HOME FURNISHING DEMAND RISES AMID PANDEMIC
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HOME FURNISHING DEMAND RISES AMID PANDEMIC
HOME GOODS UPDATE | DECEMBER 2020
CONTACTS KEY HIGHLIGHTS
Lisa Tolliver • The Home Goods industry suffered from early
Senior Director headwinds but has bounced back strong
• Digital companies have demonstrated the most
resilience amid the pandemic
• M&A activity has slowed but strategic buyers
Kenneth Wasik remain active
Managing Director,
Head of Consumer & Retail • Capstone expects M&A activity to increase in 2021,
presenting a favorable opportunity for home
goods providers to come to market as strategics
look to bolster offerings and private equity buyers
seek to build out their sector portfolios
December 2020
3
Home Goods
Home Furnishing Demand Rises Amid Pandemic
TABLE OF CONTENTS INDUSTRY OUTLOOK
Industry Outlook Following substantial headwinds during the onset of the pandemic, the Home
COVID-19 Impacts Goods industry has demonstrated a remarkable recovery driven by consumers’
heightened focus on home furnishings and improvement amid increased time
M&A Overview at home. Quarantine restrictions and work from home trends are fueling
Notable Transactions home goods spending and investors are showing increased attraction to the
Select Transactions sector. Capstone expects merger and acquisition (M&A) activity to accelerate
for quality home goods companies with established online channels, strong
Public Company Data brand recognition, and differentiated business models. Strategic buyers
Key Takeaways remain active and private equity firms are shifting from crisis management of
Firm Track Record portfolio companies to actively pursuing platform and add-on investments.
The acceleration of e-commerce adoption has been apparent, evidenced by
leading online home furnishings retailer Wayfair’s (NYSE:W) 83.7% year-over-
year (YOY) revenue increase,1 and kitchenware provider Williams-Sonoma’s
(NYSE:WSM) Q2 e-commerce sales accounting for nearly 76% of total
revenues.2 In addition, Casper (NYSE:CSPR), which leverages retail
partnerships with Costco (Nasdaq:COST), Target (NYSE:TGT), and Amazon
(Nasdaq:AMZN), was able to drive strong sales gains in Q2, with revenue from
retail partnerships increasing 61% from the prior year, according to its
earnings release.3
Public companies in the Home Goods industry experienced significant stock
CONTACTS performance declines in the first half of the year but have recovered to
produce positive returns in recent months. Home goods retailers have led all
Lisa Tolliver subsegments, (+64.7%) while lawn & garden (+37.2%) public companies have
Senior Director emerged as a bright spot and shown resilience throughout the pandemic.
773-791-9493
ltolliver@capstoneheadwaters.com Capstone Public Company Index Returns
Kenneth Wasik Furniture & Home Furnishing Household Products
Managing Director, Lawn & Garden Home Goods Retailers
Head of Consumer & Retail 100%
917-434-6124
Percentage Change
kwasik@capstoneheadwaters.com 50%
0%
-50%
-100%
Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20
Note: List of companies on pages 7-8
Source: Capital IQ and Capstone Research
2
Home Goods | December 2020
COVID-19 IMPACTS: MATTRESS & BEDDING
COVID-19 severely challenged the retail environment in Mattress & Bedding Performance
the first half of 2020 with sales falling nearly 15% (Census
Bureau4) at peak disruption in April. In addition, Home Mattress & Bedding Index S&P 500
Goods providers concentrated in physical retail stores
experienced substantial headwinds, evidenced by the 30%
bankruptcies of Pier 1 Imports, Art Van Furniture, and Sur 20%
La Table. However, with consumers spending an increasing
Percentage Change
10%
amount of time in their homes and prioritizing home
0%
improvement and furnishing, industry demand has
-10%
rebounded significantly. While in-store retailers have
struggled with closures and social distancing protocols, -20%
digitally native brands and direct-to-consumer providers -30%
with differentiated products and resilient supply chains -40%
have experienced heightened sales growth. -50%
-60%
Mattress and bedding providers have experienced strong -70%
demand in recent months, especially those that have Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20
invested in online channels and brand development.
