Food for Thought

Transcription

Food for Thought

Year-End Review
Food for Thought
Overview, Analysis, and Trends
in the Food and Food Retailing Industries
William Blair
Table of Contents
William Blair’s Industry Update – Calendar 2014 .......................................................................................................................................................................... 1
Selected Monthly M&A Activity – December ..................................................................................................................................................................................... 2
Noteworthy M&A Activity – LTM ............................................................................................................................................................................................................ 7
Historical M&A Trends in the Food and Food Retailing Industries .................................................................................................................................... 10
Volume Trends ......................................................................................................................................................................................................................................... 10
Participant Trends.................................................................................................................................................................................................................................. 11
Valuation Trends ..................................................................................................................................................................................................................................... 12
Public Company Trading Statistics...................................................................................................................................................................................................... 13
Food Production Companies ............................................................................................................................................................................................................. 13
Food Ingredients Companies ............................................................................................................................................................................................................ 14
Beverage Production Companies .................................................................................................................................................................................................... 14
Food Retail Companies......................................................................................................................................................................................................................... 15
Convenience Store Companies ......................................................................................................................................................................................................... 15
Same-Store Growth – Food & Convenience Retail ....................................................................................................................................................................... 16
U.S. Public Equity Financing Summary – LTM ............................................................................................................................................................................... 17
IPOs................................................................................................................................................................................................................................................................ 17
Follow-Ons ................................................................................................................................................................................................................................................. 17
Selected Upcoming Industry Events ................................................................................................................................................................................................... 18
General Market Update ............................................................................................................................................................................................................................. 20
Quarterly Market Update – All Industries........................................................................................................................................................................................ 20
Domestic M&A Market Summary ......................................................................................................................................................................................................... 21
U.S. Activity Trends ........................................................................................................................................................................................................................... 21
U.S. Valuation Trends ....................................................................................................................................................................................................................... 22
U.S. Equity Capital Markets Summary .......................................................................................................................................................................................... 23
Debt Capital Markets Summary ............................................................................................................................................................................................................ 24
William Blair Food & Beverage and Food Convenience & Retail Investment Banking.............................................................................................. 25
Recent William Blair Consumer & Retail Transactions ............................................................................................................................................................. 27
William Blair Consumer & Retail Coverage .................................................................................................................................................................................... 28
Notes .................................................................................................................................................................................................................................................................. 29
Disclosures ...................................................................................................................................................................................................................................................... 30
Food For Thought
Table of Contents
William Blair
William Blair’s Industry Update – Calendar 2014
Twelve months ago, we finished one of the most active years for food retail in over a decade. Both the M&A and equity
markets were particularly robust for food retailers, and we predicted that 2014 was going to continue that trend. While
the M&A market has shown continued strength, the publicly traded food retailers had a tougher time, as inflationary
pressures, particularly on beef and dairy, have in turn pressured margins, and competitive factors from within—and
outside—the food retail industry affect customer traffic and basket size.
M&A activity remained robust in food retail, and after a noticeable hiatus in convenience stores, headline M&A
transactions returned. Four notable food retail transactions hit the wires in 2014: 1) the sale of Safeway to Albertsons
in March for $8 billion; 2) the sale of Grocery Outlet to Hellman & Friedman from Berkshire Partners in September; 3)
the sale of Dean & DeLuca, an iconic brand in the upscale food retail market, to a Thai property developer, Pace
Development, in November for $144 million; and 4) the purchase of 146 Safeway, Vons, Pavilions, and Albertsons stores
by Haggen in December. The last transaction caught the industry by surprise, as Haggen, an 18-store operator in
Bellingham, Washington, backed by Comvest Partners, bought a surprising number of stores that were being divested
as a result of an FTC order to allow the Safeway/Albertsons transaction to proceed. This immediately makes Haggen a
player in the West Coast food retail market, with 164 stores in five states; it does not come without risk, however, as 83
of these stores are in highly competitive markets in California. In convenience stores, two transactions punctuated the
landscape, including the sale of Susser to Energy Transfer Partners, the parent company of the Sunoco brand, for $2.3
billion in April, and the sale of The Pantry to Couche-Tard for $1.7 billion in December.
In the capital markets, public food retailers faced headwinds from both rising food costs and strong competitive factors.
William Blair’s food retail group was down 4.3% for 2014, and some of the strongest performers of 2013 saw
headwinds affect their stock prices in 2014. Natural Grocers by Vitamin Cottage, which saw a 122% increase in 2013,
declined 33.6% in 2014, and Sprouts Farmers Market, up 110% following a very successful IPO in August 2013,
declined 11.6% in 2014. One anticipated IPO of 2014, Bi-Lo Holdings, the holding company for BI-LO and Winn-Dixie,
was also withdrawn in August. Most noticeably, the industry also saw meaningful change in the executive office, with
three public food retailers replacing their CEOs. Fairway Market appointed Jack Murphy, formerly CEO of Earth Fare, as
CEO in August to lead the turnaround of the iconic New York specialty food retailer. And coming right out of the
holidays, in January 2015 The Fresh Market announced that Craig Carlock was leaving as CEO and Bi-Lo Holdings
announced that Randall Onstead was stepping down March 1. He will be replaced by Ian McLeod, the former CEO of
Coles, an Australian food retailer.
As we look to 2015, we do not expect many headline M&A transactions in the sector, as the activity will be dominated
by market exits and smaller consolidations driven by market position, scale, and operating leverage. We also expect the
equity markets to be fairly quiet, though overall, we believe the industry to be very healthy, and following a down year
in 2014, we expect stock prices to appreciate as the U.S. consumer remains strong, food inflation pressures have abated,
and discretionary income is being increased, in part, by low gas prices.
Mike Siska
Managing Director, Consumer and Retail
+1 312 364 5393
[email protected]
Food For Thought
William Blair’s Industry Update – Calendar 2014 1
William Blair
Selected Monthly M&A Activity – December
Food & Beverage Producer Transactions
($ in millions)
Date
Announced
12/31/14
Target (Unit Sold)/
Target Business Description
China Minzhong Food Corporation
Producer and seller of fresh vegetables
Target
Nation
China
12/31/14
Inner Mongolia Mengniu Dairy Company
Manufacturer of dairy products
China
China Dairy (Mauritius)
Limited
12/30/14
THAMIRA
Manufacturer and distributor of food and beverage
products
Cyprus
12/30/14
Mount Shivalik Industries
Manufacturer and seller of beer in India
12/30/14
Buyer
Private Investor
Enterprise
Value
$271.5
Enterprise Value/LTM
Sales
0.61x
EBITDA
2.3x
$6,039.2
-
-
Handy Snacks
-
-
-
India
Mount Shivalik Packaging
-
-
-
Sump & Stammer
Producer and supplier of commercial food products
Germany
Transgourmet Holding
-
-
-
12/26/14
Ishiyamamiso Syouyu Inc.
Manufacturer of soy sauces and related products
Japan
Undisclosed Acquirer
-
-
-
12/25/14
Water Direct Corp. (73.4%)
Manufacturer and distributor of purified water
Japan
Hikari Tsushin Inc.
$55.2
0.76x
5.6x
12/25/14
Distant Lands Trading Co.
Roaster and distributor of coffee
United States
ITO EN (North America)
$83.2
0.06x
-
12/25/14
Country Pure Foods
Producer of fruit juices, soft drinks and spring water
United States
Sapporo Holdings Ltd;
Toyota Tsusho Corp.
$99.6
-
-
12/25/14
Syuyo Shoji Co.
Manufacturer of confectionery products
Japan
Taisei Co. (Fukuoka)
-
-
-
12/24/14
Henri Maire
Producer of wine
France
Boisset
-
-
-
12/24/14
Tovarna Olja
Producer and marketer of vegetable oils and fats
Slovenia
KD Group
-
-
-
12/24/14
International Confections
Manufacturer of sweets and chocolates
United States
Mrs. Fields Famous Brands
-
-
-
12/23/14
Dairy Holdings
Supplier of milk and dairy ingredients
New Zealand
-
-
-
12/23/14
Emmi Fondue (34%)
Switzerland
Emmi
-
-
-
12/22/14
Blue Buddha Beverages
Manufacturer of ready-to-drink teas
United States
Braintrust Investments
-
-
-
12/22/14
Lontrue Co. (9.9%)
Manufacturer and supplier of fruits, vegetables and nuts
China
Private Investor (Yang
Jianwei)
$504.9
3.83x
27.4x
12/22/14
Moulin D'Or
Manufacturer of bread and bakery products
Tunisia
-
-
-
12/22/14
Heinrich Nolke
Producer and seller of sausages in Germany
Germany
zur Mühlen ApS & Co.
-
-
-
12/19/14
Swartland Winery
Producer of wine
South Africa
Private Investor
-
-
-
12/19/14
NESTLÉ México (Helados Nestle)
Manufacturer of ice-cream
Mexico
Grupo Herdez
$68.2
-
-
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in December 2014
Sources: Dealogic and Capital IQ
Food For Thought
2 Selected Monthly M&A Activity – December
William Blair
Food & Beverage Producer Transactions (cont.)
($ in millions)
Date
Announced
12/19/14
Target (Unit Sold)/
Takizawa Ham Co. (15.4%)
Manufacturer of ham, sausages, and other processed
meat products
Target
Nation
Japan
Buyer
Itochu Corp.
12/19/14
Radenska
Producer of non-alcoholic beverages and soft drinks
Slovenia
Kofola Spolka Akcyjna
12/19/14
Agros-Nova
Processer and distributor of fruits and vegetables
Poland
Maspex GMW
12/19/14
Longwarry Food Park
Manufacturer of cheese, cream and milk
Australia
Parmalat Australia
12/18/14
La Rioja Alta (Winery located in Rioja Alta)
Producer of wine
Spain
Bodega Matarromera
12/18/14
Saputo Bakery Group
Manufacturer and marketer of snack-cakes and bakery
products
Canada
Canada Bread Company
12/18/14
Tagum Resources Agri Industries
Producer of bananas
Philippines
12/18/14
Bumble Bee Holdco
Manufacturer of canned and pouched seafood
12/18/14
Enterprise
Value
$64.2
Sales
0.26x
EBITDA
-
-
-
-
-
-
-
$66.7
0.91x
-
-
-
-
$103.4
-
-
HIJO Resources Corporation;
Black River Capital Partners
Food Fund Holdings
$13.2
-
-
Luxembourg
Thai Union Frozen Products
$749.9
0.75x
-
Tyris
Manufacturer and distributor of beer
Spain
Zriser
-
-
-
12/17/14
L’ Epi Bearnais
Operator of a bakery
France
Baghera Developpement
-
-
-
12/17/14
Bakkerij J.M. Smithuis
Producer of bakery products
Netherlands
Bakkerij Faber
-
-
-
12/17/14
Bodega del Narcea
Manufacturer of wine
Spain
Bodega Dominio del
Urogallo
-
-
-
12/17/14
Eskimo
Producer and distributor of milk, yoghurt, and related
dairy products
Nicaragua
Grupo Lala
-
-
-
12/17/14
Founders Brewing Co. (30%)
Brewer and marketer of beer
United States
Mahou
-
-
-
12/17/14
Henan Khong Guan Cereal & Oil Food Products Co.
