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Fairness Opinion Detail

TIF FOOpen source

Tiffany & Co. to LVMH

Luxury & Apparel/Oct 2020/Centerview, Goldman Sachs

Deal Information

Target
Tiffany & Co.
Acquiror
LVMH
Sector
Luxury & Apparel
Target Type
Public
Acquiror Type
Strategic
Advisors
Centerview, Goldman Sachs

Transaction Metrics

Enterprise Value
$16.6B
EV / LTM Sales
3.8x
EV / LTM EBITDA
16.6x
EV / Fwd EBITDA

Advisor Transaction Comparables

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

Advisor: Centerview

EV / LTM EBITDA selected range: 15.0x - 20.0x

9 comps
Mar 2011Bulgari S.p.A.LVMH Moët Hennessy-Louis Vuitton SE--25.8x-
Jan 2013Harry Winston Inc.The Swatch Group Ltd.--24.4x-
Jul 2013Loro Piana S.p.A.LVMH Moët Hennessy-Louis Vuitton SE--21.0x-
Feb 2014Zale CorporationSignet Jewelers Ltd.--15.6x-
Apr 2016SMCP S.A.Shandong Ruyi Technology Group Co., Ltd.--12.4x-
Apr 2017Christian Dior S.E.LVMH Moët Hennessy Louis Vuitton SE--15.6x-
May 2017Kate Spade & CompanyCoach, Inc.--10.4x-
Jul 2017Jimmy Choo PLCMichael Kors Holdings Limited--17.5x-
Sep 2018Gianni Versace S.r.l.Michael Kors Holdings Limited--22.0x-
Mean-18.3x-
Median-17.5x-

Advisor: Goldman Sachs

EV / LTM EBITDA selected range: 12.0x - 20.6x

10 comps
Mar 2011Bulgari S.p.A.LVMH--25.8x-
Mar 2013Harry Winston, Inc.The Swatch Group AG--24.4x-
Jul 2013Loro Piana S.p.A.LVMH--21.0x-
Mar 2015YOOX Net-A-Porter Group S.p.A.Compagnie Financiere Richemont AG--15.9x-
Aug 2016Tumi Holdings, Inc.
Classified as a US Target in the mean grouping 'Mean (US Targets, Kate Spade and Tumi)' with a mean of 12.0x.
Samsonite International S.A.--13.6x-
Apr 2017Christian Dior SELVMH--15.6x-
May 2017Kate Spade & Company
Classified as a US Target in the mean grouping 'Mean (US Targets, Kate Spade and Tumi)' with a mean of 12.0x.
Coach, Inc.--10.4x-
Jul 2017Jimmy Choo Group PlcMichael Kors Holdings Limited--17.5x-
Sep 2018Gianni Versace S.p.A.Michael Kors Holdings Limited--22.0x-
Dec 2018Belmond Ltd.LVMH--22.9x-
Mean-18.9x-
Median-19.3x-

DCF Assumptions

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

Centerview

Open
WACC
7.5% – 8.5%
Terminal method
Exit multiple
Terminal assumption
12.0x – 18.0x (Terminal Year EBITDA (approximately $1.7 billion))
Forecast basis
October 2020 management projections
Forecast period
July 31, 2020 through January 31, 2026

Goldman Sachs

Open
WACC
6.5% – 7.5%
Terminal method
Both
Terminal assumption
Exit multiple 12.0x – 15.0x (terminal year EBITDA (~$1.7B, FY January 31, 2026)); Perpetuity growth 1.4% – 3.5%
Forecast basis
October 2020 management projections
Forecast period
August 1, 2020 to January 31, 2026
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