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Packaged Food - M&A Analysis

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Analysis of recent transactions in Packaged Food & Meat Industry detailing on Transaction Multiples (Revenue & EBITDA), Multiples Chart, Active Buyers & Transaction Data. A goldmine of resource for Entrepreneurs.

Publié dans : Alimentation
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Packaged Food - M&A Analysis

  1. 1. page A L P S V E N T U R E P A R T N E R S 1 PACKAGED! FOOD! M & A TEARSHEET 2019 This report is intended solely for informational purposes and is not intended to be and should not be used by any other person or entity. No other person or entity is entitled to rely, in any manner or for any purpose, on this report.
  2. 2. page A L P S V E N T U R E P A R T N E R S 2 Merger & Acquisition Summary – Packaged Food & Meats Valuation Summary Total Deal Value ($mm) 255,029 Average Deal Value ($mm) 427 Average TEV/Revenue 1.7x Average TEV/EBITDA 13.0x Average Day Prior Premium (%) 11% Average Week Prior Premium (%) 13% Average Month Prior Premium (%) 15% *Source – CapitalIQ, AlpsVP Analysis Date Range: Jain 1, 2013 – March 25, 2019 info@alpsvp.com Transaction Ranges Greater than $1 billion 35 $500 - $999.9 mm 38 $100 - $499.9 mm 125 Less than $100 mm 399
  3. 3. page A L P S V E N T U R E P A R T N E R S 3 Transaction Multiples - Trend *Source – CapitalIQ, AlpsVP Analysis 1.5x 1.6x 1.7x 1.9x 2.0x 1.8x 14.2x 11.4x 12.7x 13.3x 12.9x 15.1x 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x 2014 2015 2016 2017 2018 2019 Transaction Multiples Average TEV/Revenue Average TEV/EBITDA Historical Multiples 2014 2015 2016 2017 2018 2019 5 Year Average TEV/Revenue 1.5x 1.6x 1.7x 1.9x 2.0x 1.8x 1.7x Average TEV/EBITDA 14.2x 11.4x 12.7x 13.3x 12.9x 15.1x 12.9x info@alpsvp.com
  4. 4. page A L P S V E N T U R E P A R T N E R S 4 Transaction Numbers - Trend *Source – CapitalIQ, AlpsVP Analysis 23 22 22 32 23 3 87 97 69 84 55 7 - 20 40 60 80 100 120 2010 2011 2012 2013 2014 2015 Number of Transactions > $1 billion $500 - $999.9mm $100 - $499.9mm Less than $100mm (in $ Million) 2014 2015 2016 2017 2018 2019 5 Year Average Deal Value $287.6 $637.7 $188.1 $457.5 $560.4 $244.0 $426.3 info@alpsvp.com
  5. 5. page A L P S V E N T U R E P A R T N E R S 5 Geographic Heat Map *Source – CapitalIQ, AlpsVP Analysis; Number of transactions in Major Regions Asia Pacific – 10.0% Americas – 71.8% Europe/MENA/Africa – 18.2% info@alpsvp.com Region / Transactions Number Total Value Average Size Asia Pacific 232 $25,402 $109 Europe/MENA/Africa 200 $46,408 $232 Americas 165 $183,220 $1,110
  6. 6. page A L P S V E N T U R E P A R T N E R S 6 Investment Focus info@alpsvp.com Geographic Location Number of Transactions Average Historical Multiples Average Transaction Size (USD mn) United States 94 1.9x $1,817.7 China 61 3.1x $94.4 United Kingdom 36 1.2x $504.3 Australia 31 1.9x $192.0 Canada 27 2.1x $137.3 India 17 1.3x $135.8 Brazil 16 1.3x $220.2 South Korea 16 0.7x $61.5 Vietnam 16 1.6x $97.2 Norway 16 1.9x $383.1 Spain 15 1.3x $126.2 Italy 14 1.2x $132.5 Poland 14 0.7x $20.1 Netherlands 13 1.6x $377.5 Japan 13 0.6x $97.4 Others 198 1.6x $130.8 *Source – Data based on transactions during Jan 01, 2013 and March 25, 2019 from CapitalIQ, AlpsVP Analysis
