the nordic consumer sector –m&a activity and ......fiskars ic group ica gruppen electrolux...

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THE NORDIC CONSUMER SECTOR – M&A ACTIVITY AND PRICING

H2 2016

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101 TRANSACTIONS IDENTIFIED IN H2 2016

EXECUTIVE SUMMARY INDEXED SHARE PERFORMANCE OF SELECTED COMPANIES

DEVELOPMENT IN NUMBER OF IDENTIFIED TRANSACTIONSDEVELOPMENT IN NUMBER OF TRANSACTIONS

§ This briefing on the consumer sector is primarily focused on fast moving consumer goods (FMCG), retail/E-commerce and the food sector

§ Nordic M&A has identified 101 transactions in the Nordic consumer sector in H2 2016 vs. 95 in H2 2015 marking a small increase of 6,3% in # of transactions

§ We do not see any significant indications in the market that lead us to believe that the volume measured in # of transactions will change significantly in the coming year

§ Sweden had the highest # of deals at 42 followed by Denmark with 26 deals, Finland with 18 deals and Norway with 15 deals

§ Inter-Nordic transactions still make up the largest part of transactions in small and mid-size companies and around 84% of the identified transactions have been sold to strategic/industrial buyers

§ Private Equity players have continued their interest in the consumer area seen in H2 2016 again consisting of around 21% of buyers. PE deals in H2 2016 include FSN Capital’s acquisition of bygghemma.se in Sweden and Ratos’ takeover of Plantasjen in Sweden

§ The most significant deals in H2 were Lakrids by Bülow sold to Swedish private equity Valedo Partners and the shares sold in Bang & Olufsen to Chinese investors. The food sector in particular has shown a high level of activity.

§ In H2, 2016 the median EV/EBITDA multiple for listed Nordic consumer companies was 11.3x. Normally a discount of 20-40% is deducted in order to valuate a small-midsize company compared to a listed company

§ Only 28% of transactions have available transaction values and to prevent biased predictions no average transaction multiples have been calculated

*Share performance is based in equally weighted averagesSource: Capital IQ

90

95

100

105

110

115

120

Jan2015 Jul 2015 Jan 2016 Jul 2016 Jan 2017

-3,3%

103

95

113

101

H1 2015 H2 2015 H1 2016 H2 2016

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OVERVIEW OF H2 2016 NORDIC CONSUMER TRANSACTIONS

n Nordic M&A has identified 101 Nordic consumer transactions in H22016

n 78% of companies were acquired by industrials

n Highest deal activity in Sweden followed by Denmark, Finland andNorway

n 84% of the companies were sold to players located in the Nordics

COMMENTS BREAKDOWN OF DEALS BY EXIT TYPE

BREAKDOWN OF DEALS BY TARGET’S COUNTRY BREAKDOWN OF DEALS BY ACQUIROR’S REGION

Source: Capital IQ and Nordic M&A

Denmark: 26

Finland: 18Sweden: 42

Norway: 15

PE: 22

Industrials: 79

Nordic: 85

Rest of Europe: 9

RoW: 7

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NOTABLE NORDIC CONSUMER TRANSACTIONS IN H2 2016

TARGET ACQUIROR DEAL VALUE DKKm EV / SALES EV / EBITDA

N/A N/A N/A

Source: Capital IQ and Nordic M&A* Imerco and Inspiration have agreed to merge

N/A N/A N/A

N/A N/A N/A

421,3 1.9x N/A

N/A N/A N/A

433,5 0,9x N/A

N/A N/A N/A

979,5 0,8x 7,8

N/A N/A N/A

*

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CURRENT TRADING MULTIPLES FOR LISTED NORDIC CONSUMER COMPANIES

Source: Capital IQ

EV/SALES EV/EBITDA

P/E SHARE PRICE - INDEXED

Note: Equally weighted averages

I: 111, 4

90

95

100

105

110

115

120


1,0x

1,1x

1,2x

1,3x

1,4x

1,5x

1,6x

1,7x

1,8x

1,9x

2,0x


1.44x

10,0x

10,5x

11,0x

11,5x

12,0x

12,5x

13,0x

13,5x

14,0x

14,5x

15,0x


10.9x

16,0x

17,0x

18,0x

19,0x

20,0x

21,0x

22,0x


17,2x

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13,4113,06

12,46 12,3811,97

11,6211,26

10,59 10,53

9,7

9,088,7

11,6611,39

12,46

10,88

10,159,79

10,61

9,38

10,34

9,55

7,85

8,93

Pandora Amer Sport Corp. Bang & Olufsen H&M Kesko Europris Cloetta Fiskars ICA Gruppen Raisio Oyj IC Group Matas

EV/EBITDA - 2016AEV/EBITDA - 2017E

TRADING MULTIPLES FOR SELECTED LISTED NORDIC CONSUMER COMPANIES

Source: Capital IQ

EV / SALES 2016A & 2017E

EV / EBITDA 2016A & 2017E

Median EV / EBITDA 2016A: 11.3xMedian EV / EBITDA 2017E: 10.2x

5.7

5,21

1,98 1,91 1,831,6 1,5 1,37 1,35 1,3

1,02 1,000,63 0,54 0,49

4,45

1,78 1,871,5 1,58

1,37 1,45 1,25 1,260,99 0,97

0,61 0,52 0,45

Pandora H&M Cloetta XXL Matas Europris Raisio Oyj Amer Sport Corp.

