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Primary Mufson Howe Hunter Contacts:
Anthony J. Lopez-Ona Managing Director 215.399.5405 alopezona@mhhco.com Michael J. Mufson Managing Director 215.399.5410 mmufson@mhhco.com Brandon K. Eck Managing Director 215.399.5411 beck@mhhco.com Peter J. Hill Managing Director 215.399.5407 phill@mhhco.com Michael J. Howe Managing Director 215.399.5413 mhowe@mhhco.com Joseph M. Manko, Jr. Managing Director 215.399.5402 jmanko@mhhco.com
Consumer Products Update March 2018 The Mufson Howe Hunter Consumer Products Update is designed to update business leaders, investors and industry professionals on current market trends and important developments within the consumer products sector of the economy. This report contains information on select companies in various subsectors within consumer products emphasizing financial performance, stock performance and M&A transactions.
Mufson Howe Hunter & Company LLC is a middle-market focused investment bank providing M&A, capital raising and financial advisory services. Member SIPC | FINRA
0
MHH Sectors
Cleaning and Bath Products
Décor
Furniture
Hardware and Outdoor
Household Appliances
Housewares
MHH’s coverage of the Consumer Products Sector spans companies in the following six sub-segments for each
of which our index has been calculated as follows:
The MHH Cleaning and Bath Products Index is currently comprised of Church & Dwight Co., Inc., Colgate-
Palmolive Company, Kimberly-Clark Corporation, McBride plc, Prestige Brands Holdings, Inc., PZ Cussons Plc,
Reckitt Benckiser Group plc, The Clorox Company and The Procter & Gamble Company.
The MMH Décor Index is currently comprised of Armstrong World Industries, Inc., Colefax Group plc, Culp, Inc.,
Fortune Brands Home & Security, Inc., Interface, Inc., Masco Corporation, Mohawk Industries, Inc., OMNOVA
Solutions Inc., RPM International Inc., The Dixie Group, Inc., The Sherwin-Williams Company and Walker
Greenbank plc.
The MHH Furniture Index is currently comprised of Albany International Corp., Bassett Furniture Industries,
Incorporated, Crown Crafts, Inc., CSS Industries, Inc., Flexsteel Industries, Inc., Herman Miller, Inc., HNI
Corporation, Hooker Furniture Corporation, Kimball International, Inc., Knoll, Inc., Leggett & Platt, Incorporated,
Steelcase Inc., Tempur Sealy International, Inc. and Unifi, Inc.
The MHH Hardware and Outdoor Index is currently comprised of Central Garden & Pet Company, Einhell
Germany AG, HRG Group, Inc., Husqvarna AB (publ), P&F Industries, Inc., Spectrum Brands Holdings, Inc.,
Techtronic Industries Company Limited, The Toro Company and WD-40 Company.
The MMH Household Appliance Index is currently comprised of AB Electrolux, De'Longhi S.p.A., Fiskars Oyj,
iRobot Corporation, NACCO Industries, Inc., Stanley Black & Decker, Inc. and Whirlpool Corporation.
The MHH Housewares Index is currently comprised of BHS Tabletop AG, Churchill China plc, Duni AB (publ),
Helen of Troy Limited, Henkel AG & Co. KGaA, Leifheit AG, Libbey Inc., Lifetime Brands, Inc., Newell Brands Inc.,
Portmeirion Group plc, SEB SA and Tupperware Brands Corporation.
The companies that comprise each Index can change periodically as a result of a variety of reasons, including
mergers, acquisitions, initial public offerings and other transactions; therefore, comparisons to historical time
periods and historical performance for each Index may not entirely correspond and correlate to the Index’s
current performance. In addition, historical performance is not a guarantee or prediction of future results.
The information and statistical data contained herein have been obtained from sources that Mufson Howe
Hunter believes are reliable, but Mufson Howe Hunter makes no representation or warranty as to the accuracy
or completeness of any such information and data and expressly disclaims any and all liability relating to or
resulting from your use of these materials. The information and data contained herein are current and only as
of the date(s) indicated and Mufson Howe Hunter has no intention, obligation or duty to update these materials
after such date(s). These materials do not constitute an offer to sell or the solicitation of an offer to buy any
securities. Copyright © 2018 Mufson Howe Hunter & Company LLC. All rights reserved. The Consumer Products
Update is produced by Mufson Howe Hunter. Mufson Howe Hunter provides a full range of investment banking
services to consumer and retail companies. For more information, visit www.mhhco.com.
TABLE OF CONTENTS
Consumer Products Group Summary ................................................................... 3
Cleaning and Bath Products .................................................................................. 5
Décor .................................................................................................. 10
Furniture .................................................................................................. 14
Hardware and Outdoor ...................................................................................... 19
Household Appliances ........................................................................................ 23
Housewares .................................................................................................. 27
5
Consumer Products Group Summary
1
Public Comp Group Valuation Metrics
Consumer Products
Comparable Company Analysis
($ in millions, except per share data) Market & Capitalization LTM Performance Valuation Margins
Equity Enterprise Price/ Gross
Company Price (1) Value Value (2) Revenue EBITDA EPS Revenue EBITDA EPS Profit EBITDA
Cleaning and Bath Products
The Procter & Gamble Company (NYSE:PG) $78.52 $197,949.2 $218,519.2 $65,732.0 $17,841.0 $3.75 3.32 x 12.2 x 20.9 x 51.0% 27.1%
Reckitt Benckiser Group plc (LSE:RB.) 79.69 56,115.7 70,680.8 15,559.9 4,296.8 6.42 4.54 x 16.4 x 12.4 x 61.1% 27.6%
Colgate-Palmolive Company (NYSE:CL) 68.97 60,371.3 65,705.3 15,454.0 4,397.0 2.28 4.25 x 14.9 x 30.3 x 60.5% 28.4%
Kimberly-Clark Corporation (NYSE:KMB) 110.92 38,829.2 45,952.2 18,259.0 4,114.0 6.40 2.52 x 11.2 x 17.3 x 35.9% 22.0%
