February 2015
Food for ThoughtOverview, Analysis, and Trends in the Food and Food Retailing Industries
William Blair
Food For Thought Table of Contents
Table of Contents
Selected Monthly M&A Activity – January .......................................................................................................................................................................................... 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 Quarterly Market Update – All Industries........................................................................................................................................................................................ 20 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 Notes .................................................................................................................................................................................................................................................................. 28 Disclosures ...................................................................................................................................................................................................................................................... 29
William Blair
Food For Thought Selected Monthly M&A Activity – January 1
Selected Monthly M&A Activity – January
Food & Beverage Producer Transactions
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM
Announced Target Business Description Nation Buyer Value Sales EBITDA
01/30/15 Invermar Processer and seller of salmon
Chile Alimentos Marinos $175.5 1.51x -
01/30/15 Bakkersland Groep (ZAV Bread Products) Manufacturer of bread
Netherlands Dutch Bakery - - -
01/30/15 Luechinger + Schmid Producer of eggs and related food products
Switzerland Saviva - - -
01/30/15 Choupeaux - Beurre de Baratte Manufacturer of cheese
France Undisclosed Acquirer - - -
01/30/15 Minoya Kichibe Shoten Co. Manufacturer and seller of boiled fish paste
Japan Undisclosed Acquirer - - -
01/29/15 Yellow Limited Producer and packager of honey
Australia Capilano Honey (Australia) - - -
01/29/15 Krave Pure Foods Producer and seller of processed meat products
United States The Hershey Company - - -
01/29/15 Distilleerderij Wenneker (Olifant, Goblet and Dujardin Brands) Producer and marketer of alcoholic beverages
Netherlands La Martiniquaise - - -
01/29/15 Bella Vida Brands Importer and distributor of artisanal food and beverage products
United States Net Savings Link Inc. - - -
01/29/15 La Fraiseraie Producer and seller of ice-cream
France Private Investor (Alain Tetedoie)
- - -
01/29/15 Tibet Highland Natural Water Producer and exporter of bottled drinking water
China Tibet Glacier Mineral Water Co.
$229.6 - -
01/28/15 Naspac Marketing Wholesaler and distributor of food and beverage products
Singapore Kato Sangyo Co. - - -
01/28/15 Distribuidora de Lacteos Algil Producer and distributor of cheese
Mexico Lactalis Group $105.0 - -
01/27/15 PMG Premium Muehlen Gruppe (Diamant and Goldpuder Brands) Manufacturer of flour based products
Germany GoodMills Group - - -
01/27/15 Central Quesera Montesinos Manufacturer or cheese, milk, and related dairy products
Spain Queseria Lafuente - - -
01/27/15 Celigueta Producer of dry fruits and crisps
Spain Sibell - - -
01/27/15 Ishimskiy Vino-Vodochnyi Zavod (19.9%) Manufacturer of alcoholic beverages
Russian Federation
Zapsibkombank - - -
01/26/15 Sakaeya Co. (70%) Manufacturer of confectionery products
Japan Chateraise Holdings - - -
01/26/15 Cascina Cucco Azienda Agricola Producer of wine
Italy La Raia $11.3 - -
01/26/15 MOM Brands Producer and seller of cereal products in the United States
United States Post Holdings $1,151.7 - 7.9x
01/26/15 Molson Coors Brewing (UK) (Shobnall Maltings Business) Producer of malt extract
United Kingdom Soufflet Group - - -
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in January 2015 Sources: Dealogic and Capital IQ
William Blair
Food For Thought 2 Selected Monthly M&A Activity – January
Food & Beverage Producer Transactions (cont.)
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM
Announced Target Business Description Nation Buyer Value Sales EBITDA
01/24/15 Gausepohl Fleisch Producer of meat products
Germany Westfleisch - - -
01/23/15 Elysian Brewing Producer of beer
United States Anheuser-Busch InBev - - -
01/23/15 Industria de Alimentos Nilza (Nilza Brand) Producer and distributor of dairy products
Brazil Goiasminas Industria de Laticinios
- - -
01/22/15 Bodegas Bilbainas (5.9%) Producer and seller of wine
Spain Codorniu Group $53.9 - -
01/22/15 Ruprecht Manufacturer and processer of meat products
United States Hosen Capital - - -
01/21/15 Mcgrif do Brasil Manufacturer and marketer of juice and milk products
Brazil Mercado de Alimentos Mercal
$85.0 - -
01/21/15 Menora Foods Marketer and distributor of food and beverage products
Australia Monde Nissin Corp. $45.2 - -
01/21/15 Optimus Plus Manufacturer of vegetable oils
Ukraine Optimusagro Holding Ltd - - -
01/20/15 Domaines Lapalu Manufacturer of wine
France AdVini - - -
01/20/15 Wicksall Distributors Producer and distributor of wine
United States Great Lakes Wine & Spirits - - -
01/20/15 Especialidades Lacteas (49%) Manufacturer of cheese
Spain Grupo TGT - - -
01/20/15 Docereina - Sobremesas (49%) Provider of eggs and related products
Portugal Postres y Dulces Reina - - -
01/20/15 Azienda Agricola Tenuta Villa Rosa Producer of wine
Italy Private Investor (Cecchi Family)
- - -
01/20/15 Gapzco (42%) Producer of bread and bakery products
Tunisia Supreme Group - - -
01/20/15 LAG Manufacturer of bread
Italy Vandemoortele - - -
01/19/15 McWilliam's Wines Group (3 vineyards) Operator of vineyards
Australia CK Life Sciences International
$12.9 - -
01/19/15 Marine Harvest Chile Supplier and processer of salmon
Chile Empresas AquaChile - - -
01/19/15 Creative Occasions Manufacturer and distributor of cakes
United States Maplehurst Bakeries - - -
01/17/15 SL Mitros Producer and processer of meat
Serbia Gerlinger - - -
01/16/15 Cabomar Congelados (24%) Producer of seafood
Spain Existing Management (Enrique and Eduardo Freire)
- - -
01/15/15 Akcine Bendrove Anyksciu Vynas Producer and seller of alcoholic beverages
Lithuania AB NASDAQ OMX Vilnius $8.0 1.32x 16.1x
01/15/15 Taste Trends Manufacturer of frozen yoghurts
United Kingdom Lakeland Dairies - - -
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in January 2015 Sources: Dealogic and Capital IQ
William Blair
Food For Thought Selected Monthly M&A Activity – January 3
Food & Beverage Producer Transactions (cont.)
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM
Announced Target Business Description Nation Buyer Value Sales EBITDA
01/15/15 Moraitis Supplier of fresh fruits and vegetables
Australia Perfection Fresh Australia - - -
01/15/15 Chojecki Producer of cookies, cakes, and biscuits
Poland Resource Partners; Ardian
- - -
01/15/15 Gersthofer Backbetriebe Manufacturer of bakery products
Germany Serafin - - -
01/15/15 Shearer's Foods Manufacturer and distributor of snack food products
United States Teachers Private Capital - - -
01/14/15 Altinyag Combine Producer of vegetable oils
Turkey Undisclosed Acquirer - - -
01/14/15 XS Energy Producer of sugar free energy drinks
United States Amway Corp. - - -
01/14/15 Vaasan (92%) Manufacturer of bread and bakery products
Finland Lantmannen Unibake - - -
01/14/15 Empresa Pesquera de la Patagonia y Antartida Producer of surimi and frozen fish
Argentina Newsan - - -
01/14/15 Lykkeberg Provider of seafood
Denmark Tenax Sild - - -
01/13/15 Baeckerei Vehreschild Backfrisch Baeckerei Operator of a bakery
Germany Baeckerei - - -
01/13/15 Mauna Loa Macadamia Nut Corporation Processer and marketer of macadamia nut products
United States Hawaiian Host - - -
01/13/15 GlavTorgProduct (5.4%) Supplier of fish, meat and dairy products
Russian Federation
Undisclosed Acquirer - - -
01/12/15 B. Roberts Foods Producer of sauces, entrees, and customized recipes for grocery stores and restaurants
United States Bakkavor Group - - -
01/12/15 J.L. Freeman (Cheese Business) Producer and distributor of cheese
Canada Emmi International - - -
01/12/15 Bioleche Lacteos (90%) Manufacturer of dairy products
Chile Granarolo - - -
01/12/15 Khlebnaya Baza Manufacturer of bread and flour based food products
Russian Federation
LipetskKhlebMakaronProm - - -
01/12/15 Granja La Luz Manufacturer of cheese
Spain Queseria Iberica - - -
01/12/15 Del Monte Capitol Meat Co. Supplier of meat products
United States The Chefs' Warehouse $217.1 - -
01/11/15 Delta Food Industries (20%) Producer of tomato paste and milk powder
United Arab Emirates
Rafi Agri Foods International - - -
01/09/15 Burgerbrau Wolnzach Brewer of beer
Germany Urban Chestnut Brewing - - -
01/08/15 Innova Phoenix Manufacturer of puddings and cake mixes
Poland Bakalland $12.0 - -
01/08/15 Nestlé España (La Cocinera Frozen Meals Business) Manufacturer and distributor of frozen foods
Spain Findus Group - - -
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in January 2015 Sources: Dealogic and Capital IQ
William Blair
Food For Thought 4 Selected Monthly M&A Activity – January
Food & Beverage Producer Transactions (cont.)
