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Active Lifestyle Sector Quarterly Review | Fall 2016 Merger, acquisition, and valuation trends in the public
and private active lifestyle markets
BALTIMORE – CHICAGO – DENVER – GREAT FALLS – ORANGE COUNTY – PORTLAND – SALT LAKE CITY – SEATTLE
Page 2 www.dadavidson.com/Investment-Banking
Co-Manager
$378.0 million
Initial Public Offering
Buy-Side Advisor
has acquired
has been acquired by
Sell-Side Advisor
a portfolio company of
Co-Manager
$76.6 million
Secondary Offering
DAVIDSON TEAM
Mike Smith Managing Director, Co-Head of Active Lifestyle Investment Banking
(206) 903-8679 [email protected]
Jason Lippenberger Vice President
Investment Banking
(206) 903-8672 [email protected]
Gabe Segura Associate
Investment Banking
(714) 850-8337 [email protected]
Kirk Swanson Analyst Investment Banking
(206) 903-8676 [email protected]
Private Equity Coverage
Bryan Cummings Managing Director, Head of Private Equity Coverage
(714) 850-8339 [email protected]
Brien Rowe Managing Director, Co-Head of Active Lifestyle Investment Banking
(714) 850-8335 [email protected]
Raya Raphael Analyst
Investment Banking
(714) 850-8353 [email protected]
Jacqueline Millen Associate, Private Equity Coverage
(714) 850-8336 [email protected]
* Transactions completed by current D.A. Davidson professional prior to joining the firm.
Nathan Neubauer Analyst
Investment Banking
(206) 903-8675 [email protected]
Active Lifestyle Execution Team Selected Transactions
Sell-Side Advisor*
has been acquired by
Sell-Side Advisor*
has been acquired by
Shanghai Acquisition
Corporation
Sell-Side Advisor
has been acquired by
Kanders & Company
Sell-Side Advisor
has been acquired by
Sell-Side Advisor
has been acquired by
Sell-Side Advisor
has been acquired by
Sell-Side Advisor
have been acquired by
Private Investors
Co-Manager
$132.1 million
Initial Public Offering
Sell-Side Advisor*
has been acquired by
Sell-Side Advisor*
has completed a
recapitalization with
Sell-Side Advisor*
has completed a
recapitalization with
Sell-Side Advisor
has been acquired by
Buy-Side Advisor*
together with
Acquired
Fox Head, Inc.
has entered a strategic
partnership with
Sell-Side Advisor
Buy-Side Advisor
Acquired
Sell-Side Advisor
has completed a
management buyout
with
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SECTOR SCORECARD: COMPARABLE PUBLIC COMPANIES
Stock Performance(1)
TEV/LTM
EBITDA Valuation(2)
Source: S&P Capital IQ, data as of 11/11/16.
(1) Detail on public companies on pages 13 – 16.
(2) Enterprise value / LTM EBITDA (median and range) Note: Enterprise value is defined as market capitalization plus net debt .
14.2x
5.5x
11.6x
9.2x
23.5x
6.1x
12.9x
13.2x
3.2x
13.1x
24.1x
9.0x
11.6x
21.2x
7.0x
12.2x
28.9x
6.3x
8.0x
19.0x
3.7x
11.6x
5.0x
13.2x
7.9x
18.7x
5.6x
8.4x
5.9x
18.3x
10.9x 11.3x
S&P 500 Accessories Active Apparel Fashion Apparel Beauty Home Equipment FootwearSporting Goods
Retailers
Consumer
RetailersTactical
90 Days (0.8%) (2.9%) (10.6%) (2.6%) (8.2%) (3.2%) (2.2%) 1.3% 21.9% (1.8%) 1.2%
180 Days 5.9% 1.5% (1.5%) 6.1% 2.1% 4.3% 9.8% 12.6% 43.4% 12.0% 11.1%
1-Year 4.5% (14.0%) (12.0%) (6.8%) 5.2% 0.5% (0.0%) 6.9% 39.3% 10.1% 17.0%
3-Year 22.3% 5.2% 21.5% (10.2%) 42.6% 30.9% 18.9% 10.5% (12.4%) 22.8% 35.4%
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CURRENT EVENT INSIGHTS & COMMENTARY
Holiday spending predicted to increase this year – Holiday spending this season is anticipated to reach its highest level since the
Great Recession, increasing (+10%) compared with the 2015 holiday season. According to the NPD Group’s 2016 Holiday Purchase
Intentions Survey, consumers plan to spend an average of $636, up (+3.0%) from last year, on holiday related expenses. An increasing
number of consumers are expected to make their purchases online or through their mobile devices, increasing digital sales by (+25%).
Buying experiences vs. material possessions – With the rise of the Millennial generation, consumer spending habits have shifted.
Millennials often choose to spend their dollars on experiences rather than material possessions. A recent Eventbite study found that 78%
of Millennials prefer to spend money on experiences they can share with family, friends and social media.
Brand loyalty shifts – Consumer brands are operating in a new environment with consumers basing their purchase decisions on factors
that go beyond product taste, performance, and price. Consumers are seeking brands and products that align with their values such as
health and wellness, environmental consciousness, corporate citizenship, and transparency.
Growth in luxury goods stabilizes – Luxury brands are expected to see more measured global growth in the coming few years as
demand from China stabilizes. Chinese consumers continue to play a dominant role in the growth of luxury spending worldwide, driven
particularly by its wealthy demographic. However, with the Chinese economy transitioning to a consumer-based economy from a
manufacturing economy, we expect an ever-increasing middle class to create multiple opportunities for luxury brands.
Brick & mortar establishments continue to struggle – Brick and mortar retailers remain the most affected by the shift to online
retailers. For example, retailer Golfsmith filed for bankruptcy and plans to close all but 30 locations, while department store giant Macy’s
announced plans to close an additional 100 stores in 2017.
India looks to double its apparel exports over the next three years – India plans to capitalize on the trending production decline in
China and aims to steal market share from manufacturers in China, Vietnam, and Bangladesh. India has a significant advantage over the
latter two as its industry is completely vertical, from farming cotton to producing garments.
The markets react favorably to the outcome of the presidential election – The U.S. markets react favorably to Donald Trump’s win
as the 45th American president. The Dow Jones traded up 257 points on the news, up (+1.4%) on November 9, after Dow futures plunged
as much as 800 points the night of the election. The S&P 500 followed the same path and increased (+1.1%) on November 9, after it fell
(-5.0%) the night of the election. The longer term effects on the stock market due to a Trump presidency remain unclear.
Source: D.A. Davidson Equity Research, Women’s Wear Daily, NPD, Industry Research.
Industry Insights – Evolution of the Consumer, Strong Outlook on 2016 Holiday Season
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INDUSTRY INSIGHT & TRENDS: OVERVIEW
Consumer M&A outperforms overall market – Consumer middle market M&A was the second most active industry by dollar volume,
with a Q3 2016 dollar volume of $4.4 billion. However, this represents a decrease of (-32.3%) when compared to Q2 of 2016.
