industry update december 2015

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 │ DECEMBER 2015

PAGE |

www.harriswilliams.com

2015 was a banner year for the HW&Co. consumer team as we executed and closedfifteen consumer transactions across a wide range of industry sub-sectors. Dealactivity moved at a consistent pace throughout the year as we did not witness theseasonal softness often experienced in early Q1 or during the late summer. Thismonth we review a few key trends from the past year as well as our observationsfrom several of our core power-alleys within the consumer products landscape.

Key Themes for 2015

As we reflect on our deals from this year, we observed several key themes thatemerged as significant value drivers for consumer assets.

Strategic Participation: In order to compete with a robust financing market andsignificant dry powder among financial sponsors, strategic buyers have significantlyelevated their sophistication when it comes to participating in structured saleprocesses. From accelerating their third party due diligence to embracing conceptslike rep and warranty insurance, strategic buyers are looking to enhance the speedand certainty of their proposals to eliminate the perceived advantages of pursuing atransaction with a financial buyer. Whether or not they ultimately prevailed in atransaction, strategics buyers exhibited a consistent willingness to “play” in a processin 2015 and we expect this trend to continue.

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

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

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

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

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

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

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

CONSUMER AND RETAIL


SUSTAINED MOMENTUM THROUGHOUT 2015

Authenticity: Consumers are looking for brands orproducts that represent an extension of their lifestyles andenable them to connect with like-minded enthusiasts.During our work with Funko, we learned that pop cultureaffinity has become a mainstream hobby or lifestyle with ahighly loyal base of consumers. By delivering a diverseportfolio of stylized figures and collectibles inspired bytoday’s most popular entertainment properties, Funko hasgained a reputation for authenticity among consumers aswell as the studios creating the underlying content.Funko’s explosive growth and momentum generatedstrong interest from a broad range of buyers whorecognized the value of the Company’s passionateconsumer base as well as the tremendous global marketopportunity for pop culture products.

Social Media: Buyers are looking for consumer brands who haveembraced social media to form lasting connections withconsumers. While the social media presence of consumerbrands has been a relevant process metric for many years, itsimportance continues to escalate as our society evolves. Whilebrands of previous generations were limited to a transactionalrelationship with consumers, today’s successful brands leveragesocial media to connect with consumers and form dynamic,two-way relationships. A company’s ability to illustrate andarticulate its social media strategy has become an importantelement in a sale process, and it is no longer sufficient to simplytout one’s number of “followers”. Companies today need todemonstrate how they are connecting with consumers, whatdata they are able to get from their community, and how theyare using this data to drive their product and growth strategy.

http://www.harriswilliams.com/

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

mailto:[email protected]






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Looking Ahead to 2016: While no one can predict how long the white hot market conditions of 2014 and 2015 will persist,we remain confident that consumer M&A activity will continue to remain active for the first part of 2016. Throughout thefourth quarter, we have seen consistent pitch activity as well as an influx of new leads that have resulted in a robustpipeline and we have a strong slate of deals set to launch early in the new year. Our new engagements feature abalanced mix of both large and mid-sized businesses across a variety of consumer sectors.

Continued Strength in Key Categories: The consumer products team continued its track record as a “go-to” advisor in theoutdoor enthusiast and infant & juvenile sectors with several larger transactions. In Q1 we sold Fishing Holdings (worldclass manufacturer of Ranger, Triton and Stratos branded fishing boats) to Bass Pro Shops. More recently, we sold Funko(leading global provider of pop culture-inspired toys and collectibles) to ACON Investments. Both transactions exemplifyour group’s track record of successful outcomes for trophy assets within their respective niches and our commitment tothese two important consumer sectors. Our proven expertise in these segments has also enabled us to become animportant thought partner for select buy-side assignments, including Tink’s and Obsession Bows in the outdoor enthusiastsector.

HARRIS WILLIAMS & CO. CONSUMER UPDATE

CONSUMER AND RETAIL


SECTOR SPOTLIGHT: INFANT & JUVENILE

2

SECTOR SPOTLIGHT: INFANT & JUVENILESUSTAINED MOMENTUM THROUGHOUT 2015 (CONTINUED)

Inc. 5000: While the heritage and focus of HW&Co. focuses on sell-side transactionexcellence, we relish the opportunity to be a thought partner for business owners long beforethey contemplate a transaction. HW&Co. had an exclusive, year-long partnership with Inc.during which we surveyed nearly 700 top executives from Inc. 5000 businesses regarding theirperspectives on M&A. We recently published the key findings from our study(http://www.harriswilliams.com/news-insights) and also attended this year’s Inc. 5000conference from October 21-23 in Orlando, FL. At the conference, we hosted a paneldiscussion for entrepreneurs during which the head of HW&Co.’s Consumer Products &Services team, John Neuner, discussed best practices for preparing a business for asuccessful sale. Building relationships within the entrepreneur community is particularly vital inthe consumer industry as innovative consumer businesses can experience a “pop” in growththat commands the attention of potential buyers early in the life of a business – often beforeowners have begun to contemplate the opportunities and pitfalls of a potential sale.

has been acquired by

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a portfolio company of



















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has been acquired byhas been acquired by

a subsidiary ofa portfolio company of

has acquired

http://www.harriswilliams.com/news-insights

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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

Department Chains

Specialty & Other Retail

Furniture & Furnishings Retailers

Apparel & Footwear Retail

Apparel & Footwear

Consumer Durables

Outdoor & Lifestyle

Pet Care

Consumer & Retail Index

Consumer Serv ices and Retail

Franchisors

S&P 500

Housewares

Discount Stores & Mass Merchants


Internet Retail

Home & Office Furniture &

Furnishings

Household Products

Infant & Juvenile

(45.0%) (35.0%) (25.0%) (15.0%) (5.0%) 5.0% 15.0% 25.0%

Change in Stock Price

3 mos. 12 mos. Revenue EBITDA Revenue EBITDA

Consumer Products & Services

Apparel & Footwear 24 $2,424 (15.4%) (11.8%) 1.3x 9.5x 1.2x 9.0x

Consumer Durables 6 14,599 (1.6%) (8.1%) 0.9x 10.3x 0.8x 7.5x

Consumer Serv ices and Retail Franchisors 8 2,389 (8.5%) (3.9%) 2.3x 10.3x 1.5x 7.8x

Home & Office Furniture & Furnishings 10 1,553 (3.0%) 4.3% 0.8x 8.8x 0.9x 7.4x

Household Products 5 18,170 12.0% 10.6% 3.5x 15.0x 3.5x 14.2x

Housewares 10 3,401 (0.0%) 0.5% 1.4x 13.4x 1.5x 10.0x

Infant & Juvenile 12 2,833 (2.4%) 13.2% 0.7x 11.1x 0.6x 7.6x

Outdoor & Lifestyle 20 956 (4.1%) (4.7%) 1.3x 10.0x 1.2x 8.9x

Personal Care Products 13 3,383 2.4% (6.8%) 1.5x 9.9x 1.4x 10.9x

Pet Care 8 2,423 0.2% 3.4% 1.5x 14.2x 1.7x 11.6x

Retail

Apparel & Footwear Retail 31 1,342 (11.2%) (15.5%) 0.6x 5.8x 0.6x 5.4x

Department Chains 8 6,990 (25.1%) (35.1%) 0.6x 6.0x 0.5x 6.1x

Discount Stores & Mass Merchants 14 24,531 (5.9%) 2.9% 0.7x 11.0x 0.7x 10.2x

Furniture & Furnishings Retailers 14 1,398 (17.2%) (17.9%) 0.8x 6.3x 0.7x 6.1x

Internet Retail 12 4,316 9.9% 3.4% 2.1x 19.1x 2.6x 15.3x

Specialty & Other Retail 15 3,652 (9.8%) (28.3%) 0.7x 6.2x 0.7x 5.5x

Consumer Products & Services 116 $2,628 (2.0%) (1.7%) 1.4x 10.3x 1.3x 9.0x

Retail 94 $3,984 (10.5%) (16.7%) 0.7x 6.3x 0.7x 6.1x

Consumer & Retail Index 210 $3,108 (3.6%) (4.3%) 1.1x 10.2x 1.0x 8.4x

SectorNumber of

Companies

Median Enterprise

Value ($ M)

Median TEV/

Forward Mulitples

Median TEV/

LTM Multiples

PAGE |

CONSUMER AND RETAIL INDUSTRY STOCK PERFORMANCE

PUBLIC MARKETS OVERVIEW

4

RECENT EQUITY OFFERINGS

CONSUMER AND RETAIL


50

75

100

125

150

175

200

225

250

Dec-11 Apr-12 Aug-12 Dec-12 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15

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

Close Date Filing Date Issuer Ticker

Transaction

Type

Gross Proceeds

($ M) Primary Industry

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 Serv ices

11/05/15 11/05/15 Serv iceMaster Global Holdings, Inc. SERV Follow-On 982.1 Specialized Consumer Serv ices

