INDUSTRY UPDATE │ MAY 2016 - harriswilliams.com Furnishings ... The proliferation of new product categories and product lines with more specific ... INDUSTRY UPDATE │ MAY 2016

www.harriswilliams.com

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulatedby the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

CONSUMER AND RETAIL

INDUSTRY UPDATE │ MAY 2016

PAGE |

www.harriswilliams.com

Key Observations

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, and Accessories

Franchise Platforms

Internet Retail

Home Furnishings

Household Goods

Infant and Juvenile Products

Jewelry, Gifts, and Collectibles

Lawn, Garden, and Pet Products and Services

Omni / Multi-Channel Brands

Outdoor and Lifestyle

Personal Care Products

Specialty and Mass Merchant Retailing

CONTACTS

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

CONSUMER AND RETAIL


HW&CO.’S RECENT INDUSTRY OBSERVATIONS

Continuing through 2016, the Harris Williams Consumer team remains very activeacross each of its key verticals. This activity continues to be fueled by strategic andfinancial buyers having ample capital that they are seeking to deploy viaacquisitions, underlying consumer spending remaining steady, and solid performanceof leading consumer brands.

a portfolio company of

has been acquired byhas been

recapitalized by

a portfolio company of

has been acquired byhas made a significant

investment in has been acquired by

REPRESENTATIVE EXPERIENCE IN INFANT AND JUVENILE

Increasing Globalization – the infant and juvenileindustry continues to experience a rising degree ofglobalization, as leading brands garner followingsacross multiple geographies. In particular, Asia hasbecome a significant source of growth as consumerbuying power in the region continues to increase andregulations such as the relaxation of the one childpolicy in China bolster demand. Importantly, Asianbuyers have played an outsized role in several recenttransactions as they see an opportunity to drivewestern brand penetration in Asia.

One sector that has seen a continued period of consolidationand M&A activity is the infant and juvenile industry, a key focusarea for the Harris Williams Consumer team. As detailed in the“M&A Round-up” on the following page, market activity in theinfant and juvenile sector has been strong, as both financialand strategic buyers vie for fast-growing, market-leadingbrands. From our ongoing dialogue with key industry players,we’ve observed that the following trends will continue topositively impact deal activity over the near-term.

Positive Industry Momentum – industry players remain optimistic about the space,citing (i) the sector’s attractive underlying demographics and evergreen demand, (ii)ability to support premium brands, and (iii) continued consumer spending growth.

“Must-Haves” for Parents – today’s market features scores of “must have” productsaimed at making parent’s lives easier, especially for families with on-the-go lifestyles.The proliferation of new product categories and product lines with more specificfunctionality have notably increased the overall market size.

Impact of Millennial Generation – the largest generation in the U.S. ever, millennials,are becoming parents and carrying over their consumer preferences into the infantand juvenile sector – seeking brands that are “authentic”, embody an activelifestyle, or engage directly via social media.

http://www.harriswilliams.com/

http://www.harriswilliams.com/industries/consumer

mailto:[email protected]





PAGE |

HARRIS WILLIAMS & CO. CONSUMER UPDATE

CONSUMER AND RETAIL


2

INFANT AND JUVENILE M&A ROUND-UP

Sergent Major acquired a controlling interest in Du Pareil au Meme, a leading premium retailer

based in Paris. The combination represents a meaningful consolidation of the premium infant and

juvenile retail landscape in Europe.

Shanghai-based Fosun acquired a controlling stake in the iconic British stroller brand Silver Cross.

The acquisition demonstrates a growing trend of Asian investors with clear ambitions to own

premium western brands in the infant and juvenile sector.

Premium infant and juvenile retailer Giggle acquired competitor LMC Right Start, creating a one of

the largest premium retail platforms in a relatively fragmented industry.

Beco Baby Carrier was acquired by competitor Boba, further consolidating the baby carrier

landscape. The combination brings together two authentic, outdoor lifestyle branded providers of

wraps and carriers in the premium mobility category.

European fund Gimv recently announced a minority investment in baby gear brand Joolz. Joolz is

a leading premium lifestyle infant and juvenile brand based in Europe that offers strollers, car seats

and other home gear categories.

InvestIndustrial acquired Chicco from the Italian infant and juvenile platform Artsana that was

looking to divest the brand. Chicco focuses on the mobility category and is one of the largest and

most well-regarded infant and juvenile brands.

The Shanghai-based, personal care provider Jawha is in final talks to acquire a controlling interest

in Mayborn Group from 3i Capital. Mayborn operates under its leading brand of feeding products,

Tommy Tippie. For Jawha, the acquisition represents an important foothold in the European and

North American infant and juvenile markets.

Ergobaby is in the process of acquiring a majority stake in the carrier line Tula Baby. The investment

complements Ergobaby’s existing carrier offering and builds on the company’s portfolio of brands,

which also includes Orbitbaby, a premium line of strollers and car seats.

The Chinese based Alpha Group announced its acquisition of juvenile products manufacturer

Baby Trend Inc. The acquisition marks Alpha’s entry into North America and jumpstarts the global

development for Alpha’s juvenile business.

Toy Giant Mattel acquired Sproutling, a producer of smart monitors for infants. Sproutling’s

hardware works in conjunction with a camera and mobile app that attaches to a baby’s ankle to

measure heart rake and motion. The acquisition marks Mattel’s continued efforts to expand its

portfolio of children’s technology lines.

PAGE |

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

Department Chains

Furniture & Furnishings Retailers

Specialty & Other Retail

Consumer Services and Retail

Franchisors

Apparel & Footwear Retail

Apparel & Footwear

Pet Care

Housewares

Consumer & Retail Index

S&P 500

Consumer Durables

Discount Stores & Mass Merchants

Home & Office Furniture & Furnishings

Internet Retail


Outdoor & Lifestyle

Infant & Juvenile

Household Products

(60.0%) (50.0%) (40.0%) (30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0%

Change in Stock Price

3 mos. 12 mos. Revenue EBITDA Revenue EBITDA

Consumer Products & Services

Apparel & Footwear 24 $2,690 (0.7%) (10.6%) 1.4x 9.9x 1.3x 9.1x

Consumer Durables 6 16,537 20.5% (2.9%) 1.0x 9.4x 0.9x 7.8x

Consumer Services and Retail Franchisors 7 3,194 (5.4%) (25.7%) 2.3x 9.3x 1.8x 7.7x

Home & Office Furniture & Furnishings 10 1,601 16.9% (1.2%) 0.9x 9.5x 0.8x 7.9x

Household Products 5 18,887 7.6% 14.4% 3.9x 15.8x 3.8x 14.6x

Housewares 10 3,287 12.3% (8.3%) 1.0x 11.1x 1.0x 8.7x

Infant & Juvenile 12 3,438 9.2% 13.3% 0.7x 10.7x 0.7x 7.9x

Outdoor & Lifestyle 20 882 1.2% (8.9%) 1.3x 10.5x 1.3x 8.7x

Personal Care Products 13 3,324 16.2% 10.8% 1.5x 10.1x 1.3x 9.7x

Pet Care 8 3,013 20.4% 3.4% 1.4x 13.3x 2.1x 11.3x

Retail

Apparel & Footwear Retail 31 1,152 (3.5%) (20.3%) 0.5x 5.7x 0.5x 5.2x

Department Chains 8 6,223 (16.6%) (51.4%) 0.5x 5.3x 0.5x 5.6x

Discount Stores & Mass Merchants 14 26,015 2.8% (1.9%) 0.7x 11.3x 0.7x 10.4x

Furniture & Furnishings Retailers 14 1,257 4.1% (41.1%) 0.7x 6.2x 0.7x 6.1x

Internet Retail 12 4,703 13.7% 0.8% 2.3x 16.3x 2.3x 12.1x

Specialty & Other Retail 15 2,515 2.2% (32.2%) 0.6x 6.0x 0.6x 5.5x

Consumer Products & Services 115 $3,240 10.8% (2.1%) 1.3x 10.3x 1.3x 8.7x

Retail 94 $3,609 2.5% (26.3%) 0.6x 6.1x 0.6x 5.9x

Consumer & Retail Index 209 $3,240 5.9% (5.6%) 1.0x 10.0x 0.9x 8.3x

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

05/12/16 05/12/16 Bright Horizons Family Solutions BFAM Follow-on $138.7 Education Services

05/05/16 02/17/16 Walgreens Boots Alliance WBA Follow-on 1,200.0 Drug Retail

04/22/16 02/12/16 V ince Holding Corp VNCE Follow-on 63.8 Apparel, Accessories and Luxury Goods

04/12/16 04/12/16 Sportsman's Warehouse SPWH Follow-on 67.5 Specialty Stores

03/22/16 03/22/16 The Michaels Companies, Inc. MIK Follow-on 443.4 Specialty Stores

02/18/16 02/05/16 Ollie's Bargain Outlet Holdings OLLI Follow-on 155.5 Retail

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

50

75

100

125

150

175

200

225

250

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 May-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

11.7x 11.7x 12.2x 12.3x11.9x 11.6x

12.4x

11.7x11.4x 11.3x 11.4x 11.5x

11.8x

10.0x 10.2x 10.4x 10.0x

9.5x10.0x

10.0x 10.2x

9.1x

8.2x7.9x

8.5x 8.5x

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

77

57

77

43

66

35 39

68 7183

66

95

64

13

14

25

34

21

18 13

512

26

12

16

14

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

$30

$40 $38

$27 $28

$92

$13.5

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

8.4x

10.7x 10.0x 9.8x

10.8x

12.4x

8.6x

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

Announced Target Buyer

5/16/2016 High Ridge Brands Co. Clayton, Dubilier & Rice, Ltd.

