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PDF - William Blair
February 2016
Investment Banking
Food and Beverage Industry Sees
Robust M&A Activity and Strong
Equity Returns in 2015
Food for Thought
In This Report
Strategic acquirers continue to
dominate M&A landscape
Better-for-you and private label
continue as major M&A drivers
Trends to watch in 2016
2015 stats on M&A transactions
and public equity performance
CONTENTS
1
Executive Summary
5
William Blair Food and Beverage Investment Banking
3
6
Market Update and Analysis
Sector and Transaction Data
EXECUTIVE SUMMARY
Food and Beverage Industry Sees Robust
M&A Activity and Strong Equity Returns in 2015
Growth of natural, organic,
and healthier products
and attractiveness of
private-label brands were
major drivers of dealmaking activity.
Across most industries, 2015 was a
year of robust M&A activity and
lackluster equity returns. In terms of
M&A, the food and beverage industry
fit this pattern. From headlinegrabbing mega-mergers to smaller,
more targeted acquisitions, 2015 saw
a steady stream of acquisitions that
will continue to reshape the food and
beverage industry for years to come.
In terms of public equity performance,
however, the industry was a bit of a
welcome outlier in 2015, with most
food and beverage segments
significantly outperforming the
broader market.
In this issue of Food For Thought, we
examine the trends that shaped dealmaking activity in the food and
beverage industry in 2015 and analyze
equity performance in various
segments of the industry. We also
address some of the biggest questions
facing the industry in 2016.
Strategic Acquirers Continue to
Dominate M&A Landscape
M&A activity in the food and
beverage industry in 2015 continued
to be shaped overwhelmingly by
highly strategic acquisitions. From
2013 to 2015, strategic acquirers
have accounted for roughly 87%
1
of all completed food and
beverage acquisitions.
The rationales for these strategic
transactions ran the gamut in 2015. In
many instances, the acquirer was
looking to enter into a new category or
platform. This was the case with
Smucker’s $6 billion acquisition of Big
Heart Pet Brands in March, a
transaction for which William Blair
served as buy-side advisor. Last year
also saw many high-profile
consolidation and scale plays, such as
the Kraft-Heinz merger or the AB
InBev-SABMiller merger. Other times,
the transactions were driven by a
company’s focus on divesting noncore
assets or rationalizing its portfolio,
such as ConAgra Foods selling its
private-label business.
This robust demand from strategic
acquirers resulted in strong valuations
across the industry. For announced
food acquisitions, the average EBITDA
multiple increased from 13.0x in 2014
to 13.5x in 2015. In the beverage
industry, the average EBITDA
multiple increased from 11.8x in
2014 to 13.8x in 2015.
Public investors reacted relatively
enthusiastically to food and beverage
transactions in 2015. Across all
industries in 2015, the acquiring
company’s share price increased an
average of 1% on the day following a
deal announcement. In food and
beverage, however, the average dayafter jump was 2.2% Clearly, investors
continue to reward companies for
pursuing scale and inorganic growth
opportunities through M&A.
Food and Beverage M&A by Acquirer Type (2013-2015)
Over the past three years, M&A activity in the food and beverage industry has
been dominated by strategic acquirers. This trend continued in 2015 with a wave
of consolidation and divestitures, as well as acquisitions driven by the macro
trends of natural, organic, and healthier foods and private-label.
87%
Strategic
13%
Financial Sponsor
Source: Dealogic and William Blair as of December 31, 2015
EXECUTIVE SUMMARY
Better-For-You and Private-Label
Continue as Major M&A Drivers
SunOpta’s $450 million acquisition of
Sunrise Growers in October
represented two of the most powerful
trends shaping the food retail
industry: consumers’ growing demand
for organic, natural, and other
healthier foods and the continued
attractiveness of private-label brands.
William Blair served as sell-side
advisor to Sunrise Growers, which is
the leading processor of conventional
and organic frozen fruit in the United
States and serves retail private-label
and foodservice customers.
In our July issue of Food For Thought,
we discussed how large CPG
companies were increasingly using
M&A to add high-quality, healthoriented brands to their portfolios.
This trend continued throughout the
second half of 2015, headlined by
Pinnacle Foods’ $975 million
acquisition of Boulder Brands. William
Blair served as sell-side advisor to
Boulder Brands on the transaction,
which was announced in November.
Boulder Brands’ portfolio of healthfocused brands includes Glutino, Udi's
Gluten Free, Earth Balance, EVOL, and
Smart Balance. Other transactions
involving better-for-you brands in the
second half of 2015 include
WhiteWave’s acquisitions of Vega and
Wallaby Yogurt.
In the private-label space, Treehouse
Foods’ $2.7 billion acquisition of
ConAgra’s private-label business will
make Treehouse the largest producer
of store-branded grocery items. While
the growth of the private-label
industry has slowed somewhat as
economic conditions have improved
over the past several years, privatelabel still represents a vastly
important part of the CPG industry.
Private-label brands have shifted from
being a “cheap alternative” to being a
profit driver and point of
differentiation for retailers.
Food and Beverage
Equities Outperform
Concerns about China’s slowing
growth, depressed oil prices,
geopolitical unrest, and heightened
volatility were significant headwinds
to equity markets in 2015. For the
year, the S&P 500 was down 0.7%.
Amid this challenging environment,
the food and beverage industry
delivered relatively strong
performance for investors across most
segments. According to indices
created by FactSet, the food
production (+5.7%), food ingredients
(+12.6%), and beverage (+7.4%)
indices all significantly outperformed
the broader market and saw P/E
multiple expansion during the year.
The performance of the food retail
index (-0.7%), however, mirrored the
broader market.
continue to be a major driver of sales
growth and acquisitions for several
years to come. With private label,
there may be some slowdown in M&A
activity in 2016 as Treehouse and
other major consolidators focus on
absorbing their recent acquisitions.
To learn more about what these
trends in the food and beverage
industry mean for your company,
please do not hesitate to contact us.
Trends to Watch in 2016
Food retail will be one of the more
interesting segments to watch in 2016.
Over the past 24 months, there has
been a high degree of restructuring in
the form of mergers, divestitures, and
market rationalization. It will be
interesting to see how grocery chains
adapt their strategies in response to
this new landscape. We expect to see
continued market rationalization in
2016, as chains focus more on regional
density and look to exit markets
where they don’t have a No. 1 or No. 2
market position. In the natural and
organic segment, Whole Foods’ launch
of its 365 smaller-store concept will
be notable as they attempt to target
customers that frequent Sprouts
Farmers Market, The Fresh Market,
Natural Grocers, and Trader Joe’s.
Another segment worth watching in
2016 is foodservice. While the
segment has been challenged over the
past decade, lower gas prices could be
a catalyst for growth for restaurants.
In terms of the macro M&A trends
described above, we believe that
natural and healthier foods will
William Blair
2
MARKET UPDATE AND ANALYSIS
Public Equity Performance
Amid a challenging year for public equity markets, most segments of the food
and beverage industry delivered strong returns for investors. Food retail was the
only segment that did not outperform the S&P 500 in 2015.
Food Ingredients
12.6%
Beverage Production
7.4%
Food Production
Food Retail
Market Analysis
Each quarter we look behind
the numbers to examine the
market dynamics that are
driving trends in the dealmaking landscape in the
food and beverage industries.
S&P 500
(5.0%)
5.7%
(0.7%)
(0.7%)
0.0%
5.0%
10.0%
15.0%
Source: Indices are determined by FactSet Research Systems; data as of December 31, 2015
P/E Multiple Expansion Across Most Segments
Three of the four major segments in food and beverage saw their median
valuations increase during 2015.
30.0x
2014
2015
25.0x
25.0x
20.0x
22.5x
19.8x
17.8x
20.6x
18.4x
22.1x
17.0x
15.0x
10.0x
5.0x
0.0x
Food Production
Food Ingredients
Beverage
Production
Food Retail
Source: FactSet Research Systems, Bloomberg, and S&P Capital IQ; as of December 31, 2015
3
MARKET UPDATE AND ANALYSIS
Food Acquirers See Larger First-Day Bump in 2015
Across all industries over the past four years, public investors have been greeting news of acquisitions warmly, based
on stock performance the day after a deal was announced. In 2015, acquirers in the food industry saw a significantly
higher first-day bump than the broader market (+2.2%).
