food & agribusiness monthly intelligence report

FOOD & AGRIBUSINESSMONTHLY INTELLIGENCE REPORT

August 2020

www.stifelib.com

Page | 1

Food & Agribusiness Monthly Intelligence ReportAugust 2020

(1) M&A analytics as of 4/30/20(2) Dealogic. Rank-eligible SEC registered IPOs and Follow-On offerings since 2010 as of 4/30/20(3) Includes transactions completed by senior bankers at prior firm

About Our Firm

Recent Transactions by Stifel’s Food & Agribusiness Senior Bankers (3)

#2Middle Market Firm

in M&A Transactions Under

$1 Billion (1)

#1Equity Deals Under $1 Billion in Market

Cap (2)

10Dedicated

Consumer & Retail Managing Directors

100+Consumer & Retail M&A Transactions Completed Since

2009

18+Average Years

Experience Across Consumer & Retail

Senior Bankers

Stifel is a full-service investment bank with deep industry experience. We serve as strategic advisorto entrepreneurs, family-owned businesses, private equity groups, and leading public and privatecorporations in North America, Europe, Asia, and Latin America.

Advisor to SellerDecember 2018

Advisor to SellerNovember 2018

Advisor to SellerDecember 2017

Advisor to SellerSeptember 2017

Has Received an Investment from

Has Received an Investment from Has Been Acquired by Has Received an

Investment from

Has Been Acquired by

Advisor to SellerApril 2019

a portfolio company of

Has Acquired

Advisor to BuyerDecember 2018

Page | 2

Report Highlights

Source(s): S&P Capital IQ

Public Equity Market Overview | One-Year Stock Performance

TARGET:

CLOSED DATE:

ENTERPRISE VALUE:

EV / LTM REVENUE:

EV / LTM EBITDA:

8/14/2020

NA

NA

NA

7/9/2020

NA

NA

NA

S&P 500

Agribusiness & Ingredients

Beverages

Branded

Food & Drug Mass

Food Distribution

Fruit & Vegetable

Grocery Retail

Protein & Dairy

BUYER:

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20

7/22/2020

NA

NA

NA

M&A Market Overview | Notable Transactions

Page | 3

Report Highlights


Contact Our Food & Agribusiness Team to Find Out More:

SoybeanPorkOilBeef Corn WheatChicken Sugar

Recommended Reads

Additional Stifel Resources

MICHAEL KOLLENDER

Head of Consumer & Retail, Diversified Industrials(212) [email protected]

ASHISH BURMAN

Head of Consumer & Retail – European Operations+44 (207) [email protected]

ROB HAILE

Managing Director – Food & Agribusiness(617) [email protected]

KC HAZARIKA

Managing Director – Food & Agribusiness(617) [email protected]

SEAN WRIGHT

Vice President(617) [email protected]

JOHN COYNE

Vice President(617) [email protected]

JOHN TILLOTSON

Associate(617) [email protected]

(3.8%)(1.6%)

9.4%

5.8% 8.0%

6.8%

0.2%

4.0%

(6.0%)

(4.0%)

(2.0%)

0.0 %

2.0 %

4.0 %

6.0 %

8.0 %

10. 0%

12. 0%

Industry Data | One-Month Commodity Price Change

How The Pandemic Has Changed Our Grocery Shopping Habits Forever

Why Retailers And CPGs Are Moving Toward Selling Fewer Products In Stores

NYC Restaurants Sue Cuomo, De BlasioFor $2 Billion Over Indoor Dining Ban

Why Are Some Groceries Still So Hard to Find During Covid?

https://www.nytimes.com/2020/04/18/business/coronavirus-meat-slaughterhouses.html?referringSource=articleShare

https://www.washingtonpost.com/business/2020/09/01/grocery-shopping-coronavirus-impact/

https://www.grocerydive.com/news/less-is-more-why-retailers-and-cpgs-are-moving-toward-selling-fewer-produc/581917/

https://www.forbes.com/sites/danielcassady/2020/09/03/nyc-restaurants-against-indoor-dining-ban-sue-cuomo-de-blasio-for-2-billion/#1b16c8344ab5

https://www.wsj.com/articles/why-are-some-groceries-still-so-hard-to-find-during-covid-11597069761

Date Target Name Target Description Acquirer(s) Seller(s)

Page | 4

M&A Market Overview


Aggregate Enterprise Value Total # of Deals

($ in millions; deal count in actual)

Recent Food & Agribusiness M&A Transactions

$125,004

$265,337

$65,721

$129,529

$86,667

$40,683

$8,087

1,572 1,659 1,686 1,711

1,562 1,452

594

(500)

0

500

1,0 00

1,5 00

2,0 00

$0

$50 ,000

$10 0,000

$15 0,000

$20 0,000

$25 0,000

$30 0,000

$35 0,000

$40 0,000

2014 2015 2016 2017 2018 2019 YTD 2020

8/31/2020Global Gourmet Foods Inc.

