April 2015
Food for Thought
Overview, Analysis, and Trends in the Food and Food Retailing Industries William Blair
Table of Contents
Selected Monthly M&A Activity – March ...... 1 Noteworthy M&A Activity – LTM ...... 7 Historical M&A Trends in the Food and Food Retailing Industries ...... 10 Volume Trends ...... 10 Participant Trends ...... 11 Valuation Trends ...... 12 Public Company Trading Statistics ...... 13 Food Production Companies ...... 13 Food Ingredients Companies ...... 14 Beverage Production Companies ...... 14 Food Retail Companies ...... 15 Convenience Store Companies ...... 15 Same-Store Growth – Food & Convenience Retail ...... 16 U.S. Public Equity Financing Summary – LTM ...... 17 IPOs ...... 17 Follow-Ons ...... 17 Selected Upcoming Industry Events ...... 18 General Market Update...... 20 Quarterly Market Update – All Industries ...... 20 Domestic M&A Market Summary ...... 21 U.S. Activity Trends ...... 21 U.S. Valuation Trends ...... 22 U.S. Equity Capital Markets Summary ...... 23 Debt Capital Markets Summary ...... 24 William Blair Food & Beverage and Food Convenience & Retail Investment Banking ...... 25 Recent William Blair Consumer & Retail Transactions ...... 27 William Blair Consumer & Retail Coverage ...... 28 Notes ...... 29 Disclosures ...... 30
Food For Thought Table of Contents
William Blair
Selected Monthly M&A Activity – March
Food & Beverage Producer Transactions
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA 03/31/15 Shanghai Aquarius Drinking Water Co. China Bright Food (Group) Co Ltd $53.9 1.65x - Provider of distilled water
03/31/15 HaiNan Yedao Group China Hainan Jiantong Investment $691.5 - - Producer and distributor of liquor and starch products Management Co.
03/31/15 Fujian Anxi Jinxiang Tea China Wide Lucky Asia Pacific $25.8 - - Producer and seller of tea products Limited
03/31/15 Picard Surgeles (49%) France Aryzta $989.0 - - Retailer of frozen food
03/31/15 Koninklijke FrieslandCampina Hungary Alfoldi Tej Ertekesito Es - - - Producer and provider of dairy products Beszerzo Korlatolt Felelossegu Tarsasag 03/31/15 Carroll Cuisine Ireland Carlyle Group LP; - - - Producer and wholesaler of sliced meat and ham Cardinal Capital Group products 03/31/15 AZTECA Foods Europe Spain Gruma $48.8 - - Producer of corn flour and tortillas
03/31/15 Daniel Thwaites (Beer Division) United Kingdom Marston's $37.2 - - Producer of beer
03/30/15 AOR Belgium Archer Daniels Midland - - - Producer and seller of edible oils Company
03/30/15 Alagawadi Bireshwar Sugars India Undisclosed Acquirer - - - Manufacturer of sugar
03/30/15 Wako Shokuryo Co. Japan Ishikawa Shoji Co. - - - Wholesaler and manufacturer of beans, fruits and seafood 03/30/15 Lluvia (30%) Myanmar Mitsubishi Corp. - - - Manufacturer of instant coffee and beverages
03/30/15 Ubis All Co. Thailand Undisclosed Acquirer - - - Distributor of food and beverage products
03/30/15 Angel's Share Brands United States Bacardi - - - Producer and seller of Bourbon whiskey
03/29/15 Perrin Brewing Co. United States Oskar Blues Brewery - - - Manufacturer of alcoholic beverages
03/27/15 Sazae Shokuhin Japan Ishiya Co. - - - Manufacturer of confectionary products
03/27/15 Sasayakaho Co. (All Business Division) Japan Maeda Seika Co. - - - Producer of confectionary
03/27/15 Gehl Foods United States Wind Point Partners - - - Manufacturer of dairy products
03/26/15 Noon Pakistan Limited Pakistan Fauji Fertilizer Bin Qasim - - - Processer and seller of milk and dairy products Limited
03/26/15 Siberian Pelmennaya Co. Russian Regional Distribution Agro - - - Manufacturer of meat Federation Center Druzhino
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in March 2015 Sources: Dealogic and Capital IQ
Food For Thought Selected Monthly M&A Activity – March 1
William Blair
Food & Beverage Producer Transactions (cont.)
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA 03/26/15 Donghwa F&V Co. South Korea Consus Asset Management $48.9 - - Wholesaler of fruit, vegetable and meat products Co.
03/25/15 Jafora-Tabori Ltd. (15%) Israel Jaf-Ora $30.3 - - Manufacturer of soft drinks
03/25/15 Lotus Korea Co. South Korea Lotus Bakeries $19.9 - - Wholesaler of confectionery
03/25/15 Thomas Hardy Brewery United Kingdom Molson Coors Brewing Co. - - - Manufacturer and seller of beer
03/25/15 Kraft Foods Group United States H.J. Heinz $53,739.0 2.95x NMF Manufacturer of consumer packaged food and beverage products 03/24/15 Ad van Geloven Netherlands TowerBrook Capital - - - Producer and seller of frozen snacks Partners
03/24/15 J Vineyards & Winery United States E. & J. Gallo Winery - - - Producer of wine
03/23/15 Sichuan Province HuiTong Shiye Co. China Chongqing Fuling Zhacai $21.1 1.74x - Manufacturer of canned food and seasonings Group Co.
03/23/15 Lemon-X Corp. United States Juice Tyme Inc. - - - Manufacturer and retailer of juices, teas, and cocktail mixes 03/21/15 Fattoria Casisano Colombaio Italy Private Investor (Tommasi - - - Manufacturer and distributor of wines Family)
03/21/15 Saga Central Fruits & Vegetables Market Co. Japan Nogata Kenzai Co. - - - Wholesaler of fruits and vegetables
03/20/15 Yonekubo Japan Maruichi Co. - - - Distributor of frozen food
03/20/15 Agrotour (4.7%) Poland Private Investor (Roman - - - Producer of wine Gabrys)
03/19/15 China Huiyuan Juice Group (7.9%) China China Oceanwide Holdings $1,161.0 1.62x - Producer of fruit and vegetable juice
03/19/15 Nambu Ham Co. South Korea Oyang Corp. $53.0 - - Wholesaler of processed meat
03/19/15 Café Salmeron Spain Cafes Oquendo Fast - - - Manufacturer and distributor of coffee Eurocafe
03/18/15 Kerlys France Union Fermiere - - - Producer and processer of vegetables Morbihannaise
03/17/15 Kubarus-Milk (25.2%) Russian Eko-Market - - - Manufacturer of dairy products Federation
03/16/15 Bien Hoa Confectionery Corp. (29.9%) Vietnam Pan Pacific Corp. $33.1 0.64x 10.1x Manufacturer of biscuits and candy
03/13/15 Harald Industria e Comercio de Alimentos (83.3%) Brazil Fuji Oil Co. $237.5 - - Manufacturer of chocolate and cocoa products
03/13/15 Golden Red Wine Co. (29.7%) China Goldin Financial Holdings $223.7 - - Importer and distributor of wines
03/13/15 Grupo Rojas & Co. Dominican Anheuser-Busch InBev - - - Manufacturer and supplier of carbonated and non- Republic carbonated beverages Note: Includes global change-of-control (unless otherwise indicated) transactions announced in March 2015 Sources: Dealogic and Capital IQ
Food For Thought 2 Selected Monthly M&A Activity – March
William Blair
Food & Beverage Producer Transactions (cont.)