Following significant disruption at the onset of the Note: Index includes SNBR, CSPR, PRPL, TPX
pandemic, the sector has rebounded immensely, with Source: Capital IQ and Capstone Research
Capstone’s Mattress & Bedding public company index
returning nearly 19% as of October 19th, outpacing the their home as well as their own well-being. They
S&P 500. Notably, online mattress provider Purple understand the strong connection between sleep and
Innovation (Nasdaq:PRPL) recorded a 60.3% YOY revenue overall health and wellness. Consumers are also adapting
increase in Q2, with direct-to-consumer revenue rising digital products and service at a much faster and higher
127.9%, according to its earnings release.5 In addition, rate,” commented Shelly Ibach, Sleep Number CEO,
Casper experienced a 15.7% YOY revenue increase, despite President & Executive Director.
recording modest sales in its retail stores, highlighting the
effectiveness of robust e-commerce channels. While the Mattress & Bedding subsegment has
experienced heightened demand, capacity constraints
Comprehensive digital capabilities have proved to be have challenged top providers. Tempur Sealy (NYSE:TPX)
critical to operational resilience and industry participants which combated significant supply chain issues through
are increasingly leveraging data and media solutions to Q2, especially in its U.S. Sealy products, struggled to meet
bolster digital traffic. Notably, home goods & décor e- demand and experienced a YOY revenue decline of nearly
commerce sales increased 88% YOY in September, 8%, according to its earnings release.8 However,
according to Signifyd.6 Leading mattress provider, Sleep improving order trends on its U.S. Tempur-Pedic products
Number (Nasdaq:SNBR) has accelerated its digital have led to optimism for Q3 sales growth, which the
capabilities in the wake of the pandemic, with digital traffic company expects to increase over 30% from the prior
already surpassing 2019 totals in Q3, according to its most year, according to a press release.9 In addition, despite
recent earnings call.7 It has utilized automation, machine Purple Innovation’s strong Q2 performance, many orders
learning, and proprietary data to increase conversion of placed in Q2 were not recognized as quarterly revenue
elevated consumer demand. “Consumers are prioritizing due to capacity limitations and an extensive backlog.
Lisa Tolliver, Senior Director
“With an active client in the Soft Home Goods sector, we are front and center regarding
discussions with leading industry players and private equity groups interested in this growing
sector. The Home Goods industry is experiencing strong momentum, particularly for businesses
selling via online channels, whether through their own websites or major etailers such as
Amazon, Wayfair, Target.com, etc. Consumers are shopping online and keenly focused on
nesting and making their homes more comfortable, trends that are expected to continue long-
term post pandemic.”
3
Home Goods | December 2020
M&A OVERVIEW
M&A activity through year-to-date (YTD) 2020 has trailed M&A Transaction Volume
2019 transaction volume by 32% as many strategics
paused acquisitions and private equity focused on the 2019 2020
health of existing investments. However, volume has 50
Number of Transactions
surged in YTD Q4 with 22 deals announced or completed,
40
increasing 175% from the prior quarter and slightly
outpacing YOY levels. In addition, total disclosed deal 29
30 26 24
value has amounted to over $1.6 billion, modestly 21 21 22
exceeding 2019 YTD totals. The resurgence in transaction 20
volume follows two quarters of depressed deal activity, 12
8
with Q2 and Q3 recording YOY declines of 43% and 72%, 10
respectively. The significant increase in M&A interest
through YTD Q4 supports robust optimism for the Home 0
Goods sector as buyers leverage greater financial visibility Q1 Q2 Q3 YTD Q4
to reengage in inorganic growth strategies.
