Illustrative LBO Analysis

Completed LBO Model

x Transaction Assumptions
($ in millions, except where otherwise specified)

Sources & Uses Transaction Assumptions

Sources $ % LTM Adj. EBITDA

Cash On-Hand -- -- Illustrative Transaction Multiple
Revolver Draw -- -- Transaction Value
Term Loan B 275 32.9% ( - ) Debt
Senior Notes 225 26.9% ( + ) Cash
Subordinated Notes 100 12.0% Equity Value
Management Rollover 81 9.7%
Sponsor Equity 155 18.5% Memo: Management Rollover
Total Sources $836 100.0% Management Rollover - %
Management Rollover - $
Uses $ %
Purchase Equity $810 96.9%
Refinance Existing Debt -- -- Purchase Accounting
Refinancing Expenses -- --
Fund Cash Balance -- -- Total Equity Value
Transaction Expenses 15 1.8% ( - ) Total Assets (excl. goodwill)
Financing Fees 11 1.3% ( + ) Total Liabilities
Total Uses $836 100.0% PF Goodwill
CHECK: 1

Other Assumptions CHECKS

Minimum Cash Balance $5 Balance Sheet:

Minimum Debt Increment 25 Sources & Uses
Transaction Expenses 15
Cash Interest Rate 0.250%
Illustrative Tax Rate 35.0%

CIRC On

x PF Income Statement
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2015A 2016A 2017E 2018E 2019E
Revenue $327 $342 $359 $381 $407
% Growth 4.6% 5.0% 6.0% 7.0%

Adj. EBITDA $85 $90 $95 $100 $107

% Margin 26.0% 26.3% 26.3% 26.3% 26.3%
% Growth 5.9% 5.0% 6.0% 7.0%
 ( - ) D&A ($15) ($17) ($18) ($19) ($20)
Adj. EBIT $70 $73 $77 $81 $87
% Margin 21.4% 21.3% 21.3% 21.3% 21.3%
% Growth 4.3% 5.0% 6.0% 7.0%

( - ) Net Interest Expense On ($35) ($36) ($36)

Adj. EBT $41 $45 $51

( - ) Illustrative Tax Expense ($14) ($16) ($18)

Adj. Net Income $27 $29 $33
% Margin -- -- 7.5% 7.7% 8.1%
% Growth -- -- 9.0% 12.6%

Memo:
Revenue Growth (%) 4.6% 5.0% 6.0% 7.0%
COGS (% of Sales) 40.0% 40.0% 40.0% 40.0% 40.0%
EBITDA Margin (%) 26.0% 26.3% 26.3% 26.3% 26.3%
D&A (% of Sales) 4.6% 5.0% 5.0% 5.0% 5.0%
CapEx (% of Sales) 5.2% 5.0% 5.0% 5.0% 5.0%

x PF Working Capital
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2015A 2016A 2017E 2018E 2019E

Memo:
Sales $327 $342 $359 $381 $407
COGS 131 137 144 152 163
Days
Key Assumptions 360
Days Sales Outstanding (DSO) 94.7 94.7 94.7 94.7
Days Inventory Held (DIH) 118.4 118.4 118.4 118.4
Days Payable Outstanding (DPO) 115.8 115.8 115.8 115.8
Cash Conversion Cycle 97.4 97.4 97.4 97.4

Other Current Assets (% of Sales) 2.0% 2.0% 2.0% 2.0%

Accrued Expenses (% of Sales) 10.8% 10.8% 10.8% 10.8%
Other Current Liabilities (% of Sales) 0.9% 0.9% 0.9% 0.9%

Calculated NWC
Net Accounts Receivable $90 $95 $100 $107
Inventory 45 47 50 54
Other Current Assets 7 7 8 8
Current Assets $142 $149 $158 $169