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

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 Serv ices

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

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

07/31/15 07/31/15 Boot Barn Holdings Inc BOOT Follow-On 170.4 Apparel Retail

PAGE |

13.1x

12.0x12.1x 11.8x 11.9x 11.8x 11.8x

12.2x 12.4x12.0x

11.6x

12.4x11.8x

14.7x

13.6x13.1x

12.1x

10.8x

10.0x10.2x 10.4x

10.0x9.5x 10.0x

10.0x 10.2x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

Me

dia

n T

rad

ing

Mu

ltip

les

Median LTM Trading Multiples

Consumer Products & Services Retail

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

98

127

77

57

77

43

66

35 39

68 7183

66

23

16

13

14

25

34

21

18 13

512

26

12

0

20

40

60

80

100

120

140

160

3Q124Q121Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q15

Nu

mb

er

of

Tra

nsa

cti

on

s

Quarterly Consumer M&A Activity

Strategic Buyer PEG Acquirer

$29 $30

$40 $38

$27 $28

$91

0

50

100

150

200

250

300

350

400

450

$0

$15

$30

$45

$60

$75

$90

$105

2009 2010 2011 2012 2013 2014 2015

YTD

Nu

mb

er o

f Tran

sac

tion

s

Ave

rag

e T

ran

sac

tio

n V

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($ in

bill

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s)

Announced Consumer Transactions

Aggregate Transaction Value # of Deals

8.9x 8.4x

10.7x 10.0x 9.8x

10.8x

12.4x

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

2009 2010 2011 2012 2013 2014 2015

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

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

12/15/2015 PRO-TEC Brand Brav o Sports Corporation

12/14/2015 TractorSearch.com Machinery Pete LLC

12/13/2015 Jarden Corp. Newell Rubbermaid Inc.

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

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

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

12/7/2015 Next Univ ersity, Inc. Open English LLC

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

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

Last 10 Deals Announced

Aggregate Number Transaction Multiples

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

$91.4 388 0.87x 12.4x

LTM Deal Statistics

97

111

72

3137

53

73

86

5763

59

71

48

28

5953

76

57

68

83

0

20

40

60

80

100

120

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

YTD

Nu

mb

er

of

Tra

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cti

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s

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

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Qu

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($ i

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Quarterly Retail Loan Volume

Institutional Pro Rata

6

CONSUMER AND RETAIL


DEBT MARKET OVERVIEW

COMMENTARY ON RECENT CONSUMER AND RETAIL DEBT TRANSACTIONS1

• Varsity Brands secured a $75 M add-on to its first-lien term loan. Proceeds, along with those of a $50 M, second-lienadd-on that has been placed with existing holders, will fund tuck-in acquisitions. The new first-lien paper is offered at99, and Varsity will reset the 101 soft call premium for six months.

• AMC Entertainment is seeking to refinance with a $881 M, seven-year term loan, which is likely to price at L+325, witha 0.75% floor, and offered at 99-99.5. The covenant-lite term loan includes six months of 101 soft call protection andwould yield roughly 4.15-4.24% to maturity. The loan is also available for general corporate purposes. Theaccompanying RC is governed by a 3.25x net secured leverage test.

• Pet accessories maker, Worldwise, a portfolio company of Mistral Equity Partners, has secured a $31.4 M unitrancheloan. Proceeds from the loan will back the recapitalization of the company and fund product development andfuture add-on acquisitions. Worldwise recently acquired Quaker Pet Group.

• ClubCorp, rated B+/B1, has secured a $625 M term loan B, along with $400 M of new senior notes, to refinance its~$900 M TLB and $47 M of RC borrowings and to support general corporate purposes, including the execution of thecompany’s growth strategy. The seven-year covenant-lite term loan is likely to price at L+325-350, with a 1% floor,and offered at 99.5, for a yield to maturity of roughly 4.41-4.67% The loan is rated BB-/Ba3 with a 2L recovery rating.The transaction extends the issuer’s maturity profile (the existing loan matures in 2020) and bolsters liquidity via anupsized, unfunded revolver, without materially altering loan pricing from the current L+325, with a 1% floor.

KEY RETAIL CREDIT STATISTICS

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

3Q091Q103Q101Q113Q111Q123Q121Q133Q131Q143Q141Q153Q15

Loa

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me

by

Qu

art

er

($ i

n b

illi

on

s)

Quarterly Retail Loan Volume

Institutional Pro Rata

NA

L + 0

L + 100

L + 200

L + 300

L + 400

L + 500

L + 600

L + 700

2007 2008 2009 2010 2011 2012 2013 2014 1Q -

3Q15

3Q15

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

3Q05 3Q06 3Q07 3Q08 3Q09 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15

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

ult

iple

Credit Statistics

2010 2011 2012 2013 2014 LTM 9/30/15

1) Source: S&P Capital IQ LCD

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


7

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

($ in m illions, except per share data) Ticker 12/14/15 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 31.09 70.9% 8,628 891 1,276 8,242 4,183 921 (10.9%) (5.0%) 69.1% 22.0% 22.7x 1.97x 8.9x 1.82x 8.3x

Columbia Sportswear Company COLM 44.01 58.9% 3,095 36 174 2,957 2,304 310 17.7% 10.8% 46.2% 13.5% 18.7x 1.28x 9.5x 1.22x 9.0x

Carter's, Inc. CRI $90.31 82.5% $4,695 $585 $288 $4,992 $3,017 $462 8.0% 9.5% 41.5% 15.3% 20.5x 1.65x 10.8x 1.59x 9.7x

Crocs, Inc. CROX 10.67 66.5% 786 8 168 625 1,088 0 (10.8%) (0.4%) 47.4% 0.0% NM 0.57x 2178.4x 0.55x 10.5x

Deckers Outdoor Corp. DECK 50.50 50.6% 1,633 350 100 1,883 1,826 251 6.0% 9.2% 47.5% 13.8% 11.5x 1.03x 7.5x 0.94x 6.3x

Fossil Group, Inc. FOSL 37.19 33.0% 1,790 811 302 2,298 3,301 548 (5.9%) 6.4% 55.5% 16.6% 6.1x 0.70x 4.2x 0.75x 7.2x

G-III Apparel Group, Ltd. GIII 47.67 64.5% 2,171 172 54 2,288 2,331 232 12.3% 20.9% 36.2% 10.0% 17.2x 0.98x 9.9x 0.89x 8.9x

Hanesbrands Inc. HBI 29.38 84.4% 11,512 2,779 285 14,006 5,845 960 14.9% 9.3% 37.8% 16.4% 29.9x 2.40x 14.6x 2.33x 13.3x

Iconix Brand Group, Inc. ICON 6.10 15.5% 295 1,472 136 1,630 387 177 4.5% 2.0% 100.0% 45.7% 3.1x 4.22x 9.2x 4.29x 10.0x

Kate Spade & Company KATE 17.71 49.5% 2,261 402 220 2,443 1,212 126 19.4% (6.1%) 60.6% 10.4% 26.1x 2.02x NM 1.81x 10.9x

NIKE, Inc. NKE 127.86 94.5% 108,961 1,208 5,484 104,685 31,033 5,011 7.7% 9.1% 46.2% 16.1% 32.4x 3.37x 20.9x 3.12x 19.0x

Oxford Industries Inc. OXM 63.77 69.9% 1,057 69 7 1,120 1,036 123 12.4% 8.2% 56.2% 11.9% 21.7x 1.08x 9.1x 1.10x 8.2x

Perry Ellis International Inc. PERY 19.29 68.4% 304 132 36 400 903 44 1.6% (1.4%) 34.8% 4.9% NM 0.44x 9.1x 0.43x 6.4x

PVH Corp. PVH 76.21 59.0% 6,245 3,367 370 9,242 7,977 947 (3.0%) 10.3% 52.2% 11.9% 13.0x 1.16x 9.8x 1.15x 8.8x

Ralph Lauren Corporation RL 113.04 60.3% 9,574 1,021 1,126 9,469 7,506 1,227 (1.0%) 2.9% 57.1% 16.3% 17.6x 1.26x 7.7x 1.22x 7.9x

Steven Madden, Ltd. SHOO 30.95 70.4% 1,937 0 61 1,875 1,404 186 5.1% 5.6% 35.2% 13.3% 17.6x 1.34x 10.1x 1.26x 9.2x

Skechers U.S.A., Inc. SKX 29.30 53.7% 4,578 102 511 4,170 3,004 395 32.4% 27.3% 45.3% 13.2% 20.2x 1.39x 10.6x 1.18x 8.1x

Gildan Activewear Inc. TSX: GIL 39.90 87.3% 9,729 462 47 10,144 2,415 384 2.4% 7.4% 24.2% 15.9% 31.1x 4.20x 26.4x 3.77x 16.8x

Tumi Holdings, Inc. TUMI 16.97 66.6% 1,152 0 76 1,076 544 118 6.5% 12.8% 59.0% 21.7% 18.9x 1.98x 9.1x 1.87x 9.7x

