Article - Meridian Capital

Spring 2016
Meridian Capital Consumer M&A Snapshot – Spring 2016
Meridian Capital Consumer Team
M&A Outlook
Chuck Wilke
Founder and Managing Director
206.224.6151
[email protected]
Twice a year, Meridian Capital publishes its Consumer Newsletter, which
focuses on key trends in middle market consumer M&A. In addition to covering
general consumer industry trends, the Spring 2016 Newsletter provides in-depth
analysis of four key consumer segments: 1) housewares, 2) food & beverage,
3) apparel, accessories and footwear, and 4) outdoor and recreation.
Brian Murphy
Managing Director
206.224.6156
[email protected]
Patrick Ringland
Managing Director
206.224.6155
[email protected]
Geoff Haydon
Director, Co-Head of Consumer
Products
206.582.3894
[email protected]
Kristin Brandtner
Vice President
206.453.6817
[email protected]
As we enter 2016, the underlying economic fundamentals remain solid despite
a weak and promotional holiday season. The backdrop of the upcoming
election and questions about further interest rate increases by the Fed will
create uncertainty in the stock market, but that should not affect the appetite of
strategic buyers, who still have very large cash reserves and no better options
for growth apart from acquisitions. We expect that 2016 will be another solid
year for M&A, with valuations holding up while interest rates remain relatively
low and debt financing options abundant. Shareholders who have been
considering growth, financing and/or ownership transition objectives should
review them now, given a likely cyclical downturn in the next 2-3 years.
www.meridianllc.com | 1809 Seventh Avenue Suite 1330, Seattle, WA 98101 | T: 206.622.4000 | F: 206.623.8221
Meridian Capital Consumer M&A Snapshot – Spring 2016
Consumer M&A Snapshot: Key Industry Trends
craft products, whether they be craft beer/spirits,
goods from farmers markets or handmade items
purchased online. Websites such as Etsy cater to
this shift in consumer preferences.
Large
companies can also cash in on this trend,
particularly in segments such as beer/spirits, where
industry leaders own niche brands (for example craft
beer brand Blue Moon, which is owned by Miller
Coors). According to consumer trend consultant
Jenny Zegler, “Niche is no longer a limitation, nor is
it an opportunity reserved for small companies.
We’ve entered an era where the power of the story
and the authenticity of the connection supersedes
any lofty moral aspirations such as ‘shopping small.”
Positive Economic Trends Drive Increased
Consumer M&A Activity
During 2015, 3,323 consumer products transactions
were announced in the U.S., representing an
aggregate disclosed value of $376 billion. The
number of transactions was up 4% compared to
2014 and aggregate disclosed value was up 13%.
Notable consumer transactions in 2015 included the
$55 billion acquisition of Kraft Foods by Heinz, the
$28 billion acquisition of Lorillard by Reynolds, and
the $19 billion acquisition of Jarden by Newell
Rubbermaid.
U.S. Annual Craft Beer Revenue
$6
$ in Millions
$5
Both strategic and financial buyers are seeking to
capitalize on the growth in the consumer products
industry and are highly acquisitive, driving strong
valuations.
Transaction
motivations
include
increasing presence in high growth segments,
expanding geographic reach, vertical integration,
and access to new customers via strong,
established brands.
2010
80.0
70.0
60.0
50.0
Jul-15
Jan-16
Jan-15
Jul-14
Jul-13
Jan-14
Jul-12
Jan-13
Jul-11
Jan-12
Jan-11
Jul-10
Jul-09
Jan-10
Jul-08
40.0
Jan-09
2011
2012
2013
2014
2015
Internet of Things
One of the fastest growing industries in the
consumer sector is the Internet of Things (“IoT”)
ecosystem. Based on sensors which collect data
and enable machines to talk to one another, the IoT
trend is expected to have a significant effect on
consumers in the coming years. Companies such
as Nest are changing the way consumers interact
with machines inside and outside of the home.
