Apparel, Accessories & Footwear
Market Monitor
Summer 2015
MOSS ADAMS CAPITAL LLC
Select Apparel, Accessories & Footwear Transactions
Apparel, Accessories & Footwear
2
MOSS ADAMS CAPITAL LLC
Contents
Industry Update
4
Public Stock Performance & Valuations
5
M&A Activity & Valuations
9
Moss Adams Overview
13
Apparel, Accessories & Footwear
3
MOSS ADAMS CAPITAL LLC
Second Half of 2015 Expected to Offset Slow Retail Start
Consumer Spending Indicators
Industry Update
•
•
•
Consumer confidence decreased to 91 in July, the lowest point
since November 2014, primarily driven by a less optimistic labor
market combined with uncertainty and volatility in the Greek and
Chinese financial markets. Overall, the index remains at a strong
level and unemployment remains low (5.3%).
10%
•
These conditions have led select retailers to post a marginal
decrease in comparable store sales of (0.1%) in Q1’15.
•
Median sales and EBITDA for select retail companies (slide 7 & 8)
are expected to grow 5.6% and 9.8% respectively, outpacing the
S&P 500. Growth will be achieved by investing heavily into
omnichannel retailing, technology, social media marketing,
localized product mix, and acquisitions.
120
8%
100
6%
4%
80
2%
Retirement, disability, and school, mixed with a growing freelance
economy are major factors driving the labor force participation
rate to reach 62.6% (July), its lowest level since 1977.
In July, the Nation Retail Federation (“NRF”) lowered its 2015
retail sales growth forecast from 4.1% to 3.5%, citing unexpected
slow growth in the first half of the year of 2.9%. Despite this, the
NRF is forecasting 3.7% growth in the second half of the year
driven by non-store sales and improvement in the housing and
labor markets.
Unemployment
Rate
12%
0%
60
(2%)
Consumer
Confidence
(right-axis)
Payroll y/y
growth
(4%)
(6%)
(8%)
40
20
Apparel Retailer
Sales y/y growth
(10%)
(12%)
0
Same-Store Sales Growth – Chain Retailers
Q113
Q213
Q313
Q413
Q114
Q214
Q314
(8.0%)
(4.0%)
(7.0%) (10.0%) (10.0%)
Abercrombie & Fitch
(15.0%) (10.0%) (14.0%)
Aeropostale
(14.0%) (15.0%) (15.0%) (15.0%) (13.0%) (13.0%) (11.0%)
American Apparel
American Eagle
Buckle
(3.0%)
Q414
Q115
(8.0%)
(9.0%) (11.0%)
8.0%
7.0%
2.0%
(7.0%)
(6.0%)
(7.0%)
(9.0%)
(5.0%)
(7.0%)
(5.0%)
(7.0%) (10.0%)
(7.0%)
(5.0%)
0.0%
(9.0%)
7.0%
1.2%
3.2%
(0.5%)
(2.8%)
(0.9%)
(0.5%)
0.3%
1.1%
(2.2%)
(2.4%)
4.4%
(0.7%)
0.0%
(3.7%)
0.8%
2.6%
7.6%
5.1%
2.0%
5.0%
1.0%
1.0%
(1.0%)
0.0%
(2.0%)
(2.0%)
(4.0%)
•
U.S. Apparel, Accessories and Footwear M&A activity is up
14.6% year-to-date after the high reached in 2014 (slide 12).
DSW
Genesco
(4.0%)
(2.0%)
(1.0%)
1.0%
1.0%
2.0%
3.0%
10.0%
4.0%
•
Key industry trends include (i) attractive price-value propositions
/ differentiated products, (ii) omni-channel, (iii) wholesale brands
selling direct-to-consumer, (iv) international growth, (v)
consumer focus on active/healthy lifestyles, and (vi) private label
lines for mass retailers.
Guess? North America
(9.8%)
(2.0%)
(5.0%)
(4.4%)
(3.8%)
(5.4%)
(4.8%)
(5.0%)
(5.9%)
Tilly's
1.1%
(0.5%)
(2.4%)
(4.9%)
(6.8%)
(7.1%)
(1.2%)
2.9%
2.0%
Urban Outfitters
9.0%
8.5%
7.1%
1.0%
0.0%
0.0%
(1.0%)
6.0%
4.0%
(0.7%)
0.9%
1.5%
(2.2%)
1.8%
3.4%
3.7%
8.3%
Gap
Zumiez
Median
(1.6%)
0.2%
(0.9%)
(2.9%)
(3.8%)
(3.0%)
(1.6%)
0.6%
3.0%
(0.1%)
Source: U.S. Department of Commerce, National Retail Federation, CapitalIQ, & Moss Adams Capital estimates.