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM
Announced Target Business Description Nation Buyer Value Sales EBITDA
01/08/15 Grupe Ren Manufacturer and distributor of frozen foods
Poland Hortex Holding - - -
01/08/15 Karma Tarimsal Uretim ve Ticaret Producer and distributor of frozen agricultural products
Turkey Kerevitas Gida Sanayi ve Ticaret Anonim Sirketi
- - -
01/08/15 Kokken & Konditoren Provider of food products and catering services
Denmark Polaris Private Equity - - -
01/07/15 Kingoma Honpo Co. Processer of sesame seeds
Japan Namisato Corp. - - -
01/07/15 Wilhelm Gruyters (90%) Manufacturer of biscuits
Germany Private Investor (Karl-Heinz Maneke and Peter Rinsch)
- - -
01/07/15 Pacmar Manufacturer and distributor of fruit juice products
South Africa Rhodes Food Group $14.1 0.40x 7.4x
01/07/15 Saratoga Sweets Producer of handmade chocolates
United States The Candy Company of Saratoga Springs
- - -
01/07/15 Kusataro Manufacturer of confectioneries
Japan Undisclosed Acquirer - - -
01/06/15 Fruchtimport vanWylick Wholesaler and distributor of fruits and vegetables
Germany Capespan Continent - - -
01/06/15 Juice & Nectar Partner Company Producer and marketer of citrus fruit juices
Morocco Holmarcom Group - - -
01/06/15 Butcombe Brewery Producer and seller of beer
United Kingdom Liberation Group - - -
01/06/15 Biscuiterie Terre d'Embruns Producer of ready-to-cook specialty sweets and pastries
France Cadavenir - - -
01/05/15 Sun Orchard Inc. Provider of premium juice and beverage products
United States Centre Partners Management
- - -
01/05/15 Long Island Brand Beverages Producer of ready-to-drink teas
United States Cullen Agricultural Holding Corp.
- - -
01/05/15 Columbus Exotics Distributor and importer of fruits and vegetables
Netherlands H. L. Hall and Sons - - -
01/02/15 Pure Water Solutions Inc. Distributor and supplier of ready-to-drink beverages
United States Mar Cor Purification Inc. $11.9 - -
01/01/15 United Package Liquor Producer and seller of alcoholic beverages
United States Big Red Liquors - - -
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in January 2015 Sources: Dealogic and Capital IQ
William Blair
Food For Thought Selected Monthly M&A Activity – January 5
Food & Convenience Retail Transactions
($ in millions) Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM
Announced Target Business Description Nation Buyer Value Sales EBITDA01/28/15 Paradise Foods Operator of a chain of grocery stores United States Nugget Market - - -
01/28/15 Controladora Comercial Mexicana Operator of a chain of supermarkets Mexico Organizacion Soriana $2,676.0 1.38x 16.1x
01/23/15 ADM Londis Operator of a chain of supermarkets and food retailing stores
Ireland BWG Group $25.9 0.12x -01/23/15 Shanghai Mineni Foods (80%) Wholesaler of groceries
China Kokubu & Co. - - -01/14/15 Supermarkets (7 supermarkets ) Supermarkets operator
Netherlands VastNed Retail $46.2 - -01/12/15 Supermarkets (10 Consum supermarkets in Spain) Operator of a chain or supermarkets
Spain Meridia Capital Partners $35.5 - -01/09/15 Marumiyastore Co. Operator of a chain of supermarkets
Japan Marukyu Co. $35.3 0.11x 4.7xNote: Includes global change-of-control (unless otherwise indicated) transactions announced in January 2015Sources: Dealogic and Capital IQ
William Blair
Food For Thought 6 Noteworthy M&A Activity – LTM
Noteworthy M&A Activity – LTM
Food & Beverage Producer Transactions
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM
Announced Target Business Description Nation Buyer Value Sales EBITDA
01/26/15 MOM Brands Producer and seller of cereal products in the United States
United States Post Holdings $1,151.7 - 7.9x
12/31/14 Inner Mongolia Mengniu Dairy Company Manufacturer of dairy products
China China Dairy (Mauritius) Limited
$6,039.2 - -
12/15/14 Archer Daniels Midland Company (Global Cocoa Business) Producer of cocoa
United States Olam International $1,300.0 - -
11/20/14 Primo Smallgoods Producer of packaged meats
Australia JBS $1,255.4 - -
11/06/14 DSS Group Producer and distributor of bottled water
United States Cott Corp. $1,250.0 - -
11/03/14 Centrale Laitiere Producer and seller of packaged milk and dairy products
Morocco Danone $1,677.9 2.10x 17.1x
11/03/14 United Biscuits Manufacturer and distributor of biscuits, snacks, and frozen foods
United Kingdom Yildiz Holding $3,199.2 - -
10/20/14 Hainan Yedao Co. (11.2%) Manufacturer of food and beverage products
China China Orient Capital Investment Group
$679.0 6.19x -
10/06/14 Belvedere (7.3%) Producer and marketer of alcoholic beverages
France Diana Holding - Groupe Zniber
$362.7 0.54x NMF
09/10/14 Windsor Quality Food Company Producer and marketer of frozen foods and appetizers
United States Ajinomoto North America $800.0 1.19x -
09/08/14 Annie's Producer of natural and organic foods
United States General Mills $821.2 3.95x NMF
09/02/14 Archer Daniels Midland Company (Global Chocolate Business) Producer of chocolate
United States Cargill $440.0 - -
08/21/14 Ebro Foods (2%) Manufacturer of pasta, rice, and ready-to-eat food
Spain Empresas Comerciales e Industriales Valencianas
$3,589.8 1.37x 9.5x
08/15/14 Vietnam Dairy Products (2%) Manufacturer of dairy products
Vietnam Fraser & Neave $4,534.6 2.90x 14.1x
08/11/14 Chiquita Brands International Producer and distributor of fruit and other fresh produce
United States Sucocitrico Cutrale; Banco Safra, Investment Arm
$1,193.1 0.39x 13.6x
08/11/14 Treasury Wine Estates Producer and distributor of wine
Australia TPG Capital $3,323.0 2.00x 14.2x
07/14/14 Russell Stover Candies Manufacturer and marketer of sweets and chocolates
United States Chocoladefabriken Lindt & Spruengli
$1,400.0 - -
07/07/14 WILD Flavors Manufacturer of food ingredients and preservatives
Switzerland Archer Daniels Midland Europoort
$3,096.5 2.28x -
06/30/14 CytoSport Manufacturer of nutritional supplements
United States Hormel Foods Corporation $470.0 - -
06/30/14 Flagstone Foods Producer and distributor of dried fruits and nuts
United States Treehouse Foods $860.0 - -
05/29/14 Hillshire Brands Co. Manufacturer of consumer food and beverage products
United States Tyson Foods $8,533.5 2.10x 15.3x
05/22/14 Conopco (North America Pasta Sauces Business) Producer of pasta sauce
United States Mizkan Holdings $2,150.0 3.60x -
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve months Sources: Dealogic and Capital IQ
William Blair
Food For Thought Noteworthy M&A Activity – LTM 7
Food & Beverage Producer Transactions (cont.)