Retailers are beginning to utilize IoT technology in
stores by having in-store devices automatically ring
up customers, track real-time shopping behaviors,
and send tailored offers to customers. A recent
study by McKinsey found that the uses of IoT in
retail could have an economic impact of $410 billion
to $1.2 trillion per year in 2025.
90.0
Jan-08
$2
$-
Down 6%+ YOY
for Jan-16
Key Consumer Industry Trends
The Rise of Craft
In the wake of the global recession, consumers
have exchanged their interest in massive brands for
Sources: Pitchbook, CapitalIQ, University of Michigan Survey of Consumers, IBIS, Mintel, Vend.
www.meridianllc.com
$3
$1
U.S. Monthly Consumer Confidence Index
100.0
$4
2
Meridian Capital Consumer M&A Snapshot – Spring 2016
Consumer M&A Snapshot: Housewares Spotlight
registries. One of the biggest shifts has been
towards giftware and other home products. The
clear increase in participation at giftware trade
shows by traditional housewares companies is a
good indication of this trend. Housewares brands
are also relying on improved product packaging to
stand out in an increasingly competitive market.
Rise of Shark Tank and Crowdfunded Products
Shark Tank and crowdfunding sites such as
Kickstarter and Indiegogo are increasingly providing
strong launchpads for new, niche housewares
products. Scrub Daddy, a new kind of kitchen
sponge, went from startup to $35 million in revenue
in just over a year as a result of exposure on Shark
Tank. Cooler company Coolest raised more than
$13 million in donations on Kickstarter in only 52
days, helping the founder realize his vision of
creating a premium cooler with extensive
functionality such as a built-in blender, Bluetooth
speaker, and USB charger, among other innovative
features.
The Housewares market experienced a slight
decline in M&A activity in 2015, with 71 housewares
transactions announced globally, compared to 82 in
2014. Despite a slight decline in activity, 2015 was
notable for Jarden’s $1.3 billion acquisition of
Waddington, a maker of plastic food-service
products such as single-use drinkware and
dinnerware, and Jarden’s subsequent sale to Newell
Rubbermaid for $15 billion.
The combined
company, to be named Newell Brands, brings
together a complementary set of brands such as
Newell’s Rubbermaid, Contigo and Calphalon
brands and Jarden’s Oster, Crock-Pot and
Sunbeam brands.
The combination of these
companies creates a $16 billion revenue business
which will have more leverage with large customers
such as Walmart.
Top Crowdfunded Products 2014/15
Kickstarter
$20.3M
Notable Acquisitions
Indiegogo
$12.5M
$13.2M
$6.1M
Dec-15
Jul-15
$10.2M
Housewares Industry Trends
Blurring Boundaries between Housewares and
Home Furnishings
As 20-somethings continue to postpone marriage or
forgo the rite altogether, housewares manufacturers
have had to adjust to a world with fewer wedding
Sources: Capital IQ, Home World, Company and Investor Press Releases, Meridian Research, Home Fashion Forecast.
www.meridianllc.com
3
Meridian Capital Consumer M&A Snapshot – Spring 2016
Consumer M&A Snapshot: Food and Beverage Spotlight
consumers
are craving.
Dairy-free Milk Alternatives Market Share
Rice Milk,
1.0%
Soy Milk,
20.3%
Cashew,
3.0%
Almond Milk,
66.2%
Coconut Milk,
6.3%
M&A activity in the Food and Beverage sector was
up in 2015, with 370 announced transactions in the
U.S. compared to 341 in 2014. Aggregate disclosed
transaction value was up more than 60%, growing
from $63 billion in 2014 to $100 billion in 2015,
primarily as a result of the acquisition of Kraft Foods
by Heinz for $55 billion. Other notable transactions
include the $12 billion acquisition of the remaining
58% stake in Miller by Molson Coors, and the $14
billion acquisition of Keurig Green Mountain by JAB
Holdings, the investment vehicle of the Swiss-based
Joh A Benckiser family. JAB also owns controlling
interests in Peet’s Coffee and coffee chain Caribou
Coffee.