Apparel, Accessories & Footwear
4
MOSS ADAMS CAPITAL LLC
Performance and Diversified – Large Caps Outpace S&P 500
One Year Share Price Performance: Apparel, Accessories & Footwear vs. S&P 500
50%
40%
Performance
36.6%
30%
Diversified Large Cap
25.5%
20%
10%
S&P 500
5.4%
0%
Casual Fasion
(12.5%)
(10%)
(20%)
Diversifed Small Cap
(23.5%)
(30%)
Aspirational
(35.0%)
(40%)
Note: The indices in the chart above are composed of the public companies included on slide 7 & 8.
Source: CapitalIQ.
Apparel, Accessories & Footwear
5
MOSS ADAMS CAPITAL LLC
Apparel Industry Outlook Higher than Market
•
5.6% Sales and 9.8% EBITDA growth projected for select
apparel companies (slide 7 & 8) over the next 12 months,
outpacing the broader S&P 500, below.
•
Apparel, Accessories & Footwear (“AAF”) companies are
trading at the high end of five year historical valuation
levels.
•
S&P 500 companies are projecting Sales and EBITDA
growth of 2.1% and 6.3%, respectively, over the next 12
months.
•
In the past six months, valuation premiums for AAF
companies have continued to trade at a significant
premium to the overall market.
Next 12 Months: Estimated Growth
Sales
Public Market Valuations
EBITDA
13.0x
Apparel &
Footwear 12.2x
Aspirational
Casual
Fashion
7.4%
Diversified Mid/Small
Cap
11.0x
(2.0%)
2.2%
1.6%
Diversified Large Cap
12.0x
10.4%
11.4%
EV/LTM EBITDA
Performance
14.2%
7.6%
10.0x
9.0x
S&P 500
10.7x
8.0x
12.5%
2.2%
7.0x
S&P 500
2.1%
6.3%
6.0x
Note: Apparel, Accessories & Footwear is composed of the public companies included on slide 7 & 8.
Source: CapitalIQ.
Apparel, Accessories & Footwear
6
MOSS ADAMS CAPITAL LLC
Public Company Valuations (August 2015)
($mm, except where noted)
TTM Data
NTM Estimated Growth
Share
Price
52wk High / Low
Market
Cap
Enterprise
Value
Revenue
EBITDA
EBITDA
Margin
NIKE, Inc.
$114.36
$117.50 / $77.57
$101,140
$96,476
$30,601
$4,824
15.8%
6.2%
10.0%
Under Armour, Inc.
Company Name
Revenue
EBITDA
EV Multiple
TTM
Revenue
TTM
EBITDA
NTM
Revenue
NTM
EBITDA
3.15x
20.0x
2.97x
18.2x
Performance
$100.25
$101.78 / $60.00
$22,123
$22,668
$3,422
$442
12.9%
23.9%
24.1%
NM
NM
NM
NM
Adidas AG
$76.42
$86.65 / $58.85
$15,713
$16,625
$17,426
$1,465
8.4%
NA
NA
0.95x
11.3x
NA
NA
Lululemon Athletica Inc.
$65.17
$70.00 / $37.81
$9,346
$8,691
$1,836
$430
23.4%
14.3%
9.8%
4.73x
20.2x
NA
NA
Columbia Sportswear Company
$65.52
$74.72 / $34.25
$4,649
$4,261
$2,211
$278
12.6%
8.6%
10.8%
1.93x
15.4x
1.77x
13.9x
$198.91
$223.14 / $155.53
$2,972
$2,759
$3,551
$173
4.9%
NA
NA
0.78x
15.9x
NA
NA
Average
$25,991
$25,247
$9,841
$1,269
13.0%
13.2%
13.7%
2.31x
16.6x
2.37x
16.0x
Median
$12,530
$12,658
$3,486
$436
12.7%
11.4%
10.4%
1.93x
15.9x
2.37x
16.0x
PUMA SE
Aspirational
Ralph Lauren Corporation
$118.00
$187.49 / $116.18
$10,434
$9,976
$7,530
$1,232
16.4%
2.1%
(3.6%)
1.32x
8.1x
1.30x
8.4x
Coach, Inc.
