Capstone Headwaters

FOOD & BEVERAGE August 2020

TABLE OF CONTENTS INDUSTRY OVERVIEW

 Industry Overview The spread of COVID-19 and the uncertainty of States’ quarantine timelines  Segment Highlight prompted households across the U.S. to secure an overabundance of food supplies. As a result, grocery sales increased 9.2% year-over-year across online  M&A Overview and in-store channels, presenting the strongest monthly sales volume in  Select Transactions Mastercard’s SpendingPulse report history.1 Americans increased spending in  Public Company Data packaged and frozen foods by 76% and 93% week-over-week, respectively, as lockdown measures were imposed (Boston Consulting Group).2 This “pantry  Report Contributors loading” has since normalized and has provided significant tailwinds for  Consumer & Retail Group distributors and producers of branded packaged and frozen foods with grocery  Firm Track Record client exposure.

The defensible nature of the Food & Beverage industry has promoted a strong recovery in EBITDA multiples across all Capstone Headwaters’ Food & Beverage public company indices. The largest increase from a trough in the second half of March to the end of July was in the Distribution segment (+48.8%) and the lowest increase was in the Branded Processed Foods segment (+23.1%). However, segments including Branded Processed Foods, Ingredients & Flavors, Natural, Organic & Better-for-you, and Snacks maintained at least 70% of their 2020 high at their respective troughs, displaying the resilient nature of the Food & Beverage industry. CONTACTS Public Food & Beverage Company EBITDA Multiples Tom Elliott Natural/Organic/BFY Alcoholic Beverages Managing Director Protein Processing Branded Processed Foods 813-251-7285 Ingredients/Flavors Distribution 24x March 11: WHO declares [email protected] COVID-19 a pandemic 20x Yogesh Punjabi 16x Director 12x 617-619-3305 8x [email protected] TEV/EBITDA 4x 0x

Source: Capital IQ www.capstoneheadwaters.com August 2020 3 Food & Beverage | August 2020

SEGMENT HIGHLIGHT: SUPPLY CHAIN & DISTRIBUTION

Quarantine measures and the subsequent downturn have COVID-19 Implications provided refreshed insight into the Supply Chain & Distribution segment. Operators that were able to swiftly Grocery Defensibility assess and react to operational and financial risks were Distributors with a large grocery customer better equipped to weather the storm. While some base have performed better than those distributors that serve Restaurant, Hospitality, and Tourism serving Food Service end markets. markets were severely disrupted and experienced substantial volume and revenue declines. Packaged Food Demand The new normal excludes buffet-style food On the other hand, distributors that displayed agility in the service, instead promoting demand for face of supply chain disruptions, and those that serve packaged meals in schools, food banks, etc. essential industries have exhibited COVID-19 resiliency and may emerge stronger with higher volumes and revenues. Acquisition Opportunities The swiftness of the virus’ spread and its uncertain future Distributors with COVID-19 exposure expect will continue to create COVID-19 induced trends. valuation declines and present attractive M&A opportunities for willing acquirers.

Capstone’s Conversations with Private Equity Firms

Capstone maintains relationships with an extensive private equity network, which gives us access to unique buyer perspectives and industry insights. We spoke with many of these private equity firms in Q2 to learn more about the current state of the Distribution environment and COVID-19’s unprecedented impact on their respective distribution businesses.

COVID-19 Impact: The impact to food distributors has been significantly dependent on end markets served and management’s agility in the face of the unprecedented shock. Distributors serving institutional customers (e.g. education, corrections facilities, healthcare and food banks), along with those serving the grocery channel, have largely proven to be resilient and performed better than their peers. In late March, grocers experienced a flood of “pantry loading” as the U.S. braced for the rapid spread of the novel coronavirus. As a result, distributors serving the grocery channel experienced heightened demand and many saw a spike in volumes. Meanwhile, distributors that serve Restaurants, Hospitality, and Tourism markets have experienced unprecedented sales declines amid lockdown measures, resulting in an abundance of excess inventory that had to be thrown away or distributed to alternative channels. In many places across the country, schools retrofitted their cafeterias into food banks, serving existing students as well as their communities which offered a substitute for distributors to sell its perishable excess inventory.

