Belk, Inc. to Sycamore Partners

Deal Information

Target

Belk, Inc.

Acquiror

Sycamore Partners

Sector

Target Type

Public

Acquiror Type

Financial

Advisors

Goldman Sachs

Enterprise Value

$2.8B

EV / LTM Sales

EV / LTM EBITDA

6.9x

EV / Fwd EBITDA

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

5 comps


Jul 2004	Mervyn’s	Ceberus Capital	$1.6B	-	6.2x	-
Nov 2004	Sears	Kmart	$14.8B	-	7.3x	-
Feb 2005	May Department Stores	Federated Department Stores	$17.0B	-	8.6x	-
Oct 2005	Northern Department Stores	Bon-Ton Stores	$1.1B	-	6.7x	-
Jan 2006	Hudson’s Bay Company	Maple Leaf Heritage Investments	$1.6B	-	8.1x	-
	Mean			-	7.4x	-
	Median			-	7.3x	-

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

WACC: 8.5% – 9.5%
Terminal method: Perpetuity growth
Terminal assumption: 0.0% – 2.0%
Forecast basis: June Operating Plan Projections
Forecast period: last three quarters of the fiscal year ending January 2016 through fiscal 2020

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Goldman Sachs	8.5% – 9.5%	Perpetuity growth	0.0% – 2.0%	June Operating Plan Projections	last three quarters of the fiscal year ending January 2016 through fiscal 2020	Open