consumer & retail industry update - march 2016

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CONSUMER AND RETAIL

INDUSTRY UPDATE │ MARCH 2016

PAGE |

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In spite of recent market volatility, the Harris Williams Consumer team has had a busy

start to 2016 with two deal closings, more than ten live engagements, and an

increasing number of conversations with shareholders considering near-term liquidity

events. We plan to discuss a number of new opportunities with logical investors

throughout the second quarter across a diverse mix of deal sizes and industry

sub-sectors. In addition to executing transactions and building the pipeline, the first

quarter is always active from a trade show perspective. This month we highlight our key

observations on the global pet care sector coming off our recent trip to the Global Pet

Expo in Orlando, Florida.

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

Omni / Multi-Channel Brands

Outdoor and Lifestyle

Personal Care Products

Pet Care

Specialty and Mass Merchant 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


Where’s the Innovation?: Feedback from both

exhibitors and investors attending Global Pet this

year was that the show was very similar to last

year’s version and light on innovation. One

explanation is that the “big-box” audience of

Global Pet is generally conservative in contrast to

Super Zoo (the second show of the year in Las

Vegas during the summer), which tends to be the

better for game-changing new products aimed at

the independent pet specialty retailer.

Additionally, we have now been through several

show cycles with food and treat brands touting

their “better for your pet” qualities like “all-natural,”

“limited ingredient,” and “human-grade.” Such

buzz words tend lose their impact as they proliferate

the show floor.

MAINTAINING STRONG MOMENTUM INTO 2016

GLOBAL PET EXPO: KEY THEMES AND OBSERVATIONS

Global Pet represents the first and most important trade show for most pet products

companies as the March exhibition enables suppliers to achieve meaningful new

placement in 2016 and drive significant sell-through during the latter part of the year.

Major suppliers such as Purina tend to employ a larger footprint at Global Pet as they

hold court with buyers from major food, drug, and mass retailers across the globe.

Representative HW&Co. Pet Transactions

a portfolio company of

has been acquired by

Pet Food



Pet Products



Distribution


Veterinary

Company Aa provider of

veterinary services

Pending

Key Observations

http://www.harriswilliams.com/

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

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HARRIS WILLIAMS & CO. CONSUMER UPDATE

CONSUMER AND RETAIL


2

GLOBAL PET EXPO: KEY THEMES AND OBSERVATIONS (CONTINUED)

Spotlight on Hard Goods: While the hard goods sector has a reputation for being a

sleepier segment due to its moderate growth and perceived lack of differentiation,

investors are paying more attention to branded products and accessories as an

alternative to the repetition of “me-too” food and treat companies. While it can be

challenging to differentiate hard goods due to the lower brand awareness and limited IP

in most categories, investors are looking for creative ways to play the space including

consolidation opportunities, direct-to-consumer strategies, and strategic licensing

arrangements designed to capitalize on the latest pop culture trends. One prime

example of these hard goods trends is Petmate, a long-time consolidator of choice who

recently partnered with country music star Miranda Lambert to launch a line of

MuttNation™ products and accessories that will help fund animal rescue and adoption

programs.

M&A Trends: While 2015 was defined by several larger transactions, including Merrick Pet Care and Petco, 2016 has been

characterized by a steady flow of smaller transactions that we expect to continue throughout the year. The uptick in small

deal activity likely results from consistently strong valuation multiples within pet M&A that have had a material impact on

owners’ value expectations. On the food side, Wellpet’s recent acquisition of Sojos represents the most notable deal of the

year and is a good omen for smaller food brands with an alternative technology (e.g., dehydrated, freeze-dried, etc.)

given its sale to a strategic buyer. On the product side, the acquisitions of Dallas Manufacturing and Hyper Pet are the first

dominoes in what is expected to be a busy year for hard goods as several other assets prepare for market.

Public Markets: Given the limited pure-play opportunities in the sector, Blue Buffalo (BUFF)

and Freshpet (FRPT) continually garner the most attention from the analyst community.

After a turbulent end to 2015, shares of BUFF surged in late Q1 2016 after the company

exceeded earnings expectations and issued a bullish outlook for the balance of 2016.

While BUFF remains highly confident in its ability to grow its market share and extract

more margin through in-sourcing and other initiatives, skeptics continue to question

whether the company can maintain its growth trajectory due to accelerating

competition and mixed consumer perception due to ongoing legal battles with Nestle-

Purina. As for FRPT, the company recently announced the retirement of CEO and long-

time industry veteran Richard Thompson. Shares of the company have since trended up

based on a better-than-expected Q1 and a well-articulated management succession

plan.

2015 2016

Target

Acquirer

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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

Apparel & Footwear Retail

Consumer Services and Retail

Franchisors

Consumer Durables

Pet Care

Home & Office Furniture & Furnishings

Consumer & Retail Index

S&P 500

Internet Retail

Discount Stores & Mass Merchants

Apparel & Footwear

Housewares

Outdoor & Lifestyle

Household Products


Infant & Juvenile

(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 $3,047 13.7% (0.5%) 1.5x 11.0x 1.5x 10.1x

Consumer Durables 6 15,781 1.6% (12.2%) 0.9x 9.6x 0.9x 7.9x

Consumer Services and Retail Franchisors 7 3,547 (4.4%) (13.9%) 2.8x 10.1x 2.0x 8.5x

Home & Office Furniture & Furnishings 10 1,465 (4.1%) (5.8%) 0.8x 8.9x 0.8x 7.3x

Household Products 5 18,208 1.9% 7.4% 3.7x 14.9x 3.6x 14.2x

Housewares 10 3,452 0.7% (0.5%) 1.3x 13.3x 1.6x 9.9x

Infant & Juvenile 12 3,172 10.7% 14.8% 0.7x 10.7x 0.7x 8.2x

Outdoor & Lifestyle 20 1,000 0.9% (12.2%) 1.4x 11.2x 1.3x 9.0x

Personal Care Products 13 3,433 3.2% 5.1% 1.4x 10.5x 1.3x 11.2x

Pet Care 8 2,962 1.3% 8.9% 1.5x 14.3x 1.8x 11.9x

Retail

Apparel & Footwear Retail 31 1,436 7.6% (14.7%) 0.6x 6.5x 0.7x 6.1x

Department Chains 8 7,355 14.5% (29.7%) 0.6x 6.4x 0.6x 6.7x

Discount Stores & Mass Merchants 14 26,697 8.4% (2.0%) 0.8x 11.6x 0.8x 10.6x

Furniture & Furnishings Retailers 14 1,382 (4.7%) (33.1%) #DIV/0! 7.3x 0.7x 6.8x

Internet Retail 12 4,201 (4.8%) (4.1%) 2.3x 14.7x 2.1x 12.2x

Specialty & Other Retail 15 3,306 2.3% (19.6%) 0.7x 6.8x 0.7x 6.4x

Consumer Products & Services 115 $3,303 1.5% (0.5%) 1.4x 10.9x 1.4x 9.5x

Retail 94 $3,753 5.0% (17.1%) #DIV/0! 7.1x 0.7x 6.7x

Consumer & Retail Index 209 $3,369 1.7% (4.9%) #DIV/0! 10.6x 1.1x 8.7x

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

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

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

50

75

100

125

150

175

200

225

250

Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-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