The Clorox Company (NYSE:CLX) 129.08 16,703.5 18,497.5 6,040.0 1,266.0 6.07 3.06 x 14.6 x 21.3 x 44.4% 20.6%
Church & Dwight Co., Inc. (NYSE:CHD) 49.19 12,008.6 14,104.0 3,776.2 908.1 2.90 3.73 x 15.5 x 17.0 x 45.8% 23.8%
Prestige Brands Holdings, Inc. (NYSE:PBH) 33.80 1,792.7 3,800.6 1,025.9 345.7 7.29 3.70 x 11.0 x 4.6 x 55.8% 33.7%
PZ Cussons Plc (LSE:PZC) 3.90 1,629.9 1,930.0 1,102.7 178.4 0.21 1.75 x 10.8 x 18.3 x 37.4% 15.8%
McBride plc (LSE:MCB) 2.15 392.9 559.7 963.7 59.5 (0.02) 0.58 x 9.4 x NM 34.5% 6.2%
Mean $42,865.9 $48,861.0 $14,212.6 $3,711.8 $3.92 3.05x 12.9x 17.8x 47.4% 22.8%
Median 16,703.5 18,497.5 6,040.0 1,266.0 3.75 3.32x 12.2x 17.8x 45.8% 23.8%
Décor
The Sherwin-Williams Company (NYSE:SHW) $401.58 $37,592.2 $47,908.6 $14,983.8 $2,451.5 $19.11 3.20 x 19.5 x 21.0 x 45.6% 16.4%
Mohawk Industries, Inc. (NYSE:MHK) 239.88 17,853.2 20,569.2 9,491.3 1,863.1 12.98 2.17 x 11.0 x 18.5 x 32.1% 19.6%
Masco Corporation (NYSE:MAS) 41.12 12,886.7 14,905.7 7,644.0 1,297.0 1.66 1.95 x 11.5 x 24.8 x 34.2% 17.0%
Fortune Brands Home & Security, Inc. (NYSE:FBHS) 60.66 8,978.8 10,165.0 5,283.3 851.6 3.05 1.92 x 11.9 x 19.9 x 36.7% 16.1%
RPM International Inc. (NYSE:RPM) 49.77 6,652.6 8,544.5 5,176.2 673.4 2.57 1.65 x 12.7 x 19.3 x 42.8% 13.0%
Colfax Corporation (NYSE:CFX) 31.79 3,920.6 4,796.9 3,300.2 425.9 (0.59) 1.45 x 11.3 x NM 31.2% 12.9%
Armstrong World Industries, Inc. (NYSE:AWI) 60.30 3,202.2 3,892.6 893.6 322.1 4.08 4.36 x 12.1 x 14.8 x 36.6% 28.5%
Interface, Inc. (NasdaqGS:TILE) 24.20 1,436.0 1,578.9 996.4 147.4 0.86 1.58 x 10.7 x 28.2 x 38.7% 14.8%
OMNOVA Solutions Inc. (NYSE:OMN) 10.10 452.6 718.6 783.1 81.9 (1.98) 0.92 x 8.8 x NM 25.6% 10.5%
Culp, Inc. (NYSE:CULP) 27.80 346.1 304.0 322.9 36.2 1.14 0.94 x 8.4 x 24.4 x 20.8% 11.3%
The Dixie Group, Inc. (NasdaqGM:DXYN) 3.10 48.7 184.2 412.5 17.6 (0.59) 0.45 x 10.4 x NM 24.5% 4.3%
Walker Greenbank plc (AIM:WGB) 1.99 140.8 147.6 138.1 14.3 0.09 1.07 x 10.3 x 23.2 x 59.9% 10.3%
Mean $7,792.5 $9,476.3 $4,118.8 $681.8 $3.53 1.80x 11.6x 21.6x 35.7% 14.6%
Median 3,561.4 4,344.8 2,148.3 374.0 1.40 1.62x 11.2x 21.0x 35.4% 13.9%
Furniture
Leggett & Platt, Incorporated (NYSE:LEG) $43.46 $5,732.2 $6,458.4 $3,943.8 $559.6 $2.14 1.64 x 11.5 x 20.3 x 22.0% 14.2%
Tempur Sealy International, Inc. (NYSE:TPX) 49.43 2,685.3 4,398.7 2,754.4 395.6 2.77 1.60 x 11.1 x 17.8 x 41.8% 13.8%
Albany International Corp. (NYSE:AIN) 63.65 2,049.5 2,385.2 863.7 160.8 1.03 2.76 x 14.8 x 61.8 x 34.6% 18.6%
Herman Miller, Inc. (NasdaqGS:MLHR) 35.90 2,142.2 2,240.3 2,340.4 265.4 2.15 0.96 x 8.4 x 16.7 x 37.0% 11.2%
HNI Corporation (NYSE:HNI) 36.98 1,599.3 1,851.0 2,175.9 192.6 2.00 0.85 x 9.6 x 18.5 x 37.3% 8.9%
Steelcase Inc. (NYSE:SCS) 13.65 1,585.3 1,597.2 3,055.5 221.9 0.68 0.52 x 7.2 x 20.2 x 32.9% 7.3%
Knoll, Inc. (NYSE:KNL) 21.27 1,033.6 1,222.7 1,132.9 135.1 1.63 1.08 x 9.0 x 13.0 x 36.6% 11.9%
Unifi, Inc. (NYSE:UFI) 35.00 640.4 724.5 663.9 68.2 2.14 1.09 x 10.6 x 16.4 x 14.2% 9.2%
Kimball International, Inc. (NasdaqGS:KBAL) 16.43 615.9 536.5 668.2 70.2 0.96 0.80 x 7.6 x 17.1 x 33.3% 10.5%
Hooker Furniture Corporation (NasdaqGS:HOFT) 37.35 438.7 461.5 619.0 54.2 2.64 0.75 x 8.5 x 14.2 x 21.9% 8.7%
Bassett Furniture Industries, Incorporated (NasdaqGS:BSET) 32.20 346.6 273.3 452.5 40.8 1.70 0.60 x 6.7 x 18.9 x 60.8% 9.0%
Flexsteel Industries, Inc. (NasdaqGS:FLXS) 38.86 305.1 267.6 487.4 42.2 3.29 0.55 x 6.3 x 11.8 x 22.3% 8.7%
CSS Industries, Inc. (NYSE:CSS) 18.41 167.9 186.6 339.0 17.5 (0.36) 0.55 x 10.7 x NM 29.3% 5.2%
Crown Crafts, Inc. (NasdaqCM:CRWS) 6.50 65.6 67.8 64.9 9.0 0.34 1.04 x 7.6 x 19.3 x 29.4% 13.8%
Mean $1,386.3 $1,619.4 $1,397.3 $159.5 $1.65 1.06x 9.3x 20.5x 32.4% 10.8%
Median 837.0 973.6 766.0 102.7 1.85 0.90x 8.8x 17.8x 33.1% 9.9%
(continued on next page)
Enterprise Value/
Consumer Products Group Summary
2
($ in millions, except per share data) Market & Capitalization LTM Performance Valuation Margins
Equity Enterprise Price/ Gross
Company Price (1) Value Value (2) Revenue EBITDA EPS Revenue EBITDA EPS Profit EBITDA
Hardware and Outdoor
Techtronic Industries Company Limited (SEHK:669) $6.27 $11,509.7 $11,425.3 $6,063.6 $622.8 $0.26 1.88 x 18.3 x 24.5 x 36.7% 10.3%
Spectrum Brands Holdings, Inc. (NYSE:SPB) 98.71 5,463.6 9,314.7 5,051.6 $855.4 $6.89 1.84 x 10.9 x 14.3 x 37.5% 16.9%
HRG Group, Inc. (NYSE:HRG) 15.79 3,184.8 8,167.4 5,052.7 $823.6 $0.16 1.62 x 9.9 x NM 37.6% 16.3%
The Toro Company (NYSE:TTC) 63.57 6,739.7 6,835.4 2,537.6 $435.1 $2.21 2.69 x 15.7 x 28.7 x 36.7% 16.8%
Husqvarna AB (publ) (OM:HUSQ B) 10.73 6,126.2 6,879.6 4,812.6 $623.7 $0.56 1.43 x 11.0 x 19.0 x 31.6% 13.0%
Central Garden & Pet Company (NasdaqGS:CENT) 38.63 2,004.2 2,412.2 2,077.0 $204.0 $1.87 1.16 x 11.8 x 20.7 x 31.0% 9.9%
WD-40 Company (NasdaqGS:WDFC) 124.70 1,742.6 1,777.1 388.9 $83.6 $3.80 4.57 x 21.3 x 32.8 x 55.8% 21.5%
Einhell Germany AG (DB:EIN3) 114.77 433.2 495.9 635.6 $45.6 $5.52 0.78 x 10.9 x 20.8 x 34.1% 7.2%
P&F Industries, Inc. (NasdaqGM:PFIN) 7.34 26.5 27.7 56.9 $1.8 ($0.04) 0.49 x 15.4 x NM 35.0% 3.2%
Mean $4,136.7 $5,259.5 $2,964.1 $410.6 $2.36 1.83x 13.9x 23.0x 37.3% 12.8%
Median 3,184.8 6,835.4 2,537.6 435.1 1.87 1.62x 11.8x 20.8x 36.7% 13.0%
Household & Family Electonics / Appliances
Stanley Black & Decker, Inc. (NYSE:SWK) $159.19 $24,533.0 $28,535.7 $12,747.2 $2,077.1 $8.04 2.24 x 13.7 x 19.8 x 37.8% 16.3%
Whirlpool Corporation (NYSE:WHR) 162.43 11,482.6 16,434.6 21,253.0 2,042.0 4.70 0.77 x 8.0 x 34.6 x 16.9% 9.6%
AB Electrolux (publ) (OM:ELUX B) 33.06 9,501.0 9,241.6 14,911.5 1,266.1 2.43 0.62 x 7.3 x 13.6 x 20.9% 8.5%
De'Longhi S.p.A. (BIT:DLG) 28.30 4,231.3 3,940.3 2,368.9 371.6 0.00 1.66 x 10.6 x NM 24.6% 15.7%
iRobot Corporation (NasdaqGS:IRBT) 67.95 1,898.9 1,733.0 883.9 96.6 1.77 1.96 x 17.9 x 38.4 x 50.4% 10.9%
Fiskars Oyj Abp (HLSE:FSKRS) 27.78 2,269.8 1,788.6 1,423.5 146.5 2.45 1.26 x 12.2 x 11.4 x 43.2% 10.3%
NACCO Industries, Inc. (NYSE:NC) 41.20 285.6 242.2 104.8 41.1 4.14 2.31 x 5.9 x 10.0 x 16.1% -20.5%
Mean $7,743.2 $8,845.1 $7,670.4 $863.0 $3.36 1.55x 10.8x 21.3x 30.0% 7.3%
Median 4,231.3 3,940.3 2,368.9 371.6 2.45 1.66x 10.6x 16.7x 24.6% 10.3%
Housewares
Henkel AG & Co. KGaA (XTRA:HEN3) $133.46 $57,956.8 $61,811.3 $24,050.2 $4,645.8 $6.96 2.57 x 13.3 x 19.2 x 47.3% 19.3%
