food & agribusiness monthly intelligence report · 2021. 6. 30. · decas cranberry products,...

FOOD & AGRIBUSINESSMONTHLY INTELLIGENCE REPORT

May 2021

www.stifelib.com

Page | 1

Food & Agribusiness Monthly Intelligence ReportMay 2021

(1) M&A analytics as of 5/31/21(2) Dealogic. Rank-eligible SEC registered IPOs and Follow-On offerings since 2010 as of 5/31/21

About Our Firm

#1Middle Market Firm

in M&A Transactions Under

$1 Billion (1)

#1Equity Deals Under $1 Billion in Market

Cap (2)

10Dedicated

Consumer & Retail Managing Directors

100+Consumer & Retail M&A Transactions Completed Since

2009

20+Average Years

Experience Across Consumer & Retail

Senior Bankers

Stifel is a full-service investment bank with deep industry experience. We serve as strategic advisorto entrepreneurs, family-owned businesses, private equity groups, and leading public and privatecorporations in North America, Europe, Asia, and Latin America.

Stifel Food & Agribusiness Team

Contact Our Food & Agribusiness Team to Find Out More:

Additional Stifel Resources

MICHAEL KOLLENDER

Head of Consumer & Retail, Diversified Industrials(212) [email protected]

ASHISH BURMAN

Head of Consumer & Retail – European Operations+44 (207) [email protected]

ROB HAILE

Managing Director – Food & Agribusiness(617) [email protected]

KC HAZARIKA

Managing Director – Food & Agribusiness(617) [email protected]

SEAN WRIGHT

Vice President(617) [email protected]

JOHN COYNE

Vice President(617) [email protected]

JOHN TILLOTSON

Associate(617) [email protected]

Recent Transactions by Stifel’s Food & Agribusiness Senior Bankers

Page | 2

Report Highlights

Source(s): S&P Capital IQ

M&A Market Overview | Notable Transactions

CLOSED DATE: 5/25/2021 3/5/20213/31/20215/17/2021

ENTERPRISE VALUE: NA NA$4,300M$950M

EV / LTM REVENUE: NA NA1.4x(2)NA

EV / LTM EBITDA: NA NANA~11.5x(1)

TARGET:

BUYER:

1) Multiple calculated based on diligence adjusted 2020 EBITDA 2) Multiple calculated based on LTM December 2020 revenue

Page | 3

Report Highlights


Recommended Reads

Industry Data | One-Month Commodity Price Change

Public Equity Market Overview | One-Year Stock Performance

S&P 500

Agribusiness & Ingredients

Beverages

Branded

Food & Drug Mass

Food Distribution

Fruit & Vegetable

Grocery Retail

Protein & Dairy

SoybeanPorkOilBeef Corn WheatChicken SugarCoffee

3.1% 0.3%

8.0%

(2.5%)

4.3%

8.8%

(0.2%)

2.2%

(9.7%)

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21

Even In The Face Of Surging Grocery Prices, Retail Beef And Pork Prices Cause Sticker Shock

Plant-based foods and mindful eating among McCormick's newest flavor trends

Consumers Will Pay More for Products That Showcase Brand Values

Specialty Food Sales Hit Record $170.4B in 2020

https://www.nytimes.com/2020/04/18/business/coronavirus-meat-slaughterhouses.html?referringSource=articleShare

https://www.washingtonpost.com/business/2021/05/29/beef-pork-retail-prices-skyrocket/

https://www.fooddive.com/news/plant-based-foods-and-mindful-eating-among-mccormicks-newest-flavor-trends/598849/

https://foodindustryexecutive.com/2021/04/consumers-will-pay-more-for-products-that-showcase-brand-values/

https://www.fooddive.com/news/specialty-food-sales-hit-record-1704b-in-2020/601714/

Page | 4

M&A Market Overview

Source(s): S&P Capital IQ, PitchBook, Company News & Press Releases

Aggregate Enterprise Value Total # of Deals

($ in millions; deal count in actual)

Recent Food & Agribusiness M&A Transactions

Announced Food & Agribusiness Transactions | 2015 – 2021 YTD

Date Target Name Target Description Acquirer(s) Seller(s)

5/26/2021 JTM Foods, LLCErie, PA-based producer of branded and private label snack foods

Tenex Capital Management, L.P.

