www.pwc.com Global Agribusiness Deal Activity July 2016 Table of contents Section Overview Page 1 Agribusiness news & multiples 1 2 Food trust 6 3 Markets update 8 4 Our team 13 Agribusiness news & multiples Global Agribusiness • Deal Activity July 2016 PwC 1 Section 1 – Agribusiness news & multiples Dairy Red meat Pork Dairy M&A News US: French dairy giant Danone is to acquire US organic food group WhiteWave in a cash deal worth $12.5bn. Transaction multiples (EV/EBITDA) Trading multiples (EV/EBITDA) Switzerland: Emmi is to acquire the remaining 40% Median: 12.4x 2015A NTM stake in Mittelland Molkerei AG in a cash and stock 30.0x Nestlé S.A. 1 4.9x 1 4.6x deal. 25.0x Unilever PLC 1 8.0x 1 3.6x 20.0x Unilever N.V. 1 5.2x 1 3.2x Australia/South Korea: Taekyung Food & Mondelez International, Inc. 1 7 .5x 1 6.1 x 15.0x Processing has proposed a strategic alliance with Danone 1 3.5x 1 2.4x 10.0x Fonterra Co-Operative Group Ltd. 1 0.6x n.a. Beston Global Food to distribute its food products into General Mills, Inc. 1 4.7 x 1 4.3x 5.0x the Korean market. Mead Johnson Nutrition Company 1 6.1 x 1 6.2x 0.0x Dean Foods Company 6.1 x 5.4x Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Pakistan: Royal FrieslandCapina is to acquire a 51% Want Want China Holdings Ltd. 8.4x 8.3x stake in Engro Foods, Pakistan’s second largest dairy Bidder/Target 1: Pershing Square Capital/Mondelez, 2: Groupe Lactalis/Lactalis Puleva, Median 14.8x 13.6x 3: Pepsi-Cola/Wimm-Bill-Dann Food, 4: Bank Hapoalim/Parmalat, 5: Société pour le Average 13.5x 12.7x company. Financement de l'Industrie Laitière/Parmalat, 6: Suntory/Cerebos Pacific, 7: Savola Group/Almarai , 8: Trian Fund Management/ Danone, 9: Saputo Cheese Morningstar Foods, 10: Prominent Achiever / China Mengniu Dairy Co., 11: China Mengniu Dairy Management News Co./Yashili International, 12: FB Participações/Vigor Alimentos, 13: Qurain Petrochemical Industries/Saudia Dairy & Foodstuff, 14: First Pacific & Wilmar No relevant news. International /Goodman Fielder, 15: Qurain Petrochemical Industries/Saudia Dairy & Foodstuff.16: Qurain Petrochemical Industries/Saudia Dairy & Foodstuff.17: First Pacific Company / Goofman Fielder Ltd. 18: Warrnambool Cheese and Butter / Lion Dairy & Drinks, Everyday cheese business, 19: Management / China Huishan Dairy, 20: Centre Laboratories / Ausnutria Dairy. Red meat M&A News China: Tsing Capital is to establish a new US$1bn Food and Agritech fund to invest in Australian food Transaction multiples (EV/EBITDA) Trading multiples (EV/EBITDA) production facilities. Median: 9.5x 2015A NTM 25.0x Associated British Foods plc 1 6.0x 1 4.6x Australia: Hancock Prospecting has acquired two The Kraft Heinz Company 27 .5x 1 6.3x 20.0x BRF S.A. 1 0.0x 9.9x cattle stations in the Northern Territory totalling 1 0.3x 9.6x 15.0x Ty son Foods, Inc. 550,000ha, adding to its growing agriculture portfolio. Henan Shuanghui Investment & 1 2.9x 1 1 .2x 