5/12/2016 P& Christ ina Aguilera Line Elizabeth Arden, Inc..

5/10/2016 Gaiam Inc. Sequential Brands Group (NasdaqCM:SQBG)

5/9/2016 Baby Tula LLC The ERGO Baby Carrier, Inc.

5/9/2016 Jade Swimwear L.P The Riverside Company

5/9/2016 The Mountain Corporation Gladstone Investment Corporation

5/5/2016 Go Green Hydroponics Inc. Growlife, Inc. (OTCPK:PHOT)

5/4/2016 A and G, Inc. Gildan Activewear Inc. (TSX:GIL)

5/2/2016 ReNew Life Formulas, Inc. The Clorox Company (NYSE:CLX)

4/29/2016 Norvell Skin Solut ions, LLC MT Industries, Inc.

Last 10 Deals Announced

Aggregate Number Transaction Multiples

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

$93.8 346 0.94x 10.7x

LTM Deal Statistics

72

31

37

53

73

86

57

66

21

48

28

59

53

76

57

68

84

20

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

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

• World Kitchen, as part of its recent acquisition by GP Investments Acquisition Corp., raised a first-lien term loan of$250 million and a $100 million asset based revolver, with $25 million drawn at closing. Citigroup and BMO CapitalMarkets committed in tandem to provide the financing for the $566 acquisition. The pro forma leverage at closing isexpected to be ~3.5x on expected 2016 adjusted EBTIDA of $78 million.

• Elite Sportswear, a Reading, PA based supplier of gymnastics and cheerleading apparel and portfolio company ofThe Riverside Company, completed its first add-on acquisition, adding swimwear provider Dolfin to the fold. Thetransaction was back by debt financing provided by Golub Capital, the existing lender from Riverside’s acquisition.The debt facility in place contains a first-lien loan due March 2022 priced at L+500 with a 1% floor.

• On the mezzanine front, HALO Branded Solutions secured junior capital financing to facilitate its recent acquisitionby Audax Private Equity. Maranon Capital is the agent on the debt, and Triangle Capital is also a lender on themezz debt side. The BDC previously disclosed that it provided $12.9 million of second-lien debt and equity as part ofthe financing, with a price of 12%.

• Controlled Products, a manufacturer and distributor of synthetic sports turf and accessories, received asubordinated debt facility to go alongside an equity co-investment supporting the acquisition of the business byClearview Capital. Brookside Mezzanine Partners provided the debt piece, and general pricing terms were notdisclosed.

KEY RETAIL CREDIT STATISTICS

1) Source: S&P Capital IQ LCD

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 5/17/16 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 37.65 89.4% 10,468 884 1,282 10,069 4,341 945 0.4% (4.6%) 68.1% 21.8% 26.9x 2.32x 10.7x 2.15x 9.1x

Columbia Sportswear Company COLM 53.23 71.2% 3,709 15 451 3,272 2,372 311 10.1% 12.1% 46.0% 13.1% 21.0x 1.38x 10.5x 1.31x 9.9x

Carter's, Inc. CRI 99.72 91.0% $5,063 $580 $395 $5,248 $3,053 $473 4.3% 8.0% 42.1% 15.5% 21.6x 1.72x 11.1x 1.61x 10.1x

Crocs, Inc. CROX 9.31 58.1% 683 14 89 607 1,108 15 (3.5%) (1.6%) 46.3% 1.3% NM 0.55x 41.1x 0.52x 7.7x

Deckers Outdoor Corp. DECK 50.14 65.6% 1,626 56 263 1,419 1,837 241 3.7% 9.1% 45.9% 13.1% 11.4x 0.77x 5.9x 0.75x 5.5x

Fossil Group, Inc. FOSL 26.92 34.0% 1,295 826 307 1,814 3,164 372 (8.5%) 2.4% 53.8% 11.7% 6.9x 0.57x 4.9x 0.58x 6.8x

G-III Apparel Group, Ltd. GIII 37.79 51.1% 1,722 0 133 1,589 2,344 210 10.7% 18.8% 35.8% 9.0% 15.4x 0.68x 7.6x 0.62x 6.9x

Hanesbrands Inc. HBI 27.09 77.9% 10,227 3,341 332 13,236 5,742 992 4.9% 8.5% 38.1% 17.3% 23.7x 2.31x 13.3x 2.25x 12.4x

Iconix Brand Group, Inc. ICON 7.72 28.1% 375 1,443 207 1,611 378 168 0.6% 0.7% 100.0% 44.5% NM 4.26x 9.6x 4.31x 8.9x

Kate Spade & Company KATE 22.04 78.6% 2,821 395 261 2,955 1,262 228 7.8% 12.6% 60.9% 18.1% 33.1x 2.34x NM 2.04x 10.8x

NIKE, Inc. NKE 57.14 83.8% 96,265 2,109 5,106 93,268 31,911 5,147 5.5% 8.7% 46.3% 16.1% 26.5x 2.92x 18.1x 2.69x 16.1x

Oxford Industries Inc. OXM 59.84 65.6% 1,003 44 6 1,040 969 133 5.3% 4.2% 57.1% 13.7% 16.9x 1.07x 7.8x 0.98x 7.1x

Perry Ellis International Inc. PERY 16.39 58.3% 255 134 42 348 900 44 1.1% (2.5%) 35.5% 4.9% NM 0.39x 7.9x 0.38x 5.8x

PVH Corp. PVH 85.75 71.1% 6,949 3,217 556 9,610 8,020 1,054 (2.7%) 9.9% 51.9% 13.1% 12.4x 1.20x 9.1x 1.18x 9.3x

Ralph Lauren Corporation RL 86.50 61.3% 7,267 713 1,085 6,895 7,405 1,096 (2.8%) 2.2% 56.8% 14.8% 18.7x 0.93x 6.3x 0.97x 6.4x

Steven Madden, Ltd. SHOO 32.69 73.1% 2,021 0 105 1,916 1,411 193 4.2% 4.4% 35.8% 13.7% 17.5x 1.36x 9.9x 1.31x 9.5x

Skechers U.S.A., Inc. SKX 31.04 56.9% 4,897 83 444 4,536 3,371 458 29.3% 26.4% 45.6% 13.6% 17.6x 1.35x 9.9x 1.16x 7.9x

Gildan Activewear Inc. TSX: GIL 37.66 82.4% 8,879 584 53 9,409 2,526 513 5.8% 6.3% 27.9% 20.3% 19.9x 3.73x 18.4x 3.48x 16.3x

Tumi Holdings, Inc. TUMI 26.68 95.8% 1,805 10 102 1,713 556 120 5.0% 9.6% 59.6% 21.7% 28.0x 3.08x 14.2x 2.90x 14.1x

Under Armour, Inc. UA 37.12 70.1% 16,144 939 157 16,925 4,206 534 29.5% 29.8% 47.8% 12.7% NM 4.02x 31.7x 3.19x 24.9x

V.F. Corporation VFC 60.71 78.4% 25,317 2,542 586 27,273 12,379 2,017 0.3% 4.2% 48.1% 16.3% 21.8x 2.20x 13.5x 2.08x 12.4x

Vera Bradley, Inc. VRA 15.98 77.2% 601 0 98 503 503 78 (1.3%) (2.1%) 56.6% 15.4% 22.5x 1.00x 6.5x 0.97x 6.4x

Weyco Group Inc. WEYS 27.01 87.1% 287 25 20 292 321 32 (0.7%) 3.3% 37.3% 9.8% 16.9x 0.91x 9.2x NA NA

Wolverine World Wide Inc. WWW 17.21 55.9% 1,713 870 158 2,425 2,638 272 (4.6%) 10.3% 38.9% 10.3% 17.4x 0.92x 8.9x 0.95x 8.8x