Kainos Capital, L.P.

5/25/2021 Bute Island Foods LtdRothesay, UK-based producer of vegan and dairy-free cheese

Saputo Inc. (TSX:SAP) Private

5/25/2021 Kodiak Cakes, LLCPark City, UT-based producer of whole grain pancakes and mixes

L Catterton PartnersTrilantic Capital Management, L.P.; Sunrise Strategic Partners, LLC

5/17/2021Dion Herbs & Spices, Inc.

Saint-Jérôme, Canada-based producer of herbs and spices

Champlain Financial Corporation

Private

$265,337

$65,721

$129,529

$86,667

$40,683 $41,397

$14,727

1,659 1,686 1,711 1,562

1,452

1,247

547

2015 2016 2017 2018 2019 2020 2021 YTD

5/14/2021Nothing Bundt Franchising, LLC

Addison, TX-based owner and operator of bakeries in the United States

Roark Capital GroupLevine Leichtman Capital Partners, LLC

5/10/2021 Custom Made Meals, LLCDenver, CO-based manufacturer of oven-ready entrees, appetizers and sides

Stellex Capital Management, LLC

New Water Capital, L.P.

5/7/2021 Wheat MontanaThree Forks, MT-based producer of premium bakery and milled products in the United States

Tilia Holdings, LLCRiver Associates Investments, L.P.

5/6/2021 Innova FlavorsLombard, IL-based producer of customized meat and savory flavors

Synergy Flavors, Inc. Griffith Foods Worldwide

5/5/2021Haystack Mountain Creamery

Longmont, CO-based provider of goat milk cheeses in the United States

The Stage Fund Private

5/4/2021Pete and Gerry's Organics, LLC

Lebanon, NH-based producer of organic eggsBritish Columbia Investment Mgmt. Corp.; Butterfly Equity, L.P.

Private

5/4/2021 Picky Bars, LLCBend, OR-based manufacturer of energy bars, oatmeal, granola, pancakes and nut butter

Laird Superfood, Inc. (NYSEAM:LSF)

Private

5/4/2021 PlenishLondon, UK-based manufacturer of cold pressed juices, shots and nut-based milks

Britvic plc (LSE:BVIC)Pembroke VCT plc (LSE:PEMB); Oakley Investment Managers LLP

5/3/2021Food of New Mexico Distributors, Inc.

Albuquerque, NM-based prepared food production company that produces ready-to-eat New Mexican food items both for retail and food service

Tattooed Chef, Inc. (NasdaqCM:TTCF)

Private

4/28/2021 Olde Thompson, Inc.Oxnard, CA-based producer of private label & branded spices and spice accessories

Olam Holdings B.V Kainos Capital, L.P.

4/27/2021 Eire Born Spirits, LLCJersey City, NJ-based owner and marketer of the Proper No. Twelve Irish whiskey brand

Proximo Spirits, Inc. Private

4/13/2021 TasteConnection LtdWotton-under-Edge, UK-based manufacturer of seasonings, glazes and marinades

Nactarome Private

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M&A Market Overview




4/8/2021 FudcoStanmore, UK-based producer of nuts, spices, dried fruits, pulses, specialty flours and other Indian foods

Vibrant Foods Private

4/6/2021 Ferraro Foods, Inc.Piscataway, NJ-based distributor of food and other products to the Italian restaurant and pizzeria segment in the United States

Kelso & Company, L.P. Kainos Capital, L.P.

