most we have ever recorded in a 12-month period and twice that of the prior year”
– Brett Cope, Powell Industries; President and CEO
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2024 M&A OUTLOOK – PRIVATE EQUITY SURVEY RESULTS
How do you expect your strategy might change in 2024?
Due to a combination of healthy sponsor fundraising in prior years and lower deal volume in 2022 and 2023, private equity firms are employing strategies to aggressively deploy capital in 2024.
“Last year we stayed proactive on the add-on front and picked our spots on platforms. This year I’d expect we’re more aggressive with overall capital deployment and target a higher quantity of platform investments.”
In 2024, what are your expectations for debt levels as a part of transaction structure compared to 2023?
While interest rate uncertainty still exists, buyers are not planning to revolutionize deal structure. As interest rates begin to decrease and the Fed provides more guidance on the pace it intends to lower rates, buyers may change their deal structure strategy.
“[Deals will require] more financial engineering as M&A remains somewhat slow.”
What do you foresee being the largest challenge to closing deals in 2024?
Like 2023, buyers are concerned with the quality of assets coming to market. A+ assets are still earning healthy valuation multiples, but interestingly, with buyers eagerly looking to deploy capital, processes could still be competitive, even when involving lower-grade assets.
“Pent-up demand should cause a flurry of sellers to enter the market which is positive for the buyer landscape. The challenge will lie in evaluating the quality of available assets.”
In 2024, what is your expectation for valuation compared to 2023?
Since the unsustainable valuation hikes in 2021, valuations have returned to “normal”. While there is still a gap in expectations, it is not as extreme as it once was, implying that there is a generally increased likelihood that deals will get across the finish line in 2024.
“I think seller valuation expectations are still loftier than acquirers and that will be a barrier to deal flow.”
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HARBOR VIEW’S INDUSTRIAL TECH ANNUAL REPORT
Note: Quotes are sourced from private equity survey responses
51% 22% 11% 5% 5% 4% 2% More aggressive deployment of capital Greater focus on platforms No change Greater focus on add-ons Shift in transaction size Other Shift in industry focus 63% 14% 12% 12% Quality of companies brought to market Quantity of companies brought to market Valuation expectations Other 74% 23% 2% About the same 1-2 turns higher 1-2 turns lower 47% 30% 23% About the same Up slightly Down slightly
MIDDLE MARKET HIGHLIGHTS
HARBOR
INDUSTRIAL TECH ANNUAL REPORT
Deals with Non-Backed Companies as Targets as a Share of all Private Equity Buyouts by Quarter
Source: PitchBookNon-backed companies, those without institutional funding – including founder and family-owned businesses, historically comprised a majority of US private equity investment. In 2021 the share of these deals fell to ~46 %, but there has since been a resurgence, reaching ~56% in 2023 . Private equity investors now prioritize operational improvements over financial leverage – more attainable when investing in companies that are receiving institutional capital for the first time Private equity buyers are sitting on significant dry powder (~$956 billion) and are inclined to continue pursuing non-backed targets. Founder-owned businesses are attractive, offering a fresh starting point and lower purchase price multiples.
US Private Equity Deal Count by Type by Quarter
Add-on acquisitions have become a prominent trend in the private equity sector, maintaining a strong presence in 2023. The continued trajectory of these acquisitions reflects a strategic response by private equity buyers to the market dynamics experienced last year. Add-ons play a vital role in sustaining private equity sector momentum during periods of tight credit and market turbulence, allowing sponsors to deploy capital through smaller-scale deals. This financing is facilitated by leveraging existing credit facilities of larger platform companies. Notably, the private equity sector has experienced a shift towards buy-and-build strategies through these smaller addon deals This approach enables private equity platforms to progressively expand and enhance their market positions, allowing them to be adaptable through challenging market conditions.