  7. 7. page A L P S V E N T U R E P A R T N E R S 7 Largest Transactions Target Deal Value ($mm) Kraft Foods Group, Inc. $55,032 Mead Johnson Nutrition Company $19,668 The WhiteWave Foods Company $12,511 Pinnacle Foods Inc. $10,987 The Hillshire Brands Company $8,965 Blue Buffalo Pet Products, Inc. $8,326 Upfield Foods $8,032 Snyder's-Lance, Inc. $6,136 Blue Acquisition Group, Inc. $5,769 AdvancePierre Foods Holdings, Inc. $4,464 *Source – CapitalIQ, AlpsVP Analysis info@alpsvp.com
  8. 8. page A L P S V E N T U R E P A R T N E R S 8 IND UST RY INSIG HT S
  9. 9. page A L P S V E N T U R E P A R T N E R S 9 Industry Outlook (1/4) [1] Source: Frozen Food Production in US published by IBISWorld, Dec 2018 info@alpsvp.com US Frozen Food Production1 The Frozen Food Production industry slightly contracted over the five years to 2018, as demand for industry goods slightly declined. Rising disposable income has enabled consumers to trade up to newer, healthier and premium varieties of goods that command higher retail prices. Nevertheless, with more money to spend, some consumers opted for fresh produce over frozen varieties, stifling growth. Growing health concerns also caused many consumers to purchase fewer frozen foods, which are often perceived to be less healthy than fresher meals, despite new studies indicating otherwise. Operators responded by introducing products with healthier, more nutritious ingredients. Overall, industry revenue is anticipated to decrease at an annualized rate of 0.2% to $33.3 billion over the five years to 2018. This growth includes a projected rise of 0.1% in 2018. 28.1% 27.8% 24.2% 10.2% 9.7% Frozen pizza Frozen vegetables Frozen prepared foods and entrees Frozen fruit and juice concentrates Others Frozen food products contend with adverse conditions from public perceptions. Industry operators have invested in significant research and development over the past five years to reformulate products with less preservatives and more added nutrients from super foods (e.g. spinach, kale and quinoa). Producers can charge more for these premium products, boosting industry revenue. These additional costs resulted in the industry’s average profit margin declining during the five-year period to 4.8% in 2018. Over the five years to 2023, manufacturers will continue to develop new products that appeal to health- conscious consumers and continue to invest in marketing campaigns to boost the image of frozen foods. As more Americans return to work and have less time to prepare meals from scratch, they will opt for the convenience of frozen meals. However, these gains will be offset by several factors. Consumers are expected to purchase more fresh food or dine out more frequently as disposable income levels continue to rise. Ultimately, revenue is expected to grow at an annualized rate of 1.0% to $35.1 billion over the five years to 2023.