Under Armour, Inc. UA 83.16 78.5% 17,947 908 159 18,696 3,688 475 28.4% 28.6% 48.5% 12.9% NM 5.07x 39.3x 4.03x 30.8x

V.F. Corporation VFC 62.43 80.2% 26,614 2,710 567 28,758 12,543 2,114 4.6% 5.3% 48.5% 16.9% 26.0x 2.29x 13.6x 2.18x 12.5x

Vera Bradley, Inc. VRA 16.31 74.2% 619 0 62 558 501 75 (2.3%) (0.8%) 55.5% 15.1% 22.4x 1.11x 7.4x 1.10x 7.5x

Weyco Group Inc. WEYS 27.15 87.6% 293 42 20 315 328 36 8.1% 4.3% 38.0% 11.0% 15.2x 0.96x 8.7x NA NA

Wolverine World Wide Inc. WWW 17.25 49.0% 1,775 826 196 2,404 2,749 297 2.1% 25.4% 39.3% 10.8% 14.6x 0.87x 8.1x 0.89x 8.2x

Mean 65.7% $9,486 $765 $489 $9,762 $4,214 $643 6.7% 8.4% 49.2% 14.8% 19.4x 1.81x 106.2x 1.72x 10.7x

Median 67.5% $2,216 $432 $171 $2,424 $2,373 $304 5.6% 7.8% 47.5% 13.6% 18.9x 1.31x 9.5x 1.22x 9.0x

Consumer Durables

Arcelik AS ARCLK 14.17 82.4% 9,575 5,811 1,564 13,822 13,501 1,316 10.6% 9.4% 31.5% 9.7% 11.3x 1.02x 10.5x 0.92x 8.6x

Electrolux AB ELUX B 194.00 68.6% 55,804 13,019 10,656 58,167 123,117 8,448 12.3% 4.1% 19.6% 6.9% 19.1x 0.47x 6.9x 0.46x 6.2x

iRobot Corporation IRBT 34.10 93.7% 991 0 212 779 570 64 8.8% 6.9% 47.4% 11.2% 30.2x 1.37x 12.2x 1.14x 7.6x

Middleby Corp. MIDD 108.06 86.2% 6,194 756 55 6,895 1,727 372 9.4% 20.4% 39.2% 21.5% 32.0x 3.99x 18.6x 3.05x 16.2x

Haier Electronics Group Co., Ltd. SEHK: 1169 14.26 55.1% 39,801 1,238 9,891 31,147 65,529 3,064 (1.0%) 7.9% 15.2% 4.7% 12.2x 0.48x 10.2x 0.39x 7.4x

Whirlpool Corp. WHR 144.03 66.3% 11,262 4,812 698 15,376 21,334 2,049 12.5% 5.3% 17.4% 9.6% 16.8x 0.72x 7.5x 0.72x 6.3x

Mean 75.4% $20,605 $4,273 $3,846 $21,031 $37,630 $2,552 8.7% 9.0% 28.4% 10.6% 20.3x 1.34x 11.0x 1.11x 8.7x

Median 75.5% $10,419 $3,025 $1,131 $14,599 $17,417 $1,682 10.0% 7.4% 25.6% 9.7% 18.0x 0.87x 10.3x 0.82x 7.5x

Last Twelve Months (LTM) EV / LTM EV / 2015ERevenue Growth LTM Margins

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


8



Consumer Services and Retail Franchisors

GNC Holdings Inc. GNC 30.25 58.5% 2,500 1,408 164 3,744 2,628 477 0.4% 3.4% 37.2% 18.2% 11.5x 1.42x 7.8x 1.40x 7.8x

H&R Block, Inc. HRB 32.82 87.5% 7,744 1,503 363 8,884 3,077 902 1.5% 2.0% 50.0% 29.3% 19.3x 2.89x 9.8x 2.85x 9.3x

Planet Fitness, Inc. PLNT 15.25 73.7% 558 504 28 1,033 321 96 52.0% NA 52.4% 30.1% 18.7x 3.22x 10.7x 3.02x 7.7x

Regis Corp. RGS 14.77 81.5% 707 120 177 651 1,823 87 (3.5%) (4.6%) 33.9% 4.8% NM 0.36x 7.5x 0.36x 6.7x

Realogy Holdings Corp. RLGY 37.53 75.4% 5,506 4,291 567 9,230 5,659 754 6.9% 8.8% 48.4% 13.3% 28.4x 1.63x 12.2x 1.52x 10.6x

Serv iceMaster Global Holdings, Inc. SERV 37.55 95.4% 5,085 2,762 283 7,564 2,570 591 6.5% NA 47.4% 23.0% 30.4x 2.94x 12.8x 2.82x 11.5x

Steiner Leisure Ltd. STNR 0.00 #DIV/0! 0 99 54 44 879 69 1.4% 3.8% 21.6% 7.9% NA 0.05x 0.6x 0.05x 0.5x

Winmark Corp. WINA 91.90 84.9% 379 71 1 449 69 37 16.9% 9.7% 88.7% 54.1% 20.5x 6.53x 12.1x NA NA

Mean #DIV/0! $2,810 $1,345 $205 $3,950 $2,128 $377 10.3% 3.9% 47.5% 22.6% 21.5x 2.38x 9.2x 1.72x 7.7x

Median #DIV/0! $1,604 $956 $170 $2,389 $2,196 $287 4.0% 3.6% 47.9% 20.6% 19.9x 2.26x 10.3x 1.52x 7.8x

Home & Office Furniture & Furnishings

The Dixie Group, Inc. DXYN 5.60 48.7% 94 136 0 230 419 16 5.6% 17.2% 24.7% 3.9% NM 0.55x 14.2x 0.53x NA

HNI Corp. HNI 37.75 65.4% 1,668 257 31 1,894 2,354 216 11.2% 6.0% 36.2% 9.2% 21.3x 0.80x 8.8x 0.81x 7.0x

Hooker Furniture Corp. HOFT 25.10 88.4% 271 0 49 221 251 27 6.0% 5.7% 27.1% 10.6% 16.7x 0.88x 8.3x 0.85x NA

Kimball International, Inc. KBAL 10.37 79.8% 388 0 22 366 613 44 12.2% (19.1%) 31.4% 7.2% 26.3x 0.60x 8.3x NA NA

Knoll, Inc. KNL 19.75 75.8% 964 258 10 1,212 1,085 128 9.1% 8.0% 36.9% 11.8% 14.7x 1.12x 9.5x 1.06x 7.7x

Leggett & Platt, Incorporated LEG 43.08 84.0% 5,863 993 251 6,604 3,926 546 6.4% 1.9% 22.8% 13.9% 21.3x 1.68x 12.1x 1.60x 10.8x

La-Z-Boy Incorporated LZB 24.06 82.0% 1,208 5 85 1,128 1,457 133 4.7% 5.3% 36.6% 9.2% 17.3x 0.77x 8.5x 0.72x 7.1x

Herman Miller Inc. MLHR $29.45 90.0% $1,763 $268 $58 $1,973 $2,198 $245 14.3% 8.6% 37.6% 11.2% 16.7x 0.90x NM 0.86x 7.4x

Steelcase Inc. SCS 18.47 90.3% 2,256 281 207 2,330 3,074 270 0.0% 2.8% 31.7% 8.8% 25.7x 0.76x 8.6x 0.73x 6.9x

Tempur Sealy International Inc. TPX 72.74 88.1% 4,527 1,486 72 5,942 3,129 369 7.1% 29.9% 39.3% 11.8% 34.5x 1.90x 16.1x 1.79x 11.8x

Mean 79.3% $1,900 $368 $79 $2,190 $1,851 $199 7.7% 6.6% 32.4% 9.7% 21.6x 1.00x 10.5x 0.99x 8.4x

Median 83.0% $1,438 $257 $54 $1,553 $1,828 $175 6.8% 5.8% 33.9% 9.9% 21.3x 0.84x 8.8x 0.85x 7.4x

Household Products

Church & Dwight Co. Inc. CHD 83.99 92.6% 11,013 981 211 11,783 3,387 784 4.1% 6.0% 44.5% 23.1% 27.7x 3.48x 15.0x 3.41x 14.6x

Colgate-Palmolive Co. CL $65.85 92.0% $59,062 $6,790 $1,591 $64,261 $16,356 $4,474 (6.1%) (1.2%) 58.7% 27.4% 24.4x 3.93x 14.4x 4.01x 14.2x

The Clorox Company CLX 126.47 97.1% 16,326 2,227 383 18,170 5,693 1,195 3.1% 1.2% 44.1% 21.0% 26.4x 3.19x 15.2x 3.15x 14.5x

Prestige Brands Holdings, Inc. PBH 51.19 94.4% 2,700 1,472 22 4,150 786 274 27.8% 12.7% 58.1% 34.9% 26.2x 5.28x 15.1x 5.05x 14.1x

The Procter & Gamble Company PG 78.29 83.4% 212,994 30,487 12,606 230,875 74,035 18,212 (6.4%) (3.7%) 50.6% 24.6% 25.4x 3.12x 12.7x 3.46x 13.0x

