Food & Agribusiness Industry Update

July 2013

Table of Contents
1

Market Overview

Agricultural Prices

Publicly Traded Companies

M&A Activity

Contact Information

Market Overview: Commodities

Grains

Softs

USD/bushel

$2,000

USD/pound
Corn

Wheat

$200

Soybeans
$1,570

$1,500

Sugar

Coffee

Cotton

$150
$121

$1,000

$100
$655
$645

$500
$0
1-Jul-12

1-Oct-12

1-Jan-13

1-Apr-13

1-Jul-13

Source: Bloomberg

$50
$0
1-Jul-12

Energy

USD/pound

USD/MMBtu
Live Cattle

Feeder Cattle

$151

$100

$122
$101

1-Jan-13

1-Apr-13

1-Jul-13

Natural Gas

$4.00

$3.58

$3.00
$2.00

$50

Source: Bloomberg

1-Oct-12

$5.00

Lean Hogs

$150

$0
1-Jul-12

$17

Source: Bloomberg

Livestock
$200

84

$1.00
1-Oct-12

1-Jan-13

1-Apr-13

1-Jul-13

$0.00
1-Jul-12

1-Oct-12

1-Jan-13

1-Apr-13

1-Jul-13

Source: Bloomberg

Market Overview: Rates, Currencies & Indices

North American Interest Rates

Term

Foreign Exchange Rates

Canada

U.S.

Spread

2-Years

1.21

0.34

0.87

3-Years

1.33

0.65

5-Years

1.78

7-Years
10-Years

CAD

USD

EUR

GBP

JPY

CAD

1.0000

0.9524

0.7295

0.6251

94.9801

0.68

USD

1.0500

1.0000

0.7660

0.6564

99.7300

1.39

0.39

EUR

1.3709

1.3056

1.0000

0.8569

130.2043

2.12

1.93

0.19

GBP

1.5998

1.5236

1.1670

1.0000

151.9464

2.42

2.50

-0.08

JPY

0.0105

0.0100

0.0077

0.0066

1.0000

Source: Capital IQ (1-Jul-13)

Source: Capital IQ (1-Jul-13)

Market Performance
25.00%

DJIA

S&P 500

Food & Agribusiness Performance

40.00%

S&P/TSX

20.00%

17.5%
15.7%

15.00%
10.00%

2.3%

0.00%

Source: Capital IQ

S&P Food Index

S&P GSCI Ag Index

30.00%

27.7%

20.00%

17.5%

10.00%

5.00%
-5.00%
1-Jul-12

S&P 500

1-Oct-12

1-Jan-13

1-Apr-13

1-Jul-13

3.0%

0.00%
-10.00%
-20.00%
1-Jul-12

1-Oct-12

1-Jan-13

1-Apr-13

1-Jul-13

Source: Capital IQ

Agricultural Prices

Price Received by Growers/Farmers (US$)

Price Received by Growers/Farmers (US$)

Last Twelve Mo. 1-Yr. Ago

Commodity

Unit

JulSep

OctDec

JanMar

AprJun

Last Twelve Months

JulSep

OctDec

JanMar

AprJun

Q/Q % Change
JulSep

OctDec

JanMar

Last Twelve Mo. 1-Yr. Ago

AprJun

Vegetables

Commodity

Unit

JulSep

OctDec

JanMar

AprJun

Last Twelve Months

JulSep

OctDec

JanMar

AprJun

OctDec

JanMar

AprJun

Field Crops

Beans (Snap) $/cwt $74.2 $64.0 $70.8 $57.0

$80.1 $51.4 $77.1

N/A

Broccoli

$/cwt $32.6 $42.5 $27.2 $32.6

$31.3 $30.6 $49.7

Carrots

$/cwt $22.0 $18.1 $26.5 $27.5

Cauliflower

$/cwt $33.0 $54.6 $34.1 $34.2

Cucumbers

$/cwt $29.5 $29.3

Onions

$/cwt $12.4

Potatoes

$/cwt $18.4 $10.9 $11.3 $13.5

Tomatoes

$/cwt $33.0 $31.8 $32.0 $35.3

$8.9

8.8%

N/A

Barley

$/bu

$5.3

$5.5

$5.4

$5.6

$6.4

$6.4

$6.4

$6.0

21.2% 16.4% 18.4%

7.1%

N/A

-4.2% -28.1% 82.5%

N/A

Corn (Grain) $/bu

$6.5

$5.8

$6.2

$6.4

$7.2

$6.9

$7.1

$6.9

10.6% 19.4% 13.4%

8.0%

$24.3 $26.7 $29.2

N/A

10.3% 47.2% 10.2%

N/A

Flaxseed

$/bu

-8.1%

6.9%

$32.2 $38.9 $53.1

N/A

-2.3% -28.8% 55.5%

N/A

Lentils

$/cwt $27.1 $25.9 $24.4 $22.6

$0.0 $26.8

$27.9 $22.5 $21.7

N/A

-5.6% -23.1%

0.0%

N/A

Oats

$/bu

$6.2 $22.1

$23.0 $12.9 $27.4

N/A

86.5% 45.2% 343%

N/A

Peanuts

$/lb

$8.7 -56.7% -39.8% -39.4% -35.6%

Soybeans

$/bu

N/A -18.0%

Sunflower

$/cwt $31.7 $29.4 $29.1 $27.8

$8.0

$6.6

$6.8

$27.0 $34.0 $41.8

8.0% -19.7%

6.6% 30.4%

N/A

$14.5 $13.8 $13.4 $13.9

$3.4

$3.5

$3.6

$3.9

$13.3 $14.0 $14.0 $14.9

$3.8

$3.9

$4.1

10.3%

9.5% 12.9%

$0.24 $0.31 $0.34 $0.34

$0.33 $0.34 $0.29 $0.28

41.4%

8.7% -13.6% -20.1%

$12.9 $11.7 $12.4 $13.9

$15.3 $14.4 $14.5 $14.7

18.3% 23.4% 17.0%

Price Received by Growers/Farmers (US$)