11.8x 11.9x11.8x 11.8x

12.2x12.4x

12.0x11.6x

12.4x11.8x 11.7x

11.3x 11.4x

12.1x

10.8x

10.0x10.2x

10.4x10.0x 9.5x

10.0x 10.0x 10.2x

11.3x

8.2x7.9x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

2/1/15 3/1/15 4/1/15 5/1/15 6/1/15 7/1/15 8/1/15 9/1/15 10/1/15 11/1/15 12/1/15 1/1/16 2/1/16

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

61

13

14

25

34

21

18 13

512

26

12

16

9

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

$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

8.4x

10.7x 10.0x 9.8x

10.8x

12.4x

6.6x

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

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, LLCMassage Heights Corporate, LLC

3/8/2016 Thirsty Promo and Bag Warehouse The Image Group, Inc.

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

3/3/2016 Tumi Holdings, Inc. (NYSE:TUMI) Samsonite International S.A. (SEHK:1910)

3/2/2016 The Guildery Inc. MINTED LLC

3/1/2016 Kuissential SCS Direct Inc.

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

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

Last 10 Deals Announced

Aggregate Number Transaction Multiples

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

$91.4 381 0.90x 11.1x

LTM Deal Statistics

72

31

37

53

73

86

57

66

9

48

28

59

53

76

57

68

84

15

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

• Sears Holdings is shopping an incremental ABL term loan. Price talks on the term debt are set at L+800 with a 1.00%floor and offered at 96-97. The loan is pegged to yield roughly 10.27-10.59% to maturity. The incremental term loandue July 2020 will be used to finance outstanding obligations under Sears’ $3.275 billion asset-based revolver. Theloan is set to include a 1x fixed-charge-coverage ratio and will carry 102 and 101 hard call premiums in years oneand two respectively.

• Iconix Brand Group entered into a $300 million senior secured term loan funded by Fortress Investment Group.Proceeds will be used to repay a portion of Iconix’s convertible senior subordinated notes due in June. The loan,due March 2021, is boasting pricing of L+1,000 with a 1.5% LIBOR floor. A leverage test of 4.5x and a minimum-asset-coverage covenant of 1.25x are guiding the debt. S&P assigned an issue rating to the loan of B, with a recoveryrating of 3.

• Restaurant operator HRI Holding finalized a senior secured credit arrangement totaling more than $50 million toback York Capital Management’s recent acquisition of the business. CIT Commercial and Industrial Finance wasthe sole lead arranger on the transaction.

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 3/15/16 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 39.40 90.7% 10,941 887 1,337 10,491 4,238 932 (5.7%) (4.9%) 68.6% 22.0% 29.8x 2.48x 11.3x 2.28x 10.1x

Columbia Sportswear Company COLM 60.34 80.8% 4,182 17 370 3,829 2,326 310 10.7% 11.7% 46.1% 13.3% 24.6x 1.65x 12.3x 1.55x 11.8x

Carter's, Inc. CRI 102.23 93.3% $5,290 $584 $381 $5,494 $3,014 $463 4.1% 8.2% 41.7% 15.4% 22.7x 1.82x 11.9x 1.72x 10.9x

Crocs, Inc. CROX 9.77 60.9% 713 6 143 576 1,091 4 (9.0%) (1.0%) 46.8% 0.4% NM 0.53x 144.5x 0.51x 8.1x

Deckers Outdoor Corp. DECK 56.59 72.6% 1,835 56 263 1,628 1,837 241 3.7% 9.1% 45.9% 13.1% 12.8x 0.89x 6.8x 0.87x 6.2x

Fossil Group, Inc. FOSL 49.57 57.3% 2,386 810 289 2,906 3,229 423 (8.0%) 4.2% 54.3% 13.1% 11.0x 0.90x 6.9x 0.93x 9.2x

G-III Apparel Group, Ltd. GIII 53.45 72.3% 2,434 172 54 2,551 2,331 232 12.3% 20.9% 36.2% 10.0% 19.3x 1.09x 11.0x 1.00x 10.3x

Hanesbrands Inc. HBI 29.33 84.3% 11,488 2,625 319 13,793 5,732 974 7.6% 8.2% 38.1% 17.0% 27.7x 2.41x 14.2x 2.36x 13.4x

Iconix Brand Group, Inc. ICON 8.09 21.7% 392 1,472 136 1,727 374 180 1.0% 0.9% 100.0% 48.2% 4.3x 4.62x 9.6x 4.58x 10.0x

Kate Spade & Company KATE 24.07 68.3% 3,084 402 298 3,187 1,243 174 9.1% 31.6% 60.7% 14.0% NM 2.56x NM 2.28x 12.2x

NIKE, Inc. NKE 60.81 89.2% 103,569 2,176 6,116 99,629 31,339 5,059 5.3% 8.8% 46.3% 16.1% 29.5x 3.18x 19.7x 2.91x 17.5x

Oxford Industries Inc. OXM 76.54 83.9% 1,269 69 7 1,331 1,036 123 12.4% 8.2% 56.2% 11.9% 26.0x 1.28x 10.8x 1.31x 9.6x

Perry Ellis International Inc. PERY 19.47 69.1% 307 132 36 403 903 44 1.6% (1.4%) 34.8% 4.9% NM 0.45x 9.1x 0.44x 6.8x

PVH Corp. PVH 87.88 72.8% 7,201 3,367 370 10,199 7,977 947 (3.0%) 10.3% 52.2% 11.9% 15.0x 1.28x 10.8x 1.27x 9.9x

Ralph Lauren Corporation RL 98.57 69.9% 8,281 900 1,215 7,966 7,419 1,141 (2.4%) 2.3% 57.0% 15.4% 17.9x 1.07x 7.0x 1.10x 7.6x

Steven Madden, Ltd. SHOO 36.28 81.1% 2,242 0 105 2,137 1,405 195 5.3% 4.6% 35.6% 13.9% 19.6x 1.52x 10.9x 1.48x 10.9x

Skechers U.S.A., Inc. SKX 31.53 57.8% 4,929 85 508 4,506 3,159 404 32.4% 26.3% 45.4% 12.8% 21.0x 1.43x 11.2x 1.22x 8.6x