Accounts Payable $44 $46 $49 $52

Accrued Expenses 37 39 41 44
Other Current Liablities 3 3 3 4
Current Liabilities $84 $88 $93 $100
 Net Working Capital (NWC) $58 $61 $65 $69
(Increase) Decrease in NWC ($3) ($4) ($5)

x PF Balance Sheet
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2016A PF 2016 2017E 2018E 2019E
Assets
Cash $5 $5 $5 $5 $5
Net Accounts Receivable 90 90 95 100 107
Inventory 45 45 47 50 54
Other Current Assets 7 7 7 8 8
Total Current Assets $147 $147 $154 $163 $174
Net PP&E 78 78 78 78 78
Goodwill 20 670 670 670 670
Other Noncurrent Assets 6 17 15 14 12
Total Assets $251 $912 $918 $925 $935

Liabilities & Shareholders' Equity

Accounts Payable $44 $44 $46 $49 $52
Accrued Expenses 37 37 39 41 44
Other Current Liabilities 3 3 3 3 4
Total Current Liabilities $84 $84 $88 $93 $100

Total Debt -- $600 $575 $548 $518

Other Noncurrent Liabilities 7 7 7 7 7
Total Liabilities $91 $691 $670 $648 $625

Shareholders' Equity $160 $221 $248 $277 $310

Total Liabilities & Shareholders' Equity $251 $912 $918 $925 $935
CHECK: 1 1 1 1 1

x PF Statement of Cash Flows

($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2015A 2016A 2017E 2018E 2019E
Cash from Operating Activities
Net Income $27 $29 $33
( + ) D&A 18 19 20
( + ) Noncash Interest Expense 10 11 12
( + / - ) Change in NWC (3) (4) (5)
Cash from Operating Activities $52 $56 $61
( - ) CapEx (17) (17) (18) (19) (20)
Levered Free Cash Flow $34 $37 $40

Beginning Cash Balance $5 $5 $5

( + ) Levered Free Cash Flow 34 37 40
( - ) Minimum Cash Balance (5) (5) (5)
Total Cash Available for Debt Repayment $34 $37 $40
 ( - ) Mandatory Amortization ($3) ($3) ($3)
( - ) Optional Prepayment (31) (34) (38)

( + ) Minimum Cash Balance $5 $5 $5

Ending Cash Balance $5 $5 $5 $5

Memo:
Average Cash Balance $5 $5 $5
Cash Interest Income 0.250% 0 0 0

x PF Debt Schedule
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, PF 2016 2017E 2018E 2019E

Ending Debt Balance

Revolver -- -- -- --
Term Loan B 275 241 204 164
Senior Notes 225 225 225 225
Subordinated Notes 100 109 119 129
Total $600 $575 $548 $518
% of Original 95.8% 91.3% 86.3%

Memo:
Undrawn Revolver Commitment $100 $100 $100 $100 $100

Cash Available for Debt Repayment $34 $37 $40

Mandatory Amortization Schedule

Revolver -- -- --
Term Loan B 1.0% 1.0% 1.0%
Senior Notes -- -- --
Subordinated Notes -- -- --

Mandatory Amortization
Revolver -- -- --
Term Loan B (3) (3) (3)
Senior Notes -- -- --
Subordinated Notes -- -- --
Total ($3) ($3) ($3)

Cash Available for Optional Prepayment $31 $34 $38

Optional Prepayment
Revolver -- -- --
Term Loan B (31) (34) (38)
Senior Notes -- -- --
Subordinated Notes -- -- --
Total ($31) ($34) ($38)
x PF Interest Expense
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2017E 2018E 2019E

LIBOR 0.500% 1.100% 1.500%

Debt Balance
Undrawn Revolver $100 $100 $100
Revolver -- -- --
Term Loan B 258 222 184
Senior Notes 225 225 225
Subordinated Notes 104 114 124

Interest Rate Schedule Type Rate

Undrawn Revolver FIXED 0.350% 0.350% 0.350% 0.350%
Revolver FLOAT L+2.000% 2.500% 3.100% 3.500%
Term Loan B FLOAT L+3.000% 3.500% 4.100% 4.500%
Senior Notes FIXED 7.000% 7.000% 7.000% 7.000%
Subordinated Notes FIXED 8.500% 8.500% 8.500% 8.500%

