CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
www.harriswilliams.com Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
HARRIS WILLIAMS & CO. CONSUMER UPDATE GROUP OVERVIEW
HW&CO.’S RECENT INDUSTRY OBSERVATIONS The HW&Co. Consumer group did not experience the “August M&A lull” this year as the team continues to be very busy executing a number deals that are expected to close by year end or shortly thereafter. Perhaps more interesting, we spoke with a large and increasing number of business owners interested in a near term liquidity event. Nothing like a little bit of public market volatility to remind owners that the existing white hot M&A market will not remain forever. The tradeshow circuit has also been active with recent visits to Outdoor Retailer, Super Zoo, and Kind + Jugend. This month we highlight our observations from Outdoor Retailer and the broader trends in the outdoor and lifestyle sector.
Recent HW&Co. Outdoor and Lifestyle Transactions
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a portfolio company of has been acquired by
has been acquired by
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has been acquired by has been acquired by
has been acquired by
Outdoor Retailer Summer Market represents the largest outdoor product tradeshow in the World that largely caters to the specialty retailer. This year’s event was very well attended and featured over 1600 brands, almost one-quarter of which were new to Outdoor Retailer for the first time. Key Observations Functional Fashion – It used to be that most technical apparel brands were primarily focused on function without as much focus on current fashion trends. This is changing rapidly with lifestyle brands such as Patagonia and Prana designing products that are equally as likely to be worn at a trendy lunch spot in the city as they are on the trail or yoga studio. The newest fabrics are often rugged and highly technical, but also soft, shaped, and wrinkle-free to increase versatility. Brands that can consistently stay fashion forward will benefit greatly from this trend as the continuously evolving fashion landscape helps support greater consumer repurchase rates. Online Purchasing – Virtually all brands that we spoke with at the show spoke of how rapidly the online sales channel was growing. Whether products are being sold via the brand’s own website, Amazon, or through online specialty channels like backcountry.com (recently acquired by TSG Consumer Partners), consumers are increasingly turning to online marketplaces for product purchases. This trend is the result of many factors, including significantly greater impact of social media and peer reviews on purchasing behavior, ability for brands to control brand image and achieve greater product margin on products sold direct to consumer, and the Millennials-led purchasing behavior that increasingly shuns brick and mortar retail.
Harris Williams & Co. is a leading advisor to the Consumer market. Our significant experience covers a broad range of end markets, industries, and business models. This particular report focuses on trends and metrics in the following areas:
Consumer Durables
Franchise Platforms
Omni / Multi-Channel Brands
Consumer Electronics Consumer Services Footwear, Apparel, and Accessories Internet Retail
Home Furnishings Household Goods Infant and Juvenile Products Jewelry, Gifts, and Collectibles Lawn, Garden, and Pet Products and Services Outdoor and Lifestyle Personal Care Products Specialty and Mass Merchant Retailing
CONTACTS John Neuner Managing Director
[email protected] +1 (804) 915-0125 Corey Benjamin Director
[email protected] +1 (804) 932-1342 Ryan Budlong Director
[email protected] +1 (415) 217-3409 Brent Spiller Director
[email protected] +1 (804) 915-0183 Matt Conaty Vice President
[email protected] +1 (415) 217-3423 Chip Duggins Vice President
[email protected] +1 (804) 932-1340
www.harriswilliams.com
PAGE | 1
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
HARRIS WILLIAMS & CO. CONSUMER UPDATE HW&CO’S RECENT OUTDOOR & LIFESTYLE INDUSTRY OBSERVATIONS (CONTINUED) Wearable Technology – Following a broader consumer trend, outdoor enthusiasts increasingly want the ability to measure performance during activity participation. Traditional outdoor wearable technology players like Garmin and Suunto continue to innovate and provide additional and easier to use features in smaller packages. What is more interesting is the increasing proliferation of mobile apps that are compatible across different hardware platforms (e.g., iPhone and Android phones) that are comparatively cheap and easy to use. Good examples of this trend is the continued growth of Strava and Under Armour’s recent announcement that it has formed a partnership with Taiwanese mobile communications company HTC. White Hot M&A Market – Both strategic and financial buyers at the show lamented the continued lack of opportunities at “reasonable valuations”. It’s true, we have seen valuations for outdoor and lifestyle assets vastly increase beginning in 2014. In addition to just being a strong overall M&A market, buyers have been attracted to a category that is growing faster than most other segments of the economy and the proven ability of outdoor & lifestyle assets to perform in diverse economic environments. Sellers have continued to be in the driver’s seat for high quality assets and we do not expect this dynamic to change anytime soon.
OUTDOOR & LIFESTYLE TEV / EBITDA (2011 – 2015 YTD)1
14.0x 11.5x
12.0x 10.0x
9.1x
8.7x
10.5x
8.5x
8.0x
6.0x 4.0x 2.0x 0.0x 2011
2012
1)
2013
2014
2015
Proprietary HW&Co. data.
PAGE | 2
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
PUBLIC MARKETS OVERVIEW KEY TRADING STATISTICS (DETAIL BEGINS ON PAGE 7) Number of Median Enterprise Companies Value ($ M)
Sector
Median TEV/ LTM Multiples
Change in Stock Price 3 mos.
12 mos.
Revenue
Median TEV/ Forward Mulitples
EBITDA
Revenue
EBITDA
Consumer Products & Services Apparel & Footwear
24
$3,383
(6.3%)
8.9%
1.8x
12.3x
1.7x
Consumer Durables
6
6,018
(9.0%)
(1.2%)
0.9x
9.6x
0.9x
7.3x
Consumer Serv ices and Retail Franchisors
7
5,052
(0.6%)
11.0%
1.9x
12.1x
1.8x
10.2x
10
1,650
(4.9%)
22.6%
0.9x
10.9x
0.9x
8.6x
5
16,420
0.8%
20.5%
3.5x
14.2x
3.5x
13.5x
Housewares
10
3,248
(6.0%)
13.3%
1.4x
13.3x
1.5x
9.8x
Infant & Juv enile
12
908
(7.6%)
2.8%
0.7x
10.4x
0.6x
8.4x
Lawn, Garden, and Pet
11
1,808
(3.4%)
1.6x
12.4x
1.6x
10.8x
Outdoor & Lifestyle
20
966
(7.1%)
4.3%
1.6x
11.6x
1.4x
9.5x
Personal Care Products
13
3,553
(12.2%)
0.5%
1.5x
10.7x
1.4x
10.8x
31
1,514
(9.7%)
(6.8%)
0.7x
6.8x
0.6x
6.4x
8
6,180
(15.7%)
(12.5%)
0.7x
7.1x
0.6x
6.8x
Discount Stores & Mass Merchants
14
23,271
(6.0%)
13.1%
0.7x
11.1x
0.7x
10.0x
Furniture & Furnishings Retailers
14
1,560
(9.2%)
7.2%
0.9x
8.1x
0.9x
8.4x
Internet Retail
12
3,886
(11.8%)
9.0%
2.3x
21.1x
2.5x
13.9x
Specialty & Other Retail
15
4,769
(12.6%)
6.7%
0.8x
7.7x
0.8x
7.1x
Consumer Products & Services
118
$3,316
(6.1%)
6.6%
1.5x
11.9x
1.4x
10.0x
Retail
94
$4,327
(10.7%)
6.9%
0.8x
7.9x
0.7x
7.8x
Consumer & Retail Index
212
$3,468
(7.4%)
6.9%
1.2x
11.0x
1.1x
9.7x
Home & Office Furniture & Furnishings Household Products
(10.6%)
11.1x
Retail Apparel & Footwear Retail Department Chains
PUBLIC COMPANY SECTOR PERFORMANCE (12-MONTH % CHANGE IN STOCK PRICE) Home & Office Furniture & Furnishings Household Products Housewares Discount Stores & Mass Merchants Consumer Serv ices and Retail Franchisors Internet Retail Apparel & Footwear
Furniture & Furnishings Retailers Consumer & Retail Index Specialty & Other Retail Outdoor & Lifestyle Infant & Juv enile Personal Care Products S&P 500 Consumer Durables
Apparel & Footwear Retail Lawn, Garden, and Pet Department Chains (20.0%)
(10.0%)
0.0%
10.0%
20.0%
30.0%
40.0%
PAGE | 3
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
PUBLIC MARKETS OVERVIEW CONSUMER AND RETAIL INDUSTRY STOCK PERFORMANCE
250 225 200
Index
175 150 125 100 75 50 Sep-11
Jan-12
May-12
Sep-12
Dow Jones U.S. Retail Index
Jan-13
May-13
Sep-13
Jan-14
Dow Jones U.S. Consumer Goods Index
May-14
Sep-14
Jan-15
May-15
Dow Jones U.S. Consumer Services
Sep-15
S&P 500 Index
RECENT EQUITY OFFERINGS Transaction
Gross Proceeds
Close Date
Filing Date
Issuer
Ticker
Type
($ M)
08/11/15
08/10/15
Norwegian Cruise Line Holdings Ltd.
NCLH
Follow-On
$1,180.6
08/10/15
08/10/15
Bright Horizons Family Solutions, Inc.
BFAM
Follow-On
183.2
Barclays Capital Inc.
08/06/15
06/22/15
Planet Fitness, Inc.
PLNT
IPO
202.0
JP Morgan, BAML, Jefferies, Credit Suisse, others
08/05/15
08/04/15
GNC Holdings Inc
GNC
Conv ertible
250.0
JP Morgan
07/31/15
07/31/15
Boot Barn Holdings Inc
BOOT
Follow-On
170.4
JP Morgan, Piper Jaffray, Jefferies
07/30/15
02/11/15
Xcel Brands, Inc.
XELB
Follow-On
15.1
W underlich Securities, Inc.
07/23/15
07/23/15
ClubCorp Holdings, Inc.
MYCC
Follow-On
231.7
Goldman, Sachs & Co.
07/21/15
06/10/15
Blue Buffalo Pet Products Inc
BUFF
IPO
778.1
JP Morgan, Citigroup Global Markets Inc
07/16/15
07/16/15
Jarden Corp
JAH
Follow-On
872.0
Barclays, Credit Suisse, UBS, others
07/16/15
05/01/15
MCBC Holdings Inc.
MCFT
IPO
84.7
Raymond James, Robert W . Baird, W ells Fargo, others
07/15/15
06/15/15
Ollie's Bargain Outlet Holdings, Inc.
OLLI
IPO
164.2
Jefferies, JP Morgan, Merrill Lynch, Pierce, Fenner, others
07/09/15
07/09/15
The Michaels Companies Inc
MIK
Follow-On
332.5
Goldman Sachs & Co
Underwriter(s) Goldman, Sachs & Co.
PAGE | 4
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
M&A OVERVIEW ANNOUNCED CONSUMER AND RETAIL M&A Last 10 Deals Announced
Quarterly Consumer M&A Activity Announced
160
Number of Transactions
140
16
120 23
100 80
13
20
21 14
127
60
26
25 5
34
98
40
77
66
77
57
20
12
18
13
43
35
39
Sequential Brands Group, Inc.
9/8/2015
Robert Graham Designs, LLC
Joe's Jeans Inc.
9/8/2015
CHART Metalworks, Inc.
Sea Bags, Inc.
9/7/2015
Sun & Skin Care Research, LLC
-
9/2/2015
California Scents, Inc.
American Cov ers Inc.
9/1/2015
Industrial Blades Div ision
AccuTec Blades, Inc.