IPO market shows signs of life – Q3 2016 mimicked the results of Q2 2016, with a total of 38 transactions priced and $6.6 billion in
funds raised. Due to the stock market volatility in Q1 2016 and the record low number of IPOs, 2016 remains on track to be slowest year
in IPOs since the Great Recession.
Cash levels reach highs not seen since 9/11 – Global economic uncertainties have created a bearish outlook in the stock market,
encouraging investors to increase their cash balances to 5.8% of their portfolios in October, up from 5.5% last month. Several analysts
anticipate a stock market rally as concerns about the global economy stabilize and investors put their cash back into the market.
M&A and Public Offering Trends – Consumer M&A Leads the Way
Markets recovered from the initial shock of Brexit – Despite a challenging macro environment, the S&P 500 Index reported a third
quarter gain of (+3.9%). The leading sector in the index was Information Technology, posting gains in the third quarter of (+12.9%),
followed by Financials, rising (+4.6%).
USD appreciates against major currencies in October – During the month of October, the USD appreciated against the GBP (+6.6%),
the EUR (+2.6%), the AUD (+0.8%), the CAD (+2.1%), and the JPY (+3.8%).
Active Lifestyle stocks(1) lag behind the S&P 500 and the broader S&P 500 Consumer Index – Active Lifestyle stocks declined
(-6.4%) in October, falling behind the S&P 500 and the S&P 500 Consumer Index, which fell (-1.9%) and (-2.4%), respectively. Year-to-
date, Active Lifestyle stocks are down (-5.2%), underperforming the S&P 500 (+4.0%) and the broader Consumer Index (-0.1%). On a 12
month rolling basis, the Active Lifestyle names have fallen (-6.2%) on average, trailing the S&P 500 (+2.3%) and the S&P 500 Consumer
Index (-3.4%).
Modest improvement in retail earnings in the second quarter of the year; initial third quarter comps are mixed – Despite the
challenging retail environment, retailers have reported modest sequential improvement in the second quarter of 2016. However, third
quarter data remains obscure as most companies have yet to release earnings. Within our sporting goods retailers group(2), Cabela’s
reported a decline of (-2.3%), while Big 5 Sporting Goods reported gains of (+6.8%), driven by the recent sporting goods retailer closures.
Industry Insights – Retail Earnings Mixed, Dollar Strengthens
(1) Active Lifestyle space based on D.A. Davidson research coverage: BDE, CAB, COLM, ELY, FOXF, GIL, HBI, LULU, NKE, NLS, PSG, SK UL, SPWH, UA, VFC, VSTO, WWW. Data as of 11/4/16.
(2) Sporting goods retailers include: DKS, HIBB, BGFV, CAB, and SPWH. Data as of 11/4/16.
Source: D.A. Davidson Equity Research, Women’s Wear Daily, NPD; Industry Research, Pitchbook, S&P Capital IQ, U.S. Census Bureau, U.S. Bureau of Economic Analysis, Statista.
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INDUSTRY INSIGHT & TRENDS: OVERVIEW CONT.
Retail Sales – U.S. retail sales (ex-Autos) increased (+0.6%) in September 2016 from August 2016, following a (+0.5%) rise in the
previous period. Year-over-year, retail sales (ex-Autos) increased (+2.7%). U.S Clothing & Clothing Accessories Stores, Sporting
Goods, Hobby, Book & Music Stores, and Furniture & Home Furniture Stores sales have declined month-over-month by (-13.2%),
(-15.1%), and (-2.3%), respectively. However, year-over-year, sales in those groups have increased (+0.5%), (+4.6%), and (+3.8%),
respectively.
E-Commerce Sales – U.S. retail e-commerce sales for the third quarter of 2016 were $44.1 billion, representing a year-over-year
increase of (+10.6%). E-commerce sales in the third quarter of 2016 accounted for 9.6% of total retail sales, up from 8.0% in the second
quarter of 2016. Major e-retailers posted significant sales growth in the third quarter of 2016, with Wayfair posting a whopping 53%
growth, Amazon reporting 29% growth and Etsy recording 19% growth in sales.
Price Trends – U.S. apparel CPI has decreased (-0.7%) month-over-month, from 126.6 in August 2016 to 125.7 in September
2016. The fall in overall apparel prices was due to the declines in women’s and men’s apparel categories.
Earnings Data – 2016 third quarter earnings data remains mixed as companies continue to release earnings in the coming weeks.
However, the second quarter showed some positive signs as mass market retailers posted their eighth consecutive positive quarter,
department stores showed modest improvement, sporting goods retailers were up considerably and footwear retailers remained strong.
Gross Domestic Product – U.S. GDP grew (+2.9%) in the third quarter of 2016, beating initial expectations of (+2.5%), driven
mainly by growth in exports, which rose at a (+10.0%) rate. The increase represents a strong pick up from the second quarter’s (+1.4%)
growth pace.
Inflation – The CPI in the United States increased (+0.3%) in September from the previous month. Year-over-year, the CPI increased
(+1.5%), representing the highest inflation rate since October 2014. Inflation declined month-over-month, from 2.3% in August to
2.2% in September. Despite the fact that the core personal consumption expenditures measure remains below the Fed’s target rate of
2.0%, several other metrics are signaling that inflationary pressures are growing in the U.S.
Consumer – Average daily spending remained strong in October, posting a gain of (+2.2%) over September. However, consumer
spending softened in the third quarter of 2016, falling to a (+2.1%) annual growth rate, down from (+4.3%) in the second quarter.
Spending on durable goods remained strong, while growth in services spending and purchases of nondurable goods weakened.
Microeconomic Trends - Online retail continues to drive growth
Macroeconomic Trends – U.S. Economy Grows, Inflationary Pressures Mount
Source: S&P Capital IQ, Davidson Equity Research, U.S. Census Bureau, U.S. Bureau of Economic Analysis, Statista.
Private and Confidential | 7 Page 7 www.dadavidson.com/Investment-Banking
Middle Market Consumer M&A Deal Activity
Middle Market M&A Transactions
MIDDLE MARKET MERGER & ACQUISITION TRENDS
Middle Market M&A by Industry
Middle Market Consumer EV/EBITDA Multiples
U.S. COMPANIES
Note: Middle-market defined as transactions between $10 and $500 million where pricing is disclosed. Deals in this report are for announced transactions in the quarter of interest involving U.S. based companies. EBITDA multiples greater than 25.0x are not included. Source: S&P Capital IQ.
