G-iii Apparel Group, Ltd. · NASDAQ:GIII
G-iii Apparel — Merger or Acquisition (August 2016)
13 slides from G-iii Apparel's merger presentation, Aug 30, 2016
Slide 1: G-III Apparel Group, Ltd. to Acquire Donna Karan International, Inc.
G - III Apparel Group, Ltd. to Acquire Donna Karan International, Inc. August 2 016
Slide 2: Forward Looking Statements
63 106 133 240 224 210 234 182 134 216 184 170 140 136 136 232 232 232 115 76 82 Forward Looking Statements Statements concerning G - III's business outlook or future economic performance, anticipated revenues, expenses or other financial items; product introductions and plans and objectives related
Slide 3: G-III to Acquire Donna Karan and DKNY
63 106 133 240 224 210 234 182 134 216 184 170 140 136 136 232 232 232 115 76 82 G - III to Acquire Donna Karan and DKNY · G - III is acquiring one of the world’s most iconic and recognizable power brand portfolios · Donna Karan International, Inc. (“DKI”) fits squarely into G - III’s stated strateg
Slide 4: Transaction Overview
63 106 133 240 224 210 234 182 134 216 184 170 140 136 136 232 232 232 115 76 82 Transaction Overview Transaction Summary · Transaction announced on July 25, 2016 · G - III will acquire DKI, parent of the Donna Karan and DKNY brands, from LVMH · Enterprise value of $650 million Sources of Financing
Slide 5: DKI is a Powerful Iconic Global Brand
63 106 133 240 224 210 234 182 134 216 184 170 140 136 136 232 232 232 115 76 82 DKI is a Powerful Iconic Global Brand 255 255 255 0 0 0 255 255 255 189 187 187 140 136 136 68 69 71 0 0 0 189 187 187 232 232 232 158 135 140 0 56 107 240 224 210 173 91 99 239 165 84 247 148 30 234 182 134 232 209 195
Slide 6: Significant Growth Opportunity Across Channels and Markets
63 106 133 240 224 210 234 182 134 216 184 170 140 136 136 232 232 232 115 76 82 Addition of DKI enables meaningful expansion of wholesale category · Significant growth opportunity in North America and around the world · Plays to operating strengths of design, sourcing and distribution DKNY alone ha
Slide 7: DKI Enhances and Complements our Global Brand Portfolio
63 106 133 240 224 210 234 182 134 216 184 170 140 136 136 232 232 232 115 76 82 DKI Enhances and Complements our Global Brand Portfolio · Great fit along - side G - III’s other powerful brands: · Calvin Klein: Modern American minimalist ($1.5 billion annual sales potential ) · Tommy Hilfiger: Ameri
Slide 8: Demonstrated Track Record of Acquiring, Managing and Integrating Businesses
63 106 133 240 224 210 234 182 134 216 184 170 140 136 136 232 232 232 115 76 82 Demonstrated Track Record of Acquiring, Managing and Integrating Businesses Adding new categories and brands to diversify G - III’s portfolio is at the heart of its growth strategy G - III has grown from $1.4 billion to
Slide 9: Over a Decade of Successful Brand Integration
63 106 133 240 224 210 234 182 134 216 184 170 140 136 136 232 232 232 115 76 82 2005 2008 2007 2015 2012 2014 2016 Joint Venture Eight acquisitions, and one joint venture, over the last eleven years – successful in broadening via product offerings, geographic reach and channel diversification Acqui
Slide 10: Preliminary DKI Financial Targets
63 106 133 240 224 210 234 182 134 216 184 170 140 136 136 232 232 232 115 76 82 ($10) $55 $105 2017E 2018E 2019E ($ in millions) (3% ) 10% 14% % Margin Preliminary DKI Financial Targets $325 $550 $750 2017E 2018E 2019E ($ in millions) Total Revenues (1) (2) Operating Income (1) ____________________
Slide 11: Conducted Significant Due Diligence
Conducted Significant Due Diligence · Stated interest in acquiring a U.S. women’s brand that fit into G - III model · Engaged Barclays, Simpson Thacher and Norton Rose to ensure a thorough due diligence process · Conducted numerous commercial, business, financial, tax and legal diligence meetings wi
Slide 12: Financially Compelling Transaction
63 106 133 240 224 210 234 182 134 216 184 170 140 136 136 232 232 232 115 76 82 Financially Compelling Transaction · G - III believes DKI should be evaluated based on a future operating income multiple basis · 2014 DKI sales were nearly double the projected 2016 sales of ~$300 million · Lower 2016
Slide 13: Conclusion
63 106 133 240 224 210 234 182 134 216 184 170 140 136 136 232 232 232 115 76 82 Conclusion · Iconic power brand with deep heritage, global recognition · Significant growth potential leveraging G - III’s core competencies, strong track record and industry reputation · Complementary addition to G - I
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