($ in millions)
Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM
Announced Target Business Description Nation Buyer Value Sales EBITDA
05/21/14 Tnuva Food Industries Producer and distributor of dairy and frozen food products
Israel Bright Food (Group) $1,711.2 - -
05/20/14 Treasury Wine Estates Producer and distributor of wine
Australia KKR & Co. $3,188.3 1.90x NMF
05/12/14 Pinnacle Foods Manufacturer of convenience food products
United States Hillshire Brands $6,729.2 2.70x 15.2x
04/27/14 Goodman Fielder Manufacturer and distributor of food ingredients
Australia First Pacific Company $1,698.4 0.84x 8.8x
04/25/14 Deoleo Producer of cooking oils
Spain CVC Capital Partners $1,261.8 1.16x 12.5x
04/17/14 MFI Holding Corporation Processer and distributor of commercial food products
United States Post Holdings $2,499.5 - -
04/15/14 United Spirits Manufacturer and seller of alcoholic beverages
India Diageo $1.895.8 4.88x NMF
04/14/14 DIANA Provider of organic and natural foods
France Symrise $1,796.2 2.88x 14.0x
03/17/14 Hearthside Food Solutions Manufacturer of consumer baked foods and snacks
United States Goldman Sachs Group, Merchant Banking Division; Vestar Capital Partners
$1,100.0 1.10x -
03/14/14 Olam International Supplier of food ingredients such as coffee, cocoa and cashew nuts
Singapore Temasek Holdings; Kewalram Singapore
$11,546.7 0.73x 13.0x
03/10/14 Cloverhill Pastry-Vend Producer of baked goods primarily sold through vending machines
United States Aryzta $673.1 - -
03/03/14 Nuova Castelli Producer and distributor of dairy and canned tuna fish products
Italy Charterhouse Capital Partners
$516.6 1.29x 10.1x
02/28/14 Sokolow Processer of packaged meats such as canned hams, kielbasa and pre-packaged sliced meats
Poland Danish Crown $492.6 - -
02/20/14 Shree Renuka Sugars (26%) Manufacturer of sugar
India Wilmar International $1,331.2 0.79x 11.9x
02/12/14 Canada Bread Co. Manufacturer of flour based products
Canada Grupo Bimbo $1,487.6 1.06x 12.6x
Note: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve months Sources: Dealogic and Capital IQ
William Blair
Food For Thought 8 Noteworthy M&A Activity – LTM
Food & Convenience Retail Transactions
($ in millions) Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM
Announced Target Business Description Nation Buyer Value Sales EBITDA01/28/15 Controladora Comercial Mexicana Operator of a chain of supermarkets Mexico Organizacion Soriana $2,676.0 1.38x 16.1x
12/18/14 The Pantry Operator of convenience stores that sell groceries and other items United States Alimentation Couche-Tard $1,725.4 0.26x 7.8x11/24/14 Dean & DeLuca Operator of retail stores that sell gourmet specialty food and beverage products
United States Pace Development Corporation $140.0 - -11/07/14 Nature's Pantry Operator of a chain of food retail stores
United States Natural Grocers by Vitamin Cottage - - -10/31/14 Maruetsu Operator of a chain of supermarkets Japan Kasumi $685.6 0.23x 7.5x10/03/14 Migros Ticaret Operator of a chain of supermarkets Turkey Anadolu Endüstri Holding $2,705.4 0.79x 13.1x09/30/14 Seijo Ishii Co. Operator of a chain of supermarkets Japan Lawson $501.4 1.01x 9.7x09/16/14 Grocery Outlet Inc. Operator of a chain of grocery stores United States Hellman & Friedman - - -08/11/14 Kinsho Store Co. Operator of a chain of supermarkets Japan Kintetsu Corporation $645.3 1.13x -07/02/14 Grupo El Árbol Distribución y Supermercados Supermarkets operator Spain Distribuidora Internacional de Alimentación $205.9 0.18x - 06/03/14 DIA France Operator of a chain of supermarkets France Carrefour $816.9 - -05/07/14 Roundy's (18 Rainbow Stores) Operator of 18 retail stores United States SuperValu $65.0 - -04/28/14 Susser Holdings Corporation Operator of a chain of convenience stores United States Energy Transfer Partners $2,320.3 0.37x 14.4x04/11/14 SPAR Group Operator of a chain of grocery and retail stores South Africa Allan Gray $2,059.8 0.45x 13.0x04/07/14 Carrefour Operator of a chain of supermarkets France Motier $1786.3 0.36x 12.2x03/11/14 SPAR Ceska Obchodni Spolecnost Operator of a chain of supermarkets
Czech Republic Albert (Ahold) $266.2 0.36x -03/10/14 Eataly Operator of a chain of food retail stores
Italy Tamburi Investment Partners $832.7 - -03/06/14 Safeway Operator of a chain of stores offering a selection of food and general merchandise
United States Albertsons (Cerberus Capital Management) $8,198.9 0.22x 13.5x03/04/14 Wumart Stores Operator of a retail chain of superstores
China Wumei Holdings $559.8 0.20x 4.4x02/13/14 Sobeys (29 stores) Operator of a chain of grocery stores Canada Overwaitea Food Group;Federated Co-operatives $391.0 - -02/11/14 Walmart Chile Operator of a chain of supermarkets Chile Inversiones Australes Tres Limitada $7,575.8 1.36x 15.1xNote: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve monthsSources: Dealogic and Capital IQ
William Blair
Food For Thought Historical M&A Trends in the Food and Food Retailing Industries 9
Historical M&A Trends in the Food and Food Retailing Industries
Volume Trends
U.S. Monthly Announced M&A Activity
2/14 03/14 04/14 05/14 06/14 07/14 08/14 09/14 10/14 11/14 12/14 01/15Food & Beverage Production 15 12 17 16 12 12 13 14 14 11 12 17Food Retail & Convenience 7 3 2 1 1 0 1 1 1 6 6 1U.S. Yearly Announced M&A Activity
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTDFood & Beverage Production 128 101 145 127 106 79 109 127 161 147 161 17Food Retail & Convenience 53 65 87 96 64 48 20 32 24 42 33 1Total Deal Value $13.5 $11.5 $29.1 $33.3 $93.3 $20.5 $39.0 $13.9 $36.0 $43.2 $59.9 $1.4 Global Yearly Announced M&A Activity
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTDFood & Beverage Production 799 870 996 1104 1042 948 969 906 814 768 792 82Food Retail & Convenience 174 179 197 221 269 211 230 177 165 158 140 7Total Deal Value $61.1 $97.8 $94.9 $132.3 $140.5 $72.0 $94.2 $125.4 $127.4 $109.7 $134.2 $4.9 Note: Data represents announced transactions including U.S.-based targets onlySources: Dealogic and Capital IQ as of January 31, 2015
Food & Beverage Production Food Retail & Convenience22 15 19 17 13 12 14 15 15 17 18 18
0102030Number of Deals
Food & Beverage Production Food Retail & Convenience Total Deal Value
181 166 232 223 170 127 129 159 185 189 19418 $0$40$80$120
0100200300Deal ValueNumber
of Deals ($ in billions)
Food & Beverage Production Food Retail & Convenience Total Deal Value
973 1,049 1,193 1,325 1,311 1,159 1,199 1,083 979 926 93289 $0$50$100$150$200
05001,0001,500Deal ValueNumber
of Deals ($ in billions)
William Blair
Food For Thought 10 Historical M&A Trends in the Food and Food Retailing Industries
Participant Trends
Breakdown of Acquirers by Type
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD
Private 46.8% 44.1% 43.4% 51.9% 47.2% 50.0% 52.8% 49.5% 53.2% 56.0% 48.6% 47.2% 45.0%
Public 24.0% 27.7% 28.0% 19.6% 21.6% 20.3% 17.4% 18.1% 15.6% 19.5% 25.8% 21.6% 30.0%
Private Equity 11.0% 9.2% 10.1% 13.8% 17.2% 13.1% 13.0% 13.2% 12.2% 7.2% 13.6% 12.5% 15.0%
Foreign 18.2% 19.0% 18.5% 14.6% 14.0% 16.7% 16.8% 19.1% 19.0% 17.3% 12.0% 18.8% 10.0%
Breakdown of Sellers by Type
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD
Private 30.1% 46.4% 53.1% 50.5% 57.2% 46.3% 53.0% 49.7% 47.1% 53.4% 55.2% 53.4% 65.0%
Public 3.3% 6.4% 5.6% 2.0% 1.7% 3.7% 5.1% 6.1% 4.8% 2.5% 4.9% 7.4% 5.0%
Private Equity 17.1% 7.9% 9.1% 12.4% 8.1% 8.0% 8.5% 14.0% 5.3% 8.1% 7.8% 8.0% 10.0%
Divestiture 49.6% 39.3% 32.2% 35.1% 32.9% 42.0% 33.3% 30.2% 42.8% 36.0% 32.1% 31.3% 20.0%