Note: Year-to-date ended December 4
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
The Furniture & Home Furnishing subsegment has
comprised the largest percentage of transactions with 28 follows the divestitures of e-commerce home furnishing
deals, followed by Lawn & Garden with 11 transactions. provider One Kings Lane (April, undisclosed) and
Top lawn & garden players have showcased robust PersonalizationMall (February, $252 million), an online gift
performance, benefiting from at-home trends. Notably, and home products company.
Scotts Miracle-Gro (NYSE:SMG) recorded a 27.5% YOY
increase in Q2 revenue and cited increased prospective Private equity has demonstrated robust appetite in the
M&A opportunities in recent months, according to its Home Goods sector through the pandemic, accounting
earnings call.10 Most recently, Scotts acquired a 19.5% for 30% of total deals, slightly above 2019 levels. PE firms
stake in AeroGrow International (OTCPK:AERO) for $20.1 have largely acted through add-on acquisitions to bolster
million in October. While public companies have not and diversify existing portfolio companies, which
been active acquirers through YTD 2020, accounting for comprised nearly 18% of total transactions in the YTD.
only 9% of transactions, they have utilized M&A to divest This has been evidenced by HCI Equity Partners-backed
non-core businesses in order to improve liquidity and Wellborn Forests acquisition of De Pere Cabinet
narrow product focus. Notably, Bed Bath & Beyond (September, undisclosed), a provider of semi-custom
(Nasdaq:BBBY) sold three businesses in the Home Goods kitchen cabinets primarily for single-family residences.
sector this year, most recently selling Christmas Tree Capstone expects continued private equity interest in
Shops to Handil Holdings (see next page). The sale 2021 for targets demonstrating robust growth.
follows
Lisa Tolliver, Senior Director
“Overall M&A activity has been down compared to last year due to the pandemic. However,
there are some bright pockets of strong M&A activity for businesses that are benefitting from the
surge in demand in online shopping and changing consumer behaviors. Strategics have been
active, accounting for nearly 70% of transactions year-to-date. However, we are seeing strong
interest from private equity groups focused on the long-term outlook of the Home Goods sector
and searching for opportunities to build a home goods focused portfolio. In particular, we are
seeing renewed interest in sectors such as Furniture, Home Office Furnishings, Bedding, Bath and
Kitchen items, Garden and Outdoor decor, in addition to gift related decor and accessories.”
4
Home Goods | December 2020
NOTABLE TRANSACTIONS
Several notable transactions have been announced or completed in the industry in 2020. Select transactions are outlined below,
followed by a more comprehensive list.
HNI Corporation to acquire Design Public LLC
(December 2020, Undisclosed)
HNI Corporation (NYSE:HNI), a premier office furniture and hearth product manufacturer, has agreed to
acquire leading e-commerce distributor of high-design furniture and accessories for office and home
settings, Design Public Group. Terms of the transaction were not disclosed. The acquisition includes
Design Public’s two e-commerce platforms – Design Public and Danish Design Store. The transaction
highlights investor appetite for online home goods providers serving attractive end markets, including
home office and furniture. The addition of Design Public bolsters HNI’s workplace furnishings and
To Acquire residential building products offerings and expands its customer network.
“This acquisition aligns nicely with our long-term strategies. Design Public is a digitally native company
bringing skills and capabilities to help us accelerate our digital and e-commerce initiatives. In addition
to supporting our traditional distribution models, we will also increase our reach to a broader consumer
group that increasingly buys furniture online,” commented Jeff Lorenger, Chairman, President and Chief
Executive Officer of HNI Corporation in a press release.11
Handil Holdings, LLC acquires Christmas Tree Shops, Inc.
(October 2020, Undisclosed)
Handil Holdings Handil Holdings has acquired Christmas Tree Shops from Bed Bath & Beyond (Nasdaq:BBBY), a retailer
of bed & bath, furniture, home décor, kitchen & dining, food & drink, and outdoor & garden products.
