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Merger and Acquisition Activity Commodity Review Stock Price Performance and Public Market Variations Comparable Company Analysis
Q4 2009
Contact
H. Glen Clarke Managing Director +1 312 697 4680 glen.clarke@duffandphelps.com
Growth in nominal GDP is expected to be 3.1% driven by the depletion in consumer goods inventories, increased automotive sales, and the strengthening of consumer confidence. The national unemployment rate is expected to increase from 9.3% to an average of 10.3% in 2010 as employers remain cautious to increase workforces. The tight employment market and limited wage increases will result in slight increases in disposable personal income, from an estimated 1.4% growth in 2009 to 2.8% growth in 2010. Although the strength of the dollar against foreign currencies improved during the first half of 2009, the dollar exhibited weakness later in the year, and S&P expects the weakness to continue into 2010.
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2006 1.7% 1.8% 0.8% -0.6% 4.8% 2.0% 3.8% 0.2% 1.4% 3.1% 2.4%
2007 4.2% 4.4% 3.8% 7.4% 3.8% 4.1% 3.1% 2.9% 1.8% 3.6% 4.0%
2008 6.4% 10.2% 4.2% 8.0% 6.2% 4.3% 5.5% 13.8% 5.2% 4.4% 5.5%
1.9% 1.5% 2.4% 1.2% 3.7% 2.9% 1.2% -0.1% 1.6% 3.1% 2.4%
-7.0% to -6.0% 2.5% to 3.5% -2.5% to -1.5% 3.0% to 4.0% 2.0% to 3.%0 5.0% to 6.0% 2.5% to 3.5% 4.0% to 5.0% 2.5% to 3.5% 3.5% to 4.5% 4.0% to 5.0% 2.5% to 3.5%
Despite the consumers short term demand for value products, sales of healthy, organic, locally-grown, and ethnic foods will continue to grow moderately.
An increasingly aged and health-conscious U.S. population continues to demand natural and organic foods
that offer health-enhancing and functional benefits, but premium pricing of these products has resulted in diminished short-term sales. Environmental concerns have caused consumers to demand sustainable, locally-grown food products. The changing demographics will generate demand for ethnic foods.
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$35 $30
2003
2004
2005
2006
2007
2008
2009
Although deal activity within this sector has been limited, large (over $1 billion) deals were completed in 2009. These deals are noteworthy for the existence of cross border activity, as three of the five deals involved a foreign buyer or seller. Deals over $1 billion occurring in 2009 include K+S Aktiengesellschafts acquisition of Morton International from Rohm and Haas for $1.7 billion; Viterras acquisition of ABB Grain for $1.7 billion; PepsiCos acquisition of Pepsi Bottling Group and PepsiAmericas for $7.8 billion; JBS USAs acquisition of Pilgrims Pride out of bankruptcy for $2.9 billion; and Pinnacle Foods acquisition of Birds Eye foods for $1.5 billion, prior to Birds Eyes initial public offering. In addition, in mid-January 2010, Kraft Foods agreed to acquire Cadbury, a British confectionary producer, for $22.3 billion.
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No particular subsector of the food and agribusiness industries dominated M&A activity during 2009. Domestic Food and Agribusiness M&A Volume by Subsector
Seed Protein Processed Foods Other Beverages Other Agriculture Dairy Baked Goods / Snack Foods Alcoholic Beverages
Source: Capital IQ
2009 2008
10
50
60
M&A Outlook
Industry analysts expect M&A to be a key vehicle in driving growth for food and agribusiness companies. Deutsche Bank believes that boards and management of mature food and agribusiness companies are placing greater focus on long-term growth drivers including scale, productivity, and threat of increased retailer power, and M&A is viewed as an easier way to alleviate these concerns. Acquisitions also allow companies to enter new geographic markets and expand product offerings. According to Deutsche Bank, the continued tightness in the credit markets is expected to hold valuations below historical levels, providing companies with strong balance sheets and free cash flow with a prime acquisition market. According to a February 5, 2010 article in The Daily Deal, studies by Robert W. Baird & Co., William Blair & Co. LLC and Madison Williams & Co. LLC conclude that middle market M&A will rebound in 2010 due to large cash positions held by strategics, revived interest from private equity groups, and recovering equity and debt markets. Robert W. Baird notes, these factors, particularly the rapidly improving credit markets and an increase in CEO confidence, could be the catalysts needed for a robust M&A environment that could resemble 2004the last time the U.S. economy came out of a recession.
