food & agribusiness monthly report | december 2020

FOOD & AGRIBUSINESSMONTHLY INTELLIGENCE REPORT

December 2020

www.stifelib.com

Page | 1

Food & Agribusiness Monthly Intelligence ReportDecember 2020

(1) M&A analytics as of 12/31/20

(2) Dealogic. Rank-eligible SEC registered IPOs and Follow-On offerings since 2010 as of 12/31/20

About Our Firm

#1Middle 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.

Stifel Food & Agribusiness Team

Contact Our Food & Agribusiness Team to Find Out More:

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]

Recent Transactions by Stifel’s Food & Agribusiness Senior Bankers

Page | 2

Report Highlights

Source(s): S&P Capital IQ

TARGET:

BUYER:

M&A Market Overview | Notable Transactions

CLOSED DATE: 12/31/2020 12/1/202012/14/202012/14/2020

ENTERPRISE VALUE: $277M $550M$11,300M$480M

EV / LTM REVENUE: 2.8x NA8.7x2.5x

EV / LTM EBITDA: NA NA25.0x9.6x

Page | 3

Report Highlights


Recommended Reads

Industry Data | One-Month Commodity Price Change

Food-Stockpiling Is Back, with 3,400% Pantry Surge

Agriculture Industry Bets on Carbon as a New Cash Crop

Online Meat Services Boom During the Pandemic

Holiday Shoppers Steered Clear of Stores, Favoring Online Buying

SoybeanPorkOilBeef Corn WheatChicken SugarCoffee

(0.6%)(4.0%)

0.3%

13.6%

7.0%

2.5%

12.2%

6.8%

9.5%

Public Equity Market Overview | One-Year Stock Performance

S&P 500

Agribusiness & Ingredients

Beverages

Branded

Food & Drug Mass

Food Distribution

Fruit & Vegetable

Grocery Retail

Protein & Dairy

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

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

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

https://www.bloomberg.com/news/articles/2020-10-27/second-food-stockpiling-wave-is-here-with-3-400-pantry-surge

https://www.wsj.com/articles/agriculture-industry-bets-on-a-new-cash-crop-carbon-11608719403?mod=searchresults_pos19&page=1

https://www.grocerydive.com/news/online-meat-services-boom-during-the-pandemic/592119/

https://www.wsj.com/articles/holiday-shoppers-steered-clear-of-stores-favoring-online-buying-11608984001?mod=searchresults_pos15&page=1

12/31/2020 Blue Earth Group, LLCAtlanta, GA-based producer of chilled and frozen seafood

products.

Santa Monica Seafood

CompanyPrivate

12/31/2020 Factor75, LLC Batavia, IL-based provider of organic meal-kits. HelloFresh SE (XTRA:HFG) Private

12/30/2020Saddoris Precision Meter

LLC

Shelbyville, IL-based provider of precision agriculture

technologies.Planters Precision LLC Private

12/29/2020

Claremont Ingredients

Limited/David Berryman

Limited

Luton, UK-based and Newcastle, UK-based providers of

liquid and powdered food / beverage ingredients.THG Plc (LSE:THG) Private

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

Announced Food & Agribusiness Transactions | 2014 – YTD 2020

$125,004

$265,337

$65,721

$129,529

$86,667

$40,683 $35,532

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

1,562 1,452

1,134

2014 2015 2016 2017 2018 2019 YTD 2020

Page | 5

M&A Market Overview




12/29/2020Mission Flavors &

Fragrances, Inc.

Foothill Ranch, CA-based producer of custom flavors and

fragrances for food & beverage companies.T. Hasegawa U.S.A. Inc. Private

12/23/2020 Ahern Agribusiness, Inc. San Diego, CA-based supplier of vegetable seeds.Tene Capital; PulseAgri

InvestmentsPrivate

12/23/2020Grimmway Enterprises,

Inc.Bakersfield, CA-based producer of fruits and vegetables.

Teays River Investments,

LLCPrivate

12/22/2020 Legal Sea Foods, LLC Boston, MA-based operator of a seafood restaurant chain. PPX Hospitality Brands Inc Private

12/22/2020 Wahl's Candies Inc.Cheektowaga, NY-based manufacturer of candy and

chocolate.Fowler's Chocolates Inc. Private

12/22/2020 It's All Good Limited Gateshead, UK-based producer of tortilla chips. Valeo Foods Ltd. NVM Private Equity LLP

12/21/2020 Truitt Bros., Inc.Salem, OR-based producer of thermally-processed shelf-

stable foods.

