M&A ACTIVITY REMAINS RESILIENT, FOODSERVICE PLAYERS EXPLORE RETAIL END MARKETS DISTRIBUTION INDUSTRY UPDATE | JUNE 2021

3 TABLE OF CONTENTS

Key Industry Takeaways 4 Industry Outlook 5 M&A Overview 6 Notable Transactions 7 Public Company Performance 8 Select Transactions 9 Buyer Universe 10 Public Company Data 11 Report Contributors 12 Firm Track Record 13 Endnotes 14

Contact Our Food Distribution Industry Experts

Brian Boyle Managing Director 312-287-9812 [email protected]

Yogesh Punjabi Director 617-619-3305 [email protected] Capstone Partners is one of the largest and most active independently-owned investment banking firms in the . Over the past 20 years, thousands of business owners, investors, and creditors have trusted us to help guide their strategic decisions and maximize financial outcomes at every stage of the corporate lifecycle.

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capstonepartners.com Food Distribution Industry M&A Activity Remains Resilient, Foodservice Players Explore Retail End Markets

KEY INDUSTRY TAKEAWAYS

Capstone Partners’ Consumer Investment Banking Group is pleased to share its Food Distribution report. Transaction activity in the industry has remained robust throughout 2020 and year-to-date (YTD) 2021 as industry participants continue to scale, diversify, and penetrate new geographies. Leading industry players have also demonstrated a strong propensity towards the Retail subsegment, as revenues among foodservice players have suffered, encouraging participants to permeate retail channels.

1. Distributors in the Foodservice subsegment have experienced significant headwinds over the last year, while those in the Retail subsegment have recorded strong revenues amid the pandemic.

2. Merger and acquisition (M&A) activity has remained robust driven by strategic buyers seeking increased scale, diversified products, and penetration into new geographies, while private equity has remained attracted to the predictability of revenues.

3. Despite significant pressure on margins, public company trading metrics have remained strong with top industry participants experiencing significant EBITDA multiple expansion and high rates of total return.

4. Specialty distribution providers have continued to be highly sought-after M&A targets as strategics seek to bolster product offerings and private equity looks to enhance sector portfolios.

5. The supply of qualified truck drivers for distribution remains tight, costs to acquire new drivers remain well above historical averages.

6. Food distributors seek to find ways to move up the value curve by vertically integrating or adding food processing capabilities.

Capstone Partners has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms through each stage of the company’s lifecycle, ranging from growth to an ultimate exit transaction.

To learn more about Capstone’s wide breadth of advisory services and Food Distribution industry expertise, please contact Brian Boyle.

4 Food Distribution | June 2021

INDUSTRY OUTLOOK

The Food Distribution industry has demonstrated a substantial recovery from COVID-induced headwinds that challenged supply chains, sales, and profit margins of industry participants. Shifting Brian Boyle consumer preferences ushered a significant Managing Director change in spending which bolstered the attractiveness of retail end markets, including , while hampering performance in the “The Food Distribution sector is changing as Foodservice subsector reflected in depressed traditional lines are being crossed. Many restaurant sales. Notably, chains Foodservice distributors have begun selling to experienced a 11.6% increase in sales in 2020 YOY, Grocery/Retail customers, most notably in while foodservice management firms recorded a Specialty food categories. Additionally, as labor and fuel costs have risen, food 17.6% decline, according to Pentallect.1 End market distributors are capturing additional margin by exposure has largely dictated sales performance, adding food processing capabilities. In with foodservice oriented public players including addition to seeking more scale and reach, Sysco (NYSE:SYY) and US (NYSE:USFD) these vertical integration and crossover experiencing quarterly net sales declines of 23.1% trends will continue to be important drivers of and 11.5%, respectively, according to their most M&A activity going forward.” recent earnings releases.2,3 While Performance Food Group (NYSE:PFGC) managed to increase revenue in its most recent quarter, net income declined over 78%, according to its most recent earnings release.4