Notable Deal of the Fourth Quarter 2009: Nestl S.A. acquires Vitality Foodservice, Inc.
In December 2009, a subsidiary of Nestle S.A., which produces branded hot and cold non-carbonated beverage solutions for the foodservice channel, completed the acquisition of Vitality Foodservice, Inc. (Vitality) from private equity firms MVC Capital, Inc. and Goldner Hawn Johnson & Morrison, Inc., for approximately $210 million in cash. Vitality Foodservice offers coffees, teas, juices, and other non-carbonated, non-alcoholic beverages, and related dispensing equipment to the restaurant, lodging, cruise line, healthcare, travel and leisure, military and corrections, education and gaming industries in the United States, Canada, Europe, Asia, and the Caribbean. The acquisition allows Nestl Professional, the subsidiary, to expand its product offering and customer base within the foodservice industry and become the recognized leader in branded hot and cold non-carbonated beverage solutions in North America. Vitality was acquired by a group of private equity firms in 2004. Vitality generated approximately $220 million in revenues during the latest twelve month period ended November 2009, implying a 0.9x revenue multiple.
6 | Food and Agribusiness Industry Insights Q4 2009
Select Domestic Mergers and Acquisitions, October 1, 2009 through December 31, 2009
Announced Date
12/31/09 12/23/09 12/21/09 12/21/09 12/20/09 12/17/09 12/16/09 12/14/09 12/11/09 12/11/09 12/8/09 12/3/09 12/3/09 12/2/09 11/30/09 11/30/09 11/27/09 11/25/09 11/24/09 11/23/09 11/23/09 11/20/09 11/20/09 11/19/09 Source: Capital IQ
Seller (Target)
Maui Land & Pineapple Co. Inc. (Haliimaile Pineapple Co.) HJ Heinz Co. (Appetizers And, Inc.) Jones Soda Co. (NasdaqCM:JSDA) Angostura International Ltd. HM Capital Partners LLC (Sturm Foods, Inc.) CapitalSouth Partners, Harbert Mezzanine Partners, and Azalea Capital (Spartan Foods Of America, Inc.) Authentic Mexican, Inc. U.S. Mills, Inc. (Uncle Sam and Erewhon Cereal brands) Yorktown Bakery LLC U.S. Mills, Inc. (Farina Mills brand assets) Parent Seed Farms Ltd. Green Meadows Foods, LLC Whitaker Foods, Inc. Castle Brands, Inc. (Sam Houston brand) Otter Creek Brewing, Inc. C.J. Foods, Inc. Cains Foods (Westminster Cracker Company, Inc.) XT-2000, Inc. And Xtermite, Inc. Thompsons Limited (Hyland Seeds) HydraLogic Systems, Inc. Arthurs Fresh Company Ltd. MGP Ingredients, Inc. (Illinois Corn Processing, LLC) Birchmere Capital Management LLC (Penn Brewery) Diedrich Coffee, Inc.