Terms of the transaction were not disclosed. Christmas Tree Shops generated approximately $400
million in revenues in 2019, according to UBS.12 The transaction highlights a broader restructuring of
Bed Bath & Beyond as it focuses on its core competencies and bolstering its supply chain and
Acquires merchandising operations to improve its strategic portfolio focus on the Home, Baby, Beauty, and
Wellness markets.
“Today’s announcement builds on the purposeful steps we have made throughout the year to simplify
our portfolio, unlock capital and create clear strategic focus to accelerate our plans to build our
authority in the Home, Baby, Beauty and Wellness markets,” said Mark Tritton, Bed Bath & Beyond’s
President and CEO in a press release.13
Brand Velocity Partners acquires BBQGuys
(September 2020, $140 Million)
Brand Velocity Partners (BVP) has acquired leading e-commerce provider of high-end barbeque grills,
outdoor kitchen products, and grilling accessories BBQGuys for an enterprise value of approximately
$140 million. Included in the transaction is affiliated company Blaze Outdoor Products, which provides
barbeque products and accessories. BBQGuys has leveraged rapid order fulfillment capabilities, a
comprehensive e-commerce platform, and scaled infrastructure to deliver 27% annual growth over the
past 15 years, according to a press release.14 Blaze Outdoor Products has also recorded strong sales
penetration over the last seven years, averaging 50% annual growth over the period.
Acquires
"BBQGuys has an entrenched and scalable position in this large, fragmented, growing market," said
Steve Lebowitz BVP Co-Founder and Managing Partner, in the press release. "The backyard is the new
vacation spot. With the company's market expected to grow from $9.7 billion in 2019 to over $11.7
billion by 2024, BBQGuys will benefit from a strong demand profile and secular tailwinds. We're excited
to partner with such a talented management team to build the brand."
5
Home Goods | December 2020
SELECT TRANSACTIONS
Enterprise
Date Target Acquirer Target Business Description Value (mm)
Offers furniture and accessories for home and office settings
12/01/20 Design Public HNI (NYSE:HNI) -
through its e-commerce platform.
Manufactures furniture products including beds, seating, tables,
12/01/20 Jalan Jalan Welcon and outdoor furniture. -
11/02/20 Yeleko GrowGeneration Operates a chain of hydroponic garden centers. $32.0
Provides personalized home goods, apparel, and handcrafted
10/28/20 Custom Personalization LiveXLive (Nasdaq:LIVX) jewelry online. $6.0
Old Brick Furniture and
10/14/20 Bennington Furniture Offers home and mattress products. -
Mattress
Christmas Tree Handil Operates a chain of gift stores providing home décor, furniture,
10/13/20 -
Shops Holdings kitchen & dining, and outdoor products.
D.William Garden Distributes sods, paving stones, slabs, and garden maintenance
10/13/20 Groupe Richer products. -
Center
GrowGeneration
10/12/20 Hydroponics Depot Provides indoor and outdoor gardening equipment and supplies. -
(Nasdaq:GRWG)
10/08/20 American Bath Group Centerbridge Partners Manufactures bathing products. -
Keystone
10/07/20 Wyrmwood Provides custom furniture products. -
Collections
09/29/20 BBQGuys/Blaze Outdoor Brand Velocity Partners Offers grills, outdoor products, and accessories. ~$140.0
09/16/20 De Pere Cabinet Wellborn Forest Manufactures semi-custom wood cabinets. -
Kyle’s Custom Wood Designs, builds, and installs custom cabinetry for contractors and
09/02/20 1847 Cabinet homeowners. $8.4
Shop
07/07/20 Mend Sleep Idle Group Manufactures mattresses. -
07/02/20 Cuisirama Les Ateliers Jacob Provides kitchen furniture products and accessories. -
Malchow’s Home Offers furniture, lighting, mattress and bedding, and flooring
06/26/20 Montgomery’s & window products. -
Furnishings
06/22/20 ProLawn Turf ProGreen Designs and installs residential and commercial synthetic grass. -
General Tools &
05/07/20 Garden Weasel Manufactures garden and lawn tools. -
Instruments
Offers home furnishing products including bedroom, outdoor,
04/30/20 Salt Flat Malouf -
living room, and office furniture.