($ in billions) ($ in billions)
($ in billions)
$4
7.0
$5
9.8
$5
1.8
$7
5.9
$3
9.4
$5
2.8
$5
8.5
$6
9.0
$5
4.9
$6
5.2
$4
5.5
$4
0.3
$3
5.6
$3
4.7
$4
2.3
$4
2.9
$3
2.7
$3
2.8
$2
4.4
656
820 807
1199
597
788
910
989
826 888
449 432 405 457 431 437
367 342 266
0
200
400
600
800
1000
1200
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2012 2013 2014 2015 2016
Volume ($B) Deal Count
$6.6
$1.8
$3.2
$8.6
$5.9
$4.9
$8.0
$3.2
$4.4
$1.0
$2.3
$4.5
$3.8
$2.5
$4.1
$2.0
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
Consumer Energy &Utilities
Financials Healthcare Industrials& Materials
Real Estate Technology& Telecom
Other
Q3 2015 Q3 2016
$22.5
$27.9 $30.1
$28.8
$31.7 $30.3
$6.6 $4.4
308
347 367 380
399 369
80 59 0
100
200
300
400
500
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
2010 2011 2012 2013 2014 2015 Q3 2015 Q3 2016
Volume ($B) Deal Count
10.1x 10.3x
9.0x
12.5x
10.9x
9.6x
11.2x 10.5x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
2010 2011 2012 2013 2014 2015 Q3 2015 Q3 2016
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$1
5.9
$1
4.0
$7
.8
$7
.8
$5
.9
$2
5.3
$7
.9
$1
0.3
$1
2.6
$2
1.6
$1
1.8
$2
6.9
$1
1.4
$2
3.6
$1
7.2
$1
6.6
$6
.4
$1
3.6
$9
.4
$7
.0
$1
.0
$6
.7
$6
.6
0
10
20
30
40
50
60
70
80
90
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2011 2012 2013 2014 2015 2016
$ Value of IPOs # of IPOs
Private Equity Fundraising
Median U.S. EBITDA Multiples (incl. PE buyouts)
MIDDLE MARKET MERGER & ACQUISITION TRENDS CONT.
IPO Offering Breakdown
Median Debt-to-Equity Breakdown
U.S. COMPANIES
Source: Dealogic, PitchBook, S&P LCD.
($ in billions)
4.8
x
5.5
x
5.0
x
6.3
x
5.6
x
5.7
x
5.4
x
3.7
x
4.1
x
3.7
x 3
.9x
4.3
x
4.5
x
5.8
x 8.5x
9.6x
8.7x
10.2x 9.9x 10.2x
11.2x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
2010 2011 2012 2013 2014 2015 YTD 9/2016
Debt / EBITDA Equity / EBITDA Valuation / EBITDA
$1
25
.0
$1
46
.0
$1
41
.0
$8
5.0
$6
6.9
$8
7.2
$1
03
.6
$2
04
.7
$1
94
.9
$1
92
.9
$1
42
.2
178
218 196
112 107
190 204
295 311
287
192
0
50
100
150
200
250
300
350
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD9/2016
Capital Raised # of Funds Closed($ in billions)
61.9%
60.4%
51.3%
59.8%
57.5%
69.5%
50.0%
55.8%
49.4%
56.7%
54.0%
63.8%
50.4%
48.6%
46.9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
20
13
20
14
20
15
20
16
Debt % Equity %
Page 9 www.dadavidson.com/Investment-Banking
MERGER & ACQUISITION SELECTED TRANSACTIONS
Source: S&P Capital IQ.
Target Acquirer Target Description Deal Notes
RECENT M&A DEAL ACTIVITY
Bogart, GA Helsinki, Finland
Manufactures protective sports gear
for professional and college sports
teams. The company offers apparel
and accessories including batting
gloves, wrist guards, elbow guars,
ankle guards, and safety aids
On October 27, Wilson Sporting Goods, a subsidiary of Amer Sports,
acquired the EvoShield brand from EvoShield, LLC for an undisclosed
amount. This transaction includes the EvoShield brand, all EvoShield-
branded products, intellectual property and distribution rights
EvoShield will make a great addition to Wilson’s growing baseball and
softball business segment
Coraopolis, PA Austin, TX
Operates as a specialty retailer of golf
and tennis equipment, apparel,
footwear, and related accessories
Dick’s Sporting Goods has emerged as the winning bidder to acquire
Golfsmith’s U.S. business for approximately $70 million. However, the
deal still requires approval from a U.S. bankruptcy court
Dick’s plans to keep 30 of Golfsmith’s stores open, while shutting down
the rest. The company also plans to retain Golfsmith’s intellectual
property, inventory and 500 of its employees
Salt Lake City, UT Los Angeles, CA
Fast-growing e-commerce company
that designs, produces, and sells
branded home furnishings distributed
through its network of online retail
partners
D.A. Davidson & Co. served as exclusive financial advisor to Walker
Edison Furniture on its acquisition by management and Caltius Capital
Management
Caltius Capital has provided both debt and equity to enable the
transaction and has partnered with Walker Edison’s management team to
help promote strong future growth
Leeds, United Kingdom New York, NY
Designs, produces, and distributes
electrical hair styling products in the
United Kingdom, the republic of
Ireland, and internationally
On October 17, Coty entered into a definitive agreement to acquire Jemella
Limited (dba ghd) from a group of sellers for approximately $512 million.
This represents a revenue multiple of 2.4x
ghd is a well renowned brand that has been expanding into premium retail
and e-commerce. ghd will enable Coty to offer its salon partners and their
clients a more premium range of hair solutions
Philadelphia, PA Chapel Hill, NC
Offers bikes and frames, such as road
bikes, mountain bikes, BMX bikes,
kids bikes, path and pavement bikes,
and bike parts and components, as
well as cycling clothing, shoes and
accessories
D.A. Davidson & Co. acted as the buy-side advisor to Advanced
Sports in its acquisition of Performance Bicycle
Performance Bicycle is the top specialty bicycle retailer in the United
States and will make a great addition to Advanced Sports’ portfolio of
leading bicycle brands
Page 10 www.dadavidson.com/Investment-Banking
MERGER & ACQUISITION SELECTED TRANSACTIONS CONT.
Source: S&P Capital IQ.
Target Acquirer Target Description Deal Notes
RECENT M&A DEAL ACTIVITY
Los Angeles, CA Beijing, China
Designs and merchandises apparel
under a number of well-known and
popular brands, including One World,
Weavers, RAD Clothing and Rules of
Etiquette
Shangying Global Co. acquired One World Star International for $280
million on October 11, 2016
The acquisition involved three companies: Apparel Production Services,
Star Group, and Unger Fabrik/One World Apparel
This transaction will allow Shangying to enter the U.S. market and
diversify into chic fashion
Springfield, MO Sidney, NE
Operates as a specialty retailer and
direct marketer of hunting, fishing,
camping, and related outdoor
merchandise
On October 3, 2016, Cabela agreed to sell its core retail business to the
Bass Pro Group for a transaction value of $4.6 billion. This represents a
revenue multiple of 1.1x and an EBITDA multiple of 9.5x
This acquisition will be significant for both parties as the new merged
entity will be the hunting, fishing, and outdoor powerhouse of the United
States
Ramsey, MN Tokyo, Japan
Manufactures optical lenses. The
company’s products include
polycarbonate, photochromic,
polarized, and high index eyeglass
lenses
On October 12, Hoya Corp. signed a definitive agreement to acquire
Performance Optics, LLC, including its subsidiaries VISION EASE and
Daemyung Optical from Wind Point Partners for $476 million
Performance Optics will expand Hoya’s customer reach and will
strengthen and broaden its portfolio of leading products
Cologne, Germany Paris, France
Manufactures luggage and suitcases.