  10. 10. page A L P S V E N T U R E P A R T N E R S 10 Industry Outlook (2/4) info@alpsvp.com US Frozen Food Production1 The Frozen Food Production industry is expected to grow over the five years to 2023, as rising disposable income levels enable consumers to trade up to premium varieties of frozen foods. Technological developments in freezing, packaging and sorting, combined with aggressive marketing for new products, will be imperative for industry participants to maintain market share. Consumers’ growing demand for nutritious food and convenience is expected to drive product innovation. More specifically, manufacturers will focus on offering a greater variety of attractive prepared meals, including skillet and oven meal kits, restaurant-quality pizza, ethnic dishes and handheld appetizers and snacks. As a result, IBISWorld forecasts industry revenue will increase at an annualized rate of 1.0% to $35.1 billion over the five years to 2023. 33.9 33.0 33.3 33.3 33.7 34.1 34.4 34.7 35.1 -0.4% -2.7% 1.0% 0.1% 1.2% 1.1% 0.9% 1.0% 1.1% -3.0% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 32 32 33 33 34 34 35 35 36 2015 2016 2017 2018 2019 2020 2021 2022 2023 FrozenFoodProductioninUSRevenue($B) Market Size ($B) Growth (%age) [1] Source: Frozen Food Production in US published by IBISWorld, Dec 2018
  11. 11. page A L P S V E N T U R E P A R T N E R S 11 Industry Outlook (3/4) [1] Source: Snack Food Production in US published by IBISWorld, Feb 2019 info@alpsvp.com US Snack Food Production1 The Snack Food Production industry, which creates goods such as potato and corn chips, pretzels, roasted and salted nuts, peanut butter, popcorn and other similar snacks, benefited from increased demand over the five years to 2019. As the economy has continued to strengthen, discretionary income levels have climbed. In turn, renewed consumer spending has boosted sales of potato and tortilla chips, along with nuts and seeds. Moreover, the emergence of artisanal goods, which are made with a higher degree of craftsmanship and command higher prices, has served to boost revenue. Overall, industry revenue is expected to increase at an annualized rate of 1.4% over the five years to 2019 to reach $42.0 billion in 2019. 32.2% 23.5% 18.8% 25.5% Nuts and seeds Potato Chips Tortilla and corn chips Other Chips Furthermore, shifting food consumption trends have affected the strategies of snack food producers during the period. Specifically, growing health concerns about eating foods high in sodium, fat and sugar have made some consumers wary of consuming traditional snacks. While this has limited some industry revenue expansion, it has also developed a niche market in the industry. Producers have introduced new varieties of existing products, such as reduced-fat and reduced-sodium brand extensions, as well as new gluten-free and organic products driving an estimated 1.5% growth in revenue in 2019. Demand for nuts and seeds has also grown, as consumers have increasingly opted for trail mix. However, while new premium products helped boost revenue, the resulting enhanced operational costs has limited margins throughout the period.
  12. 12. page A L P S V E N T U R E P A R T N E R S 12 Industry Outlook (4/4) info@alpsvp.com US Snack Food Production1 The industry’s future is promising as well, with improving economic conditions expected to further lift demand for snacks. Projected increases in per capita disposable income will enable more consumers to trade up to premium brands, helping drive revenue growth. As consumers continue demanding healthy versions of existing snacks, operators will introduce a wider variety of products. The array of nontraditional ingredients currently used for snack production, such as taro root and butternut squash, indicates creativity will also be a key factor in future successes. Profit is expected to remain stable, enticing new companies to enter the industry with innovative new concepts. However, this appetite for exotic and ethnic flavors will also drive imports of foreign snacks, threatening the domestic snack industry. Overall, industry revenue is anticipated to grow at an annualized rate of 1.0% to $43.7 billion over the five years to 2023. 39.8 40.4 41.0 41.4 42.0 42.5 42.9 43.4 43.7 1.6% 1.7% 1.3% 0.9% 1.5% 1.1% 1.1% 1.0% 0.8% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 37 38 39 40 41 42 43 44 45 2015 2016 2017 2018 2019 2020 2021 2022 2023 SnackFoodProductioninUSRevenue($B) Market Size ($B) Growth (%age) [1] Source: Snack Food Production in US published by IBISWorld, Feb 2019
  13. 13. page A L P S V E N T U R E P A R T N E R S 13 Alps Venture Partners has established a team of experts that have experience in valuing businesses across diverse industry sectors and all developmental stages; ranging from clients with seed funding to pre-IPO stage. With the team having experience of both valuations and audits, our detailed and insightful valuation appraisal reports, along with our responsive support, help our clients easily pass through any stringent audit review process in a smooth, efficient and time-bound manner.