04/15/20 One Kings Lane CSC Generation Provides home furnishings through its online store. -
Offers hardwood, carpets, tile, and natural stone in its home
03/03/20 Value Plus Flooring Artisan Design Group furnishing retail stores. -
Alexis Designs chairs and wood components for the Furniture
02/25/20 Roll & Hill industry. -
Manufacturing
Manufactures bed pillows, decorative cushions, outdoor cushions,
02/21/20 Superior Quilting Mahanjan Home and bedding. -
Source: Capital IQ, PitchBook, FactSet, and Capstone Research
6
Home Goods | December 2020
PUBLIC COMPANY DATA: FURNITURE & HOME FURNISHING
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 12/03/20 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Casper Sleep Inc. $6.19 39.1% $250.9 $220.6 $473.6 NM NA 0.5x NM
Ethan Allen Interiors Inc. $18.81 98.0% $471.2 $536.6 $567.0 $74.0 13.1% 0.9x 7.2x
home24 SE $22.67 89.4% $598.7 $563.0 $526.8 $28.3 5.4% 1.1x 19.9x
La-Z-Boy Incorporated $38.40 90.0% $1,771.9 $1,746.4 $1,587.7 $267.5 16.8% 1.1x 6.5x
Purple Innovation, Inc. $29.16 87.4% $1,776.8 $1,724.8 $598.9 $74.7 12.5% 2.9x 23.1x
Sleep Number Corporation $72.18 97.1% $2,003.5 $2,378.6 $1,729.8 $206.0 11.9% 1.4x 11.5x
Tempur Sealy International, Inc. $25.29 97.5% $5,218.7 $6,864.3 $3,491.2 $659.4 18.9% 2.0x 10.4x
Mean 13.1% 1.4x 13.1x
EV = enterprise value; LTM = last twelve months Median 12.8% 1.1x 11.0x
$ in millions, except per share data
NM = Not Meaningful Harmonic Mean 11.1% 1.1x 10.6x
PUBLIC COMPANY DATA: HOUSEHOLD PRODUCTS
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 12/03/20 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Hamilton Beach Brands $18.13 72.5% $248.1 $318.9 $575.3 $42.5 7.4% 0.6x 7.5x
Lifetime Brands, Inc. $14.09 97.4% $306.7 $666.6 $746.9 $83.3 11.2% 0.9x 8.0x
Newell Brands Inc. $21.77 99.4% $9,237.0 $14,910.0 $9,319.9 $1,478.1 15.9% 1.6x 10.1x
Spectrum Brands Holdings, Inc. $66.93 97.1% $2,883.5 $4,947.7 $3,964.2 $573.8 14.5% 1.2x 8.6x
Tupperware Brands Corporation $36.95 98.8% $1,817.0 $2,513.4 $1,667.7 $252.3 15.1% 1.5x 10.0x
Mean 12.8% 1.2x 8.8x
Median 14.5% 1.2x 8.6x
Harmonic Mean 11.8% 1.0x 8.7x
Source: Capital IQ as of December 3, 2020
7
Home Goods | December 2020
PUBLIC COMPANY DATA: LAWN & GARDEN
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 12/03/20 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Central Garden & Pet Company $39.01 87.1% $2,011.6 $2,173.9 $2,695.5 $299.9 11.1% 0.8x 7.2x
The Scotts Miracle-Gro Company $170.33 94.6% $9,494.2 $11,185.7 $4,131.6 $713.6 17.3% 2.7x 15.7x
The Toro Company $89.34 96.7% $9,586.0 $10,167.7 $3,272.2 $521.9 16.0% 3.1x 19.5x
Mean 14.8% 2.2x 14.1x
Median 16.0% 2.7x 15.7x
Harmonic Mean 14.3% 1.6x 11.9x
PUBLIC COMPANY DATA: HOME GOODS RETAILERS
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 12/03/20 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Amazon.com, Inc. $3,186.73 89.7% $1,598,945.5 $1,627,357.5 $347,945.0 $49,336.0 14.2% 4.7x NM