5%
4%
4%
4%
3%
3%
2%
2%
1%
1%
0%
(1%)
(0%) (0%)
(0%)
(0%)
(1%) (1%)
(1%) (1%)
(0%)
(2%)
(2%)
(3%)
(2%) (2%)
(2%)
(3%)
(3%)
(4%)
(2%)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Strategic Demand Provides Continued Support for Strong M&A Multiples (Average EV/EBITDA Multiples)
Strategic acquirers were extremely active in the food and beverage industry in 2015, whether looking to add scale
through consolidation and to add new on-trend, high-growth categories and platforms. This strategic demand
resulted in strong valuations across the industry.
Food
20.0x
Beverage
18.0x
16.0x
14.0x
12.0x
10.0x
8.0x
6.0x
4.0x
2.0x
0.0x
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
William Blair
4
WILLIAM BLAIR FOOD AND BEVERAGE INVESTMENT BANKING
Drawing on our deep sector expertise and the strength of
our relationships, William Blair has built a leading food
and beverage investment banking franchise. Business
owners turn to us for outstanding execution for their
M&A and capital-raising objectives.
Recent transactions include:
William Blair
Senior Investment
Banking Team
Food and Beverage
James Bertram
Group Head, Consumer & Retail
+1 312 364 5426
[email protected]
Brent Smith
Head of Consumer & Retail M&A
+1 312 364 5392
[email protected]
Food and Convenience Retail
Timothy Carroll
Managing Director
+1 312 364 8532
[email protected]
Michael Siska
Managing Director
+1 312 364 5393
[email protected]
Europe
Michael Collinson
Managing Director
+44 20 7868 4433
[email protected]
5
Food for Thought
Sector and
Transaction Data
SECTOR AND TRANSACTION DATA
Noteworthy M&A Activity – LTM
Food & Beverage Producer Transactions
($ in millions)
Date
Target (Unit Sold) /
Announced Target Business Description
12/07/15
11/24/15
11/16/15
11/11/15
11/02/15
10/28/15
10/14/15
10/07/15
10/07/15
10/02/15
09/30/15
09/15/15
09/03/15
08/28/15
08/07/15
07/31/15
07/01/15
06/22/15
Enterprise Value / LTM
Target Nation
Buyer
Keurig Green Mountain
Producer and seller of coffeemakers and
specialty coffee
United States
Acorn Holdings
$14,194.0
3.14x
13.3x
Ballast Point Brewing & Spirits
Producer of alcoholic beverages
United States
Pinnacle Foods
$975.0
1.90x
22.1x
United States
Constellation Brands
$1,000.0
8.70x
2.70x
-
12.5x
Treehouse Foods
$2,700.0
0.75x
-
$1,925.1
2.23x
17.9x
-
-
Boulder Brands
Provider of health and wellness food
solutions
MillerCoors
Producer, seller, and distributor of beers
United States
ConAgra Foods (Private-Label Business)
Manufacturer, distributor, and marketer of United States
private-label food products
Molson Coors Brewing
Company
$12,000.0
Diamond Foods
Processer and distributor of snack
products
United States
Snyder's-Lance
Guinness Anchor
Manufacturer of beer
United Kingdom
Malaysia
Treasury Wine Estates
$600.0
United Kingdom
Anheuser-Busch InBev
$117,405.8
Diageo (U.S. and U.K. Wine Operations)
Producer of wine
SABMiller
Producer of beer and soft-drinks
Iceland Foods
Provider of frozen foods
Marlow Foods
Producer of meat and meat products
Multi-Pro Enterprise Limited
Distributor of instant noodle products
United Kingdom
United Kingdom
Nigeria
General Mills (Green Giant and Le Sueur
Vegetable Businesses)
United States
Producer and seller of frozen and canned
vegetables
Olam International
Supplier of food ingredients such as coffee, Singapore
cocoa and cashew nuts
Heineken
Brait
Monde Nissin Corp.
Kellogg Company
B&G Foods
Mitsubishi Corp.
Sales
EBITDA
$997.3
2.48x
14.5x
$685.1
0.17x
-
$834.2
$900.0
5.19x
3.66x
-
20.4x
-
$765.0
-
8.1x
$9,501.5
0.73x
11.9x
Wallaby Yogurt
Manufacturer and distributor of organic
yogurt
United States
The WhiteWave Foods
Company
$125.0
2.78x
-
Cargill Pork
Producer and seller of pork
United States
SunOpta
$450.0
1.50x
11.5x
United States
Swift Pork Co.
$1,450.0
0.56x
6.8x
United Kingdom
JBS
$1,500.0
-
-
Sunrise Growers
Processer and supplier of fresh and frozen
fruit products
Moy Park
Producer of poultry and convenience food
products
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve months
Sources: Dealogic and Capital IQ
6
Enterprise
Value
SECTOR AND TRANSACTION DATA
Food & Beverage Producer Transactions (cont’d)
($ in millions)
Date
Target (Unit Sold) /
Announced Target Business Description
06/09/15
06/09/15
06/03/15
05/26/15
05/25/15
05/15/15
05/06/15
04/22/15
04/21/15
04/20/15
04/13/15
04/02/15
03/31/15
03/25/15
03/03/15
02/10/15
02/03/15
01/26/15
Target Nation
Buyer
Tnuva Food Industries
Processer, marketer, and distributor of
dairy
Israel
Bright Dairy & Food Co.
Campofrio Food Group (37%)
Manufacturer of meat products
Spain
Japan Beverage Holdings
Provider of soft-drinks
United States
Hormel Foods Corporation
Japan
Marr (5%)
Wholesaler and distributor of food and
beverage products
AK Gida Sanayi ve Ticaret
Producer and seller of milk and related
products
China Huishan Dairy Holdings (8.9%)
Producer of milk and dairy products
Eaststarch (50%)
Manufacturer of corn sweeteners and
starches
Iglo Foods
Marketer and distributor of frozen food
products in Europe
Pivovarna Lasko
Producer and seller of beer, malt, and
bottled water
Plukon Food Group (75%)
Producer and marketer of poultry meat
Picard Surgeles (49%)
Retailer of frozen food
Kraft Foods Group
Manufacturer of consumer packaged food
and beverage products
CFI Co. (74.1%)
Manufacturer of food and beverage
products
Remy Cointreau (5.1%)
Producer and distributor of wines and
spirits
Sales
EBITDA
-
-
$550.0
5.50x
-
$775.0
-
-
Suntory Holdings
$1,234.2
-
-
Italy
Allianz
$8,760.6
5.45x
NMF
Turkey
Groupe Lactalis
$1,015.8
1.34x
23.0x
China
Champ Harvest
$3,814.3
5.87x
12.0x
$516.9
-
-
$5,683.6
3.52x
17.7x
$499.2
1.85x
11.7x
$717.4
0.48x
-
$53,739.0
2.95x
NMF
The WhiteWave Foods
Company
Alfa
Bulgaria
Archer Daniels Midland
Company
United Kingdom
Nomad Holdings
Slovenia
Heineken
$956.8
-
-
Netherlands
De Heus Group;
EW Group
United States
H.J. Heinz
Japan
Asahi Group Holdings
$1,822.6
-
-
France
Stichting Pensioenfonds
$4,160.9
3.89x
NMF
The J. M. Smucker
Company
$6,000.0
-
-
Post Holdings
$1,151.7
-
7.9x
France
Big Heart Pet Brands
Manufacturer, distributor, and marketer of United States
pet food and pet snacks
MOM Brands
Producer and seller of cereal products in
the United States
Enterprise Value / LTM
$1,443.5
Vega
Canada
Provider of plant-based nutrition products
Applegate Farms
Producer of natural and organic meat
products
Enterprise
Value
United States
Aryzta
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve months
Sources: Dealogic and Capital IQ
$989.0
-
-
William Blair
7
SECTOR AND TRANSACTION DATA
Food & Convenience Retail Transactions
($ in millions)
Date
Target (Unit Sold) /
Announced Target Business Description
11/11/15
11/04/15
10/27/15
10/05/15
09/08/15
09/07/15
07/15/15
06/24/15
06/15/15
05/15/15
04/21/15
04/21/15
03/10/15
01/28/15
Enterprise Value / LTM
Buyer
Roundy's
Operator of a supermarket chain in the
midwest
United States
The Kroger Co.
$796.0
0.20x
14.7x
Rite Aid Corporation
Operator of retail stores
United States
CST Brands
-
-
United States
Walgreens Boots Alliance,
Inc.