Newell Brands Inc. (NYSE:NWL) 25.69 12,464.8 22,568.1 14,742.2 2,055.8 5.63 1.53 x 11.0 x 4.6 x 34.5% 13.9%
SEB SA (ENXTPA:SK) 205.01 10,170.7 12,650.2 7,786.5 900.8 9.01 1.62 x 14.0 x 22.8 x 10.4% 11.6%
Tupperware Brands Corporation (NYSE:TUP) 49.05 2,507.3 3,101.3 2,255.8 407.6 (5.22) 1.37 x 7.6 x NM 67.2% 18.1%
Helen of Troy Limited (NasdaqGS:HELE) 90.05 2,428.5 2,833.4 1,567.8 227.8 0.73 1.81 x 12.4 x NM 44.1% 14.5%
Duni AB (publ) (OM:DUNI) 14.12 663.5 750.0 542.5 77.2 0.85 1.38 x 9.7 x 16.5 x 28.5% 14.2%
Libbey Inc. (AMEX:LBY) 6.27 138.1 498.0 785.2 74.1 (4.24) 0.63 x 6.7 x NM 19.3% 9.4%
Lifetime Brands, Inc. (NasdaqGS:LCUT) 13.95 285.8 373.1 579.5 34.4 0.14 0.64 x 10.8 x NM 37.1% 5.9%
Leifheit Aktiengesellschaft (DB:LEI) 36.14 343.7 281.6 277.8 27.7 1.45 1.01 x 10.2 x 24.9 x 46.2% 10.0%
Portmeirion Group plc (AIM:PMP) 13.66 146.2 144.1 114.6 15.2 0.88 1.26 x 9.5 x 15.6 x 10.7% 13.0%
Churchill China plc (AIM:CHH) 14.00 153.5 140.1 68.7 11.6 0.68 2.04 x 12.1 x 20.5 x 82.7% 16.6%
BHS tabletop AG (DB:HUL) 0.00 0.0 (1.5) 138.1 11.8 1.04 -0.01 x NM 0.0 x 72.6% 8.6%
Mean $7,271.6 $8,762.5 $4,409.1 $707.5 $1.49 1.32x 10.7x 15.5x 41.7% 12.9%
Median 503.6 624.0 682.3 75.6 0.86 1.38x 10.8x 17.8x 40.6% 13.5%
NA = Not Available; NM = Not Meaningful; LTM = Latest Twelve Months (1) As of close February 28, 2018
‡ = excluded from Mean and Median calculations (2)
Source: Public Filings, Press Releases and Published Research Reports.
Enterprise value is defined as equity value plus net debt, preferred stock and minority interests. Net Debt includes long
term debt, short term debt, postretirement benefits and unfunded pensions, if applicable, less cash and cash
equivalents.
Enterprise Value/
Consumer Products Group Summary
3
Residential Construction Trend
1) Source: US Census Bureau
500600700800900
1,0001,1001,2001,3001,4001,500
Mar
20
16
Ap
r 2
01
6
May
20
16
Jun
20
16
Jul 2
01
6
Au
g 2
01
6
Sep
20
16
Oct
20
16
No
v 2
01
6
Dec
20
16
Jan
20
17
Feb
20
17
Mar
20
17
Ap
r 2
01
7
May
20
17
Jun
20
17
Jul 2
01
7
Au
g 2
01
7
Sep
20
17
Oct
20
17
No
v 2
01
7
Dec
20
17
Jan
20
18
Feb
20
18
New Residential Construction (1)
Permits Starts Completions
Consumer Products Group Summary
4
Public Comp Group – Operating Performance vs. EBITDA Multiple Analysis (1)
1) Companies with statistically significant outliers for EBITDA multiples are not included in graphs
2) Exclude NC because of significant one time gain from a sale of division
12.2x
16.4x
14.9x
11.2x
14.6x15.5x
11.0x10.8x 9.4x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
EBIT Margin EBITDA Margin Gross Margin EBITDA Multiple
Source: CapitalIQ and MHH
Operating Performance vs. EBITDA Multiple - Cleaning & Bath Products
NY
SE:P
G
LSE
:RB
NY
SE:C
L
NY
SE:K
MB
NY
SE:C
LX
NY
SE:C
HD
NY
SE:P
BH
LSE
:PZC
LSE
:MC
B
19.5x
11.0x11.5x
11.9x12.7x
11.3x12.1x 10.7x
8.8x
8.4x10.4x
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
EBIT Margin EBITDA Margin Gross Margin EBITDA Multiple
Source: CapitalIQ and MHH
Nas
daq
GM
: DX
YN
AIM
: WG
B
NYS
E: O
MN
Nas
daq
GS:
TILE
Operating Performance vs. EBITDA Multiple - Decor
NYS
E: S
HW
NYS
E: M
HK
NYS
E: M
AS
NYS
E: F
BH
S
NYS
E: R
PM
NYS
E: C
FX
NYS
E: A
WI
11.5x
11.1x
14.8x
8.3x9.6x
7.2x
9.0x
10.6x
7.6x
8.5x
6.7x 6.3x
10.7x
7.6x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
EBIT Margin EBITDA Margin Gross Margin EBITDA Multiple
Source: CapitalIQ and MHH
Nas
daq
GM
:KB
AL
Nas
daq
GS:
BSE
T
NYS
E:U
FI
Nas
daq
GM
:KB
AL
Nas
daq
GS:
FLX
S
Nas
daq
GS:
FLX
S
Nas
daq
CM
:CR
WS
Operating Performance vs. EBITDA Multiple - Furniture
NYS
E: L
EG
NYS
E: T
PX
Nas
daq
GS:
MLH
R
NYS
E: A
IN
NYS
E: H
NI
NYS
E: S
CS
NYS
E: K
NL
18.3x
10.9x9.9x
15.7x
11.7x11.8x
21.3x
10.9x
15.4x
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
EBIT Margin EBITDA Margin Gross Margin EBITDA Multiple
Source: CapitalIQ and MHH
DB
:EIN
3
Nas
daq
GS:
CEN
T
Operating Performance vs. EBITDA Multiple - Hardware
OM
: HU
SQ B
SEH
K:6
69
NYS
E: H
RG
NYS
E: T
TC
Nas
daq
GS:
WD
FC
Nas
daq
GM
:PFI
N
NYS
E:H
RG
13.7x
8.0x7.3x
10.6x
17.9x
12.2x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
20.0x
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
EBIT Margin EBITDA Margin Gross Margin EBITDA Multiple
Source: CapitalIQ and MHH
Operating Performance vs. EBITDA Multiple - Household Appliances(2)
OM
:ELU
X B
NYS
E: S
WK
OM
: WH
R
BIT
: DLG
Nas
daq
GS:
IRB0
T
HLS
E: F
SKR
S
13.3x
11.0x
14.0x
7.6x
12.4x
9.7x6.7x
10.8x
10.2x9.7x
12.1x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
EBIT Margin EBITDA Margin Gross Margin EBITDA Multiple
Source: CapitalIQ and MHH
AIM
:CH
H
AIM
: PM
P
DB
: LEI
Nas
daq
GS:
LCU
r
Operating Performance vs. EBITDA Multiple - Housewares
DB
: HEN
3
NYS
E: N
WL
ENX
TPA
: SK
OM
: DU
NI
NYS
E: T
UP
Nas
daq
GS:
HEL
E
NYS
E: A
WI
Cleaning and Bath Products
5
Comparative Index Performance (Three-year and One-year)
Last Three Years
Last Twelve Months
Source: CapitalIQ
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%2
/28
/15
4/3
0/1
5
6/3
0/1
5
8/3
1/1
5
10
/31
/15
12
/31
/15
2/2
9/1
6
4/3
0/1
6
6/3
0/1
6
8/3
1/1
6
10
/31
/16
12
/31
/16
2/2
8/1
7
4/3
0/1
7
6/3
0/1
7
8/3
1/1
7
10
/31
/17
12
/31
/17
2/2
8/1
8
MHH Comp Group Cleaning and Bath Products Index S&P 500 NASDAQ Composite Index
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2/2
8/1
7
4/3
0/1
7
6/3
0/1
7
8/3
1/1
7
10
/31
/17
12
/31
/17
2/2
8/1
8
MHH Comp Group Cleaning and Bath Products Index S&P 500 NASDAQ Composite Index
Cleaning and Bath Products
6
Valuation Trend Enterprise Value/LTM Revenue
Enterprise Value/LTM EBITDA
Source: CapitalIQ
3.01x 3.06x 3.02x 3.10x3.42x
3.21x 3.16x 3.05x
3.44x3.61x 3.74x 3.82x
3.49x3.79x 3.70x 3.78x 3.89x
0.00x
0.50x
1.00x
1.50x
2.00x
2.50x
3.00x
3.50x
4.00x
4.50x
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
Q4
'17
Quarterly Median EV/ REV 1 Yr. Moving Average
12.7x11.8x
13.1x 13.1x
14.6x 14.2x13.6x 13.9x 14.4x 14.3x
15.6x14.8x
14.2x 14.3x15.6x
14.7x 14.4x
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
Q4
'17
Quarterly Median EV/ EBITDA 1 Yr. EV/EBITDA Moving Avg Qtrly LTM EBITDA Margin
Cleaning and Bath Products
7
Valuation and Operating Performance Matrices Graphs adjusted to eliminate statistical outliers.