4/5/2021 De Wafelbakkers, LLCNorth Little Rock, AR-based manufacturer and distributor of frozen breakfast products

Brynwood Partners Management, LLC

The Oklahoma Publishing Company

4/5/2021Natural American Foods, Inc.

Onsted, MI-based producer and processor of honey and commercial sweeteners

Blue Road Management, L.P.

Peak Rock Capital, LLC

4/5/2021 Proteus Industries, Inc.Gloucester, MA-based food ingredient manufacturing company

Kemin Industries, Inc. Private

3/30/2021 Simple Botanics Chicago, IL-based producer of organic botanical teas Brand Holdings, LLC Private

3/22/2021Danone Naya Waters, Inc.

Montreal, Canada-based provider of bottled spring water in North America

Champlain Financial Corporation; GefCo

Private

3/22/2021 Grenade (UK) LtdSolihull, UK-based producer of weight-loss and sports nutrition products for athletes, fitness enthusiasts and military personnel

Mondelez International, Inc. (NasdaqGS:MDLZ)

Lion Capital, LLP

3/17/2021JoJé Bar(Peloton Foods)

Encinitas, CA-based manufacturer of energy bars RoadRunner Holdings Private

3/15/2021 Ulrick & Short LimitedPontefract, UK-based provider of clean label ingredients for food manufacturers

Novax AB Private

3/12/2021 Aspire BakeriesSan Leandro, CA-based provider of specialty frozen baked goods

Lindsay Goldberg, LLC ARYZTA AG (SWX:ARYN)

3/11/2021 Starboard Seafood, Inc.Scarborough, Canada-based importer and distributor of live, fresh and frozen seafood in Canada

Premium Brands Holdings Corporation (TSX:PBH)

Private

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M&A Market Overview




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M&A Market Overview



3/8/2021 Far West Spirits, LLCHouston, TX-based owner of the Lone River Ranch Water hard seltzer brand

Diageo plc (LSE:DGE) Private

3/5/2021 Essentia Water, LLCBothell, WA-based manufacturer, packager and marketer of bottled alkaline and electrolyzed water

Nestlé USA, Inc.Castanea Partners, Inc.; First Beverage Ventures

3/4/2021 Urban Accents, Inc.Chicago, IL-based producer of seasonings and spice blends

Stonewall Kitchen, LLC Private

3/2/2021Decas Cranberry Products, Inc.

Carver, MA-based grower, processor, distributor and marketer of cranberries for retail, foodservice & beverage and industrial sectors worldwide

Fruit d'Or, Inc. Private

2/22/2021All Packaging Company, LLC

Aurora, CO-based designer and manufacturer of custom paperboard folding cartons for multiple consumer end markets

Mill Rock Packaging Partners, LLC

Private

2/16/2021Nestlé Waters North America, Inc.(BlueTriton Brands)

Stamford, CT-based producer of bottled water in the United States and Canada

One Rock Capital Partners, LLC; Metropoulos & Co.

Nestlé S.A. (SWX:NESN)

2/9/2021 Randall FoodsVernon, CA-based processesor of poultry and meat products

Highview Capital, LLC Private

2/2/2021 Torie & Howard, Inc. New Milford, CT-based provider of better-for-you candiesAmerican Licorice Company

Private

1/26/2021 ProPortion Foods, LLCLos Angeles, CA-based processor of fully cooked beef, pork and poultry products for customers in the foodservice and retail segments

Cargill, Incorporated Private

1/14/2021 ZICO Beverages, LLC El Segundo, CA-based manufacturer of coconut water Powerplant Ventures, LLCThe Coca-Cola Company (NYSE:KO)

1/6/2021 TricorBraun, Inc.Saint Louis, MO-based designer and manufacturer of rigid & flexible packaging solutions

Ares Management Corporation (NYSE:ARES); Ontario Teachers' Pension Plan Board

AEA Investors, L.P.

