CONSUMER AND RETAIL · and social media are having a profound impact on consumer purchase decisions both online and in stores. Social media provides a means for retailers and brands

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CONSUMER AND RETAIL

INDUSTRY UPDATE │ FEBRUARY 2016

PAGE |

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In today’s retail environment, mobile technology, easy access to digital information,and social media are having a profound impact on consumer purchase decisions bothonline and in stores. Social media provides a means for retailers and brands to rapidlyreach a broad audience with a two-way path of communication. By leveraging socialmedia, retailers can analyze large amounts of data to better understand theirconsumers and adapt to ensure they provide the best offering and experience to drivesales and loyalty.

Although the benefits are apparent across channels, many retailers continue to limittheir analysis to e-commerce when evaluating the impact of technology on consumerpurchasing behavior. They have been slow to react to the digital influence in brick-and-mortar locations, where over 93% of retail sales take place today. It is estimatedthat digital content influenced $1.7 trillion (49%) of in-store sales in the U.S. compared toonly $0.3 trillion (14%) a couple years prior. Shoppers are not using digital as much forprice comparisons as they used to – rather they are using digital for (i) inspiration fortheir purchases, (ii) product research, and (iii) deals, resulting in higher conversion andoverall spending. Retailers are beginning to learn the benefits of leveraging mobiletechnology, digital information, and social media across each vertical of their business,and are realizing the necessity of strong grass-roots digital and social campaigns.

HARRIS WILLIAMS & CO. CONSUMER UPDATE

1

GROUP OVERVIEW

Harris Williams & Co. is a leadingadvisor to the Consumer market. Oursignificant experience covers a broadrange of end markets, industries, andbusiness models. This particular reportfocuses on trends and metrics in thefollowing areas:

Consumer Durables

Consumer Electronics

Consumer Services

Footwear, Apparel, andAccessories

Franchise Platforms

Internet Retail

Home Furnishings

Household Goods

Infant and Juvenile Products

Jewelry, Gifts, and Collectibles

Omni / Multi-Channel Brands

Outdoor and Lifestyle

Personal Care Products

Pet Care

Specialty and MassMerchant Retailing

CONTACTS

North America

John NeunerManaging [email protected]+1 (804) 915-0125

Ryan BudlongManaging Director [email protected] +1 (415) 217-3409

Brent SpillerManaging [email protected]+1 (804) 915-0183

Corey [email protected]+1 (804) 932-1342

Matt ConatyVice [email protected] +1 (415) 217-3423

Chip DugginsVice [email protected] +1 (804) 932-1340

Europe

Edward ArkusManaging [email protected]+44 207 518 8905

Will [email protected]+44 207 518 8906

CONSUMER AND RETAIL


Source: Third party research.

OVERVIEW OF THE DIGITALLY DRIVEN CONSUMER

Today’s consumer remains constantly connected to the digital world, whichunderscores the importance of strong digital and social campaigns for brands andretailers. Additionally, online reviews have become one of the most important factorsin a consumer’s purchasing decision and can be a powerful tool to drive loyalty.Approximately 80% of consumers interact with brands or products through digitalavenues prior to arriving at a physical store and consumers who use social mediaduring their shopping process are ~4x more likely to spend more on purchases, placingless of an importance on the physical shopping experience for retailers.

It is important to understand how digital and social media impacts variousdemographics and product categories to get a true understanding of digitalinfluence. Two specific groups, Millennials and Hispanic and Latino Americans, usedigital more often to shop and approximately 50% of each group’s purchases areinfluenced by digital research and interaction. These groups make up a largeproportion of American consumers, further intensifying the need to have a solid onlinepresence and experience for retailers and brands. Consumers are also using digitalacross product categories in different manners. Within health / wellness, homefurnishings, and baby/toddler categories, consumers are heavily reliant on socialmedia use leading up to a purchase, with close to two-thirds of consumers consultingreviews prior to making a purchase decision.

14%

36%

49%

64%

0%

10%

20%

30%

40%

50%

60%

70%

2012 2013 2014 2015

% of In-Store Sales Influenced by Digital

18%

21%

29%

31%

32%

33%

40%

56%

0% 10% 20% 30% 40% 50% 60%

Entertainment

Food/Beverage

Apparel

Electronics

Automotive

Health/Wellness

Home Furnishings

Baby/Toddler

% That Use Social Media Leading Up to a Purchase

RETAILER TRENDS: THE VALUE OF DIGITAL TECHNOLOGY AND SOCIAL MEDIA

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HARRIS WILLIAMS & CO. CONSUMER UPDATE

CONSUMER AND RETAIL


2

RETAILERS AND BRANDS ARE REACTING – TAKEAWAYS FROM NRF’S 2016 BIG SHOW

Collaboration is the New Competition: Steve Lowry, Westfield Co-CEO, highlighted the company’svision to bring together the physical and digital retail worlds into one dynamic retail environment.Lowry believes that sharing the vast data that is now available on consumer shopping habits mustbe shared across organizations to create a richer shopping environment, as shopper expectationsand desires are being driven more and more by moments of inspiration in an always-on retaileconomy. Westfield has made a significant investment in its digital experience to include a smartglobal network that links all of its centers and allows retailers to plug into shared customers acrossmultiple touchpoints.

NRF 2016 Big Show: Retailers and Brands Highlighted the Need to Keep Up with Digital Influenceson Consumer Shopping Habits

Changing the Way Consumers Live: Under Armour CEO Kevin Plank announced Under Armour’sConnected Fitness initiative which is designed to give consumers a chance to track, analyze, andshare health and fitness activity through a mobile device. While historically focused on its coreproduct line, Under Armour completed the acquisition of fitness apps MapMyFitness, Endomondo,and MyFitnessPal, which has created a network of over 160 million users through which UnderArmour can track and leverage data. Plank cited that Under Armour has evolved from a focus on“changing the way athletes dress to changing the way athletes live” in order to become a bettercompany for its consumers as the demand for connected technologies increases.

RETAILERS UNDERSTOOD THE POWER OF VIRAL CAMPAIGNS TO CONNECT IN 2015

Burberry live-streamed amenswear fashion show viaPeriscope, creating recordcustomer engagement andover 100 million impressions.

Lowe’s launched six secondDIY Vine videos, with 33,000Vine followers and morethan 44 million loops. UsingVine to appeal to a youngerdemographic, Lowe’spositioned its brand toattract a younger audiencethey had not reachedbefore.

TOMS recently launched acampaign to donate a pairof shoes every timesomeone posted anInstagram photo of theirbare feet. The campaignwas used to demonstrateTOMS commitment to itscause and connect with itsconsumers.

Nordstrom created a 14,000square foot art installationon the roof of its Seattleflagship store anddistributed the photo viaInstagram to announce itsannual sale. The postgenerated significantexcitement and buzzaround the sale and withinthe community.

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KEY TRADING STATISTICS (DETAIL BEGINS ON PAGE 7)

PUBLIC MARKETS OVERVIEW

PUBLIC COMPANY SECTOR PERFORMANCE (12-MONTH % CHANGE IN STOCK PRICE)

CONSUMER AND RETAIL


3

Furniture & Furnishings

Retailers

Department

Chains

Specialty & Other Retail

Consumer Durables

Apparel & Footwear Retail

Home & Office Furniture & Furnishings

Pet Care

Internet Retail

Consumer & Retail Index

Apparel & Footwear

S&P 500

Housewares

Consumer Services and Retail

Franchisors

Discount Stores & Mass Merchants

Outdoor & Lifestyle


Infant & Juvenile

Household Products

(50.0%) (40.0%) (30.0%) (20.0%) (10.0%) 0.0% 10.0%

Change in Stock Price

3 mos. 12 mos. Revenue EBITDA Revenue EBITDA

Consumer Products & Services

Apparel & Footwear 24 $2,291 (0.5%) (13.5%) 1.4x 9.5x 1.3x 9.0x

Consumer Durables 6 14,255 (17.5%) (26.0%) 0.8x 8.5x 0.8x 6.7x

Consumer Services and Retail Franchisors 7 3,340 (13.8%) (9.0%) 2.9x 10.1x 2.0x 8.2x

Home & Office Furniture & Furnishings 10 1,305 (20.3%) (19.9%) 0.7x 8.2x 0.7x 6.6x

Household Products 5 18,415 4.7% 5.1% 3.6x 14.5x 3.6x 14.4x

Housewares 10 3,028 (9.9%) (9.4%) 1.2x 11.9x 1.4x 9.1x

Infant & Juvenile 12 3,148 (4.7%) 3.1% 0.7x 10.4x 0.6x 8.0x

Outdoor & Lifestyle 20 826 (8.2%) (15.1%) 1.3x 10.0x 1.2x 8.5x

Personal Care Products 13 3,113 (0.6%) (5.3%) 1.3x 10.0x 1.1x 9.8x

Pet Care 8 2,303 (2.1%) (4.2%) 1.4x 12.8x 1.6x 11.2x

Retail

Apparel & Footwear Retail 31 1,255 (5.8%) (23.5%) 0.5x 5.7x 0.5x 5.6x

Department Chains 8 6,825 (9.5%) (39.5%) 0.6x 5.8x 0.5x 6.3x

Discount Stores & Mass Merchants 14 24,160 0.4% (8.1%) 0.7x 10.8x 0.7x 9.7x

Furniture & Furnishings Retailers 14 1,208 (27.9%) (44.8%) 0.6x 6.0x 0.6x 5.5x

Internet Retail 12 3,554 (18.8%) (14.8%) 2.1x 10.1x 1.9x 9.4x

Specialty & Other Retail 15 3,276 (8.3%) (30.9%) 0.7x 6.6x 0.7x 5.7x

Consumer Products & Services 115 $3,070 (6.5%) (9.2%) 1.3x 10.1x 1.3x 8.8x

Retail 94 $3,415 (8.9%) (27.2%) 0.7x 6.3x 0.6x 6.0x

Consumer & Retail Index 209 $3,131 (8.3%) (14.2%) 1.0x 10.0x 1.0x 8.4x

SectorNumber of

Companies

Median Enterprise

Value ($ M)

Median TEV/

Forward Mulitples

Median TEV/

LTM Multiples

PAGE |

CONSUMER AND RETAIL INDUSTRY STOCK PERFORMANCE

PUBLIC MARKETS OVERVIEW

4

RECENT EQUITY OFFERINGS

CONSUMER AND RETAIL


Close Date Filing Date Issuer Ticker Transaction Type

Gross Proceeds

($ M) Primary Industry

12/14/15 12/14/15 Norwegian Cruise Line Holdings Ltd. NCLH Follow-on $596.1 Hotels, Resorts and Cruise Lines

11/23/15 11/23/15 The J. M. Smucker Company SJM Follow-on 467.3 Packaged Foods and Meats

11/19/15 10/06/15 Duluth Holdings Inc. DLTH IPO 80.0 Internet Retail

11/18/15 11/18/15 Bright Horizons Family Solutions, Inc. BFAM Follow-on 232.9 Education Services

11/05/15 11/05/15 ServiceMaster Global Holdings, Inc. SERV Follow-On 982.1 Specialized Consumer Services

10/16/15 10/15/15 ClubCorp Holdings, Inc. MYCC Follow-On 186.6 Leisure Facilities

10/15/15 10/14/15 Jarden Corp. JAH Follow-On 490.0 Housewares and Specialties

09/24/15 09/21/15 Sportsman's Warehouse Holdings, Inc. SPWH Follow-On 76.6 Specialty Stores