Unit

OctDec

JanMar

AprJun

Last Twelve Months

JulSep

OctDec

JanMar

AprJun

Q/Q % Change
OctJul-Sep
Dec

JanMar

Last Twelve Mo. 1-Yr. Ago

AprJun

Fruits

Commodity

Unit

JulSep

OctDec

JanMar

AprJun

4.9%

5.8%

$28.2 $25.9 $25.5 $24.1 -11.0% -12.0% -12.2% -13.2%

Price Received by Growers/Farmers (US$)

JulSep

4.2%

$4.1

Source: USDA, National Agricultural Statistics Service, Agricultural Prices

Last Twelve Mo. 1-Yr. Ago

1.5%

$19.2 $21.0 $21.6 $22.0 -29.3% -18.7% -11.5% -2.4%

Source: USDA, National Agricultural Statistics Service, Agricultural Prices

Commodity

Q/Q % Change
JulSep

Last Twelve Months

JulSep

OctDec

JanMar

AprJun

Q/Q % Change
JulSep

OctDec

JanMar

AprJun

Agriculture & Products

Apples

$/lb

Cantaloup

$/cwt $17.5 $14.3

Grapefruit

$/box $16.8 $22.8 $23.1 $23.1

$19.9 $25.7 $22.8 $17.8

Grapes

$/ton $1087 $937 $680 $1410

$810 $1500

Lemons

$/box $18.9 $13.8 $12.3 $16.3

$13.7 $14.1 $29.6 $36.4

-27.3%

Oranges

$/box $21.7 $24.3 $22.7 $25.8

$22.5 $24.8 $22.0 $25.5

3.7%

Pears

$/ton

$572 $700 $768

N/A

5.4% 38.2% 69.4%

$82 $133 $116

N/A

-3.5% 31.2% -1.4%

Strawberries $/cwt

$0.41 $0.36 $0.36 $0.35

$0.0 $26.9

$542 $506 $454 $454

$85 $101 $118

$84

$0.52 $0.50 $0.43 $0.00

26.4% 38.2% 19.5%

N/A

Calves

$/cwt $135 $152 $179 $173

$21.7 $24.2

24.4% 68.9%

N/A

Cows

$/cwt

Steers

$/cwt $115 $125 $131 $126

$121 $128 $128 $128

4.6%

Broilers

$/lb

$0.46 $0.45 $0.53 $0.52

$0.49 $0.56 $0.63 $0.66

6.5% 24.4% 18.2% 28.4%

2.6% 141% 123%

Eggs

$/dz

$1.01 $1.09 $0.92 $0.87

$1.11 $1.12 $1.07 $0.99

9.6%

2.1% -3.4% -1.0%

Hogs

$/cwt $71.5 $65.5 $64.7 $65.3

$64.9 $62.0 $62.7 $66.9

N/A

Milk

$/cwt $21.7 $20.1 $18.0 $16.4

$18.2 $21.5 $19.5 $18.9 -16.0%

N/A

Turkey

$/lb

$0.75 $0.73 $0.63 $0.66

$0.0

$0

Source: USDA, National Agricultural Statistics Service, Agricultural Prices

N/A

N/A

0.0%

18.7% 12.9% -1.4% -22.9%

-25.5% 60.1% 100%

N/A

$71

$67

$80

$86

$0.70 $0.76 $0.67 $0.73

$154 $162 $165 $152

$80

$77

$81

$81

14.1%

7.0% -7.8% -12.5%

13.4% 14.6%

0.9% -6.7%

2.9% -2.0%

1.6%

2.8% 16.1% 14.7%

-9.3% -5.4% -3.1%

7.3%

2.5%

8.5% 15.4%

5.8% -3.5% -5.1% -10.1%

Source: USDA, National Agricultural Statistics Service, Agricultural Prices

Publicly Traded Companies

(US$ in millions, except per share data)

Market Data
Price
Company

1-Jul-13

52-Week
High

Low

Financial Results

LTM Operating Statistics

Multiples

Market

Ent.

Dividend

LTM (1)

Debt/

1-Yr. Rev.

Margins

EV/LTM (1)

EV/NTM (2)