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA 03/13/15 Eisunion Germany Idun Industri - - - Producer of ice-cream and related dairy products
03/13/15 Kekkuti Asvanyviz Hungary Karlovarské minerální vody - - - Producer of soft drinks
03/13/15 Flatout Inc. United States Lancaster Colony Corp. $92.0 - - Manufacturer and marketer of flatbreads and related food products 03/13/15 Walhalla Bean Co. United States Marubeni Corp. - - - Processer and distributor of whole grains, beans and seeds 03/12/15 Menora Foods Australia Monde Nissin - - - Marketer and distributor of food products in Australia
03/12/15 Rudiger Thomsen Schlacht- und Zerlegebetriebe Germany Toennies Lebensmittel - - - Producer of meats and meat-based food products
03/12/15 Yonekyu Corporation (Beer Manufacturing Business) Japan DHC Corporation $5.0 - - Manufacturer and seller of beer
03/12/15 Chirag Kenya Limited Kenya FTG Holdings - - - Manufacturer of snack foods and spices
03/12/15 Serraleite Portugal Jeronimo Martins - - - Producer and distributor of milk
03/12/15 Nestlé (South Africa) South Africa R&R Ice Cream - - - Provider of food and beverage products
03/12/15 Salve Bilbao (25%) Spain Grupo Mahou - San Miguel - - - Manufacturer and distributor of beer
03/12/15 The Distribution Company Inc. United States V Group, Inc. - - - Distributor of food and beverage products
03/11/15 Betta Foods Australia Australia Prydes Confectionary - - - Manufacturer of ice-cream cones, marshmallows, and Holdings jellies 03/11/15 Koshoy (5.9%) Kyrgyzstan Azoteks - - - Manufacturer of sugar
03/11/15 Kaindy Et Kombinaty (57.6%) Kyrgyzstan Private Investor (Duysheev - - - Producer and processor of poultry Satyvaldy Kaibyshevich)
03/11/15 Mikela Alus Daritava (33%) Latvia Private Investor (Mikeli - - - Producer of beer Redlihs)
03/11/15 Europastry Spain Nazca Capital - - - Manufacturer of bread and bakery products
03/11/15 Mocoffee Switzerland W2W E-Commerce de - - - Producer of coffee and tea Vinhos
03/11/15 Adelie Foods Group United Kingdom H.I.G. Capital - - - Manufacturer of sandwich products
03/11/15 Vantage Seafood United States Keyport - - - Importer of seafood products
03/11/15 Sager Creek Vegetable Co. United States NutriAsia Inc. $75.0 - - Producer of canned food and beverages
03/10/15 Carnicas Floristan Spain Ensaladas Floristan - - - Manufacturer and distributor of salads
03/10/15 Mixum Sweden Salladsbaren i Sverige AB - - - - Producer of ready-to-eat meals Picadeli
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in March 2015 Sources: Dealogic and Capital IQ
Food For Thought Selected Monthly M&A Activity – March 3
William Blair
Food & Beverage Producer Transactions (cont.)
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA 03/10/15 Massandra Ukraine Undisclosed Acquirer - - - Producer of wine
03/09/15 Compania Alimenticia Los Andes Argentina Molinos Rio de la Plata - - - Producer and marketer of coffee and chocolate
03/09/15 Vinicola Vivalto Terroir Brazil Private Investor (Vicente - - - Producer of wine Donini)
03/09/15 QingDao He Wei Yuan Food Co. China AVIX Technologies - - - Manufacturer of seafood
03/09/15 Atlantic Ovo France Private Investor (Herve - - - Manufacturer of pasteurized eggs Ferriere)
03/09/15 Full Sail Brewing Co. United States Encore Consumer Capital; - - - Manufacturer of beer Oregon Craft Brewers Co.
03/09/15 American Beverage Corp. United States Harvest Hill $55.0 - - Producer of fruit juices
03/09/15 Brand Aromatics International United States McCormick & Co. - - - Manufacturer of food flavorings, marinades, and broth
03/08/15 Kerry Pinnacle Australia Pacific Equity Partners - - - Manufacturer and marketer of bakery ingredients and frozen food products 03/08/15 Era Good Slovenia Poslovni Sistem Mercator - - - Wholesaler of food and beverage products
03/07/15 Bald Hills Vineyard Limited New Zealand Beecom Limited - - - Producer of wine
03/06/15 Starr Culinary Delights Canada Wittington Investments - - - Producer and seller of cake and dessert products
03/06/15 AN, S.Coop Spain UNICA Group - - - Producer of organic cereal
03/06/15 Heartland Harvest United States Bunge Ltd - - - Producer of die cut pellets used to make pasta
03/05/15 Perheleipurit Finland Leipomo Salonen - - - Manufacturer of bakery products
03/05/15 Conditorei Coppenrath & Wiese Germany Dr. August Oetker - - - Producer of deep frozen cakes and tortes
03/05/15 North Coast (38%) Poland Nuova Castelli $12.1 0.25x - Importer and distributor of food and beverage products
03/05/15 Danilovskiy Rynok Russian Expert Union $6.9 - - Producer of fresh fruits and vegetables Federation
03/05/15 Unica Group Spain Grupo - - - Producer of fruits and vegetables
03/04/15 Vereinigte Kaertner Brauereien (50%) Austria L'Arche Green - - - Producer of beer
03/04/15 Ingredient Co. Canada Caldic - - - Distributor of food ingredients
03/04/15 Hermann Degener Spirituosen Germany Private Investor (Sven - - - Manufacturer and seller of alcoholic beverages Stirnemann)
03/03/15 Grupo Conboca ( Pasta Alfredo brand) Colombia Artisano - - - Manufacturer of pasta, noodles, and breads
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in March 2015 Sources: Dealogic and Capital IQ
Food For Thought 4 Selected Monthly M&A Activity – March
William Blair
Food & Beverage Producer Transactions (cont.)
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA 03/03/15 CFI Co. (74.1%) Japan Asahi Group Holdings $1,822.6 - - Manufacturer of food and beverage products
03/03/15 Chitaka International Foods (Pastel Business) Japan Ohgiya Corporation - - - Manufacturer of confectionary products
03/03/15 Food Concepts Pioneer Limited Nigeria Pioneer Food Group $14.0 - - Owner and operator of bakeries
03/03/15 Rustica United States Undisclosed Acquirer - - - Producer and seller of bread and bakery products
03/03/15 Shot Spirits Corporation United States My Big Coin Pay, Inc. - - - Producer of alcoholic beverages
03/02/15 Lion-Dairy & Drinks (Everyday cheese business) Australia Saputo $107.4 - - Producer of milk, cheese, and related dairy products
03/02/15 PT Surya Agro Persada (90%) Indonesia Oriental Holdings $30.2 - - Producer of fruits and vegetables
03/02/15 Citrusource United States SunOpta $13.3 - - Supplier of not-from-concentrate private label organic orange juice and citrus products Note: Includes global change-of-control (unless otherwise indicated) transactions announced in March 2015 Sources: Dealogic and Capital IQ
Food For Thought Selected Monthly M&A Activity – March 5
William Blair
Food & Convenience Retail Transactions
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA 03/30/15 Marumiyastore Co. Japan Marukyu Co. $27.4 0.09x 3.6x Operator of a chain of grocery stores 03/26/15 Hokkaido FamilyMart Co. (51%) Japan FamilyMart Co. - - - Operator of convenience stores that sell groceries and other items 03/25/15 San Miu Supermarket Macao Dairy Farm International - - - Supermarkets operator Holdings 03/22/15 Spar Retail Russian X5 Retail Group - - - Operator of a chain of supermarkets Federation 03/18/15 Chengdu Hongyan Supermarket Co. China Chengdu Hongqi Chain Co. $38.2 - - Operator of supermarkets 03/13/15 Antalya Market (29 Supermarkets) Turkey Carrefour Sabanci Ticaret $12.0 - - Operator of a chain of supermarkets Merkezi 03/10/15 Mandai Co. Japan Seven & i Holdings $550.0 - - Operator of a chain of supermarkets 03/09/15 Supermarkets (7 supermarkets) United States Casey's General Stores - - - Operator of supermarkets Note: Includes global change-of-control (unless otherwise indicated) transactions announced in March2015 Sources: Dealogic and Capital IQ
Food For Thought 6 Selected Monthly M&A Activity – March
William Blair
Noteworthy M&A Activity – LTM
Food & Beverage Producer Transactions
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA 03/31/15 Picard Surgeles (49%) France Aryzta $989.0 - - Retailer of frozen food 03/25/15 Kraft Foods Group United States H.J. Heinz Holding $53,739.0 2.95x NMF Manufacturer of consumer packaged food and beverage Corporation products 03/03/15 CFI Co. (74.1%) Japan Asahi Group Holdings $1,822.6 - - Manufacturer of food and beverage products 02/10/15 Remy Cointreau (5.1%) France Stichting Pensioenfonds $4,160.9 3.89x NMF Producer and distributor of wines and spirits 02/03/15 Big Heart Pet Brands United States The J. M. Smucker Company $6,000.0 - - Manufacturer, distributor, and marketer of pet food and pet snacks 01/26/15 MOM Brands United States Post Holdings $1,151.7 - 7.9x Producer and seller of cereal products in the United States 12/31/14 Inner Mongolia Mengniu Dairy Company China China Dairy (Mauritius) $6,039.2 - - Manufacturer of dairy products Limited 12/15/14 Archer Daniels Midland Company United States Olam International $1,300.0 - - (Global Cocoa Business) Producer of cocoa 11/20/14 Primo Smallgoods Australia JBS $1,255.4 - - Producer of packaged meats 11/06/14 DSS Group United States Cott Corp. $1,250.0 - - Producer and distributor of bottled water 11/03/14 Centrale Laitiere Morocco Danone $1,677.9 2.10x 17.1x Producer and seller of packaged milk and dairy products 11/03/14 United Biscuits United Kingdom Yildiz Holding $3,199.2 - - Manufacturer and distributor of biscuits, snacks and frozen foods 10/20/14 Hainan Yedao Co. (11.2%) China China Orient Capital $679.0 6.19x - Manufacturer of food and beverage products Investment Group 10/06/14 Belvedere (7.3%) France Diana Holding - Groupe $362.7 0.54x NMF Producer and marketer of alcoholic beverages Zniber 09/10/14 Windsor Quality Food Company United States Ajinomoto North America $800.0 1.19x - Producer and marketer of frozen foods and appetizers 09/08/14 Annie's United States General Mills $821.2 3.95x NMF Producer of natural and organic foods 09/02/14 Archer Daniels Midland Company United States Cargill $440.0 - - (Global Chocolate Business) Producer of chocolate 08/21/14 Ebro Foods (2%) Spain Empresas Comerciales e $3,589.8 1.37x 9.5x Manufacturer of pasta, rice, and ready-to-eat food Industriales Valencianas 08/15/14 Vietnam Dairy Products (2%) Vietnam Fraser & Neave $4,534.6 2.90x 14.1x Manufacturer of dairy products 08/11/14 Chiquita Brands International United States Sucocitrico Cutrale; $1,193.1 0.39x 13.6x Producer and distributor of fruit and other fresh produce Banco Safra, Investment Arm 08/11/14 Treasury Wine Estates Australia TPG Capital $3,323.0 2.00x 14.2x Producer and distributor of wine Note: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve months Sources: Dealogic and Capital IQ
Food For Thought Noteworthy M&A Activity – LTM 7
William Blair
Food & Beverage Producer Transactions (cont.)
