What We’re Seeing

Market Update1

M&A activity in the food and beverage industry is continuing, with strategic buyers being particularly active. US Foods announced it will acquire Smart Foodservice Warehouse Stores, a wholesale food distributor and foodservice warehouse, for $970 million, from Smart & Final Stores, a portfolio company of Apollo Global Management. Mondelēz announced it will acquire Give & Go, a producer of baked goods, for $1.2 billion, from Thomas H. Lee Partners. Hormel Foods announced it will acquire Sadler’s Smokehouse, a provider of premium pit-smoked meats, for $270 million.

What We’ve Been Doing

Closed Harris Williams Transactions

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Harris Williams advises Lancaster Foods

Harris Williams advised Lancaster Foods, a subsidiary of Guest Services, on its sale to The Coastal Companies, a portfolio company of Arlon Group.

Business Overview

  • Lancaster is a leading wholesale supplier of conventional and fresh-cut produce for retail customers across the Northeast U.S.
  • Founded in 1986, Lancaster operates a 220,000-square-foot distribution and processing center in Jessup, Maryland, and operates a fleet of over 70 delivery vehicles.

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Key Value Drivers

  • Best-in-class sourcing capabilities
  • One-stop-shop provider for conventional and fresh-cut needs
  • Attractive position as go-to fill-in provider
  • Industry-leading margin profile
  • Attractively positioned to service the Mid-Atlantic region
  • Deep and experienced management team

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Vital Signs

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Public Equity Market Overview

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M&A Market Overview

Highlighted Food and Beverage M&A Transactions1

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US Foods to Acquire Smart Foodservice Warehouse Stores

  • US Foods to acquire Smart Foodservice Warehouse Stores for $970 million from Smart & Final Stores, a portfolio company of Apollo Global Management.
  • Based in Gresham, Oregon, Smart Foodservice Warehouse Stores is a wholesale food distributor that operates 70 small cash-and-carry stores throughout the West Coast, serving midsized restaurants and other food business customers.
  • The acquisition will complement US Foods’ existing cash-and-carry concept, CHEF’STORE, and will accelerate US Foods’ presence in the growing channel.

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Mondelēz to Acquire Give & Go

  • Mondelēz to acquire Give & Go for $1.2 billion from Thomas H. Lee Partners.
  • Based in Toronto, Canada, Give & Go is a manufacturer of fully finished, sweet baked goods for the in-store bakery channel.
  • The acquisition expands Mondelēz’s snacking offering and establishes a leading position in in-store bakery.

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Hormel Foods to Acquire Sadler’s Smokehouse

  • Hormel Foods acquires Sadler’s Smokehouse for $270 million.
  • Based in Henderson, Texas, Sadler’s Smokehouse is a family-owned business that specializes in premium and authentic pit-smoked meats for retail and foodservice customers.
  • The acquisition will complement Hormel’s foodservice business and gives it another brand to expand in the retail and deli channels.

M&A Market Overview*

Food and Beverage M&A Trends1

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Latest Deals and Announced Private Equity Activity1

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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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Median LTM Trading Multiples & Quarterly Food & Beverage M&A1

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Recent Food and Beverage M&A1

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Food and Beverage Earnings Release Calendar

Earnings Release Calendar1

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Public Comparables4

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1. Capital IQ
2. Unweighted Average
3. US Census Bureau
4. U.S. Bureau of Labor Statistics
5. Thomson Financial
6. S&P
7. Reuters
 
 

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