$31.93
$43.87 / $29.92
$8,851
$8,216
$4,192
$973
23.2%
7.4%
(1.0%)
1.96x
8.4x
1.82x
8.5x
Michael Kors Holdings Limited
$43.37
$83.38 / $38.16
$8,851
$8,043
$4,438
$1,380
31.1%
7.4%
(2.0%)
1.81x
5.8x
1.69x
6.0x
Kate Spade & Company
$20.42
$35.75 / $19.04
$2,615
$2,786
$1,185
$138
11.7%
12.7%
51.9%
2.35x
20.2x
2.09x
13.3x
$9.29
$39.08 / $8.98
$355
$435
$347
$77
22.2%
0.5%
(9.4%)
1.25x
5.7x
1.25x
6.2x
Average
$6,221
$5,891
$3,538
$760
20.9%
6.0%
7.2%
1.74x
9.6x
1.63x
8.5x
Median
$8,851
$8,043
$4,192
$973
22.2%
7.4%
(2.0%)
1.81x
8.1x
1.69x
8.4x
Vince Holding Corp
Casual Fashion
The Gap, Inc.
$34.23
$46.85 / $34.07
$14,616
$14,921
$16,235
$2,403
14.8%
1.7%
1.0%
0.92x
6.2x
0.90x
6.1x
Urban Outfitters Inc.
$32.32
$47.25 / $27.89
$4,288
$4,136
$3,432
$490
14.3%
6.5%
13.9%
1.21x
8.4x
1.13x
7.4x
American Eagle Outfitters, Inc.
$17.98
$18.41 / $10.78
$3,525
$3,197
$3,423
$426
12.4%
1.5%
8.7%
0.93x
7.5x
0.92x
6.9x
DSW Inc.
$32.64
$39.58 / $26.98
$2,926
$2,634
$2,593
$337
13.0%
5.4%
3.4%
1.02x
7.8x
0.96x
7.6x
Guess? Inc.
$21.26
$26.48 / $16.61
$1,808
$1,361
$2,312
$232
10.1%
(3.8%)
(14.1%)
0.59x
5.9x
0.61x
6.8x
Abercrombie & Fitch Co.
$19.02
$45.50 / $18.75
$1,329
$1,262
$3,558
$321
9.0%
(2.0%)
(1.7%)
0.35x
3.9x
0.36x
4.0x
Average
$1,146
$3,180
$2,034
$1,512
12.3%
1.5%
1.9%
3.69x
4.6x
3.64x
6.5x
Median
$3,225
$2,916
$3,428
$382
12.7%
1.6%
2.2%
0.93x
6.9x
0.91x
6.9x
Note: Not meaningful (NM) if EV/Sales is greater than 10x, or EV/EBITDA is greater than 40x. NA if denominator is 0, for percentages and multiples, or if estimates are not available. NTM figures are based on the
median estimate of Wall St. analysts.
Source: CapitalIQ, company filings.
Apparel, Accessories & Footwear
7
MOSS ADAMS CAPITAL LLC
Public Company Valuations (August 2015)
($mm, except where noted)
Company Name
Diversified - Large Cap
V.F. Corporation
TTM Data
Share
Price
NTM Estimated Growth
52wk High / Low
Market
Cap
Enterprise
Value
Revenue
EBITDA
EBITDA
Margin
Revenue
EBITDA
EV Multiple
TTM
Revenue
TTM
EBITDA
NTM
Revenue
NTM
EBITDA
$75.94
$77.83 / $61.75
$33,072
$34,997
$12,450
$2,105
16.9%
5.6%
6.7%
2.81x
16.6x
2.66x
15.6x
PVH Corp.
$114.52
$130.00 / $93.80
$9,551
$12,466
$8,045
$957
11.9%
(0.2%)
14.2%
1.55x
13.0x
1.55x
11.4x
Skechers USA Inc.
$153.53
$163.60 / $47.76
$7,863
$7,531
$2,822
$360
12.8%
23.3%
37.2%
2.67x
20.9x
2.16x
15.2x
G-III Apparel Group, Ltd.
$69.71
$73.93 / $35.34
$3,169
$3,084
$2,184
$195
8.9%
11.9%
20.5%
1.41x
15.8x
1.26x
13.1x
Wolverine World Wide Inc.
$29.10
$35.20 / $24.21
$2,932
$3,549
$2,782
$315
11.3%
3.7%
1.5%
1.28x
11.3x
1.23x
11.1x
Steven Madden, Ltd.
$40.08
$44.73 / $28.02
$2,493
$2,394
$1,382
$178
12.9%
7.6%
15.9%
1.73x
13.4x
1.61x
11.6x
Deckers Outdoor Corp.
