Kate Spade & Company to Coach, Inc.

Deal Information

Target

Kate Spade & Company

Acquiror

Coach, Inc.

Sector

Target Type

Public

Acquiror Type

Strategic

Advisors

Perella Weinberg

Enterprise Value

$2.4B

EV / LTM Sales

EV / LTM EBITDA

10.2x

EV / Fwd EBITDA

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

EV / LTM EBITDA selected range: 8.5x - 12.0x

11 comps


May 2011	Volcom, Inc.	PPR (Kering)	-	-	14.1x	-
Mar 2016	Tumi Holdings, Inc.	Samsonite International S.A.	-	-	13.8x	-
Jun 2011	Timberland Company	V.F. Corporation	-	-	12.9x	-
Jun 2011	Moncler	Eurazeo	-	-	12.0x	-
Mar 2014	Jos. A. Bank Clothiers Inc.	Men's Wearhouse Inc.	-	-	10.0x	-
May 2013	rue21, Inc.	Apax Partners	-	-	9.7x	-
Oct 2012	Warnaco Group	PVH Corporation	-	-	8.9x	-
Dec 2013	The Jones Group Inc.	Sycamore Partners	-	-	8.7x	-
Nov 2010	J Crew Group, Inc.	TPG Capital and Leonard Green & Partners, L.P.	-	-	8.6x	-
Mar 2013	Hot Topic, Inc.	Sycamore Partners	-	-	8.5x	-
May 2015	Ann, Inc.	Ascena Retail Group Inc.	-	-	7.8x	-
	Mean			-	10.5x	-
	Median			-	9.7x	-

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

WACC: 10.5% – 12.5%
Terminal method: Exit multiple
Terminal assumption: 8.0x – 10.0x (2019 EBITDA)
Forecast basis: the Projections (Company Forecast DCF), Wall Street consensus via FactSet (Wall Street Co… more
the Projections (Company Forecast DCF), Wall Street consensus via FactSet (Wall Street Consensus DCF) and two 2017-trend sensitivities
Forecast period: remainder of fiscal 2017 (Q2-Q4) through fiscal 2019; present value as of 2017-04-01

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Perella Weinberg	10.5% – 12.5%	Exit multiple	8.0x – 10.0x (2019 EBITDA)	the Projections (Company Forecast DCF), Wall Street consensus via FactSet (Wall Street Co… more the Projections (Company Forecast DCF), Wall Street consensus via FactSet (Wall Street Consensus DCF) and two 2017-trend sensitivities	remainder of fiscal 2017 (Q2-Q4) through fiscal 2019; present value as of 2017-04-01	Open