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA 07/14/14 Russell Stover Candies United States Chocoladefabriken Lindt & $1,400.0 - - Manufacturer and marketer of sweets and chocolates Spruengli
07/07/14 WILD Flavors Switzerland Archer Daniels Midland $3,096.5 2.28x - Manufacturer of food ingredients and preservatives Europoort 06/30/14 CytoSport United States Hormel Foods Corporation $470.0 - - Manufacturer of nutritional supplements 06/30/14 Flagstone Foods United States Treehouse Foods $860.0 - - Producer and distributor of dried fruits and nuts 05/29/14 Hillshire Brands Co. United States Tyson Foods $8,533.5 2.10x 15.3x Manufacturer of consumer food and beverage products 05/22/14 Conopco (North America Pasta Sauces Business) United States Mizkan Holdings $2,150.0 3.60x - Producer of pasta sauce 05/21/14 Tnuva Food Industries Israel Bright Food Group $1,711.2 - - Producer and distributor of dairy and frozen food products 05/20/14 Treasury Wine Estates Australia KKR & Co. $3,188.3 1.90x NMF Producer and distributor of wine 05/12/14 Pinnacle Foods United States Hillshire Brands $6,729.2 2.70x 15.2x Manufacturer of convenience food products 04/27/14 Goodman Fielder Australia First Pacific Company $1,698.4 0.84x 8.8x Manufacturer and distributor of food ingredients 04/25/14 Deoleo Spain CVC Capital Partners $1,261.8 1.16x 12.5x Producer of cooking oils 04/17/14 MFI Holding Corporation United States Post Holdings $2,499.5 - - Processer and distributor of commercial food products 04/15/14 United Spirits India Diageo $1,895.8 4.88x NMF Manufacturer and seller of alcoholic beverages 04/14/14 DIANA France Symrise $1,796.2 2.88x 14.0x Provider of organic and natural foods Note: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve months Sources: Dealogic and Capital IQ
Food For Thought 8 Noteworthy M&A Activity – LTM
William Blair
Food & Convenience Retail Transactions
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM
Announced Target Business Description Nation Buyer Value Sales EBITDA 03/10/15 Mandai Co. Japan Seven & i Holdings $550.0 - - Operator of a chain of supermarkets 01/28/15 Controladora Comercial Mexicana Mexico Organizacion Soriana $2,676.0 1.38x 16.1x Operator of a chain of supermarkets 12/18/14 The Pantry United States Alimentation Couche-Tard $1,725.4 0.26x 7.8x Operator of convenience stores that sell groceries and other items 11/24/14 Dean & DeLuca United States Pace Development $140.0 - - Operator of retail stores that sell gourmet specialty food Corporation and beverage products 11/07/14 Nature's Pantry United States Natural Grocers by Vitamin - - - Operator of a chain of food retail stores Cottage 10/31/14 Maruetsu Japan Kasumi $685.6 0.23x 7.5x Operator of a chain of supermarkets 10/03/14 Migros Ticaret Turkey Anadolu Endüstri Holding $2,705.4 0.79x 13.1x Operator of a chain of supermarkets 09/30/14 Seijo Ishii Co. Japan Lawson $501.4 1.01x 9.7x Operator of a chain of supermarkets 09/16/14 Grocery Outlet Inc. United States Hellman & Friedman - - - Operator of a chain of grocery stores 08/11/14 Kinsho Store Co. Japan Kintetsu Corporation $645.3 1.13x - Operator of a chain of supermarkets 07/02/14 Grupo El Árbol Distribución y Supermercados Spain Distribuidora Internacional $205.9 0.18x - Supermarkets operator de Alimentación 06/03/14 DIA France France Carrefour $816.9 - - Operator of a chain of supermarkets 05/07/14 Roundy's (18 Rainbow Stores) United States SuperValu $65.0 - - Operator of 18 retail stores 04/28/14 Susser Holdings Corporation United States Energy Transfer Partners $2,320.3 0.37x 14.4x Operator of a chain of convenience stores 04/11/14 SPAR Group South Africa Allan Gray $2,059.8 0.45x 13.0x Operator of a chain of grocery and retail stores 04/07/14 Carrefour France Motier $1,786.3 0.36x 12.2x Operator of a chain of supermarkets Note: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve months Sources: Dealogic and Capital IQ
Food For Thought Noteworthy M&A Activity – LTM 9
William Blair
Historical M&A Trends in the Food and Food Retailing Industries
Volume Trends
U.S. Monthly Announced M&A Activity
Food & Beverage Production Food Retail & Convenience Number of Deals 30 19 18 18 18 19 17 15 15 17 20 13 12 14 10
0 04/14 05/14 06/14 07/14 08/14 09/14 10/14 11/14 12/14 01/15 02/15 03/15 Food & Beverage Production 17 16 12 12 13 14 14 11 12 17 16 18 Food Retail & Convenience 2 1 1 0 1 1 1 6 6 1 2 1
U.S. Yearly Announced M&A Activity
Food & Beverage Production Food Retail & Convenience Total Deal Value
Number Deal Value of Deals ($ in billions) 300 $120 232 223 170 181 185 189 194 200 166 127 159 $80 129 100 55 $40
0 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Food & Beverage Production 128 101 145 127 106 79 109 127 161 147 161 51 Food Retail & Convenience 53 65 87 96 64 48 20 32 24 42 33 4 Total Deal Value $13.5 $11.5 $29.1 $33.3 $93.3 $20.5 $39.0 $13.9 $36.0 $43.2 $59.9 $62.6
Global Yearly Announced M&A Activity
Food & Beverage Production Food Retail & Convenience Total Deal Value
Number Deal Value of Deals ($ in billions) 1,500 1,325 1,311 $200 1,193 1,159 1,199 1,049 1,083 973 979 926 932 $150 1,000 $100 500 278 $50 0 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Food & Beverage Production 799 870 996 1104 1042 948 969 906 814 768 792 256 Food Retail & Convenience 174 179 197 221 269 211 230 177 165 158 140 22 Total Deal Value $61.1 $97.8 $94.9 $132.3 $140.5 $72.0 $94.2 $125.4 $127.4 $109.7 $134.2 $71.0 Note: Data represents announced transactions including U.S.-based targets only Sources: Dealogic and Capital IQ as of March 31, 2015
Food For Thought 10 Historical M&A Trends in the Food and Food Retailing Industries
William Blair
Participant Trends
Breakdown of Acquirers by Type
Percent of Deals 60%
50%
40%
30%
20%
10%
0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Private 46.8% 44.1% 43.4% 51.9% 47.2% 50.0% 52.8% 49.5% 53.2% 56.0% 48.6% 47.2% 46.2% Public 24.0% 27.7% 28.0% 19.6% 21.6% 20.3% 17.4% 18.1% 15.6% 19.5% 25.8% 21.6% 25.0% Private Equity 11.0% 9.2% 10.1% 13.8% 17.2% 13.1% 13.0% 13.2% 12.2% 7.2% 13.6% 12.5% 11.5% Foreign 18.2% 19.0% 18.5% 14.6% 14.0% 16.7% 16.8% 19.1% 19.0% 17.3% 12.0% 18.8% 17.3%
Breakdown of Sellers by Type
Percent of Deals
70%
60%
50%
40%
30%
20%
10%
0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Private 30.1% 46.4% 53.1% 50.5% 57.2% 46.3% 53.0% 49.7% 47.1% 53.4% 55.2% 53.4% 63.5% Public 3.3% 6.4% 5.6% 2.0% 1.7% 3.7% 5.1% 6.1% 4.8% 2.5% 4.9% 7.4% 7.7% Private Equity 17.1% 7.9% 9.1% 12.4% 8.1% 8.0% 8.5% 14.0% 5.3% 8.1% 7.8% 8.0% 9.6% Divestiture 49.6% 39.3% 32.2% 35.1% 32.9% 42.0% 33.3% 30.2% 42.8% 36.0% 32.1% 31.3% 19.2% Note: Data represents announced transactions including U.S.-based targets only Sources: Dealogic and Capital IQ as of March 31, 2015