$70.14
$99.88 / $65.65
$2,410
$2,317
$1,819
$257
14.1%
8.7%
12.2%
1.27x
9.0x
1.17x
8.1x
Average
$8,784
$9,477
$4,498
$624
12.7%
8.6%
15.4%
1.82x
14.3x
1.66x
12.3x
Median
$3,169
$3,549
$2,782
$315
12.8%
7.6%
14.2%
1.55x
13.4x
1.55x
11.6x
Diversified - Mid/Small Cap
Oxford Industries Inc.
$87.55
$90.00 / $50.13
$1,444
$1,565
$1,016
$125
12.3%
(1.4%)
12.5%
1.54x
12.6x
1.56x
11.2x
Iconix Brand Group, Inc.
$13.73
$42.25 / $13.17
$736
$2,257
$391
$206
52.8%
14.5%
5.7%
NM
10.9x
NM
10.3x
Crocs, Inc.
$15.03
$16.05 / $10.25
$1,203
$1,189
$1,117
$28
2.5%
1.3%
250.8%
1.06x
NM
1.05x
12.0x
$0.41
$0.54 / $0.37
$3
$91
$813
$34
4.2%
NA
NA
0.11x
2.7x
NA
NA
Perry Ellis International Inc.
$23.46
$28.19 / $18.54
$349
$441
$909
$42
4.7%
3.2%
33.7%
0.48x
10.4x
0.47x
7.8x
Weyco Group Inc.
$28.00
$31.31 / $24.78
$304
$311
$325
$36
11.1%
NA
NA
0.96x
8.6x
NA
NA
Rocky Brands, Inc.
$18.32
$23.11 / $12.61
$138
$170
$286
$25
8.6%
5.6%
5.7%
0.59x
6.9x
0.56x
6.5x
$0.50
$3.35 / $0.39
$86
$858
$1,452
-$21
(1.5%)
(2.8%)
NM
0.59x
NM
0.61x
17.3x
Average
$533
$860
$788
$59
11.8%
3.4%
61.7%
0.76x
8.7x
0.85x
10.9x
Median
$326
$649
$861
$35
6.7%
2.2%
12.5%
0.59x
9.5x
0.61x
10.8x
Billabong International Limited
Quiksilver Inc.
Note: Not meaningful (NM) if EV/Sales is greater than 10x, or EV/EBITDA is greater than 40x. NA if denominator is 0, for percentages and multiples, or if estimates are not available. NTM figures are based on the
median estimate of Wall St. analysts.
Source: CapitalIQ, company filings.
Apparel, Accessories & Footwear
8
MOSS ADAMS CAPITAL LLC
Middle Market M&A Volume Rises; M&A Deal Values Higher
• U.S. middle market M&A deal volumes in Q2 2015 increased
0.8% from Q1 2015. Deal volume increased by 3.6% during the
first half of 2015 compared to the first half of 2014.
• U.S. middle market M&A activity, measured by deal values,
increased 11.2% in Q2 2015 vs. Q1 2015.
• EBITDA multiples of middle market transactions in Q2 2015
increased to 7.1x, representing a 14.1% increase over Q1 2015.
• Q2 2015 EBITDA margins of reportable transactions dipped to
12.9%, below the five year average of 15.2%.
