Consumer & Retail Industry Insight March 2021 - THE PEAKSTONE GROUP
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www.peakstone.com Consumer & Retail Industry Insight March 2021
Consumer & Retail
Industry Insight | March 2021
U.S. Consumer & Retail Industry – M&A Market Overview
U.S. Consumer & Retail transaction activity has been strong
U.S. Consumer & Retail Transactions by Buyer Type U.S. Consumer & Retail Transaction Multiples
12.4x
12.0x 11.5x
11.1x
10.1x
36
31 43 10.4x
30 9.5x
25 31
26 6.3x
70 70
60 60 58 62
49 1.9x 2.0x
1.4x 1.7x
1.2x 1.1x 1.0x
4 0.9x
9
2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021
Strategic Financial EV / EBITDA EV / Revenue
Source: Capital IQ
Note: Represents transactions above $100 million total transaction value
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1Consumer & Retail
Industry Insight | March 2021
Peakstone Consumer & Retail Index – Trading Statistics
Relative Stock Performance – Group 1
250%
Consumer Electronics: 190%
200% S&P 500: 89%
Consumer Services: 68%
150% Automotive and Components: 46%
Apparel, Accessories and Luxury: 19%
100%
50%
Peakstone Apparel & Accessories Index
VFC, UAA, HBI, PVH, RL
0%
Peakstone Automotive Index
F, GM, GT, BWA, LEA
Peakstone Consumer Electronics Index
-50% UEIC, AAPL, A005930, MSFT, HPQ
Peakstone Consumer Services Index
MCD, HLT, CCL, YUM, ARMK
-100%
Source: Capital IQ, data as of March 2021
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2Consumer & Retail
Industry Insight | March 2021
Peakstone Consumer & Retail Index – Trading Statistics
Comparable Valuation Trends – Enterprise Value / EBITDA – Group 1
30.0x
Consumer Services: 25.0x
S&P 500: 17.6x
25.0x
Automotive and Components: 11.5x
Apparel, Accessories and Luxury: 11.4x
20.0x Consumer Electronics: 10.8x
15.0x
Peakstone Apparel & Accessories Index
10.0x
VFC, UAA, HBI, PVH, RL
Peakstone Automotive Index
F, GM, GT, BWA, LEA
Peakstone Consumer Electronics Index
5.0x
UEIC, AAPL, A005930, MSFT, HPQ
Peakstone Consumer Services Index
MCD, HLT, CCL, YUM, ARMK
0.0x
Source: Capital IQ, data as of March 2021
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3Consumer & Retail
Industry Insight | March 2021
Peakstone Consumer & Retail Index – Trading Statistics
Relative Stock Performance – Group 2
140%
Home Improvement: 99%
120%
Footwear: 60%
100% S&P 500: 89%
Retailing: 89%
80%
Leisure Products: 49%
60%
40%
20%
Peakstone Footwear Index
0% NKE, SKX, WWW, DECK
Peakstone Home Improvement Index
HD, LOW, SHW
-20%
Peakstone Leisure Products Index
HAS, MAT, PII, BC
-40% Peakstone Retailing Index
AMZN, TGT, LOW, M, WMT, URBN
-60%
Source: Capital IQ, data as of March 2021
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4Consumer & Retail
Industry Insight | March 2021
Peakstone Consumer & Retail Index – Trading Statistics
Comparable Valuation Trends – Enterprise Value / EBITDA – Group 2