(40.6%)
Manufacturer of edible oils
China
-
-
-
12/16/14
Sendai Coca-Cola Bottling Co.
Producer of soft drinks
Japan
Coca-Cola East Japan
$88.4
0.18x
-
12/16/14
Abafoods
Producer of organic beverages
Italy
Koninklijke Wessanen
$64.9
1.93x
-
12/16/14
Latterie Friulane
Italy
Lactalis Group
-
-
-
12/16/14
Dongbu Farm Gaya Co. (94.4%)
Manufacturer of soft drinks and juices
South Korea
Woongjin Foods
$13.5
-
-
12/15/14
Archer Daniels Midland (Global Cocoa Business)
Producer of cocoa
United States
Olam International
$1,300.0
-
-
12/12/14
Bahus (51%)
Producer of Vodka
Russian
Federation
Cormistar Management
-
-
-
12/12/14
PoViva Tea (51%)
Manufacturer of tea
Canada
Lexaria Corp.
-
-
-
Food For Thought
Selected Monthly M&A Activity – December 3
William Blair
($ in millions)
Date
Announced
12/12/14
Target (Unit Sold)/
Robertet Savoury
Manufacturer of food and beverage additives
Target
Nation
Belgium
Buyer
Nactis
12/12/14
Ege-Tav Ege Tarim Hayvancilik Yatirim Ticaret ve
Sanayi (60%)
Producer and distributor of poultry
Turkey
NH Foods
12/11/14
Handmade Cake Company
Producer and seller of handmade cakes
12/11/14
Enterprise
Value
-
-
EBITDA
-
$120.0
-
-
United Kingdom Europeenne des Desserts
-
-
-
Momokawa Brewing Inc.
Manufacturer of Japanese sake
Japan
Hakutsuru Sake Brewing Co.
-
-
-
12/10/14
Comercializadora Novaverde (66.7%)
Manufacturer and seller of canned fruits and vegetables
Chile
Angelini Group (Chile)
-
-
-
12/10/14
Hainan Tanniu Chicken Co. (10%)
Producer of chicken and related food products
China
Private Investor (Ms. Yu
Jiying)
$15.7
-
-
12/10/14
Great Lake Tomatoes
Producer and seller of tomatoes
New Zealand
Turners & Growers
$13.4
-
-
12/09/14
Nature Bev
United States
Producer and distributor of sports drinks and nutritional
beverages
CleanPath Resources Corp.
-
-
-
12/09/14
Xiamen Sunurt Marine Co.
Processer and distributor of seafood
China
Cnfc Overseas Fishery Co.
$38.5
0.77x
-
12/08/14
Cater Chain Food Services
Producer of meat products
South Africa
Famous Brands
-
-
-
12/08/14
Bio Distrifrais Chantenat
Wholesaler of fruits and vegetables
France
Private Investor
-
-
-
12/08/14
Gemacom Tech Industria e Comercio
Manufacturer of specialty food ingredients
Brazil
Tate & Lyle
-
-
-
12/05/14
Wine & Co.
Producer and seller of wine
France
Compagnie Financiere
Europeenne de Prises de
Participation
-
-
-
12/05/14
Bonjoe Gourmet Chips
Producer of gourmet potato chips
United States
Great Plains Holdings
-
-
-
12/05/14
Osaka Daiichi Rice Deal Co.
Wholesaler of rice related food products
Japan
Itochu Corp.
-
-
-
12/05/14
Tilly-Sabco
Manufacturer and processer of frozen meat products
France
M S Foods
-
-
-
12/05/14
McCleskey Mills
Provider of shelled peanuts
United States
Olam International
$179.0
-
-
12/05/14
J. Garcia Carrion (4%)
Manufacturer of fruit juices, soft drinks and wine
Spain
Private Investor
$482.3
-
-
12/04/14
F Delikappa Co. (45%)
Manufacturer of rice and sushi
Japan
Colowide Co.
-
-
-
12/04/14
Mentor Foods
Manufacturer of gluten free food
Brazil
Dr. Schar
-
-
-
12/04/14
Allan Candy Group
Manufacturer of chocolate and confectionery products
Canada
The Hershey Company
$24.6
-
-
12/04/14
Rudolf Schaer
Manufacturer of meats and meat products
Switzerland
Migros-GenossenschaftsBund
-
-
-
Food For Thought
Sales
William Blair
($ in millions)
Date
Announced
12/03/14
Target (Unit Sold)/
734 Citrus Holdings
Producer of oranges and citrus fruits
Target
Nation
United States
Buyer
Alico
Enterprise
Value
$72.0
12/03/14
Limestone Branch Distillery (50%)
Producer and seller of whiskey
United States
Luxco
12/03/14
Korea Food Services (14%)
Manufacturer of bread and bakery products
South Korea
Reyes Holdings
12/02/14
Embutidos Monells
Manufacturer and marketer of sausages and meat
processing products
Spain
12/02/14
Talenti Gelato
Manufacturer of ice-cream
12/01/14
Grant Burge Wines
Producer and distributor of wine in Australia
12/01/14
Razgulay Group (8.2%)
Russian
Manufacturer of sugar, grain, poultry, and dairy products Federation
Aton Group
12/01/14
Noon Pakistan Limited
Processer and seller of dairy products
Pakistan
12/01/14
Nissin-Universal Robina Corp. (24%)
Manufacturer and seller of instant noodles
12/01/14
Sales
-
EBITDA
-
-
-
-
$52.1
-
-
Grupo Alimentario Argal
-
-
-
United States
Unilever
-
-
-
Australia
Accolade Wines Australia
Holdings
-
-
-
$34.6
2.10x
-
Fauji Fertilizer Bin Qasim
-
-
-
Philippines
Nissin Foods Holdings
-
-
-
Prestige (99%)
Manufacturer of alcoholic beverages
Russian
Federation
Rosspirtprom
-
-
-
12/01/14
Kancor Ingredients
Manufacturer of spice extracts and food additives
India
V. Mane Fils
-
-
-
12/01/14
Summergate Fine Wines & Spirits
Provider of alcoholic beverages
China
Woolworths
$25.0
-
-
Food For Thought
Selected Monthly M&A Activity – December 5
William Blair
Food & Convenience Retail Transactions
($ in millions)
Target (Unit Sold)/
Target
Nation
Buyer
12/23/14
Super Sansho Co.
Operator of a chain of supermarkets
Japan
-
-
-
12/19/14
Supermarkets (3 supermarkets)
Japan
Aeon Co.
-
-
-
12/19/14
Safeway (12 stores in Texas)
Operator of a chain of grocery stores
United States
Associated Wholesale
Grocers
-
-
-
12/19/14
Supermarkets (146 Safeway, Vons, Pavilions, and
Albertsons stores)
United States
Haggen Inc.
-
-
-
12/19/14
Supermercados Montserrat (40%)
Owner and operator of a chain of supermarkets
Chile
Inversiones Fontibre
$109.5
-
-
12/19/14
Safeway (8 stores in Montana and Wyoming)
Operator of a chain of food retail stores
United States
Ridley's Food Corporation;
Stoke Market
-
-
-
12/19/14
Albertsons (2 stores in Washington)
Operator of grocery stores in Washington
United States
SUPERVALU
-
-
-
12/18/14
The Pantry
Operator of convenience stores that sell groceries and
other items
United States
Alimentation Couche-Tard
$1,725.4
0.26x
7.8x
12/18/14
Grupo Carrefour (10%)
Operator of hypermarkets
Brazil
Peninsula Participacoes
$6,602.6
-
-
12/17/14
Sunny Mart (16 convenience stores in Ehime and
Tokushima)
Operator of convenience stores
Japan
Lawson
-
-
-
12/16/14
Andy's Handy Store
Retail store operator that sells groceries and other items
United States
Private Investor
-
-
-
12/16/14
Super Daiei Co. (24%)
Japan
Izumi Co.
$29.0
0.15x
10.8x
12/12/14
Aadhaar Wholesale Trading and Distribution
Owner and operator of supermarkets in India
India
Future Consumer
Enterprise Limited
$26.6
1.26x
-
12/08/14
Kasumi Co.
Japan
-
-
-
Food For Thought
Enterprise
Value
Date
Announced
Sales
EBITDA
William Blair
Noteworthy M&A Activity – LTM
Food & Beverage Producer Transactions
($ in millions)
Enterprise
Value
Date
Announced
Target (Unit Sold)/
Target
Nation
12/31/14
Inner Mongolia Mengniu Dairy Company
China
China Dairy (Mauritius)
Limited
$6,039.2
-
-
12/15/14
Archer Daniels Midland Company (Global Cocoa
Business)
Producer of cocoa
United States
Olam International
$1,300.0
-
-
11/20/14
Primo Smallgoods
Producer of packaged meats
Australia
JBS
$1,255.4
-
-
11/06/14
DSS Group
Producer and distributor of bottled water
United States
Cott Corp.
