What We’re Seeing

Market Update

The food and beverage M&A market saw several notable transactions through September. Hershey agreed to acquire Pirate Brands, a manufacturer of baked, fried, and air popped snacks, for $420 million. The Coca-Cola Company agreed to acquire Costa Limited, a retailer of over 4,000 coffee shops worldwide, for $5.1 billion. Inspire Brands agreed to acquire Sonic Corp, a franchisor of drive-in restaurants, for $2.2 billion.

Harris Williams Advises Rise Baking Company on its Sale to Olympus Partners

Business Overview

  • Rise is a leading growth platform in the North American baking category, serving the in-store bakery, foodservice, and convenience channels.
  • Led by a highly experienced management team, the Rise platform was built through the successful integration of multiple acquisitions.
  • Rise maintains a robust growth pipeline and will continue to pursue add-on acquisition targets.

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Key Value Drivers

  • Leading organic growth.
  • A track record of successful acquisitions.
  • Entrenched blue-chip customer base.
  • Superior customer service.
  • Flexible manufacturing capabilities.
  • Deep and experienced management team.

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What We’ve Been Doing

Closed Harris Williams Transactions

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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

Inspire Brands To Acquire Sonic Corp

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  • Inspire Brands has agreed to acquire Sonic Corp for $2.2 billion.
  • Based in Oklahoma City, OK, Sonic Corp operates and franchises a chain of drive-in restaurants serving approximately three million customers every day.
  • The acquisition will strengthen Inspire Brands’ quick service restaurant business, which includes Arby’s.

 

The Hershey Co. To Acquire Pirate Brands LLCscreen_shot_2018-10-16_at_2.53.17_pm.png

  • The Hershey Co. has agreed to acquire Pirate Brands from B&G Foods for $420 million.
  • Based in Sea Cliff, NY, Pirate Brands offers baked, fried, and air-popped snacks.
  • The acquisition adds to Hershey’s better-for-you snacking portfolio, which includes Skinny Pop, Oatmega, and Paqui.

 

The Coca-Cola Company to Acquire Costa Limited

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  • The Coca-Cola Company has agreed to acquire Costa Limited for $5.1 billion.
  • Based in Dunstable, England, Costa Limited operates over 4,000 retail coffee shops worldwide.
  • The transaction will significantly boost Coca-Cola’s presence in the fast-growing coffee business.

M&A Market Overview*

Food and Beverage M&A Trends4

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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. U.S. Bureau of Labor Statistics

2. Unweighted Average

3. US Census Bureau

4. Factset

5. Thomson Financial

6. S&P

7. Reuters

 

The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.