3
VIEW’S
45.5% 56.1% 40% 45% 50% 55% 60% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 Privately held (no backing) Linear (Privately held (no backing))
26% 28% 27% 25% 24% 23% 24% 26% 23% 22% 21% 25% 19% 19% 20% 19% 18% 20% 20% 19% 50% 56% 58% 59% 54% 55% 58% 59% 56% 60% 62% 61% 60% 64% 63% 63% 60% 59% 62% 57% 24% 16% 15% 17% 23% 22% 18% 16% 21% 18% 17% 14% 21% 17% 17% 18% 22% 21% 18% 25% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Buyout/LBO Add-on PE growth/Expansion
Source: PitchBook
KEY ECONOMIC INDICATORS
INDUSTRIAL PRODUCTION INDEX Monthly % Change UNEMPLOYMENT RATE TOTAL CONSTRUCTION SPENDING (NON-RESIDENTIAL) CONSUMER PRICE INDEX FED FUNDS EFFECTIVE RATE TOTAL CONSTRUCTION SPENDING (RESIDENTIAL) Source: U.S. Bureau of Labor Statistics Source: U.S. Census Bureau Source: U.S. Census Bureau Source: U.S. Bureau of Labor Statistics Source: Board of Governors of the Federal Reserve System Source: Board of Governors of the Federal Reserve System HARBOR VIEW’S INDUSTRIAL TECH ANNUAL REPORT 4 75 80 85 90 95 100 105 110 Total Industrial Production Index Manufacturing Production Index 0.0% 4.0% 8.0% 12.0% 16.0% (0.8%) (0.4%) 0.0% 0.4% 0.8% 1.2% 1.6% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000
INDUSTRIAL TECH PUBLIC TRADING STATISTICS
• Sensors & Controls
• Data Capture & Analysis
• Specialty Equipment & Devices
• Technology Enabled Solutions
• Design & Engineering
• Facility & Site Services
• Testing, Inspection, & Certification
• Environmental Solutions
• Manufacturing
• Value-Added Distribution
• Logistics
• Installation & Construction
75 100 125 1/23 2/23 3/23 4/23 5/23 6/23 7/23 8/23 9/23 10/23 11/23 12/23 S&P 500 Automated Solutions Industrial and Related Services Traditional Industrials
INDUSTRIAL
HARBOR VIEW’S
TECH SUB-SECTORS
AUTOMATED SOLUTIONS TRADITIONAL INDUSTRIAL
INDUSTRIAL & RELATED SERVICES
ONE-YEAR
COMPARATIVE
PitchBook, Data as of 12/31/23 Indices comprised of ~30 relevant companies for each Industrial Tech Sub-Sector and based on equal weighted prices. Indices are tracked relative to the starting price to compare performance.
PitchBook, Data as of 12/31/23 5
INDUSTRIAL TECH ANNUAL REPORT 13.1x 16.4x 11.4x 10.5x 12.1x 11.6x 0.0x 5.0x 10.0x 15.0x 20.0x Automated Solutions Industrial & Related Services Traditional Industrials 12/31/2022 12/31/2023
HISTORICAL INDEX PERFORMANCE
MEDIAN EBITDA MULTIPLES Source:
Source:
HARBOR VIEW’S
INDUSTRIAL TECH SELECT PUBLIC TRADING STATISTICS
HARBOR VIEW’S INDUSTRIAL TECH ANNUAL REPORT
AUTOMATED SOLUTIONS
Note: Privately held companies typically trade at a discount to public companies; companies denoted with “*” have cash balances that outweigh the sum of their market capitalization and total debt