Other, 3.1%
Movement Toward Dairy-Free Milk and Creamer
Alternatives
The movement of consumers away from dairy
toward milk alternatives and other dairy-free
products continues to be a major trend. Dairy has
been on a multi-decade decline, with consumers
increasingly choosing to opt for dairy-free options as
a response to lactose intolerance as well as general
health purposes. The past several years have seen
a decline in soy-based products and a rapid
increase in almond and coconut products. Brands
such as Nutpods, which makes a dairy-free creamer
from almonds and coconuts, are growing rapidly as
the healthy dairy-free creamers proliferate and take
shelf space from traditional creamer brands such as
Coffee-Mate and International Delight.
Food and Beverage Industry Trends
Growth of Plant Based Protein
Plant based proteins have surged in popularity as
health concerns and the rising cost of animal-based
proteins have pushed consumers towards plant
based diets.
The global protein market was
expected to reach $24.5 billion in 2015, and the
fastest growing sector is plant-based proteins.
These products are considered more sustainable
than animal-based proteins and have become
increasingly popular as more consumers are
concerned with their health. The Paleo diet has also
contributed to this trend through its advocacy of lean
protein. Products such as pea protein and hemp
proteins are becoming popular, and more products
continue to come to market which offer the balance
of health benefits and sustainability which
Sources: CapitalIQ, Midwest Dairy, Meridian Research.
www.meridianllc.com
4
2015 YTD
(Through 10/4)
Vol. Sales
(Million Gallons)
Vol. %
Change
Non-Dairy Bev.
183.6
+6.1%
Almond
121.5
+7.9%
Soy
37.3
-8.6%
Coconut
11.6
+10.4%
Other
5.7
-16.4%
Cashew
5.6
+999.9%
Rice
1.9
-12.2%
Meridian Capital Consumer M&A Snapshot – Spring 2016
Consumer M&A Snapshot: Apparel, Accessories and Footwear Spotlight
measuring their every step, heartbeat and sleep
cycle to improve health and well-being. Apple’s
collaboration with Hermes on the special edition
Apple Watch is a perfect example of how technology
companies acknowledge they need to partner with
fashion brands to make products relevant to brandoriented consumers. One of the big questions in
wearable tech is when, and if, smart watches will
replace fitness tracking devices, or whether they can
truly coexist.
M&A activity in the Apparel, Accessories and
Footwear sector was up in 2015, with 93 announced
transactions in the U.S. compared to 81 in 2014.
Notable transactions included the acquisition of
women’s specialty retailer Ann Inc. (Ann Taylor) by
Ascena Retail Group (Lane Bryant, Dress Barn) for
$2.2 billion and the acquisition of women’s footwear
company Stuart Weitzman by Coach for $575
million.
The acquisition of Ann Inc. positions
Ascena as the largest women’s-focused specialty
retailer and broadens its brand mix to cover women
of all ages and sizes. The acquisition of Stuart
Weitzman by Coach is a way for the brand to
diversify away from its core handbag business,
which has suffered in recent years at the hands of
rivals such as Michael Kors and Kate Spade.
Licensing/Brand Management Companies – The
New Strategic Acquirers
Licensing and brand management companies
continue to succeed in taking established, in some
cases tired brands, and reinvigorating them for the
masses. Companies such as Iconix and Authentic
Brands have greatly increased the options sellers
have by providing a viable alternative to traditional
strategic acquirers. Ideal targets for these
companies are brands which have some relevance
and name recognition to the mass market, and
ideally still have some cachet to be leveraged. Even
VF Corp. has gotten into the game, acquiring denim
company Rock & Republic, known for its $200+
pairs of premium denim, and subsequently doing an
exclusive deal with Kohl’s where R&R’s products
now sell for $50 or less.
