www.harriswilliams.de Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan, authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.
WHAT WE RE SEEING MARKET UPDATE With over 500 transactions announced through November, the food and beverage M&A market is on track to achieve record activity in 2016. To that end, HW&Co. is pleased to announce the acquisition of Mercer Foods, a leading provider of freeze-dried fruits and vegetables in the United States, to Graham Partners. The transaction marks the latest in HW&Co. s food & beverage practice, building on recent momentum in both the better-for-you ingredients and snacks subsectors. WHAT WE VE BEEN DOING CLOSED HW&CO. TRANSACTIONS a subsidiary of and CONTENTS INDUSTRY VITAL SIGNS EQUITY MARKET OVERVIEW M&A MARKET OVERVIEW DEBT MARKET OVERVIEW RECENT M&A ACTIVITY PUBLIC COMPARABLES EARNINGS CALENDAR GROUP OVERVIEW Harris Williams & Co. is a leading advisor to the food and beverage market. Our significant experience covers a broad range of end markets, industries, and business models. This particular report focuses on trends and metrics in the following areas: Agribusiness Baked and Prepared Goods Beverages Branded and Private Label Dairy Distribution Ingredients Meat and Protein Natural and Organic Processing Produce Restaurant and Retail Snacks CONTACTS Glenn Gurtcheff Managing Director ggurtcheff@harriswilliams.com +1 (612) 359-2702 Tim Alexander Managing Director talexander@harriswilliams.com +1 (612) 359-2716 A Private Investor Group Ryan Budlong Managing Director rbudlong@harriswilliams.com +1 (415) 217-3409 Brant Cash Director bcash@harriswilliams.com +1 (612) 359-2709 Ryan Freeman Director rfreeman@harriswilliams.com +1 (612) 359-2703 Andy Warczak Vice President awarczak@harriswilliams.com +1 (612) 359-2714 www.harriswilliams.de PAGE 1
WHAT WE RE READING HW&CO. ADVISES ON THE SALE OF MERCER FOODS Overview On November 10, 2016 Mercer Foods, Frontenac and Lake Pacific Partners, was successfully sold to Graham Partners. The sale represents the latest in HW&Co. s growing list of better-for-you snack food and ingredient transactions. Company Description Mercer Foods is the leading provider of freeze-dried fruits and vegetables in the United States, with one of the largest and most efficient freeze-drying facilities in the world. The Company has been a leader in the industry for over 35 years, capitalizing on the clean label and better-for-you food industry megatrends. Key Value Drivers for Mercer Foods Recognized as a market leader in the freeze-dried industry for its innovation, quality, and customer service. Viewed as a trusted partner by its blue-chip customer base, relying on Mercer Foods for clean label ingredients. Leader in high growth sectors of the food industry, including freeze-dried packaged snacks. Sustainable competitive advantages due to internally designed equipment and extensive production know-how. Proven management team with over 100 years of industry experience. VITAL SIGNS Representative Applications/Products: and COMMODITY PRICE INDICES 1 Commodity Price Index 120 100 80 60 40 20 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Corn Soybeans Crude Oil Wheat Soybeans: (36.6%) Corn: (52.6%) Crude Oil: (52.3%) Wheat: (61.5%) PROTEIN PRICE INDICES 2,3 Protein Price Index 130 120 110 100 90 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Beef Pork Poultry Beef: 19.2% Pork: 6.2% Poultry: 1.1% PAGE 2
VITAL SIGNS RESTAURANT AND GROCERY STORE SALES INDICES 4 Sales Index 140 120 100 80 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 CONSUMER FOOD PRICE INDEX INFLATION 2 Restaurant Grocery Restaurant: 25.6% Grocery: 11.6% 4.0 Inflation (%) 3.0 2.0 1.0 0.0 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 PUBLIC EQUITY MARKET OVERVIEW KEY TRADING STATISTICS 5 Industry and Segment Stock Price % Change EV/EBITDA % Change Current Valuation Stats Net Debt / 3 Month 1 Year 3 Month 1 Year Fwd PE LTM PE EV/EBITDA EBITDA Consumer and Retail Food and Beverage Inputs Protein Processing (6.9%) 20.1% 10.8% 21.4% 11.7x 13.9x 7.2x 2.8x Fruit and Vegetable 6.1% 30.3% 9.6% (1.8%) 16.8x 20.8x 9.6x 0.6x Ingredients / Flavors (14.3%) 1.7% (10.6%) 2.2% 20.0x 24.0x 14.6x 1.3x Agribusiness (5.3%) 0.8% (6.7%) 30.9% 18.3x 15.8x 10.2x 2.1x Branded Processed Foods (13.7%) 10.6% (12.1%) (7.4%) 19.0x 24.5x 13.0x 2.3x Private Label Foods and Beverages (25.7%) 34.4% 8.7% (7.1%) 26.6x 22.1x 11.1x 3.3x Natural / Organic Foods / BFY (3.6%) 14.8% 4.7% (5.0%) 18.8x 38.4x 18.1x 3.5x Baked Goods 2.3% (6.0%) (5.3%) (21.8%) 16.5x 28.9x 9.3x 2.5x Dairy 0.2% 4.5% 3.3% 6.8% 18.8x 22.4x 12.3x 1.7x Non-Alcoholic Beverages (12.5%) 2.2% (10.5%) 1.4% 20.4x 22.6x 11.1x 1.9x Alcoholic Beverages (8.1%) (4.1%) (8.5%) 0.8% 19.7x 23.5x 13.5x 2.6x Snacks (3.7%) 4.9% (1.1%) 3.8% 22.1x 22.6x 13.5x 1.7x Grocery Distribution (5.8%) 4.3% (1.6%) (4.2%) 17.1x 20.1x 8.6x 2.0x Food Retail 0.5% (4.0%) (2.9%) (6.6%) 18.2x 19.5x 7.3x 2.0x Foodservice 13.2% 8.6% 6.3% 14.9% 21.1x 29.2x 11.0x 4.7x Quick Service Restaurant (2.4%) 7.3% (6.8%) (7.2%) 21.3x 20.8x 10.8x 2.4x Fast Casual (1.6%) (13.1%) (2.2%) (16.9%) 38.5x 33.6x 10.1x 0.7x Differentiated Casual (3.6%) 8.2% 0.4% (12.4%) 23.1x 26.9x 10.0x 1.4x Casual Dining Restaurant 1.6% 19.6% 0.0% (9.6%) 16.1x 22.7x 8.5x 2.3x Fine Dining 5.3% 1.2% 3.2% (1.5%) 16.1x 17.9x 9.6x 2.6x Pizza 9.2% 49.0% 11.5% 1.5% 31.9x 33.8x 17.7x 4.0x Beverage / Snack Retail (6.5%) (12.1%) (7.4%) (14.7%) 23.4x 28.4x 15.6x 2.7x Family Restaurant 3.0% 9.9% 1.9% (0.7%) 19.2x 30.9x 10.2x 2.2x Overall Median (4.2%) 3.9% (2.8%) (5.0%) 20.0x 22.9x 10.6x 2.1x PAGE 3