  14. 14. page A L P S V E N T U R E P A R T N E R S 14 Corporate Finance Services We provide clients with high quality research, analytical and advisory support for transactions. We offer a range of services such as initial opportunity assessment, market analysis, financial modeling, commercial and financial due diligence, valuation, capital structure planning, and deal structuring. v  Investment Opportunity Assessment v  Target Identification v  Preparation of Pitch Books v  Buyer & Seller Services v  Fairness Opinions v  Financial Modeling v  Business and Financial Due Diligence etc. Transaction advisory Financial Modeling Whether it is evaluating new business ventures, proposed transactions or financial and operational strategies, a robust and dynamic financial model is an integral component to the decision- making process. Transaction Identification We can help by global target identification considering the requirements with maximum synergy. The financial due diligence process is a necessity to any transaction. Our aim is to enable owners and managers to make such investments with confidence by supporting and advising at every stage. We will help reduce the risk – and stress – of investing at home or in another country. Due Diligence Custom Research We provide clients with customized research report, model, decks with client specific requirements such as: v  Business plan development, v  Diagnostic review of operations v  Competitor benchmark analysis v  Intellectual Property info@alpsvp.com
  15. 15. page A L P S V E N T U R E P A R T N E R S 15 Financial Reporting and Tax Compliance Services IRC 409a We have experience of handling more than 2000+ 409a valuations across Industries. With the team having experience of both valuations and audits, our detailed and insightful Section 409A appraisal reports, along with our responsive support, help our clients easily pass through any stringent audit review process in a smooth, efficient and time-bound manner. Fair Value Measurement We help PE and VC clients to comply with ASC 820 and IFRS 13 standard’s complex provisions and avoid any audit issues in their quarterly and annual reporting. Relative TSR Programs We value the awards with Relative TSR metrics, using sophisticated modeling techniques which allow clients to quickly and accurately value new grants. Our business valuation experienced team along with the team of veteran Patent lawyers position us uniquely to assist clients in completing annual Goodwill and Investment Impairment testing. ASC 350 / IAS 38 ASC 718 (FAS 123R)/IFRS 2 Our experienced team at Alps Venture Partners has performed hundreds of stock options valuations for ASC 718 for privately held companies and publicly listed companies across diverse industry sectors and enterprise development stages. ASC 805 / IFRS 3 We have unmatched proficiency in delivering Business Combinations Accounting solutions to clients in v a r i e d i n d u s t r i e s . O u r comprehensive USPAP compliant appraisal reports are auditable and cost-effective, and help our clients stay focused on the deal. IRC 83 B Election Alps Venture Partners has extensive experience in assisting companies seeking to comply with IRC 83 B election. Failing to make a timely 83(b) election may lead to disastrous tax consequences for a start-up company founder or employee. info@alpsvp.com
  16. 16. page A L P S V E N T U R E P A R T N E R S 16 Disclaimer The contents of this presentation are protected by copyright. You may read the contents and make copies for your own personal use. You may also give copies of reasonable extracts, on an occasional basis, free of charge to your contacts for their personal use provided that Alps Venture Partners is acknowledged as the source, the text is not altered in any way, and this warning is brought to their attention. Any other use or copying of the contents of this presentation is prohibited, unless Alps Venture Partners gives its prior written consent. For further information please contact us at info@alpsvp.com Pursuant to Title 17, United States Code, Section 512(c)(2), notifications of claimed copyright infringement under United States copyright law should be sent to Service Provider’s Designated Agent. ALL INQUIRIES NOT RELEVANT TO THE ABOVE PROCEDURE WILL RECEIVE NO RESPONSE. This Agreement (and any further rules, policies, or guidelines incorporated by reference) shall be governed and construed in accordance with the laws of the United States (USA), United Kingdom, Canada, Brazil, France, and India without giving effect to any principles of conflicts of law. Alps Venture Partners welcomes your questions or comments regarding this Statement of Privacy. If you believe that Alps Venture Partners has not adhered to this Statement, please contact Alps Venture Partners at our given toll free contact numbers. Copyright © 2019 ALPS VENTURE PARTNERS. All Rights Reserved

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