Baxters Food Group

LimitedPrivate

12/21/2020 Beerworks LLC Cincinnati, OH-based brewer of craft beers. March First

Manufacturing, LLCPrivate

12/17/2020 Peckish, LLCSonoma, CA-based producer of boiled egg snacking

products.Egg Innovations, LLC Sonoma Brands

12/17/2020 Snooze, LLCDenver, CO-based operator of restaurants focused on

responsibly sourced ingredients.

Brentwood Associates,

Inc.Private

12/16/2020 Mid America Pet Food LLC Mount Pleasant, TX-based producer of pet food.

TA Associates

Management, L.P.; RX3

Growth Partners

Trinity Hunt Partners, L.P.

12/16/2020Southeastern Paper

Group

Spartanburg, SC-based distributor of paper, grocery and

foodservice disposables.

Fomento Económico

Mexicano, S.A.B. de C.V.

(“FEMSA”)

Private

Page | 6

M&A Market Overview




12/15/2020Essences Bonnie & Don

Flavours ULC

Mississauga, Canada-based manufacturer of natural

flavors, extracts, essential oils and emulsion systems.National Flavors, Inc. Private

12/14/2020 Truco Enterprises, LP Carrollton, TX-based producer of chips, salsas and queso. Utz Brands (NYSE:UTZ)

Constitution Capital

Partners, LLC; Insignia

Capital Group, L.P.

12/14/2020Dunkin' Brands Group,

Inc.

Canton, MA-based operator of three fast-food chains:

Dunkin' Donuts, Mister Donut and Baskin-Robbins. Inspire Brands, Inc. Private

12/11/2020 Red Monkey FoodsSpringfield, MO-based manufacturer of branded and

private-label organic spices and natural seasonings.Norwest Equity Partners

San Francisco Equity

Partners

12/8/2020 Leo's Apples Inc Brooklyn, NY-based distributor of fruits. GrubMarket, Inc. Private

12/8/2020 Urban FarmerManteno, IL-based provider of vegetable infused

ingredients into specialty bakery.Paine Schwartz Partners Private

12/7/2020North American take and

bake pizza divisionChicago, IL-based producer of pizzas.

Great Kitchens Food

Company, Inc.ARYZTA AG (SWX:ARYN)

12/3/2020 Built Brands, LLCSpanish Fork, UT-based producer and distributor of protein

and energy products.

USANA Health Sciences,

Inc. (NYSE:USNA)Private

12/2/2020 Nature's Bakery, LLCReno, NV-based manufacturer and seller of bakery

products.KIND LLC Private

12/2/2020 BFY Brands LLC Middletown, NY-based provider of better-for-you snacks.Frito-Lay North America,

Inc.Permira Advisers Ltd.

12/1/2020Sunterra Horticulture

(CANADA) Inc.

Abbotsford, Canada-based producer of premium Canadian

sphagnum peat moss products. PROFILE Products LLC Private

12/1/2020Windsor Canadian Whisky

BrandCalgary, Canada-based producer of whiskey. Prestige Beverage Group Beam Suntory Inc.

Page | 7

M&A Market Overview




12/1/2020

Crisco® Oils and

Shortening Business of

The J. M. Smucker

Company

Orrville, OH-based provider of cooking oils. B&G Foods (NYSE:BGS)The J. M. Smucker

Company (NYSE:SJM)

11/30/2020The Cholula Food

Company Inc.

Jersey City, NJ-based manufacturer and distributor of hot

sauce.

McCormick & Company,

Inc. (NYSE:MKC)L Catterton Partners

11/30/2020SweetWater Brewing

Company, Inc.Atlanta, GA-based brewer of craft beers. Aphria Inc. (TSX:APHA)

TSG Consumer Partners

LLC

11/23/2020 Bit-O-HoneySaint Paul, MN-based producer of natural honey-flavored

candy.Spangler Candy Company

Pearson Candy Company,

LLC

11/23/2020 Neesvigs Inc.Windsor, WI-based manufacturer of packaged food and

meat products.Fortune Fish Company Inc. Private

11/19/2020Old World Spices &

Seasonings, Inc.

Overland Park, KS-based manufacturer of custom blended

spices, seasonings, sauces and dry food products.

Shore Capital Partners,

LLCPrivate

11/19/2020 Tails LimitedLondon, UK-based producer and seller of premium crafted

and batched cocktails.Bacardi Limited Private

11/19/2020 KIND LLCNew York, NY-based manufacturer of healthy nut and fruit

bars and snacks. Mars, Incorporated Private

11/18/2020McCartney Produce Co.,

Inc.