Its products include polycarbonate
suitcases; aluminum suitcases; and
accessories, including small leather
goods for men and women
On October 4, 2016, LVMH Moët Hennessy Louis Vuitton entered into an
agreement to acquire 80% stake in Rimowa GmbH for $714 million. This
represents a revenue multiple of 2.3x
LVMH will add annual revenues of approximately 400 million euros through
this acquisition
Port Melbourne, Australia San Diego, CA
Launched in 2014, Salty Crew, a
family run business, made an
immediate impact on the surf, fish,
dive and sail world. The company
sells surf apparel and related
accessories throughout California
On October 11, Globe International announced that it will acquire 50% of
the Salty Crew brand for an undisclosed amount
The acquisition will enable Salty Crew to access Globe’s existing
infrastructure, which will further enhance the brand’s awareness around
the world
Shangying
Global Co. Ltd
Performance
Optics, LLC
Page 11 www.dadavidson.com/Investment-Banking
MERGER & ACQUISITION SELECTED TRANSACTIONS CONT.
Source: S&P Capital IQ.
Target Acquirer Target Description Deal Notes
RECENT M&A DEAL ACTIVITY
London, United Kingdom Venice, CA
Subscription service that delivers
razors and other shaving products
Unilever signed a definitive agreement to acquire Dollar Shave Club for
$1 billion on July 20, 2016 with a revenue multiple of 6.6x
Unilever paid a large premium for Dollar Shave Club due to the
company’s brand and customer-relationship skills
This acquisition will give Unilever access to valuable costumer data and
analysis
Columbia, MO Kingsport, TN
London, UK
Manufactures men’s and women’s
clothing, fragrances, and accessories
On July 25, 2016, G-III Apparel Group entered into a definitive agreement
to acquire Donna Karen International from LVMH Moet Hennessy Louis
Vuitton S.E. for $640 million, representing a revenue multiple of 1.4x
New York, NY
Manufactures, designs, and
distributes stainless steel knives and
accessories
On July 15, 2016, Smith & Wesson signed a definitive agreement to
acquire substantially all assets of Taylor Brands for $85 million. This
represents a revenue multiple of 2.2x
Taylor Brands provides Smith & Wesson an opportunity to further develop
and grow its Accessories Division
Houston, TX Gauteng, South Africa
Operates as a specialty retailer of
mattresses, and related products and
accessories in the United States
On August 7, 2016, Steinhoff International Holdings entered into a
definitive agreement to acquire Mattress Frim Holding Corp. for
approximately $2.4 billion, equating to a revenue multiple of 1.2x and an
EBITDA multiple of 16.0x
This acquisition will create the world’s largest bedding giant and will help
Steinhoff diversify sales away from South Africa
Hyde Park, UT Farmington, UT
Manufactures outdoor cooking
instruments. The company also
provides lighting products that include
lanterns and stove lights
Vista Outdoor acquired Camp Chef for a total transaction value of $74
million on September 1, 2016. Camp Chef will be integrated into Vista’s
outdoor products segment
Camp Chef complements Vista’s broad portfolio of 50 brands and
enhances Vista’s position within one of the camping market’s most
attractive categories
Page 12 www.dadavidson.com/Investment-Banking
PUBLIC EQUITY OFFERINGS SELECTED TRANSACTIONS
Source: Dealogic, S&P Capital IQ.
RECENT EQUITY OFFERING ACTIVITY
Fairhaven, MA
Credit Suisse; Daiwa Capital; Deutsche Bank; Jefferies LLC;
JPMorgan; Morgan Stanley; Nomura Securities; UBS Securities;
Wells Fargo; D.A. Davidson & Co.; KeyBanc Capital Markets;
Raymond James; SunTrust Robinson Humphrey
Offer Date Deal Type Issuer Underwriters Gross Proceeds
$378.0mm Initial Public
Offering 10-28-16
Newington, NH
$156.9mm Follow-On
Offering 9-22-16
$141.7mm Initial Public
Offering 9-21-16
$63.0mm Follow-On
Offering 8-08-16
$130.0mm Initial Public
Offering 8-03-16
JPMorgan
JPMorgan; Morgan Stanley; Piper Jaffray; Wells Fargo; William
Blair & Co. LLC; Cowen & Company LLC; BMO Capital; Stifel,
Nicolaus & Company; SunTrust Robinson Humphrey
Merril Lynch, Pierce, Fenner & Smith Inc
Goldman, Sachs & Co.; Merril Lynch, Pierce, Fenner & Smith
Inc.; Jefferies LLC; Morgan Stanley; Evercore Group;
Guggenheim Securities; William Blair & Co. LLC
Oakland, CA
Scotts Valley, CA
Plano, TX
Page 13 www.dadavidson.com/Investment-Banking
PUBLIC COMPANIES: VALUATION DETAILS
Note: EV/EBITDA multiples above 30x and P/E multiples above 40x have been indicated as Not Meaningful ("NM").
Source: S&P Capital IQ, data as of 11/11/16.