Source: PitchBook, Data as of 12/31/23
6 Company Name Enterprise Value ($B) Total Revenue ($B) EBITDA ($B) Revenue Multiple EBITDA Multiple ABB Group 85.9 31.8 6.0 2.7x 14.2x Aeva* (0.0) 0.0 (0.1) (9.8x) 0.2x AgEagle Aerial Systems 0.0 0.0 (0.0) 1.3x (1.5x) Allied Motion 0.7 0.6 0.1 1.3x 9.3x American Software 0.3 0.1 0.0 2.7x 17.7x AMETEK 39.4 6.5 2.0 6.1x 19.4x Badger Meter 4.4 0.7 0.1 6.5x 31.1x Cognex 6.7 0.9 0.3 7.7x 26.7x Columbus McKinnon 1.6 1.0 0.2 1.6x 10.2x Commercial Vehicle Group 0.4 1.0 0.1 0.3x 5.0x Emerson Electric 62.0 15.2 4.2 4.1x 14.7x HollySys 1.0 0.8 0.1 1.3x 7.8x iRobot 1.1 0.9 (0.3) 1.2x (4.4x) Knightscope 0.1 0.0 (0.0) 6.8x (3.0x) L3 Harris Technologies 53.8 18.7 3.6 2.9x 15.1x Nauticus Robotics 0.1 0.0 (0.0) 6.8x (2.6x) Oceaneering International 2.6 2.3 0.3 1.1x 9.2x Onsemi 36.8 8.3 3.4 4.4x 10.8x Ouster 0.2 0.1 (0.1) 2.6x (1.9x) Parker Hannifin 70.9 19.7 4.7 3.6x 15.1x PowerFleet 0.2 0.1 0.0 1.5x 36.2x Red Cat Holdings 0.1 0.0 (0.0) 5.7x (3.3x) Rockwell Automation 38.0 9.1 2.0 4.2x 19.5x Roper 64.8 6.0 2.6 10.8x 24.8x Sarcos Technology and Robotics* (0.0) 0.0 (0.1) (2.1x) 0.3x Sensata Technologies 8.6 4.1 0.9 2.1x 9.2x Symbotic 3.7 1.2 0.0 3.2x 213.2x TuSimple* (0.5) 0.0 (0.3) (242.9x) 1.8x UiPath 12.3 1.2 0.2 10.2x 55.2x Zebra Technologies 16.4 5.1 1.0 3.2x 16.3x Median: 2.8x 10.5x
INDUSTRIAL TECH SELECT PUBLIC TRADING STATISTICS HARBOR
INDUSTRIAL & RELATED SERVICES
Note: Privately held companies typically trade at a discount to public companies
Source: PitchBook, Data as of 12/31/23
7
Company Name Enterprise Value ($B) Total Revenue ($B) EBITDA ($B) Revenue Multiple EBITDA Multiple AECOM 14.2 14.4 1.0 1.0x 14.8x APi Group 11.3 6.9 0.8 1.6x 15.0x Aramark 14.0 18.9 1.6 0.7x 8.7x Brightview Holdings 2.2 2.8 0.3 0.8x 7.4x C.H. Robinson 11.9 18.4 0.7 0.6x 16.4x Cintas 64.2 7.0 2.4 9.1x 26.9x Clean Harbors 11.5 5.3 1.0 2.2x 11.7x Comfort Systems USA 7.4 5.0 0.5 1.5x 16.3x CSX 86.0 14.0 7.3 6.1x 11.8x Dolby Laboratories 7.4 1.3 0.5 5.7x 14.8x Dycom Industries 4.4 4.1 0.5 1.1x 8.9x Emcor Group 10.0 12.1 0.9 0.8x 11.2x FedEx 94.7 87.9 11.2 1.1x 8.5x Forward Air 1.9 1.7 0.2 1.1x 8.4x J.B. Hunt Transport 22.0 13.2 1.9 1.7x 11.7x Jacobs Engineering Group 19.7 16.4 1.4 1.2x 13.7x Keysight Technologies 27.4 5.5 1.7 5.0x 16.4x Knight-Swift Transportation 12.3 7.0 1.2 1.8x 10.3x Landstar System 6.6 5.7 0.5 1.2x 14.5x MYR Group 2.5 3.5 0.2 0.7x 12.9x Primoris Services 3.0 5.5 0.4 0.5x 8.1x Ryder System 12.6 11.8 2.7 1.1x 4.7x Schneider National 4.7 5.7 0.8 0.8x 6.2x Teradyne 16.0 1.6 0.6 10.3x 27.7x Tetra Tech 9.8 4.5 0.5 2.2x 20.4x TrueBlue 0.5 2.0 0.0 0.3x 12.5x UPS 152.1 93.1 16.0 1.6x 9.5x Waste Management 87.4 20.1 5.7 4.3x 15.4x WillScot 12.2 2.3 1.0 5.2x 11.8x XPO 13.0 7.6 1.0 1.7x 13.1x Median: 1.4x 12.1x