20.0x
S&P 500: 17.6x
18.0x
Footwear: 15.3x
16.0x Home Improvement: 14.0x
Leisure Products: 11.2x
14.0x
Retailing: 11.0x
12.0x
10.0x
8.0x
Peakstone Footwear Index
6.0x NKE, SKX, WWW, DECK
Peakstone Home Improvement Index
HD, LOW, SHW
4.0x
Peakstone Leisure Products Index
HAS, MAT, PII, BC
2.0x Peakstone Retailing Index
AMZN, TGT, LOW, M, WMT, URBN
0.0x
Source: Capital IQ, data as of March 2021
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5Consumer & Retail
Industry Insight | March 2021
Public Trading Comparables by Sector
Selected Public Trading Comparables – Group 1
($ in millions) Market Enterprise Enterprise Value / Forward Gross EBITDA
Company Name Cap Value Revenue EBITDA EBIT P/E Ratio Margin % Margin %
Apparel, Accessories and Luxury
V.F. Corporation $30,436 $33,881 3.9x 23.4x 53.6x 29.0x 54% 10%
PVH Corp. $7,078 $11,024 1.4x 11.4x NM 21.8x 54% 4%
Hanesbrands Inc. $6,435 $10,037 1.5x 8.6x 12.7x 11.7x 38% 14%
Under Armour, Inc. $9,484 $9,973 2.2x 32.5x NM 123.8x 49% 4%
Ralph Lauren Corporation $8,845 $9,765 2.2x 10.0x 89.3x 22.8x 65% 8%
Apparel, Accessories and Luxury Median $8,845 $10,037 2.2x 11.4x 53.6x 22.8x 54% 8%
0
Automotive and Components
Ford Motor Company $47,466 $179,833 1.4x 33.7x NM 10.8x 5% 4%
General Motors Company $74,683 $166,464 1.4x 11.5x 18.3x 10.1x 12% 11%
BorgWarner Inc. $11,117 $13,769 1.4x 8.6x 14.0x 11.7x 19% 15%
Lear Corporation $9,965 $11,617 0.7x 8.7x 18.7x 12.2x 7% 7%
The Goodyear Tire & Rubber Company $4,248 $9,762 0.8x 12.1x NM 23.4x 17% 4%
Automotive and Components Median $11,117 $13,769 1.4x 11.5x 18.3x 11.7x 12% 7%
0
Consumer Electronics
Apple Inc. $2,016,754 $1,933,226 6.6x 22.7x 26.0x 27.7x 39% 29%
Microsoft Corporation $1,710,047 $1,660,840 10.8x 22.5x 27.6x 30.2x 68% 47%
Samsung Electronics Co., Ltd. $490,679 $405,213 1.9x 6.9x 12.5x 15.4x 39% 27%
HP Inc. $34,992 $37,009 0.6x 7.4x 8.8x 9.5x 19% 9%
Universal Electronics Inc. $808 $784 1.3x 10.8x 20.9x 14.1x 29% 11%
Consumer Electronics Median $490,679 $405,213 1.9x 10.8x 20.9x 15.4x 39% 27%
0
Consumer Services
McDonald's Corporation $152,723 $200,737 10.5x 19.7x 28.8x 24.5x 51% 45%
Carnival Corporation & plc $30,493 $49,370 8.8x NM NM NM 15% -48%
Yum! Brands, Inc. $31,077 $42,147 7.5x 21.2x 23.9x 25.9x 48% 34%
Hilton Worldwide Holdings Inc. $33,513 $42,009 26.3x 83.0x NM 61.5x 61% 24%
Aramark $10,319 $17,877 1.6x 28.7x NM 100.3x 10% 1%
Consumer Services Median $31,077 $42,147 8.8x 25.0x 26.3x 43.7x 48% 24%
Source: Capital IQ, data as of March 2021
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6Consumer & Retail
Industry Insight | March 2021
Public Trading Comparables by Sector (continued)
Selected Public Trading Comparables – Group 2
($ in millions) Market Enterprise Enterprise Value / Forward Gross EBITDA
Company Name Cap Value Revenue EBITDA EBIT P/E Ratio Margin % Margin %
Footwear