Gildan Activewear Inc. TSX: GIL 38.63 84.5% 9,411 375 51 9,735 2,569 493 11.7% 7.5% 26.8% 19.2% 19.7x 3.79x 19.7x 3.70x 17.7x

Tumi Holdings, Inc. TUMI 26.98 96.9% 1,818 0 95 1,724 548 122 3.9% 11.2% 59.7% 22.2% 29.1x 3.15x 14.2x 3.00x 14.7x

Under Armour, Inc. UA 81.81 77.3% 17,790 670 130 18,330 3,963 516 28.5% 29.3% 48.1% 13.0% NM 4.63x 35.5x 3.67x 28.4x

V.F. Corporation VFC 65.78 85.0% 27,922 1,865 946 28,841 12,377 2,077 0.8% 4.4% 48.3% 16.8% 23.1x 2.33x 13.9x 2.23x 13.3x

Vera Bradley, Inc. VRA 19.79 98.7% 752 0 98 654 503 75 (1.3%) (2.1%) 56.6% 14.9% 27.9x 1.30x 8.7x 1.27x 8.3x

Weyco Group Inc. WEYS 25.24 81.4% 270 27 22 274 321 33 0.0% 3.0% 37.9% 10.4% 15.0x 0.85x 8.2x NA NA

Wolverine World Wide Inc. WWW 18.70 53.1% 1,868 820 194 2,494 2,692 287 (2.5%) 17.9% 39.2% 10.7% 15.6x 0.93x 8.7x 0.98x 9.3x

Mean 75.1% $9,599 $730 $562 $9,767 $4,234 $644 4.9% 9.1% 49.3% 15.0% 20.6x 1.92x 18.1x 1.85x 11.5x

Median 79.0% $2,759 $388 $229 $3,047 $2,450 $299 3.8% 8.2% 46.6% 13.6% 20.4x 1.47x 11.0x 1.48x 10.1x

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 28.97 56.0% 2,151 1,452 56 3,547 2,639 484 1.0% 2.8% 37.3% 18.3% 11.1x 1.34x 7.3x 1.33x 7.3x

H&R Block, Inc. HRB 27.92 74.4% 6,265 2,628 191 8,703 3,042 860 (8.9%) 4.0% 49.5% 28.3% 17.3x 2.86x 10.1x 2.82x 9.7x

Planet Fitness, Inc. PLNT 14.97 72.4% 548 485 31 1,001 331 105 18.1% NA 48.3% 31.7% NM 3.03x 9.6x 2.77x 7.1x

Regis Corp. RGS 14.96 82.5% 713 120 130 703 1,817 82 (3.1%) (4.3%) 33.6% 4.5% NM 0.39x 8.5x 0.39x 7.1x

Realogy Holdings Corp. RLGY 33.97 68.3% 4,985 3,996 415 8,566 5,706 754 7.1% 6.9% 48.6% 13.2% 27.4x 1.50x 11.4x 1.42x 9.8x

ServiceMaster Global Holdings, Inc. SERV 36.21 85.8% 4,909 2,760 320 7,349 2,594 577 5.6% NA 47.0% 22.2% 30.4x 2.83x 12.7x 2.65x 10.7x

Winmark Corp. WINA 99.15 91.6% 407 66 1 473 69 38 13.5% 10.2% 88.1% 54.0% 21.1x 6.80x 12.6x NA NA

Mean 75.9% $2,854 $1,644 $164 $4,335 $2,314 $414 4.8% 3.9% 50.4% 24.6% 21.5x 2.68x 10.3x 1.90x 8.6x

Median 74.4% $2,151 $1,452 $130 $3,547 $2,594 $484 5.6% 4.0% 48.3% 22.2% 21.1x 2.83x 10.1x 2.03x 8.5x

Home & Office Furniture & Furnishings

The Dixie Group, Inc. DXYN 4.49 39.0% 70 131 0 200 422 20 3.9% 16.6% 25.1% 4.6% NM 0.47x 10.3x 0.47x NA

HNI Corp. HNI 35.91 62.2% 1,586 190 33 1,743 2,304 230 3.7% 4.8% 36.8% 10.0% 15.5x 0.76x 7.6x 0.78x 7.3x

Hooker Furniture Corp. HOFT 32.84 99.5% 379 0 49 329 251 27 6.0% 5.7% 27.1% 10.6% 21.9x 1.31x 12.4x 0.67x NA

Kimball International, Inc. KBAL 11.09 85.4% 415 0 26 389 625 50 11.9% (18.6%) 31.9% 8.0% 19.6x 0.62x 7.7x NA NA

Knoll, Inc. KNL 19.73 75.7% 969 222 4 1,187 1,104 133 5.2% 7.1% 37.3% 12.1% 14.5x 1.07x 8.9x 1.03x 7.5x

Leggett & Platt, Incorporated LEG 46.75 91.2% 6,344 949 253 7,039 3,917 590 3.6% 4.7% 23.6% 15.1% 20.6x 1.80x 11.9x 1.75x 11.2x

La-Z-Boy Incorporated LZB 25.89 88.2% 1,292 1 110 1,182 1,483 143 5.7% 5.2% 37.2% 9.6% 17.4x 0.80x 8.3x 0.75x 7.2x

Herman Miller Inc. MLHR $28.11 85.9% $1,682 $257 $60 $1,879 $2,213 $250 9.6% 8.9% 38.0% 11.3% 15.0x 0.85x NM 0.81x 7.1x

Steelcase Inc. SCS 14.29 69.9% 1,749 300 266 1,783 3,062 277 (0.9%) 2.6% 32.0% 9.0% 15.5x 0.58x 6.4x 0.57x 5.6x

Tempur Sealy International Inc. TPX 58.15 70.4% 3,630 1,455 154 4,931 3,151 397 5.4% 31.0% 39.7% 12.6% 49.7x 1.56x 12.4x 1.49x 9.3x

Mean 76.7% $1,811 $350 $96 $2,066 $1,853 $212 5.4% 6.8% 32.9% 10.3% 21.1x 0.98x 9.6x 0.92x 7.9x

Median 80.5% $1,439 $206 $55 $1,465 $1,848 $186 5.3% 5.4% 34.4% 10.3% 17.4x 0.82x 8.9x 0.78x 7.3x

Household Products

Church & Dwight Co. Inc. CHD 90.60 97.7% 11,753 1,050 330 12,473 3,395 784 2.9% 5.1% 44.5% 23.1% 29.5x 3.67x 15.9x 3.59x 15.2x

Colgate-Palmolive Co. CL $68.24 96.6% $60,920 $6,571 $1,072 $66,419 $16,034 $4,386 (7.2%) (2.1%) 58.7% 27.4% 25.2x 4.14x 15.1x 4.35x 15.2x

