Industry Report, April 2018

Developments inApril Agri, 2018Food &edition Beverages Industry Report, April 2018

Industry Report

& Beverages Introduction

The Agri, Food & Beverages industry is constantly evolving to keep up to date with new trends and preferences across different demographics. Certification and confirmation of quality, ethical practices and sustainability are as important as ever to customers.

M&A Worldwide and the Agri, Food & Beverages specialist M&A Worldwide group, are always keeping track The Network for Mergers & Acquisitions with developments in the Agri, Food & Beverages industry, as well as new demands and strategic requirements, enabling us to be a valuable M&A partner.

This report covers market outlook, recent M&A and hot topics in the Agri, Food & Beverages industry. Established in 2004, M&A Worldwide is a leading global alliance of mid-market merger & acquisition specialists. M&A Feel free to contact any M&A Worldwide has 43 member firms operating in 45 different countries. All members are closely linked in a global alliance Worldwide member for further to advise clients on mergers, acquisitions, divestitures, joint- information. ventures, capital raising, and other strategic transactions.

In 2017, the members of M&A Worldwide closed 339 deals in for an aggregate value of over US$3.6 billion.

M&A Worldwide is able to provide specialized M&A consultants in a variety of industries who are willing to share their knowledge and insights on various sectors. For more information, please visit www.m-a-worldwide.com

Developments in Agri, Food & Beverages Industry Report, April 2018

M&A in Agri, Food M&A Activity in Agri, Private equity’s involvement in F&B has Food & Beverages been the most significant to date. The headline transaction to note at the end & Beverages 2017 saw 206 transactions announced of 2017 was the c. €7bn sale of or completed in the Food & Beverage Unilever’s spreads business, which (F&B) industry, a 2% increase on the includes the likes of Flora margarine, to prior year. While the increase in deal US buyout fund, KKR. The sales Global M&A Review volumes was modest, deal values have multiple of 10x last year’s EBITDA is risen sharply. Total (disclosed) deal considerably less than the 20x achieved According to Mergermarket (an Acuris values for 2017 in F&B reached c. by Reckitt Benckiser for its food company), global M&A saw a €24.1bn, more than double that of c. business in July last year, however, this contraction in activity in 2017, resulting €9.8bn in 2016. price was generally considered to be from investment uncertainty. Despite higher than expected. The sale comes Alcohol was the strongest segment of this, 2017 M&A marked the fourth after a rejected takeover bid from Kraft the market in 2017, accounting for consecutive year in which cumulative Heinz for Unilever was earlier in the year 16.5% of activity. Towards the end of the deal values exceeded the $3tn mark. led the business to reconsider its year, Thai Beverage won an auction to Cross-border activity continues to be portfolio, and a fall in total sales volume buy a majority stake in Vietnam’s top prevalent, accounting for 35% of deals for the spreads business as consumer brewer, Sabeco, for $4.8bn, in a bid to (albeit deal volumes are slightly down preferences move towards natural dominate the beverage market in South when compared to last year). This is foods. largely considered an effort by deal East Asia. This multi-billion-dollar deal follows Diageo’s acquisition of George makers to spread risk, so not to leave Consumer trends have been seen to be Clooney’s tequila brand, Casamigos for themselves overly exposed to dictating strategies for many other close to $1bn in June. geopolitical uncertainty. traditional food and drink businesses Technology was a major driver for M&A At the start of April 2018, C&C, the Irish too. October 2017 for instance, saw activity across all sectors, accounting for manufacturer, marketer and distributor Kellogg’s $600m acquisition of RXBar, a a record number deals in 2017. As of branded alcoholic drinks (including US-based whole food protein bar technology continues to disrupt Magners cider) announced that it is in company. In January this year, Swiss traditional sectors, there will be an advanced discussions to acquire food group, Nestle, sold its US overwhelming requirement for Conviviality brands including Matthew confectionery business to Ferrero, for companies to invest in this area, be it Clark and Bibendum. Financial support €2.8bn, which has been viewed as a first through innovation or acquisitions. The for this transaction will be provided by step towards selling healthier products. rapid pace in which technological Belgian brewer, AB InBev. The news The high levels of growth in the healthier advancements are being made suggests follows the Conviviality going into segment of the market and high that inorganic growth levels will increase administration after profit warnings were potential exit valuations have been in the future. issued to the market and the company proving attractive to private equity as admitted it had not budgeted for a £30m well. Notably, US firm, Cinven, agreed in Cheap debt is a recurrent theme as we tax bill. Other brands owned by October to buy a majority stake Spanish move towards the end of Q2 2018. With Conviviality such as, Bargain Booze and berry supplier, Planasa, for €450m, funds being readily available, we can Wine Rack, will not be included in the following double-digit revenue and profit expect purchaser activity to be buoyed deal with C&C and will be sold growth over recent years. and more high-profile deals making the separately. headlines throughout the course of the year.

