food for thought - william blair€¦ · food for thought 4 selected monthly m ... 11/03/14...
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December 2014Monthly Update
Food for ThoughtOverview, Analysis, and Trends in the Food and Food Retailing Industries
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 - 2013, the investment banking group completed 250 merger-and-acquisition transactions worth more than $52 billion in value, involving parties in 27 countries and four continents, was an underwriter on over 20% of all U.S. initial public offerings and arranged more than $11.5 billion of debt inancing.
About William Blair Investment Banking
William Blair
Food For Thought Table of Contents
Table of Contents Selected Monthly M&A Activity – November .............................................................................................................................................................................. 1 Noteworthy M&A Activity – LTM ..................................................................................................................................................................................................... 6 Historical M&A Trends in the Food and Food Retailing Industries ................................................................................................................................... 9 Volume Trends .................................................................................................................................................................................................................................... 9 Participant Trends ........................................................................................................................................................................................................................... 10 Valuation Trends .............................................................................................................................................................................................................................. 11 Public Company Trading Statistics ................................................................................................................................................................................................ 12 Food Production Companies ....................................................................................................................................................................................................... 12 Food Ingredients Companies ...................................................................................................................................................................................................... 13 Beverage Production Companies .............................................................................................................................................................................................. 13 Food Retail Companies .................................................................................................................................................................................................................. 14 Convenience Store Companies ................................................................................................................................................................................................... 14 Same-Store Growth – Food & Convenience Retail .................................................................................................................................................................. 15 U.S. Public Equity Financing Summary – LTM .......................................................................................................................................................................... 16 IPOs ........................................................................................................................................................................................................................................................ 16 Follow-Ons .......................................................................................................................................................................................................................................... 16 Selected Upcoming Industry Events ............................................................................................................................................................................................. 17 General Market Update .................................................................................................................................................................................................................. 19 Quarterly Market Update – All Industries .................................................................................................................................................................................. 20 Domestic M&A Market Summary ................................................................................................................................................................................................... 20 U.S. Activity Trends .................................................................................................................................................................................................................... 20 U.S. Valuation Trends................................................................................................................................................................................................................. 21 U.S. Equity Capital Markets Summary ..................................................................................................................................................................................... 22 Debt Capital Markets Summary ...................................................................................................................................................................................................... 23 William Blair Food & Beverage and Food Convenience & Retail Investment Banking ........................................................................................... 24 Recent William Blair Consumer & Retail Transactions ........................................................................................................................................................ 26 William Blair Consumer & Retail Coverage ............................................................................................................................................................................... 27 Notes .......................................................................................................................................................................................................................................................... 28 Disclosures ............................................................................................................................................................................................................................................... 29
William Blair
Food For Thought Selected Monthly M&A Activity – November 1
Selected Monthly M&A Activity – November
Food & Beverage Producer Transactions
($ in millions) Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA11/30/14 Guenther Zamek Produktions - und
Handelsgesellschaft Manufacturer of ready-to-eat meals
Germany DRICON Managing Consultants - - -11/28/14 OJSC Orkla Brands Russia Manufacturer of chocolate and confectionery products
Russian Federation Slavyanka-Lyuks - - -11/27/14 SABMiller (Appletiser Brands And 19 Non-Alcoholic
Ready-To-Drink Brands In Africa And Latin America) Producer of fruit juice and ready-to-drink beverages
United Kingdom The Coca-Cola Company $260.0 - -11/26/14 Marbacher Olmuhle Producer of edible oils
Germany Hochdorf Holding - - -11/26/14 Exportaciones e Importaciones de Liquidos (33.5%) Distributor of alcoholic and nonalcoholic beverages
Chile Mahou - - -11/26/14 Pechalou Manufacturer of dairy products
France Quinoa - - -11/25/14 Chateau La Bastide Producer and exporter of wine
France BHC International Wine Assets Management Group - - -11/25/14 Westernland Dairy Producer of milk
India Milk Mantra Dairy - - -11/25/14 Blu-Dot Beverage Co. Manufacturer and distributor of ready-to-drink beverages
Canada Niagara Ventures - - -11/25/14 Di Bella Coffee Group Roaster and distributor of coffee
Australia Retail Food Group $40.3 - -11/24/14 Biscuiterie Jeannette Manufacturer of cookies, biscuits and related food products
France Private Investor (Georges Viana) - - -11/21/14 Noosa Yoghurt Producer of yoghurt
United States Advent International - - -11/21/14 Fabrica Juris Cia Manufacturer of frozen meat products
Ecuador Alfa SAB - - -11/21/14 Elivia Producer and processer of meat
France Dawn Meats Group - - -11/20/14 Primo Smallgoods Producer of packaged meats
Australia JBS $1,255.4 - -11/19/14 Nagaya Suisan Y.K. Producer and supplier of seafood
Japan Higashimaru Co. - - -11/19/14 Bogorodskie Delikatesi (6.7%) Manufacturer of meats and meat-based food products
Russian Federation Vladprombank - - -11/18/14 Arab Dairy Products Manufacturer of dairy products
Egypt Lactalis Group $79.4 0.92x 21.8x11/18/14 Olympic Brewery Brewer and marketer of beer
Greece Mythos Breweries - - -11/14/14 Vereinigte Karntner Brauereien Manufacturer of beer
Austria Brau Union Osterreich - - -11/14/14 Bright Dairy & Food Co. Producer of milk, cheese, and related dairy products
China Bright Food - - -Note: Includes global change-of-control (unless otherwise indicated) transactions announced in November 2014Sources: Dealogic and Capital IQ
William Blair
Food For Thought 2 Selected Monthly M&A Activity – November
Food & Beverage Producer Transactions (cont.)