$1,250.0
-
-
11/03/14
Centrale Laitiere
Producer and seller of packaged milk and dairy products
Morocco
Danone
$1,677.9
2.10x
17.1x
11/03/14
United Biscuits
Manufacturer and distributor of biscuits, snacks, and
frozen foods
United Kingdom Yildiz Holding
$3,199.2
-
-
10/20/14
Hainan Yedao Co. (11.2%)
Manufacturer of food and beverage products
China
China Orient Capital
Investment Group
$679.0
6.19x
-
10/06/14
Belvedere (7.3%)
Producer and marketer of alcoholic beverages
France
Diana Holding - Groupe
Zniber
$362.7
0.54x
NMF
09/10/14
Windsor Quality Food Company
Producer and marketer of frozen foods and appetizers
United States
Ajinomoto North America
$800.0
1.19x
-
09/08/14
Annie's
Producer of natural and organic foods
United States
General Mills
$821.2
3.95x
NMF
09/02/14
Archer Daniels Midland Company (Global Chocolate
Business)
Producer of chocolate
United States
Cargill
$440.0
-
-
08/21/14
Ebro Foods (2%)
Manufacturer of pasta, rice, and ready-to-eat food
Spain
Empresas Comerciales e
Industriales Valencianas
$3,589.8
1.37x
9.5x
08/15/14
Vietnam Dairy Products (2%)
Vietnam
Fraser & Neave
$4,534.6
2.90x
14.1x
08/11/14
Chiquita Brands International
United States
Producer and distributor of fruit and other fresh produce
Sucocitrico Cutrale;
Banco Safra, Investment Arm
$1,193.1
0.39x
13.6x
08/11/14
Treasury Wine Estates
Producer and distributor of wine
Australia
TPG Capital
$3,323.0
2.00x
14.2x
07/14/14
Russell Stover Candies
Manufacturer and marketer of sweets and chocolates
United States
Chocoladefabriken Lindt &
Spruengli
$1,400.0
-
-
07/07/14
WILD Flavors
Manufacturer of food ingredients and preservatives
Switzerland
Archer Daniels Midland
Europoort
$3,096.5
2.28x
-
06/30/14
CytoSport
Manufacturer of nutritional supplements
United States
Hormel Foods Corporation
$470.0
-
-
06/30/14
Flagstone Foods
Producer and distributor of dried fruits and nuts
United States
Treehouse Foods
$860.0
-
-
05/29/14
Hillshire Brands Co.
Manufacturer of consumer food and beverage products
United States
Tyson Foods
$8,533.5
2.10x
15.3x
05/22/14
Conopco (North America Pasta Sauces Business)
Producer of pasta sauce
United States
Mizkan Holdings
$2,150.0
3.60x
-
05/21/14
Tnuva Food Industries
Producer and distributor of dairy and frozen food
products
Israel
Bright Food (Group)
$1,711.2
-
-
Buyer
Sales
EBITDA
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve months
Food For Thought
Noteworthy M&A Activity – LTM 7
William Blair
($ in millions)
Target (Unit Sold)/
Target
Nation
Buyer
05/20/14
Treasury Wine Estates
Producer and distributor of wine
Australia
KKR & Co.
$3,188.3
1.90x
NMF
05/12/14
Pinnacle Foods
Manufacturer of convenience food products
United States
Hillshire Brands
$6,729.2
2.70x
15.2x
04/27/14
Goodman Fielder
Manufacturer and distributor of food ingredients
Australia
First Pacific Company
$1,698.4
0.84x
8.8x
04/25/14
Deoleo
Producer of cooking oils
Spain
CVC Capital Partners
$1,261.8
1.16x
12.5x
04/17/14
MFI Holding Corporation
Processer and distributor of commercial food products
United States
Post Holdings
$2,499.5
-
-
04/15/14
United Spirits
Manufacturer and seller of alcoholic beverages
India
Diageo
$1.895.8
4.88x
NMF
04/14/14
DIANA
Provider of organic and natural foods
France
Symrise
$1,796.2
2.88x
14.0x
03/17/14
Hearthside Food Solutions
Manufacturer of consumer baked foods and snacks
United States
Goldman Sachs Group,
Merchant Banking Division;
Vestar Capital Partners
$1,100.0
1.10x
-
03/14/14
Olam International
Supplier of food ingredients such as coffee, cocoa and
cashew nuts
Singapore
Temasek Holdings;
Kewalram Singapore
$11,546.7
0.73x
13.0x
03/10/14
Cloverhill Pastry-Vend
United States
Producer of baked goods primarily sold through vending
machines
Aryzta
$673.1
-
-
03/03/14
Nuova Castelli
Producer and distributor of dairy and canned tuna fish
products
Italy
Charterhouse Capital
Partners
$516.6
1.29x
10.1x
02/28/14
Sokolow
Processer of packaged meats such as canned hams,
kielbasa and pre-packaged sliced meats
Poland
Danish Crown
$492.6
-
-
02/20/14
Shree Renuka Sugars (26%)
Manufacturer of sugar
India
Wilmar International
$1,331.2
0.79x
11.9x
02/12/14
Canada Bread Co.
Manufacturer of flour based products
Canada
Grupo Bimbo
$1,487.6
1.06x
12.6x
01/20/14
Oriental Brewery Co.
Brewer and marketer of beer
South Korea
Anheuser-Busch InBev
$5,800.0
-
-
01/13/14
Tilda
Provider of basmati and specialty rice products
United Kingdom Hain Celestial Group
$357.7
-
-
01/13/14
Beam
Manufacturer and seller of distilled spirits
United States
$15,816.6
6.27x
20.4x
Suntory Holdings
Food For Thought
8 Noteworthy M&A Activity – LTM
Enterprise
Value
Date
Announced
Sales
EBITDA
William Blair
Food & Convenience Retail Transactions
($ in millions)
Enterprise
Value
Date
Announced
Target (Unit Sold)/
Target
Nation
Buyer
12/18/14
The Pantry
Operator of convenience stores that sell groceries and
other items
United States
$1,725.4
0.26x
7.8x
12/18/14
Grupo Carrefour (10%)
Operator of hypermarkets
Brazil
Peninsula Participacoes
$6,602.6
-
-
11/24/14
Dean & DeLuca
Operator of retail stores that sell gourmet specialty food
and beverage products
United States
Pace Development
Corporation
$140.0
-
-
11/07/14
Nature's Pantry
United States
Natural Grocers by Vitamin
Cottage
-
-
-
10/31/14
Maruetsu
Japan
Kasumi
$685.6
0.23x
7.5x
10/03/14
Migros Ticaret
Turkey
Anadolu Endüstri Holding
$2,705.4
0.79x
13.1x
09/30/14
Seijo Ishii Co.
Japan
Lawson
$501.4
1.01x
9.7x
09/16/14
Grocery Outlet Inc.
United States
Hellman & Friedman
-
-
-
08/11/14
Kinsho Store Co.
Japan
Kintetsu Corporation
$645.3
1.13x
-
07/02/14
Grupo El Árbol Distribución y Supermercados
Supermarkets operator
Spain
Distribuidora Internacional
de Alimentación
$205.9
0.18x
-
06/03/14
DIA France
France
Carrefour
$816.9
-
-
05/07/14
Roundy's (18 Rainbow Stores)
Operator of 18 retail stores
United States
SuperValu
$65.0
-
-
04/28/14
Susser Holdings Corporation
Operator of a chain of convenience stores
United States
Energy Transfer Partners
$2,320.3
0.37x
14.4x
04/11/14
SPAR Group
Operator of a chain of grocery and retail stores
South Africa
Allan Gray
$2,059.8
0.45x
13.0x
04/07/14
Carrefour
France
Motier
$1786.3
0.36x
12.2x
03/11/14
SPAR Ceska Obchodni Spolecnost
Czech Republic
Albert (Ahold)
$266.2
0.36x
-
03/10/14
Eataly
Italy
Tamburi Investment
Partners
$832.7
-
-
03/06/14
Safeway
Operator of a chain of stores offering a selection of food
and general merchandise
United States
Albertsons (Cerberus
Capital Management)
$8,198.9
-
13.5x
03/04/14
Wumart Stores
Operator of a retail chain of superstores
China
Wumei Holdings
$559.8
0.20x
4.4x
02/13/14
Sobeys (29 stores)
Canada
Overwaitea Food Group;
Federated Co-operatives
$391.0
-
-
02/11/14
Walmart Chile
Chile
Inversiones Australes Tres
Limitada
$7,575.8
1.36x
15.1x
01/31/14
Izumiya Co.