9/1/2015
ACE Theatrical Group, LLC
The Ambassador Theatre Group Limited
8/31/2015
Backyard Leisure Holdings, LLC
-
8/31/2015
Hollywood Fashion Tape, Inc.
American International Industries
8/30/2015
Blyth, Inc.
The Carlyle Group LP
LTM Deal Statistics
0
Transaction Multiples
Aggregate
Number
Value ($bn)
of Deals
EV / Revenue
EV / EBITDA
$46.4
341
0.84x
10.7x
2Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q141Q152Q15 Strategic Buyer
Buyer
Joe's Jeans Inc.
83
71
68
66
Target
9/8/2015
PEG Acquirer Note: Transactions based on publicly available information
CONSUMER AND RETAIL M&A TRENDS Median Consumer Transaction Multiples
Announced Consumer Transactions
1.40x
$60
300 250
$40
$45
$38
$30
$29
$36
200
$28
$27
150 100
$15
50
$0
1.20x
16.0x
1.00x 12.0x
10.7x 8.9x
10.0x
9.8x
11.4x
10.8x
0.80x
8.4x
0.60x
8.0x
0.40x 4.0x
EV / LTM Sales Multiple
350
EV / LTM EBITDA Multiple
400
$75
$30
20.0x
450
Number of Transactions
Average Transaction Value ($ in billions)
$90
0.20x
0 2009
2010
2011
2012
2013
2014
Aggregate Transaction Value
2015 YTD
0.0x
0.00x 2009
2010
2011
2012
EBITDA Mult
# of Deals
2013
2014
2015 YTD
Rev Mult
TRADING MULTIPLES AND ANNOUNCED PRIVATE EQUITY M&A ACTIVITY Median LTM Trading Multiples
14.0x 12.0x
14.7x
111
13.6x
13.1x
12.9x 11.9x 12.1x 11.9x 12.1x 11.6x
Consumer Private Equity Investments and Exits 120
12.0x
13.1x 12.1x 11.9x 12.0x12.0x
11.8x
11.9x
12.2x
12.4x
12.0x
10.8x 10.0x
10.0x 8.0x 6.0x
4.0x 2.0x
10.2x
10.4x
10.0x
9.5x
100
Number of Transactions
Median Trading Multiples
16.0x
97 86
80 60
71
73 76
72
59
59 48
40
31 28
68 57
53 53
57
59 50
37
20
0.0x
0
2006 Consumer Products & Services
Retail
2007
2008
2009
2010
Number of Investments
2011
2012
2013
Number of Exits
2014
2015 YTD
PAGE | 5
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
DEBT MARKET OVERVIEW KEY RETAIL CREDIT STATISTICS Average Spread on Retail Loans L + 700
12 12.00
L + 600
Average Spread Over LIBOR
Loan Volume by Quarter ($ in billions)
Quarterly Retail Loan Volume 14 14.00
10 10.00 8 8.00 6 6.00 4 4.00 2 2.00 0 0.00 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 2Q094Q092Q104Q102Q114Q112Q124Q122Q134Q132Q144Q142Q15
Institutional
L + 500 L + 400 L + 300 L + 200 L + 100 NA
L+0 2007
Pro Rata
2008
2009
2010
Revolving Credit / Term Loan A
2011
2012
2013
2014 1H15 2Q15
Weighted-Average Institutional
Average Secondary Spread
Credit Statistics L + 2500
6.0x
Average Spread Over LIBOR
EBITDA Multiple
5.0x 4.0x 3.0x 2.0x 1.0x 0.0x Debt/EBITDA
2010
Senior Debt/EBITDA 2011
2012
EBITDA/Cash Interest 2013
2014
1H15
EBITDA Capex/Cash Interest
L + 2000
L + 1500
L + 1000
L + 500
L+0 2Q05 2Q06 2Q07 2Q08 2Q09 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15
COMMENTARY ON RECENT CONSUMER AND RETAIL DEBT TRANSACTIONS • • •
• •
The first-lien loan backing of Sycamore Partners’ $3 billion buyout of Charlotte, N.C.-based retailer Belk, is being led by Morgan Stanley. A privately placed second-lien term loan also backs the deal. Bain Capital’s acquisition of a minority stake in skincare company, Sundial Brands, led by Goldman Sachs, is likely to roll out later in September. GSO Capital Partners has committed to provide debt financing to Sequential Brands to fund its acquisition of assets as part of the break-up of Nasdaq-listed Joe’s Jeans. The Joe’s brand and other assets will be sold to Sequential for $67 million, while Global Brands Group Holding will buy operating assets and inventory for $13 million. Proceeds from the asset sale will be used to pay down borrowings under the company’s revolving credit with CIT Group (about $21 million) and term loan with Garrison Capital ($59 million). Separately, the Hudson Jeans brand will merge with Robert Graham and will be renamed Differential Brands Group. Tengram Capital Partners, Robert Graham’s sponsor, will invest $50 million in the latter. Smart Start’s $145 million first-lien term loan backing its LBO by ABRY Partners is being led by BNP. The deal launched at L+475-500, with a 1% LIBOR floor and an offer price of 99. The 6.5-year loan includes a leverage-based step-down. Britax term debt due 2020 (L+350, 1% floor) was quoted several points lower, at 70/75, after the company issued a recall for its ClickTight model convertible car seats. It was subsequently downgraded by S&P to CCC+, from B-. The loans were marked at 78/81 prior to the recall. More than 200,000 car seats were affected by the recall, the Associated Press reports.
PAGE | 6
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
PUBLIC COMPARABLES ($ in m illions, except per share data)
Ticker
Price at
As a % of
Market
9/17/15
52-wk High
Cap
Consumer Products & Services Apparel & Footwear Coach, Inc. Columbia Sportswear Company Carter's, Inc. Crocs, Inc.
COH COLM CRI CROX
29.92 65.66 $97.97 14.71
68.2% 87.9% 89.4% 91.7%
8,277 4,616 $5,118 1,099
Deckers Outdoor Corp.
DECK
64.68
64.8%
Fossil Group, Inc.
FOSL
60.20
52.3%
G-III Apparel Group, Ltd. Hanesbrands Inc. Iconix Brand Group, Inc. Kate Spade & Company NIKE, Inc. Oxford Industries Inc. Perry Ellis International Inc. PVH Corp. Ralph Lauren Corporation Stev en Madden, Ltd. Skechers U.S.A., Inc. Gildan Activ ewear Inc. Tumi Holdings, Inc. Under Armour, Inc. V.F. Corporation Vera Bradley, Inc. W eyco Group Inc. W olv erine W orld W ide Inc.
GIII HBI ICON KATE NKE OXM PERY PVH RL SHOO SKX TSX: GIL TUMI UA VFC VRA W EYS WWW
68.47 30.26 14.96 20.47 115.58 82.39 23.98 115.74 114.60 41.36 143.63 31.33 19.61 103.36 71.96 13.74 27.50 27.24 Mean Median
Debt
Cash &
Enterprise
Equiv.
Value (EV)
Last Twelve Months (LTM) Revenue
EBITDA
Revenue Growth 1 Year
3 Years
LTM Margins Gross
EBITDA
LTM P/E Multiple
EV / LTM Revenue
EV / 2015E
EBITDA
Revenue
EBITDA
890 16 $586 9
1,526 417 $244 197
7,641 4,214 $5,460 910
4,192 2,211 $2,966 1,117
973 278 $444 28
(12.8%) 22.6% 7.6% (7.4%)
(4.2%) 8.8% 9.3% 1.1%
69.5% 45.8% 41.3% 49.3%
23.2% 12.6% 15.0% 2.5%
20.6x 33.1x 23.7x NM
1.82x 1.91x 1.84x 0.82x
7.9x 15.2x 12.3x 32.4x
1.71x 1.75x 1.73x 0.80x
7.8x 13.5x 11.1x 8.9x
2,114
76
169
2,021
1,819
257
11.7%
8.1%
48.3%
14.1%
14.7x
1.11x
7.9x
1.02x
7.0x
2,898
697
250
3,346
3,424
628
0.0%
8.3%
56.2%
18.3%
8.7x
0.98x
5.3x
1.01x
7.5x
92.6% 87.0% 36.5% 57.3% 98.2% 90.3% 85.1% 89.6% 61.1% 92.5% 87.8% 90.4% 77.0% 99.8% 92.5% 56.5% 87.8% 77.4%
3,096 12,179 722 2,614 98,865 1,366 374 9,554 9,815 2,612 7,320 7,618 1,331 22,291 30,629 522 299 2,808
6 2,597 1,479 403 1,338 45 130 3,382 693 0 112 593 0 717 2,584 0 18 833
19 315 118 231 6,002 14 38 467 1,151 100 514 45 73 171 660 76 18 221
3,083 14,461 2,083 2,785 94,201 1,398 466 12,469 9,357 2,512 6,919 8,166 1,258 22,836 32,553 446 299 3,421
2,234 5,654 391 1,185 30,601 1,039 909 8,045 7,530 1,382 2,822 2,407 543 3,422 12,450 500 325 2,782
205 921 191 143 4,824 129 42 953 1,243 178 360 365 117 442 2,105 71 36 315
15.6% 15.8% 0.9% 23.8% 10.1% 13.2% 1.1% (2.5%) 0.3% 3.3% 33.8% 3.7% 10.9% 28.8% 5.8% (3.3%) 8.4% 3.1%
20.2% 8.4% 1.8% (7.2%) 9.5% 8.7% (1.6%) 10.6% 2.8% 6.4% 25.2% 8.8% 14.6% 28.2% 6.3% 0.3% 4.4% 25.6%
35.9% 37.9% 100.0% 60.9% 46.0% 55.7% 34.2% 52.5% 57.2% 34.8% 45.3% 23.5% 58.5% 48.8% 48.7% 54.1% 38.4% 39.3%
9.2% 16.3% 48.9% 12.1% 15.8% 12.4% 4.6% 11.8% 16.5% 12.9% 12.8% 15.1% 21.5% 12.9% 16.9% 14.3% 11.1% 11.3%
25.9x 34.7x 5.9x 31.1x 31.2x 26.3x NM 19.6x 16.8x 24.6x 35.2x 33.7x 22.0x NM 29.8x 20.0x 15.5x 20.9x
1.38x 2.56x 5.33x 2.35x 3.08x 1.35x 0.51x 1.55x 1.24x 1.82x 2.45x 3.39x 2.32x 6.67x 2.61x 0.89x 0.92x 1.23x
15.0x 15.7x 10.9x NM 19.5x 10.9x 11.2x 13.1x 7.5x 14.1x 19.2x 22.4x 10.8x 51.7x 15.5x 6.2x 8.3x 10.8x
1.22x 2.42x 4.70x 2.12x 2.90x 1.37x 0.49x 1.52x 1.22x 1.68x 2.01x 3.01x 2.15x 5.36x 2.47x 0.91x NA 1.19x
12.4x 14.2x 9.1x 13.1x 17.8x 10.0x 8.0x 11.3x 7.9x 12.3x 13.9x 13.8x 10.7x 40.8x 14.3x 6.5x NA 10.6x
79.7% 87.8%
$9,922 $2,997
$717 $494
$543 $209
$10,096 $3,383
$4,165 $2,320
$635 $296
8.1% 6.7%
8.5% 8.3%
49.2% 48.5%
15.1% 13.5%
23.5x 23.7x
2.09x 1.82x
14.9x 12.3x
1.95x 1.71x
12.3x 11.1x
PAGE | 7
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
PUBLIC COMPARABLES Ticker
($ in m illions, except per share data)
Price at
As a % of
Market
9/17/15
52-wk High
Cap
Debt
Cash &
Enterprise
Equiv.