Mean 69.2% $8,808 $784 $510 $9,082 $4,280 $652 4.4% 7.5% 49.3% 15.1% 19.8x 1.75x 12.4x 1.67x 10.1x

Median 71.2% $2,421 $488 $234 $2,690 $2,449 $292 3.9% 7.1% 46.3% 13.7% 19.3x 1.35x 9.9x 1.31x 9.1x

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

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


8



Consumer Services and Retail Franchisors

GNC Holdings Inc. GNC 25.07 48.5% 1,714 1,541 61 3,194 2,627 467 0.3% 2.1% 37.0% 17.8% 9.8x 1.22x 6.8x 1.21x 7.2x

H&R Block, Inc. HRB 19.98 53.2% 4,484 2,628 191 6,921 3,042 860 (8.9%) 4.0% 49.5% 28.3% 12.4x 2.28x 8.1x 2.29x 8.1x

Planet Fitness, Inc. PLNT 17.08 82.6% 625 484 38 1,071 337 116 12.7% NA 49.8% 34.3% NM 3.18x 9.3x 2.86x 7.3x

Regis Corp. RGS 13.41 74.0% 621 120 141 600 1,806 80 (2.8%) (4.1%) 33.5% 4.5% NM 0.33x 7.5x 0.33x 6.7x

Realogy Holdings Corp. RLGY 31.49 63.3% 4,629 4,037 283 8,383 5,778 763 7.3% 6.7% 48.8% 13.2% 26.9x 1.45x 11.0x 1.38x 9.5x

ServiceMaster Global Holdings, Inc. SERV 35.64 84.4% 4,838 2,759 396 7,201 2,631 573 5.5% NA 46.9% 21.8% 28.3x 2.74x 12.6x 2.57x 10.4x

Winmark Corp. WINA 92.25 85.2% 379 57 1 435 65 36 (4.5%) 6.6% 92.3% 55.1% 20.1x 6.73x 12.2x NA NA

Mean 70.2% $2,470 $1,661 $159 $3,972 $2,327 $413 1.4% 3.1% 51.1% 25.0% 19.5x 2.56x 9.6x 1.77x 8.2x

Median 74.0% $1,714 $1,541 $141 $3,194 $2,627 $467 0.3% 4.0% 48.8% 21.8% 20.1x 2.28x 9.3x 1.84x 7.7x

Home & Office Furniture & Furnishings

The Dixie Group, Inc. DXYN 3.19 27.7% 50 130 0 180 416 17 (0.4%) 14.2% 24.6% 4.0% NM 0.43x 10.7x 0.43x NA

HNI Corp. HNI 44.02 81.9% 1,997 300 44 2,254 2,282 238 (0.5%) 4.5% 37.3% 10.4% 18.4x 0.99x 9.5x 1.00x 8.8x

Hooker Furniture Corp. HOFT 24.15 67.2% 278 0 54 224 247 28 1.1% 4.2% 27.8% 11.2% 16.2x 0.91x 8.1x 0.40x 5.0x

Kimball International, Inc. KBAL 11.42 87.9% 428 0 44 384 629 52 8.6% (18.8%) 32.0% 8.2% 22.3x 0.61x 7.4x 0.59x NA

Knoll, Inc. KNL 23.39 89.8% 1,148 220 5 1,362 1,123 143 3.3% 8.0% 37.8% 12.7% 17.2x 1.21x 9.5x 1.15x 8.3x

Leggett & Platt, Incorporated LEG 49.09 95.7% 6,594 1,036 250 7,379 3,889 597 0.4% 1.7% 24.1% 15.3% 20.5x 1.90x 12.4x 1.83x 11.3x

La-Z-Boy Incorporated LZB 25.13 85.7% 1,254 1 110 1,145 1,483 143 5.7% 5.2% 37.2% 9.6% 16.9x 0.77x 8.0x 0.72x 7.0x

Herman Miller Inc. MLHR $30.71 93.9% $1,838 $240 $63 $2,016 $2,233 $254 7.4% 8.8% 38.5% 11.4% 15.5x 0.90x NM 0.87x 7.4x

Steelcase Inc. SCS 15.07 74.0% 1,806 299 266 1,839 3,060 264 0.0% 2.2% 32.2% 8.6% 11.1x 0.60x 7.0x 0.59x 6.1x

Tempur Sealy International Inc. TPX 56.84 68.8% 3,463 1,473 37 4,898 3,133 413 3.5% 30.5% 40.1% 13.2% 40.0x 1.56x 11.9x 1.50x 9.0x

Mean 77.3% $1,886 $370 $87 $2,168 $1,850 $215 2.9% 6.1% 33.2% 10.5% 19.8x 0.99x 9.4x 0.91x 7.9x

Median 83.8% $1,530 $230 $49 $1,601 $1,858 $191 2.2% 4.8% 34.7% 10.8% 17.2x 0.90x 9.5x 0.79x 7.9x

Household Products

Church & Dwight Co. Inc. CHD 96.46 98.4% 12,379 1,151 194 13,336 3,432 793 3.1% 4.5% 44.7% 23.1% 30.8x 3.89x 16.8x 3.76x 15.8x

Colgate-Palmolive Co. CL $72.02 99.0% $64,315 $6,580 $1,101 $69,794 $15,726 $4,337 (7.6%) (2.9%) 59.0% 27.6% 26.5x 4.44x 16.1x 4.45x 15.3x

The Clorox Company CLX 132.00 99.1% 17,073 2,228 414 18,887 5,718 1,241 2.2% 0.6% 45.1% 21.7% 25.9x 3.30x 15.2x 3.19x 14.6x

Prestige Brands Holdings, Inc. PBH 56.52 97.3% 2,982 1,625 27 4,580 806 289 12.8% 9.1% 58.1% 35.9% 30.1x 5.68x 15.8x 5.29x 14.6x

The Procter & Gamble Company PG 81.63 97.3% 217,287 32,815 13,819 236,283 71,280 19,188 (3.4%) (5.2%) 52.1% 26.9% 25.8x 3.31x 12.3x 3.59x 13.8x

Mean 98.2% $62,807 $8,880 $3,111 $68,576 $19,392 $5,170 1.4% 1.2% 51.8% 27.0% 27.8x 4.12x 15.3x 4.06x 14.8x

Median 98.4% $17,073 $2,228 $414 $18,887 $5,718 $1,241 2.2% 0.6% 52.1% 26.9% 26.5x 3.89x 15.8x 3.76x 14.6x

Housewares

Fiskars Oyj Abp FIS1V 16.75 79.5% 1,372 333 519 1,186 1,171 97 44.0% 16.0% 38.6% 8.3% NM 1.01x 12.2x 0.93x 9.0x

Helen of Troy Limited HELE 96.50 90.6% 2,678 624 226 3,076 1,546 205 7.0% 6.3% 41.1% 13.2% 27.4x 1.99x 15.0x 1.92x 13.3x

Jarden Corp. JAH 0.00 #DIV/0! 0 6,381 1,298 5,083 8,604 966 3.8% 8.7% 31.7% 11.2% NA 0.59x 5.3x 0.52x 3.4x

Libbey Inc. LBY 17.17 40.8% 374 430 26 778 821 118 (4.7%) (0.1%) 23.3% 14.4% 5.9x 0.95x 6.6x 0.94x 6.7x

Lifetime Brands, Inc. LCUT 13.32 74.8% 189 109 6 293 581 37 (0.7%) 6.8% 36.2% 6.4% 19.1x 0.50x 7.9x 0.49x NA

Nacco Industries Inc. NC 52.24 83.0% 359 163 36 487 896 6 (1.9%) (0.0%) 20.3% 0.6% 15.2x 0.54x 85.7x NA NA

Newell Brands Inc. NWL 47.94 94.2% 21,893 11,388 8,181 25,100 5,967 1,022 3.3% 2.3% 38.9% 17.1% NM 4.21x 24.6x 1.60x 9.2x

SEB SA SK 98.15 96.1% 4,747 1,331 1,015 5,062 4,770 506 12.1% 5.5% 11.5% 10.6% 23.7x 1.06x 10.0x 1.01x 8.4x

Spectrum Brands Holdings, Inc. SPB 117.83 99.1% 6,999 4,105 133 10,971 4,984 822 12.2% 12.3% 36.7% 16.5% 31.7x 2.20x 13.3x 2.11x 11.3x

Tupperware Brands Corporation TUP 54.51 80.5% 2,753 843 99 3,497 2,228 372 (11.8%) (5.1%) 67.7% 16.7% 13.8x 1.57x 9.4x 1.54x 8.5x

Mean #DIV/0! $4,136 $2,571 $1,154 $5,553 $3,157 $415 6.3% 5.3% 34.6% 11.5% 19.5x 1.46x 19.0x 1.23x 8.7x