Price/

Cap

Value

Yield

Revenue EBITDA

EBITDA

Growth

Gross

EBITDA

$21

0.3x

20.3%

38.5%

12.4%

4.2x

33.8x

3.5x

22.6x

64.5x

Revenue EBITDA Revenue EBITDA Earnings

FOOD
Diversified Foods
Annie's

$41.90

$48.87

$32.06

$707

$709

0.0%

B&G Foods

$34.05

$34.66

$24.69

$1,800

$2,415

3.4%

$648

$172

3.7x

13.7%

34.8%

26.6%

3.7x

14.0x

3.2x

12.4x

27.8x

Campbell Soup

$44.99

$48.83

$32.14 $14,088 $17,952

2.6%

$8,376

$1,720

2.5x

8.8%

37.4%

20.5%

2.1x

10.4x

2.0x

10.5x

19.2x

ConAgra Foods

$35.36

$36.31

$23.64 $14,738 $24,144

2.8%

$15,491

$1,870

5.1x

16.8%

23.0%

12.1%

1.6x

12.7x

1.3x

9.8x

19.1x

Diamond Foods

$20.96

$21.19

$12.85

$1,044

0.0%

$888

$55

10.7x

-10.5%

21.9%

6.1%

1.2x

19.1x

1.2x

9.7x

NM

General Mills

$49.17

$50.97

$37.72 $31,698 $40,349

3.1%

$17,774

$3,460

2.3x

6.7%

36.1%

19.5%

2.3x

11.3x

2.2x

11.0x

17.6x

Hain Celestial

$65.95

$73.72

$51.38

$3,738

0.0%

$1,622

$212

3.1x

25.0%

27.5%

13.1%

2.3x

17.6x

1.9x

13.6x

23.9x

Hershey

$89.81

$91.99

$68.09 $20,093 $21,269

1.9%

$6,740

$1,438

1.3x

7.9%

44.3%

21.3%

3.2x

14.8x

3.0x

13.3x

29.2x

$103.15 $105.18

$74.12 $10,932 $12,693

2.0%

$5,898

$1,212

1.7x

6.7%

34.6%

20.5%

2.2x

10.5x

2.2x

10.1x

20.6x

J. M. Smucker

$466
$3,116

$170

Kellogg

$65.11

$66.84

$46.33 $23,946 $31,311

2.8%

$14,618

$2,134

3.5x

11.1%

37.7%

14.6%

2.1x

14.7x

2.1x

11.5x

25.6x

Kraft Foods

$55.53

$57.84

$42.00 $33,011 $41,799

3.6%

$18,432

$3,425

2.9x

-1.4%

32.0%

18.6%

2.3x

12.2x

2.2x

11.7x

20.6x

McCormick

$70.10

$75.26

$59.00

$9,247 $10,500

1.9%

$4,060

$678

2.0x

3.5%

40.1%

16.7%

2.6x

14.9x

2.4x

14.1x

23.0x

Mondelez

$28.78

$42.54

$24.50 $51,357 $67,168

1.8%

$35,092

$5,120

3.6x

10.0%

37.4%

14.6%

1.9x

13.1x

1.8x

11.8x

29.1x

Seneca Foods

$32.48

$36.06

$22.29

$347

$608

0.0%

$1,276

$96

2.8x

1.5%

11.1%

7.5%

0.5x

6.4x

N/A

N/A

9.1x

Tootsie Roll

$33.26

$34.05

$23.07

$1,930

$1,864

0.9%

$550

$92

0.1x

3.1%

33.9%

16.7%

3.4x

20.6x

3.3x

N/A

38.3x

Treehouse Foods

$67.94

$68.10

$46.15

$2,462

$3,227

0.0%

$2,198

$299

2.9x

5.7%

21.4%

13.6%

1.5x

10.8x

1.4x

9.8x

28.3x

WhiteWave Foods

$17.22

$19.59

$14.22

$2,979

$3,729

0.0%

$2,346

$272

3.0x

12.2%

35.4%

11.6%

1.6x

13.7x

1.5x

12.7x

26.4x

Median

2.9x

7.9%

34.8%

14.6%

2.2x

13.7x

2.1x

11.7x

24.8x

Average

3.0x

8.3%

32.2%

15.6%

2.3x

14.7x

2.2x

12.3x

26.4x

(1) Last Twelve Months

(2) Next Twelve Months
Source: Capital IQ

Publicly Traded Companies

(US$ in millions, except per share data)

Market Data
Price
Company

1-Jul-13

52-Week

Financial Results

LTM Operating Statistics

Multiples

Market

Ent.

Dividend

LTM (1)

Debt/

1-Yr. Rev.

Value

Yield

Revenue EBITDA

EBITDA

Growth

Gross

EBITDA

High

Low

Cap
$4,607

Margins

EV/LTM (1)

EV/NTM (2)

Price/

Revenue EBITDA Revenue EBITDA Earnings

Baked Goods / Snack Foods

Flowers Foods

$22.22

$24.17

$12.31

$5,232

2.0%

$3,279

$371

1.7x

14.3%

47.4%

11.3%

1.6x

14.1x

1.4x

11.0x

22.0x

George Weston

$80.08

$81.48

$54.98 $10,229 $18,141

2.0%

$32,288

$2,288

3.5x

1.7%

24.6%

7.1%

0.6x

8.2x

0.6x

7.6x

22.8x

J&J Snack Foods

$79.49

$80.85

$51.91

$1,495

$1,389

0.8%

$861

$127

0.0x

9.3%

30.4%

14.7%

1.6x

11.0x

1.5x

10.0x

24.6x

John B Sanfilippo

$20.12

$21.11

$12.40

$221

$317

0.0%

$724

$56

1.7x

3.3%

16.3%

7.7%

0.4x

5.7x

N/A

N/A

11.0x

Post Holdings

$44.08

$47.80

$28.35

$1,440

$2,114

0.0%

$974

$211

4.9x

2.0%

43.9%

21.7%

2.2x

10.0x

2.0x

9.9x

38.7x

Snyder's-Lance

$28.67

$28.86

$22.24

$1,983

$2,516

2.2%

$1,644

$179

3.0x

0.3%

34.0%

10.9%

1.5x

14.1x

1.4x

11.6x

31.1x

Median

2.4x

2.7%

32.2%

11.1%

1.6x

10.5x

1.4x

10.0x

23.7x

Average

2.5x

5.2%

32.8%

12.2%

1.3x

10.5x

1.4x

10.0x

25.0x

Food Service Distributors

CH Robinson

$56.46

$67.93

$50.81

$9,065

$9,296

2.5%

$11,801

$774

0.5x

12.1%

8.5%

6.6%

0.8x

12.0x

0.7x

11.2x

15.4x

Core-Mark

$63.01

$64.82

$40.06

$723

$758

1.2%

$6,979

$84

0.6x

7.5%

6.9%

1.2%

0.1x

9.1x

0.1x

6.8x

22.3x

Nash Finch

$22.34

$24.62

$18.64

$274

$671

3.2%

$4,845

$111

3.6x

0.4%

8.4%

2.3%

0.1x

6.1x

0.1x

6.3x

NM

Sysco

$34.03

$35.62

$28.23 $20,196 $22,659

3.3%

$43,856

$2,501

1.1x

5.0%

17.9%

5.7%

0.5x

9.1x

0.5x

9.1x

19.8x

United Natural

$54.44

$61.26

$47.20

0.0%

$5,766

$216

0.8x

14.1%

16.9%

3.7%

0.5x

13.2x

0.4x

11.4x

26.7x

Median

0.8x

7.5%

8.5%

3.7%

0.5x

9.1x

0.4x

9.1x

21.1x

Average

1.3x

7.8%

11.7%

3.9%

0.4x

9.9x

0.4x

9.0x

21.1x

$2,685

$2,847

(1) Last Twelve Months

(2) Next Twelve Months
Source: Capital IQ

Publicly Traded Companies

(US$ in millions, except per share data)

Market Data
Price
Company

1-Jul-13

52-Week

Financial Results

LTM Operating Statistics

Market

Ent.