Subsector
Processed Foods Processed Foods Other Beverages Processed Foods Processed Foods Processed Foods Processed Foods Processed Foods Baked Goods / Snack Foods Processed Foods Seed Dairy Processed Foods Alcoholic Beverages Alcoholic Beverages Processed Foods Baked Goods / Snack Foods Other Agriculture Seed Other Agriculture Other Beverages Alcoholic Beverages Alcoholic Beverages Other Beverages
Parent
Investor group Brazos Private Equity (Golden County Foods, Inc.) Big Red, Inc. Mizkan Americas, Inc. Treehouse Foods, Inc. Linsalata Capital Partners M&S Fine Foods, Inc. Attune Foods, Inc. David's Cookies, Inc. Malt-O-Meal Company Alliance Grain Traders, Inc. Agropur Cooperative (Trega Foods Ltd.) Advance Food Company, Inc. Western Spirits Beverage Company, LLC Long Trail Brewing Company Trinity Hunt Partners LaSalle Capital Group, L.P. Organic Products International Corp. Dow Agro Sciences Canada. Inc. Equity Capital Management plc
Rationale
Private equity Product line diversification Consolidation Product line diversification Consolidation Private equity Product line diversification Product line diversification Consolidation Consolidation Product line diversification Consolidation Product line diversification Consolidation Consolidation Private equity Private equity Consolidation Consolidation Private equity
($US million)
Enterprise Value
NA NA 2.2 2.7 660.0 NA NA NA NA NA 9.4 NA NA NA NA NA NA NA NA 5.0 NA 30.0 NA 224.5
H.J. Heinz Company of Canada Ltd. Product line diversification SEACOR Energy, Inc. Investor group Green Mountain Coffee Roasters, Inc. Product line diversification Private equity Consolidation
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Select Domestic Mergers and Acquisitions, October 1, 2009 through December 31, 2009
Announced Date
11/19/09 11/18/09 11/16/09 11/13/09 11/12/09 11/11/09 11/9/09 11/5/09 11/4/09 11/2/09 10/31/09 10/31/09 10/26/09 10/26/09 10/19/09 10/19/09 10/18/09 10/15/09 10/14/09 10/8/09 10/5/09 10/5/09 Source: Capital IQ
Seller (Target)
Goldner Hawn Johnson & Morrison and MVC Capital (Vitality Foodservice, Inc.) Vestar Capital Partners (Birds Eye Foods, Inc.) Source Verified Foods, LLC (Vande Rose Farms, LLC) Sun Capital Partners (Timothys Coffees of the World, Inc.) Kraft Foods, Inc. (Balance Bar Company) GE Capital Corp. (Farmland Dairies, LLC / New Jersey facility) ERTH Solutions, Inc. United Liquor Alliance, Inc. A. Duda & Sons, Inc. / Juice business Cohutta Water, Inc. Sapphire Wines LLC Sweet Indulgence Bakery The Tanglefoot Company Rocky Roaster, LLC Leo's Foods, Inc. Cape Cod Aquaculture Corp. Andrew Peller Ltd. (Granville Island Brewing Company Ltd.) Meridian LLC Shot Spirits Corporation Monterey Gourmet Foods, Inc. CHAMP Private Equity and Castle Harlan, Inc. (United Malt Holdings, LP) Superior Quality Foods, Inc.
Subsector
Other Beverages Processed Foods Protein Other Beverages Baked Goods / Snack Foods Dairy Other Agriculture Alcoholic Beverages Other Beverages Other Beverages Alcoholic Beverages Baked Goods / Snack Foods Other Agriculture Other Beverages Baked Goods / Snack Foods Protein Alcoholic Beverages Other Beverages Alcoholic Beverages Processed Foods Alcoholic Beverages Protein
Parent
Nestle S.A. (Nestle Professional) The Blackstone Group (Pinnacle Foods Finance LLC) Tigerhawk Proteins, LLC Green Mountain Coffee Roasters, Inc. Brynwood Partners Grupo Lala, S.A. De C.V. Outlook Resources, Inc. RMD Entertainment Group Peace River Citrus Products, Inc. Crystal Springs Water Co. Saint James Company Management group Contech Enterprises, Inc. The Supreme Bean, Inc. Flowers Foods, Inc. Management group Creemore Springs Brewery Limited The Hain Celestial Group, Inc. Green Bridge Industries, Inc. Pulmuone Holdings Co., Ltd. (Pulmuone U.S.A., Inc.) GrainCorp. Ltd. Southeastern Mills, Inc.