COVID-19 Response: Private equity firms across the country turned their focus internally toward portfolio holdings to assess liquidity and operational exposure, with many drawing down on their credit facilities. Key characteristics of successful COVID-19 risk mitigation efforts included immediate and swift responses with management teams communicating with suppliers and customers to ensure transparency and timely fulfillment across the supply chain. As a result of this transparency, distributors were able to project accounts receivable collections, inventory levels, and supplier capabilities in order to make informed decisions to cut selling, general & administrative (SG&A) expenses or furlough workers. As essential businesses, distributors felt a responsibility to their communities and not only stocked grocers but also sought substitute channels such as food banks and nursing homes. Many distributors serving essential channels only experienced temporary closures or slowdowns, retaining employees on payroll and hiring additional labor as demand spiked. Experienced management teams were able to meet demand by shifting suppliers, product mixes, and customer channels. For example, a poultry shortage and a swine pandemic in Asia prompted price increases, inducing protein distributors to shift inventory toward beef. In addition, distributors shifted to sell into direct-to-consumer channels to reduce wasted inventory.

M&A Takeaways: The Food & Beverage Distribution sector has experienced significant interest from private equity investors due to the industry’s buy-and-build growth potential and recession-resistant nature, presenting ample add-on investment opportunities to capture additional market share in the fragmented, regionally-centric market. PE firms may look to roll-up distressed companies in the space as they did following the Great Recession, or may look to enhance their defensibility by acquiring businesses that displayed COVID-19 resilience. Deals are expected to include more term structure to bridge any valuation gap while lenders remain cautious in buyout transactions. 2 Food & Beverage | August 2020

M&A OVERVIEW

Deal activity in the Food & Beverage industry was robust Monthly Transaction Volume from January through March, outpacing 2019 volumes by 2019 2020 nearly 15%. However, deal activity significantly slowed 50 starting in April and is now down 10.6% through July. 41 38 Strategic sellers and buyers as well as PE firms 40 31 33 immediately refocused on internal operations and risk 30 29 29 30 26 26 mitigation, addressing liquidity and operational concerns. 23 22 Concurrently, lending conditions substantially tightened, 20 20 with leverage multiples decreasing one to two turns in late 11 13 March, according to Capstone’s Debt Advisory Group. 10

June and July deal activity rebounded and ended the Transaction Volume months above 2019 levels as well capitalized buyers that 0 have performed stronger relative to their peers seek opportunistic acquisitions of distressed businesses. As lending markets begin to stabilize, PE firms are expected to resume add-on acquisitions to bolster current platform investments’ market share, geographic reach, and Year-To-Date Segment Breakdown customer mix resiliency. As capital markets attempt to normalize, PE buyers are expected to rely on tuck-in Beverages 42 acquisitions to utilize the PE industry’s $1.2 trillion war Distribution 29 chest of dry powder (2019) as a means to expand portfolio Natural/Organic/BFY 23 company value creation, according to Pitchbook. Other 23 Confections and Snacks 20 Through July, beverage companies have demonstrated the Flavors/Ingredients 17 largest appetite for M&A, accounting for 23.7% of total Protein Processing 14 deal activity. Distribution (16.4%) and Natural, Organic, Branded Processed Foods 9 and Better-for-you (13.0%) segments have also garnered investor interest. Attractive M&A opportunities remain 0 10 20 30 40 50 especially for distributors that serve grocers and essential Transaction Volume food service clients, which have proved resilient during the COVID-19 downturn. Source: Capital IQ, PitchBook, FactSet, and Capstone Research

Notable Deal Highlights

Lineage Logistics, LLC Acquires QSR and Casual Dining Distribution of Maines Paper & Food Service, Inc. (May, Undisclosed) – Lineage Logistics, backed by Bay Grove Capital, has acquired the Quick Service Restaurant (QSR) and Casual Dining Distribution of leading food service distributor Maines Paper & Food Service. Terms of the deal were not disclosed. Maine’s QSR and Casual dining business is a last mile food service distributor, serving over 2,500 brand restaurants including Burger King, Tim Hortons, Olive Garden, Longhorn Steakhouse, Cheddar’s Scratch Kitchen, and The Capital Grille. The acquisition bolsters Lineage Logistics’ end-to-end supply chain solutions in the QSR and Casual Dining Hospitality markets and builds upon Lineage’s extensive temperature-controlled logistics network. Lineage has completed over 40 acquisitions and operates over 250 facilities in 11 countries.