Richmond, Canada-based processor and supplier of kettle products and ready-to-eat kettle-cooked food.

FGC Foods Ltd. Private

8/27/2020 Red Duck Foods, Inc. Portland, OR-based producer and seller of ketchup. Beaverton Foods, Inc. Private

8/27/2020 Sojourn Cellars Sonoma, CA-based producer of wine. Harrow Cellars Private

8/25/2020Creative Food Ingredients, Inc.

Perry, NY-based producer and seller of baked ingredient products.

Parker Products, LLC Private

Announced Food & Agribusiness Transactions | 2014 – YTD 2020

Page | 5

M&A Market Overview


8/19/2020 Steele Wines, Inc. Kelseyville, CA-based manufacturer and seller of wine. Shannon Ridge, Inc. Private

8/19/2020Waterloo Sparkling Water Corp.

Austin, TX-based producer of sparkling water.

Eurazeo; Flexis Capital; JW Levin Management Partners; Moore Strategic Ventures

CAVU Venture Partners

8/18/2020Business of IM HealthScience LLC

Boca Raton, FL-based producer of dietary products.Nestlé Health Science S.A.

IM HealthScience LLC

8/14/2020 Love Brands, Inc.Ho-Ho-Kus, NJ-based manufacturer of roasted corn products.

FF2032 Fund Private

8/14/2020 Ellison Bakery Inc.Fort Wayne, IN-based producer of cookies and other baked food products.

Tilia Holdings, LLC

Blackford Capital; Concentric Equity Partners; Promus Equity Partners; Baird Capital

8/11/2020 Grand Food Inc. Hayward, CA-based supplier of meat products. GrubMarket, Inc. Private

8/7/2020 Back Bay Trading Ltd.Alpharetta, GA-based manufacturer of tea and coffee ingredients.

Florida Food Products, Inc.

Private

8/4/2020 Orexis Fresh Foods LtdLondon, UK-based producer of chilled ready-to-eat products, including dips, salsa, hummus, and more.

Baxters Food Group Limited

Private

8/4/2020 Cascade Coffee, Inc.Everett, WA-based producer and distributor of roasted and packaged coffee.

Westward Partners, LLC Private

7/31/2020 Brach Holdings LLCCommack, NY-based manufacturer of chocolate and cocoa products.

TruFood Manufacturing Private

7/30/2020Foodservice Business of TMI Trading

Brooklyn, NY-based distributor of foodservice products.Schwan's Food Service, Inc.

TMI Trading Corp.

7/29/2020 Pfyffer Associates, Inc. Santa Cruz, CA-based grower of brussels sprouts. Hitchcock Farms, Inc. Private



Page | 6

M&A Market Overview


7/28/2020 Pronto RestaurantRoyal Oak, MI-based provider of dining services, including catering and cooking classes.

BG Media, Inc. Private

7/22/2020 Gel Spice Co. LLCBeyonne, NJ-based importer and manufacturer of spices, seasonings, and foodservice products.

Olde Thompson Inc. Private

7/21/2020Loveday Mushroom Farms Ltd.

Winnipeg, Canada-based producer of mushrooms.South Mill Mushroom Sales Inc.

Private

7/21/2020 3 Points Urban Brewery Cincinnati, OH-based operator of a brewery.Braxton Brewing Company, LLC

Hickory Wald Group

7/21/2020 Cup Of Coffee Inc. Hackettstown, NJ-based coffee roaster. W B Law & Sons, Inc. Private

7/20/2020 Lounsbury Foods LimitedToronto, Canada-based producer of horseradish and seafood cocktail sauce products.

Giraffe Foods Inc. Private

7/14/2020 Saint Liberty Whiskey Austin, TX-based producer of crafted whiskies. Hands, LLC Private

7/9/2020 Chef's Cut Real JerkyNew York, NY-based producer and seller of steak and chicken jerkies.

Sonoma BrandsClearlake Capital Group, L.P.; CAVU Venture Partners

7/7/2020 Cali Fresh Produce Inc.San Francisco, CA-based producer and distributor of fruits and vegetables.

GrubMarket, Inc. Private

7/2/2020 Henningsen Foods, Inc.Omaha, NE-based provider of specialty egg, meat, and poultry products.