Rationale
Consolidation Consolidation Consolidation Consolidation Private equity Globalization Product line diversification Consolidation Consolidation Consolidation Consolidation Private equity Consolidation Consolidation Product line diversification Private equity Consolidation Consolidation Product line diversification Product line diversification Consolidation Product line diversification
($US million)
Enterprise Value
208.0 1,434.1 NA 157.0 NA NA 1.4 NA NA NA 12.0 NA NA NA NA NA NA NA NA 42.0 662.6 NA
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Commodity Review
Volatile commodity markets persisted throughout 2009 as manufacturers balanced increased ingredient costs, reduced sales volumes, and product pricing. Corn, wheat, and soybeans experienced tremendous volatility during the fourth quarter following a cold and rainy fall. As a result, a larger proportion of crops remain in the field and will not be harvested until the spring.
$/Bushel
$9.22
$4.34 $3.42
Aug-06
Mar-07 Corn
Oct-07
Dec-08
Jul-09
Mar-10
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Commodity Review
Orange Juice
Orange juice futures prices began 2009 at an average price of $0.76/pound in January and finished the year at $1.32/pound in December. Prices further increased in January 2010 following unseasonably cold weather in Florida, the worlds second largest producer other than Brazil. Freezing temperatures reduced an orange harvest already predicted to be the lowest in the past three years due to inclement historical weather which depleted crops. $2.5 $2.0 $/ Pound $1.5 $1.0 $0.5 $0.0
Jan-06
Source: Bloomberg
$1.50
Aug-06
Mar-07
Oct-07
Dec-08
Jul-09
Mar-10
Natural Gas
Natural gas prices ranged from $2.32 to $6.01 during the fourth quarter of 2009. Prices fluctuated significantly throughout 2009, but finished the year only slightly higher from an average of $5.23 in January 2009 to $5.34 in December 2009. Prices increased during December 2009 following colder-than-expected weather conditions that resulted in increased natural gas consumption to heat homes and businesses. The cost of natural gas is not expected to rise substantially during 2010, due to high inventory levels, continued domestic natural gas production, and modest levels of consumption. $14 $12 Henry Hub $/MMB tu $10 $8 $6 $4 $2 $0
Jan-06
Source: Bloomberg
$4.55
Aug-06
Mar-07
Oct-07
Dec-08
Jul-09
Mar-10
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Enterprise value to EBITDA multiples for the D&P Beverage Composite have historically traded above the broader D&P Food Composite. The Beverage Composite EBITDA multiples hit a low of 8.4x during Q4 2008 but have since increased to 10.6x during Q4 2009. The D&P Food Composite hit a low of 7.9x during Q4 2008 but experienced a rebound in its multiple hitting 9.1x during Q4 2009. D&P Food Composite and Beverage Composite Multiples, Quarterly EV/EBITDA Multiples from Q1 2007 Q4 2009
13.0x
Historical EV/EBITDA Multiple Average 9.4x
11.0x
10.6x
9.0x
9.1x
7.0x Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09
D&P Food Composite D&P Beverage Composite Historical Average
The D&P Food Composite is comprised of the Agribusiness and Food companies listed in the Comparable Analysis chart on the following pages. The D&P Beverage Composite is comprised of the Beverage companies listed in the chart.
