What We’re Seeing

Market Update1

The M&A landscape in the food and beverage industry continues to be active with several recent notable transactions. Grupo Nutresa acquired Cameron’s Coffee and Distribution Company, a producer and distributor of premium roasted and ground coffee. Good Source Solutions, Inc. acquired Gold Star Foods, Inc., a specialized food distributor to K-12 child nutrition programs.  Velocity Snack Brands (VSB), a VMG Partners portfolio company, acquired Popchips, one of the leading better-for-you snack food brands in North America.

What We’ve Been Doing

Closed Harris Williams Transactions

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Harris Williams Advises the Bakery Cos.

Harris Williams advised The Bakery Cos. on its partnership with Arbor Investments.

Business Overview

  • Founded in 1996, The Bakery Cos. (the “Company”) is a leading provider of buns, biscuits, English muffins, and other bakery products.
  • The Company operates three facilities in the Nashville, TN area and one facility near Atlanta, GA comprising over 250,000 total square feet.
  • In 2014, the Company added artisan and organic capabilities through its acquisition of Masada Bakery. 

Representative Products

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Key Value Drivers

  • Leading regional bakery supplier
  • Blue-chip customer base across foodservice and retail channels
  • Long-standing customer relationships
  • Attractive financial profile
  • High-speed bakery lines facilitate robust operational capabilities
  • Strong management team that expanded the business and customer base

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Vital Signs

Commodity Price Indices4

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Protein Price Indices2,3

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Food and Beverage Spotlight: Trends in Ingredients

What is Clean Label?

There isn’t any one singular definition of clean label, but loosely, clean foods are those that are as close to their natural state as possible – according to Dr. Shelley Balanko, senior vice president of the Hartman Group. In a study conducted by Ingredion, it found consumers generally place a lot of importance on “clean” ingredient lists free-from additives and artificial ingredients. As the food and beverage industry continues to evolve, it is anticipated that new processing and production advances will replace the need for certain additives.

Access the full article here.

Plant-Based Becoming a ‘Pillar of Food Infrastructure’

Plant-derived foods and ingredients are increasingly being served as the number of available options and formats continues to grow and as consumers continue to choose non-meat alternatives. Pulses, legumes, seeds, and specialty grains are available in several formats, allowing for more opportunities to incorporate plant-based ingredients into a variety of applications. According to Shayna Snyder, account director for Culinary Visions, consumers are becoming more flexible in how they integrate more plant-based foods and ingredients into their daily routine.   

Access the full article here.

Institute of Food Technologists (IFT) 2019 Annual Event and Food Expo

IFT’s Annual Event and Food Expo focuses on “the science of food”— with the goal of advancing food safety, nutrition, and sustainability. Consumers are continuing to favor natural, organic, and clean label products and leading food brands are looking to replace artificial flavors and colors with ingredients that are recognizable to consumers, according to Harris Williams Managing Director Brant Cash and Vice President Andy Warczak, who attended the IFT event in New Orleans this past June.     

Access the full article here.

Select Harris Williams Ingredient Transactions

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Vital Signs

Restaurant and Grocery Store Sales Indices1

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Consumer Food Price Index Inflation2

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Key Trading Statistics1

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Public Equity Market Overview

Public Company Sector Performance (Median One Year Change in Stock Price)1

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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 Transactions1

Groupo Nutresa Acquires Cameron’s Coffee and Distribution Company

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  • Grupo Nutresa acquired Cameron’s Coffee and Distribution Company, a portfolio company of Goldner Hawn
  • Based in Shakopee, MN, Cameron’s Coffee and Distribution Company produces and distributes premium roasted and ground coffee in 48 states
  • The acquisition will allow Grupo Nutresa to strengthen its international footprint

 

Good Source Solutions Acquires Gold Star Foods

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  • Good Source Solutions, a portfolio company of Highview Capital, acquired Gold Star Foods, a portfolio company of Castle Harlan
  • Based in Ontario, CA, Gold Star Foods distributes food products to K-12 school nutrition programs
  • The transaction will create a new holding company called GS Foods Group, which will establish a new leader in specialized foodservice distribution for K-12, corrections, and other segments

 

Velocity Snack Brands Acquires Popchips

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  • Velocity Snack Brands (VSB), a VMG Partners portfolio company, acquired Popchips
  • Based in Playa Vista, CA, Popchips is one of the leading better-for-you snack brands in North America
  • The VSB platform will acquire, incubate, and grow a portfolio of leading snack brands, beginning with Popchips

M&A Market Overview*

Food and Beverage M&A Trends1

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Latest Deals and Announced Private Equity Activity1

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&A1

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Recent Food and Beverage M&A1

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

Food and Beverage Earnings Release Calendar

Earnings Release Calendar1

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Public Comparables1

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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

 

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.

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