Bed Bath & Beyond Inc. $19.57 74.8% $2,435.9 $4,551.8 $9,861.6 $969.1 9.8% 0.5x 4.7x
RH $458.15 98.0% $8,940.4 $10,659.8 $2,534.7 $590.1 23.3% 4.2x 18.1x
Target Corporation $174.92 96.6% $87,595.2 $96,604.2 $88,621.0 $8,827.5 10.0% 1.1x 10.9x
Walmart Inc. $149.30 97.2% $422,412.4 $483,360.4 $548,743.0 $41,408.8 7.5% 0.9x 11.7x
Wayfair Inc. $239.77 68.7% $23,844.7 $25,119.9 $13,007.8 $297.5 2.3% 1.9x NM
Williams-Sonoma, Inc. $111.11 96.9% $8,521.8 $9,292.4 $6,334.1 $1,407.7 22.2% 1.5x 6.6x
Mean 12.8% 2.1x 10.4x
Median 10.0% 1.5x 10.9x
Harmonic Mean 7.5% 1.2x 8.4x
Source: Capital IQ as of December 3, 2020
8Home Goods | December 2020
KEY TAKEAWAYS
Lisa Tolliver, Senior Director
• COVID-19 has reshaped the Consumer Goods sector, driving consumer habits to shift and
permanently alter what we value, how and where we shop, in addition to how we live,
educate and work.
• Quarantine restrictions and work from home culture is fueling home goods spending across
furniture, home office, outdoor garden and patio décor, and investors are taking note of the
bright long-term outlook of these sectors.
• M&A activity is expected to accelerate for quality home goods companies with established
online and omnichannel presence, strong brand recognition, unique business models (i.e.,
vertical integration with in-house logistics, etc.) and differentiated product offerings.
• Most consumer-focused private equity groups have now shifted from managing their current
portfolios in the crisis to looking for new investments and are expected to be actively pursuing
both platform and add-on investments throughout 2021.
• Strategics will continue to be active, seeking to increase their e-commerce channel exposure,
diversify their product offerings into high growth categories and refine their sourcing
and logistics.
9Home Goods | December 2020
HOME GOODS REPORT CONTRIBUTORS
Lisa Tolliver
Senior Director
ltolliver@capstoneheadwaters.com | 773-791-9493
Lisa has over 20 years of experience in the investment banking industry, primarily focused on advising
middle market private business owners in liquidity related transactions. As a Senior Director in Capstone
Headwaters’ Consumer practice, she works closely with clients to advise and execute domestic and
cross-border M&A transactions, recapitalizations and capital raises. Lisa has deep M&A expertise and
knowledge of businesses in the e-commerce sector, particularly related to those selling via direct-to-
consumer, Amazon, mass and OTC channels. Prior to Capstone, Lisa worked in the Capital Strategies
Group at Morgan Stanley Smith Barney and spent 10 years working for the middle market investment
banking arm of Citigroup, where she was involved in the evaluation, marketing and closing of numerous
transactions involving private businesses and corporate divestitures. Lisa received her BA on academic
scholarship from Illinois State University and is a Series 7 and 63 Registered Securities Representative.