Dividend

LTM (1)

Debt/

1-Yr. Rev.

Value

Yield

Revenue EBITDA

EBITDA

Growth

Gross

High

Low

Cap

Multiples

Margins
EBITDA

EV/LTM (1)

EV/NTM (2)

Price/

Revenue EBITDA Revenue EBITDA Earnings

Protein
Cal-Maine

$47.58

$47.90

$34.55

$1,147

$1,027

1.7%

$1,237

$110

0.6x

14.5%

16.4%

8.9%

0.8x

8.6x

0.8x

6.9x

12.5x

Lifeway Foods

$16.80

$18.38

$7.90

$275

$275

0.5%

$86

$13

0.4x

19.8%

36.5%

15.1%

3.2x

21.0x

2.5x

17.3x

40.2x

Maple Leaf

$13.95

$13.97

$9.38

$1,952

$3,153

1.1%

$4,736

$364

3.5x

-1.8%

15.0%

7.7%

0.7x

9.0x

0.7x

8.2x

19.8x

Pilgrim's Pride

$14.97

$15.47

$4.20

$3,878

$4,979

0.0%

$8,270

$406

2.8x

9.8%

5.4%

4.9%

0.6x

12.2x

0.6x

6.5x

20.5x

Sanderson Farms

$66.88

$72.15

$36.11

$1,539

$1,666

1.0%

$2,490

$154

1.0x

14.0%

7.0%

6.2%

0.7x

10.8x

0.6x

4.7x

27.7x

$2,725.05

$2,934

$1,991

$3,262

$3,024

0.1%

$6,300

$372

0.5x

9.6%

8.5%

5.9%

0.5x

7.7x

0.5x

N/A

12.7x

Smithfield Foods

$32.77

$33.96

$17.55

$4,553

$6,762

0.0%

$13,221

$744

3.4x

1.0%

10.0%

5.6%

0.5x

8.9x

0.5x

7.5x

26.0x

Tyson Foods

$26.33

$26.50

$14.07

$9,343 $10,988

0.8%

$33,502

$1,697

1.4x

0.8%

6.4%

5.1%

0.3x

6.4x

0.3x

5.4x

18.1x

Median

1.2x

9.7%

9.2%

6.1%

0.6x

8.9x

0.6x

6.9x

20.1x

Average

1.7x

8.5%

13.2%

7.4%

0.9x

10.6x

0.8x

8.1x

22.2x

Seaboard

Dairy
Dean Foods

$10.37

$21.06

$9.53

Saputo

$45.21

$51.85

$37.74

$1,936

$3,837

0.0%

$11,471

$683

2.7x

0.1%

25.2%

6.0%

0.3x

5.6x

0.4x

8.7x

21.6x

$8,900 $10,506

1.8%

$7,175

$846

2.0x

5.3%

11.8%

11.8%

1.5x

12.9x

1.3x

10.7x

19.8x

Median

2.4x

2.7%

18.5%

8.9%

0.9x

9.2x

0.8x

9.7x

20.7x

Average

2.4x

2.7%

18.5%

8.9%

0.9x

9.2x

0.8x

9.7x

20.7x

(1) Last Twelve Months

(2) Next Twelve Months
Source: Capital IQ

Publicly Traded Companies

(US$ in millions, except per share data)

Market Data
Price
Company

1-Jul-13

52-Week
High

Low

Financial Results

LTM Operating Statistics

Multiples

Market

Ent.

Dividend

LTM (1)

Debt/

1-Yr. Rev.

Margins

EV/LTM (1)

EV/NTM (2)