08/11/15 08/10/15 Norwegian Cruise Line Holdings Ltd. NCLH Follow-On 1,180.6 Hotels, Resorts and Cruise Lines

08/10/15 08/10/15 Bright Horizons Family Solutions, Inc. BFAM Follow-On 183.2 Specialized Consumer Services

08/06/15 06/22/15 Planet Fitness, Inc. PLNT IPO 202.0 Leisure Facilities

08/05/15 08/04/15 GNC Holdings Inc GNC Convertible 250.0 Specialty Stores

50

75

100

125

150

175

200

225

250

Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16

Ind

ex

Dow Jones U.S. Retail Index Dow Jones U.S. Consumer Goods Index Dow Jones U.S. Consumer Services S&P 500 Index

PAGE | 5

CONSUMER AND RETAIL


M&A OVERVIEW

CONSUMER AND RETAIL M&A TRENDS

TRADING MULTIPLES AND ANNOUNCED PRIVATE EQUITY M&A ACTIVITY

ANNOUNCED CONSUMER AND RETAIL M&A

Note: Transactions based on publicly available information

12.1x 11.8x11.9x 11.8x 11.8x

12.2x 12.4x12.0x

11.6x

12.4x11.8x 11.7x 11.3x

13.1x

12.1x

10.8x10.0x 10.2x 10.4x 10.0x

9.5x10.0x 10.0x 10.2x

11.3x

8.2x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

Me

dia

n T

rad

ing

Mu

ltip

les

Median LTM Trading Multiples

Consumer Products & Services Retail

$30

$40 $38

$27 $28

$92

$8.7

0

50

100

150

200

250

300

350

400

450

$0

$15

$30

$45

$60

$75

$90

$105

2010 2011 2012 2013 2014 2015 2016

YTD

Nu

mb

er o

f Tran

sac

tion

s

Ave

rag

e T

ran

sac

tio

n V

alu

e

($ in

billio

ns)

Announced Consumer Transactions

Aggregate Transaction Value # of Deals

77

57

77

43

66

35 39

68 7183

66

95

46

13

14

25

34

21

18 13

512

26

12

16

8

0

20

40

60

80

100

120

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Nu

mb

er

of Tr

an

sac

tio

ns

Quarterly Consumer M&A Activity

Strategic Buyer PEG Acquirer

8.4x

10.7x 10.0x 9.8x

10.8x

12.4x

10.0x

0.00x

0.20x

0.40x

0.60x

0.80x

1.00x

1.20x

1.40x

0.0x

4.0x

8.0x

12.0x

16.0x

20.0x

2010 2011 2012 2013 2014 2015 2016 YTD

EV

/ LTM S

ale

s Mu

ltiple

EV

/ L

TM E

BIT

DA

Mu

ltip

leMedian Consumer Transaction Multiples

EBITDA Mult Rev Mult

72

31

37

53

73

86

57

66

8

48

28

59

53

76

57

68

84

11

0

10

20

30

40

50

60

70

80

90

100

2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD

Nu

mb

er

of Tr

an

sac

tio

ns

Consumer Private Equity Investments and Exits

Number of Investments Number of Exits

Announced Target Buyer

2/15/2016 True Text iles, Inc. Duvaltex Inc.

2/12/2016 THE WHEAT GROUP, INC. United Legwear Company, LLC

2/11/2016 Furniture Factory Outlet, LLC Sun Capital Partners, Inc.

2/11/2016 Sprig Toys, Inc. BeginAgain, Inc.

2/11/2016 Etch A Sketch and Doodle Sketch Spin Master Corp. (TSX:TOY)

2/11/2016 WorldStrides, Inc. Metalmark Capital LLC

2/10/2016 Stop Aging Now, LLC Wellnext, LLC

2/10/2016 iDevices, LLC, iGrill® Weber-Stephen Products LLC

2/7/2016 Apollo Education (NasdaqGS:APOL) Najafi Companies

2/5/2016 LeapFrog Enterprises Inc. (NYSE:LF) Vtech Holdings Ltd. (SEHK:303)

Last 10 Deals Announced

Aggregate Number Transaction Multiples

Value ($bn) of Deals EV / Revenue EV / EBITDA

$91.5 400 0.87x 11.5x

LTM Deal Statistics

PAGE |

0

2

4

6

8

10

12

14

1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15

Loa

n V

olu

me

by

Qu

art

er

($ i

n b

illi

on

s)

Quarterly Retail Loan Volume

Institutional Pro Rata

6

CONSUMER AND RETAIL


DEBT MARKET OVERVIEW

COMMENTARY ON RECENT CONSUMER AND RETAIL DEBT TRANSACTIONS1

KEY RETAIL CREDIT STATISTICS

1) Source: S&P Capital IQ LCD

• Keurig Green Mountain (BB-/Ba3) secured a $1.8 billion loan with the help of European interest, reduced from theinitial target of $2.6 billion. Price talks on the term debt are set at L+450 with a 0.75% floor and offered at 98. The loanis pegged to yield 5.7% to maturity. Parties familiar with the situation indicated that the size of overall debt proved tobe a key hurdle that facilitated the downward pressure on the deal.

• Manitowoc Foodservice was able to finalize the term loan backing its spin-off from Manitowoc Co. The covenant-litedebt priced at L+475, with a 1% floor and a 98 offer price. The seven-year loan offers a yield to maturity of 6.26, andwill fund into escrow 30 days after allocation. Senior secured leverage runs about 4.1x on a pro forma basis for thetransaction, with total leverage of 5.9x.

• After three iterations, Mattress Firm was able to cross the finish line in securing a term loan backing its acquisition ofSleepy’s, as investors were concerned over the all-first-lien capital structure. Originally $730 million, the deal wasdownsized to $665 million, and cleared at L+525 with a 1.0% floor and a 97 offer price. The final deal yieldedapproximately 7.11% to maturity, while moving the whole loan structure out of the covenant-lite realm.

• Caliber Collision is looking for an increase, via arranger Antares Capital, on its existing senior term loan. The proposalwould take the senior facility to $685 million up from the initial $574 million, while also adding a $100 million delayeddraw term loan for the next 12 months. The deal is underwritten by a total-net-leverage test, and the existing $60million 10.5% second-lien note held by Penfund remains standing.

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15

Loa

n V

olu

me

by

Qu

art

er

($ in

billio

ns)

Quarterly Retail Loan Volume

Institutional Pro Rata

L + 0

L + 100

L + 200

L + 300

L + 400

L + 500

L + 600

L + 700

2007 2008 2009 2010 2011 2012 2013 2014 2015 4Q15

Ave

rag

e S

pre

ad

Ove

r LI

BO

R

Average Spread on Retail Loans

Revolving Credit / Term Loan A Weighted-Average Institutional

L + 0

L + 500

L + 1000

L + 1500

L + 2000

L + 2500

4Q05 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15

Ave

rag

e S

pre

ad

Ove

r LI

BO

R

Average Secondary Spread

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash

Interest

EBITDA -

Capex/Cash

Interest

EB

ITD

A M

ultip

le

Credit Statistics

2010 2011 2012 2013 2014 2015

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


7

Price at As a % of Market Cash & Enterprise LTM P/E

($ in millions, except per share data) Ticker 2/15/16 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA

Consumer Products & Services

Apparel & Footwear

Coach, Inc. COH 34.53 78.7% 9,589 887 1,337 9,139 4,238 932 (5.7%) (4.9%) 68.6% 22.0% 26.1x 2.16x 9.8x 1.99x 8.9x

Columbia Sportswear Company COLM 55.54 74.3% 3,906 17 370 3,552 2,326 306 10.7% 11.7% 46.1% 13.2% 22.7x 1.53x 11.6x 1.44x 11.0x

Carter's, Inc. CRI 86.63 79.1% $4,504 $585 $288 $4,801 $3,017 $462 8.0% 9.5% 41.5% 15.3% 19.7x 1.59x 10.4x 1.53x 9.5x

Crocs, Inc. CROX 9.14 56.9% 673 8 168 513 1,088 0 (10.8%) (0.4%) 47.4% 0.0% NM 0.47x 1785.8x 0.46x 9.0x

Deckers Outdoor Corp. DECK 49.56 63.5% 1,607 56 263 1,400 1,837 241 3.7% 9.1% 45.9% 13.1% 11.2x 0.76x 5.8x 0.74x 5.4x

Fossil Group, Inc. FOSL 33.34 33.4% 1,604 811 302 2,113 3,301 548 (5.9%) 6.4% 55.5% 16.6% 5.4x 0.64x 3.9x 0.70x 6.5x

G-III Apparel Group, Ltd. GIII 45.71 61.8% 2,081 172 54 2,199 2,331 232 12.3% 20.9% 36.2% 10.0% 16.5x 0.94x 9.5x 0.86x 8.8x

Hanesbrands Inc. HBI 26.58 76.4% 10,411 2,625 319 12,716 5,732 974 7.6% 8.2% 38.1% 17.0% 25.1x 2.22x 13.1x 2.18x 12.3x

Iconix Brand Group, Inc. ICON 6.94 18.6% 336 1,472 136 1,671 374 180 1.0% 0.9% 100.0% 48.2% 3.7x 4.47x 9.3x 4.40x 10.2x

Kate Spade & Company KATE 16.08 45.0% 2,053 402 220 2,235 1,212 126 19.4% (6.1%) 60.6% 10.4% 23.7x 1.84x NM 1.65x 10.0x

NIKE, Inc. NKE 56.42 82.7% 96,092 2,176 6,116 92,152 31,339 5,059 5.3% 8.8% 46.3% 16.1% 27.4x 2.94x 18.2x 2.69x 16.2x

Oxford Industries Inc. OXM 63.50 69.6% 1,053 69 7 1,115 1,036 123 12.4% 8.2% 56.2% 11.9% 21.6x 1.08x 9.1x 1.09x 8.2x

Perry Ellis International Inc. PERY 17.65 62.6% 278 132 36 374 903 44 1.6% (1.4%) 34.8% 4.9% NM 0.41x 8.5x 0.40x 6.1x

PVH Corp. PVH 73.35 60.8% 6,011 3,367 370 9,008 7,977 947 (3.0%) 10.3% 52.2% 11.9% 12.5x 1.13x 9.5x 1.12x 8.8x

Ralph Lauren Corporation RL 86.94 61.6% 7,304 900 1,215 6,989 7,419 1,141 (2.4%) 2.3% 57.0% 15.4% 15.7x 0.94x 6.1x 0.97x 6.6x

Steven Madden, Ltd. SHOO 32.27 72.2% 2,019 0 61 1,958 1,404 186 5.1% 5.6% 35.2% 13.3% 18.4x 1.39x 10.5x 1.35x 9.9x

Skechers U.S.A., Inc. SKX 30.38 55.7% 4,749 85 508 4,326 3,159 408 32.4% 26.3% 45.4% 12.9% 20.3x 1.37x 10.6x 1.17x 8.2x

Gildan Activewear Inc. TSX: GIL 32.69 71.5% 7,971 462 47 8,386 2,415 384 2.4% 7.4% 24.2% 15.9% 25.5x 3.47x 21.8x 3.14x 14.1x

Tumi Holdings, Inc. TUMI 16.78 65.9% 1,139 0 76 1,063 544 118 6.5% 12.8% 59.0% 21.7% 18.6x 1.95x 9.0x 1.86x 9.6x