VALUATION MULTIPLES ($ IN MILLIONS, EXCEPT PER SHARE VALUES)
Share % of 52 Equity Enterprise EV / Revenue EV / EBITDA P / E
Company Price Week High Value Value (EV) LTM CY 2016 CY 2017 LTM CY 2016 CY 2017 LTM CY 2016 CY 2017
Accessories
Coach, Inc. $36.99 84.6% $10,371 $9,429 2.10x 2.07x 2.01x 10.8x 9.2x 8.4x 26.0x 17.7x 16.3x
Essilor International SA 108.99 80.3% 23,268 26,071 3.41x 3.38x 3.12x 14.2x 14.3x 13.1x 31.6x 25.9x 23.4x
Fossil Group, Inc. 31.74 61.1% 1,528 2,016 0.66x 0.66x 0.66x 7.3x 8.5x 8.4x 14.6x 17.2x 16.4x
Luxottica Group SpA 52.99 74.9% 25,269 26,443 2.68x 2.69x 2.55x 12.5x 12.9x 11.9x 27.6x 27.5x 24.9x
Samsonite International S.A. 3.05 86.5% 4,302 4,865 1.99x 1.79x 1.50x 12.8x 11.5x 8.9x 26.5x 21.1x 17.2x
ZAGG Inc 6.65 52.2% 187 230 0.63x 0.56x 0.50x 5.5x 4.4x 4.2x 16.7x 9.0x 6.3x
Median 2.04x 1.93x 1.76x 11.6x 10.4x 8.7x 26.3x 19.4x 16.8x
Active Apparel
ANTA Sports Products Limited $2.85 90.6% $7,143 $6,364 3.48x 3.26x 2.82x 13.6x 13.1x 11.2x 25.6x 20.6x 17.7x
Billabong International Limited 0.94 34.9% 187 326 0.40x 0.39x 0.38x 7.3x 6.8x 5.7x NM NM 25.0x
Columbia Sportswear Company 58.88 93.5% 4,110 3,926 1.66x 1.62x 1.53x 12.9x 12.4x 11.4x 28.3x 22.4x 20.2x
Kering SA 212.12 94.8% 26,787 32,986 2.52x 2.49x 2.33x 13.0x 13.6x 12.3x 27.1x 19.9x 17.4x
Lululemon Athletica Inc. 57.84 70.7% 7,927 7,391 3.37x 3.16x 2.81x 16.6x 14.9x 13.0x 35.1x 27.3x 23.1x
Under Armour, Inc. 31.82 66.4% 12,522 13,415 2.86x 2.72x 2.21x 23.5x 22.6x 18.8x NM NM 46.0x
V.F. Corporation 57.05 85.0% 23,602 25,953 2.10x 2.13x 2.02x 12.9x 12.7x 11.8x 23.5x 18.3x 16.7x
Youngone Corp. 23.34 49.0% 1,034 1,389 0.86x 0.80x 0.75x 6.1x 6.5x 5.7x 10.4x 8.9x 7.8x
Median 2.31x 2.31x 2.12x 12.9x 12.9x 11.6x 26.4x 20.2x 18.9x
Fashion Apparel
Abercrombie & Fitch Co. $16.28 49.6% $1,102 $989 0.29x 0.29x 0.29x 3.2x 3.5x 3.3x 23.7x 33.0x 21.4x
American Eagle Outfitters, Inc. 18.29 93.6% 3,324 3,077 0.86x 0.84x 0.81x 6.1x 5.8x 5.4x 15.5x 14.0x 13.0x
Cherokee Inc. 9.80 49.7% 85 98 2.80x 2.95x 3.07x 7.4x 7.2x 7.6x 12.1x 15.0x 14.0x
Express Inc. 13.35 61.9% 1,019 969 0.42x 0.44x 0.43x 3.7x 4.5x 4.1x 9.9x 12.6x 11.3x
G-III Apparel Group, Ltd. 31.10 55.6% 1,423 1,378 0.59x 0.56x 0.48x 7.5x 7.0x 6.0x 15.6x 14.4x 13.9x
Gildan Activewear Inc. 25.19 80.4% 5,840 6,429 2.53x 2.47x 2.25x 12.6x 12.1x 10.7x 26.2x 16.9x 14.4x
Hanesbrands Inc. 24.76 77.1% 9,358 13,036 2.22x 2.12x 1.95x 13.2x 12.4x 11.3x 21.0x 13.0x 11.4x
Kate Spade & Company 16.62 62.8% 2,130 2,216 1.65x 1.60x 1.46x 10.5x 9.0x 7.6x 25.2x 25.5x 19.5x
Lands' End, Inc. 17.40 63.0% 557 844 0.61x 0.64x 0.63x 10.1x 12.6x 10.6x 20.5x 40.5x 23.8x
Oxford Industries Inc. 69.94 89.7% 1,173 1,271 1.27x 1.22x 1.13x 9.2x 9.3x 8.3x 19.2x 18.8x 16.7x
Perry Ellis International Inc. 21.18 93.3% 328 391 0.44x 0.44x 0.43x 9.3x 6.5x 6.0x 25.9x 10.7x 9.8x
PVH Corp. 112.08 97.1% 8,992 11,628 1.43x 1.42x 1.36x 11.1x 11.0x 10.2x 23.4x 16.8x 14.9x
Ralph Lauren Corporation 107.10 84.3% 8,803 8,530 1.19x 1.23x 1.31x 9.6x 8.7x 8.6x 26.0x 19.5x 18.8x
The Gap, Inc. 29.07 95.3% 11,584 11,648 0.75x 0.75x 0.76x 5.6x 6.0x 6.0x 13.1x 14.5x 13.7x
Urban Outfitters Inc. 37.87 100.1% 4,439 4,187 1.20x 1.17x 1.11x 8.2x 7.9x 7.5x 19.4x 18.4x 16.7x
Median 1.19x 1.17x 1.11x 9.2x 7.9x 7.6x 20.5x 16.8x 14.4x
Page 14 www.dadavidson.com/Investment-Banking
PUBLIC COMPANIES: VALUATION DETAILS CONT. VALUATION MULTIPLES ($ IN MILLIONS, EXCEPT PER SHARE VALUES)
Note: EV/EBITDA multiples above 30x and P/E multiples above 40x have been indicated as Not Meaningful ("NM").
Source: S&P Capital IQ, data as of 11/11/16.
Share % of 52 Equity Enterprise EV / Revenue EV / EBITDA P / E
Company Price Week High Value Value (EV) LTM CY 2016 CY 2017 LTM CY 2016 CY 2017 LTM CY 2016 CY 2017
Beauty
Amorepacific Corp. $313.51 82.6% $20,184 $20,211 4.00x 4.09x 3.47x 22.0x 22.0x 18.1x NA 33.5x 26.3x
Art & Fragrance SA 27.70 97.8% 137 218 1.58x 1.58x 1.52x 11.1x 12.7x 10.6x 20.6x 20.7x 14.9x