$425.0
$17,047.5
0.61x
13.1x
Japan
FamilyMart
$109.0
0.28x
-
$1,842.8
0.35x
13.8x
0.53x
16.3x
Flash Foods
Operator of convenience stores that sell
groceries and other items
Haggen (32 Stores and Related Assets)
Operator of a chain of food retail stores
Cocostore Corp.
Operator of a chain of convenience stores
Home Plus Co.
Operator of hypermarkets
Susser Holdings Corporation
Operator of a chain of convenience stores
Groupe Delhaize
Operator of a chain of supermarkets
SPAR Group Limited
Operator of a chain of grocery stores
Kiler Alisveris Hizmetleri Gida Sanayi
ve Ticaret Anonim Sirketi
Operator of a chain of supermarkets
CFS Corp.
Operator of supermarkets and drug stores
China Resources Enterprise (Non-Beer
Business)
Operator of a chain of food retail stores
Mandai Co.
Operator of a chain of supermarkets
Controladora Comercial Mexicana
Operator of a chain of supermarkets
United States
South Korea
United States
Belgium
Smart & Final Stores
Temasek Holdings; MBK
Partners
Sunoco
$68.0
$6,474.8
Sales
EBITDA
-
0.79x
9.1x
$11,731.9
Turkey
Carrefour Sabanci
$316.6
0.82x
NMF
Japan
Aeon Co.
$279.1
0.28x
6.6x
Hong Kong
China Resources Co.
$3,612.9
0.21x
-
Japan
Seven & i Holdings
$550.0
-
-
South Africa
Mexico
Oppenheimer Funds
Organizacion Soriana
$2,807.5
$2,676.0
0.47x
-
Koninklijke Ahold
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve months
Sources: Dealogic and Capital IQ
8
Enterprise
Value
Target Nation
1.38x
8.4x
16.1x
SECTOR AND TRANSACTION DATA
Selected Monthly M&A Activity – December
Food & Beverage Producer Transactions
($ in millions)
Date
Target (Unit Sold) /
Announced Target Business Description
12/31/15
12/31/15
12/31/15
12/29/15
12/29/15
12/29/15
12/29/15
12/25/15
12/24/15
12/24/15
12/23/15
12/23/15
12/23/15
12/23/15
12/22/15
12/22/15
12/22/15
12/22/15
Target Nation
Buyer
Shenzhen Kondarl Co. (16.2%)
Manufacturer and distributor of food and
beverage products
China
Kingkey Group
Summit Teamtrade
Manufacturer of biscuits
United States
Malaysia
E & H Donuts
Italy
Undisclosed Acquirer
Fredericksburg Donuts
Manufacturer of donuts
Casoni Fabbricazione Liquori
Producer and marketer of alcoholic
beverages
Camperdown Dairy Company
Manufacturer of dairy products
El Noble Repulgue (21%)
Producer and distributor of beef
Haimarrow Food Service Co.
Distributor of vegetables and related food
products
Heilongjiang Tianzhengliangyou
Shipinjinkougufen Co.
Manufacturer of flour and flour based
products
PT. Nissin Foods Indonesia
Producer of instant noodles
Perutnina Ptuj
Provider of poultry and related food
products
Carolina Administracao e
Participacoes Societarias
Producer of yogurt and related dairy
products
$1,879.1
-
-
-
-
-
$5.8
-
-
$8.0
-
-
$142.6
2.10x
24.2x
$10.1
-
-
-
-
-
KTB
China
Hunan Jinjian Cereals
Industry Co.
Indonesia
Mitsubishi Corporation
-
-
-
Slovenia
Slovenska Industrija Jekla
-
-
-
Brazil
General Mills
-
-
-
Partners Group
-
-
-
$2,002.4
0.90x
10.4x
$4.4
-
-
-
-
-
-
-
-
Casella Wines
-
-
-
Hain Celestial UK
-
-
-
Brickworks Ciderhouse
Producer of cider and related beverage
products
Canada
Orchard House Foods
Producer of fresh fruit juices
EBITDA
South Korea
Argentina
Brazil
McWilliam's Wines Group (Brand's
Laira Winery Business)
Producer of wine
Sales
Australian Dairy Farms
Group
Minerva (19.9%)
Producer and distributor of raw meat
Ceragri Negoce
Wholesaler of cereals
Enterprise Value / LTM
Australia
Hortigil Hortifruti
Producer and distributor of fruit and other Brazil
fresh produce
West Food Company
Producer and supplier of canned and
frozen vegetable and fruit products
Rex Industry Berhad
Enterprise
Value
Vietnam
France
Australia
United Kingdom
Private Investor
Saudi Agricultural &
Livestock Investment Co.
Techno - Agricultural
Supplying
Anheuser-Busch InBev
Axereal Union De
Cooperatives Agricoles
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in December 2015
Sources: Dealogic and Capital IQ
-
-
-
William Blair
9
SECTOR AND TRANSACTION DATA
Food & Beverage Producer Transactions (cont’d)
($ in millions)
Date
Target (Unit Sold) /
Announced Target Business Description
12/22/15
12/22/15
12/22/15
12/22/15
12/22/15
12/22/15
12/22/15
12/21/15
12/21/15
12/21/15
12/21/15
12/20/15
12/19/15
12/18/15
12/18/15
12/17/15
12/16/15
12/16/15
12/16/15
12/16/15
Target Nation
Buyer
Enterprise Value / LTM
Sales
EBITDA
Joyous Foods Co.
Manufacturer and distributor of noodles,
pasta, and snack food products
Japan
Nisshin Seifun Group
-
-
-
Shanghai Zhong Jiang Spirit Limited
(10%)
Wholesaler of alcoholic beverages
United States
Anheuser-Busch InBev
-
-
-
China
$24.1
-
-
Spider Grupa
-
-
-
Lithuania
Coca-Cola HBC Lithuania
-
-
-
China
Yamada Green Resources
Limited
$13.7
-
-
$126.5
-
-
$90.6
0.70x
-
Breckenridge Brewery
Producer of beer
Cedevita (Tea Business)
Producer of tea
Kuni Ham Co.
Distributor of processed meat
Neptuno Vandenys
Producer and exporter of bottled mineral
water
Fujian Tianwang Foods (45%)
Manufacturer of processed vegetable food
products
Camden Town Brewery
Producer of beer
Creamline Dairy Products (25%)
Manufacturer and supplier of dairy
products
Tokachi Tachibana Co. (Confectionery
Products Division)
Producer and distributor of confectionery
products
Rugen Fisch
Provider of seafood
Triple Corona
Producer of bottled tea
J.P.'s Shellfish
Processer and marketer of seafood
products
Pastai In Brianza
Manufacturer of pasta
Four Peaks Brewing Company
Producer of beer
Urban Fresh Foods
Manufacturer of natural fruit snacks and
cereals
Hubers Landhendl
Producer and processer of turkey meat
Metzgerei Josef Hub
Producer of meats
Rutherford Wine Studios
Manufacturer of wine
Central Roast Inc.
Producer and distributor of natural snack
foods
Croatia
Japan
United Kingdom
Shaanxi Northwest New
Technology Industry Co.
Takizawa Ham Co.
Anheuser-Busch InBev
-
-
-
India
Godrej & Boyce
Manufacturing Co.
Japan
Nampo Tsusho Co.
-
-
-
Germany
Thai Union Group
-
-
-
United States
Atlantic Aqua Farms
-
-
-
Italy
Undisclosed Acquirer
$5.8
0.27x
-
United Kingdom
Lotus Bakeries
-
-
-
Austria
Bell
-
-
-
United States
E. & J. Gallo Winery
-
-
-
Colombia
United States
Austria
Canada
Postobon
Anheuser-Busch
Companies
Coop Schweiz
GreenSpace Brands
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in December 2015
Sources: Dealogic and Capital IQ
10
Enterprise
Value
-
-
-
$12.1
-
-
-
1.31x
-
-
-
-
SECTOR AND TRANSACTION DATA
Food & Beverage Producer Transactions (cont’d)
($ in millions)
Date
Target (Unit Sold) /
Announced Target Business Description
12/16/15
12/16/15
12/15/15
12/15/15
12/15/15
12/15/15
12/15/15
12/14/15
12/14/15
12/14/15
12/11/15
12/11/15
12/11/15
12/11/15
12/10/15
12/10/15
12/10/15
12/09/15
12/09/15
Target Nation
Buyer
Enterprise
Value
Enterprise Value / LTM
Sales
EBITDA
Fonterra Brands (Australian Yogurt and
Dairy Dessert Business)
Australia
Manufacturer of yogurt, desserts, and
related food products
Parmalat Australia
-
-
-
Goyes Agri-Food Investment Limited
(40%)
Manufacturer of frozen meat and
processed meat products
Austria
Schlumberger
-
-
-
China
Esperance Minerals
$72.8
0.65x
-
Japan
Kotobuki Spirits Co.
