Consumer Monthly March 2016

Consumer Monthly
March 2016
Consumer Headline Transactions
Target
Acquiror
Acquisition Synopsis
Gift & Home Décor
• The Michaels Companies, Inc. (NasdaqGS:MIK), an arts and crafts specialty retailer, acquired
Lamrite West for $150 million
• Lamrite West, doing business as Darice, is a wholesale distributor of craft products to craft, party,
toy, drug and grocery stores, and operates 34 Pat Catan's Craft Centers
Food & Beverage
• Hammond, Kennedy, Whitney & Company Inc., a private equity firm, acquired Panos Brands from
High Road Capital
• Panos Brands, LLC is a consumer packaged goods company with a portfolio of natural and
specialty food and beverage products
Apparel &
• ZAGG Inc (NasdaqGS:ZAGG), a provider of mobile device solutions, agreed to acquire Mophie, inc.
Accessories
for $100 million
• Mophie, inc. is a provider of battery cases, battery and storage products, universal batteries, belt
clips, docks and cables, and adapters
Recreational
• Vista Outdoor Inc. (NYSE:VSTO), a marketer of consumer products for sports and recreation
Products
markets, agreed to acquire BRG's Action Sports division for $400 million
• BRG Sports' Action Sports division includes leading helmet brands Bell and Giro, and C-Preme and
Blackburn
Action Sports Division
Personal Care
• The Estée Lauder Companies Inc. (NYSE:EL), a marketer of skin care, makeup, fragrance and hair
care products, acquired By Kilian
• By Kilian is a French marketer of fragrances, candles and other accessories
Home, Garden &
• Jet.com, Inc., a smart shopping platform that allows its member to shop online from various
Pet
retailers, agreed to acquire Hayneedle Inc.
• Hayneedle is an online specialty retailer of indoor and outdoor furniture, home and kitchen
accessories
Enterprise Value / LTM Revenue
Enterprise Value / LTM EBITDA
20.0x
3.0x
2.1x
2.0x
1.7x
1.2x
1.0x
14.0x
15.0x
2.5x
1.3x
0.7x
EV / LTM EBITDA
EV / LTM Revenue
4.0x
10.0x
7.5x
5.0x
0.0
0.0
Gift & Home
Décor
Food &
Beverage
Apparel &
Accessories
Recreational
Products
Gift & Home
Décor
Personal Care Home, Garden &
Pet
LTM Revenue Growth
Apparel &
Accessories
Recreational
Products
60.0%
8.0%
50.0%
2.8%
0.8%
1.6%
0.0%
(2.0%)
LTM Gross Margin
4.0%
40.0%
50.0%
46.8%
(4.4%)
(6.0%)
Food &
Beverage
Apparel &
Accessories
Recreational
Products
Personal Care Home, Garden &
Pet
37.1%
37.2%
35.9%
34.9%
30.0%
40.0%
30.0%
16.7%
20.0%
10.0%
(4.0%)
Gift & Home
Décor
60.0%
54.6%
5.1%
4.3%
2.0%
Personal Care Home, Garden &
Pet
10.1%
18.0%
13.8%
11.6%
15.6%
20.0%
10.0%
0.0%
0.0%
Gift & Home
Décor
Food &
Beverage
Apparel &
Accessories
Recreational Personal Care Home, Garden
Products
& Pet
Note: EBITDA Margins in green
LTM EBITDA Margin
LTM Revenue Growth
Food &
Beverage
LTM Gross & EBITDA Margins
10.0%
6.0%
12.1x
12.0x
11.4x
9.9x
LTM Stock Price Index
Share Price Index
120%
107% Food & Beverage
110%
103% Personal Care
100%
94% Recreational Products
90%
94% Home, Garden & Pet
80%
91% S&P 500
70%
83% Apparel & Accessories
60%
Mar-15
80% Gift & Home Décor
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Selected Consumer Transactions
Gift & Home Décor
Target
Acquiror
Zenith Products
Laces Group
Transaction Description
Laces Group, a Canadian provider of home fashion
Corporation
Food & Beverage
Target
Acquiror
Chef Creations, Inc.
Kettle Cuisine, Inc.
Transaction Description
Kettle Cuisine, a provider of soups, chilis and chowders,
products, acquired Zenith Products, a provider of bath
acquired Chef Creations, a provider of soups and sauces
storage and organizational products for homes
for restaurants and retail operations
Furniture Factory Outlet, Sun Capital Partners, Inc. Sun Capital Partners, a private equity firm, acquired
Raymundo's Food
AUA Private Equity
AUA, a private equity firm, acquired Raymundo's, a
LLC
Group, LLC
Partners, LLC
provider of gelatin, pudding and Latino specialty gels
Target
Acquiror
Stag Arms LLC
White Wolf Capital LLC
Furniture Factory Outlet, a home furnishings retailer
Apparel & Accessories
Target
Acquiror
Transaction Description
Monica Vinader Ltd
Piper PE LLP and Winona Piper PE and Winona Capital Management acquired
Capital Management,
Monica Vinader, UK based provider of affordable luxury
LLC
jewelry
Flint And Tinder USA, LLC Huckberry LLC
Huckberry, an online retailer of apparel, footwear and
Recreational Products
Arms, a manufacturer and marketer of rifles
Kitbag Ltd.
Fanatics, Inc.
Acquiror
Procter & Gamble's
Kimberly-Clark de
Escudo soap brand
Mexico
Fanatics, an online retailer of sports merchandise,
home goods, acquired Flint And Tinder, a designer and
acquired Kitbag, a UK based online retailer of sports
manufacturer of men's underwear
merchandise
Personal Care
Target
Transaction Description
Home, Garden & Pet
Target
Acquiror
Kimberly-Clark de México, a marketer of personal care,
Day Six Pet Nutrition,
C.J. Foods Inc.
consumer tissue and professional products, agreed to
LLC
Transaction Description
Transaction Description
C.J. Foods, a manufacturer of dry, superpremium pet
food, acquired Day Six Pet Nutrition, a manufacturer of
acquire P&G's Escudo soap brand
Vitamin World, Inc.
White Wolf Capital, a private equity firm, acquired Stag
specialty dry pet food
Centre Lane Partners,
Centre Lane Partners, a private equity firm, acquired
LLC
Vitamin World, a provider of wellness and nutrition
acquired Pointer Pet Products, a UK based provider of
products
pet treats and biscuits for dogs
Selected TM Capital Consumer Experience
New York
641 Lexington Avenue
30th Floor
New York, NY 10022
Tel: 212.809.1360
Boston
201 Washington Street
32nd Floor
Boston, MA 02108
Tel: 617.259.2200
Pointer Pet Products Ltd. Fold Hill Foods Limited
Fold Hill Foods, a UK based provider of pet food,
TM Capital’s Consumer Industry Contacts
James S. Grien
Craig M. Gibson
Philip S. Krieger
Managing Director
[email protected]
404-995-6235
Managing Director
[email protected]
617-259-2204
Principal
[email protected]
404-995-6242
Atlanta
3575 Piedmont Rd NE
Suite 1010
Atlanta, GA 30305
Tel: 404.995.6230
www.tmcapital.com