Value (EV)
Last Twelve Months (LTM) Revenue
EBITDA
Revenue Growth 1 Year
3 Years
LTM Margins Gross
EBITDA
LTM P/E Multiple
EV / LTM Revenue
EV / 2015E
EBITDA
Revenue
EBITDA
Consumer Durables Arcelik AS
ARCLK
5.10
97.2%
3,443
1,889
393
4,939
4,799
469
(14.4%)
(4.3%)
31.4%
9.8%
13.1x
1.03x
10.5x
1.05x
9.6x
Electrolux AB iRobot Corporation
ELUX B IRBT
29.56 30.27
86.5% 79.4%
8,494 904
1,649 0
1,017 224
9,126 680
14,526 570
1,000 67
(10.1%) 12.8%
(2.3%) 7.4%
19.6% 47.0%
6.9% 11.8%
24.8x 25.5x
0.63x 1.19x
9.1x 10.1x
0.57x 1.00x
7.6x 7.0x
Middleby Corp.
MIDD
114.45
91.3%
6,561
575
39
7,098
1,682
373
9.6%
20.9%
39.3%
22.2%
32.0x
4.22x
19.0x
3.54x
16.9x
Haier Electronics Group Co., Ltd.
SEHK: 1169
1.79
53.4%
4,989
200
1,595
3,593
10,568
494
(0.8%)
8.8%
15.2%
4.7%
11.8x
0.34x
7.3x
0.35x
6.5x
W hirlpool Corp.
W HR
168.08
77.4%
13,180
4,757
691
17,246
20,881
2,026
11.0%
4.3%
17.3%
9.7%
19.8x
0.83x
8.5x
0.79x
7.1x
Mean
80.9%
$6,262
$1,512
$660
$7,114
$8,838
$738
1.4%
5.8%
28.3%
10.8%
21.1x
1.37x
10.8x
1.22x
9.1x
Median
83.0%
$5,775
$1,112
$542
$6,018
$7,684
$481
4.4%
5.8%
25.5%
9.7%
22.3x
0.93x
9.6x
0.90x
7.3x
3,812 9,891
1,340 506
101 1,706
5,052 8,691
2,612 3,083
476 948
(0.9%) 1.7%
4.5% 2.2%
37.3% 50.3%
18.2% 30.8%
16.1x 19.9x
1.93x 2.82x
10.6x 9.2x
1.85x 2.76x
9.6x 8.8x
Consumer Services and Retail Franchisors GNC Holdings Inc. H&R Block, Inc.
GNC HRB
44.86 35.79
86.8% 98.6%
Regis Corp.
RGS
12.31
68.7%
651
120
212
558
1,837
86
(2.9%)
(4.7%)
33.8%
4.7%
NM
0.30x
6.5x
0.31x
5.9x
Realogy Holdings Corp. Serv iceMaster Global Holdings, Inc.
RLGY SERV
40.64 34.97
81.7% 90.9%
5,959 4,728
4,338 2,846
359 384
9,938 7,190
5,522 2,529
728 576
3.8% 7.0%
9.0% NA
48.2% 47.5%
13.2% 22.8%
32.3x 41.4x
1.80x 2.84x
13.7x 12.5x
1.67x 2.72x
11.6x 11.3x
Steiner Leisure Ltd.
STNR
63.84
98.2%
819
109
48
880
871
73
1.1%
4.6%
21.9%
8.4%
NM
1.01x
12.1x
0.98x
10.8x
W inmark Corp.
W INA
102.50
95.0%
423
74
1
496
69
37
20.9%
12.1%
87.8%
53.6%
23.5x
7.18x
13.4x
NA
NA
Mean
88.6%
$3,755
$1,333
$402
$4,686
$2,360
$418
4.4%
4.6%
46.7%
21.7%
26.6x
2.56x
11.1x
1.71x
9.7x
Median
90.9%
$3,812
$506
$212
$5,052
$2,529
$476
1.7%
4.5%
47.5%
18.2%
23.5x
1.93x
12.1x
1.76x
10.2x
Home & Office Furniture & Furnishings The Dixie Group, Inc.
DXYN
10.16
88.3%
162
136
0
298
419
17
10.9%
16.6%
24.6%
4.1%
NM
0.71x
17.4x
0.66x
NA
HNI Corp. Hooker Furniture Corp.
HNI HOFT
46.21 24.73
80.0% 90.6%
2,049 267
304 0
39 44
2,315 223
2,353 249
212 25
13.8% 6.9%
6.8% 5.8%
35.9% 26.5%
9.0% 9.9%
28.7x 17.9x
0.98x 0.90x
10.9x 9.0x
0.93x 0.86x
8.6x NA
Kimball International, Inc.
KBAL
10.76
57.5%
404
0
35
370
601
43
10.5%
31.4%
7.1%
37.6x
0.62x
8.7x
NA
NA
Knoll, Inc. Leggett & Platt, Incorporated
KNL LEG
23.77 44.08
91.2% 86.0%
1,160 6,031
274 1,033
10 275
1,423 6,790
1,090 3,914
122 481
15.6% 9.7%
7.4% 2.1%
36.2% 22.0%
11.2% 12.3%
18.3x 25.6x
1.31x 1.73x
11.7x 14.1x
1.25x 1.65x
9.5x 11.4x
La-Z-Boy Incorporated Herman Miller Inc.
LZB MLHR
27.75 $27.86
95.7% 86.1%
1,403 $1,667
1 $268
99 $58
1,305 $1,877
1,440 $2,198
130 $247
4.4% 14.3%
4.7% 8.6%
35.9% 37.8%
9.0% 11.2%
20.5x 15.8x
0.91x 0.85x
10.0x NM
0.84x 0.82x
8.4x 7.4x
Steelcase Inc.
SCS
18.24
89.2%
2,228
282
156
2,354
3,042
256
(0.1%)
3.0%
31.4%
8.4%
27.2x
0.77x
9.2x
0.76x
7.5x
Tempur Sealy International Inc.
TPX
76.95
95.7%
4,763
1,576
35
6,303
3,077
339
8.7%
28.1%
38.6%
11.0%
37.4x
2.05x
18.6x
1.93x
13.2x
Mean Median
86.0% 88.8%
$2,013 $1,535
$388 $271
$75 $41
$2,326 $1,650
$1,838 $1,819
$187 $171
9.5% 10.1%
6.4% 6.3%
32.0% 33.6%
9.3% 9.5%
25.5x 25.6x
1.08x 0.90x
12.2x 10.9x
1.08x 0.86x
9.4x 8.6x
Household Products Church & Dwight Co. Inc.
CHD
84.47
93.1%
11,061
1,074
203
11,932
3,367
768
Colgate-Palmoliv e Co. The Clorox Company
CL CLX
$63.07 113.58
88.1% 94.8%
$56,771 14,611
$6,683 2,191
$1,308 382
$62,146 16,420
$16,736 5,655
$4,550 1,158
Prestige Brands Holdings, Inc.
PBH
47.45
91.7%
2,502
1,515
22
3,995
761
259
The Procter & Gamble Company
PG
70.10
74.7%
190,192
30,350
11,612
208,930
76,279
18,007
Mean
88.5%
$55,027
$8,363
$2,705
$60,685
$20,560
Median
91.7%
$14,611
$2,191
$382
$16,420
$5,655
(19.3%)
4.6%
6.1%
44.2%
22.8%
28.3x
3.54x
15.5x
3.47x
14.9x
(4.0%) 2.6%
(0.6%) 1.1%
58.6% 43.6%
27.2% 20.5%
25.3x 24.9x
3.71x 2.90x
13.7x 14.2x
3.78x 2.87x
13.5x 13.3x
26.7%
15.6%
57.7%
34.1%
28.6x
5.25x
15.4x
5.02x
14.2x
(5.3%)
(2.4%)
49.9%
23.6%
22.9x
2.74x
11.6x
2.98x
11.8x
$4,948
4.9%
4.0%
50.8%
25.6%
26.0x
3.63x
14.1x
3.62x
13.5x
$1,158
2.6%
1.1%
49.9%
23.6%
25.3x
3.54x
14.2x
3.47x
13.5x
PAGE | 8
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
PUBLIC COMPARABLES Ticker
($ in m illions, except per share data)
Price at
As a % of
Market
9/17/15
52-wk High
Cap
Debt
Cash &
Enterprise
Equiv.
Value (EV)
Last Twelve Months (LTM) Revenue
EBITDA
Revenue Growth 1 Year
3 Years
LTM Margins Gross
EBITDA
LTM P/E Multiple
EV / LTM Revenue
EV / 2015E
EBITDA
Revenue
EBITDA
Housewares Fiskars Oyj Abp
FIS1V
21.32
84.6%
1,747
404
1,060
1,090
964
91
(9.2%)
0.8%
39.3%
9.4%
1.9x
1.13x
12.0x
0.79x
8.1x
Helen of Troy Limited Jarden Corp.
HELE JAH
92.74 53.11
92.4% 93.0%
2,654 11,210
439 5,026
15 730
3,078 15,506
1,479 8,317
206 844
11.6% 7.7%
6.9% 7.5%
42.2% 31.8%
13.9% 10.1%
19.8x 46.6x
2.08x 1.86x
14.9x 18.4x
2.03x 1.70x
13.1x 11.7x
Libbey Inc. Lifetime Brands, Inc.
LBY LCUT
34.73 13.64
82.6% 75.2%
759 191
452 131
31 5
1,179 317
852 591
112 39
2.1% 9.3%
1.2% 8.2%
23.6% 36.6%
13.2% 6.5%
15.4x NM
1.38x 0.54x
10.5x 8.2x
1.34x 0.52x
8.7x NA
Nacco Industries Inc.
NC
53.65
84.0%
373
179
19
533
909
10
(1.0%)
3.8%
20.5%
1.1%
NM
0.59x
52.8x
NA
NA
Newell Rubbermaid Inc. SEB SA
NW L SK
42.92 91.87
96.4% 86.5%
11,494 4,490
2,881 1,011
239 510
14,136 4,992
5,835 5,057
965 545
3.3% (11.1%)
0.7% (0.4%)
38.7% 11.7%
16.5% 10.8%
31.1x 20.1x
2.42x 0.99x
14.6x 9.2x
2.35x 0.91x
13.5x 8.1x
Spectrum Brands Holdings, Inc.
SPB
98.01
92.0%
5,833
4,346
107
10,072
4,561
685
3.9%
12.0%
35.6%
15.0%
31.2x
2.21x
14.7x
1.98x
10.8x
Tupperware Brands Corporation
TUP
52.52
71.4%
2,620
873
74
3,419
2,439
404
(8.2%)
(1.6%)
66.5%
16.6%
12.9x
1.40x
8.5x
1.47x
8.1x
Mean
85.8%
$4,137
$1,574
$279
$5,432
$3,100
$390
0.8%
3.9%
34.6%
11.3%
22.4x
1.46x
16.4x
1.45x
10.3x
Median
85.5%
$2,637
$663
$91
$3,248
$1,959
$305
2.7%
2.5%
36.1%
12.0%
19.9x
1.39x
13.3x
1.47x
9.8x
97.97
89.4%
5,118
586
244
5,460
2,966
444
7.6%
9.3%
41.3%
15.0%
23.7x
1.84x
12.3x
1.73x
11.1x
8.08
92.0%
81
0
8
72
88
11
9.6%
1.1%
27.3%
12.9%
13.7x
0.82x
6.4x
0.79x
6.0x
24.20 80.25
75.8% 95.1%
783 10,023
684 1,728
51 891
1,416 10,860
2,709 4,280
146 805
6.5% 2.9%
4.2% 0.9%
21.9% 52.8%
5.4% 18.8%
NM 24.4x
0.52x 2.54x
9.7x 13.5x
0.50x 2.41x
7.4x 12.0x
Infant & Juvenile Carter's, Inc.