1/5/2021 Hu Master Holdings, LLCNew York, NY-based manufacturer of better-for-you chocolate and snack products

Mondelez International, Inc. (NasdaqGS:MDLZ)

Sonoma Brands Partners


Page | 8

Public Equity Market Overview

Source(s): S&P Capital IQ(1) See page 11 for further details on public comparables

Median % of 52-Week High

Median EV / LTM Revenue

Public Comparables | Trading Metrics (1)

0.5x

2.0x

0.8x

2.5x 2.4x

1.1x0.6x

1.2x

1.9x 1.7x

0 .0 x

0 .5 x

1 .0 x

1 .5 x

2 .0 x

2 .5 x

3 .0 x

Grocery Retail Ingredients &Flavors

Natural &Organic

Non-AlcoholicBeverages

Pet Products &Retail

Private Label ProteinProcessing

Seafood Snacks,Confectionary,& Baked Goods

Vitamins,Minerals, &

Supplements

87.6% 91.2% 79.4%

95.0% 92.0% 87.8% 85.8% 93.4% 96.6% 93.4%

0 .0 %

2 0. 0%

4 0. 0%

6 0. 0%

8 0. 0%

1 00 .0 %

1 20 .0 %


Natural &Organic






Supplements

0.7x

3.5x

2.2x1.4x 1.0x

0.3x1.0x 0.8x

4.5x

0.8x

x

x

x

x

x

x

x

x

x

x

x

Agribusiness AlcoholicBeverages

Branded Coffee & Tea Dairy DiversifiedFood

Companies

Food & DrugMass

FoodDistribution

Food Safety &Animal Health

Fruit &Vegetable

93.0% 95.4%

91.9%

88.9% 90.6% 89.8%

91.7%

89.2%

94.5%

91.5%



Companies

Food & DrugMass

FoodDistribution


Fruit &Vegetable

Page | 9

Public Equity Market Overview

Source(s): S&P Capital IQ(1) See page 11 for further details on public comparables

Median EV / LTM EBITDA

Recent Food & Agribusiness Public Offerings

($ in millions)

Public Comparables | Trading Metrics (1)