U.S. MIDDLE MARKET M&A 1
5,000
Number
U.S. MIDDLE MARKET M&A VALUATIONS 2
$140
Value
3,986
3,852
3,682 3,681
3,622
3,539
3,453
3,500
$84 $83
$71
$66
2,500
$56 $55
$80
$52
$56
$70
$65
$60
$55
$52
$50
$47
$44
$43
$40
$32
1,000
$20
500
0
Q1
Q2
Q3
2010
Q4
Q1
Q2
Q3
2011
Q4
Q1
Q2
Q3
Q4
Q1
2012
Q2
Q3
2013
Q4
Q1
Q2
Q3
2014
Q4
Q1
Q2
6.7x
6.8x 6.8x
6.9x
6.4x
$0
4.0 x
3.0 x
6.0x
7.1x
7.0x
6.2x
35%
6.1x
6.2x
5.9x
30%
25%
4.8x
19.1%
17.0%
17.0%
16.7%
15.3%
14.6%
14.8%
13.7%
13.0%
12.4%
10.6%
16.9%
16.7%16.6%
15.3%
15.0%
15.0%
14.5%
14.2%
20%
17.2%
16.0%
12.9%
15%
2.0 x
10%
1.0 x
5%
0.0 x
2015
6.2x 6.2x
6.4x
5.9x
6.0 x
5.0 x
40%
Q1
Q2
Q3
2010
Q4
Q1
Q2
Q3
2011
Q4
Q1
Q2
Q3
2012
Q4
Q1
Q2
Q3
2013
Q4
Q1
Q2
Q3
Q4
2014
Q1
Q2
EBITDA Margin
$71 $72 $70
2,000
$100
3,134
6.7x
6.4x
2,984
2,927
7.2x
7.0x
7.0 x
$120
EBITDA Margin
7.6x
$105 $116
3,319
3,080
2,953
2,855
4,210
4,176
4,095
4,054
3,997
Transaction Value ($bn)
Number of Transactions
4,000
1,500
4,092
EV/Trailing EBITDA Multiple
4,500
3,000
EV/EBITDA
8.0 x
4,608
4,410
0%
2015
1) Middle market M&A includes transactions with undisclosed values, and disclosed values where EV < $500 million
2) Middle market M&A includes transactions with disclosed EBITDA, where EV < $500 million and EV/EBITDA < 10x. Note: transactions with disclosed EBITDA represent <5% of all transactions
Source: CapitalIQ
Apparel, Accessories & Footwear
9
MOSS ADAMS CAPITAL LLC
Selected Notable M&A Activity
($mm, except where noted)
Date
Acquirer/Investor
Target
EV Multiple
Transaction
Size
Target Description
TTM Revenue
TTM EBITDA
Aug-15
Sycamore Partners
Belk Inc.
Department Store
$3,153.8
0.70x
6.6x
Aug-15
QVC, Inc.
zulily, Inc.
Online retailer
$2,476.2
1.69x
76.7x
Aug-15
Bed Bath & Beyond Inc.
Of a Kind, Inc.
Online apparel and accessories
-
-
-
Jul-15
eBay Inc.
Minno Inc.
Online retailer of secondhand clothing
-
-
-
Jul-15
Marquee Brands LLC
Ben Sherman Limited & Ben Sherman Clothing LLC
Apparel and footwear
$63.7
0.82x
-
Jul-15
Delta Galil USA Inc.
Loomworks Apparel, Inc.
Intimate Apparel
$40.8
-
-
May-15
Boot Barn, Inc.
Sheplers, Inc.
Apparel and Accessories
$147.0
0.94x
9.9x
May-15
GameStop Corp.
Geeknet, Inc.
Online retailer including apparel
$133.8
0.71x
-
May-15
Bluestem Brands, Inc.
Orchard Brands Corporation
Apparel Manufacturer and Distributer
$410.0
0.40x
5.8x
May-15
Ascena Retail Group Inc.
ANN INC.
Luxury Retail and Accessories
$2,206.1
0.80x
8.4x
May-15
Cherokee Inc.
Everyday California
Apparel and adventure gear
-
-
-
Apr-15
Authentic Brands Group LLC
Nine West Holdings, Inc., Jones New York Brand
Apparel, footwear and accessories
-
-
-
Apr-15
Webster Capital
Dover Saddlery, Inc.
Specialty Apparel
$73.6
0.70x
17.2x
Apr-15
Authentic Brands Group LLC
Frederick's of Hollywood Group Inc.
Intimate Apparel
Apr-15
Sequential Brands Group, Inc.
The Jessica Simpson Collection
Women's Apparel and Accessories
Mar-15
CapX Partners; Comvest Partners
Karmaloop, Inc.
Online Apparel Retail
Mar-15
Mador Lending, LLC
The Wet Seal, Inc., Substantially All Assets
Women's Apparel and Accessories
Feb-15
Hanesbrands Inc.
Knights Apparel, Inc.
Feb-15
David Peyser Sportswear, Inc.
Feb-15
$22.5
-
-
$118.5
-
-
$13.0
-
-
$7.5
-
-
Sports Apparel
$193.5
-
-
To The Game, LLC
Sports Apparel
$15.0
0.60x
-
Gladstone Investment Corp.; Digital Fuel Capital
LogoSportswear, Inc.
Apparel
$9.7
-
-
Jan-15
Berkshire Partners; New Balance Athletic Shoe
The Rockport Company, LLC
Footwear and Accessories
$280.0
-
-
Dec-14
9102221 Canada Inc.
Hart Stores Inc.
Apparel Retailer
$11.2
0.15x
-
Dec-14
Irving Place Capital
American Apparel, Inc.
Apparel and Accessories
$497.5
0.78x
53.1x
Dec-14
Shoes.com Technologies Inc.