PUBLIC EQUITY MARKET OVERVIEW PUBLIC COMPANY SECTOR PERFORMANCE (ONE YEAR CHANGE IN STOCK PRICE) 5 Food Retail Alcoholic Bev erages Baked Goods Bev erage / Snack Retail Fast Casual Priv ate Label Fruit and Vegetable Protein Processing Casual Dining Restaurant Natural / Organic / BFY Branded Processed Foods Family Restaurant Foodserv ice Differentiated Casual Quick Serv ice Restaurant S&P Snacks Dairy Grocery Distribution Non-Alcoholic Bev erages Ingredients / Flav ors Fine Dining Agribusiness Pizza (30.0%) (15.0%) 0.0% 15.0% 30.0% 45.0% RECENT EQUITY OFFERINGS 6 Inputs Food and Beverage Consumer and Retail Close Date Filing Date Issuer Ticker Transaction Type Gross Proceeds ($mm) Use of Funds 11/09/16 10/10/16 Saputo Inc SAP Follow-On $224.3 Liquidity for Private Owners 11/08/16 06/07/16 Naturally Splendid Entrp Ltd RCE.P Follow-On $3.0 Debt Repayment Working Capital 11/01/16 07/19/16 Wingstop Inc WING Follow-On $179.3 Liquidity for Private Owners 10/26/16 10/31/16 Chanticleer Holdings Inc HOTR Follow-On $13.5 Debt Repayment Working Capital 10/27/16 10/27/16 Kokos Group Inc - IPO $0.2 Pay Fees & Expenses 10/17/16 10/17/16 Spot Coffee(Canada)Ltd SPP Follow-On $0.4 Capital Expenditure Working Capital 10/14/16 06/07/16 Naturally Splendid Entrp Ltd RCE.P Follow-On $3.0 Debt Repayment Working Capital 10/11/16 10/03/16 Ten Peaks Coffee Co Inc TPK Convertible $11.3 Pursue Growth Opportunities 10/06/16 10/06/16 Xfit Brands Inc XFTB Follow-On - Acquisition Financing 10/03/16 10/03/16 Captiva Verde Industries Ltd VEG Follow-On $0.9 Working Capital 07/29/16 07/29/16 Xylitol Canada Inc XYL Convertible $0.4 Working Capital 10/03/16 10/03/16 Ten Peaks Coffee Co Inc TPK Convertible $11.4 Pursue Growth Opportunities 09/08/16 09/08/16 Liquor Stores NA Ltd LIQ Convertible $52.2 Repay Indebtedness PAGE 4
PUBLIC COMPARABLES 5 Price at As a % of Market Enterprise LTM Revenue Growth LTM Margins P/E EV / LTM EV / 2016E ($ in millions, except per share data) Ticker 11/13/16 52-wk High Cap Value Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA Food and Beverage Branded Processed Foods Associated British Foods plc ABF-GB $32.70 60.5% $25,889 $26,269 $19,015 $2,171 (3.8%) (2.9%) 8.0% 11.4% 25.1x 1.38x 12.1x 1.52x 12.9x B&G Foods, Inc. BGS 40.10 75.9% 2,663 3,971 1,319 314 52.8% 24.3% 35.2% 23.8% 23.2x 3.01x 12.6x 2.86x 12.1x Campbell Soup Company CPB 53.50 78.8% 16,454 19,699 7,961 1,446 (1.5%) (0.4%) 32.1% 18.2% 29.6x 2.47x 13.6x 2.46x 11.0x ConAgra Foods, Inc. CAG 34.93 71.5% 15,291 19,552 11,517 1,733 4.4% (11.1%) 27.3% 15.0% 23.3x 1.70x 11.3x 2.08x 11.8x General Mills, Inc. GIS 61.04 83.7% 36,098 45,426 16,263 3,378 (7.4%) (3.5%) 37.4% 20.8% 22.2x 2.79x 13.4x 2.79x 13.0x Hormel Foods Corporation HRL 34.78 76.1% 18,406 18,424 9,296 1,374 (1.2%) 2.6% 21.1% 14.8% 22.6x 1.98x 13.4x 1.93x 12.6x Kellogg Company K 72.50 83.2% 25,441 32,998 13,059 1,765 (6.1%) (4.2%) 39.5% 13.5% 36.6x 2.53x 18.7x 2.54x 13.3x McCormick & Company, Incorporated MKC 91.52 84.9% 11,541 13,042 4,386 761 2.8% 2.3% 41.6% 17.3% 25.3x 2.97x 17.1x 2.94x 16.7x Nestle S.A. NESN-CH 69.44 83.3% 216,109 238,430 90,925 17,262 (6.3%) (1.7%) 50.8% 19.0% 24.5x 2.62x 13.8x 2.62x 13.6x Post Holdings, Inc. POST 72.14 81.1% 4,664 8,137 5,076 907 NM 72.5% 28.5% 17.9% NA 1.60x 9.0x 1.59x 8.8x Hershey Company HSY 97.25 82.6% 14,744 17,682 7,379 1,764 (1.4%) 2.1% 45.2% 23.9% 25.7x 2.40x 10.0x 2.37x 9.9x J. M. Smucker Company SJM 127.06 80.8% 14,792 20,034 7,689 1,796 21.9% 9.4% 37.3% 23.4% 20.9x 2.61x 11.2x 2.61x 11.8x Mean 4.9% 7.4% 33.7% 18.2% 25.4x 2.34x 13.0x 2.36x 12.3x Median (1.4%) 0.8% 36.3% 18.0% 24.5x 2.50x 13.0x 2.50x 12.4x Private Label Foods and Beverages Cott Corporation BCB-CA $12.57 72.2% $1,733 $3,907 $3,048 $352 9.4% 12.7% 34.4% 11.6% NA 1.28x 11.1x 1.20x 10.2x Seneca Foods Corporation SENEA 36.45 89.2% 355 729 1,346 95 5.7% 1.3% 8.5% 7.0% 7.2x 0.54x 7.7x NA NA TreeHouse Foods, Inc. THS 63.34 60.6% 3,593 6,441 5,274 555 62.5% 33.3% 16.4% 10.5% 37.0x 1.22x 11.6x 1.05x 10.0x Mean 25.9% 15.8% 19.7% 9.7% 22.1x 1.01x 10.1x 1.13x 10.1x Median 9.4% 12.7% 16.4% 10.5% 22.1x 1.22x 11.1x 1.13x 10.1x Natural / Organic Foods / Better-For-You Amplify Snack Brands Inc BETR $14.00 79.9% $1,047 $1,250 $206 $69 26.8% NA 52.5% 33.5% 56.0x 5.20x 18.1x 4.66x 13.2x SunOpta Inc. SOY-CA 6.67 90.6% 571 1,126 1,222 60 3.4% 2.3% 10.6% 4.9% NA 0.92x 18.7x 0.82x 11.8x Pinnacle Foods, Inc. PF 47.79 90.5% 5,638 8,640 2,992 602 13.4% 6.7% 29.6% 20.1% 27.9x 2.89x 14.4x 2.76x 13.4x Hain Celestial Group, Inc. HAIN 34.38 60.3% 3,557 4,349 2,888 374 12.2% 21.5% 22.1% 12.9% 17.2x 1.51x 11.6x 1.45x 10.9x WhiteWave Foods Company WWAV 54.15 95.3% 9,597 11,668 4,171 545 11.2% 19.1% 36.0% 13.1% 48.8x 2.80x 21.4x 2.73x 19.7x Mean 13.4% 12.4% 30.2% 16.9% 37.5x 2.66x 16.8x 2.48x 13.8x Median 12.2% 12.9% 29.6% 13.1% 38.4x 2.80x 18.1x 2.73x 13.2x Baked Goods Aryzta AG ARYN-CH $41.59 79.8% $3,819 $6,563 $4,305 $677 (4.1%) (9.7%) 32.0% 15.7% 41.4x 1.52x 9.7x 1.56x 10.4x Flowers Foods, Inc. FLO 15.50 61.2% 3,218 4,215 4,802 538 28.2% 9.5% 44.4% 11.2% 18.0x 0.88x 7.8x 1.07x 9.4x George Weston Limited WN-CA 76.10 82.3% 9,733 23,357 35,881 2,906 (28.2%) 2.8% 28.8% 8.1% 28.9x 0.65x 8.0x 0.66x 8.0x Grupo Bimbo SAB de CV BIMBOA-MX 2.35 72.2% 11,075 14,926 13,524 1,613 (2.2%) (0.7%) 54.1% 11.9% 38.4x 1.10x 9.3x 1.28x 11.5x Lancaster Colony Corporation LANC 133.96 96.9% 3,674 3,528 1,188 218 4.4% 0.8% 27.4% 18.3% 28.8x 2.97x 16.2x 2.93x 16.4x Mean (0.4%) 0.5% 37.3% 13.0% 31.1x 1.43x 10.2x 1.50x 11.1x Median (2.2%) 0.8% 32.0% 11.9% 28.9x 1.10x 9.3x 1.28x 10.4x PAGE 5