Operator of retail stores that sell groceries and other
items
Japan
H2O Retailing Corporation
$1,099.2
0.33x
11.6x
Sales
EBITDA
Food For Thought
Noteworthy M&A Activity – LTM 9
William Blair
Historical M&A Trends in the Food and Food Retailing Industries
Volume Trends
U.S. Monthly Announced M&A Activity
Food & Beverage Production
Number of Deals
Food Retail & Convenience
Number of Deals
20
30
17
20
15
22
19
15
17
13
14
15
15
17
18
12
10
0
10
5
01/14
2/14
03/14
04/14
05/14
06/14
07/14
08/14
09/14
10/14
11/14
12/14
13
15
12
17
16
12
12
13
14
14
11
12
4
7
3
2
1
1
0
1
1
1
6
6
0
10/10
11/10
12/10 Activity
1/11
U.S. Yearly
Announced
M&A
2/11
3/11
4/11
5/11
6/11
7/11
8/11
9/11
Total Deal Value (B)
Deal Value
Number
of Deals
($ in billions)
300
232
159
Number of Deals 200
250
200
150
100
50
0
10/11
181
223
170
166
127
129
159
189
185
194
100
2001
0
2002
2003
2003
2004
2004
2005
2006
2005
2006
2007
2008
2007
2009
2008
2010
2009
2010
2011
2011
2012
2013
2014
98
128
101
145
127
106
79
109
127
161
147
61
53
65
87
96
64
48
20
32
24
42
33
$7.9
$13.5
$11.5
$29.1
$33.3
$93.3
$20.5
$39.0
$13.9
$36.0
$43.2
$59.9
Total Deal Value
$120
Deal Value
$80
($ in billions)
$100.0
$40
$80.0
$60.0
$40.0
$20.0
$0.0
$0
161
Global Yearly Announced M&A Activity
Total Deal Value (B)
Number
of Deals
Deal Value
($ in billions)
1,500
Number of Deals
1,000
994
973
1,049
1,193
1,325
1,159
1,199
1,083
$200
979
926
932
$150
Deal Value
($ in billions)
$100
500
250
200
150
100
50
0
$100.0
$50
$80.0
$60.0
$40.0
$20.0
$0.0$0
0
2001
2002
2003
2003
2004
859
799
870
996
1104
135
174
179
197
221
$41.7
$61.1
$97.8
$94.9
$132.3
Total Deal Value
1,311
2004
2005
20062005 2007 20062008
2007
2009
2008
2010
2009
2011
1042
948
969
906
814
768
269
211
230
177
165
158
140
$140.5
$72.0
$94.2
$125.4
$127.4
$109.7
$134.2
Note: Data represents announced transactions including U.S.-based targets only
Sources: Dealogic and Capital IQ as of December 31, 2014
Food For Thought
10 Historical M&A Trends in the Food and Food Retailing Industries
20122010 2013 20112014
792
William Blair
Participant Trends
Breakdown of Acquirers by Type
Private
Public
Private Equity
Foreign
Percent of Deals
60%
50%
40%
30% of Deals
Percent
60.0%
20%
50.0%
40.0%
30.0%
10%
20.0%
10.0%
0.0%
0%
2001
2002
2003
2002
2004
2003
2005
2004
2006
2005
2007
2006
2008
2009
2007
2010
2008
2011
2009
2012
2010
2013
2011
YTD
2014
Private
43.0%
46.8%
44.1%
43.4%
51.9%
47.2%
50.0%
52.8%
49.5%
53.2%
56.0%
48.6%
47.2%
Public
25.6%
24.0%
27.7%
28.0%
19.6%
21.6%
20.3%
17.4%
18.1%
15.6%
19.5%
25.8%
21.6%
Private Equity
11.0%
11.0%
9.2%
10.1%
13.8%
17.2%
13.1%
13.0%
13.2%
12.2%
7.2%
13.6%
12.5%
Foreign
20.3%
18.2%
19.0%
18.5%
14.6%
14.0%
16.7%
16.8%
19.1%
19.0%
17.3%
12.0%
18.8%
Breakdown of Sellers by Type
Private
Public
Private Equity
Divestiture
Percent of Deals
70%
60%
50%
40%
Percent of Deals
30%
70.0%
60.0%
20%
50.0%
40.0%
30.0%
20.0%
10%
10.0%
0.0%
0%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2011
YTD
2014
Private
50.0%
30.1%
46.4%
53.1%
50.5%
57.2%
46.3%
53.0%
49.7%
47.1%
53.4%
55.2%
53.4%
Public
2.5%
3.3%
6.4%
5.6%
2.0%
1.7%
3.7%
5.1%
6.1%
4.8%
2.5%
4.9%
7.4%
Private Equity
4.2%
17.1%
7.9%
9.1%
12.4%
8.1%
8.0%
8.5%
14.0%
5.3%
8.1%
7.8%
8.0%
43.2%
49.6%
39.3%
32.2%
35.1%
32.9%
42.0%
33.3%
30.2%
42.8%
36.0%
32.1%
31.3%
Divestiture
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Note: Data represents announced transactions including U.S.-based targets only
Sources: Dealogic and Capital IQ as of December 31, 2014
Food For Thought
Historical M&A Trends in the Food and Food Retailing Industries 11
William Blair
Valuation Trends
Average EBITDA Multiples for Food Transactions(1)
Average EV/EBITDA Multiple
Number of Disclosed Deals
EV/EBITDA Multiple
20.0x
40
35
15.0x
14.0x
12.0x
10.0x
8.0x
6.0x
4.0x
2.0x
0.0x
12.0x
8.7x
10.0x
2000
8.6x
8.6x
2001
8.4x
9.1x
11.4x
9.1x
13.2x
11.4x12.0x
12.0x
9.9x
10.4x
9.9x
8.4x
2002
2003
2004
2005
2006
10.4x
9.3x
2007
11.8x
9.3x
13.0x
11.8x
8.2x
30
25
20
15
10
5
0
8.2x
2008
2009
2010
30
13.0x
YTD 2011
25
20
15
5.0x
10
5
0.0x
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
8.6x
8.4x
9.1x
11.4x
9.9x
12.0x
10.4x
9.3x
8.2x
11.8x
13.2x
13.0x
13.0x
20
25
20
14
28
23
20
14
11
7
17
22
34
Average EBITDA Multiples for Beverage Transactions(2)
EV/EBITDA Multiple
25.0x
20
20.0x
17.3x
15.0x
20.0x
15.0x
10.0x
5.0x
0.0x
11.8x
14.1x
12.0x
15
13.6x
13.4x
13.5x
14.5x
12.9x
10.1x
9.5x
10.0x
9.5x
11.8x
14.1x
12.0x
13.5x
11.7x
13.4x
10.9x
17.3x
11.7x
9.8x
10.9x
9.8x
2000
2002
2003
2004
2005
2006
2007
2008
2009
2010
YTD
2011
2001
11.8x
5.0x
18
16
14
12
1
8
6
4
20
0
5
0.0x
10
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
9.5x
11.8x
14.1x
12.0x
13.5x
13.4x
17.3x
11.7x
10.9x
9.8x
13.6x
14.5x
11.8x
15
9
16
12
15
5
4
9
1
3
6
4
13
(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, 2014
Food For Thought
12 Historical M&A Trends in the Food and Food Retailing Industries
William Blair
Public Company Trading Statistics
Food Production Companies
($ in millions)
Company
Nestlé
Unilever
% Change
Market Cap
MTD
$234,344.8
(2.2%)
Forward
0.1%
NA
NA
Enterprise
Value
$258,229.9
YTD
P/E
PEG
Sales
2.55x
EBITDA
13.6x
$116,325.8
(3.2%)
(0.4%)
17.2x
172.1%
$129,810.6
1.96x
11.7x
Mondelez International
$61,023.2
(7.3%)
2.9%
18.3x
170.1%
$77,233.2
2.21x
15.0x
Danone
$39,499.0
(6.6%)
(8.5%)
16.0x
184.6%
$51,575.1
1.82x
12.0x
Associated British Foods
$38,656.7
(1.9%)
21.3%
28.1x
290.1%
$39,893.7
1.90x
15.6x
General Mills
$32,197.9
1.1%
6.9%
17.8x
226.8%
$43,177.9
2.43x
13.0x
Kellogg Company
$23,233.4
(1.2%)
7.2%
15.4x
197.6%
$30,581.4
2.10x
8.1x
The Hershey Company
$22,955.0
3.6%
6.9%
23.0x
270.1%
$24,900.6
3.38x
15.5x
ConAgra Foods
$15,452.3
(0.7%)
7.7%
15.7x
236.0%
$23,919.2
1.35x
10.1x
Tyson Foods
$15,041.9
(5.3%)
19.8%
13.5x
159.3%
$22,794.9
0.61x
10.9x
Campbell Soup Company
$13,787.1
(2.8%)
1.7%
17.2x
286.9%
$17,605.1
2.13x
11.3x
Hormel Foods Corporation
$13,735.5
(1.8%)
15.3%
23.3x
273.9%
$13,657.7
1.50x
13.2x
Grupo Bimbo
$12,967.5
(1.9%)
(10.2%)
23.1x
51.4%
$17,319.7
1.26x
11.6x
JBS
$12,197.6
(9.5%)
13.5%
11.4x
NA
$23,360.7
0.51x
6.1x
Saputo
$11,779.0
3.8%
32.4%
9.6x
95.9%
$13,602.9
1.50x
14.0x
George Weston
$11,096.3
(1.9%)
18.8%
15.9x
158.8%
$28,733.0
0.86x
16.4x
The J. M. Smucker Company
$10,281.5
(1.6%)
(2.5%)
16.1x
208.0%
$12,596.4
2.29x
10.6x
McCormick & Company
$9,615.4
0.0%
7.8%
22.5x
272.7%
$10,899.5
2.57x
15.0x
Pilgrim's Pride Corporation
$8,493.6
1.5%
101.8%
45.5x
NA
$8,130.4
0.95x
6.9x
ARYZTA
$6,830.4
(2.9%)
0.9%
13.3x
45.1%
$9,167.5
1.42x
10.3x
The Hain Celestial Group
$5,882.6
3.0%
28.4%
17.0x
114.6%
$6,677.4
2.89x
23.7x
Flowers Foods
$4,028.5
(1.6%)
(10.6%)
16.3x
152.6%
$4,837.0
1.30x
11.4x
Treehouse Foods
$3,620.2
5.7%
24.1%
21.3x
199.8%
$5,151.7
1.91x
15.2x
Lancaster Colony Corporation
$2,560.4
(0.3%)
6.2%
22.8x
207.7%
$2,332.8
2.22x
13.6x
Tootsie Roll Industries
$2,444.4
5.2%
(3.0%)
NA
NA
$2,372.2
4.38x
23.4x
Snyder's-Lance
$2,146.8
0.9%
6.6%
21.7x
144.6%
$2,484.3
1.36x
12.9x
J&J Snack Foods Corp.
$2,030.4
3.5%
22.8%
28.5x
317.2%
$1,939.2
2.11x
13.4x
Sanderson Farms
$1,945.3
(3.2%)
16.2%
9.2x
NA
$1,799.7
0.66x
4.8x
Cal-Maine Foods
$1,888.3
(6.8%)
29.6%
8.1x
NA
$1,743.9
1.18x
8.0x
Fresh Del Monte Produce
$1,887.4
(0.6%)
18.6%
14.0x
279.6%
$2,029.8
0.52x
8.7x
Post Holdings
$1,879.2
4.7%
(15.0%)
45.6x
569.9%
$5,507.4
3.32x
22.4x
Dean Foods Company
$1,818.3
13.7%
12.7%
18.1x
245.9%
$2,766.1
0.29x
12.6x
B&G Foods
$1,604.5
4.5%
(11.8%)
16.6x
NA
$2,643.9
3.22x
14.1x
Diamond Foods
$886.9
(5.2%)
9.2%
33.1x
300.7%
$1,534.6
1.77x
18.8x
Lotus Bakeries
$882.0
(1.5%)
14.9%
18.2x
181.9%
$959.7
2.06x
12.1x
Calavo Growers
$818.0
10.2%
56.3%
29.4x
255.4%
$846.0
1.10x
20.2x
Chiquita Brands International
$681.2
0.0%
23.6%
13.0x
325.7%
$1,275.7
0.41x
12.7x
Boulder Brands
$676.1
2.4%
(30.3%)
19.3x
110.0%
$965.8
1.88x
14.1x
John B Sanfilippo & Son
$503.5
8.8%
84.4%
NA
NA
$560.6
0.69x
9.8x
Seneca Foods Corp.