($ in millions) Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA11/14/14 Garden Protein International Manufacturer of plant-based foods
Canada Pinnacle Foods $154.5 - -11/14/14 Agroindustrial Complex Dubinino Producer of meat products
Russian Federation SpeedFire Investments - - -11/13/14 Lily Toques Manufacturer and marketer of snack products
France Brioches Fonteneau - - -11/13/14 Peter Lehmann Wines Producer and seller of wine
Australia Casella Wines $60.0 1.43x 15.8x11/13/14 Weetwood Ales Manufacturer of beer
United Kingdom Cheshire Cat Management - - -11/13/14 Uren Food Group Producer and distributor of frozen fruits and vegetables
United Kingdom Existing Management - - -11/12/14 Foodland Producer and exporter of Mediterranean food and beverage products
Serbia Atlantic Grupa - - -11/12/14 D'Gari Producer of jellies and related food products
Mexico Dr. Oetker - - -11/12/14 Valleta Manufacturer of cheese, cream, and milk
Serbia Microfinance Agency - - -11/12/14 Mirna (10.1%) Provider of seafood
Croatia Podravka - - -11/12/14 Castellano's Charcuterie Producer of semi-cured meats, sausages and cooked deli products
United Kingdom Tulip - - -11/11/14 Kinh Do Corp. (Snacks Business) Manufacturer of baked foods and snacks
Vietnam Mondelez International $461.0 - -11/11/14 Alatoni Manufacturer of Mediterranean food products
United Kingdom Winterbotham Darby & Co. - - -11/10/14 Industrias Alimentarias De Navarra Producer of vegetables and other fresh produce
Spain Portobello Capital Gestión $69.0 - -11/10/14 Bahus (51%) Manufacturer of Vodka
Russian Federation Selton Industries - - -11/10/14 Impact Confections Manufacturer of confectionery products
United States Mill City Capital - - -11/10/14 Alpine Beer Co. Brewer of beer
United States Green Flash Brewing Co. - - -11/10/14 Silver Bay Seafoods Processer and distributor of seafood
United States StarKist; Dongwon F&B $160.0 - -11/07/14 Jagdale Industries (Energy Drink Business) Producer of ready-to-drink beverages
India Johnson & Johnson $122.3 - -11/07/14 Van Houtte (Coffee Bistros) Roaster and marketer of coffee and tea
Canada MTY Food Group - - -11/07/14 Pro Natura Wholesaler of organic fruit and vegetables
France Naxicap Partners - - -11/07/14 Bella Vida Brands Distributor of food and beverage products
United States Net Savings Link - - -11/07/14 Hawesko Holding Distributor of alcoholic beverages
Germany Tocos Beteiligung $496.2 0.85x 15.7xNote: Includes global change-of-control (unless otherwise indicated) transactions announced in November 2014Sources: Dealogic and Capital IQ
William Blair
Food For Thought Selected Monthly M&A Activity – November 3
Food & Beverage Producer Transactions (cont.)
($ in millions) Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA11/06/14 Wine Connection Co. Producer and marketer of wine
Thailand Abraaj Capital - - -11/06/14 DSS Group Producer and distributor of bottled water
United States Cott Corp. $1,250.0 - -11/06/14 Maniker F&G Co. Manufacturer and processer of chicken and related food products
South Korea FarmStory Co. $23.0 - -11/06/14 Village Tea Company Distribution Inc. Producer of tea
United States AccelPath LLC - - -11/06/14 Commercialisation De Produits Industriels Et Agro
Alimentaire Manufacturer of seasonings and marinades
France Groupe B2F - - -11/06/14 Agua de Bronchales (61%) Distributor of bottled mineral water
Spain Importaco - - -11/06/14 Casur Sugar Holdings (60%) Producer of sugar
Nicaragua Mayaguez - - -11/06/14 Le Fournil De Sainte Eulalie Operator of a bakery
France Midi Capital - - -11/06/14 Sovereign Brands (Armand de Brignac Champagne) Manufacturer and seller of alcoholic beverages
France Private Investor (Shawn Carter) - - -11/06/14 Dairy Crest Group (Dairy Operations) Manufacturer of dairy products
United Kingdom Robert Wiseman Dairies $126.9 0.09x -11/05/14 10 Barrel Brewing Co. Manufacturer of beer
United States Anheuser-Busch InBev - - -11/05/14 Fujian Zixin Biological Potato Co. Producer and distributor of sweet potato food products
China Brooke Asia $130.3 - -11/05/14 Cherry Valley Farms Provider and distributor of duck and duck products
United Kingdom Faccenda Foods - - -11/05/14 Tibet Highland Natural Water Limited (20%) Supplier and exporter of bottled water
China Tibet Glacier Mineral Water $215.9 - -11/04/14 Arab Dairy Products Manufacturer of dairy products
Egypt Arrow Food Distribution Company $47.9 - -11/04/14 J. Garcia Carrion Manufacturer of fruit juices, soft drinks, and wine
Spain Existing Management - - -11/04/14 Dickerson Distributing Co. Wholesaler of beer
United States Gold Coast Eagle Distributing - - -11/04/14 Cholimex Food Producer of food dressings and sauces
Vietnam Masan Consumer Corporation $36.0 0.86x -11/04/14 Gold Coast Beverage Distributors Manufacturer and distributor of alcoholic beverages
United States Reyes Holdings - - -11/04/14 Princes Tuna Limited Processer and distributor of tuna
Mauritius Seafood Hub - - -11/04/14 Juice Products New Zealand (80%) Manufacturer of vegetable and fruit juice concentrate
New Zealand Sumitomo Corp. - - -11/04/14 Isabel Vineyard Producer of wine
New Zealand Woolworths - - -11/03/14 Best Maid Cookie Co. Manufacturer and wholesaler of gourmet cookies and other specialty baked goods
United States Arbor Investments - - -Note: Includes global change-of-control (unless otherwise indicated) transactions announced in November 2014Sources: Dealogic and Capital IQ
William Blair
Food For Thought 4 Selected Monthly M&A Activity – November
Food & Beverage Producer Transactions (cont.)
($ in millions) Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA11/03/14 Centrale Laitiere Producer and seller of packaged milk and dairy products
Morocco Danone $1,677.9 2.10x 17.1x11/03/14 Agromediterranea Hortofruticola Wholesaler of fresh fruit and vegetables
Spain Grupo Alimentario Citrus - - -11/03/14 The Old Bushmills Distillery Company Producer of alcoholic beverages
United Kingdom Tequila Cuervo La Rojeña - - -11/03/14 United Biscuits Manufacturer and distributor of biscuits, snacks, and frozen foods
United Kingdom Yildiz Holding $3,199.2 - -Note: Includes global change-of-control (unless otherwise indicated) transactions announced in November 2014Sources: Dealogic and Capital IQ
William Blair
Food For Thought Selected Monthly M&A Activity – November 5
Food & Convenience Retail Transactions
($ in millions) Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA11/24/14 Dean & DeLuca Operator of retail stores that sell gourmet specialty food and beverage products
United States Pace Development Corporation $140.0 - -11/21/14 Nilgiris Dairy Farm (98%) Operator of a chain of grocery stores
India Future Consumer Enterprise - - -11/21/14 Circle K Shikoku (65%) Operator of convenience stores that sell groceries and other items
Japan Uny Group Holdings - - -11/19/14 Chief Super Market Inc. Operator of a chain or supermarkets
United States Fresh Encounter - - -11/17/14 Girlyanda (25%) Operator of a chain of food retail stores
Russian Federation Private Investor (Inna Meyer) - - -11/09/14 Dahl's Foods Operator of a chain of grocery stores
United States Associated Wholesale Grocers $4.8 0.04x -11/07/14 Henry's Foods Operator of a chain of grocery stores
United States Crosby's Markets - - -11/07/14 Nature's Pantry Operator of a chain of food retail stores
United States Natural Grocers by Vitamin Cottage - - -11/07/14 Cedicom Centro de Distribucion del Comahue Supermarkets operator
Argentina SA Importadora y Exportadora de la Patagonia $4.7 - -11/06/14 Bottom Dollar Foods (66 stores) Operator of a chain of grocery stores
United States ALDI $15.0 - -11/05/14 Supermarkets (17 supermarkets) Operator of supermarkets in Italy
Italy Carrefour - - -11/04/14 Eroski Sociedad Cooperativa de Consumo (160
supermarkets) Supermarkets operator
Spain Distribuidora Internacional de Alimentacion $182.4 - -11/03/14 La Sirena Alimentación Congelada Operator of a chain of food retail stores
Spain OpCapita $56.2 - -Note: Includes global change-of-control (unless otherwise indicated) transactions announced in November 2014Sources: Dealogic and Capital IQ
William Blair
Food For Thought 6 Noteworthy M&A Activity – LTM
Noteworthy M&A Activity – LTM
Food & Beverage Producer Transactions
($ in millions) Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA11/20/14 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 17.1x11/03/14 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 NMF09/10/14 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 NMF09/02/14 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 9.5x08/15/14 Vietnam Dairy Products (2%) Manufacturer of dairy products Vietnam Fraser & Neave $4,534.6 2.90x 14.1x08/11/14 Chiquita Brands International Producer and distributor of fruit and other fresh produce United States Sucocitrico Cutrale;Banco Safra, Investment Arm $1,193.1 0.39x 13.6x08/11/14 Treasury Wine Estates Producer and distributor of wine Australia TPG Capital $3,323.0 2.00x 14.2x07/14/14 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 15.3x05/22/14 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 - -05/20/14 Treasury Wine Estates Producer and distributor of wine Australia KKR & Co. $3,188.3 1.90x NMF05/12/14 Pinnacle Foods Manufacturer of convenience food products United States Hillshire Brands $6,729.2 2.70x 15.2xNote: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve monthsSources: Dealogic and Capital IQ
William Blair
Food For Thought Noteworthy M&A Activity – LTM 7
Food & Beverage Producer Transactions (cont.)