Developments in Agri, Food & Beverages Industry Report, April 2018

M&A Rationale Further opportunities are likely to M&A in Agri, Food arise following the approval of US The low cost of debt today means that tax reform in the final month of & Beverages cash is more readily available, fuelling 2017. Though this is expected to purchaser appetite for strategic deals to have a positive impact on M&A (cont.) complement organic growth. Pressure is activity in the US, further also mounting on private equity firms to clarification on changes in policies One deal to keep an eye out for is JAB deploy funds. Resulting M&A will is still to be provided. contribute to consistent global GDP Holdings’ (JAB) acquisition of soft drinks business, Dr Pepper Snapple. The deal growth over the course of 2018. was announced towards the end of As technology continues to disrupt the January 2018. Dr Pepper Snapple will world as we know it and consumer be merged with coffee company, Keurig preferences evolve, M&A activity is Green Mountain, who are owned by expected to remain high. Companies are Luxembourg-based investment firm, aware that failure to innovate could lead JAB. The estimated consideration for to them falling behind the rest of the this transaction could be as much as pack. In many cases, acquisitions are $21bn and it will be the largest ever deal being viewed as more a cost-effective in the soft drinks industry. Strategic means to differentiate and compete than rationale for this deal has been internal investment. questioned by various industry analysts, given the climate for preferences. That said, it is thought that it will allow Dr Pepper Snapple to compete more effectively with the likes of Coca-Cola and PepsiCo. The deal is awaiting approval from shareholders and regulators.

The online segment is one which has been growing as technology disrupts F&B. Amazon’s $13.7bn acquisition of Whole Foods Markets was the largest in 2017 and US-based food retailer, Bite Squad, were the most active buyer, adding 17 online food delivery companies to its portfolio over the course of the year. With companies looking to provide consumers with more choice and convenience, this is one industry area that is anticipated to grow even further.

Developments in Agri, Food & Beverages Industry Report, April 2018

Countries on the Radar

Australia Denmark

The Agri, Food & Beverage sectors are During 2017, we have seen an key contributors to Australia’s GDP and increased number of transactions in the economic prosperity. Reputed as the Agri, Food & Beverage sector in world’s most reliable supplier of safe, Denmark. Most M&A activity has been high quality food & agricultural products, among larger players in the market. Argentina Australia saw increasing demand for Most recently, Danish Crown acquired exports over the course of 2017. With pepperoni producing company, DK Argentina is a leading country in terms rising incomes in developing nations e.g. Food´s, making Danish Crown the of food production with vast natural China & India, future demand for beef, largest pepperoni producer in Europe. resources and extremely fertile land. In dairy products, wheat, sugar and canola PE firms have also been acquisitive but the first ten months of 2017, Argentinian is projected to remain strong. with efforts focused more towards food exports accounted for $21bn. This owner-managed businesses. included soybeans and its sub-products, Local markets also attracted strong fish products, meat and wine, among interest from overseas investors in 2017. Consolidation both of market position others. The main export destinations International trade and financial buyers and of the value chain has been a were India, Brazil, Vietnam, Spain, the actively sought investment in Australian recurring trend in 2017 and is expected United States, Chile and Indonesia. business and agricultural assets. to continue into 2018. In turn, this will Combined with domestic transactions, provide companies with closer contact to 2017 was a dynamic year for M&A total M&A activity across the ‘agri-food’ the consumer with convenient products, activity in Argentina’s Agri, Food & sectors included +65 confirmed deals. single meals, vegan and organic Beverages sector. After acquiring a Major cross border deals included: products etc. stake in Mastellone Hermanos in 2010, Saputo’s acquisition of Australia’s Arcor, one of the world leading candy largest dairy processor, Murray producers, increased its shareholding Goulburn for €850m; China-based from 33.5% to 40.2% for $19m. Viñas de conglomerate New Hope Group’s Argentina, the wine business unit of purchase of Australia’s The Real Pet