Food For Thought Historical M&A Trends in the Food and Food Retailing Industries 11
William Blair
Valuation Trends
Average EBITDA Multiples for Food Transactions(1)
Average EV/EBITDA Multiple Number of Disclosed Deals
EV/EBITDA Multiple
20.0x 40
35
15.0x 30 11.4x 13.2x 13.0x 13.0x 12.0x 11.8x 25 9.1x 9.9x 10.4x 10.0x 9.3x 9.2x 20 8.4x 8.2x 15
5.0x 10
5
0.0x 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Average EV/EBITDA Multiple 8.4x 9.1x 11.4x 9.9x 12.0x 10.4x 9.3x 8.2x 11.8x 13.2x 13.0x 13.0x 9.2x Number of Disclosed Deals 25 20 14 28 23 20 14 11 7 17 22 34 6
Average EBITDA Multiples for Beverage Transactions(2)
Average EV/EBITDA Multiple Number of Disclosed Deals
EV/EBITDA Multiple
25.0x 20
20.0x 17.3x 15
14.5x 15.0x 11.8x 14.1x 13.6x 13.8x 13.5x 13.4x 12.0x 11.7x 10.9x 11.8x 10 9.8x 10.0x
5 5.0x
0.0x 0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Average EV/EBITDA Multiple 11.8x 14.1x 12.0x 13.5x 13.4x 17.3x 11.7x 10.9x 9.8x 13.6x 14.5x 11.8x 13.8x Number of Disclosed Deals 9 16 12 15 5 4 9 1 3 6 4 13 4 (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 March 31, 2015
Food For Thought 12 Historical M&A Trends in the Food and Food Retailing Industries
William Blair
Public Company Trading Statistics
Food Production Companies
($ in millions) % Change Forward Enterprise Value/LTM Enterprise Company Market Cap MTD YTD P/E PEG Value Sales EBITDA Nestlé $239,698.4 (3.4%) 3.0% NA NA $254,275.2 2.76x 14.5x Unilever $118,635.2 (5.6%) 2.1% 17.6x 175.7% $131,935.4 2.25x 12.3x Mondelez International $59,181.0 (2.3%) (0.6%) 18.2x 169.0% $74,362.0 2.17x 14.8x Kraft Foods Group $51,246.8 36.0% 39.0% 25.2x 296.0% $59,985.8 3.30x 25.2x Danone $40,489.1 (3.7%) 2.1% 16.3x 188.4% $50,165.3 1.96x 12.5x General Mills $33,738.7 5.2% 6.1% 18.9x 240.7% $44,455.0 2.52x 14.1x Associated British Foods $32,934.8 (13.3%) (14.8%) 24.0x 247.2% $34,171.7 1.63x 13.4x Kellogg Company $23,490.7 2.3% 0.8% 15.6x 199.1% $30,479.7 2.09x 16.3x The Hershey Company $22,283.8 (2.8%) (2.9%) 22.3x 262.3% $24,060.7 3.24x 14.5x ConAgra Foods $15,600.2 4.4% 0.7% 15.8x 237.6% $23,949.3 1.36x 10.4x Tyson Foods $15,578.8 (7.3%) (4.5%) 12.9x 152.2% $22,736.8 0.57x 10.2x Hormel Foods Corporation $14,987.8 (2.8%) 9.1% 25.4x 298.9% $14,716.2 1.55x 13.5x Campbell Soup Company $14,513.8 (0.1%) 5.8% 18.2x 303.5% $18,231.8 2.19x 12.3x The J. M. Smucker Company $13,848.6 0.3% 14.6% 18.5x 238.4% $15,916.7 2.90x 13.6x Grupo Bimbo $13,351.7 0.5% 3.0% 23.8x 52.9% $17,645.7 1.39x 12.2x JBS $12,824.4 1.4% 5.3% 12.0x NA $22,958.9 0.51x 5.9x Saputo $10,769.4 (5.3%) (8.8%) 8.7x 87.4% $12,505.1 1.36x 13.1x George Weston $10,133.4 (6.5%) (8.6%) 14.5x 145.2% $27,046.0 0.71x 12.3x McCormick & Company $9,859.8 2.3% 3.8% 23.3x 283.0% $11,116.1 2.61x 16.2x The Hain Celestial Group $6,514.9 2.4% 9.9% 18.6x 125.9% $7,254.9 2.94x 24.6x Pilgrim's Pride Corporation $5,866.6 (17.6%) (31.1%) 31.4x NA $5,297.6 0.62x 3.9x ARYZTA $5,428.8 (23.2%) (20.5%) 10.5x 35.8% $7,812.2 1.36x 9.3x Flowers Foods $4,761.8 5.1% 18.5% 19.3x 180.8% $5,533.4 1.48x 12.9x Treehouse Foods $3,638.0 1.7% (0.6%) 21.2x 198.6% $5,036.7 1.71x 13.7x Lancaster Colony Corporation $2,603.1 4.1% 1.6% 23.2x 211.1% $2,346.9 2.21x 14.2x Post Holdings $2,451.7 (5.3%) 11.8% 51.0x 637.2% $6,219.9 1.95x 16.0x Snyder's-Lance $2,250.7 3.6% 4.6% 22.7x 151.3% $2,682.0 1.65x 15.9x Tootsie Roll Industries $2,041.1 5.9% 14.0% NA NA $1,910.2 3.51x 18.2x Fresh Del Monte Produce $2,028.3 10.5% 16.0% 16.2x 324.3% $2,301.1 0.59x 8.7x J&J Snack Foods Corp. $1,994.0 5.4% (1.9%) 28.0x 311.1% $1,896.4 2.04x 13.3x Cal-Maine Foods $1,893.3 3.8% 0.1% 8.1x NA $1,709.7 1.11x 6.6x Sanderson Farms $1,845.8 (6.5%) (5.2%) 8.8x NA $1,692.7 0.59x 3.4x B&G Foods $1,582.1 2.7% (1.6%) 16.3x NA $2,606.5 3.07x 14.4x Dean Foods Company $1,556.4 2.5% (14.7%) 15.5x 209.7% $2,457.2 0.26x 12.6x Diamond Foods $1,024.6 20.9% 15.4% 38.2x 346.9% $1,624.6 1.83x 18.2x Lotus Bakeries $1,024.4 (1.5%) 16.1% 21.1x 211.1% $1,060.3 2.52x 13.6x Calavo Growers $890.4 22.6% 8.7% 31.9x 277.6% $946.0 1.17x 20.0x Boulder Brands $583.9 (7.6%) (13.8%) 16.6x 94.8% $858.7 1.66x 14.5x John B Sanfilippo & Son $479.6 16.3% (5.3%) NA NA $545.8 0.66x 9.5x Seneca Foods Corp. $324.4 10.2% 10.3% NA NA $606.3 0.47x 19.7x Inventure Foods $218.7 10.9% (12.2%) 16.3x 118.9% $303.7 1.06x 12.6x Bridgford Foods Corp. $72.9 2.3% 3.4% NA NA $68.0 0.50x NMF Golden Enterprises $45.9 0.4% 10.8% NA NA $51.4 0.39x 7.5x Mean 1.6% 2.1% 20.2x 219.1% $22,175.2 1.68x 13.3x Median 1.7% 2.1% 18.5x 210.4% $6,219.9 1.65x 13.5x Note: Data as of March 31, 2015 Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
Food For Thought Public Company Trading Statistics 13
William Blair
Food Ingredients Companies
($ in millions) % Change Forward Enterprise Value/LTM Enterprise Company Market Cap MTD YTD P/E PEG Value Sales EBITDA Givaudan $16,677.9 (5.7%) 0.6% 22.4x 186.6% $17,413.8 3.93x 19.2x Kerry Group $11,805.0 (7.9%) (2.8%) 16.0x 141.4% $13,366.5 1.92x 15.3x International Flavors & Fragrances $9,479.6 (3.7%) 15.8% 21.3x 304.2% $9,946.8 3.22x 14.4x Symrise $8,205.6 (0.8%) 4.2% 23.5x 176.8% $9,645.6 3.76x 18.2x Barry Callebaut $5,372.1 (5.7%) (4.7%) 16.8x 76.7% $7,348.2 1.13x 13.1x Sensient Technologies Corporation $3,273.3 8.3% 14.2% 21.1x 222.1% $3,719.9 2.57x 13.6x Frutarom Industries $2,192.1 16.4% 20.9% 24.6x NA $2,363.2 2.88x 16.0x T. Hasegawa Co. $613.3 1.4% 4.1% 16.3x NA $472.9 1.27x 8.3x Takasago International Corporation $450.6 (1.7%) (0.2%) 11.2x NA $776.0 0.71x 11.1x Mean 0.1% 5.8% 19.2x 184.6% $7,228.1 2.38x 14.4x Median (1.7%) 4.1% 21.1x 181.7% $7,348.2 2.57x 14.4x
Beverage Production Companies