($ in millions) Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA04/27/14 Goodman Fielder Manufacturer and distributor of food ingredients Australia First Pacific Company $1,698.4 0.84x 8.8x04/25/14 Deoleo Producer of cooking oils Spain CVC Capital Partners $1,261.8 1.16x 12.5x04/17/14 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 NMF04/14/14 DIANA Provider of organic and natural foods France Symrise $1,796.2 2.88x 14.0x03/17/14 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 13.0x03/10/14 Cloverhill Pastry-Vend Producer of baked goods primarily sold through vending machines
United States 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 10.1x02/28/14 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 11.9x02/12/14 Canada Bread Co. Manufacturer of flour based products Canada Grupo Bimbo $1,487.6 1.06x 12.6x01/20/14 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 Suntory Holdings $15,816.6 6.27x 20.4x12/19/13 Shanghai Jinsihou Food Manufacturer and marketer of sweets and chocolates China Hershey Netherlands $584.0 - -12/09/13 Industrias Bachoco (10%) Producer and distributor of poultry Mexico GBM Grupo Bursatil Mexicano $1,588.8 0.51x 5.7xNote: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve monthsSources: Dealogic and Capital IQ
William Blair
Food For Thought 8 Noteworthy M&A Activity – LTM
Food & Convenience Retail Transactions
($ in millions) Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA11/24/14 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 Operator of a chain of food retail stores
United States Natural Grocers by Vitamin Cottage - - -10/31/14 Maruetsu Operator of a chain of supermarkets Japan Kasumi $685.6 0.23x 7.5x10/03/14 Migros Ticaret Operator of a chain of supermarkets Turkey Anadolu Endüstri Holding $2,705.4 0.79x 13.1x09/30/14 Seijo Ishii Co. Operator of a chain of supermarkets Japan Lawson $501.4 1.01x 9.7x09/16/14 Grocery Outlet Inc. Operator of a chain of grocery stores United States Hellman & Friedman - - -08/11/14 Kinsho Store Co. Operator of a chain of supermarkets 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 Operator of a chain of supermarkets 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 14.4x04/11/14 SPAR Group Operator of a chain of grocery and retail stores South Africa Allan Gray $2,059.8 0.45x 13.0x04/07/14 Carrefour Operator of a chain of supermarkets France Motier $1786.3 0.36x 12.2x03/11/14 SPAR Ceska Obchodni Spolecnost Operator of a chain of supermarkets
Czech Republic Albert (Ahold) $266.2 0.36x -03/10/14 Eataly Operator of a chain of food retail stores
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 - 13.5x03/04/14 Wumart Stores Operator of a retail chain of superstores
China Wumei Holdings $559.8 0.20x 4.4x02/13/14 Sobeys (29 stores) Operator of a chain of grocery stores Canada Overwaitea Food Group;Federated Co-operatives $391.0 - -02/11/14 Walmart Chile Operator of a chain of supermarkets Chile Inversiones Australes Tres Limitada $7,575.8 1.36x 15.1x01/31/14 Izumiya Co. Operator of retail stores that sell groceries and other items Japan H2O Retailing Corporation $1,099.2 0.33x 11.6x12/20/13 Arden Group Operator of supermarkets in Southern California United States TPG Capital $364.0 0.80x 9.9xNote: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve monthsSources: Dealogic and Capital IQ
William Blair
Food For Thought Historical M&A Trends in the Food and Food Retailing Industries 9
Historical M&A Trends in the Food and Food Retailing Industries
Volume Trends
U.S. Monthly Announced M&A Activity
12/13 01/14 2/14 03/14 04/14 05/14 06/14 07/14 08/14 09/14 10/14 11/14Food & Beverage Production 14 13 15 12 17 16 12 12 13 14 14 11Food Retail & Convenience 6 4 7 3 2 1 1 0 1 1 1 6U.S. Yearly Announced M&A Activity
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTDFood & Beverage Production 98 128 101 145 127 106 79 109 127 161 147 149Food Retail & Convenience 61 53 65 87 96 64 48 20 32 24 42 27Total Deal Value $7.9 $13.5 $11.5 $29.1 $33.3 $93.3 $20.5 $39.0 $13.9 $36.0 $43.2 $56.4 Global Yearly Announced M&A Activity
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTDFood & Beverage Production 859 799 870 996 1104 1042 948 969 906 814 768 715Food Retail & Convenience 135 174 179 197 221 269 211 230 177 165 158 126Total Deal Value $41.7 $61.1 $97.8 $94.9 $132.3 $140.5 $72.0 $94.2 $125.4 $127.4 $109.7 $127.5 Note: Data represents announced transactions including U.S.-based targets onlySources: Dealogic and Capital IQ as of November 30, 2014
Food & Beverage Production Food Retail & Convenience20 17 22 15 19 17 13 12 14 15 15 17
0102030Number of Deals
Food & Beverage Production Food Retail & Convenience Total Deal Value
159 181 166 232 223 170 127 129 159 185 189 176$0$40$80$120
0100200300Deal ValueNumber
of Deals ($ in billions)
Food & Beverage Production Food Retail & Convenience Total Deal Value
994 973 1,049 1,193 1,325 1,311 1,159 1,199 1,083 979 926 841$0$50$100$150$200
05001,0001,500Deal ValueNumber
of Deals ($ in billions)
William Blair
Food For Thought 10 Historical M&A Trends in the Food and Food Retailing Industries
Participant Trends
Breakdown of Acquirers by Type
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTDPrivate 43.0% 46.8% 44.1% 43.4% 51.9% 47.2% 50.0% 52.8% 49.5% 53.2% 56.0% 48.6% 47.5%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% 21.5%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% 13.3%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% 17.7% Breakdown of Sellers by Type
