Consumer Products and Retail Quarterly update · 2020-03-22 · Co-Founders Bruce and Heather...

Consumer Products and RetailQuarterly update

Q3 2018

Deloitte Corporate Finance LLC | www.investmentbanking.deloitte.com

Quarterly update | Q3 2018 | Consumer Products and Retail

www.investmentbanking.deloitte.com |

Consumer Products and Retail trends

Who we are

Deloitte Corporate Finance LLC is a leading global middle market M&A advisor. The firm’s professionals have extensive knowledge of and transaction experience in the Consumer Products and Retail space.

Contacts

Lorin DeMordauntManaging [email protected]+1 (704) 333-0591

Matt PreeceManaging [email protected]+1 (704) 731-7186

In the news

August 16, 2018 10 – Boardroom Salon LLC (d/b/a Boardroom Salon for Men) announced the closing of an investment by affiliates of LightbayCapital (Lightbay) for an undisclosed amount. Under the terms of the transaction, LightBay will own a majority stake in the company, with Co-Founders Bruce and Heather Schultz retaining significant ownership. As a result of the investment, Boardroom expects to accelerate its growth plans by significantly expanding the number of salons and markets in which it operates. Deloitte Corporate Finance LLC served as the sole financial advisor to Boardroom Salon LLC.

July 30, 201811,12 – On July 30, 2018, US Foods Inc. (NYSE: USFD)(US Foods) announced the acquisition of Services Group of America’s Food Group of Companies (SGA’s Food Group of Companies) for $1.8 billion in an all cash deal representing a 2018(E) EBITDA multiple of 14.6x, or 8.6x when adjusted for tax step-up and run-rate synergies. US Foods management expects to benefit from roughly $260 million in estimated present value of cash tax benefits and approximately $55 million in annual run-rate cost synergies by the end of fiscal 2022. The acquisition will significantly increase US Foods’ reach across key markets in the attractive growing Northwest region of the U.S. and adds one of the most well-regarded regional distributors to the company.

In this update

• Consumer trends

• Economic outlook

• Industry analysis

• Select M&A transactions

• Appendix

This update will focus on news and trends in the following areas:

• Food & Beverages

• Products & Durables

• Restaurant & FoodServices

• Specialty RetailMeat alternatives that bleed8,9

Continued customer interest in alternative proteins, driven by health-, environmental-, and socially-conscious individuals has driven growth in the sector as demand for in-home consumption of meat alternatives has grown 24 percent since 2015. New meat alternatives have increased in popularity as newer technology has made it possible to create alternatives to burgers, chicken strips, and steaks consisting of lab-grown meat and high-tech vegetable mashes with new “bloody” versions, including beet juice, in attempts to appeal to carnivores.

The Future is sparkling1,2,3

As fewer consumers are drinking soda, filling the void (and then some) is sparkling water. Americans will drink approximately 821 million gallons of sparkling water in 2018, about three times American consumption in 2008. With sales of traditional sparkling water totaling $2.7 billion this year, alcoholic sparkling water also continues to gain traction with 2018 annual sales totaling $295 million, up from $11 million in 2016. The increase in sales has spurred an increase in M&A activity, with one notable transaction in 2018 being Hiball, a growing caffeinated sparkling water, recently being acquired by Anheuser-Busch.

Luxury remains Vogue6,7

The luxury fashion and accessories sector has experienced 42 percent growth since 2017, making luxury apparel one of the top performing sectors in the consumer space. Companies in the sector have continued to show an ability to respond to cultural trends, retaining an authentic and original feel that has allowed them to grow while still demanding a premium for their name brand products. Going forward, the future success of these companies will likely depend on the effectiveness of their outreach and early marketing to younger generations.

Smart(phone) shoppers4,5

Online shopping via mobile devices is expected to grow 16 percent, up from 12 percent in 2017. The trend is largely driven by users spending increased time on mobile devices, forcing retailers to pivot their efforts to reach consumers by way of mobile media. The trend has also led many social media apps to build out their mobile commerce capabilities this year in advance of what is expected to be a strong Christmas season for retailers. This trend is especially true for Generation Z, with half of the demographic planning to complete 100 percent of their shopping online with a smartphone.