Median #DIV/0! $2,025 $733 $180 $3,287 $1,887 $288 3.6% 5.9% 36.4% 12.2% 19.1x 1.04x 11.1x 1.01x 8.7x

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

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


9



Infant & Juvenile

Carter's, Inc. CRI 99.72 91.0% 5,063 580 395 5,248 3,053 473 4.3% 8.0% 42.1% 15.5% 21.6x 1.72x 11.1x 1.61x 10.1x

Crown Crafts, Inc. CRWS 9.28 92.8% 93 0 8 85 85 11 1.7% 2.3% 27.6% 13.3% 13.9x 1.00x 7.5x 1.03x 7.1x

Dorel Industries Inc. DII.B 33.32 92.8% 1,076 590 39 1,628 2,664 158 (1.2%) 2.6% 22.1% 5.9% 27.3x 0.61x 10.3x 0.59x 8.5x

Hasbro Inc. HAS 85.46 96.5% 10,657 1,636 1,119 11,175 4,565 878 5.9% 3.6% 53.0% 19.2% 22.9x 2.45x 12.7x 2.34x 11.4x

JAKKS Pacific, Inc. JAKK 7.26 70.6% 128 208 119 217 727 43 (13.6%) 2.7% 30.8% 6.0% 15.0x 0.30x 5.0x 0.27x 3.4x

Mattel, Inc. MAT 30.94 89.0% 10,533 2,085 600 12,019 5,649 871 (5.9%) (4.5%) 48.6% 15.4% 29.9x 2.13x 13.8x 2.14x 13.1x

Mothercare plc MTC 1.19 39.8% 203 0 27 176 691 31 (4.2%) (4.3%) 15.8% 4.5% NM 0.25x 5.7x 0.25x 3.6x

Newell Brands Inc. NWL 47.94 94.2% 21,893 11,388 8,181 25,100 5,967 1,022 3.3% 2.3% 38.9% 17.1% NM 4.21x 24.6x 1.60x 9.2x

The Children's Place, Inc. PLCE 68.23 80.4% 1,300 25 234 1,092 1,740 154 (0.9%) (1.0%) 36.7% 8.8% 20.2x 0.63x 7.1x 0.62x 5.7x

Goodbaby International Holdings Limited SEHK: 1086 4.59 97.0% 5,104 1,698 1,018 5,783 6,951 414 13.7% 15.1% 29.5% 5.9% 25.7x 0.83x 14.0x 0.77x 9.0x

Summer Infant, Inc. SUMR 1.47 52.7% 27 46 0 73 202 5 (2.5%) (5.9%) 30.0% 2.6% NM 0.36x 13.7x 0.36x 5.7x

TOMY Company, Ltd. TSE: 7867 705.00 80.3% 60,009 75,103 40,046 95,066 163,067 11,785 8.8% (3.0%) 35.2% 7.2% NM 0.58x 8.1x 0.55x 7.2x

Mean 81.4% $9,674 $7,780 $4,315 $13,138 $16,280 $1,320 0.8% 1.5% 34.2% 10.1% 22.1x 1.26x 11.1x 1.01x 7.8x

Median 90.0% $3,182 $585 $314 $3,438 $2,858 $286 0.4% 2.3% 33.0% 8.0% 22.3x 0.73x 10.7x 0.69x 7.9x

Outdoor & Lifestyle

Arctic Cat Inc. ACAT $14.28 39.9% $186 $0 $11 $175 $633 $3 (9.4%) (2.0%) 14.3% 0.5% NM 0.28x 60.6x 0.28x 9.2x

Brunswick Corporation BC 48.02 86.1% 4,352 453 286 4,519 4,190 530 6.6% 3.7% 27.2% 12.6% 19.2x 1.08x 8.5x 0.98x 7.4x

Black Diamond, Inc. BDE 4.34 42.5% 134 21 96 58 152 (3) (2.7%) (3.8%) 33.2% NM NM 0.38x NM 0.39x 11.4x

Columbia Sportswear Company COLM 53.23 71.2% 3,709 15 451 3,272 2,372 311 10.1% 12.1% 46.0% 13.1% 21.0x 1.38x 10.5x 1.31x 9.9x

Callaway Golf Co. ELY 9.31 90.4% 875 79 35 919 834 52 1.8% (0.1%) 43.5% 6.3% NM 1.10x NM 1.04x 15.5x

Escalade Inc. ESCA 10.62 53.1% 151 34 3 182 157 17 9.1% 3.3% 27.9% 10.7% 15.4x 1.16x 10.9x 1.08x 7.9x

Fox Factory Holding Corp FOXF 16.07 81.9% 587 57 9 635 379 58 19.1% 15.7% 31.2% 15.3% 22.0x 1.68x 10.9x 1.59x 8.7x

GoPro, Inc. GPRO 8.93 13.6% 1,235 0 389 846 1,440 (48) (5.3%) 83.2% 39.5% NM NM 0.59x NM 0.57x NM

Amer Sports Corp. HLSE: AMEAS 25.53 91.0% 3,002 831 293 3,540 2,594 279 12.6% 7.9% 45.6% 10.8% 23.6x 1.36x 12.7x 1.28x 11.6x

Rapala VMC Corp. HLSE: RAP1V 4.15 70.9% 159 123 13 269 279 26 1.9% (1.5%) 50.8% 9.3% 24.4x 0.97x 10.4x 0.98x 8.3x

Harley-Davidson, Inc. HOG 45.01 74.2% 8,151 7,113 394 14,869 6,072 1,345 (1.7%) 2.0% 36.6% 22.1% 12.1x 2.45x 11.1x 2.75x 11.0x

Johnson Outdoors Inc. JOUT 24.89 90.7% 248 38 51 235 446 41 4.7% 1.8% 40.5% 9.2% 12.4x 0.53x 5.7x NA NA

Malibu Boats, Inc. MBUU 13.45 56.7% 241 74 19 296 247 46 11.6% 20.6% 26.8% 18.8% 11.8x 1.20x 6.4x 1.12x 5.8x

Marine Products Corp. MPX 8.47 93.6% 325 0 18 307 220 22 26.5% 12.3% 21.0% 10.0% 20.7x 1.39x NM 1.31x 11.1x

Nautilus Inc. NLS 19.81 86.3% 615 76 73 618 360 52 20.6% 21.3% 52.8% 14.4% 22.6x 1.71x 11.9x 1.38x 8.7x

Polaris Industries Inc. PII 84.38 54.0% 5,453 532 146 5,840 4,743 796 1.1% 12.6% 28.8% 16.8% 13.7x 1.23x 7.3x 1.20x 6.6x

Sturm, Ruger & Co. Inc. RGR 66.47 85.1% 1,260 0 80 1,180 587 139 14.8% 3.1% 32.3% 23.8% 18.4x 2.01x 8.5x 1.84x 7.6x

Smith & Wesson Holding Corporation SWHC 23.07 75.8% 1,271 174 105 1,340 683 179 26.1% 8.2% 39.7% 26.3% 15.9x 1.96x 7.5x 1.83x 6.8x

Shimano Inc. TSE: 7309 16,280.00 80.6% 1,509,213 10,484 179,039 1,340,658 362,792 94,017 2.1% 13.7% 40.5% 25.9% 24.3x 3.70x 14.3x 3.60x 12.9x

V ista Outdoor Inc. VSTO 48.54 90.0% 2,952 670 152 3,471 2,271 335 9.0% NA 27.3% 14.8% 20.7x 1.53x 10.3x 1.25x 8.5x

Mean 71.4% $77,206 $1,039 $9,083 $69,162 $19,573 $4,910 7.9% 11.3% 35.3% 14.5% 18.6x 1.38x 13.0x 1.36x 9.4x

Median 78.2% $1,055 $75 $88 $882 $658 $55 7.8% 7.9% 34.9% 13.7% 19.9x 1.30x 10.5x 1.25x 8.7x

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

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


10




Avon Products Inc. AVP 4.03 56.0% 1,758 2,214 755 3,216 5,915 422 (15.7%) (17.4%) 60.2% 7.1% NM 0.54x 7.6x 0.55x 6.7x

The Estée Lauder Companies Inc. EL 92.79 95.2% 34,262 1,925 1,087 35,100 11,140 2,109 1.4% 3.6% 80.6% 18.9% 29.9x 3.15x 16.6x 2.97x 14.9x

Herbalife Ltd. HLF 61.57 92.9% 5,706 1,403 774 6,335 4,483 715 (6.6%) 1.9% 53.3% 16.0% 14.8x 1.41x 8.9x 1.35x 8.7x

