The Jones Group, Inc. to Sycamore Partners

Deal Information

Target

The Jones Group, Inc.

Acquiror

Sycamore Partners

Sector

Target Type

Public

Acquiror Type

Financial

Advisors

Citi, Solomon Partners

Enterprise Value

$1.2B

EV / LTM Sales

EV / LTM EBITDA

8.3x

EV / Fwd EBITDA

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

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

14 comps


Dec 2013	Lucky Brand Dungarees, Inc.	Leonard Green & Partners, L.P.	-	-	7.8x	-
Jul 2013	Maidenform Brands, Inc.	Hanesbrands Inc.	-	-	9.4x	-
May 2013	True Religion Apparel, Inc.	Towerbrook Capital Partners, L.P.	-	-	7.2x	-
Oct 2012	Warnaco Group, Inc.	PVH Corp.	-	-	9.0x	-
May 2012	Collective Brands	Wolverine World Wide Inc., Blum Capital Partners and Golden Gate Capital	-	-	8.3x	-
Jun 2011	The Timberland Company	V.F. Corporation	-	-	12.8x	-
Jun 2011	KG Group Holdings Limited	The Jones Group Inc.	-	-	10.4x	-
May 2010	Stuart Weitzman Holdings, LLC	The Jones Group Inc.	-	-	8.1x	-
Mar 2010	Tommy Hilfiger B.V.	PVH Corp.	-	-	8.1x	-
Sep 2007	Kellwood Company	Sun Capital Partners, Inc.	-	-	7.7x	-
May 2007	Stride Rite Corporation	Payless ShoeSource, Inc.	-	-	12.1x	-
Dec 2005	Tommy Hilfiger Corporation	Apax Partners LLP	-	-	6.3x	-
Jun 2004	Maxwell Shoe Company Inc.	The Jones Group Inc.	-	-	8.0x	-
Jul 2003	Nautica Enterprises Inc.	V.F. Corporation	-	-	6.2x	-
	Mean			-	8.7x	-
	Median			-	8.1x	-

EV / LTM EBITDA selected range: 6.5x - 9.5x

13 comps


-	Lucky Brand Jeans	Leonard Green & Partners	-	0.5x	7.8x	-
-	True Religion Apparel	TowerBrook Capital Partners	-	1.3x	7.3x	-
-	Warnaco Group	PVH Corp.	-	1.2x	9.4x	-
-	Kenneth Cole Productions	KCP Holdco	-	0.5x	8.9x	-
-	The Talbots	Sycamore Partners	-	0.3x	-	-
-	Collective Brands	Wolverine / Golden Gate Capital / Blum Capital	-	0.5x	8.0x	-
-	Timberland	V.F. Corporation	-	1.4x	12.8x	-
-	Kurt Geiger	Jones Apparel Group	-	1.0x	10.4x	-
-	J. Crew	TPG Capital / Leonard Green & Partners	-	1.6x	8.6x	-
-	Stuart Weitzman	Jones Apparel Group	-	1.7x	8.1x	-
-	Tommy Hilfiger	PVH Corp.	-	1.4x	8.5x	-
-	Kellwood Company	Sun Capital Partners	-	0.5x	7.7x	-
-	Tommy Hilfiger	Apax Partners	-	0.8x	6.3x	-
	Mean			1.0x	8.7x	-
	Median			1.0x	8.3x	-

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

WACC: 10.0% – 12.3%
Terminal method: Exit multiple
Terminal assumption: 6.0x – 7.0x (fiscal 2017E EBITDA (USD 391 million))
Forecast basis: the Projections (management), tax rate 37%, flat working-capital ratios, cash restructuri… more
the Projections (management), tax rate 37%, flat working-capital ratios, cash restructuring deducted for Q4 2013 and 2014
Forecast period: Q4 fiscal 2013 through fiscal 2017; discounted to 2013-10-05

WACC: 10.0% – 13.0%
Terminal method: Exit multiple
Terminal assumption: 6.0x – 8.0x (fiscal 2017E EBITDA)
Forecast basis: the Projections; restricted stock amortization treated as cash; tax rate 37%
Forecast period: 48 months from 2014-01-01 (2014E-2017E); NPV at 2013-12-13

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Citi	10.0% – 12.3%	Exit multiple	6.0x – 7.0x (fiscal 2017E EBITDA (USD 391 million))	the Projections (management), tax rate 37%, flat working-capital ratios, cash restructuri… more the Projections (management), tax rate 37%, flat working-capital ratios, cash restructuring deducted for Q4 2013 and 2014	Q4 fiscal 2013 through fiscal 2017; discounted to 2013-10-05	Open
Solomon Partners	10.0% – 13.0%	Exit multiple	6.0x – 8.0x (fiscal 2017E EBITDA)	the Projections; restricted stock amortization treated as cash; tax rate 37%	48 months from 2014-01-01 (2014E-2017E); NPV at 2013-12-13	Open