Interest Expense
Undrawn Revolver $0 $0 $0
Revolver -- -- --
Term Loan B 9 9 8
Senior Notes 16 16 16
Subordinated Notes 9 10 11
Total $34 $35 $35

PIK Interest Expense Years PIK

Senior Notes 0 yr -- -- --
Subordinated Notes 3 yr 9 10 11
Total $9 $10 $11

Financing Fee Amortization Fee Term

Revolver $1 5 yr $0 $0 $0
Term Loan B 3 6 yr 1 1 1
Senior Notes 5 8 yr 1 1 1
Subordinated Notes 3 10 yr 0 0 0
Total $1 $1 $1

Net Interest Expense

Interest Expense $34 $35 $35
( + ) Financing Fee Amortization 1 1 1
Total Interest Expense $35 $36 $36
( - ) Interest Income (0) (0) (0)
Net Interest Expense $35 $36 $36

Noncash Interest Expense

PIK Interest Expense $9 $10 $11
( + ) Financing Fee Amortization 1 1 1
Total Noncash Interest Expense $10 $11 $12
x PF Credit Metrics
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, PF 2016 2017E 2018E 2019E

Outstanding Debt
Senior Secured Debt $275 $241 $204 $164
Senior Debt 500 466 429 389
Total Debt 600 575 548 518

Line Items
Adj. EBITDA $90 $95 $100 $107
Cash Interest Expense 25 25 25 24
CapEx 17 18 19 20

Leverage
Senior Secured Debt / Adj. EBITDA 3.1x 2.5x 2.0x 1.5x
Senior Debt / Adj. EBITDA 5.6 4.9 4.3 3.6
Total Debt / Adj. EBITDA 6.7 6.1 5.5 4.8

Interest Coverage
Adj. EBITDA / Cash Interest Expense 3.6x 3.8x 4.0x 4.4x
Adj. EBITDA - CapEx / Cash Interest Expense 2.9 3.1 3.2 3.6

x Illustrative Returns
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, PF 2016 2017E 2018E 2019E

LTM Adj. EBITDA $95 $100 $107

Total Debt $575 $548 $518

( - ) Cash (5) (5) (5)
Net Debt $570 $543 $513

Enterprise Value
(Based on Multiple of LTM Adj. EBITDA)

7.0x $662 $701 $750

7.5x 709 751 804
8.0x 756 801 857
8.5x 803 851 911
9.0x 851 902 965
9.5x 898 952 1,018
10.0x 945 1,002 1,072
10.5x 992 1,052 1,125
11.0x 1,040 1,102 1,179
Total Equity Value
(Based on Multiple of LTM Adj. EBITDA)

7.0x $92 $159 $237

7.5x 139 209 291
8.0x 186 259 345
8.5x 234 309 398
9.0x 281 359 452
9.5x 328 409 505
10.0x 375 459 559
10.5x 423 509 613
11.0x 470 559 666

MoIC Investment
(Based on Multiple of LTM Adj. EBITDA) $236

7.0x 0.39x 0.67x 1.01x

7.5x 0.59 0.88 1.23
8.0x 0.79 1.10 1.46
8.5x 0.99 1.31 1.69
9.0x 1.19 1.52 1.92
9.5x 1.39 1.73 2.14
10.0x 1.59 1.95 2.37
10.5x 1.79 2.16 2.60
11.0x 1.99 2.37 2.82

