What We're Seeing

Market Update

The food & beverage M&A market remains active through April. Though Q1 deal volume was down versus Q1 of last year, dollar volume is on pace to surpass that of 2016 and 2017. Large deals, such as the Dr. Pepper-Keurig merger, are driving this trend. Other notable recent deals include The J. M. Smucker Co.’s acquisition of Ainsworth Pet Nutrition, a portfolio company of Catterton Management Co., for $1.9 billion and Marfrig’s announced acquisition of U.S. beef processor National Beef Packing Company LLC for $0.9 billion.

What We've Been Doing

HW&CO. Advises On The Sale Of California Splendor

Overview

On March 30, 2018, Main Street Capital acquired California Splendor, adding to the continued momentum of HW&Co.’s food and beverage group.

Company Description

California Splendor is a leading provider of natural frozen fruit ingredients, including strawberry and blackberry products. The Company produces organic and conventional products in a variety of formats including sliced, puree, individually quick frozen (IQF), whole, and juice. California Splendor operates facilities in San Diego, California and Canby, Oregon, providing unmatched access to key strawberry and blackberry growing regions.

Key Value Drivers for California Splendor

  • Mission-critical provider of value-added ingredients for CPG and foodservice customers.
  • Leader in natural, organic, and clean-label.
  • Two strategically located facilities in close proximity to leading fruit growing regions.
  • Diverse, blue-chip customer base.

 

 

 

Vital Signs

Commodity Price Indices4

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Protein Price Indices1,2

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Restaurant and Grocery Store Sales Indices3

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Consumer Food Price Index Inflation1

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Public Equity Market Overview

Key Trading Statistics4

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Public Company Sector Performance (Median One Year Change In Stock Price)4

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Recent Equity Offerings5

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Food and Beverage Industry Stock Performance Index4

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M&A Market Overview

Highlighted Food and Beverage M&A Transactions4

Premium Brands Agreed To Acquire Oberto Brands

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Enterprise Value: $188 mm

Revenue Multiple: NA

EBITDA Multiple: NA

Announced: April 12, 2018

Marfrig Global Foods Agreed To Acquire National Beef

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Enterprise Value: $969 mm

Revenue Multiple: NA

EBITDA Multiple: 4.4x

Announced: April 9, 2018

J.M. Smucker Co. Agreed To Acquire Ainsworth Pet Nutrition

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Enterprise Value: $1,900 mm

Revenue Multiple: NA

EBITDA Multiple: NA

Announced: April 5, 2018

Food and Beverage M&A Trends4

Median Food & Bev. Transaction Multiples

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  • Oberto Brands announced that it has reached an agreement to sell substantially all of the assets and operating divisions of the company to Premium Brands Holdings.
  • Oberto is one of North America's leading manufacturers of beef jerky and other protein-based snack foods.
  • With the Oberto acquisition, Premium Brands will have a leading protein platform, already owning brands like McSweeney’s and Deli Chef.

 

 

  • Brazil’s Marfrig Global Foods (MRFG3.SA) has acquired a controlling stake in U.S. beef processor National Beef Packing Company LLC for $969 million.
  • National Beef Packing Company, the fourth-largest beef processor in the United States.
  • This acquisition enables Marfrig to expand its operations to the United States and improve its capital structure.

 

 

  • The J. M. Smucker Co. acquired Ainsworth Pet Nutrition, a portfolio company of Catterton Management Co LLC, for $1.7 billion in cash.
  • Ainsworth Pet Nutrition is a U.S. based manufacturer of pet food and snacks.
  • This acquisition enables J.M. Smucker to expand its presence in the fast-growing premium pet food category.

 

 

 

Announced Food & Bev. Transactions

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M&A Market Overview

Latest Deals and Announced Private Equity Activity4

Last 10 Deals Announced

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Private Equity Investments & Exits

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* M&A transactions include European and cross-border deals since 2015.

Debt Market Overview

Food and Beverage Loan Activity6

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Recent Debt Offerings7

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M&A Overview

Median LTM Trading Multiples & Quarterly Food & Beverage M&A4

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Recent Food and Beverage M&A4

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* M&A transactions include European and cross-border deals since 2015.

Food and Beverage Earnings Release Calendar

Earnings Release Calendar4

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Public Comparables4

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1. Factset

2. U.S. Bureau of Labor Statistics

3. United States Census Bureau

4. Federal Reserve Bank of St. Louis

5. Thomson One

6. Internal Resources