Mean 91.9% $60,419 $8,391 $2,963 $65,848 $20,051 $4,988 4.5% 3.0% 51.2% 26.2% 26.0x 3.80x 14.5x 3.82x 14.1x

Median 92.6% $16,326 $2,227 $383 $18,170 $5,693 $1,195 3.1% 1.2% 50.6% 24.6% 26.2x 3.48x 15.0x 3.46x 14.2x

Housewares

Fiskars Oyj Abp FIS1V 17.63 83.7% 1,444 348 478 1,314 976 83 25.8% 9.4% 38.1% 8.5% 1.9x 1.35x 15.9x 1.04x 9.7x

Helen of Troy Limited HELE 99.29 93.2% 2,790 479 19 3,250 1,528 215 15.3% 7.8% 41.7% 14.1% 20.4x 2.13x 15.1x 2.09x 13.8x

Jarden Corp. JAH 54.09 94.7% 11,919 5,858 1,096 16,682 8,432 895 4.5% 8.4% 31.9% 10.6% 46.9x 1.98x 18.6x 1.70x 11.3x

Libbey Inc. LBY 22.71 54.0% 496 447 30 913 837 113 (1.0%) 0.5% 23.6% 13.5% 9.5x 1.09x 8.1x 1.09x 7.5x

Lifetime Brands, Inc. LCUT 12.93 71.2% 181 156 6 332 592 35 5.5% 8.0% 36.4% 5.8% 17.9x 0.56x 9.6x 0.54x NA

Nacco Industries Inc. NC 40.80 64.8% 279 174 12 441 927 3 1.7% 3.8% 19.6% 0.4% NM 0.48x 131.5x NA NA

Newell Rubbermaid Inc. NWL 42.15 82.8% 11,258 2,741 266 13,733 5,881 991 3.8% 1.5% 38.8% 16.9% 29.6x 2.34x 13.9x 2.27x 12.7x

SEB SA SK 91.53 93.9% 4,497 908 458 4,947 4,540 497 9.3% 4.0% 11.5% 10.9% 22.6x 1.09x 10.0x 1.02x 9.0x

Spectrum Brands Holdings, Inc. SPB 96.58 90.6% 5,707 3,973 248 9,432 4,690 732 5.9% 13.0% 35.7% 15.6% 36.3x 2.01x 12.9x 1.86x 10.3x

Tupperware Brands Corporation TUP 54.62 74.9% 2,750 895 93 3,552 2,372 406 (10.3%) (2.4%) 67.1% 17.1% 13.1x 1.50x 8.8x 1.54x 8.6x

Mean 80.4% $4,132 $1,598 $271 $5,460 $3,077 $397 6.1% 5.4% 34.4% 11.3% 22.0x 1.45x 24.4x 1.46x 10.4x

Median 83.2% $2,770 $687 $171 $3,401 $1,950 $310 5.0% 5.9% 36.0% 12.2% 20.4x 1.42x 13.4x 1.54x 10.0x

Last Twelve Months (LTM) LTM Margins EV / LTM EV / 2015ERevenue Growth

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Infant & Juvenile

Carter's, Inc. CRI 90.31 82.5% 4,695 585 288 4,992 3,017 462 8.0% 9.5% 41.5% 15.3% 20.5x 1.65x 10.8x 1.59x 9.7x

Crown Crafts, Inc. CRWS 8.30 92.5% 83 0 6 77 88 12 9.4% 2.9% 27.0% 13.1% 12.5x 0.87x 6.6x 0.86x 6.3x

Dorel Industries Inc. DII.B 28.70 68.1% 926 602 38 1,491 2,715 134 4.0% 3.8% 21.4% 4.9% NM 0.55x 11.1x 0.53x 7.7x

Hasbro Inc. HAS 69.19 82.0% 8,623 1,674 574 9,722 4,281 822 0.5% 1.2% 53.3% 19.2% 19.7x 2.27x 11.8x 2.15x 10.6x

JAKKS Pacific, Inc. JAKK 7.67 74.6% 142 240 81 301 836 65 20.6% 7.4% 30.9% 7.8% 7.8x 0.36x 4.6x 0.40x 5.3x

Mattel, Inc. MAT 27.07 86.3% 9,186 2,261 290 11,158 5,697 834 (7.3%) (3.4%) 49.0% 14.6% 30.6x 1.96x 13.4x 2.02x 12.9x

Mothercare plc MTC 2.28 76.3% 388 0 27 361 691 31 (4.2%) (4.3%) 15.8% 4.5% NM 0.52x 11.7x 0.51x 6.8x

Newell Rubbermaid Inc. NWL 42.15 82.8% 11,258 2,741 266 13,733 5,881 991 3.8% 1.5% 38.8% 16.9% 29.6x 2.34x 13.9x 2.27x 12.7x

The Children's Place, Inc. PLCE 54.85 78.5% 1,095 34 219 911 1,706 148 (2.5%) (1.0%) 35.9% 8.7% 20.1x 0.53x 6.1x 0.53x 5.1x

Goodbaby International Holdings Limited SEHK: 1086 2.65 66.6% 2,938 2,033 796 4,176 7,159 284 50.6% 18.7% 26.0% 4.0% NM 0.58x 14.7x 0.55x 7.5x

Summer Infant, Inc. SUMR 1.81 49.7% 33 56 1 88 206 (1) 3.4% (5.5%) 30.8% NM NM 0.43x NM 0.41x 5.8x

TOMY Company, Ltd. TSE: 7867 781.00 91.8% 66,420 77,580 33,022 110,978 153,126 11,013 2.6% (5.5%) 35.6% 7.2% NM 0.72x 10.1x 0.65x 8.8x

Mean 77.6% $8,816 $7,317 $2,967 $13,166 $15,450 $1,233 7.4% 2.1% 33.8% 10.6% 20.1x 1.07x 10.4x 1.04x 8.3x

Median 80.2% $2,016 $594 $242 $2,833 $2,866 $216 3.6% 1.3% 33.3% 8.7% 20.1x 0.65x 11.1x 0.60x 7.6x

Outdoor & Lifestyle

Arctic Cat Inc. ACAT $17.39 43.8% $226 $16 $11 $231 $638 $9 (17.9%) (0.4%) 15.7% 1.4% NM 0.36x 25.0x 0.34x 7.3x

Brunswick Corporation BC 49.74 87.8% 4,529 455 657 4,326 4,058 491 8.9% 4.1% 27.0% 12.1% 20.1x 1.07x 8.8x 1.00x 7.4x

Black Diamond, Inc. BDE 4.27 39.7% 140 20 36 124 192 1 15.3% 5.5% 38.0% 0.5% NM 0.65x NM 0.82x 18.7x

Columbia Sportswear Company COLM 44.01 58.9% 3,095 36 174 2,957 2,304 310 17.7% 10.8% 46.2% 13.5% 18.7x 1.28x 9.5x 1.22x 9.0x

Callaway Golf Co. ELY 9.65 93.7% 868 27 42 854 825 35 (6.2%) (1.7%) 41.6% 4.3% NM 1.03x NM 0.98x 14.9x

Escalade Inc. ESCA 11.88 59.4% 168 32 3 197 152 19 12.5% 2.0% 29.1% 12.6% 12.8x 1.29x 10.2x 1.20x 8.9x

Fox Factory Holding Corp FOXF 18.03 91.9% 667 60 5 721 345 53 15.9% 20.4% 30.5% 15.4% 32.8x 2.09x 13.6x 1.88x 10.4x

GoPro, Inc. GPRO 17.31 24.8% 2,381 0 513 1,867 1,817 294 62.0% NA 46.7% 16.2% 14.2x 1.03x 6.3x 1.05x 7.8x

Amer Sports Corp. HLSE: AMEAS 26.38 94.3% 3,095 833 217 3,712 2,456 253 12.6% 7.0% 45.0% 10.3% 33.9x 1.51x 14.6x 1.39x 12.8x

Rapala VMC Corp. HLSE: RAP1V 4.64 79.3% 178 121 11 287 281 23 1.9% (0.4%) 50.7% 8.2% 28.2x 1.02x 12.5x 1.00x 8.8x

Harley-Davidson, Inc. HOG 45.53 67.4% 8,735 6,936 1,011 14,661 6,015 1,381 (3.3%) 2.5% 36.9% 23.0% 12.2x 2.44x 10.6x 2.70x 10.8x

Johnson Outdoors Inc. JOUT 22.73 64.4% 226 7 69 164 430 27 1.2% 1.5% 39.9% 6.3% 21.2x 0.38x 6.1x 0.37x NA

Malibu Boats, Inc. MBUU 15.51 64.3% 277 77 11 343 238 39 22.0% NA 26.8% 16.5% 15.8x 1.44x 8.7x 1.31x 6.9x

Marine Products Corp. MPX 6.16 68.5% 235 0 18 217 195 19 12.2% 10.9% 20.6% 9.5% 18.2x 1.11x NM 1.04x 10.5x