INDUSTRIAL TECH
VIEW’S
ANNUAL REPORT
INDUSTRIAL TECH SELECT PUBLIC TRADING STATISTICS
HARBOR VIEW’S INDUSTRIAL TECH ANNUAL REPORT
TRADITIONAL INDUSTRIALS
Note: Privately held companies typically trade at a discount to public companies
Source: PitchBook, Data as of 12/31/23
Company Name Enterprise Value ($B) Total Revenue ($B) EBITDA ($B) Revenue Multiple EBITDA Multiple Allegheny Technologies 7.7 4.1 0.6 1.9x 13.4x Applied Industrial Technologies 7.0 4.4 0.5 1.6x 12.7x Axon Enterprise 18.9 1.5 0.3 12.9x 62.1x Blue Bird 0.9 1.1 0.1 0.8x 10.5x Boeing 196.6 75.8 2.5 2.6x 78.8x BorgWarner 11.6 17.2 2.5 0.7x 4.6x Builders Firstsource 24.4 17.3 2.9 1.4x 8.4x Carrier 53.9 22.1 3.0 2.4x 17.7x Caterpillar 181.1 66.6 15.1 2.7x 12.0x Cummins 40.1 33.3 4.9 1.2x 8.2x Curtiss-Wright 9.5 2.8 0.6 3.4x 15.0x Diodes 3.5 1.8 0.5 1.9x 6.9x Dover 24.4 8.5 1.9 2.9x 12.8x Fastenal 37.3 7.3 1.7 5.1x 22.0x Fluor 5.8 15.4 0.3 0.4x 16.8x Gates 5.9 3.6 0.7 1.6x 8.1x Genuine Parts 23.0 23.0 2.1 1.0x 10.8x Hillenbrand 5.2 2.8 0.5 1.9x 10.8x Howmet Aerospace 25.8 6.4 1.5 4.0x 17.2x Hyster-Yale Materials Handling 1.5 4.1 0.3 0.4x 6.0x Illinois Tool Works 85.9 16.1 4.5 5.3x 19.0x Jabil 18.0 34.7 2.5 0.5x 7.1x John Deere 167.5 60.2 17.5 2.8x 9.6x Lockheed Martin 126.3 67.7 10.7 1.9x 11.8x Northrop Grumman 84.0 38.7 7.5 2.2x 11.2x Nucor 43.8 35.7 8.1 1.2x 5.4x Resideo Technologies 3.8 6.3 0.6 0.6x 6.5x Stoneridge 0.7 1.0 0.0 0.7x 47.0x W.W. Grainger 43.6 16.3 2.8 2.7x 15.4x Worthington Industries 3.3 4.7 0.5 0.7x 6.1x Median: 1.6x 11.6x
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INDUSTRIAL TECH SELECT PUBLIC TRADING STATISTICS
HARBOR VIEW’S INDUSTRIAL TECH ANNUAL REPORT
CONGLOMERATES
Note: Privately held companies typically trade at a discount to public companies
Source: PitchBook, Data as of 12/31/23
9
Company Name Enterprise Value ($B) Total Revenue ($B) EBITDA ($B) Revenue Multiple EBITDA Multiple 3M 72.0 32.7 (7.2) 2.2x (10.0x) Berkshire Hathaway 880.2 n/m 112.2 n/m 7.8x Carlisle Companies 17.4 5.8 1.2 3.0x 14.9x Compass Diversified Holdings 4.0 2.3 0.4 1.7x 10.6x Cresud 2.5 0.9 0.5 2.7x 5.0x Danaher 180.7 29.6 9.6 6.1x 18.9x ESCO Technologies 3.1 1.0 0.2 3.3x 17.1x Federal Signal 5.0 1.7 0.3 3.0x 18.0x FTAI Infrastructure 2.0 0.3 0.1 6.4x 26.3x General Electric 140.7 83.8 9.8 1.7x 14.3x Griffon 4.7 2.7 0.5 1.8x 9.4x Honeywell 151.2 36.4 8.9 4.2x 16.9x Hubbell 18.6 5.2 1.1 3.6x 16.4x Icahn