The Clorox Company CLX 125.94 95.3% 16,302 2,296 390 18,208 5,693 1,222 2.4% 0.5% 44.6% 21.5% 25.4x 3.20x 14.9x 3.17x 14.2x

Prestige Brands Holdings, Inc. PBH 52.14 96.1% 2,751 1,447 49 4,149 788 296 18.1% 9.3% 58.5% 37.5% 25.2x 5.26x 14.0x 4.90x 13.6x

The Procter & Gamble Company PG 81.17 95.4% 219,530 31,526 14,277 236,779 72,455 18,672 (5.3%) (4.6%) 51.3% 25.8% 25.6x 3.27x 12.7x 3.63x 13.9x

Mean 96.2% $62,251 $8,578 $3,224 $67,606 $19,673 $5,072 2.2% 1.7% 51.5% 27.0% 26.2x 3.91x 14.5x 3.93x 14.4x

Median 96.1% $16,302 $2,296 $390 $18,208 $5,693 $1,222 2.4% 0.5% 51.3% 25.8% 25.4x 3.67x 14.9x 3.63x 14.2x

Housewares

Fiskars Oyj Abp FIS1V 17.48 83.0% 1,432 270 540 1,162 1,105 87 44.0% 13.9% 37.8% 7.9% 16.8x 1.05x 13.4x 0.93x 8.8x

Helen of Troy Limited HELE 103.25 97.0% 2,921 475 21 3,374 1,538 212 11.4% 7.0% 41.5% 13.8% 22.6x 2.19x 15.9x 2.15x 14.1x

Jarden Corp. JAH 55.83 96.3% 12,278 6,381 1,298 17,360 8,604 966 3.8% 8.7% 31.7% 11.2% NM 2.02x 18.0x 1.73x 11.4x

Libbey Inc. LBY 18.75 44.6% 408 433 49 792 825 113 (3.6%) (0.1%) 23.4% 13.7% 6.3x 0.96x 7.0x 0.95x 6.8x

Lifetime Brands, Inc. LCUT 13.99 85.0% 196 101 7 290 588 39 0.3% 6.5% 36.5% 6.6% 16.3x 0.49x 7.5x 0.48x NA

Nacco Industries Inc. NC 52.41 83.2% 360 171 53 479 916 5 2.1% 1.6% 19.7% 0.6% 16.7x 0.52x 93.0x NA NA

Newell Rubbermaid Inc. NWL 41.27 81.1% 11,027 3,082 275 13,834 5,916 993 3.3% 2.4% 39.0% 16.8% 43.0x 2.34x 13.9x 2.31x 13.0x

SEB SA SK 89.30 91.6% 4,319 1,334 1,015 4,637 4,770 476 12.1% 5.5% 9.0% 10.0% 21.6x 0.97x 9.7x 0.93x 8.1x

Spectrum Brands Holdings, Inc. SPB 103.22 96.9% 6,130 4,129 162 10,097 4,841 761 10.1% 13.9% 36.0% 15.7% 34.4x 2.09x 13.3x 1.97x 10.8x

Tupperware Brands Corporation TUP 56.23 78.4% 2,840 771 80 3,531 2,284 379 (12.4%) (4.0%) 67.4% 16.6% 15.2x 1.55x 9.3x 1.62x 9.1x

Mean 83.7% $4,191 $1,715 $350 $5,556 $3,139 $403 7.1% 5.5% 34.2% 11.3% 21.4x 1.42x 20.1x 1.45x 10.2x

Median 84.1% $2,880 $623 $121 $3,452 $1,911 $295 3.6% 6.0% 36.2% 12.5% 16.8x 1.30x 13.3x 1.62x 9.9x

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

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Infant & Juvenile

Carter's, Inc. CRI 102.23 93.3% 5,290 584 381 5,494 3,014 463 4.1% 8.2% 41.7% 15.4% 22.7x 1.82x 11.9x 1.72x 10.9x

Crown Crafts, Inc. CRWS 8.96 99.9% 90 0 8 82 85 11 1.7% 2.3% 27.6% 13.3% 13.4x 0.96x 7.2x 0.99x 6.9x

Dorel Industries Inc. DII.B 26.76 74.0% 867 553 38 1,382 2,683 162 0.2% 2.5% 21.8% 6.0% 24.4x 0.52x 8.5x 0.50x 7.5x

Hasbro Inc. HAS 78.40 92.9% 9,784 1,712 999 10,496 4,448 847 4.0% 2.8% 52.8% 19.1% 22.0x 2.36x 12.4x 2.23x 11.4x

JAKKS Pacific, Inc. JAKK 7.29 70.9% 135 215 103 247 746 49 (7.9%) 3.8% 31.9% 6.6% 10.3x 0.33x 5.0x 0.31x 3.9x

Mattel, Inc. MAT 32.82 95.5% 11,159 2,117 893 12,383 5,703 889 (5.3%) (3.9%) 49.2% 15.6% 30.4x 2.17x 13.9x 2.25x 13.1x

Mothercare plc MTC 1.90 63.7% 324 0 27 297 691 31 (4.2%) (4.3%) 15.8% 4.5% NM 0.43x 9.6x 0.42x 5.6x

Newell Rubbermaid Inc. NWL 41.27 81.1% 11,027 3,082 275 13,834 5,916 993 3.3% 2.4% 39.0% 16.8% 43.0x 2.34x 13.9x 2.31x 13.0x

The Children's Place, Inc. PLCE 70.68 99.8% 1,411 0 228 1,184 1,726 153 (2.0%) (1.6%) 36.2% 8.9% 25.2x 0.69x 7.7x 0.68x 6.4x

Goodbaby International Holdings Limited SEHK: 1086 3.36 84.4% 3,725 2,033 796 4,963 7,159 284 50.6% 18.7% 26.0% 4.0% NM 0.69x 17.4x 0.65x 8.9x

Summer Infant, Inc. SUMR 1.81 55.9% 33 57 1 89 206 5 0.2% (5.9%) 30.1% 2.3% NM 0.43x 19.0x 0.43x 6.8x

TOMY Company, Ltd. TSE: 7867 857.00 99.0% 72,947 77,744 34,789 115,902 160,527 13,682 8.1% (3.9%) 36.2% 8.5% NM 0.72x 8.5x 0.69x 9.0x

Mean 84.2% $9,733 $7,341 $3,211 $13,863 $16,075 $1,464 4.4% 1.8% 34.0% 10.1% 23.9x 1.12x 11.3x 1.10x 8.6x

Median 88.6% $2,568 $569 $251 $3,172 $2,849 $223 1.0% 2.4% 34.1% 8.7% 23.5x 0.71x 10.7x 0.69x 8.2x