Nautilus Inc. NLS 17.24 75.1% 534 0 75 459 322 46 25.3% 19.4% 52.5% 14.2% 20.1x 1.43x 10.0x 1.29x 8.9x

Polaris Industries Inc. PII 93.38 59.0% 6,122 317 226 6,213 4,959 916 14.2% 16.7% 29.6% 18.5% 13.2x 1.25x 6.8x 1.19x 6.2x

Sturm, Ruger & Co. Inc. RGR 59.79 90.4% 1,118 0 60 1,058 521 121 (13.7%) 5.6% 30.2% 23.2% 38.4x 2.03x 8.8x 1.81x 8.4x

Smith & Wesson Holding Corporation SWHC 23.78 99.3% 1,297 176 54 1,419 603 147 8.3% 6.4% 38.2% 24.4% 23.1x 2.35x 9.7x 2.18x 8.6x

Shimano Inc. TSE: 7309 18,170.00 90.0% 1,684,430 9,075 175,570 1,517,935 378,996 97,417 21.3% 16.0% 40.2% 25.7% 20.7x 4.01x 15.6x 3.90x 14.8x

Vista Outdoor Inc. VSTO 42.42 86.1% 2,643 691 86 3,248 2,058 292 (5.6%) NA 26.5% 14.2% 37.7x 1.58x 11.1x 1.40x 9.6x

Mean 71.9% $86,048 $944 $8,942 $78,050 $20,370 $5,095 10.2% 7.4% 35.6% 13.5% 22.4x 1.47x 11.1x 1.40x 10.0x

Median 71.8% $993 $48 $65 $956 $620 $87 12.4% 5.6% 37.4% 13.8% 20.1x 1.29x 10.0x 1.21x 8.9x

Last Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM EV / 2015E

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Avon Products Inc. AVP 3.89 39.1% 1,694 2,314 624 3,383 7,626 642 (16.9%) (10.5%) 60.9% 8.4% NM 0.44x 5.3x 0.50x 6.5x

The Estée Lauder Companies Inc. EL 85.55 93.3% 31,588 2,066 1,087 32,567 10,984 2,099 0.5% 3.9% 80.5% 19.1% 28.0x 2.96x 15.5x 2.85x 14.5x

Herbalife Ltd. HLF 54.14 87.4% 5,010 1,653 813 5,850 4,504 700 (11.6%) 4.9% 52.2% 15.5% 12.9x 1.30x 8.4x 1.28x 7.9x

Kimberly-Clark Corporation KMB 122.65 99.7% 44,521 7,657 643 51,535 18,880 4,216 1.5% (3.4%) 35.1% 22.3% NM 2.73x 12.2x 2.75x 12.5x

Medifast Inc. MED 28.86 84.3% 339 0 66 273 274 42 2.4% (7.2%) 73.4% 15.2% 19.1x 1.00x 6.6x 0.98x 6.8x

Nu Skin Enterprises Inc. NUS 35.45 56.4% 2,029 253 317 1,965 2,284 342 (24.2%) 3.2% 79.2% 15.0% 14.8x 0.86x 5.7x 0.86x 5.6x

The Procter & Gamble Company PG 78.29 83.4% 212,994 30,487 12,606 230,875 74,035 18,212 (6.4%) (3.7%) 50.6% 24.6% 25.4x 3.12x 12.7x 3.46x 13.0x

Elizabeth Arden, Inc. RDEN 9.26 42.7% 271 466 37 700 967 (17) (11.4%) (8.9%) 42.9% NM NM 0.72x NM 0.70x 15.0x

Revlon, Inc. REV 26.69 64.1% 1,400 1,849 181 3,068 1,893 311 (1.9%) 10.7% 66.0% 16.4% 39.5x 1.62x 9.9x NA NA

Sally Beauty Holdings Inc. SBH 26.52 75.2% 4,027 1,788 140 5,675 3,834 599 2.2% 2.9% 49.5% 15.6% 17.8x 1.48x 9.5x 1.43x 9.2x

ULTA Salon, Cosmetics & Fragrance, Inc. ULTA 185.54 99.1% 11,819 0 360 11,459 3,703 629 21.0% 21.9% 35.0% 17.0% 39.9x 3.09x 18.2x 2.66x 15.5x

USANA Health Sciences Inc. USNA 128.18 72.5% 1,637 0 174 1,463 914 149 22.0% 13.4% 82.8% 16.3% 18.3x 1.60x 9.8x 1.47x 8.5x

All for One Steeb AG XTRA:A1OS $64.97 85.8% $324 $38 $36 $325 $238 $27 12.8% 21.2% 24.6% 11.1% 26.2x 1.36x 12.3x 1.35x 13.1x

Mean 75.6% $24,435 $3,736 $1,314 $26,857 $10,011 $2,150 (0.8%) 3.7% 56.4% 16.4% 24.2x 1.72x 10.5x 1.69x 10.7x

Median 83.4% $2,029 $1,653 $317 $3,383 $3,703 $599 0.5% 3.2% 52.2% 15.9% 22.3x 1.48x 9.9x 1.39x 10.9x

Pet Care

Blue Buffalo Pet Products, Inc. BUFF 18.06 62.7% 3,543 388 185 3,746 1,000 192 15.0% NA 39.9% 19.2% 35.4x 3.74x 19.5x 3.40x 15.6x

Central Garden & Pet Company CENT $14.28 78.2% $747 $400 $48 $1,100 $1,651 $137 2.9% (1.0%) 29.6% 8.3% 22.3x 0.67x 8.0x 0.64x 7.6x

Freshpet, Inc. FRPT $7.51 29.0% $252 $0 $19 $233 $110 $2 38.2% NA 47.9% 1.5% NM 2.11x 140.0x 1.74x 13.4x

Oil-Dri Corp. of America ODC 36.89 98.4% 267 15 24 258 263 32 (2.1%) 2.8% 25.5% 12.1% 18.1x 0.98x 8.1x NA NA

Spectrum Brands Holdings, Inc. SPB 96.58 90.6% 5,707 3,973 248 9,432 4,690 732 5.9% 13.0% 35.7% 15.6% 36.3x 2.01x 12.9x 1.86x 10.3x

Maabarot Products Ltd. TASE:MABR 51.00 91.4% 500 18 158 360 346 23 (5.3%) (0.1%) 41.9% 6.7% NM 1.04x 15.4x NA NA

Echo Trading Co., Ltd. TSE:7427 647.00 92.4% 3,905 5,000 3,712 5,193 74,590 128 (1.0%) (0.3%) 12.8% 0.2% NM 0.07x 40.6x NA NA

Unicharm Corporation TSE:8113 2,403.50 70.7% 1,437,561 27,347 115,472 1,349,436 714,138 119,069 19.1% 18.6% 44.2% 16.7% 35.2x 1.89x 11.3x 1.68x 11.6x

Mean 76.7% $181,560 $4,643 $14,983 $171,220 $99,599 $15,039 9.1% 5.5% 34.7% 10.0% 29.5x 1.56x 32.0x 1.86x 11.7x

Median 84.4% $2,145 $394 $171 $2,423 $1,326 $132 4.4% 1.4% 37.8% 10.2% 35.2x 1.46x 14.2x 1.74x 11.6x

LTM MarginsLast Twelve Months (LTM) EV / 2015ERevenue Growth EV / LTM

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Retail

Apparel & Footwear Retail

American Eagle Outfitters, Inc. AEO 15.65 84.6% 3,046 0 363 2,683 3,488 463 7.2% 1.0% 45.2% 13.3% 15.2x 0.77x 5.8x 0.75x 5.3x

Abercrombie & Fitch Co. ANF $25.60 85.0% $1,720 $338 $406 $1,653 $3,525 $343 (10.2%) (6.9%) 61.4% 9.7% NM 0.47x 4.8x 0.47x 4.9x

Aéropostale, Inc. ARO 0.39 8.9% 31 143 42 132 1,603 (62) (16.3%) (12.6%) 31.8% NM NM 0.08x NM 0.09x NM

Ascena Retail Group Inc. ASNA 9.94 56.5% 1,926 1,807 324 3,408 5,281 474 10.3% 12.4% 56.3% 9.0% NM 0.65x 7.2x 0.47x 4.9x

The Buckle, Inc. BKE 31.04 55.3% 1,492 0 150 1,342 1,141 273 0.2% 1.2% 49.3% 23.9% 9.8x 1.18x 4.9x 1.20x 5.0x

Cabela's Incorporated CAB 47.19 80.1% 3,271 4,295 39 7,527 3,864 443 8.5% 9.1% 43.4% 11.5% 17.9x 1.95x 17.0x 1.81x 13.5x

Caleres, Inc. CAL 27.95 82.6% 1,221 200 86 1,335 2,584 176 1.1% 1.3% 40.5% 6.8% 14.3x 0.52x 7.6x 0.50x 6.5x

The Cato Corporation CATO 37.33 83.2% 1,019 0 260 759 1,001 116 3.8% 2.3% 39.2% 11.5% 16.3x 0.76x 6.6x 0.74x NA