($ in millions) % Change Forward Enterprise Value/LTM Enterprise Company Market Cap MTD YTD P/E PEG Value Sales EBITDA Anheuser-Busch InBev $196,505.9 (4.1%) 7.6% 20.5x 164.0% $243,254.9 5.17x 13.5x The Coca-Cola Company $177,142.4 (6.4%) (4.0%) 18.1x 220.2% $197,476.4 4.29x 15.4x Pepsico $141,742.9 (3.4%) 1.1% 19.5x 237.6% $161,883.9 2.43x 13.0x SABMiller $84,645.5 (7.4%) 0.4% 18.6x 146.3% $99,418.5 5.86x 17.0x Diageo $69,247.6 (7.6%) (4.1%) 16.1x 156.9% $87,994.6 5.52x 17.7x Monster Beverage Corporation $23,529.4 (1.9%) 27.7% 46.8x 334.3% $22,377.9 9.08x 29.0x Constellation Brands $22,457.5 1.3% 18.4% 25.8x 193.1% $29,732.2 4.93x 16.7x Brown-Forman Corporation $19,062.1 (1.5%) 2.9% 25.3x NA $19,818.1 6.43x 19.4x Keurig Green Mountain $17,479.4 (12.4%) (15.6%) 29.2x 161.6% $17,162.0 3.65x 14.3x Dr Pepper Snapple Group $15,124.7 (0.4%) 9.5% 21.3x 289.2% $17,476.7 2.86x 12.5x Molson Coors Brewing Company $13,866.4 (1.9%) (0.1%) 17.2x 224.5% $16,464.1 3.97x 20.6x Coca-Cola Enterprises $10,297.3 (4.3%) 0.0% 13.7x 152.6% $14,026.3 1.70x 10.0x The WhiteWave Foods Company $7,734.4 8.3% 26.7% 38.6x 220.6% $9,232.5 2.69x 23.7x Boston Beer Co. $3,566.7 (0.1%) (7.6%) 36.7x NA $3,490.9 3.87x 19.0x National Beverage Corp. $1,131.9 8.9% 7.9% NA NA $1,101.7 1.71x 13.2x Coca-Cola Bottling Co. $1,050.6 8.3% 28.4% 30.9x NA $1,618.6 0.93x 11.6x Cott Corporation $872.1 (3.1%) 35.2% 19.9x NA $2,739.6 1.30x 15.8x Farmer Brothers Co. $396.0 2.1% (16.0%) 24.5x 122.3% $376.7 0.70x 13.0x Lifeway Foods $349.6 14.2% 15.4% 41.1x 257.1% $352.4 2.96x NMF Jones Soda Co. $15.2 (9.8%) 5.7% NA NA $14.3 1.06x NMF Mean (1.1%) 7.0% 25.8x 205.7% $47,300.6 3.56x 16.4x Median (1.9%) 4.3% 22.9x 206.7% $16,813.1 3.31x 15.6x Note: Data as of March 31, 2015 Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
Food For Thought 14 Public Company Trading Statistics
William Blair
Food Retail Companies
($ in millions) % Change Forward Enterprise Value/LTM Enterprise Company Market Cap MTD YTD P/E PEG Value Sales EBITDA The Kroger Co. $37,256.8 7.7% 19.4% 21.7x 241.3% $48,674.8 0.45x 9.4x Whole Foods Market $18,788.5 (7.8%) 3.3% 33.0x 183.9% $18,114.5 1.24x 13.4x Sprouts Farmers Market $5,367.8 (4.3%) 3.7% 41.8x NA $5,644.3 1.90x 22.0x United Natural Foods $3,857.8 (7.2%) (0.4%) 28.9x 189.0% $4,385.3 0.58x 15.7x SUPERVALU $3,038.8 17.7% 19.9% 17.4x NA $5,852.8 0.34x 7.7x The Fresh Market $1,971.9 6.8% (1.4%) 22.4x 112.8% $1,956.7 1.12x 10.4x Weis Markets $1,338.4 5.5% 4.1% NA NA $1,241.5 0.45x 8.3x Smart & Final Stores $1,298.4 16.9% 11.9% 24.1x NA $1,782.1 0.50x 11.6x SpartanNash Company $1,193.5 18.9% 20.7% 16.2x 161.5% $1,757.4 0.22x 7.9x Ingles Markets $1,002.5 14.4% 33.4% 24.1x 213.6% $1,966.6 0.51x 8.4x Natural Grocers by Vitamin Cottage $620.9 (6.2%) (2.0%) 42.6x 160.8% $647.4 1.19x 14.9x Village Super Market $442.0 13.8% 14.9% NA NA $393.0 0.25x 6.3x Fairway Group Holdings Corp. $295.1 21.5% 114.9% NMF NA $513.0 0.64x NMF Roundy's $241.0 20.1% 1.0% 12.4x 46.7% $825.6 0.21x 7.0x Mean 8.4% 17.4% 25.9x 163.7% $6,696.8 0.69x 11.0x Median 10.8% 8.0% 24.1x 172.7% $1,869.4 0.51x 9.4x
Convenience Store Companies
($ in millions) % Change Forward Enterprise Value/LTM Enterprise Company Market Cap MTD YTD P/E PEG Value Sales EBITDA Alimentation Couche-Tard $22,735.5 3.4% (5.2%) 26.5x NA $24,142.0 0.67x 13.5x Casey's General Stores $3,500.5 2.7% (0.2%) 22.5x 201.9% $4,329.1 0.59x 9.8x Mean 3.1% (2.7%) 24.5x 201.9% $14,235.6 0.63x 11.7x Median 3.1% (2.7%) 24.5x 201.9% $14,235.6 0.63x 11.7x Note: Data as of March 31, 2015 Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
Food For Thought Public Company Trading Statistics 15
William Blair
Same-Store Growth – Food & Convenience Retail
Grocery Stores & Supermarkets
Sprouts Farmers Market 9.0% Smart & Final Stores 7.8% Publix Super Markets 6.4% Natural Grocers by Vitamin Cottage 6.2% The Kroger Co. 6.0% Whole Foods Market 4.5% Weis Markets 3.5% The Fresh Market 3.0% Ingles Markets 2.3% SUPERVALU 2.3% Village Super Market 2.2% Safeway 1.8% SpartanNash 0.4% Fairway Group Holdings (2.2%) Roundy's (2.3%)
Convenience Stores Casey's General Stores 7.7%
Alimentation Couche-Tard 4.5%
(1) Excludes fuel sales Note: Bolded companies reflect recently announced same-store sales data (announced in March/April 2015) Note: Data represents growth in the most recent reported fiscal quarter over the year-ago period Sources: Company filings and Capital IQ as of March 31, 2015
Food For Thought 16 Same-Store Growth – Food & Convenience Retail
William Blair
U.S. Public Equity Financing Summary – LTM
IPOs
($ in millions)
At Filing At Pricing Pricing & Performance - % Change Offer/ Initial Shares/ Deal Shares/ Filing Offer ADS Exc. Filing Value at ADS Inc. Offer Deal Market Relative Date Date Ticker Issuer Ovl. Range Midpoint Ovl. Price Value Value to Range 1 Day 1 Month 3 Months Current
$12.00 - 06/20/14 09/23/14 SFS Smart & Final Stores 13.5 175.5 15.5 $12.00 $186.0 $852.7 In Range 4.2% 9.2% 29.2% 46.7% $14.00
Mean 4.2% 9.2% 29.2% 46.7%
Median 4.2% 9.2% 29.2% 46.7%
Follow-Ons
($ in millions)
Pricing Performance - % Change
% Shares Offered Last Trade Before Shares/ Pricing ADS Offered Offer Deal Value Filing/ Offer/ Offer/ Date Ticker Issuer Business Description (mm) Price (mm) Primary Secondary Offer Offer Current
Manufacturer and marketer of convenience 03/09/15 PF Pinnacle Foods 14.3 $37.07 $531.0 0% 100% (0.7%) (0.7%) 10.1% food products
Specialty retailer of natural and organic 03/04/15 SFM Sprouts Farmers Market 15.8 $35.30 $559.4 0% 100% (0.4%) (0.4%) (0.2%) food
Manufacturer and marketer of convenience 01/28/15 POST Post Holdings 6.5 $47.50 $308.8 100% 0% (12.8%) 2.6% (1.4%) food products
Manufacturer and marketer of convenience 11/17/14 PF Pinnacle Foods 20.0 $32.11 $642.2 0% 100% 4.8% 4.8% 27.1% food products
Specialty retailer of natural and organic 11/10/14 SFM Sprouts Farmers Market 15.0 $29.38 $440.7 0% 100% 7.9% 7.9% 19.9% food
Manufacturer and marketer of natural snack 09/11/14 SNAK Inventure Foods 3.6 $12.85 $46.2 0% 100% (9.7%) (4.6%) (12.9%) food products
Manufacturer and marketer of convenience 09/08/14 PF Pinnacle Foods 15.0 $31.90 $478.5 0% 100% 6.0% 6.0% 27.9% food products
Specialty retailer of natural and organic 08/12/14 SFM Sprouts Farmers Market 15.0 $30.00 $450.0 0% 100% 5.6% 8.5% 17.4% food
Producer and distributor of chicken and 07/30/14 TSN Tyson Foods 23.8 $37.80 $900.0 100% 0% 5.4% 3.6% 12.3% related food products
Manufacturer and distributor of food and 07/16/14 THS Treehouse Foods 4.3 $75.50 $325.0 100% 0% 4.0% 2.2% 12.6% beverage products
Manufacturer and marketer of convenience 05/21/14 POST Post Holdings 5.5 $47.70 $262.4 100% 0% (1.6%) (2.5%) (1.8%) food products
Mean 0.8% 2.5% 10.1%
Median 4.0% 2.6% 12.3%
Sources: Dealogic and FactSet Research Systems Note: LTM as of March 31, 2015
Food For Thought U.S. Public Equity Financing Summary – LTM 17
William Blair
Selected Upcoming Industry Events
Date Event Location
April 2015 12-15 Grocery Manufacturers Association Science Forum National Harbor, MD 14-16 NACS State of the Industry Summit Chicago, IL 15-16 NGA Day in Washington (NGA, FMI and FIAE) Washington, DC
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 20-22 CSP Leadership and Crisis Prevention Forum Denver, CO 31-2 AFFI Food Logistics Forum Incline Village, NV 31-4 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 8-11 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 28-30 Georgia Association of Convenience Stores Annual Convention/Tabletop Show Amelia Island, FL
