What We’re Seeing

Market Update

The food and beverage market saw several notable M&A transactions in October. Hearthside Food Solutions agreed to acquire Greencore USA, a producer of meal kits and salads, for $1.1B. Kerry Group agreed to acquire Fleischmann’s Vinegar Co., the world’s largest manufacturer of food-grade industrial vinegar, for $350.0M. Glanbia agreed to acquire SlimFast, a leading weight management brand, for $350.0M. Peak Rock Capital agreed to acquire Pretzels, Inc., a leading supplier of pretzels and extruded snack products, for an undisclosed amount. Through October 2018, the aggregate food and beverage transaction value of approximately $104 billion surpassed 2017’s full year transaction value of approximately $78 billion.  

What We’ve Been Doing

Closed Harris Williams Transactions

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Harris Williams Advises SlimFast on its Sale to Glanbia

Business Overview

  • SlimFast is a leading clinically-proven weight management brand with over 40 years of history.
  • After acquiring the business, Kainos put in place a new management team in 2014, who subsequently drove growth with the introduction of new product lines including Advanced Nutrition, Advanced Energy, and Keto.
  • SlimFast became the fastest growing weight management brand for three years in a row.
  • SlimFast also grew the international business, achieving the largest market share in the U.K. weight management category while further penetrating new geographies such as China.

Key Value Drivers

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  • Fastest growing weight management brand
  • Attractive financial profile
  • Diverse, blue-chip customer base
  • Exceptional brand awareness
  • Expected growth from new product launches
  • Clinically proven weight-loss solution
  • Established and growing international presence
  • Deep and experienced management team

 

 

Vital Signs

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Public Equity Market Overview

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

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Recent Equity Offerings5

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M&A Market Overview

Highlighted Food and Beverage M&A Transactions4

Kerry Group to Acquire Fleischmann’s Vinegar

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  • Kerry Group agreed to acquire Fleischmann’s Vinegar for $350.0M.
  • Based in Cerritos, CA, Fleischmann’s Vinegar is the world’s largest manufacturer and marketer of food-grade industrial vinegar.
  • The acquisition will further expand Kerry Group’s foodservice and developing markets position.

Peak Rock Capital to Acquire Pretzels, Inc.

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  • Peak Rock Capital agreed to acquire Pretzels, Inc. (“Pretzels”) for an undisclosed amount.
  • Based in Bluffton, IN, Pretzels provides an extensive portfolio of salty snack products that includes pretzels and extruded snack products.
  • The investment reinforces Peak Rock’s focus on investing in industry-leading food and beverage businesses that are well-positioned for near-term growth.

Hearthside Foods to Acquire Greencore USA

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  • Hearthside agreed to acquire Greencore for $1.1B.
  • Based in Danvers, MA, Greencore produces a range of fresh, frozen, and ambient products including sandwiches, meal kits, and salad kits.
  • The acquisition will expand Hearthside’s production, innovation, and R&D capabilities across the frozen, refrigerated, and fresh meal categories.

Food and Beverage M&A Trends4

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Latest Deals and Announced Private Equity Activity4

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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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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

 

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