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTDPrivate 50.0% 30.1% 46.4% 53.1% 50.5% 57.2% 46.3% 53.0% 49.7% 47.1% 53.4% 55.2% 53.2%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% 8.2%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% 8.2%Divestiture 43.2% 49.6% 39.3% 32.2% 35.1% 32.9% 42.0% 33.3% 30.2% 42.8% 36.0% 32.1% 30.4%Note: Data represents announced transactions including U.S.-based targets onlySources: Dealogic and Capital IQ as of November 30, 2014
0%10%20%30%40%50%60%Percent of Deals
0%10%20%30%40%50%60%70%Percent of Deals
William Blair
Food For Thought Historical M&A Trends in the Food and Food Retailing Industries 11
Valuation Trends
Average EBITDA Multiples for Food Transactions(1)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTDAverage EV/EBITDA Multiple 8.6x 8.4x 9.1x 11.4x 9.9x 12.0x 10.4x 9.3x 8.2x 11.8x 13.2x 13.0x 12.9xNumber of Disclosed Deals 20 25 20 14 28 23 20 14 11 7 17 22 32 Average EBITDA Multiples for Beverage Transactions(2)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTDAverage EV/EBITDA Multiple 9.5x 11.8x 14.1x 12.0x 13.5x 13.4x 17.3x 11.7x 10.9x 9.8x 13.6x 14.5x 12.5xNumber of Disclosed Deals 15 9 16 12 15 5 4 9 1 3 6 4 12(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 November 30, 2014
Average EV/EBITDA Multiple Number of Disclosed Deals
8.6x 8.4x 9.1x 11.4x 9.9x 12.0x 10.4x 9.3x 8.2x11.8x 13.2x 13.0x 12.9x
0510152025303540
0.0x5.0x
10.0x15.0x20.0xEV/EBITDA Multiple
Average EV/EBITDA Multiple Number of Disclosed Deals
9.5x11.8x 14.1x 12.0x 13.5x 13.4x
17.3x11.7x 10.9x 9.8x
13.6x 14.5x 12.5x
05101520
0.0x5.0x
10.0x15.0x20.0x25.0xEV/EBITDA Multiple
William Blair
Food For Thought 12 Public Company Trading Statistics
Public Company Trading Statistics
Food Production Companies ($ in millions) % Change Forward Enterprise Value/LTM
Company Market Cap MTD YTD P/E PEG Enterprise Value Sales EBITDA Nestlé $239,646.6 2.7% 2.4% NA NA $263,531.7 2.60x 13.9x Unilever $120,227.6 5.3% 3.0% 17.8x 177.9% $133,712.4 2.02x 12.0x Mondelez International $65,853.0 11.2% 11.0% 19.8x 183.5% $82,063.0 2.35x 15.4x Danone $42,293.7 3.9% (2.1%) 17.1x 197.6% $54,369.8 1.92x 12.6x Associated British Foods $39,513.9 13.8% 23.7% 28.7x 295.8% $40,750.8 1.94x 16.0x General Mills $31,847.7 1.5% 5.7% 17.6x 224.3% $41,766.0 2.35x 12.6x Kellogg Company $23,521.0 3.6% 8.5% 15.6x 200.0% $30,869.0 2.12x 8.2x The Hershey Company $22,148.8 4.6% 3.1% 22.2x 260.6% $24,094.4 3.27x 15.0x Tyson Foods $15,905.8 4.9% 26.5% 14.3x 168.3% $23,658.8 0.63x 11.3x ConAgra Foods $15,514.7 6.3% 8.4% 15.8x 237.6% $23,981.2 1.36x 10.2x Campbell Soup Company $14,231.2 2.5% 4.6% 17.7x 295.2% $18,064.2 2.18x 11.6x Hormel Foods Corporation $13,984.3 (1.5%) 17.5% 23.7x 279.1% $13,900.1 1.53x 13.5x JBS $13,480.7 3.6% 25.4% 12.6x NA $24,643.8 0.53x 6.5x Grupo Bimbo $13,218.5 (3.8%) (8.5%) 23.5x 52.4% $17,570.7 1.28x 11.7x Saputo $11,349.1 2.5% 27.6% 9.2x 92.4% $13,173.0 1.45x 13.5x George Weston $11,304.4 8.2% 21.0% 16.2x 161.8% $28,941.1 0.86x 16.5x The J. M. Smucker Company $10,443.4 (1.4%) (1.0%) 16.4x 211.3% $12,758.3 2.32x 10.8x McCormick & Company $9,573.9 5.1% 7.8% 22.5x 272.8% $10,858.0 2.56x 14.9x Pilgrim's Pride Corporation $8,366.6 13.7% 98.8% 44.9x NA $8,003.5 0.94x 6.8x ARYZTA $7,037.3 (6.1%) 3.9% 13.7x 46.5% $9,374.4 1.46x 10.6x The Hain Celestial Group $5,713.1 4.6% 24.7% 32.9x 222.5% $6,507.9 2.82x 23.1x Flowers Foods $4,093.6 2.6% (9.2%) 16.5x 155.0% $4,902.1 1.31x 11.5x Treehouse Foods $3,426.4 (5.0%) 17.5% 20.2x 189.1% $4,957.9 1.83x 14.6x Lancaster Colony Corporation $2,567.5 2.6% 6.5% 22.9x 208.3% $2,339.9 2.22x 13.6x Snyder's-Lance $2,127.8 1.6% 5.7% 21.5x 143.3% $2,465.3 1.35x 12.8x Cal-Maine Foods $2,026.2 (4.6%) 39.1% 8.7x NA $1,874.7 1.27x 8.6x Sanderson Farms $2,002.8 3.4% 20.0% 9.6x NA $1,883.5 0.69x 5.0x J&J Snack Foods Corp. $1,961.0 2.0% 18.6% 27.6x 306.3% $1,869.7 2.03x 12.9x Fresh Del Monte Produce $1,899.2 5.1% 19.3% 14.1x 281.3% $2,041.6 0.53x 8.8x Post Holdings $1,794.4 6.7% (18.8%) 43.5x 544.1% $5,422.6 3.27x 22.0x Tootsie Roll Industries $1,782.6 (1.7%) (7.8%) NA NA $1,710.4 3.16x 16.9x Dean Foods Company $1,599.7 15.9% (0.8%) 16.0x 216.3% $2,547.5 0.27x 11.6x B&G Foods $1,535.9 (2.9%) (15.6%) 15.9x NA $2,575.2 3.13x 13.7x Diamond Foods $935.9 (1.2%) 15.3% 34.9x 317.3% $1,588.9 1.84x 19.5x Lotus Bakeries $895.5 (1.6%) 16.7% 18.5x 184.7% $973.2 2.09x 12.2x Calavo Growers $742.6 (11.5%) 41.9% 26.7x 231.8% $770.6 1.00x 18.4x Chiquita Brands International $681.2 0.2% 23.6% 13.0x 325.7% $1,275.7 0.41x 12.7x Boulder Brands $660.2 21.6% (31.9%) 18.8x 107.4% $949.9 1.85x 13.9x John B Sanfilippo & Son $462.8 12.6% 69.4% NA NA $519.9 0.64x 9.1x Seneca Foods Corp. $299.0 0.6% (15.2%) NA NA $636.6 0.48x 18.3x Inventure Foods $269.8 4.3% 4.1% 20.1x 146.8% $358.0 1.32x 15.8x Bridgford Foods Corp. $69.8 (7.3%) (20.1%) NA NA $68.8 0.52x NMF Golden Enterprises $45.4 (13.6%) (5.6%) NA NA $51.4 0.38x 8.1x
Mean 2.7% 11.3% 20.3x 216.8% $21,497.1 1.63x 13.0x
Median 2.6% 7.8% 17.8x 209.8% $5,422.6 1.53x 12.8x Note: Data as of November 30, 2014 Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
William Blair
Food For Thought Public Company Trading Statistics 13
Food Ingredients Companies ($ in millions) % Change Forward Enterprise Value/LTM