CRI
Crown Crafts, Inc.
CRW S
Dorel Industries Inc. Hasbro Inc.
DII.B HAS
JAKKS Pacific, Inc.
JAKK
9.98
97.9%
193
215
110
298
849
65
29.5%
7.0%
29.4%
7.7%
9.8x
0.35x
4.5x
0.40x
5.2x
Mattel, Inc. Mothercare plc
MAT MTC
24.03 3.52
69.8% 76.2%
8,135 600
2,100 0
300 47
9,935 554
5,926 1,063
943 54
(6.4%) (11.9%)
(1.7%) (6.5%)
49.6% 15.3%
15.9% 5.1%
20.1x NM
1.68x 0.52x
10.5x 10.3x
1.73x 0.49x
11.2x 8.9x
Newell Rubbermaid Inc. The Children's Place, Inc.
NW L PLCE
42.92 59.53
96.4% 85.2%
11,494 1,209
2,881 30
239 205
14,136 1,034
5,835 1,738
965 135
3.3% (1.0%)
0.7% (0.1%)
38.7% 35.8%
16.5% 7.8%
31.1x 22.8x
2.42x 0.59x
14.6x 7.7x
2.35x 0.60x
13.5x 5.8x
Goodbaby International Holdings Limited
SEHK: 1086
0.45
87.2%
496
262
103
655
923
35
50.6%
18.7%
26.0%
3.8%
NM
0.71x
18.8x
0.66x
9.0x
Summer Infant, Inc.
SUMR
1.36
34.3%
25
58
1
81
207
3
4.1%
(5.3%)
31.1%
1.4%
NM
0.39x
28.2x
0.37x
6.0x
TOMY Company, Ltd.
TSE: 7867
5.18
73.6%
440
638
295
783
1,236
87
(19.0%)
35.2%
7.1%
NM
0.63x
9.0x
0.56x
8.0x
Mean
81.1%
$3,216
$765
$208
$3,774
$2,318
$308
6.5%
0.8%
33.7%
9.8%
20.8x
1.09x
12.1x
1.05x
8.7x
Median
86.2%
$692
$424
$158
$908
$1,487
$111
3.7%
0.8%
33.2%
7.7%
22.8x
0.67x
10.4x
0.63x
8.4x
3.97 22.89
80.8% 79.5%
1,517 4,489
322 389
31 180
1,808 4,698
1,256 976
167 191
5.4% NA
47.6% 39.4%
13.3% 19.6%
22.7x 44.1x
1.44x 4.82x
10.8x 24.6x
1.48x 4.35x
10.9x 22.7x
(16.6%)
Lawn, Garden, and Pet DuluxGroup Limited Blue Buffalo Pet Products, Inc.
ASX:DLX BUFF
Central Garden & Pet Company
CENT
$15.55
98.2%
$788
$400
$44
$1,145
$1,639
$136
2.5%
(0.8%)
29.8%
8.3%
23.9x
0.70x
8.4x
0.68x
8.5x
Freshpet, Inc. Oil-Dri Corp. of America
FRPT ODC
$10.44 23.81
40.3% 69.6%
$350 168
$0 19
$24 15
$326 172
$102 262
$2 23
38.1% (0.8%)
NA 3.3%
48.6% 21.3%
1.5% 8.7%
NM 25.3x
3.18x 0.66x
208.6x 7.6x
2.42x NA
15.3x NA
The Scotts Miracle-Gro Company Spectrum Brands Holdings, Inc.
SMG SPB
62.32 98.01
90.0% 92.0%
3,818 5,833
1,064 4,346
80 107
4,802 10,072
2,988 4,561
383 685
5.9% 3.9%
2.1% 12.0%
35.3% 35.6%
12.8% 15.0%
23.1x 31.2x
1.61x 2.21x
12.6x 14.7x
1.55x 1.98x
9.7x 10.8x
Maabarot Products Ltd.
TASE:MABR
11.64
92.1%
114
4
43
75
94
6
(10.2%)
2.5%
40.6%
6.2%
NM
0.79x
12.7x
NA
NA
Echo Trading Co., Ltd. Unicharm Corporation
TSE:7427 TSE:8113
5.29 18.72
91.4% 66.6%
32 11,250
26 228
30 964
28 10,514
599 5,961
3 994
(18.7%) 2.4%
13.1% 44.2%
0.5% 16.7%
20.0x 33.1x
0.05x 1.76x
9.2x 10.6x
NA 1.60x
NA 10.7x
The Toro Company
TTC
72.36
97.6%
3,966
387
110
4,242
2,324
342
8.6%
5.4%
34.9%
14.7%
21.8x
1.83x
12.4x
1.70x
10.7x
Mean
81.7% 90.0%
$2,939 $1,517
$653 $322
$148 $44
$3,444 $1,808
$1,887 $1,256
$266 $167
3.1% 2.5%
2.2% 3.3%
35.5% 35.6%
10.7% 12.8%
27.2x 23.9x
1.73x 1.61x
30.2x 12.4x
1.97x 1.65x
12.4x 10.8x
Median
(15.4%) 18.2%
(14.3%) 4.7%
PAGE | 9
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
PUBLIC COMPARABLES Ticker
($ in m illions, except per share data)
Price at
As a % of
Market
9/17/15
52-wk High
Cap
Debt
Cash &
Enterprise
Equiv.
Value (EV)
Last Twelve Months (LTM) Revenue
EBITDA
Revenue Growth 1 Year
3 Years
LTM Margins Gross
EBITDA
LTM P/E Multiple
EV / LTM Revenue
EV / 2015E
EBITDA
Revenue
EBITDA
Outdoor & Lifestyle Arctic Cat Inc.
ACAT
$25.12
63.2%
$326
$31
$20
$337
$689
$13
(8.5%)
3.5%
16.1%
1.9%
NM
0.49x
25.1x
0.48x
Brunswick Corporation
BC
50.23
88.7%
4,619
452
611
4,459
3,998
468
10.5%
3.5%
26.8%
11.7%
21.4x
1.12x
9.5x
1.04x
7.9x
Black Diamond, Inc. Columbia Sportswear Company
BDE COLM
7.19 65.66
66.9% 87.9%
236 4,616
22 16
44 417
213 4,214
200 2,211
5 278
12.7% 22.6%
8.4% 8.8%
39.0% 45.8%
2.5% 12.6%
NM 33.1x
1.07x 1.91x
NM 15.2x
1.00x 1.75x
20.2x 13.5x
Callaway Golf Co.
ELY
8.76
85.9%
688
153
27
814
818
33
(8.0%)
(2.9%)
40.5%
4.0%
NM
1.00x
NM
0.93x
15.0x
Escalade Inc. Fox Factory Holding Corp
ESCA FOXF
17.77 15.18
88.9% 87.5%
251 561
13 69
3 6
261 623
149 329
21 50
10.3% 13.5%
2.7% 24.4%
29.8% 30.3%
14.3% 15.3%
16.8x 27.6x
1.75x 1.89x
12.2x 12.4x
1.63x 1.68x
11.4x
GoPro, Inc.
GPRO
35.73
36.3%
4,747
0
517
4,230
1,697
277
64.1%
NA
46.3%
16.3%
32.0x
2.49x
15.3x
2.04x
10.3x
Amer Sports Corp. Rapala VMC Corp.
HLSE: AMEAS HLSE: RAP1V
26.13
87.3% 84.4%
3,067
3,675
2,660
262
17
342
316
29
(9.4%) (15.8%)
2.3% (4.0%)
44.4% 50.5%
9.8% 9.3%
41.9x 21.2x
1.38x 1.08x
14.0x 11.6x
1.23x 1.03x
11.7x
214
731 145
122
5.59
Harley-Dav idson, Inc.
HOG
55.96
79.5%
11,491
6,227
881
16,836
5,999
1,381
(4.2%)
1.5%
37.1%
23.0%
15.0x
2.81x
12.2x
2.95x
11.3x
Johnson Outdoors Inc. Malibu Boats, Inc.
JOUT MBUU
24.22 16.05
68.6% 66.5%
241 287
8 79
54
195 357
430 229
25 38
2.8% 19.7%
1.2%
8
40.0% 26.8%
5.8% 16.5%
27.3x 17.3x
0.45x 1.56x
7.8x 9.5x
0.44x 1.40x
NA 7.2x
Marine Products Corp.
MPX
6.47
72.0%
248
0
18
230
186
17
4.5%
13.6%
20.1%
8.9%
21.2x
1.24x
NM
1.12x
11.4x
Nautilus Inc. Polaris Industries Inc.
NLS PII
16.18 131.23
70.5% 82.4%
511 8,681
0 403
87 119
423 8,965
310 4,804
44 890
27.1% 16.1%
18.1% 17.4%
52.2% 29.9%
14.3% 18.5%
19.7x 19.2x
1.37x 1.87x
9.6x 10.1x
1.23x 1.71x
8.5x 8.8x
Sturm, Ruger & Co. Inc.
RGR
63.06
95.4%
1,179
0
61
1,118
499
113
(26.3%)
7.1%
29.5%
22.6%
49.0x
2.24x
9.9x
1.97x
8.7x
Smith & W esson Holding Corporation
SW HC
18.73
97.5%
1,018
177
55
1,140
568
133
(3.4%)
7.6%
36.8%
23.4%
20.8x
2.01x
8.6x
1.81x
7.2x
Shimano Inc. Vista Outdoor Inc.
TSE: 7309 VSTO
142.83
13,241
11,897 3,129
783 289
5.1% (2.2%)
40.0% 25.8%
25.6% 14.2%
23.9x 41.3x
3.90x 1.54x
15.2x 10.8x
3.82x 1.38x
14.4x
184
3,053 2,032
0.8%
2,967
89 346
1,433
46.96
89.2% 95.3%
Mean
79.7%
$2,959
$448
$234
$3,173
$1,559
$257
6.6%
6.7%
35.4%
13.5%
26.4x
1.66x
12.3x
1.53x
10.7x
Median
85.2%
$853
$74
$58
$966
$629
$82
4.8%
3.5%
36.9%
14.2%
21.4x
1.55x
11.6x
1.39x
9.5x
3.90 78.11
29.1% 85.2%
1,698 29,128
2,585 1,637
729 1,525
3,553 29,240
8,097 10,780
691 2,016
(13.5%)
(9.4%)
(1.7%)
3.5%
61.2% 80.5%
8.5% 18.7%
NM 27.7x
0.44x 2.71x
5.1x 14.5x
0.49x 2.59x
5.8x 13.2x
(7.8%)
7.2%
51.5%
12.7%
17.8x
1.34x
10.6x
1.34x
8.3x
2.1%
(3.0%)
34.9%
22.8%
NM
2.40x
10.5x
2.45x
11.1x
NA
NA
7.9x
9.3x
9.0x
9.5x
Personal Care Products Av on Products Inc. The Estée Lauder Companies Inc.
AVP EL
Herbalife Ltd.
HLF
57.50
92.8%
5,318
1,683
750
6,251
4,658
590
Kimberly-Clark Corporation
KMB
107.26
90.1%
39,072
7,671
603
46,140
19,218
4,375
Medifast Inc. Nu Skin Enterprises Inc.
