Agribusiness Report Q2 2016 - SDR Ventures...AGRIBUSINESS REPORT Q2 2016 Explore M&A Activity,...

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AGRIBUSINESS REPORT

Q2 2016

Explore M&A Activity, Capital Market Conditions and Current Trends for the

Agribusiness Industry

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720.221.9220 | SDRVENTURES.COMInvestment Banking and Securities Offered Through SDR Capital Markets, Inc., Member FINRA and SIPC.

AGRIBUSINESS REPORTQ2 2016 | VOL 1 | ISSUE 1

NEW INDUSTRY OF FOCUSThis quarter, we are pleased to introduce the Agribusiness Report to our line ofquarterly industry reports. With the growing importance of the agriculturalindustry as part of the overall economy, we would like to keep you up to dateon the latest M&A trends and activities in the space.

Q2 INDUSTRY UPDATECrop commodity prices generally remain at stubbornly low levels, despite aspring rally which had raised hopes that the industry was nearing the end ofthis part of the ag commodity cycle. Purdue University’s Ag Sentiment Index, amonthly survey of producers, improved slightly; however, pessimism remainswidespread across most of the major sub-sectors. U.S. net farm income isexpected to come in at $54B for 2016, down 3% from 2015 and the lowestlevel since 2002, after hitting new record highs in 2012/2013. Whilecommodity crop producers have been struggling with low prices for the lastcouple of years, they are also now experiencing low prices in the poultry, redmeat and dairy segments.

We attended the Farm Equipment Manufacturers Association’s spring clinic inApril, where members are reporting reduced sales compared to last year. Thisis true especially on large ticket items such as tractors, planters and combines.Smaller ticket items and replacement parts have been affected to a lesserdegree. The Association of Equipment Manufacturers reported YTD sales ofhigh horsepower tractors and combines down 24% and 28%, respectively.

With tight margins, producers continue to be frugal by limiting expenditures toessential inputs and by deferring upgrades to equipment and facilities.

KEY TRENDSDeclining sales have narrowed margins, and in many cases have driven a waveof consolidations across the Agribusiness industry, such as farm machinerymanufacturers and dealers, crop protection, biotechnology and seedcompanies, as well as fertilizer producers.

Investments in ag technology companies continue to be robust in spite of thecurrent market conditions, as companies race to establish stronger positions inthe use of precision ag data, UAVs/drones, robotics, sensors, softwareapplications, smart irrigation, satellite imagery, biologicals and biotechnology.The U.S. Federal Aviation Administration released its long-awaited final rulingon the commercial use of drones, which will take effect in August. This willopen the door to a host of applications in production agriculture.

Fruit and vegetable producers, packers and processors continue to prepare forexpected requirements for traceability under the Food Safety ModernizationAct. This is driving the development and application of technologies such asRFID and automation systems in food and agriculture production, up and downthe entire supply chain.

2

The information contained herein is based on sources we believe reliable but is not guaranteed by us and is not to be considered all-inclusive. It is notto be construed as an offer or consultation of an offer to sell or buy any securities.

Established in 2002, SDR Ventures hasdeveloped deep M&A and capitaltransaction knowledge and expertise.SDR offers transaction advisory, privatecapital formation and businessconsulting services across a wide rangeof industries. We serve business ownersand operators of privately heldcompanies and provide them with aprofessional-class experience.

ABOUT SDR

Transaction ActivityActive BuyersPublic BasketM&A Market ActivityAbout SDR Ventures

AGRIBUSINESS CONTACTS

CONTENTS

Travis ConwayManaging Director –Agribusiness [email protected]

Eric BosveldDirector –Agribusiness [email protected]

Ben RudmanDirector –Agribusiness [email protected]


mailto:[email protected]



720.221.9220 | SDRVENTURES.COMInvestment Banking and Securities Offered Through SDR Capital Markets, Inc., Member FINRA and SIPC.


Finally, new requirements in Canada and the U.S. to phase out the use of antibiotics in feed for prophylactic disease preventionand growth-promoting purposes are driving the development of a host of alternative products as replacements.

KEY M&A TRANSACTIONSBayer’s recently sweetened offer of almost $65B for seed and biotech giant Monsanto comes amid similar planned deals in thecrop protection, seed and biotech space, such as the Dow-Dupont merger and ChemChina’s proposed acquisition of Syngenta.Generally, the strength of Bayer’s crop protection business is seen as being highly complimentary to Monsanto’s strength inseed and biotechnology; however, some pundits question whether a clash of cultures will make this a good deal. Manyobstacles remain, not the least of which is acceptance by Monsanto of the offering price and BASF’s entrance as a potentialcontender.

In May, Kubota agreed to acquire Great Plains Manufacturing for $430 million. Great Plains manufactures a wide range of farmimplements, including planters, seeders, drills and tillage equipment, including the “Land Pride” grounds maintenance brand.This is a major move for Kubota in becoming a truly “full-line” manufacturer. While the acquisition is seen as a naturalprogression of what had already been a strong alliance, resolution of channel conflicts within the dealer network will need to beworked out.

Finally, Milk Specialities Global recently announced that it will be acquired by private equity firm American Securities. Withover 700 employees and nine production facilities across the U.S., Milk Specialties Global is a major manufacturer of humansport nutrition products such as whey and milk protein ingredients, as well milk replacers, functional fats, proteins andcarbohydrates for food production animals.