Apparel, Accessories and Footwear Industry
Trends
Athleisure Still Going Strong
The multi-year trend towards athleisure shows no
signs of slowing down, with more and more brands
creating athletic-inspired parts of their lines in hopes
of capitalizing on the trend. As athleisure products
proliferate, we expect the most authentic brands
such as Lululemon, Athleta, prAna and Beyond
Yoga to continue to dominate, as consumers
gravitate towards established, trusted brands.
Wearable Tech Is The Next Frontier In Fashion
If you haven’t included a biometric sensor in your
clothing or footwear yet, you’re living in 2013.
Wearable tech is the next big fashion trend, and
both apparel and tech companies are racing to
capitalize on it. Companies such as Fitbit have built
a large business around people’s obsession with
Sources: IBIS World, Capital IQ, Press Releases, Business Insider.
www.meridianllc.com
5
Meridian Capital Consumer M&A Snapshot – Spring 2016
Consumer M&A Snapshot: Outdoor and Recreation Spotlight
past three years, growing 31% and 20%
respectively. SUP has been the fastest growing
sector of outdoor for several years and shows no
sign of slowing. SUP has been somewhat limited in
its ability to grow by the difficulty of storing large
boards, particularly in Europe and Asia, but the rise
of inflatable models appears to have bridged that
gap in the eyes of consumers. There has also been
a large increase in kayak fishing (and SUP fishing),
a trend which has tapped into consumers’ desire to
avoid crowded fishing spots and get into the water
faster and with less cost.
M&A activity in the outdoor and recreation sector
increased in 2015, with 50 transactions announced
in the U.S. compared to 41 transactions in 2014,
although aggregate announced transaction value
decreased from $521 million to $424 million.
Notable transactions in 2015 included Confluence
Outdoor’s acquisition of stand up paddle brand
Boardworks, Dutch conglomerate PON’s acquisition
of Santa Cruz mountain bikes, and sleeping bag
manufacturer Exxel Outdoors’ merger with American
Recreation Products, owner of backpack brands
Kelty and Sierra Designs.
Camping and snow sports have seen the largest
decreases in participation in recent years, declining
3-5% during that time. A decreased interest in
camping by young adults has driven the decline, as
consumer
electronics
technology
such
as
smartphones and tablets have led to a decreased
interest in being outdoors. A lack of snowfall the
past several seasons has hurt the snow sports
industry.
Outdoor and Recreation Industry Trends
U.S. Outdoor Product Sales 2014
Racing and Water Sports Leading Growth
Participation in racing, particularly adventure racing
and off-road triathlons, has increased significantly
over the past three years. These two activities have
seen the largest increases in participation of any
outdoor activity, growing 38% and 34%,
respectively.
Adventure racing includes long
distance team events such as the Ragnar Race and
has some overlap with the rapidly growing obstacle
race sector, which includes events such as Tough
Mudder and Spartan Race.
The increase in
participation in off-road triathlons seems to correlate
with the rise in adventure racing.
Wildlife
Viewing
$10.7
Water
Sports
$19.4
Camping
$18.6
Fishing
$9.7
Trail Sports
$12.2
Interestingly, the waning of the “barefoot” trend in
footwear and increased interest in thick soled
product produced by brands such as Hoka One One
has coincided with the large increases in racing
participation.