Kenneth Wasik
Managing Director
kwasik@capstoneheadwaters.com | 917-434-6124
Ken joined Capstone Headwaters to lead the Consumer & Retail practice. He brings nearly 25 years of
investment banking experience including domestic and international mergers & acquisitions, initial and
secondary offerings of public companies, debt raises and private placements for his clients. He has
helped raise over $10 billion in capital for clients during his career. He joins Capstone from Stephens
Investment Bank, where he started and led the Consumer Products Group. Prior to Stephens, Ken was
with Jefferies and Co. as Managing Director of Consumer Products. Before Jefferies and Co., he was
Head of the Consumer, Food and Retail Group at Houlihan, Lokey, Howard, and Zukin, and was
responsible for building out Houlihan’s consumer and retail coverage universe, as well. Ken began his
career in Investing Banking at UBS in New York, NY, where he supported execution of large packaged
goods companies. Ken is a Series 79 Registered Investment Banking Representative and holds an MBA
in Finance from Columbia University and a BS in Accounting from St. Joseph’s University.
Brianna Conway
Associate
bconway@capstoneheadwaters.com | 847-849-0913
Brianna is an Associate in the firm’s Chicago office, working closely with private business owners to
advise and execute mergers, acquisitions and strategic capital raises. Prior to joining Capstone
Headwaters, Brianna was an Analyst at PwC Corporate Finance on their M&A team where she focused
on healthcare provider and services sell-side transactions. Brianna graduated with honors from Indiana
University’s Kelley School of Business with a major in Business Economics and Public Policy. She holds
her Series 7, 63 and 79 licenses.
Connor McLeod
Research Associate
cmcleod@capstoneheadwaters.com | 617-619-3319
Connor is a Research Associate at Capstone Headwaters primarily specializing in Building Products &
Construction Services, Consumer & Retail, Healthcare, and Cybersecurity. Prior to joining Capstone
Headwaters, Connor was a specialist with the Investor Services team at BlackRock where he worked with
mutual funds, closed end funds, and exchange traded funds and communicated fund performance,
relevant market dynamics, and facilitated trades for shareholders, financial advisors, and institutional
clients. Connor holds a BA in Economics from Bates College and is a Series 7 Registered
Securities Representative.
10Home Goods | December 2020
FIRM TRACK RECORD
Capstone Headwaters professionals have represented clients across the Consumer Products & Services industry. This focus
allows Capstone Headwaters to provide Home Goods clients with real-time transaction feedback and immediate access to
key decision makers among the industry’s most active acquirers and investors. A sampling of Capstone Headwaters' closed
transactions is shown below:
CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL
Under LOI Capital Raise Market Prep Market Prep
Leading E-commerce E-commerce Provider Retailer & Online Seller of Designer & Seller of
Provider of of Flowers & Gift Jewelry, Gift & Home Protective Electronics
Soft Home Goods Products Products Accessories
has recapitalized with has been acquired by has been acquired by has partnered with
has been acquired by has been acquired by has merged with has been acquired by
a portfolio company of
a portfolio company of
11Home Goods | December 2020
CITATIONS
1. Wayfair, “Wayfair Announces Second Quarter 2020 Results,”
https://s24.q4cdn.com/589059658/files/doc_financials/2020/q2/Q2-2020-Press-Release.pdf, accessed October 19, 2020.
2. Williams-Sonoma, “Williams-Sonoma, Inc. announces second quarter 2020 results,” https://ir.williams-
sonomainc.com/investor-information/news-releases/news-release-details/2020/Williams-Sonoma-Inc.-announces-
second-quarter-2020-results/default.aspx, accessed October 19, 2020.
3. Casper, “Investor Presentation September 2020,” https://ir.casper.com/home/default.aspx, accessed October 20, 2020.
4. U.S. Census Bureau, “Monthly Retail Trade Report,” https://www.census.gov/retail/index.html, accessed October 19,
2020.
5. Purple Innovation, “Purple Innovation Reports Record Second Quarter 2020 Results,”
https://investors.purple.com/press-releases/news-details/2020/Purple-Innovation-Reports-Record-Second-Quarter-
2020-Results/default.aspx, accessed October 19, 2020.