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MULTIPLES ENTERPRISE VALUE/ REVENUE EBITDA (4) 1.26x 1.62x NM NM 3.00x 1.62x 1.96x 3.82x 1.09x 2.56x 2.56x 2.49x 0.26x 0.42x 0.32x 0.82x 0.39x 0.75x 0.65x 0.42x 0.51x 12.2x 5.0x NM NM 12.0x 12.0x 9.8x 11.9x 13.7x 12.2x 12.2x 12.6x NM 10.6x NM 7.4x 7.7x NM 13.3x 9.1x 9.7x TOTAL DEBT/ EBITDA 1.9x 0.0x 1.4x 3.5x 1.5x 1.5x 1.7x 0.6x 4.8x 1.5x 1.5x 2.3x NM 3.2x NM 1.3x 2.0x NM 4.9x 2.6x 2.9x
OPERATING STATISTICS TTM REVENUE GROWTH (5) -9.0% -33.5% -52.6% -59.3% -45.3% -45.3% -39.9% -10.0% 7.4% -5.4% -5.4% -2.7% -13.3% -20.6% -20.3% -6.9% -8.7% 28.8% -2.1% -8.7% -6.2% TTM MARGINS GROSS EBITDA 21.3% 32.2% 15.1% 28.1% 24.4% 24.4% 24.2% 55.7% 21.4% 49.0% 49.0% 42.0% 8.4% 4.9% 2.9% 14.2% 20.9% 6.7% 12.8% 8.4% 10.1% 10.3% NM NM 31.4% 25.0% 25.0% 22.2% 32.1% 8.0% 21.0% 21.0% 20.4% 3.0% 3.9% 0.8% 11.1% 5.1% NM 4.9% 4.4% 4.8%
COMPANY NAME Fertilizer Agrium Inc. CF Industries Holdings, Inc. Mosaic Co. Potash Corp. of Saskatchewan, Inc. Terra Industries Inc. Median Mean Seed Monsanto Co. Nufarm Ltd. Syngenta AG Median Mean Other Agribusiness The Andersons, Inc. Archer-Daniels-Midland Co. Bunge Ltd. Corn Products International Inc. Nutreco Holding NV Penford Corp. Viterra, Inc. Median Mean
$10,720.9 $5,088.1 $27,422.0 $34,587.3 $4,548.8 $10,720.9 $16,473.4 $39,561.4 $1,787.5 $26,221.2 $26,221.2 $22,523.4 $613.1 $19,676.1 $9,101.6 $2,611.1 $2,100.7 $127.6 $3,652.0 $2,611.1 $5,411.7
$11,504.7 $4,226.7 $26,207.0 $38,250.0 $4,744.8 $11,504.7 $16,986.6 $41,152.4 $2,639.8 $28,148.8 $28,148.8 $23,980.3 $775.1 $25,937.1 $13,219.6 $3,003.1 $2,418.6 $197.4 $4,198.6 $3,003.1 $7,107.1
FOOD
Protein High Liner Foods Inc. Industrias Bachoco S.A.B. de C.V. JBS S.A. Maple Leaf Foods Inc. Sanderson Farms Inc. Seaboard Corp. Smithfield Foods Inc. Tyson Foods Inc. Median Mean $10.22 $19.86 $5.34 $10.41 $50.13 $1,392.00 $19.09 $17.24 99.2% 81.4% 86.0% 88.7% 94.9% 88.9% 96.1% 98.0% 91.9% 91.7% $176.2 $993.0 $7,466.7 $1,424.0 $1,021.5 $1,720.5 $3,165.8 $6,492.5 $1,572.3 $2,807.5 $253.9 $879.0 $9,625.5 $2,491.2 $1,124.8 $1,433.4 $5,776.6 $8,640.5 $1,962.3 $3,778.1 0.42x 0.48x 0.47x 0.49x 0.62x 0.38x 0.50x 0.32x 0.47x 0.46x 5.9x 5.4x 12.9x 7.4x 5.3x 10.1x NM 6.3x 6.3x 7.6x 1.8x 0.5x 4.4x 3.0x 0.5x 1.1x NM 2.5x 1.8x 2.0x 1.8% 15.6% 33.5% -0.4% 4.0% -6.9% -5.5% -0.3% 0.7% 5.2% 16.3% 16.9% 8.8% 14.1% 13.0% 6.2% 4.5% 6.4% 10.9% 10.8% 7.1% 8.9% 3.6% 6.6% 11.7% 3.7% 0.7% 5.1% 5.9% 5.9%
(1) As of 3-7-10 (2) Market Capitalization is the aggregate of a firms outstanding common stock. (3) Enterprise value is the total value of a firm (including all debt and equity). (4) Earnings before interest, taxes, depreciation and amortization (5) Trailing Twelve Months Source: Capital IQ.