Company Market Cap MTD YTD P/E PEG Enterprise Value Sales EBITDA Givaudan $16,409.7 7.0% 24.6% 22.0x 183.2% $17,611.4 3.60x 17.6x Kerry Group $13,049.5 9.4% 6.7% 17.7x 156.3% $14,593.1 1.84x 15.3x International Flavors & Fragrances $8,191.9 2.0% 17.7% 18.4x 262.2% $8,735.2 2.86x 13.2x Symrise $7,759.1 6.3% 29.6% 22.2x 167.2% $9,324.6 3.71x 17.8x Barry Callebaut $5,864.6 2.3% (14.7%) 18.3x 83.8% $7,840.7 1.23x 14.2x Sensient Technologies Corporation $2,838.9 (0.4%) 21.5% 18.1x 190.1% $3,273.6 2.24x 12.2x Frutarom Industries $1,505.1 3.8% 22.6% 17.0x NA $1,674.4 2.20x 12.6x T. Hasegawa Co. $585.5 (7.4%) 2.3% 15.5x NA $396.4 0.88x 5.3x Takasago International Corporation $457.8 (1.8%) (18.0%) 11.4x NA $781.2 0.60x 8.7x
Mean 2.4% 10.3% 17.8x 173.8% $7,136.7 2.13x 13.0x
Median 2.3% 17.7% 18.1x 175.2% $7,840.7 2.20x 13.2x Beverage Production Companies ($ in millions)
% Change Forward Enterprise Value/LTM
Company Market Cap MTD YTD P/E PEG Enterprise Value Sales EBITDA The Coca-Cola Company $196,360.5 7.0% 8.5% 20.1x 243.5% $214,679.5 4.65x 16.3x Anheuser-Busch InBev $188,748.8 6.4% 10.4% 19.7x 157.6% $235,414.8 5.03x 13.1x Pepsico $149,810.3 4.1% 20.7% 20.4x 248.8% $169,625.3 2.54x 13.3x SABMiller $89,568.5 (1.1%) 8.5% 19.8x 155.1% $104,341.5 6.15x 17.9x Diageo $77,661.5 5.4% (6.5%) 18.1x 176.1% $94,167.1 5.37x 16.2x Keurig Green Mountain $23,028.0 (6.3%) 88.2% 37.1x 205.6% $22,461.1 4.77x 18.6x Brown-Forman Corporation $20,576.4 4.7% 28.4% 27.1x NA $21,127.4 6.92x 20.8x Monster Beverage Corporation $18,800.6 11.2% 65.5% 37.9x 270.9% $17,804.2 7.42x 24.7x Constellation Brands $18,592.2 5.3% 37.0% 21.4x 160.2% $25,685.5 4.38x 15.1x Dr Pepper Snapple Group $14,386.3 6.9% 51.9% 20.1x 272.6% $16,661.3 2.74x 11.4x Molson Coors Brewing Company $14,341.5 4.0% 37.8% 17.9x 233.3% $17,100.7 4.07x 20.7x Coca-Cola Enterprises $10,621.8 1.4% (0.4%) 13.6x 151.7% $14,551.8 1.74x 10.1x The WhiteWave Foods Company $6,386.7 (1.6%) 59.7% 31.9x 182.3% $7,716.0 2.41x 21.1x Boston Beer Co. $3,435.4 5.6% 8.8% 36.1x NA $3,378.8 3.79x 19.0x National Beverage Corp. $1,165.0 0.1% 24.7% NA NA $1,147.9 1.78x 14.4x Coca-Cola Bottling Co. $876.7 4.6% 29.2% 25.8x NA $1,430.3 0.84x 11.5x Cott Corporation $612.9 8.9% (18.1%) 14.0x NA $1,180.9 0.58x 6.7x Farmer Brothers Co. $456.3 (2.2%) 22.6% 28.2x 141.0% $440.3 0.82x 14.2x Lifeway Foods $302.7 11.9% 15.9% 35.6x 222.6% $306.1 2.66x NMF Jones Soda Co. $17.2 (6.7%) (12.5%) NA NA $16.6 1.26x NMF
Mean 3.5% 24.0% 24.7x 201.5% $48,461.9 3.50x 15.8x
Median 4.7% 21.7% 20.9x 194.0% $16,881.0 3.27x 15.7x Note: Data as of November 30, 2014 Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
William Blair
Food For Thought 14 Public Company Trading Statistics
Food Retail Companies ($ in millions) % Change Forward Enterprise Value/LTM
Company Market Cap MTD YTD P/E PEG Enterprise Value Sales EBITDA The Kroger Co. $29,386.9 7.4% 51.4% 17.0x 188.3% $40,363.9 0.39x 8.6x Whole Foods Market $17,638.4 24.7% (15.2%) 31.0x 173.1% $16,957.4 1.19x 12.8x Safeway $8,030.6 (0.1%) 7.0% 29.2x 316.9% $9,433.1 0.26x 6.2x Sprouts Farmers Market $4,809.1 9.2% (17.3%) 37.7x NA $5,075.2 1.79x 20.8x United Natural Foods $3,751.0 10.5% (0.3%) 28.2x 184.5% $4,184.0 0.62x 16.0x SUPERVALU $2,444.1 8.5% 28.4% 14.0x NA $5,111.1 0.30x 6.3x The Fresh Market $1,983.3 11.6% 1.1% 22.6x 113.7% $1,993.4 1.21x 11.5x Weis Markets $1,240.5 3.3% (12.3%) NA NA $1,146.1 0.42x 7.2x Smart & Final Stores(1) $1,144.3 6.2% 30.5% 21.5x NA $1,624.5 0.49x 10.7x SpartanNash Company $874.8 4.1% (3.9%) 11.9x 119.4% $1,423.6 0.19x 7.1x Ingles Markets $617.7 0.9% 0.1% 13.2x 117.1% $1,523.0 0.40x 7.1x Natural Grocers by Vitamin Cottage $505.5 24.1% (47.0%) 34.7x 130.9% $522.3 1.04x 13.3x Village Super Market $337.4 (13.5%) (22.6%) NA NA $306.2 0.20x 5.9x Roundy's $194.1 19.6% (59.1%) 10.2x 38.5% $804.3 0.19x 5.7x Fairway Group Holdings Corp. $161.2 24.1% (79.6%) NMF NA $380.6 0.48x 12.9x
Mean 9.4% (9.3%) 22.6x 153.6% $6,056.6 0.61x 10.1x
Median 8.5% (3.9%) 22.1x 130.9% $1,624.5 0.42x 8.6x Convenience Store Companies ($ in millions)
% Change Forward Enterprise Value/LTM
Company Market Cap MTD YTD P/E PEG Enterprise Value Sales EBITDA Alimentation Couche-Tard $20,201.5 4.7% 41.6% 23.6x NA $21,866.7 0.57x 13.5x Casey's General Stores $3,233.9 2.3% 19.2% 20.9x 187.6% $3,971.1 0.54x 10.5x The Pantry $622.4 3.0% 58.2% 116.6x 1060.0% $1,509.1 0.22x 7.5x
Mean 3.3% 39.7% 53.7x 623.8% $9,115.6 0.44x 10.5x
Median 3.0% 41.6% 23.6x 623.8% $3,971.1 0.54x 10.5x (1) Company had an initial public offering in 2014 – performance over pricingNote: Data as of November 30, 2014 Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
William Blair
Food For Thought Same-Store Growth – Food & Convenience Retail 15
Same-Store Growth – Food & Convenience Retail
Grocery Stores & Supermarkets
Sprouts Farmers Market 9.0%
Smart & Final Stores 6.6%
Kroger(1) 5.6%
Publix Super Markets 5.0%
Natural Grocers by Vitamin Cottage 3.7%
The Fresh Market 3.3%Whole Foods Market 3.1%Weis Markets 2.6%Ingles Markets 2.1%Safeway(1) 1.8%Village Super Market 1.6%
SpartanNash 0.4%SUPERVALU 0.4%Roundy's (2.7%)
Fairway Group Holdings (3.9%) Convenience Stores Casey's General Stores 9.3%Alimentation Couche-Tard 4.4%The Pantry 2.5%(1) Excludes fuel sales Note: Bolded companies reflect recently announced same-store sales data (announced in November/December 2014) Note: Data represents growth in the most recent reported fiscal quarter over the year-ago period Sources: Company filings and Capital IQ as of November 30, 2014
William Blair
Food For Thought 16 U.S. Public Equity Financing Summary – LTM