Snow
Sports
Off-Roading
$7.7
$13.2
Stand up paddling (“SUP”) and kayak fishing have
also seen large increases in participation over the
Total = $120.5B
($ in Billions)
Sources: Capital IQ, Press Releases, OIA, Meridian Research.
www.meridianllc.com
Bicycling
$10.5
6
Hunting
$8.5
Motorcyclin
g
$10.0
Meridian Capital Consumer M&A Snapshot – Spring 2016
Consumer M&A Snapshot: Public Valuations
Apparel, Accessories and Footwear
14.0x
12.0x
10.0x
8.0x
6.0x
4.0x
2.0x
0.0x
Q1
'12
EV/EBITDA 11.4x
EV/Revenue 2.0x
Q2
'12
11.3x
2.0x
Q3
'12
10.6x
1.9x
Q4
'12
11.1x
2.0x
Q1
'13
11.9x
2.1x
Q2
'13
12.1x
2.2x
Q3
'13
12.3x
2.3x
Q4
'13
12.7x
2.4x
Q1
'14
12.5x
2.3x
Q2
'14
12.4x
2.3x
Q3
'14
12.1x
2.2x
Q4
'14
11.9x
2.2x
Q1
'15
12.8x
2.3x
Q2
'15
13.0x
2.3x
Q3
'15
12.8x
2.3x
Q4
'15
12.5x
2.2x
3.0x
2.5x
2.0x
1.5x
1.0x
0.5x
0.0x
*Created from an index of 30 publicly-traded apparel, accessories and footwear companies
Food and Beverage
14.0x
12.0x
10.0x
8.0x
6.0x
4.0x
2.0x
0.0x
Q1
'12
EV/EBITDA 10.6x
EV/Revenue 1.8x
Q2
Q3
Q4
Q1
'12
'12
'12
'13
10.7x 11.0x 10.7x 11.5x
1.9x 1.9x 1.9x 2.0x
Q2
'13
12.3x
2.1x
Q3
Q4
Q1
Q2
'13
'13
'14
'14
12.2x 12.4x 11.9x 12.0x
2.1x 2.2x 2.1x 2.3x
Q3
Q4
Q1
Q2
'14
'14
'15
'15
12.2x 12.2x 12.6x 12.3x
2.3x 2.3x 2.4x 2.4x
Q3
'15
12.4x
2.5x
Q4
'15
12.7x
2.5x
3.0x
2.5x
2.0x
1.5x
1.0x
0.5x
0.0x
*Created from an index of 18 publicly-traded food and beverage companies
Housewares
16.0x
14.0x
12.0x
10.0x
8.0x
6.0x
4.0x
2.0x
0.0x
2.5x
2.0x
1.5x
1.0x
0.5x
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
'12
'12
'12
'12
'13
'13
'13
'13
'14
'14
'14
'14
'15
'15
'15
'15
EV/EBITDA 8.2x 8.1x 8.3x 8.8x 9.5x 10.4x 10.6x 11.3x 11.8x 11.6x 11.9x 12.5x 13.2x 14.0x 14.4x 14.5x
EV/Revenue 1.1x 1.1x 1.2x 1.2x 1.4x 1.5x 1.5x 1.6x 1.7x 1.6x 1.7x 1.7x 1.8x 1.8x 1.9x 1.9x
0.0x
*Created from an index of 7 publicly-traded housewares companies
Outdoor and Recreation
16.0x
14.0x
12.0x
10.0x
8.0x
6.0x
4.0x
2.0x
0.0x
Q1
Q2
Q3
Q4
Q1
'12
'12
'12
'12
'13
EV/EBITDA 9.7x 9.5x 9.7x 9.8x 10.2x
EV/Revenue 1.2x 1.2x 1.2x 1.3x 1.3x
2.5x
2.0x
1.5x
1.0x
0.5x
Q2
'13
11.3x
1.5x
Q3
Q4
Q1
Q2
'13
'13
'14
'14
12.0x 12.9x 12.9x 12.8x
1.6x 1.7x 1.7x 1.7x
*Created from an index of 30 publicly-traded outdoor and recreation companies
Sources: Capital IQ
www.meridianllc.com
7
Q3
Q4
Q1
Q2
'14
'14
'15
'15
13.3x 13.9x 14.1x 13.9x
1.8x 1.9x 1.9x 1.9x
Q3
'15
13.5x
1.8x
Q4
'15
12.5x
1.7x
0.0x
Meridian Capital Consumer M&A Snapshot – Spring 2016
Consumer M&A Snapshot: Select Recent Transactions
Apparel, Accessories and Footwear
Date
Target
Dec-15 The Marena Group, LLC
Nov-15 Bernard Chaus, Inc.