Footnotes: (i) Over the year ended June 30. (ii) Over the year ended July 14.


Macroeconomic and Consumer Products and Retail Sector Outlook


Macroeconomic and Consumer Products and Retail sector outlook

US Treasury yield curve2

(nominal vs. real)US gross domestic product1

US per capita disposable income5 Monthly total US retail sales6

US unemployment rate3 ISM non-manufacturing indexand consumer confidence index4

Initial jobless claims Unemployment rate (%)

$40.0

$44.0

$32.0

$34.0

$36.0

$38.0

$40.0

$42.0

$44.0

$46.0

$ in

th

ou

san

ds

$0.0

$5.0

$10.0

$15.0

$20.0

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

$ i

n t

ril

lio

ns

Yo

Y p

ercen

t ch

an

ge

GDP ($ in trillions) YoY % growth (adj. for inflation)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

In

terest ra

te

Real yield (%) Nominal yield (%)

200

250

300

350

400

450

500

550

600

4.0%

6.0%

8.0%

10.0%

Jo

ble

ss c

laim

s (th

ou

san

ds)

% u

nem

plo

yed

55.0

65.0

75.0

85.0

95.0

105.0

115.0

125.0

135.0

48.0

50.0

52.0

54.0

56.0

58.0

60.0

62.0

64.0

Co

nsu

mer c

on

fid

en

ce

IS

M n

on

-man

ufa

ctu

rin

g

ISM non-manufacturing

$320.0

$330.0

$340.0

$350.0

$360.0

$370.0

$380.0

$390.0

$400.0

$410.0

$420.0

$ i

n b

illi

on

s


Consumer Products and Retail sector breakdown and trading statistics1

Public comparables three-year stock market performance2


*Consumer index companies listed on pages 6 and 7 in the Appendix.

(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

S&P 500 index NASDAQ Composite index Consumer index

52.26%

73.56%

S&P 500 index

NASDAQ Composite index Consumer index* 21.34%

Last twelve months NTM

SectorNumber of

companies

% of 52

Week high

Median

revenue

CAGR (3 Yr)

Median LTM

EBITDA

($M)

Median

EBITDA

margin

Median

enterprise

value ($M)

EV/

Revenue

EV/

EBITDA

EV/

EBITDA

Beauty & cosmetics 12 84.2 % 2.6 % $830.6 15.0 % $9,965.2 1.7 x 11.9 x 11.5 x

Food & beverage 10 87.7 (1.1) 2,526.9 19.2 20,272.0 2.4 12.9 11.9

Home & garden 10 75.6 4.0 734.8 15.8 8,274.4 2.0 11.3 11.7

Restaurant & food services 18 86.3 3.1 379.7 12.8 3,630.6 1.5 13.0 11.7

Apparel & specialty retail 11 78.6 4.8 361.8 13.3 4,945.9 1.4 9.8 9.2

Consumer products index 61 85.3 % 2.7 % $518.5 14.6 % $5,360.6 1.7 x 11.3 x 11.1 x


Announce date Target/acquiror Target business description

Enterprise

value

("EV")

Sep-18Core Nutrition

Keurig Dr Pepper Inc. Core Nutrition, LLC produces organic beverages and bottled water. $477.7 N/A

Sep-18Sonic Corp.

ARG Holding Corporation

Sonic Corp. operates and franchises a chain of quick-service drive-

in restaurants in the United States.2,270.0 15.6

Aug-18Thom Browne, Inc.

Ermenegildo Zegna Holditalia S.p.A.Thom Browne, Inc. desgins and markets apparel for men. 500.0 N/A

Aug-18Zoe's Kitchen

Cava Group, Inc.

Zoe's Kitchen, Inc., through its subsidiaries, develops and operates

a chain of fast-casual restaurants.298.3 16.6

Aug-18The Boardroom Salon, LLC

LightBay Capital

The Boardroom Salon Company, LLC provides hair services for men,

including cutting, styling, shaving, and spa services.N/A N/A

Aug-18MVMT Watches Inc.

Movado Group, Inc.