Outdoor & Lifestyle

Arctic Cat Inc. ACAT $16.08 41.2% $209 $0 $11 $198 $610 ($2) (18.1%) (2.4%) 14.6% NM NM 0.33x NM 0.30x 7.5x

Brunswick Corporation BC 44.94 80.2% 4,091 449 671 3,868 4,106 515 7.0% 6.3% 27.1% 12.6% 18.6x 0.94x 7.5x 0.86x 6.5x

Black Diamond, Inc. BDE 4.67 43.4% 153 20 98 75 155 2 (19.6%) 2.2% 34.9% 1.2% NM 0.48x NM 0.51x 19.2x

Columbia Sportswear Company COLM 60.34 80.8% 4,182 17 370 3,829 2,326 310 10.7% 11.7% 46.1% 13.3% 24.6x 1.65x 12.3x 1.55x 11.8x

Callaway Golf Co. ELY 8.85 85.9% 830 15 50 795 844 44 (4.9%) 0.4% 42.4% 5.3% NM 0.94x NM 0.92x 16.1x

Escalade Inc. ESCA 12.73 63.7% 181 23 2 202 156 18 12.7% 11.4% 28.0% 11.6% 15.5x 1.30x 11.2x 1.17x 8.1x

Fox Factory Holding Corp FOXF 16.10 82.1% 596 49 7 638 367 56 19.6% 15.9% 30.8% 15.3% 24.4x 1.74x 11.4x 1.64x 9.2x

GoPro, Inc. GPRO 12.27 18.7% 1,679 0 474 1,205 1,620 84 16.2% 192.9% 41.6% 5.2% 49.1x 0.74x 14.4x 0.88x NM

Amer Sports Corp. HLSE: AMEAS 24.69 88.0% 2,839 792 331 3,299 2,534 263 13.7% 7.1% 45.2% 10.4% 24.0x 1.30x 12.5x 1.21x 11.1x

Rapala VMC Corp. HLSE: RAP1V 4.30 73.5% 165 123 13 275 279 26 1.9% (1.5%) 50.8% 9.3% 25.3x 0.99x 10.7x 0.98x 8.3x

Harley-Davidson, Inc. HOG 48.39 76.9% 8,905 6,890 446 15,350 5,995 1,362 (3.7%) 2.4% 37.2% 22.7% 13.1x 2.56x 11.3x 2.88x 11.2x

Johnson Outdoors Inc. JOUT 22.69 64.3% 226 32 49 209 445 33 6.7% 2.0% 39.9% 7.5% 15.7x 0.47x 6.2x 0.45x NA

Malibu Boats, Inc. MBUU 15.28 63.3% 275 76 15 335 243 41 17.6% 34.5% 27.0% 16.7% 14.1x 1.38x 8.3x 1.26x 6.5x

Marine Products Corp. MPX 7.60 84.5% 292 0 16 276 207 22 21.1% 11.6% 21.2% 10.4% 19.6x 1.33x NM 1.24x 11.6x

Nautilus Inc. NLS 18.41 80.2% 571 80 61 590 336 48 22.3% 20.1% 52.8% 14.4% 21.7x 1.76x 12.2x 1.35x 8.8x

Polaris Industries Inc. PII 97.55 62.4% 6,302 463 156 6,609 4,789 868 5.4% 13.9% 29.4% 18.1% 14.5x 1.38x 7.6x 1.39x 8.0x

Sturm, Ruger & Co. Inc. RGR 74.66 97.8% 1,415 0 69 1,345 551 128 1.2% 3.9% 31.2% 23.2% 23.3x 2.44x 10.5x 2.25x 8.6x

Smith & Wesson Holding Corporation SWHC 28.37 98.8% 1,563 174 105 1,632 683 179 26.1% 8.2% 39.7% 26.3% 19.6x 2.39x 9.1x 2.23x 8.3x

Shimano Inc. TSE: 7309 17,780.00 88.0% 1,648,268 10,022 190,210 1,468,080 378,645 100,618 13.6% 15.5% 40.8% 26.6% 21.6x 3.88x 14.6x 3.80x 14.2x

V ista Outdoor Inc. VSTO 51.09 94.8% 3,122 687 71 3,738 2,144 305 (0.9%) NA 27.0% 14.2% 25.6x 1.74x 12.2x 1.48x 9.5x

Mean 73.4% $84,293 $996 $9,661 $75,628 $20,352 $5,246 7.4% 18.7% 35.4% 13.9% 21.8x 1.49x 10.8x 1.42x 10.3x

Median 80.2% $1,122 $62 $70 $1,000 $647 $70 8.8% 8.2% 36.0% 13.3% 21.6x 1.36x 11.2x 1.25x 9.0x

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

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Avon Products Inc. AVP 4.38 46.3% 1,907 2,215 689 3,433 6,161 443 (19.4%) (16.4%) 60.5% 7.2% NM 0.56x 7.7x 0.60x 7.5x

The Estée Lauder Companies Inc. EL 93.83 99.2% 34,584 1,982 1,420 35,145 11,064 2,129 1.0% 3.5% 80.5% 19.2% 30.3x 3.18x 16.5x 3.04x 15.5x

Herbalife Ltd. HLF 57.10 92.2% 5,292 1,622 890 6,024 4,469 682 (9.9%) 3.1% 52.8% 15.3% 14.4x 1.35x 8.8x 1.33x 8.3x

Kimberly-Clark Corporation KMB 134.72 100.0% 48,589 7,839 619 55,809 18,591 4,133 (5.7%) (1.5%) 35.8% 22.2% 48.6x 3.00x 13.5x 3.05x 13.5x

Medifast Inc. MED 28.33 84.4% 334 0 67 267 273 36 (4.4%) (5.0%) 73.8% 13.2% 17.5x 0.98x 7.4x 0.97x 7.3x

Nu Skin Enterprises Inc. NUS 36.29 57.7% 2,026 250 305 1,970 2,247 316 (12.5%) 1.8% 78.2% 14.1% 16.1x 0.88x 6.2x 0.92x 6.2x

The Procter & Gamble Company PG 81.17 95.4% 219,530 31,526 14,277 236,779 72,455 18,672 (5.3%) (4.6%) 51.3% 25.8% 25.6x 3.27x 12.7x 3.63x 13.9x

Elizabeth Arden, Inc. RDEN 6.47 37.1% 194 382 54 521 949 (15) (5.7%) (10.3%) 43.3% NM NM 0.55x NM 0.53x 17.1x

Revlon, Inc. REV 35.89 86.1% 1,855 1,848 327 3,376 1,914 323 (1.4%) 11.1% 65.2% 16.8% 31.8x 1.76x 10.5x NA NA