Paris, TN-based supplier of fresh produce and specialty

food products.FreshEdge, LLC Private

11/18/2020The Organic Candy

Factory

Pacific Palisades, CA-based producer of natural and

organic candy products.Vertical Wellness, Inc. Private

11/16/2020Campbell’s Sweets

Factory

Cleveland, OH-based producer of popcorn, chocolates,

cupcakes and cookies.

b.a. Sweetie Candy

Company, Inc.Private

11/12/2020 Bad Monkey IncQuebec, Canada-based manufacturer of ready-to-eat and

microwavable popcorn.

Champlain Financial

CorporationPrivate

0.5x

1.5x

1.1x

2.2x 2.2x

1.0x

0.6x

1.1x

1.6x 1.4x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

Grocery Retail Ingredients &

Flavors

Natural &

Organic

Non-Alcoholic

Beverages

Pet Products &

Retail

Private Label Protein

Processing

Seafood Snacks,

Confectionary,

& Baked Goods

Vitamins,

Minerals, &

Supplements

0.5x

3.3x

2.1x1.5x

0.9x0.2x

0.9x 0.6x

4.8x

0.7x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

Agribusiness Alcoholic

Beverages

Branded Coffee & Tea Dairy Diversified

Food

Companies

Food & Drug

Mass

Food

Distribution

Food Safety &

Animal Health

Fruit &

Vegetable

84.5% 89.5% 75.4%

84.7% 92.0% 83.0%

74.4% 87.2% 84.4% 84.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100 .0%


Flavors

Natural &

Organic

Non-Alcoholic

Beverages

Pet Products &

Retail


Processing

Seafood Snacks,

Confectionary,

& Baked Goods

Vitamins,

Minerals, &

Supplements

83.1% 88.1% 91.1% 76.6%

86.7% 86.0% 70.5% 76.5%

93.7% 87.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%


Beverages


Food

Companies

Food & Drug

Mass

Food

Distribution

Food Safety &

Animal Health

Fruit &

Vegetable

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

Public Comparables | Trading Metrics (1)

12.0x16.0x

12.3x 11.8x 12.3x8.5x

13.8x 12.3x

20.6x

11.3x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x


Beverages


Food

Companies

Food & Drug

Mass

Food

Distribution

Food Safety &

Animal Health

Fruit &

Vegetable

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

($ in millions)

Public Comparables | Trading Metrics (1)

Offering Date Issuer Ticker Transaction Type Gross Proceeds

8.7x

15.3x

11.8x

16.0x

12.1x9.2x

10.7x12.9x 12.9x

10.1x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x


Flavors

Natural &

Organic

Non-Alcoholic

Beverages

Pet Products &

Retail


Processing

Seafood Snacks,

Confectionary,

& Baked Goods

Vitamins,

Minerals, &

Supplements

12/2/2020 Coca-Cola European Partners plc CCEP Fixed-Income Offering $901.9

12/2/2020 Albertsons Companies, Inc. ACI Fixed-Income Offering $594.0

12/1/2020 Premium Brands Holdings Corporation PBH Follow-on Equity Offering $154.4

11/24/2020 Greencore Group plc GNC Follow-on Equity Offering $120.2

11/20/2020 Nordic Aqua Partners A/S NOAP IPO $65.4

11/20/2020 Reed's, Inc. REED Follow-on Equity Offering $10.5

11/17/2020 Keurig Dr Pepper Inc. KDP Follow-on Equity Offering $1,707.0

11/12/2020 Vital Farms, Inc. VITL Follow-on Equity Offering $151.3

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$0.00

$0.50

$1.00

$1.50

$2.00

$0.00

$3.00

$6.00

$9.00

$12.00

$15.00

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$0.00

$20.00

$40.00

$60.00

$80.00

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

Page | 10

Industry Data


Historical Commodity Prices

SOYBEAN PRICES

$13.11

SUGAR PRICES

$0.15

WHEAT PRICES

$6.41

CORN PRICES

$1.72

BEEF PRICES

$1.40

CHICKEN PRICES

$0.80

OIL PRICES

$48.52

PORK PRICES

$0.70

COFFEE PRICES

$4.84

Page | 11

Food & AgribusinessMonthly Intelligence ReportDecember 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, 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, 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, FARM, LSE:GNC, GRUB, AIM:JET2, 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 report | december 2020

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