Kimberly-Clark Corporation KMB 129.58 93.4% 46,665 7,967 635 53,997 18,376 3,944 (5.9%) (4.6%) 36.1% 21.5% 43.3x 2.94x 13.7x 2.90x 12.8x

Medifast Inc. MED 34.95 99.0% 414 0 72 343 272 37 (2.7%) (9.3%) 73.9% 13.5% 21.6x 1.26x 9.3x 1.19x 8.4x

Nu Skin Enterprises Inc. NUS 38.39 71.3% 2,149 263 265 2,147 2,176 256 (10.9%) (0.5%) 76.0% 11.8% 22.3x 0.99x 8.4x 0.97x 6.6x

The Procter & Gamble Company PG 81.63 97.3% 217,287 32,815 13,819 236,283 71,280 19,188 (3.4%) (5.2%) 52.1% 26.9% 25.8x 3.31x 12.3x 3.59x 13.8x

Elizabeth Arden, Inc. RDEN 9.65 61.9% 289 422 41 670 950 (7) (3.8%) (10.9%) 43.8% NM NM 0.71x NM 0.67x 17.0x

Revlon, Inc. REV 32.82 86.4% 1,700 1,806 182 3,324 1,915 314 0.3% 11.2% 64.6% 16.4% 24.4x 1.74x 10.6x NA NA

Sally Beauty Holdings Inc. SBH 29.17 88.6% 4,359 1,783 89 6,054 3,910 614 3.0% 3.0% 49.6% 15.7% 20.2x 1.55x 9.9x 1.49x 9.5x

ULTA Salon, Cosmetics & Fragrance, Inc. ULTA 208.13 97.8% 13,036 0 476 12,560 3,924 671 21.1% 20.9% 35.3% 17.1% 41.8x 3.20x 18.7x 2.73x 15.8x

USANA Health Sciences Inc. USNA 122.09 69.0% 1,462 66 151 1,377 940 157 13.6% 12.3% 82.5% 16.7% 16.4x 1.47x 8.8x 1.32x 8.5x

All for One Steeb AG XTRA:A1OS $57.40 74.6% $286 $25 $31 $279 $258 $27 13.2% 14.6% 44.1% 10.4% 23.7x 1.08x 10.4x 1.08x 9.9x

Mean 83.3% $25,336 $3,899 $1,414 $27,822 $9,657 $2,188 0.3% 1.5% 57.9% 16.0% 25.8x 1.80x 11.3x 1.73x 11.1x

Median 88.6% $2,149 $1,403 $265 $3,324 $3,910 $422 (2.7%) 1.9% 53.3% 16.2% 23.7x 1.47x 10.1x 1.34x 9.7x

Pet Care

Blue Buffalo Pet Products, Inc. BUFF 25.90 89.9% 5,083 386 265 5,204 1,059 231 12.6% NA 41.8% 21.8% NM 4.92x 22.6x 4.45x 19.1x

Central Garden & Pet Company CENT $18.68 94.7% $928 $497 $10 $1,415 $1,747 $155 8.0% 0.5% 29.7% 8.9% 24.2x 0.81x 9.1x 0.78x 8.9x

Freshpet, Inc. FRPT $9.12 42.1% $306 $0 $0 $306 $121 $5 27.6% NA 46.7% 4.2% NM 2.53x 60.3x 2.13x 13.7x

Oil-Dri Corp. of America ODC 32.97 84.7% 239 15 29 225 264 33 (0.1%) 2.7% 26.9% 12.5% 15.1x 0.85x 6.8x NA NA

Spectrum Brands Holdings, Inc. SPB 117.83 99.1% 6,999 4,105 133 10,971 4,984 822 12.2% 12.3% 36.7% 16.5% 31.7x 2.20x 13.3x 2.11x 11.3x

Maabarot Products Ltd. TASE:MABR 50.90 87.8% 499 19 156 361 342 24 (5.3%) (1.2%) 42.1% 7.0% 31.5x 1.06x 15.0x NA NA

Echo Trading Co., Ltd. TSE:7427 571.00 82.2% 3,447 4,500 3,335 4,612 75,256 (181) 0.8% (0.3%) 12.1% NM NM 0.06x NM NA NA

Unicharm Corporation TSE:8113 2,234.00 71.0% 1,330,954 71,185 140,473 1,261,666 734,214 109,850 12.7% 17.9% 45.3% 15.0% 31.8x 1.72x 11.5x 1.60x 10.5x

Mean 81.4% $168,557 $10,088 $18,050 $160,595 $102,248 $13,867 8.6% 5.3% 35.2% 12.3% 26.9x 1.77x 19.8x 2.22x 12.7x

Median 86.2% $2,187 $442 $145 $3,013 $1,403 $94 10.1% 1.6% 39.2% 12.5% 31.5x 1.39x 13.3x 2.11x 11.3x

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

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


11



Retail

Apparel & Footwear Retail

American Eagle Outfitters, Inc. AEO 14.15 76.5% 2,558 0 260 2,298 3,522 469 7.3% 0.4% 37.0% 13.3% 13.0x 0.65x 4.9x 0.63x 4.5x

Abercrombie & Fitch Co. ANF $24.26 73.9% $1,640 $334 $589 $1,385 $3,519 $321 (6.0%) (7.9%) 61.3% 9.1% 47.6x 0.39x 4.3x 0.39x 4.0x

Arcandor AG ARO 0.02 37.7% 5 3,570 2,201 1,374 20,215 428 55.3% 5.0% 33.4% 2.1% NM 0.07x 3.2x NA NA

Ascena Retail Group Inc. ASNA 7.36 41.8% 1,410 1,659 295 2,774 5,834 511 21.3% 12.5% 56.5% 8.8% NM 0.48x 5.4x 0.38x 3.9x

The Buckle, Inc. BKE 24.00 50.7% 1,158 0 198 961 1,120 262 (2.9%) (0.1%) 49.4% 23.4% 7.8x 0.86x 3.7x 0.91x 4.1x

Cabela's Incorporated CAB 48.33 89.8% 3,299 4,454 70 7,684 4,035 471 7.6% 7.0% 42.8% 11.7% 18.3x 1.90x 16.3x 1.80x 14.7x

Caleres, Inc. CAL 22.99 68.0% 1,004 197 118 1,082 2,577 177 0.2% 1.3% 40.7% 6.9% 12.4x 0.42x 6.1x 0.41x 5.2x

The Cato Corporation CATO 36.00 88.3% 977 0 283 695 1,011 119 2.4% 2.3% 39.0% 11.8% 15.1x 0.69x 5.8x 0.68x NA

Chico's FAS Inc. CHS 11.20 64.8% 1,497 92 140 1,449 2,642 268 (1.2%) 0.8% 54.1% 10.2% NM 0.55x 5.4x 0.56x 5.0x

Citi Trends, Inc. CTRN 16.24 56.6% 242 0 72 170 684 43 1.9% 1.5% 39.0% 6.3% 15.8x 0.25x 4.0x 0.24x 3.8x

Destination Maternity Corporation DEST 6.28 46.9% 88 41 2 126 499 14 0.4% (2.6%) 49.0% 2.9% NM 0.25x 8.7x NA NA

DSW Inc. DSW 21.93 60.3% 1,792 0 259 1,533 2,620 288 5.0% 5.1% 37.0% 11.0% 14.2x 0.59x 5.3x 0.54x 5.3x

Destination XL Group, Inc. DXLG 4.71 70.3% 227 68 5 290 442 23 6.8% 3.6% 46.1% 5.3% NM 0.66x 12.5x 0.62x 8.7x

Express Inc. EXPR 16.47 76.4% 1,269 70 187 1,152 2,350 285 8.5% 2.9% 43.5% 12.1% 11.9x 0.49x 4.0x 0.47x 3.8x

Finish Line Inc. FINL 19.28 66.4% 814 0 79 735 1,889 127 3.8% 9.4% 38.3% 6.7% 40.2x 0.39x 5.8x 0.38x 4.9x

Foot Locker, Inc. FL 59.31 76.8% 8,072 130 1,021 7,181 7,412 1,090 3.6% 6.2% 44.3% 14.7% 15.4x 0.97x 6.6x 0.92x 6.1x

Genesco Inc. GCO 63.01 86.8% 1,343 112 133 1,322 3,022 238 5.7% 5.1% 47.8% 7.9% 15.2x 0.44x 5.5x 0.44x 5.3x

Guess? Inc. GES 16.10 68.7% 1,353 6 445 913 2,204 201 (8.8%) (6.1%) 35.7% 9.1% 16.8x 0.41x 4.5x 0.39x 5.0x

The Gap, Inc. GPS 17.55 44.3% 6,983 1,731 1,370 7,344 15,797 2,220 (3.9%) 0.3% 36.4% 14.1% 7.9x 0.46x 3.3x 0.48x 3.9x