The robust performance of supermarkets, specialty distributors, and big box retailers a 10.1% YOY revenue increase in Q4, capitalizing on presents valuable revenue opportunities for heightened seafood consumption in North foodservice players to permeate the retail America, noting that sales of frozen seafood retail segment. Leading retail wholesalers experienced increased 71% in 2020, according to its earnings 8 strong operating results despite market call. Specialty food distributors have also proven uncertainty through much of 2020, with United highly sought-after targets in M&A markets, as Natural Foods (NYSE:UNFI) recording a 7.1% retailers and foodservice providers increasingly increase in net sales in second quarter fiscal 2021, seek to build out their offerings. according to its most recent earnings release.5 At the height of the pandemic, foodservice As vaccination rollouts progress and dining participants rapidly altered business models to restrictions ease, pent-up consumer demand and cater to elevated retail demand, as full-service improved economic visibility is expected to drive restaurant chain customer transactions fell by 70% near term industry growth. In addition, leading in April 2020, according to NPD.6 Notably, Sysco public food distribution players have established new customer relationships with retail demonstrated strong performance, with one-year grocers to offset losses in the Food-Away-from- total return in Capstone’s Food Distribution index Home segment and capitalize on growth outpacing the S&P 500 at +49.2%. Elevated opportunities post-COVID-19, according to a press valuations for public companies bodes well for release.7 In addition, US Foods, which earns over robust pricing in M&A markets, with the average 50% of its revenue from the Restaurant sector, EBITDA trading multiple standing at 16.2x. secured approximately 20 retail distribution Technological investment is likely to remain a key partnerships across the U.S. industry focus, as providers seek to optimize distribution and value-added capabilities, Specialty distribution has emerged as a favorable especially as the sector faces a shortage of truck segment within the industry, as consumers have drivers. Notably, top players including Core-Mark increasingly sought specialized food categories. (Nasdaq:CORE) have invested in digital solutions to Notably, leading specialty food manufacturer and enhance fleet and driver efficiency, in addition to distributor Premium Brands (TSX:PBH) experienced allocating to warehouse robotics.

5 Food Distribution | June 2021

M&A OVERVIEW

The defensibility of the Food Distribution industry M&A Activity Remains Resilient has been reflected by robust transaction activity Year-to-date transaction volume has remained in 2020 and into YTD 2021. Transaction volume in robust, mirroring 2020 levels. 2020 was nearly equivalent to the prior year with 100 90 60 deals announced or completed with a healthy 80 pace of deal activity continuing through YTD 2021. 70 59 62 60 The non-cyclical nature of the industry has 60 supported active M&A markets and strong buyer 50 interest, as industry participants continue to 40 32 32 consolidate to scale, penetrate new geographies, 30 and add additional high growth product categories. 20

Private equity firms have also demonstrated Transactions of Number 10 sustained interest in the industry, attracted to the 0 predictability of revenues and ability to bolster 2018 2019 2020 YTD YTD investments through add-on acquisitions. Notably, 2020 2021 sponsors have accounted for 32% of total Private Businesses Comprise Majority of Targets transactions in YTD 2021, a slight increase from the Multigenerational, family-owned businesses accounted for previous year, largely pursuing add-ons to a large percentage of food distribution companies that enhance current portfolio companies. were sold in 2020.

5.0% Public companies increasingly pursued acquisitions in 2020 comprising 18% of total PE-Backed transactions, compared to under 7% in 2019. Public Company Subsidiary 8.3% Through 2021, specialty food manufacturer and Private Company Subsidiary distributor Premium Brands has led public company activity, continuing to actively build out Privately Owned 20.0% its specialty food offerings evidenced by its acquisition of Fruits de Mer Starboard (March, 66.7% undisclosed), a wholesaler of fresh and frozen seafood. Private strategics have accounted for a majority of transaction activity in 2020 and YTD

2021, with GrubMarket among the most active Year-to-date (YTD) ended June 3 acquirers, purchasing 11 businesses since the start Source: Capital IQ, PitchBook, FactSet, and Capstone Research of 2020. Most recently, the online marketplace provider acquired RJ Produce in March for an takes an event for them to kind of look in the undisclosed sum. Food distribution providers have mirror and say, is this what we want to do going also experienced elevated M&A valuations, with forward or is this time to have an equity event or a the average EBITDA transaction multiple in 2020 liquidity event and really change the trajectory of amounting to 10.8x, a notable increase from two their family,” Scott E. McPherson, Core-Mark years prior at 8.4x. President, CEO & Director, commented in an investor presentation.9 Notably, privately-owned, Wholesale and Specialty distribution have independent businesses accounted for 67% of represented an attractive subsector for industry food distribution businesses sold in 2020, a slight participants, as COVID-19 introduced significant decline from 73% in 2019, according to Capstone disruption in the Food-Away-from-Home sector. Research. Private businesses are forecast to Consolidation in the wholesale distribution continue to be in high demand, and with the Biden subsector is expected to remain robust, with the administration imposing potentially unfavorable pandemic potentially serving as a catalyst for tax treatment of capital gains, many owners are transaction activity. “I think you'll see continued expected to expedite their exit timeline. consolidation. But, bringing out COVID is an Competition for quality assets is poised to interesting point because most of these increase, with heightened valuations favoring high companies are family-run businesses, margin specialty and niche distributors with a multigenerational businesses. And, a lot of times, it proven footprint. 6 Food Distribution | June 2021