MVMT Watches Inc. manufactures and sells watches, sunglasses,

and accessories. 200.0 N/A

Aug-18Pizza Crust Business of Tyson Foods, Inc.

Peak Rock Capital

Pizza Crust Business of Tyson Foods, Inc. produces partially-baked

and self-rising pizza crusts for frozen pizza manufacturers and

foodservice customer.

N/A N/A

Aug-18Jamba, Inc.

FOCUS Brands Inc.

Jamba, Inc., through its subsidiary, Jamba Juice Company, owns,

operates, and franchises Jamba Juice stores.204.7 56.8

Jul-18

Food Group of Companies of Services Group of

America

US Foods, Inc.

Food Group of Companies of Services Group of America represents

the combined operations of Amerifresh, Inc., Ameristar Meats, Inc.,

Food Services of America, Inc., GAMPAC Express, Inc., and Systems

Services of America, Inc.

1,800.0 N/A

Jul-18SUPERVALU Inc.

United Natural Foods, Inc.

SUPERVALU INC., together with its subsidiaries, operates as a

grocery wholesaler and retailer in the United States and

internationally.

2,907.1 6.8

Jul-18Rise Baking Company

Olympus Partners

Rise Baking Company produces and retails bakery products,

including breads, cookies, and bars.N/A N/A

Jul-18

U.S. Baking Business of The J.M. Smucker

Company

Brynwood Partners

U.S. Baking Business Of The J. M. Smucker Company comprises

baking products producing businesses, including Pillsbury , Hungry

Jack , White Lily , Jim Dandy , and Martha White brands .

375.0 N/A

EV/

EBITDA

1,983

2,479

2,772

3,041 2,874

3,213 3,199

2,603

2,369

1,805

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2009 2010 2011 2012 2013 2014 2015 2016 2017 2017

YTD

2018

YTD

Num

ber

of de

als

Undisclosed <$100M $100-$250M $250M-$500M $500M-$1,000M >$1,000M

Select recent Consumer Products and Retail M&A transactions1


Annual Consumer Products and Retail M&A transaction volume2

1,367


Appendix

Consumer Products and Retail trading multiples1


Historical Last twelve months NTM

Company (ticker)

% of 52

Week high LTM revenue

Revenue

CAGR (3 Yr)

LTM

EBITDA

EBITDA

margin

Enterprise

value ("EV")

EV/

EBITDA

EV/

EBITDA

($ in millions)

Beauty & cosmetics (12)

Avon Products, Inc. (NYSE:AVP) 61.5 % $5,732.0 (3.6) % $453.9 7.9 % $2,012.3 0.4 x 4.4 x 4.9 x

Coty Inc. (NYSE:COTY) 51.7 9,398.0 28.8 1,384.0 14.7 15,605.5 1.7 11.3 10.4

L'Occitane International S.A. (SEHK:973) 82.9 1,625.4 3.9 244.4 15.0 2,317.2 1.4 9.5 8.9

L'Oréal S.A. (ENXTPA:OR) 85.6 30,337.8 2.5 6,733.9 22.2 118,897.6 3.9 17.7 16.6

Nu Skin Enterprises, Inc. (NYSE:NUS) 77.8 2,550.3 2.7 381.9 15.0 3,886.6 1.5 10.2 9.2

Oriflame Holding AG (OM:ORI) 50.7 1,534.6 2.1 220.3 14.4 1,476.2 1.0 6.7 6.1

Revlon, Inc. (NYSE:REV) 93.5 2,620.6 11.4 105.2 4.0 4,324.9 1.7 41.1 15.3

Sally Beauty Holdings, Inc. (NYSE:SBH) 97.1 3,940.8 1.1 575.5 14.6 3,992.4 1.0 6.9 7.3

The Estée Lauder Companies Inc. (NYSE:EL) 79.9 13,683.0 8.3 2,789.0 20.4 47,304.5 3.5 17.0 15.9

The Procter & Gamble Company (NYSE:PG) 86.1 66,832.0 (1.9) 17,615.0 26.4 219,439.9 3.3 12.5 12.6

Ulta Beauty, Inc. (NasdaqGS:ULTA) 98.0 6,311.7 21.3 1,085.7 17.2 16,616.2 2.6 15.3 13.6