IRR
(Based on Multiple of LTM Adj. EBITDA) Years: 1 yr 2 yr 3 yr

7.0x (61.1%) (18.0%) 0.2%

7.5x (41.0%) (6.0%) 7.2%
8.0x (21.0%) 4.7% 13.5%
8.5x (1.0%) 14.4% 19.1%
9.0x 19.0% 23.3% 24.2%
9.5x 39.1% 31.7% 28.9%
10.0x 59.1% 39.5% 33.3%
10.5x 79.1% 46.9% 37.4%
11.0x 99.1% 54.0% 41.3%
 Financing Assumptions
Interest Interest Annual
$90 Leverage Term Type Rate Amort.
9.0x Revolver NA 5 yr FLOAT L+2.000% NA
$810 Term Loan B 3.0x 6 yr FLOAT L+3.000% 1.00%
-- Senior Notes 2.5x 8 yr FIXED 7.000% 0.00%
-- Subordinated Notes 1.0x 10 yr FIXED 8.500% 0.00%
$810
Revolver Commitment: $100
Commitment Fee: 0.350%
10.0%
$81
Debt Financing

$ Leverage Fees - $
Revolver -- $1
$810 Term Loan B 275 3.1x 3
(231) Senior Secured Debt $275 3.1x
91 Senior Notes 225 2.5x 5
$670 Senior Debt $500 5.6x
Subordinated Notes 100 1.1x 3
Total $600 6.7x $11

1
1

2020E 2021E 2022E 2023E 2024E

$432 $453 $471 $490 $510
6.0% 5.0% 4.0% 4.0% 4.0%

$114 $119 $124 $129 $134

26.3% 26.3% 26.3% 26.3% 26.3%
6.0% 5.0% 4.0% 4.0% 4.0%
 ($21) ($23) ($23) ($24) ($25)
$92 $97 $101 $105 $109
21.3% 21.3% 21.3% 21.3% 21.3%
6.0% 5.0% 4.0% 4.0% 4.0%

($36) ($35) ($33) ($29) ($26)

$56 $62 $68 $75 $83

($20) ($22) ($24) ($26) ($29)

$36 $40 $44 $49 $54
8.4% 8.9% 9.4% 10.0% 10.5%
10.8% 10.8% 9.4% 10.7% 9.8%

6.0% 5.0% 4.0% 4.0% 4.0%

40.0% 40.0% 40.0% 40.0% 40.0%
26.3% 26.3% 26.3% 26.3% 26.3%
5.0% 5.0% 5.0% 5.0% 5.0%
5.0% 5.0% 5.0% 5.0% 5.0%

2020E 2021E 2022E 2023E 2024E

$432 $453 $471 $490 $510

173 181 189 196 204

94.7 94.7 94.7 94.7 94.7

118.4 118.4 118.4 118.4 118.4
115.8 115.8 115.8 115.8 115.8
97.4 97.4 97.4 97.4 97.4

2.0% 2.0% 2.0% 2.0% 2.0%

10.8% 10.8% 10.8% 10.8% 10.8%
0.9% 0.9% 0.9% 0.9% 0.9%

$114 $119 $124 $129 $134

57 60 62 65 67
9 9 10 10 10
$179 $188 $196 $204 $212

$56 $58 $61 $63 $66

47 49 51 53 55
4 4 4 4 4
$106 $111 $116 $120 $125
 $73 $77 $80 $83 $86
($4) ($4) ($3) ($3) ($3)

2020E 2021E 2022E 2023E 2024E

$5 $5 $5 $5 $5
114 119 124 129 134
57 60 62 65 67
9 9 10 10 10
$184 $193 $201 $209 $217
78 78 78 78 78
670 670 670 670 670
11 10 8 7 7
$943 $951 $957 $964 $971

$56 $58 $61 $63 $66

47 49 51 53 55
4 4 4 4 4
$106 $111 $116 $120 $125

$484 $446 $403 $357 $306

7 7 7 7 7
$597 $564 $526 $484 $438

$346 $387 $431 $480 $533

$943 $951 $957 $964 $971
1 1 1 1 1

2020E 2021E 2022E 2023E 2024E

$36 $40 $44 $49 $54

21 23 23 24 25
1 1 1 1 1
(4) (4) (3) (3) (3)
$55 $61 $66 $71 $77
(21) (23) (23) (24) (25)
$34 $38 $42 $47 $51