local conglomerate Cartellone Group, Food for €653m; and Mead Johnson was sold to Vicentín, an integrated Nutrition Company’s (NYSE:MJN) (a agribusiness company. Also, Bioceres, a manufacturer of infant formula) France biotechnology firm, acquired 91% of agreement to buy spray drying and Chemotecnica (farming supplies), finishing capabilities from Australian 2017 M&A activity in France reached its resulting in a $10m deal. Finally, through Bega Cheese Ltd for €572m. highest levels since 2007, with more its local subsidiary, Bunge acquired than $245.8bn in transactions, according Aceitera Martínez. to Thomson Reuters. This represents 29% of the European transactions.

The Agri, Food & Beverage industry is a major sector for the French economy. In 2017, 60 M&A deals, 65 LBO and capital raising transactions and 5 IPO have

Developments in Agri, Food & Beverages Industry Report, April 2018

approval from shareholders and counter value of €41bn (down 28% Countries on the regulators. compared to €56bn in 2016). Foreign investors' interest in Italian companies is Radar (cont.) Other noteworthy transactions included: confirmed: 244 transactions carried out in 2017 for a total value of around €20bn • Katjes-Fassin, one of Germany’s (€19bn in 240 transactions in 2016). largest confectionery companies, have were closed. been very acquisitive in recent times. In Investments in M&A by Italian July 2017, they acquired Cloetta Italia companies and entrepreneurs were French food companies already make for c. €46m as well as a minority stake in decidedly more modest than last year, 37% of their turnover abroad, but Austrian wafer manufacturer, Josef and in 489 transactions (less than 2% external growth is increasingly a key Manner & Comp. In September 2017, compared to 500 in 2016) they invested success factor. Thus, Bonduelle (the Kajtes acquired a 15% stake in US €20.6bn (42% less than €37bn), of world leader in the ready-to-eat natural cereal and muesli firm, Seven which $11.3bn was in Italy and €9.3bn vegetables sector) took over the Sundays. They also acquired a minority abroad. American company Ready Pac Foods stake in British gourmet sweet company, for $409m in Feb 2017, and Lactalis Candy Kittens in January 2018. In the Food Industry, Ferrero increased took control of Stonyfield for $875m in its US presence and number of product July 2017. Stonyfield was previously • German PE firm, CK Corporate lines by buying the Fannie May owned by Danone, who were Finance, acquired beer brands, Confection Brands for $115m in March encouraged by the Federal Trade Hasseröder and Diebels, from last year. Permira Fund also signed the Commission of the United States, to sell Anheuser-Busch Inbev. CKCF sees acquisition of “Piadineria” (the their stake to speed up their acquisition potential to revitalize the two brands, transaction value is estimated at around of Whitewave for $12.5bn last July. who together generate c. €140m €260-€270m). The company expects to turnover, in a shrinking German beer close 2017 with €60m turnover and Finally, Saint Hubert was sold for industry (January 2018). EBITDA of €20m. The Santa Margherita US$720m to the Chinese conglomerate group acquired the majority of Cà Maiol, Fosun, who wants to become a major • Fuchs Group, Germany´s largest spice brand of Lugana Doc. With this player on the French market. producer, acquired 100% of Bart acquisition, Santa Margherita Ingredients, the second largest branded strengthens its leadership in the white herbs and spices company in the UK, wine segment. from Langholm Capital LLP. The acquisition allows Fuchs Group to diversify internationally and enhances their market position in the UK. (October 2017). Germany