-
-
-
United States
NGEN Partners
-
-
-
United States
Private Investor
-
-
-
Russian Federation
Undisclosed Acquirer
$79.6
-
-
Wiberg; Sagema
Manufacturer of food preparations and
seasonings
Austria
Frutarom Industries
$130.4
0.76x
-
GreenFood
Wholesaler and distributor of fruits and
vegetables
United States
Kahala Brands
-
-
-
Sweden
Nordic Capital Svenska
-
-
-
Canada
Maestro Capital
$3.9
-
-
Czech Republic
Orkla Foods Romania
$191.1
0.96x
-
France
IDIA Capital
Investissement;
Bpifrance Investissement
-
-
-
-
-
-
$3,125.4
1.62x
24.8x
-
-
-
Mozart Distillerie
Producer of alcoholic beverages
Francais Co.
Manufacturer of confectionery and bakery
products
Two Moms in the Raw Inc. (70%)
Manufacturer of gluten free and raw food
Wilderness Family Naturals
Distributor and manufacturer of organic
and natural foods
Albion-2002 (33%)
Wholesaler of alcoholic beverages
Hunter Wild
Germany
Distributor and marketer of meat products
Pinkberry
Operator of a chain of frozen yogurt shops
Supreme Sweets
Manufacturer of bread and bakery
products
HAMÉ
Manufacturer of chilled food products
Freshness First
Processer of fruits and vegetables
Cafés Folliet (15%)
Manufacturer of coffee
Salad Signature
Producer and seller of spreadable salads
Premium Foods Brasil
Manufacturer of food ingredients
Lotte Confectionery Co. (7.8%)
Producer of chewing gums, candies,
chocolates and other snacks
Australia
Belgium
Brazil
South Korea
Conrad Heiter Wurst- und Fleischwaren
Germany
Manufacturer of meat products
Cedrob
Organic Path Limited
IK Investment Partners
JBS
Lotte Co.
Metzgerei & Bistro Huber
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in December 2015
Sources: Dealogic and Capital IQ
-
$2.5
-
-
-
-
-
-
-
William Blair 11
SECTOR AND TRANSACTION DATA
Food & Beverage Producer Transactions (cont’d)
($ in millions)
Date
Target (Unit Sold) /
Announced Target Business Description
Target Nation
Buyer
12/09/15
The John V. Heineman Co.
Distributor of gourmet food products
United States
Paragon Wholesale Foods
Corp.
12/08/15
Aquaterra Corp.
Manufacturer of spring water
Canada
Cott Corporation
12/09/15
12/08/15
12/08/15
12/08/15
12/07/15
12/07/15
12/07/15
12/07/15
12/07/15
12/04/15
12/04/15
12/04/15
12/04/15
12/04/15
12/03/15
12/03/15
12/03/15
12/03/15
Uralbroyler
Processer and seller of meat
Jackson Fine Wines
Wholesaler of wine
Stone Wolf Vineyards
Manufacturer and distributor of wine
Barrel O'Fun Snack Foods Co. (Three
Food Companies)
Producer of snack food products
Keurig Green Mountain
Producer and seller of coffeemakers and
specialty coffee
Mastellone Hermanos
Processer and distributor of dairy
products
Creative Gourmet
Provider of frozen fruits
Mt. Fuji Springs Inc.
Manufacturer and wholesaler of bottled
water
Russian Federation
United Kingdom
United States
United States
-
-
-
$46.1
-
-
-
-
-
United States
Acorn Holdings
$14,194.0
3.14x
13.3x
Argentina
Arcor
$434.7
0.31x
15.2x
Australia
Entyce Food Ingredients
-
-
-
Japan
KDDI Corp.
-
-
-
Private Investor
$525.2
0.41x
19.4x
CEFC Investment
(Europe); J&T Private
Equity Group
$109.4
-
-
$14.3
-
-
-
-
-
$26.9
-
-
-
-
-
-
-
-
Centrale del Latte di Firenze
Producer of milk and milk products
Italy
Czech Republic
Luxembourg
Nara Cellar Co. (80%)
South Korea
Wholesaler of wine and distilled beverages
Slaney Foods International
Processer and supplier of beef
Ireland
United Bakeries
Producer of bread and bakery products
Czech Republic
Le Grand Lejon
Manufacturer of canned and cured seafood France
and fish
United States
Buzz Buddy Liquor Inc.
Centrale del Latte di
Torino & C.
Moulins de
Kleinbettingen
Oakline
ABP Food Group
Gendreau
Moulins De
Kleinbettingen
South Beach Spirits, Inc.
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in December 2015
Sources: Dealogic and Capital IQ
12
EBITDA
-
Canada
Striped Pig Distillery
Producer of alcoholic beverages
Integrated Beverage
Group
Sales
-
Nixx Wine & Spirits Inc.
Distributor of wine & spirits
European United Bakeries
Producer and supplier of flour and pastry
products
Farr Vintners
Enterprise Value / LTM
Shearer's Foods
Maeil Dairies Co. (5.51%)
South Korea
Producer and distributor of dairy products
Pivovary Lobkowicz Group
Manufacturer and seller of alcoholic
beverages
Shiny Property Limited
Enterprise
Value
-
-
-
-
-
-
-
-
-
SECTOR AND TRANSACTION DATA
Food & Beverage Producer Transactions (cont’d)
($ in millions)
Date
Target (Unit Sold) /
Announced Target Business Description
12/03/15
12/02/15
12/01/15
12/01/15
12/01/15
12/01/15
12/01/15
Target Nation
Buyer
Tereos Internacional
Producer and distributor of sugar, starch
and sweeteners
Brazil
Tereos Participations
Pennant Ingredients
Provider of ingredients for bakery food
products
Brazil
Laticinios Verde Campo
Producer of yogurt and related dairy
products
Universal Meats (U.K.)
Wholesaler of meat
Sorwi
Producer of meat and poultry products
Daloon
Producer and supplier of meat-free snacks
TruSweets
Manufacturer of organically-sweetened
gummy candies and jelly beans
Enterprise
Value
Enterprise Value / LTM
Sales
EBITDA
$2,296.2
1.01x
16.2x
Leao Alimentos e Bebidas
-
-
-
United States
Puratos
-
-
-
United Kingdom
BRF
$51.1
0.26x
-
Denmark
Izico Bocholt
-
-
-
Denmark
United States
Delika Food Group
Wholesome Sweeteners
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in December 2015
Sources: Dealogic and Capital IQ
-
-
-
-
-
-
Food & Convenience Retail Transactions
($ in millions)
Date
Target (Unit Sold) /
Announced Target Business Description
Enterprise
Value
Enterprise Value / LTM
Target Nation
Buyer
12/29/15
Super Cofix
Operator of a chain of grocery stores
Israel
Private Investors
$15.4
-
-
12/15/15
Spinneys Qatar
Operator of hypermarkets
Qatar
Al Meera Holding Company
$30.0
-
-
12/22/15
12/09/15
12/08/15
12/04/15
12/04/15
12/04/15
12/02/15
Billa Romania
Grocery stores operator
Kombi (9 Mix Food Stores)
Operator of retail stores that sell groceries
and other items
Fresh & Easy (6 Stores)
Operator of a chain of supermarkets
Mega Retail (17 Supermarkets)
Operator of supermarkets
Fruit & Veg City Holdings
Operator of a chain of food retailing stores
Kishi Co.
Operator of a chain of supermarkets
Premium Inc.
Operator of convenience stores
Romania
Carrefour Romania
-
Sales
EBITDA
-
-
Poland
Stokrotka
-
-
-
United States
Grocery Outlet Inc.
-
-
-
South Africa
Actis
-
-
-
Israel
Japan
United States
A.B.A.Victory; M.
Yuchnanaf and Sons
Watahan & Co.