PUBLIC COMPARABLES 5 Price at As a % of Market Enterprise LTM Revenue Growth LTM Margins P/E EV / LTM EV / 2016E ($ in millions, except per share data) Ticker 11/13/16 52-wk High Cap Value Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA Dairy Danone SA BN-FR $63.77 80.8% $41,828 $50,926 $24,482 $4,025 (7.3%) (3.0%) 51.2% 16.4% 20.7x 2.08x 12.7x 2.12x 12.1x Dean Foods Company DF 18.71 88.4% 1,693 2,561 7,715 440 (9.2%) (3.9%) 24.6% 5.7% 16.4x 0.33x 5.8x 0.33x 5.5x Emmi AG EMMN-CH 561.29 79.5% 3,003 3,401 3,311 327 (6.6%) (1.0%) 19.2% 9.9% 22.0x 1.03x 10.4x 1.03x 10.3x Glanbia Plc GL9-IE 16.20 77.4% 4,795 5,519 3,081 372 (3.4%) 0.4% 9.6% 12.1% 22.7x 1.79x 14.8x 1.79x 14.4x Lifeway Foods, Inc. LWAY 12.14 65.7% 196 194 123 9 3.4% 10.2% 26.0% 7.2% 58.9x 1.58x 21.9x 1.54x 20.4x Parmalat S.p.A. PLT-IT 2.66 94.4% 4,934 4,751 7,134 396 (1.6%) 1.1% 2.3% 5.5% 29.4x 0.67x 12.0x 0.68x 9.6x Saputo Inc. SAP-CA 33.47 91.6% 13,130 14,067 8,383 978 (3.6%) 1.1% 18.4% 11.7% 26.0x 1.68x 14.4x 1.69x 14.7x Savencia SA SAVE-FR 65.49 94.5% 919 1,437 4,830 262 (11.9%) (2.7%) 4.3% 5.4% 15.8x 0.30x 5.5x 0.30x 4.7x Mean (5.0%) 0.3% 19.4% 9.2% 26.5x 1.18x 12.2x 1.19x 11.5x Median (5.1%) (0.3%) 18.8% 8.5% 22.4x 1.30x 12.3x 1.29x 11.2x Non-Alcoholic Beverages A.G. BARR p.l.c. BAG-GB $6.42 71.6% $750 $758 $371 $74 (6.7%) (1.0%) 46.3% 20.0% 15.7x 2.04x 10.2x 2.35x 11.7x Cott Corporation BCB-CA 12.57 72.2% 1,733 3,907 3,048 352 9.4% 12.7% 34.4% 11.6% NA 1.28x 11.1x 1.20x 10.2x Dr Pepper Snapple Group, Inc. DPS 82.38 83.4% 15,134 17,829 6,408 1,643 2.6% 2.1% 57.8% 25.6% 17.9x 2.78x 10.9x 2.77x 11.1x Lassonde Industries, Inc. LAS.A 148.63 87.5% 481 745 1,140 126 (1.1%) 3.5% 29.6% 11.0% 22.1x 0.65x 5.9x 0.66x 5.9x Monster Beverage Corporation MNST 41.92 75.5% 23,935 NA 2,941 NA 9.6% 10.5% 63.8% NA 37.5x NA NA NA NA National Beverage Corp. FIZZ 47.06 72.7% 2,191 2,058 737 117 12.2% 4.2% 33.3% 15.9% 30.2x 2.79x 17.6x 2.68x 16.6x PepsiCo, Inc. PEP 103.19 93.0% 147,993 168,935 61,870 12,487 (4.0%) (2.3%) 54.6% 20.2% 22.6x 2.73x 13.5x 2.69x 13.3x Coca-Cola Company KO 41.03 87.1% 176,961 198,785 41,978 11,206 (6.1%) (3.9%) 60.7% 26.7% 24.9x NA 4.74x 17.7x 4.77x 16.9x Mean 2.0% 3.2% 47.6% 18.7% 24.4x 2.43x 12.4x 2.45x 12.2x Median 0.8% 2.8% 50.5% 20.0% 22.6x 2.73x 11.1x 2.68x 11.7x Alcoholic Beverages Anheuser-Busch Inbev Sa ABI-BE $107.49 80.0% $182,000 $230,957 $42,551 $15,353 (9.3%) 2.4% 59.8% 36.1% 44.6x 5.43x 15.0x 5.20x 13.8x Brown-Forman Corporation BF.B 45.34 84.4% 18,148 19,930 2,995 1,101 (1.7%) 1.5% 68.0% 36.7% 17.3x 6.65x 18.1x 6.45x 18.1x Carlsberg A/S CARL.B-DK 85.40 82.9% 13,067 18,401 9,716 1,869 (15.3%) (5.7%) 45.9% 19.2% NA 1.89x 9.8x 1.99x 10.2x Constellation Brands, Inc. STZ 152.39 87.8% 30,607 38,451 7,075 2,366 12.9% 25.3% 48.7% 33.4% 27.7x 5.43x 16.3x 5.33x 15.9x Diageo plc DGE-GB 24.95 84.7% 62,786 76,738 15,532 4,862 (8.7%) (4.3%) 59.8% 31.3% 22.2x 4.94x 15.8x 5.45x 16.3x Heineken NV HEIA-NL 77.01 78.1% 44,355 58,794 22,745 4,822 (4.7%) (2.5%) 12.2% 21.2% 30.3x 2.58x 12.2x 2.62x 10.9x Kirin Holdings Company, Limited 2503-JP 17.03 92.4% 15,567 24,361 18,705 2,152 0.4% (8.8%) 44.2% 11.5% NA 1.30x 11.3x 1.24x 10.7x Pernod Ricard SA RI-FR 109.04 89.4% 28,941 38,889 9,631 2,891 (5.9%) (4.6%) 61.6% 30.0% 21.5x 4.04x 13.5x 4.07x 14.0x Sapporo Holdings Limited 2501-JP 26.78 86.3% 2,110 4,286 4,770 421 7.6% (5.0%) 36.3% 8.8% 23.5x 0.90x 10.2x 0.84x 9.4x Mean (2.7%) (0.2%) 48.5% 25.4% 26.7x 3.69x 13.6x 3.69x 13.3x Median (4.7%) (4.3%) 48.7% 30.0% 23.5x 4.04x 13.5x 4.07x 13.8x Snacks Inventure Foods, Inc. SNAK $8.21 84.2% $162 $277 $274 $7 (4.6%) 11.1% 11.9% 2.5% NA 1.01x NM 1.00x 29.0x J & J Snack Foods Corp. JJSF 119.01 95.1% 2,222 2,069 993 153 1.7% 4.6% 30.4% 15.4% 29.4x 2.08x 13.5x 2.07x 13.4x John B. Sanfilippo & Son, Inc. JBSS 63.46 87.1% 547 578 949 70 4.5% 8.9% 16.4% 7.4% 22.1x 0.61x 8.2x 0.62x NA Mondelez International, Inc. MDLZ 41.19 88.8% 63,614 79,102 26,517 4,847 (14.7%) 7.2% 38.6% 18.3% NM 2.98x 16.3x 3.03x 16.2x PepsiCo, Inc. PEP 103.19 93.0% 147,993 168,935 61,870 12,487 (4.0%) (2.3%) 54.6% 20.2% 22.6x 2.73x 13.5x 2.69x 13.3x Snyder's-Lance, Inc. LNCE 37.11 94.9% 3,565 4,909 2,067 248 22.3% 5.5% 36.2% 12.0% NM 2.37x 19.8x 2.14x 15.6x Mean 0.9% 5.8% 31.4% 12.6% 24.7x 1.97x 14.3x 1.92x 17.5x Median (1.1%) 6.4% 33.3% 13.7% 22.6x 2.23x 13.5x 2.10x 15.6x PAGE 6
PUBLIC COMPARABLES 5 Price at As a % of Market Enterprise LTM Revenue Growth LTM Margins P/E EV / LTM EV / 2016E ($ in millions, except per share data) Ticker 11/13/16 52-wk High Cap Value Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA Inputs Protein Processing Cal-Maine Foods, Inc. CALM $40.95 70.7% $1,791 $1,510 $1,539 $245 (15.9%) 4.9% NM 15.9% 13.9x 0.98x 6.2x 0.99x 6.5x JBS S.A. JBSS3-BR 2.61 64.8% 7,452 23,139 47,951 3,030 (7.0%) 5.7% 12.1% 6.3% 13.6x 0.48x 7.6x 0.44x 6.3x Sanderson Farms, Inc. SAFM 83.55 84.1% 1,886 1,643 2,705 305 (6.2%) 1.3% 17.8% 11.3% 13.5x 0.61x 5.4x 0.58x 4.6x Seaboard Corporation SEB 3,700.00 98.1% 4,333 3,701 5,309 318 (11.0%) (7.2%) 10.1% 6.0% 13.9x 0.70x 11.6x NA NA Tyson Foods, Inc. TSN 66.54 86.4% 19,792 25,784 38,310 3,587 (6.5%) 4.4% 12.7% 9.4% 16.1x 0.67x 7.2x 0.69x 7.0x Mean (9.3%) 1.8% 13.2% 9.8% 14.2x 0.69x 7.6x 0.68x 6.1x Median (7.0%) 4.4% 12.4% 9.4% 13.9x 0.67x 7.2x 0.64x 6.4x Fruit and Vegetable Calavo Growers, Inc. CVGW $64.35 90.0% $1,122 $1,128 $896 53 5.5% 11.7% 12.4% 5.9% 33.2x 1.26x 21.3x 1.17x 16.3x Fresh Del Monte Produce Inc. FDP 62.82 94.8% 3,254 3,395 4,099 400 3.1% 4.6% 12.6% 9.8% 23.1x 0.83x 8.5x 0.85x 9.7x Seneca Foods Corporation SENEA 36.45 89.2% 355 729 1,346 95 5.7% 1.3% 8.5% 7.0% 7.2x 0.54x 7.7x NA NA Total Produce Plc T7O-IE 1.85 93.0% 590 779 3,366 72 1.4% 0.1% 13.6% 2.1% 18.6x 0.23x 10.8x 0.21x 9.8x Mean 3.9% 4.4% 11.8% 6.2% 20.5x 0.71x 12.1x 0.74x 11.9x Median 4.3% 2.9% 