Consumer Monthly June 2016

Consumer Monthly
June 2016
Consumer Headline Transactions
Target
Acquiror
Acquisition Synopsis
Gift & Home Décor
• The Carlyle Group (NASDAQ: CG) and Centre Lane Partners, LLC partnered to form Luminex Home
Décor & Fragrance Holding Corporation
• Luminex combines two candle and home fragrance companies: Candle-lite Company (Centre Lane
portfolio company) and PartyLite (Carlyle portfolio company)
Food & Beverage
• JAB Holdings, a Luxembourg based investment firm, agreed to acquire Krispy Kreme Doughnuts,
Inc. (NYSE:KKD) for approximately $1.35 billion
• Krispy Kreme is a retailer and wholesaler of doughnuts, coffee and other complementary
beverages, and packaged sweets
Apparel &
• TM Capital assisted our MAI partner, Cavendish, in connection with the sale of Radley & Co.
Accessories
to Bregal Freshstream, a UK based private equity firm
• Radley is a leading UK handbag and accessories brand
Recreational
• Sequential Brands Group, Inc. (NasdaqCM:SQBG), a marketer of consumer products, agreed to
Products
acquire GAIAM's (NASDAQ:GAIA) consumer product business for $146 million
Branded Consumer
• GAIAM's branded consumer product business is comprised of yoga, fitness and wellness products
Product Business
Personal Care
• The Clorox Company (NYSE:CLX), a marketer of household products, acquired ReNew Life
Formulas, Inc. from Swander Pace Capital for $290 million
• Renew Life is a provider of probiotics and other digestive care supplements
Home, Garden &
• Energizer Holdings, Inc. (NYSE: ENR), a provider of batteries and lighting products, agreed to
Pet
acquire HandStands Holding Corporation from Trivest Partners for $340 million
• HandStands is a marketer of automotive air freshener and appearance products
Enterprise Value / LTM Revenue
Enterprise Value / LTM EBITDA
4.0x
20.0x
15.0x
2.7x
2.3x
2.0x
1.2x
1.0x
2.0x
1.2x
EV / LTM EBITDA
EV / LTM Revenue
15.4x
3.0x
0.7x
Gift & Home
Décor
7.0x
5.0x
Food &
Beverage
Apparel &
Accessories
Recreational
Products
Gift & Home
Décor
Personal Care Home, Garden &
Pet
LTM Revenue Growth
Food &
Beverage
Apparel &
Accessories
Recreational
Products
60.0%
8.0%
LTM Gross Margin
2.3%
2.8%
2.0%
0.0%
(2.0%)
(2.7%)
(4.0%)
(6.0%)
Gift & Home
Décor
Food &
Beverage
Apparel &
Accessories
Recreational
Products
46.9%
Personal Care Home, Garden &
Pet
40.0%
37.5%
38.2%
50.0%
36.5%
35.9%
30.0%
30.0%
17.0%
20.0%
10.0%
40.0%
9.7%
18.2%
13.6%
16.3%
20.0%
11.7%
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
3.4%
4.5%
60.0%
55.2%
50.0%
5.3%
6.0%
Personal Care Home, Garden &
Pet
LTM Gross & EBITDA Margins
10.0%
LTM Revenue Growth
11.6x
9.9x
10.0x
0.0
0.0
4.0%
12.9x
12.4x
LTM Stock Price Index
120%
112% Food & Beverage
Share Price Index
110%
109% Home, Garden & Pet
100%
107% Personal Care
90%
99% S&P 500
80%
95% Recreational Products
70%
83% Gift & Home Décor
60%
Jun-15
78% Apparel & Accessories
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16 Mar-16
Apr-16
May-16
Selected Consumer Transactions
Gift & Home Décor
Target
Acquiror
Transaction Description
Baby Tula LLC
The ERGO Baby Carrier,
Inc.
Food & Beverage
Target
Acquiror
The ERGO Baby Carrier, a marketer of baby carriers and
Friendly's Ice Cream,
Dean Foods Company
Dean Foods, a food and beverage company, acquired
Transaction Description
related products, acquired Baby Tula, a marketer of
Manufacturing and
(NYSE:DF)
Friendly's Ice Cream's manufacturing and retail ice
toddler carrier products, for approximately $74 million
Retail Ice Cream
cream business for $155 million
Business
Lighthouse Holdings Ltd. Portmeirion Group plc
(AIM:PMP)
Portmeirion Group, a UK based marketer of ceramic
Justin's, LLC
homeware products, acquired Lighthouse Holdings, a
Hormel Foods
Hormel, a marketer of various meat and food products,
Corporation (NYSE:HRL)
acquired Justin's, a marketer of Justin’s brand nut butter
UK based provider of home fragrances, for $25.4
spreads, squeeze packs, peanut butter cups and snack
million
packs
Apparel & Accessories
Target
Acquiror
Transaction Description
Travelpro Group
MidOcean Partners
Holdings Inc.
MidOcean Partners, a private equity firm, acquired
Recreational Products
Target
Acquiror
K'NEX Brands, L.P.
Cathay Capital Private
Cathay Capital, a French private equity firm, acquired
Equity
K'NEX Brands, a marketer of children's toys
Aquamira Technologies,
Aquamira Technologies, a provider of water filtration,
Inc.
purification and storage solutions, acquired Hub City
Travelpro, a leading provider of luggage, assorted bags
Transaction Description
and travel accessories
Jade Swimwear
The Riverside Company
The Riverside Company, a private equity firm, acquired
Hub City Outdoor, Inc.
and added Jade Swimwear, a provider of swimwear and
accessories, to its Elite Sportwear platform
Outdoor, a manufacturer of hydration systems and
hydration packs
Personal Care
Target
Acquiror
Transaction Description
High Ridge Brands Co.
Clayton, Dubilier & Rice,
Clayton, Dubilier & Rice, a private equity firm, acquired
Inc.
High Ridge Brands, a provider of hair care and skin
Home, Garden & Pet
Target
Acquiror
The Piddle Place, LLC
Radio Systems
Radio Systems, a marketer of pet lifestyle products,
Transaction Description
Corporation
acquired The Piddle Place, a marketer of pet toilet grass
cleansing products, for $415 million
Salu Beauty, Inc.
The Hut Group Ltd.
The Hut Group, a UK based online retailer of health and
pads and accessories
Nature's Variety Inc.
Agrolimen SA
beauty products, acquired Salu Beauty, an online
Agrolimen, a Spain based provider of pet food, acquired
Nature's Variety, a marketer of pet food
retailer of skincare and beauty products
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
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