The most noteworthy transaction in Netherlands Germany was JAB Holding’s After being subject to a possible merger (Luxemburg-based investment vehicle of with Kraft Heinz, Unilever completed an Germany´s Reimann family) acquisition acquisition to support their own growth of US soft drink producer, Dr Pepper by acquiring US condiments maker Sir Snapple for $18.7bn in January 2018. Dr Italy Kensington's for $130m. Unilever then Pepper will merge with leading coffee In 2017, the Italian M&A market continued with their expansion by producer, Keurig Green Mountain, to recorded 733 transactions (-1% acquiring Mae Terra – a Brazilian natural form a new beverage-group called, compared to 740 in 2016) for a total and organic food business – in October, Keurig Dr Pepper. The deal is awaiting

Developments in Agri, Food & Beverages Industry Report, April 2018

• The biggest deal in 2017 was the sale Cross border M&A deals in the Countries on the of the convenience store chain, Zabka, Agri/Food sector in Romania in 2017 by Mid Europa Partners PE fund, for c. include: €1bn. Zabka were acquired by CVC Radar (cont.) • Smithfield, part of WH Group, acquired Capital Partners. local meat processors Elit and Vericom. • PE fund, Argan Capital, sold drinks • Danish group Givesco A/S acquired and frozen food giant, Hortex Group, to 50% of the shares of local pasta while acquiring Starbucks Corporation’s Mid Europa Partners, one of Central and producer, Sam Mills Group, with a Tazo Brand’s assets by the end of South Eastern Europes’ major PE funds. combined business of over EUR 140 m. December, for $320m. Argus also acquired Mila, a chain of supermarkets, for c. €82m. Mila were • Mexican company Sigma Alimentos However, the largest deal in the previously owned by listed Polish retail has acquired 51% of the shares of Caroli Netherlands involved the sale of group, Eurocash. Foods Group, one of the main packaged Refresco NV, the leading European meats producers in Romania. bottler of soft drinks and fruit juices for • The Polish food market was receptive retailers and branded players, after to a significant amount of foreign • In October 2017, the European Bank pursuing tens of acquisitions investment. South-African fund, for Reconstruction and Development themselves. Refreso was sold for €1.6bn Coast2Coast acquired 4 Polish food (EBRD) confirmed that it will become a to a group of investors, led by the brands in 2017, Thailand’s, CPF, shareholder in the Romanian French private equity firm PAI Partners. acquired a minority stake in Polish agribusiness company, Agricover The new shareholders will further poultry group, Superdrop, and Chinese Holding, taking over 13% stakes. support the intended growth of Refresco, food giant WH Group took over shares through organic as well as non-organic of slaughterhouses belonging to Pini growth. Polonia.

United Kingdom

Despite the potential downside risks the Poland Romania food industry is exposed to (such as commodity price volatility), M&A in the The Polish market saw 204 transactions Romania is currently the most dynamic sector has remained strong, with in 2017 vs. 188 in 2016 (an increase of economy in the EU, with highest GDP disclosed deal values surpassing £6.5 8.5%). Approximately half of the growth in Europe of 8.8% in Q3 2017 billion in the past 12 months. Reckitt companies sold were owned by private and a 7% GDP growth in the first nine Benckiser’s sale of their UK food investors, who decided, or were forced, months of 2017. According to analysis business, which includes French’s to exit from the business due to a lack of by Deloitte Romania, total M&A deal Mustard and Frank’s RedHot to succession options. While most changes value increased in 2017 by 15% since McCormick & Company for £3.2bn, Post in ownership in 2017 related to entities the previous year, reaching levels just Holding’s acquisition of Weetabix for in the Media/IT/Telecom sector, it is the greater than €4bn. £1.4bn and Pilgrim’s Pride acquisition of Food and Retail industries, which Moy Park for £1bn have all contributed In 2016 vs. 2015, the purchasing power attracted the most attention in the significantly to that figure. increased with 12% while consumption market. Some of the more significant registered a 13.5% growth. For 2017, The Government is trying to mitigate the transactions in 2017 are outlined below: the estimations indicate a 10% year-on- increased costs facing food businesses year growth. due to the weakening of the sterling following the EU referendum.

Developments in Agri, Food & Beverages Industry Report, April 2018

Countries on the Radar (cont.)