Nov-15 PS Brands, LLC
Nov-15 Le Tigre, LLC
Nov-15 Tailgate Clothing Co.
Oct-15 Madison All 4 You LLC
Description
Buyer
Manufactures and sells compression
garments for men and women.
Designs, manufactures, and markets
women’s apparel.
Designs, manufactures, and distributes
private label, branded, socks, legwear,
and related accessories.
Manufactures and distributes
sportswear.
Designs and manufactures clothes for
sports fans.
Manufactures custom apparel.
The Riverside Company
N/A
Camuto Group, Inc.
N/A
GBG USA, Inc.
Infinity Group - Holding Company, LLC; Hilco Brands,
LLC
American Eagle Outfitters, Inc. (NYSE:AEO)
Riddell Sports Group, Inc.
Oct-15 Shoes For Crews, LLC
Designs and manufactures slip-resistant CCMP Capital Advisors, LLC
footwear.
Sep-15 Incase Designs Corp.
Designs and creates protection and
Incipio Technologies, Inc.
mobility products.
Sep-15 Joe's Jeans Inc., Joe's Brand and Related Operating Brand of apparel and footwear.
Sequential Brands Group, Inc. (NasdaqCM:SQBG)
Assets
Aug-15 Elite Sportswear, L.P.
Manufactures gymnastics apparel.
The Riverside Company
Aug-15 Ambre Industries, LLC
Jul-15
Loomworks Apparel, Inc.
Jul-15
Ben Sherman Limited and Ben Sherman Clothing
LLC
Manufactures and markets jewelry and Aries Capital Partners
handbags.
Manufactures and distributes loungewear Delta Galil USA Inc.
and intimates.
Manufacture apparel and footwear.
Marquee Brands LLC
Purchase
Price (M)
$130.0
N/A
$11.0
N/A
N/A
N/A
$69.5
N/A
N/A
$40.8
$63.7
Food and Beverage
Date
Target
Description
Buyer
Feb-16 Prime Pork
Supplier of premium quality beef.
Taylor Corporation
N/A
Feb-16 Panos Brands, LLC
Hammond, Kennedy, Whitney & Company Inc.
N/A
Blount Fine Foods Corp.
N/A
Annie's, Inc.
N/A
Birds Eye Holdings, LLC
N/A
Anheuser-Busch Companies, LLC
N/A
Dec-15 Four Peaks Brewing Company, Inc.
Provides specialty food and beverage
products.
Custom frozen food manufacturer and
co-packer.
Manufactures and sells meat-based
protein bars
Produces chocolates, chocolate mixes
and powders, and cocoa products.
Produces and sells craft beers, micro
brews, and ales.
Engages in the production of beers.
Anheuser-Busch Companies, LLC
N/A
Dec-15 Rutherford Wine Studios, LLC
Operates a winery.
E. & J. Gallo Winery, Inc.
N/A
Dec-15 Keurig Green Mountain, Inc. (NasdaqGS:GMCR)
Produces and sells coffeemakers and
specialty coffee.
Produces and supplies food and
beverage products.
Provides health and wellness food
solutions.
Formulates and manufactures cheese
and dairy ingredients.
Produces, sells, and distributes beers.
Acorn Holdings B.V.
Molson Coors Brewing Company (NYSE:TAP)
$12,019.1
Engages in manufacturing, distributing,
and marketing private brand food
products.
Coffee roaster.
Treehouse Foods, Inc. (NYSE:THS)
$2,700.0
Engages in processing, marketing, and
distributing snack products.
Coffee roasting company.