Michael Foods of Delaware, Inc.

Kifuki U.S.A. Co., Inc.

6/25/2020 Flavors Holdings Inc.New York, NY-based manufacturer and marketer of tabletop sweeteners.

Whole Earth Brands, Inc. (NasdaqCM:FREE)

MacAndrews & Forbes Holdings, Inc.

6/22/2020Radiant Pig Beer Company LLC

New York, NY-based producer and distributor of beer.Coastal Extreme Brewing Company, LLC

Private



Page | 7

M&A Market Overview


6/22/2020 Nestlé Vera s.r.l.Santo Stefano Quisquina, Italy-based producer and marketer of bottled water and non-alcoholic beverages.

Acqua Vera S.p.A. Sanpellegrino S.p.A.

6/19/2020Deleon's Bromeliads, Inc.

Goulds, FL-based grower of bromeliads and orchids. Costa Farms, LLC Private

6/18/2020 All in Foods, SASaint-Herblain, France-based producer of plant-based cheese products.

Fromageries Bel SA (ENXTPA:FBEL)

Private

6/15/2020 Osage Gardens Inc.New Castle, CO-based producer of organically grown culinary herbs and vegetables.

West Lake Creek Company, LLC

Private

6/12/2020Rude Health Foods Limited

London, UK-based producer of cereals, porridge, organic dairy-free snacks, and other snack products.

PepsiCo, Inc. (NasdaqGS:PEP)

Private

6/10/2020Pennsylvania Dutch Candies

Camp Hill, PA-based producer and distributor of snacks and confectionary food products.

Nassau Candy, Inc. The Warrell Corporation

6/9/2020 Divine Chocolate Ltd.London, UK-based producer and seller of chocolate and cocoa bars.

Ludwig Weinrich GmbH & Co. KG

Private

6/8/2020 Westroot TavernSan Diego, CA-based owner and operator of a restaurant.

Cohn Restaurant Group, Inc.

Verant Group LLC

6/6/2020 Hydra Beer Company Sioux Falls, SD-based producer of beer. Lupulin Brewing LLC Private

6/1/2020 Dyna-Gro, Inc.Richmond, CA-based producer and distributor of liquid plant nutrient products.

Plantation Products, LLC Private

5/28/2020 White Whale Group LLC Denver, CO-based producer and seller of coffee.SCB Global Java Holdings, LLC

Private

5/27/2020 Willie Bird Turkeys, Inc.Sonoma, CA-based producer and supplier of turkey products.

Diestel Turkey Ranch Private



Page | 8

Public Equity Market Overview

Source(s): S&P Capital IQ(1) See page 11 for further details on public comparables

Median % of 52-Week High

Median EV / LTM Revenue

84.0% 86.0% 79.1% 82.4% 95.3% 97.1%

80.9% 81.2% 82.4% 86.0%

0.0 %

20. 0%

40. 0%

60. 0%

80. 0%

100 .0%

120 .0%

Grocery Retail Ingredients &Flavors

Natural &Organic

Non-AlcoholicBeverages

Pet Products &Retail

Private Label ProteinProcessing

Seafood Snacks,Confectionary,

& BakedGoods

Vitamins,Minerals, &

Supplements

0.5x

2.8x2.3x

1.4x0.9x

0.2x 0.7x 0.4x

5.0x

0.7x

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

Agribusiness AlcoholicBeverages

Branded Coffee & Tea Dairy DiversifiedFood

Companies

Food & DrugMass

FoodDistribution

Food Safety &Animal Health

Fruit &Vegetable

0.5x

1.3x0.9x

2.1x 2.1x

1.0x0.7x

1.2x1.6x

1.4x

0.0 x

0.5 x

1.0 x

1.5 x

2.0 x

2.5 x


Natural &Organic





& BakedGoods


Supplements

Public Comparables | Trading Metrics (1)

74.9% 79.9% 91.6% 86.0% 81.0% 80.0%

58.9% 60.9%

92.0% 84.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%



Companies

Food & DrugMass

FoodDistribution

Food Safety& Animal

Health

Fruit &Vegetable

8/17/2020 Keurig Dr Pepper Inc. KDP Follow-on Equity Offering $1,311.8

8/19/2020 Cal-Maine Foods, Inc. CALM Follow-on Equity Offering $234.0

7/30/2020 Vital Farms, Inc. VITL IPO $204.7

7/1/2020 Denny's Corporation DENN Follow-on Equity Offering $73.2

7/16/2020 Premium Brands Holdings Corporation TSX:PBH Follow-on Equity Offering $88.7