NIKE, Inc. $208,160 $209,153 5.5x 33.9x 54.0x 38.7x 43% 13%
Deckers Outdoor Corporation $8,744 $7,853 3.3x 13.1x 16.7x 22.2x 54% 22%
Skechers U.S.A., Inc. $5,799 $6,576 1.4x 11.6x 43.0x 20.0x 48% 6%
Wolverine World Wide, Inc. $2,877 $3,428 1.9x 17.5x 28.4x 17.3x 41% 9%
Footwear Median $7,271 $7,214 2.6x 15.3x 35.7x 21.1x 45% 11%
0
Home Improvement
The Home Depot, Inc. $270,151 $305,678 2.3x 14.0x 16.7x 20.3x 34% 16%
Lowe's Companies, Inc. $112,671 $133,686 1.5x 11.2x 13.9x 16.5x 33% 13%
The Sherwin-Williams Company $58,775 $68,662 3.7x 17.1x 24.0x 24.9x 47% 19%
Home Improvement Median $112,671 $133,686 2.3x 14.0x 16.7x 20.3x 34% 16%
0
Leisure Products
Hasbro, Inc. $12,669 $16,664 3.0x 15.1x 22.2x 21.3x 51% 18%
Mattel, Inc. $6,984 $9,407 2.1x 12.5x 22.6x 27.7x 49% 13%
Polaris Inc. $7,592 $8,553 1.2x 9.6x 14.5x 14.1x 25% 12%
Brunswick Corporation $6,903 $7,367 1.7x 9.9x 13.4x 14.2x 29% 16%
Leisure Products Median $7,288 $8,980 1.9x 11.2x 18.3x 17.8x 39% 15%
0
Retailing
Amazon.com, Inc. $1,499,399 $1,516,232 3.9x 27.9x 66.2x 63.8x 40% 12%
Walmart Inc. $360,819 $412,557 0.7x 11.0x 18.0x 23.3x 25% 6%
Target Corporation $85,059 $91,657 1.0x 9.9x 14.0x 20.1x 29% 10%
Macy's, Inc. $4,701 $11,066 0.6x 23.0x NM 23.4x 32% 0%
Urban Outfitters, Inc. $3,446 $4,081 1.2x 10.2x 209.6x 21.9x 25% 4%
Retailing Median $85,059 $91,657 1.0x 11.0x 42.1x 23.3x 29% 6%
0
Total Consumer and Retail Median $21,553 $25,879 1.8x 12.5x 21.6x 21.9x 39% 12%
Source: Capital IQ, data as of March 2021
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7Consumer & Retail
Industry Insight | March 2021
Selected Consumer & Retail Industry Transactions
Selected Consumer and Retail Transactions
Transaction
Date Target / Issuer Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments
Apollo Global Management, Inc. (NYSE:APO) entered into a definitive merger
The Michaels Companies, Inc. Apollo Global Management,
03/03/2021 $7,420 5.4x agreement to acquire The Michaels Companies, Inc. (NasdaqGS:MIK) (the
(NasdaqGS:MIK) Inc. (NYSE:APO)
“Company”) for $3.2 billion on March 2, 2021.
The Goodyear Tire & Rubber Company (NasdaqGS:GT) entered into a definitive
Cooper Tire & Rubber The Goodyear Tire & Rubber
02/22/2021 $3,237 6.3x transaction agreement to acquire Cooper Tire & Rubber Company (NYSE:CTB) for
Company (NYSE:CTB) Company (NasdaqGS:GT)
$2.8 billion on February 22, 2021.
Tractor Supply Company (NasdaqGS:TSCO) entered into an agreement to acquire
Tractor Supply Company
02/17/2021 Orscheln Farm and Home LLC $297 - Orscheln Farm and Home LLC for approximately $300 million on February 17, 2021.
(NasdaqGS:TSCO)
The consideration is paid in cash.
JD Sports Fashion plc (LSE:JD.) and DTLR Villa LLC management team entered into a
02/01/2021 DTLR Villa LLC $495 JD Sports Fashion plc (LSE:JD.) - conditional agreement to acquire DTLR Villa LLC from Bruckmann, Rosser, Sherrill &
Co. L.L.C.