Chico's FAS Inc. CHS 11.46 60.4% 1,596 95 139 1,552 2,672 282 1.6% 2.3% 53.9% 10.5% NM 0.58x 5.5x 0.60x 5.4x

Citi Trends, Inc. CTRN 20.58 71.7% 314 0 76 238 689 42 6.5% 1.6% 38.8% 6.2% 18.7x 0.35x 5.6x 0.33x 4.9x

Destination Maternity Corporation DEST 9.46 56.5% 131 45 2 174 488 (54) (5.6%) (3.4%) 39.6% NM NM 0.36x NM NA NA

DSW Inc. DSW 23.31 58.9% 2,019 0 90 1,929 2,588 317 6.6% 5.9% 37.4% 12.2% 13.4x 0.75x 6.1x 0.72x 7.0x

Destination XL Group, Inc. DXLG 4.89 73.0% 248 84 6 327 438 33 9.4% 3.4% 47.3% 7.5% NM 0.75x 9.9x 0.71x 10.9x

Express Inc. EXPR 17.22 83.1% 1,421 70 91 1,400 2,310 269 7.2% 3.4% 42.9% 11.7% 14.2x 0.61x 5.2x 0.58x 4.8x

Finish Line Inc. FINL 16.04 55.2% 720 0 100 620 1,874 165 6.7% 9.1% 39.0% 8.8% 9.0x 0.33x 3.8x 0.32x 3.5x

Foot Locker, Inc. FL 66.03 85.5% 9,063 131 878 8,316 7,316 1,056 4.1% 7.0% 42.3% 14.4% 17.7x 1.14x 7.9x 1.08x 7.2x

Genesco Inc. GCO 54.55 67.7% 1,205 215 28 1,392 2,983 250 8.1% 5.6% 48.4% 8.4% 12.6x 0.47x 5.6x 0.45x 5.4x

Guess? Inc. GES 19.60 83.6% 1,642 7 402 1,246 2,243 219 (9.9%) (5.0%) 36.0% 9.7% 19.0x 0.56x 5.7x 0.57x 5.7x

The Gap, Inc. GPS 25.73 58.6% 10,341 1,752 1,042 11,051 16,120 2,373 (1.1%) 2.0% 37.0% 14.7% 10.5x 0.69x 4.7x 0.69x 5.5x

L Brands, Inc. LB 97.21 96.1% 28,136 5,766 1,321 32,581 11,828 2,517 5.6% 5.3% 47.5% 21.3% 24.4x 2.75x 12.9x 2.58x 12.0x

Lululemon Athletica Inc. LULU 47.79 68.3% 6,621 0 403 6,218 1,959 423 14.2% 16.0% 48.6% 21.6% 26.0x 3.17x 14.7x 2.81x 13.8x

The Men's Wearhouse, Inc. MW 13.48 20.4% 652 1,656 54 2,255 3,599 328 24.8% 13.8% 42.7% 9.1% NM 0.63x 6.9x 0.65x 6.8x

New York & Company Inc. NWY 2.35 75.6% 152 14 45 121 946 26 2.1% (0.0%) 38.0% 2.7% NM 0.13x 4.7x 0.12x 3.5x

The Children's Place, Inc. PLCE 54.85 78.5% 1,095 34 219 911 1,706 148 (2.5%) (1.0%) 35.9% 8.7% 20.1x 0.53x 6.1x 0.53x 5.1x

Pacific Sunwear of California Inc. PSUN 0.23 7.4% 16 132 11 136 800 (1) (1.7%) 2.0% 43.3% NM NM 0.17x NM 0.17x 9.3x

Ross Stores Inc. ROST 54.41 96.0% 22,036 396 487 21,945 11,722 1,875 9.0% 7.8% 32.3% 16.0% 22.2x 1.87x 11.7x 1.76x 11.0x

Shoe Carnival Inc. SCVL 22.87 76.2% 456 0 49 407 978 68 7.1% 5.6% 29.4% 6.9% 16.6x 0.42x 6.0x 0.40x 5.6x

Stein Mart Inc. SMRT 6.85 41.1% 313 192 14 491 1,353 83 4.7% 4.2% 29.1% 6.2% 10.7x 0.36x 5.9x 0.34x 5.6x

Stage Stores Inc. SSI 7.88 33.9% 241 172 23 389 1,627 121 1.3% 0.6% 26.8% 7.4% 9.6x 0.24x 3.2x 0.25x 3.8x

Urban Outfitters Inc. URBN 22.55 47.7% 2,646 115 219 2,541 3,443 496 7.0% 8.9% 41.9% 14.4% 12.6x 0.74x 5.1x 0.71x 5.0x

Zumiez, Inc. ZUMZ 14.76 35.3% 394 1 51 344 820 93 5.2% 9.3% 34.4% 11.4% 12.8x 0.42x 3.7x 0.43x 4.9x

Mean 63.4% $3,393 $570 $239 $3,723 $3,322 $431 3.7% 3.6% 41.3% 11.3% 15.6x 0.79x 7.0x 0.76x 6.7x

Median 68.3% $1,221 $95 $91 $1,342 $2,243 $250 5.2% 3.4% 40.5% 10.1% 14.7x 0.58x 5.8x 0.57x 5.4x

Department Chains

Bon-Ton Stores Inc. BONT $1.75 22.6% $37 $1,139 $22 $1,154 $2,803 $120 0.3% (1.7%) 36.4% 4.3% NM 0.41x 9.6x 0.41x 9.0x

Dillard's Inc. DDS 68.88 47.8% 2,529 952 100 3,380 6,817 786 2.1% 1.0% 36.5% 11.5% 8.8x 0.50x 4.3x 0.52x 5.0x

J. C. Penney Company, Inc. JCP 7.03 69.7% 2,151 5,314 638 6,827 12,522 623 3.1% (4.8%) 36.0% 5.0% NM 0.55x 11.0x 0.53x 8.2x

Nordstrom Inc. JWN 54.76 65.8% 10,069 2,809 821 12,057 14,287 1,792 8.4% 6.9% 36.6% 12.5% 15.7x 0.84x 6.7x 0.81x 6.9x

Kohl's Corp. KSS 46.76 58.7% 8,876 5,135 501 13,510 19,154 2,582 2.0% 0.3% 36.4% 13.5% 12.4x 0.71x 5.2x 0.69x 5.1x

Macy's, Inc. M 36.37 49.4% 11,434 7,963 474 18,923 27,574 3,670 (1.3%) 0.6% 40.0% 13.3% 9.4x 0.69x 5.2x 0.70x 5.3x

Stage Stores Inc. SSI 7.88 33.9% 241 172 23 389 1,627 121 1.3% 0.6% 26.8% 7.4% 9.6x 0.24x 3.2x 0.25x 3.8x

Hudson's Bay Company TSX: HBC 16.73 56.7% 3,047 4,399 292 7,154 9,308 596 17.2% 32.6% 41.0% 6.4% 27.5x 0.77x 12.0x 0.51x 8.2x

Mean 50.6% $4,798 $3,485 $359 $7,924 $11,761 $1,286 4.1% 4.4% 36.2% 9.2% 13.9x 0.59x 7.2x 0.55x 6.4x

Median 53.0% $2,788 $3,604 $383 $6,990 $10,915 $704 2.0% 0.6% 36.5% 9.5% 11.0x 0.62x 6.0x 0.52x 6.1x


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PUBLIC COMPARABLES

CONSUMER AND RETAIL


12



Discount Stores & Mass Merchants

Big Lots Inc. BIG 38.21 74.8% 1,893 335 62 2,167 5,200 351 0.9% (0.7%) 39.8% 6.8% 14.0x 0.42x 6.2x 0.41x 5.7x

Costco Wholesale Corporation COST 161.84 95.4% 71,174 6,126 6,283 71,017 116,553 4,776 1.8% 4.8% 13.1% 4.1% 30.3x 0.61x 14.9x 0.57x 13.9x

CVS Health Corporation CVS 94.11 82.8% 104,462 27,222 3,011 128,673 149,199 11,186 10.4% 7.5% 17.3% 7.5% 21.3x 0.86x 11.5x 0.77x 10.1x

Dollar General Corporation DG 71.01 87.2% 20,659 3,107 183 23,583 20,021 2,259 8.4% 7.8% 30.9% 11.3% 18.6x 1.18x 10.4x 1.09x 9.7x

Dollar Tree, Inc. DLTR 77.71 92.3% 18,246 8,344 1,111 25,479 12,609 1,500 50.8% 21.1% 36.3% 11.9% NM 2.02x 17.0x 1.23x 10.9x

Macy's, Inc. FDO 32.77 48.4% 11,434 7,963 474 18,923 27,574 3,670 (1.3%) 0.6% 40.0% 13.3% NA 0.69x 5.2x 0.70x 5.3x

Gordmans Stores, Inc. GMAN 2.93 32.8% 58 66 9 115 656 18 2.6% 3.1% 41.6% 2.7% NM 0.18x 6.5x 0.17x 5.4x