Shoes.com, Inc.
Footwear
Dec-14
Hybrid Promotions; Franklin Square; Altamont Capital
Fox Head, Inc.
Bike Equipment and Apparel
Nov-14
Sycamore Partners
Mast Industries Inc.
Women's Apparel
Sep-14
Capmark Financial Group Inc. (Bluestem Group Inc.)
Bluestem Brands, Inc.
Online Retail
Aug-14
Bain Capital Private Equity
TOMS Shoes, LLC
Footwear and Accessories
Aug-14
Samtech, LLC
Massif Mountain Gear Company, LLC
Specialty Apparel
Aug-14
Steven Madden, Ltd.
Dolce Vita Holdings, Inc.
Women's Footwear and Accessories
$65.3
0.59x
-
Aug-14
Advent International Corporation
Lululemon Athletica Inc.
Sports Apparel
$845.0
3.22x
11.9x
$101.8
0.70x
Median
$11.5
-
-
$195.0
-
-
$85.0
-
-
$758.8
0.70x
8.6x
-
-
-
$15.2
-
-
9.9x
Source: CapitalIQ, PitchBook, company filings, news releases.
Apparel, Accessories & Footwear
10
MOSS ADAMS CAPITAL LLC
Selected Recent M&A Activity
($mm, except where noted)
Date
Acquirer/Investor
Target
Target Description
EV Multiple
Transaction
Size
TTM Revenue
TTM EBITDA
Aug-15
Collegiate Originals Apparel, Inc.
Glen Plaid LLC
Manufactures and retails apparel
-
-
-
Aug-15
Apax Partners LLP
FULLBEAUTY Brands, Inc.
Plus-size apparel
-
-
-
Aug-15
Left Hand Studios LLC
Lemon Tree Jewelry
Jewelry and accessories
-
-
-
Aug-15
J.W. Childs Associates, L.P
Shoe Sensation, Inc.
Shoe store retailer
-
-
-
Jul-15
Banded Holdings Inc.
Avery Outdoors, Inc.
Hunting accessories and apparel
-
-
-
Jul-15
NXT Capital, LLC
Coyne International Enterprises Corp.
Uniform apparel
$22.5
-
-
Jul-15
Zagwear Inc.
Puma Productions, Inc.
Custom and promotional apparel
-
-
-
Jul-15
Vindai Corporation
Good Vibrations Shoes Inc.
Therapeutic footwear
-
-
-
Jul-15
Ledbury Inc.
Creery Custom, Inc.
Shirt manufacturer
-
-
-
Jul-15
Pacific West Commercial Corporation
Comark Inc.
Fashion retail stores
-
-
-
Jul-15
Starboard Value LP
Macy's, Inc.
Apparel Retailer
-
-
-
Jul-15
UniFirst Canada Ltd.
McGuire Uniforms & Clothing Inc.
Specialty Apparel
-
-
-
Jul-15
Argosy Capital; Plexus Capital; Salem Partners
Parker School Uniforms, L.L.C.
Apparel
-
-
-
Jul-15
TSG Consumer Partners
Backcountry.com, LLC
Sports Apparel
-
-
-
Jun-15
American Achievement Corporation
Gaspard & Sons Ltd.
Specialty Apparel
-
-
-
Jun-15
Arlington Global Financial Limited
Big Strike, Inc.
Women's Sports Apparel
-
-
-
Jun-15
McGuire Moorman Hospitality, LLC
By George
Apparel and Accessories Retailer
-
-
-
Jun-15
Unisync Group Limited
Omega Uniform Systems Ltd.
Specialty Apparel
-
-
-
Jun-15
Castanea Partners, Inc.
Proenza Schouler, LLC
Women's Apparel and Accessories
-
-
-
Jun-15
Metabrid LLC
Disys Commerce Inc.
Apparel and Accessories Retailer
$5.7
0.44x
-
Jun-15
S&S Promotional Group, Inc.
Valley Sporting Goods, Inc.
Sports Apparel
-
-
-
Jun-15
Tengram Capital Partners, LLC
Zanella Ltd.
Apparel
-
-
-
Jun-15
Perceva Capital
Vanity Fair Brands, LP
Intimate Apparel
-
-
-
Jun-15
Nisolo, LLC
Red Earth Trading Co. LLC
Jewelry and Accessories
-
-
-
Jun-15
Vibram USA Inc.
Quabaug Corporation
Manufactures footwear components
-
-
-
May-15
HALO Branded Solutions, Inc.