PepsiCo, Inc. Acquires Rockstar, Inc. (March, $4.55 Billion) – Pepsi (Nasdaq:PEP) has acquired leading energy drink producer Rockstar for an enterprise value of $4.55 billion, structured with a cash payment of $3.85 billion and a $700 million contingent consideration related to tax benefits associated with the transaction, payable over up to 15 years. Founded in 2001, Rockstar produces functional beverages in over 30 flavors across 30 countries. The leading beverage brand previously had a distribution agreement with Pepsi since 2009 in North America. The acquisition significantly enhances Pepsi’s leading energy drink portfolio that includes Mountain Due, Kickstart, GameFuel, and AMP. Pepsi views the Functional Beverage market as a highly profitable, high growth space and follows their strategic initiative to gain market share. In addition, Pepsi has recently entered into an exclusive U.S. distribution agreement with Vital Pharmaceutical’s brand Bang Energy. 3 Food & Beverage | August 2020

SELECT TRANSACTIONS: NATURAL, ORGANIC & BFY

Date Target Acquirer Target Business Description American Fitness Operates as a sports supplement retailer offering sports nutrition and lifestyle 07/22/20 Gotham Cigars Wholesalers supplements through its e-commerce platform.

Nestlé Health 06/10/20 Vital Proteins Produces collagen based nutrition products, such as powders, beverages, and bars. Science

06/02/20 ELXR Juicelab LoveKind Manufactures cold-pressed juices, protein and plant-based milks, wellness shots, and other BFY beverages. American Pacific 04/27/20 SaltStick Group Produces electrolyte replacement products including nutritional supplements.

Cambridge 03/27/20 Ultimate Superfoods Commodities Wholesales raw and organic superfoods in the U.S.

03/24/20 Nosh Foods Grays Peak Capital Provides branded easy-to-eat, organic snack food products for babies and toddlers.

Casbah Sahara Natural 03/18/20 US Durum Products Produces vegetarian prepared mixes and side dishes, including organic couscous, pilafs, Foods falafel, and others. Cedar’s Mediterranean 02/20/20 Brekki Foods Produces packaged oat-based breakfast products.

Supplies specialty non-GMO sweeteners, catering to food manufacturers in North 01/22/20 Sweet Nature Green Boy Group America.

Limitless Venture Produces keto products including stir-in supplements, MCT powder, organic oils, and 01/14/20 KetoSports Group CBD products.

SELECT TRANSACTIONS: DISTRIBUTORS

Date Target Acquirer Target Business Description Monterey Bay Assets 06/16/20 Harbor Distributing Supplies alcohol in the Monetery Bay, California. of Elyxir

Distributes poultry and other meat based protein products in the Southeast and 05/11/20 Butts Foods Quirch Foods Midwest.

05/08/20 Pierlesss Fish Baldor Specialty Foods Supplies fresh seafood to chefs and restaurants.

Flanagan Provides food distribution and other related management services to the Corrections 03/12/20 Summit Food Service Foodservice market.

Distributes specialty foods, tools, and chef clothes to executive and pastry chefs in the 03/05/20 EuroGourmet Fortune Fish Company Midwest and South. Supplies beverages and related equipment to schools, restaurants, bars, and other food 02/10/20 Trident Beverage Ronnoco Coffee service clients.

02/03/20 Dancing Deer Baking Hudson River Foods Offers baked snacks such as brownies, cookies, cakes, and baking mixes.

Renaissance Food 01/21/20 SFFI Distributes fresh-but fruits to the Food Service and Hospitality markets. Group

Operations of Seattle Fortune Fish & Distributes and processes seafood in the Midwest to retailers and food service 01/15/20 Fish Gourmet operators.

01/14/20 Claypool Distributing Crest Beverage Supplies alcoholic beverages in Southeast and Imperial County, California.

Source: Capital IQ, PitchBook, FactSet, and Capstone Research 4 Food & Beverage | August 2020

SELECT TRANSACTIONS: BRANDED PROCESSED FOODS & BEVERAGES

Date Target Acquirer Target Business Description Pennsylvania 06/10/20 Nassau Candy Produces and distributes snacks and confectionary products to a national customer Dutch Candies base. Havrefras Brand of 06/02/20 Orkla Foods Provides healthy cereal products under the Havrefras, Rug Fras, and Mini Fras brands. PepsiCo

05/05/20 Chicago Custom Foods Sauer Brands Offers branded popcorn seasonings.