Beiersdorf AG 83.86 85.9% 19,020 17,146 2.32x 2.35x 2.25x 14.2x 13.8x 12.9x 29.2x 25.7x 23.9x
Coty Inc. 18.66 59.0% 13,926 18,024 4.18x 3.29x 2.13x 24.1x 17.9x 11.0x 29.9x 23.2x 18.0x
Edgewell Personal Care Company 81.31 92.4% 4,793 5,899 2.50x 2.49x 2.43x 13.7x 13.4x 12.1x 29.5x 22.8x 20.4x
e.l.f. Beauty, Inc. 27.00 93.4% 1,198 1,339 6.12x 5.88x 4.76x NM 26.5x 21.9x 21.8x NM NM
Helen of Troy Limited 85.95 80.7% 2,396 2,919 1.89x 1.88x 1.83x 13.7x 12.1x 11.3x 24.9x 13.3x 13.2x
Henkel AG & Co. KGaA 119.30 89.5% 47,250 49,599 2.42x 2.44x 2.25x 12.9x 12.7x 11.8x 25.5x 20.9x 19.2x
Inter Parfums Inc. 32.40 92.4% 1,008 998 1.98x 1.95x 1.81x 13.3x 13.1x 11.5x 31.3x 29.5x 25.3x
Jacques Bogart SA 14.01 87.8% 220 232 2.05x 2.12x 2.04x 14.2x 13.1x 12.4x 27.1x 23.1x 21.5x
Johnson & Johnson 118.47 94.0% 322,301 308,806 4.31x 4.28x 4.08x 13.0x 12.2x 11.4x 26.8x 17.7x 16.6x
Kao Corporation 47.58 77.6% 23,450 22,258 1.54x 1.61x 1.55x 9.3x 9.5x 8.9x 21.5x 20.8x 19.0x
KOSE Corp. 79.04 62.8% 4,509 3,893 1.55x 1.62x 1.52x 9.0x 9.3x 8.4x 24.3x 22.7x 19.8x
L Brands, Inc. 69.17 69.3% 19,781 24,228 1.96x 1.93x 1.87x 9.1x 9.5x 9.0x 16.9x 18.6x 17.3x
L'Occitane International S.A. 1.99 90.1% 2,911 2,533 1.73x 1.81x 1.64x 10.0x 9.9x 9.2x 26.9x 21.7x 19.7x
L'Oreal SA 170.43 88.3% 95,379 95,754 3.40x 3.43x 3.26x 16.4x 16.0x 14.9x 29.1x 24.4x 22.8x
Natura Cosméticos SA 7.14 72.8% 3,073 3,732 1.52x 1.65x 1.47x 10.0x 9.8x 8.1x 32.8x 39.4x 16.6x
Oriflame Holding AG 26.35 70.9% 1,432 1,476 1.06x 1.10x 1.00x 9.6x 9.4x 8.1x 21.4x 19.2x 15.9x
Revlon, Inc. 29.00 76.3% 1,522 4,187 2.04x NA NA 12.5x NA NA 15.6x NA NA
Sally Beauty Holdings Inc. 28.46 86.4% 4,152 5,845 1.48x 1.46x 1.41x 9.5x 9.5x 9.2x 18.4x 16.3x 15.1x
Shiseido Company, Limited 26.02 91.7% 10,390 10,418 1.27x 1.31x 1.21x 13.1x 15.6x 12.3x 48.0x 35.6x 35.6x
The Estée Lauder Companies Inc. 78.36 80.4% 28,714 30,029 2.66x 2.63x 2.46x 14.0x 14.0x 12.6x 28.3x 24.6x 21.7x
ULTA Salon, Cosmetics & Fragrance, Inc. 238.87 85.7% 14,898 14,594 3.38x 3.07x 2.60x 19.3x 17.5x 14.4x 42.5x 37.9x 30.5x
Unilever PLC 39.78 83.1% 112,933 126,795 2.17x 2.29x 2.14x 13.3x 12.9x 11.8x 24.4x 20.3x 18.4x
Median 2.04x 2.12x 2.04x 13.1x 12.9x 11.5x 26.8x 22.7x 19.5x
Home
Bassett Furniture Industries, Incorporated $28.55 84.8% $308 $271 0.63x 0.63x 0.58x 7.2x 6.9x 6.2x 20.2x 20.7x 17.6x
Dorel Industries Inc. 27.48 96.2% 897 1,358 0.52x 0.52x 0.50x 8.2x 7.5x 6.8x 18.7x 12.4x 10.3x
Ethan Allen Interiors Inc. 33.40 90.8% 924 896 1.12x 1.11x 1.07x 8.4x 8.5x 7.6x 17.6x 17.3x 15.1x
Ekornes ASA 12.09 97.1% 445 437 1.12x 1.16x 1.09x 5.6x 6.0x 5.8x 12.3x 11.9x 10.5x
Flexsteel Industries Inc. 48.27 89.0% 375 333 0.68x NA NA 8.0x NA NA 17.7x NA NA
Hooker Furniture Corp. 27.50 76.5% 317 329 0.86x 0.58x 0.55x 9.9x NA NA 17.8x 15.3x 12.1x
La-Z-Boy Incorporated 25.75 82.5% 1,266 1,145 0.75x 0.75x 0.73x 7.5x 7.6x 7.0x 17.0x 16.6x 14.8x
Leggett & Platt, Incorporated 47.88 87.7% 6,401 7,140 1.88x 1.89x 1.82x 11.9x 11.6x 11.1x 23.1x 18.9x 18.1x
Overstock.com Inc. 17.35 96.8% 440 364 0.21x 0.20x 0.19x NM NA NA NM NA NA
Select Comfort Corporation 21.45 75.7% 964 913 0.75x 0.70x 0.64x 12.7x 6.4x 5.5x NM 18.1x 13.2x
Steinhoff International Holdings N.V. 4.82 71.3% 19,719 22,309 1.54x 1.28x 1.04x 11.8x 11.6x 8.8x 20.6x 14.0x 12.3x
Tempur Sealy International Inc. 61.06 74.2% 3,535 5,141 1.64x 1.66x 1.61x 10.6x 10.0x 9.3x 17.3x 15.5x 13.3x
Walker Greenbank plc 2.53 90.6% 176 173 1.55x 1.48x 1.12x 18.7x 10.8x 7.9x 40.4x 16.6x 13.1x
Wayfair Inc. 35.71 71.4% 3,055 2,791 0.89x 0.83x 0.64x NM NM NM NM NM NM
Williams-Sonoma Inc. 52.12 74.9% 4,614 4,628 0.91x 0.90x 0.86x 7.0x 6.9x 6.5x 15.3x 15.1x 13.9x
Median 0.89x 0.86x 0.80x 8.4x 7.6x 7.0x 17.8x 16.1x 13.2x
Page 15 www.dadavidson.com/Investment-Banking
PUBLIC COMPANIES: VALUATION DETAILS CONT. VALUATION MULTIPLES ($ IN MILLIONS, EXCEPT PER SHARE VALUES)
Note: EV/EBITDA multiples above 30x and P/E multiples above 40x have been indicated as Not Meaningful ("NM").
Source: S&P Capital IQ, data as of 11/11/16.