10.0x Kerry Group plc 1 8.1 x 1 6.4x Management News Hormel Foods Corporation 1 4.8x 1 3.3x 5.0x JBS S.A. 6.4x 5.7 x Uni-President Enterprises Corporation 1 2.0x 1 0.9x Australia: The Australian Livestock Exporters’ 0.0x Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Universal Robina Corporation 20.2x 1 7 .7 x Council (ALEC) has appointed Simon Westaway to 13.8x 12.2x Bidder/Target 1: West Face Capital/Maple Leaf Foods, 2: Boparan Holdings/Northern Median CEO. Foods, 3: NA/Astarta Holding, 4: Leucadia/National Beef Packing, 5: TMK Holding/ Average 14.8x 12.6x National Beef Packing, 6: NA/Zhongpin, 7: Henan Shineway/Smithfield Foods, 8: Darling Ingredients/VION Ingredients, 9: NA/People's Food Holdings, 10: Sigma Alimentos/Campofrio Food Group, 11: L Sigma Alimentos/Campofrio Food Group, 12: JBS S.A , 13: Condorcet Opportunity / Campofrio Food Group, 14: Tyson Foods / The Hillshire Brands, 15: Nutresa / Aldage. 16: ITOCHU Corporation / C. P. Pokphand Co. 17: H. J Heinz Holding Corp / Kraft Foods Group, 18. Bright Foods / Silver Fern Pork Farms. Transaction multiples (EV/EBITDA) Trading multiples (EV/EBITDA) M&A News Median: 7.5x 2015A NTM China: Aoxin Tianli is to acquire a majority stake in 25.0x Ty son Foods, Inc. 1 0.3x 9.6x Guangdong Wen's Foodstuffs Group 20.8x 1 2.6x Hainan Chengmai Zaohuaxiang Hog Industry in a cash 20.0x and stock deal. WH Group Limited 7 .9x 7 .0x 15.0x BRF S.A. 1 0.0x 9.9x Seaboard Corp. 1 3.0x n.a. Management News 10.0x Maple Leaf Foods Inc. 21 .5x 1 0.1 x Public Joint Stock Company 5.6x 6.5x 5.0x No relevant news. Shandong Longda Meat Foodstuff Co., 38.5x n.a. 0.0x Muy uan Foods Co., Ltd. 34.3x 1 0.4x Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Marudai Food Co., Ltd. 7 .2x n.a. Bidder/Target 1:Talleys Group/ AFFCO Holdings, 2: Premium Brings Holdings / Piller Median 11.7x 9.9x Sausages & Delicatessens, 3: Harim Holdings/ Sunjin Holdings Co. 4: LBO / Zhongpin Average 16.9x 9.4x Sources: S&P Capital IQ, Factiva, PwC research Inc. 5: Mitsubishi Corp / Yonekyu Corp. 6: Henan Shineway Industry Group / Smithfield Foods Inc. 7: LBO / People’s Food Holdings Ltd. 8: Sigma Alimentos / Global Agribusiness • Deal Activity Campofrio Food Group, SA. 9: JBS Australia Pty / P&M Smallgoods Pty. 10: Swift Pork July 2016 (JBS) / Cargill Pork. 11: Cedrob SA / Polski Koncern, 12: JBS S.A. / Moy Park Ltd., 13: PwC Itoham Foods / Yonekyo Corp. 2 Section 1 – Agribusiness news & multiples Poultry Forestry Fruit, vegetables & nuts Poultry Transaction multiples (EV/EBITDA) Trading multiples (EV/EBITDA) M&A News Median: 7.9x 2015A NTM 20.0x Ty son Foods, Inc. 1 0.3x 9.6x Germany: Sprehe Gruppe acquired turkey producer JBS S.A. 6.4x 5.7 x 15.0x Hormel Foods Corporation 1 4.8x 1 3.3x Bernard Matthews Oldenburg. BRF S.A. 1 0.0x 9.9x 10.0x Pilgrim's Pride Corporation 5.8x 6.8x Russia: Rusgrain Holding has acquired poultry farm Fujian Sunner Development Co., Ltd. 1 53.8x n.a. 5.3x 5.6x