Jacksons Food Stores
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in December 2015
Sources: Dealogic and Capital IQ
$24.9
$8.2
-
0.21x
-
-
William Blair 13
SECTOR AND TRANSACTION DATA
Historical M&A Trends in the Food and Food Retailing Industries
Volume Trends
U.S. Monthly Announced M&A Activity
Food & Beverage Production
Number of Deals
20
19
18
18
01/15
02/15
16
10
0
Food & Beverage
Production
Food Retail &
Convenience
17
1
03/15
16
18
2
04/15
12
1
21
06/15
07/15
14
05/15
11
4
Food Retail & Convenience
21
18
3
16
3
19
08/15
17
5
09/15
14
2
21
19
17
10/15
13
3
17
11/15
15
6
12/15
15
6
2
U.S. Yearly Announced M&A Activity
Number of Deals
300
200
181
100
0
Food & Beverage
Production
Food Retail &
Convenience
Total Deal Value
Food & Beverage Production
166
232
223
170
Food Retail & Convenience
127
129
159
Total Deal Value
185
189
Deal Value ($ in billions)
$150.0
220
194
$100.0
$50.0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
53
65
87
96
64
48
20
32
24
42
33
38
128
$13.5
101
$11.5
145
$29.1
127
$33.3
106
$93.3
79
$20.5
109
$39.0
127
$13.9
161
$36.0
147
161
$43.2
$59.9
$0.0
182
$120.9
Global Yearly Announced M&A Activity
Number of Deals
1,500
1,000
973
1,049
Food & Beverage Production
1,325
1,311
1,193
Food Retail & Convenience
1,159
1,199
1,083
Total Deal Value
979
926
Deal Value ($ in billions)
$400.0
1,112
932
$200.0
500
0
Food & Beverage
Production
Food Retail &
Convenience
Total Deal Value
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
174
179
197
221
269
211
230
177
165
158
140
138
799
$61.1
870
$97.8
996
$94.9
1104
$132.3
1042
$140.5
Note: Data represents announced transactions including U.S.-based targets only
Sources: Dealogic and Capital IQ as of December 31, 2015
14
948
$72.0
969
$94.2
906
$125.4
814
$127.4
768
$109.7
792
$134.2
974
$310.0
$0.0
SECTOR AND TRANSACTION DATA
Participant Trends
Breakdown of Acquirers by Type
Number of Deals
Private
60.0%
Public
Private Equity
Foreign
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Private
Public
Private Equity
Foreign
2003
46.8%
24.0%
11.0%
18.2%
2004
2005
2006
2007
2008
2009
2010
2011
44.1%
43.4%
51.9%
47.2%
50.0%
52.8%
49.5%
53.2%
9.2%
10.1%
13.8%
17.2%
13.1%
13.0%
13.2%
12.2%
27.7%
19.0%
28.0%
18.5%
19.6%
14.6%
21.6%
14.0%
20.3%
16.7%
17.4%
16.8%
18.1%
19.1%
15.6%
19.0%
2012
2013
2014
2015
56.0%
48.6%
47.2%
51.8%
7.2%
13.6%
12.5%
11.8%
19.5%
17.3%
25.8%
12.0%
21.6%
18.8%
20.5%
15.9%
Breakdown of Sellers by Type
Number of Deals
Private
70.0%
Public
Private Equity
Foreign
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Private
Public
Private Equity
Foreign
2003
30.1%
3.3%
17.1%
49.6%
2004
46.4%
6.4%
7.9%
39.3%
2005
2006
53.1%
50.5%
9.1%
12.4%
5.6%
32.2%
2.0%
35.1%
2007
57.2%
1.7%
8.1%
32.9%
Note: Data represents announced transactions including U.S.-based targets only
Sources: Dealogic and Capital IQ as of December 31, 2015
2008
46.3%
3.7%
8.0%
42.0%
2009
2010
53.0%
49.7%
8.5%
14.0%
5.1%
33.3%
6.1%
30.2%
2011
47.1%
4.8%
5.3%
42.8%
2012
53.4%
2.5%
8.1%
36.0%
2013
55.2%
4.9%
7.8%
32.1%
2014
53.4%
7.4%
8.0%
31.3%
2015
53.6%
8.6%
7.3%
30.5%
William Blair 15
SECTOR AND TRANSACTION DATA
Valuation Trends
Average EBITDA Multiples for Food Transactions(1)
EV/EBITDA Multiple
Average EV/EBITDA Multiple
20.0x
18.0x
16.0x
14.0x
12.0x
10.0x
8.0x
6.0x
9.1x
8.4x
11.4x
9.9x
12.0x
10.4x
Number of Disclosed Deals
Number of Disclosed Deals
9.3x
8.2x
11.8x
40
13.2x
13.0x
13.0x
13.5x
Number of
Disclosed Deals
25
15
10
5
2.0x
Average EV/
EBITDA Multiple
30
20
4.0x
0.0x
35
2003
2004
25
20
8.4x
9.1x
2005
2006
14
28
11.4x
9.9x
2007
12.0x
23
2008
2009
2010
20
14
11
10.4x
9.3x
8.2x
2011
11.8x
7
2012
13.2x
17
2013
13.0x
22
2014
13.0x
34
2015
0
13.5x
35
Average EBITDA Multiples for Beverage Transactions(2)
EV/EBITDA Multiple
20.0x
18.0x
16.0x
14.0x
12.0x
10.0x
11.8x
Average EV/EBITDA Multiple
14.1x
12.0x
13.5x
17.3x
13.4x
Number of Disclosed Deals
Number of Disclosed Deals
11.7x
10.9x
8.0x
9.8x
20
13.6x
14.5x
11.8x
13.8x
4
2
2003
11.8x
9
2004
14.1x
16
2005
12.0x
12
2006
13.5x
15
2007
13.4x
5
2008
17.3x
4
(1) Excludes Food & Convenience retail transactions
(2) Includes alcoholic and nonalcoholic beverages
Note: Data represents global transactions announced in the respective sectors
Note: Transactions with multiples that are not meaningful are categorized as undisclosed
Sources: Dealogic and William Blair as of December 31, 2015
16
12
6
2.0x
Number of
Disclosed Deals
14
8
4.0x
Average EV/
EBITDA Multiple
16
10
6.0x
0.0x
18
2009
11.7x
9
2010
2011
1
3
10.9x
9.8x
2012
13.6x
6
2013
14.5x
4
2014
11.8x
13
2015
13.8x
19
0
SECTOR AND TRANSACTION DATA
Public Company Trading Statistics
Food Production Companies
($ in millions)
Company
Nestlé
Unilever
The Kraft Heinz Company
Mondelez International
Danone
Associated British Foods
General Mills
Kellogg Company
Tyson Foods
Hormel Foods Corporation
The Hershey Company
ConAgra Foods
Campbell Soup Company
The J. M. Smucker Company
Grupo Bimbo
McCormick & Company
George Weston
Saputo
JBS
Pilgrim's Pride Corporation
Flowers Foods
ARYZTA
The Hain Celestial Group
Post Holdings
Treehouse Foods
Lancaster Colony Corporation
Snyder's-Lance
Cal-Maine Foods
J&J Snack Foods Corp.