Enterprises 11.1 11.7 1.4 0.9x 8.0x Ingersoll Rand 32.9 6.7 1.7 4.9x 19.3x ITT 9.7 3.2 0.7 3.0x 14.3x LSB Industries 1.0 0.7 0.2 1.4x 4.6x Mammoth Energy Services 0.3 0.4 0.1 0.8x 3.6x Matthews International 1.9 1.9 0.2 1.0x 8.6x MDU Resources Group 6.4 7.4 1.0 0.9x 6.6x National Presto Industries 0.5 0.4 0.0 1.4x 12.1x NNBR 0.4 0.5 0.0 0.9x 16.5x Philips Electronics 29.2 19.4 3.0 1.5x 9.6x Raytheon Technologies 154.0 67.1 9.6 2.3x 16.0x RCM Technologies 0.2 0.3 0.0 0.9x 10.2x Seaboard 3.5 9.7 0.7 0.4x 5.2x Tejon Ranch 0.5 0.0 0.0 9.8x 19.0x Valmont Industries 5.9 4.3 0.6 1.4x 9.5x Median: 1.8x 11.4x
35 33 36 37 30 24 51 49 53 49 64 45 49 46 29 29 29 39 32 35 31 37 31 24 34 13 24 50 37 41 35 76 46 44 50 50 45 37 27 22 109 118 107 107 112 45 74 156 104 118 145 234 111 107 118 124 106 95 89 82 0 50 100 150 200 250 300 350 400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Automated Solutions Industrial & Related Services Traditional Industrials DEAL COUNT BY SUB-SECTOR INDUSTRIAL TECH M&A SUMMARY Note: Deal count represents transactions completed in the U.S. & Canada; historical values retrospectively adjusted per source Source: PitchBook HARBOR VIEW’S INDUSTRIAL TECH ANNUAL REPORT RECENT NOTABLE TRANSACTIONS $257M DEC 2023 $3.6B DEC 2023 $2.6B NOV 2023 $89.0B NOV 2023 $1.3B NOV 2023 $520M OCT 2023 $863M OCT 2023 $3.4B OCT 2023 $1.2B OCT 2023 $200M OCT 2023 10
INDUSTRIAL TECH SELECT M&A TRANSACTIONS
HARBOR VIEW’S INDUSTRIAL TECH ANNUAL REPORT
INDUSTRIAL & RELATED SERVICES
Deal Date Target Company Acquirer / Investor Enterprise Value ($M) EV / LTM Revenue EV / LTM EBITDA 23-Dec LeddarTech Prospector Capital $14.6 n/m n/m 23-Dec Airship AI Holdings BYTE Acquisition n/m n/m n/m 23-Dec Comply365 Insight Partners n/m n/m n/m 23-Dec AP4 Group First Reserve n/m n/m n/m 23-Dec Faction Workhorse Capital n/m n/m n/m 23-Dec Imperva Thales Group $3,600.0 n/m n/m 23-Nov Compass Systems and Sales Main Street Capital $24.7 n/m n/m 23-Nov VMware Broadcom $89,000.0 6.5x 25.6x 23-Nov Chauvet & Sons Court Square n/m n/m n/m 23-Nov Utility Associates Greater Sum Ventures n/m n/m n/m 23-Nov Pangiam BigBear.ai $70.0 n/m n/m 23-Oct Shaw Development Madison Dearborn Partners n/m n/m n/m 23-Oct TruePoint Solutions Seaside Equity Partners n/m n/m n/m 23-Oct Urgent.ly Otonomo Technologies n/m n/m n/m 23-Oct InTune Auto Highland Creek Partners n/m n/m n/m 23-Oct EVPassport Northleaf Capital Partners $200.0 n/m n/m Deal Date Target Company Acquirer / Investor Enterprise Value ($M) EV / LTM Revenue EV / LTM EBITDA 23-Dec International Express Trucking BWT Logistics (Bluejay Capital) n/m n/m n/m 23-Dec Rone Engineering