$300.5
(0.1%)
(15.2%)
NA
NA
$638.0
0.48x
18.3x
Inventure Foods
$248.9
(7.7%)
(3.9%)
18.5x
135.4%
$337.1
1.24x
14.9x
Bridgford Foods Corp.
$70.7
1.3%
(19.1%)
NA
NA
$69.7
0.53x
NMF
Golden Enterprises
$41.5
(8.7%)
(13.8%)
NA
NA
$47.5
0.35x
7.5x
Mean
(0.3%)
11.0%
19.8x
213.8%
$21,086.3
1.66x
13.2x
Median
(0.7%)
7.2%
17.8x
203.8%
$5,507.4
1.50x
13.0x
Note: Data as of December 31, 2014
Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
Food For Thought
Public Company Trading Statistics 13
William Blair
Food Ingredients Companies
($ in millions)
Company
% Change
Market Cap MTD
Forward
YTD
P/E
Enterprise
Value
PEG
Sales
EBITDA
Givaudan
$16,616.2
1.3%
26.2%
22.3x
185.6%
$17,817.9
3.65x
17.8x
Kerry Group
$12,144.6
(6.9%)
(0.7%)
16.5x
145.4%
$13,688.1
1.73x
14.4x
International Flavors & Fragrances
$8,207.3
0.2%
17.9%
18.4x
262.6%
$8,750.6
2.86x
13.0x
Symrise
$7,876.9
1.5%
31.5%
22.5x
169.7%
$9,442.4
3.75x
18.1x
Barry Callebaut
$5,637.1
(3.9%)
(18.1%)
17.6x
80.5%
$7,613.2
1.19x
13.8x
Sensient Technologies Corporation
$2,905.8
2.4%
24.4%
18.5x
194.5%
$3,340.6
2.29x
12.4x
Frutarom Industries
$1,804.5
19.8%
46.9%
20.4x
NA
$1,973.7
2.60x
14.8x
T. Hasegawa Co.
$589.3
0.7%
3.0%
15.6x
NA
$400.2
0.89x
5.4x
Takasago International Corporation
$451.2
(1.4%)
(19.2%)
11.2x
NA
$774.6
0.60x
8.6x
Mean
1.5%
12.4%
18.1x
173.1%
$7,089.0
2.17x
13.1x
Median
0.7%
17.9%
18.4x
177.7%
$7,613.2
2.29x
13.8x
Beverage Production Companies
($ in millions)
Company
% Change
Market Cap
MTD
Forward
YTD
P/E
Enterprise
Value
PEG
Sales
EBITDA
The Coca-Cola Company
$184,928.4
(5.8%)
2.2%
18.9x
229.3%
$203,247.4
4.40x
15.5x
Anheuser-Busch InBev
$182,555.5
(3.3%)
6.8%
19.1x
152.4%
$229,221.5
4.90x
12.7x
Pepsico
$141,519.1
(5.5%)
14.0%
19.3x
235.0%
$161,334.1
2.41x
12.6x
SABMiller
$84,173.2
(6.0%)
2.0%
18.6x
145.7%
$98,946.2
5.83x
16.9x
Diageo
$72,196.0
(7.0%)
(13.0%)
16.8x
163.7%
$88,701.6
5.06x
15.2x
Keurig Green Mountain
$21,449.3
(6.9%)
75.3%
34.6x
191.5%
$20,882.3
4.44x
17.3x
Constellation Brands
$18,965.4
1.8%
39.5%
21.8x
163.1%
$26,058.7
4.44x
15.3x
Brown-Forman Corporation
$18,564.9
(9.5%)
16.2%
24.6x
NA
$19,451.9
6.37x
19.2x
Monster Beverage Corporation
$18,163.6
(3.4%)
59.9%
36.6x
261.7%
$17,167.2
7.15x
23.8x
Dr Pepper Snapple Group
$13,935.2
(3.1%)
47.1%
19.5x
264.1%
$16,210.2
2.67x
11.1x
Molson Coors Brewing Company
$13,876.5
(3.7%)
32.7%
17.2x
224.8%
$16,635.7
3.96x
20.2x
Coca-Cola Enterprises
$10,689.5
0.6%
0.2%
13.7x
152.6%
$14,619.5
1.75x
10.2x
The WhiteWave Foods Company
$6,100.8
(4.5%)
52.5%
30.5x
174.1%
$7,430.0
2.32x
20.3x
Boston Beer Co.
$3,782.5
10.1%
19.7%
39.7x
NA
$3,725.9
4.18x
20.9x
National Beverage Corp.
$1,048.3
(10.0%)
12.2%
NA
NA
$1,021.1
1.60x
12.7x
Coca-Cola Bottling Co.
$816.2
(6.9%)
20.3%
24.1x
NA
$1,369.7
0.81x
11.0x
Cott Corporation
$643.3
5.0%
(14.1%)
14.7x
NA
$1,211.3
0.59x
6.9x
Farmer Brothers Co.
$471.2
3.3%
26.6%
29.1x
145.6%
$455.1
0.85x
14.7x
Lifeway Foods
$302.9
0.1%
16.0%
35.6x
222.7%
$306.3
2.66x
NMF
Jones Soda Co.
$14.3
(16.7%)
(27.1%)
NA
NA
$13.8
1.04x
NMF
Mean
(3.6%)
19.5%
24.1x
194.7%
$46,400.5
3.37x
15.4x
Median
(4.1%)
16.1%
20.6x
182.8%
$16,422.9
3.31x
15.3x
Food For Thought
14 Public Company Trading Statistics
William Blair
Food Retail Companies
($ in millions)
Company
% Change
Market Cap
MTD
Forward
YTD
P/E
Enterprise
Value
PEG
Sales
EBITDA
The Kroger Co.
$31,547.9
7.3%
62.4%
18.2x
202.1%
$42,844.9
0.41x
9.1x
Whole Foods Market
$18,151.7
2.8%
(12.8%)
31.9x
178.0%
$17,470.7
1.23x
13.2x
Safeway
$8,095.2
0.8%
7.8%
29.4x
319.4%
$9,497.7
0.26x
6.0x
Sprouts Farmers Market
$5,140.4
6.9%
(11.6%)
40.3x
NA
$5,406.5
1.90x
22.1x
United Natural Foods
$3,866.4
2.8%
2.6%
29.0x
189.7%
$4,396.3
0.65x
16.8x
SUPERVALU
$2,532.8
3.6%
33.1%
14.5x
NA
$5,199.8
0.30x
6.5x
The Fresh Market
$1,995.9
0.6%
1.7%
22.7x
114.4%
$2,006.0
1.22x
11.6x
Weis Markets
$1,286.3
3.7%
(9.0%)
NA
NA
$1,191.8
0.43x
7.5x
Smart & Final Stores(1)
$1,149.5
0.4%
31.1%
21.5x
NA
$1,629.7
0.49x
10.7x
SpartanNash Company
$980.1
12.0%
7.7%
13.4x
133.8%
$1,529.0
0.21x
7.6x
Ingles Markets
$751.4
36.7%
36.9%
18.1x
160.1%
$1,680.1
0.44x
7.8x
Natural Grocers by Vitamin Cottage
$633.5
25.3%
(33.6%)
43.5x
164.0%
$650.3
1.30x
16.6x
Village Super Market
$384.8
14.0%
(11.7%)
NA
NA
$362.2
0.24x
7.0x
Roundy's
$233.1
20.1%
(50.9%)
12.3x
46.2%
$843.4
0.20x
6.0x
Fairway Group Holdings Corp.
$136.9
(15.1%)
(82.7%)
NMF
NA
$356.3
0.45x
12.1x
Mean
8.1%
(4.3%)
24.6x
167.5%
$6,337.6
0.65x
10.7x
Median
3.7%
(3.7%)
22.1x
164.0%
$1,680.1
0.44x
9.1x
Convenience Store Companies
($ in millions)
Company
% Change
Market Cap
MTD
Forward
YTD
P/E
Enterprise
Value
PEG
Sales
EBITDA
$23,990.1
18.5%
67.7%
27.9x
NA
$25,655.3
0.67x
15.8x
$3,488.8
7.9%
28.6%
22.5x
202.4%
$4,271.1
0.58x
11.3x
$868.8
39.6%
120.9%
162.8x
1479.6%
$1,720.5
0.25x
8.5x
Mean
22.0%
72.4%
71.1x
841.0%
$10,549.0
0.50x
11.9x
Median
18.5%
67.7%
27.9x
841.0%
$4,271.1
0.58x
11.3x
Casey's General Stores
The Pantry
(1) Company had an initial public offering in 2014 – performance over pricing
Food For Thought
Public Company Trading Statistics 15
William Blair
Same-Store Growth – Food & Convenience Retail
Grocery Stores & Supermarkets
9.0%
Smart & Final Stores
6.6%
Kroger(1)
5.6%
Publix Super Markets
5.0%
3.7%
The Fresh Market
3.3%
Whole Foods Market
3.1%
Weis Markets
2.6%
Safeway(1)
1.8%
Village Super Market
1.6%
Ingles Markets
0.9%
SpartanNash
0.4%
SUPERVALU
0.4%
Roundy's
(2.7%)
Fairway Group Holdings
(3.9%)
Convenience Stores
Casey's General Stores
6.6%
2.8%
The Pantry
2.5%
(1) Excludes fuel sales
Note: Bolded companies reflect recently announced same-store sales data (announced in December 2014)
Note: Data represents growth in the most recent reported fiscal quarter over the year-ago period
Sources: Company filings and Capital IQ as of December 31, 2014
Food For Thought
16 Same-Store Growth – Food & Convenience Retail
William Blair
U.S. Public Equity Financing Summary – LTM
IPOs
($ in millions)
At Filing
Initial
Filing
Date
Offer
Date
Ticker
Issuer
Shares/
ADS Exc.
Ovl.
06/20/14
09/23/14
SFS
Smart & Final Stores
13.5
At Pricing
Filing
Range
$12.00 $14.00
Pricing & Performance - % Change Offer/
Deal
Shares/
Value at ADS Inc.
Midpoint Ovl.
