Consumer Monthly July 2015

Consumer Monthly
July 2015
Consumer Headline Transactions
Target
Acquiror
Acquisition Synopsis
Gift & Home Décor
• Lone Star Funds, a private equity firm, agreed to acquire Balta Group from Doughty Hanson
and Management
• Balta Group, based in Belgium, is Europe's leading manufacturer and marketer of textile
floor coverings
Food & Beverage
• WhiteWave Foods (NYSE:WWAV), a marketer of food and beverage products, agreed to acquire Vega for
approximately $550 million, representing a 5.5x EV/Revenue multiple
• Vega is Canadian marketer of plant-based nutrition products including powdered shakes and
snack bars
Apparel &
• K-Swiss Inc., a marketer of footwear, apparel, and accessories, acquired One Distribution from Bertram
Accessories
Capital and private investors
• One Distribution is a skate-inspired apparel and footwear manufacturer and parent company of KR3W
Denim Co. (KR3W) and SUPRA Footwear (SUPRA) brands
Recreational
• One Industries, a marketer of protective gear, helmets, gloves, graphics and racewear for action sports,
Products
acquired Bravo Sports from Swander Pace Capital
• Bravo Sports is a provider of outdoor recreational and sporting goods including skateboards, scooters,
skates, trampolines and instant canopies
Personal Care
• Coty Inc. (NYSE:COTY), a marketer of cosmetic products, agreed to acquire three beauty businesses from
Procter & Gamble (NYSE:PG) for approximately $12.5 billion
• Procter & Gamble's three beauty businesses comprise 43 brands of hair-care, fragrance and
Three Beauty Businesses
cosmetics products
Home, Garden & Pet
• Centerbridge Partners, a private equity firm, agreed to acquire KIK Custom Products from CI
Capital Partners
• KIK Custom Products is a manufacturer and marketer of household, personal care and pool treatment
products
Enterprise Value / LTM Revenue
Enterprise Value / LTM EBITDA
20.0x
2.5x
2.4x
2.0x
1.4x
1.0x
14.3x
15.0x
3.0x
1.8x
1.7x
EV / LTM EBITDA
EV / LTM Revenue
4.0x
12.1x
10.0x
0.9x
9.7x
0.0
Gift & Home
Décor
Food &
Beverage
Gift & Home
Décor
Apparel & Recreational Personal Care
Home,
Accessories
Products
Garden & Pet
LTM Revenue Growth
Food &
Beverage
2.9%
2.4%
2.0%
0.8%
0.0%
Gift & Home
Décor
Food &
Beverage
Apparel & Recreational Personal Care
Home,
Accessories
Products
Garden & Pet
LTM Revenue Growth
4.0%
LTM
Gross
Margin
LTM
Gross
Margin
LTM
Gross
Margin
5.8%
6.0%
20.0%
4.0%
20.0%
20.0%
10.0%
10.0%
2.0%
10.0%
7.7%
38.4%
38.4%
38.4%
9.8%
9.8%
9.8%
48.1%
48.1%
48.1%
36.9%
36.9%
36.9%
15.7%
15.7%
15.7%
2.4%
5.8%
13.4%
13.4%
13.4%
Beverage
Accessories
50.0%
50.0%
50.0%
8.0%
36.1%
36.1%
36.1%
12.1%
12.1%
12.1%
35.5%
35.5%
35.5%
17.3%
17.3%
17.3%
0.8%
0.0%
0.0%
Gift & Home Décor
Apparel & Accessories
Personal Care
0.0%
0.0%
Gift & Home Décor
Apparel & Accessories
Personal Care
Gift &
Home
Décor FoodApparel
& Accessories
Personal
Gift
& Home
&
Apparel
& Recreational
PersonalCare
Care
Décor
60.0%
60.0%
60.0%
53.3%
53.3%
53.3%
Products
14.7%
14.7%
2.9%
14.7%
40.0%
40.0%
40.0%
30.0%
30.0%
30.0%
20.0%
20.0%
20.0%
10.0%
10.0%
10.0%
LTM
EBITDA
Margin
LTM
EBITDA
Margin
LTM
EBITDA
Margin
50.0%
50.0%
50.0%
8.0%
40.0%
40.0%
40.0%
6.0%
30.0%
30.0%
30.0%
8.0%
7.7%
Apparel & Recreational Personal Care
Home,
Accessories
Products
Garden & Pet
LTM Gross & EBITDA Margins
60.0%
60.0%
10.0%
60.0%
10.0%
LTM Revenue Growth
12.2x
12.0x
5.0x
0.0
8.0%
12.4x
0.0%
0.0%
0.0%
Home,
Garden & Pet
Note: EBITDA Margins in red
LTM Stock Price Index
Share Price Index
130%
116% Gift & Home Décor
110% Recreational Products
120%
109% Home, Garden & Pet
110%
106% Food & Beverage
100%
105% Personal Care
90%
105% S&P 500
80%
Jul-14
103% Apparel & Accessories
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15 Mar-15
Apr-15
May-15
Jun-15
Selected Consumer Transactions
Gift & Home Décor
Target
Acquiror
Transaction Description
Select-o-pedic
Steinhoff International
Holdings Ltd.