12.5% 6.5% 20.8x 0.68x 9.6x 0.85x 9.8x Ingredients / Flavors Givaudan SA GIVN-CH $1,782.57 82.7% $16,460 $17,458 $4,637 $1,103 (0.4%) 0.1% 43.7% 23.8% 24.4x 3.77x 15.8x 3.68x 15.0x Ingredion Incorporated INGR 116.58 83.3% 8,441 9,597 5,709 1,041 2.2% (4.1%) 25.1% 18.2% 17.5x 1.68x 9.2x 1.68x 9.3x International Flavors & Fragrances Inc. IFF 118.40 82.4% 9,404 10,277 3,069 702 0.2% 1.8% 44.1% 22.9% 24.0x 3.35x 14.6x 3.29x 14.2x Kerry Group Plc KRZ-IE 67.77 70.3% 11,928 13,748 6,782 994 (3.8%) (3.7%) 9.9% 14.7% 21.5x 2.03x 13.8x 2.08x 14.4x Sensient Technologies Corporation SXT 75.19 98.7% 3,349 3,944 1,392 268 0.9% (1.9%) 35.1% 19.2% 29.6x 2.83x 14.7x 2.81x 15.1x Symrise AG SY1-DE 59.75 77.1% 7,756 9,531 3,101 623 4.7% 9.2% 39.8% 20.1% 29.6x 3.07x 15.3x 3.03x 14.2x Tate & Lyle PLC TATE-GB 8.55 80.7% 3,988 4,441 3,555 488 (0.2%) (10.2%) 10.3% 13.7% 13.8x 1.25x 9.1x 1.35x 10.0x Mean 0.5% (1.2%) 29.7% 18.9% 22.9x 2.57x 13.2x 2.56x 13.2x Median 0.2% (1.9%) 35.1% 19.2% 24.0x 2.83x 14.6x 2.81x 14.2x Agribusiness Archer-Daniels-Midland Company ADM $41.73 87.2% $24,011 $29,403 $62,354 $2,174 (13.5%) (1.7%) 4.9% 3.5% 15.8x 0.47x 13.5x 0.47x 9.8x Bunge Limited BG 64.30 91.2% 8,966 11,888 41,985 1,370 (7.9%) (11.3%) 0.7% 3.3% 14.8x 0.28x 8.7x 0.28x 6.8x CF Industries Holdings, Inc. CF 27.78 54.6% 6,476 13,575 3,934 1,381 (10.8%) (11.3%) 3.4% 35.1% NM 3.45x 9.8x 3.61x 13.8x Darling Ingredients Inc. DAR 13.51 84.8% 2,223 4,022 3,322 429 (9.0%) 24.5% 13.0% 12.9% 15.2x 1.21x 9.4x 1.19x 9.0x Monsanto Company MON 97.90 85.7% 42,879 50,194 13,490 3,552 (9.9%) (3.2%) 45.0% 26.3% 32.7x 3.72x 14.1x 3.67x 13.3x Andersons, Inc. ANDE 35.15 89.1% 991 1,333 3,959 118 (7.9%) (11.1%) 14.6% 3.0% NA 0.34x 11.3x 0.33x 11.0x Mosaic Company MOS 27.41 83.1% 9,599 12,652 7,464 1,246 (18.1%) NA 7.4% 16.7% 21.9x 1.70x 10.2x 1.78x 11.9x Mean (11.0%) (2.3%) 12.7% 14.4% 20.1x 1.60x 11.0x 1.62x 10.8x Median (9.9%) (7.1%) 7.4% 12.9% 15.8x 1.21x 10.2x 1.19x 11.0x Consumer and Retail Grocery Distribution AMCON Distributing Company DIT $91.00 94.7% $63 $76 $1,295 $13 1.0% 2.2% 5.4% 1.0% 10.9x 0.06x 5.8x NA NA Core-Mark Holding Company, Inc. CORE 34.63 69.3% 1,598 1,841 13,508 129 24.3% 12.6% 5.0% 1.0% 30.5x 0.14x 14.3x 0.13x 11.9x Performance Food Group Company PFGC 24.55 87.3% 2,539 3,796 16,222 316 6.2% 5.8% 12.6% 2.0% 36.6x 0.23x 12.0x 0.23x 10.2x SpartanNash Company SPTN 35.55 99.3% 1,332 1,800 9,450 230 19.9% 6.1% 14.2% 2.4% 22.1x 0.19x 7.8x 0.23x 7.8x SUPERVALU INC. SVU 4.79 66.8% 1,275 3,609 17,121 744 (5.1%) 30.8% 12.9% 4.3% 7.7x 0.21x 4.9x 0.21x 5.0x United Natural Foods, Inc. UNFI 45.13 86.5% 2,279 2,861 8,470 303 3.5% 11.8% 15.6% 3.6% 18.1x 0.34x 9.4x 0.32x 9.1x Mean 8.3% 11.5% 11.0% 2.4% 21.0x 0.19x 9.0x 0.22x 8.8x Median 4.9% 8.9% 12.8% 2.2% 20.1x 0.20x 8.6x 0.23x 9.1x PAGE 7
PUBLIC COMPARABLES 5 Price at As a % of Market Enterprise LTM Revenue Growth LTM Margins P/E EV / LTM EV / 2016E ($ in millions, except per share data) Ticker 11/13/16 52-wk High Cap Value Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA Food Retail Costco Wholesale Corporation COST $149.36 88.0% $65,289 $66,348 $118,719 $4,927 2.2% 4.1% 13.4% 4.2% 28.0x 0.56x 13.5x 0.55x 13.1x Ingles Markets, Incorporated IMKTA 46.65 80.9% 651 1,544 3,785 $193 (0.1%) 0.1% 24.3% 5.1% 16.8x 0.41x 8.0x 0.41x 6.4x J Sainsbury plc SBRY-GB 2.96 69.3% 6,474 8,281 33,585 $1,284 (7.1%) (3.3%) 5.9% 3.8% 9.4x 0.25x 6.4x 0.26x 5.0x Royal Ahold N.V. AD-NL 21.94 85.8% 28,109 26,841 7,652 230 (81.8%) NA 27.5% 3.0% 17.6x 3.51x NM 0.41x 6.4x Natural Grocers by Vitamin Cottage NGVC 12.40 55.3% 279 326 687 47 14.9% 19.2% 25.0% 6.9% 21.4x 0.47x 6.9x 0.44x 6.8x Sprouts Farmers Markets, Inc. SFM 21.74 72.5% 3,094 3,374 3,991 311 17.5% 20.0% 26.1% 7.8% 24.4x 0.85x 10.9x 0.84x 11.3x SUPERVALU INC. SVU 4.79 66.8% 1,275 3,609 17,121 744 (5.1%) 30.8% 12.9% 4.3% 7.7x 0.21x 4.9x 0.21x 5.0x Tesco PLC TSCO-GB 2.50 87.1% 20,419 28,321 78,545 3,432 (18.3%) (7.7%) 5.3% 4.4% NM 0.36x 8.3x 0.41x 9.0x Kroger Co. KR 33.52 78.4% 31,649 42,816 112,409 5,846 3.3% 4.4% 20.1% 5.2% 16.0x 0.38x 7.3x 0.37x 7.3x Village Super Market, Inc. VLGEA 32.62 98.3% 321 307 1,635 68 3.2% 3.5% 26.0% 4.2% 22.2x 0.19x 4.5x NA NA Weis Markets, Inc. WMK 60.80 99.8% 1,635 1,571 2,946 171 3.1% 2.9% 25.0% 5.8% 26.0x 0.53x 9.2x NA NA Whole Foods Market, Inc. WFM 30.30 85.2% 9,644 9,843 15,724 1,368 2.2% 6.8% 34.1% 8.7% 19.5x 0.63x 7.2x 0.62x 7.3x Mean (5.5%) 7.3% 20.5% 5.3% 19.0x 0.70x 7.9x 0.45x 7.8x Median 2.2% 4.1% 24.7% 4.7% 19.5x 0.44x 7.3x 0.41x 7.0x Foodservice Colabor Group Inc. GCL-CA $0.89 84.5% $91 $227 $1,111 $22 (10.8%) (8.3%) 1.8% 2.0% NA 0.20x 10.4x 0.20x 9.5x Sysco Corporation SYY 53.13 97.2% 29,058 36,235 51,773 2,811 6.1% 4.8% 19.3% 5.4% 29.2x 0.70x 12.9x 0.69x 12.5x Chefs' Warehouse, Inc. CHEF 12.85 61.8% 337 644 1,150 58 16.4% 22.7% 25.0% 5.1% NM 0.56x 11.0x 0.54x 11.3x Mean 3.9% 6.4% 15.4% 4.2% 29.2x 0.49x 11.5x 0.48x 11.1x Median 6.1% 4.8% 19.3% 5.1% 29.2x 0.56x 11.0x 0.54x 11.3x Quick Service Restaurant Bojangles, Inc. BOJA $17.55 92.4% $638 $821 $521 $80 9.3% NA 19.6% 15.4% 18.3x 1.58x 10.2x 1.54x 10.1x Jack in the Box Inc. JACK 98.61 96.0% 3,222 4,112 1,555 318 1.6% 14.5% 29.4% 20.4% 29.9x 2.64x 12.9x 2.58x 12.3x McDonald's Corporation MCD 114.22 86.6% 94,853 118,594 24,934 9,209 (2.8%) (3.8%) 42.8% 36.9% 21.6x 4.76x 12.9x 4.82x 12.5x Popeyes Louisiana Kitchen, Inc. PLKI 59.48 94.4% 1,233 1,349 267 87 3.9% 9.2% 62.2% 32.5% 30.3x 5.06x 15.5x 5.01x 15.5x Restaurant Brands International Inc QSR 43.48 88.5% 10,186 19,452 4,279 1,837 30.6% NA 46.9% 42.9% 35.3x 4.55x 10.6x 4.69x 10.5x Sonic Corp. SONC 25.93 71.4% 1,187 1,699 606 167 0.0% 3.8% 36.2% 27.6% 20.1x 2.80x 