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FOOD, contd
RECENT STOCK PRICE(1) $5.52 $16.00 $60.19 $3.68 $29.29 % OF 52W HIGH 85.5% 72.4% 99.9% 90.6% 96.8% 90.6% 89.0% $14.54 $34.39 $25.29 $13.96 $12.03 $20.16 $72.69 $16.97 $41.45 $46.40 $41.84 $59.66 $52.93 $29.34 $38.00 $49.25 $68.23 $13.95 $28.17 $44.52 $30.25 98.3% 96.1% 100.0% 99.8% 93.5% 81.4% 99.2% 85.3% 98.1% 99.9% 98.0% 94.7% 95.5% 97.5% 100.0% 97.1% 99.3% 99.4% 100.0% 98.9% 98.6% 98.3% 96.7% $37.80 $40.18 $25.72 $66.07 $7.87 $42.49 $21.57 $7.05 70.0% 99.8% 96.4% 92.0% 97.7% 94.9% 76.3% 89.2% 93.5% 89.6%
MARKET CAP(2) (MM) ENTERPRISE VALUE (3) (MM)
MULTIPLES ENTERPRISE VALUE/ REVENUE EBITDA (4) 0.54x 0.64x 2.28x 0.65x 1.14x 0.65x 1.05x 0.96x 1.89x 1.13x 1.16x 0.47x 0.46x 2.03x 0.89x 1.56x 1.82x 0.84x 1.71x 1.96x 1.49x 1.86x 2.12x 1.28x 0.85x 3.19x 1.28x 1.74x 1.49x 1.46x 0.90x 1.39x 1.00x 0.39x 1.29x 1.05x 0.87x 0.87x 0.95x 0.97x 6.1x 10.3x 11.2x 8.3x 10.2x 10.2x 9.2x 9.0x 8.5x 8.5x 6.9x 7.9x 6.3x 9.0x 11.4x 7.9x 10.3x 7.8x 7.7x 9.8x 9.3x 10.3x 13.3x 8.0x 6.1x NA 11.3x 10.2x 8.7x 9.0x 8.5x 12.1x 9.1x 7.2x 9.5x 7.0x 8.5x 15.5x 8.8x 9.7x TOTAL DEBT/ EBITDA 2.9x 6.1x 0.0x 3.9x 0.8x 2.9x 2.7x 1.4x 1.6x 2.1x 2.5x 5.5x 1.2x 2.0x 3.0x 1.5x 2.6x 0.5x 0.9x 1.9x 2.9x 1.7x 1.5x 2.5x 1.6x 0.1x 2.4x 1.5x 1.7x 1.9x 2.8x 1.7x 0.9x 3.5x 2.3x 0.0x 1.2x NA 1.7x 1.8x
OPERATING STATISTICS TTM REVENUE GROWTH (5) 1.6% -10.4% -1.6% -8.9% 5.1% -1.6% -2.8% 12.4% -5.0% 2.1% 11.9% -8.9% -2.6% 2.7% -11.7% 3.2% 2.3% -3.7% NA -1.9% -3.7% 0.5% -2.4% 24.6% 2.2% 1.7% 0.7% -1.7% 0.6% 1.1% 20.7% 2.5% 7.7% -0.8% 41.5% 3.3% 7.7% 6.5% 7.1% 11.1% TTM MARGINS GROSS EBITDA 28.7% 27.9% 100.0% 16.2% 11.2% 27.9% 36.8% 23.4% 41.2% 25.0% 31.3% 11.2% 9.5% 40.8% 25.8% 38.9% 35.8% 17.4% 38.1% 43.7% 36.2% 41.7% 56.8% 27.7% 38.8% 35.2% 21.5% 100.0% 35.8% 35.2% 27.0% 25.2% 46.5% 24.6% 52.8% 32.4% 40.3% 34.1% 33.3% 35.4% 8.9% 6.2% 20.3% 7.8% 11.2% 8.9% 10.9% 10.7% 22.3% 13.3% 16.9% 6.0% 7.3% 22.5% 7.9% 19.6% 17.7% 10.7% 22.3% 20.1% 16.1% 18.1% 16.0% 16.0% 13.9% 18.8% 11.3% 17.0% 16.1% 15.5% 10.6% 11.5% 10.9% 5.4% 13.6% 15.0% 10.3% 5.6% 10.8% 10.4%