NYSE:PG
LSE:RB.
NYSE:CL
NYSE:KMB
NYSE:CLXNYSE:CHD
LSE:PZC
LSE:MCB
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
-7.5% -5.0% -2.5% 0.0% 2.5% 5.0%
EBIT
DA
Mu
ltip
le
3-Yr Revenue CAGRSource: CapitalIQ and MHH
3-Yr Revenue CAGR vs. EBITDA Multiple
NYSE:PG
LSE:RB.
NYSE:CL
NYSE:KMB
NYSE:CLXNYSE:CHD
NYSE:PBH
LSE:PZC
LSE:MCB
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
-15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0%
EBIT
DA
Mu
ltip
le
3-YR EBITDA CAGR
Source: CapitalIQ and MHH
3-Yr EBITDA CAGR vs. EBITDA Multiple
NYSE:PG
LSE:RB.
NYSE:CL
NYSE:KMB
NYSE:CLX
NYSE:CHD
NYSE:PBH
LSE:PZC
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
EBIT
DA
Mu
ltip
le
LTM EBITDA MarginSource: CapitalIQ and MHH
EBITDA Margin vs. EBITDA Multiple
NYSE:PGNYSE:CL
NYSE:KMB
NYSE:CLX NYSE:CHD
NYSE:PBHLSE:PZC
LSE:MCB
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
(40.0) (20.0) - 20.0 40.0 60.0 80.0 100.0
EBIT
DA
Mu
ltip
le
Cash Conversion Cycle (Days)Source: CapitalIQ and MHH CCC = DIO + DRO + DPO
Cash Conversion Cycle vs. EBITDA Multiple
NYSE:PG
LSE:RB. NYSE:CL
NYSE:KMB
NYSE:CLX
NYSE:CHD
NYSE:PBH
LSE:PZC
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Inve
nto
ry T
urn
ove
r R
atio
LTM EBITDA MarginSource: CapitalIQ and MHH
EBITDA Margin vs. Inventory Turn Ratio
NYSE:PG
LSE:RB.
NYSE:CL
NYSE:KMB
NYSE:CLXNYSE:CHD
NYSE:PBHLSE:PZC
LSE:MCB
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
EBIT
DA
Mu
ltip
le
LTM Free Cash Flow Margin
FCF Margin = (EBITDA - Capex) / RevSource: CapitalIQ and MHH
Free Cash Flow Margin vs. EBITDA Multiple
Cleaning and Bath Products
8
Valuation and Operating Performance Matrices (cont.)
Graphs adjusted to eliminate statistical outliers
NYSE:PG
NYSE:CL
NYSE:KMB
NYSE:CLX
NYSE:CHD
NYSE:PBH
LSE:PZC
LSE:MCB
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
EBIT
DA
Mu
ltip
le
Capital Intensity RatioSource: CapitalIQ and MHH Capital Intensity = (NWC - Cash + PP&E) / Revenues
Capital Intensity vs. EBITDA Multiple
NYSE:PG
LSE:RB.
NYSE:CL
NYSE:KMB
NYSE:CLX
NYSE:CHD
NYSE:PBH
LSE:PZC
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
0.0% 5.0% 10.0% 15.0% 20.0%
EBIT
DA
Mu
ltip
le
Return on AssetsSource: CapitalIQ and MHH
Return on Assets vs. EBITDA Multiple
Selected M&A Transactions: 2/1/18 - 2/28/18
Announced Target Target Description Acquirer Value
2/6/18 Snowberry New
Zealand Ltd.
Manufactures skin care products The Procter & Gamble Company
(NYSE:PG)
ND
ND – Not disclosed. Transaction values in millions.
Selected News Announcements
Church & Dwight Co., Inc (NYSE:CHD) announced a quarterly dividend payable March 1, 2018. McBride plc (LSE:MCB) announced a dividend payable in May 2018. The Procter & Gamble Company (NYSE: PG) announced the appointment of Joseph Jimenez and Nelson Peltz to the company’s Board of Directors effective March 1, 2018. The Clorox Company (NYSE: CLX) announced a quarterly dividend payable May 11, 2018.
Décor
9
Comparative Index Performance (Three-year and One-year)
Last Three Years
Last Twelve Months
Source: CapitalIQ
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%2
/28
/15
4/3
0/1
5
6/3
0/1
5
8/3
1/1
5
10
/31
/15
12
/31
/15
2/2
9/1
6
4/3
0/1
6
6/3
0/1
6
8/3
1/1
6
10
/31
/16
12
/31
/16
2/2
8/1
7
4/3
0/1
7
6/3
0/1
7
8/3
1/1
7
10
/31
/17
12
/31
/17
2/2
8/1
8
MHH Comp Group Décor Index S&P 500 NASDAQ Composite Index
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
2/2
8/1
7
4/3
0/1
7
6/3
0/1
7
8/3
1/1
7
10
/31
/17
12
/31
/17
2/2
8/1
8
MHH Comp Group Décor Index S&P 500 NASDAQ Composite Index
Décor
10
Valuation Trend
Enterprise Value/LTM Revenue
Enterprise Value/LTM EBITDA
Source: CapitalIQ
1.57x 1.59x 1.55x 1.54x 1.53x1.62x
1.70x1.55x 1.51x 1.56x
1.46x
1.64x 1.69x1.80x 1.77x 1.72x 1.73x
0.00x
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
1.40x
1.60x
1.80x
2.00x
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
Q4
'17
Quarterly Median EV/ REV 1 Yr. Moving Average
14.0x13.5x
12.9x12.1x
12.8x13.5x 13.6x
12.4x11.7x 11.9x
11.1x 11.6x 11.2x
13.6x
12.0x 12.2x12.8x
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
Q4
'17
Quarterly Median EV/ EBITDA 1 Yr. EV/EBITDA Moving Avg Qtrly Median LTM EBITDA Margin
Décor
11
Valuation and Operating Performance Matrices Graphs adjusted to eliminate statistical outliers.