Under Armour, Inc. UA 76.29 72.0% 16,465 669 130 17,004 3,963 509 28.5% 29.3% 48.1% 12.9% NM 4.29x 33.4x 3.41x 26.2x

V.F. Corporation VFC 58.79 75.5% 25,063 2,710 567 27,206 12,543 2,114 4.6% 5.3% 48.5% 16.9% 24.5x 2.17x 12.9x 2.08x 12.4x

Vera Bradley, Inc. VRA 13.96 68.9% 530 0 62 468 501 75 (2.3%) (0.8%) 55.5% 15.1% 19.1x 0.93x 6.2x 0.93x 6.3x

Weyco Group Inc. WEYS 25.71 82.9% 278 42 20 300 328 36 8.1% 4.3% 38.0% 11.0% 14.4x 0.91x 8.3x NA NA

Wolverine World Wide Inc. WWW 16.69 47.4% 1,717 826 196 2,346 2,749 297 2.1% 25.4% 39.3% 10.8% 14.1x 0.85x 7.9x 0.87x 8.1x

Mean 64.0% $8,643 $770 $536 $8,876 $4,239 $643 5.9% 8.3% 49.2% 14.8% 18.4x 1.69x 88.3x 1.61x 10.1x

Median 67.4% $2,067 $432 $208 $2,291 $2,373 $302 4.9% 7.8% 46.9% 13.2% 19.1x 1.38x 9.5x 1.35x 9.0x

Last Twelve Months (LTM) EV / LTM EV / 2016ERevenue Growth LTM Margins

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


8



Consumer Services and Retail Franchisors

GNC Holdings Inc. GNC 26.19 50.7% 1,944 1,452 56 3,340 2,639 484 1.0% 2.8% 37.3% 18.3% 10.1x 1.27x 6.9x 1.25x 6.9x

H&R Block, Inc. HRB 33.72 89.8% 7,956 1,503 363 9,096 3,077 902 1.5% 2.0% 50.0% 29.3% 19.8x 2.96x 10.1x 2.92x 9.6x

Planet Fitness, Inc. PLNT 13.68 66.2% 501 504 28 976 321 96 52.0% NA 52.4% 30.1% 16.8x 3.04x 10.1x 2.85x 7.2x

Regis Corp. RGS 13.89 76.6% 662 120 130 652 1,817 82 (3.1%) (4.3%) 33.6% 4.5% NM 0.36x 7.9x 0.36x 6.6x

Realogy Holdings Corp. RLGY 28.45 57.2% 4,174 4,291 567 7,898 5,659 754 6.9% 8.8% 48.4% 13.3% 21.5x 1.40x 10.5x 1.31x 9.1x

ServiceMaster Global Holdings, Inc. SERV 37.17 88.1% 5,033 2,762 283 7,512 2,570 591 6.5% NA 47.4% 23.0% 30.1x 2.92x 12.7x 2.77x 11.4x

Winmark Corp. WINA 93.00 85.9% 384 71 1 453 69 37 16.9% 9.7% 88.7% 54.1% 20.8x 6.60x 12.2x NA NA

Mean 73.5% $2,951 $1,529 $204 $4,275 $2,307 $421 11.7% 3.8% 51.1% 24.7% 19.8x 2.65x 10.1x 1.91x 8.5x

Median 76.6% $1,944 $1,452 $130 $3,340 $2,570 $484 6.5% 2.8% 48.4% 23.0% 20.3x 2.92x 10.1x 2.04x 8.2x

Home & Office Furniture & Furnishings

The Dixie Group, Inc. DXYN 4.09 35.6% 69 136 0 205 419 16 5.6% 17.2% 24.7% 3.9% NM 0.49x 12.6x 0.47x NA

HNI Corp. HNI 32.03 55.5% 1,415 190 33 1,573 2,304 238 3.7% 4.8% 37.0% 10.3% 13.8x 0.68x 6.6x 0.71x 6.6x

Hooker Furniture Corp. HOFT 27.46 90.0% 317 0 49 267 251 27 6.0% 5.7% 27.1% 10.6% 18.3x 1.06x 10.1x 1.04x NA

Kimball International, Inc. KBAL 10.42 80.2% 390 0 26 364 625 50 11.9% (18.6%) 31.9% 8.0% 18.4x 0.58x 7.2x NA NA

Knoll, Inc. KNL 18.20 69.8% 889 222 4 1,106 1,104 134 5.2% 7.1% 37.4% 12.2% 13.4x 1.00x 8.2x 0.96x 6.8x

Leggett & Platt, Incorporated LEG 42.33 82.5% 5,740 949 253 6,436 3,917 599 3.6% 4.7% 23.6% 15.3% 18.6x 1.64x 10.7x 1.60x 10.2x

La-Z-Boy Incorporated LZB 20.12 68.6% 1,010 5 85 930 1,457 133 4.7% 5.3% 36.6% 9.2% 14.5x 0.64x 7.0x 0.59x 5.8x

Herman Miller Inc. MLHR $23.12 70.7% $1,383 $257 $60 $1,580 $2,213 $250 9.6% 8.9% 38.0% 11.3% 12.4x 0.71x NM 0.68x 6.0x

Steelcase Inc. SCS 12.00 58.7% 1,468 300 266 1,503 3,062 277 (0.9%) 2.6% 32.0% 9.0% 13.0x 0.49x 5.4x 0.49x 4.7x

Tempur Sealy International Inc. TPX 54.13 65.5% 3,379 1,455 154 4,680 3,151 397 5.4% 31.0% 39.7% 12.6% 46.3x 1.49x 11.8x 1.42x 8.8x

Mean 67.7% $1,606 $351 $93 $1,864 $1,851 $212 5.5% 6.9% 32.8% 10.2% 18.7x 0.88x 8.9x 0.88x 7.0x

Median 69.2% $1,197 $206 $55 $1,305 $1,835 $186 5.3% 5.5% 34.3% 10.5% 14.5x 0.70x 8.2x 0.71x 6.6x

Household Products

Church & Dwight Co. Inc. CHD 88.58 97.6% 11,615 1,050 330 12,335 3,395 775 2.9% 5.1% 44.5% 22.8% 28.9x 3.63x 15.9x 3.55x 15.0x

Colgate-Palmolive Co. CL $65.70 91.8% $58,928 $6,571 $1,072 $64,427 $16,034 $4,437 (7.2%) (2.1%) 58.7% 27.7% 24.2x 4.02x 14.5x 4.22x 14.7x

The Clorox Company CLX 127.54 96.5% 16,509 2,296 390 18,415 5,693 1,222 2.4% 0.5% 44.6% 21.5% 25.7x 3.23x 15.1x 3.20x 14.4x

Prestige Brands Holdings, Inc. PBH 47.74 88.0% 2,518 1,447 49 3,917 788 296 18.1% 9.3% 58.5% 37.5% 23.1x 4.97x 13.2x 4.63x 12.8x

The Procter & Gamble Company PG 80.99 93.5% 219,043 31,526 14,277 236,292 72,455 18,672 (5.3%) (4.6%) 51.3% 25.8% 25.5x 3.26x 12.7x 3.63x 13.9x

Mean 93.5% $61,723 $8,578 $3,224 $67,077 $19,673 $5,080 2.2% 1.7% 51.5% 27.0% 25.5x 3.82x 14.3x 3.84x 14.2x

Median 93.5% $16,509 $2,296 $390 $18,415 $5,693 $1,222 2.4% 0.5% 51.3% 25.8% 25.5x 3.63x 14.5x 3.63x 14.4x

Housewares

Fiskars Oyj Abp FIS1V 17.20 81.6% 1,409 270 540 1,139 1,105 96 44.0% 13.9% 37.8% 8.7% 16.6x 1.03x 11.9x 0.91x 8.1x

Helen of Troy Limited HELE 88.03 82.7% 2,490 475 21 2,944 1,538 212 11.4% 7.0% 41.5% 13.8% 19.3x 1.91x 13.9x 1.88x 12.3x

Jarden Corp. JAH 49.66 85.7% 10,892 5,858 1,096 15,655 8,432 895 4.5% 8.4% 31.9% 10.6% 43.0x 1.86x 17.5x 1.60x 10.6x

Libbey Inc. LBY 16.18 38.5% 353 447 30 771 837 113 (1.0%) 0.5% 23.6% 13.5% 6.8x 0.92x 6.8x 0.94x 6.8x

Lifetime Brands, Inc. LCUT 11.69 71.1% 164 156 6 314 592 35 5.5% 8.0% 36.4% 5.8% 16.2x 0.53x 9.1x 0.52x NA

Nacco Industries Inc. NC 46.85 74.4% 320 174 12 482 927 3 1.7% 3.8% 19.6% 0.4% NM 0.52x 143.8x NA NA

Newell Rubbermaid Inc. NWL 34.79 68.3% 9,296 3,076 275 12,098 5,916 1,007 3.3% 2.4% 39.2% 17.0% 36.2x 2.04x 12.0x 2.02x 11.4x

SEB SA SK 84.10 86.3% 4,132 908 458 4,582 4,540 497 9.3% 4.0% 11.5% 10.9% 20.8x 1.01x 9.2x 0.94x 8.3x

Spectrum Brands Holdings, Inc. SPB 90.61 85.0% 5,381 4,129 162 9,348 4,841 761 10.1% 13.9% 36.0% 15.7% 30.2x 1.93x 12.3x 1.82x 10.0x

Tupperware Brands Corporation TUP 48.07 65.9% 2,421 771 80 3,112 2,284 384 (12.4%) (4.0%) 67.4% 16.8% 13.0x 1.36x 8.1x 1.43x 8.0x

Mean 74.0% $3,686 $1,626 $268 $5,044 $3,101 $400 7.7% 5.8% 34.5% 11.3% 22.5x 1.31x 24.5x 1.34x 9.4x

Median 78.0% $2,455 $623 $121 $3,028 $1,911 $298 5.0% 5.5% 36.2% 12.2% 19.3x 1.20x 11.9x 1.43x 9.1x

Last Twelve Months (LTM) LTM Margins EV / LTM EV / 2016ERevenue Growth

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CONSUMER AND RETAIL


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Infant & Juvenile

Carter's, Inc. CRI 86.63 79.1% 4,504 585 288 4,801 3,017 462 8.0% 9.5% 41.5% 15.3% 19.7x 1.59x 10.4x 1.53x 9.5x

Crown Crafts, Inc. CRWS 8.23 91.8% 82 0 8 75 85 11 1.7% 2.3% 27.6% 13.3% 12.3x 0.88x 6.6x 0.90x 6.2x

Dorel Industries Inc. DII.B 28.85 69.8% 931 602 38 1,496 2,715 134 4.0% 3.8% 21.4% 4.9% NM 0.55x 11.2x 0.53x 7.8x

Hasbro Inc. HAS 70.08 83.0% 8,734 1,712 977 9,469 4,448 847 4.0% 2.8% 52.8% 19.1% 19.6x 2.13x 11.2x 2.03x 10.3x

JAKKS Pacific, Inc. JAKK 6.52 63.4% 121 240 81 279 836 65 20.6% 7.4% 30.9% 7.8% 6.6x 0.33x 4.3x 0.38x 5.0x

Mattel, Inc. MAT 30.76 89.5% 10,439 2,117 893 11,663 5,703 640 (5.3%) (3.9%) 49.2% 11.2% 28.5x 2.05x 18.2x 2.12x 12.5x

Mothercare plc MTC 1.95 65.4% 333 0 27 306 691 31 (4.2%) (4.3%) 15.8% 4.5% NM 0.44x 9.9x 0.43x 5.8x