U.S. Public Equity Financing Summary – LTM
IPOs ($ in millions) At Filing At Pricing Pricing & Performance - % Change Offer/
Initial Filing Date
Offer Date Ticker Issuer
Shares/ ADS Exc. Ovl.
Filing Range
Deal Value at Midpoint
Shares/ADS Inc. Ovl.
Offer Price
Deal Value
Market Value
Relative to Range 1 Day 1 Month 3 Months Current
06/20/14 09/23/14 SFS Smart & Final Stores 13.5 $12.00 - $14.00 175.5 15.5 $12.00 $186.0 $852.7 In Range 4.2% 9.2% 0.0% 30.5% Mean 4.2% 9.2% 0.0% 30.5%
Median 4.2% 9.2% 0.0% 30.5%
Follow-Ons
($ in millions) Pricing Performance - % Change
% Shares Offered Last Trade Before
Pricing Date Ticker Issuer Business Description
Shares/ ADS Offered (mm)
Offer Price
Deal Value (mm) Primary Secondary
Filing/ 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% 6.0% 11/10/14 SFM Sprouts Farmers Market Specialty retailer of natural and organic food 15.0 $29.38 $440.7 0% 100% 7.9% 7.9% 8.2% 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%) 7.5% 09/08/14 PF Pinnacle Foods Manufacturer and marketer of convenience food products 15.0 $31.90 $478.5 0% 100% 6.0% 6.0% 6.7% 08/12/14 SFM Sprouts Farmers Market Specialty retailer of natural and organic food 15.0 $30.00 $450.0 0% 100% 5.6% 8.5% 6.0% 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% 7.2% 05/21/14 POST Post Holdings Manufacturer and marketer of convenience food products 5.5 $47.70 $262.4 100% 0% (1.6%) (2.5%) (16.1%) 03/27/14 SFM Sprouts Farmers Market Specialty retailer of natural and organic food 15.0 $33.75 $506.3 0% 100% 12.5% 4.5% (5.8%) 03/12/14 POST Post Holdings Manufacturer and marketer of convenience food products 5.0 $55.00 $275.0 100% 0% 8.1% (0.1%) (27.3%) 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% (42.4%) 12/11/13 PF Pinnacle Foods Manufacturer and marketer of convenience food products 17.0 $26.75 $454.8 0% 100% (5.7%) (1.0%) 27.2% Mean 5.3% 4.2% (0.9%)
Median 5.5% 4.1% 6.3% Sources: Dealogic and FactSet Research Systems Note: LTM as of November 30, 2014
William Blair
Food For Thought Selected Upcoming Industry Events 17
Selected Upcoming Industry Events
Date Event Location
December 2014 4-7 SOHO Expo Orlando, FL
January 2015 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
February 2015 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
March 2015 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
April 2015 12-15 Grocery Manufacturers Association Science Forum National Harbor, MD14-16 NACS State of the Industry Summit Chicago, IL 15-16 NGA Day in Washington (NGA, FMI and FIAE) Washington, DC
William Blair
Food For Thought 18 Selected Upcoming Industry Events
Date Event Location
May 2015 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 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
June 2015 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 8-10 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
July 2015 20-23 NBJ Summit Dana Point, CA 26-28 The International Foods Planning TBD 27-29 Center Store Grocery, Snack & Beverage Planning TBD
August 2015 22-25 NACDS Total Store Expo Denver, CO
September 2015 1-2 Food Evolution Summit Phoenix, AZ 15-18 RILA Retail Sustainability Conference Austin, TX 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
October 2015 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, Brazil23-25 Fresh Summit International Convention & Exposition Atlanta, GA 27-28 IFE Americas Food & Beverage Show Miami, FL 28-29 National Chicken Council - Annual Conference Washington, DC
November 2015 10-11 Kosherfest Secaucus, NJ 14-16 Outlook Leadership 2015 (CSP) TBD
William Blair
Food For Thought Selected Upcoming Industry Events 19
General Market Update
Percentage Change
As of 11/30/14 Month-to-Date Year-to-Date
Equity Market Indices Dow Jones Industrial Average $17,828.24 2.5% 7.6% Nasdaq Composite $4,791.63 3.5% 14.7% S&P 500 $2,067.56 2.5% 11.9% S&P Food Products Index $505.54 5.6% 12.4% S&P Food & Staples Retail Index $374.49 9.5% 17.9% S&P Restaurants Index $845.67 5.8% 5.0% WB Corporate Finance Indices(1) Food Index $847.47 4.5% 16.4% Ingredients Index $946.29 5.8% 23.1% Beverage Index $4,393.70 4.8% 13.2% Food Retail Index $925.75 10.6% 15.1% Convenience Store Index $22,043.49 5.4% 48.8% Currencies Dollar to Canadian Dollar $1.14 1.1% 7.3% Dollar to Euro $0.80 0.5% 10.5% Dollar to Peso $13.90 3.1% 6.1% Dollar to Pound $0.64 2.2% 5.8% Commodities(2) Coffee Beans (Cents and 1/100 of a Cent Up to 2 Decimal Places) $1.87 (0.3%) 69.3% Corn (Cents per Bushel) $3.89 3.2% (7.9%) Milk (Cents per 2,000 lbs.) $0.18 (24.3%) (6.9%) Cocoa (Dollars per Metric Ton) $2,843.00 (1.9%) 4.9% Oil (Dollars per Barrel) $66.15 (17.9%) (32.8%) Soybean Oil (Cents per Bushel) $0.32 (7.2%) (17.5%) World Sugar (Cents and 1/100 of a Cent up to 2 Decimal Places) $0.16 (2.8%) (5.0%) Wheat (Cents per Bushel) $5.79 8.6% (4.4%) Yield (%) 52-Week Range
As of 11/30/14
52-Week Low Latest
52-Week High
INTEREST RATES 10-Year Treasury 2.2% 2.1% 3.0% 30-Year Treasury 2.9% 2.9% 3.9% 3-Month LIBOR 0.2% 0.2% 0.2% Fed Funds Effective Rate 0.1% 0.1% 0.1% Prime Rate 3.3% 3.3% 3.3% (1) WB Corporate Finance indices are determined by FactSet Research Systems, as of November 30, 2014. Data is based on a weighted average by market capitalization calculation. (2) Commodities represent futures prices Source: FactSet Research Systems as of November 30, 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
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