NYSE:MHK
NYSE:MAS
NYSE:FBHSNYSE:RPM
NYSE:CULP
NasdaqGM:DXYN
AIM:WGB
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
0.00% 2.00% 4.00% 6.00% 8.00% 10.00%
EBIT
DA
Mu
ltip
le
3-YR Revenue CAGR Source: CapitalIQ and MHH FCF Margin = (EBITDA - Capex) / Rev
3-Yr Revenue CAGR vs. EBITDA Multiple
NYSE:MHK
NYSE:MAS
NYSE:FBHS
NYSE:RPMNYSE:AWI
NasdaqGS:TILE
NYSE:OMN
NYSE:CULPNasdaqGM:DXYN
AIM:WGB
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
EBIT
DA
Mu
ltip
le
3-YR EBITDA CAGR
3-Yr EBITDA CAGR vs. EBITDA Multiple
NYSE:MHK
NYSE:MAS
NYSE:FBHSNYSE:RPM NYSE:CFX
NasdaqGS:TILE
NYSE:OMNNYSE:CULP
AIM:WGB
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
EBIT
DA
Mu
ltip
le
LTM EBITDA MarginSource: CapitalIQ and MHH
EBITDA Margin vs. EBITDA Multiple
NYSE:MHK
NYSE:MASNYSE:FBHS
NYSE:RPM
NYSE:CFX
NYSE:AWI
NasdaqGS:TILE
NYSE:OMN
NYSE:CULP
NasdaqGM:DXYN
AIM:WGB
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
- 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0
EB
ITD
A M
ult
iple
Cash Conversion Cycle (Days)Source: CapitalIQ and MHH CCC = DIO + DRO + DPO
Cash Conversion Cycle vs. EBITDA Multiple
NYSE:SHW
NYSE:MHK
NYSE:MAS
NYSE:FBHS
NYSE:RPM
NYSE:CFX
NasdaqGS:TILE
NYSE:OMN
NYSE:CULP
AIM:WGB
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Inve
nto
ry T
urn
ove
r R
atio
LTM EBITDA MarginSource: CapitalIQ and MHH
EBITDA Margin vs. Inventory Turn Ratio
NYSE:MHK
NYSE:MAS
NYSE:FBHSNYSE:RPM
NYSE:CFXNasdaqGS:TILE
NYSE:OMNNYSE:CULP
AIM:WGB
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
0.0% 5.0% 10.0% 15.0% 20.0%
EB
ITD
A M
ult
iple
LTM Free Cash Flow Margin
FCF Margin = (EBITDA - Capex) / RevSource: CapitalIQ and MHH
Free Cash Flow Margin vs. EBITDA Multiple
Décor
12
Valuation and Operating Performance Matrices (cont.) Graphs adjusted to eliminate statistical outliers.
NYSE:MHKNYSE:MAS
NYSE:FBHSNYSE:RPMNYSE:CFX
NYSE:AWI
NasdaqGS:TILE
NYSE:OMN
NYSE:CULP
NasdaqGM:DXYN
AIM:WGB
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
EBIT
DA
Mu
ltip
le
Capital Intensity RatioSource: CapitalIQ and MHH Capital Intensity = (NWC - Cash + PP&E) / Revenues
Capital Intensity vs. EBITDA Multiple
NYSE:MHK
NYSE:FBHSNYSE:RPMNYSE:AWI
NasdaqGS:TILE
NYSE:OMNNYSE:CULP
AIM:WGB
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
0.00% 2.00% 4.00% 6.00% 8.00% 10.00%
EBIT
DA
Mu
ltip
le
Return on AssetsSource: CapitalIQ and MHH
Return on Assets vs. EBITDA Multiple
Selected M&A Transactions: 2/1/18 - 2/28/18
Announced Target Target Description Acquirer Value
2/1/18 Sanquhar Tire
Services Limited
Manufactures and commissions carpet tiles Shaw Industries Group, Inc ND
2/9/18 TJR Coating Inc. Develops and manufactures wood care,
restoration and coating protection systems
2618249 Ontario Group ND
ND – Not disclosed. Transaction values in millions.
Selected News Announcements
Colefax Group plc (AIM:CFX) announced the commencement of a share buyback program of up to 15% of total outstanding shares.
Culp, Inc. (NYSE: CULP) announced a quarterly dividend payable April 16, 2018.
Interface, Inc. (NasdaqGS:TILE) announced a quarterly dividend payable March 23, 2018. The Sherwin-Williams Company (NYSE:SHW) announced a quarterly dividend payable March 9, 2018.
Furniture
13
Comparative Index Performance (Three-year and One-year)
Last Three Years
Last Twelve Months
Source: CapitalIQ
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%2
/28
/15
4/3
0/1
5
6/3
0/1
5
8/3
1/1
5
10
/31
/15
12
/31
/15
2/2
9/1
6
4/3
0/1
6
6/3
0/1
6
8/3
1/1
6
10
/31
/16
12
/31
/16
2/2
8/1
7
4/3
0/1
7
6/3
0/1
7
8/3
1/1
7
10
/31
/17
12
/31
/17
2/2
8/1
8
MHH Comp Group Furniture Index S&P 500 NASDAQ Composite Index
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2/2
8/1
7
4/3
0/1
7
6/3
0/1
7
8/3
1/1
7
10
/31
/17
12
/31
/17
2/2
8/1
8
MHH Comp Group Furniture Index S&P 500 NASDAQ Composite Index
Furniture
14
Valuation Trend
Enterprise Value/LTM Revenue
Enterprise Value/LTM EBITDA
Source: CapitalIQ
0.89x
0.79x
0.89x0.82x
0.91x 0.92x 0.93x0.87x 0.88x 0.87x 0.90x 0.86x
0.96x0.91x 0.90x
0.97x0.93x
0.00x
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
Q4
'17
Quarterly Median EV/ REV 1 Yr. Moving Average
8.9x 9.1x 8.9x8.6x 8.6x
9.2x 9.4x
8.1x 8.1x 7.9x 7.9x 8.2x
9.8x
8.5x 8.6x9.1x
9.6x
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
Q4
'17
Quarterly Median EV/ EBITDA 1 Yr. EV/EBITDA Moving Avg Qtrly Median LTM EBITDA Margin
Furniture
15
Valuation and Operating Performance Matrices Graphs adjusted to eliminate statistical outliers.
NYSE:TPX
NasdaqGS:MLHRNYSE:HNI
NYSE:SCS
NYSE:KNL
NYSE:UFI
NasdaqGS:KBAL
NasdaqGS:FLXS
NYSE:CSS
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
-5.0% -2.5% 0.0% 2.5% 5.0% 7.5%
EBIT
DA
Mu
ltip
le
3-Yr Revenue CAGRSource: CapitalIQ and MHH
3-Yr Revenue CAGR vs. EBITDA Multiple
NYSE:TPX
NasdaqGS:MLHR
NYSE:HNI
NYSE:SCS
NYSE:KNL
NYSE:UFI
NasdaqGS:KBAL
NasdaqGS:BSET
NasdaqGS:FLXS
NasdaqCM:CRWS
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
-10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
EBIT
DA
Mu
ltip
le
3-YR EBITDA CAGR
3-Yr EBITDA CAGR vs. EBITDA Multiple
NYSE:LEG
NYSE:TPX
NasdaqGS:MLHR
NYSE:HNI
NYSE:SCS
NYSE:KNL
NYSE:UFI
NasdaqGS:KBAL
NasdaqGS:HOFT
NasdaqGS:BSET
NasdaqGS:FLXS
NYSE:CSS
NasdaqCM:CRWS
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
0.0% 5.0% 10.0% 15.0%
EBIT
DA
Mu
ltip
le
LTM EBITDA MarginSource: CapitalIQ and MHH
EBITDA Margin vs. EBITDA Multiple
NYSE:LEG
NYSE:TPXNYSE:AIN
NasdaqGS:MLHR
NYSE:HNI
NYSE:SCS
NYSE:KNL NYSE:UFI
NasdaqGS:KBAL
NasdaqGS:HOFT
NasdaqGS:BSET
NasdaqGS:FLXS
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
(20.0) - 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0
EB
ITD
A M
ult
iple
Cash Conversion Cycle (Days)Source: CapitalIQ and MHH CCC = DIO + DRO + DPO
Cash Conversion Cycle vs. EBITDA Multiple
NYSE:LEG
NYSE:TPX
NasdaqGS:MLHRNYSE:HNI
NYSE:SCS
NYSE:KNL
NYSE:UFI
NasdaqGS:KBAL
NasdaqGS:HOFT
NasdaqGS:BSET
NasdaqGS:FLXS
NasdaqCM:CRWS
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
0.0% 5.0% 10.0% 15.0%
Inve
nto
ry T
urn
ove
r R
atio
LTM EBITDA MarginSource: CapitalIQ and MHH
EBITDA Margin vs. Inventory Turn Ratio
NYSE:LEG
NYSE:TPX
NYSE:AIN
NasdaqGS:MLHR
NYSE:HNI
NYSE:SCS
NYSE:KNLNYSE:UFI
NasdaqGS:KBAL
NasdaqGS:HOFT
NasdaqGS:BSET
NasdaqGS:FLXS
NYSE:CSS
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%
EBIT
DA
Mu
ltip
le
LTM Free Cash Flow Margin
FCF Margin = (EBITDA - Capex) / RevSource: CapitalIQ and MHH
Free Cash Flow Margin vs. EBITDA Multiple
Furniture
16
Valuation and Operating Performance Matrices (cont.) Graphs adjusted to eliminate statistical outliers.