Newell Rubbermaid Inc. NWL 34.79 68.3% 9,296 3,076 275 12,098 5,916 1,007 3.3% 2.4% 39.2% 17.0% 36.2x 2.04x 12.0x 2.02x 11.4x

The Children's Place, Inc. PLCE 62.38 89.2% 1,246 34 219 1,061 1,706 148 (2.5%) (1.0%) 35.9% 8.7% 22.9x 0.62x 7.2x 0.61x 5.9x

Goodbaby International Holdings Limited SEHK: 1086 3.24 81.4% 3,592 2,033 796 4,830 7,159 284 50.6% 18.7% 26.0% 4.0% NM 0.67x 17.0x 0.64x 8.7x

Summer Infant, Inc. SUMR 1.67 51.5% 31 56 1 86 206 (1) 3.4% (5.5%) 30.8% NM NM 0.42x NM 0.40x 5.6x

TOMY Company, Ltd. TSE: 7867 737.00 86.6% 62,733 77,744 34,789 105,688 160,527 13,682 8.1% (3.9%) 36.2% 8.5% NM 0.66x 7.7x 0.62x 8.2x

Mean 76.6% $8,503 $7,350 $3,199 $12,654 $16,084 $1,443 7.6% 2.4% 33.9% 10.4% 20.8x 1.03x 10.5x 1.02x 8.1x

Median 80.2% $2,419 $594 $247 $3,148 $2,866 $216 3.7% 2.4% 33.4% 8.7% 19.7x 0.67x 10.4x 0.63x 8.0x

Outdoor & Lifestyle

Arctic Cat Inc. ACAT $14.26 35.9% $186 $0 $11 $175 $610 ($2) (18.1%) (2.4%) 14.6% NM NM 0.29x NM 0.26x 4.2x

Brunswick Corporation BC 39.58 69.9% 3,604 449 669 3,383 4,106 515 7.0% 6.3% 27.1% 12.6% 16.4x 0.82x 6.6x 0.75x 5.7x

Black Diamond, Inc. BDE 4.11 38.2% 135 20 36 119 192 1 15.3% 5.5% 38.0% 0.5% NM 0.62x NM 0.79x 26.2x

Columbia Sportswear Company COLM 55.54 74.3% 3,906 17 370 3,552 2,326 306 10.7% 11.7% 46.1% 13.2% 22.7x 1.53x 11.6x 1.44x 11.0x

Callaway Golf Co. ELY 8.26 80.2% 743 15 50 708 844 44 (4.9%) 0.4% 42.4% 5.3% 48.6x 0.84x NM 0.82x 14.4x

Escalade Inc. ESCA 11.07 55.4% 156 32 3 185 152 19 12.5% 2.0% 29.1% 12.6% 11.9x 1.22x 9.6x 1.13x 8.4x

Fox Factory Holding Corp FOXF 14.56 74.2% 538 60 5 593 345 53 15.9% 20.4% 30.5% 15.4% 26.5x 1.72x 11.1x 1.55x 8.6x

GoPro, Inc. GPRO 10.31 15.7% 1,418 0 474 944 1,620 89 16.2% 192.9% 41.6% 5.5% 41.2x 0.58x 10.6x 0.69x NM

Amer Sports Corp. HLSE: AMEAS 24.06 85.7% 2,823 792 331 3,283 2,534 263 13.7% 7.1% 45.2% 10.4% 23.4x 1.30x 12.5x 1.21x 11.0x

Rapala VMC Corp. HLSE: RAP1V 4.25 72.6% 163 123 11 275 278 28 1.7% (1.5%) 52.9% 9.9% 24.7x 0.99x 10.0x 0.98x 8.3x

Harley-Davidson, Inc. HOG 38.72 59.4% 7,429 6,890 767 13,552 5,995 1,345 (3.7%) 2.4% 37.2% 22.4% 10.5x 2.26x 10.1x 2.54x 10.0x

Johnson Outdoors Inc. JOUT 20.90 59.2% 209 32 49 191 445 33 6.7% 2.0% 39.9% 7.5% 14.4x 0.43x 5.7x 0.42x NA

Malibu Boats, Inc. MBUU 14.35 59.4% 258 76 15 319 243 41 17.6% 34.5% 27.0% 16.7% 13.2x 1.31x 7.8x 1.20x 6.2x

Marine Products Corp. MPX 7.21 80.2% 275 0 16 259 207 21 21.1% 11.6% 21.2% 10.4% 18.6x 1.25x NM 1.17x 10.9x

Nautilus Inc. NLS 18.83 82.0% 583 0 75 509 322 46 25.3% 19.4% 52.5% 14.2% 21.9x 1.58x 11.1x 1.26x 8.3x

Polaris Industries Inc. PII 79.80 50.4% 5,232 463 155 5,540 4,789 868 5.4% 13.9% 29.4% 18.1% 11.8x 1.16x 6.4x 1.17x 6.7x

Sturm, Ruger & Co. Inc. RGR 63.84 95.4% 1,194 0 60 1,134 521 121 (13.7%) 5.6% 30.2% 23.2% 41.0x 2.17x 9.4x 1.93x 8.5x

Smith & Wesson Holding Corporation SWHC 22.84 86.1% 1,246 176 54 1,368 603 147 8.3% 6.4% 38.2% 24.4% 22.2x 2.27x 9.3x 2.03x 8.0x

Shimano Inc. TSE: 7309 17,030.00 84.3% 1,578,740 10,022 190,210 1,398,552 378,645 100,618 13.6% 15.5% 40.8% 26.6% 20.7x 3.69x 13.9x 3.57x 12.6x

V ista Outdoor Inc. VSTO 45.07 91.5% 2,754 687 71 3,370 2,144 305 (0.9%) NA 27.0% 14.2% 22.5x 1.57x 11.0x 1.40x 9.0x

Mean 67.5% $80,580 $993 $9,672 $71,901 $20,346 $5,243 7.5% 18.6% 35.6% 13.8% 22.9x 1.38x 9.8x 1.32x 9.9x

Median 73.4% $968 $46 $57 $826 $606 $71 9.5% 6.4% 37.6% 13.2% 22.0x 1.27x 10.0x 1.18x 8.5x

Last Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM EV / 2016E

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Avon Products Inc. AVP 3.17 33.5% 1,380 2,215 687 2,908 6,161 470 (30.4%) (16.4%) 60.8% 7.6% NM 0.47x 6.2x 0.50x 6.4x

The Estée Lauder Companies Inc. EL 88.31 96.3% 32,549 1,982 1,420 33,111 11,064 2,129 1.0% 3.5% 80.5% 19.2% 28.5x 2.99x 15.6x 2.86x 14.6x

Herbalife Ltd. HLF 44.64 72.1% 4,131 1,653 813 4,971 4,504 700 (11.6%) 4.9% 52.2% 15.5% 10.6x 1.10x 7.1x 1.09x 6.9x

Kimberly-Clark Corporation KMB 128.63 97.1% 46,423 7,839 619 53,643 18,591 4,133 (5.7%) (1.5%) 35.8% 22.2% 46.4x 2.89x 13.0x 2.93x 13.0x

Medifast Inc. MED 28.96 86.0% 341 0 66 274 274 42 2.4% (7.2%) 73.4% 15.2% 19.2x 1.00x 6.6x 0.98x 7.3x

Nu Skin Enterprises Inc. NUS 29.14 46.3% 1,668 250 304 1,614 2,247 314 (12.5%) 1.8% 78.2% 14.0% 13.0x 0.72x 5.1x 0.75x 5.1x

The Procter & Gamble Company PG 80.99 93.5% 219,043 31,526 14,277 236,292 72,455 18,672 (5.3%) (4.6%) 51.3% 25.8% 25.5x 3.26x 12.7x 3.63x 13.9x

Elizabeth Arden, Inc. RDEN 5.64 32.3% 169 382 54 496 949 (15) (5.7%) (10.3%) 43.3% NM NM 0.52x NM 0.50x 16.2x

Revlon, Inc. REV 27.56 66.1% 1,445 1,849 181 3,113 1,893 311 (1.9%) 10.7% 66.0% 16.4% 40.8x 1.64x 10.0x NA NA

Sally Beauty Holdings Inc. SBH 30.11 85.4% 4,500 1,783 67 6,215 3,868 617 2.4% 2.8% 49.6% 15.9% 21.2x 1.61x 10.1x 1.56x 9.9x

ULTA Salon, Cosmetics & Fragrance, Inc. ULTA 158.49 84.1% 10,096 0 360 9,736 3,703 629 21.0% 21.9% 35.0% 17.0% 34.1x 2.63x 15.5x 2.25x 13.1x

USANA Health Sciences Inc. USNA 104.51 59.1% 1,335 0 143 1,191 918 151 16.2% 12.3% 82.6% 16.5% 14.6x 1.30x 7.9x 1.17x 7.5x

All for One Steeb AG XTRA:A1OS $55.99 72.8% $279 $25 $35 $269 $251 $27 12.9% 14.7% 23.3% 10.8% 21.8x 1.07x 10.0x 1.04x 9.6x

Mean 71.1% $24,874 $3,808 $1,464 $27,218 $9,760 $2,168 (1.3%) 2.5% 56.3% 16.3% 25.1x 1.63x 10.0x 1.61x 10.3x

Median 72.8% $1,668 $1,653 $304 $3,113 $3,703 $470 (1.9%) 2.8% 52.2% 16.2% 21.8x 1.30x 10.0x 1.13x 9.8x

Pet Care

Blue Buffalo Pet Products, Inc. BUFF 16.69 58.0% 3,274 388 185 3,477 1,000 192 15.0% NA 39.9% 19.2% 32.7x 3.48x 18.1x 3.16x 14.4x

Central Garden & Pet Company CENT $14.23 77.9% $701 $436 $9 $1,128 $1,703 $145 5.1% 0.3% 29.3% 8.5% 24.3x 0.66x 7.8x 0.64x 7.4x

Freshpet, Inc. FRPT $6.37 24.6% $213 $0 $19 $194 $110 $2 38.2% NA 47.9% 1.5% NM 1.76x 117.0x 1.46x 12.0x

Oil-Dri Corp. of America ODC 36.54 93.9% 265 15 24 256 263 32 (2.1%) 2.8% 25.5% 12.1% 17.9x 0.97x 8.0x NA NA

Spectrum Brands Holdings, Inc. SPB 90.61 85.0% 5,381 4,129 162 9,348 4,841 761 10.1% 13.9% 36.0% 15.7% 30.2x 1.93x 12.3x 1.82x 10.0x

Maabarot Products Ltd. TASE:MABR 45.77 81.6% 449 18 158 309 346 23 (5.3%) (0.1%) 41.9% 6.7% NM 0.89x 13.2x NA NA

Echo Trading Co., Ltd. TSE:7427 603.00 86.1% 3,640 5,800 3,496 5,944 74,964 56 (0.5%) (0.3%) 12.6% 0.1% NM 0.08x 106.6x NA NA

Unicharm Corporation TSE:8113 2,315.00 68.1% 1,384,628 69,024 138,503 1,315,149 738,707 112,152 13.4% 18.2% 45.0% 15.2% 34.8x 1.78x 11.7x 1.64x 11.2x

Mean 71.9% $174,819 $9,976 $17,820 $166,976 $102,742 $14,170 9.2% 5.8% 34.8% 9.9% 28.0x 1.44x 36.8x 1.74x 11.0x