L Brands, Inc. LB 66.37 65.6% 19,048 5,721 2,558 22,211 12,154 2,649 6.1% 5.1% 47.8% 21.8% 15.7x 1.83x 8.4x 1.74x 8.2x

Lululemon Athletica Inc. LULU 60.76 87.1% 8,344 0 501 7,842 2,061 431 14.7% 14.6% 48.4% 20.9% 32.1x 3.81x 18.2x 3.35x 15.6x

Tailored Brands, Inc. TLRD 12.89 19.5% 627 1,656 30 2,253 3,496 366 7.5% 12.0% 43.0% 10.5% NM 0.64x 6.2x 0.67x 6.3x

New York & Company Inc. NWY 3.07 74.0% 198 13 61 150 950 32 2.9% (0.6%) 38.3% 3.3% NM 0.16x 4.7x 0.16x 3.7x

The Children's Place, Inc. PLCE 68.23 80.4% 1,300 25 234 1,092 1,740 154 (0.9%) (1.0%) 36.7% 8.8% 20.2x 0.63x 7.1x 0.62x 5.7x

Pacific Sunwear of California Inc. PSUN 0.00 #DIV/0! 1 122 6 117 801 3 (3.1%) 0.7% 25.4% 0.3% NA 0.15x NM NA NA

Ross Stores Inc. ROST 55.74 93.4% 22,397 396 763 22,029 11,940 1,899 8.1% 7.1% 32.1% 15.9% 22.2x 1.84x 11.6x 1.74x 10.8x

Shoe Carnival Inc. SCVL 24.55 81.8% 486 0 69 417 984 71 4.7% 4.8% 29.5% 7.2% 16.9x 0.42x 5.9x 0.41x 5.6x

Stein Mart Inc. SMRT 5.83 48.8% 270 190 12 449 1,360 73 3.2% 3.3% 28.3% 5.4% 11.5x 0.33x 6.1x 0.31x 5.6x

Stage Stores Inc. SSI 6.06 31.9% 163 166 16 312 1,604 86 (2.1%) (0.5%) 25.4% 5.4% NM 0.19x 3.6x 0.20x 3.4x

Urban Outfitters Inc. URBN 26.08 70.5% 3,062 150 326 2,885 3,445 501 3.7% 7.2% 35.1% 14.6% 14.7x 0.84x 5.8x 0.80x 5.6x

Zumiez, Inc. ZUMZ 14.61 46.1% 374 0 76 298 804 81 (0.9%) 6.3% 33.6% 10.1% 14.0x 0.37x 3.7x 0.36x 4.4x

Mean #DIV/0! $2,968 $674 $399 $3,243 $3,959 $448 4.9% 3.4% 40.5% 10.0% 18.1x 0.71x 6.6x 0.74x 6.0x

Median #DIV/0! $1,269 $92 $187 $1,152 $2,350 $262 3.6% 3.3% 39.0% 9.1% 15.3x 0.48x 5.7x 0.51x 5.2x

Department Chains

Bon-Ton Stores Inc. BONT $1.79 26.1% $38 $995 $7 $1,025 $2,789 $112 (1.2%) (2.2%) 36.3% 4.0% NM 0.37x 9.1x 0.37x 7.5x

Dillard's Inc. DDS 58.28 48.9% 2,051 823 150 2,725 6,680 660 (1.8%) (0.4%) 35.2% 9.9% 9.2x 0.41x 4.1x 0.42x 4.4x

J. C. Penney Company, Inc. JCP 7.39 61.6% 2,271 4,733 415 6,589 12,579 674 2.2% 0.3% 36.0% 5.4% NM 0.52x 9.8x 0.51x 6.4x

Nordstrom Inc. JWN 38.54 48.0% 6,683 2,786 470 8,999 14,471 1,607 4.9% 5.7% 35.8% 11.1% 13.8x 0.62x 5.6x 0.61x 5.8x

Kohl's Corp. KSS 36.21 54.2% 6,705 4,690 423 10,972 19,053 2,384 (0.1%) (0.3%) 35.8% 12.5% 12.2x 0.58x 4.6x 0.58x 4.7x

Macy's, Inc. M 30.73 41.7% 9,477 7,632 734 16,375 26,618 3,252 (5.1%) (1.6%) 39.1% 12.2% 10.0x 0.62x 5.0x 0.63x 5.4x

Stage Stores Inc. SSI 6.06 31.9% 163 166 16 312 1,604 86 (2.1%) (0.5%) 25.4% 5.4% NM 0.19x 3.6x 0.20x 3.4x

Hudson's Bay Company TSX: HBC 14.60 49.5% 2,659 3,705 507 5,857 11,162 653 36.6% 39.9% 41.2% 5.9% 7.8x 0.52x 9.0x 0.39x 6.8x

Mean 45.3% $3,756 $3,191 $340 $6,607 $11,870 $1,179 4.2% 5.1% 35.6% 8.3% 10.6x 0.48x 6.4x 0.47x 5.6x

Median 48.5% $2,465 $3,246 $419 $6,223 $11,871 $667 (0.7%) (0.3%) 35.9% 7.9% 10.0x 0.52x 5.3x 0.47x 5.6x


PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


12



Discount Stores & Mass Merchants

Big Lots Inc. BIG 44.47 88.7% 2,209 62 54 2,218 5,191 361 0.3% (0.1%) 39.8% 7.0% 15.8x 0.43x 6.1x 0.42x 5.8x

Costco Wholesale Corporation COST 145.79 85.9% 64,007 4,975 4,855 64,127 117,269 4,769 1.4% 4.4% 13.1% 4.1% 27.9x 0.55x 13.4x 0.51x 12.5x

CVS Health Corporation CVS 104.55 92.0% 112,289 27,469 1,864 137,894 160,173 12,088 12.0% 9.2% 16.9% 7.5% 22.8x 0.86x 11.4x 0.74x 10.3x

Dollar General Corporation DG 82.88 94.8% 23,759 2,971 158 26,572 20,369 2,305 7.7% 8.3% 31.0% 11.3% 21.0x 1.30x 11.5x 1.19x 10.5x

Dollar Tree, Inc. DLTR 80.03 95.6% 18,852 7,346 740 25,459 15,498 1,721 80.2% 28.0% 37.4% 11.1% NM 1.64x 14.8x 1.21x 10.9x

Macy's, Inc. FDO 27.70 40.9% 9,477 7,632 734 16,375 26,618 3,252 (5.1%) (1.6%) 39.1% 12.2% NA 0.62x 5.0x 0.63x 5.4x

Gordmans Stores, Inc. GMAN 2.20 28.8% 43 47 7 83 658 15 2.3% 2.3% 41.7% 2.3% NM 0.13x 5.4x 0.12x 10.6x

PriceSmart Inc. PSMT 86.08 83.1% 2,614 93 173 2,534 2,886 183 9.2% 10.1% 15.8% 6.3% 28.0x 0.88x 13.9x 0.85x 13.1x

Rite Aid Corporation RAD 7.97 84.2% 8,358 6,994 124 15,227 30,737 1,350 15.9% 6.6% 25.5% 4.4% 49.8x 0.50x 11.3x 0.45x 10.0x

Target Corp. TGT 74.61 86.9% 44,465 12,768 4,046 53,187 73,785 7,350 1.6% 0.2% 29.5% 10.0% 14.2x 0.72x 7.2x 0.74x 7.0x

The TJX Companies, Inc. TJX 75.19 94.9% 49,802 1,616 2,348 49,069 31,622 4,388 7.4% 6.4% 28.9% 13.9% 22.1x 1.55x 11.2x 1.47x 11.0x

Tuesday Morning Corporation TUES 6.58 45.6% 293 0 15 278 947 19 4.5% 4.4% 35.5% 2.0% NM 0.29x NM 0.28x 9.8x

Walgreens Boots Alliance, Inc. WBA 78.87 81.1% 86,382 14,026 3,620 96,788 116,534 7,991 37.8% 18.1% 25.9% 6.9% 25.7x 0.83x 12.1x 0.79x 10.6x

Wal-Mart Stores Inc. WMT 66.02 84.3% 207,222 50,034 8,705 248,551 482,130 33,559 (0.7%) 0.9% 25.1% 7.0% 14.4x 0.52x 7.4x 0.52x 7.8x

Mean 77.6% $44,984 $9,717 $1,960 $52,740 $77,458 $5,668 12.4% 6.9% 28.9% 7.6% 24.2x 0.77x 10.1x 0.71x 9.7x

Median 85.1% $21,306 $5,985 $737 $26,015 $28,677 $2,778 5.9% 5.4% 29.2% 7.0% 22.4x 0.67x 11.3x 0.69x 10.4x