PriceSmart Inc. PSMT 85.03 82.1% 2,567 99 157 2,508 2,803 183 11.3% 11.1% 16.0% 6.5% 28.8x 0.90x 13.7x 0.82x 12.6x

Rite Aid Corporation RAD 7.76 81.9% 8,121 7,444 153 15,412 27,853 1,301 7.4% 2.1% 27.5% 4.7% 4.0x 0.55x 11.8x 0.46x 10.3x

Target Corp. TGT 72.72 84.7% 44,799 12,788 1,996 55,591 73,909 7,411 4.0% 0.9% 29.7% 10.0% 16.1x 0.75x 7.5x 0.74x 7.4x

The TJX Companies, Inc. TJX 70.93 92.2% 47,490 1,624 2,123 46,991 30,287 4,271 6.0% 6.8% 28.7% 14.1% 21.6x 1.55x 11.0x 1.46x 10.6x

Tuesday Morning Corporation TUES 6.20 27.1% 275 0 23 252 906 25 2.6% 3.6% 36.1% 2.8% 26.0x 0.28x NM 0.27x 10.2x

Walgreens Boots Alliance, Inc. WBA 82.56 84.9% 89,632 14,383 3,036 100,979 103,444 6,872 35.4% 13.0% 26.1% 6.6% 20.6x 0.98x 14.7x 0.84x 11.2x

Wal-Mart Stores Inc. WMT 60.39 66.4% 193,362 53,124 6,990 239,496 484,028 34,727 0.0% 1.4% 25.0% 7.2% 12.9x 0.49x 6.9x 0.49x 7.3x

Mean 73.8% $43,869 $10,187 $1,829 $52,228 $75,360 $5,611 10.0% 5.9% 29.2% 7.8% 19.5x 0.82x 10.6x 0.72x 9.3x

Median 82.4% $19,453 $6,785 $792 $24,531 $27,713 $2,964 5.0% 4.2% 29.2% 7.0% 20.6x 0.72x 11.0x 0.72x 10.2x

Furniture & Furnishings Retailers

Aaron's, Inc. AAN $21.74 53.3% $1,578 $494 $67 $2,005 $3,137 $441 25.5% 13.0% 50.9% 14.0% 11.6x 0.64x 4.5x 0.59x 5.4x

Bed Bath & Beyond Inc. BBBY 52.20 65.5% 8,712 1,500 696 9,515 12,014 1,757 2.9% 6.7% 38.6% 14.6% 10.1x 0.79x 5.4x 0.77x 5.6x

Conns Inc. CONN 24.90 56.7% 803 1,160 109 1,853 1,583 101 11.5% 23.5% 27.7% 6.4% 20.2x 1.17x 18.3x 1.03x 9.3x

Ethan Allen Interiors Inc. ETH 26.68 81.8% 758 76 87 747 754 86 (0.2%) 1.0% 54.5% 11.3% 20.2x 0.99x 8.7x 0.94x 7.4x

hhgregg, Inc. HGG 3.84 46.7% 106 0 35 72 2,079 (4) (6.5%) (6.2%) 28.4% NM NM 0.03x NM 0.04x 5.3x

Haverty Furniture Companies Inc. HVT 21.81 83.9% 483 54 80 457 802 73 6.7% 6.9% 53.4% 9.1% NM 0.57x 6.3x 0.54x 5.6x

Kirkland's Inc. KIRK 13.58 46.0% 231 0 32 199 542 47 11.7% 7.6% 48.1% 8.7% 15.3x 0.37x 4.2x 0.33x 3.9x

La-Z-Boy Incorporated LZB 24.06 82.0% 1,208 5 85 1,128 1,457 133 4.7% 5.3% 36.6% 9.2% 17.3x 0.77x 8.5x 0.72x 7.1x

Pier 1 Imports, Inc. PIR 5.69 32.5% 493 266 41 718 1,890 166 3.9% 6.0% 38.9% 8.8% 8.3x 0.38x 4.3x 0.37x 4.6x

Rent-A-Center, Inc. RCII 15.35 40.9% 815 914 60 1,669 3,281 280 5.1% 2.3% 66.0% 8.5% 11.5x 0.51x 6.0x 0.50x 5.3x

Restoration Hardware Holdings, Inc. RH 78.65 73.9% 3,184 746 388 3,542 2,045 246 16.4% 22.9% 37.1% 12.0% 33.1x 1.73x 14.4x 1.45x 10.9x

Select Comfort Corporation SCSS 22.10 61.8% 1,119 0 106 1,013 1,321 181 24.0% 13.5% 61.6% 13.7% 12.9x 0.77x 5.6x 0.75x 6.5x

The Sherwin-Williams Company SHW 263.34 89.5% 24,517 1,960 91 26,386 11,304 1,680 2.6% 6.4% 48.1% 14.9% 25.4x 2.33x 15.7x 2.25x 13.8x

Williams-Sonoma Inc. WSM 59.05 66.1% 5,305 200 72 5,433 4,932 663 6.7% 8.1% 37.6% 13.4% 17.4x 1.10x 8.2x 1.04x 7.4x

Mean 62.9% $3,522 $527 $139 $3,910 $3,367 $418 8.2% 8.4% 44.8% 11.1% 16.9x 0.87x 8.5x 0.81x 7.0x

Median 63.7% $967 $233 $83 $1,398 $1,967 $174 5.9% 6.8% 43.5% 11.3% 16.3x 0.77x 6.3x 0.74x 6.1x

EV / 2015ELast Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


13



Internet Retail

Amazon.com, Inc. AMZN 657.91 96.1% 308,403 18,587 14,428 312,562 100,588 7,007 18.0% 20.7% 32.4% 7.0% NM 3.11x 44.6x 2.56x 23.2x

Alibaba Group Holding Limited BABA $80.57 72.5% $202,426 $54,163 $107,965 $148,624 $86,020 $28,591 35.7% NA 68.0% 33.2% 21.2x 1.73x 5.2x 8.52x 17.1x

Cimpress N.V. CMPR 82.49 87.2% 2,590 810 100 3,301 1,536 200 15.6% 13.2% 61.2% 13.0% 35.5x 2.15x NM 1.94x 12.8x

eBay Inc. EBAY 28.04 42.0% 33,660 7,439 5,301 35,798 17,705 4,889 61.0% 9.6% 67.3% 27.6% 11.3x 2.02x 7.3x 4.03x 9.9x

Mercadolibre, Inc. MELI 115.73 75.4% 5,110 297 341 5,066 632 189 19.4% 21.1% 74.7% 29.8% NM 8.01x NM 7.35x 29.2x

Blue Nile Inc. NILE 35.68 91.5% 411 0 34 378 488 17 5.5% 9.0% 18.8% 3.5% 40.6x 0.78x 22.4x 0.74x 15.3x

Overstock.com Inc. OSTK 12.04 44.4% 304 1 81 223 1,648 21 15.7% 15.4% 18.6% 1.2% NM 0.14x 10.9x 0.12x 4.6x

The Priceline Group Inc. PCLN 1,297.88 87.9% 64,614 5,443 3,053 67,004 9,064 3,438 11.3% 21.4% 92.2% 37.9% 27.1x 7.39x 19.5x 6.49x 16.1x

Shutterfly, Inc. SFLY 43.48 88.6% 1,528 384 134 1,777 995 93 17.2% 21.6% 49.5% 9.3% NM 1.79x 19.1x 1.59x 8.7x

Stamps.com Inc. STMP 101.57 95.4% 1,686 2 99 1,589 186 47 34.9% 18.1% 78.5% 25.3% NM 8.54x 33.8x 5.88x 18.6x

Rakuten, Inc. TSE: 4755 1,417.00 59.2% 2,018,002 588,119 581,489 2,024,632 689,060 154,243 20.2% 18.0% 16.4% 22.4% 27.1x 2.94x 13.1x 2.56x 11.7x

Wayfair Inc. W 46.25 81.4% 3,891 0 325 3,566 1,919 (116) 59.1% NA 24.2% NM NM 1.86x NM 1.28x NM

Mean 76.8% $220,219 $56,270 $59,446 $217,043 $75,820 $16,551 26.1% 16.8% 50.1% 19.1% 27.1x 3.37x 19.5x 3.59x 15.2x

Median 84.3% $4,501 $597 $333 $4,316 $1,783 $194 18.7% 18.1% 55.3% 22.4% 27.1x 2.09x 19.1x 2.56x 15.3x

Specialty & Other Retail

Best Buy Co., Inc. BBY 29.90 71.2% 10,247 1,639 3,347 8,539 40,114 2,217 3.4% (0.3%) 22.9% 5.5% 12.4x 0.21x 3.9x 0.21x 3.8x

Big 5 Sporting Goods Corp. BGFV 9.29 60.1% 204 69 6 268 1,004 48 3.0% 2.8% 31.7% 4.8% 14.8x 0.27x 5.6x 0.26x NA

