Mergers & TribulationsTransaction Database
ContactSubscribe
Back

Fairness Opinion Detail

SPLS FOOpen source

Staples, Inc. to Sycamore Partners

General Retail/Jun 2017/Barclays, Morgan Stanley

Deal Information

Target
Staples, Inc.
Acquiror
Sycamore Partners
Sector
General Retail
Target Type
Public
Acquiror Type
Financial
Advisors
Barclays, Morgan Stanley

Transaction Metrics

Enterprise Value
$6.6B
EV / LTM Sales
EV / LTM EBITDA
5.0x
EV / Fwd EBITDA

Advisor Transaction Comparables

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

Advisor: Barclays

EV/LTM EBITDA selected range: 5.0x - 7.0x

26 comps
Feb 2016Rona Inc.Lowe's Companies, Inc.--12.7x-
Jun 2017Waterworks Operating Agreement LLCCD&R--10.5x-
Nov 2015Sleepy'sMattress Firm Inc.--10.9x-
Jul 2015Cromwell
(1) Assumed 10% EBITDA margin per announcement press release.
W.W. Grainger Inc.--11.0x-
Mar 2015PrimeSourcePlatinum Equity--7.9x-
Nov 2015Petco Animal Supplies, Inc.CVC Capital and CPPIB--9.0x-
Aug 2015Belk, Inc.Sycamore Partners--6.2x-
Aug 2014Tri-EDAnixter--11.7x-
Dec 2014PetSmart Inc.BC Partners--8.9x-
May 2014Hillman GroupCCMP--10.8x-
Jul 2014Family Dollar Stores, Inc.Dollar Tree, Inc.--11.6x-
Aug 2011FaboryW.W. Grainger Inc.----
Feb 2014ZalesSignet Jewelers Ltd.--18.5x-
Apr 2010Hillman GroupOak Hill--9.6x-
Nov 2013Jos A. Bank Clothiers, Inc.Men's Wearhouse Inc.--10.5x-
Sep 2013Neiman MarcusAres Management, CPPIB--9.4x-
Oct 2013General Parts Inc.Advance Auto Parts Inc.--8.8x-
Sep 2013Yankee CandleJarden Corporation--8.5x-
Jul 2013Saks IncorporatedHudson Bay Company (HBC)--10.8x-
Feb 2013OfficeMaxOffice Depot, Inc.--4.8x-
May 2012Cost Plus World MarketBed Bath & Beyond Inc.--12.6x-
May 2012Charming ShoppesAscena Retail Group--9.8x-
Oct 201199 Cents Only StoresAres Management--9.0x-
Jun 2011BJ's WholesaleLeonard Green, CVC--6.8x-
Dec 2010Jo-Ann StoresLeonard Green--7.1x-
Nov 2010J. Crew GroupLeonard Green, TPG--8.6x-
Mean-9.8x-
Median-9.6x-

Advisor: Morgan Stanley

EV/LTM EBITDA selected range: 5.0x - 7.0x

26 comps
Jun 2017Waterworks Operating Agreement LLCCD&R--10.5x-
Feb 2016Rona Inc.Lowe's Companies, Inc.--12.7x-
Jul 2015Cromwell
(1) Assumed 10% EBITDA margin per announcement press release.
W.W. Grainger Inc.--11.0x-
Nov 2015Sleepy'sMattress Firm Inc.--10.9x-
Mar 2015PrimeSourcePlatinum Equity--7.9x-
Nov 2015Petco Animal Supplies, Inc.CVC Capital and CPPIB--9.0x-
Aug 2015Belk, Inc.Sycamore Partners--6.2x-
Aug 2014Tri-EDAnixter--11.7x-
Dec 2014PetSmart Inc.BC Partners--8.9x-
May 2014Hillman GroupCCMP--10.8x-
Aug 2011FaboryW.W. Grainger Inc.----
Jul 2014Family Dollar Stores, Inc.Dollar Tree, Inc.--11.6x-
Apr 2010Hillman GroupOak Hill--9.6x-
Feb 2014ZalesSignet Jewelers Ltd.--18.5x-
Nov 2013Jos A. Bank Clothiers, Inc.Men's Wearhouse Inc.--10.5x-
Sep 2013Neiman MarcusAres Management, CPPIB--9.4x-
Oct 2013General Parts Inc.Advance Auto Parts Inc.--8.8x-
Sep 2013Yankee CandleJarden Corporation--8.5x-
Jul 2013Saks IncorporatedHudson Bay Company (HBC)--10.8x-
Feb 2013OfficeMaxOffice Depot, Inc.--4.8x-
May 2012Cost Plus World MarketBed Bath & Beyond Inc.--12.6x-
May 2012Charming ShoppesAscena Retail Group--9.8x-
Oct 201199 Cents Only StoresAres Management--9.0x-
Jun 2011BJ's WholesaleLeonard Green, CVC--6.8x-
Dec 2010Jo-Ann StoresLeonard Green--7.1x-
Nov 2010J. Crew GroupLeonard Green, TPG--8.6x-
Mean-9.8x-
Median-9.6x-

DCF Assumptions

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

Barclays

Open
WACC
8.91% – 10.21%
Terminal method
Exit multiple
Terminal assumption
4.5x – 6.5x (LTM EBITDA (terminal year FY2021E))
Forecast basis
Management Forecasts (Company Forecasts)
Forecast period
fiscal years 2017 through 2021

Morgan Stanley

Open
WACC
8.1% – 9.8%
Terminal method
Exit multiple
Terminal assumption
4.5x – 6.5x (FY2021 LTM EBITDA)
Forecast basis
Management Forecasts (the Forecasts)
Forecast period
fiscal years 2017 through 2021
Compare across opinions →