Unilever PLC (LSE:ULVR) 87.8 61,068.7 0.7 11,918.1 19.5 167,042.9 2.7 14.0 13.3

Median 84.2 % 2.6 % $830.6 15.0 % $9,965.2 1.7 x 11.9 x 11.5 x

Mean 79.4 % 6.4 % $3,625.6 15.9 % $50,243.0 2.1 x 13.9 x 11.2 x

Food & beverage (10)

Conagra Brands, Inc. (NYSE:CAG) 91.4 % $7,968.5 (10.8) % $1,488.5 18.7 % $18,480.7 2.3 x 12.4 x 11.7 x

General Mills, Inc. (NYSE:GIS) 72.1 16,065.2 (2.9) 3,390.0 21.1 41,255.1 2.6 12.2 11.8

Hormel Foods Corporation (NYSE:HRL) 95.9 9,513.6 0.4 1,297.7 13.6 22,063.4 2.3 17.0 15.7

Mondelez International, Inc. (NasdaqGS:MDLZ) 88.6 26,373.0 (6.8) 4,791.0 18.2 84.0 0.0 0.0 0.0

Nestlé S.A. (SWX:NESN) 91.3 91,697.3 (0.2) 18,092.1 19.7 273,717.2 3.0 15.1 13.9

PepsiCo, Inc. (NasdaqGS:PEP) 86.7 64,663.0 0.1 12,714.0 19.7 171,184.0 2.6 13.5 12.8

The Coca-Cola Company (NYSE:KO) 92.8 33,143.0 (10.2) 10,986.0 33.1 219,432.4 6.6 20.0 19.3

The Hain Celestial Group, Inc. (NasdaqGS:HAIN) 57.6 2,457.8 (2.0) 218.6 8.9 3,262.5 1.3 14.9 12.0

The J. M. Smucker Company (NYSE:SJM) 78.2 7,510.7 5.9 1,663.8 22.2 18,388.0 2.4 11.1 10.6

TreeHouse Foods, Inc. (NYSE:THS) 69.4 6,185.7 24.0 531.5 8.6 4,962.2 0.8 9.3 8.8

Median 87.7 % (1.1) % $2,526.9 19.2 % $20,272.0 2.4 x 12.9 x 11.9 x

Mean 82.4 % (0.2) % $5,517.3 18.4 % $77,282.9 2.4 x 12.5 x 11.7 x

Home & garden (10)

Central Garden & Pet Company (NasdaqGS:CENT) 73.6 % $2,203.5 10.4 % $212.0 9.6 % $2,383.7 1.1 x 11.2 x 10.6 x

Helen of Troy Limited (NasdaqGS:HELE) 89.7 1,567.5 0.9 244.5 15.6 3,459.3 2.2 14.1 14.0

iRobot Corporation (NasdaqGS:IRBT) 77.5 975.7 19.7 118.6 12.2 2,396.2 2.5 20.2 15.8

Newell Brands Inc. (NYSE:NWL) 40.9 14,140.1 34.3 1,974.7 14.0 16,551.3 1.2 8.4 13.2

Snap-on Incorporated (NYSE:SNA) 89.6 4,092.4 4.6 1,032.8 25.2 10,539.5 2.6 10.2 9.7

Stanley Black & Decker, Inc. (NYSE:SWK) 72.9 13,457.1 5.8 2,151.5 16.0 24,268.9 1.8 11.3 9.6

The Clorox Company (NYSE:CLX) 96.2 6,124.0 2.7 1,284.0 21.0 21,185.0 3.5 16.5 15.9

The Toro Company (NYSE:TTC) 83.4 2,568.0 3.4 436.7 17.0 6,009.3 2.3 13.8 12.8

Tupperware Brands Corporation (NYSE:TUP) 47.2 2,206.1 (3.3) 399.2 18.1 2,328.5 1.1 5.8 5.8

Whirlpool Corporation (NYSE:WHR) 56.7 21,171.0 0.5 1,997.0 9.4 12,644.4 0.6 6.3 6.1