RMA n/m n/m n/m 23-Dec GRP Engineering Verdantas (RTC Partners) n/m n/m n/m 23-Dec Environmental Concepts & Services TAS Environmental (Blue Point) n/m n/m n/m 23-Dec Wize Solutions Argosy Private Equity n/m n/m n/m 23-Dec PumpMan Harrington (Bain Capital) n/m n/m n/m 23-Nov Door Pro America Rotunda Capital Partners n/m n/m n/m 23-Nov Albany Packaging Inno-Pak (Emerald Lake) n/m n/m n/m 23-Nov T2S Solutions Madison Dearborn Partners n/m n/m n/m 23-Nov United Carpet SCI Flooring (Ranier Partners) n/m n/m n/m 23-Nov SisTech Manufacturing LFM Capital n/m n/m n/m 23-Oct Hook-N-haul Dumpsters Viking Fence (Crossplane Capital) n/m n/m n/m 23-Oct XCEL NDT Graycliff Partners n/m n/m n/m 23-Oct Cartridge Technologies CenterGate Capital n/m n/m n/m 23-Oct Apex Service Partners Alpine Investors $3,400.0 n/m n/m 23-Oct Petroleum Equipment Construction Island Pump (Hidden Harbor) n/m n/m n/m 23-Oct Heritage-Crystal Clean J.F. Lehman & Company $1,200.0 n/m n/m Source: PitchBook AUTOMATED SOLUTIONS 11
TRADITIONAL INDUSTRIAL SELECT M&A TRANSACTIONS
HARBOR VIEW’S INDUSTRIAL TECH ANNUAL REPORT
12 Deal Date Target Company Acquirer / Investor Enterprise Value ($M) EV / LTM Revenue EV / LTM EBITDA 23-Dec JWJ Packaging Novvia Group (Kelso & Company) n/m n/m n/m 23-Dec P&F Industries Shoreview Industries n/m n/m n/m 23-Dec Verdant Specialty Solutions Samyang Holdings $257.4 1.1x n/m 23-Dec Infrared Cameras Sportsmap Tech Acquisitions $100.0 n/m n/m 23-Dec High Bar Brands Sentinel Capital Partners n/m n/m n/m 23-Dec Bush Brothers Provision Heartwood Partners n/m n/m n/m 23-Dec JRF Technology Ecopol (SK Capital) n/m n/m n/m 23-Dec Covaris PerkinElmer (New Mountain) n/m n/m n/m 23-Dec Pioneer Industrial Sales Salt Creek Capital n/m n/m n/m 23-Dec Hynes Industries Crossplane Capital n/m n/m n/m 23-Dec Cool River Beverages GlacierPoint (Mill Point) n/m n/m n/m 23-Dec Eurofase Beach Point n/m n/m n/m 23-Nov Veritiv Clayton, Dubilier & Rice $2,600.0 n/m n/m 23-Nov Crestline Plastics Conductive Containers (Great River Capital) n/m n/m n/m 23-Nov ACS WILsquare Capital n/m n/m n/m 23-Nov Potter Global Technologies KKR n/m n/m n/m 23-Nov Dobie Supply RoadSafe Traffic Systems (Trilantic) n/m n/m n/m 23-Nov J&K Ingredients SK Capital n/m n/m n/m 23-Nov Chase Corp KKR $1,300.0 n/m n/m 23-Nov General Converting CORE Industrial Partners n/m n/m n/m 23-Nov Precision Aviation Group GenNx360 Capital Partners $400.0 n/m n/m 23-Oct The Cook & Boardman Group Platinum Equity $863.0 n/m n/m 23-Oct Shaw Development Madison Dearborn Partners n/m n/m n/m 23-Oct Systems Control Hubbell n/m n/m n/m 23-Oct ProFusion Industries Boyne Capital