Median 79.7% $1,987 $412 $160 $2,303 $1,352 $100 7.6% 1.5% 37.9% 10.3% 30.2x 1.37x 12.8x 1.64x 11.2x

LTM MarginsLast Twelve Months (LTM) EV / 2016ERevenue Growth EV / LTM

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CONSUMER AND RETAIL


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Retail

Apparel & Footwear Retail

American Eagle Outfitters, Inc. AEO 13.65 73.8% 2,657 0 363 2,294 3,488 463 7.2% 1.0% 45.2% 13.3% 13.3x 0.66x 5.0x 0.64x 4.5x

Abercrombie & Fitch Co. ANF $24.77 87.8% $1,665 $338 $406 $1,597 $3,525 $343 (10.2%) (6.9%) 61.4% 9.7% NM 0.45x 4.7x 0.46x 4.9x

Aéropostale, Inc. ARO 0.19 4.3% 15 143 42 116 1,603 (62) (16.3%) (12.6%) 31.8% NM NM 0.07x NM 0.08x NM

Ascena Retail Group Inc. ASNA 6.65 37.8% 1,288 1,807 324 2,771 5,281 474 10.3% 12.4% 56.3% 9.0% NM 0.52x 5.8x 0.38x 3.9x

The Buckle, Inc. BKE 29.22 56.2% 1,404 0 150 1,255 1,141 273 0.2% 1.2% 49.3% 23.9% 9.2x 1.10x 4.6x 1.12x 4.9x

Cabela's Incorporated CAB 41.14 69.8% 2,852 4,295 39 7,108 3,864 443 8.5% 9.1% 43.4% 11.5% 15.6x 1.84x 16.0x 1.71x 12.7x

Caleres, Inc. CAL 25.38 75.0% 1,109 200 86 1,223 2,584 176 1.1% 1.3% 40.5% 6.8% 12.9x 0.47x 7.0x 0.46x 5.9x

The Cato Corporation CATO 33.88 75.5% 925 0 260 665 1,001 116 3.8% 2.3% 39.2% 11.5% 14.8x 0.66x 5.8x 0.64x NA

Chico's FAS Inc. CHS 9.75 52.6% 1,358 95 139 1,314 2,672 282 1.6% 2.3% 53.9% 10.5% NM 0.49x 4.7x 0.51x 4.6x

Citi Trends, Inc. CTRN 18.00 62.7% 275 0 76 199 689 42 6.5% 1.6% 38.8% 6.2% 16.4x 0.29x 4.7x 0.28x 4.3x

Destination Maternity Corporation DEST 6.83 40.8% 95 45 2 137 488 (54) (5.6%) (3.4%) 39.6% NM NM 0.28x NM NA NA

DSW Inc. DSW 22.78 57.6% 1,973 0 90 1,883 2,588 317 6.6% 5.9% 37.4% 12.2% 13.1x 0.73x 5.9x 0.70x 6.9x

Destination XL Group, Inc. DXLG 4.15 61.9% 211 84 6 289 438 33 9.4% 3.4% 47.3% 7.5% NM 0.66x 8.8x 0.63x 9.2x

Express Inc. EXPR 16.17 78.0% 1,335 70 91 1,313 2,310 269 7.2% 3.4% 42.9% 11.7% 13.4x 0.57x 4.9x 0.54x 4.4x

Finish Line Inc. FINL 17.89 61.6% 794 0 55 738 1,860 133 4.0% 8.5% 38.0% 7.2% 14.1x 0.40x 5.5x 0.39x 4.6x

Foot Locker, Inc. FL 65.95 85.4% 9,052 131 878 8,305 7,316 1,056 4.1% 7.0% 42.3% 14.4% 17.7x 1.14x 7.9x 1.08x 7.2x

Genesco Inc. GCO 62.95 84.2% 1,391 215 28 1,578 2,983 250 8.1% 5.6% 48.4% 8.4% 14.5x 0.53x 6.3x 0.51x 6.3x

Guess? Inc. GES 17.88 76.2% 1,498 7 402 1,102 2,243 219 (9.9%) (5.0%) 36.0% 9.7% 17.3x 0.49x 5.0x 0.51x 5.1x

The Gap, Inc. GPS 23.73 54.1% 9,537 1,752 1,042 10,247 16,120 2,373 (1.1%) 2.0% 37.0% 14.7% 9.7x 0.64x 4.3x 0.65x 4.9x

L Brands, Inc. LB 81.87 81.0% 23,696 5,766 1,321 28,141 11,828 2,517 5.6% 5.3% 47.5% 21.3% 20.6x 2.38x 11.2x 2.23x 10.4x

Lululemon Athletica Inc. LULU 58.84 84.1% 8,079 0 403 7,675 1,959 423 14.2% 16.0% 48.6% 21.6% 32.1x 3.92x 18.2x 3.45x 16.8x

Tailored Brands, Inc. TLRD 13.29 20.1% 643 1,656 54 2,246 3,599 328 24.8% 13.8% 42.7% 9.1% NM 0.62x 6.8x 0.66x 6.7x

New York & Company Inc. NWY 1.90 61.1% 123 14 45 92 946 26 2.1% (0.0%) 38.0% 2.7% NM 0.10x 3.6x 0.09x 2.4x

The Children's Place, Inc. PLCE 62.38 89.2% 1,246 34 219 1,061 1,706 148 (2.5%) (1.0%) 35.9% 8.7% 22.9x 0.62x 7.2x 0.61x 5.9x

Pacific Sunwear of California Inc. PSUN 0.19 6.2% 13 132 11 134 800 (1) (1.7%) 2.0% 43.3% NM NM 0.17x NM 0.17x 10.6x

Ross Stores Inc. ROST 53.75 94.0% 21,769 396 487 21,678 11,722 1,875 9.0% 7.8% 32.3% 16.0% 21.9x 1.85x 11.6x 1.74x 10.9x

Shoe Carnival Inc. SCVL 22.60 75.3% 451 0 49 402 978 68 7.1% 5.6% 29.4% 6.9% 16.4x 0.41x 5.9x 0.40x 5.5x

Stein Mart Inc. SMRT 6.58 39.5% 301 192 14 478 1,353 83 4.7% 4.2% 29.1% 6.2% 10.3x 0.35x 5.7x 0.34x 5.6x

Stage Stores Inc. SSI 7.15 30.7% 219 172 23 367 1,627 121 1.3% 0.6% 26.8% 7.4% 8.7x 0.23x 3.0x 0.24x 3.6x

Urban Outfitters Inc. URBN 24.81 52.5% 2,911 115 219 2,807 3,443 496 7.0% 8.9% 41.9% 14.4% 13.9x 0.82x 5.7x 0.79x 5.6x

Zumiez, Inc. ZUMZ 18.59 45.7% 496 1 51 446 820 93 5.2% 9.3% 34.4% 11.4% 16.1x 0.54x 4.8x 0.54x 6.0x

Mean 60.5% $3,206 $570 $238 $3,537 $3,322 $430 3.6% 3.6% 41.3% 11.2% 15.7x 0.77x 6.8x 0.75x 6.6x

Median 61.9% $1,288 $95 $90 $1,255 $2,243 $250 4.7% 3.4% 40.5% 10.1% 14.6x 0.54x 5.7x 0.54x 5.6x

Department Chains

Bon-Ton Stores Inc. BONT $1.55 20.2% $33 $1,139 $22 $1,150 $2,803 $120 0.3% (1.7%) 36.4% 4.3% NM 0.41x 9.6x 0.41x 9.1x

Dillard's Inc. DDS 67.44 46.8% 2,476 952 100 3,327 6,817 786 2.1% 1.0% 36.5% 11.5% 8.6x 0.49x 4.2x 0.51x 4.9x

J. C. Penney Company, Inc. JCP 6.99 69.3% 2,139 5,314 638 6,815 12,522 623 3.1% (4.8%) 36.0% 5.0% NM 0.54x 10.9x 0.53x 8.2x

Nordstrom Inc. JWN 48.91 58.8% 8,993 2,809 821 10,981 14,287 1,792 8.4% 6.9% 36.6% 12.5% 14.0x 0.77x 6.1x 0.74x 6.4x

Kohl's Corp. KSS 40.81 51.3% 7,747 5,135 501 12,381 19,154 2,582 2.0% 0.3% 36.4% 13.5% 10.8x 0.65x 4.8x 0.64x 5.0x

Macy's, Inc. M 39.25 53.3% 12,339 7,963 474 19,828 27,574 3,670 (1.3%) 0.6% 40.0% 13.3% 10.2x 0.72x 5.4x 0.75x 6.3x

Stage Stores Inc. SSI 7.15 30.7% 219 172 23 367 1,627 121 1.3% 0.6% 26.8% 7.4% 8.7x 0.23x 3.0x 0.24x 3.6x

Hudson's Bay Company TSX: HBC 14.98 50.7% 2,728 4,399 292 6,835 9,308 596 17.2% 32.6% 41.0% 6.4% 24.6x 0.73x 11.5x 0.48x 7.8x

Mean 47.6% $4,584 $3,485 $359 $7,711 $11,761 $1,286 4.1% 4.4% 36.2% 9.2% 12.8x 0.57x 7.0x 0.54x 6.4x

Median 51.0% $2,602 $3,604 $383 $6,825 $10,915 $704 2.0% 0.6% 36.5% 9.5% 10.5x 0.60x 5.8x 0.52x 6.3x


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PUBLIC COMPARABLES

CONSUMER AND RETAIL


12



Discount Stores & Mass Merchants

Big Lots Inc. BIG 36.25 70.9% 1,796 335 62 2,070 5,200 351 0.9% (0.7%) 39.8% 6.8% 13.2x 0.40x 5.9x 0.39x 5.5x

Costco Wholesale Corporation COST 148.65 87.6% 65,373 6,126 6,283 65,216 116,553 4,765 1.8% 4.8% 13.1% 4.1% 27.8x 0.56x 13.7x 0.53x 12.8x

CVS Health Corporation CVS 95.86 84.3% 105,542 27,464 2,547 130,459 153,290 11,856 10.0% 7.6% 17.3% 7.7% 20.7x 0.85x 11.0x 0.72x 9.8x

Dollar General Corporation DG 70.46 86.5% 20,499 3,107 183 23,423 20,021 2,259 8.4% 7.8% 30.9% 11.3% 18.4x 1.17x 10.4x 1.08x 9.7x

Dollar Tree, Inc. DLTR 75.23 89.3% 17,664 8,344 1,111 24,896 12,609 1,500 50.8% 21.1% 36.3% 11.9% NM 1.97x 16.6x 1.20x 10.6x

Macy's, Inc. FDO 35.15 52.0% 12,339 7,963 474 19,828 27,574 3,670 (1.3%) 0.6% 40.0% 13.3% NA 0.72x 5.4x 0.75x 6.3x

Gordmans Stores, Inc. GMAN 2.50 28.0% 49 66 9 107 656 18 2.6% 3.1% 41.6% 2.7% NM 0.16x 6.0x 0.16x 6.6x

PriceSmart Inc. PSMT 75.70 73.1% 2,299 98 140 2,257 2,858 185 11.3% 10.8% 15.9% 6.5% 24.8x 0.79x 12.2x 0.76x 11.7x

Rite Aid Corporation RAD 7.82 82.6% 8,183 7,367 226 15,325 29,314 1,327 11.6% 4.0% 26.4% 4.5% 4.2x 0.52x 11.5x 0.46x 10.1x