Median 75.6 % 4.0 % $734.8 15.8 % $8,274.4 2.0 x 11.3 x 11.7 x

Mean 72.8 % 7.9 % $985.1 15.8 % $10,176.6 1.9 x 11.8 x 11.3 x

EV/

Revenue


Consumer Products and Retail trading multiples (cont.)1


Historical Last twelve months NTM

Company (ticker)

% of 52

Week high LTM revenue

Revenue

CAGR (3 Yr)

LTM

EBITDA

EBITDA

margin

Enterprise

value ("EV")

EV/

EBITDA

EV/

EBITDA

($ in millions)

Restaurant & food services (18)

Aramark (NYSE:ARMK) 87.9 % $15,530.2 1.8 % $1,336.6 8.6 % $17,687.3 1.1 x 13.2 x 9.9 x

Bloomin' Brands, Inc. (NasdaqGS:BLMN) 79.6 4,170.5 (2.3) 372.2 8.9 2,900.5 0.7 7.8 7.2

Brinker International, Inc. (NYSE:EAT) 85.3 3,135.4 1.5 411.0 13.1 3,288.9 1.0 8.0 8.7

Chipotle Mexican Grill, Inc. (NYSE:CMG) 81.9 4,653.1 1.6 518.5 11.1 11,507.0 2.5 22.2 19.6

Core-Mark Holding Company, Inc. (NasdaqGS:CORE) 93.8 12,850.4 14.8 103.6 0.8 2,019.8 0.2 19.5 12.0

Cracker Barrel Old Country Store, Inc. (NasdaqGS:CBRL) 85.7 3,030.4 2.2 387.3 12.8 3,972.4 1.3 10.3 10.2

Darden Restaurants, Inc. (NYSE:DRI) 86.5 8,205.4 6.2 1,100.7 13.4 14,082.7 1.7 12.8 11.8

Dine Brands Global, Inc. (NYSE:DIN) 88.0 597.3 (4.0) 187.4 31.4 2,790.4 4.7 14.9 11.6

Domino's Pizza, Inc. (NYSE:DPZ) 90.8 3,099.9 14.2 581.1 18.7 14,928.2 4.8 25.7 22.2

Dunkin' Brands Group, Inc. (NasdaqGS:DNKN) 95.3 881.9 4.0 487.3 55.2 8,850.2 10.0 18.2 19.0

Jack in the Box Inc. (NasdaqGS:JACK) 75.7 1,381.0 (3.4) 323.9 23.5 3,234.9 2.3 10.0 12.3

Recipe Unlimited Corporation (TSX:RECP) 86.1 715.6 46.8 154.4 21.6 1,692.6 2.4 11.0 9.4

SpartanNash Company (NasdaqGS:SPTN) 65.2 8,199.2 1.3 202.6 2.5 1,343.7 0.2 6.6 6.0

Sysco Corporation (NYSE:SYY) 91.2 58,727.3 6.5 3,260.1 5.6 43,913.7 0.7 13.5 12.4

Texas Roadhouse, Inc. (NasdaqGS:TXRH) 88.9 2,342.5 11.2 300.3 12.8 4,627.9 2.0 15.4 14.1

The Cheesecake Factory Incorporated (NasdaqGS:CAKE) 83.9 2,311.1 4.1 230.8 10.0 2,331.7 1.0 10.1 9.5

United Natural Foods, Inc. (NasdaqGS:UNFI) 50.5 10,226.7 7.7 335.9 3.3 1,675.8 0.2 5.0 4.7

YUM! Brands, Inc. (NYSE:YUM) 96.5 5,752.0 (24.0) 1,940.0 33.7 37,594.0 6.5 19.4 18.9

Median 86.3 % 3.1 % $379.7 12.8 % $3,630.6 1.5 x 13.0 x 11.7 x

Mean 84.0 % 5.0 % $679.6 15.9 % $9,913.4 2.4 x 13.5 x 12.2 x

Apparel & specialty retail (11)

Carter's, Inc. (NYSE:CRI) 74.2 % $3,427.8 4.9 % $478.1 13.9 % $4,945.9 1.4 x 10.3 x 9.6 x