n/m n/m n/m 23-Oct Mid-South Steel Products Island Pump (Hidden Harbor) n/m n/m n/m 23-Oct NuFlux and Nupro Opta Group n/m n/m n/m 23-Oct Hartzel Aviation Arcline Investment Management n/m n/m n/m 23-Oct Crossville, Inc. AHF Products n/m n/m n/m 23-Oct Marine Floats Branford Castle Partners n/m n/m n/m 23-Oct Zytech Building Systems Dick's Lumber (Rona) n/m n/m n/m 23-Oct JohnsByrne GHK Capital n/m n/m n/m 23-Oct Central Moloney Wind Point Partners n/m n/m n/m 23-Oct Woodharbor Molding & Millworks WF Cabinetry Group n/m n/m n/m 23-Oct Decks & Docks CCMP Growth n/m n/m n/m 23-Oct Bristol Precast Fabcon n/m n/m n/m 23-Oct Carlisle Fluid Technologies Lone Star Funds $520.0 n/m n/m Source: PitchBook
TRADITIONAL INDUSTRIALS
$0.8B $2.2B $1.0B $2.7B $2.0B $0.7B $6.4B $2.6B $4.6B $3.8B $4.7B $6.0B $3.2B $4.3B $2.6B $1.6B $1.7B $2.9B $2.8B $2.1B Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 INDUSTRIAL TECH FINANCING TRANSACTIONS RECENT NOTABLE FINANCINGS MODEST FINANCING YEAR HARBOR VIEW’S INDUSTRIAL TECH ANNUAL REPORT 13
Historical values retrospectively adjusted per source Source: PitchBook $20M DEC 2023 $17M DEC 2023 $30M NOV 2023 $15M NOV 2023 $14M OCT 2023 $86M DEC 2023 $173M DEC 2023 $230M NOV 2023 $200M NOV 2023 $112M OCT 2023
Note:
INDUSTRIAL TECH SELECT VENTURE CAPITAL ACTIVITY
HARBOR VIEW’S INDUSTRIAL TECH ANNUAL REPORT
LATE-STAGE VENTURE CAPITAL
EARLY-STAGE VENTURE CAPITAL
14 Deal Date Company Name Broad Category Deal Size ($M) Pre-Money Valuation ($M) Lead/ Sole Investors Dec-23 MatX Traditional Industrials $24.9 $60.0 SV Angel Dec-23 UniUni Automated Solutions $20.2 n/m Alibaba Group Dec-23 Atomic Industries Traditional Industrials $16.5 $25.0 8090 Industries Dec-23 The Light Phone Traditional Industrials $12.5 n/m Seed-Resolute Dec-23 Foundation LLM Automated Solutions $7.5 $13.5 UNION Labs VC Nov-23 Upway Traditional Industrials $30.0 n/m Korelya Capital Nov-23 Nubis Communications Traditional Industrials $15.0 $75.0 Ericsson Ventures Nov-23 Promise Robotics Automated Solutions $15.2 n/m Alate Partners Oct-23 Opal Traditional Industrials $17.0 $50.0 Browder Capital Oct-23 SailPlan Automated Solutions $12.5 n/m Aramco Ventures Oct-23 Aifleet Industrial and Related Services $14.0 $81.0 Gerdau Next Ventures Oct-23 Sortium Automated Solutions $12.0 $32.0 Undisclosed Oct-23 Castelion Traditional Industrials $14.1 $40.0 BlueYard Capital Deal Date Company Name Broad Category Deal Size ($M) Pre-Money Valuation ($M) Lead/ Sole Investors Dec-23 ABL Traditional Industrials $60.0 $1,190.0 U.S. Space Force Dec-23 Niron Magnetics Traditional Industrials $86.4 n/m Escavel Capital Dec-23 