Offer
Price
Deal
Value
175.5
$12.00
$186.0
15.5
Market
Value
$852.7
Relative
to Range 1 Day
In Range
1 Month 3 Months Current
4.2%
9.2%
29.2%
31.1%
Mean
4.2%
9.2%
29.2% 31.1%
Median
4.2%
9.2%
29.2% 31.1%
Follow-Ons
($ in millions)
Pricing Performance - % Change
% Shares Offered
Shares/
ADS Offered Offer
(mm)
Price
Deal Value
(mm)
Primary
Last Trade Before
Pricing
Date
Ticker Issuer
Business Description
Filing/
Secondary Offer
Offer/
Offer
Offer/
Current
11/17/14
PF
Pinnacle Foods
Manufacturer and marketer of convenience
food products
20.0
$32.11
$642.2
0%
100%
4.8%
4.8%
9.9%
11/10/14
SFM
Specialty retailer of natural and organic
food
15.0
$29.38
$440.7
0%
100%
7.9%
7.9%
15.7%
09/11/14
SNAK
Inventure Foods
Manufacturer and marketer of natural snack
food products
3.6
$12.85
$46.2
0%
100%
(9.7%)
(4.6%)
(0.9%)
09/08/14
PF
Pinnacle Foods
food products
15.0
$31.90
$478.5
0%
100%
6.0%
6.0%
10.7%
08/12/14
SFM
food
15.0
$30.00
$450.0
0%
100%
5.6%
8.5%
13.3%
07/30/14
TSN
Tyson Foods
Producer and distributor of chicken and
related food products
23.8
$37.80
$900.0
100%
0%
5.4%
3.6%
12.3%
07/16/14
THS
Treehouse Foods
Manufacturer and distributor of food and
beverage products
4.3
$75.50
$325.0
100%
0%
4.0%
2.2%
13.3%
05/21/14
POST
Post Holdings
food products
5.5
$47.70
$262.4
100%
0%
(1.6%)
(2.5%)
(12.2%)
03/27/14
SFM
food
15.0
$33.75
$506.3
0%
100%
12.5%
4.5%
0.7%
03/12/14
POST
Post Holdings
food products
5.0
$55.00
$275.0
100%
0%
8.1%
(0.1%)
(23.8%)
02/03/14
RNDY
Roundy's
Operator of a supermarket chain in the
Midwest
8.8
$7.00
$61.9
33%
67%
25.9%
21.1%
(30.9%)
Mean
6.3%
4.7%
0.7%
Median
5.6%
4.5%
9.9%
Sources: Dealogic and FactSet Research Systems
Note: LTM as of December 31, 2014
Food For Thought
U.S. Public Equity Financing Summary – LTM 17
William Blair
Selected Upcoming Industry Events
Date
Event
Location
11-13
Winter Fancy Food Show
San Francisco, CA
12-14
NW Food Manufacturing & Packaging Exposition
Portland, OR
14-15
MarcabyBolognaFiere
Bologna, Italy
18-20
Retail Industry Leaders Association – The Leadership Forum
Amelia Island, FL
24-27
FMI’s Midwinter Executive Conference
Miami Beach, FL
27-29
International Production & Processing Expo
Atlanta, GA
1-6
NAFDMA Convention
Nashville, TN
4-6
Convenience Retailing University
Dallas, TX
8-11
N.G.A. 2015 Annual Convention and Supermarket Synergy Showcase
Las Vegas, NV
15-18
IFA’s Annual International Franchise Convention
Las Vegas, NV
16-19
NCA State of the Industry Conference
Miami, FL
21-25
AFFI Frozen Food Convention
Anaheim, CA
22-24
AMI Foundation Annual Meat Conference
Nashville, TN
22-25
RILA Supply Chain Conference
Orlando, FL
24-26
Snack, Beverage & Grocery EPPS
Jacksonville, FL
2-4
FMI Annual Business Conference
Chicago, IL
5-8
Natural Products Expo West
Anaheim, CA
9-12
FMI Asset Protection Conference
Memphis, TN
15-17
Seafood Expo North America & Seafood Processing North America
Boston, MA
22-25
Restaurant Leadership Conference
Scottsdale, AZ
22-26
NACS Global Forum
Singapore
22-26
AFFI Annual Food and Beverage Environmental Conference
Point Clear, Ala
28-1
American Bakers Association Annual Convention
Orlando, FL
12-15
Grocery Manufacturers Association Science Forum
National Harbor, MD
14-16
NACS State of the Industry Summit
Chicago, IL
15-16
NGA Day in Washington (NGA, FMI and FIAE)
Washington, DC
3-6
RILA Asset Protection Conference
Orlando, FL
3-6
FMI’s 2015 Financial Executive Conference and Internal Auditing Conference (Co-Located)
New Orleans, LA
16-19
NRA Restaurant Hotel Motel Show
Chicago, IL
18-20
CSP Leadership and Crisis Prevention Forum
Denver, CO
19-20
PLMA’s Annual “World of Private-Label”
Amsterdam
19-21
NCA Sweets & Snacks Expo
Chicago, IL
31-Jun 2
AFFI Food Logistics Forum
Incline Village, NV
31-Jun 4
NGA Leadership Development Program (Cornell)
Ithaca, NY
January 2015
February 2015
March 2015
April 2015
May 2015
Food For Thought
18 Selected Upcoming Industry Events
William Blair
Date
Event
Location
7-9
International Dairy Deli Bakery Association Annual Convention "Dairy-Deli-Bake"
Atlanta, GA
7-11
NGA Leadership Development Program (USC)
Los Angeles, CA
7-12
Insight NACS Future of Convenience
London, UK
8-11
United Fresh 2015
Chicago, IL
9-11
FMI Connect
Chicago, IL
22-24
Foodservice at Retail Expo 2015
Nashville, TN
28-29
TRA Marketplace (formerly Southwest Foodservice Expo)
Dallas, TX
28-30
NASFT – Summer International Fancy Food & Confection Show
New York, NY
20-23
NBJ Summit
Dana Point, CA
26-28
The International Foods Planning
TBD
27-29
Center Store Grocery, Snack & Beverage Planning
TBD
NACDS Total Store Expo
Denver, CO
1-2
Food Evolution Summit
Phoenix, AZ
15-18
RILA Retail Sustainability Conference
Austin, TX
16-18
NCA Washington Forum
Washington D.C
17-19
All Things Organic - BioFach America
Baltimore, MD
17-20
Natural Products Expo East
Baltimore, MD
20-22
MUFSO Conference
Dallas, TX
20-23
Candy Annual Planning
Chandler, AZ
28-29
Canadian Federation of Independent Grocers-Grocery Innovations
Toronto, Canada
10-13
National Frozen and Refrigerated Foods Convention
Dallas, TX
11-14
NACS Show
Las Vegas, NV
13-15
Shopper Marketing Expo
Minneapolis, MN
15-18
PROCESS EXPO
Chicago, IL
18-20
Consumer Goods Forum: Future Leaders Congress
Rio De Janeiro, Brazil
23-25
Fresh Summit International Convention & Exposition
Atlanta, GA
26-27
IFE Americas Food & Beverage Show
Miami, FL
28-29
National Chicken Council - Annual Conference
Washington, DC
10-11
Kosherfest
Secaucus, NJ
14-16
Outlook Leadership 2015 (CSP)
TBD
15-17
PLMA's Private Label Trade Show
Chicago, IL
SOHO Expo
Orlando, FL
June 2015
July 2015
August 2015
22-25
September 2015
October 2015
November 2015
December 2015
3-6
Food For Thought
Selected Upcoming Industry Events 19
William Blair
General Market Update
Percentage Change
As of
12/31/14
Month-to-Date
Year-to-Date
Equity Market Indices
Dow Jones Industrial Average
$17,823.07
(0.0%)
7.5%
Nasdaq Composite
$4,736.06
(1.2%)
13.4%
S&P 500
$2,058.90
(0.4%)
11.4%
S&P Food Products Index
$495.06
(2.1%)
10.1%
S&P Food & Staples Retail Index
$384.56
2.7%
21.0%
S&P Restaurants Index
$839.34
(0.7%)
4.3%
WB Corporate Finance Indices(1)
Food Index
$850.92
0.4%
16.9%
Ingredients Index
$966.46
2.1%
25.7%
$4,171.71
(5.1%)
7.5%
$971.95
4.9%
20.7%
Convenience Store Index
$26,227.59
19.1%
77.2%
Currencies
Dollar to Canadian Dollar
Dollar to Euro
Dollar to Peso
$1.16
$0.83
$14.74
1.6%
3.0%
6.0%
9.0%
13.9%
12.5%
$0.64
0.4%
6.2%
$1.67
$3.97
$0.16
$2,910.00
$53.27
$0.32
$0.15
(11.1%)
2.1%
(11.6%)
2.4%
(19.5%)
(0.5%)
(6.9%)
50.5%
(5.9%)
(17.7%)
7.4%
(45.9%)
(17.9%)
(11.5%)
$5.90
1.9%
(2.6%)
Beverage Index
Food Retail Index
Dollar to Pound
Commodities(2)
Coffee Beans (Cents and 1/100 of a Cent Up to 2 Decimal Places)
Corn (Cents per Bushel)
Milk (Cents per 2,000 lbs.)
Cocoa (Dollars per Metric Ton)
Oil (Dollars per Barrel)
Soybean Oil (Cents per Bushel)
World Sugar (Cents and 1/100 of a Cent up to 2 Decimal Places)
Wheat (Cents per Bushel)
Yield (%) 52-Week Range
As of
12/31/14
52-Week
Low
0.0%
INTEREST RATES
10-Year Treasury
30-Year Treasury
3-Month LIBOR
Fed Funds Effective Rate
Prime Rate
2.2%
2.7%
0.3%
0.1%
3.3%
2.1%
2.7%
0.2%
0.1%
3.3%
52-Week
High
Latest
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
3.0%
3.9%
0.3%
0.1%
3.3%
(1) WB Corporate Finance indices are determined by FactSet Research Systems, as of December 31, 2014. Data is based on a weighted average by market capitalization calculation.