6/25/2020 Young & Co.'s Brewery, P.L.C. YNGA Follow-on Equity Offering $106.1

6/25/2020 Revolution Bars Group plc RBG Follow-on Equity Offering $7.5

6/25/2020 Albertsons Companies, Inc. ACI IPO $800.0

Page | 9

Public Equity Market Overview

Source(s): S&P Capital IQ(1) See page 11 for further details on public comparables

Median EV / LTM EBITDA

Recent Food & Agribusiness Equity Offerings

8.5x

15.5x12.4x

16.6x13.1x

9.5x 9.7x 11.3x15.3x

10.6x

0.0 x

2.0 x

4.0 x

6.0 x

8.0 x

10. 0x

12. 0x

14. 0x

16. 0x

18. 0x


Natural &Organic





& BakedGoods


Supplements

12.0x15.4x

13.4x 12.8x 12.9x

7.9x11.6x 12.5x

18.6x

10.9x

0.0 x

2.0 x

4.0 x

6.0 x

8.0 x

10. 0x

12. 0x

14. 0x

16. 0x

18. 0x

20. 0x



Companies

Food & DrugMass

FoodDistribution

Food Safety &Animal Health

Fruit &Vegetable

($ in millions)

Public Comparables | Trading Metrics (1)

Offering Date Issuer Ticker Transaction Type Gross Proceeds

Page | 10

Industry Data


$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20$0.00

$20.00

$40.00

$60.00

$80.00

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

CORN PRICES

$3.58

OIL PRICES

$42.61

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00


$3.00

$6.00

$9.00

$12.00

$15.00


PORK PRICES

$0.54

SOYBEAN PRICES

$9.54

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25


$2.00

$4.00

$6.00

$8.00


SUGAR PRICES

$0.13

WHEAT PRICES

$5.52

$0.00

$0.50

$1.00

$1.50


BEEF PRICES

$1.41

CHICKEN PRICES

$0.64

Historical Commodity Prices

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50


Page | 11

Food & AgribusinessMonthly Intelligence ReportAugust 2020

Stifel collectively refers to Stifel, Nicolaus & Company, Incorporated and other affiliated broker-dealer subsidiaries of Stifel Financial Corp. The information and statistical data contained herein have been obtained from sources that Stifel believes are reliable, but Stifel makes no representation or warranty as to the accuracy or completeness of any such information or data and expressly disclaims any and all liability relating to or resulting from your use of these materials. The information and data contained herein are current only as of the date(s) indicated, and Stifel has no intention, obligation, or duty to update these materials after such date(s). These materials do not constitute an offer to sell or the solicitation of an offer to buy any securities, and Stifel is not soliciting any action based on this material. Stifel may be a market-maker in certain of these securities, and Stifel may have provided investment banking services to certain of the companies listed herein. Stifel and/or its respective officers, directors, employees, and affiliates may at any time hold a long or short position in any of these securities and may from time-to-time purchase or sell such securities. This material was prepared by Stifel Investment Banking and is not the product of the Stifel Research Department. It is not a research report, and should not be construed as such. This material may not be distributed without Stifel's prior written consent.

Copyright 2020 Stifel, Nicolaus & Company, Incorporated. All rights reserved.

• Agribusiness: RYCE, ADM, DB:BYW, BG, CVGW, CF, SET:CPF, DAR, FDP, ASX:GNC, JBSS, TSE:8002, SGX:O32, ANDE, MOS, SGX:F34

• Alcoholic Beverages: ENXTPA:ADVI, BOVESPA:ABEV3, ENXTBR:ABI, TSE:2502, ASX:AVG, BF.B, CPSE:CARL B, SNSE:CCU, STZ, BREW, BIT:CPR, LSE:DGE, ENXTAM:HEIA, TSE:2503, SHSE:600519, ENXTPA:ALLAN, ENXTPA:MBWS, TAP, ENXTPA:RI, ENXTPA:RCO, TSE:2501, XTRA:SWA, LSE:STCK, SAM, ASX:TWE, OTCPK:THST, SEHK:168, ENXTPA:VRAP, WVVI

• Branded: TSE:2802, RYCE, HLSE:ATRAV, BGS, TSE:2229, CPB, SEHK:506, CAG, BME:EBRO, DB:NLM, GIS, HRL, TSE:2810, K, TSE:2809, TSE:2801, LANC, ENXTBR:LOTB, TSX:MFI, MDLZ, SWX:NESN, TSE:2871, TSE:2897, NOMD, OB:ORK, PEP, POST, LSE:PFD, TXS:PBH, HLSE:RAIVV, TASE:STRS, ENXTBR:TERB, HSY, SJM, KHC, JSE:TBS, SEHK:322, LSE:ULVR, SEHK:151, TSE:2267