Food & Beverage
Target
Acquiror
Steinhoff, a South African provider of furniture and
Garden Fresh Salsa
Campbell Soup
Campbell Soup, a provider of food products, acquired
Transaction Description
household goods, acquired Select-o-pedic, an Australian
Company, Inc.
Company (NYSE:CPB)
Garden Fresh, a marketer of salsa, hummus and tortilla
provider of bedding solutions
chips,
for
$231
million,
representing
a
2.1x
EV/Revenue multiple
Gracious Home
Private Investors
Dottie Mattison, former Wal-Mart executive, and real-
Medora Snacks, LLC and Permira Advisers Ltd.
Permira, a UK based private equity firm, agreed to
estate executive David Mitchel, acquired Gracious
Ideal Snacks Corporation
acquire Medora, a provider of branded better-for-you
Home, a marketer of home décor products
snacks, and Ideal, a leading contract manufacturer of
snacks
Apparel & Accessories
Target
Acquiror
Zanella Ltd.
Tengram Capital
Tengram Capital, a private equity firm, agreed to acquire
Transaction Description
Partners, LLC
Zanella, a luxury menswear brand
Recreation Products
Target
Acquiror
Field Logic, Inc.
FeraDyne Outdoors, LLC FeraDyne Outdoors, a marketer of broad-heads, bow-
Transaction Description
hunting
accessories
and
bow-fishing
equipment,
acquired Field Logic, a marketer of archery targets and
accessories
Cardinal Industries, Inc.
Spin Master Ltd.
Spin Master, a Canadian toy manufacturer, agreed to
Masai Clothing Company Silverfleet Capital
Silverfleet Capital, a UK based private equity firm,
Aps
agreed to acquire Masai Clothing Company, a Denmark
acquire Cardinal Industries, a toy company, for $70
based marketer of clothing for the adult and fashion-
million, representing a 1.4x EV/Revenue multiple
Partners
conscious woman
Personal Care
Target
Acquiror
Dermalogica, Inc.
Unilever plc (LSE:ULVR)
Too Faced Cosmetics,
General Atlantic LLC
Inc.
Home, Garden & Pet
Transaction Description
Target
Acquiror
Unilever, a UK based provider of food, home and
Jrco Inc.
Great Northern
Great Northern, a distributor of outdoor equipment,
personal care products, agreed to acquire Dermalogica,
Equipment Distributing,
acquired Jrco, a
a manufacturer of skin care products
Inc.
outdoor power equipment and lawn care professionals
E.G.L. Homecare Ltd
E.G.L. Homecare, a UK based provider of cleaning
General Atlantic, a private equity firm, acquired Too
Ramon Hygiene
Faced Cosmetics, a manufacturer and distributor of
Products
Transaction Description
manufacturer of attachments for
products, acquired Ramon Hygiene Products, a UK
cosmetics
based manufacturer of cleaning cloths and household
products
Selected TM Capital Consumer Experience
New York
641 Lexington Avenue
30th Floor
New York, NY 10022
Tel: 212.809.1360
Boston
201 Washington Street
32nd Floor
Boston, MA 02108
Tel: 617.259.2200
TM Capital’s Consumer Industry Contacts
James S. Grien
Craig M. Gibson
Philip S. Krieger
Managing Director
jgrien@tmcapital.com
404-995-6235
Managing Director
cgibson@tmcapital.com
617-259-2204
Vice President
pkrieger@tmcapital.com
404-995-6242
Atlanta
3575 Piedmont Rd NE
Suite 1010
Atlanta, GA 30305
Tel: 404.995.6230
www.tmcapital.com