Earlier this year, they released ‘Food and drink exporting – Five steps to success’ in an effort to encourage UK firms to export their products and turn the currency swing in their favour. Whilst UK food exports total £20bn in 2016, only 20% of UK manufacturers currently export their goods. The FDA has set the target of growing the export of UK branded goods by one third by 2020, which represents a significant opportunity for UK businesses, and is likely to attract further M&A interest.

Most deals (c. 88%) were made up of trade players looking to further develop and expand already existing product infrastructure or to strengthen their position in the UK. Private equity, both UK-based and abroad, made up the balance. The UK food sector has maintained its attractiveness to foreign buyers, with 54% (52% in 2016) of acquirers based abroad which has also been due to the weak sterling. This further breaks down as would be expected with 35% of acquirers from other European firms, 15% from North American and the outstanding 4% from those based in Asia.

Developments in Agri, Food & Beverages Industry Report, April 2018

2016 production of Sibiu salami was Production of meat products in Romania, by category In Depth 69% greater than in 2015. Further, the production of liver sausages and similar 8,000

products and food preparations based 6,000

thereon has registered a 20% growth. 4,000 tonnes

Similarly, the production of sausages, 2,000

dried sausages and other meat products 0 Sibiu salami liver sausages and similar products and have been steadily growing in the recent food preparations based thereon Romanian Meat Jan - May 2015 Jan - May 2016 Jan - May 2017 years. The trend is expected to continue Processing Industry in 2018-2020. Production of meat products in Romania, by category, 2015 - 2016 Romania is the most dynamic economy The Romanian Meat Processing sector in the EU, with highest GDP growth in is quite fragmented, with more than 120 16,000

Europe of 8.8% in Q3 2017 and a 7% players in 2017. Most of these have 12,000

GDP growth over the first nine months of shown increasing turnover in the recent 8,000 tonnes

2017. The Meat Processing Sector in years. Trade Registry data shows that 4,000

Romania is one contributing heavily to companies operating in the Romanian 0 Sibiu salami liver sausages and similar products this growth for a variety of reasons. food and beverages industry, with local and food preparations based thereon

These include: production activities, registered total 2015 2016 turnover of €12.2bn in 2016, 3% greater • Local market demand for meat and than in 2015. Further, the cumulated Net turnover dynamics of ten main meat producers in Romania meat products. turnover of the strongest twenty meat 300 processing firms in Romania was 6.3% • Availability of finance for investments 200 and development, including non- higher in 2016 compared to 2015, million EUR reimbursable grants from EU funds. reaching over €1.4bn. 100

• Increasing preferences of local 0 Elit Diana Unicarm Transavia Aaylex Prod Avicola Buzau consumers for traditional recipes. Smithfield Prod Caroli Foods Group Production of meat products in Romania, 2015 - 2016 Agricola International

Recunostinta Prodcom Impex

The output of the Romanian meat 2015 2016

processing sector is estimated to be 400,000 more than €1.2bn, with over 90% of the 300,000 urban population said to be consuming Source: MADR, FRD Center. 200,000

meat daily. By the end of 2016, the tonnes

Romanian meat processing sector 100,000 output had reached more than 345 0 thousand tonnes, which was 6% higher 2015 2016 than in 2015. In the first five months of 2017, this registered over 134 thousand tonnes, 3% more than in the same period of 2016. Production of meat products in Romania, by category

Due to local market demand for such 80,000 types of products, the output of local 60,000

raw-dry Romanian speciality salami, 40,000 Sibiu salami, as well as of liver tonnes 20,000 sausages and similar products and food preparations based thereon has been 0 sausages, dried sausages and similar other sausages, salami, baloney, meat products (excluding liver Polish sausages and other home- constantly growing in the recent years. products) made style specialities

Jan - May 2015 Jan - May 2016 Jan - May 2017

Developments in Agri, Food & Beverages Industry Report, April 2018

In Depth (cont.)