Target Corp. TGT 69.95 81.5% 43,093 12,788 1,996 53,885 73,909 7,411 4.0% 0.9% 29.7% 10.0% 15.5x 0.73x 7.3x 0.75x 7.2x

The TJX Companies, Inc. TJX 69.87 90.8% 46,780 1,624 2,123 46,281 30,287 4,271 6.0% 6.8% 28.7% 14.1% 21.3x 1.53x 10.8x 1.44x 10.5x

Tuesday Morning Corporation TUES 6.21 31.4% 276 0 35 240 925 22 2.9% 3.8% 35.8% 2.4% 47.7x 0.26x NM 0.25x 8.7x

Walgreens Boots Alliance, Inc. WBA 77.08 79.2% 83,150 14,277 2,603 94,824 112,923 7,612 45.5% 16.8% 25.9% 6.7% 18.8x 0.84x 12.5x 0.78x 10.2x

Wal-Mart Stores Inc. WMT 66.18 76.7% 211,901 53,124 6,990 258,035 484,028 34,727 0.0% 1.4% 25.0% 7.2% 14.2x 0.53x 7.4x 0.53x 8.0x

Mean 72.4% $44,210 $10,192 $1,770 $52,632 $76,439 $5,712 11.0% 6.3% 29.0% 7.8% 20.6x 0.79x 10.1x 0.70x 9.1x

Median 80.4% $19,081 $6,747 $792 $24,160 $28,444 $2,964 5.0% 4.4% 29.2% 7.0% 18.8x 0.72x 10.8x 0.73x 9.7x

Furniture & Furnishings Retailers

Aaron's, Inc. AAN $22.08 54.1% $1,603 $494 $67 $2,030 $3,137 $441 25.5% 13.0% 50.9% 14.0% 11.8x 0.65x 4.6x 0.60x 5.8x

Bed Bath & Beyond Inc. BBBY 42.94 54.7% 7,024 1,500 491 8,034 12,023 1,702 2.3% 5.5% 38.5% 14.2% 8.5x 0.67x 4.7x 0.66x 5.0x

Conns Inc. CONN 13.51 30.7% 436 1,160 109 1,486 1,583 101 11.5% 23.5% 27.7% 6.4% 11.0x 0.94x 14.7x 0.84x 7.8x

Ethan Allen Interiors Inc. ETH 26.25 82.4% 730 58 57 731 765 95 0.7% 1.1% 55.1% 12.4% 16.9x 0.96x 7.7x 0.91x 6.7x

hhgregg, Inc. HGG 1.70 24.7% 47 0 7 40 2,007 (7) (8.0%) (7.0%) 28.3% NM NM 0.02x NM 0.02x 5.2x

Haverty Furniture Companies Inc. HVT 17.86 68.7% 395 54 80 369 802 73 6.7% 6.9% 53.4% 9.1% 49.7x 0.46x 5.1x 0.44x 4.7x

Kirkland's Inc. KIRK 12.73 43.1% 217 0 32 184 542 47 11.7% 7.6% 48.1% 8.7% 14.3x 0.34x 3.9x 0.31x 3.7x

La-Z-Boy Incorporated LZB 20.12 68.6% 1,010 5 85 930 1,457 133 4.7% 5.3% 36.6% 9.2% 14.5x 0.64x 7.0x 0.59x 5.8x

Pier 1 Imports, Inc. PIR 4.05 27.7% 339 240 49 531 1,878 154 2.2% 4.8% 37.7% 8.2% 6.5x 0.28x 3.4x 0.29x 4.4x

Rent-A-Center, Inc. RCII 11.45 34.1% 608 968 60 1,516 3,278 297 3.8% 2.2% 65.7% 9.0% NM 0.46x 5.1x 0.47x 5.1x

Restoration Hardware Holdings, Inc. RH 47.22 44.3% 1,911 746 388 2,269 2,045 246 16.4% 22.9% 37.1% 12.0% 19.9x 1.11x 9.2x 0.93x 7.2x

Select Comfort Corporation SCSS 15.58 43.6% 770 0 28 742 1,214 123 4.9% 9.1% 61.0% 10.1% 16.1x 0.61x 6.0x 0.55x 4.8x

The Sherwin-Williams Company SHW 256.65 87.2% 23,894 1,960 91 25,763 11,339 1,811 1.9% 5.9% 49.0% 16.0% 23.0x 2.27x 14.2x 2.21x 13.1x

Williams-Sonoma Inc. WSM 52.07 58.3% 4,678 200 72 4,806 4,932 663 6.7% 8.1% 37.6% 13.4% 15.3x 0.97x 7.2x 0.92x 6.7x

Mean 51.6% $3,119 $528 $115 $3,531 $3,357 $420 6.5% 7.8% 44.8% 11.0% 17.3x 0.74x 7.2x 0.70x 6.1x

Median 49.2% $750 $220 $70 $1,208 $1,942 $144 4.8% 6.4% 43.3% 10.1% 14.9x 0.64x 6.0x 0.60x 5.5x

EV / 2016ELast Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


13



Internet Retail

Amazon.com, Inc. AMZN 507.08 72.8% 238,755 17,547 19,808 236,494 107,006 7,879 20.2% 20.5% 33.0% 7.4% NM 2.21x 30.0x 1.82x 16.7x

Alibaba Group Holding Limited BABA $60.89 64.1% $152,982 $56,516 $120,382 $89,116 $94,384 $32,157 33.3% NA 67.2% 34.1% 14.8x 0.94x 2.8x 4.74x 9.4x

Cimpress N.V . CMPR 78.76 83.3% 2,468 702 79 3,091 1,592 209 13.9% 12.9% 59.8% 13.1% 36.2x 1.94x NM 1.73x 11.2x

eBay Inc. EBAY 22.49 33.7% 26,509 6,779 6,131 27,157 8,592 2,946 (2.3%) (15.2%) 79.4% 34.3% 14.1x 3.16x 9.2x 3.11x 7.9x

Mercadolibre, Inc. MELI 91.95 59.9% 4,060 297 341 4,016 632 189 19.4% 21.1% 74.7% 29.8% 40.5x 6.35x NM 6.10x 22.9x

Blue Nile Inc. NILE 24.85 63.7% 287 0 87 201 480 20 1.4% 6.3% 19.2% 4.1% 27.6x 0.42x 10.1x 0.42x 8.9x

Overstock.com Inc. OSTK 13.53 52.2% 341 15 170 186 1,658 25 10.7% 14.7% 18.4% 1.5% NM 0.11x 7.6x 0.10x 3.8x

The Priceline Group Inc. PCLN 1,058.01 71.7% 52,672 5,443 3,053 55,062 9,064 3,438 11.3% 21.4% 92.2% 37.9% 22.1x 6.07x 16.0x 5.40x 13.4x

Shutterfly, Inc. SFLY 38.42 78.2% 1,336 378 312 1,403 1,059 132 15.0% 18.3% 50.2% 12.4% NM 1.32x 10.7x 1.22x 6.5x

Stamps.com Inc. STMP 85.60 74.9% 1,421 2 99 1,324 186 47 34.9% 18.1% 78.5% 25.3% NM 7.12x 28.1x 4.88x 15.5x

Rakuten, Inc. TSE: 4755 991.00 41.4% 1,411,546 649,195 501,029 1,559,712 713,555 157,219 19.2% 17.2% 30.7% 22.0% 30.9x 2.19x 9.9x 1.95x 9.1x

Wayfair Inc. W 35.91 63.2% 3,021 0 325 2,696 1,919 (116) 59.1% NA 24.2% NM NM 1.40x NM 0.96x NM

Mean 63.3% $157,950 $61,406 $54,318 $165,038 $78,344 $17,012 19.7% 13.5% 52.3% 20.2% 26.6x 2.77x 13.8x 2.70x 11.4x

Median 63.9% $3,541 $540 $333 $3,554 $1,788 $199 17.1% 17.7% 55.0% 22.0% 27.6x 2.06x 10.1x 1.88x 9.4x

Specialty & Other Retail

Best Buy Co., Inc. BBY 28.12 67.0% 9,637 1,639 3,347 7,929 40,114 2,217 3.4% (0.3%) 22.9% 5.5% 11.6x 0.20x 3.6x 0.20x 3.6x

Big 5 Sporting Goods Corp. BGFV 12.50 80.8% 275 69 6 338 1,004 48 3.0% 2.8% 31.7% 4.8% 19.9x 0.34x 7.1x 0.33x NA

Barnes & Noble, Inc. BKS $8.35 28.8% $638 $192 $13 $817 $5,996 $290 13.9% (5.7%) 30.3% 4.8% NM 0.14x NM 0.20x 4.0x

Dick's Sporting Goods Inc. DKS 37.43 62.0% 4,304 348 74 4,578 7,191 771 8.9% 8.4% 30.6% 10.7% 12.4x 0.64x 5.9x 0.59x 5.7x

The Home Depot, Inc. HD 116.32 85.9% 147,480 20,862 3,040 165,302 86,701 13,141 6.1% 6.1% 34.9% 15.2% 21.8x 1.91x 12.6x 1.80x 11.3x

Hibbett Sports, Inc. HIBB 30.90 55.4% 704 3 45 662 937 131 5.0% 5.8% 35.5% 14.0% 10.4x 0.71x 5.0x 0.67x 4.9x

Marinemax Inc. HZO 15.73 56.8% 403 188 25 566 763 33 13.3% 12.8% 24.8% 4.3% 8.0x 0.74x 17.2x 0.67x 13.3x

Lumber Liquidators Holdings, Inc. LL 12.33 17.6% 334 20 54 300 1,016 13 (1.7%) 9.3% 33.1% 1.3% NM 0.30x 22.7x 0.29x NM

Lowe's Companies, Inc. LOW 64.87 83.0% 59,363 12,599 1,385 70,577 58,379 6,953 5.5% 4.5% 34.8% 11.9% 20.6x 1.21x 10.2x 1.16x 9.1x

Movado Group, Inc. MOV 25.11 78.0% 578 40 181 437 586 81 0.0% 5.1% 52.9% 13.8% 13.0x 0.75x 5.4x 0.72x 5.0x

Office Depot, Inc. ODP 4.94 50.6% 2,711 1,523 958 3,276 14,840 671 (5.8%) 10.4% 24.1% 4.5% NM 0.22x 4.9x 0.23x 3.6x

Staples, Inc. SPLS 8.32 48.3% 5,355 1,035 782 5,608 21,447 1,393 (5.6%) (3.9%) 26.2% 6.5% NM 0.26x 4.0x 0.27x 4.2x

Tiffany & Co. TIF 61.73 64.0% 7,915 1,079 725 8,268 4,176 1,012 (2.0%) 3.7% 60.1% 24.2% 16.1x 1.98x 8.2x 2.03x 8.4x

Tractor Supply Company TSCO 83.48 86.7% 11,214 168 64 11,318 6,227 774 9.0% 10.1% 34.4% 12.4% 27.8x 1.82x 14.6x 1.64x 12.8x

V itamin Shoppe, Inc. VSI 29.45 65.7% 858 8 2 864 1,263 140 7.1% 10.1% 41.9% 11.1% 14.9x 0.68x 6.1x 0.66x 6.0x

Mean 62.0% $16,785 $2,652 $713 $18,723 $16,709 $1,845 4.0% 5.3% 34.5% 9.7% 16.1x 0.79x 9.1x 0.76x 7.1x

Median 64.0% $2,711 $192 $74 $3,276 $5,996 $671 5.0% 5.8% 33.1% 10.7% 14.9x 0.68x 6.6x 0.66x 5.7x


PAGE |

M&A TRANSACTIONS

RECENT NORTH AMERICAN CONSUMER M&A

CONSUMER AND RETAIL


Private Equity

Announced Target Seller Buyer Involvement

2/15/2016 True Textiles, Inc. Thomas H. Lee Partners, L.P.; LBC Credit Partners, Inc.; Sun Capital Partners, Inc.Duvaltex Inc. P

2/12/2016 THE WHEAT GROUP, INC. - United Legwear Company, LLC

2/11/2016 Furniture Factory Outlet, LLC Alpine Investors, LP Sun Capital Partners, Inc. P

2/11/2016 Sprig Toys, Inc. - BeginAgain, Inc.