Produces meat, poultry, and plant-based snacks through retail stores and e-commerce 05/04/20 Krave Pure Foods Sonoma Brands channels.

Manufactures branded confectionary pies for retailers, bakeries, and food service 04/08/20 Kenny’s Great Pies Kaho Partners channels.

Give and Go Prepared Produces branded snacks and baked goods under five brands sold to in-store bakery of 02/25/20 Mondelez Foods retailers.

Offers branded frozen french fries, tater tots, and rings made from vegetables, legumes, 02/19/20 Farmwise B&G Foods and potatoes.

Entrepreneurial Equity 02/12/20 Kronos Foods Manufactures Mediterranean food products Partners

01/30/20 Mochi Ice Cream Lakeview Capital Produces Japanese pastries and frozen desserts through grocery channels.

01/03/20 Fairlife Coca-Cola Provides ultra-filtered milk, protein shakes, creamers, and other dairy-based products.

SELECT TRANSACTIONS: BEVERAGES

Date Target Acquirer Target Business Description

07/21/20 Nerd Beverage Beverage Holdings Manufactures mental acuity and energy beverages which enhance focus, concentration, memory, and energy with nootropics and nutrients. Newport Craft Brewing 06/22/20 Radiant Pig Beer Manufactures beer based in New York City & Distilling

06/09/20 Pampelonne Precept Wine Produces wine based canned cocktails.

White Whale Provides premium artisan coffee through its e-commerce platform and offers a 05/28/20 SCB Global Java Coffee subscription model.

04/27/20 Mati NOBL Coffee Produces organic energy drinks.

03/11/20 Rockstar PepsiCo. Provides a leading energy drink brand internationally.

02/28/20 Eire Born Spirits Becle Comprises the Proper No. Twelve Whiskey brand.

Produces integrated coffee, tea, and extract products serving retailers, restaurants, and 01/31/20 S&D Coffee & Tea Westrock Coffee hospitality clients.

01/30/20 XYZ Beverage Constellation Brands Provides alcoholic seltzer beverages under the Press Premium Alcohol Seltzer brand.

01/23/20 Limitless Keurig Dr Pepper Produces caffeinated sparkling water, cold brew coffee, and green teas products.

Source: Capital IQ, PitchBook, FactSet, and Capstone Research 5 Food & Beverage | August 2020

PUBLIC COMPANY TRADING & OPERATING DATA: BRANDED PROCESSED FOODS

Price % 52 Wk Market Enterprise LTM EV / LTM Company 07/31/20 High Cap Value Revenue EBITDA Margin Revenue EBITDA Associated British Foods plc $23.19 64.7% $18,294.3 $22,025.7 $20,349.1 $2,083.0 10.2% 1.1x 10.6x B&G Foods, Inc. $28.91 97.5% $1,854.9 $3,591.6 $1,838.4 $337.5 18.4% 2.0x 10.6x Campbell Soup Company $49.57 86.1% $14,978.3 $20,690.3 $8,363.0 $1,493.0 17.9% 2.5x 13.9x Conagra Brands, Inc. $37.45 99.0% $18,247.3 $27,766.5 $11,054.4 $2,193.2 19.8% 2.5x 12.7x General Mills, Inc. $63.27 96.6% $38,586.4 $51,662.7 $17,626.6 $3,713.1 21.1% 2.9x 13.9x Hormel Foods Corporation $50.86 98.7% $27,411.1 $27,168.6 $9,599.1 $1,287.4 13.4% 2.8x 21.1x Kellogg Company $68.99 94.7% $23,658.0 $32,072.0 $13,472.0 $2,200.0 16.3% 2.4x 14.6x McCormick & Company, Inc. $194.90 99.0% $25,965.9 $30,222.5 $5,427.1 $1,182.1 21.8% 5.6x 25.6x Nestlé S.A. $118.63 95.5% $330,387.4 $367,680.3 $93,504.1 $17,896.0 19.1% 3.9x 20.5x Post Holdings, Inc. $88.74 79.0% $6,050.1 $12,725.8 $5,833.0 $1,093.8 18.8% 2.2x 11.6x The Hershey Company $145.41 89.6% $30,248.6 $34,379.5 $7,947.2 $1,887.3 23.7% 4.3x 18.2x The J. M. Smucker Company $109.35 87.0% $12,477.7 $17,870.1 $7,801.0 $1,738.5 22.3% 2.3x 10.3x