Growth in sales is expected to continue 2016 vs over the next few years among Turnover Turnover No. Company 2015 €m (2015) €m (2016) Romanian meat processors, with most % reporting growth between 8% and 10% 1 Smithfield Prod 174.0 199.9 14.9 In 2017. For example, Carniprod, one of 2 Unicarm 145.2 145.0 -0.1 the largest local meat processors, 3 Transavia 104.0 106.6 2.5 estimates a higher turnover of at least 4 Aaylex Prod 98.8 105.3 6.6 10% in 2017 compared to 2016, 5 Caroli Foods Group 90.0 95.7 6.3 reaching almost €19m. Additionally, 6 Agricola International 82.3 86.2 4.7 Meda Prod 98, a sausage producer, is in 7 Recunostinta Prodcom Impex 69.5 82.5 18.7 the process of implementing an 8 Elit 72.1 75.5 4.8 investment of €3m to build a raw-dry 9 Diana 65.2 69.0 5.7 cold cuts production line. Their business 10 Avicola Buzau 63.9 62.5 -2.1 saw growth of 10% in 2017, confirming 11 Maria Trading 51.7 54.5 5.5 the market's increasing demand for their 12 Aldis 50.4 46.3 -8.2 meat products. Meat cold cuts producer, 13 Fox Com Serv 36.0 44.4 23.3 Ana si Cornel, owned by local Industralizarea Carnii 14 28.8 37.1 28.8 entrepreneurs, also expect to see Kosarom growing revenue by c. 8% in 2017, to 15 Ana & Cornel 35.5 36.0 1.3 €37.7m. FRD Center analysis of the 16 Euroavi 34.4 33.2 -3.6 turnover dynamics of 20 of the major 17 Galli Gallo 31.0 32.2 3.9 players in the meat processing sector in 18 Meda Prod 98 29.6 30.7 3.9 Romania for latest available data (2016 19 Sergiana Prodimpex 28.9 30.6 5.9 vs. 2015) is shown below: 20 Ferma Zootehnica 28.3 30.0 5.8 TOTAL 1,319.7 1,403.2 6.3

Source: Ministry of Finance, FRD Center.

Developments in Agri, Food & Beverages Industry Report, April 2018

Caroli Foods Group, one of the main Newrest’s strategy to conquer the In Depth (cont.) packaged meats producers in Romania. mass catering French market, and gives it a very solid foothold in the French Catering Market fast-growing health and educational sectors. Newrest‘s objective with the In 2017, Newrest, the worldwide out-of- Coralys acquisition is to reach €300m home catering leader (total turnover of in sales in this market within a couple Romanian Meat €1.7bn, 30,000 employees), of years. headquartered in France and with MBA Capital was the adviser of Processing Industry: presence in 50 countries, acquired Coralys’ shareholders in these two 65.6% of the equity of the French M&A complex transactions. company, Coralys. This acquisition follows its first acquisition of 34.4% As previously alluded to, the Romanian stake in Coralys in September 2016. meat processing industry is fragmented. Several consolidations have been noted Coralys is a highly renowned contract in recent times as companies seek to catering French player which offers expand market share. Some examples quality products and services to the are listed below. health and educational sectors. Located in Lyon, it has turnover of €46m and Angst Group, controlled by local employs 800 staff. entrepreneurs, completed the takeover The acquisition of Coralys follows of the majority shares (88%) of the raw- dry cold cuts plant Salsi Sinaia, the oldest meat processor in Romania. Salsi Sinaia are known for making the famous Salam of Sibiu for more than 100 years. The Angst Group now comprises three productive units: Angst Ro, Angst and Salsi Sinaia. Carmistin AgriFood Group, specializing in meat production, processing and marketing, acquired Avi Instant, the former Avicola Târgu Jiu, in a transaction of €4.4m. Cris-Tim, one of the largest meat processors in Romania, completed the acquisition of Diavist Product, a local family-owned meat processing business.