(2) Commodities represent futures prices
Source: FactSet Research Systems as of December 31, 2014
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
Food For Thought
20 General Market Update
Quarterly Market
Update – All
Industries
William Blair
Domestic M&A Market Summary
U.S. Activity Trends
M&A Activity
Undisclosed
Number of Deals
18,000
12,000
6,000
0
Middle Market
12,420
13,340
11,488
2006
2007
2008
>$750M
Deal Value
12,749
13,397
14,643
2010
2011
2012
Deal Value
($ in billions)
12,198
12,713
2013
2014
8,792
9,934
10,087
2003
2004
2005
>$750M
147
233
281
362
460
228
156
287
262
301
310
372
Mid-Cap
4,239
4,527
4,453
4,548
4,537
4,766
4,144
6,224
5,360
5,153
4,258
3,880
Undisclosed
4,406
5,174
5,353
7,510
8,343
6,494
5,075
6,238
7,775
9,189
7,630
8,461
Deal Value
$688
$992
$1,297
$1,647
$1,750
$1,075
$886
$1,048
$1,174
$1,080
$1,242
$1,806
9,375
2009
$1,800
$1,200
$600
$0
Number of Deals
Mid-Cap M&A Activity
<$50M
Number of Deals
10,000
4,239
4,527
4,453
4,548
4,537
$50-250M
4,766
$250 -750M
4,144
6,224
5,360
Deal Value
5,153
4,258
Deal Value
($ in millions)
3,880
$600
$400
$200
0
$0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Number of Deals
$250M-$750M
314
402
424
536
627
417
269
457
475
463
523
504
$50M-$250M
1,065
1,218
1,265
1,294
1,333
1,195
791
1,138
1,148
1,148
1,094
1,137
<$50M
2,860
2,907
2,764
2,718
2,577
3,154
3,084
4,629
3,737
3,542
2,641
2,239
Deal Value
$292
$351
$364
$421
$466
$355
$239
$370
$383
$378
$386
$381
Private-Equity Activity
Undisclosed
Number of Deals
5,000
1,200
1,646
1,812
2004
2005
Middle Market
>$750M
Deal Value
Deal Value
($ in billions)
$800
2,247
2,316
1,821
1,462
2006
2007
2008
2009
1,976
2,035
2,164
2010
2011
2012
1,888
2,156
2013
2014
115
0
$400
$0
2003
Number of Deals
>$750M
33
61
84
106
149
64
34
94
88
92
93
Mid-Cap
626
906
859
998
826
788
742
869
698
688
557
534
Undisclosed
541
679
869
1,143
1,341
969
686
1,013
1,249
1,384
1,238
1,507
Deal Value
$120.4
$224.6
$287.6
$523.7
$644.3
$243.7
$149.3
$272.3
$268.6
$262.1
$307.5
$382.5
Note: Year-to-date as of December 31, 2014
Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis. Data represents announced deals only
Food For Thought
Domestic M&A Market Summary 21
William Blair
U.S. Valuation Trends
Median EV/EBITDA Multiples
Middle Market
Overall Market
15.0x
12.0x
9.0x
6.0x
3.0x
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Mid-Cap
7.5x
7.4x
8.7x
10.1x
10.0x
9.5x
7.9x
6.4x
9.3x
10.0x
9.1x
9.9x
10.2x
Overall Market
7.9x
8.0x
9.1x
10.3x
11.0x
11.2x
9.0x
7.4x
9.9x
10.8x
9.6x
10.0x
11.2x
2014
Median EV/EBITDA Mid-Cap Multiples
< $50M
16.0x
$50M-$250M
$250M-$750M
12.0x
8.0x
4.0x
0.0x
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
< $50M
4.1x
7.1x
6.4x
7.2x
10.2x
7.8x
4.9x
3.9x
8.8x
9.0x
6.8x
8.1x
7.7x
$50M-$250M
7.5x
6.9x
8.7x
11.3x
9.5x
10.4x
9.1x
7.1x
9.3x
10.0x
9.2x
11.3x
10.1x
$250M-$750M
9.7x
9.2x
9.1x
10.0x
11.0x
9.4x
8.3x
7.9x
9.7x
10.7x
10.2x
12.9x
10.5x
Average Acquisition Premiums
1-Week Premium
4-Week Premium
50%
40%
30%
20%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1-Week Premium
36%
32%
28%
26%
26%
27%
36%
38%
34%
36%
36%
23%
31%
4-Week Premium
38%
40%
32%
31%
31%
29%
37%
41%
38%
39%
39%
30%
34%
Notes: Data limited to a range of 1 to 100 and LTM is as of December 31, 2014
Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis. Data represents announced deals only
Food For Thought
22 Domestic M&A Market Summary
William Blair
U.S. Equity Capital Markets Summary
Historical IPO Issuance
243
250
175
200
139
150
105
95
100
54
28
50
35
13
19
39
25
50
21
20
21
48
56
63
70
56
54
0
2009 2010 2011 2012 2013 2014
1Q 11 2Q 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
Historical Follow-On Issuance
657
700
600
564
500
506
612
470
399
400
300
135
200
128
50
100
86
130
98
115
127
152
139
173
193
198
183
120
111
0
2009 2010 2011 2012 2013 2014
1Q 11 2Q 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
Note: Excludes follow-on offerings for CLEFs, REITs, and SPACs
IPO Pricings by Sector – Last 4 Quarters:
243 Total Deals
11
59
16
Follow-on Pricings by Sector – Last 4 Quarters:
694 Total Deals
Business Services
31
107
60
Consumer
Healthcare
Industrial
100
Technology
Consumer
58
Financial
26
Business Services
48
Financial
Healthcare
177
Industrial
162
Technology
Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis
Food For Thought
Domestic M&A Market Summary 23
William Blair
Debt Capital Markets Summary
Average Equity Contribution
Less than $50 million EBITDA
More than $50 million EBITDA
50%
41%
40%
36%
37% 38%
31%
40%
40%
35%
32%
32%
34%
30%
30%
29%
32%
46% 47% 45%
46%
40%
38%
43%
41%
41%
37%
37%
36%
33%
30%
20%
10%
0%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Quarterly LBO Debt Multiples – Less Than $50 Million EBITDA
Total Debt/EBITDA
7.0x
Senior Debt/EBITDA
7.0x
7.0x
6.0x
6.0x
5.0x
4.0x
5.0x
3.6x
4.0x
4.2x
3.8x
3.6x
3.7x
3.8x
3.7x
4.0x
4.0x
3.8x
3.0x
3.0x
3.0x
2.0x
2001
3.8x
3.0x
2.0x
2002
2001
3.7x
2003
2002
4.8x
4.2x
4.0x
4.2x
4.2x
4.0x
3.7x
4.9x
4.9x
4.5x
4.5x
4.8x
4.4x
4.4x
4.8x
4.8x
4.4x 5.0x
3.4x
3.3x
3.3x
2007
2007
4.4x
5.0x
3.4x
3.8x3.8x
2.2x 2.2x
2004
2003
2004 2005 2005 2006
2006
3.8x
3.8x
2008
2008
2009
2009
3.7x
3.7x
3.1x
3.1x
2010
2010
5.1x
6.0x
5.0x
5.1x
5.1x
5.0x
5.0x
5.1x
4.0x
3.0x
3.2x 3.2x
20112011 2012 20122013
2013
2014
2.0x
2014
Quarterly LBO Debt Multiples – Greater Than $50 Million EBITDA
Total Debt/EBITDA
7.0x
6.8x
7.0x
5.5x
6.0x
6.0x
4.0x
5.0x
5.0x
4.0x
3.6x
4.1x
3.8x
4.5x
3.7x
4.2x
4.8x
4.4x
4.0x
3.1x
3.0x
3.0x
3.0x
2.0x
2001
Senior Debt/EBITDA
3.8x
2.0x
2002
2001
4.2x
4.9x
4.8x 6.6x
4.5x
4.4x
3.8x
2.6x
3.7x
4.8x
2.6x
2004
2003
2004
3.3x
3.1x
2.9x
2005
2005
2006
2006
Sources: Dealogic and Standard & Poor’s as of December 31, 2014
Food For Thought
24 Debt Capital Markets Summary
4.0x
2007
2007
4.8x
5.3x
3.8x
2008
2008
2009
2009
4.4x
5.1x
6.0x
5.0x
5.1x
4.3x
3.4x
5.5x
4.9x
3.9x
3.5x
2.9x
2.2x
5.3x
4.4x
5.0x
4.0x
2003
2002
4.9x
5.7x
7.0x
5.0x
5.0x
5.1x
4.0x
4.0x
3.1x
3.7x
2010
2010
2011
2011
3.2x
2012
2013
2012
2013
2014
3.0x
2.0x
2014
William Blair
William Blair Food & Beverage and Food Convenience & Retail Investment Banking
Jim Bertram is the global head of the firm’s consumer and retail investment banking group. Before joining William
Blair in 2006, he was the co-head of Banc of America Securities’ global consumer products investment banking
practice. In this role, he assisted domestic and international consumer products manufacturers and distributors in
executing mergers and acquisitions and raising debt and equity capital through both public and private market
transactions. Before joining Banc of America Securities, he was responsible for leading Deutsche Bank Alex.
Brown’s food-and-beverage investment banking activity. Before working at Deutsche Bank Alex. Brown, he was
vice president in the corporate finance department at George K. Baum & Company, an investment and merchant
banking firm where he advised clients in executing public equity offerings, mergers and acquisitions, and private
debt placements. Mr. Bertram began his career in investment banking at Salomon Brothers.
Mr. Bertram graduated with highest honors from the University of Illinois with a B.S. in finance.
[email protected]
+1 312 364 5426
Brent Smith is a managing director in the consumer and retail group. Since joining William Blair in 2000, Mr.
Smith has also been a member of the firm’s mergers-and-acquisitions practice and currently heads William Blair’s
consumer M&A effort. Over this period, he has worked on a range of public and private M&A, primarily in the
consumer and industrial sectors, totaling more than $18 billion in aggregate transaction value. Mr. Smith’s
financial advisory experience includes sell-side and buy-side transactions, corporate divestitures, take-private
transactions, strategic options studies, valuations, fairness opinions, and special committee situations. Mr. Smith is
a member of William Blair’s Fairness Opinion Committee. Before joining William Blair, Mr. Smith worked at both
Lehman Brothers and Heitman Financial.
Mr. Smith holds an M.B.A. with honors from the University of Chicago and a B.B.A. with high distinction from the
University of Michigan.
[email protected]
+1 312 364 5392
Adam Filkin joined William Blair in 2007 and is a managing director in the consumer and retail investment
banking group. Mr. Filkin has extensive transaction experience across numerous consumer verticals, including
food, consumer products, and personal care. He joined William Blair from Banc of America Securities, the
investment banking arm of Bank of America. Mr. Filkin spent three years at Banc of America, serving as an
associate in the consumer and retail practice. Before joining Banc of America, Mr. Filkin was a manager at A.T.