Mean 18.6% 2.9x 15.3x EV = enterprise value; LTM = last twelve months Median 18.9% 2.5x 13.9x $ in millions, except per share data Harmonic Mean 17.6% 2.4x 14.1x

PUBLIC COMPANY TRADING & OPERATING DATA: DISTRIBUTION

Price % 52 Wk Market Enterprise LTM EV / LTM Company 07/31/20 High Cap Value Revenue EBITDA Margin Revenue EBITDA AMCON Distributing Company $68.72 69.2% $38.8 $117.9 $1,080.5 $11.3 1.0% 0.1x 10.4x Core-Mark Holding Company, Inc. $26.52 73.7% $1,195.7 $1,787.1 $13,439.3 $156.4 1.2% 0.1x 11.4x Performance Food Group $28.02 51.4% $3,712.1 $7,180.5 $25,211.4 $472.0 1.9% 0.3x 15.2x SpartanNash Company $21.03 87.8% $750.2 $1,633.8 $8,850.1 $164.8 1.9% 0.2x 9.9x Sysco Corporation $52.85 61.5% $26,827.6 $36,106.7 $59,501.6 $3,024.9 5.1% 0.6x 11.9x United Natural Foods, Inc. $19.85 84.9% $1,085.5 $4,904.4 $25,232.0 $480.4 1.9% 0.2x 10.2x US Foods Holding Corp. $20.30 47.1% $4,471.7 $9,478.7 $26,364.0 $834.0 3.9% 0.4x 11.4x

Mean 2.3% 0.3x 11.5x EV = enterprise value; LTM = last twelve months Median 1.9% 0.2x 11.4x $ in millions, except per share data Harmonic Mean 1.8% 0.2x 11.3x

Source: Capital IQ as of July 31, 2020

6 Food & Beverage | August 2020

PUBLIC COMPANY TRADING & OPERATING DATA: NON-ALCOHOLIC BEVERAGES

Price % 52 Wk Market Enterprise LTM EV / LTM Company 07/31/20 High Cap Value Revenue EBITDA Margin Revenue EBITDA A.G. BARR p.l.c. $5.65 62.7% $628.2 $624.2 $334.2 $46.4 13.9% 1.9x 13.5x Lassonde Industries Inc. $122.30 86.2% $848.0 $1,189.2 $1,241.5 $165.0 13.3% 1.0x 7.2x Monster Beverage Corporation $78.48 100.0% $41,324.7 $40,419.7 $4,306.8 $1,550.7 36.0% 9.4x 26.1x National Beverage Corp. $64.15 90.8% $2,991.0 $2,730.7 $1,000.4 $183.0 18.3% 2.7x 14.9x PepsiCo, Inc. $137.66 93.5% $190,608.6 $226,559.6 $67,654.0 $12,360.0 18.3% 3.3x 18.3x The Coca-Cola Company $47.24 78.6% $202,916.5 $237,145.5 $34,326.0 $11,249.0 32.8% 6.9x 21.1x

Mean 21.8% 3.8x 15.7x EV = enterprise value; LTM = last twelve months Median 17.9% 2.9x 16.1x $ in millions, except per share data Harmonic Mean 18.9% 2.3x 13.6x