Fresh Del Monte Produce
B&G Foods
Tootsie Roll Industries
Sanderson Farms
Dean Foods Company
Lotus Bakeries
Diamond Foods
% Change
Market Cap
MTD
Forward
YTD
P/E
TEV/LTM
Enterprise
Value
Sales
PEG
EBITDA
$237,451.3
0.2%
1.4%
20.8x
451.5%
$258,508.2
2.65x
13.9x
$88,291.0
(1.3%)
NA
22.5x
265.0%
$117,652.0
8.40x
37.3x
$41,465.8
(3.5%)
$34,212.3
(0.2%)
$122,614.3
$71,258.3
$38,849.0
$25,612.3
$21,108.4
$20,895.2
$19,353.1
$18,251.5
$16,292.1
$14,760.7
1.2%
5.4%
2.7%
23.4%
(7.7%)
0.3%
5.1%
6.7%
5.6%
2.6%
8.1%
10.4%
33.0%
51.8%
3.4%
(14.1%)
0.6%
19.4%
3.0%
1.8%
16.2%
22.1%
$12,543.9
(3.5%)
(3.3%)
$9,857.4
(6.0%)
(11.1%)
(2.1%)
(26.0%)
$10,965.2
$9,368.5
$8,906.7
$5,629.0
$4,559.3
$4,521.2
(0.4%)
(2.7%)
2.6%
(8.6%)
15.2%
(20.9%)
(32.6%)
(8.3%)
(7.5%)
12.3%
(11.1%)
$1,994.6
(1.4%)
$2,030.3
$1,749.3
0.0%
(7.3%)
3.6%
19.8x
18.2x
19.8x
20.0x
25.6x
191.4%
352.4%
233.5%
272.9%
330.3%
258.7%
56.9%
24.2x
292.7%
19.0x
190.0%
14.9x
8.4x
9.4x
148.7%
NA
NA
211.1%
(9.3%)
$2,031.7
30.0x
245.8%
22.5x
(0.7%)
$2,180.1
16.3x
237.2%
117.4%
$3,159.7
(15.0%)
19.2x
337.1%
17.4x
47.3%
$2,247.3
18.6x
220.9%
(30.7%)
(11.2%)
$2,428.6
32.7x
202.5%
186.7%
$3,830.5
$3,381.2
19.1x
19.9x
(34.2%)
(5.4%)
21.8x
198.8%
12.0%
8.3%
$4,158.6
19.9x
23.3%
18.7%
11.3x
45.4x
27.2x
25.7x
5.4x
38.5%
529.6%
247.4%
171.0%
NA
7.3%
29.5x
327.3%
17.1%
18.7x
NA
15.9%
6.2%
(7.7%)
14.1x
NA
7.8x
281.7%
NA
NA
$136,453.4
$85,694.3
$50,857.0
$39,479.8
$43,571.6
$33,272.3
$27,158.4
$20,986.2
$21,826.3
$26,060.8
$20,137.1
$20,486.2
$16,745.1
$12,362.4
$24,667.8
$10,663.2
$19,792.8
$6,241.7
$5,447.7
$6,457.7
$4,899.5
$7,653.3
$4,674.1
$2,960.3
$2,826.5
$1,858.0
$2,047.9
$2,244.1
$2,963.3
$1,879.0
$1,562.6
2.76x
2.07x
2.00x
2.52x
2.39x
0.66x
12.9x
17.7x
12.8x
17.4x
12.6x
20.6x
8.8x
2.27x
17.2x
1.65x
12.2x
2.92x
2.51x
2.96x
1.35x
2.90x
0.67x
12.8x
13.6x
14.4x
11.7x
18.0x
9.8x
1.34x
13.6x
0.75x
4.4x
0.52x
6.1x
1.43x
12.3x
1.79x
14.1x
1.53x
1.65x
1.44x
2.60x
1.67x
0.93x
16.8x
12.9x
12.7x
16.0x
15.3x
3.3x
2.10x
13.8x
3.44x
15.6x
0.56x
3.8x
0.56x
3.49x
17.7x
(8.6%)
(11.5%)
16.5x
223.8%
Mean
$1,215.7
(2.0%)
7.3%
$24,403.2
1.88x
14.0x
7.7%
33.3x
256.7%
(1.3%)
36.6%
22.0x
Median
(4.8%)
19.8x
237.2%
$6,241.7
1.67x
13.6x
12.1%
68.3%
27.1x
271.4%
302.6%
$1,540.5
$1,860.5
0.28x
8.7x
$1,566.8
$1,502.1
$2,343.8
2.39x
3.68x
2.21x
6.5x
19.1x
17.0x
Note: Data as of December 31, 2015
Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
William Blair 17
SECTOR AND TRANSACTION DATA
Food Ingredients Companies
($ in millions)
% Change
Company
Market Cap
Givaudan
$16,773.0
0.8%
$9,601.1
(0.3%)
Kerry Group
International Flavors & Fragrances
Symrise
Barry Callebaut
Frutarom Industries
Sensient Technologies Corporation
T. Hasegawa Co.
Takasago International Corporation
$14,577.0
$8,646.7
$6,001.9
$3,149.9
MTD
P/E
196.2%
$17,818.5
3.79x
18.2x
18.0%
21.0x
299.8%
$10,524.5
3.44x
15.6x
(1.6%)
9.8%
73.4%
2.3%
(8.1%)
$479.8
0.3%
22.5x
24.5x
6.5%
10.1%
(6.0%)
EBITDA
23.5x
20.0%
5.2%
TEV/LTM
Enterprise
Sales
Value
PEG
0.9%
2.7%
$2,840.8
$553.1
Forward
YTD
21.8x
27.0x
4.1%
$16,164.5
184.6%
$9,998.3
99.3%
$7,797.8
NA
17.4x
182.8%
59.5x
NA
19.0x
6.3%
199.2%
$3,445.1
$3,446.2
NA
$381.8
$829.2
2.46x
3.49x
1.21x
4.06x
2.50x
0.97x
0.72x
19.3x
16.5x
14.8x
22.1x
13.1x
6.1x
10.0x
Mean
1.5%
14.5%
26.2x
193.7%
$7,822.9
2.52x
15.1x
Median
0.8%
6.5%
22.5x
190.4%
$7,797.8
2.50x
15.6x
Note: Data as of December 31, 2015
Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
Beverage Production Companies
($ in millions)
Company
% Change
Market Cap
MTD
Forward
YTD
P/E
Anheuser-Busch InBev
$199,652.8
(3.6%)
Pepsico
$145,568.5
(0.2%)
$68,866.1
(4.8%)
(5.0%)
1.6%
45.1%
The Coca-Cola Company
SABMiller
Diageo
Monster Beverage Corporation
Constellation Brands
Brown-Forman Corporation
Dr Pepper Snapple Group
Molson Coors Brewing Company
Keurig Green Mountain
Coca-Cola Enterprises
The WhiteWave Foods Company
Boston Beer Co.
National Beverage Corp.
Coca-Cola Bottling Co.
Cott Corporation
Farmer Brothers Co.
Lifeway Foods
Jones Soda Co.
$186,832.4
$96,686.7
$30,197.5
$28,031.2
$20,905.2
$17,604.7
$17,336.2
$13,423.0
0.8%
(1.1%)
(3.7%)
(3.2%)
3.8%
2.1%
TEV/LTM
Enterprise
Value
Sales
PEG
22.9x
182.6%
$244,489.8
5.45x
14.2x
5.7%
20.3x
247.5%
$167,055.5
2.59x
13.8x
1.8%
14.6%
37.5%
13.0%
30.0%
26.0%
71.7%
(32.0%)
(4.2%)
11.2%
24.5x
19.1x
37.4x
25.4x
26.6x
246.0%
192.4%
186.2%
267.0%
190.3%
NA
21.9x
297.0%
26.2x
144.9%
23.7x
$2,608.0
(5.5%)
(30.3%)
$1,695.9
(5.8%)
107.3%
26.1x
$525.0
10.4%
9.6%
38.0x
189.9%
$15.8
(4.4%)
NA
$1,203.7
$181.0
Mean
Median
4.6%
4.6%
100.9%
58.8%
17.7x
308.6%
(2.1%)
$2,109.9
11.4%
20.3x
$11,175.1
$6,856.0
28.1x
24.1x
NA
30.4x
160.6%
NA
NA
NA
NA
204.0%
$86,342.1
7.02x
5.08x
10.22x
$22,492.2
7.25x
$35,242.0
$20,036.7
$19,967.1
$13,819.8
$14,984.1
$9,059.5
$2,473.8
$2,029.3
$2,339.9
$2,848.6
$484.5
25.9x
215.3%
$49,561.4
(0.7%)
11.3%
25.0x
194.7%
$17,475.6
NA
4.67x
$27,412.0
19.2%
Note: Data as of December 31, 2015
Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
18
$109,236.7
(40.1%)
9.3%
32.6x
196.9%
$210,717.4
0.9%
3.1%
EBITDA
9.4%
$181.1
$15.7
5.63x
3.21x
5.40x
3.06x
2.05x
2.42x
2.57x
3.02x
1.10x
1.02x
17.0x
23.4x
16.3x
28.6x
18.0x
20.4x
13.9x
29.7x
13.0x
12.2x
20.7x
12.1x
21.8x
14.2x
9.1x
0.89x
12.3x
5.45x
1.17x
17.3x
5.45x
15.3x
1.52x
NMF
NMF
SECTOR AND TRANSACTION DATA
Food Retail Companies
($ in millions)
Company
The Kroger Co.
Whole Foods Market
Sprouts Farmers Market
United Natural Foods
SUPERVALU
Smart & Final Stores
Weis Markets
The Fresh Market
Ingles Markets
SpartanNash Company
Natural Grocers by Vitamin Cottage
Village Super Market
Fairway Group Holdings Corp.