Quarterly Market Update – All Industries
William Blair
Food For Thought 20 Domestic M&A Market Summary
Domestic M&A Market Summary
U.S. Activity Trends
M&A Activity
Number of Deals 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM>$750M 147 233 281 362 460 228 156 287 262 312 312 377Middle Market 4,239 4,527 4,453 4,548 4,537 4,766 4,144 6,224 5,360 5,155 4,203 3,920Undisclosed 4,406 5,174 5,353 7,510 8,343 6,494 5,075 6,238 7,775 9,167 7,574 8,182Deal Value $688 $992 $1,297 $1,647 $1,750 $1,075 $886 $1,048 $1,174 $1,104 $1,294 $1,829
Middle-Market M&A Activity
Number of Deals 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM$250M-$750M 314 402 424 536 627 417 269 457 475 467 512 538 $50M-$250M 1,065 1,218 1,265 1,294 1,333 1,195 791 1,138 1,148 1,151 1,095 1,097 <$50M 2,860 2,907 2,764 2,718 2,577 3,154 3,084 4,629 3,737 3,537 2,596 2,285 Deal Value $292 $351 $364 $421 $466 $355 $239 $370 $383 $380 $387 $391
Private-Equity Activity
Number of Deals 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM >$750M 33 61 84 106 149 64 34 94 88 95 88 113Middle Market 626 906 859 998 826 788 742 869 698 660 507 550Undisclosed 541 679 869 1,143 1,341 969 686 1,013 1,249 1336 1154 1429Deal Value $120.4 $224.6 $287.6 $523.7 $644.3 $243.7 $149.3 $272.3 $268.6 $264.5 $282.6 $371.7Note: Year-to-date as of September 30, 2014 Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis. Data represents announced deals only
8,792 9,934 10,087 12,420 13,340 11,488 9,375 12,749 13,397 14,634 12,089 12,479$0$600$1,200$1,800
06,00012,00018,000Deal Value($ in billions)Number of Deals Undisclosed Middle Market >$750M Deal Value
4,239 4,527 4,453 4,548 4,537 4,766 4,144 6,224 5,360 5,155 4,203 3,920$0$200$400$600
010,000
Deal Value($ in millions)Number of Deals <$50M $50-250M $250 -750M Deal Value
1,200 1,646 1,812 2,247 2,316 1,821 1,462 1,976 2,035 2,091 1,749 2,092$0$400$800
05,000
Deal Value($ in billions)Number of Deals Undisclosed Middle Market >$750M Deal Value
William Blair
Food For Thought Domestic M&A Market Summary 21
U.S. Valuation Trends
Median EV/EBITDA Multiples
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTMMiddle Market 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 11.1x Median EV/EBITDA Middle-Market Multiples
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM< $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 7.8x$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 10.9x$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 11.5x Average Acquisition Premiums
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM1-Week Premium 36% 32% 28% 26% 26% 27% 36% 38% 34% 36% 36% 23% 29%4-Week Premium 38% 40% 32% 31% 31% 29% 37% 41% 38% 39% 39% 30% 32%Notes: Data limited to a range of 1 to 100 and LTM is as of September 30, 2014Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis. Data represents announced deals only
3.0x6.0x9.0x12.0x15.0x Middle Market Overall Market
0.0x4.0x8.0x12.0x16.0x < $50M $50M-$250M $250M-$750M
20%30%40%50% 1-Week Premium 4-Week Premium
William Blair
Food For Thought 22 Domestic M&A Market Summary
U.S. Equity Capital Markets Summary
Historical IPO Issuance
Historical Follow-On Issuance
Note: Excludes follow-on offerings for CLEFs, REITs, and SPACs IPO Pricings by Sector – Last 4 Quarters: 243 Total Deals Follow-on Pricings by Sector – Last 4 Quarters:
694 Total Deals
Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis
54139 95 105
175119
187
28 35 13 19 39 25 20 21 21 50 48 56 63 70 54050100150200
2009 2010 2011 2012 2013 2013YTD 2014YTD 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
564 506 399 470657
464 501135 128 50 86 130 98 115 127 152 139 173 193 198 183 120
0100200300400500600700
2009 2010 2011 2012 2013 2013YTD 2014YTD 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
14 2226
9426
61 Business ServicesConsumerFinancialHealthcareIndustrialTechnology
68 4866
174205
133 Business ServicesConsumerFinancialHealthcareIndustrialTechnology
William Blair
Food For Thought Debt Capital Markets Summary 23
Debt Capital Markets Summary
Average Equity Contribution
Quarterly LBO Debt Multiples – Less Than $50 Million EBITDA
Quarterly LBO Debt Multiples – Greater Than $50 Million EBITDA
Sources: Dealogic and Standard & Poor’s as of September 30, 2014
36% 41% 38% 40% 35% 34% 32% 40% 46% 45% 41% 41% 46% 49%31% 37% 32% 32% 30% 29% 30% 38% 47% 40% 37% 37% 33% 39%
0%10%20%30%40%50%60%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD
Less than $50 million EBITDA More than $50 million EBITDA
Total Debt/EBITDA Senior Debt/EBITDA
3.6x 3.8x3.7x
4.0x 4.2x 4.2x 4.9x 4.8x 4.4x 3.4x 3.8x 4.4x 5.0x 5.1x
3.0x3.8x 3.7x
2.2x4.0x 3.8x 4.5x 4.8x
3.3x 3.1x 3.7x 3.2x5.0x 5.1x
2.0x3.0x4.0x5.0x6.0x7.0x
2.0x3.0x4.0x5.0x6.0x7.0x
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total Debt/EBITDA Senior Debt/EBITDA
4.1x 4.5x 4.4x 4.8x 4.9x 5.0x 5.7x6.8x
4.0x 4.8x 5.3x 4.3x 5.1x 5.5x
3.1x 2.6x2.6x 2.9x 2.9x 3.5x
4.4x
6.6x
3.1x 3.9x5.3x
4.0x 4.9x 5.5x
2.0x3.0x4.0x5.0x6.0x7.0x
2.0x3.0x4.0x5.0x6.0x7.0x
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
William Blair
Food For Thought 24 William Blair Food & Beverage and Food Convenience & Retail Investment Banking
William Blair Food & Beverage and Food Convenience & Retail Investment Banking
Food & Beverage Production
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
William Blair
Food For Thought William Blair Food & Beverage and Food Convenience & Retail Investment Banking 25