PUBLIC COMPANY TRADING & OPERATING DATA: ALCOHOLIC BEVERAGES

Price % 52 Wk Market Enterprise LTM EV / LTM Company 07/31/20 High Cap Value Revenue EBITDA Margin Revenue EBITDA Anheuser-Busch InBev SA/NV $54.54 51.3% $107,512.3 $208,385.6 $47,804.0 $14,389.0 30.1% 4.4x 14.5x Brown-Forman Corporation $67.63 92.8% $31,443.2 $33,423.2 $3,363.0 $1,216.0 36.2% 9.9x 27.3x Carlsberg A/S $145.24 85.8% $21,273.7 $24,828.5 $9,897.2 $2,230.8 22.5% 2.5x 11.1 Constellation Brands, Inc. $171.09 80.7% $32,737.9 $44,921.3 $8,209.7 $697.2 8.5% 5.5x NM Diageo plc $33.81 70.9% $78.882.7 $99,264.2 $14,551.0 $5,261.0 36.2% 6.8x 18.9x Heineken N.V. $90.88 73.1% $52,283.4 $73,235.8 $24,498.1 $5,164.3 21.1% 3.0x 14.2x Kirin Holdings Company, Limited $19.27 78.5% $16,177.2 $23,415.4 $17,950.6 $3,150.2 17.5% 1.3x 7.4x Pernod Ricard SA $171.17 80.5% $44,824.9 $54,843.8 $10,628.4 $3,016.0 28.4% 5.2x 18.2x Sapporo Holdings Limited $17.90 67.2% $1,394.5 $3,693.9 $4,488.0 $361.3 8.1% 0.8x 10.2x

Mean 23.2% 4.4x 15.2x EV = enterprise value; LTM = last twelve months Median 22.5% 4.4x 14.3x $ in millions, except per share data NM = Nonmaterial Harmonic Mean 17.5% 2.5x 13.2x

Source: Capital IQ as of July 31, 2020

7 Food & Beverage | August 2020

FOOD & BEVERAGE REPORT CONTRIBUTORS

Tom Elliott Managing Director [email protected] | 813-251-7285

Tom Elliott is responsible for Capstone Headwaters’ Food & Beverage practice as well as managing the firm's investment banking activities in the Southeastern United States. Tom joined Capstone Headwaters through the merger of his firm, EQV Capital Group, Inc., a middle market M&A boutique headquartered in Tampa, Florida. While operating EQV, Tom focused on providing middle market business owners with sophisticated financial and strategic advisory services in the areas of exit planning, valuations, recapitalizations and merger & acquisition transactions.

Prior to founding EQV, Tom spent 12 years with the Southeast Regional office of Citigroup Capital Strategies. Prior to Citigroup, he worked as a Corporate Finance consultant, responsible for assisting private companies with capital raising activities ranging from venture capital funding to initial public offerings. Tom also spent four years working as a CPA for Ernst & Young. Tom has worked with clients across a variety of industries, including consumer products. Tom specializes in maximizing shareholder value in private company sales and recapitalizations. He earned his MBA from the University of Michigan and a BBA in Accounting from the University of Notre Dame.

Yogesh Punjabi Director [email protected] | 617-619-3305

Yogesh is a Director in Capstone Headwaters’ Boston office and brings investment banking experience across mergers & acquisitions, financial advisory, and capital raising for private and public companies. Prior to joining Capstone, Yogesh was a Senior Vice President at Jefferies. Prior to Jefferies, Yogesh was with BB&T Capital Markets where he worked with clients in the Retail & Consumer, Automotive Aftermarket, and Food & Beverage sectors, and with Financo where he focused on Retail & Consumer clients. Yogesh began his financial career in Alternative Investments at Bank of America Merrill Lynch after graduating from business school. Yogesh received his MBA from the McDonough School of Business at Georgetown University and his BS from Northeastern University. Yogesh is a Series 7, 66, and 79 Registered Securities Representative.

Benjamin Kelly Research Analyst [email protected] | 617-619-3390

Ben joined Capstone Headwaters in 2018 and serves as an Analyst on the Boston Research Team. He works directly with senior investment bankers, utilizing data and market analysis to deliver key industry insights to C-suite executives. Ben has a primary focus in the Industrial & Manufacturing and Business Services sectors. Prior to joining Capstone Headwaters, Ben worked as an intern at The Baupost Group within its Portfolio Valuation department. Ben earned a BA in Economics from Providence College and is a Series 79 Registered Investment Banking Representative.