NOTABLE TRANSACTIONS

Brian Boyle Managing Director

Performance Food Group has agreed to acquire Core-Mark, a leading wholesale distributor to the “Not surprisingly, we are seeing a sharp Convenience Retail sector, for an enterprise value rebound in Foodservice Distribution, and we of $2.7 billion and equivalent to 12.3x EBITDA. The expect this trend to accelerate as the continues to open up. In terms of acquisition expands Performance Food Group’s M&A activity, we believe that most of the geographic footprint and bolsters its presence in activity will be in this segment, especially the convenience store channel, adding within the Specialty Food sectors. The Ferraro approximately $17 billion to net sales, according to and Quirch Foods acquisitions were good a press release.10 In addition, Core-Mark enhances examples of these trends.” Performance Food Group’s customer base and diversifies its product offerings, most notably in the Fresh Food subsegment.

Kelso & Company acquired leading specialty Lindsay Goldberg, a leading private investment foodservice distributor Ferraro Foods, formerly firm, has agreed to acquire ARYZTA for an backed by Kainos Capital, for an undisclosed sum enterprise value of $850 million (March). ARYZTA is in April. Ferraro supplies primarily to the Italian a specialist food producer that supplies and restaurant and Pizzeria segment in the eastern U.S. distributes breads, baked goods, and snacks to with over 6,000 end customers. The acquisition Quick Service Restaurant, Foodservice, and Retail highlights the robust private equity appetite for markets in the U.S. and Canada. It operates 15 premier specialty food distributors and bolstering production facilities with over 4,000 employees. sector portfolios through add-ons. Notably, Lindsay Goldberg’s industry expertise and Ferraro completed seven add-ons under Kainos’ expansive resources are expected to drive ownership, according to a press release.11 increased innovation and growth for ARYZTA.

Schiff’s Food Service (SFS) acquired the Palladium Equity Partners-backed Quirch Foods Foodservice distribution division of K. Heeps in completed a merger with leading protein February for an undisclosed sum. The acquisition is distributor Colorado Boxed Beef in September expected to increase Schiff’s Food Service’s fleet 2020. Terms of the transaction were not disclosed. size by 20%, inclusive of drivers, order selectors, The merger bolsters Quirch’s core domestic retail and additional meat room staff, according to a business and expands its foodservice distributor press release.12 We see this as a possibility to channel. Leveraging over 20 distribution centers regain pandemic losses and believe this across the U.S. and approximately 1,700 acquisition will leave us well placed for future employees, the integration of Colorado Boxed Beef growth opportunities,” commented Ryan Yeager, is expected to bolster and diversify Quirch’s president of SFS in a press release. product offerings.

7 Food Distribution | June 2021

PUBLIC COMPANY PERFORMANCE

Public Companies 2020 2021 Experience Robust EBITDA 50x Multiple Expansion 45x 40x Despite pressure on 35x 31.1x 27.8x margins, leading Food 30x Distribution providers have 25x

experienced drastic EV/EBITDA 20x 15.5x increases in EBITDA 15x 12.1x 11.8x 11.7x 7.9x 9.0x multiples, with the average 10x 5.7x 5.5x 5.3x 5.0x multiple standing at 16.2x in 5x year-to-date 2021, far 0x exceeding the prior year AMCON Core-Mark Performance Sysco United US Foods average of 8.6x. Food Group Natural Foods

Source: Capital IQ and Capstone Research

LTM Gross Margin LTM EBITDA Margin Leading Industry Participants Focus on 40% Margin Improvement 35% 30% Top public companies have focused on 25% 18.2% bolstering margins to 20% 16.2% improve operating 14.7% 15% results following 11.7%

heightened market Margin Percentage 10% 7.7% 6.5% 3.6% 4.2% disruption introduced by 5% 2.1% 1.6% 2.3% 2.2% the COVID-19 pandemic. 0% AMCON Core-Mark Performance Sysco United Natural US Foods Food Group Foods