• Coffee & Tea: DTEA, DNKN, FARM, BSE:500166, TSE:2593, BIT:MZB, BSE:532654, ASX:RFG, SBUX, TSE:2587, BSE:500800, SJM, LSE:WTB

• Dairy: ASX:BGA, SEHK:2319, ENXTPA:BN, OTCPK:DFOD.Q, EMMN, ENXTPA:FBEL, ISE:GL9, SWX:HOCN, LWAY, TSE:2270, TSE:2201, TSX:SAP, ENXTPA:SAVE, ENXTPA:UNBL

• Diversified Food Companies: LSE:ABF, TSE9869, TSE:7451, SGX:O32

• Food & Drug Mass: TSX:ATD.B, CASY, AIM:CVSG, DK, GNC, RAD, WBA

• Food Distribution: DIT, ARMK, JSE:BVT, CORE, AIM:DTG, FARM, LSE:GNC, GRUB, BIT:MARR, ASX:MTS, PFGC, ENXTAM:SLIGR, SGRP, SPTN, SYY, CHEF, UNFI, USFD

• Food Safety & Animal Health: AIM:ANP, LLY, ENXTPA:ERF, MRK, NEOG, PAHC, ZTS

• Fruit & Vegetable: ALCO, ENXTPA:BON, CVGW, ASX:CGC, FDP, ENXTBR:GREEN, TSE:1379, BIT:LD, LMNR, MLP, SENE.A, NZSE:TGG, ISE:T70

• Grocery Retail: SGX:D01, IMKT.A, LSE:SBRY, ENXTAM:AD, TSX:L, ASX:MTS, MRU, NGVC, LSE:OCDO, JSE:SHP, SPTN, SFM, LSE:TSCO, KR, VLGE.A, WMK, LSE:MRW

• Ingredients & Flavors: OM:AAK, LSE:ABF, CPSE:CHR, DAR, TSE:2607, SWX:GIVN, ISE:GL9, INGR, IFF, ISE:KRZ, TSE2809, MKC, TSE:2001, TSE:2002, OB:ORK, AIM:RGD, SXT, TSX:SOY, XTRA:SY1, TSE:4958, TSE:4914, LSE:TATE, LSE:TET

• Natural & Organic: LWAY, NGVC, HLSE:RAIVV, SFM, NZSE:SML, HAIN, UNFI, VITL

• Non-Alcoholic Beverages: LSE:BAG, BMV:AC *, LSE:BVIC, AIM:FEVR, BMV:FEMSA UBD, TSE:2593, JSDA, KDP, LAS.A, MNST, FIZZ, AIM:NICL, PEP, REED, TSE:2587, KO

• Pet Products & Retail: CENT, CHWY, FRPT, GIS, SWX:NESN, PETS, LSE:PETS, PAHC, SPB, SJM, DB:ZO1

• Private Label: FLO, SENE.A, THS

• Protein Processing: BYND, BRFS3, CALM, SET:CPF, SEHK:1068, LSE:CWK, SZSE:000895, HLSE:HKSAV, HRL, BOVESPA:JBSS3, ENXTPA:LOUP, BOVESPA:MRFG3, TSE:2288, BOVESPA:BEEF3, TSE:2282, PPC, JSE:RCL, SAFM, OM:SCST, SEB, ENXTBR:TERB, TSN, VITL

• Seafood: SET:ASIAN, BVL:AUSTRAC1, TSX:CLR, KOSE:A049770, OB:GSF, TSX:HLF, OB:LSG, OB:MOWI, TSE:8002, TSE:1333, TSE:2871, NOMD, OB:SALM, OB:SSC

• Snacks, Confectionary, & Baked Goods: SWX:ARYN, SWX:BARN, TSE:2229, SWX:LISN, OM:CLA B, TSE:2206, AIM:FIF, FLO, TXS:WN, BMW:BIMBO A, AIM:HOTC, JJSF, JBSS, LANC, KOSE:A004990, ENXTBR:LOTB, TSE:2201, SWX:NESN, OB:ORK, AIM:RGD, HSY, SMPL, TR, TSE:2212

• Vitamins, Minerals, & Supplements: ASX:BKL, CPSE:CHR, BIT:ENV, GNC, HLF, ENXTAM:DSM, LFVN, MED, NATR, NUS, PRGO, AIM:SIS, USNA, WW

Footnote Details & Disclosure

food & agribusiness monthly intelligence report

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