Newton Manufacturing Company
Promotional apparel and accessories
$3.5
-
-
May-15
Youngevity Essential Life Sciences
Mialisia & Co., LLC
Jewelry and Accessories
-
-
-
May-15
Lodis Accessories, Inc. (American Accessories)
Reborn Products Co., Inc.
Men's accessories and gifts
-
-
-
May-15
JLL Partners
Point Blank Enterprises, Inc.
Military equipment apparel
-
-
-
May-15
Royal Spirit International Limited
The Connaught Group, Ltd.
Luxury Apparel and Accessories
-
-
-
May-15
DSM Dyneema LLC
Cubic Tech Corporation
Custom lightweight fabrics
-
-
-
May-15
Fresh Produce Holdings, LLC (Blue Stripe, LLC)
Fresh Produce Sportswear, Inc.
Women's Apparel and Accessories
$7.1
-
-
May-15
Sourceeasy, Inc.
AbbeyPost
Women's Apparel
-
-
-
Apr-15
Re:Capital Canada
Tilley Endurables, Inc.
Apparel and Accessories
-
-
-
Apr-15
Kanders & Company, Inc.
Mountain Khakis LLC
Lifestyle Apparel
-
-
-
Apr-15
Affinity Specialty Apparel, Inc.
DragonTech Manufacturing Company
Specialty Apparel
-
-
-
Source: CapitalIQ, PitchBook, company filings, news releases.
Apparel, Accessories & Footwear
11
MOSS ADAMS CAPITAL LLC
Overview of Select Transactions
•
July 2015
• Marquee Brands agreed to purchase Ben Sherman Ltd. and Ben Sherman Clothing
LLC from Oxford Industries for $63.7 million. For the year ending in December 2014,
Ben Sherman reported net sales of $77.5 million (0.82x Sales) and did not post a
profit.
• Oxford sold Ben Sherman after lackluster performance and decision to re-focus
more on its other brands including Tommy Bahama and Lily Pulitzer.
• Marquee Brands believe they can grow Ben Sherman by entering new product
categories and introducing its products to a broader audience, “turning it into a
distinctive lifestyle brand,” Cory Baker, COO at Marquee Brands.
• Mr. Baker also stated that their plan “to market and promote the brand across
various lifestyle categories are well underway with new products and expanded
retail coming to market as early as first quarter, 2016”
acquires
May 2015
• Bluestem Group (formally known as Capmark Financial Group) agreed to acquire
Orchard Brands from American Capital for $410 million in cash, subject to various
pre and post closing adjustments. For the year ending December 2014, Orchard
Brands reported sales of $1.02 billion (0.40x Sales) and an adjusted EBITDA of $70.7
million (5.8x EBITDA).
• Orchard Brands operates as a multi-channel retailer of apparel and home products
for retirees, baby boomers and senior citizens. It sells its products through various
channels including catalogs, e-commerce, retail and outlet stores
• Bluestem CEO, Steve Nave, believes that the Orchard portfolio of brands will provide
the company with the opportunity to serve a new customer base and deepen their
private-label merchandise design and sourcing expertise.
• Jim Fogarty, CEO of Orchard, believes the transaction to be “wonderfully synergistic,
with Bluestem bringing strong expertise in consumer finance and hard goods . . .
while the Orchard teams bring strong expertise in design, sourcing and selling”
Source: CapitalIQ, company filings, news releases.
Apparel, Accessories & Footwear
U.S. Apparel, Accessories and Footwear M&A activity is up
14.6% year-to-date after the high reached in 2014.
U.S. Apparel, Accessories and Footwear M&A 1
350
300
305
302
290
Number Of Transactions
acquires
250
250
236
243
200
199
173
150
151
100
50
1) Includes U.S. and Canada
12
MOSS ADAMS CAPITAL LLC
Moss Adams at a Glance
Leadership through Experience and Results
Moss Adams Capital LLC
• Full-service investment
bank and strategic advisor
• Dedicated industry
specialists
• Advisory and execution
• Private equity
• Debt
• Mergers and acquisitions
• Restructuring
Long-Term Industry
Relationships
• All product types
• Public and private entities
• Full range of the capital
stack
Apparel, Accessories & Footwear
Moss Adams LLP
• Fully integrated accounting,
tax,
and business advisory firm
• 100+ years old
• Dominant in western US
• Middle-market specialists
• Accounting, tax, and
transaction Experience
• Real estate accounting best
practices
• Senior, experienced tax
specialists
• Leverageable transaction
resources
International Presence
• Dominance in Western US
• 2,300 employees in 24
offices
• Presence on national/global
basis
• Praxity affiliates across US
and more than 100
countries around globe
13
MOSS ADAMS CAPITAL LLC
Expert Teams
INDUSTRY KNOWLEDGE MATCHED
WITH AN EXPERIENCED TEAM
• Senior Level Attention
• Commitment to our Clients
• Professional Excellence
• Objective & Independent Advice
• Creating Value for Owners
• Global Presence & Capabilities
Premier accounting and financial
services advice for middle
market apparel, accessories and
footwear companies.