Bang & Olufsen

Fiskars IC Group ICA Gruppen Electrolux Kesko

EV/SALES - 2016AEV/SALES - 2017E

Median EV / Sales 2016A: 1.4xMedian EV / Sales 2017E: 1.3x

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SELECTED CLAIRFIELD NORDIC CONSUMER TRANSACTIONS

x

Sale

Financial advisor on the sale to private investors

2013

Sale

2015

Financial advisor to Plum on the sale to CCS Healthcare

Sale

2015

Advisor to Pilgrim on the sale to CBH

2015

Advisor to Ratos on the divestment of Hafa Bathroom

Group

Divestment Divestment

2015

Advisor to Proventus on the divestment of Brio

Equity issuance

2015

Advisor to Onepiece on the equity issuance to a group of

Swedish investors

Sale

2015

Advisor to Dermagruppen on the sale to L’Oréal

2015

Sale

Advisor to Espresso House on the sale to JAB Holdings

2013

Advisor to Raisio on the acquisition of Candy Plus

Acquisition

Sale

2013

Advisor to StangeGårdsprodukter on the sale to

Reitan Gruppen

Sale

2013

Financial advisor to Blockbuster Denmark on the

sale to private investors

Acquisition

2014

Advisor to Phonero on the acquisition of Ventelo

2014

Sale

Advisor to Scanditoy on the sale to Amo Toys

Sale

2015

Advisor to ME TOO on the sale to Brands for kids

Sale

2011

Financial advisor to Halti and 3i on the sale to Ingman Group

2012

Advisor to Skiinfo on the sale to Vail Resorts

Sale

2012

Exclusive advisor to the founders on the sale of X-Yachts

A/S

Sale Sale

2011

Advisor to Retkiaittaon the sale to Partiovaruste

Sale

2010

Financial advisor to IngmanGroup on the sale of Ingman Ice

Cream to Unilever

Sale

2016

Advisor to Autoklinikka on the sale to Procuritas

Sale

2016

Advisor to Nordic Sense on the sale to Industri Udvikling

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OUR NORDIC PARTNERS ENSURE LOCAL COVERAGE AND MARKET ACCESS

~40Nordic

Professionals

+350Completed

transactions

Most experienced team in the

Nordics

Nordic members of Clairfield International

§ Established in 1997§ Oslo location§ 10 professionals§ More than 110 transactions

since inception

§ Established in 2008§ Copenhagen location§ 8 professionals§ More than 35 transactions

since inception

§ Established in 2009§ Stockholm location§ 12 professionals§ More than 30 transactions

since inception

§ Established in 1992§ Helsinki location§ 12 professionals§ More than 200 transactions

since inception

About Clairfield International

Clairfield is an international corporate finance firm that provides advisory services, mainly in crossborder mergers andacquisitions, to both international corporations and family-owned enterprises. Our focus is the middle-market segment,designing and executing transactions of up to EUR 500 million in enterprise value.

Clairfield’s high ratio of senior partners and directors to junior employees ensures that senior team members take an activerole in all transactions.

Clairfield has 35 offices in 25 countries with +450 professionals and its worldwide presence guarantees our clients directaccess to the local knowledge of its regional office and industry expertise from professionals around the globe.

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Nordic M&A, (part of Clairfield International)Amaliegade 141256 Copenhagen KDenmark

www.nordicma.dk

Anders W. EriknauerManaging PartnerMobile: +45 20 10 39 99E-mail: [email protected]

This document has been prepared by Nordic M&A. Unless otherwise stipulated in thisdocument, the following shall apply to the information comprised herein:

The information, in particular the numbers, data and schedules, are preliminary and for discussion purposes only. Nordic M&A do not represent that such information is true, accurate or complete and it should not be relied upon as such. No independent verification exercise has been undertaken in respect of the information. All information, opinions and estimates contained in this document constitute Nordic M&A’s judgment as at the date of this document and are subject to change without notice. While this information has been prepared in good faith, no representation or warranty, expressed or implied, is made. The information in this document is supplied on the condition that Nordic M&A, and any partner or employee of Nordic M&A, are not liable for any error or inaccuracy contained herein, whether negligently caused or otherwise, or for any loss or damage suffered by any person due to such an error, omission or inaccuracy as a result of such supply. This document is strictly for internal use and may not be reproduced, distributed or disclosed to any third party or referred to publicly without the prior written consent of Nordic M&A.

NORDIC M&A CONSUMER TEAM DISCLAIMER

Allan BjørnAssociate PartnerMobile: +45 24 48 77 99E-mail: [email protected]

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