Food & Beverage Industry Update 9/21/2010 Member FINRA/SIPC www.harriswilliams.com Food & Beverage IndustryFood & BeverageUpdate Food & Beverage Industry6/8/2009 Update Industry Update 6/8/2009 9/21/2010 Stock Price % Change EV/EBITDA % Change Current Valuation Stats Net Debt / Key Trading Industry Segment 3 Month 1 Year 3 Month 1 Year Fwd PE LTM PE EV/EBITDA EBITDA 1 Statistics Food and Beverage Branded Processed Foods 1.5% 21.1% (1.9%) (2.8%) 14.8x 15.8x 9.2x 1.8x Private Label Foods 0.9% 7.7% 1.4% 15.5% 15.2x 16.9x 8.4x 1.9x Baked Goods / Snack Foods 2.5% 20.6% (1.7%) (12.6%) 15.2x 15.5x 6.7x 1.9x Natural / Organic Foods 11.1% 47.3% (4.9%) (15.4%) 18.3x 25.6x 10.8x 1.9x Dairy 2.6% 12.1% 5.1% (1.5%) 12.9x 14.4x 10.0x 1.7x Non-Alcholic Beverages 6.7% 41.2% 8.8% 6.1% 16.7x 19.6x 10.1x 1.4x Alcoholic Beverages 1.5% 14.3% 3.6% 1.9% 18.1x 20.5x 11.0x 2.7x Inputs Protein Processing (7.4%) 28.2% (22.0%) (26.4%) 8.4x 10.8x 5.9x 5.2x Fruit and Vegetable 3.7% (8.4%) 10.0% 1.4% 9.5x 10.5x 6.9x 1.9x Ingredients / Flavors 10.7% 35.6% 2.6% 9.8% 13.9x 18.2x 9.8x 1.9x Agribusiness 16.2% 13.6% 6.0% 15.9% 12.9x 18.1x 9.7x 1.5x Consumer Food Retail 4.8% 8.1% 0.7% 1.6% 13.6x 14.0x 6.0x 1.8x Foodservice / Distribution 6.9% 20.1% 7.3% 14.2% 13.2x 14.4x 6.7x 1.6x Fast Food 8.5% 30.3% 4.6% 12.3% 16.1x 15.8x 8.7x 1.5x Casual Dining 5.4% 32.4% 3.2% 12.1% 19.3x 24.8x 8.0x 0.9x Overall Median* 4.8% 16.1% 1.7% 2.5% 14.8x 16.8x 8.5x 1.8x *Fast Food and Casual Dining excluded from overall median calculation. Announced Last 10 Deals Announced Quarterly M&A Activity 80 Food and Announced Target Buyer 1/0/1900 0 0 Beverage 9/14/2010 California Creative Foods, Inc. Sabra Dipping Co. LLC 70 1 9/14/2010 Van Houtte Inc. Green Mountain Coffee M&A 11 11 9/13/2010 S.T. Specialty Foods, Inc. Treehouse Foods, Inc. 60 5 12 __ 9/9/2010 Butterball, LLC Seaboard Corp. 9 15 9/6/2010 Sartori Inspirations Sartori Food Corporation 50 8 7 6 3 5 9/6/2010 Don Miguel Mexican Foods, Inc. MegaMex Foods, LLC. 2 9/2/2010 Burger King Holdings Inc. 3G Capital 40 7 5 2 8/30/2010 Keystone Bakery Holdings Maplehurst Bakeries LLC 4 5 8/30/2010 LRI Holdings, Inc. Kelso & Company 30 58 58 57 8/20/2010 Cypress Grove Chevre, Inc. Emmi Inc. 55 5 49 48 46 47 47 47 3 46 Number of Transactions ofNumber 43 20 LTM Deal Statistics 35 36 34 36 34 Aggregate Number Transaction Multiples 25 Value ($bn) of Deals EV / Revenue EV / EBITDA 10 22 $102.9 176 1.09x 9.4x Note: Transaction statistics based on publically available information. 0 Q106Q206Q306Q406Q107Q207Q307Q407Q108Q208Q308Q408Q109Q209Q309Q409Q110Q210Q310 PEG Acquirer Strategic Acquirer Contacts Boston Cleveland London Minneapolis Philadelphia Richmond San Francisco Phone: (617) 482-7501 Phone: (216) 222-9870 Phone: +44 203 170 8838 Phone: (612) 359-2700 Phone: (267) 675-5900 Phone: (804) 648-0072 Phone: (415) 288-4260 Fax: (617) 482-7503 Fax: (216) 222-0158 Fax: +44 207 681 1907 Fax: (612) 359-2701 Fax: (267) 675-5901 Fax: (804) 648-0073 Fax: (415) 288-4269 Contacts For more information regarding our food and beverage experience, please contact Glenn Gurtcheff at (612) 359-2702 or [email protected]. 2 of 13 Food & Beverage IndustryFood & BeverageUpdate Industry Update Food & Beverage 6/8/2009 Industry Update 6/8/2009 9/21/2010 Industry . Seaboard Corporation (NYSE Amex: SEB) announced the purchase of a majority stake in Butterball, News LLC with Maxwell Farms, LLC from Smithfield Foods, Inc. for $177.5 million. Link . Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) announced it has executed a Share Purchase Agreement to acquire LJVH Holdings, Inc. (Van Houtte), a gourmet coffee brand, from an . Campbell Soupaffiliate Co. attemptsof Littlejohn to &reassure Co. for $890investors million. following Link a difficult third quarter that saw increasing ingredients prices and a 10% decline in revenues. Link . TreeHouse Foods, Inc. announced a definitive agreement to acquire S.T. Specialty Foods, a . Ball Park Franksmanufacturer manufacturer of privateSara Lee label, is suingdry shelf Kraft-stable Foods dinners (Oscar and Mayer) side dishes over fromits claims Windjammer in recent Capital ads that the tasteInvestors of Oscar for Mayer approximately