Danier Leather Inc DLTOF

RE:DL is a bargain

[trader35]

For Sale:

Leading Leather Apparel Retailer Location: Canada -> Ontario -> Toronto Industry: Retail > Clothing and Footwear Retail

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Business Summary

Founded in the early 1970s, Company is one of the largest publicly traded specialty apparel leather retailers in the world. As a vertically integrated designer, manufacturer, and retailer, Company is able to offer its customers high-quality, fashionable leather clothing and accessories at exceptional value. Company's products are sold exclusively at its 90 shopping mall, street-front and large format outlet locations.

Headquartered in Toronto, Canada, the unique combination of manufacturing expertise, exceptional design and rigorous quality control allows it to produce leather and suede garments and accessories that are as affordable as they are fashionable.

The Company's products include:
- Clothing for Men and Women: Coats, jackets, dresses, skirts, pants, tops, vests and care Products.
- Handbags: All types of bags for both genders.
- Accessories: Hats, Wallets, gloves, scarves, belts, travel products, phone covers, etc.

PRELIMINARY VALUATION
- P/BK = 3, Book Value = $48.4mn => Value = $145mn
- P/S = 0.75, Sales = $142mn => Value = $106mn

There are around 2.6mn share outstanding, resulting with a total market cap of around $20mn, which makes the business highly undervalued.

In this transaction, we are collaborating with our local Canadian affiliates to provide buy-side advisory. We have spoken with the Seller's management and have received preliminary confirmation of their intention to sell, upon locating a serious buyer.

Financials

Asking Price Range: > $35.0M
Gross Revenues: $140,000,000
Cash Flow: $10,000,000
Cash Flow Type: Sellers Discretionary Cash
Seller Financing: Not Disclosed

About The Business

Year Established: 1972
Number of Employees: > 200
Relocatable: No
Franchise: No
Current Real Estate: Owned