Forge Nano Traditional Industrials $50.0 n/m GM Ventures Dec-23 MetOx Technologies Traditional Industrials $43.0 n/m DNS Capital Dec-23 Gecko Robotics Automated Solutions $173.0 $460.0 11k Ventures Dec-23 DUST Identity Automated Solutions $40.0 $150.0 8VC Nov-23 Ursa Major Traditional Industrials $138.0 $612.0 America Makes Nov-23 Divergent Automated Solutions $230.0 $1,250.0 Advection Growth Capital Nov-23 Photonic Automated Solutions $100.0 n/m Amadeus Capital Partners Nov-23 Enable Automated Solutions $119.1 $1,000.0 Undisclosed Nov-23 Infinitum Automated Solutions $200.0 $350.0 Galvanize Climate Solutions Oct-23 Seurat Technologies Industrial and Related Services $111.7 $229.9 Cubit Capital Oct-23 Fibracast Traditional Industrials $44.6 n/m Cycle Capital Source: PitchBook
INDUSTRIAL TECH EXPERTISE
HARBOR VIEW’S INDUSTRIAL TECH ANNUAL REPORT
BROAD & DEEP INDUSTRIAL TECH INDUSTRY EXPERTISE
DATA CAPTURE & ANALYSIS
TECHNOLOGY ENABLED SOLUTIONS
FACILITY & SITE SERVICES
SENSORS & CONTROLS
SPECIALTY EQUIPMENT & DEVICES
Industrial Recycling
Provider
Acquired by
STRATEGIC BUYER
White Glove Transportation & Logistics FINANCIAL BUYER
Acquired by
Metal Processor
Acquired by
FINANCIAL BUYER
Property Management
Provider
STRATEGIC ADVISORY SERVICES
DESIGN & ENGINEERING
TESTING, INSPECTION, & CERTIFICATION
ENVIRONMENTAL SOLUTIONS MANUFACTURING
VALUE-ADDED DISTRIBUTION LOGISTICS
INSTALLATION & CONSTRUCTION
Aerospace Component Testing
Provider
Acquired by
STRATEGIC BUYER
Telecommunications Infrastructure Provider
Acquired by
FINANCIAL BUYER
Fluid Dynamics Designer & Engineer
Acquired by
FINANCIAL BUYER
Light Industrial Staffing Provider
Acquired by
FINANCIAL BUYER
Solar Lighting Designer & Integrator
Acquired by
STRATEGIC BUYER
Note: Unless displayed with the Harbor View logo, the transactions documented were executed in previous roles
Wireless Tower Owner & Operator
Acquired by
STRATEGIC BUYER
CONNECT WITH HARBOR VIEW ADVISORS
Call Nate: 978 835 0258
Nate Shepherd
MANAGING DIRECTOR
Building on his more than 25 years of Investment Banking and Private Equity experience, Nate leads Harbor View’s Industrial Tech practice. In his role, Nate advises clients in the Automated Solutions, Industrial & Related Services, and Traditional Industrial sectors helping business owners navigate the company sale, acquisition, and capital raise process.
Suzi Airheart Associate
Email Nate: nshepherd@hvadvisors.com
Metal Fabricator
Acquired by
FINANCIAL BUYER
Data Capture & Analysis Provider
Acquired by
STRATEGIC BUYER
Shaan Patel Analyst
Visit Us: harborviewadvisors.com
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