2/11/2016 Etch A Sketch and Doodle Sketch The Ohio Art Company, Inc. (OTCPK:OART) Spin Master Corp. (TSX:TOY)

2/11/2016 WorldStrides, Inc. The Carlyle Group LP (NasdaqGS:CG) Metalmark Capital LLC P

2/10/2016 Stop Aging Now, LLC - Wellnext, LLC

2/10/2016 iDevices, LLC, iGrill® iDevices, LLC Weber-Stephen Products LLC

2/7/2016 Apollo Education (NasdaqGS:APOL) Glenview Capital Management, LLC; Fidelity Management & Research Company; Robeco Boston Partners; T. Rowe Price Associates, Inc.; Aronson+Johnson+Ortiz, LPNajafi Companies P

2/5/2016 LeapFrog Enterprises Inc. (NYSE:LF) Blue Pacific Partners, LLC; Franklin Templeton Investments Corp.Vtech Holdings Ltd. (SEHK:303) P

2/5/2016 efsAUDIO Inc. - Compass Biotechnologies Inc. (OTCPK:COBI)

2/4/2016 Large Car Wash Operation - First Colombia Gold Corp. (OTCPK:FCGD)

2/4/2016 LMC Right Start, Inc. Liberty Interactive Corporation (NasdaqGS:QVCA) giggle, Inc.

2/2/2016 Rona Inc. (TSX:RON) Capital d'Amérique CDPQ Inc.; Invesco Canada Ltd.; First Asset Investment Management Inc.; Fonds régional de solidarité FTQ Montérégie; Caisse de dépôt et placement du Québec; Fonds de solidarité FTQLowe's Companies Canada, ULC P

2/2/2016 mophie, inc. mStation Corporation; Beringea LLC; Grosvenor Capital Management Customized Fund Investment GroupZAGG Inc (NasdaqGS:ZAGG) P

2/2/2016 Blumenthal Lansing Company, LLC - CSS Industries Inc. (NYSE:CSS)

2/1/2016 Vitamin World, Inc. NBTY, Inc. Centre Lane Partners, LLC P

1/29/2016 Creative Embroidery - -

1/28/2016 TicketBreak Ltd. MapleCore Ltd. Ticketfly, Inc.

1/28/2016 All Star Vending & Coffee Service LLC - Canteen Vending Services, Inc.

1/28/2016 Ellsworth Handcrafted Bicycles, Inc. Iso Nano International LLC -

1/28/2016 GetGoing, Inc. Y Combinator; Data Collective; TA Ventures; InVenture PartnersBCD Travel B.V. P

1/28/2016 Really Good Stuff, Inc. - Excelligence Learning Corporation

1/27/2016 Triboro Quilt Manufacturing Corporation - Gerber Childrenswear LLC

1/25/2016 Valeant Groupe Cosméderme Inc. Valeant Canada Ltd. INTEGA Skin Sciences Inc.

1/25/2016 Mccarthy's Hockey & Lacrose Supply Co, Inc. - LaxWorld Inc.

1/22/2016 Swanson Health Products, Inc. - Swander Pace Capital P

1/22/2016 Fiskars Brands, Inc., American Designer Pottery Fiskars Brands, Inc. Bloem Living LLC

1/21/2016 Triumph Sports USA, Inc. - Escalade Sports, Inc.

1/21/2016 SparkBox Toys LLC. - Pley Inc.

1/21/2016 Rose America Corporation - Guardian Capital Partners P

1/21/2016 A Fresh Start II, LLC - CORE TEAM, Inc.

1/20/2016 Cybex International Inc. UM Holdings Ltd. Brunswick Corporation (NYSE:BC) P

1/20/2016 BBC Ice Cream, LLC Iconix Brand Group, Inc. (NasdaqGS:ICON) -

1/19/2016 ABC Phones of North Carolina, Inc. Atlantic Street Capital Management, LLC Lone Star Funds P

1/19/2016 LIDS Team Sports The LIDS Sports Group BSN Sports, LLC

1/18/2016 Jerry's Sporting Goods Store - BSN Sports, LLC

1/15/2016 GE Appliances Inc. General Electric Company (NYSE:GE) Qingdao Haier Co., Ltd. (SHSE:600690)

1/14/2016 Prime Life Nutriceuticals, Inc. - Sisquoc Healthcare, Inc.

1/13/2016 Epic Performance, LLC. - NutraFuels, Inc. (OTCPK:NTFU)

1/13/2016 Easton Hockey, Inc. Chartwell Investments Inc. Performance Sports Group Ltd. (TSX:PSG) P

1/8/2016 Long Elegant Legs, Inc. - Long Tall Sally Ltd.

1/7/2016 Gilt Groupe Inc. Draper Fisher Jurvetson, General Atlantic LLC Hudson's Bay Company (TSX:HBC) P

1/7/2016 Majorsales, LLC - Level Nine Sports, INC.

1/7/2016 Sojourner Farms, LLC - WellPet LLC

1/6/2016 Solutions In Mind, Inc. - Frontline Technologies Group LLC

1/6/2016 Maykah, Inc. iD Ventures America, LLC; StartX Patch Products, Inc.

1/6/2016 California Family Health, LLC Bunker Hill Capital Perpetual Capital Partners LLC P

1/6/2016 Holiday Travel, Inc. - Xanterra Parks & Resorts, Inc.

1/5/2016 Home Meridian International, Inc. - Hooker Furniture Corp. (NasdaqGS:HOFT)

1/5/2016 Mills e-Commerce Enterprises, Inc. - KKR & Co. L.P. (NYSE:KKR) P

1/5/2016 Slim, Inc. - Ricardo Beverly Hills, Inc.

1/5/2016 Reef One Inc - OASE GmbH

1/4/2016 509, Inc. - Polaris Industries Inc. (NYSE:PII)

12/31/2015 Octane Fitness, LLC North Castle Partners, LLC Nautilus Inc. (NYSE:NLS)

12/29/2015 Loken Imports, LLC - BCS International, Inc.

12/28/2015 Fitness First Inc. - Combat Brands, LLC

12/23/2015 Orapup - TRUPET LLC

12/22/2015 Brooklyn Nets / Barclay's Center (Minority Stake) Nets Sports and Entertainment LLC Onexim Sports and Entertainment Holding USA, Inc.

12/22/2015 Complete Nutrition, Inc. - Dominus Capital, L.P. P

12/17/2015 Avon Products, Inc., North American business Avon Products Inc. (NYSE:AVP) Cerberus Capital Management, L.P. P

12/17/2015 SBD Holdings Group Corp., South Beach Diet Brand SBD Holdings Group Corp. Nutrisystem, Inc. (NasdaqGS:NTRI)

12/16/2015 1-800 CONTACTS, Inc. Thomas H. Lee Partners, L.P. AEA Investors LP P

12/15/2015 Arrow Group Industries, Inc. - ShelterLogic Corp.

12/15/2015 PRO-TEC Brand DYE Precision, Inc. Bravo Sports Corporation

12/14/2015 TractorSearch.com USAgNet LLC Machinery Pete LLC

12/13/2015 Jarden Corp. The Vanguard Group & J.P. Morgan Newell Rubbermaid Inc.

12/11/2015 Bryan Schuetz DC Inc. - BioStem Technologies, Inc.

12/10/2015 Smart Wireless, 56 stores in OR & WA Smart Wireless, Inc. Spring Communications, Inc.

12/10/2015 Nobile Communications, 50 stores in FL Nobile Communications Spring Communications, Inc.

12/7/2015 Next University, Inc. Flybridge Capital Partners & Grupo Arcano Open English LLC P

12/7/2015 Runaway Tours, LLC - NFL On Location

12/4/2015 Brahms Mount - SFERRA Bros., Ltd.

12/4/2015 Truckee Rents, Inc. - Mountain Hardware & Sports, Inc.

12/4/2015 FDS Inc. Inspired Beauty Brands Inc. WellSpring Pharmaceutical Corporation

12/3/2015 Balboa Water Group, Inc. Quad-C Management, Inc. - P

14

PAGE |

M&A TRANSACTIONS

RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED)

CONSUMER AND RETAIL


Private Equity


12/3/2015 Bargain Hunt Superstores - Thomas H. Lee Partners, L.P. P

12/3/2015 Clipper Mill, Inc. - G.E.T. Enterprises, LLC

12/3/2015 Rothschild's Home Health Care Center Inc. - Nunn's Home Medical Equipment, Inc.

12/2/2015 The One World Doll Project, Inc. One World Holdings, Inc. Tonner Doll Company, Inc.

12/2/2015 Environment Furniture, Inc. HCAP Partners Cisco Bros. Corp. P

12/2/2015 MynettMusic, LLC - Sweetwater Sound Inc.

12/1/2015 Alexandria Holdings Corp. Fila Korea Ltd. -

11/27/2015 D&J Hobby Inc. - -

11/25/2015 EXO, Inc. - PF Hospitality Group, Inc

11/25/2015 The Brace Shop, LLC - VeriTeQ Corporation

11/25/2015 Sleepy's, LLC Calera Capital Mattress Firm, Inc. P

11/24/2015 CucinaPro, Inc. - SCS Direct Inc.

11/24/2015 Old Time SPORTS, Inc. - '47 Brand, Inc.

11/24/2015 All Aboard USA, Inc. - Premier Transportation, LLC

11/23/2015 Tri-Lite, Inc., Heater Business Tri-Lite, Inc. Bird-X, Inc.

11/23/2015 DenTek Oral Care, Inc. TSG Consumer Partners Prestige Brands Holdings, Inc. P

11/23/2015 PETCO Animal Supplies, Inc. Freeman Spogli, LG&P, TPG, and others CVC & CPPIB P

11/23/2015 Coveroo, Inc. Rembrandt Venture Partners Zazzle Inc. P

11/20/2015 Bernard Chaus, Inc. - Camuto Group, Inc.

11/19/2015 Liberator Medical Holdings, Inc. Millennium Management & Kinderhook Partners CR Bard Inc. P

11/18/2015 Soft & Dri, Pure & Natural, and other brands High Ridge Brands Co. The Village Company, LLC

11/18/2015 Charles Sadek Import Co., Inc. - Fitz and Floyd Enterprises, LLC

11/18/2015 Lou-Verne, LLC - Studio 11 Design, LLC

11/16/2015 Manicube Inc Bain, Westwood, & Female Founders Fund Elizabeth Arden Spas, INC. P

11/16/2015 Atlas Paper Mills, LLC Peak Rock Capital Resolute Forest Products Inc. P

11/15/2015 Starwood Hotels & Resorts Worldwide Inc. Paulson & Co., T. Rowe Price, & others Marriott International, Inc.