LTM = Last Twelve Months Source: Capital IQ and Capstone Research

Foodservice Players Suffer 25% Heavy Last Twelve-Month 13.5% Revenue Losses 15% 6.6% 5.1% Industry participants 5% 0.7% catering to Retail end markets exhibited strong -5% LTM revenue growth, while -15% public companies including

Percentage Change Percentage -13.0% Sysco and US Foods -25% suffered sales declines as -26.0% the Foodservice segment -35% struggled in 2020. AMCON Core-Mark Performance Sysco United Natural US Foods Food Group Foods

Source: Capital IQ and Capstone Research

8 Food Distribution | June 2021

SELECT TRANSACTIONS

Enterprise EV / LTM Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA

Greco and Manufactures and distributes fresh meats and poultry 05/20/21 Sysco (NYSE:SYY) - - - Sons products to restaurants and pizzerias.

Core-Mark Performance Food Distributes packaged consumer products to the 05/18/21 $2,694.0 0.2x 12.3x (Nasdaq:CORE) (NYSE:PFGC) Convenience Retail industry.

Benson 03/17/21 J&J Produce Markets and ships fresh produce. - - - Hill

Wholesales produce and distributes to retailers across 03/16/21 RJ Produce GrubMarket the U.S. - - -

Lloyd-James Very Good Food Provides wholesaling and food service brokerage 03/15/21 - - - Marketing (TSXV:VERY) specializing in the plant-based .

03/12/21 ARYZTA (SWX:ARYN) Lindsay Goldberg Distributes bakery products. $850.0 - -

Fruits de Mer Premium Brands 03/11/21 Wholesales fresh and frozen seafood. - - - Starboard (TSX:PBH)

Distribution Cote- Premium Brands 03/11/21 Provides foodservice distribution. - - - Nord (TSX:PBH)

Foodservice division Schiff’s Food 02/26/21 Comprises a food distribution business. - - - of K.Heeps Service

Earth Circle Monk-E Wholesales and distributes raw and 02/12/21 - - - Organics Nutraceuticals organic superfoods.

National Provides wholesale distribution of grocery and 01/20/21 Wustefeld Candy - - - Convenience convenience products.

Distributes fruits, vegetables, and foodservice items 01/19/21 Fresno Produce GS Foods Group to restaurants, fast food chains, and grocery stores. - - -

01/14/21 Bengard Marketing GrubMarket Provides distribution of fruits in the U.S. - - -

Post Offers hard-cooked and deviled eff products distributed 12/14/20 Almark Foods $51.3 - - (NYSE:POST) across retail outlets and to foodservice distributors.

12/08/20 Leo’s Apples GrubMarket Distributes fruits. - - -

Provides organic products including fruits, vegetables, 11/18/20 McCartney Produce FreshEdge - - - herbs, frozen goods, and snacks.

Organic Corp/Tradin Amsterdam Sources and supplies raw ingredients to the international 11/10/20 $389.8 0.8x 10.0x Organics (ENXTAM:ACOMO) food industry.

Clearwater Premium Brands Offers distribution, processing, harvesting, and marketing 11/09/20 $718.1 1.9x 10.9x Seafoods (TSX:PBH); FNC of seafood.

Aquanor 10/22/20 Samherji Imports, distributes, and markets seafood products. - - - Marketing

JDW Modern Meat 10/05/20 Provides healthy and gourmet meat. - - - Distributors (CNSX:MEAT)

Colorado Boxed Distributes refrigerated and frozen products 09/18/20 Quirch Foods - - - Beef Company including beef, pork, and poultry.

Allseas Premium Brands 08/31/20 Provides wholesale distribution of seafood products. $46.7 - - Fisheries (TSX:PBH)

Office 08/06/20 GoJava Supplies office grocery and pantry products. - - - Grocery

Source: Capital IQ, PitchBook, FactSet, and Capstone Research

9 Food Distribution | June 2021

BUYER UNIVERSE

Capstone has followed buyers and industry leaders that have been highly acquisitive in the space as well as those that have completed notable Food Distribution transactions. Capstone’s industry expertise and network provides us with unique insights into this buyer universe such as the companies’ industry and growth perspectives.