MED NUS
28.56 44.51
83.4% 70.8%
343 2,572
0 252
65 304
279 2,520
277 2,352
40 401
(2.8%) (28.4%)
(5.5%)
73.2% 81.7%
14.6% 17.0%
19.3x 13.7x
1.01x 1.07x
6.9x 6.3x
0.99x 1.00x
6.9x
5.9%
The Procter & Gamble Company
PG
70.10
74.7%
190,192
30,350
11,612
208,930
76,279
18,007
(5.3%)
(2.4%)
49.9%
23.6%
22.9x
2.74x
11.6x
2.98x
11.8x
Elizabeth Arden, Inc. Rev lon, Inc.
RDEN REV
10.25 31.29
47.3% 75.1%
306 1,641
364 1,848
60 199
610 3,290
971 1,894
(28) 307
(16.6%) 5.7%
(7.8%) 11.0%
42.2% 66.2%
NM 16.2%
NM 39.3x
0.63x 1.74x
NM 10.7x
0.60x NA
11.7x NA
Sally Beauty Holdings Inc.
SBH
26.42
74.9%
4,155
1,810
239
5,726
3,814
594
2.7%
3.1%
49.6%
15.6%
17.3x
1.50x
9.6x
1.45x
9.3x
ULTA Salon, Cosmetics & Fragrance, Inc.
164.72 142.52
93.2% 82.0%
10,532
475 151
3,538 872
19.4%
21.9% 13.0%
35.1%
1,674
604 139
20.6%
1,825
0 0
10,057
USANA Health Sciences Inc.
ULTA USNA
82.7%
17.1% 16.0%
36.9x 21.7x
2.84x 1.92x
16.7x 12.0x
2.44x 1.75x
14.2x 10.4x
All for One Steeb AG
XTRA:A1OS
$63.20
90.2%
$315
$42
$41
$317
$265
$30
(8.3%)
16.1%
24.6%
11.1%
22.6x
1.19x
10.7x
1.17x
11.3x
Mean
76.1%
$22,084
$3,711
$1,289
$24,506
$10,232
$2,136
(2.6%)
4.1%
56.4%
16.2%
23.9x
1.66x
10.4x
1.60x
10.0x
Median
82.0%
$2,572
$1,637
$304
$3,553
$3,538
$590
(2.8%)
3.5%
51.5%
16.1%
22.1x
1.50x
10.7x
1.40x
10.8x
6.0x
PAGE | 10
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
PUBLIC COMPARABLES Ticker
($ in m illions, except per share data)
Price at
As a % of
Market
9/17/15
52-wk High
Cap
Debt
Cash &
Enterprise
Equiv.
Value (EV)
Last Twelve Months (LTM) Revenue
EBITDA
Revenue Growth 1 Year
3 Years
LTM Margins Gross
LTM P/E
EBITDA
Multiple
EV / LTM Revenue
EV / 2015E
EBITDA
Revenue
EBITDA
Retail Apparel & Footwear Retail American Eagle Outfitters, Inc.
AEO
15.71
85.0%
3,070
0
327
2,743
3,423
427
Abercrombie & Fitch Co.
ANF
$21.42
51.7%
$1,478
$340
$408
$1,410
$3,558
$342
Aéropostale, Inc.
ARO
0.82
18.7%
65
143
87
121
1,692
(79)
Ascena Retail Group Inc.
ASNA
13.38
76.1%
2,169
116
241
2,044
4,803
311
The Buckle, Inc. Cabela's Incorporated
BKE CAB
39.21 49.33
69.9% 80.0%
1,885 3,469
0 3,999
142
1,743 7,407
1,153 3,824
Caleres, Inc. The Cato Corporation
CAL CATO
32.44 34.20
95.9% 76.2%
1,418
239
2,585
0
129 284
1,528
939
655
Chico's FAS Inc.
CHS
17.00
89.6%
2,368
97
157
Citi Trends, Inc. Destination Maternity Corporation
CTRN DEST
24.82 10.13
86.5% 54.6%
386 140
0 34
79
DSW Inc. Destination XL Group, Inc.
DSW DXLG
28.75
2,551
6.40
72.6% 95.5%
Express Inc.
EXPR
19.54
94.3%
Finish Line Inc.
FINL FL
25.45 73.36
80.1%
Guess? Inc.
GCO GES
The Gap, Inc. L Brands, Inc. Lululemon Athletica Inc. The Men's W earhouse, Inc.
5.1%
1.3%
44.5%
12.5%
21.7x
0.80x
6.4x
0.78x
5.6x
(6.0%) (10.8%)
61.0%
9.6%
NM
0.40x
4.1x
0.40x
4.5x
30.4%
NM
NM
0.07x
NM
0.08x
NM
0.3%
12.7%
55.6%
6.5%
NM
0.43x
6.6x
0.28x
3.0x
281 453
1.8% 8.4%
1.9% 9.5%
49.7% 43.4%
24.4% 11.9%
12.0x 17.7x
1.51x 1.94x
6.2x 16.3x
1.48x 1.73x
6.1x 14.5x
177 113
2.2% 4.4%
1.0% 2.1%
40.6% 39.0%
6.8% 11.4%
16.6x 15.5x
0.59x 0.66x
8.6x 5.8x
0.57x 0.65x
7.6x
991
2,308
2,696
303
3.0%
4.0%
53.9%
11.2%
NM
0.86x
7.6x
0.85x
7.2x
307 172
687 494
40 (54)
8.0% (5.7%)
1.8% (3.1%)
38.4% 39.6%
5.8%
26.9x
0.43x
6.2x
NM
NM
0.45x 0.35x
7.6x
2
NM
NA
NA
292
2,260
2,593
336
372
432
31
7.0% 2.9%
38.3% 47.0%
15.5x
6
8.4% 9.2%
13.0%
314
0 64
7.2%
NM
0.87x 0.86x
6.7x 12.1x
0.82x 0.82x
6.6x 12.9x
1,655
70
156
1,570
2,261
259
4.6%
2.3%
42.5%
11.4%
18.3x
0.69x
6.1x
0.65x
5.5x
0 132
82 970
1,060 9,387
1,857
10.2% 7.5%
8.9% 14.1%
0.57x
4.8%
39.1% 42.2%
14.5x
7,253
166 1,023
7.6%
97.9%
1,142 10,225
18.5x
1.29x
6.4x 9.2x
0.55x 1.23x
6.0x 8.4x
59.90 23.06
72.3%
1,425
113
236
5.7% (4.2%)
48.7% 36.3%
8.4% 10.2%
0.51x
2,312
8.5% (8.0%)
14.5x
7
1,489 1,514
246
1,978
49 471
2,932
97.1%
20.4x
0.65x
6.1x 6.4x
0.49x 0.69x
5.5x 7.5x
GPS
32.00
72.1%
13,016
1,348
1,043
13,321
16,235
2,402
(0.4%)
2.8%
37.5%
14.8%
12.1x
0.82x
5.5x
0.81x
5.4x
LB LULU
92.70 54.65
96.8% 78.1%
26,918
4,759
30,847
11,665
2,459
7,681
0
830 541
7,140
1,898
432
5.5% 13.3%
4.4% 17.5%
47.4% 49.5%
21.1% 22.7%
24.0x 29.1x
2.64x 3.76x
12.5x 16.5x
2.50x 3.29x
11.9x 15.1x
47.60
1,656
3,624
354
37.1%
14.8%
14
122
937
20
0.3%
(0.3%)
42.9% 37.7%
9.8% 2.2%
NM NM
1.07x 0.13x
11.0x
168
73 60
3,885
2.62
71.9% 80.0%
2,302
New York & Company Inc.
MW NW Y
6.0x
1.05x 0.13x
7.8x 3.4x
The Children's Place, Inc.
PLCE
59.53
85.2%
1,209
30
205
1,034
1,738
135
(1.0%)
(0.1%)
35.8%
7.8%
22.8x
0.59x
7.7x
0.60x
5.8x
Pacific Sunwear of California Inc. Ross Stores Inc.
PSUN ROST
0.37 49.75
12.0% 87.8%
26 20,302
101 396
14 631
113 20,066
806 11,538
1 1,831
0.2% 9.4%
1.8% 8.1%
43.4% 32.3%
0.1% 15.9%
NM 20.9x
0.14x 1.74x
NM 11.0x
0.14x 1.64x
75.4x 10.3x
Shoe Carniv al Inc. Stein Mart Inc.
SCVL
25.21 10.29
84.0% 61.8%
516 470
0 170
40
477 629
963 1,356
70 81
7.7% 6.1%
6.3% 4.6%
29.4% 29.2%
7.3% 6.0%
17.4x 16.4x
0.50x 0.46x
6.8x 7.8x
0.47x
6.5x
12
0.44x
6.9x
Stage Stores Inc. Urban Outfitters Inc.
SSI URBN
10.58
339 3,756
90 115
24 266
405 3,604
1,639 3,432
127 491
2.7% 8.0%
1.7%
27.3%
9.9%
41.9%
7.7% 14.3%
10.8x 17.7x
0.25x 1.05x
3.2x
30.30
45.5% 64.1%
7.3x
0.25x 0.98x
2.9x 6.3x
Zumiez, Inc.
ZUMZ
Foot Locker, Inc. Genesco Inc.
SMRT
61
(12.0%) (14.4%)
NA
14.88
36.6%
397
5
81
321
829
103
9.5%
11.2%
35.0%
12.4%
11.1x
0.39x
3.1x
0.38x
3.8x
Mean Median
73.2% 78.1%
$3,670 $1,478
$453 $90
$250 $142
$3,873 $1,514
$3,297 $2,261
$423 $246
4.3% 4.8%
4.1% 2.9%
41.3% 40.6%
10.9% 10.2%
17.9x 17.6x
0.87x 0.65x
7.9x 6.8x
0.84x 0.65x
9.6x 6.4x
Department Chains Bon-Ton Stores Inc.
BONT
$4.41
45.0%
$104
$978
$21
$1,061
$2,820
$143
0.7%
(1.4%)
37.0%
5.1%
NM
0.38x
7.4x
0.37x
7.3x
Dillard's Inc. J. C. Penney Company, Inc.
DDS JCP
93.45
3,623 3,027
830 5,309
175 973
4,278 7,363
6,843 12,389
801 499
2.3% 1.9%
1.5% (7.4%)
36.6% 35.8%
11.7%
11.8x
9.91
64.8% 89.8%
4.0%
NM
0.63x 0.59x
5.3x 14.8x
0.64x 0.57x
5.4x 9.6x
Nordstrom Inc.
JW N
74.30
89.3%
13,986
3,141
423
16,704
14,099
1,881
9.1%
7.4%
37.3%
13.3%
19.7x
1.18x
8.9x
1.12x
8.5x
Kohl's Corp. Macy's, Inc.