Barnes & Noble, Inc. BKS $8.83 30.4% $675 $192 $13 $853 $5,996 $290 13.9% (5.7%) 30.3% 4.8% NM 0.14x NM 0.21x 4.2x

Dick's Sporting Goods Inc. DKS 36.71 60.8% 4,221 348 74 4,496 7,191 771 8.9% 8.4% 30.6% 10.7% 12.2x 0.63x 5.8x 0.58x 5.5x

The Home Depot, Inc. HD 132.01 97.4% 167,373 20,862 3,040 185,195 86,701 13,141 6.1% 6.1% 34.9% 15.2% 24.8x 2.14x 14.1x 2.01x 12.7x

Hibbett Sports, Inc. HIBB 30.42 54.6% 693 3 45 651 937 131 5.0% 5.8% 35.5% 14.0% 10.3x 0.69x 5.0x 0.66x 4.8x

Marinemax Inc. HZO 17.45 60.8% 447 137 33 552 751 32 20.3% 12.7% 24.6% 4.2% 9.1x 0.73x 17.5x 0.67x 12.7x

Lumber Liquidators Holdings, Inc. LL 14.06 20.1% 381 20 54 347 1,016 13 (1.7%) 9.3% 33.1% 1.3% NM 0.34x 26.2x 0.34x NM

Lowe's Companies Inc. LOW 75.65 96.8% 69,228 12,599 1,385 80,442 58,379 6,953 5.5% 4.5% 34.8% 11.9% 24.0x 1.38x 11.6x 1.32x 10.4x

Movado Group, Inc. MOV 26.29 81.6% 605 40 181 464 586 81 0.0% 5.1% 52.9% 13.8% 13.6x 0.79x 5.7x 0.77x 5.3x

Office Depot, Inc. ODP 5.63 57.6% 3,087 1,523 958 3,652 14,840 671 (5.8%) 10.4% 24.1% 4.5% NM 0.25x 5.4x 0.26x 4.0x

Staples, Inc. SPLS 9.40 48.5% 6,050 1,035 782 6,303 21,447 1,393 (5.6%) (3.9%) 26.2% 6.5% NM 0.29x 4.5x 0.30x 4.7x

Tiffany & Co. TIF 73.98 67.9% 9,485 1,079 725 9,839 4,176 1,012 (2.0%) 3.7% 60.1% 24.2% 19.3x 2.36x 9.7x 2.27x 9.2x

Tractor Supply Company TSCO 88.22 91.6% 11,851 201 51 12,001 6,164 776 11.2% 10.1% 34.4% 12.6% 29.5x 1.95x 15.5x 1.78x 14.2x

Vitamin Shoppe, Inc. VSI 31.94 65.4% 930 8 2 936 1,263 140 7.1% 10.1% 41.9% 11.1% 16.2x 0.74x 6.7x 0.71x 6.6x

Mean 64.3% $19,032 $2,650 $713 $20,969 $16,704 $1,845 4.6% 5.3% 34.5% 9.7% 16.9x 0.86x 9.8x 0.82x 7.5x

Median 60.8% $3,087 $201 $74 $3,652 $5,996 $671 5.0% 5.8% 33.1% 10.7% 14.8x 0.69x 6.2x 0.66x 5.5x


PAGE |

M&A TRANSACTIONS

RECENT NORTH AMERICAN CONSUMER M&A

CONSUMER AND RETAIL


14

Private Equity

Announced Target Seller Buyer Involvement

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

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

PAGE |

M&A TRANSACTIONS

15

RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED)

CONSUMER AND RETAIL


Private Equity


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

8/3/2015 Latham Pool Products, Inc. Littlejohn & Co. LLC Wynnchurch Capital, Ltd. P

8/2/2015 SC Pool & Spa Works & others VivoPools, Inc. Poolwerx USA LLC

8/1/2015 Country Home Products, Inc. - Generac Holdings Inc.

7/31/2015 Infinity Technology & Entertainment Inc. - Vernon Communications Cooperative

7/31/2015 Coyne International Enterprises Corp. - NXT Capital, LLC P

7/29/2015 Onix Sports, Inc. - Escalade Sports, Inc.

7/29/2015 F2Z USA Corp. - F2Z Entertainment Inc.

7/28/2015 Kanata Blanket Company - Pro Towels

7/27/2015 Good Vibrations Shoes Inc. - Vindai Corporation

7/23/2015 No Limit Archery, LLC - Plano Synergy Holdings, Inc.

PAGE |

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

HW&CO. CONSUMER TEAM

M&A TRANSACTIONS

CONSUMER AND RETAIL


RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED)

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

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

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

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

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

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

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

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

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

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

16

Private Equity


7/22/2015 Deal Genius, LLC - Hilco Merchant Resources LLC

7/22/2015 Creery Custom, Inc. - Ledbury Inc.

7/21/2015 Globox Rentals, Inc. - Alps Innovations Group, Inc.

7/20/2015 Jimmy Styks, LLC - Vista Outdoor Inc.

7/20/2015 Minno Inc Western Technology, Felicis Ventures, others eBay Inc. P

7/19/2015 Loomworks Apparel, Inc. - Delta Galil USA Inc.

7/17/2015 Ben Sherman Limited and Clothing LLC Oxford Industries Inc. Marquee Brands LLC

7/17/2015 Duffy's Brew LLC - -

7/15/2015 Comark Inc. KarpReilly LLC Pacific West Commercial Corporation P

7/15/2015 KidKraft, L.P. - MidOcean Partners P

7/13/2015 Starplex Operating LP - AMC Entertainment Holdings, Inc.

7/13/2015 Chatters Canada Limited - ONCAP P

7/13/2015 Qponix LLC - Meredith Corporation

7/13/2015 Councill Company, LLC - Kindel Furniture Company Inc.

7/11/2015 WNA, Inc. Olympus Partners Jarden Corp. P

7/9/2015 Sports One Inc. - Hi-Tech Pharmaceuticals, Inc.

7/9/2015 Knowledge Universe Education LLC Knowledge Universe Holdings, LLC - P

7/9/2015 Puremco Fun & Games, Inc. - University Games Corporation

7/8/2015 43 Beauty Brands The Procter & Gamble Company Coty Inc.

7/8/2015 SCIFIT Systems, Inc. - Brunswick Corporation

7/8/2015 Morton's Ace Hardware - Sunshine Ace Hardware, Inc.

7/6/2015 Artissimo Designs Inc. Huron Capital Partners, LLC Excelsior Capital Partners P

7/3/2015 Santa Cruz Bicycles, Inc. - Pon Holdings B.V.

7/2/2015 Spot It!/Dobble Game - Asmodée Editions SAS

7/2/2015 Murad, Inc. - Unilever United States, Inc.

7/1/2015 Backcountry.com, Inc. Liberty Interactive Corporation TSG Consumer Partners P

7/1/2015 Advanced Beauty Systems, Inc. - PDC Brands

7/1/2015 Crappie Pro - Gene Larew Lures, LLC

6/30/2015 Kelley's Termite And Pest Control, Inc. - Bug Out Service Inc

6/30/2015 Northwest Carpets Inc. - Lexmark Carpet Mills, Inc.

6/29/2015 Gaspard & Sons Ltd. Ironbridge Equity Partners Limited American Achievement Corporation P

6/26/2015 The Wigglebutt Inn, Inc. - Pet Paradise-INN, LLC

6/26/2015 Kadel's Auto Body, LLC Midwest Mezzanine Funds; KCB Management ABRA Auto Body & Glass LP P

6/25/2015 Foundation Partners Group, LLC Sterling Partners Access Microfinance Holding AG P

6/24/2015 Alarm Associates, Inc. - LOUD Security Systems, Inc.

6/24/2015 Player's Bench Corporation - Total Hockey Inc.

6/24/2015 Dermalogica, Inc. - Unilever plc

6/24/2015 By George - McGuire Moorman Hospitality, LLC

6/22/2015 11 Main, Inc. Alibaba Group Holding Limited OpenSky Corp.

6/18/2015 New York Kids Club LLC - New Harbor Capital Management LLC P

6/17/2015 Valley Sporting Goods, Inc. - S&S Promotional Group, Inc.

6/16/2015 Zanella Ltd. - Tengram Capital Partners, LLC P

6/16/2015 Altantic Service & Supply Inc. - Style Crest, Inc.

6/15/2015 Carolina Cutlery Service, Inc. - Cozzini Bros, Inc.

6/15/2015 Pure Energy, Inc. - Livewire, LLC

6/13/2015 American Spa Company Inc - Elements Group Ltd.

6/12/2015 JS Technologies, Inc. - Avalanche International, Corp.

6/12/2015 Service Brands International, LLC - The Dwyer Group, Inc.

6/11/2015 Vanity Fair Brands, LP Fruit of the Loom, Inc. Perceva Capital P












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

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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© 2015 Harris Williams & Co., all rights reserved.

CONSUMER AND RETAIL


DISCLOSURES

http://www.harriswilliams.com/

industry update december 2015

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