ANN INC. to Ascena Retail Group, Inc.

Deal Information

Target

ANN INC.

Acquiror

Ascena Retail Group, Inc.

Sector

Target Type

Public

Acquiror Type

Strategic

Advisors

JPMorgan

Enterprise Value

$2.0B

EV / LTM Sales

0.8x

EV / LTM EBITDA

8.2x

EV / Fwd EBITDA

7.4x

Comparable transactions cited by the advisor, excluding the subject transaction.

FV / LTM EBITDA selected range: 7.0x - 9.0x

11 comps


Jan 2014	DBA Lux Holding S.A.	Hanesbrands Inc.	-	-	7.5x	-
Jan 2014	Jos. A. Bank Clothiers, Inc.	The Men’s Wearhouse, Inc.	-	-	10.1x	-
Jan 2013	The Jones Group Inc.	Sycamore Partners	-	-	8.6x	-
Jan 2013	Lucky Brand Jeans	Leonard Green & Partners	-	-	7.2x	-
Jan 2013	Saks Incorporated	Hudson’s Bay Company	-	-	11.5x	-
Jan 2013	rue21, inc.	Apax Partners	-	-	9.7x	-
Jan 2013	True Religion Apparel, Inc.	TowerBrook Capital Partners	-	-	8.3x	-
Jan 2013	Hot Topic, Inc.	Sycamore Partners	-	-	8.5x	-
Jan 2012	J Brand Holdings, LLC	FAST RETAILING CO., LTD.	-	-	9.5x	-
Jan 2012	Charming Shoppes, Inc.	ascena	-	-	9.8x	-
Jan 2010	J.Crew Group, Inc.	TPG Capital / Leonard Green & Partners	-	-	8.6x	-
	Mean			-	9.0x	-
	Median			-	8.6x	-

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

WACC: 8.5% – 10.5%
Terminal method: Perpetuity growth
Terminal assumption: 1.0% – 2.0%
Forecast basis: four sets of ANN management projections
Forecast period: fiscal 2015 (ended January 2016) through 2024 (ended January 2025)

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
JPMorgan	8.5% – 10.5%	Perpetuity growth	1.0% – 2.0%	four sets of ANN management projections	fiscal 2015 (ended January 2016) through 2024 (ended January 2025)	Open