10.1x 2.95x 10.2x Wendy's Company WEN 11.50 98.8% 2,956 5,031 1,590 458 (13.8%) (14.3%) 40.7% 28.8% 16.5x 3.16x 11.0x 3.51x 12.7x Yum! Brands, Inc. YUM 60.70 66.0% 22,277 28,437 12,894 2,802 (2.0%) (0.4%) 30.1% 21.7% 15.4x 2.21x 10.1x 4.05x 13.1x Mean 3.4% 1.5% 38.5% 28.3% 23.4x 3.34x 11.7x 3.65x 12.1x Median 0.8% 1.7% 38.4% 28.2% 20.8x 2.98x 10.8x 3.78x 12.4x Fast Casual Chipotle Mexican Grill, Inc. CMG $397.08 63.6% $11,495 $11,136 $3,867 $277 (15.4%) 8.0% 10.5% 7.2% NM 2.88x NM 2.84x NM El Pollo Loco Holdings Inc LOCO 12.20 79.0% 469 570 374 60 4.2% NA 20.3% 16.0% 20.3x 1.52x 9.5x 1.50x 9.0x Fiesta Restaurant Group, Inc. FRGI 28.35 73.1% 763 828 720 95 8.4% 9.9% 19.4% 13.2% 33.0x 1.15x 8.7x 1.16x 8.8x Habit Restaurants, Inc. HABT 14.85 60.0% 285 272 271 28 23.9% NA 14.7% 10.2% 59.4x 1.01x 9.9x 0.96x 9.5x Noodles & Co. NDLS 4.55 33.3% 120 202 475 19 6.3% 12.1% 7.6% 4.1% NA 0.42x 10.4x 0.41x 8.3x Panera Bread Company PNRA 202.12 90.2% 4,413 4,762 2,760 403 3.7% 6.3% 14.3% 14.6% 33.6x 1.73x 11.8x 1.70x 11.7x Potbelly Corp. PBPB 13.30 88.7% 335 306 400 39 10.3% 10.2% 14.5% 9.8% 45.9x 0.77x 7.8x 0.75x 7.9x Shake Shack, Inc. SHAK 37.71 80.2% 903 879 246 47 41.3% NA 22.9% 18.9% NM 3.57x 18.8x 3.31x 20.5x Zoe's Kitchen, Inc. ZOES 23.76 56.9% 462 476 256 23 27.2% NA 16.2% 8.8% NM 1.86x 21.0x 1.71x 19.9x Mean 12.2% 9.3% 15.6% 11.4% 38.4x 1.66x 12.2x 1.59x 12.0x Median 8.4% 9.9% 14.7% 10.2% 33.6x 1.52x 10.1x 1.50x 9.3x PAGE 8
PUBLIC COMPARABLES 5 FOOD AND BEVERAGE Price at As a % of Market Enterprise LTM Revenue Growth LTM Margins P/E EV / LTM EV / 2016E ($ in millions, except per share data) Ticker 11/13/16 52-wk High Cap Value Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA Differentiated Casual BJ's Restaurants, Inc. BJRI $39.25 82.5% $913 $996 $961 $128 6.7% 8.1% 10.7% 13.3% 22.3x 1.04x 7.8x 1.00x 7.9x Buffalo Wild Wings, Inc. BWLD 161.90 93.6% 2,947 3,011 1,983 308 14.5% 17.3% 13.8% 15.5% 29.2x 1.52x 9.8x 1.49x 9.9x Chuy's Holdings, Inc. CHUY 30.45 80.6% 512 498 323 41 16.1% 17.2% 15.3% 12.6% 34.2x 1.54x 12.3x 1.49x 11.7x Dave & Buster's Entertainment, Inc. PLAY 45.97 92.1% 1,934 2,200 933 217 15.1% 14.7% 21.5% 23.3% 24.7x 2.36x 10.1x 2.25x 9.4x Ignite Restaurant Group, Inc. IRG 0.32 7.1% 8 121 462 20 17.3% 36.0% 7.9% 4.3% NA 0.26x 6.1x 0.27x 5.3x Cheesecake Factory Incorporated CAKE 57.96 99.9% 2,749 2,782 2,199 279 17.3% 36.0% 15.7% 12.7% 21.5x 1.26x 10.0x 1.22x 9.6x Wingstop, Inc. WING 26.98 81.5% 775 927 87 31 NA NA 68.7% 35.1% 52.9x 10.63x 30.3x 10.12x 26.8x Mean 14.5% 21.6% 21.9% 16.7% 30.8x 2.66x 12.3x 2.55x 11.5x Median 15.6% 17.2% 15.3% 13.3% 26.9x 1.52x 10.0x 1.49x 9.6x Casual Dining Restaurant Bloomin' Brands, Inc. BLMN $19.28 96.4% $2,032 $3,204 $4,297 $429 (3.1%) 1.8% 10.0% 10.0% 36.4x 0.75x 7.5x 0.75x 7.3x Brinker International, Inc. EAT 53.59 97.2% 2,661 4,073 3,253 480 6.5% 4.6% 10.6% 14.8% 16.1x 1.25x 8.5x 1.25x 8.7x Darden Restaurants, Inc. DRI 70.12 99.9% 8,630 8,956 6,961 921 1.5% (7.1%) 17.8% 13.2% 22.5x 1.29x 9.7x 1.27x 9.2x DineEquity, Inc. DIN 82.48 83.5% 1,492 2,759 651 261 (3.4%) 0.5% 57.2% 40.1% 15.0x 4.24x 10.6x 4.31x 10.5x Red Robin Gourmet Burgers, Inc. RRGB 52.90 76.3% 680 981 1,291 143 3.0% 8.3% 12.3% 11.1% 22.8x 0.76x 6.9x 0.75x 6.9x Ruby Tuesday, Inc. RT 3.05 52.9% 184 338 1,068 67 (5.0%) (4.0%) 9.8% 6.3% NA 0.32x 5.1x NA NA Texas Roadhouse, Inc. TXRH 45.06 92.0% 3,178 3,156 1,960 262 11.5% 13.1% 14.5% 13.4% 27.3x 1.61x 12.1x 1.57x 11.8x Mean 1.6% 2.4% 18.9% 15.5% 23.4x 1.46x 8.6x 1.65x 9.0x Median 1.5% 1.8% 12.3% 13.2% 22.7x 1.25x 8.5x 1.26x 8.9x Fine Dining Del Frisco's Restaurant Group, Inc. DFRG $16.00 93.3% $376 $376 $347 $44 7.2% 10.7% 13.2% 12.8% 20.3x 1.08x 8.5x 1.07x 8.2x Fogo de Chao, Inc. FOGO 13.50 75.5% 380 512 285 53 8.4% NA 21.8% 18.7% 13.1x 1.80x 9.6x 1.80x 9.3x Ruth's Hospitality Group, Inc. RUTH 16.65 88.7% 531 565 383 59 22.7% (2.5%) 19.2% 15.3% 17.9x 1.47x 9.6x 1.46x 9.2x Mean 12.8% 4.1% 18.1% 15.6% 17.1x 1.45x 9.2x 1.44x 8.9x Median 8.4% 4.1% 19.2% 15.3% 17.9x 1.47x 9.6x 1.46x 9.2x Pizza Domino's Pizza, Inc. DPZ $159.62 93.1% $7,674 $9,752 $2,394 $478 13.0% 10.5% 30.7% 20.0% 39.8x 4.07x 20.4x 4.00x 20.1x Papa John's International, Inc. PZZA 84.24 99.4% 3,108 3,422 1,691 193 2.7% 6.0% 17.5% 11.4% 33.8x 2.02x 17.7x 1.99x 17.9x Papa Murphy's Holdings, Inc. FRSH 4.43 34.2% 75 187 125 22 9.2% NA 24.7% 17.3% 19.3x 1.49x 8.6x 1.44x 8.6x Mean 8.3% 8.3% 24.3% 16.2% 31.0x 2.53x 15.6x 2.48x 15.5x Median 9.2% 8.3% 24.7% 17.3% 33.8x 2.02x 17.7x 1.99x 17.9x Beverage / Snack Retail DAVIDsTEA, Inc. DTEA $10.50 73.4% $260 $213 $150 $20 NA NA 43.4% 13.4% 27.0x 1.42x 10.6x 1.34x 9.9x Dunkin' Brands Group, Inc. DNKN 48.85 93.4% 4,481 6,580 817 422 2.1% 5.7% 77.6% 51.7% 34.6x 8.05x 15.6x 7.94x 14.4x Jamba, Inc. JMBA 10.18 71.6% 156 142 82 (5) (56.0%) (28.9%) 39.7% NM NA 1.73x NM 1.78x NM Starbucks Corporation SBUX 53.93 85.3% 78,765 80,110 21,316 4,884 11.3% 12.7% 26.7% 22.9% 28.4x 3.76x 16.4x 3.68x 15.0x Mean (9.6%) (1.3%) 41.1% 25.5% 30.0x 3.74x 14.2x 3.69x 13.1x Median 3.2% 5.5% 39.7% 18.5% 28.4x 2.74x 15.6x 2.73x 14.4x Family Restaurant Bob Evans Farms, Inc. BOBE $43.27 89.7% $855 $1,213 $1,323 $123 (1.6%) (4.7%) 12.8% 9.3% 30.9x 0.92x 9.8x 0.92x 8.6x Cracker Barrel Old Country Store, Inc. CBRL 147.91 85.6% 3,554 3,803 2,912 359 2.5% 3.3% 15.3% 12.3% 18.8x 1.31x 10.6x 1.29x 10.3x Denny's Corporation DENN 12.42 99.8% 911 1,138 501 68 1.1% 2.6% 27.6% 13.6% 56.5x 2.27x 16.7x 2.24x 11.5x Luby's, Inc. LUB 4.28 83.9% 124 160 403 19 2.2% 1.0% 31.5% 4.8% NA 0.40x 8.3x NA NA Mean 1.0% 0.6% 21.8% 10.0% 35.4x 1.22x 11.3x 1.48x 10.2x Median 1.6% 1.8% 21.5% 10.8% 30.9x 1.11x 10.2x 1.29x 10.3x PAGE 9