Note: Data represents announced transactions including U.S.-based targets only Sources: Dealogic and Capital IQ as of January 31, 2015
Private Public Private Equity Foreign
0%
10%
20%
30%
40%
50%
60%Percent of Deals
Private Public Private Equity Divestiture
0%
10%
20%
30%
40%
50%
60%
70%
Percent of Deals
William Blair
Food For Thought Historical M&A Trends in the Food and Food Retailing Industries 11
Valuation Trends
Average EBITDA Multiples for Food Transactions(1)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD
Average EV/EBITDA Multiple 8.4x 9.1x 11.4x 9.9x 12.0x 10.4x 9.3x 8.2x 11.8x 13.2x 13.0x 13.0x 7.9x
Number of Disclosed Deals 25 20 14 28 23 20 14 11 7 17 22 34 1
Average EBITDA Multiples for Beverage Transactions(2)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD
Average EV/EBITDA Multiple 11.8x 14.1x 12.0x 13.5x 13.4x 17.3x 11.7x 10.9x 9.8x 13.6x 14.5x 11.8x 11.7x
Number of Disclosed Deals 9 16 12 15 5 4 9 1 3 6 4 13 2
(1) Excludes Food & Convenience retail transactions (2) Includes alcoholic and nonalcoholic beverages Note: Data represents global transactions announced in the respective sectors Note: Transactions with multiples that are not meaningful are categorized as undisclosed Sources: Dealogic and William Blair as of January 31, 2015
Average EV/EBITDA Multiple Number of Disclosed Deals
8.4x
9.1x
11.4x
9.9x
12.0x
10.4x9.3x
8.2x
11.8x13.2x 13.0x 13.0x
7.9x
0
5
10
15
20
25
30
35
40
0.0x
5.0x
10.0x
15.0x
20.0x
EV/EBITDA Multiple
Average EV/EBITDA Multiple Number of Disclosed Deals
11.8x 14.1x12.0x
13.5x 13.4x
17.3x
11.7x 10.9x9.8x
13.6x14.5x
11.8x 11.7x
0
5
10
15
20
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
EV/EBITDA Multiple
William Blair
Food For Thought 12 Public Company Trading Statistics
Public Company Trading Statistics
Food Production Companies
($ in millions) % Change Forward Enterprise Value/LTM
Company Market Cap MTD YTD P/E PEG Enterprise Value Sales EBITDA
Nestlé $243,970.1 4.1% 4.1% NA NA $267,855.1 2.90x 15.3x Unilever $124,867.8 7.5% 7.5% 18.5x 184.9% $137,591.9 2.35x 14.1x Mondelez International $59,200.5 (3.0%) (3.0%) 17.8x 165.0% $75,410.5 2.20x 15.0x Danone $40,305.4 2.0% 2.0% 16.3x 188.4% $52,381.5 2.05x 13.1x Kraft Foods Group $38,473.8 4.3% 4.3% 18.9x 222.0% $47,557.8 2.61x 20.0x Associated British Foods $36,672.1 (5.1%) (5.1%) 26.7x 275.2% $37,909.0 1.80x 14.8x General Mills $31,684.7 (1.6%) (1.6%) 17.5x 223.2% $42,664.7 2.42x 13.2x Kellogg Company $23,283.1 0.2% 0.2% 15.5x 198.0% $30,631.1 2.10x 16.4x The Hershey Company $22,575.1 (1.7%) (1.7%) 22.6x 265.6% $24,287.6 3.27x 14.6x Tyson Foods $15,863.1 (2.6%) (2.6%) 13.2x 155.2% $23,021.1 0.58x 10.3x ConAgra Foods $15,090.2 (2.3%) (2.3%) 15.4x 230.5% $23,557.1 1.34x 10.1x Campbell Soup Company $14,332.3 4.0% 4.0% 17.9x 298.2% $18,150.3 2.18x 11.8x Hormel Foods Corporation $13,503.5 (1.7%) (1.7%) 22.9x 269.3% $13,425.7 1.42x 12.4x JBS $12,288.8 0.7% 0.7% 11.5x NA $23,451.9 0.51x 6.2x Grupo Bimbo $11,959.9 (7.8%) (7.8%) 21.3x 47.4% $16,312.1 1.19x 10.9x Saputo $11,255.4 (4.5%) (4.5%) 9.2x 91.6% $13,079.2 1.42x 13.7x The J. M. Smucker Company $10,502.4 2.1% 2.1% 16.4x 212.5% $12,817.3 2.34x 11.0x George Weston $10,150.6 (8.4%) (8.4%) 14.5x 145.4% $27,787.4 0.78x 11.0x McCormick & Company $9,172.2 (3.9%) (3.9%) 21.6x 262.0% $10,389.6 2.45x 15.0x Pilgrim's Pride Corporation $7,032.6 (17.2%) (17.2%) 37.7x NA $6,669.5 0.78x 4.9x ARYZTA $6,616.9 (3.1%) (3.1%) 12.8x 43.7% $8,954.0 1.39x 10.1x The Hain Celestial Group $5,366.7 (9.5%) (9.5%) 15.4x 103.7% $6,161.5 2.50x 20.9x Flowers Foods $4,106.2 1.9% 1.9% 16.6x 155.5% $4,914.7 1.31x 11.4x Treehouse Foods $3,839.1 6.0% 6.0% 22.6x 211.9% $5,370.6 1.82x 14.6x Post Holdings $2,473.1 12.8% 12.8% 51.4x 642.8% $6,101.3 1.91x 15.7x Lancaster Colony Corporation $2,459.0 (4.0%) (4.0%) 21.9x 199.5% $2,202.8 2.07x 13.3x Snyder's-Lance $2,044.2 (4.8%) (4.8%) 20.7x 137.7% $2,381.7 1.47x 14.4x Tootsie Roll Industries $1,931.8 1.8% 1.8% NA NA $1,859.6 3.44x 18.3x Fresh Del Monte Produce $1,891.9 0.2% 0.2% 14.0x 280.3% $2,034.3 0.52x 7.7x Sanderson Farms $1,851.2 (4.8%) (4.8%) 8.8x NA $1,705.6 0.60x 3.4x J&J Snack Foods Corp. $1,833.7 (9.8%) (9.8%) 25.7x 286.1% $1,736.1 1.87x 12.1x Dean Foods Company $1,700.1 (6.5%) (6.5%) 17.0x 229.9% $2,647.9 0.28x 13.5x Cal-Maine Foods $1,695.8 (10.2%) (10.2%) 7.3x NA $1,551.3 1.03x 6.6x B&G Foods $1,601.3 (0.2%) (0.2%) 16.6x NA $2,640.7 3.11x 14.9x Lotus Bakeries $937.0 6.2% 6.2% 19.3x 193.3% $1,014.7 2.41x 13.5x Diamond Foods $772.2 (12.9%) (12.9%) 28.8x 261.8% $1,419.9 1.62x 16.6x Calavo Growers $693.7 (15.2%) (15.2%) 24.9x 216.6% $731.0 0.93x 16.6x Boulder Brands $613.2 (9.3%) (9.3%) 17.5x 99.8% $902.8 1.76x 13.2x John B Sanfilippo & Son $405.8 (19.8%) (19.8%) NA NA $472.1 0.57x 8.3x Seneca Foods Corp. $291.6 (4.3%) (4.3%) NA NA $629.2 0.48x 20.5x Inventure Foods $198.7 (20.2%) (20.2%) 14.8x 108.1% $286.9 1.06x 12.7x Bridgford Foods Corp. $68.4 (3.1%) (3.1%) NA NA $69.6 0.52x NMF Golden Enterprises $43.3 4.4% 4.4% NA NA $48.8 0.37x 7.6x Mean (3.2%) (3.2%) 19.2x 206.4% $22,343.9 1.62x 12.9x
Median (3.0%) (3.0%) 17.5x 205.7% $6,161.5 1.62x 13.3x
Note: Data as of January 31, 2015 Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
William Blair
Food For Thought Public Company Trading Statistics 13
Food Ingredients Companies
($ in millions) % Change Forward Enterprise Value/LTM
Company Market Cap MTD YTD P/E PEG Enterprise Value Sales EBITDA
Givaudan $16,757.1 1.1% 1.1% 22.5x 187.5% $17,493.0 3.95x 19.2x
Kerry Group $12,746.6 5.0% 5.0% 17.3x 152.7% $14,290.2 2.05x 16.3x
International Flavors & Fragrances $8,591.9 4.7% 4.7% 19.2x 275.0% $9,135.2 2.96x 13.2x
Symrise $8,517.9 8.1% 8.1% 24.3x 183.5% $10,083.4 4.08x 19.1x
Barry Callebaut $5,452.5 (3.3%) (3.3%) 17.1x 77.9% $7,428.6 1.16x 13.4x
Sensient Technologies Corporation $2,937.6 1.1% 1.1% 18.7x 196.7% $3,372.4 2.33x 12.4x
Frutarom Industries $1,828.4 1.3% 1.3% 20.6x NA $1,997.7 2.47x 14.0x
T. Hasegawa Co. $603.7 2.5% 2.5% 16.0x NA $414.7 1.12x 7.3x
Takasago International Corporation $496.8 10.1% 10.1% 12.3x NA $820.1 0.75x 11.7x
Mean 3.4% 3.4% 18.7x 178.9% $7,226.1 2.32x 14.1x
Median 2.5% 2.5% 18.7x 185.5% $7,428.6 2.33x 13.4x
Beverage Production Companies
($ in millions) % Change Forward Enterprise Value/LTM
Company Market Cap MTD YTD P/E PEG Enterprise Value Sales EBITDA
Anheuser-Busch InBev $196,104.6 7.4% 7.4% 20.5x 163.8% $242,770.6 5.19x 13.5x
The Coca-Cola Company $180,329.3 (2.5%) (2.5%) 18.4x 223.6% $198,648.3 4.32x 15.9x
Pepsico $140,351.7 (0.8%) (0.8%) 19.1x 233.0% $160,166.7 2.40x 12.9x
SABMiller $87,931.4 4.0% 4.0% 19.3x 151.5% $102,704.4 6.05x 17.6x
Diageo $74,217.9 2.7% 2.7% 17.3x 168.1% $92,964.9 5.83x 18.7x
Constellation Brands $21,391.8 12.5% 12.5% 24.5x 183.5% $28,666.5 4.81x 16.4x
Keurig Green Mountain $19,855.9 (7.4%) (7.4%) 32.0x 177.3% $19,289.0 4.10x 16.0x
Monster Beverage Corporation $19,605.3 7.9% 7.9% 39.6x 282.5% $18,608.9 7.75x 25.8x
Brown-Forman Corporation $18,776.7 1.2% 1.2% 24.8x NA $19,663.7 6.44x 19.4x
Dr Pepper Snapple Group $15,022.0 7.8% 7.8% 21.0x 284.7% $17,297.0 2.83x 12.4x
Molson Coors Brewing Company $14,085.5 1.9% 1.9% 17.6x 229.0% $16,844.7 4.06x 21.1x
Coca-Cola Enterprises $10,177.0 (4.8%) (4.8%) 13.0x 145.3% $14,107.0 1.71x 10.1x
The WhiteWave Foods Company $5,748.6 (5.8%) (5.8%) 28.7x 164.0% $7,077.8 2.06x 18.1x
Boston Beer Co. $4,108.8 8.6% 8.6% 43.2x NA $4,052.2 4.49x 22.1x
National Beverage Corp. $1,007.5 (3.9%) (3.9%) NA NA $980.3 1.53x 12.2x
Coca-Cola Bottling Co. $904.3 10.8% 10.8% 26.7x NA $1,457.9 0.86x 11.7x
Cott Corporation $707.9 10.0% 10.0% 16.2x NA $1,275.9 0.61x 9.7x
