June 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 – May .................................................................................................................................................................................................. 1 Noteworthy M&A Activity – LTM ............................................................................................................................................................................................................ 6 Historical M&A Trends in the Food and Food Retailing Industries ....................................................................................................................................... 9 Volume Trends ............................................................................................................................................................................................................................................ 9 Participant Trends.................................................................................................................................................................................................................................. 10 Valuation Trends ..................................................................................................................................................................................................................................... 11 Public Company Trading Statistics ...................................................................................................................................................................................................... 12 Food Production Companies ............................................................................................................................................................................................................. 12 Food Ingredients Companies ............................................................................................................................................................................................................ 13 Beverage Production Companies .................................................................................................................................................................................................... 13 Food Retail Companies......................................................................................................................................................................................................................... 14 Convenience Store Companies ......................................................................................................................................................................................................... 14 Same-Store Growth – Food & Convenience Retail ....................................................................................................................................................................... 15 U.S. Public Equity Financing Summary – LTM ............................................................................................................................................................................... 16 IPOs ................................................................................................................................................................................................................................................................ 16 Follow-Ons ................................................................................................................................................................................................................................................. 16 Selected Upcoming Industry Events ................................................................................................................................................................................................... 17 General Market Update ............................................................................................................................................................................................................................. 19 Domestic M&A Market Summary ......................................................................................................................................................................................................... 20 U.S. Activity Trends ................................................................................................................................................................................................................................ 20 U.S. Valuation Trends ............................................................................................................................................................................................................................ 21 U.S. Equity Capital Markets Summary ............................................................................................................................................................................................... 22 Debt Capital Markets Summary ............................................................................................................................................................................................................ 23 William Blair Food & Beverage and Food Convenience & Retail Investment Banking .............................................................................................. 24 Recent William Blair Consumer & Retail Transactions ............................................................................................................................................................. 26 William Blair Consumer & Retail Coverage .................................................................................................................................................................................... 27 Disclosures ...................................................................................................................................................................................................................................................... 28 Food For Thought Table of Contents William Blair Selected Monthly M&A Activity – May Food & Beverage Producer Transactions ($ in millions) Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA 05/29/15 Safilait Morocco Fromageries Bel - - - Producer of dairy products 05/29/15 Mervin Co. South Korea Weinheim Co. - - - Distributor of wine and champagne 05/28/15 TiM (5.2%) Poland ALTUS Towarzystwo $55.2 0.38x - Importer of wine Funduszy Inwestycyjnych 05/28/15 KR Food Service Corp. Japan Create Restaurants Holdings $121.6 0.75x - Manufacturer of frozen food 05/27/15 Tonghua Grape Wine Co. China Private Investor $8.9 0.28x 10.5x Producer and seller of wine 05/27/15 Health & Passion Sweden Cefour Wine & Beverage - - - Producer and marketer of frozen yoghurt and ice-cream Partihandel 05/27/15 Wycam's Produkten Belgium Confiserie Thijs - - - Manufacturer and seller of hard boiled sweets 05/26/15 Bodegas Veiga Naum (51%) Spain Bodegas Riojanas - - - Provider and distributor of wines 05/26/15 Applegate Farms United States Hormel Foods Corporation $775.0 - - Producer of natural and organic meat products 05/26/15 Sun Valley Farms Marketing Inc. United States Houweling's Nurseries - - - Producer of tomatoes 05/26/15 Bivi LLC (51%) United States Iconic Brands - - - Provider and distributor of Sicilian vodka 05/26/15 Chengdu West Agricultural Products Wholesale China National Agricultural - - - Market Holdings Distributor of fruits and vegetables 05/26/15 Sovereign Food Investments (10.1%) South Africa Sanlam Investment $54.4 0.39x - Producer of poultry products Management 05/26/15 Selet Hulling (41%) Ethiopia SunOpta - - - Supplier of sesame seeds 05/25/15 Corporacion Agricola (Flour Mill) Nicaragua Corporacion Multi- - - - Producer of flour Inversiones 05/25/15 Wuxi Meitong Food Technology Co. China Fu Ji Food and Catering $25.5 - - Processor of food and beverage products Services 05/25/15 Japan Beverage Holdings Japan Suntory Holdings $1,234.2 - - Provider of soft-drinks 05/21/15 DOC Kaas Netherlands DMK Deutsches Milchkontor - - - Producer of cheese 05/21/15 Reiva Global Corporation Canada Genius Properties - - - Producer of natural and healthy food products and beverages 05/21/15 Long An Food Processing Vietnam Pan Pacific Corporation $12.4 0.40x - Processor of food and beverage products Note: Includes global change-of-control (unless otherwise indicated) transactions announced in May 2015 Sources: Dealogic and Capital IQ Food For Thought Selected Monthly M&A Activity – May 1 William Blair Food & Beverage Producer Transactions (cont.) ($ in millions) Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM Announced Target Business Description Nation Buyer Value Sales EBITDA 05/21/15 Moravan Czech Republic Unicapital - - - Producer of milk 05/20/15 Augsburger Gebrüder Switzerland Moulins de Sion - - - Producer of flour 05/20/15 Industrias Reunidas Jabugo Spain Vall Companys - - - Distributor of meat products 05/19/15 Vedernikov Winery (51%) Russian Active-Media - - - Manufacturer of wine