Apparel, Accessories & Footwear
14
MOSS ADAMS CAPITAL LLC
Moss Adams Capital Overview
Full Service Mid-Market Investment Bank
Corporate Finance
Comprehensive Industry Coverage
 Capital Placement – Equity and Debt
 Merger and acquisition advisory
 Strategic alternatives assessment
 Exclusive sales and divestitures
Aerospace,
Defense &
Government
Services
Automotive &
Dealer Services
Business &
Marketing Services
Consumer, Retail &
Apparel
Food, Beverage &
Agriculture
Healthcare Services
& Products
Industrials / Niche
Manufacturing
Infrastructure &
Construction
Paper, Plastics, &
Packaging
Real Estate,
Lodging & Leisure
Technology,
Communications, &
Media
Transportation &
Logistics
 Strategic planning
 Management buy-outs
 Recapitalizations
 Fairness opinions
 Restructuring and special situations advisory
Highlights and Accomplishments
 Completed over 250 transactions
 Access to key decision-makers among institutional
investor universe
 Coverage of relevant strategic partners
 Average of 20 years of investment banking experience
among senior leaders
Apparel, Accessories & Footwear
15
MOSS ADAMS CAPITAL LLC
Global Reach
Moss Adams is a founding member of Praxity, AISBL, a global alliance of independent accounting firms. In addition to its deep,
direct international relationships, Praxity provides access and trusted advisory expertise worldwide.
Europe
Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany,
Hungary, Ireland, Italy, Jersey, Latvia, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway,
Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden, Switzerland, Turkey, United Kingdom ,
Ukraine
North America
United States, Canada
Asia
China, Indonesia, Japan, South Korea,
Malaysia, Singapore, Taiwan, Thailand,
Vietnam
Middle East and
Indian
Subcontinent
Latin America and
Caribbean
Argentina, Brazil, Cayman
islands, Chile, Colombia,
Mexico, Puerto Rico, Uruguay,
Venezuela
Apparel, Accessories & Footwear
India, Israel, Lebanon,
Pakistan, United Arab
Emirates
Africa
Algeria, Angola, Benin, Botswana, Cameroon, Cape
Verde, Djibouti, Egypt, Ghana, Ivory Coast, Lesotho,
Madagascar, Mauritius, Morocco, Senegal, South
Africa, Tunisia, Zambia
16
Australasia
Australia, New Zealand
MOSS ADAMS CAPITAL LLC
Investment Banking: Global M&A Reach Through Local Relationships
Local, National and Global Reach
Our affiliation with CFxB consists of 150+ Corporate Finance Professionals across the U.S. and in over 25 countries.
more than 25 countries
Apparel, Accessories & Footwear
17
MOSS ADAMS CAPITAL LLC
Contact Us
Contributing Authors:
James Parr
Analyst
(949) 221- 4099
james.parr@mossadams.com
Richard Anderson
Managing Director
(949) 221-4006
rich.anderson@mossadams.com
Moss Adams Capital LLC
2040 Main Street
Suite 900
Irvine, CA 92614
999 Third Avenue
Suite 2800
Seattle, WA 98104
Wiley Kitchell
Managing Director
(206) 302-6780
wiley.kitchell@mossadams.com
Robert Miranda
Vice President
(949) 221-4021
robert.miranda@mossadams.com
Andrew Suen
Vice President
(949) 517-9428
andrew.suen@mossadams.com
Harman Wales
Managing Director
(206) 302-6770
jet.wales@mossadams.com
Scott Porter
Vice President
(206) 306-6326
scott.porter@mossadams.com
Bradley Erhart
Associate
(949) 517-9452
bradley.erhart@mossadams.com
Tyler Dale
Vice President
(949) 221-4030
tyler.dale@mossadams.com
James Rothenberger
Vice President
(206) 302-6777
james.rothenberger@mossadams.com
Apparel, Accessories & Footwear
18
MOSS ADAMS CAPITAL LLC