Farmer Brothers Co. $478.5 1.6% 1.6% 29.6x 147.8% $462.5 0.86x 15.9x
Lifeway Foods $299.1 (1.2%) (1.2%) 35.2x 220.0% $302.5 2.63x NMF
Jones Soda Co. $14.3 (16.7%) (27.1%) NA NA $13.8 1.04x NMF
Mean 2.5% 2.5% 24.8x 198.2% $47,367.7 3.48x 16.1x
Median 1.8% 1.8% 22.8x 180.4% $17,070.9 3.45x 16.0x
Note: Data as of January 31, 2015 Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
William Blair
Food For Thought 14 Public Company Trading Statistics
Food Retail Companies
($ in millions) % Change Forward Enterprise Value/LTM
Company Market Cap MTD YTD P/E PEG Enterprise Value Sales EBITDA
The Kroger Co. $33,925.9 7.5% 7.5% 19.6x 217.3% $45,222.9 0.42x 9.3x
Whole Foods Market $18,754.7 3.3% 3.3% 33.0x 183.9% $18,073.7 1.24x 13.4x
Sprouts Farmers Market $5,508.0 7.2% 7.2% 43.2x NA $5,774.1 2.03x 23.6x
United Natural Foods $3,864.2 (0.1%) (0.1%) 29.0x 189.6% $4,394.1 0.61x 16.0x
SUPERVALU $2,545.0 0.4% 0.4% 14.6x NA $5,359.0 0.31x 7.1x
The Fresh Market $1,846.2 (7.5%) (7.5%) 21.0x 105.8% $1,856.3 1.09x 10.5x
Weis Markets $1,232.7 (4.2%) (4.2%) NA NA $1,138.3 0.41x 7.1x
Smart & Final Stores $1,096.1 (4.6%) (4.6%) 20.5x NA $1,576.3 0.46x 10.4x
SpartanNash Company $965.9 (1.5%) (1.5%) 13.2x 131.8% $1,514.7 0.21x 7.5x
Ingles Markets $864.1 15.0% 15.0% 20.8x 184.1% $1,792.7 0.46x 7.7x
Natural Grocers by Vitamin Cottage $692.6 9.3% 9.3% 47.5x 179.3% $719.1 1.32x 16.5x
Village Super Market $407.2 5.8% 5.8% NA NA $384.7 0.25x 7.1x
Fairway Group Holdings Corp. $198.2 44.8% 44.8% NMF NA $417.5 0.52x NMF
Roundy's $173.4 (25.6%) (25.6%) 9.1x 34.4% $783.6 0.19x 5.5x
Mean 3.6% 3.6% 24.7x 130.8% $6,357.6 0.68x 10.9x
Median 1.9% 1.9% 20.8x 179.3% $1,684.5 0.46x 9.3x
Convenience Store Companies
($ in millions) % Change Forward Enterprise Value/LTM
Company Market Cap MTD YTD P/E PEG Enterprise Value Sales EBITDA
Alimentation Couche-Tard $22,305.2 (6.7%) (6.7%) 26.0x NA $23,970.4 0.63x 14.3x
Casey's General Stores $3,526.6 1.1% 1.1% 22.8x 204.6% $4,308.9 0.57x 11.0x
The Pantry $867.3 (0.4%) (0.4%) 162.0x 1473.2% $1,674.4 0.25x 6.4x
Mean (2.0%) (2.0%) 70.3x 838.9% $9,984.6 0.48x 10.6x
Median (0.4%) (0.4%) 26.0x 838.9% $4,308.9 0.57x 11.0x
Note: Data as of January 31, 2015 Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates
William Blair
Food For Thought Same-Store Growth – Food & Convenience Retail 15
Same-Store Growth – Food & Convenience Retail
Grocery Stores & Supermarkets
Sprouts Farmers Market 9.0%
Smart & Final Stores 6.6%
Natural Grocers by Vitamin Cottage 6.2%
The Kroger Co. (1) 5.6%
Publix Super Markets 5.0%
The Fresh Market 3.3%
Whole Foods Market 3.1%
Weis Markets 2.6%
SUPERVALU 2.3%
Safeway(1) 1.8%
Village Super Market 1.6%
Ingles Markets 0.9%
SpartanNash 0.4%
Fairway Group Holdings (2.2%)
Roundy's (2.7%)
Convenience Stores Casey's General Stores 8.5%
Alimentation Couche-Tard 2.8%
The Pantry 2.5%
(1) Excludes fuel sales Note: Bolded companies reflect recently announced same-store sales data (announced in Jan/Feb 2015) Note: Data represents growth in the most recent reported fiscal quarter over the year-ago period Sources: Company filings and Capital IQ as of January 31, 2015
William Blair
Food For Thought 16 U.S. Public Equity Financing Summary – LTM
U.S. Public Equity Financing Summary – LTM
IPOs
($ in millions)
At Filing At Pricing Pricing & Performance - % Change Offer/
Initial Filing Date
Offer Date Ticker Issuer
Shares/ ADS Exc. Ovl.
Filing Range
Deal Value at Midpoint
Shares/ADS Inc. Ovl.
Offer Price
Deal Value
Market Value
Relative to Range 1 Day 1 Month 3 Months Current
06/20/14 09/23/14 SFS Smart & Final Stores 13.5 $12.00 - $14.00
175.5 15.5 $12.00 $186.0 $852.7 In Range 4.2% 9.2% 29.2% 25.0%
Mean 4.2% 9.2% 29.2% 25.0%
Median 4.2% 9.2% 29.2% 25.0%
Follow-Ons
($ in millions)
Pricing Performance - % Change
% Shares Offered Last Trade Before
Pricing Date Ticker Issuer Business Description
Shares/ ADS Offered (mm)
Offer Price
Deal Value (mm) Primary Secondary
Filing/ Offer
Offer/ Offer
Offer/ Current
01/28/15 POST Post Holdings Manufacturer and marketer of convenience food products
6.5 $47.50 $308.8 100% 0% (12.8%) 2.6% (0.5%)
11/17/14 PF Pinnacle Foods Manufacturer and marketer of convenience food products
20.0 $32.11 $642.2 0% 100% 4.8% 4.8% 12.0%
11/10/14 SFM Sprouts Farmers Market Specialty retailer of natural and organic food
15.0 $29.38 $440.7 0% 100% 7.9% 7.9% 23.9%
09/11/14 SNAK Inventure Foods Manufacturer and marketer of natural snack food products
3.6 $12.85 $46.2 0% 100% (9.7%) (4.6%) (20.9%)
09/08/14 PF Pinnacle Foods Manufacturer and marketer of convenience food products
15.0 $31.90 $478.5 0% 100% 6.0% 6.0% 12.8%
08/12/14 SFM Sprouts Farmers Market Specialty retailer of natural and organic food
15.0 $30.00 $450.0 0% 100% 5.6% 8.5% 21.4%
07/30/14 TSN Tyson Foods Producer and distributor of chicken and related food products
23.8 $37.80 $900.0 100% 0% 5.4% 3.6% 12.3%
07/16/14 THS Treehouse Foods Manufacturer and distributor of food and beverage products
4.3 $75.50 $325.0 100% 0% 4.0% 2.2% 20.1%
05/21/14 POST Post Holdings Manufacturer and marketer of convenience food products
5.5 $47.70 $262.4 100% 0% (1.6%) (2.5%) (0.9%)
03/27/14 SFM Sprouts Farmers Market Specialty retailer of natural and organic food
15.0 $33.75 $506.3 0% 100% 12.5% 4.5% 7.9%
03/12/14 POST Post Holdings Manufacturer and marketer of convenience food products
5.0 $55.00 $275.0 100% 0% 8.1% (0.1%) (14.1%)
02/03/14 RNDY Roundy's Operator of a supermarket chain in the Midwest
8.8 $7.00 $61.9 33% 67% 25.9% 21.1% (48.6%)
Mean 4.7% 4.5% 2.1%
Median 5.5% 4.1% 10.0%
Sources: Dealogic and FactSet Research Systems Note: LTM as of January 31, 2015
William Blair
Food For Thought Selected Upcoming Industry Events 17
Selected Upcoming Industry Events
Date Event Location
February 2015
1-6 NAFDMA Convention Nashville, TN
4-6 Convenience Retailing University Dallas, TX
8-11 N.G.A. 2015 Annual Convention and Supermarket Synergy Showcase Las Vegas, NV
15-18 IFA’s Annual International Franchise Convention Las Vegas, NV
16-19 NCA State of the Industry Conference Miami, FL
21-25 AFFI Frozen Food Convention Anaheim, CA
22-24 AMI Foundation Annual Meat Conference Nashville, TN
22-25 RILA Supply Chain Conference Orlando, FL
24-26 Snack, Beverage & Grocery EPPS Jacksonville, FL
March 2015
2-4 FMI Annual Business Conference Chicago, IL
5-8 Natural Products Expo West Anaheim, CA
9-12 FMI Asset Protection Conference Memphis, TN
15-17 Seafood Expo North America & Seafood Processing North America Boston, MA
22-25 Restaurant Leadership Conference Scottsdale, AZ
22-26 NACS Global Forum Singapore
22-26 AFFI Annual Food and Beverage Environmental Conference Point Clear, Ala
28-1 American Bakers Association Annual Convention Orlando, FL
April 2015
12-15 Grocery Manufacturers Association Science Forum National Harbor, MD
14-16 NACS State of the Industry Summit Chicago, IL
15-16 NGA Day in Washington (NGA, FMI and FIAE) Washington, DC
May 2015
3-6 RILA Asset Protection Conference Orlando, FL
3-6 FMI’s 2015 Financial Executive Conference and Internal Auditing Conference (Co-Located) New Orleans, LA
16-19 NRA Restaurant Hotel Motel Show Chicago, IL
18-20 CSP Leadership and Crisis Prevention Forum Denver, CO
19-20 PLMA’s Annual “World of Private-Label” Amsterdam
19-21 NCA Sweets & Snacks Expo Chicago, IL
31-Jun 2 AFFI Food Logistics Forum Incline Village, NV
31-Jun 4 NGA Leadership Development Program (Cornell) Ithaca, NY
William Blair
Food For Thought 18 Selected Upcoming Industry Events
Date Event Location
June 2015