Price/

Cap

Value

Yield

Revenue EBITDA

EBITDA

Growth

Gross

EBITDA

3.7%

2.8%

0.3x

9.9x

0.3x

8.7x

18.5x

Revenue EBITDA Revenue EBITDA Earnings

AGRIBUSINESS
Agricultural Products
Archer Daniels

$34.87

$35.16

$24.38 $22,980 $30,235

2.2%

$91,131

$2,554

3.5x

0.0%

Bunge

$71.36

$80.99

$60.75 $10,495 $16,868

1.7%

$62,867

$1,740

6.1x

10.7%

4.3%

2.8%

0.3x

9.9x

0.3x

7.4x

24.5x

Darling Int'L

$19.07

$20.10

$15.09

$2,382

0.0%

$1,760

$324

0.8x

0.9%

27.3%

18.4%

1.4x

7.4x

1.4x

7.3x

16.7x

Monsanto

$98.42 $109.33

$81.49 $52,541 $52,084

1.5%

$14,757

$4,286

0.5x

8.1%

51.6%

29.0%

3.5x

12.1x

3.3x

10.7x

21.3x

The Andersons

$53.78

$35.16

1.2%

$5,407

$157

4.8x

14.8%

6.5%

2.9%

0.3x

9.6x

0.3x

9.0x

13.7x

Median

3.5x

8.1%

6.5%

2.9%

0.3x

9.9x

0.3x

8.7x

18.5x

Average

3.1x

6.9%

18.7%

11.2%

1.2x

9.8x

1.1x

8.6x

19.0x

$55.91

$2,254
$996

$1,703

Agricultural Equipment

AGCO

$50.30

$56.83

$40.29

$5,812

0.8%

$10,092

$960

1.5x

9.1%

21.4%

9.5%

0.6x

5.8x

0.6x

5.5x

9.5x

Caterpillar

$82.48

$99.70

$78.25 $54,247 $91,177

$4,895

2.9%

$63,104 $10,423

3.9x

-0.1%

26.7%

16.5%

1.4x

8.7x

1.5x

9.9x

11.1x

CNH Global

$42.24

$49.99

$34.36 $10,290 $23,979

0.0%

$20,498

$2,938

6.4x

2.5%

24.0%

14.3%

1.2x

7.9x

1.2x

11.0x

8.5x

Deere

$80.90

$95.60

$72.85 $31,393 $61,321

2.5%

$37,717

$6,151

5.5x

11.7%

28.9%

16.3%

1.6x

10.0x

1.8x

11.5x

10.0x

Harsco

$23.50

$26.02

$18.40

3.5%

$3,009

$448

2.3x

-8.1%

22.9%

14.9%

1.0x

6.4x

1.0x

5.7x

NM

Median

3.9x

2.5%

24.0%

14.9%

1.2x

7.9x

1.2x

9.9x

9.7x

Average

3.9x

3.0%

24.8%

14.3%

1.2x

7.8x

1.2x

8.7x

9.8x

$1,896

$2,882

(1) Last Twelve Months

(2) Next Twelve Months
Source: Capital IQ

Publicly Traded Companies

(US$ in millions, except per share data)

Market Data
Price
Company

1-Jul-13

52-Week
High

Low

Financial Results

LTM Operating Statistics

Multiples

Market

Ent.

Dividend

LTM (1)

Debt/

1-Yr. Rev.

Margins

Cap

Value

Yield

Revenue EBITDA

EBITDA

Growth

Gross

EBITDA

EV/LTM (1)

EV/NTM (2)

Price/

Revenue EBITDA Revenue EBITDA Earnings

Fertilizer
Agrium
CF Industries

$88.06 $110.48

$83.33 $13,158 $16,387

$171.84 $233.43 $169.33 $10,188

2.3%

$16,339

$2,594

1.5x

1.6%

27.1%

15.9%

1.0x

6.5x

0.9x

6.2x

9.5x

$9,968

0.9%

$5,913

$3,304

0.5x

-8.3%

52.0%

55.9%

1.7x

2.9x

1.7x

3.6x

5.8x

Mosaic

$53.51

$64.65

$48.29 $22,782 $20,551

1.9%

$10,102

$2,961

0.4x

-9.4%

28.0%

29.3%

2.0x

6.9x

2.0x

6.3x

12.0x

Potash Corp.

$37.82

$44.33

$35.14 $32,759 $36,103

3.7%

$7,742

$3,693

1.1x

-0.8%

46.2%

47.7%

4.8x

9.4x

4.5x

8.4x

16.1x

Median

0.8x

-4.6%

37.1%

38.5%

1.9x

6.7x

1.8x

6.3x

10.7x

Average

0.9x

-4.2%

38.3%

37.2%

2.4x

6.4x

2.3x

6.1x

10.8x

1.6x

5.6%

9.8%

5.3%

0.7x

13.2x

0.6x

10.5x

23.3x
NM

Produce
Calavo Growers

$26.27

$32.56

$21.63

$386

$431

2.5%

$601

Chiquita

$11.05

$11.23

Dole Food

$12.74

$15.19

Fresh Del Monte

$28.15

$4.65

$513

$1,075

0.0%

$3,059

$83

7.4x

-1.6%

11.2%

2.7%

0.4x

21.1x

0.4x

7.3x

$8.50

$1,127

$2,694

0.0%

$4,214

$128

12.8x

0.8%

9.1%

3.0%

0.6x

20.0x

0.6x

20.2x

NM

$28.15

$23.04

$1,608

$1,774

1.8%

$3,442

$221

0.7x

-2.0%

9.6%

6.4%

0.5x

8.0x

0.5x

8.3x

13.5x

$0.76

$0.91

$0.60

$29

$86

0.0%

$131

$0

497.0x

-18.2%

5.2%

0.1%

0.7x

NM

N/A

N/A

2.7x

Median

7.4x

-1.6%

9.6%

3.0%

0.6x

16.6x

0.6x

9.4x

13.5x

Average

103.9x

-3.1%

9.0%

3.5%

0.6x

15.6x

0.5x

11.6x

13.1x

Village Farms

$32

(1) Last Twelve Months

(2) Next Twelve Months
Source: Capital IQ

10

Publicly Traded Companies

(US$ in millions, except per share data)

Market Data
Price
Company

1-Jul-13

52-Week
High

Low

Financial Results

LTM Operating Statistics

Multiples

Market

Ent.

Dividend

LTM (1)

Debt/

1-Yr. Rev.