Columbia Sportswear Company (NasdaqGS:COLM) 91.8 2,612.3 5.7 % 361.8 13.8 5,360.6 2.1 14.8 13.9

G-III Apparel Group, Ltd. (NasdaqGS:GIII) 75.4 2,976.3 10.0 % 254.1 8.5 2,349.2 0.8 9.2 8.5

Guess?, Inc. (NYSE:GES) 78.6 2,508.3 2.8 % 172.8 6.9 1,538.3 0.6 8.9 7.9

Hanesbrands Inc. (NYSE:HBI) 69.4 6,631.4 5.5 % 1,039.0 15.7 10,135.4 1.5 9.8 9.2

Iconix Brand Group, Inc. (NasdaqGS:ICON) 4.1 204.2 (18.6) % 89.2 43.7 661.5 3.2 7.4 NA

Oxford Industries, Inc. (NYSE:OXM) 83.0 1,104.4 4.7 % 134.7 12.2 1,385.5 1.3 10.3 8.9

Perry Ellis International, Inc. (NasdaqGS:PERY) 92.8 880.7 (1.0) % 46.9 5.3 438.3 0.5 9.3 7.3

PVH Corp. (NYSE:PVH) 75.1 9,504.2 5.7 % 1,149.5 12.1 12,294.3 1.3 10.7 9.3

Ralph Lauren Corporation (NYSE:RL) 85.9 6,225.8 (6.1) % 954.4 15.3 9,125.8 1.5 9.6 9.1

V.F. Corporation (NYSE:VFC) 90.6 12,701.3 NA % 1,690.7 13.3 37,868.7 3.0 22.4 16.7

Median 78.6 % 4.8 % $361.8 13.3 % $4,945.9 1.4 x 9.8 x 9.2 x

Mean 74.6 % 1.4 % $579.2 14.6 % $7,827.6 1.6 x 11.2 x 10.0 x

EV/

Revenue


Recent Consumer Products and Retail M&A transactions1


Target/acquiror Close date

LTM

revenue

LTM

EBITDA

EBITDA

margin

Enterprise

value ("EV")

EV/

Revenue

EV/

EBITDA

($ in millions)

Core Nutrition, LLC Pending N/A N/A N/A % 477.7 N/A x N/A x

Keurig Dr Pepper Inc.

Sonic Corp. Pending 435.4 145.9 33.5 2,270.0 5.2 15.6

ARG Holding Corporation

Pirate Brands, LLC Pending N/A N/A N/A 420.0 N/A N/A

Amplify Snack Brands, Inc.

No Ordinary Shoes Limited/No Ordinary Shoes USA LLC Pending 51.8 N/A N/A 16.9 0.3 N/A

Ted Baker Plc

Zoe's Kitchen, Inc. Pending 332.9 17.9 5.4 298.3 0.9 16.6

Cava Group, Inc.

BA Sports Nutrition, LLC Pending N/A N/A N/A N/A N/A N/A

The Coca-Cola Company

Food Group of Companies of Services Group of America Pending 3,200.0 N/A N/A 1,800.0 0.6 N/A

US Foods, Inc.

SUPERVALU INC. Pending 15,395.0 426.0 2.8 2,907.1 0.2 6.8

United Natural Foods, Inc.

Insomnia Cookies, LLC Pending N/A N/A N/A N/A N/A N/A

Krispy Kreme Doughnut Corporation

MVMT Watches Inc. Oct-18 71.0 N/A N/A 200.0 2.8 N/A

Movado Group, Inc.

All of the Assets of Sweet Frog Enterprises, LLC Sep-18 92.0 N/A N/A 35.0 0.4 N/A

MTY Food Group Inc.

Frozen Soup Business of NORPAC Foods Inc. Sep-18 N/A N/A N/A N/A N/A N/A

Kettle Cuisine, LLC

Woolrich, Inc. Sep-18 181.0 N/A N/A N/A N/A N/A

L-Gam Advisors Sarl

Jamba, Inc. Sep-18 78.3 3.6 4.6 204.7 2.6 56.8

FOCUS Brands Inc.

