Equity LTM LTM Sales EDIDA Spyder

Value Debt EV Sales EBIDA Multipe Multiple Sales

Adidas-Salomon AG 4302 1459 5761 6221 586 0.93 9.83 61.37

Columbia Sportswear Co 2239 20 2259 990 220 2.28 10.27 61.37

K2 Inc 559 209 768 839 63 0.92 12.19 61.37

Nike Inc 20558 866 21424 11751 1736 1.82 12.34 61.37

Quiksilver Inc 1217 138 1355 1039 130 1.30 10.42 61.37

Skis Rossignol SA 174 118 292 479 25 0.61 11.68 61.37

VF Corp 5113 994 6107 5390 725 1.13 8.42 61.37

Spyder
EBIDA EV 2004 EV 2004

9.58 56.83 94.18

9.58 140.04 98.37

9.58 56.18 116.78

9.58 111.89 118.23

9.58 80.03 99.85

9.58 37.41 111.89

9.58 69.53 80.70

Strategic Acquirors
Sales EDIDA Spyder Spyder
Multipe Multiple Sales EBIDA
VF Corp. The North Face Inc. 129 0.5 -2.9 61.37 9.58
Adidas-Salomon AG ArcTeryx Inc. 21 1.1 15.5 61.37 9.58
Deckers Outdoor Corp. Teva Sandals 62 1.1 10.3 61.37 9.58
Columbia Sportswear Co. Mountain Hardwear Inc. 36 1.2 11.1 61.37 9.58
VF Corp. Nautica Enterprises Inc. 600 0.9 9.1 61.37 9.58
Nike Inc. Converse Inc. 335 1.6 9.4 61.37 9.58
11.08
Financial Acquirors

Investcorp Intl Inc. Helly Hansen ASA 160 1.1 8.9 61.37 9.58
Bain Capital Inc. Jack Wolfskin GmbH 63 1.2 9.3 61.37 9.58
Cerberus Partners LP Fila Holding SpA 586 0.6 13.3 61.37 9.58
Bear Stearns Camelbak Inc 209 2.8 8.2 61.37 9.58
9.93

Synergy Premium 11.6%

EV 2004 EV 2005

148.5
98.7
106.3
87.2
90.1
106.15

85.3
89.1
127.4
78.6
95.08
 2005 2006 2007 2008 Terminal
Op Income Before Dep 13988 16983 21777 27895
Dep 1078 2097 3260 3098
12910 14886 18517 24797
Tax rate 0.201 0.215 0.223 0.239
Taxes 2593.7 3197.9 4122.9 5937.9
EBIAT 10316.3 11688.1 14394.1 18859.1
Dep 1078 2097 3260 3098
Capex 2619 3000 3500 4250
Net WC investment 1590 929 1292 1459
Free Cash Flow 7185.3 9856.1 12862.1 16248.1 159386.1
Year 1 2 3 4 4
0.135 0.135 0.135 0.135 0.135
PV 6330.62 7650.92 8796.81 9790.82 96043.30
EV 128612.48
Growth 3%
Discount 13.50%
On 31/3/2004 RFR 0.0477
Market Premium 0.05
Beta D/V Asset Beta WACC
Adidas-Salomon AG 0.81 0.39 0.49 7.24
Columbia Sportswear Co 1.48 0.06 1.39 11.73
K2 Inc 1.36 0.41 0.80 8.78
Nike Inc 0.7 0.08 0.64 7.99
Quiksilver Inc 1.01 0.17 0.84 8.96
Skis Rossignol SA 0.55 0.44 0.31 6.31
VF Corp 0.59 0.2 0.47 7.13
Average 0.93 0.25 0.71 8.31
Premium for small & unlisted 5.24
DF for Spyder 13.55
 Sell Controlling Block to
1 Strategic Buyer

Sell Controlling Block to

2 financial buyers

Sell Minority Interest

(CHBs) to financial
3 buyers
DCF Trading Multiples Trasanction Multiples

Discount for Lack of Discount for Lack Multiples paid by strategic

Marketability of Marketability majority buyers of private targets

Multiples paid by strategic

majority buyers of public targets
- Discount

Discount for Lack of Discount for Lack Multiples paid by financial

Marketability of Marketability majority buyers, or
Multiples paid by financial
minority buyers + Control

Discount for Lack of Discount for Lack

Marketability of Marketability
Minority Discount