Leading Strategic Buyers

Leading Financial Buyers

Source: Capital IQ, PitchBook, FactSet, and Capstone Research

10 Food Distribution | June 2021

PUBLIC COMPANY DATA

Price % 52 Wk Market Enterprise LTM EV / LTM Company 06/03/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA AMCON Distributing Company $137.00 87.4% $75.5 $141.1 $1,202.2 $25.6 2.1% 0.1x 5.5x

Core-Mark Holding Company, Inc. $46.46 97.1% $2,098.3 $2,653.6 $13,609.1 $218.7 1.6% 0.2x 12.1x

Performance Food Group Company $49.79 83.1% $6,662.2 $9,466.2 $26,868.5 $610.3 2.3% 0.4x 15.5x

Sysco Corporation $80.29 92.6% $41,074.9 $49,491.4 $44,027.5 $1,590.4 3.6% 1.1x 31.1x

United Natural Foods, Inc. $39.46 93.1% $2,221.4 $5,857.8 $27,347.0 $1,160.9 4.2% 0.2x 5.0x

US Foods Holding Corp. $37.85 89.9% $8,399.4 $13,940.4 $22,841.0 $502.0 2.2% 0.6x 27.8x

Mean 2.7% 0.4x 16.2x

EV = enterprise value; LTM = last twelve months Median 2.2% 0.3x 13.8x $ in millions, except per share data NM = Not Meaningful Harmonic Mean 2.4% 0.3x 10.1x

Food Distribution Index Total Return vs. S&P 500

Food Distribution Index S&P 500

80%

60%

40%

20% Percentage Return Percentage 0%

-20% Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21

Index includes: DIT, CORE, PFGC, SYY, UNFI, USFD Source: FactSet and Capital IQ as of June 3, 2021

Yogesh Punjabi Director

“We have seen near bifurcation in Food & Beverage Distribution over the last 15 months. While many larger market participants have pursued non-traditional revenue streams and doubled down on facility expansion, many smaller, regionally-centric distributors have either had to pivot strategies quickly or pursue a sale event to a larger, more well-capitalized competitor. Going forward, we anticipate continued M&A activity in the sector, driven in part by investors who own a specialty distribution platform with a particular set of competitive advantages including category depth, regional leadership, captive supplier base, and strong focus toward particular channels.”

11 Food Distribution | June 2021

FOOD DISTRIBUTION REPORT CONTRIBUTORS

Brian Boyle Managing Director [email protected] | 312-287-9812

Brian Boyle is a Managing Director in Capstone Partners’ Consumer & Retail Investment Banking team and brings 35 years of Mergers & Acquisitions and Capital Markets experience to the firm. Brian is exclusively focused on advising Food, Beverage and clients and has guided hundreds of Companies through M&A transactions, capital raises, and initial & secondary public offerings. He has extensive cross border transaction experience working with strategic acquirers within the Food sector.

Prior to joining Capstone, Brian was Head of the Food, Beverage and Agribusiness team at Raymond James within their Consumer Investment Banking Group. Prior to joining Raymond James, Brian was Managing Director and Co-Head of the Consumer Investment Banking Group at PwC Corporate Finance, where he focused on advising Food & Agribusiness clients. Prior to PwC Corporate Finance, Brian was Head of Food & Beverage Investment Banking at D.A Davidson which had acquired RSM’s Investment Banking group where he had spent 12 years leading their Food & Beverage team. He started his career at Lehman Brothers where he spent 13 years in their debt capital markets division.

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

Yogesh is a Director in Capstone Partners’ Boston office and brings over 10 years of investment banking experience across mergers & acquisitions, financial advisory, and capital raising for private and public companies. Prior to joining Capstone, Yogesh was a Senior Vice President at Jefferies in their investment banking practice and executed transactions in the U.S. and Europe.

Prior to Jefferies, Yogesh was with BB&T Capital Markets where he worked with clients in the Food & Agribusiness and Consumer sectors, and with Financo where he focused on Consumer & Retail clients. Yogesh began his financial career in Alternative Investments at Bank of America Merrill Lynch after graduating from business school at Georgetown University.

Connor McLeod Research Associate [email protected] | 617-619-3319

Connor is a Research Associate at Capstone Partners primarily specializing in Building Products & Construction Services, Consumer & Retail, and Healthcare. Prior to joining Capstone, Connor was a specialist with the Investor Services team at BlackRock where he worked with mutual funds, closed end funds, and exchange traded funds and communicated fund performance, relevant market dynamics, and facilitated trades for shareholders, financial advisors, and institutional clients. Connor holds a BA in from Bates College and is a Series 7 Registered Securities Representative.