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 2000and 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
William Blair
Food For Thought 26 Recent William Blair Consumer & Retail Transactions
Recent William Blair Consumer & Retail Transactions
Not Disclosedhas been acquired by
FrutaromIndustries Ltd.November 2014
€220,000,000has been acquired by
Abris Capital PartnersNovember 2014
$186,300,000Follow-on OfferingNovember 2014
$139,840,000Follow-on OfferingNovember 2014
$105,000,000Follow-on OfferingNovember 2014Not Disclosed
Growth Equity RecapitalizationOctober 2014
Not Disclosedhas been acquired by
Monomoy Capital PartnersOctober 2014
$85,000,000Senior Credit FacilitySeptember 2014
$53,117,980Follow-on OfferingSeptember 2014
Not Disclosedhas a strategic investment from
Standard Chartered Private EquityAugust 2014
$156,543,750Follow-on OfferingAugust 2014
$123,214,290Initial Public OfferingJuly 2014
$89,125,000Follow-on OfferingJuly 2014
$373,749,990Follow-on OfferingJuly 2014
$171,646,263Follow-on Offering June 2014
$202,000,000has been acquired by
Snyder’s LanceJune 2014
CAD$170,000,000has been acquired by
TreeHouse Foods, Inc. May 2014Not Disclosed
has been acquired byMilner Milling, Inc.May 2014
$64,166,663Initial Public OfferingMay 2014
$100,624,980Initial Public OfferingApril 2014
$61,300,000has been acquired by
The HainCelestial GroupApril 2014
Not Disclosedhas been acquired by
Bregal PartnersMarch 2014
Not Disclosedhas been acquired by
Greencore GroupFebruary 2014
Not Disclosedhas been acquired by
ADKM, Inc. (DBA Harry's) January 2014
Not Disclosedhas been recapitalized by
TZP GroupDecember 2013
$51,500,000has divested Mervin Manufacturing Inc. toAltamont Capital
PartnersNovember 2013$290,950,000
Initial Public OfferingNovember 2013
$230,000,000Initial Public OfferingNovember 2013
$59,400,000has divested certain assets in Charlotte to
Publix Super MarketsOctober 2013
$120,750,000Initial Public OfferingOctober 2013
$45,755,000 Credit Tenant LeaseOctober 2013
William Blair
Food For Thought William Blair Consumer & Retail Coverage 27
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 AMZN BJ’s Restaurants BJRI Blue Nile NILE Bloomin’ Brands BLMN Cabela’s CAB CarMax KMX Costco Wholesale Corporation COST Carnival Corporation CCL CVS Health Corporation CVS Cheesecake Factory (The) CAKE Dick’s Sporting Goods DKS Chipotle Mexican Grill CMG Fairway Group Holdings FWM Dunkin’ Brands Group DNKN Fresh Market (The) TFM El Pollo Loco Holdings LOCO GNC Holdings GNC Harley-Davidson HOG JD.com JD Life Time Fitness LTM MercadoLibre MELI Lululemon Athletica LULU Natural Grocers by Vitamin Cottage NGVC Panera Bread Company PNRA Sportsman’s Warehouse Holdings SPWH Papa Murphy’s Holdings FRSH Target Corporation TGT Potbelly PBPB Tractor Supply Company TSCO Royal Caribbean Cruises RCL Vitamin Shoppe VSI Sonic Corp. SONC Walgreen Co. WAG Starbucks Corporation SBUX Wal-Mart Stores WMT Tilly’s TLYS Wayfair Inc. W Tumi Holdings TUMI Whole Foods Market WFM Under Armour UA Zulily ZU Urban Outfitters URBN Zoe’s Kitchen ZOES Zumiez ZUMZ Jon Andersen, CFA +1 312 364 8697 Consumer Products
Daniel Hofkin, Analyst +1 312 364 8965 Hardlines, Specialty Retail AptarGroup ATR Advance Auto Parts AAP Boulder Brands BDBD AutoZone AZO Church & Dwight CHD Bed Bath & Beyond BBBY Colgate-Palmolive Company CL Luxottica Group LUX Fox Factory Holding FOXF Mattress Firm Holding Corp. MFRM Inventure Foods SNAK O’Reilly Automotive ORLY J&J Snack Foods JJSF PetSmart PETM J.M. Smucker Company (The) SJM Regis Corporation RGS Jarden Corporation JAH Restoration Hardware Holdings RH Kellogg Company K Ross Stores ROST Keurig Green Mountain GMCR Steiner Leisure STNR Mead Johnson Nutrition Company MJN TJX Companies (The) TJX Perrigo Company PRGO Ulta Salon, Cosmetics & Fragrance ULTA Prestige Brands Holdings PBH Williams-Sonoma WSM Procter & Gamble Company (The) PG Scotts Miracle-Gro Company (The) SMG SodaStream International SODA Tempur Sealy International TPX TreeHouse Foods THS
Amy Noblin, Analyst +1 415 248 2874 Apparel and Accessories Abercrombie & Fitch ANF Nordstrom JWNCoach COH Tiffany & Co. TIFDSW DSW Tumi Holdings TUMIFrancesca’s Holdings FRAN Vera Bradley VRAMichael Kors Holdings KORS Vince Holding Corp VNCE
William Blair
Food For Thought 28 Notes
Notes
William Blair
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 Conduct Authority ("FCA") 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, Regulated by the Financial Conduct Authority (FCA), and is directed only at, and is only made available to, persons falling within COB 3.5 and 3.6 of the FCA Handbook (being “Eligible Counterparties” and Professional Clients). This Document is not to be distributed or passed on to any “Retail Clients.” No persons other than persons to whom this document is directed should rely on it or its contents or use it as the basis to make an investment decision. William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com December 16, 2014 Food For Thought Disclosures 29
Disclosures
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 - 2013, the investment banking group completed 250 merger-and-acquisition transactions worth more than $52 billion in value, involving parties in 27 countries and four continents, was an underwriter on over 20% of all U.S. initial public offerings and arranged more than $11.5 billion of debt inancing.
About William Blair Investment Banking