Snyder's-Lance, Inc. (NasdaqGS:LNCE)
Jan-16 Food Source, LP
Jan-16 EPIC Provisions LLC
Dec-15 Cocoa Dolce Chocolates, LLC
Dec-15 Breckenridge Holding Company
Nov-15 Berner Food and Beverage Inc.
Nov-15 Boulder Brands, Inc.
Nov-15 DairiConcepts, L.P.
Nov-15 MillerCoors LLC
Nov-15 Ralcorp Holdings Inc.
Oct-15 Intelligentsia Coffee & Tea, Inc.
Oct-15 Diamond Foods, Inc. (NasdaqGS:DMND)
Oct-15 Stumptown Coffee Roasters, Inc.
Sources: Capital IQ
www.meridianllc.com
8
Peak Rock Capital
Purchase
Price (M)
$14,253.3
N/A
Pinnacle Foods Inc. (NYSE:PF)
$991.4
Dairy Farmers of America, Inc.
$126.1
Peet's Coffee & Tea, Inc.
Peet's Coffee & Tea, Inc.
N/A
$1,937.8
N/A
Meridian Capital Consumer M&A Snapshot – Spring 2016
Consumer M&A Snapshot: Select Recent Transactions (continued)
Housewares
Date
Target
Description
Buyer
Jan-16 Polder International, Inc.
Manufactures and markets housewares. Topspin Partners LP
Dec-15 Jarden Corp. (NYSE:JAH)
Manufactures, markets, and distributes
consumer products.
Designs and manufactures banquet and
tabletop service products.
Designs and manufactures aluminum
serve ware and table items.
Manufactures and supplies kitchen tools.
Newell Rubbermaid Inc. (NYSE:NWL)
Sep-15 Mikon International Inc
Purchase
Price (M)
N/A
$15,400.0
G.E.T. Enterprises, LLC
N/A
Vagabond Group, Inc.
N/A
Victorinox Swiss Army, Inc.
N/A
Manufactures, and markets plastic
single-use tableware and packaging
products.
Manufactures and distributes household
cleaners.
Manufactures and markets tabletop and
home décor items.
Produces and markets cleaning and
maintenance chemicals.
Jarden Corp. (NYSE:JAH)
$1,350.0
Centerbridge Partners, L.P.
N/A
Description
Buyer
Jan-16 Triumph Sports USA, Inc.
Manufactures gaming products.
Escalade Sports, Inc.
Jan-16 Cybex International Inc.
Engages in the development,
manufacture, and marketing of fitness
equipment.
Manufactures and markets hockey
sticks, skates, protective, accessories
and apparel.
Manufactures fitness equipment.
Brunswick Corporation (NYSE:BC)
Sep-15 Arthur Court, Inc.
Aug-15 Epicurean Inc.
Jul-15
WNA, Inc.
Jun-15 KIK Custom Products, Inc.
Apr-15 Reed & Barton Corporation
Apr-15 Zep, Inc.
EMI, Inc.
$22.2
New Mountain Capital, LLC
$702.6
Outdoor and Recreation
Date
Target
Jan-16 Easton Hockey, Inc.
Jan-16 Octane Fitness, LLC
Jan-16 509, Inc.
Dec-15 PRO-TEC Brand
Dec-15 Alexandria Holdings Corp.
Nov-15 FuelBelt, Inc.
Nov-15 Funko, LLC
Oct-15 McNett Corporation
Sep-15 Goalsetter Systems, Inc.
Sep-15 Harbinger Fitness, Inc.
Jul-15 Onix Sports, Inc.
Jul-15
No Limit Archery, LLC
Jul-15
Jimmy Styks, LLC
Jul-15
SCIFIT Systems, Inc.
Jul-15
Santa Cruz Bicycles, LLC
Jun-15 Bravo Sports Corporation
Jun-15 Cardinal Industries, Inc.