PUBLIC EQUITY MARKET OVERVIEW FOOD AND BEVERAGE INDUSTRY STOCK PERFORMANCE 5 140 130 120 110 100 90 80 70 60 14.3% 10.8% 6.4% 4.3% (0.8%) (25.3%) 50 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Restaurant Natural/Organic Beverage Private Label Food Manufacturing Protein Processing/Dairy S&P 500 M&A MARKET OVERVIEW Highlighted Food and Beverage M&A Transactions 5 HIGHLANDER PARTNERS TO ACQUIRE HILLSIDE CANDY, LLC Enterprise Value: ND Revenue Multiple: ND EBITDA Multiple: ND Announced: November 7, 2016 Highlander Partners has agreed to acquire Hillside Candy for an undisclosed amount. Hillside Candy is a manufacturer of a broad variety of premium organic, sugar-free, and traditional confectionary products marketed under a house of brands. The transaction will allow Highlander to execute its buy and build strategy, utilizing Hillside Candy as a platform for further clean-label confectionary acquisitions. US FOODS TO ACQUIRE SAVE ON SEAFOOD COMPANY, INC Enterprise Value: ND Revenue Multiple: ND EBITDA Multiple: ND Announced: October 19, 2016 US Foods has agreed to acquire Save on Seafood for an undisclosed amount. Save on Seafood processes and distributes fresh and frozen seafood to restaurants and grocery stores throughout the Southeast region of the U.S., accumulating over $80 million in annual sales. The transaction will allow US Foods to expand its seafood offerings, capitalizing on the increase in seafood sales in the Southeast region. CONSTELLATION BRANDS, INC TO ACQUIRE CHARLES SMITH WINES LLC Enterprise Value: $120 mm Revenue Multiple: ND EBITDA Multiple: ND Announced: October 17, 2016 Constellation Brands has agreed to acquire the Charles Smith Wines collection of five super and ultra premium wines. Charles Smith Wines is a US-based producer of high quality wines, selling its Kung Fu Riesling, Velvet Devil Merlot, Boom Boom! Syrah, Eve Chardonnay, and Chateau Smith Cabernet Sauvignon. The transaction allows Constellation Brands to enhance its core wine portfolio and strengthen its operations of wine supply. PAGE 10
Number of Transactions M&A MARKET OVERVIEW* FOOD AND BEVERAGE Food and Beverage M&A Trends 5 MEDIAN FOOD & BEV. TRANSACTION MULTIPLES ANNOUNCED FOOD & BEV. TRANSACTIONS EV / LTM EBI TDA M ultiple 12.0x 10.0x 8.0x 6.0x 4.0x 2.0x 0.0x 11.3x 2.00x 9.9x 9.7x 8.8x 8.3x 9.2x 8.8x 9.1x 1.60x 8.0x 1.20x 0.80x 0.40x 0.00x 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD EV / LTM EBITDA EV / LTM Sales Latest Deals and Announced Private Equity Activity 5 EV / LTM Sales Multiple Aggregate Deal Value ( $ inbillions) $280 $240 $200 $160 $120 $80 $40 $0 $247.7 $110.2 $120.7 $67.2 $55.7 $47.5 $24.0 $9.3 $8.2 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD Aggregate Deal Value # of Deals 600 500 400 300 200 100 0 Number of Transact ions LAST 10 DEALS ANNOUNCED Announced Target Buyer 11/10/2016 FZ Foods AG - Production Site Greussener Salami 11/8/2016 Laboratoire Lescuyer SAS TCR Capital SAS 11/8/2016 Emily's Inflight Food Services Ltd. On Air Dining Ltd. 11/8/2016 The Kraft Heinz Co. - Production Site Livia Corporate Development SE 11/8/2016 Slachthuizen Goossens NV Debra-Meat BVBA 11/7/2016 SFG Holdings Ltd. Japan Agricultural Cooperatives Group 11/7/2016 Cohere SA La Sirena Alimentación Congelada 11/7/2016 Queen City Whiskey - George Remus MGP Ingredients, Inc. 11/7/2016 Hillside Candy LLC Highlander Partners LP 11/7/2016 La Guyennoise SA Maison Le Star SASU PRIVATE EQUITY INVESTMENTS & EXITS 100 96 80 65 65 60 40 20 21 27 14 17 32 34 25 26 18 36 38 43 31 48 46 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD Number of Investments Number of Exits * M&A transactions include European and cross-border deals since 2015. PAGE 11
DEBT MARKET OVERVIEW Food and Beverage Loan Activity 7 QUARTERLY LOAN VOLUME AVERAGE SPREAD ON FOOD & BEVERAGE LOANS Loan Volume by Quarter ($ in billions) $16 $14 $12 $10 $8 $6 $4 $2 $0 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16 Institutional Pro Rata Average Spread Over LIBOR L + 600 L + 500 L + 400 L + 300 L + 200 L + 100 L + 0 2009 2010 2011 2012 2013 2014 2015 1H16 Revolving Credit / Term Loan A Weighted-Average Institutional CREDIT STATISTICS AVERAGE SECONDARY SPREADS EBITDA Multiple 6.0x 4.0x 2.0x 0.0x Debt/ EBITDA Senior Debt/ EBITDA EBITDA/ Cash Interest EBITDA - Capex/ Cash Interest Average Spread Over LIBOR L + 1000 L + 800 L + 600 L + 400 L + 200 L + 0 2012 2013 2014 2015 2016 YTD Recent Debt Offerings 8 Effective Date Borrower Name Description Tranche Amount Type Rating Spread 11/11/16 Inghams Enterprises Pty Ltd Poultry slaughtering/processing USD 191 Term Loan N/A 11/11/16 Inghams Enterprises Pty Ltd Poultry slaughtering/processing USD 130 Term Loan N/A 11/11/16 Inghams Enterprises Pty Ltd Poultry slaughtering/processing USD 96 Multi-Option Facility N/A 11/09/16 Ajinomoto Co Inc Food preparations, nec USD 532 Term Loan N/A 11/07/16 Imsto NV Frozen specialties, nec USD 87 Term Loan N/A 11/07/16 Imsto NV Frozen specialties, nec USD 87 Revolver/Line >= 1 Yr. N/A 11/07/16 Kagome Co Ltd Pickles/sauces/salad dressings USD 283 Term Loan N/A 11/04/16 Fromageries Bel SA Cheese, natural and processed USD 500 Undisclosed N/A 11/02/16 Aryzta Europe Finance DAC Cookies and crackers USD 55 Schuldschein N/A 160 bps 11/02/16 Aryzta Europe Finance DAC Cookies and crackers USD 55 Schuldschein N/A 180 bps 11/02/16 Aryzta Europe Finance DAC Cookies and crackers USD 55 Schuldschein N/A 200 bps 11/02/16 Aryzta Europe Finance DAC Cookies and crackers USD 55 Schuldschein N/A 220 bps 11/02/16 Jacobs Douwe Egberts Roasted coffee USD 1,409 Term Loan A N/A 225 bps 11/01/16 Nagatanien Holdings Co Ltd [Ex-Nag Dehydrated fruit/vegetables/soups USD 58 Revolver/Line >= 1 Yr. N/A 10/31/16 Jacobs Douwe Egberts Roasted coffee Term Loan B N/A PAGE 12