NYSE:LEGNYSE:TPX
NasdaqGS:MLHR
NYSE:HNI
NYSE:SCS
NYSE:KNL
NYSE:UFI
NasdaqGS:KBAL
NasdaqGS:HOFT
NasdaqGS:BSET NasdaqGS:FLXS
NYSE:CSSNasdaqCM:CRWS
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
EB
ITD
A M
ult
iple
Capital Intensity RatioSource: CapitalIQ and MHH Capital Intensity = (NWC - Cash + PP&E) / Revenues
Capital Intensity vs. EBITDA Multiple
NYSE:LEGNYSE:TPX
NasdaqGS:MLHRNYSE:HNI
NYSE:SCS
NYSE:KNL
NYSE:UFI
NasdaqGS:KBAL
NasdaqGS:HOFT
NasdaqGS:BSET NasdaqGS:FLXS
NasdaqCM:CRWS
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
EBIT
DA
Mu
ltip
le
Return on AssetsSource: CapitalIQ and MHH
Return on Assets vs. EBITDA Multiple
Selected M&A Transactions: 2/1/18 - 2/28/18
Announced Target Target Description Acquirer Value
2/1/18 Veksø-Taulov
A/S
Designs, manufactures and markets
architectural and functional street and
park furniture
Hitsa-Hejls A/S ND
2/12/18 Zedbed Inc. Manufactures eco-friendly foam
mattresses
Owen & Company Limited ND
2/12/18 Tvilum Aps Designs, manufactures and sells ready to
assemble furniture
Viking Trading ApS ND
2/12/18 hali gmbh Manufactures and supplies office furniture BGO Holding GmbH ND
2/28/18 interlübke Lübke
GmbH & Co. KG
Manufactures home furniture in Germany MB Mittelständische
Beteiligungsgesellschaft mbH;
Schramm Holding GmbH
ND
ND – Not disclosed. Transaction values in millions.
Furniture
17
Selected News Announcements
Albany International Corp. (NYSE:AIN) announced a quarterly dividend payable April 6, 2018.
Albany International Corp. (NYSE:AIN) appointed Olivier Jarrault as President and CEO to succeed Dr. Joseph G. Morone, effective March 2, 2018.
Crown Crafts, Inc. (NasdaqCM: CRWS) announced a quarterly dividend payable April 6, 2018.
CSS Industries, Inc. (NYSE: CSS) announced a quarterly dividend payable March 15, 2018.
HNI Corporation (NYSE: HNI) announced a quarterly dividend payable March 5, 2018.
Kimball International, Inc. (NasdaqGS: KBAL) announced a quarterly dividend payable April 13, 2018.
Kroll, Inc. (NYSE: KNL) announced a quarterly dividend payable March 30, 2018.
Leggett & Platt (NYSE: LEG) announced a quarterly dividend payable April 13, 2018.
Hardware and Outdoor
18
Comparative Index Performance (Three-year and One-year)
Last Three Years
Last Twelve Months
Source: CapitalIQ
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%2
/28
/15
4/3
0/1
5
6/3
0/1
5
8/3
1/1
5
10
/31
/15
12
/31
/15
2/2
9/1
6
4/3
0/1
6
6/3
0/1
6
8/3
1/1
6
10
/31
/16
12
/31
/16
2/2
8/1
7
4/3
0/1
7
6/3
0/1
7
8/3
1/1
7
10
/31
/17
12
/31
/17
2/2
8/1
8
MHH Comp Group Hardware and Outdoor Index S&P 500 NASDAQ Composite Index
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
2/2
8/1
7
4/3
0/1
7
6/3
0/1
7
8/3
1/1
7
10
/31
/17
12
/31
/17
2/2
8/1
8
MHH Comp Group Hardware and Outdoor Index S&P 500 NASDAQ Composite Index
Hardware and Outdoor
19
Valuation Trend
Enterprise Value/LTM Revenue
Enterprise Value/LTM EBITDA
Source: CapitalIQ
1.34x1.22x
1.36x1.25x
1.35x 1.33x 1.31x1.41x
1.54x 1.47x 1.52x1.41x
1.27x1.40x
1.53x
1.76x
2.01x
0.00x
0.50x
1.00x
1.50x
2.00x
2.50x
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
Q4
'17
Quarterly Median EV/ REV 1 Yr. Moving Average
12.6x11.6x
12.6x11.7x 11.6x 11.4x 11.9x 11.8x 11.5x
13.2x 12.9x12.3x
11.2x
13.5x 13.7x 14.1x
12.3x
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
Q4
'17
Quarterly Median EV/ EBITDA 1 Yr. EV/EBITDA Moving Avg Qtrly Median LTM EBITDA Margin
Hardware and Outdoor
20
Valuation and Operating Performance Matrices Graphs adjusted to eliminate statistical outliers.
SEHK:669
NYSE:SPBNYSE:HRG
NYSE:TTC
OM:HUSQ B
NasdaqGS:CENT
NasdaqGS:WDFC
DB:EIN3
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
0.0% 2.5% 5.0% 7.5% 10.0%
EBIT
DA
Mu
ltip
le
3-Yr Revenue CAGRSource: CapitalIQ and MHH
3-Yr Revenue CAGR vs. EBITDA Multiple
SEHK:669
NYSE:SPBNYSE:HRG
NYSE:TTC
OM:HUSQ B
NasdaqGS:CENT
NasdaqGS:WDFC
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
-5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
EBIT
DA
Mu
ltip
le
3-YR EBITDA CAGR
3-Yr EBITDA CAGR vs. EBITDA Multiple
Source: CapitalIQ and MHH
SEHK:669
NYSE:SPB
NYSE:HRG
NYSE:TTC
OM:HUSQ BNasdaqGS:CENT
NasdaqGS:WDFC
DB:EIN3
NasdaqGM:PFIN
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
EBIT
DA
Mu
ltip
le
LTM EBITDA MarginSource: CapitalIQ and MHH
EBITDA Margin vs. EBITDA Multiple
SEHK:669
NYSE:SPB
NYSE:HRG
NYSE:TTC
OM:HUSQ B
NasdaqGS:CENT
NasdaqGS:WDFC
DB:EIN3
NasdaqGM:PFIN
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
- 50.0 100.0 150.0 200.0 250.0
EBIT
DA
Mu
ltip
le
Cash Conversion Cycle (Days)Source: CapitalIQ and MHH CCC = DIO + DRO + DPO
Cash Conversion Cycle vs. EBITDA Multiple
SEHK:669
NYSE:SPB
NYSE:HRG
NYSE:TTC
OM:HUSQ B
NasdaqGS:CENT NasdaqGS:WDFC
DB:EIN3
NasdaqGM:PFIN
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Inve
nto
ry T
urn
ove
r R
atio
LTM EBITDA MarginSource: CapitalIQ and MHH
EBITDA Margin vs. Inventory Turn Ratio
SEHK:669
NYSE:SPB
NYSE:HRG
NYSE:TTC
OM:HUSQ B
NasdaqGS:CENT
NasdaqGS:WDFC
DB:EIN3
NasdaqGM:PFIN
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
0.0% 5.0% 10.0% 15.0% 20.0%
EBIT
DA
Mu
ltip
le
LTM Free Cash Flow Margin
FCF Margin = (EBITDA - Capex) / RevSource: CapitalIQ and MHH
Free Cash Flow Margin vs. EBITDA Multiple
Hardware and Outdoor
21
Valuation and Operating Performance Matrices (cont.) Graphs adjusted to eliminate statistical outliers.