Offering Date Issuer Ticker Transaction Type Gross Proceeds

5/25/2021 Hormel Foods Corporation HRL Fixed-Income Offering $949.8

5/19/2021 Oatly Group AB OTLY IPO $1,434.4

4/28/2021 The Coca-Cola Company KO Fixed-Income Offering $1,998.3

3/17/2021 The Duckhorn Portfolio, Inc. NAPA IPO $300.0

3/3/2021 Mondelez International, Inc. MDLZ Fixed-Income Offering $902.0

3/1/2021 Keurig Dr Pepper, Inc. KDP Fixed-Income Offering $1,150.0

2/23/2021 Freshpet, Inc. FRPT Follow-on Equity Offering $300.3

1/20/2021 Village Farms International, Inc. VFF Follow-on Equity Offering $135.0

11.7x

18.4x

11.7x14.7x

11.4x9.3x

18.3x15.7x

19.2x

10.6x

.0 x

.0 x

0x

0x

0x

0x



Companies

Food & DrugMass

FoodDistribution


Fruit &Vegetable

9.7x

18.9x

10.4x

18.2x

12.1x9.8x 8.3x

11.8x15.0x 14.9x

0 .0 x

2 .0 x

4 .0 x

6 .0 x

8 .0 x

1 0. 0x

1 2. 0x

1 4. 0x

1 6. 0x

1 8. 0x

2 0. 0x


Natural &Organic






Supplements

$0.00

$0.30

$0.60

$0.90

$1.20

$1.50

$1.80

$0.00

$1.25

$2.50

$3.75

$5.00

$6.25

$7.50

$0.00

$3.00

$6.00

$9.00

$12.00

$15.00

$18.00

$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40

$0.00

$17.00

$34.00

$51.00

$68.00

$85.00

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.00

$0.40

$0.80

$1.20

$1.60

$2.00

$2.40

$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40

$0.00

$1.50

$3.00

$4.50

$6.00

$7.50

$9.00

Page | 10

Industry Data


Historical Commodity Prices

$15.31$0.17 $6.64

SOYBEAN PRICES SUGAR PRICES WHEAT PRICES

$2.05$1.51$1.05

$66.32 $1.19

CORN PRICES OIL PRICES PORK PRICES

BEEF PRICES CHICKEN PRICES COFFEE PRICES

$6.57

Page | 11

Food & AgribusinessMonthly Intelligence ReportMay 2021

Stifel collectively refers to Stifel, Nicolaus & Company, Incorporated and other affiliated broker-dealer subsidiaries of Stifel Financial Corp. The information and statistical data contained herein have been obtained from sources that Stifel believes are reliable, but Stifel makes no representation or warranty as to the accuracy or completeness of any such information or data and expressly disclaims any and all liability relating to or resulting from your use of these materials. The information and data contained herein are current only as of the date(s) indicated, and Stifel has no intention, obligation, or duty to update these materials after such date(s). These materials do not constitute an offer to sell or the solicitation of an offer to buy any securities, and Stifel is not soliciting any action based on this material. Stifel may be a market-maker in certain of these securities, and Stifel may have provided investment banking services to certain of the companies listed herein. Stifel and/or its respective officers, directors, employees, and affiliates may at any time hold a long or short position in any of these securities and may from time-to-time purchase or sell such securities. This material was prepared by Stifel Investment Banking and is not the product of the Stifel Research Department. It is not a research report, and should not be construed as such. This material may not be distributed without Stifel's prior written consent.

Copyright 2021 Stifel, Nicolaus & Company, Incorporated. All rights reserved.

• Agribusiness: ADM, DB:BYW, BG, CVGW, CF, SET:CPF, DAR, FDP, ASX:GNC, JBSS, TSE:8002, SGX:O32, ANDE, MOS, SGX:F34

• Alcoholic Beverages: ENXTPA:ADVI, BOVESPA:ABEV3, ENXTBR:ABI, TSE:2502, ASX:AVG, BF.B, CPSE:CARL B, SNSE:CCU, STZ, BIT:CPR, LSE:DGE, ENXTPA:LPE, DB:HAW, ENXTAM:HEIA, TSE:2503, SHSE:600519, ENXTPA:ALLAN, ENXTPA:MBWS, TAP, ENXTPA:RI, ENXTPA:RCO, TSE:2501, XTRA:SWA, LSE:STCK, SAM, ASX:TWE, SEHK:168, ENXTPA:VRAP, NasdaqCM:WVVI

• Branded: TSE:2802, HLSE:ATRAV, BGS, TSE:2229, CPB, SEHK:506, CAG, BME:EBRO, DB:NLM, GIS, NYSE:HRL, TSE:2810, K, TSE:2809, TSE:2801, LANC, ENXTBR:LOTB, TSX:MFI, MDLZ, SWX:NESN, TSE:2871, TSE:2897, NOMD, OB:ORK, PEP, POST, LSE:PFD, TSX:PBH, HLSE:RAIVV, TASE:STRS, ENXTBR:TERB, HSY, SJM, KHC, JSE:TBS, SEHK:322, LSE:ULVR, SEHK:151, TSE:2267

• Coffee & Tea: DTEA, FARM, BSE:500166, TSE:2593, BSE:532654, ASX:RFG, SBUX, TSE:2587, BSE:500800, SJM, LSE:WTB

• Dairy: ASX:BGA, SEHK:2319, ENXTPA:BN, EMMN, ENXTPA:FBEL, ISE:GL9, SWX:HOCN, LWAY, TSE:2270, TSE:2201, TSX:SAP, ENXTPA:SAVE, ENXTPA:UNBL