Sally Beauty Holdings Inc. SBH 31.79 90.1% 4,751 1,783 67 6,466 3,868 617 2.4% 2.8% 49.6% 15.9% 22.3x 1.67x 10.5x 1.62x 10.3x

ULTA Salon, Cosmetics & Fragrance, Inc. ULTA 190.02 98.9% 12,104 0 476 11,628 3,924 671 21.1% 20.9% 35.3% 17.1% 38.2x 2.96x 17.3x 2.53x 14.6x

USANA Health Sciences Inc. USNA 119.56 67.6% 1,428 0 143 1,285 918 152 16.2% 12.3% 82.6% 16.5% 16.7x 1.40x 8.5x 1.26x 8.1x

All for One Steeb AG XTRA:A1OS $69.99 90.9% $349 $25 $35 $339 $251 $27 12.9% 14.7% 23.3% 10.8% 27.3x 1.35x 12.6x 1.31x 12.1x

Mean 80.5% $25,611 $3,805 $1,490 $27,926 $9,776 $2,168 (0.8%) 2.5% 56.3% 16.2% 26.2x 1.76x 11.0x 1.73x 11.2x

Median 90.1% $2,026 $1,622 $327 $3,433 $3,868 $443 (4.4%) 2.8% 52.8% 16.2% 25.6x 1.40x 10.5x 1.32x 11.2x

Pet Care

Blue Buffalo Pet Products, Inc. BUFF 23.41 81.3% 4,593 387 224 4,756 1,027 219 12.0% NA 40.8% 21.3% NM 4.63x 21.7x 4.18x 18.3x

Central Garden & Pet Company CENT $15.06 82.4% $741 $436 $9 $1,169 $1,703 $145 5.1% 0.3% 29.3% 8.5% 25.7x 0.69x 8.1x 0.65x 7.7x

Freshpet, Inc. FRPT $7.35 28.4% $246 $0 $11 $235 $116 $4 33.9% NA 47.0% 3.4% NM 2.02x 59.9x 1.71x 12.9x

Oil-Dri Corp. of America ODC 34.73 89.2% 252 15 29 238 264 33 (0.1%) 2.7% 26.9% 12.5% 15.9x 0.90x 7.2x NA NA

Spectrum Brands Holdings, Inc. SPB 103.22 96.9% 6,130 4,129 162 10,097 4,841 761 10.1% 13.9% 36.0% 15.7% 34.4x 2.09x 13.3x 1.97x 10.8x

Maabarot Products Ltd. TASE:MABR 50.57 90.2% 496 18 158 356 346 23 (5.3%) (0.1%) 41.9% 6.7% NM 1.03x 15.2x NA NA

Echo Trading Co., Ltd. TSE:7427 591.00 84.4% 3,567 5,800 3,496 5,871 74,964 56 (0.5%) (0.3%) 12.6% 0.1% NM 0.08x 105.3x NA NA

Unicharm Corporation TSE:8113 2,479.00 74.8% 1,476,745 69,024 138,503 1,407,266 738,707 111,919 13.4% 18.2% 45.0% 15.2% 37.3x 1.91x 12.6x 1.77x 11.9x

Mean 78.5% $186,596 $9,976 $17,824 $178,749 $102,746 $14,145 8.6% 5.8% 34.9% 10.4% 28.3x 1.67x 30.4x 2.06x 12.3x

Median 83.4% $2,154 $412 $160 $2,962 $1,365 $100 7.6% 1.5% 38.4% 10.5% 30.1x 1.47x 14.3x 1.77x 11.9x

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 16.56 89.6% 2,992 0 260 2,732 3,522 469 7.3% 0.4% 37.0% 13.3% 15.2x 0.78x 5.8x 0.75x 5.3x

Abercrombie & Fitch Co. ANF $32.23 98.2% $2,171 $334 $589 $1,916 $3,519 $329 (6.0%) (7.9%) 61.3% 9.3% NM 0.54x 5.8x 0.55x 5.5x

Aéropostale, Inc. ARO 0.47 12.8% 37 143 42 138 1,603 (62) (16.3%) (12.6%) 31.8% NM NM 0.09x NM 0.10x NM

Ascena Retail Group Inc. ASNA 10.37 59.0% 1,987 1,659 295 3,350 5,834 511 21.3% 12.5% 56.5% 8.8% NM 0.57x 6.6x 0.46x 4.7x

The Buckle, Inc. BKE 33.42 64.3% 1,606 0 198 1,408 1,120 261 (2.9%) (0.1%) 43.0% 23.3% 10.9x 1.26x 5.4x 1.29x 5.6x

Cabela's Incorporated CAB 48.22 81.9% 3,270 4,755 158 7,867 3,998 456 9.6% 8.7% 42.8% 11.4% 18.1x 1.97x 17.3x 1.85x 15.6x

Caleres, Inc. CAL 29.21 86.3% 1,276 200 86 1,390 2,584 176 1.1% 1.3% 40.5% 6.8% 14.9x 0.54x 7.9x 0.52x 6.7x

The Cato Corporation CATO 37.02 87.4% 1,010 0 260 750 1,001 116 3.8% 2.3% 39.2% 11.5% 16.1x 0.75x 6.5x 0.72x NA

Chico's FAS Inc. CHS 12.74 69.5% 1,703 92 140 1,655 2,642 268 (1.2%) 0.8% 54.1% 10.2% NM 0.63x 6.2x 0.65x 5.7x

Citi Trends, Inc. CTRN 18.11 63.1% 281 0 72 209 684 43 1.9% 1.5% 39.0% 6.3% 17.6x 0.31x 4.9x 0.30x 4.6x

Destination Maternity Corporation DEST 8.30 51.9% 115 45 2 157 488 (54) (5.6%) (3.4%) 39.6% NM NM 0.32x NM NA NA

DSW Inc. DSW 27.49 69.5% 2,381 0 259 2,122 2,620 287 5.0% 5.1% 29.3% 10.9% 17.9x 0.81x 7.4x 0.75x 7.2x

Destination XL Group, Inc. DXLG 4.99 74.5% 253 84 6 332 438 33 9.4% 3.4% 47.3% 7.5% NM 0.76x 10.1x 0.72x 10.6x

Express Inc. EXPR 20.96 98.1% 1,698 0 187 1,511 2,350 282 8.5% 2.9% 33.8% 12.0% 15.2x 0.64x 5.4x 0.62x 4.9x

Finish Line Inc. FINL 18.45 63.5% 818 0 55 763 1,860 133 4.0% 8.5% 38.0% 7.2% 14.5x 0.41x 5.7x 0.40x 4.8x

Foot Locker, Inc. FL 64.28 83.2% 8,823 130 1,021 7,932 7,412 1,087 3.6% 6.2% 33.8% 14.7% 16.7x 1.07x 7.3x 1.02x 6.7x