6. Signifyd, “Year Over Year Ecommerce Growth,” https://www.signifyd.com/ecommerce-pulse-data/, accessed October
19, 2020.
7. Sleep Number, “Q3 2020 Earnings Call,” https://s25.q4cdn.com/489093953/files/doc_financials/2020/q3/Q3-2020-
Earnings-Call_2020-10-14_Transcript.pdf, accessed October 19, 2020.
8. Tempur Sealy, “Tempur Sealy Reports Second Quarter 2020 Results,” http://investor.tempursealy.com/news-
releases/news-release-details/tempur-sealy-reports-second-quarter-2020-results, accessed October 19, 2020.
9. Tempur Sealy, “Tempur Sealy Provides Update of Improved Business Trends,” http://investor.tempursealy.com/news-
releases/news-release-details/tempur-sealy-provides-update-improved-business-trends, accessed October 20, 2020.
10. Scotts Miracle-Gro Company, “FQ# 2020 Earnings Call Transcripts,” https://scottsmiraclegro.gcs-web.com/static-
files/b73f181c-2a62-4003-b4c6-97771d1e0235, accessed October 17, 2020.
11. HNI Corporation Announces Agreement to Acquire Design Public Group,”
https://www.businesswire.com/news/home/20201201006024/en/HNI-Corporation-Announces-Agreement-to-Acquire-
Design-Public-Group, accessed December 4, 2020.
12. UBS, “Bed Bath & Beyond,” https://www.ubs.com/global/en/our-firm/what-we-do/research.html, accessed October 20,
2020.
13. Home Textiles Today, “Bed Bath & Beyond sells Christmas Tree Shops and hospitality operation,”
https://www.hometextilestoday.com/financial/bed-bath-beyond-sells-christmas-tree-shops-and-hospitality-operation/,
accessed October 19, 2020.
14. Cision, “Brand Velocity Partners Acquires BBQGuys, the Leading E-Commerce Platform Dedicated to Outfitting Outdoor
Living Spaces for Everything BBQ And Beyond,” https://www.prnewswire.com/news-releases/brand-velocity-partners-
acquires-bbqguys-the-leading-e-commerce-platform-dedicated-to-outfitting-outdoor-living-spaces-for-everything-
bbq-and-beyond-301138836.html, accessed October 18, 2020.
Disclosure: This report is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and acquisi-
tion activity. Information contained in this report should not be construed as a recommendation to sell or buy any security. Any reference to or omission of
any reference to any company in this report should not be construed as a recommendation to buy, sell or take any other action with respect to any security of
any such company. We are not soliciting any action with respect to any security or company based on this report. The report is published solely for the
general information of clients and friends of Capstone Headwaters. It does not take into account the particular investment objectives, financial situation or
needs of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all
investors. This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied
upon as such. Prediction of future events is inherently subject to both known and unknown risks and other factors that may cause actual results to vary
materially. We are under no obligation to update the information contained in this report. Opinions expressed are our present opinions only and are subject
to change without notice. Additional information is available upon request. The companies mentioned in this report may be clients of Capstone Headwaters.
The decisions to include any company in this report is unrelated in all respects to any service that Capstone Headwaters may provide to such company. This
report may not be copied or reproduced in any form, or redistributed without the prior written consent of Capstone Headwaters. The information contained
herein should not be construed as legal advice.
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firm has a rich 18+ year history of achieving extraordinary results for middle market entrepreneurs, business owners,
investors, and creditors. The firm offers a fully integrated suite of corporate finance services, including merger & acquisition,
debt & equity placement, ESOP advisory, corporate restructuring, valuation & fairness opinion, and financial advisory
services.
Headquartered in Boston, Capstone Headwaters has over 170 professionals across 17 offices in the U.S. with 16 dedicated
industry groups. Capstone has been recognized consistently as one of the top investment banks to work for and “U.S. Middle
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