% Change
Market Cap
$40,772.7
$11,432.5
MTD
Forward
YTD
11.1%
P/E
30.3%
19.6x
(21.7%)
27.4x
14.9%
(33.6%)
$1,980.6
(10.4%)
(49.1%)
$1,342.8
3.6%
$4,084.0
$1,802.9
$1,191.6
$1,100.6
10.2%
9.2x
NA
$4,243.3
1.25x
15.1x
NA
(2.3%)
(43.2%)
14.1x
0.1%
(17.2%)
10.3x
6.9%
(2.1%)
$29.1
(20.7%)
Median
0.48x
22.4x
$458.3
Mean
$51,731.7
110.1%
15.8%
0.9%
1.7%
(30.1%)
8.2x
(7.4%)
(27.7%)
(3.7%)
$4,276.9
$1,814.0
$1,088.1
70.9%
127.4%
26.9x
101.7%
NMF
$2,467.9
NA
14.4x
NA
(79.0%)
$11,105.5
NA
NA
18.8%
EBITDA
218.1%
89.1%
(19.1%)
$372.7
19.8x
13.6x
$893.1
$813.6
TEV/LTM
Enterprise
Sales
Value
PEG
$1,095.7
$1,780.9
103.0%
$1,352.9
$483.0
NA
$362.4
NA
$256.6
0.72x
0.30x
0.24x
7.9x
8.1x
5.3x
0.48x
11.1x
0.60x
5.7x
0.38x
0.47x
0.17x
0.77x
0.23x
0.33x
(0.4%)
(19.1%)
17.7x
117.2%
$6,312.2
0.49x
0.9%
(21.7%)
17.0x
103.0%
$1,780.9
0.47x
7.0x
7.4x
6.1x
9.7x
5.4x
16.6x
8.8x
7.9x
Note: Data as of December 31, 2015
Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
Convenience Store Companies
($ in millions)
Company
Alimentation Couche-Tard
Casey's General Stores
% Change
Market Cap
$24,986.5
$4,698.3
MTD
Forward
YTD
(3.9%)
3.6%
P/E
4.4%
33.4%
TEV/LTM
Enterprise
Sales
Value
PEG
20.0x
24.1x
NA
216.8%
$26,961.7
$5,478.7
0.79x
0.80x
EBITDA
14.5x
10.9x
Mean
(0.2%)
18.9%
22.1x
216.8%
$16,220.2
0.80x
12.7x
Median
(0.2%)
18.9%
22.1x
216.8%
$16,220.2
0.80x
12.7x
Note: Data as of December 31, 2015
Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
William Blair 19
SECTOR AND TRANSACTION DATA
Same-Store Growth – Food & Convenience Retail
Grocery Stores & Supermarkets
Natural Grocers by Vitamin Cottage
6.2%
The Kroger(1)
5.4%
Smart & Final Stores
4.8%
Weis Markets
3.9%
Sprouts Farmers Market
Publix Super Markets
5.8%
4.2%
Ingles Markets
3.1%
Village Super Market
2.2%
Whole Foods Market
(0.2%)
SUPERVALU
(3.3%)
SpartanNash
The Fresh Market
Fairway Group Holdings
Grocery Stores & Supermarkets
Casey's General Stores
Alimentation Couche-Tard
(3.0%)
(3.7%)
(4.8%)
8.1%
5.2%
(1) Excludes fuel sales
Note: Bolded companies reflect recently announced same-store sales data (announced in December 2015)
Note: Data represents growth in the most recent reported fiscal quarter over the year-ago period
Sources: Company filings and Capital IQ as of December 31, 2015
20
SECTOR AND TRANSACTION DATA
U.S. Public Equity Financing Summary – LTM
IPOs
($ in millions)
Initial Filing
Date
06/25/15
Offer
Date
At Filing
04/02/15
Shares/
ADS Exc. Ovl. Filing Range
Ticker Issuer
08/04/15 BETR
06/04/15 DTEA
At Pricing
Amplify Snack
Brands
15.0
DAVIDsTEA Inc.
5.1
$14.00 - $16.00
$17.00 - $18.00
Pricing & Performance - % Change Offer/
Deal Value
at
Shares/ ADS
Midpoint Inc. Ovl.
225.0
17.3
89.3
5.9
Offer
Price
$18.00
$19.00
Deal
Value
Market
Value
$270.0
$96.9
Relative
to Range 1 Day
1 Month
3 Months Current
$1,350.0 Above
(12.8%)
(10.0%)
(27.9%)
(36.0%)
19.4%
11.6%
(31.1%)
Mean
51.6%
(31.7%)
(29.5%)
(35.4%)
Median
19.4%
(10.0%)
(29.5%)
(35.4%)
$440.0 Above
(34.8%)
Follow-ons
($ in millions)
Pricing
Date
Ticker
Pricing Performance - % Change
Last Trade Before
% Shares Offered
Shares /
ADS Offered Offer Price
Deal Value
(mm)
Offer/
Current
11/23/15 SJM
The J. M. Smucker Company
Manufacturer and seller of
branded food products
3.9
$121.00
$467.3
0%
100%
1.1%
1.1%
1.9%
08/12/15 POST
Post Holdings
Manufacturer and marketer of
convenience food products
5.9
$60.00
$351.0
100%
0%
(3.2%)
4.4%
2.8%
$130.4
100%
0%
3.8%
0%
09/21/15 SJM
07/09/15 SJM
05/27/15 BCB
05/19/15 RNDY
05/04/15 PF
04/29/15 BGS
04/14/15 SFS
03/09/15 PF
03/04/15 SFM
01/28/15 POST
The J. M. Smucker Company
The J. M. Smucker Company
Cott Corporation
Roundy's
Pinnacle Foods
B&G Foods
Smart & Final Stores
Pinnacle Foods
Sprouts Farmers Market
Post Holdings
Manufacturer and seller of
branded food products
8.3
$114.00
$943.6
4.9
$103.82
$511.0
100%
3.5
$3.50
$12.3
0%
100%
$128.5
100%
0%
$531.0
0%
14.1
Manufacturer and marketer of
convenience food products
5.0
$40.91
$204.6
Retailer and distributor of food
and beverage products
10.0
$18.50
$185.0
Specialty retailer of natural and
organic food
15.8
Operator of a supermarket
chain in the midwest
Manufacturer and distributor
of consumer food products
Manufacturer and marketer of
convenience food products
Manufacturer and marketer of
convenience food products
4.2
14.3
6.5
$30.60
$37.07
$35.30
$47.50
100%
0%
Producer and seller of
beverages and related products
$9.25
0%
Secondary
Offer/
Offer
Business Description
Manufacturer and seller of
branded food products
Primary
Filing/
Offer
Issuer
$559.4
$308.8
2.3%
2.3%
8.2%
4.5%
4.5%
18.8%
36.0%
28.3%
0.0%
3.7%
18.7%
3.8%
100%
(1.1%)
(1.1%)
0%
100%
(4.1%)
(3.4%)
(1.6%)
0%
100%
(0.4%)
(0.4%)
(24.7%)
100%
100%
Mean
Median
0%
3.8%
(0.7%)
4.1%
(0.7%)
14.4%
14.5%
2.4%
3.8%
29.9%
0.4%
2.4%
6.0%
(12.8%)
2.6%
7.2%
Sources: Dealogic and FactSet Research Systems
Note: LTM as of December 31, 2015
William Blair 21
SECTOR AND TRANSACTION DATA
General Market Update
Percentage Change
As of
12/31/15
Month-to-Date
Year-to-Date
Equity Market Indices
Dow Jones Industrial Average
Nasdaq Composite
S&P Food Products Index
(2.2%)
2,043.94
(1.8%)
(0.7%)
3.5%
(3.3%)
543.51
S&P Food & Staples Retail Index
WB Corporate Finance
(1.7%)
5,007.41
S&P 500
S&P Restaurants Index
17,425.03
(2.0%)
3.1%
372.00
988.96
Indices(1)
Food Index
Ingredients Index
Beverage Index
Food Retail Index
(2.8%)
4,499.06
(0.7%)
950.72
Convenience Store Index
34,397.18
Dollar to Canadian Dollar
$1.39
Currencies
Dollar to Euro
9.6%
(0.7%)
4.3%
19.9%
4.0%
17.2%
Commodities(2)
2.1%
Coffee Beans (Cents and 1/100 of a Cent Up to 2 Decimal Places)
$1.27
Milk (Cents per 2,000 lbs.)