7-9 International Dairy Deli Bakery Association Annual Convention "Dairy-Deli-Bake" Atlanta, GA
7-11 NGA Leadership Development Program (USC) Los Angeles, CA
7-12 Insight NACS Future of Convenience London, UK
8-11 United Fresh 2015 Chicago, IL
9-11 FMI Connect Chicago, IL
22-24 Foodservice at Retail Expo 2015 Nashville, TN
28-29 TRA Marketplace (formerly Southwest Foodservice Expo) Dallas, TX
28-30 NASFT – Summer International Fancy Food & Confection Show New York, NY
July 2015
20-23 NBJ Summit Dana Point, CA
26-28 The International Foods Planning TBD
27-29 Center Store Grocery, Snack & Beverage Planning TBD
August 2015
22-25 NACDS Total Store Expo Denver, CO
September 2015
1-2 Food Evolution Summit Phoenix, AZ
15-18 RILA Retail Sustainability Conference Austin, TX
16-18 NCA Washington Forum Washington D.C
17-19 All Things Organic - BioFach America Baltimore, MD
17-20 Natural Products Expo East Baltimore, MD
20-22 MUFSO Conference Dallas, TX
20-23 Candy Annual Planning Chandler, AZ
28-29 Canadian Federation of Independent Grocers-Grocery Innovations Toronto, Canada
October 2015
10-13 National Frozen and Refrigerated Foods Convention Dallas, TX
11-14 NACS Show Las Vegas, NV
13-15 Shopper Marketing Expo Minneapolis, MN
15-18 PROCESS EXPO Chicago, IL
18-20 Consumer Goods Forum: Future Leaders Congress Rio De Janeiro, Brazil
23-25 Fresh Summit International Convention & Exposition Atlanta, GA
26-27 IFE Americas Food & Beverage Show Miami, FL
28-29 National Chicken Council - Annual Conference Washington, DC
November 2015
10-11 Kosherfest Secaucus, NJ
14-16 Outlook Leadership 2015 (CSP) TBD
15-17 PLMA's Private Label Trade Show Chicago, IL
December 2015
3-6 SOHO Expo Orlando, FL
January 2016
17-19 Winter Fancy Food Show San Francisco, CA
24-26 Retail Industry Leaders Association – The Leadership Forum Naples, FL
William Blair
Food For Thought General Market Update 19
General Market Update
Percentage Change
As of 1/31/15 Month-to-Date Year-to-Date
Equity Market Indices
Dow Jones Industrial Average $17,164.95 (3.7%)
3.5%
Nasdaq Composite $4,635.24 (2.1%) 11.0% S&P 500 $1,994.99 (3.1%) 7.9% S&P Food Products Index $483.81 (2.3%) 7.6% S&P Food & Staples Retail Index $385.88 0.3% 21.4% S&P Restaurants Index $855.37 1.9% 6.2%
WB Corporate Finance Indices(1)
Food Index $794.16 (6.8%)
9.0%
Ingredients Index $923.16 (4.5%) 20.1% Beverage Index $4,260.05 2.1% 9.7% Food Retail Index $1,012.07 4.1% 25.7%
Convenience Store Index $27,229.55 3.9% 84.0% Currencies
Dollar to Canadian Dollar $1.27 9.5%
19.3%
Dollar to Euro $0.89 7.2% 22.1% Dollar to Peso $14.97 1.6% 14.3% Dollar to Pound $0.67 3.8% 10.3% Commodities(2) Coffee Beans (Cents and 1/100 of a Cent Up to 2 Decimal Places) $1.62 (2.8%)
46.3%
Corn (Cents per Bushel) $3.70 (6.8%) (12.3%) Milk (Cents per 2,000 lbs.) $0.16 1.4% (16.5%) Cocoa (Dollars per Metric Ton) $2,693.00 (7.5%) (0.6%) Oil (Dollars per Barrel) $48.24 (9.4%) (51.0%) Soybean Oil (Cents per Bushel) $0.30 (6.7%) (23.3%) World Sugar (Cents and 1/100 of a Cent up to 2 Decimal Places) $0.15 1.9% (9.9%) Wheat (Cents per Bushel) $5.03 (14.8%) (16.9%)
Yield (%) 52-Week Range
As of 1/31/15
52-Week Low Latest
52-Week High
INTEREST RATES
10-Year Treasury 1.7% 1.7% 2.8% 30-Year Treasury 2.3% 2.3% 3.7% 3-Month LIBOR 0.3% 0.2% 0.3% Fed Funds Effective Rate 0.1% 0.1% 0.1% Prime Rate 3.3% 3.3% 3.3% (1) WB Corporate Finance indices are determined by FactSet Research Systems, as of January 31, 2015. Data is based on a weighted average by market capitalization calculation. (2) Commodities represent futures prices Source: FactSet Research Systems as of January 31, 2015 WB Corporate Finance Food Index includes: ARYZTA, Associated British Foods, B&G Foods, Bridgford Foods, Calavo Growers, Cal-Maine Foods, Campbell Soup, Chiquita Brands International, ConAgra Foods, Danone, Dean Foods, Diamond Foods, Dole Food Company, Flowers Foods, Fresh Del Monte Produce, General Mills, George Weston Limited, Golden Enterprises, Grupo Bimbo, Hormel Foods, Inventure Foods, J&J Snack Foods, JBS, John B Sanfilippo & Son, Kellogg Company, Kraft Foods, Lancaster Colony Corporation, McCormick & Co., Nestlé, Overhill Farms, Pilgrim’s Corp., Post Holdings, Sanderson Farms, Saputo, Seneca Foods, Nestlé, Ralcorp Holdings, Reddy Ice Holdings, Sanderson Farms, Saputo, Sara Lee, Seneca Foods, Smart Balance, Smithfield Foods, Snyder’s-Lance, The Hain Celestial Group, The Hershey Company, The J. M. Smucker Company, Tootsie Roll Industries, Treehouse Foods, Tyson Foods, Unilever WB Corporate Finance Beverage Index includes: Anheuser-Busch InBev, Boston Beer Co., Brown-Forman Corporation, Coca-Cola Bottling Co. Consolidated, Coca-Cola Enterprises, Constellation Brands, Cott Corporation, Diageo, Dr Pepper Snapple Group, Farmer Brothers Co., Green Mountain Coffee Roasters, Jones Soda Co., Lifeway Foods, Molson Coors Brewing Company, Monster Beverage Corporation, National Beverage, PepsiCo, SABMiller, The Coca-Cola Company WB Corporate Finance Ingredients Index includes: Barry Callebaut, Frutarom Industries, Givaudan, International Flavors & Fragrances, Kerry Group, Sensient Technologies Corporation, Symrise, T. Hasegawa Co., Takasago International WB Corporate Finance Food Retail Index includes: Arden Group (Gelson’s), Fairway Group Holdings, Harris Teeter Supermarkets, Ingles Markets, Nash Finch, Roundy’s, Safeway, Smart & Final Stores, Spartan Stores, SUPERVALU, The Fresh Market, The Kroger Co., United Natural Foods, Village Super Market, Vitamin Cottage Natural Food Markets, Weis Markets, Whole Foods Market WB Corporate Finance Convenience Store Index includes: Alimentation Couche-Tard, Casey’s General Stores, Pantry
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
William Blair
Food For Thought 20 Domestic M&A Market Summary
Domestic M&A Market Summary
U.S. Activity Trends
M&A Activity
Number of Deals 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
>$750M 147 233 281 362 460 228 156 287 262 301 310 372
Mid-Cap 4,239 4,527 4,453 4,548 4,537 4,766 4,144 6,224 5,360 5,153 4,258 3,880
Undisclosed 4,406 5,174 5,353 7,510 8,343 6,494 5,075 6,238 7,775 9,189 7,630 8,461
Deal Value $688 $992 $1,297 $1,647 $1,750 $1,075 $886 $1,048 $1,174 $1,080 $1,242 $1,806
Mid-Cap M&A Activity
Number of Deals 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$250M-$750M 314 402 424 536 627 417 269 457 475 463 523 504
$50M-$250M 1,065 1,218 1,265 1,294 1,333 1,195 791 1,138 1,148 1,148 1,094 1,137
<$50M 2,860 2,907 2,764 2,718 2,577 3,154 3,084 4,629 3,737 3,542 2,641 2,239
Deal Value $292 $351 $364 $421 $466 $355 $239 $370 $383 $378 $386 $381
Private-Equity Activity
Number of Deals 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
>$750M 33 61 84 106 149 64 34 94 88 92 93 115
Mid-Cap 626 906 859 998 826 788 742 869 698 688 557 534
Undisclosed 541 679 869 1,143 1,341 969 686 1,013 1,249 1,384 1,238 1,507
Deal Value $120.4 $224.6 $287.6 $523.7 $644.3 $243.7 $149.3 $272.3 $268.6 $262.1 $307.5 $382.5
Note: Year-to-date as of December 31, 2014 Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis. Data represents announced deals only
8,792 9,934 10,087 12,420 13,340 11,4889,375
12,749 13,397 14,643 12,198 12,713
$0$600$1,200$1,800
06,000
12,00018,000
Deal Value($ in billions)
Number of Deals Undisclosed Middle Market >$750M Deal Value
4,239 4,527 4,4534,548 4,537 4,766 4,144 6,224 5,360 5,153 4,258 3,880
$0$200$400$600
0
10,000
Deal Value($ in millions)Number of Deals <$50M $50-250M $250 -750M Deal Value
1,200 1,646 1,8122,247
2,316 1,821 1,462 1,976 2,035 2,164 1,888 2,156