Apr-15 American Recreation Products, Inc.
Nautilus Inc. (NYSE:NLS)
Manufactures and sells snowmobile gear Polaris Industries Inc. (NYSE:PII)
products.
Manufactures and sells helmets, pads, Bravo Sports Corporation
and other gear products
Manufactures and markets golf balls, golf clubs, golf shoes and golf gloves.
Manufactures hydration belts and
Implus Corporation
running accessories.
Designs and markets pop-culture
Acon Investments, L.L.C.
collectibles.
Manufactures and markets specialty
Coghlan's Ltd.
outdoor products.
Manufactures and distributes basketball Escalade Sports, Inc.
hoops.
Manufactures fitness products.
Implus Corporation
Manufactures equipment for pickle ball. Escalade Sports, Inc.
N/A
$195.0
N/A
$115.0
N/A
N/A
$239.5
N/A
N/A
N/A
N/A
N/A
N/A
Designs, manufactures, and supplies
archery products.
Provides paddle boards.
Plano Synergy Holdings, Inc.
Vista Outdoor Inc. (NYSE:VSTO)
$40.0
Engages in the manufacture of fitness
equipment.
Designs, manufactures, and sells
mountain bikes.
Manufactures recreational and sporting
goods.
Provides various games.
Brunswick Corporation (NYSE:BC)
$10.4
Manufactures and sells outdoor
equipment and apparel.
Exxel Outdoors, LLC
Sources: Capital IQ
www.meridianllc.com
Performance Sports Group Ltd. (TSX:PSG)
Purchase
Price (M)
9
N/A
Pon Holdings B.V.
N/A
One Industries Corp.
N/A
Spin Master US Holdings, Inc.
$56.7
N/A
Meridian Capital Consumer M&A Snapshot – Spring 2016
Meridian Capital Overview
Select Recent Consumer Transactions – Meridian Capital
Manufacturer of private label
apparel and accessories
-Merged With-
Designer and distributor of
Christmas ornaments
-Acquired By-
Branded athletic shoes
Sold by
-Acquired By-
Designer of eco-friendly
children’s toys
-Acquired By-
Branded kitchen tools and
gadgets
-Acquired By-
-Acquired By-
Producer of bulk and
bottled juice
-Acquired By-
Manufacturer of hot tubs
and spas
-Acquired By-
-Debt Financing and StrategicAdvisory
Weisfeld
Group
Infant frame carriers, totes,
sun hats and accessories
Designer and distributor of
specialty stationery and gift
products
Designer of insulated
beverage and food
containers
Designer of infant and
toddler shoes
-Acquired By-
Designer of infant bedding
-Acquired By-
-Acquired By-
Meridian Consumer Industry Coverage and Services
Sales Process
• Strategic Sale
• Minority Sale
• Subsidiary Divestitures
• Succession Planning
Juvenile
www.meridianllc.com
Recapitalization
• Management Buy-Outs
• New Growth Capital
• Liquidity Events
• Financial or Strategic
Partner
Food & Beverage
Buy-side Process
• Targeted Buy-Side
• Add-on Acquisitions
• Merger of Equals
• Vertical & Horizontal
Acquisitions
Housewares
10
Apparel &
Accessories
Strategic Advisory
• Strategic Issues & Projects
• Ownership Transition Plans
• Corporate Finance
Alternatives
• Exit Strategy Assessment
Outdoor &
Recreation
Meridian Capital Consumer M&A Snapshot – Spring 2016
Meridian Capital Contacts
Chuck Wilke
Founder and Managing Director
206.224.6151
[email protected]
www.meridianllc.com
Brian Murphy
Managing Director
206.224.6156
[email protected]
Patrick Ringland
Managing Director
206.224.6155
[email protected]
11
Geoff Haydon
Director, Co-Head of Consumer
Products
206.582.3894
[email protected]
Kristin Brandtner
Vice President
206.453.6817
[email protected]