Consumer Monthly August 2016

Consumer Monthly
August 2016
Consumer Headline Transactions
Target
Acquiror
Acquisition Synopsis
Gift & Home Décor
• Steinhoff International Holdings N.V. (JSE:SNH), a South African provider of furniture, household
goods and clothing, agreed to acquire a 50% interest in Cofel SAS
• Cofel is a French manufacturer of bed related products
Food & Beverage
• Gores Holdings (NasdaqCM:GRSH), a special purpose acquisition company, and private investors
agreed to acquire Hostess Brands. The transaction will result in Hostess being listed as a public
company, with an expected initial enterprise value of $2.3 billion, representing a valuation of
10.4x EV/EBITDA
• Hostess, the maker of Twinkies, Ding Dongs and CupCakes, is one of the largest packaged food
companies focused on the sweet baked goods market in the U.S.
Apparel &
• G-III Apparel Group, Ltd. (NASDAQ:GIII), a marketer of branded apparel and accessories, agreed to
Accessories
acquire Donna Karan International, Inc. for $650 million
• Donna Karan International is a marketer of women’s and men’s clothing, sportswear,
accessories and shoes under the Donna Karan and DKNY brand names
Recreational
• Smith & Wesson Holding Corporation (NasdaqGS:SWHC), a manufacturer of firearm products and
Products
accessories, acquired Crimson Trace Corporation for $95 million
• Crimson Trace Corporation is a provider of laser sighting systems and tactical lighting for firearms
Personal Care
• L'Oreal SA (ENXTPA:OR), a French marketer of cosmetic products, agreed to acquire It Cosmetics,
LLC for $1.2 billion
• IT Cosmetics is a prestige makeup and skincare brand
Home, Garden &
• BC Partners, a UK based private equity firm, agreed to acquire Keter Plastic Ltd.
Pet
• Keter Plastic is an Israeli based manufacturer of resin-based household and garden consumer
products
Enterprise Value / LTM Revenue
Enterprise Value / LTM EBITDA
20.0x
15.9x
2.9x
3.0x
15.0x
2.4x
2.1x
2.0x
1.1x
1.0x
1.1x
EV / LTM EBITDA
EV / LTM Revenue
4.0x
0.7x
13.7x
10.0x
7.6x
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%
3.8%
2.7%
0.3%
1.0%
0.0%
LTM Gross Margin
6.0%
40.0%
60.0%
56.2%
50.0%
6.7%
2.0%
Personal Care Home, Garden &
Pet
50.0%
46.2%
37.5%
38.8%
37.0%
35.2%
30.0%
30.0%
18.6%
17.4%
20.0%
10.0%
40.0%
13.1%
9.8%
16.6%
20.0%
11.3%
10.0%
(0.4%)
(2.0%)
Gift & Home
Décor
Food &
Beverage
Apparel &
Accessories
Recreational
Products
Personal Care Home, Garden &
Pet
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%
4.0%
12.4x
10.9x
10.4x
LTM Stock Price Index
120%
117% Home, Garden & Pet
Share Price Index
110%
112% Personal Care
100%
108% Food & Beverage
90%
101% S&P 500
80%
89% Recreational Products
70%
77% Apparel & Accessories
60%
Aug-15
77% Gift & Home Décor
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16 Mar-16
Apr-16
May-16
Jun-16
Jul-16
Selected Consumer Transactions
Gift & Home Décor
Target
Acquiror
Transaction Description
Belfield Furnishings Ltd.
Northedge Capital
Food & Beverage
Target
Acquiror
Northedge Capital Partners, a UK based private equity firm
The WhiteWave Foods
Danone (ENXTPA:BN)
Transaction Description
Partners and
and management, acquired Belfield Furnishings, a UK based
Company (NYSE:WWAV)
Management
manufacturer of furniture and furnishings
YDesign Group, LLC
YDesign Group, an online retailer of lighting products,
Danone, a global food company, agreed to acquire The
WhiteWave Foods Company, a provider of organic
foods, for $12.5 billion, representing a 21.2x
EV/EBITDA multiple
Lumens.com, Inc.
Lawler Foods, Ltd.
The Original Cakerie, Ltd. The Original Cakerie, a Canadian provider of frozen food
acquired Lumens.com, a retailer of furniture and home
service desserts, acquired Lawler Foods, a provider of
accessories
gourmet cheesecakes, cakes and pies
Apparel & Accessories
Target
Acquiror
Atlas for Men
Activa Capital
Transaction Description
Activa Capital, a French private equity firm, agreed to
Recreational Products
Target
Acquiror
Daisy Outdoor Products
Bruckmann, Rosser,
Bruckmann, Rosser, Sherrill & Co., a private equity firm,
Sherrill & Co.
acquired Daisy Outdoor, a manufacturer of youth
acquire Atlas for Men, a French based provider of men's
Transaction Description
outdoor clothing
Peds Legwear Inc.
airguns and accessories
Gildan Activewear Inc.
Gildan Activewear, a Canadian marketer of apparel
(TSX:GIL)
products, acquired Peds Legwear, a Canadian marketer
Taylor Brands, LLC
Smith & Wesson Holding Smith & Wesson, a manufacturer of firearm products
Corporation
and accessories, acquired Taylor Brands, a
of foot apparel and legwear products
(NasdaqGS:SWHC)
manufacturer of knives and specialty tools, for $85.0
million
Personal Care
Target
Acquiror
Dollar Shave Club, Inc.
Unilever PLC (LSE:ULVR)
Home, Garden & Pet
Target
Acquiror
Unilever, a provider of consumer products, acquired
Continentale Nutrition
C&D Foods Ltd.
Dollar Shave Club, a subscription service that delivers
S.A.
Transaction Description
Transaction Description
C&D Foods, a French pet food manufacturer, acquired
Continentale Nutrition, a French provider of moist cat
razors and other shaving products, for $1.0 billion
KAS Direct, LLC
S. C. Johnson & Son, Inc.
S. C. Johnson, a provider of household products,
Precision Pet Products,
acquired KAS Direct, a provider of household and
Inc.
Petmate Holdings Co.
Petmate, a provider of pet care products, acquired
Precision Pet Products, a provider of wire crates,
personal care products doing business under the
wooden dog houses and chicken coops, dog beds and
Babyganics brand
puppy pads
Selected TM Capital Consumer Experience
New York
641 Lexington Avenue
30th Floor
New York, NY 10022
Tel: 212.809.1360
and dog food
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