Share % of 52 Equity Enterprise EV / Revenue EV / EBITDA P / E
Company Price Week High Value Value (EV) LTM CY 2016 CY 2017 LTM CY 2016 CY 2017 LTM CY 2016 CY 2017
Equipment
Accell Group NV $24.16 94.1% $624 $799 0.69x 0.71x 0.67x 9.5x 9.5x 8.5x 15.3x 14.1x 12.2x
Acme United Corp. 21.95 98.7% 73 106 0.88x 0.86x 0.79x 9.6x 9.4x 8.3x 15.8x 13.5x 12.6x
Acushnet Holdings Corp. 18.46 NA 1,368 2,272 1.47x 1.46x 1.43x 13.6x 10.6x 9.8x 13.3x 11.8x 17.5x
Amer Sports Corp. 26.58 85.3% 3,073 3,796 1.28x 1.32x 1.22x 11.9x 12.8x 11.1x 23.5x 20.0x 16.5x
Arctic Cat Inc. 15.11 67.1% 197 234 0.42x 0.40x 0.36x NM NM 7.1x NM NM 26.2x
Black Diamond, Inc. 6.20 104.2% 186 112 0.74x 0.75x 0.72x NM NM 13.6x NM NM 22.1x
Brunswick Corporation 47.34 85.1% 4,246 4,259 0.97x 0.94x 0.88x 7.7x 7.3x 6.4x 16.1x 13.6x 11.9x
Callaway Golf Co. 12.07 99.9% 1,136 1,021 1.19x 1.16x 1.11x 21.2x 15.7x 13.6x NM 23.0x 33.9x
Dorel Industries Inc. 27.48 96.2% 897 1,358 0.52x 0.52x 0.50x 8.2x 7.5x 6.8x 18.7x 12.4x 10.3x
Escalade Inc. 12.80 92.6% 183 216 1.31x 1.29x 1.26x 11.3x 10.2x 9.9x 20.3x 15.6x 14.1x
Fox Factory Holding Corp 23.20 98.6% 855 912 2.36x 2.29x 2.10x 15.5x 13.1x 11.7x 29.6x 19.1x 17.2x
Giant Manufacturing Co. Ltd. 6.44 86.2% 2,417 2,423 1.32x 1.32x 1.27x 15.0x 15.7x 13.1x 27.9x 24.3x 20.3x
GoPro, Inc. 10.28 44.8% 1,445 1,220 1.13x 0.99x 0.83x NM NM NM NM NM NM
Johnson Outdoors Inc. 38.49 99.8% 378 310 0.70x 0.70x 0.69x 7.0x 7.1x 6.8x 17.8x NA NA
Marine Products Corp. 9.55 99.5% 366 350 1.49x 1.37x 1.25x 14.2x 12.3x 9.9x 24.5x 19.1x 15.2x
Mizuno Corporation 5.25 90.6% 663 818 0.43x 0.44x 0.44x 13.7x 11.9x 10.5x NM NM 22.0x
Nautilus Inc. 16.90 67.6% 526 535 1.37x 1.30x 1.19x 9.0x 8.5x 7.5x 16.3x 15.1x 13.6x
Performance Sports Group Ltd. 0.00 0.0% 160 628 1.04x 1.16x 1.08x 18.8x NM 11.1x 0.0x 0.0x 0.0x
Polaris Industries Inc. 89.81 81.4% 5,754 6,068 1.35x 1.39x 1.28x 10.6x 11.3x 8.7x 24.9x 25.8x 17.5x
Shimano Inc. 167.64 90.4% 15,540 14,001 4.25x 4.57x 4.23x 16.6x 18.3x 16.1x 37.4x 34.0x 27.7x
Vista Outdoor Inc. 37.87 70.2% 2,285 3,358 1.33x 1.28x 1.17x 9.3x 8.9x 7.9x 13.7x 14.6x 12.7x
Median 1.19x 1.16x 1.11x 11.6x 10.6x 9.9x 18.3x 15.3x 16.5x
Footwear
Adidas AG $144.71 83.3% $28,987 $29,460 1.40x 1.41x 1.30x 14.7x 14.6x 13.0x 29.0x 27.4x 24.1x
ASICS Corp. 21.48 79.1% 4,077 4,121 1.03x 1.10x 1.06x 13.3x 13.7x 11.7x 32.3x 31.8x 23.5x
Caleres, Inc. 28.33 89.2% 1,216 1,248 0.49x 0.49x 0.47x 7.2x 6.3x 5.9x 16.3x 14.0x 12.5x
Crocs, Inc. 8.55 68.2% 629 660 0.62x 0.64x 0.62x 28.9x 16.3x 10.5x NM NM 29.5x
Deckers Outdoor Corp. 60.17 86.0% 1,931 2,131 1.16x 1.17x 1.14x 9.0x 9.4x 8.5x 17.6x 15.9x 13.3x
Li Ning Company Limited 0.72 93.8% 1,361 1,312 1.16x 1.11x 0.98x 16.9x 11.9x 8.1x NM 32.2x 17.9x
NIKE, Inc. 50.77 74.4% 84,554 81,955 2.48x 2.45x 2.25x 16.4x 16.4x 13.9x 31.5x 23.0x 20.4x
PUMA SE 246.39 91.6% 3,681 3,461 0.87x 0.89x 0.83x 16.9x 17.3x 13.4x NM NM 35.8x
Rocky Brands, Inc. 10.80 77.4% 80 107 0.41x 0.41x 0.41x 12.2x 10.3x 6.2x NM NM 12.3x
Skechers U.S.A., Inc. 21.71 63.3% 3,427 2,915 0.82x 0.83x 0.77x 6.3x 6.6x 6.2x 16.8x 12.7x 11.6x
Steven Madden, Ltd. 39.45 100.6% 2,392 2,299 1.63x 1.63x 1.55x 11.8x 11.9x 11.2x 21.8x 19.5x 17.9x
Weyco Group Inc. 29.74 102.4% 311 323 1.07x 1.07x 1.04x 11.6x 11.6x 10.8x 20.6x NA NA
Wolverine World Wide Inc. 23.25 91.0% 2,294 2,824 1.12x 1.14x 1.16x 11.2x 10.8x 9.8x 20.6x 17.4x 15.2x
Median 1.07x 1.10x 1.04x 12.2x 11.9x 10.5x 20.6x 19.5x 17.9x
Page 16 www.dadavidson.com/Investment-Banking
PUBLIC COMPANIES: VALUATION DETAILS CONT.
* Aggregate average and median of all 10 public equity comparables groups.
Note: EV/EBITDA multiples above 30x and P/E multiples above 40x have been indicated as Not Meaningful ("NM").
Source: S&P Capital IQ, data as of 11/11/16.