COMPANY NAME Dairy Dairy Crest Group plc Dean Foods Co. Danone Glanbia plc Saputo, Inc. Median Mean Diversified Foods Associated British Foods plc Campbell Soup Co. ConAgra Foods, Inc. Del Monte Foods Co. Dole Food Company Inc. Fresh Del Monte Produce Inc. General Mills Inc. The Hain Celestial Group, Inc. Hershey Co. HJ Heinz Co. Hormel Foods Corp. The J. M. Smucker Company Kellogg Co. Kraft Foods Inc. McCormick & Co. Inc. Nestl S.A. Ralcorp Holdings Inc. Sara Lee Corp. Tootsie Roll Industries Inc. Treehouse Foods Inc. Unilever plc Median Mean Baked Goods/Snack Foods ARYZTA AG Diamond Foods, Inc. Flowers Foods, Inc. George Weston Limited Grupo Bimbo SA de CV J&J Snack Foods Corp. Lance, Inc. Tasty Baking Co. Median Mean
$735.5 $2,900.8 $36,875.6 $1,077.5 $6,069.3 $2,900.8 $9,531.8 $11,456.3 $11,793.2 $11,213.7 $2,768.3 $1,051.7 $1,282.2 $23,954.0 $692.9 $6,931.0 $14,673.4 $5,591.8 $7,101.1 $20,143.3 $43,404.8 $5,017.5 $178,070.6 $3,735.3 $9,221.0 $1,653.1 $1,529.3 $85,325.6 $7,101.1 $21,267.1 $2,984.1 $668.2 $2,359.0 $8,528.0 $9,255.4 $781.5 $691.2 $60.4 $1,570.2 $3,166.0
$1,346.6 $7,097.4 $46,440.4 $1,833.3 $6,540.2 $6,540.2 $12,651.6 $13,461.6 $14,330.2 $14,234.4 $4,357.5 $3,265.0 $1,580.5 $30,040.1 $901.2 $8,259.3 $18,994.3 $5,492.7 $7,885.6 $24,692.3 $60,236.8 $5,952.1 $198,973.7 $5,014.3 $10,729.0 $1,611.1 $1,927.4 $94,500.7 $8,259.3 $25,068.6 $3,946.9 $772.9 $2,591.7 $12,142.8 $11,824.6 $693.2 $802.3 $156.9 $1,697.0 $4,116.4
(1) As of 3-7-10 (2) Market Capitalization is the aggregate of a firms outstanding common stock. (3) Enterprise value is the total value of a firm (including all debt and equity). (4) Earnings before interest, taxes, depreciation and amortization (5) Trailing Twelve Months Source: Capital IQ.