Genesco Inc. GCO 65.96 89.7% 1,457 112 133 1,436 3,022 238 5.7% 5.1% 47.8% 7.9% 15.6x 0.48x 6.0x 0.48x 5.8x

Guess? Inc. GES 22.06 94.1% 1,848 7 402 1,452 2,243 219 (9.9%) (5.0%) 36.0% 9.7% 21.4x 0.65x 6.6x 0.67x 6.9x

The Gap, Inc. GPS 30.18 68.7% 11,981 1,731 1,370 12,342 15,797 2,051 (3.9%) 0.3% 36.2% 13.0% 13.5x 0.78x 6.0x 0.79x 6.0x

L Brands, Inc. LB 86.56 85.6% 25,053 5,766 1,321 29,498 12,154 2,638 6.1% 5.1% 42.8% 21.7% 20.5x 2.43x 11.2x 2.29x 10.7x

Lululemon Athletica Inc. LULU 64.73 92.5% 8,888 0 403 8,484 1,959 423 14.2% 16.0% 48.6% 21.6% 35.3x 4.33x 20.1x 3.81x 18.6x

Tailored Brands, Inc. TLRD 17.05 25.8% 825 1,656 30 2,451 3,496 363 7.5% 12.0% 42.9% 10.4% NM 0.70x 6.8x 0.73x 6.8x

New York & Company Inc. NWY 2.68 86.2% 173 14 45 142 946 26 2.1% (0.0%) 38.0% 2.7% NM 0.15x 5.5x 0.15x 3.9x

The Children's Place, Inc. PLCE 70.68 99.8% 1,411 0 228 1,184 1,726 153 (2.0%) (1.6%) 36.2% 8.9% 25.2x 0.69x 7.7x 0.68x 6.4x

Pacific Sunwear of California Inc. PSUN 0.15 5.0% 11 132 11 131 800 (1) (1.7%) 2.0% 43.3% NM NM 0.16x NM 0.16x NA

Ross Stores Inc. ROST 58.17 97.9% 23,559 396 763 23,192 11,940 1,899 8.1% 7.1% 28.2% 15.9% 23.2x 1.94x 12.2x 1.83x 11.3x

Shoe Carnival Inc. SCVL 24.59 82.0% 491 0 49 442 978 68 7.1% 5.6% 29.4% 6.9% 17.9x 0.45x 6.5x 0.43x 6.1x

Stein Mart Inc. SMRT 7.35 44.3% 337 190 12 515 1,360 71 3.2% 3.3% 28.3% 5.3% 14.4x 0.38x 7.2x 0.36x 6.4x

Stage Stores Inc. SSI 8.69 37.4% 221 163 16 367 1,604 105 (2.1%) (0.5%) 25.4% 6.5% NM 0.23x 3.5x 0.24x 3.9x

Urban Outfitters Inc. URBN 32.63 69.1% 3,828 150 326 3,652 3,445 496 3.7% 7.2% 34.9% 14.4% 18.3x 1.06x 7.4x 1.01x 7.0x

Zumiez, Inc. ZUMZ 19.70 48.5% 502 0 76 427 804 77 (0.9%) 6.3% 33.4% 9.5% 18.9x 0.53x 5.6x 0.51x 6.0x

Mean 70.3% $3,581 $573 $284 $3,869 $3,353 $425 2.6% 3.0% 39.3% 11.0% 18.2x 0.85x 7.7x 0.83x 7.2x

Median 74.5% $1,457 $92 $158 $1,436 $2,243 $238 3.6% 2.9% 38.0% 10.0% 17.6x 0.64x 6.5x 0.66x 6.1x

Department Chains

Bon-Ton Stores Inc. BONT $2.61 34.0% $55 $995 $7 $1,043 $2,789 $108 (1.2%) (2.2%) 36.3% 3.9% NM 0.37x 9.6x 0.38x 8.1x

Dillard's Inc. DDS 84.68 58.7% 3,040 825 203 3,663 6,755 707 (0.4%) 0.0% 35.6% 10.5% 12.3x 0.54x 5.2x 0.55x 5.4x

J. C. Penney Company, Inc. JCP 11.48 95.7% 3,514 4,805 900 7,419 12,625 611 3.0% (0.9%) 36.0% 4.8% NM 0.59x 12.1x 0.57x 7.3x

Nordstrom Inc. JWN 56.06 67.4% 9,694 2,805 595 11,904 14,437 1,723 6.9% 6.0% 35.4% 11.9% 17.8x 0.82x 6.9x 0.80x 7.2x

Kohl's Corp. KSS 49.46 62.1% 9,389 4,708 707 13,390 19,204 2,487 1.0% (0.1%) 36.1% 13.0% 14.3x 0.70x 5.4x 0.70x 5.5x

Macy's, Inc. M 43.87 59.6% 13,613 7,637 1,109 20,141 27,079 3,371 (3.7%) (0.7%) 39.1% 12.4% 13.6x 0.74x 6.0x 0.76x 6.1x

Stage Stores Inc. SSI 8.69 37.4% 221 163 16 367 1,604 105 (2.1%) (0.5%) 25.4% 6.5% NM 0.23x 3.5x 0.24x 3.9x

Hudson's Bay Company TSX: HBC 17.49 59.2% 3,185 4,399 292 7,292 9,308 596 17.2% 32.6% 41.0% 6.4% 28.8x 0.78x 12.2x 0.52x 8.4x

Mean 59.3% $5,339 $3,292 $479 $8,152 $11,725 $1,214 2.6% 4.3% 35.6% 8.7% 17.4x 0.60x 7.6x 0.56x 6.5x

Median 59.4% $3,349 $3,602 $444 $7,355 $10,967 $659 0.3% (0.3%) 36.1% 8.5% 14.3x 0.64x 6.4x 0.56x 6.7x


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PUBLIC COMPARABLES

CONSUMER AND RETAIL


12



Discount Stores & Mass Merchants

Big Lots Inc. BIG 44.89 88.3% 2,224 62 54 2,233 5,191 363 0.3% (0.1%) 39.8% 7.0% 16.0x 0.43x 6.2x 0.43x 5.8x

Costco Wholesale Corporation COST 152.67 89.9% 67,027 4,975 4,855 67,147 117,269 4,769 1.4% 4.4% 13.1% 4.1% 29.2x 0.57x 14.1x 0.54x 13.0x

CVS Health Corporation CVS 101.02 88.9% 111,223 27,464 2,547 136,140 153,290 11,856 10.0% 7.6% 17.3% 7.7% 21.9x 0.89x 11.5x 0.75x 10.2x