$0.14
Corn (Cents per Bushel)
(14.8%)
$37.04
(11.1%)
(30.5%)
$0.15
2.1%
5.0%
Soybean Oil (Cents per Bushel)
$0.31
As of
12/31/15
52-Week
Low
INTEREST RATES
10-Year Treasury
2.3%
1.7%
3-Month LIBOR
0.6%
0.3%
30-Year Treasury
Fed Funds Effective Rate
Prime Rate
$4.70
Yield (%) 52-Week Range
3.0%
0.4%
3.5%
2.3%
0.1%
3.3%
5.8%
(7.3%)
$3,211.00
Wheat (Cents per Bushel)
11.4%
(23.9%)
Cocoa (Dollars per Metric Ton)
World Sugar (Cents and 1/100 of a Cent up to 2 Decimal Places)
31.4%
5.9%
$3.59
Oil (Dollars per Barrel)
7.4%
1.6%
$0.68
$17.27
5.7%
12.6%
(2.8%)
Dollar to Pound
17.8%
(1.4%)
$0.92
Dollar to Peso
9.8%
0.1%
894.8
1092.13
5.7%
(3.6%)
(9.6%)
(3.8%)
10.3%
4.5%
(4.3%)
(1.2%)
(20.3%)
52-Week
High
Latest
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
2.5%
3.2%
0.6%
0.4%
3.5%
(1) WB Corporate Finance indices are determined by FactSet Research Systems, as of December 31, 2015. Data is based on a weighted average by market capitalization calculation.
(2) Commodities represent futures prices
Source: FactSet Research Systems as of December 31, 2015
WB Corporate Finance Food Index includes: ARYZTA, Associated British Foods, B&G Foods, Bridgford Foods, Calavo Growers, Cal-Maine Foods, Campbell Soup, Chiquita Brands International, ConAgra Foods,
Danone, Dean Foods, Diamond Foods, Dole Food Company, Flowers Foods, Fresh Del Monte Produce, General Mills, George Weston Limited, Golden Enterprises, Grupo Bimbo, Hormel Foods, Inventure
Foods, J&J Snack Foods, JBS, John B Sanfilippo & Son, Kellogg Company, Kraft Foods, Lancaster Colony Corporation, McCormick & Co., Nestlé, Overhill Farms, Pilgrim’s Corp., Post Holdings, Sanderson Farms,
Saputo, Seneca Foods, Nestlé, Ralcorp Holdings, Reddy Ice Holdings, Sanderson Farms, Saputo, Sara Lee, Seneca Foods, Smart Balance, Smithfield Foods, Snyder’s-Lance, The Hain Celestial Group, The
Hershey Company, The J. M. Smucker Company, Tootsie Roll Industries, Treehouse Foods, Tyson Foods, Unilever
WB Corporate Finance Beverage Index includes: Anheuser-Busch InBev, Boston Beer Co., Brown-Forman Corporation, Coca-Cola Bottling Co. Consolidated, Coca-Cola Enterprises, Constellation Brands, Cott
Corporation, Diageo, Dr Pepper Snapple Group, Farmer Brothers Co., Green Mountain Coffee Roasters, Jones Soda Co., Lifeway Foods, Molson Coors Brewing Company, Monster Beverage Corporation,
National Beverage, PepsiCo, SABMiller, The Coca-Cola Company
WB Corporate Finance Ingredients Index includes: Barry Callebaut, Frutarom Industries, Givaudan, International Flavors & Fragrances, Kerry Group, Sensient Technologies Corporation, Symrise, T.
Hasegawa Co., Takasago International
WB Corporate Finance Food Retail Index includes: Arden Group (Gelson’s), Fairway Group Holdings, Harris Teeter Supermarkets, Ingles Markets, Nash Finch, Roundy’s, Safeway, Smart & Final Stores,
Spartan Stores, SUPERVALU, The Fresh Market, The Kroger Co., United Natural Foods, Village Super Market, Vitamin Cottage Natural Food Markets, Weis Markets, Whole Foods Market
WB Corporate Finance Convenience Store Index includes: Alimentation Couche-Tard, Casey’s General Stores, Pantry
22
SECTOR AND TRANSACTION DATA
William Blair Consumer & Retail Coverage
Sharon Zackfia, CFA
Apparel and Accessories, Leisure, Restaurants
+1 312 364 5386
Jon Andersen, CFA
Consumer Products
+1 312 364 8697
Company
Ticker
Company
Ticker
BJ’s Restaurants
BJRI
Amplify Snack Brands
BETR
CarMax
KMX
Church & Dwight
CHD
Bloomin’ Brands
Bojangles’
Carnival Corporation
Cheesecake Factory (The)
Chipotle Mexican Grill
Dave & Buster’s Entertainment
DAVIDsTEA
Dunkin’ Brands Group
El Pollo Loco Holdings
Harley-Davidson
Lululemon Athletica
Panera Bread Company
Papa Murphy’s Holdings
Planet Fitness
Potbelly
Royal Caribbean Cruises
Shake Shack
Sonic Corp.
Starbucks Corporation
Tilly’s
Under Armour
Zoe’s Kitchen
Zumiez
Daniel Hofkin, Analyst
Hardlines, Specialty Retail
BLMN
BOJA
CCL
CAKE
CMG
PLAY
DTEA
DNKN
LOCO
HOG
LULU
PNRA
FRSH
PLNT
PBPB
RCL
SHAK
SONC
SBUX
TLYS
UA
ZOES
ZUMZ
+1 312 364 8965
AptarGroup
B&G Foods
Colgate-Palmolive Company
Fox Factory Holding Corp.
Freshpet
The Hain Celestial Group
Inventure Foods
J&J Snack Foods
J.M. Smucker Company (The)
Jarden Corporation
Kellogg Company
Keurig Green Mountain
Mead Johnson Nutrition Company
Perrigo Company
Prestige Brands Holdings
Procter & Gamble Company (The)
Scotts Miracle-Gro Company (The)
SodaStream International
SunOpta
TreeHouse Foods
WhiteWave Foods Company (The)
Amy Noblin, Analyst
Apparel and Accessories
ATR
BGS
CL
FOXF
FRPT
HAIN
SNAK
JJSF
SJM
JAH
K
GMCR
MJN
PRGO
PBH
PG
SMG
SODA
STKL
THS
WWAV
+1 415 248 2874
Advance Auto Parts
AAP
Abercrombie & Fitch
ANF
Luxottica Group
LUX
Duluth Holdings
DLTH
AutoZone
Bed Bath & Beyond
Mattress Firm Holding Corp.
O’Reilly Automotive
Party City Holdco
Regis Corporation
Restoration Hardware Holdings
Ross Stores
Sportsman’s Warehouse Holdings
Tempur Sealy International
TJX Companies (The)
Ulta Salon, Cosmetics & Fragrance
Williams-Sonoma
AZO
BBBY
MFRM
ORLY
PRTY
RGS
RH
ROST
SPWH
TPX
TJX
ULTA
Coach
DSW
Francesca’s Holdings
Michael Kors Holdings
Nordstrom
Tiffany & Co.
Tumi Holdings
Urban Outfitters
Vera Bradley
Vince Holding Corp.
COH
DSW
FRAN
KORS
JWN
TIF
TUMI
URBN
VRA
VNCE
WSM
William Blair 23
Disclosure
“William Blair” is a trade name for William Blair & Company, L.L.C., William Blair Investment Management, LLC and
William Blair International, Ltd. William Blair & Company, L.L.C. and William Blair Investment Management, LLC
are each a Delaware company and regulated by the Securities and Exchange Commission. William Blair & Company,
L.L.C. is also regulated by The Financial Industry Regulatory Authority and other principal exchanges. William Blair
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William Blair only offers products and services where it is permitted to do so. Some of these products and services
are only offered to persons or institutions situated in the United States and are not offered to persons or institutions
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About William Blair
Investment Banking
William Blair’s investment banking group combines significant transaction experience,
rich industry knowledge, and deep relationships to deliver successful advisory and
financing solutions to our global base of corporate clients. We serve both publicly traded
and privately held companies, executing mergers and acquisitions, growth financing,
financial restructuring, and general advisory projects. This comprehensive suite of
services allows us to be a long-term partner to our clients as they grow and evolve.
From 2011-2015, the investment banking group completed more than 350 merger-andacquisition transactions worth $95 billion in value, involving parties in 26 countries and
four continents, was an underwriter on more than 20% of all U.S. initial public offerings,
and raised more than $120 billion in public and private financing.

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