Marriott Vacations Marriott Vacations Worldwide Corporation (NYSE:VAC) entered into an agreement
01/26/2021 Welk Hospitality Group, Inc. $427 Worldwide Corporation - to acquire Welk Hospitality Group, Inc for approximately $430 million on January
(NYSE:VAC) 26, 2021.
Franchise Group, Inc. (NasdaqGM:FRG) entered into a definitive agreement to
Franchise Group, Inc.
01/25/2021 Pet Supplies Plus, LLC $700 - acquire Pet Supplies Plus, LLC from Sentinel Capital Partners, L.L.C. in a transaction
(NasdaqGM:FRG)
valued at approximately $700 million on January 25, 2021.
THG Holdings plc (LSE:THG) agreed to acquire DermStore, LLC from Target
12/29/2020 DermStore, LLC $350 THG Plc (LSE:THG) - Corporation (NYSE:TGT) for $350 million on December 29, 2020. The deal is subject
to regulatory approval in the United States.
Source: Capital IQ
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8Consumer & Retail
Industry Insight | March 2021
Selected Consumer & Retail Industry Transactions (cont.)
Selected Consumer and Retail Transactions
Transaction
Date Target / Issuer Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments
Eastern Band Of Cherokee Indians (EBCI) entered into definitive agreement to
Operations of Caesars Eastern Band Of Cherokee
12/24/2020 $250 - acquire Operations of Caesars Southern Indiana for $250 million on December 24,
Southern Indiana Indians
2020. The deal value is subject to customary purchase price adjustments.
Amer Sports Financial
Peloton Interactive, Inc.
12/21/2020 Services Oy/ASP Fitness $420 - Peloton Interactive, Inc.
(NasdaqGS:PTON)
Limited/Precor Incorporated
Sportsman's Warehouse GREAT OUTDOORS GROUP, LLC entered into a definitive agreement to acquire
12/21/2020 Holdings, Inc. $1,102 Great Outdoors Group, LLC 5.7x Sportsman's Warehouse Holdings, Inc. (NasdaqGS:SPWH) for approximately $810
(NasdaqGS:SPWH) million on December 21, 2020. Under the terms of the transaction, 43.
Tiffin
Motorhomes/Vanleigh/Water Thor Industries, Inc. (NYSE:THO) acquired Tiffin Motorhomes, Inc., Vanleigh RV, Inc.,
Thor Industries, Inc.
12/18/2020 -Way/Wynne $300 - Water-Way, Inc., Wynne Enterprises, Inc., Tiffin Door Co., Inc., Roma Enterprises,
(NYSE:THO)
Enterprises/Tiffin Door/Roma Inc., Drive-A-Way of Red Bay, Inc.
Enterprises/Drive-A-Way/TVL
Genesis Holdings Inc. acquired Shoe Palace, Inc. and Nice Kicks LLC from Mersho
Shoe Palace, Inc./Nice Kicks
12/15/2020 $681 Genesis Holdings Inc. - family and others for approximately $680 million on December 14, 2020. Under the
LLC
transaction, Genesis Holdings Inc. acquired 100% stake in Shoe Palace, Inc.
Flutter Entertainment plc (ISE:FLTR) entered into an agreement to acquire an
Flutter Entertainment plc
12/03/2020 FanDuel Inc. $4,198 - additional 37.2% stake in FanDuel Inc. from Fastball Holdings LLC for $4.2 billion on
(ISE:FLTR)
December 3, 2020.
Cards Parent LP entered into definitive agreement to acquire Collectors Universe,
Inc. (NasdaqGM:CLCT) from Alta Fox Capital Management LLC and others for
11/30/2020 Collectors Universe, Inc. $871 Cards Parent LP 26.8x
approximately $700 million on November 30, 2020. The consideration paid will be
$75.
Source: Capital IQ
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9Consumer & Retail
Industry Insight | March 2021
Selected Consumer & Retail Industry Transactions (cont.)