The sector has also been attracting interest of international buyers for a few years too. Cross-border M&A 2017 includes the acquisition of local meat processors Elit and Vericom by Smithfields, who are part of WH Group (China). Also, Mexican company Sigma Alimentos acquired 51% of the shares of

Developments in Agri, Food & Beverages Industry Report, April 2018

Brexit and the UK Other Key Trends Certifications It is hard to mention the UK food Consumers are becoming increasingly industry without at least a brief reference & Topics more aware of the food they eat. to the potential impact of leaving the Multiple forces are working here; in European Union. The immediate issue is recent years trust has been eroded due the very high relative proportion of EU to recalls such as the horse meat workers in the sector in the UK; there scandal and consumers have become Sustainability has already been a 20% shortfall in increasingly health conscious. Both available staff this summer and survey factors have increased the importance of Larger operators are increasingly from the Food and Drink Federation food manufacturers receiving realising the value of making found that 36% of businesses felt that certifications to ensure that consumers movements into the ‘sustainable food’ they would be unable to adapt if they did can trust the products they are buying. space. This has been evidenced by a not have access to the EU labour market Following the horse meat scandal, the wave of recent acquisitions including following Brexit. BRC Global Standards certification Unilever acquiring Pukka Herbs, an reviewed their accreditation process and Whilst the potential labour shortage is a organic herbal tea company, Nestle pushed to increase the sharing of significant issue, we can equally reframe acquiring Sweet Earth, a sustainable criminal intelligence across Europe and the situation differently from an M&A meat producer, and Danone’s more globally to places like the USA and perspective. The referendum has further acquisition of White Wave Foods, a India. Whilst the added health benefits of pushed the zeitgeist towards ‘buying plant-based foods producer. Making organic food are questionable according British’ and supporting local industry, acquisitions such as these not only to many studies, companies that can coupled with the change in exchange allows the buyer to capture the higher receive an organic certification from rates, British consumers will be growth in the nascent industry but also groups such as the Soil Association, are increasingly ignoring foreign products for helps to reframe them as very likely to be able to charge a higher British ones. Whatever form the deal environmentally friendly and health- price for their products. with the EU ultimately takes, the British focused corporations that are having a market will remain incredibly large and Both forces highlight the increased positive and social impact on the world. international companies will want to be importance of operators in the industry active within it. If their current brands are being able to demonstrate their Buyers are unlikely to acquire a being turned down in favour of British credentials and the likely increase in sustainable business for the sole reason competitors, acquiring these companies importance acquirers will be attributing that it is sustainable, but its weight as a may become their preferred route of to them. criterion for investment is rising. entry into the market. Investors are ever more appreciative of the idea that a company with a sustainable business model is significantly more likely to be around for many more years to come and should hold a stronger competitive position than those not adopting sustainable practices.

Developments in Agri, Food & Beverages Industry Report, April 2018

Deal Highlights

Developments in Agri, Food & Beverages Industry Report, April 2018

Deal Highlights (cont.)

Early stage Venture was acquired by raised with Business Angels

Last mile chilled and frozen Growing Equipment delivery

Sell-side Equity raising

Developments in Agri, Food & Beverages Industry Report, April 2018

M&A Worldwide Agri, Food & Beverages Industry Group

Argentina Mario Caramutti [email protected] +54 11 5278 5600

Australia Adrian Ness [email protected] +61 2 8211 0523

Denmark Jens Möller [email protected] +45 5135 3622

France Philippe Delecourt [email protected] +33 1 53 53 59 30

Isabelle Arnaud- France [email protected] +33 1 42 65 72 75 Despréaux

Team Leader Italy Fabrizio Ricci [email protected] +39 02 87 24 25 00 Jacques Jetten

Aeternus Netherlands Jacques Jetten [email protected] +31 0 6 41 66 29 87 The Netherlands

Netherlands Carlo Caria [email protected] +31 0 6 21 84 80 52 [email protected] www.aeternuscompany.nl Spain Manel Pelegrina [email protected] +34 933 968 084

Romania Jackie Bojor [email protected] +4021 411 1460

UK Jonathan Rich [email protected] +020 3872 4500

USA Bill Battison [email protected] +001 202 470 1972

Poland Kamil Olejnik [email protected] + 48 71 36 99 657

Croatia Denis Smolar [email protected] + 385 164 70 259

France Nicolas Bonnel [email protected] + 33 6 22 66 73 78

Germany Heinz Fischer [email protected] + 49 160 938 64744

Vietnam Pham Thuy Linh [email protected] + 84 975 901 155