Selected M&A Transactions: 2/1/18 - 2/28/18
Announced Target Target Description Acquirer Value
2/1/18 Light Compaction & Concrete Equipment Business of Atlas Copco AB
Represents the light compaction and concrete product business lines
Husqvarna AB (OM:HUSQ B) ND
2/9/18 The Fletcher-
Terry Company
Manufactures and designs roll-up doors and
building components
Capital Partners, Inc. ND
2/26/18 Spectrum Brands
Holdings, Inc
(NYSE: SPB)
Manufactures, markets and distributes
branded consumer products
HRG Group, Inc. (NYSE:HRG) $4,791.9
2/26/18 Chamberlain
Security
Manufactures security components to
protect the contents of safes, filing cabinets
and ATMs
Broco Rankin ND
SEHK:669
NYSE:SPB
NYSE:HRG
NYSE:TTC
OM:HUSQ B
NasdaqGS:CENT
NasdaqGS:WDFC
DB:EIN3
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
EBIT
DA
Mu
ltip
le
Capital Intensity RatioSource: CapitalIQ and MHH Capital Intensity = (NWC - Cash + PP&E) / Revenues
Capital Intensity vs. EBITDA Multiple
SEHK:669
NYSE:SPB
NYSE:HRG
NYSE:TTC
OM:HUSQ B
NasdaqGS:CENT
NasdaqGS:WDFC
DB:EIN3
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
0.0% 5.0% 10.0% 15.0% 20.0%
EBIT
DA
Mu
ltip
le
Return on AssetsSource: CapitalIQ and MHH
Return on Assets vs. EBITDA Multiple
Hardware and Outdoor
22
2/28/18 American Building
Supply, Inc.
Operates as a manufacturer and wholesale
distributor of door, millwork and hardware
products for residential and commercial
applications
ELD-WEN Holding, Inc.
(NYSE:JELD)
ND
ND – Not disclosed. Transaction values in millions.
Selected News Announcements
Husqvarna AB (OM: HUSQ B) has completed a fixed-income offering in the amount of $112 million.
P&F Industries, Inc. (NasdaqGS: PFIN) announced a quarterly dividend payable March 2, 2018.
Household Appliance
23
Comparative Index Performance (Three-year and One-year)
Last Three Years
Last Twelve Months
Source: CapitalIQ
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%2
/28
/15
4/3
0/1
5
6/3
0/1
5
8/3
1/1
5
10
/31
/15
12
/31
/15
2/2
9/1
6
4/3
0/1
6
6/3
0/1
6
8/3
1/1
6
10
/31
/16
12
/31
/16
2/2
8/1
7
4/3
0/1
7
6/3
0/1
7
8/3
1/1
7
10
/31
/17
12
/31
/17
2/2
8/1
8
MHH Comp Group Household & Family Electonics / Appliances Index S&P 500 NASDAQ Composite Index
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2/2
8/1
7
4/3
0/1
7
6/3
0/1
7
8/3
1/1
7
10
/31
/17
12
/31
/17
2/2
8/1
8
MHH Comp Group Household & Family Electonics / Appliances Index S&P 500 NASDAQ Composite Index
Household Appliance
24
Valuation Trend
Enterprise Value/LTM Revenue
Enterprise Value/LTM EBITDA
Source: CapitalIQ
1.23x
1.50x 1.51x1.37x 1.42x
1.06x
1.28x
1.03x
1.43x
1.04x 0.98x1.05x
1.78x
1.08x1.21x
1.10x
1.28x
0.00x
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
1.40x
1.60x
1.80x
2.00x
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
Q4
'17
Quarterly Median EV/ REV 1 Yr. Moving Average
8.6x
10.3x 10.1x10.7x
11.4x10.6x 10.9x
9.9x10.9x
9.8x 9.7x10.2x
11.1x
12.3x13.1x 12.7x 12.8x
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
Q4
'17
Quarterly Median EV/ EBITDA 1 Yr. EV/EBITDA Moving Avg Qtrly Median LTM EBITDA Margin
Household Appliance
25
Valuation and Operating Performance Matrices Graphs adjusted to eliminate statistical outliers.
NYSE:SWK
NYSE:WHR
OM:ELUX B
BIT:DLG
NasdaqGS:IRBT
HLSE:FSKRS
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
20.0x
0.0% 2.5% 5.0% 7.5% 10.0% 12.5% 15.0% 17.5%
EBIT
DA
Mu
ltip
le
3-Yr Revenue CAGRSource: CapitalIQ and MHH
3-Yr Revenue CAGR vs. EBITDA Multiple
NYSE:SWK
NYSE:WHR OM:ELUX B
BIT:DLG
NasdaqGS:IRBT
HLSE:FSKRS
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
20.0x
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%
EBIT
DA
Mu
ltip
le
3-YR EBITDA CAGR
3-Yr EBITDA CAGR vs. EBITDA Multiple
NYSE:SWK
NYSE:WHR
OM:ELUX B
BIT:DLG
NasdaqGS:IRBT
HLSE:FSKRS
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
20.0x
0.0% 5.0% 10.0% 15.0% 20.0%
EBIT
DA
Mu
ltip
le
LTM EBITDA MarginSource: CapitalIQ and MHH
EBITDA Margin vs. EBITDA Multiple
NYSE:SWK
NYSE:WHR
OM:ELUX BBIT:DLG
NasdaqGS:IRBT HLSE:FSKRS
NYSE:NC
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
20.0x
- 50.0 100.0 150.0 200.0
EBIT
DA
Mu
ltip
le
Cash Conversion Cycle (Days)Source: CapitalIQ and MHH CCC = DIO + DRO + DPO
Cash Conversion Cycle vs. EBITDA Multiple
NYSE:SWK
NYSE:WHR
OM:ELUX B
BIT:DLG
NasdaqGS:IRBT
HLSE:FSKRS
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
0.0% 5.0% 10.0% 15.0% 20.0%
Inve
nto
ry T
urn
ove
r R
atio
LTM EBITDA MarginSource: CapitalIQ and MHH
EBITDA Margin vs. Inventory Turn Ratio
NYSE:SWK
NYSE:WHR
OM:ELUX B
BIT:DLG
NasdaqGS:IRBT
HLSE:FSKRS
NYSE:NC
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
20.0x
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
EBIT
DA
Mu
ltip
le
LTM EBITDA MarginSource: CapitalIQ and MHH
Free Cash Flow Margin vs. EBITDA Multiple
Household Appliance
26
Valuation and Operating Performance Matrices (cont.)
Graphs adjusted to eliminate statistical outliers.
Selected News Announcements
AB Electrolux (OM: ELUX B) announced a semi-annual dividend payable April 12, 2018 and October 12,
2018.
Fiskar Oyj Abp (HLSE: FSKRS) announced a semi-annual dividend payable March 23, 2018.
iRobot Corporation (NasdaqGS: IRBT) announced a share repurchase program of up to $50 million.
NACCO Industries Inc. (NYSE:NC) announced a share repurchase program of up to $25 million.
NACCO Industries Inc. (NYSE:NC) announced a quarterly dividend payable March 15, 2018.
Stanley Black & Decker (NYSE:SWK) announced a quarterly dividend payable March 20, 2018.
Whirlpool Corporation (NYSE: WHR) announced a quarterly dividend payable March 15, 2018.