12 Food Distribution | June 2021

FIRM TRACK RECORD

Capstone maintains an active presence in the Food Distribution and Food & Beverage sectors with in- depth knowledge of the buyer universe and business characteristics that drive premium valuations in an M&A process. Our frequent conversations with industry participants provide us with increased transparency into market trends and buyer preferences. A sampling of Capstone’s closed and active transactions are outlined below.

CONFIDENTIAL

CORPORATE SALE HAS BEEN ACQUIRED BY HAS FORMED A JOINT HAS BEEN ACQUIRED BY VENTURE WITH PRODUCER OF PAQ, Inc. Employee Stock BRANDED MEAT Ownership Plan PRODUCTS

HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY

and

HAS BEEN ACQUIRED BY HAS ACQUIRED HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY

AN INDIVIDUAL INVESTOR

13 Food Distribution | June 2021

ENDNOTES

1. Pentallect, “FOOD INDUSTRY 2020: LEADING AND LAGGING SECTOR PERFORMANCE,” https://www.pentallect.com/food-industry- 2020-leading-and-lagging-sector-performance/, accessed April 6, 2021. 2. Sysco, “Sysco Reports Second Quarter Fiscal 2021 Results,” https://investors.sysco.com/annual-reports-and-sec-filings/news- releases/2021/02-02-2021-130404680, accessed April 2, 2021. 3. US Foods, “US Foods Reports Fourth Quarter and Fiscal Year 2020 Earnings,” https://s22.q4cdn.com/603501095/files/doc_financials/2020/Q4/Q4FY20-Earnings-Release-Final.pdf, accessed April 5, 2021. 4. Performance Food Group, “Performance Food Group Company Reports Second-Quarter and First-Half Fiscal 2021 Results,” https://investors.pfgc.com/press-releases/press-release-details/2021/Performance-Food-Group-Company-Reports-Second- Quarter-and-First-Half-Fiscal-2021-Results/default.aspx, accessed April 6, 2021. 5. United Natural Foods, “United Natural Foods, Inc. Reports Second Quarter Fiscal 2021 Results,” https://ir.unfi.com/news/press- release-details/2021/United-Natural-Foods-Inc.-Reports-Second-Quarter-Fiscal-2021-Results/default.aspx, accessed April 5, 2021. 6. NPD, “With Hope for Recovery in 2021, The U.S. Restaurant Industry Ends 2020 Making Its Way Out of the Steep Declines Caused by Pandemic,” https://www.npd.com/wps/portal/npd/us/news/press-releases/2021/with-hope-for-recovery-in-2021-the-us- restaurant-industry-ends-2020-making-its-way-out-of-the-steep-declines-caused-by-pandemic/, accessed April 2, 2021. 7. Just Food, “US foodservice supplier Sysco turns focus onto retail,” https://www.just-food.com/news/us-foodservice-supplier- sysco-turns-focus-onto-retail_id143332.aspx, accessed April 7, 2021. 8. Seeking Alpha, “Premium Brands Holdings Corporation (PRBZF) CEO George Paleologou on Q4 2020 Results - Earnings Call Transcript,” https://seekingalpha.com/article/4413311-premium-brands-holdings-corporation-prbzf-ceo-george-paleologou-on- q4-2020-results-earnings, accessed April 5, 2021. 9. Core-Mark, “Raymond James 42nd Annual Institutional Investors Conference,” https://ir.core-mark.com/events/event- details/raymond-james-42nd-annual-institutional-investors-conference, accessed April 5, 2021. 10. Performance Food Group, “Performance Food Group Company to Acquire Core-Mark,” https://investors.pfgc.com/press- releases/press-release-details/2021/Performance-Food-Group-Company-to-Acquire-Core-Mark/default.aspx, accessed June 4, 2021. 11. Cision, “Kainos Capital Sells Ferraro Foods To Kelso & Company,” https://www.prnewswire.com/news-releases/kainos-capital- sells-ferraro-foods-to-kelso--company-301262858.html, accessed April 7, 2021. 12. Food Logistics, “Schiff’s Food Service Acquires K. Heeps' Foodservice Distribution Division,” https://www.foodlogistics.com/warehousing/foodservice/news/21307791/schiffs-food-service-inc-schiffs-food-service- acquires-k-heeps-foodservice-distribution-division., accessed April 7, 2021.

Common Goals. Uncommon Results.

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

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218 $12.5B 30% 6th M&A transactions aggregate of our deals globally ranked for completed in 2020 transaction value are cross- deals under $500m border $65.1M 51 65% average deals involving foreign completed with a transaction private equity firms European partner value

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