hot dogs $180 trumps million. that ofLink Ball Park’s entire line. Link . The UK’s Food Standards Agency announces plans to lower salt consumption targets, reducing the . TSG Consumer Partners, LLC announced that it has entered into a definitive agreement to sell Don targeted consumptionMiguel ofMexican salt by Foods30%. LinkCorp. , a provider of branded, frozen and fresh Mexican food to MegaMex Foods, LLC. Link . Hormel’s Grocery Products Division’s Q2 revenues grow 4% on sales volume increases of 2%. Link . Pilgrim’s Pride sells Farmerville, LA chicken complex to Foster Farms for an estimated $72 million. Link . Flowers Foods has reported a first quarter 2009 net income of $37.4 million, an increase of 4.5% compared to the same period in 2008. Link Industry News Transaction Gross Proceeds Recent Equity Close Date Filing Date Issuer Ticker Type ($mm) Use of Funds 2 Offerings 08/11/10 08/04/10 Cott Corp COTT Follow-On $74.7 Acquisition Fin. 06/24/10 12/11/09 Synutra International Inc SYUT Follow-On $62.7 General Corp. Purp. 03/31/10 10/09/08 Sanderson Farms Inc SAFM Follow-On $106.0 General Corp. Purp. 03/31/10 03/18/10 Rogers Sugar Income Fund RSI.UN Convertible $49.3 General Corp. Purp. Reduce Indebtedness 03/04/10 09/30/09 Diamond Foods Inc DMND Follow-On $191.5 Acquisition Fin. 02/23/10 02/16/10 Treehouse Foods Inc THS Follow-On $116.2 Acquisition Fin. 02/09/10 11/19/09 Celsius Holdings Inc CSUH Follow-On $14.5 General Corp. Purp. 11/18/09 03/03/08 Central European Distn Corp CEDC Follow-On $317.8 General Corp. Purp. Reduce Indebtedness 10/22/09 08/14/09 Dole Food Co, Inc DOLE IPO $446.4 GeneralInvestment Corp. / Loan Purp. 09/14/09 07/02/09 B&G Foods, Inc BGF Follow-On $92.0 General Corp. Purp. Pay Fees and Expenses 08/12/09 8/10/2009 Bunge Ltd BG Follow-On $687.8 General Corp. Purp. 08/06/09 08/03/09 Green Mtn Coffee Roasters, Inc GMCR Follow-On $386.7 General Corp. Purp. 08/04/09 08/04/09 Cott Corp COTT Follow-On $50.0 General Corp. Purp. 3 of 13 Food & Beverage Industry Update 9/21/2010 Food and Quarterly Loan Volume Average Spread on Food and Beverage Loans Beverage Loan $12 L + 500 3 ___ Activity $10 __ L + 400 $8 L + 300 $6 L + 200 $4 $2 L + 100 Average Spread Over LIBOR Over Spread Average Loan VolumeLoan byQuarter ($ inbillions) $0 L + 0 2Q04 4Q04 2Q05 4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 2004 2005 2006 2007 2008 2009 1H10 Pro Rata Institutional Revolving Credit / Term Loan A Weighted-Average Institutional Credit Statistics Average Secondary Spreads 6.0x L + 1000 2004 2005 2006 2007 2008 2009 1H10 __ L + 800 __ 4.0x L + 600 L + 400 2.0x EBITDA Multiple EBITDA L + 200 Average Spread Over Over LIBOR Spread Average 0.0x L + 0 Debt/EBITDA Senior EBITDA/Cash EBITDA - Debt/EBITDA Interest Capex/Cash Interest Recent Debt Date Effective Borrower Name Description Deal Amount Type Rating Spread Offerings4 08/26/10 International CCE Inc Bottled and canned soft drinks $1,000,000,000 Revolver/Line >= 1 Yr. BBB / A3 175 08/25/10 Campbell Soup Canned specialties US$ 875,000,000 Other Loan A / A2 N/A 08/25/10 Campbell Soup Canned specialties US$ 875,000,000 Other Loan A / A2 N/A 08/23/10 Uni-President Holdings Food preparations 60,000,000 Term Loan NR / NR N/A 08/17/10 Cott Corp Bottled and canned soft drinks 275,000,000 Revolver/Line >= 1 Yr. Bis / Caa1 275 08/13/10 Country Pure Foods Food preparations 10,000,000 Revolver/Line >= 1 Yr. NR / NR 475 08/13/10 Country Pure Foods Food preparations 42,000,000 Term Loan A NR / NR 475 08/11/10 Pinnacle Foods Food preparations 442,300,000 Term Loan D CCC+ / B3 425 08/09/10 United Distributors Wine and distilled beverages 115,000,000 Revolver/Line >= 1 Yr. NR / NR N/A 07/14/10 World's Finest Chocolates Chocolate and cocoa products 50,000,000 Revolver/Line >= 1 Yr. NR / NR 275 07/13/10 Corn Products Inc Wet corn milling 750,000,000 Revolver/Line >= 1 Yr. BBB / Baa2 225 07/10/10 Coca-Cola Enterprises Bottled and canned soft drinks 2,500,000,000 Revolver/Line >= 1 Yr. A / A3 31 07/10/10 Coca-Cola Enterprises Bottled and canned soft drinks 2,500,000,000 Revolver/Line >= 1 Yr. A / A3 31 07/06/10 Hain Celestial Group Food preparations 400,000,000 Revolver/Line >= 1 Yr.