$0
$400
$800
0
5,000
Deal Value($ in billions)
Number of Deals Undisclosed Middle Market >$750M Deal Value
William Blair
Food For Thought Domestic M&A Market Summary 21
U.S. Valuation Trends
Median EV/EBITDA Multiples
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Mid-Cap 7.5x 7.4x 8.7x 10.1x 10.0x 9.5x 7.9x 6.4x 9.3x 10.0x 9.1x 9.9x 10.2x
Overall Market 7.9x 8.0x 9.1x 10.3x 11.0x 11.2x 9.0x 7.4x 9.9x 10.8x 9.6x 10.0x 11.2x
Median EV/EBITDA Mid-Cap Multiples
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
< $50M 4.1x 7.1x 6.4x 7.2x 10.2x 7.8x 4.9x 3.9x 8.8x 9.0x 6.8x 8.1x 7.7x
$50M-$250M 7.5x 6.9x 8.7x 11.3x 9.5x 10.4x 9.1x 7.1x 9.3x 10.0x 9.2x 11.3x 10.1x
$250M-$750M 9.7x 9.2x 9.1x 10.0x 11.0x 9.4x 8.3x 7.9x 9.7x 10.7x 10.2x 12.9x 10.5x
Average Acquisition Premiums
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1-Week Premium 36% 32% 28% 26% 26% 27% 36% 38% 34% 36% 36% 23% 31%
4-Week Premium 38% 40% 32% 31% 31% 29% 37% 41% 38% 39% 39% 30% 34%
Notes: Data limited to a range of 1 to 100 and LTM is as of December 31, 2014 Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis. Data represents announced deals only
3.0x
6.0x
9.0x
12.0x
15.0x
Middle Market Overall Market
0.0x
4.0x
8.0x
12.0x
16.0x< $50M $50M-$250M $250M-$750M
20%
30%
40%
50%
1-Week Premium 4-Week Premium
William Blair
Food For Thought 22 Domestic M&A Market Summary
U.S. Equity Capital Markets Summary
Historical IPO Issuance
Historical Follow-On Issuance
Note: Excludes follow-on offerings for CLEFs, REITs, and SPACs
IPO Pricings by Sector – Last 4 Quarters: 243 Total Deals
Follow-on Pricings by Sector – Last 4 Quarters: 694 Total Deals
Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis
54
139
95 105
175
243
28 3513 19
39 25 20 21 2150 48 56 63 70 54 56
0
50
100
150
200
250
2009 2010 2011 2012 2013 2014 1Q 11 2Q 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
564506
399470
657612
135 12850 86
130 98 115 127 152 139 173 193 198 183120 111
0
100
200
300
400
500
600
700
2009 2010 2011 2012 2013 2014 1Q 11 2Q 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
1116
31
100
26
59 Business Services
Consumer
Financial
Healthcare
Industrial
Technology
60
48
58
162
177
107 Business Services
Consumer
Financial
Healthcare
Industrial
Technology
William Blair
Food For Thought Debt Capital Markets Summary 23
Debt Capital Markets Summary
Average Equity Contribution
Quarterly LBO Debt Multiples – Less Than $50 Million EBITDA
Quarterly LBO Debt Multiples – Greater Than $50 Million EBITDA
Sources: Dealogic and Standard & Poor’s as of December 31, 2014
36%41%
38% 40%35% 34% 32%
40%46% 45%
41% 41%46%
43%
31%
37%
32% 32% 30% 29% 30%
38%
47%
40%37% 37%
33%36%
0%
10%
20%
30%
40%
50%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Less than $50 million EBITDA More than $50 million EBITDA
Total Debt/EBITDA Senior Debt/EBITDA
3.6x3.8x
3.7x
4.0x 4.2x4.2x
4.9x 4.8x
4.4x
3.4x
3.8x 4.4x
5.0x 5.1x
3.0x
3.8x
3.7x
2.2x
4.0x 3.8x4.5x
4.8x
3.3x3.1x
3.7x3.2x
5.0x 5.1x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total Debt/EBITDA Senior Debt/EBITDA
4.1x4.5x 4.4x
4.8x 4.9x5.0x
5.7x
6.8x
4.0x
4.8x
5.3x
4.3x
5.1x
5.5x
3.1x2.6x
2.6x2.9x 2.9x
3.5x
4.4x
6.6x
3.1x
3.9x
5.3x
4.0x
4.9x5.5x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
William Blair
Food For Thought 24 William Blair Food & Beverage and Food Convenience & Retail Investment Banking
William Blair Food & Beverage and Food Convenience & Retail Investment Banking
Food & Beverage Production
Jim Bertram is the global head of the firm’s consumer and retail investment banking group. Before joining William Blair in 2006, he was the co-head of Banc of America Securities’ global consumer products investment banking practice. In this role, he assisted domestic and international consumer products manufacturers and distributors in executing mergers and acquisitions and raising debt and equity capital through both public and private market transactions. Before joining Banc of America Securities, he was responsible for leading Deutsche Bank Alex. Brown’s food-and-beverage investment banking activity. Before working at Deutsche Bank Alex. Brown, he was vice president in the corporate finance department at George K. Baum & Company, an investment and merchant banking firm where he advised clients in executing public equity offerings, mergers and acquisitions, and private debt placements. Mr. Bertram began his career in investment banking at Salomon Brothers.
Mr. Bertram graduated with highest honors from the University of Illinois with a B.S. in finance. [email protected] +1 312 364 5426
Brent Smith is a managing director in the consumer and retail group. Since joining William Blair in 2000, Mr. Smith has also been a member of the firm’s mergers-and-acquisitions practice and currently heads William Blair’s consumer M&A effort. Over this period, he has worked on a range of public and private M&A, primarily in the consumer and industrial sectors, totaling more than $18 billion in aggregate transaction value. Mr. Smith’s financial advisory experience includes sell-side and buy-side transactions, corporate divestitures, take-private transactions, strategic options studies, valuations, fairness opinions, and special committee situations. Mr. Smith is a member of William Blair’s Fairness Opinion Committee. Before joining William Blair, Mr. Smith worked at both Lehman Brothers and Heitman Financial.
Mr. Smith holds an M.B.A. with honors from the University of Chicago and a B.B.A. with high distinction from the University of Michigan.
[email protected] +1 312 364 5392
Adam Filkin joined William Blair in 2007 and is a managing director in the consumer and retail investment banking group. Mr. Filkin has extensive transaction experience across numerous consumer verticals, including food, consumer products, and personal care. He joined William Blair from Banc of America Securities, the investment banking arm of Bank of America. Mr. Filkin spent three years at Banc of America, serving as an associate in the consumer and retail practice. Before joining Banc of America, Mr. Filkin was a manager at A.T. Kearney, focusing on growth strategies and operational improvement studies for consumer and retail companies. He has more than 10 years of experience working with consumer and retail companies.
Mr. Filkin holds an M.B.A. with a concentration in finance from the University of Chicago and holds a B.S.E. in chemical engineering from the University of Michigan.
[email protected] +1 312 364 8077
William Blair
Food For Thought William Blair Food & Beverage and Food Convenience & Retail Investment Banking 25
Food & Convenience Retail
Tim Carroll joined William Blair in 2002 and serves as a managing director in the consumer and retail investment banking group. He joined William Blair from Andersen Corporate Finance LLC, the investment banking arm of Andersen. Mr. Carroll spent four years at Andersen, serving as a national director and managing director/co-head of the products and business services industry team. Before joining Andersen, he was a founder and principal of Wyndam Capital, a broker-dealer serving middle-market companies, and a founder and principal of a $120 million private-equity fund. Mr. Carroll has served on the board of directors for seven privately held businesses and has more than 27 years of investment banking experience, 7 years of commercial banking experience, and 2 years of commercial real estate experience.
Mr. Carroll graduated with a B.S. in business finance from Indiana University.