Margins

EV/LTM (1)

Cap

Value

Yield

Revenue EBITDA

EBITDA

Growth

Gross

EBITDA

3.0%

43.6%

8.8%

0.7x

EV/NTM (2)

Price/

Revenue EBITDA Revenue EBITDA Earnings

FOOD RETAIL
Retailers
Arden

$110.77 $113.90

$82.60

$340

$315

0.9%

$445

$39

0.0x

8.0x

N/A

N/A

16.7x

Casey's

$62.77

$63.89

$46.15

$2,410

$3,096

1.1%

$6,655

$326

2.2x

3.0%

16.3%

4.9%

0.5x

9.5x

0.4x

8.3x

21.9x

Fresh Market

$48.91

$65.69

$36.51

$2,362

$2,366

0.0%

$1,371

$154

0.1x

17.3%

34.2%

11.2%

1.7x

15.4x

1.5x

12.8x

35.2x

Ingles Market

$25.23

$27.10

$14.93

$613

$1,461

2.6%

$3,761

$220

3.9x

4.0%

22.1%

5.8%

0.4x

6.6x

0.4x

6.4x

13.3x

Kroger

$35.92

$36.29

$20.98 $18,615 $26,320

1.7%

$97,729

$4,517

1.8x

6.3%

21.1%

4.6%

0.3x

5.8x

0.3x

6.0x

12.4x

Loblaw

$45.61

$48.23

$29.57 $12,915 $17,911

2.0%

$31,170

$1,999

3.3x

1.8%

23.5%

6.4%

0.6x

9.2x

0.6x

8.6x

19.6x

Metro

$66.68

$70.25

$48.95

$6,319

$6,903

1.4%

$11,785

$818

0.8x

5.1%

6.9%

6.9%

0.6x

8.0x

0.6x

8.5x

9.0x

Natural Grocers

$33.69

$34.34

$17.20

$755

$760

0.0%

$379

$26

0.6x

27.4%

29.4%

6.8%

2.0x

29.3x

1.6x

21.4x

88.7x

Pantry

$12.27

$16.36

$11.28

$289

$1,238

0.0%

$7,208

$216

4.4x

-5.1%

11.4%

3.0%

0.2x

5.7x

0.2x

5.2x

NM

Roundy's

$9.29

$10.78

$3.69

$434

$1,061

5.2%

$3,936

$189

3.7x

1.9%

26.4%

4.8%

0.3x

5.6x

0.3x

5.7x

NM

Safeway

$23.68

$28.42

$14.73

$5,709 $11,530

3.4%

$44,198

$2,214

2.8x

0.8%

27.6%

5.0%

0.3x

5.2x

0.3x

5.3x

9.5x

Spartan Stores

$19.11

$19.73

$13.44

$418

$562

1.9%

$2,608

$102

1.5x

-1.0%

20.9%

3.9%

0.2x

5.5x

0.2x

5.3x

15.0x

$6.75

$7.11

$1.68

$1,740

$4,557

0.0%

$17,097

$516

5.6x

-1.4%

13.9%

3.0%

0.3x

8.8x

0.3x

6.2x

NM

Village Super Mkt

$33.67

$39.29

$29.51

$465

$405

3.0%

$1,470

$69

0.6x

5.2%

27.0%

4.7%

0.3x

5.8x

0.3x

N/A

24.1x

Weis Markets

$45.42

$47.92

$37.65

$1,222

$1,119

2.6%

$2,723

$180

0.0x

-1.2%

27.6%

6.6%

0.4x

6.2x

0.4x

N/A

14.8x

Whole Foods

$52.68

$53.60

$40.70 $19,539 $18,488

0.8%

$12,521

$1,169

0.0x

15.8%

35.6%

9.3%

1.5x

15.8x

1.3x

14.1x

38.0x

Median

1.6x

3.0%

25.0%

5.4%

0.4x

7.3x

0.4x

6.4x

16.7x

Average

2.0x

5.2%

24.2%

6.0%

0.6x

9.4x

0.6x

8.8x

24.5x

SUPERVALU

(1) Last Twelve Months

(2) Next Twelve Months
Source: Capital IQ

11

M&A Activity

M&A Value and Volume

M&A Volume by Subsector

Value (US$M)
Total Deal Value

$50,000

# Deals

# Deals

350
300
250
200
150
100
50
0

250

Aggregate Deal Volume

$40,000
$30,000
$20,000
$10,000
$0
2008

2009

2010

2011

2012

2013

Select MPC Indices vs S&P 500

Food Retail

150
100
50
0
2009

2010

2011

2012

2013

Source: Capital IQ

MPC Composite Multiples

MPC Agribusiness Index (1)

(1) Index constituents based on publicly traded companies list

Source: Capital IQ

Agribusiness

200

2008

Source: Capital IQ (sectors incl. Food Products, Food Retail & Distributors, & Beverages (excl. Soft Drinks))

25.0%
MPC Food Index (1)
S&P 500 Index
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13

Food

17.5%
13.0%

2.1%

14.0x
12.0x
10.0x
8.0x
6.0x
4.0x
2.0x
0.0x
Sep-10

MPC Food Index (1)

MPC Ag Index (1)
MPC Food Retail Index (1)

12.2x
9.8x
9.2x

Mar-11

Sep-11

Mar-12

Sep-12

Mar-13

(1) Composite constituents based on publicly traded companies list; EV/LTM EBITDA
Source: Capital IQ

12

M&A Activity: Select Transactions

(US$ in millions)
Date
Announced

Transaction

Transaction Enterprise

Status

Target

Buyer

Subsector

Value

Value

EV/LTM (1)
Revenue

EBITDA

28-Jun-13

Announced Sun-Rype Products

Great Pacific Industries

Food

$37.3

$93.9

0.6x

13.7x

24-Jun-13

Closed

Treehouse Foods

Food

$36.9

$36.9

0.4x

N/A

12-Jun-13

Announced Canada Safeway

Sobeys

Food Retail

$5,800.0

$5,800.0

0.9x

10.7x

11-Jun-13

Announced Dole Food Company

David H. Murdock

Food

$2,361.9

$2,690.8

0.6x

19.6x

10-Jun-13

Announced Robert's American Gourmet Food

B&G Foods North America

Food

$198.5

$198.5

N/A

N/A

5-Jun-13

Closed

Cains Foods

Roust Trading

Beverages

$1,739.1

$1,723.1

2.0x

25.6x

29-May-13 Announced Smithfield Foods

Central European Distribution

Henan Shineway Group

Food

$7,404.2

$7,260.4

0.5x

8.5x

28-May-13 Announced Delhaize (Sweetbay, Harveys and Reid's)

BI-LO

Food Retail

$275.0

$275.0

0.1x

N/A

21-May-13 Announced Clement Pappas & Co.