KSS M
51.85 57.28
65.1% 77.8%
10,085 18,959
5,046 7,264
934 843
14,197 25,380
19,101 27,895
2,569 3,759
1.3% (0.5%)
0.5% 1.3%
36.4% 39.9%
13.4% 13.5%
13.6x 14.1x
0.74x 0.91x
5.5x 6.8x
0.73x 0.90x
5.4x 6.4x
Stage Stores Inc. Hudson's Bay Company
SSI TSX: HBC
10.58 16.85
45.5% 75.3%
339 3,068
90 1,973
24 45
405 4,997
1,639 6,651
127 401
2.7% 3.5%
1.7% 19.2%
27.3% 40.7%
7.7% 6.0%
10.8x 36.4x
0.25x 0.75x
3.2x 12.5x
0.25x 0.57x
2.9x 8.3x
Mean
69.1%
$6,649
$3,079
$430
$9,298
$11,430
$1,272
2.6%
2.8%
36.4%
9.4%
17.7x
0.68x
8.0x
0.64x
6.7x
Median
70.2%
$3,346
$2,557
$299
$6,180
$9,616
$650
2.1%
1.4%
36.8%
9.7%
13.8x
0.68x
7.1x
0.60x
6.8x
PAGE | 11
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
PUBLIC COMPARABLES ($ in m illions, except per share data) Discount Stores & Mass Merchants Big Lots Inc. Costco W holesale Corporation CVS Health Corporation Dollar General Corporation Dollar Tree, Inc. Macy's, Inc. Gordmans Stores, Inc. PriceSmart Inc. Rite Aid Corporation Target Corp. The TJX Companies, Inc. Tuesday Morning Corporation W algreens Boots Alliance, Inc. W al-Mart Stores Inc.
Furniture & Furnishings Retailers Aaron's, Inc. Bed Bath & Beyond Inc. Conns Inc. Ethan Allen Interiors Inc. hhgregg, Inc. Hav erty Furniture Companies Inc. Kirkland's Inc. La-Z-Boy Incorporated Pier 1 Imports, Inc. Rent-A-Center, Inc. Restoration Hardware Holdings, Inc. Select Comfort Corporation The Sherwin-W illiams Company W illiams-Sonoma Inc.
Ticker BIG COST CVS DG DLTR FDO GMAN PSMT RAD TGT TJX TUES W BA W MT
AAN BBBY CONN ETH HGG HVT KIRK LZB PIR RCII RH SCSS SHW W SM
Price at
As a % of
Market
9/17/15
52-wk High
Cap
Debt
Cash &
Enterprise
Equiv.
Value (EV)
Last Twelve Months (LTM) Revenue
EBITDA
Revenue Growth 1 Year
3 Years
LTM Margins Gross
EBITDA
LTM P/E Multiple
EV / LTM Revenue
EV / 2015E
EBITDA
Revenue
EBITDA
45.57 143.61 101.54 71.01 67.71 56.98 3.24 82.66 8.59 78.50 71.57 7.58 90.91 64.69
88.1% 91.6% 89.4% 87.2% 80.4% 74.5% 36.3% 79.8% 91.8% 91.5% 93.0% 33.1% 93.4% 71.1%
2,259 63,115 113,522 20,924 15,893 0 64 2,495 8,718 49,332 48,265 334 99,299 207,392
223 6,026 13,145 2,863 8,349 7,264 61 103 7,444 12,740 1,624 0 16,247 49,691
57 6,805 1,404 181 1,307 843 10 150 153 2,767 2,238 45 4,533 5,751
2,425 62,336 125,263 23,606 22,935 6,421 115 2,448 16,010 59,305 47,650 289 111,013 251,332
5,191 115,944 145,577 19,678 9,759 27,895 649 2,726 27,853 73,550 29,899 906 93,979 485,621
349 4,656 10,920 2,229 1,329 3,759 19 180 1,274 7,353 4,277 25 6,395 35,267
0.7% 5.8% 10.2% 8.6% 19.7% (0.5%) 0.8% 9.9% 7.4% 3.5% 6.0% 4.8% 24.8% 1.1%
(0.8%) 6.8% 7.7% 8.0% 11.9% 1.3% 3.4% 11.3% 2.1% 1.0% 7.2% 3.7% 9.0% 1.8%
39.7% 12.9% 17.6% 30.9% 39.5% 39.9% 41.5% 16.1% 27.5% 29.7% 28.8% 36.0% 26.7% 24.9%
6.7% 4.0% 7.5% 11.3% 13.6% 13.5% 2.9% 6.6% 4.6% 10.0% 14.3% 2.7% 6.8% 7.3%
17.3x 27.5x 24.5x 19.0x 45.3x NA NM 28.2x 4.4x 17.2x 21.9x 32.0x 23.3x 13.5x
0.47x 0.54x 0.86x 1.20x 2.35x 0.23x 0.18x 0.90x 0.57x 0.81x 1.59x 0.32x 1.18x 0.52x
6.9x 13.4x 11.5x 10.6x 17.3x 1.7x 6.2x 13.6x 12.6x 8.1x 11.1x NM 17.4x 7.1x
0.46x 0.51x 0.79x 1.11x 1.12x 0.23x 0.17x 0.82x 0.48x 0.79x 1.50x 0.31x 0.94x 0.51x
6.2x 12.7x 10.2x 9.5x 9.8x 1.6x 5.2x 12.4x 10.6x 8.0x 10.8x 10.1x 12.4x 7.2x
Mean Median
78.7% 87.6%
$45,115 $18,408
$8,984 $6,645
$1,875 $1,075
$52,225 $23,271
$74,230 $27,874
$5,574 $2,994
7.3% 5.9%
5.3% 5.3%
29.4% 29.2%
8.0% 7.0%
22.9x 22.6x
0.84x 0.69x
10.6x 11.1x
0.70x 0.65x
9.0x 10.0x
$38.96 62.14 27.65 30.32 6.06 23.59 22.37 27.75 10.01 26.97 99.60 22.56 250.63 76.47
97.3% 78.0% 62.9% 92.9% 73.7% 90.7% 75.8% 95.7% 57.1% 71.9% 94.0% 63.1% 85.1% 85.6%
$2,828 10,539 1,010 861 168 535 387 1,403 885 1,431 4,004 1,160 23,361 6,939
$495 1,500 812 78 0 54 0 1 206 956 719 0 2,285 150
$91 692 7 78 10 73 49 99 97 71 455 88 75 120
$3,231 11,347 1,815 860 158 515 338 1,305 994 2,317 4,268 1,071 25,572 6,969
$3,068 11,963 1,558 755 2,098 791 529 1,440 1,879 3,254 1,997 1,271 11,302 4,843
$430 1,771 96 85 (8) 72 48 130 172 286 230 166 1,578 657
31.2% 3.6% 14.5% 1.1% (8.2%) 6.0% 11.7% 4.4% 4.6% 4.6% 19.7% 26.3% 5.5% 6.9%
12.9% 7.6% 23.8% 1.1% (6.3%) 7.4% 6.8% 4.7% 6.4% 2.4% 24.0% 14.1% 6.9% 8.2%
51.1% 38.7% 27.3% 54.5% 28.6% 53.5% 48.8% 35.9% 39.7% 67.0% 37.2% 61.3% 47.2% 38.2%
14.0% 14.8% 6.2% 11.3% NM 9.1% 9.1% 9.0% 9.1% 8.8% 11.5% 13.1% 14.0% 13.6%
23.3x 12.1x 22.9x 23.9x NM NM 23.5x 20.5x 13.4x 14.1x 42.2x 14.7x 25.6x 23.1x
1.05x 0.95x 1.16x 1.14x 0.08x 0.65x 0.64x 0.91x 0.53x 0.71x 2.14x 0.84x 2.26x 1.44x
7.5x 6.4x 18.8x 10.1x NM 7.2x 7.0x 10.0x 5.8x 8.1x 18.5x 6.5x 16.2x 10.6x
0.96x 0.92x 0.99x 1.09x 0.08x 0.61x 0.57x 0.84x 0.51x 0.69x 1.82x 0.80x 2.13x 1.35x
8.5x 6.6x 8.7x 8.6x 12.7x 6.4x 5.8x 8.4x 5.2x 6.7x 14.0x 6.1x 13.7x 9.7x
Mean Median
80.3% 81.6%
$3,965 $1,281
$518 $178
$143 $83
$4,340 $1,560
$3,339 $1,938
$408 $169
9.4% 5.8%
8.6% 7.1%
44.9% 43.5%
11.0% 11.3%
21.6x 23.0x
1.04x 0.93x
10.2x 8.1x
0.95x 0.88x
8.6x 8.4x
PAGE | 12
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
PUBLIC COMPARABLES ($ in m illions, except per share data) Internet Retail Amazon.com Inc. Alibaba Group Holding Limited Cimpress N.V. eBay Inc. Mercadolibre, Inc. Blue Nile Inc. Ov erstock.com Inc. The Priceline Group Inc. Shutterfly, Inc. Stamps.com Inc. Rakuten, Inc. W ayfair Inc.
Specialty & Other Retail Best Buy Co., Inc. Big 5 Sporting Goods Corp. Barnes & Noble, Inc. Dick's Sporting Goods Inc. The Home Depot, Inc. Hibbett Sports, Inc. Marinemax Inc. Lumber Liquidators Holdings, Inc. Lowe's Companies Inc. Mov ado Group, Inc. Office Depot, Inc. Staples, Inc. Tiffany & Co. Tractor Supply Company Vitamin Shoppe, Inc.
Ticker AMZN BABA CMPR EBAY MELI NILE OSTK PCLN SFLY STMP TSE: 4755 W
BBY BGFV BKS DKS HD HIBB HZO LL LOW MOV ODP SPLS TIF TSCO VSI
Price at
As a % of
Market
9/17/15
52-wk High
Cap
527.39 $67.23 75.60 26.74 109.28 33.47 19.48 1,320.48 38.55 81.29 12.54 33.56
Debt
Cash &
Enterprise
Equiv.