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 PROCESS EXPO Chicago, IL 15-18 RILA Retail Sustainability Conference Austin, TX 16-18 NCA Washington Forum Washington, D.C 17-19 All Things Organic - BioFach America Baltimore, MD 17-20 Natural Products Expo East Baltimore, MD 20-22 MUFSO Conference Dallas, TX 20-23 Candy Annual Planning Chandler, AZ 27-30 Energy & Store Development Conference (FMI) San Diego, CA 28-29 Canadian Federation of Independent Grocers-Grocery Innovations Toronto, Canada
Food For Thought 18 Selected Upcoming Industry Events
William Blair
Date Event Location
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 22-24 Consumer Goods Forum: Future Leaders Congress Rio De Janeiro, Brazil 23-25 Fresh Summit International Convention & Exposition Atlanta, GA 26-27 IFE Americas Food & Beverage Show Miami, FL 28-29 National Chicken Council - Annual Conference Washington, DC
November 2015 10-11 Kosherfest Secaucus, NJ 14-16 Outlook Leadership 2015 (CSP) TBD 15-17 PLMA's Private Label Trade Show Chicago, IL
December 2015 3-6 SOHO Expo Orlando, FL
January 2016 12-14 NW Food Manufacturing & Packaging Exposition Portland, OR 13-14 MarcabyBolognaFiere Bologna, Italy 17-19 Winter Fancy Food Show San Francisco, CA 24-26 Retail Industry Leaders Association – The Leadership ForumNaples, FL 26-28 International Production & Processing Expo Atlanta, GA
February 2016 23-25 Convenience Retailing University Dallas, TX 28-2 N.G.A. 2016 Annual Convention and Supermarket Synergy Showcase Las Vegas, NV 28-2 RILA Supply Chain Conference Dallas, TX
March 2016 6-8 Seafood Expo North America & Seafood Processing North America Boston, MA 9-13 Natural Products Expo West Anaheim, CA 20-23 American Bakers Association Annual Convention Phoenix, AZ
Food For Thought Selected Upcoming Industry Events 19
William Blair
General Market Update
Percentage Change
As of 03/31/15 Month-to-Date Year-to-Date Equity Market Indices Dow Jones Industrial Average 17,776.12 (2.0%) (0.3%) Nasdaq Composite 4,900.89 (1.3%) 3.5% S&P 500 2,067.89 (1.7%) 0.4% S&P Food Products Index 516.58 3.6% 4.3% S&P Food & Staples Retail Index 402.90 0.1% 4.8% S&P Restaurants Index 899.25 (0.7%) 7.1%
WB Corporate Finance Indices(1) Food Index 837.84 (0.8%) (1.6%) Ingredients Index 977.94 (1.5%) 1.1% Beverage Index 4,241.79 (5.0%) 1.6% Food Retail Index 1,086.14 2.7% 11.7% Convenience Store Index 27,469.98 4.4% 4.7%
Currencies Dollar to Canadian Dollar $1.27 1.4% 9.3% Dollar to Euro $0.93 4.4% 12.7% Dollar to Peso $15.23 1.9% 3.4% Dollar to Pound $0.67 4.1% 5.0%
Commodities(2) Coffee Beans (Cents and 1/100 of a Cent Up to 2 Decimal Places) $1.33 (5.4%) (20.2%) Corn (Cents per Bushel) $3.76 (4.3%) (5.2%) Milk (Cents per 2,000 lbs.) $0.16 1.2% (0.2%) Cocoa (Dollars per Metric Ton) $2,699.00 (10.5%) (7.3%) Oil (Dollars per Barrel) $47.60 (4.3%) (10.6%) Soybean Oil (Cents per Bushel) $0.30 (7.8%) (5.4%) World Sugar (Cents and 1/100 of a Cent up to 2 Decimal Places) $0.12 (13.4%) (17.8%) Wheat (Cents per Bushel) $5.12 (0.2%) (13.2%)
Yield (%) 52-Week Range
As of 52-Week 52-Week 03/31/15 Low Latest High INTEREST RATES 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 10-Year Treasury 1.9% 1.7% 2.8% 30-Year Treasury 2.5% 2.3% 3.6% 3-Month LIBOR 0.3% 0.2% 0.3% 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 March 31, 2015. Data is based on a weighted average by market capitalization calculation. (2) Commodities represent futures prices Source: FactSet Research Systems as of March 31, 2015 WB Corporate Finance Food Index includes: ARYZTA, Associated British Foods, B&G Foods, Bridgford Foods, Calavo Growers, Cal-Maine Foods, Campbell Soup, Chiquita Brands International, ConAgra Foods, Danone, Dean Foods, Diamond Foods, Dole Food Company, Flowers Foods, Fresh Del Monte Produce, General Mills, George Weston Limited, Golden Enterprises, Grupo Bimbo, Hormel Foods, Inventure Foods, J&J Snack Foods, JBS, John B Sanfilippo & Son, Kellogg Company, Kraft Foods, Lancaster Colony Corporation, McCormick & Co., Nestlé, Overhill Farms, Pilgrim’s Corp., Post Holdings, Sanderson Farms, Saputo, Seneca Foods, Nestlé, Ralcorp Holdings, Reddy Ice Holdings, Sanderson Farms, Saputo, Sara Lee, Seneca Foods, Smart Balance, Smithfield Foods, Snyder’s-Lance, The Hain Celestial Group, The Hershey Company, The J. M. Smucker Company, Tootsie Roll Industries, Treehouse Foods, Tyson Foods, Unilever WB Corporate Finance Beverage Index includes: Anheuser-Busch InBev, Boston Beer Co., Brown-Forman Corporation, Coca-Cola Bottling Co. Consolidated, Coca-Cola Enterprises, Constellation Brands, Cott Corporation, Diageo, Dr Pepper Snapple Group, Farmer Brothers Co., Green Mountain Coffee Roasters, Jones Soda Co., Lifeway Foods, Molson Coors Brewing Company, Monster Beverage Corporation, National Beverage, PepsiCo, SABMiller, The Coca-Cola Company WB Corporate Finance Ingredients Index includes: Barry Callebaut, Frutarom Industries, Givaudan, International Flavors & Fragrances, Kerry Group, Sensient Technologies Corporation, Symrise, T. Hasegawa Co., Takasago International WB Corporate Finance Food Retail Index includes: Arden Group (Gelson’s), Fairway Group Holdings, Harris Teeter Supermarkets, Ingles Markets, Nash Finch, Roundy’s, Safeway, Smart & Final Stores, Spartan Stores, SUPERVALU, The Fresh Market, The Kroger Co., United Natural Foods, Village Super Market, Vitamin Cottage Natural Food Markets, Weis Markets, Whole Foods Market WB Corporate Finance Convenience Store Index includes: Alimentation Couche-Tard, Casey’s General Stores, Pantry
Food For Thought 20 General Market Update
Quarterly Market Update – All Industries
William Blair
Domestic M&A Market Summary U.S. Activity Trends
M&A Activity
Number of Deals Undisclosed Mid-Cap >$1B < $100M Deal Value Deal Value ($ in billions) 13,336 14,649 12,955 18,000 12,427 11,509 12,741 12,202 12,846 $2,400 9,952 10,104 9,365 13,390 12,000 $1,600 6,000 $800 0 $0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 2013 LTM Number of Deals >$1B 171 209 269 346 158 124 201 183 218 215 288 310 Mid-Cap 1,097 1,118 1,286 1,438 1,073 713 1,133 1,161 1,144 1,245 1,267 1,244 <$100M 3,497 3,415 3,359 3,214 3,764 3,455 5,172 4,276 4,094 3,102 2,746 2,954 Undisclosed 5,187 5,362 7,513 8,338 6,514 5,073 6,235 7,770 9,193 7,640 8,545 8,447 Deal Value $992 $1,297 $1,645 $1,748 $1,074 $884 $1,045 $1,171 $1,080 $1,241 $1,819 $1,917
Mid-Cap M&A Activity
Number of Deals $100-$500M $500-$1B Deal Value Deal Value ($ in billions) 1,286 1,438 1,245 1,266 1,600 1,097 1,118 1,073 1,161 1,144 1,244 $600 1,133 1,200 713 $400 800 400 $200 0 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM Number of Deals