$5 $5 $5 $5 $5
34 38 42 47 51
(5) (5) (5) (5) (5)
$34 $38 $42 $47 $51
 ($3) ($3) ($3) ($3) ($3)
(31) (35) (40) (44) (48)

$5 $5 $5 $5 $5
$5 $5 $5 $5 $5

$5 $5 $5 $5 $5
0 0 0 0 0

2020E 2021E 2022E 2023E 2024E

-- -- -- -- --
130 92 49 3 --
225 225 225 225 177
129 129 129 129 129
$484 $446 $403 $357 $306
80.7% 74.3% 67.2% 59.5% 50.9%

$100 $100 $100 $100 $100

$34 $38 $42 $47 $51

-- -- -- -- --
1.0% 1.0% 1.0% 1.0% 1.0%
-- -- -- -- --
-- -- -- -- --

-- -- -- -- --
(3) (3) (3) (3) (3)
-- -- -- -- --
-- -- -- -- --
($3) ($3) ($3) ($3) ($3)

$31 $35 $40 $44 $48

-- -- -- -- --
(31) (35) (40) (44) (0)
-- -- -- -- (48)
-- -- -- -- --
($31) ($35) ($40) ($44) ($48)
2020E 2021E 2022E 2023E 2024E

2.150% 2.500% 3.000% 3.000% 3.000%

$100 $100 $100 $100 $100

-- -- -- -- --
147 111 71 26 1
225 225 225 225 201
129 129 129 129 129

0.350% 0.350% 0.350% 0.350% 0.350%

4.150% 4.500% 5.000% 5.000% 5.000%
5.150% 5.500% 6.000% 6.000% 6.000%
7.000% 7.000% 7.000% 7.000% 7.000%
8.500% 8.500% 8.500% 8.500% 8.500%

$0 $0 $0 $0 $0
-- -- -- -- --
8 6 4 2 0
16 16 16 16 14
11 11 11 11 11
$35 $33 $31 $29 $25

-- -- -- -- --
-- -- -- -- --
-- -- -- -- --

$0 $0 -- -- --
1 1 1 0 --
1 1 1 1 1
0 0 0 0 0
$1 $1 $1 $1 $1

$35 $33 $31 $29 $25

1 1 1 1 1
$36 $35 $33 $29 $26
(0) (0) (0) (0) (0)
$36 $35 $33 $29 $26

-- -- -- -- --
1 1 1 1 1
$1 $1 $1 $1 $1
2020E 2021E 2022E 2023E 2024E

$130 $92 $49 $3 --

355 317 274 228 177
484 446 403 357 306

$114 $119 $124 $129 $134

35 33 31 29 25
21 23 23 24 25

1.1x 0.8x 0.4x 0.0x --

3.1 2.7 2.2 1.8 1.3
4.3 3.7 3.3 2.8 2.3

3.3x 3.6x 4.0x 4.5x 5.3x

2.7 2.9 3.2 3.7 4.3

2020E 2021E 2022E 2023E 2024E

$114 $119 $124 $129 $134

$484 $446 $403 $357 $306

(5) (5) (5) (5) (5)
$479 $441 $398 $352 $301

$795 $835 $868 $903 $939

852 895 930 968 1,006
909 954 993 1,032 1,074
966 1,014 1,055 1,097 1,141
1,023 1,074 1,117 1,161 1,208
1,079 1,133 1,179 1,226 1,275
1,136 1,193 1,241 1,290 1,342
1,193 1,253 1,303 1,355 1,409
1,250 1,312 1,365 1,419 1,476
 $316 $394 $470 $551 $639
373 454 532 616 706
430 514 594 680 773
487 573 656 745 840
543 633 718 809 907
600 692 780 874 974
657 752 842 938 1,041
714 812 904 1,003 1,108
771 871 966 1,067 1,175