Value (EV)
Last Twelve Months (LTM) Revenue
EBITDA
Revenue Growth 1 Year
3 Years
LTM Margins Gross
EBITDA
LTM P/E Multiple
EV / LTM Revenue
EV / 2015E
EBITDA
Revenue
EBITDA
90.8% 246,666 56.0% $168,911 82.4% 2,453 40.1% 32,575 71.2% 4,825 89.3% 385 71.4% 474 96.2% 66,950 75.9% 1,397 91.5% 1,340 63.3% 17,859 59.0% 2,813
17,953 $8,504 653 7,622 288 1 2 5,400 376 2 5,988 0
14,001 $18,995 110 10,554 338 40 105 3,188 190 84 6,731 288
250,618 $158,420 2,995 29,643 4,776 346 370 69,162 1,583 1,258 17,117 2,525
95,808 $13,012 1,494 18,351 612 483 1,610 8,798 969 172 5,347 1,661
5,726 $4,259 203 5,167 189 16 24 3,266 90 42 1,243 (125)
17.2% 40.7% 17.6% 11.1% 21.2% 6.2% 17.3% 16.1% 16.8% 31.2% (2.3%) 50.1%
20.8% NA 13.6% 12.1% 21.5% 10.2% 15.1% 22.3% 22.2% 16.6% 2.0% NA
31.3% 67.8% 61.9% 67.4% 77.2% 18.5% 18.7% 91.4% 50.0% 78.3% 17.0% 24.1%
6.0% 32.7% 13.6% 28.2% 30.9% 3.4% 1.5% 37.1% 9.2% 24.5% 23.2% NM
NM 24.9x 27.7x 11.2x NM 39.6x NM 29.4x NM NM 26.8x NM
2.62x 12.18x 2.00x 1.62x 7.81x 0.72x 0.23x 7.86x 1.63x 7.31x 3.20x 1.52x
43.8x 37.2x NM 5.7x NM 21.1x 15.3x 21.2x 17.7x 29.9x 13.8x NM
2.17x 9.83x 1.78x 3.36x 7.10x 0.68x 0.20x 6.94x 1.44x 5.77x 2.80x 1.11x
20.7x 19.6x 12.0x 8.4x 24.0x 13.9x 7.6x 17.6x 8.0x 17.7x 12.4x NM
Mean Median
73.9% 73.7%
$45,554 $3,819
$3,899 $514
$4,552 $313
$44,901 $3,886
$12,360 $1,635
$1,675 $196
20.3% 17.2%
15.6% 15.8%
50.3% 56.0%
19.1% 23.2%
26.6x 27.3x
4.06x 2.31x
22.8x 21.1x
3.60x 2.49x
14.7x 13.9x
38.96 11.50 $13.04 51.92 117.82 39.67 15.20 16.47 70.07 27.39 7.48 13.91 81.44 87.96 34.37
92.8% 74.3% 45.0% 86.1% 95.2% 71.2% 53.0% 23.5% 91.9% 69.4% 76.6% 71.7% 73.6% 91.4% 70.1%
13,425 255 $994 6,156 151,293 945 388 446 64,831 635 4,100 8,952 10,501 11,947 1,014
1,609 75 $0 6 19,375 3 137 20 11,359 40 1,536 1,108 1,075 9 18
3,495 7 $37 123 4,936 85 47 45 1,089 188 867 611 771 56 3
11,539 323 $957 6,039 165,732 863 478 421 75,101 487 4,769 9,449 10,805 11,899 1,028
40,327 999 $6,051 7,075 85,398 927 726 1,046 57,700 588 15,219 21,816 4,198 6,048 1,258
2,187 50 $299 761 12,693 130 33 48 6,713 81 642 1,388 1,021 758 140
3.1% 3.1% (3.8%) 9.3% 5.9% 5.1% 19.0% 2.3% 5.6% 0.3% 6.4% (4.6%) (0.4%) 12.2% 10.1%
(1.6%) 3.3% (5.5%) 8.7% 6.0% 6.2% 12.7% 12.0% 4.3% 6.5% 10.8% (3.5%) 4.2% 10.1% 11.1%
22.7% 31.9% 30.6% 30.6% 34.8% 35.5% 24.7% 34.9% 34.8% 52.6% 23.8% 26.1% 59.9% 34.3% 41.8%
5.4% 5.0% 4.9% 10.8% 14.9% 14.0% 4.5% 4.6% 11.6% 13.7% 4.2% 6.4% 24.3% 12.5% 11.1%
16.4x 16.9x NM 17.3x 23.0x 14.0x 18.6x NM 23.8x 14.2x NM NM 23.7x 30.3x 18.2x
0.29x 0.32x 0.16x 0.85x 1.94x 0.93x 0.66x 0.40x 1.30x 0.83x 0.31x 0.43x 2.57x 1.97x 0.82x
5.3x 6.5x NM 7.9x 13.1x 6.6x 14.6x 8.8x 11.2x 6.0x 7.4x 6.8x 10.6x 15.7x 7.4x
0.29x 0.32x 0.23x 0.78x 1.83x 0.87x 0.59x 0.39x 1.25x 0.81x 0.33x 0.44x 2.44x 1.79x 0.78x
5.1x 6.1x 4.4x 7.1x 11.6x 6.3x 9.8x 65.0x 10.1x 5.7x 5.7x 5.7x 9.9x 14.2x 7.2x
Mean Median
72.4% 73.6%
$18,392 $4,100
$2,425 $75
$824 $123
$19,993 $4,769
$16,625 $6,048
$1,796 $642
4.9% 5.1%
5.7% 6.2%
34.6% 34.3%
9.9% 10.8%
19.7x 18.2x
0.92x 0.82x
9.1x 7.7x
0.88x 0.78x
11.6x 7.1x
PAGE | 13
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
M&A TRANSACTIONS RECENT NORTH AMERICAN CONSUMER M&A Private Equity Announced 9/8/2015 9/8/2015 9/8/2015 9/7/2015 9/2/2015 9/1/2015 9/1/2015 8/31/2015 8/31/2015 8/30/2015 8/27/2015 8/26/2015 8/25/2015 8/25/2015 8/24/2015 8/23/2015 8/21/2015 8/19/2015 8/18/2015 8/16/2015 8/14/2015 8/11/2015 8/11/2015 8/10/2015 8/10/2015 8/6/2015 8/5/2015 8/4/2015 8/3/2015 8/2/2015 8/1/2015 7/31/2015 7/31/2015 7/29/2015 7/29/2015 7/28/2015 7/27/2015 7/23/2015 7/22/2015 7/22/2015 7/21/2015 7/20/2015 7/20/2015 7/19/2015 7/17/2015 7/17/2015 7/15/2015 7/15/2015 7/13/2015 7/13/2015 7/13/2015 7/13/2015 7/11/2015 7/9/2015 7/9/2015 7/9/2015 7/8/2015 7/8/2015 7/8/2015 7/6/2015 7/3/2015 7/2/2015 7/2/2015 7/1/2015 7/1/2015 7/1/2015 6/30/2015 6/30/2015 6/29/2015 6/26/2015 6/26/2015 6/25/2015 6/24/2015 6/24/2015 6/24/2015 6/24/2015
Target Joe's Jeans Inc. Robert Graham Designs, LLC CHART Metalworks, Inc. Sun & Skin Care Research, LLC California Scents, Inc. Industrial Blades Division ACE Theatrical Group, LLC Backyard Leisure Holdings, LLC Hollywood Fashion Tape, Inc. Blyth, Inc. 3rd Ave. Studio Vintage Blades LLC Glen Plaid LLC Hartcraft, Ltd. Cyberswim, Inc. Belk Inc. Bob Mickler's, Inc. The Beachcombers International Inc. FULLBEAUTY Brands, Inc. zulily, Inc. Canwest Bedding Ltd. Zirtual Inc. The Paradies Shops, Inc. Of a Kind, Inc. Marvins Building Materials Inc. Lemon Tree, K.K. Avery Outdoors, Inc. Shoe Sensation, Inc. Latham Pool Products, Inc. SC Pool & Spa Works & others Country Home Products, Inc. Infinity Technology & Entertainment Inc. Coyne International Enterprises Corp. Onix Sports, Inc. F2Z USA Corp. Kanata Blanket Company Good Vibrations Shoes Inc. No Limit Archery, LLC Deal Genius, LLC Creery Custom, Inc. Globox Rentals, Inc. Jimmy Styks, LLC Minno Inc Loomworks Apparel, Inc. Ben Sherman Limited and Clothing LLC Duffy's Brew LLC Comark Inc. KidKraft, L.P. Starplex Operating LP Chatters Canada Limited Qponix LLC Councill Company, LLC WNA, Inc. Sports One Inc. Knowledge Universe Education LLC Puremco Fun & Games, Inc. 43 Beauty Brands SCIFIT Systems, Inc. Morton's Ace Hardware Artissimo Designs Inc. Santa Cruz Bicycles, Inc. Spot It!/Dobble Game Murad, Inc. Backcountry.com, Inc. Advanced Beauty Systems, Inc. Crappie Pro Kelley's Termite And Pest Control, Inc. Northwest Carpets Inc. Gaspard & Sons Ltd. The Wigglebutt Inn, Inc. Kadel's Auto Body, LLC Foundation Partners Group, LLC Alarm Associates, Inc. Player's Bench Corporation Dermalogica, Inc. By George
Seller Joe's Jeans Inc. Tengram Capital Partners, LLC CapitalSouth Growth Fund; Source Capital, LLC Edgewell Personal Care Company Baird Capital Partners Ropart Asset Management Funds and others John M. Belk Educational Endowment and others Charlesbank Capital & Webster Capital MeriTech Capital Partners and others Mayfield Fund, VegasTechFund, others Freeman Spogli & Co. Incorporated Collaborative Fund Consumer Growth and Palisade Capital Littlejohn & Co. LLC VivoPools, Inc. Western Technology, Felicis Ventures, others Oxford Industries Inc. KarpReilly LLC Olympus Partners Knowledge Universe Holdings, LLC The Procter & Gamble Company Huron Capital Partners, LLC Liberty Interactive Corporation Ironbridge Equity Partners Limited Midwest Mezzanine Funds; KCB Management Sterling Partners -
Buyer Sequential Brands Group, Inc. Joe's Jeans Inc. Sea Bags, Inc. American Covers Inc. AccuTec Blades, Inc. The Ambassador Theatre Group Limited American International Industries The Carlyle Group LP Centennial Brands Inc. The Grooming Network Collegiate Originals Apparel, Inc. Plano Synergy Holdings, Inc. Alphagility, LLC Sycamore Partners KB Howell Enterprises, LLC Apax Partners LLP QVC, Inc. SSH Bedding Canada Co. Startups.co Lagardère Travel Retail SAS Bed Bath & Beyond Inc. Central Network Retail Group, LLC Left Hand Studios LLC Banded Holdings Inc. J.W. Childs Associates, L.P. Wynnchurch Capital, Ltd. Poolwerx USA LLC Generac Holdings Inc. Vernon Communications Cooperative NXT Capital, LLC Escalade Sports, Inc. F2Z Entertainment Inc. Pro Towels Vindai Corporation Plano Synergy Holdings, Inc. Hilco Merchant Resources LLC Ledbury Inc. Alps Innovations Group, Inc. Vista Outdoor Inc. eBay Inc. Delta Galil USA Inc. Marquee Brands LLC Pacific West Commercial Corporation MidOcean Partners AMC Entertainment Holdings, Inc. ONCAP Meredith Corporation Kindel Furniture Company Inc. Jarden Corp. Hi-Tech Pharmaceuticals, Inc. University Games Corporation Coty Inc. Brunswick Corporation Sunshine Ace Hardware, Inc. Excelsior Capital Partners Pon Holdings B.V. Asmodée Editions SAS Unilever United States, Inc. TSG Consumer Partners PDC Brands Gene Larew Lures, LLC Bug Out Service Inc Lexmark Carpet Mills, Inc. American Achievement Corporation Pet Paradise-INN, LLC ABRA Auto Body & Glass LP Access Microfinance Holding AG LOUD Security Systems, Inc. Total Hockey Inc. Unilever plc McGuire Moorman Hospitality, LLC
Involvement P P
P P
P P P P P P P
P P
P
P
P P P
P P
P
P
P P P
PAGE | 14
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
M&A TRANSACTIONS RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED) Private Equity Announced 6/22/2015 6/18/2015 6/17/2015 6/16/2015 6/16/2015 6/15/2015 6/15/2015 6/13/2015 6/12/2015 6/12/2015 6/11/2015 6/11/2015 6/11/2015 6/11/2015 6/10/2015 6/10/2015 6/9/2015 6/9/2015 6/8/2015 6/8/2015 6/3/2015 6/2/2015 6/1/2015 6/1/2015 6/1/2015 5/29/2015 5/29/2015 5/29/2015 5/29/2015 5/28/2015 5/28/2015 5/27/2015 5/27/2015 5/26/2015 5/22/2015 5/21/2015 5/21/2015 5/20/2015 5/20/2015 5/20/2015 5/19/2015 5/19/2015 5/18/2015 5/18/2015 5/17/2015 5/15/2015 5/14/2015 5/14/2015 5/13/2015 5/13/2015 5/13/2015 5/12/2015 5/8/2015 5/6/2015 5/6/2015 5/2/2015 5/1/2015 4/30/2015 4/30/2015 4/30/2015 4/30/2015 4/29/2015 4/29/2015 4/27/2015 4/27/2015 4/24/2015 4/23/2015 4/23/2015 4/20/2015 4/20/2015 4/17/2015 4/17/2015 4/16/2015 4/16/2015 4/15/2015 4/14/2015