NYSE:SWK
NYSE:WHR
OM:ELUX B
BIT:DLG
NasdaqGS:IRBT
HLSE:FSKRS
NYSE:NC
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
20.0x
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0%
EBIT
DA
Mu
ltip
le
Capital Intensity RatioSource: CapitalIQ and MHH Capital Intensity = (NWC - Cash + PP&E) / Revenues
Capital Intensity vs. EBITDA Multiple
NYSE:SWK
NYSE:WHR
OM:ELUX B
BIT:DLG
NasdaqGS:IRBT
HLSE:FSKRS
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
20.0x
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
EBIT
DA
Mu
ltip
le
Return on AssetsSource: CapitalIQ and MHH
Return on Assets vs. EBITDA Multiple
Selected M&A Transactions: 2/1/18 – 2/28/18
No House Appliances Selected Transactions for the month of February.
Housewares
27
Comparative Index Performance (Three-year and One-year)
Last Three Years
Last Twelve Months
Source: CapitalIQ
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%2
/28
/15
4/3
0/1
5
6/3
0/1
5
8/3
1/1
5
10
/31
/15
12
/31
/15
2/2
9/1
6
4/3
0/1
6
6/3
0/1
6
8/3
1/1
6
10
/31
/16
12
/31
/16
2/2
8/1
7
4/3
0/1
7
6/3
0/1
7
8/3
1/1
7
10
/31
/17
12
/31
/17
2/2
8/1
8
MHH Comp Group Housewares Index S&P 500 NASDAQ Composite Index
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2/2
8/1
7
4/3
0/1
7
6/3
0/1
7
8/3
1/1
7
10
/31
/17
12
/31
/17
2/2
8/1
8
MHH Comp Group Housewares Index S&P 500 NASDAQ Composite Index
Housewares
28
Valuation Trend
Enterprise Value/LTM Revenue
Enterprise Value/LTM EBITDA
Source: CapitalIQ
1.28x1.40x
1.46x1.41x 1.39x
1.50x1.58x
1.34x
1.53x 1.50x
1.65x 1.65x 1.64x 1.60x
1.41x 1.41x
1.60x
0.00x
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
1.40x
1.60x
1.80x
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
Q4
'17
Quarterly Median EV/ REV 1 Yr. Moving Average
8.7x 8.8x9.2x
10.1x 9.8x10.3x 10.0x 9.9x
10.4x 10.1x 9.9x
10.8x 11.0x 10.7x 11.0x 10.8x10.1x
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
Q4
'17
Quarterly Median EV/ EBITDA 1 Yr. EV/EBITDA Moving Avg Qtrly Median LTM EBITDA Margin
Housewares
29
Valuation and Operating Performance Matrices Graphs adjusted to eliminate statistical outliers.
XTRA:HEN3
NYSE:TUP
NasdaqGS:HELE
OM:DUNI
AMEX:LBY
NasdaqGS:LCUT
DB:LEI AIM:PMP
AIM:CHH
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
-7.5% -5.0% -2.5% 0.0% 2.5% 5.0% 7.5%
EBIT
DA
Mu
ltip
le
3-Yr Revenue CAGRSource: CapitalIQ and MHH
3-Yr Revenue CAGR vs. EBITDA Multiple
XTRA:HEN3NasdaqGS:HELE
OM:DUNI
NasdaqGS:LCUTDB:LEI
AIM:PMP
AIM:CHH
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
EBIT
DA
Mu
ltip
le
3-YR EBITDA CAGRSource: CapitalIQ and MHH
3-Yr EBITDA CAGR vs. EBITDA Multiple
XTRA:HEN3NYSE:NWL
ENXTPA:SK
NYSE:TUP
NasdaqGS:HELE
OM:DUNI
AMEX:LBY
NasdaqGS:LCUT
DB:LEI
AIM:PMP
AIM:CHH
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
0.0% 5.0% 10.0% 15.0% 20.0%
EBIT
DA
Mu
ltip
le
LTM EBITDA MarginSource: CapitalIQ and MHH
EBITDA Margin vs. EBITDA Multiple
ENXTPA:SK
NYSE:TUP
OM:DUNI AMEX:LBY
DB:LEI
AIM:PMP
AIM:CHH
8.4x
8.6x
8.8x
9.0x
9.2x
9.4x
9.6x
9.8x
10.0x
- 20.0 40.0 60.0 80.0 100.0 120.0
EBIT
DA
Mu
ltip
le
Cash Conversion Cycle (Days)Source: CapitalIQ and MHH CCC = DIO + DRO + DPO
Cash Conversion Cycle vs. EBITDA Multiple
XTRA:HEN3
NYSE:NWL
ENXTPA:SK
NYSE:TUP
NasdaqGS:HELE
OM:DUNI
AMEX:LBY
NasdaqGS:LCUTDB:LEI
AIM:PMP
AIM:CHHDB:HUL
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
0.0% 5.0% 10.0% 15.0% 20.0%
Inve
nto
ry T
urn
ove
r R
atio
LTM EBITDA MarginSource: CapitalIQ and MHH
EBITDA Margin vs. Inventory Turn Ratio
XTRA:HEN3NYSE:NWLENXTPA:SK
NYSE:TUP
NasdaqGS:HELE
OM:DUNIAMEX:LBY
NasdaqGS:LCUT
DB:LEI
AIM:PMP
AIM:CHH
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
0.0% 5.0% 10.0% 15.0% 20.0%
EBIT
DA
Mu
ltip
le
LTM Free Cash Flow Margin
FCF Margin = (EBITDA - Capex) / RevSource: CapitalIQ and MHH
Free Cash Flow Margin vs. EBITDA Multiple
Housewares
30
Valuation and Operating Performance Matrices (cont.) Graphs adjusted to eliminate statistical outliers.
Selected M&A Transactions: 2/1/18 - 2/28/18
Announced Target Target Description Acquirer Value
2/9/18 Biopac (UK) Ltd Develops and manufactures disposable packaging for food and beverage industry
Duni AB (OM:DUNI) $3.6
Transaction values in millions.
Selected News Announcements
Libbey Inc. (AMEX:LBY) announced a quarterly dividend payable March 13, 2018.
Newell Brands (NYSE: NWL) announced a quarterly dividend payable March 15, 2018.
Newell Brands (NYSE: NWL) announced the appointment of two independent directors, James R. Craigie
and Debra A. Crew, effective immediately.
Tupperware Brands Corporation (NYSE:TUP) announced the appointment of Patricia (Tricia) Stitzel as
President and CEO, effective May 9, 2018.
XTRA:HEN3
NYSE:NWL
ENXTPA:SK
NYSE:TUP
NasdaqGS:HELE
OM:DUNI
AMEX:LBY
NasdaqGS:LCUT
DB:LEI
AIM:PMP
AIM:CHH
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
EBIT
DA
Mu
ltip
le
Capital Intensity RatioSource: CapitalIQ and MHH Capital Intensity = (NWC - Cash + PP&E) / Revenues
Capital Intensity vs. EBITDA Multiple
XTRA:HEN3NYSE:NWL
ENXTPA:SKNasdaqGS:HELE
OM:DUNI
AMEX:LBY
NasdaqGS:LCUT
DB:LEI
AIM:PMP
AIM:CHH
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
0.00% 2.00% 4.00% 6.00% 8.00% 10.00%
EBIT
DA
Mu
ltip
le
Return on AssetsSource: CapitalIQ and MHH
Return on Assets vs. EBITDA Multiple
31
Mufson Howe Hunter is an independent investment bank for middle-market companies. We focus on selling
businesses, buy-outs, acquisitions and raising capital. Unique to the middle market, our senior bankers have
extensive corporate finance experience and deep knowledge of the capital markets.
Mufson Howe Hunter & Company LLC
1717 Arch Street
39th Floor
Philadelphia, PA 19103
215.399.5400
Visit us at:
www.mhhco.com
Broker dealer services provided by our wholly-owned subsidiary, Mufson Howe Hunter & Partners LLC, a member
of FINRA and SIPC
Mergers & Acquisitions Advise buyers and sellers (public and private companies)
Sale of businesses, strategic acquisitions, management buy-outs and industry build-ups
Raise Capital Equity (control and non-control)
Mezzanine financing
Senior and junior debt
Typically raise capital from banks, finance companies, private investment funds and private
equity groups
Financial Advisory Services Analysis of business strategies and options
Fairness opinions
Valuations