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BEVERAGE
RECENT STOCK PRICE(1) $49.51 $55.51 $15.81 $16.39 $46.42 $42.81 % OF 52W HIGH 95.5% 99.9% 90.0% 99.4% 99.3% 83.4% 97.4% 94.6% $54.70 $6.98 $41.41 $11.65 $64.37 92.0% 71.7% 94.1% 80.3% 99.8% 92.0% 87.6%
MARKET CAP(2) (MM) ENTERPRISE VALUE (3) (MM)
MULTIPLES ENTERPRISE VALUE/ REVENUE EBITDA (4) 3.81x 3.74x 2.24x 3.70x 1.79x 2.95x 3.32x 3.04x 4.17x 0.52x 2.89x 0.72x 2.44x 2.44x 2.15x 11.4x 11.7x 11.6x 12.4x 11.3x 15.1x 11.6x 12.2x 13.2x 4.8x 9.6x 7.5x 11.0x 9.6x 9.2x TOTAL DEBT/ EBITDA 5.2x 1.3x 6.3x 3.2x 4.5x 2.9x 3.9x 3.9x 1.2x 1.6x 0.0x 0.0x 0.8x 0.8x 0.7x
OPERATING STATISTICS TTM REVENUE GROWTH (5) 59.4% -8.8% -10.8% 6.5% -12.7% -36.5% -9.8% -0.5% -3.0% -3.1% 10.6% 3.9% 0.0% 0.0% 1.7% TTM MARGINS GROSS EBITDA 52.8% 64.7% 34.2% 57.8% 43.3% 43.1% 48.0% 49.3% 64.2% 15.6% 53.6% 30.9% 53.5% 53.5% 43.6% 33.5% 32.0% 19.3% 29.9% 15.9% 19.5% 24.7% 25.0% 31.6% 10.8% 30.0% 9.7% 22.2% 22.2% 20.8%
COMPANY NAME Alcoholic Anheuser-Busch InBev Brown-Forman Corporation Constellation Brands Inc. Diageo plc Fortune Brands Inc. Molson Coors Brewing Company Median Mean Other Beverage The Coca-Cola Company Cott Corporation Hansen Natural Corporation National Beverage Corp. Pepsico, Inc. Median Mean
$78,762.4 $8,306.5 $3,509.4 $40,666.2 $7,054.8 $7,952.0 $8,129.2 $24,375.2 $126,090.3 $567.3 $3,650.7 $537.1 $101,054.5 $3,650.7 $46,380.0
$130,707.7 $8,980.4 $7,581.3 $52,969.1 $11,120.7 $8,937.7 $10,050.5 $36,716.1 $129,283.3 $828.7 $3,304.1 $426.9 $105,317.5 $3,304.1 $47,832.1
(1) As of 3-7-10 (2) Market Capitalization is the aggregate of a firms outstanding common stock. (3) Enterprise value is the total value of a firm (including all debt and equity). (4) Earnings before interest, taxes, depreciation and amortization (5) Trailing Twelve Months Source: Capital IQ.
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Served as independent financial advisor to the Board of Directors of Pacific Coast Producers
has been acquired by has been acquired by Olam International Limited Served as exclusive financial advisor to the Chapter 11 Trustee of SK Foods, LP has completed the spin-off of Kraft Served as a financial advisor to Altria Group Inc. with respect to the transaction Acted as financial advisor to the Shareholders Council of the Fonterra Co-Operative Group Limited Bolthouse Farms Acted as exclusive financial advisor to Mercer Ranches, Inc. and initiated structured and negotiated this transaction
a portfolio company Vestar Capital Partners has completed a recapitalization transaction. Acted as financial advisor to the Board of Directors of Birds Eye Foods, Inc. and issued a solvency opinion on the transaction
has completed the sale of its private label soup, infant feeding and food service group businesses to TreeHouse Served as an independent financial advisor and rendered a fairness opinion to the Board of Directors of Del Monte Foods Company D&P Subsidiary Chanin Capital Partners rendered a fairness opinion to its creditors on the restructuring
Initiated the transaction, assisted in the negotiations, and served as financial advisor to Humboldt Creamery, LLC
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