11/12/2015 Dallas Manufacturing Company, Inc. Malibu Lighting Corporation Central Garden & Pet Company

11/12/2015 AquaBlue International, LLC - Vortex Aquatic Structures International Inc.

11/12/2015 Richer Poorer Inc. - Shoes.com, Inc.

11/11/2015 Misfit, Inc. Norwest Venture Partners and others Fossil Group, Inc. P

11/10/2015 Pairpoint Crystal Company, Inc. - -

11/10/2015 ONA Designs International, LLC - Kuzari Group, LLC P

11/6/2015 Diamonds Direct Inc. - The Blackstone Group, Private Equity Group P

11/5/2015 Pure Ocean Botanicals, LLC - W.F. Young, Inc.

11/4/2015 White House Design Company, Inc. - CAI P

11/4/2015 City Sports, Inc. - Gordon Brothers Group & Hilco Merchant Resources

11/4/2015 J. Mclaughlin, Inc. Highland Capital, JH, Palladin, and others Brentwood Associates, Inc. P

11/3/2015 Pristine Capital Holdings, Inc. - T3 Live, LLC

11/2/2015 National Balloon and Banner, Inc. - nexAir LLC

11/2/2015 Rhoades, LLC - Mobile Specialty Group, Inc.

11/2/2015 Belson Outdoors, LLC - PlayCore Holdings, Inc.

11/10/2015 Home Franchise Concepts, Inc. - Trilantic Capital Management LLC P

11/9/2015 2nd Wind Exercise Equipment, Inc. - Johnson Health Tech Co., Ltd.

11/5/2015 PS Brands, LLC - GBG USA, Inc.

11/4/2015 Creative Co-Op, Inc. Eureka Growth Capital Management, L.P. Freeman Spogli & Co. Incorporated P

11/3/2015 Little Burgundy The ALDO Group Inc. Journeys

11/3/2015 Tailgate Clothing Co. - American Eagle Outfitters, Inc.

11/3/2015 FuelBelt, Inc. - Implus Corporation

11/3/2015 Coast to Coast Entertainment LLC - Elaut USA, Inc.

11/2/2015 Advanced Graphic Products Inc. - Follett Corporation

11/2/2015 Funko, LLC Fundamental Capital, LLC Acon Investments, L.L.C. P

10/30/2015 Stark Exterminators - Arrow Exterminators, Inc.

10/30/2015 Madison All 4 You LLC - Riddell Sports Group, Inc.

10/28/2015 Custom Brand Footwear, LLC - Bates Accessories, Inc.

10/27/2015 Rite Aid Corporation American Century & T. Rowe Price Walgreens Boots Alliance, Inc.

10/26/2015 Nathan Sports, Inc. - EZ GARD Industries, Inc.

10/26/2015 J&D Brush Company Inc. - Topspin Partners LBO, LP P

10/26/2015 Roots Canada Ltd. - Searchlight Capital Partners P

10/26/2015 Catch Motion Inc. - iON America LLC

10/26/2015 Coyne's & Company, Inc. - Foreside LLC

10/21/2015 Cosmetic Technologies, LLC Ascendiant Capital Markets LLC Knowlton Development Corporation P

10/20/2015 Poulin Lumber, Inc. - Wallboard Supply Company, Inc.

10/20/2015 Ultra Green Packaging Consumer Goods Line Ultra Green Packaging, Inc. Ecosentials LLC

10/19/2015 Combo Hitter - Golden Global Corp.

10/19/2015 SunBriteTV LLC Bunker Hill Capital & Avante Mezzanine, Inc. SnapAV, LLC P

10/19/2015 Paramount Fitness Corp. - TRUE Fitness Technology, Inc.

10/19/2015 Intova LLC - Industrial Revolution, Inc.

10/16/2015 Harrington Fire Alarm & CPG Signals Harrington Signal, Inc. Potter Electric Signal Company, LLC

10/16/2015 Evax Systems, Inc. - Potter Electric Signal Company, LLC

10/15/2015 Petstages, Inc - Outward Hound

10/14/2015 Kolmar Labs Group Inc. - Knowlton Development Corporation

10/13/2015 Flip Flop Shops Inc. - Cherokee Inc.

10/13/2015 Visant Holding Corp. Credit Suisse PE, KKR, Offshore Partners, others Jarden Corp. P

10/13/2015 Maine Coast Book Shop Inc. - Sherman's Books & Stationery, Inc.

10/13/2015 Master Archery Targets - BIGshot Archery LLC

10/9/2015 Spinrite LP - TorQuest Partners, Inc. P

15

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HW&CO. CONSUMER TEAM

M&A TRANSACTIONS

CONSUMER AND RETAIL


RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED)

Andy WarczakVice [email protected]+1 (612) 359-2714

Tim AlexanderManaging [email protected]+1 (612) 359-2716

Brant [email protected]+1 (612) 359-2709

Ed ArkusManaging [email protected]+44 20 7518 8905

Private Equity


10/9/2015 McNett Corporation - Coghlan's Ltd.

10/9/2015 Pickleball Paddles Plus - Olla LLC

10/8/2015 SNUPI Technologies, Inc. Madrona Venture, WRF Capital, and others Sears Holdings Corporation P

10/6/2015 Pay Your Family First, LLC - Empowering a Billion Women by 2020 LLC

10/6/2015 Sundance Cinemas LLC - Carmike Cinemas Inc.

10/5/2015 American Furniture Manufacturing, Inc. Compass Diversified Holdings Bank of America and Spring Creek LLC P

10/5/2015 Culturata Ltd - Luxury Men's Apparel Group

10/2/2015 SportsGiant, LLC - Pure Hockey, LLC

10/1/2015 Northern Safety & Security, LLC - Per Mar Security and Research Corporation

10/1/2015 Continental Fragrances, Ltd. Beringea LLC; CID Capital, Inc. High Ridge Brands Co. P

10/1/2015 Shoes For Crews, LLC AEA Investors LP CCMP Capital Advisors, LLC P

10/1/2015 Moots Cycles, Inc. - -

10/1/2015 Wise Chem Safe Pest Control Coleman Exterminating, LLC Arrow Exterminators, Inc.

9/30/2015 Goalsetter Systems, Inc. Co-Line Welding Inc. Escalade Sports, Inc.

9/30/2015 Master Z's Dart and Pool Supply - Legends of the Field LLC

9/29/2015 Hearing Aid Express, Inc. - Ear Level Communications, Inc.

9/28/2015 Sabi Inc., Sabi Space Sabi Inc. Urbio LLC

9/24/2015 Mikon International Inc - G.E.T. Enterprises, LLC

9/23/2015 Riopel Marine Inc. - Matica Enterprises Inc.

9/22/2015 Life Highlights Digital Media, LLC - Forever, Inc.

9/21/2015 Nautic Global Group, Inc., Brands Nautic Global Group, Inc. Bennington Marine, LLC

9/21/2015 J. Mendel Inc. The Gores Group LLC Stallion Inc. P

9/18/2015 Gilchrist & Soames, Inc. Swander Pace Capital Sysco Guest Supply, LLC P

9/16/2015 Incase Designs Corp. Swander Pace Capital Incipio Technologies, Inc. P

9/9/2015 Arthur Court, Inc. - Vagabond Group, Inc.

9/8/2015 Joe's Jeans Inc. Joe's Jeans Inc. Sequential Brands Group, Inc.

9/8/2015 Robert Graham Designs, LLC Tengram Capital Partners, LLC Joe's Jeans Inc. P

9/8/2015 CHART Metalworks, Inc. - Sea Bags, Inc.

9/7/2015 Sun & Skin Care Research, LLC CapitalSouth Growth Fund; Source Capital, LLC - P

9/2/2015 California Scents, Inc. - American Covers Inc.

9/1/2015 Industrial Blades Division Edgewell Personal Care Company AccuTec Blades, Inc.

9/1/2015 ACE Theatrical Group, LLC - The Ambassador Theatre Group Limited

8/31/2015 Backyard Leisure Holdings, LLC Baird Capital Partners - P

8/31/2015 Hollywood Fashion Tape, Inc. - American International Industries

8/30/2015 Blyth, Inc. Ropart Asset Management Funds and others The Carlyle Group LP P

8/27/2015 3rd Ave. Studio - Centennial Brands Inc.

8/26/2015 Vintage Blades LLC - The Grooming Network

8/25/2015 Glen Plaid LLC - Collegiate Originals Apparel, Inc.

8/25/2015 Hartcraft, Ltd. - Plano Synergy Holdings, Inc.

8/24/2015 Cyberswim, Inc. - Alphagility, LLC

8/23/2015 Belk Inc. John M. Belk Educational Endowment and others Sycamore Partners P

8/21/2015 Bob Mickler's, Inc. - - P

8/19/2015 The Beachcombers International Inc. - KB Howell Enterprises, LLC

8/18/2015 FULLBEAUTY Brands, Inc. Charlesbank Capital & Webster Capital Apax Partners LLP P

8/16/2015 zulily, Inc. MeriTech Capital Partners and others QVC, Inc. P

8/14/2015 Canwest Bedding Ltd. - SSH Bedding Canada Co.

8/11/2015 Zirtual Inc. Mayfield Fund, VegasTechFund, others Startups.co P

8/11/2015 The Paradies Shops, Inc. Freeman Spogli & Co. Incorporated Lagardère Travel Retail SAS P

8/10/2015 Of a Kind, Inc. Collaborative Fund Bed Bath & Beyond Inc. P

8/10/2015 Marvins Building Materials Inc. - Central Network Retail Group, LLC

8/6/2015 Lemon Tree, K.K. - Left Hand Studios LLC

8/5/2015 Avery Outdoors, Inc. - Banded Holdings Inc.

8/4/2015 Shoe Sensation, Inc. Consumer Growth and Palisade Capital J.W. Childs Associates, L.P. P

16

Ryan BudlongManaging [email protected]+1 (415) 217-3409

John Neuner IVManaging [email protected]+1 (804) 915-0125

Glenn GurtcheffManaging [email protected]+1 (612) 359-2702

Corey [email protected]+1 (804) 932-1342

Will [email protected]+44 20 7518 8906

Brent SpillerManaging [email protected]+1 (804) 915-0183

Ryan [email protected]+1 (612) 359-2703

Chip DugginsVice [email protected]+1 (804) 932-1340

Matt ConatyVice [email protected]+1 (415) 217-3423














Energy, Power & Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

PAGE |

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

BostonTwo International Place24th FloorBoston, Massachusetts 02110Phone: +1 (617) 482-7501

Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400

Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359-2700

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San Francisco575 Market Street31st FloorSan Francisco, California 94105 Phone: +1 (415) 288-4260

FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00

London63 Brook StreetLondon W1K 4HS, EnglandPhone: +44 (0) 20 7518 8900

NETWORK OFFICES

Beijing

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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 andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website.

Consumer

17

OUR FIRM

CONSUMER AND RETAIL


PAGE |

HARRIS WILLIAMS & CO.

18

SOURCES

S&P Capital IQ.

Thomson Financial.

Reuters.

S&P Capital IQ LCD.

Harris Williams & Co. (www.harriswilliams.com and www.harriswilliams.de) 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.

Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan, authorised and regulated by the Financial Conduct Authority.

Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.

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, HarrisWilliams 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© 2016 Harris Williams & Co., all rights reserved.

CONSUMER AND RETAIL


DISCLOSURES

http://www.harriswilliams.com/

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CONSUMER AND RETAIL · and social media are having a profound impact on consumer purchase decisions both online and in stores. Social media provides a means for retailers and brands