Kearney, focusing on growth strategies and operational improvement studies for consumer and retail companies.
He has more than 10 years of experience working with consumer and retail companies.
Mr. Filkin holds an M.B.A. with a concentration in finance from the University of Chicago and holds a B.S.E. in
chemical engineering from the University of Michigan.
[email protected]
+1 312 364 8077
Food For Thought
William Blair Food & Beverage and Food Convenience & Retail Investment Banking 25
William Blair
Food & Convenience Retail
Tim Carroll joined William Blair in 2002 and serves as a managing director in the consumer and retail investment
banking group. He joined William Blair from Andersen Corporate Finance LLC, the investment banking arm of
Andersen. Mr. Carroll spent four years at Andersen, serving as a national director and managing director/co-head
of the products and business services industry team. Before joining Andersen, he was a founder and principal of
Wyndam Capital, a broker-dealer serving middle-market companies, and a founder and principal of a $120 million
private-equity fund. Mr. Carroll has served on the board of directors for seven privately held businesses and has
more than 27 years of investment banking experience, 7 years of commercial banking experience, and 2 years of
commercial real estate experience.
Mr. Carroll graduated with a B.S. in business finance from Indiana University.
[email protected]
+1 312 364 8532
Michael Siska is a managing director in the consumer and retail investment banking group at William Blair. He
originally joined the firm in 2002 and then rejoined in 2006 after attaining his M.B.A. at the University of Chicago.
Before joining William Blair, Mr. Siska worked in private equity for Allstate Private Equity in Chicago and 3i Group
in London. He also spent five years in the products and business services industry group at Andersen Corporate
Finance LLC, the investment banking arm of Andersen. He focuses on specialty retail, food retail, restaurants, and
consumer services.
Mr. Siska earned an M.B.A. from the University of Chicago and a B.S., with honors, from the University of Illinois at
Urbana-Champaign.
[email protected]
+1 312 364 5393
Europe
Alex Matthes is a managing director at William Blair. Before he joined William Blair in 2013, Mr. Matthes worked
in Commerzbank’s M&A advisory team with a focus on consumer and retail. Before joining Dresdner Kleinwort in
2006 as vice president, he worked in the M&A department of Lazard as analyst and associate since 2000.
Mr. Matthes studied business administration at the universities of Frankfurt and Cologne and obtained a master’s
degree in business administration (Diplom Kaufmann) in 2000.
[email protected]
+49 69 509527 612
Beth Pickens is a managing director and head of European consumer banking. She joined William Blair in 2000
and has been located in William Blair’s London office since 2001. Ms. Pickens specializes in advising international
consumer growth companies across consumer products, personal care, and consumer services. She is also an angel
investor in early-stage consumer companies, including Bonobos.com and DefySupply.com.
Ms. Pickens holds a master’s degree in business administration from the University of Chicago Graduate School of
Business and a bachelor’s degree in finance from the University of Illinois at Urbana-Champaign. She also
completed studies at the Université de Paris IV-Sorbonne. A Chicago native, she lives in London with her husband
and children.
[email protected]
+44 20 7868 4479
Food For Thought
26 William Blair Food & Beverage and Food Convenience & Retail Investment Banking
William Blair
Recent William Blair Consumer & Retail Transactions
Not Disclosed
Not Disclosed
Not Disclosed
Not Disclosed
Not Disclosed
has been acquired by
One Rock Capital
Partners
Knowlton Development
Corporation
has acquired
Robert Bosch Tool
Corporation, Garden &
Watering Business
Frutarom
Industries Ltd.
December 2014
December 2014
December 2014
December 2014
November 2014
€220,000,000
$186,300,000
$139,840,000
$105,000,000
$128,000,000
Abris Capital Partners
Follow-on Offering
Follow-on Offering
Follow-on Offering
Post Holdings, Inc.
November 2014
November 2014
November 2014
November 2014
November 2014
Not Disclosed
Not Disclosed
$108,235,280
$85,000,000
$53,117,980
Growth Equity
Recapitalization
Monomoy Capital
Partners
Initial Public Offering
Senior Credit Facility
Follow-on Offering
October 2014
October 2014
October 2014
September 2014
September 2014
Not Disclosed
$156,543,750
Not Disclosed
$123,214,290
$89,125,000
Follow-on Offering
Wasserstein & Co., LP
has a strategic
investment from
Standard Chartered
Private Equity
Follow-on Offering
Peet’s Coffee & Tea /
Next World Capital
August 2014
August 2014
August 2014
July 2014
July 2014
$373,749,990
$171,646,263
$202,000,000
CAD$170,000,000
Not Disclosed
Milner Milling, Inc.
Follow-on Offering
Follow-on Offering
Snyder’s Lance
TreeHouse Foods, Inc.
July 2014
June 2014
June 2014
May 2014
May 2014
$64,166,663
$132,050,000
$100,624,980
$61,300,000
Not Disclosed
The Hain
Celestial Group
May 2014
April 2014
April 2014
April 2014
March 2014
Not Disclosed
Not Disclosed
Not Disclosed
$51,500,000
$290,950,000
ADKM, Inc.
(DBA Harry's)
has been recapitalized by
has divested Mervin
Manufacturing Inc. to
TZP Group
Altamont Capital
Partners
January 2014
December 2013
November 2013
November 2013
Greencore Group
February 2014
Bregal Partners
Food For Thought
Recent William Blair Consumer & Retail Transactions 27
William Blair
William Blair Consumer & Retail Coverage
Mark Miller, CFA
+1 312 364 8498
Broad Assortment and Hardlines,
E-commerce, Health, Beauty, and Convenience
Sharon Zackfia, CFA
+1 312 364 5386
Apparel and Accessories, Leisure, Restaurants
Company
Ticker
Company
Ticker
Amazon.com
Blue Nile
Cabela’s
Costco Wholesale Corporation
CVS Health Corporation
Dick’s Sporting Goods
Fairway Group Holdings
Fresh Market (The)
GNC Holdings
JD.com
MercadoLibre
Sportsman’s Warehouse Holdings
Target Corporation
Tractor Supply Company
Vitamin Shoppe
Walgreens Boots Alliance
Wal-Mart Stores
Wayfair Inc.
Whole Foods Market
Zulily
AMZN
NILE
CAB
COST
CVS
DKS
FWM
TFM
GNC
JD
MELI
NGVC
SPWH
TGT
TSCO
VSI
WBA
WMT
W
WFM
ZU
BJ’s Restaurants
Bloomin’ Brands
CarMax
Carnival Corporation
Cheesecake Factory (The)
Chipotle Mexican Grill
Dunkin’ Brands Group
El Pollo Loco Holdings
Harley-Davidson
Life Time Fitness
Lululemon Athletica
Panera Bread Company
Papa Murphy’s Holdings
Potbelly
Royal Caribbean Cruises
Sonic Corp.
Starbucks Corporation
Tilly’s
Tumi Holdings
Under Armour
Urban Outfitters
Zoe’s Kitchen
Zumiez
BJRI
BLMN
KMX
CCL
CAKE
CMG
DNKN
LOCO
HOG
LTM
LULU
PNRA
FRSH
PBPB
RCL
SONC
SBUX
TLYS
TUMI
UA
URBN
ZOES
ZUMZ
Jon Andersen, CFA
+1 312 364 8697
Daniel Hofkin, Analyst
+1 312 364 8965
Consumer Products
Hardlines, Specialty Retail
AptarGroup
Boulder Brands
Church & Dwight
Colgate-Palmolive Company
Scotts Miracle-Gro Company (The)
Fox Factory Holding Corp.
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)
SodaStream International
Tempur Sealy International
TreeHouse Foods
ATR
BDBD
CHD
CL
SMG
FOXF
SNAK
JJSF
SJM
JAH
K
GMCR
MJN
PRGO
PBH
PG
SODA
TPX
THS
Amy Noblin, Analyst
+1 415 248 2874
Apparel and Accessories
Abercrombie & Fitch
Coach
DSW
Francesca’s Holdings
Michael Kors Holdings
ANF
COH
DSW
FRAN
KORS
Food For Thought
28 William Blair Consumer & Retail Coverage
Advance Auto Parts
AutoZone
Bed Bath & Beyond
Luxottica Group
Mattress Firm Holding Corp.
O’Reilly Automotive
PetSmart
Regis Corporation
Restoration Hardware Holdings
Ross Stores
Steiner Leisure
TJX Companies (The)
Ulta Salon, Cosmetics & Fragrance
Williams-Sonoma
AAP
AZO
BBBY
LUX
MFRM
ORLY
PETM
RGS
RH
ROST
STNR
TJX
ULTA
WSM
Nordstrom
Tiffany & Co.
Tumi Holdings
Vera Bradley
Vince Holding Corp.
JWN
TIF
TUMI
VRA
VNCE
William Blair
Notes
Food For Thought
Notes 29
William Blair
Disclosures
William Blair is a trade name for William Blair & Company, L.L.C. and William Blair International, Limited. William Blair & Company, L.L.C., is a Delaware company and is regulated by the Securities and
Exchange Commission, The Financial Industry Regulatory Authority, and other principal exchanges. William Blair International Limited is authorised and regulated by the Financial Services Authority
("FSA") in the United Kingdom. William Blair & Company® 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 within the United States and are not offered to persons or institutions outside of the United States.
This material has been approved for distribution in the United Kingdom by William Blair International Limited, and is directed only at, professional clients and eligible counterparties (as defined in COBS
3.5 and 3.6 of the FSA Handbook). This advertisement is not intended to be investment advice.
William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com
January 29, 2015
Food For Thought
30 Disclosures
About William Blair
Investment Banking
William Blair’s investment banking group combines signi icant transaction experience,
rich industry knowledge, and deep relationships to deliver successful advisory and
inancing solutions to our global base of corporate clients. We serve both publicly traded
and privately held companies, executing mergers and acquisitions, growth inancing,
inancial 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 2010-2014, the investment banking group completed more than 330 merger-andacquisition transactions worth $73 billion in value, involving parties in 36 countries and
ive continents, was an underwriter on more than 20% of all U.S. initial public offerings,
and raised nearly $100 billion in public and private inancing.

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