Furniture & Furnishings Retailers

Aaron's, Inc. AAN $24.14 59.2% $1,756 $518 $119 $2,155 $3,212 $451 9.6% 13.1% 50.1% 14.1% 13.0x 0.67x 4.8x 0.64x 6.1x

Bed Bath & Beyond Inc. BBBY 42.84 57.8% 6,676 1,500 602 7,574 12,104 1,689 1.9% 3.5% 38.2% 14.0% 8.4x 0.63x 4.5x 0.61x 4.8x

Conns Inc. CONN 10.52 23.9% 323 1,250 12 1,560 1,613 80 8.6% 23.1% 23.0% 5.0% 12.1x 0.97x 19.5x 0.90x 9.3x

Ethan Allen Interiors Inc. ETH 32.01 90.7% 888 48 49 887 782 102 2.9% 2.2% 55.3% 13.0% 17.5x 1.13x 8.7x 1.08x 8.0x

hhgregg, Inc. HGG 1.74 26.4% 48 0 7 41 2,007 (7) (8.0%) (7.0%) 28.3% NM NM 0.02x NM 0.02x 5.7x

Haverty Furniture Companies Inc. HVT 18.01 73.4% 399 56 66 388 808 70 3.9% 5.3% 53.5% 8.7% 15.5x 0.48x 5.5x 0.46x 5.2x

Kirkland's Inc. KIRK 14.06 47.6% 222 0 44 178 562 49 10.7% 7.8% 48.1% 8.6% 15.0x 0.32x 3.7x 0.29x 3.4x

La-Z-Boy Incorporated LZB 25.13 85.7% 1,254 1 110 1,145 1,483 143 5.7% 5.2% 37.2% 9.6% 16.9x 0.77x 8.0x 0.72x 7.0x

Pier 1 Imports, Inc. PIR 5.32 39.2% 446 202 115 533 1,892 131 0.4% 3.5% 53.0% 6.9% 11.6x 0.28x 4.1x 0.28x 4.2x

Rent-A-Center, Inc. RCII 12.65 37.9% 672 744 46 1,370 3,236 290 0.9% 1.8% 65.6% 9.0% NM 0.42x 4.7x 0.43x 4.5x

Restoration Hardware Holdings, Inc. RH 33.06 31.0% 1,342 694 481 1,555 2,109 249 12.9% 20.9% 36.5% 11.8% 15.3x 0.74x 6.2x 0.70x 6.1x

Select Comfort Corporation SCSS 22.07 69.5% 1,030 0 30 1,001 1,217 105 (1.1%) 9.3% 60.3% 8.7% 32.2x 0.82x 9.5x 0.72x 6.0x

The Sherwin-Williams Company SHW 297.68 96.3% 27,534 2,040 71 29,503 11,463 1,883 2.2% 6.2% 49.6% 16.4% 26.2x 2.57x 15.7x 2.41x 14.5x

Williams-Sonoma Inc. WSM 51.10 57.2% 4,561 0 194 4,367 4,976 658 5.9% 7.2% 37.1% 13.2% 15.2x 0.88x 6.6x 0.84x 6.3x

Mean 56.8% $3,368 $504 $139 $3,733 $3,390 $421 4.0% 7.3% 45.4% 10.7% 16.6x 0.76x 7.8x 0.72x 6.5x

Median 57.5% $959 $129 $69 $1,257 $1,949 $137 3.4% 5.7% 48.9% 9.6% 15.2x 0.70x 6.2x 0.67x 6.1x

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

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


13



Internet Retail

Amazon.com, Inc. AMZN 710.66 98.4% 335,309 17,612 15,859 337,062 113,417 9,087 23.3% 21.0% 33.8% 8.0% NM 2.97x 37.1x 2.40x 20.3x

Alibaba Group Holding Limited BABA $79.29 83.4% $195,846 $57,771 $115,696 $137,921 $101,143 $32,488 32.7% NA 66.0% 32.1% 18.3x 1.36x 4.2x 6.41x 13.9x

Cimpress N.V . CMPR 95.17 95.2% 2,995 852 83 3,764 1,689 234 16.4% 14.1% 58.3% 13.9% NM 2.23x NM 1.83x 12.3x

eBay Inc. EBAY 23.80 35.7% 27,344 9,036 8,013 28,367 8,668 2,978 26.5% (15.8%) 78.8% 34.4% 14.5x 3.27x 9.5x 3.19x 8.1x

Mercadolibre, Inc. MELI 128.70 84.8% 5,683 299 340 5,642 661 168 12.2% 19.0% 73.8% 25.5% 42.3x 8.53x NM 6.94x 29.9x

Blue Nile Inc. NILE 26.17 67.1% 304 0 30 275 477 17 0.1% 4.8% 19.4% 3.5% 29.3x 0.58x 16.3x 0.57x 12.1x

Overstock.com Inc. OSTK 15.38 64.1% 390 28 128 290 1,673 8 7.7% 13.3% 18.3% 0.5% 29.1x 0.17x 36.1x 0.16x 6.0x

The Priceline Group Inc. PCLN 1,283.47 86.9% 63,711 6,424 3,383 66,752 9,531 3,650 10.3% 19.9% 93.6% 38.3% 25.3x 7.00x 18.3x 6.10x 15.5x

Shutterfly, Inc. SFLY 47.20 96.1% 1,627 379 170 1,836 1,081 121 14.5% 17.5% 49.9% 11.2% NM 1.70x 15.2x 1.58x 8.4x

Stamps.com Inc. STMP 83.59 67.5% 1,458 172 120 1,511 252 81 59.3% 28.2% 80.6% 32.1% NM 6.00x 18.7x 4.57x 11.1x

Rakuten, Inc. TSE: 4755 1,205.50 56.6% 1,717,683 698,423 638,201 1,777,905 735,036 152,818 18.7% 17.1% 30.1% 20.8% 40.5x 2.42x 11.6x 2.16x 10.2x

Wayfair Inc. W 38.82 68.3% 3,289 0 309 2,979 2,573 (75) 75.7% NA 24.0% NM NM 1.16x NM 0.79x NM

Mean 75.3% $196,303 $65,916 $65,194 $197,025 $81,350 $16,798 24.8% 13.9% 52.2% 20.0% 28.5x 3.12x 18.6x 3.06x 13.5x

Median 75.9% $4,486 $616 $325 $4,703 $2,131 $201 17.5% 17.3% 54.1% 20.8% 29.1x 2.32x 16.3x 2.28x 12.1x

Specialty & Other Retail

Best Buy Co., Inc. BBY 31.72 81.1% 10,280 1,734 3,360 8,654 39,528 2,290 (2.0%) (1.8%) 23.3% 5.8% 13.8x 0.22x 3.8x 0.22x 4.0x

Big 5 Sporting Goods Corp. BGFV 8.59 55.5% 188 60 6 241 1,020 42 3.0% 1.8% 31.3% 4.1% 15.8x 0.24x 5.8x 0.24x NA

Barnes & Noble, Inc. BKS $10.99 37.9% $821 $0 $64 $757 $5,970 $296 26.8% (4.9%) 30.2% 5.0% 23.6x 0.13x NM 0.18x 3.6x

Dick's Sporting Goods Inc. DKS 39.91 72.3% 4,565 6 119 4,452 7,271 737 6.7% 7.6% 30.0% 10.1% 14.1x 0.61x 6.0x 0.57x 6.0x

The Home Depot, Inc. HD 135.34 98.2% 169,377 20,948 3,257 187,068 90,390 14,079 7.1% 5.9% 34.2% 15.6% 23.8x 2.07x 13.3x 1.97x 12.2x

Hibbett Sports, Inc. HIBB 32.50 66.7% 742 4 32 714 943 129 3.2% 4.8% 35.3% 13.7% 11.1x 0.76x 5.5x 0.72x 5.5x

Marinemax Inc. HZO 18.05 69.2% 464 219 44 639 790 37 11.5% 13.0% 24.8% 4.7% 8.8x 0.81x 17.3x 0.71x 12.5x

Lumber Liquidators Holdings, Inc. LL 11.41 42.6% 309 25 22 312 952 (66) (10.2%) 3.6% 28.2% NM NM 0.33x NM 0.32x NM

Lowe's Companies, Inc. LOW 77.00 98.6% 69,103 12,649 712 81,040 59,074 6,602 5.1% 5.4% 34.8% 11.2% 28.2x 1.37x 12.3x 1.29x 10.3x

Movado Group, Inc. MOV 24.52 79.1% 563 40 228 374 595 84 1.4% 5.6% 53.4% 14.1% 12.9x 0.63x 4.5x 0.63x 4.8x