[email protected] +1 312 364 8532
Michael Siska is a managing director in the consumer and retail investment banking group at William Blair. He originally joined the firm in 2002 and then rejoined in 2006 after attaining his M.B.A. at the University of Chicago. Before joining William Blair, Mr. Siska worked in private equity for Allstate Private Equity in Chicago and 3i Group in London. He also spent five years in the products and business services industry group at Andersen Corporate Finance LLC, the investment banking arm of Andersen. He focuses on specialty retail, food retail, restaurants, and consumer services.
Mr. Siska earned an M.B.A. from the University of Chicago and a B.S., with honors, from the University of Illinois at Urbana-Champaign.
[email protected] +1 312 364 5393
Europe
Alex Matthes is a managing director at William Blair. Before he joined William Blair in 2013, Mr. Matthes worked in Commerzbank’s M&A advisory team with a focus on consumer and retail. Before joining Dresdner Kleinwort in 2006 as vice president, he worked in the M&A department of Lazard as analyst and associate since 2000.
Mr. Matthes studied business administration at the universities of Frankfurt and Cologne and obtained a master’s degree in business administration (Diplom Kaufmann) in 2000.
[email protected] +49 69 509527 612
Beth Pickens is a managing director and head of European consumer banking. She joined William Blair in 2000 and has been located in William Blair’s London office since 2001. Ms. Pickens specializes in advising international consumer growth companies across consumer products, personal care, and consumer services. She is also an angel investor in early-stage consumer companies, including Bonobos.com and DefySupply.com.
Ms. Pickens holds a master’s degree in business administration from the University of Chicago Graduate School of Business and a bachelor’s degree in finance from the University of Illinois at Urbana-Champaign. She also completed studies at the Université de Paris IV-Sorbonne. A Chicago native, she lives in London with her husband and children.
[email protected] +44 20 7868 4479
William Blair
Food For Thought 26 Recent William Blair Consumer & Retail Transactions
Recent William Blair Consumer & Retail Transactions
$223,905,000
Follow-on Offering
February 2015
$120,750,000
Initial Public Offering
January 2015
®
Not Disclosed
has been acquired by
Wasserstein & Co., LP
December 2014
Not Disclosed
has been acquired by One Rock Capital
Partners
December 2014
Not Disclosed
has been acquired by Knowlton Development
Corporation
December 2014
Not Disclosed
has acquiredRobert Bosch Tool
Corporation, Garden & Watering Business
December 2014
Not Disclosed
has been acquired by Frutarom
Industries Ltd.
November 2014
€220,000,000
has been acquired by
Abris Capital Partners
November 2014
$186,300,000
Follow-on Offering
November 2014
$139,840,000
Follow-on Offering
November 2014
$105,000,000
Follow-on Offering
November 2014
$128,000,000
has been acquired by
Post Holdings, Inc.
November 2014
Not Disclosed
Growth Equity Recapitalization
October 2014
Not Disclosed
has been acquired byMonomoy Capital
Partners
October 2014
$108,235,280
Initial Public Offering
October 2014
$85,000,000
Senior Credit Facility
September 2014
$53,117,980
Follow-on Offering
September 2014
Not Disclosed
has a strategic investment from
Standard Chartered Private Equity
August 2014
$156,543,750
Follow-on Offering
August 2014
Not Disclosed
has been acquired byPeet’s Coffee & Tea /
Next World Capital
August 2014
$123,214,290
Initial Public Offering
July 2014
$89,125,000
Follow-on Offering
July 2014
$373,749,990
Follow-on Offering
July 2014
$171,646,263
Follow-on Offering
June 2014
$202,000,000
has been acquired by
Snyder’s Lance
June 2014
CAD$170,000,000
has been acquired by
TreeHouse Foods, Inc.
May 2014
Not Disclosed
has been acquired by
Milner Milling, Inc.
May 2014
$64,166,663
Initial Public Offering
May 2014
$132,050,000
Initial Public Offering
April 2014
$100,624,980
Initial Public Offering
April 2014
$61,300,000
has been acquired byThe Hain
Celestial Group
April 2014
Not Disclosed
has been acquired by
Bregal Partners
March 2014
Not Disclosed
has been acquired by
Greencore Group
February 2014
Not Disclosed
has been acquired byADKM, Inc.
(DBA Harry's)
January 2014
Not Disclosed
has been recapitalized by
TZP Group
December 2013
William Blair
Food For Thought William Blair Consumer & Retail Coverage 27
William Blair Consumer & Retail Coverage
Mark Miller, CFA +1 312 364 8498 Broad Assortment and Hardlines, E-commerce, Health, Beauty, and Convenience
Sharon Zackfia, CFA +1 312 364 5386 Apparel and Accessories, Leisure, Restaurants
Company Ticker Company Ticker Amazon.com AMZN BJ’s Restaurants BJRI Blue Nile NILE Bloomin’ Brands BLMN Cabela’s CAB CarMax KMX Costco Wholesale Corporation COST Carnival Corporation CCL CVS Health Corporation CVS Cheesecake Factory (The) CAKE Dick’s Sporting Goods DKS Chipotle Mexican Grill CMG Fairway Group Holdings FWM Dunkin’ Brands Group DNKN Fresh Market (The) TFM El Pollo Loco Holdings LOCO JD.com JD Harley-Davidson HOG MercadoLibre MELI Life Time Fitness LTM Natural Grocers by Vitamin Cottage NGVC Lululemon Athletica LULU Sportsman’s Warehouse Holdings SPWH Panera Bread Company PNRA Target Corporation TGT Papa Murphy’s Holdings FRSH Tractor Supply Company TSCO Potbelly PBPB Walgreens Boots Alliance WBA Royal Caribbean Cruises RCL Wal-Mart Stores WMT Sonic Corp. SONC Wayfair Inc. W Starbucks Corporation SBUX Whole Foods Market WFM Tilly’s TLYS Zulily ZU Tumi Holdings TUMI Under Armour UA Urban Outfitters URBN Zoe’s Kitchen ZOES Zumiez ZUMZ
Jon Andersen, CFA +1 312 364 8697 Consumer Products
Daniel Hofkin, Analyst +1 312 364 8965 Hardlines, Specialty Retail
AptarGroup ATR Advance Auto Parts AAP Boulder Brands BDBD AutoZone AZO Church & Dwight CHD Bed Bath & Beyond BBBY Colgate-Palmolive Company CL Luxottica Group LUX Scotts Miracle-Gro Company (The) SMG Mattress Firm Holding Corp. MFRM Fox Factory Holding Corp. FOXF O’Reilly Automotive ORLY Inventure Foods SNAK PetSmart PETM J&J Snack Foods JJSF Regis Corporation RGS J.M. Smucker Company (The) SJM Restoration Hardware Holdings RH Jarden Corporation JAH Ross Stores ROST Kellogg Company K Steiner Leisure STNR Keurig Green Mountain GMCR TJX Companies (The) TJX Mead Johnson Nutrition Company MJN Ulta Salon, Cosmetics & Fragrance ULTA Perrigo Company PRGO Williams-Sonoma WSM Prestige Brands Holdings PBH Procter & Gamble Company (The) PG SodaStream International SODA Tempur Sealy International TPX TreeHouse Foods THS
Amy Noblin, Analyst +1 415 248 2874 Apparel and Accessories
Abercrombie & Fitch ANF Nordstrom JWN Coach COH Tiffany & Co. TIF DSW DSW Tumi Holdings TUMI Francesca’s Holdings FRAN Vera Bradley VRA Michael Kors Holdings KORS Vince Holding Corp. VNCE
William Blair
William Blair is a trade name for William Blair & Company, L.L.C. and William Blair International, Limited. William Blair & Company, L.L.C., is a Delaware company and is regulated by the Securities and Exchange Commission, The Financial Industry Regulatory Authority, and other principal exchanges. William Blair International Limited is authorised and regulated by the Financial Conduct Authority ("FCA") in the United Kingdom. William Blair & Company® only offers products and services where it is permitted to do so. Some of these products and services are only offered to persons or institutions situated within the United States and are not offered to persons or institutions outside of the United States.
This material has been approved for distribution in the United Kingdom by William Blair International Limited, Regulated by the Financial Conduct Authority (FCA), and is directed only at, and is only made available to, persons falling within COB 3.5 and 3.6 of the FCA Handbook (being “Eligible Counterparties” and Professional Clients). This Document is not to be distributed or passed on to any “Retail Clients.” No persons other than persons to whom this document is directed should rely on it or its contents or use it as the basis to make an investment decision.
William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com January 7, 2015
Food For Thought Disclosures 29
Disclosures
William Blair’s investment banking group combines signi icant transaction experience, rich industry knowledge, and deep relationships to deliver successful advisory and inancing solutions to our global base of corporate clients. We serve both publicly traded
and privately held companies, executing mergers and acquisitions, growth inancing, inancial restructuring, and general advisory projects. This comprehensive suite of
services allows us to be a long-term partner to our clients as they grow and evolve. From 2010-2014, the investment banking group completed more than 330 merger-and-acquisition transactions worth $73 billion in value, involving parties in 36 countries and ive continents, was an underwriter on more than 20% of all U.S. initial public offerings,
and raised nearly $100 billion in public and private inancing.About William Blair Investment Banking