1.34x 1.67x 1.99x 2.34x 2.71x

1.58 1.92 2.26 2.61 2.99
1.82 2.18 2.52 2.88 3.28
2.06 2.43 2.78 3.16 3.56
2.30 2.68 3.04 3.43 3.84
2.54 2.93 3.31 3.70 4.13
2.79 3.19 3.57 3.98 4.41
3.03 3.44 3.83 4.25 4.70
3.27 3.69 4.10 4.52 4.98

4 yr 5 yr 6 yr 7 yr 8 yr

7.6% 10.8% 12.2% 12.9% 13.3%

12.1% 14.0% 14.5% 14.7% 14.7%
16.2% 16.8% 16.6% 16.3% 16.0%
19.8% 19.4% 18.6% 17.8% 17.2%
23.2% 21.8% 20.4% 19.3% 18.3%
26.3% 24.0% 22.1% 20.6% 19.4%
29.2% 26.1% 23.6% 21.8% 20.4%
31.9% 28.0% 25.1% 23.0% 21.3%
34.4% 29.9% 26.5% 24.1% 22.2%
 Financing
Years PIK Fees
NA 0.500%
NA 1.250%
0 yr 2.000%
3 yr 2.500%
Illustrative LBO Analysis
Ability-To-Pay Analysis

x Ability To Pay Analysis

($ in millions, except where otherwise specified)

Illustrative Exit Multiple 8.0x 9.0x

FYE 2021E Exit (5 Years)

LTM Adj. EBITDA $119 $119
Transaction Value $954 $1,074
( - ) Net Debt @ FYE 2021 (441) (441)
Equity Value $514 $633

Required IRR 20.0% 22.5% 25.0% 20.0% 22.5%

Holding Period 5 yr 5 yr 5 yr 5 yr 5 yr
Implied MoIC 2.49x 2.76x 3.05x 2.49x 2.76x
Invested Equity $206 $186 $168 $254 $229
( + ) Debt Raised 600 600 600 600 600
( + ) Cash On-Hand -- -- -- -- --
Total Implied Sources $806 $786 $768 $854 $829
( - ) Refinance Debt -- -- -- -- --
( - ) Fund Cash Balance -- -- -- -- --
( - ) Expenses (26) (26) (26) (26) (26)
Implied Equity Purchase Price $780 $760 $742 $828 $803
( + ) Net Debt -- -- -- -- --
Implied Transaction Value $780 $760 $742 $828 $803
LTM EBITDA Multiple $90 8.7x 8.4x 8.2x 9.2x 8.9x
 10.0x

$119
$1,193
(441)
$752

25.0% 20.0% 22.5% 25.0%

5 yr 5 yr 5 yr 5 yr
3.05x 2.49x 2.76x 3.05x
$207 $302 $273 $246
600 600 600 600
-- -- -- --
$807 $902 $873 $846
-- -- -- --
-- -- -- --
(26) (26) (26) (26)
$781 $876 $847 $821
-- -- -- --
$781 $876 $847 $821
8.7x 9.7x 9.4x 9.1x
Illustrative LBO Analysis
Value Creation

x Value Creation Analysis (5 Years)

($ in millions, except where otherwise specified)
Cumulative Change
Entry Exit (2021) $ %
LTM Revenue $342 $453 $111 32.5%
LTM Adj. EBITDA $90 $119 $29 32.5%
% Margin 26.3% 26.3% --
Transaction Multiple 9.0x 10.0x 1.0x 11.1%
Transaction Value $810 $1,193 $383 47.3%
Net Debt ($600) ($441) $159 (26.5%)
Fees 26 (5) (31)
Sponsor Equity $236 $747 $511 216.7%

Value Creation Build

Starting Equity Value $236 %
( - ) Fees (31) (6.1%)
( + ) EBITDA Growth 264 51.6%
( + ) Multiple Expansion 119 23.3%
( + ) Debt Paydown 159 31.1%
Total Value Creation $511 100.0%
Ending Equity Value $747
MoIC 3.17x