$500-$1B 173 185 239 307 183 102 221 219 231 246 219 218 $100-$500M 924 933 1,047 1,131 890 611 912 942 913 999 1,047 1,026 Deal Value $318.1 $338.4 $410.7 $475.0 $325.7 $201.2 $358.7 $367.5 $363.1 $399.6 $393.4 $391.7
Private-Equity Activity
Number of Deals Undisclosed Mid-Cap >$1B < $100M Deal Value Deal Value ($ in billions) 2,227 2,314 2,500 1,981 2,047 2,180 2,209 2,183 $800 1,618 1,786 1,795 1,904 2,000 1,471 $600 1,500 $400 1,000 500 $200 0 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM Number of Deals >$1B 53 62 86 123 34 25 60 56 65 67 93 92 Mid-Cap 340 343 368 402 252 193 339 297 253 264 304 288 < $100M 575 540 649 457 548 575 565 438 465 323 273 296 Undisclosed 650 841 1,124 1,332 961 678 1,017 1,256 1,397 1,250 1,539 1,507 Deal Value $231 $300 $550 $632 $204 $152 $272 $267 $263 $309 $389 $431 Note: Year-to-date as of March 31, 2015 Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis. Data represents announced deals only
Food For Thought Domestic M&A Market Summary 21
William Blair
U.S. Valuation Trends
Median EV/EBITDA Multiples
Mid-Cap Overall Market
15.0x 12.0x 9.0x 6.0x 3.0x 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM Mid-Cap 8.0x 8.9x 10.2x 10.9x 10.0x 9.4x 7.6x 10.0x 10.4x 9.6x 9.1x 9.4x 10.5x Overall Market 8.5x 9.1x 10.3x 11.0x 11.2x 9.0x 7.4x 9.9x 10.8x 9.7x 10.0x 11.2x 11.5x
Median EV/EBITDA Mid-Cap Multiples
$100M-$500M $500M-$1B 15.0x
10.0x
5.0x
0.0x
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM $100M-$500M 7.7x 8.9x 10.4x 10.8x 10.0x 7.9x 7.3x 9.4x 9.3x 9.2x 10.8x 9.2x 10.1x $500M-$1B 9.3x 9.1x 9.8x 11.6x 10.1x 9.5x 9.4x 10.3x 10.2x 10.2x 12.2x 9.8x 10.5x
Average Acquisition Premiums
1-Week Premium 4-Week Premium
50%
40%
30%
20% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM 1-Week Premium 36% 32% 28% 26% 26% 27% 36% 38% 34% 36% 36% 23% 31% 31% 4-Week Premium 38% 40% 32% 31% 31% 29% 37% 41% 38% 39% 39% 30% 34% 35% Notes: Data limited to a range of 1 to 100 and LTM is as of March 31, 2015 Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis. Data represents announced deals only
Food For Thought 22 Domestic M&A Market Summary
William Blair
U.S. Equity Capital Markets Summary
Historical IPO Issuance
243 250
200 175 139 150 95 105 100 70 54 63 56 63 54 56 39 50 48 28 35 25 50 24 13 19 20 21 21 24 0 2009 2010 2011 2012 2013 2014 2014 2015 1Q 2Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 YTD YTD 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15
Historical Follow-On Issuance
657 700 612 564 600 506 470 500 399 400 300 227 227 198 193 198 183 152 173 200 135 128 130 127 139 120 86 98 115 111 100 50 0 2009 2010 2011 2012 2013 2014 2014 2015 Q1 2Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 YTD YTD 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15
Note: Excludes follow-on offerings for CLEFs, REITs, and SPACs
IPO Pricings by Sector – Last 4 Quarters: Follow-on Pricings by Sector – Last 4 Quarters:
243 Total Deals 694 Total Deals
5 16 57 Business Services 94 Business Services 51 55 29 Consumer Consumer 55 Financial Financial
21 Healthcare 179 Healthcare Industrial Industrial 201 82 Technology Technology
Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis
Food For Thought U.S. Equity Capital Markets Summary 23
William Blair
Debt Capital Markets Summary
Average Equity Contribution
Less than $50 million EBITDA More than $50 million EBITDA 50% 47% 46% 46% 45% 43% 41% 43% 41% 40% 40% 41% 38% 38% 40% 39% 40% 36% 37% 35% 37% 37% 36% 34% 33% 31% 32% 32% 32% 30% 29% 30% 30%
20%
10%
0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD
Quarterly LBO Debt Multiples – Less Than $50 Million EBITDA
Total Debt/EBITDA Senior Debt/EBITDA
7.0x 7.0x
6.0x 6.0x 4.9x 4.8x 5.0x 5.1x 4.8x 5.0x 4.2x 5.0x 4.4x 4.4x 4.2x 3.8x 5.1x 3.8x 4.0x 5.0x 3.7x 4.8x 4.8x 4.0x 4.5x 3.4x 4.0x 4.0x 3.8x 3.0x 3.7x 3.0x 3.3x 3.2x 3.8x 3.1x 3.7x 2.2x 2.0x 2.0x 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Quarterly LBO Debt Multiples – Greater Than $50 Million EBITDA
Total Debt/EBITDA Senior Debt/EBITDA
7.0x 6.8x 7.0x 5.5x 6.6x 6.0x 5.3x 5.6x6.0x 5.1x 4.8x 4.9x 5.7x 5.3x 4.8x 4.3x 5.6x 5.0x 4.5x 4.4x 5.5x 5.0x 5.0x 4.0x 4.9x 4.0x 4.0x 4.4x 3.9x 4.0x 2.6x 3.0x 3.5x 3.0x 3.1x 2.9x 2.6x 2.9x 2.0x 2.0x 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Sources: Dealogic and Standard & Poor’s as of March 31, 2015
Food For Thought 24 Debt Capital Markets Summary
William Blair
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
Food For Thought William Blair Food & Beverage and Food Convenience & Retail Investment Banking 25
William Blair
Food & Convenience Retail Tim Carroll joined William Blair in 2002 and serves as a managing director in the consumer and retail investment banking group. He joined William Blair from Andersen Corporate Finance LLC, the investment banking arm of Andersen. Mr. Carroll spent four years at Andersen, serving as a national director and managing director/co-head of the products and business services industry team. Before joining Andersen, he was a founder and principal of Wyndam Capital, a broker-dealer serving middle-market companies, and a founder and principal of a $120 million private-equity fund. Mr. Carroll has served on the board of directors for seven privately held businesses and has more than 27 years of investment banking experience, 7 years of commercial banking experience, and 2 years of commercial real estate experience. Mr. Carroll graduated with a B.S. in business finance from Indiana University. [email protected] +1 312 364 8532 Michael Siska is a managing director in the consumer and retail investment banking group at William Blair. He originally joined the firm in 2002 and then rejoined in 2006 after attaining his M.B.A. at the University of Chicago. Before joining William Blair, Mr. Siska worked in private equity for Allstate Private Equity in Chicago and 3i Group in London. He also spent five years in the products and business services industry group at Andersen Corporate Finance LLC, the investment banking arm of Andersen. He focuses on specialty retail, food retail, restaurants, and consumer services. Mr. Siska earned an M.B.A. from the University of Chicago and a B.S., with honors, from the University of Illinois at Urbana-Champaign. [email protected] +1 312 364 5393