M&A OVERVIEW* Median LTM Trading Multiples & Quarterly Food & Beverage M&A 5 MEDIAN LTM TRADING MULTIPLES QUARTERLY M&A ACTIVITY 16.0x 200 180 M edian Trading M ult iple 15.0x 14.0x 13.0x 12.0x 11.0x Number of Transactions 160 140 120 100 80 60 40 20 4 7 9 13 7 8 5 6 7 10 34 42 53 52 48 39 33 46 47 52 10 70 6 89 10 5 58 57 46 18 8 17 19 19 20 14 141 139 118 107 92 94 82 83 10.0x Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 0 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Food Products, Processing, and Ingredients Retail and Restaurants Strategic Acquirer Private Equity Acquirer Recent Food and Beverage M&A 5 Announced Target Seller Buyer Enterprise Value Enterprise Value Private Equity Geographic ($mm) Sales EBITDA EBIT Involvement Location 11/10/2016 FZ Foods AG - Production Site KTG Agrar SE Greussener Salami - - - - EU 11/8/2016 Laboratoire Lescuyer SAS - TCR Capital SAS - - - - P EU 11/8/2016 Emily's Inflight Food Services Ltd. - On Air Dining Ltd. - - - - EU 11/8/2016 The Kraft Heinz Co. - Production Site The Kraft Heinz Co. Livia Corporate Development SE - - - - P EU 11/8/2016 Slachthuizen Goossens NV - Debra-Meat BVBA - - - - EU 11/7/2016 SFG Holdings Ltd. - Japan Agricultural Cooperatives Group - - - - P EU 11/7/2016 Cohere SA Fasope SL La Sirena Alimentación Congelada - - - - P EU 11/7/2016 Queen City Whiskey - George Remus Queen City Whiskey LLC MGP Ingredients, Inc. - - - - N.A. 11/7/2016 Hillside Candy LLC - Highlander Partners LP - - - - P N.A. 11/7/2016 La Guyennoise SA - Maison Le Star SASU - - - - EU 11/7/2016 Fabryka Pizzy Sp zoo - Sfinks Polska SA - - - - EU 11/7/2016 Espressaroma SpA Comitalia Compagnia Fiduciaria Soimar Srl - - - - P EU 11/4/2016 Slagter Munch ApS - Tulip Food Co. A/S - - - - EU 11/4/2016 Institut de Recherche Biologique - 3i Group Plc - - - - P EU 11/3/2016 Angelic Bakehouse, Inc. - T. Marzetti Co., Inc. - - - - P N.A. 11/3/2016 Crediton Confectionery Ltd. - Devon Sweet Factory Ltd. - - - - EU 11/3/2016 Wilde Thyme Ltd. - Entiér Ltd. - - - - EU 11/2/2016 Mct Dairies, Inc. Allied Dairy Products, Inc. Ornua Co-Operative Ltd. $5.0 - - - Cross Border 11/2/2016 Barrels Unlimited, Inc. - TFF Group - - - - Cross Border 11/2/2016 Flanagan Brothers, Inc. - EDAC Technologies Corp. - - - - N.A. 11/2/2016 Dakri-Dystrybucja Sp zoo - Bake & Co. NV - - - - EU 11/1/2016 Portland Bottling Co. - Limnes Bottling Acquisition Co. - - - - N.A. 11/1/2016 arko GmbH Waldersee J.J.Darboven GmbH & Co. - - - - EU 11/1/2016 Faribault Foods, Inc. - Beverage Business 0 Harvest Hill Beverage Co. / Brynwood Pa - - - - N.A. 11/1/2016 Two Grocery-Anchored Shopping Centers - Phillips Edison Grocery Center REIT I, Inc - - - - N.A. 11/1/2016 Albert Darnell Ltd. - New England Seafood International Ltd - - - - EU 10/29/2016 Spreewaelder Feinbrand - Spreewaelder Feinbrand - - - - EU 10/28/2016 coop eg - REWE Deutscher Supermarkt - - - - EU 10/28/2016 Deoleo SA Deoleo SA De La Cooperativa $7.6 - - - EU 10/27/2016 Domaine Des Hautes Glaces SAS - Rémy Cointreau SA - - - - EU 10/27/2016 Kushtown USA LLC - Finore Mining, Inc. $1.9 - - - N.A. 10/27/2016 Equilibre Restauration SARL - Restauval Sasu - - - - P EU 10/26/2016 Pacific Island Restaurants, Inc. - Restaurant Brands New Zealand Ltd. $105.0 - - - P Cross Border 10/26/2016 F3 Innovations LLC - Scepter Holdings, Inc. - - - - N.A. 10/26/2016 STONEFIRE Grill, Inc. - Goode Partners LLC - - - - P N.A. 10/25/2016 Edeka Zentrale Ag & Co. Kg - Gebers Landmarkt GmbH - - - - EU 10/25/2016 Lush Gourmet Foods LLC - Ferris Coffee & Nut Co. - - - - N.A. 10/25/2016 RAWkin Juice - Hip Cuisine, Inc. - - - - N.A. 10/25/2016 Bodegas Sierra de Guara SL - Grandes Vinos y Vinedos SA - - - - EU 10/24/2016 Hardy Remagen GmbH & Co. KG Remagen Wolfgang Weil & Sohn GmbH - - - - EU * M&A transactions include European and cross-border deals since 2015. PAGE 13
M&A OVERVIEW* Recent Food and Beverage M&A 5 Enterprise Enterprise Value Private Equity European Announced Target Seller Buyer ($mm) Sales EBITDA EBIT Involvement Transaction 10/24/2016 Segrest, Inc. - Central Garden & Pet Co. $60.0 - - - P N.A. 10/24/2016 Thelens VITUS GmbH - Ridderskamp - - - - P EU 10/24/2016 Schluter SA - Government of Singapore $7.4 - - - EU 10/24/2016 ALPEX Sp zoo - Aromes Group Sp zoo - - - - EU 10/21/2016 Kesko Oyj Kesko Oyj Lenta Ltd. $176.0 - - - EU 10/21/2016 General Mills Services (UK) Ltd. General Mills, Inc. Country Style Foods Ltd. - - - - EU 10/20/2016 Domaine Laleure-Piot SCEA - AdVini SA - - - - EU 10/19/2016 Calder Foods Ltd. - Flagship Europe Ltd. - - - - P EU 10/19/2016 Tender Choice Foods, Inc. - Blue Goose Capital Corp. - - - - P N.A. 10/19/2016 Save On Seafood Fishing, Inc. - US Foods, Inc. - - - - N.A. 10/19/2016 Champy SAS - AdVini SA - - - - EU 10/19/2016 Belgocatering NV - Creia International Srl - - - - EU 10/18/2016 Peyton Events Ltd. Peyton & Byrne Ltd. Sodexo Ltd.; Sodexo Services Group Ltd - - - - EU 10/18/2016 The Stirling Creamery Ltd. - Gay Lea Foods Co-operative Ltd. - - - - N.A. 10/17/2016 Save-A-Lot Food Stores, Inc. SUPERVALU, Inc. ONEX Corp. $1,365.0 0.3x 10.6x - P N.A. 10/17/2016 Constellation Brands Canada, Inc. Constellation Brands, Inc. Ontario Teachers' Pension Plan Board $779.2 - - - P N.A. 10/17/2016 Purchasing Systems Ltd. - Sodexo SA - - - - EU 10/17/2016 The FoodFellas Ltd. - CP Foods Uk Ltd. $25.0 0.4x - - EU 10/17/2016 Metzgerei Bach Günter Fleischerei - Metzgerei Bach Guenter Fleischerei - - - - P EU 10/17/2016 La Nouvelle Maison du Sablé SARL - Maison Reignier SAS - - - - EU 