Dollar General Corporation DG 85.81 99.9% 24,965 2,971 158 27,778 20,369 2,293 7.7% 8.3% 31.0% 11.3% 21.7x 1.36x 12.1x 1.24x 11.0x

Dollar Tree, Inc. DLTR 80.96 96.1% 19,009 7,346 740 25,615 15,498 1,733 80.2% 28.0% 31.0% 11.2% NM 1.65x 14.8x 1.22x 10.9x

Macy's, Inc. FDO 39.41 58.2% 13,613 7,637 1,109 20,141 27,079 3,371 (3.7%) (0.7%) 39.1% 12.4% NA 0.74x 6.0x 0.76x 6.1x

Gordmans Stores, Inc. GMAN 2.71 30.4% 53 66 9 111 656 18 2.6% 3.1% 41.6% 2.7% NM 0.17x 6.2x 0.16x 6.8x

PriceSmart Inc. PSMT 81.66 78.8% 2,480 98 140 2,438 2,858 185 11.3% 10.8% 15.9% 6.5% 26.8x 0.85x 13.2x 0.82x 12.6x

Rite Aid Corporation RAD 7.97 84.2% 8,340 7,367 226 15,482 29,314 1,327 11.6% 4.0% 26.4% 4.5% 4.2x 0.53x 11.7x 0.46x 10.2x

Target Corp. TGT 81.77 95.3% 49,061 12,768 4,046 57,783 73,785 7,350 1.6% 0.2% 29.5% 10.0% 15.6x 0.78x 7.9x 0.81x 7.6x

The TJX Companies, Inc. TJX 75.88 98.6% 50,804 1,624 2,448 49,980 30,945 4,321 6.4% 6.1% 28.8% 14.0% 22.8x 1.62x 11.6x 1.53x 11.4x

Tuesday Morning Corporation TUES 7.74 43.4% 344 0 35 308 925 22 2.9% 3.8% 35.8% 2.4% NM 0.33x NM 0.32x 11.2x

Walgreens Boots Alliance, Inc. WBA 81.52 83.8% 87,939 14,277 2,603 99,613 112,923 7,612 45.5% 16.8% 25.9% 6.7% 19.9x 0.88x 13.1x 0.82x 10.9x

Wal-Mart Stores Inc. WMT 67.36 80.3% 215,680 50,034 8,705 257,009 482,130 33,559 (0.7%) 0.9% 25.1% 7.0% 14.7x 0.53x 7.7x 0.54x 8.1x

Mean 79.7% $46,626 $9,764 $1,977 $54,413 $76,588 $5,627 12.6% 6.7% 28.6% 7.7% 19.3x 0.81x 10.4x 0.74x 9.7x

Median 86.3% $21,987 $6,161 $925 $26,697 $28,197 $2,832 4.7% 4.2% 29.2% 7.0% 20.8x 0.76x 11.6x 0.76x 10.6x

Furniture & Furnishings Retailers

Aaron's, Inc. AAN $23.78 58.3% $1,727 $610 $15 $2,322 $3,180 $450 18.0% 12.8% 50.1% 14.2% 12.8x 0.73x 5.2x 0.69x 6.5x

Bed Bath & Beyond Inc. BBBY 50.12 63.8% 8,199 1,500 491 9,208 12,023 1,702 2.3% 5.5% 38.5% 14.2% 9.9x 0.77x 5.4x 0.75x 5.7x

Conns Inc. CONN 16.46 37.5% 531 1,160 109 1,581 1,583 101 11.5% 23.5% 27.7% 6.4% 13.4x 1.00x 15.6x 0.89x 8.3x

Ethan Allen Interiors Inc. ETH 30.10 94.4% 837 58 57 838 765 95 0.7% 1.1% 55.1% 12.4% 19.4x 1.10x 8.9x 1.04x 7.7x

hhgregg, Inc. HGG 2.39 36.3% 66 0 7 59 2,007 (7) (8.0%) (7.0%) 28.3% NM NM 0.03x NM 0.03x 7.6x

Haverty Furniture Companies Inc. HVT 21.16 83.5% 468 53 83 437 805 72 4.7% 6.3% 53.5% 8.9% 17.3x 0.54x 6.1x 0.52x 5.7x

Kirkland's Inc. KIRK 17.49 59.2% 298 0 44 253 562 48 10.7% 7.8% 38.9% 8.6% 18.6x 0.45x 5.2x 0.41x 4.8x

La-Z-Boy Incorporated LZB 25.89 88.2% 1,292 1 110 1,182 1,483 143 5.7% 5.2% 37.2% 9.6% 17.4x 0.80x 8.3x 0.75x 7.2x

Pier 1 Imports, Inc. PIR 6.57 45.0% 549 240 49 741 1,878 154 2.2% 4.8% 37.7% 8.2% 10.5x 0.39x 4.8x 0.40x 6.0x

Rent-A-Center, Inc. RCII 13.45 40.0% 714 968 60 1,622 3,278 296 3.8% 2.2% 65.7% 9.0% NM 0.49x 5.5x 0.50x 5.5x

Restoration Hardware Holdings, Inc. RH 40.25 37.8% 1,629 746 388 1,987 0 228 (100.0%) (100.0%) 0.0% #DIV/0! 18.5x #DIV/0! 8.7x 0.84x 7.1x

Select Comfort Corporation SCSS 19.42 54.3% 944 0 28 917 1,214 126 4.9% 9.1% 61.0% 10.4% 20.0x 0.76x 7.3x 0.68x 5.9x

The Sherwin-Williams Company SHW 283.69 96.4% 26,157 1,963 206 27,914 11,339 1,813 1.9% 5.9% 49.0% 16.0% 25.4x 2.46x 15.4x 2.40x 14.2x

Williams-Sonoma Inc. WSM 57.72 64.6% 5,186 200 72 5,314 4,932 663 6.7% 8.1% 37.6% 13.4% 17.0x 1.08x 8.0x 1.02x 7.4x

Mean 61.4% $3,471 $536 $123 $3,884 $3,218 $420 (2.5%) (1.0%) 41.5% #DIV/0! 16.7x #DIV/0! 8.0x 0.78x 7.1x

Median 58.8% $891 $220 $66 $1,382 $1,731 $149 4.3% 5.7% 38.7% #DIV/0! 17.4x #DIV/0! 7.3x 0.72x 6.8x

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

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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


14

Private Equity

Announced Target Seller Buyer Involvement

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.

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

PAGE |

M&A TRANSACTIONS

15

RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED)

CONSUMER AND RETAIL


Private Equity


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

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

PAGE |

HW&CO. CONSUMER TEAM

M&A TRANSACTIONS

CONSUMER AND RETAIL


RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED)

16

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

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

Private Equity


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

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














Energy, Power& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

PAGE |

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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


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consumer & retail industry update - march 2016

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