Lassonde Industries

Food

$21.8

$21.8

N/A

N/A

15-May-13 Announced Overhill Farms

Bellisio Foods

Food

$89.3

$86.2

0.4x

13.1x

10-May-13 Announced Florida Chemical Company

Flotek Industries

Food

$103.5

$103.5

1.0x

10.3x

9-May-13

Closed

Hearthside (Cereal, Granola & Snacks)

Attune Foods

Food

$158.5

$158.5

N/A

N/A

25-Mar-13

Closed

Freybe Gourmet Foods

Premium Brands

Food

$60.0

$60.0

0.8x

N/A

12-Mar-13

Announced A&P (2 Food Emporium Stores)

Madison Capital

Food Retail

$133.4

$133.4

N/A

N/A

1-Mar-13

Closed

Mary's Gone Crackers

Kameda USA

Food

$26.5

$34.0

N/A

N/A

28-Feb-13

Closed

Hostess (Beefsteak Rye Brand)

Grupo Bimbo

Food

$32.8

$32.8

N/A

N/A

27-Feb-13

Closed

Sonoma Custom Crush Facility

Carneros Vintners

Beverages

$12.8

$12.8

N/A

N/A

14-Feb-13

Closed

T. Lauzon

Colabor Group

Food

$13.0

$13.0

N/A

N/A

14-Feb-13

Announced H. J. Heinz

Berkshire; 3G Capital

Food

$28,775.0

$27,668.2

2.4x

13.6x

30-Jan-13

Announced Hostess (Certain Brands & Certain Equipment)

Apollo; C. Dean Metropoulos

Food

$411.0

$411.0

N/A

N/A

28-Jan-13

Announced Hostess (Drake's Brand & Certain Equipment)

McKee Foods

Food

$27.7

$27.7

N/A

N/A

28-Jan-13

Announced Hostess (Four Brands & Certain Equipment)

United States Bakery

Food

$29.1

$29.1

N/A

N/A

(1) Last Twelve Months

Source: Capital IQ

13

M&A Activity: Select Transactions

(US$ in millions)
Date
Announced

Transaction

Transaction Enterprise

Status

Target

Buyer

Subsector

Value

Value

EV/LTM (1)
Revenue

EBITDA

28-Jan-13

Announced Eurofresh

NatureSweet

Agribusiness

$51.7

$51.7

N/A

N/A

21-Jan-13

Announced Beam (Certain Brands)

Luxco

Beverages

$64.6

$64.6

2.2x

N/A

11-Jan-13

Announced Certain Bread Brands and Bakeries

Flowers Foods

Food

$383.8

$383.8

0.4x

N/A

10-Jan-13

Announced New Albertson's

Albertsons

Food Retail

$3,253.9

$3,253.9

N/A

N/A

10-Jan-13

Announced SUPERVALU

Symphony Investors

Food Retail

$252.6

$7,313.2

0.2x

4.5x

8-Jan-13

Closed

Hylife Ltd.

ITOCHU Corp.

Food

$56.7

$169.7

N/A

N/A

3-Jan-13

Closed

Unilever (Skippy Peanut Butter Business)

Hormel Foods

Food

$689.4

$689.4

1.9x

N/A

2-Jan-13

Closed

Queensgate Food Group

The Chefs' Warehouse

Food

$24.0

$24.0

N/A

N/A

20-Dec-12

Announced Westway Group, Inc.

Bishop Infrastructure II Acquisition

Food

$317.3

$310.3

0.7x

6.5x

17-Dec-12

Announced Super Supplements, Inc.

Vitamin Shoppe Mariner, Inc.

Food Retail

$49.2

$49.2

N/A

N/A

17-Dec-12

Announced The Oppenheimer Group

Total Produce plc

Agribusiness

$15.0

$42.9

0.1x

N/A

10-Dec-12

Announced Maple Leaf Foods Inc. (Potatoes Business)

Cavendish Farms Corporation

Food

$60.0

$60.0

0.8x

N/A

10-Dec-12

Closed

J. T. Davenport & Sons, Inc.

Core-Mark Holding Company, Inc.

Food

$37.6

$37.6

0.1x

N/A

3-Dec-12

Closed

Morningstar Foods, LLC

Saputo Cheese USA Inc.

Food

$1,441.2

$1,441.2

0.9x

9.3x

3-Dec-12

Announced WhiteWave Foods Company (Certain Assets)

Morningstar Foods, LLC

Food

$59.6

$59.6

N/A

N/A

27-Nov-12

Announced Ralcorp Holdings Inc.

ConAgra Foods, Inc.

Food

$7,047.6

$6,697.2

1.6x

11.9x

26-Nov-12

Closed

NBTY, Inc.

Food

$77.6

$77.6

N/A

N/A

1-Nov-12

Announced Puratone Corporation

Maple Leaf Foods Inc.

Food

$42.0

$42.0

N/A

N/A

23-Oct-12

Closed

C&C Group plc

Beverages

$302.9

$302.9

N/A

N/A

17-Oct-12

Announced Big Sky Farms, Inc.

Olymel L.P.

Food

$65.3

$65.3

N/A

N/A

19-Sep-12

Closed

Chipita America, Inc. (Certain Brands)

B&G Foods North America, Inc.

Food

$61.0

$61.0

N/A

N/A

5-Sep-12

Closed

Snack Factory, LLC

Snyder's-Lance, Inc.