Europe Alex Matthes is a managing director at William Blair. Before he joined William Blair in 2013, Mr. Matthes worked in Commerzbank’s M&A advisory team with a focus on consumer and retail. Before joining Dresdner Kleinwort in 2006 as vice president, he worked in the M&A department of Lazard as analyst and associate since 2000. Mr. Matthes studied business administration at the universities of Frankfurt and Cologne and obtained a master’s degree in business administration (Diplom Kaufmann) in 2000. [email protected] +49 69 509527 612 Beth Pickens is a managing director and head of European consumer banking. She joined William Blair in 2000 and has been located in William Blair’s London office since 2001. Ms. Pickens specializes in advising international consumer growth companies across consumer products, personal care, and consumer services. She is also an angel investor in early-stage consumer companies, including Bonobos.com and DefySupply.com. Ms. Pickens holds a master’s degree in business administration from the University of Chicago Graduate School of Business and a bachelor’s degree in finance from the University of Illinois at Urbana-Champaign. She also completed studies at the Université de Paris IV-Sorbonne. A Chicago native, she lives in London with her husband and children. [email protected] +44 20 7868 4479
Food For Thought 26 William Blair Food & Beverage and Food Convenience & Retail Investment Banking
William Blair
Recent William Blair Consumer & Retail Transactions
$6,000,000,000 $500,000,000 $120,750,000 Not Disclosed
®
has acquired has acquired has been acquired by
Big Heart Pet Brands Del Taco Inc. Initial Public Offering Wasserstein & Co., LP
March 2015 March 2015 January 2015 December 2014
Not Disclosed Not Disclosed Not Disclosed Not Disclosed €220,000,000
has acquired has been acquired by has been acquired by has been acquired by has been acquired by Robert Bosch Tool One Rock Capital Knowlton Development Frutarom Corporation, Garden & Abris Capital Partners Partners Corporation Watering Business Industries Ltd. December 2014 December 2014 December 2014 November 2014 November 2014
$186,300,000 $139,840,000 $105,000,000 Not Disclosed
Growth Equity Follow-on Offering Follow-on Offering Follow-on Offering Recapitalization November 2014 November 2014 November 2014 October 2014
Not Disclosed $85,000,000 $53,117,980 Not Disclosed
has a strategic has been acquired by investment from Monomoy Capital Standard Chartered Senior Credit Facility Follow-on Offering Partners Private Equity October 2014 September 2014 September 2014 August 2014
$156,543,750 $123,214,290 $89,125,000 $373,749,990
Follow-on Offering Initial Public Offering Follow-on Offering Follow-on Offering
August 2014 July 2014 July 2014 July 2014
$171,646,263 $202,000,000 CAD$170,000,000 Not Disclosed $64,166,663
has been acquired by has been acquired by has been acquired by
Follow-on Offering Snyder’s Lance TreeHouse Foods, Inc. Milner Milling, Inc. Initial Public Offering
June 2014 June 2014 May 2014 May 2014 May 2014
$100,624,980 $61,300,000 Not Disclosed Not Disclosed
has been acquired by has been acquired by has been acquired by The Hain Initial Public Offering Bregal Partners Greencore Group Celestial Group April 2014 April 2014 March 2014 February 2014
Food For Thought Recent William Blair Consumer & Retail Transactions 27
William Blair
William Blair Consumer & Retail Coverage
Mark Miller, CFA +1 312 364 8498 Sharon Zackfia, CFA +1 312 364 5386 Broad Assortment and Hardlines, Apparel and Accessories, Leisure, Restaurants E-commerce, Health, Beauty, and Convenience 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 JD.com JD Harley-Davidson HOG MercadoLibre MELI Life Time Fitness LTM Natural Grocers by Vitamin Cottage NGVC Lululemon Athletica LULU Sportsman’s Warehouse Holdings SPWH Panera Bread Company PNRA Target Corporation TGT Papa Murphy’s Holdings FRSH Tractor Supply Company TSCO Potbelly PBPB Walgreens Boots Alliance WBA Royal Caribbean Cruises RCL Wal-Mart Stores WMT Sonic Corp. SONC Wayfair Inc. W Starbucks Corporation SBUX Whole Foods Market WFM Tilly’s TLYS Zulily ZU Tumi Holdings TUMI Under Armour UA Urban Outfitters URBN Zoe’s Kitchen ZOES Zumiez ZUMZ Jon Andersen, CFA +1 312 364 8697 Daniel Hofkin, Analyst +1 312 364 8965 Consumer Products 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 Scotts Miracle-Gro Company (The) SMG Mattress Firm Holding Corp. MFRM Fox Factory Holding Corp. FOXF O’Reilly Automotive ORLY Inventure Foods SNAK PetSmart PETM J&J Snack Foods JJSF Regis Corporation RGS J.M. Smucker Company (The) SJM Restoration Hardware Holdings RH Jarden Corporation JAH Ross Stores ROST Kellogg Company K Steiner Leisure STNR Keurig Green Mountain GMCR TJX Companies (The) TJX Mead Johnson Nutrition Company MJN Ulta Salon, Cosmetics & Fragrance ULTA Perrigo Company PRGO Williams-Sonoma WSM Prestige Brands Holdings PBH Procter & Gamble Company (The) PG SodaStream International SODA Tempur Sealy International TPX TreeHouse Foods THS
Amy Noblin, Analyst +1 415 248 2874 Apparel and Accessories Abercrombie & Fitch ANF Nordstrom JWN Coach COH Tiffany & Co. TIF DSW DSW Tumi Holdings TUMI Francesca’s Holdings FRAN Vera Bradley VRA Michael Kors Holdings KORS Vince Holding Corp. VNCE
Food For Thought 28 William Blair Consumer & Retail Coverage
William Blair
Notes
Food For Thought Notes 29
William Blair
Disclosures
William Blair is a trade name for William Blair & Company, L.L.C. and William Blair International, Limited. William Blair & Company, L.L.C., is a Delaware company and is regulated by the Securities and Exchange Commission, The Financial Industry Regulatory Authority, and other principal exchanges. William Blair International Limited is authorised and regulated by the Financial Services Authority ("FSA") in the United Kingdom. William Blair & Company® only offers products and services where it is permitted to do so. Some of these products and services are only offered to persons or institutions situated within the United States and are not offered to persons or institutions outside of the United States. This material has been approved for distribution in the United Kingdom by William Blair International Limited, and is directed only at, professional clients and eligible counterparties (as defined in COBS 3.5 and 3.6 of the FSA Handbook). This advertisement is not intended to be investment advice. William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com April 28, 2015 Food For Thought 30 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 2010-2014, the investment banking group completed more than 330 merger-and- acquisition transactions worth $73 billion in value, involving parties in 36 countries and About William Blair ive continents, was an underwriter on more than 20% of all U.S. initial public offerings, Investment Banking and raised nearly $100 billion in public and private inancing.