Selected Consumer and Retail Transactions
Transaction
Date Target / Issuer Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments
Premium Apparel LLC entered into an asset purchase agreement to acquire brand
Brand Assets of Ascena Retail
11/26/2020 $540 Premium Apparel, LLC - assets from Ascena Retail Group, Inc. (OTCPK:ASNA.Q) for approximately $540
Group, Inc.
million on November 26, 2020.
HelloFresh SE (XTRA:HFG) entered into an agreement to acquire Factor75, LLC for
11/23/2020 Factor75, LLC $277 HelloFresh SE (XTRA:HFG) -
$277 million on November 23, 2020.
De'Longhi Appliances S.r.l reached a definitive agreement to acquire Capital Brands,
11/23/2020 Capital Brands, LLC $420 De'Longhi Appliances S.r.l - LLC from Centre Lane Partners, LLC for approximately $420 million on November
23, 2020.
ACCO Brands USA LLC entered into a definitive agreement to acquire PowerA from
11/10/2020 PowerA $395 ACCO Brands USA LLC - Bensussen Deutsch & Associates, Inc. for approximately $400 million on November
10, 2020.
V.F. Corporation (NYSE:VFC) entered into an agreement to acquire Supreme
Holdings, Inc. for a group of shareholders for an enterprise value of $2.4 billion on
11/09/2020 Supreme Holdings, Inc. $2,400 V.F. Corporation (NYSE:VFC) -
November 8, 2020. V.F. Corporation agreed to pay an aggregate base purchase
price of $2.
Wend American Group LLC and Hut American Group LLC entered into a stalking
Substantially All Assets of NPC Wend American Group LLC;
11/06/2020 $816 - horse asset purchase agreement to acquire Substantially All Assets of NPC
International, Inc. Hut American Group LLC
International, Inc. for approximately $820 million on November 5, 2020.
Arrow Holdings S.A.R.L. entered into bid to acquire remaining 36.7% interest in
Target Hospitality Corp. Target Hospitality Corp. (NasdaqCM:TH) for $58.5 million on November 4, 2020. In
11/05/2020 $456 Arrow Holdings S.à r.l. 6.0x
(NasdaqCM:TH) consideration, Arrow Holdings S.A.R.L. will pay a cash consideration of $1.50 per
share.
Source: Capital IQ
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10Consumer & Retail
Industry Insight | March 2021
Selected Consumer & Retail Industry Transactions (cont.)
Selected Consumer and Retail Transactions
Transaction
Date Target / Issuer Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments
Nestlé USA, Inc. acquired the remaining approximately 84% stake in Freshly, Inc. on
10/30/2020 Freshly, Inc. $1,500 Nestlé USA, Inc. - October 30, 2020. The deal values Freshly at $950 million, with potential earnouts
up to $550 million contingent to the successful growth of the business.
Inspire Brands, Inc. entered into a definitive merger agreement to acquire Dunkin'
10/30/2020 Dunkin' Brands Group, Inc. $12,364 Inspire Brands, Inc. 21.0x Brands Group, Inc. (NasdaqGS:DNKN) for $8.8 billion on October 30, 2020. Under
the terms of the tender offer, Inspire Brands, will pay $106.5 per share in cash.
American Public Education, Inc. (NasdaqGS:APEI) entered into a definitive
American Public Education, agreement to acquire Rasmussen College, Inc from Renovus Capital Partners II LP,
10/29/2020 Rasmussen College, Inc. $329 7.7x
Inc. (NasdaqGS:APEI) fund managed by Renovus Capital Partners for approximately $330 million on
October 28, 2020.
Kainos Capital LP entered into stock purchase agreement to acquire Nutrisystem,
10/19/2020 Nutrisystem, Inc. $575 Kainos Capital LP - Inc. from Tivity Health, Inc. (NasdaqGS:TVTY) for approximately $580 million on
October 18, 2020. The consideration is subject to customary adjustments.