Florida Food Products, Inc. Sep-18 N/A N/A N/A N/A N/A N/A

MidOcean Partners

Ciao Bella Gelato Company, Inc. Sep-18 N/A N/A N/A N/A N/A N/A

High Road Craft Ice Cream, Inc.

Salsa Business in US of Sabra Dipping Co., LLC Sep-18 N/A N/A N/A N/A N/A N/A

STIR Foods, LLC.; Pacifica Foods, LLC

Pizza Crust Business of Tyson Foods, Inc. Sep-18 N/A N/A N/A N/A N/A N/A

Peak Rock Capital

U.S. Baking Business Of The J. M. Smucker Company Aug-18 370.0 N/A N/A 375.0 1.0 N/A

Brynwood Partners; Brynwood Partners VII L.P.; Brynwood Partners VIII L.P.

Thom Browne, Inc. Aug-18 N/A N/A N/A 500.0 N/A N/A

Ermenegildo Zegna Holditalia S.p.A.

Atlantic Beverage Company, Inc. Aug-18 N/A N/A N/A N/A N/A N/A

ARC Group

The Boardroom Salon Company, LLC Aug-18 N/A N/A N/A N/A N/A N/A

LightBay Capital

Cookietree, Inc. Aug-18 N/A N/A N/A N/A N/A N/A

C.H. Guenther & Son, Inc.

Rise Baking Company Jul-18 N/A N/A N/A N/A N/A N/A

Olympus Partners

Prive Goods, LLC Jul-18 N/A N/A N/A N/A N/A N/A

TSG Consumer Partners

butter LONDON, LLC Jul-18 N/A N/A N/A N/A N/A N/A

Astral Brands, Inc.

Median 5.0 % 0.9 x 16.1 x

Mean 11.6 % 1.6 x 24.0 x

Last twelve months


Select Deloitte Corporate Finance Consumer transactions


Kar Nut Products Company

has completed a recapitalization

The undersigned acted as exclusive financial advisor to Spice World, Inc.

has been acquired

Deloitte Corporate Finance LLC

Spice World, Inc.

has completed a recapitalization with

Gryphon Investors

American ImportingCompany, Inc.

The undersigned acted as

financial advisor to

American Importing Company, Inc.

Deloitte Corporate Finance LLC


Sources cited

Page 2:

1. “No Signs of Fizzing Out: America’s Love of Sparkling Water Remains Strong Through August”. Nielsen, 24 July

2018.

2. “Move Over, Soda: Seltzer Sales are Through The Roof.” Fortune, 27 Aug. 2018.

3. Anheuser-Busch Partners with Hiball Energy and Alta Palla Brands.” Anheuser-Busch Press Release, 20 July 2017.

4. Thomas, Lauren. “It’s going to be an Instagram Christmas.” CNBC, 2 Oct. 2018.

5. Williams, Robert. “16% of consumers to use smartphones for holiday shopping.” Retail Dive, 3 Oct. 2018

6. Handley, Lucy. “The Luxury Sector is Growing Faster Than Many others and Gucci is in the Lead.” CNBC, 4 Oct.

2018.

7. Arienti, Patrizia. “Global Powers of Luxury Goods 2018.”, Deloitte, 2018.

8. Chamlee, Virginia. “Why Do People Want Veggie Burgers That Bleed.” Eater, 25 Aug. 2017.

9. Cheng, Andria. “The Plant-Based Meat Trend is Sizzling – Even KFC is Eyeing Faux-Chicken.” Forbes. 7 June. 2018

10. Dorbian, Iris. “LightBay Capital funds Boardroom Salon for Men.” The PE Hub Network, 16 August 2018.

11. S&P Capital IQ. July 9, 2018. Data as of July 9, 2018.

12. Haddon, Heather. “US Foods to Buy Five Food Businesses for $1.8 Billion.” The Wallstreet Journal, 30 July 2018.

Page 3:

1. U.S. Bureau of Economic Analysis. October 14, 2018. Data as of September 30, 2018.

2. U.S. Department of the Treasury. October 14, 2018. Data as of September 28, 2018.

3. Bureau of Labor Statistics. October 14, 2018. Data as of September 30, 2018.

4. S&P Capital IQ. October 14, 2018. Data as of September 30, 2018.

5. IBISWorld. October 14, 2018. Data as of June 30, 2018.

6. U.S. Census. October 14, 2018. Data as of October 14, 2018.

Page 4:

1. S&P Capital IQ. October 14, 2018.


Page 5:



Page 6:


Page 7:


Page 8:




Phil [email protected]+1 704 333 0533

Jonathan [email protected]+1 214 840 1779

Keith [email protected]+1 404 631 3455

Eric [email protected]+1 704 333 0518

Tony Blanchard [email protected]+1 313 396 3738

Doug [email protected]+1 704 731 7219

Hector [email protected]+1 404 631 3015

Nick [email protected]+1 212 436 3273

John [email protected]+1 704 333 0574

Lorin [email protected]+1 704 333 0591

Will [email protected]+1 312 486 4458

Mike [email protected]+1 213 996 4901

Simon Gisby [email protected]+1 212 436 2495

Bill [email protected]+1 980 312 3613

Jamie [email protected]+1 214 840 7057

James [email protected]+1 704 731 8230

Byron [email protected]+1 469 417 2462

Jonathan Ohm [email protected]+1 212 436 2287

Lou [email protected]+1 704 731 7202

Jason [email protected]+1 704 333 0136

Matt [email protected]+1 704 731 7186

Ron [email protected]+1 404 631 3710

Justin [email protected]+1 404 942 6960

Tom [email protected]+1 214 840 7014

Vijay [email protected]+1 212 313 1723

Charlie [email protected]+1 704 731 7201

Deloitte Corporate Finance LLC (DCF)

DCF provides deal execution and lead financial advisory services to large corporate, middle market, private equity and venture capital firms. DCF and its affiliates maintain a presence in key US financial centers.

For additional information or to find out more about how DCF can assist the deal initiation and execution process, please contact one of our DCF Managing Directors:

Brad HestonSenior Vice President [email protected]+1 404 631 3839

Deloitte Corporate Finance Business Development Group:

www.investmentbanking.deloitte.com

John LindseySenior Vice [email protected]+1 469 417 2147

Bill PucciSenior Vice President [email protected]+1 973 602 4542


This newsletter is a periodic compilation of certain completed and announced merger and acquisition activity. Information contained in this newsletter should not be construed as a recommendation to sell or a recommendation to buy any security. Anyreference to or omission of any reference to any company in this newsletter shall not be construed as a recommendation to sell, buy or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. This newsletter is published solely for the general information of clients andfriends of Deloitte Corporate Finance LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known risks, uncertainties and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. We and our affiliates and related entities, partners, principals, directors, and employees, including persons involved in the preparation or issuance of this newsletter, may from time to time have “long” and “short” positions in, and buy or sell, the securities, or derivatives (including options) thereof, of companies mentioned herein. The companies mentioned in this newsletter may be: (i) investment banking clients of Deloitte Corporate Finance LLC; or (ii) clients of Deloitte Financial Advisory Services LLP and its related entities. The decision to include any company for mention or discussion in this newsletter is wholly unrelated to any audit or other services that Deloitte Corporate Finance LLC may provide or to any audit services or any services that any of its affiliates or related entities may provide to such company. No part of this newsletter may be copied or duplicated in any form by any means, or redistributed without the prior written consent of Deloitte Corporate Finance LLC.

About Deloitte

Deloitte Corporate Finance LLC, an SEC registered broker-dealer and member of FINRA and SIPC, is an indirect wholly-owned subsidiary of Deloitte Financial Advisory Services LLP and affiliate of Deloitte Transactions and Business Analytics LLP. Investment banking products and services within the United States are offered exclusively through Deloitte Corporate Finance LLC. For more information, visit www.investmentbanking.deloitte.com. Please see http://www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2018 Deloitte Development LLC. All rights reserved.


https://www.finra.org/

https://www.sipc.org/

http://www.deloitte.com/us/about

Consumer Products and Retail Quarterly update · 2020-03-22 · Co-Founders Bruce and Heather...

Documents

Transcript of Consumer Products and Retail Quarterly update · 2020-03-22 · Co-Founders Bruce and Heather...