VALUATION MULTIPLES ($ IN MILLIONS, EXCEPT PER SHARE VALUES)
Share % of 52 Equity Enterprise EV / Revenue EV / EBITDA P / E
Company Price Week High Value Value (EV) LTM CY 2016 CY 2017 LTM CY 2016 CY 2017 LTM CY 2016 CY 2017
Sporting Goods Retailers
Big 5 Sporting Goods Corp. $19.35 101.0% $424 $445 0.43x 0.43x 0.42x 10.3x 8.6x NA 28.6x 24.7x 20.0x
Cabela's Incorporated 61.18 96.2% 4,190 8,937 2.13x 2.11x 2.00x 19.0x 18.7x 16.5x 22.5x 22.2x 18.9x
Dick's Sporting Goods Inc. 59.44 96.0% 6,711 6,757 0.90x 0.86x 0.79x 9.3x 8.9x 7.6x 20.6x 19.5x 16.0x
Hibbett Sports, Inc. 43.75 100.7% 962 919 0.95x 0.94x 0.89x 7.1x 7.3x 7.0x 14.4x 14.6x 13.8x
Sportsman's Warehouse Holdings, Inc. 7.91 55.8% 334 544 0.71x 0.69x 0.61x 7.4x 6.7x 6.0x 11.6x 10.6x 9.0x
Tilly's, Inc. 9.97 91.8% 285 189 0.34x 0.34x 0.33x 4.7x 5.3x 4.8x 26.8x 36.9x 31.3x
West Marine Inc. 9.60 94.7% 239 146 0.21x 0.21x 0.20x 4.8x 4.5x 3.7x NM NM 30.6x
Zumiez, Inc. 24.50 98.4% 608 556 0.70x 0.67x 0.63x 8.5x 8.7x 8.1x 27.7x 27.7x 23.2x
Median 0.70x 0.68x 0.62x 7.9x 7.9x 7.0x 22.5x 22.2x 19.4x
Consumer Retailers
Amazon.com, Inc. $739.01 87.2% $351,153 $351,794 2.75x 2.57x 2.09x NM 23.4x 17.8x NM NM NM
ASOS Plc 59.78 86.8% 4,964 4,746 2.50x 2.62x 2.01x NM NM 28.9x NM NM NM
eBay Inc. 28.64 86.3% 32,017 33,003 3.71x 3.67x 3.51x 10.9x 9.5x 8.9x 23.5x 15.2x 13.7x
Finish Line Inc. 22.03 89.8% 894 779 0.40x 0.40x 0.39x 6.7x 5.5x 5.0x 21.9x 15.6x 13.1x
Foot Locker, Inc. 71.53 99.4% 9,531 8,715 1.15x 1.12x 1.07x 7.8x 7.5x 7.0x 16.4x 15.0x 13.7x
Genesco Inc. 63.80 86.0% 1,316 1,413 0.47x 0.49x 0.48x 5.9x 6.7x 6.1x 14.1x 16.4x 14.7x
H & M Hennes & Mauritz AB (publ) 27.53 76.3% 45,570 45,026 2.05x 2.13x 1.91x 12.6x 13.1x 11.4x 26.3x 22.4x 19.4x
Industria de Diseno Textil SA 33.07 86.2% 102,939 97,639 3.98x 3.87x 3.48x 18.3x 17.3x 15.2x 38.1x 29.5x 25.8x
Winmark Corp. 106.80 97.5% 440 487 7.35x NA NA 12.8x NA NA 21.1x NA NA
Median 2.50x 2.35x 1.96x 10.9x 9.5x 10.1x 21.9x 16.0x 14.2x
Tactical
BAE Systems plc $7.43 93.5% $23,578 $26,008 1.15x 1.12x 1.07x 11.9x 9.6x 8.9x 26.4x 14.9x 13.8x
The Boeing Company 148.52 98.6% 91,661 92,549 0.98x 0.98x 0.99x 12.1x 12.2x 8.8x 26.1x 21.0x 15.8x
Cobham plc 2.04 53.1% 3,453 4,558 1.77x 1.84x 1.76x 10.1x 10.6x 9.0x NM 13.7x 12.9x
General Dynamics Corporation 168.55 101.0% 51,327 52,910 1.71x 1.68x 1.66x 11.3x 11.0x 10.9x 20.3x 17.2x 16.8x
Honeywell International Inc. 113.25 94.4% 86,311 93,755 2.39x 2.37x 2.35x 12.0x 11.6x 10.9x 21.3x 17.1x 16.0x
Lockheed Martin Corporation 259.17 97.1% 75,932 87,448 1.73x 1.87x 1.76x 12.7x 12.9x 12.6x 22.6x 21.2x 20.6x
MSA Safety Incorporated 62.11 103.1% 2,335 2,706 2.32x 2.32x 2.24x 13.2x 12.7x 11.7x 23.9x 22.3x 19.8x
Orbital ATK, Inc. 81.61 86.0% 4,779 6,312 1.36x 1.42x 1.37x 10.1x 9.4x 9.0x 22.3x 14.8x 13.6x
Oshkosh Corporation 65.71 102.3% 4,696 5,221 0.83x 0.84x 0.78x 10.0x 10.1x 9.0x 23.3x 21.5x 18.4x
Smith & Wesson 21.24 68.1% 1,195 1,152 1.47x 1.28x 1.21x 5.2x 4.5x 4.7x 11.0x 8.5x 8.9x
Sturm, Ruger & Co. Inc. 47.50 60.8% 901 800 1.22x NA NA 5.0x NA NA 11.3x NA NA
TASER International Inc. 27.18 90.1% 1,421 1,325 5.47x 5.15x 4.40x NM NM 27.5x NM NM NM
Median 1.59x 1.68x 1.66x 11.3x 10.8x 9.0x 22.4x 17.2x 15.9x
Agg. Median* 1.33x 1.30x 1.21x 11.1x 10.6x 9.1x 21.9x 18.8x 16.7x
Page 17 www.dadavidson.com/Investment-Banking
ABOUT D.A. DAVIDSON & CO.
D.A. DAVIDSON & CO.
INVESTMENT BANKING OFFICE LOCATIONS
Baltimore 111 S. Calvert Street, Suite 2830
Baltimore, Maryland 21202
(443) 610-6217
Chicago 30 N. LaSalle, Suite 1600
Chicago, Illinois 60602
(312) 525-2777
Denver 1550 Market Street, Suite 300
Denver, Colorado 80202
(303) 571-6100
Great Falls 8 Third Street North
Great Falls, Montana 59401
(406) 268-3029
Orange County 611 Anton Boulevard, Suite 600
Costa Mesa, California 92626
(714) 327-8800
Portland Two Centerpointe, Suite 450
Lake Oswego, Oregon 97035
(503) 603-3060
Salt Lake City 110 S. Regent Street, Suite 410
Salt Lake City, Utah 84111
(801) 333-3123
Seattle 701 5th Ave. Suite 4050
Seattle, Washington 98104
(206) 903-8669
This material is for your information, and w e are not soliciting any action based
upon it. This material should not be read as advice or recommendations. It has
not been prepared taking into account any person’s particular objectives or
needs. Any person should consider w hether the information is appropriate to
their needs or seek advice before making a decision based on this information.
The material is based upon information that w e consider reliable, but w e do not
represent that it is accurate or complete, and it should not be relied upon as
such. Opinions expressed, unless otherw ise indicated, are our current opinions
as of the date appearing on this material only. No part of this material may be
copied, photocopied or duplicated in any form by any means or redistributed
w ithout D.A. Davidson & Co.’s prior w ritten consent.
D.A. Davidson & Co.'s Investment Banking Group is dedicated to helping
its clients achieve their strategic and financial objectives, while maximizing
stakeholder value. With highly experienced investment banking
professionals, we bring world class skills and senior-level attention to every
transaction. D.A. Davidson’s Active Lifestyle Group is dedicated to
delivering these services to companies in the following sectors:
Accessories, Active Apparel, Fashion Apparel, Beauty, Home, Equipment,
Footwear, Sporting Goods Retailers, Consumer Retailers and Tactical.
For more information visit www.davidson.com/investment-banking.
About D.A. Davidson Investment Banking
About D.A. Davidson Companies
Founded in 1935, D.A. Davidson Companies has approximately $45.0
billion in assets under management and administration and employs over
1,340 people across 23 states. D.A. Davidson & Co.’s Investment Banking
group provides full-service underwriting and advisory services for
corporations and institutions globally, including public offerings, mergers
and acquisitions, and private placements. D.A. Davidson & Co.’s full-
service platform allows investment banking clients to benefit from the firm’s
capital market capabilities, including research, corporate services, and
institutional sales and trading. D.A. Davidson & Co. is a member of SIPC.