Office Depot, Inc. ODP 3.49 37.2% 1,920 1,474 879 2,515 14,152 634 (9.4%) 10.3% 24.2% 4.5% NM 0.18x 4.0x 0.19x 3.6x

Staples, Inc. SPLS 8.34 49.8% 5,390 1,035 825 5,600 21,059 1,356 (6.4%) (4.8%) 26.2% 6.4% 14.1x 0.27x 4.1x 0.27x 4.1x

Tiffany & Co. TIF 65.17 67.6% 8,210 1,104 887 8,428 4,105 971 (3.4%) 2.7% 60.7% 23.7% 18.2x 2.05x 8.7x 2.06x 8.5x

Tractor Supply Company TSCO 93.57 96.2% 12,485 271 75 12,682 6,363 793 8.6% 10.4% 34.5% 12.5% 30.3x 1.99x 16.0x 1.79x 14.1x

V itamin Shoppe, Inc. VSI 28.09 67.8% 682 123 2 802 1,266 131 2.0% 8.9% 42.5% 10.3% 16.0x 0.63x 6.1x 0.60x 5.5x

Mean 68.0% $19,007 $2,646 $701 $20,952 $16,899 $1,874 2.9% 4.6% 34.2% 10.1% 17.7x 0.82x 8.3x 0.79x 7.3x

Median 67.8% $1,920 $219 $119 $2,515 $5,970 $634 3.0% 5.4% 31.3% 10.2% 15.8x 0.63x 6.0x 0.60x 5.5x


PAGE |

M&A TRANSACTIONS

RECENT NORTH AMERICAN CONSUMER M&A

CONSUMER AND RETAIL


14

Private Equity

Announced Target Seller Buyer Involvement

5/16/2016 High Ridge Brands Co. Brynwood Partners Clayton, Dubilier & Rice, Ltd. P

5/12/2016 P& Christina Aguilera Line The Procter & Gamble Company (NYSE:PG) Elizabeth Arden, Inc..

5/10/2016 Gaiam Inc. Gaiam Inc. (NasdaqGM:GAIA) Sequential Brands Group (NasdaqCM:SQBG)

5/9/2016 Baby Tula LLC - The ERGO Baby Carrier, Inc.

5/9/2016 Jade Swimwear L.P - The Riverside Company P

5/9/2016 The Mountain Corporation - Gladstone Investment Corporation

5/5/2016 Go Green Hydroponics Inc. OSL Holdings Inc. (OTCPK:OSLH) Growlife, Inc. (OTCPK:PHOT)

5/4/2016 A and G, Inc. Ennis Inc. (NYSE:EBF) Gildan Activewear Inc. (TSX:GIL)

5/2/2016 ReNew Life Formulas, Inc. Swander Pace Capital The Clorox Company (NYSE:CLX) P

4/29/2016 Norvell Skin Solutions, LLC - MT Industries, Inc.

4/29/2016 Eagle One Industries, Inc. Niteo Products, LLC American Covers Inc.

4/27/2016 Baby Trend Inc. - Alpha Group (SZSE:002292)

4/27/2016 Gemvara, Inc. Canaan Partners; Highland Capital Partners; Norwest Venture Partners; Balderton CapitalRichline Group, Inc.

4/26/2016 NeoStrata Company, Inc. McGovern Capital LLC Johnson & Johnson Consumer Inc. P

4/25/2016 Twin-Star International, Inc. Trivest Partners, L.P. Z Capital Management LLC P

4/19/2016 Southern Tide, LLC Brazos Private Equity Partners, LLC; Golub Capital CP Funding, LLC; Golub Capital Pearls Direct Lending Program, L.P; CenterOak Partners LLC; S/T Group Blocker, Inc.; GCP Southern Tide Coinvest, Inc.; S/T Group AIV2, LP; S/T Group AIV1, LP; GCP Equity Ltd.Oxford of South Carolina, Inc. P

4/19/2016 WKI Holding Company, Inc. - GP Investments Acquisition Corp. (NasdaqCM:GPIA)

4/19/2016 World Kitchen - GPIAC P

4/18/2016 ILLUME - Regent Holding Company

4/12/2016 JAYBIRD, LLC - Logitech International SA (SWX:LOGN)

4/12/2016 Scorpion Bike Stands LLC - Feedback Sports LLC

4/6/2016 Always For Me LLC - Waveland Investments LLC P

4/5/2016 TK Enterprises - The Jordan Company, L.P. P

4/1/2016 Alstyle Apparel, LLC Ennis Inc. (NYSE:EBF) Alstyle Apparel, LLC

4/1/2016 Momentum Textiles, LLC Norwest Equity Partners The Riverside Company P

4/1/2016 Strength of Nature Global, LLC - Godrej Consumer Products

4/1/2016 Wilton Armetale, Inc. - Lifetime Brands, Inc. (NasdaqGS:LCUT)

3/31/2016 POW Inc. Alliance of Angels, Investment Arm; Dan Rosen and Associates; Columbia Pacific Advisors, LLC; POW Holdings, LLCRojo Australia Pty Ltd.

3/29/2016 J.America, Inc. - Blue Point Capital Partners P

3/28/2016 South Moon Sales, Inc. - NewSpring Capital; JPB Capital Partners P

3/24/2016 Ramcat Broadheads - Arcus Hunting, LLC

3/22/2016 Controlled Products, LLC - Clearview Capital, LLC P

3/21/2016 Karmaloop, Inc. CapX Partners; Comvest Partners Shiekh Shoes, LLC P

3/17/2016 Newell Rubbermaid Inc., Window Coverings Business Newell Rubbermaid Inc. (NYSE:NWL) Hunter Douglas N.V. (ENXTAM:HDG)

3/12/2016 Thom Browne, Inc. Stripe International Inc. Sandbridge Capital, LLC P

3/10/2016 Denver Design Company, LLC - 5 Horizons Group, LLC

3/10/2016 Natural Dynamics, LLC - Wellnext, LLC

3/9/2016 The Gents Place Men's Fine Grooming of Leawood, LLC - Massage Heights Corporate, LLC

3/8/2016 Thirsty Promo and Bag Warehouse Mark-It Smart Inc. The Image Group, Inc.

3/3/2016 The Procter & Gamble Company., Portfolio of Hair Care BrandsThe Procter & Gamble Company (NYSE:PG) Henkel AG & Co. KGaA (DB:HEN3)

3/3/2016 Tumi Holdings, Inc. (NYSE:TUMI) Doughty Hanson & Co.; Stockwell Capital LLC Samsonite International S.A. (SEHK:1910)

3/2/2016 The Guildery Inc. SoftTech VC; Forerunner Ventures; Cowboy Ventures; BBG VenturesMINTED LLC P

3/1/2016 Kuissential - SCS Direct Inc.

2/26/2016 DECIEM, Grow Gorgeous DECIEM Inc. The Hut.com Ltd

2/24/2016 Bell Sports Corp. BRG Sports, Inc. Vista Outdoor Inc. (NYSE:VSTO)

2/22/2016 Hayneedle Inc. Insight Venture Partners; Sequoia Capital Jet.com, Inc. P

2/22/2016 Zenith Products Corporation Charlesbank Capital Partners, LLC The Laces Company P

2/19/2016 Flint And Tinder USA, LLC Lerer Hippeau Ventures Huckberry LLC P

2/18/2016 Lise Watier Cosmétiques, Inc. Imperial Capital Group Ltd. Groupe Marcelle Inc. P

2/16/2016 Ebuys, Inc. - DSW Shoe Warehouse, Inc.

2/16/2016 The Pet Outpost, L.L.C - Bentley's Pet Stuff LLC

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.

PAGE |

M&A TRANSACTIONS

15

RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED)

CONSUMER AND RETAIL


Private Equity


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

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

PAGE |

HW&CO. CONSUMER TEAM

M&A TRANSACTIONS

CONSUMER AND RETAIL


RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED)

16

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

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

Ed ArkusManaging [email protected]+44 20 7518 8905

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

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

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

Private Equity


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

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

10/9/2015 Pickleball Paddles Plus - Olla LLC













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

Richmond (Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072

San Francisco575 Market Street31st FloorSan Francisco, California 94105Phone: +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

Hong Kong

Mumbai

New Delhi

Shanghai

Consumer

17

CONSUMER AND RETAIL


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 at www.harriswilliams.com/industries.

OUR FIRM

PAGE |

HARRIS WILLIAMS & CO.

18

SOURCES

S&P Capital IQ.

Thomson Financial.

Reuters.

S&P Capital IQ LCD.

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

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.

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/

Documents

INDUSTRY UPDATE │ MAY 2016 - harriswilliams.com Furnishings ... The proliferation of new product categories and product lines with more specific ... INDUSTRY UPDATE │ MAY 2016