Sun Communities Operating Limited Partnership entered into a definitive merger
Sun Communities Operating
09/29/2020 Safe Harbor Marinas, LLC $2,133 - agreement to acquire Safe Harbor Marinas, LLC for $2.1 billion on September 29,
Limited Partnership
2020. The total consideration of approximately $2.
Compass Diversified (NYSE:CODI), management and two shareholders of Boa
Compass Diversified
09/22/2020 Boa Technology Inc. $454 15.1x Technology Inc. entered into a definitive agreement to acquire Boa Technology Inc.
(NYSE:CODI)
from management and two shareholders of Boa Technology Inc.
Scientific Games Corporation Caledonia (Private) A group of institutional investors led by Caledonia (Private) Investments Pty Limited
09/14/2020 $925 13.7x
(NasdaqGS:SGMS) Investments Pty Limited entered into a stock purchase agreement to acquire 34.
Source: Capital IQ
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11Consumer & Retail
Industry Insight | March 2021
Selected Consumer & Retail Industry Transactions (cont.)
Selected Consumer and Retail Transactions
Transaction
Date Target / Issuer Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments
Adtalem Global Education Inc. (NYSE:ATGE) entered into a membership interest
Adtalem Global Education Inc.
09/11/2020 Walden e-Learning, LLC $1,480 8.4x purchase agreement to acquire Walden e-Learning, Inc. from Laureate Education,
(NYSE:ATGE)
Inc. (NasdaqGS:LAUR) for $1.5 billion on September 11, 2020.
Simon Property Group, Inc. Brookfield Property Partners L.P. (NasdaqGS:BPY) and Simon Property Group, Inc.
All Of Retail And Operating
(NYSE:SPG); Brookfield (NYSE:SPG) entered into letter of intent to acquire all of retail and operating assets
09/09/2020 Assets Of J. C. Penney $1,192 -
Property Partners L.P. of J. C. Penney Company, Inc. (OTCPK:JCPN.Q) for $800 million on September 9,
Company, Inc.
(NasdaqGS:BPY) 2020.
ServiceMaster Brands Roark Capital Group entered into a purchase agreement to acquire ServiceMaster
09/02/2020 Businesses of ServiceMaster $1,553 Roark Capital Group - Brands business of ServiceMaster Global Holdings, Inc. (NYSE:SERV) for $1.6 billion
Global Holdings, Inc. on September 1, 2020.
Diageo plc (LSE:DGE) signed an agreement to acquire Davos Brands LLC from Fairfax
08/17/2020 Davos Brands LLC $610 Diageo plc (LSE:DGE) - Financial Holdings Limited (TSX:FFH) and others for approximately $610 million on
August 15, 2020.
7-Eleven, Inc. entered into an agreement to acquire Speedway LLC from MPC
Investment LLC, Tesoro Refining & Marketing Company LLC, Western Refining
08/02/2020 Speedway LLC $21,000 7-Eleven, Inc. 14.0x
Southwest, Inc., Northern Tier Retail Holdings LLC and Andeavor LLC for $21 billion
on August 2, 2020.
First Brands Group, LLC acquired Brake Parts Inc. from Torque Capital Group LLC
07/31/2020 Brake Parts Inc. $510 First Brands Group, LLC - and others for $510 million on July 31, 2020. In a related transaction, First Brands
Group, LLC acquired Champion Laboratories Inc. on July 31, 2020.
Substantially All The Global SPARC Group LLC and Authentic Brands Group LLC entered into an asset purchase
Authentic Brands Group LLC;
07/23/2020 Business Operations of $325 - agreement to acquire substantially all the global business operations of Brooks
SPARC Group LLC
Brooks Brothers Group, Inc. Brothers Group, Inc. for approximately $330 million on July 23, 2020.
Source: Capital IQ
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12Consumer & Retail
Industry Insight | March 2021
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13Consumer & Retail
Industry Insight | March 2021
Contact Us
About Peakstone
Peakstone is an investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market
clients. Our team is comprised of senior investment banking professionals who have decades of experience and have executed
hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com.
Contact
Alex Fridman Gerald Bobal
Managing Director Senior Analyst
alex@peakstone.com gbobal@peakstone.com
312-346-7303 312-346-7352
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