8 Consumer & Retail Group

John Ferrara Kenneth Wasik Founder & CEO Managing Director, 617-619-3325 Head of Consumer & Retail [email protected] 917-434-6124 [email protected]

Jeff Ackerman Sophea Chau Managing Director Managing Director 617-275-4401 617-619-3307 [email protected] [email protected]

Tom Elliott Paul Louie Managing Director Managing Director 813-251-7285 626-374-8856 [email protected] [email protected]

Lisa Tolliver Tracy Patch Senior Director Director 312-674-4532 949-220-0540 [email protected] [email protected]

Yogesh Punjabi Jesse Betzner Director Vice President 617-619-3305 617-619-3355 [email protected] [email protected]

To learn more about the Consumer & Retail Group and our most recent M&A Transactions visit Capstone Headwaters' Consumer & Retail Group

9 Food & Beverage | August 2020

FIRM TRACK RECORD

CONFIDENTIAL

corporate sale has been acquired by has been acquired by has been acquired by (IN PROCESS)

Leading Organic Specialty Sauce Manufacturer

has been acquired by valuation advisory has been acquired by has been acquired by

GREEN MOUNTAIN MANAGEMENT CORP.

Crystals VEMCO International ENTERPRISES

has been acquired by has been acquired by has been acquired by has been acquired by

has divested valuation advisory has been acquired by has been acquired by

GOLD KIST FARMS WHITMAN CORP.

10 Food & Beverage | August 2020

CITATIONS

1. Boston Consulting Group, “Tracking Spending on Food and Household Goods Amid COVID-19,” https://www.bcg.com/ publications/2020/covid-consumer-spending-april-3.aspx, accessed July 1, 2020. 2. Mastercard, “Mastercard SpendingPulse: Estimated $53 Billion in Additional U.S. E-Commerce Sales as Pandemic Drives Consumers Online in April and May,” https://mastercardcontentexchange.com/newsroom/press-releases/2020/June /mastercard-spendingpulse-estimated-53-billion-in-additional-us-e-commerce-sales-as-pandemic-drives-consumers- online-in-april-and-may/, accessed July 1, 2020. 3. Business Wire, “Lineage Logistics Acquires QSR and Casual Dining Distribution Business from Maines Paper & Food Service,” https://www.businesswire.com/news/home/20200520005876/en/Lineage-Logistics-Acquires-QSR-Casual- Dining-Distribution, accessed July 1, 2020. 4. PR Newswire, “PepsiCo To Acquire Rockstar, Expanding Presence In Fast-Growing Energy Category,” https://www.prnewswire.com/news-releases/pepsico-to-acquire-rockstar-expanding-presence-in-fast-growing-energy- category-301021412.html, accessed July 1, 2020.

Disclosure: This report is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and acquisi- tion activity. Information contained in this report should not be construed as a recommendation to sell or buy any security. Any reference to or omission of any reference to any company in this report should not be construed as a recommendation to buy, sell or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this report. The report is published solely for the general information of clients and friends of Capstone Headwaters. It does not take into account the particular investment objectives, financial situation or needs of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all investors. This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known and unknown risks and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this report. Opinions expressed are our present opinions only and are subject to change without notice. Additional information is available upon request. The companies mentioned in this report may be clients of Capstone Headwaters. The decisions to include any company in this report is unrelated in all respects to any service that Capstone Headwaters may provide to such company. This report may not be copied or reproduced in any form, or redistributed without the prior written consent of Capstone Headwaters. The information contained herein should not be construed as legal advice.

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Headquartered in Boston, Capstone Headwaters has over 170 professionals across 17 offices in the U.S. with 16 dedicated industry groups. Capstone has been recognized consistently as one of the top investment banks to work for and “U.S. Middle Market Firm of the Year.”

UNITED STATES

170+ professionals 17 offices INTERNATIONAL Boston  Boise  Burlington  Chicago Dallas  Denver  Greenwich  Houston 450+ professionals Los Angeles  New York  Orange 60+ offices in 40 countries County  Philadelphia  San Diego San Francisco  St Louis  Tampa Asia: China  India  Japan Washington DC Latin America: Argentina  Brazil  Chile  Colombia  Mexico  Peru Africa: Congo  Egypt  Ghana  Ivory Coast  Mauritius  Morocco  Senegal  South Africa Europe: Belgium  Bosnia  Croatia  Czech Republic  Finland  France  Germany  Herzegovina Hungary  Ireland  Italy  London  Netherlands  Norway  Poland  Russia  Serbia  Slovenia Spain  Sweden  Switzerland  Turkey  United Kingdom

www.capstoneheadwaters.com

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