Target 11 Main, Inc. New York Kids Club LLC Valley Sporting Goods, Inc. Zanella Ltd. Altantic Service & Supply Inc. Carolina Cutlery Service, Inc. Pure Energy, Inc. American Spa Company Inc JS Technologies, Inc. Service Brands International, LLC Vanity Fair Brands, LP VKGS, LLC Nebraska Book (Retail Store Div.) Fineline Industries, Inc. Bravo Sports Corporation Cardinal Industries, Inc. Sequel Natural Ltd. Red Earth Trading Co. LLC Aurora Casket Company, Inc. Rocket Games Rights to PIE FACE Too Faced Cosmetics, Inc. Consorcio Latinoamericano Jrco Inc. Jack Guttman, Inc. Field Logic, Inc. Sheplers, Inc. Ink4Allus.com Dollar Tree, Inc., 330 Stores Family Dollar Stores Inc., 330 Family Dollar Stores Mialisia & Co., LLC Quaker Pet Group, LLC Geeknet, Inc. (NasdaqGM:GKNT) Orchard Brands Corporation Soundcast Systems, Inc. I Gotcha Golf, LLC Recreation Creations, LLC. Frederic Fekkai & Co., LLC Billy Goat Industries, Inc. Reborn Products Co., Inc. LightHeaded Beds, LLC Groupe Archambault inc. Hildebrandt Learning Centers, LLC PlayPower Holdings Inc. Protection 1, Inc. ANN INC. (NYSE:ANN) APW Holdings, LLC Contour, Inc. The Connaught Group, Ltd. Tivoli Audio, LLC Bourbon & Boots, Inc. Dimensions 100 Inc. Outdoor Solutions, Inc. GZMOE Kate Somerville Skin Care, LLC Huck Glove Groopco Ltd. AbbeyPost Lexol Brands, LLC Carleton Uniforms Inc. The Buck Bomb, Inc. Implus Corporation Mountain Khakis LLC DragonTech Manufacturing Company Reed & Barton Corporation Classic Awards Inc. Woodstream Corporation ColorPre Inc. Nine West Holdings, Inc., Jones New York Brand Mountain Rug Mills, Inc. Cirque du Soleil Inc. Fletcher's Appliance, Inc. Driven Brands, Inc. Fit & Fresh Robert Fisher Company, Inc. Urnex Brands, Inc. Pet Supermarket, Inc. Dent Wizard International Corporation
Seller Alibaba Group Holding Limited Fruit of the Loom, Inc. Contrarian Cap Mgmt & Nogales Investors Mgmt Nebraska Book Company, Inc. Swander Pace Capital VMG Partners Kohlberg & Company, L.L.C. Rocket Games Weston Presidio BBH Capital Partners; Gryphon Investors Dollar Tree, Inc. Family Dollar Stores Inc. Impala Asset Management, LLC American Capital, Ltd. Worth Investment Group, LLC The Procter & Gamble Company Quebecor Media Inc. Apollo Global Management, LLC GTCR, LLC Golden Gate Capital and others Curious Office Partners Tom James Company, Inc. Summit Partners LLP Gravity Ventures and others NCH Corporation JH Partners LLC LaunchCapital LLC; 500 Startups Summit Industries, Inc. Trilantic Capital Management LLC Remington Outdoor Company, Inc. Brockway Moran & Partners, Inc.; CHS Capital Nine West Holdings, Inc. Créations Méandres, Inc. Harvest Partners, LP H.I.G. Capital, LLC
Buyer OpenSky Corp. New Harbor Capital Management LLC S&S Promotional Group, Inc. Tengram Capital Partners, LLC Style Crest, Inc. Cozzini Bros, Inc. Livewire, LLC Elements Group Ltd. Avalanche International, Corp. The Dwyer Group, Inc. Perceva Capital Global Leveraged Cap Mgmt Follett Corporation Nautique Boat Company, Inc. One Industries Corp. Spin Master Ltd. The WhiteWave Foods Company Nisolo, LLC The York Group, Inc. Hasbro Inc. General Atlantic LLC PPG Industries, Inc. Great Northern Equipment Distributing, Inc. Decopac, Inc. FeraDyne Outdoors, LLC Boot Barn, Inc. Gorilla Stationers, LLC Sycamore Partners Sycamore Partners Youngevity Essential Life Sciences Worldwise, Inc. GameStop Corp. Bluestem Brands, Inc. Hancock Park Associates Dynamic Brands, Inc. Kidstuff Playsystems, Inc. SA Designer Parfums Limited; LUXE Brands, Inc. Briggs & Stratton Corporation American Accessories Lifetime Products, Inc. Librairie Renaud-Bray Inc. Bright Horizons Family Solutions, Inc. Littlejohn & Co. LLC Apollo Global Management, LLC Ascena Retail Group Inc. InMotion Entertainment Group, LLC World Wide Licenses Ltd. Royal Spirit International Limited Serruya Private Equity XCelerate Capital Webster Capital FEMO Group Holdings LP Gorilla Stationers, LLC Unilever plc (LSE:ULVR) Ontario Glove and Safety Inc. Sourceeasy, Inc. American Covers, Inc. Unisync Group Limited Hunter's Specialties, Inc. Berkshire Partners LLC Kanders & Company, Inc. Affinity Specialty Apparel, Inc. Lenox Corporation American Quarter Horse Foundation Vestar Capital Partners, Inc. Corporate Specialties LLC Authentic Brands Group LLC CAP Carpet, Inc. TPG Capital, Fosun Industrial Holdings Limited Baron's Major Brands, LLC Roark Capital Group CID Capital, Inc. Bergio International, Inc. (OTCPK:BRGO) Cortec Group Roark Capital Group Gridiron Capital, LLC
Involvement P P
P P
P P P P
P P P
P P
P
P P P P P P P
P P
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PAGE | 15
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
M&A TRANSACTIONS RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED) Private Equity Announced 4/14/2015 4/13/2015 4/13/2015 4/13/2015 4/13/2015 4/10/2015 4/9/2015 4/8/2015 4/8/2015 4/8/2015 4/8/2015 4/8/2015 4/8/2015 4/6/2015 4/6/2015 4/5/2015 4/2/2015 4/2/2015 4/2/2015 4/2/2015 4/1/2015 4/1/2015 4/1/2015 3/31/2015 3/31/2015 3/30/2015 3/26/2015 3/26/2015 3/26/2015 3/25/2015 3/23/2015 3/23/2015 3/23/2015 3/21/2015 3/20/2015 3/20/2015 3/16/2015 3/16/2015 3/16/2015 3/14/2015 3/14/2015 3/13/2015 3/12/2015 3/10/2015 3/8/2015 3/7/2015 3/5/2015 3/4/2015 3/3/2015
Target E. Masin Furniture Company, Inc. Frederick's of Hollywood Group Inc. Dover Saddlery, Inc. (NasdaqCM:DOVR) WASH Multifamily Laundry Systems, LLC Turner Hardware, Inc. Hand and Stone Massage Spa, Inc. Kitchen & Bath Design Studio, LLC Elvex Corporation Car Brite, Eagle One, & private label products Mina Pharmacy LTC LLC Carolina Manufacturing, LLC Spence Diamonds Ltd. New Energy, Inc. American Recreation Products, Inc. Whatcom Farmers Coop. AddiRae&Ives LLC Obsession Archery, Inc. American Boat Brokers, Inc. Levy & Son Nuheat Industries Ltd. The Jessica Simpson Collection Celtic Paper, LLC 54Studios Entertainment, Inc. The J. Jill Group, Inc. Japonesque Professional Makeup Supplies, Inc. Watkins Hardware and Appliances Inc. Checkview Corporation EZ GARD Industries, Inc. Vibrance and Thermasilk Brands Reeves-Sain Drug Store, Inc. Hinkel Inc. Louisville Slugger Brand Gardiners Home Furnishing Center Inc. Beautisol LLC Alliance Apparel Group Inc. Bugambilia International Inc. MonaVie LLC Hancock & Moore, Inc. Cycle Support West, Inc. Santa Fe Custom Works LLC Kevyn Aucoin Cosmetics, Inc. Green Magic, Inc. Britten Woodworks Orabrush, Inc. Mac's Sporting Goods Fleenor Security Systems, Inc. OhSo Clean, Inc. York Wallcoverings, Inc. Fab, Inc.
Seller HRG Group, Inc., and others SEED Venture Finance, RBF Capital, others CHS Capital Valvoline International, Inc. Sun Capital Partners; Kellwood Company Fulcrum Capital Partners Inc. With You, Inc.; Corny Dog, Inc. Golden Gate Capital Platinum Equity; Checkpoint Systems Bregal Investments Inc. Unilever United States, Inc. Hillerich & Bradsby Co., Inc. True Ventures The Westly Group Mayfield Fund; Menlo Ventures; others
Buyer Selden's Interior Furnishings, Inc. Authentic Brands Group LLC Webster Capital EQT Partners AB Westlake Hardware, Inc. Levine Leichtman Capital Partners Markraft Cabinets, Inc. Delta Plus Group (ENXTPA:DLTA) Highlander Partners, L.P. Longs Drug Stores, L.L.C. Springs Creative Products Group, LLC Lion Capital LLP; IVEST Consumer Partners Hillsdale Furniture, LLC Exxel Outdoors, Inc. CHS, Inc. Trollingers Florists, Inc. Arcus Hunting, LLC OneWater Marine Holdings, LLC Service Experts Heating & Air Conditioning Pentair plc (NYSE:PNR) Sequential Brands Group, Inc. NPS Corp The Watermill Group TowerBrook Capital Partners L.P. San Francisco Equity Partners Westlake Hardware, Inc. Iverify.us Inc. McDavid Inc. Awesome Products, Inc. Fred's, Inc. (NasdaqGS:FRED) InPro Corporation Wilson Sporting Goods Co. Wolf Furniture Enterprises, Inc. Five Crowns Capital, LLC Eminent, Inc. G.E.T. Enterprises, LLC Jeunesse Global, LLC RHF Investments, Inc. Advanced Sports, Inc. Ernest Thompson & Co., Inc. Manzanita Capital The Terminix Int'l Company Britten Inc. DenTek Oral Care, Inc. Any Wear Apparel, L.L.C. Alarm Security Group, LLC Pinstripe Capital LLC Babson Capital; High Road Capital PCH International Ltd.
Involvement
P P P
P
P P
P
P P P P
P
P
P
P P P
HW&CO. CONSUMER TEAM Tim Alexander
Glenn Gurtcheff
John Neuner IV
Corey Benjamin
Ryan Budlong
Brant Cash
Brent Spiller
Matt Conaty
Chip Duggins
Ryan Freeman
Andy Warczak
Managing Director
[email protected] +1 (612) 359-2716
Director
[email protected] +1 (415) 217-3409
Vice President
[email protected] +1 (804) 932-1340
Managing Director
[email protected] +1 (612) 359-2702
Director
[email protected] +1 (612) 359-2709
Vice President
[email protected] +1 (612) 359-2703
Managing Director
[email protected] +1 (804) 915-0125
Director
[email protected] +1 (804) 915-0183
Director
[email protected] +1 (804) 932-1342
Vice President
[email protected] +1 (415) 217-3423
Vice President
[email protected] +1 (612) 359-2714
PAGE | 16
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
OUR FIRM Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at www.harriswilliams.com/industries Aerospace, Defense & Government Services
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PAGE | 17
CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015
HARRIS WILLIAMS & CO. SOURCES S&P Capital IQ. Thomson Financial. Reuters. S&P Capital IQ LCD.
DISCLOSURES Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services. Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS. The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent. Copyright© 2015 Harris Williams & Co., all rights reserved.
PAGE | 18