Food

$337.0

$337.0

N/A

N/A

Balance Bar Company

Vermont Hard Cider Company, LLC

(1) Last Twelve Months

Source: Capital IQ

14

M&A Activity: Select Transactions

(US$ in millions)
Date
Announced

Transaction

Transaction Enterprise

Status

Target

Buyer

Subsector

Value

Value

EV/LTM (1)
Revenue

EBITDA

27-Aug-12

Closed

Shearer's Foods, Inc.

Wind Point Partners; Teachers'; Mistral Equity

Food

$494.7

$494.7

N/A

N/A

14-Aug-12

Closed

Kettle Creations, LLC

BEF Foods, Inc.

Food

$49.6

$49.6

N/A

N/A

13-Aug-12

Closed

Michael's Finer Meats & Seafoods, Inc.

The Chefs' Warehouse Mid-Atlantic, LLC

Food

$71.3

$68.8

0.8x

11.5x

30-Jul-12

Closed

Conopco, Inc. (Certain Business Unit)

ConAgra Foods, Inc.

Food

$267.9

$267.9

0.9x

N/A

9-Jul-12

Closed

Wm. Bolthouse Farms, Inc.

Campbell Investment Company

Agribusiness

$1,581.5

$1,581.5

2.3x

N/A

27-Jun-12

Closed

H.C. Schau & Son Inc.

Greencore Group plc

Food

$19.8

$19.8

0.6x

N/A

8-Jun-12

Closed

Arctic Glacier Holdings, Inc.

H.I.G. Capital, LLC; Bayside Capital, Inc.

Food

$411.0

$411.0

N/A

N/A

4-Jun-12

Closed

Bay Bread LLC

Starbucks Corporation

Food Retail

$104.2

$104.2

N/A

N/A

31-May-12 Closed

Lepage Bakeries, Inc.

Flowers Foods, Inc.

Food

$331.3

$305.9

1.8x

9.7x

31-May-12 Closed

Udi's Healthy Foods, LLC

Boulder Brands, Inc.

Food

$146.7

$146.7

2.4x

23.2x

23-May-12 Closed

Petri Baking Products, Inc.

Ralcorp Holdings Inc.

Food

$86.3

$86.3

1.7x

N/A

22-May-12 Closed

Lactalis American Group, Inc.

Parmalat Belgium SA

Food

$974.1

$942.3

1.1x

N/A

22-May-12 Closed

Kangaroo Brands, Inc. (Pita Chips Business)

ConAgra Foods, Inc.

Food

$48.9

$48.9

2.4x

N/A

18-May-12 Closed

Ocean Nutrition Canada Limited

Royal DSM N.V.

Food

$540.0

$540.0

2.8x

N/A

15-May-12 Closed

NF Foods, LLC

U Save Foods, Inc.

Food Retail

$49.5

$49.5

0.2x

N/A

4-May-12

Closed

Snokist Growers Co-operative

Del Monte Corporation; Pacific Coast Producers

Food

$26.5

$26.5

N/A

N/A

1-May-12

Closed

Solae, LLC

E. I. du Pont de Nemours and Company

Food

$439.8

$1,567.3

N/A

N/A

1-May-12

Closed

Imperial Sugar Co.

Louis Dreyfus Commodities LLC

Food

$145.7

$145.2

0.2x

N/A

23-Apr-12

Closed

GreenLine Foods, Inc.

Apio, Inc.

Agribusiness

$69.6

$69.6

N/A

N/A

Median

0.9x

10.3x

Mean

1.1x

11.1x

(1) Last Twelve Months

Source: Capital IQ

15

Contact Information

About Maison Placements

Maison Placements Canada Inc. (Maison Placements), established in 1955, is an independent Toronto-based
investment dealer providing a range of financial services to institutional investors and corporate clients. The
firm is a member of the Investment Industry Regulatory Organization of Canada and a participating
organization of The Toronto Stock Exchange and TSX Venture Exchange.
About Maison Placements Food and Agribusiness Industry Group
The Maison Placements Food and Agribusiness Industry Group provides advisory services to many leading
participants in the food and agribusiness industry in North America. The firms services include:

Mergers and Acquisitions Advisory

Private Placements

Public Offerings

Valuations and Fairness Opinions

For more information regarding our industry expertise, please contact:

Gino Cozza
Managing Director
O: +1 416 947 6040
C: +1 416 737 3314
gcozza@maisonplacements.com

George Hartman
Managing Director
O: +1 416 947 6040
C: +1 416 889 5451
ghartman@maisonplacements.com

16

The information contained in this presentation has been compiled by Maison Placements from sources believed to be reliable, but no representation or
warranty, express or implied, is made by Maison Placements, its affiliates or any other person as to its accuracy, completeness or correctness. Any
estimates, opinions and other information contained in this presentation constitute Maison Placements judgment as of the date of this presentation, are
subject to change without notice and are provided in good faith but without legal responsibility or liability.
Maison Placements and its affiliates may have an investment banking or other relationship with companies mentioned in this presentation and may trade
in any of the securities mentioned herein either for their own account or the accounts of their customers. Accordingly, Maison Placements or their
affiliates may at any time have a long or short position in any such securities, related securities or in options, futures, or other derivative instruments based
thereon.
This presentation is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities discussed herein
in any jurisdiction where such offer or solicitation would be prohibited. As a result, the securities discussed in this presentation may not be eligible for sale
in some jurisdictions. This presentation is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in
any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction.
This material is prepared for general circulation to clients and does not have regard to the investment objective, financial situation or particular needs of
any particular person. Investors should obtain advice on their own individual circumstances before making an investment decision. To the fullest extent
permitted by law, neither Maison Placements, its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising
from any use of the information contained in this presentation.

Member of Canadian Investor Protection Fund & Investment Industry Regulatory Organization of Canada
Maison Placements I 130 Adelaide Street West I Suite 2116 I Toronto, ON M5H 3P5 I Phone 416.947.6040 I Fax 416.947.6046 I maisonplacements.com