10/17/2016 Charles Smith Wines LLC Charles Smith Wines LLC Constellation Brands, Inc. $120.0 - - - N.A. 10/17/2016 GodBiten Konditori AB - Bisca A/S; Scandza AS - - - - EU 10/15/2016 Watergate Inn Enterprise Inns Plc Chester Race Co. Ltd. - - - - EU 10/14/2016 Chipsters Food Oy Ab Chipsters Ab Martin & Servera AB - - - - EU 10/13/2016 Belmont Meat Products Ltd. - Premium Brands Holdings Corp. $37.7 - - - N.A. 10/13/2016 Ilfracombe Wholesale Grocers Ltd. - Savona Provisions Ltd. - - - - EU 10/12/2016 Denny Oil Co., Inc. Denny Oil Co. Sunoco LP $53.0 - - - N.A. 10/12/2016 Nestle Waters France Nestlé SA Ogeu Groupe SAS - - - - EU 10/11/2016 BrandMark Products, Inc. - Mix 1 Life, Inc. - - - - N.A. 10/11/2016 Ruggles Green Texas LLC - Hargett Hunter Capital Partners LLC - - - - P N.A. 10/10/2016 Allied Specialty Foods, Inc. - AdvancePierre Foods Inc. $60.0 - - - N.A. 10/10/2016 Kolak Snack Foods Ltd. - Europe Snacks - - - - EU 10/9/2016 Glacier Water Services, Inc. - Primo Water Corp. $222.4 1.6x 9.1x 29.8x N.A. 10/7/2016 Fort Garry Brewing Co. Ltd. Russell Breweries, Inc. Fort Garry Brewing Co. LP $5.8 - - - Cross Border 10/7/2016 Jurajska Sp zoo - Bewa Sp zoo - - - - EU 10/6/2016 WM. Wrigley Jr. Co. - Mars, Inc. - - - - N.A. 10/6/2016 The Old Shades - Redcomb Pubs Ltd. - - - - EU 10/6/2016 BBC Quality Pastries BV - Equistone Partners Europe Ltd - - - - P EU 10/6/2016 Nell's, Inc. C&S Group Enterprises LLC Weis Markets, Inc. - - - - N.A. 10/6/2016 Action Wholesale Liquor - Boardwalk Distribution Co. - - - - N.A. 10/5/2016 Nothing Bundt Cakes - Levine Leichtman Capital Partners, Inc. - - - - P N.A. 10/5/2016 Sachsenmilch AG - Sachsenmilch Anlagen - - - - EU 10/5/2016 Euro Garages Ltd. - EFR Europe BV - - - - EU 10/5/2016 Destrooper-Olivier NV Wimex Trading AB Jules Destrooper NV - - - - P EU 10/5/2016 Gimborn Holding - Hillhouse Capital Management Ltd - - - - P EU 10/5/2016 Loma Linda & Worthington Foods Kellogg Co. AFT Holdings, Inc. - - - - N.A. 10/5/2016 Hagar AS Ingman Group Oy AB Eesti Leivatööstus OÜ - - - - P EU 10/4/2016 Kronos Foods Corp. Prospect Partners, LLC Grey Mountain Partners LLC - - - - P N.A. 10/4/2016 High West Distillery & Saloon - Constellation Brands, Inc. $160.0 - - - N.A. 10/4/2016 Novasem SRL - Semences de France SA - - - - EU 10/4/2016 Humbly Hemp, Inc. - HealthTalk Live, Inc. $9.0 - - - N.A. 10/3/2016 Tri-Union Frozen Foods Products LLC - Thai Union Group Public Co. Ltd. $0.3 - - - Cross Border 10/3/2016 MeriCal, Inc. - Linden Manager LLC - - - - P N.A. 10/3/2016 WillaKenzie Estate, Inc. - Jackson Family Wines, Inc. - - - - N.A. 10/3/2016 Fleischmann's Vinegar Company, Inc. Stone Canyon Industries LLC Green Plains, Inc. $250.0 2.3x 10.0x - P N.A. 10/3/2016 Polen Gida A S - Martin Braun-Gruppe - - - - EU 10/2/2016 Palco LLC - Rouse's Enterprises, LLC - - - - N.A. 9/30/2016 Caterina Foods LLC - Archer-Daniels-Midland Co. - - - - N.A. 9/30/2016 Thonhauser GmbH - Alex C. Fergusson LLC - - - - Cross Border 9/30/2016 Gellertstadt Bäckerei GmbH - Bäckerei und Konditorei Ralf Groschupf - - - - EU 9/30/2016 Welmar Europe BV Marubeni Corp. Cornelis Vrolijk BV - - - - P EU 9/29/2016 Trevisanalat SpA - Sabelli Spa - - - - EU 9/29/2016 Etablissementen Adriaens SA - Verbist Viande de Bastogne SA - - - - EU 9/29/2016 Aliments la Bourgeoise, Inc. - Agrilait Coopérative Agricole - - - - Cross Border 9/28/2016 Titan Bread Factory - Lantmännen Unibake Sweden AB - - - - EU * M&A transactions include European and cross-border deals since 2015. PAGE 14
FOOD AND BEVERAGE EARNINGS RELEASE CALENDAR Earnings Release Calendar 5 November 2016 Date Company 11/1/2016 MillerCoors LLC (079SJS-E) 11/1/2016 Kikkoman Corp. (2801-JP) 11/1/2016 Kellogg Co. (K-US) 11/1/2016 Molson Coors Brewing Co. (TAP-US) 11/1/2016 Wajax Corp. (WJX-CA) 11/2/2016 NOW, Inc. (DNOW-US) 11/3/2016 Wm Morrison Supermarkets Plc (MRW-GB) 11/7/2016 Wal-Mart de Mexico SAB de CV (WALMEX-MX) 11/7/2016 Sysco Corp. (SYY-US) 11/10/2016 Cott Corp. (Canada) (BCB-CA) 11/11/2016 SABMiller Ltd. (SAB-GB) 11/16/2016 Target Corp. (TGT-US) 11/17/2016 Delhaize Group SA (DELB-BE) 11/17/2016 Wal-Mart Stores, Inc. (WMT-US) 11/21/2016 Tyson Foods, Inc. (TSN-US) 11/22/2016 Campbell Soup Co. (CPB-US) December 2016 Date Company 12/1/2016 Fred's, Inc. (FRED-US) 12/1/2016 The Kroger Co. (KR-US) 12/6/2016 Wolseley Plc (WOS-GB) 12/7/2016 PriceSmart, Inc. (PSMT-US) 12/8/2016 Costco Wholesale Corp. (COST-US) 12/14/2016 Manutan International SA (MAN-FR) 12/15/2016 Empire Co. Ltd. January 2017 Date Company 1/12/2017 Sudzucker AG (SZU-DE) 1/18/2017 Fastenal Co. (FAST-US) 1/25/2017 W.W. Grainger, Inc. (GWW-US) 1/26/2017 John Keells Holdings Plc (JKH.N0000-LK) 1/26/2017 Sligro Food Group NV (SLIGR-NL) February 2017 Date Company 2/2/2017 Kesko Oyj (KESBV-FI) 2/3/2017 AAK AB (AAK-SE) 2/6/2017 Axfood AB (AXFO-SE) PAGE 15
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HARRIS WILLIAMS & CO. FOOD AND BEVERAGE SOURCES 1. IMF 2. U.S. Bureau of Labor Statistics 3. Unweighted Average 4. U.S. Census Bureau 5. Factset 6. Thomson Financial 7. S&P 8. Reuters DISCLOSURES Harris Williams & Co. (www.harriswilliams.com and www.harriswilliams.de) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services. Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan, authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins. THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS. The information and views contained in this report were prepared by Harris Williams & Co. ( Harris Williams ). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams prior written consent. Copyright 2016 Harris Williams & Co., all rights reserved. PAGE 17