Singyavinskaya, Russia’s largest producer of 5.0x MHP S.A. Industrias Bachoco S.A.B. de C.V. 4.3x 6.3x commercial eggs. Sanderson Farms, Inc. 5.4x 4.0x 0.0x Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 L.D.C. S.A. 5.0x 4.7 x Management News Bidder/Target 1: Old Mutual Investment Group / Sovereign Food Investment , 2: West Median 6.1x 6.3x Face Capital / Maple Leaf Foods, 3: EASY BIO & FarmStory / Maniker Co., 4: Cherrybro Average 22.1x 7.3x No relevant news. Co ., 5: Sadia Alimentos / Avex S.A., 6: PT Japfa Comfeed / PT Multibreeder Adirama, 7: The Chefs' Warehouse Mid-Atlantic / Michael's Finer Meats & Seafoods, 8: Savola Group / Almarai, 9: Mitsubishi / Yonekyu, 10: Bellisio Foods / Overhill Farms. 11: QL Resources Berhad / Lay Hong Berhad, 12: Hassad Food / A’Saffa Foods, 13: JBS S.A. / Moy Park, 14: Charoen Pokphand Foods / CJSC Poultry, 15: Yonekyu Corp / Itoham Foods, 16: Cranswick plc / Crown Chicken, 17: KKR & Co / PT Japfa Comfeed. Forestry Transaction multiples (EV/EBITDA) Trading multiples (EV/EBITDA) Median: 6.8x M&A News 25.0x 2015A NTM West Fraser Timber Co. Ltd. 9.4x 6.2x No relevant news. 20.0x Canfor Corp. 7 .4x 5.3x Duratex SA 1 1 .7 x 9.7 x 15.0x Deltic Timber Corporation 35.2x n.a. 6.3x n.a. 10.0x Sonae Indústria, S.G.P.S., S.A. Management News Stella-Jones Inc. 1 5.9x 1 2.5x 5.0x Interfor Corporation 1 6.9x 6.9x Boise Cascade Company 9.2x 7 .6x No relevant news. 0.0x Norbord, Inc. 25.6x 6.8x Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Suzano Papel e Celulose S.A. 4.5x 5.0x Bidder/Target 1: Placas do Parana /Arauco do Brasil, 2: FV S.A./Fiplasto S.A., 3: Median 10.6x 6.9x Meerwind/Rörvik Timber, 4: BC Investment management / Timber West Forest Corp, Average 14.2x 7.5x 5: LIXIL Group/Hivic Co., 6: Viking Investments Group/China Wood, 7: Viking Investments Group/China Wood, 8: Brookfield Asset Management / Western Forest Products, 9: Samling Strategic / Samling Global, 10: Samling Global / Lingui Developments, 11: Mill Road Capital / PRT Growing Service, 12: Rentech /Fulghum Fibres, 13: Weyerhaeuser / Longview Timber, 14: Boise Cascade Wood Products / Chester Wood & Moncure Plywood, 15: Louisiana-Pacific / Ainsworth Lumber, 16: Interfor / Tolleson Lumber, 17: Rentech / New England Wood. 18: Keshav Kantamneni / Uniply Industries, 19: Management / TFS Corporation, 20: Private Investors / Hong Wei Holdings. Fruit, vegetables & nuts Trading multiples (EV/EBITDA) M&A News Transaction multiples (EV/EBITDA) 2015A NTM Median: 11.9x Felda Global Ventures Holdings Berhad 1 9.6x 1 5.5x New Zealand: China’s Golden Wing Mau has 35 Fresh Del Monte Produce Inc. 1 4.1 x 1 0.1 x 30 acquired a 20% stake in T&G Global for US$28m. Gansu Yasheng Industrial (Group) Co., 32.2x n.a. 25 Hortifrut S.A. 1 6.8x n.a. UK: Florette acquired beetroot specialist Axgro Foods. 20 United Plantations Bhd 1 2.2x n.a. 15 Costa Group Holdings Limited 26.5x 1 1 .7 x Hokuto Corporation 8.7 x n.a.