• Diversified Food Companies: LSE:ABF, TSE:9869, TSE:7451, SGX:O32

• Food & Drug Mass: TSX:ATD.B, CASY, AIM:CVSG, DK, GNC, RAD, WBA

• Food Distribution: DIT, ARMK, JSE:BVT, CORE, FARM, LSE:GNC, GRUB, AIM:JET2, BIT:MARR, ASX:MTS, PFGC, ENXTAM:SLIGR, SGRP, SPTN, SYY, CHEF, UNFI, USFD

• Food Safety & Animal Health: AIM:ANP, LLY, ENXTPA:ERF, MRK, NEOG, PAHC, ZTS

• Fruit & Vegetable: ALCO, ENXTPA:BON, CVGW, ASX:CGC, FDP, ENXTBR:GREEN, TSE:1379, BIT:LD, LMNR, MLP, SENE.A, NZSE:TGG, ISE:T7O

• Grocery Retail: SGX:D01, IMKT.A, LSE:SBRY, ENXTAM:AD, TSX:L, ASX:MTS, MRU, NGVC, LSE:OCDO, JSE:SHP, SPTN, SFM, LSE:TSCO, KR, VLGE.A, WMK, LSE:MRW

• Ingredients & Flavors: OM:AAK, LSE:ABF, CPSE:CHR, DAR, TSE:2607, SWX:GIVN, ISE:GL9, INGR, IFF, ISE:KRZ, TSE:2809, MKC, TSE:2001, TSE:2002, OB:ORK, SXT, TSX:SOY, XTRA:SY1, TSE:4958, TSE:4914, LSE:TATE, LSE:TET

• Natural & Organic: LWAY, NGVC, HLSE:RAIVV, SFM, TSX:SOY, NZSE:SML, HAIN, UNFI

• Non-Alcoholic Beverages: LSE:BAG, BMV:AC *, LSE:BVIC, AIM:FEVR, BMV:FEMSA UBD, TSE:2593, JSDA, KDP, LAS.A, MNST, FIZZ, AIM:NICL, PEP, REED, TSE:2587, KO

• Pet Products & Retail: CENT, NYSE:CHWY, FRPT, GIS, SWX:NESN, PETS, LSE:PETS, PAHC, SPB, SJM, DB:ZO1

• Private Label: FLO, SENE.A, THS

• Protein Processing: BYND, BRFS3, CALM, SET:CPF, SEHK:1068, LSE:CWK, SZSE:000895, HLSE:HKSAV, NYSE:HRL, BOVESPA:JBSS3, ENXTPA:LOUP, BOVESPA:MRFG3, TSE:2288, BOVESPA:BEEF3, TSE:2282, PPC, JSE:RCL, SAFM, OM:SCST, SEB, ENXTBR:TERB, TSN, VITL

• Seafood: SET:ASIAN, BVL:AUSTRAC1, KOSE:A049770, OB:GSF, TSX:HLF, OB:LSG, OB:MOWI, TSE:8002, TSE:1333, TSE:2871, NOMD, OB:SALM

• Snacks, Confectionary, & Baked Goods: SWX:ARYN, SWX:BARN, TSE:2229, SWX:LISN, OM:CLA B, TSE:2206, AIM:FIF, FLO, TSX:WN, BMV:BIMBO A, AIM:HOTC, JJSF, JBSS, LANC, KOSE:A004990, ENXTBR:LOTB, TSE:2201, SWX:NESN, OB:ORK, HSY, NasdaqCM:SMPL, TR, TSE:2212

• Vitamins, Minerals, & Supplements: ASX:BKL, CPSE:CHR, BIT:ENV, GNC, HLF, ENXTAM:DSM, LFVN, MED, NATR, NUS, PRGO, AIM:SIS, USNA, WW

Footnote Details & Disclosure

food & agribusiness monthly intelligence report · 2021. 6. 30. · decas cranberry products,...

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