3

The information contained herein is based on sources we believe reliable but is not guaranteed by us and is not to be considered all-inclusive. It is notto be construed as an offer or consultation of an offer to sell or buy any securities.


720.221.9220 | SDRVENTURES.COM


Investment Banking and Securities Offered Through SDR Capital Markets, Inc., Member FINRA and SIPC.

Date Target Buyer(s) SegmentAmount($ in Mil)

TEV/Rev

TEV/EBITDA

6/30/2016 Oragenics Inc. Intrexon Corporation ; Koski Family Limited Partnership

Animal Health and Nutrition

3 - -

6/14/2016 ECOTIERRA INC. Desjardins Business Capital régional et coopératif

Agricultural Technology Services

1 - -

6/9/2016 Brooks Peanut Company, Inc. Olam International Limited

Produce 85 - -

6/8/2016 Jaguar Animal Health, Inc. Aspire Capital Partners, LLC

Animal Health and Nutrition

15 - -

6/7/2016 Migao Corporation 2521416 Ontario Inc. Crop/ Turf/ Ornamental Inputs

252 0.63x -

5/30/2016 Laguna Dairy, S. de R.L. de C.V. Grupo Lala, S.A.B. de C.V.

Dairy 246 - -

Strategic44%Financial

56%

4

ACCESS FULL LISTNote: These data represent recorded transactions only, and are not all-inclusive. Nevertheless, they are typically representative of the industry.

4

28

11 4 1 8 10

18 14

10 -

10 20 30

5 or more transactions

3-4 transactions

1-2 transactions

0 transactions

TRANSACTIONS BY SEGMENT TRANSACTIONS BY TYPE

TRANSACTIONS BY LOCATION

TRANSACTION ACTIVITY

Source: S&P Capital IQ







Financial Buyer Inv. Date Platform Investment(s) Select Holdings

Aspire Capital Partners, LLC 6/8/2016 Jaguar Animal Health, Inc. • Jaguar Animal Health, Inc. (NasdaqCM:JAGX)Lariat Partners 4/20/2016 Various • Willowood USA LLC

11/13/2016 • Northern Seed, LLCAmerican Securities 6/27/2016 Blount International Inc. • Milk Specialties Company

12/10/2015 • Blount International Inc.EMR Capital Pty Ltd 5/2/2016 Various • Crystal Peak Minerals Inc. (TSXV:CPM)

5/11/2015 • Highfield Resources Limited (ASX:HFR)CAVU Venture Partners 5/9/2016 Various • Lyrical Foods, Inc.

4/29/2016 • Chef's Cut Real Jerky3/8/2016 • good culture, LLC3/4/2016 • Health-Ade, LLC8/26/2015 • High Brew Coffee, Inc.

5

ACTIVE BUYERSMOST ACTIVE STRATEGIC BUYERS

Note: These data represent recorded transactions only, and are not all-inclusive. Nevertheless, they are typically representative of the industry.

SELECT SPONSORS WITH ACTIVE PORTFOLIO HOLDINGSSource: S&P Capital IQ


Strategic Buyer Inv. Date Select Corporate Acquisitions

SiteOne Landscape Supply, Inc. (NYSE:SITE) 4/5/2016 • Blue Max Materials, Inc.1/4/2016 • Hydro-Scape Products, Inc.8/31/2015 • Tieco, Inc.8/5/2015 • Green Resource, LLC5/8/2015 • AMC Industries, Inc.

Premier Tech Ltd. 5/26/2016 • Manufacturing Facility located in Mattaponi12/1/2015 • Smurfit Kappa Comptoir du Pin, Tree Bark Division6/2/2015 • Agrium Advanced Technologies, Inc.10/28/2014 • Conder Solutions Ltd3/11/2013 • SA FALIENOR

Farmland Partners Inc. (NYSE:FPI) 5/9/2016 • Three Farms Totalling 1,111 Acres in Georgia and Mississippi4/4/2016 • 7,400 Acre Farm in Lousiana3/2/2016 • 1254 Farms in Five States12/31/2015 • 22,300 Acres of Farmland in Illinios12/31/2015 • 1,367 Acres of Three Farm Lands in Georgia

Ag Growth International Inc. (TSX:AFN) 3/13/2016 • NuVision Industries Inc.3/9/2016 • Entringer Industrial S.A.11/30/2015 • G J VIS Enterprises Inc.5/20/2015 • Westeel Limited10/3/2011 • Airlance Inc.

The Davey Tree Expert Company 4/15/2016 • Jones Bros. Tree & Landscape Co., Inc.4/23/2015 • Kerns Brothers Tree Services & Landscaping, LLC4/2/2015 • Nature First Tree Care, Inc.7/31/2014 • Lawn Logic, LLC4/1/2014 • Wetland Studies and Solutions, Inc.





PUBLIC BASKET

6

DIVERSIFIED AGRIBUSINESS


AGRIBUSINESS SEGMENTS VS. S&P 500Running 12 Months

Company Name Symbol State Market Cap($ in Mil) Price Stock Price

Quarter Change YTD Change Price/LMT EPS

Price/ Book

TEV/ Rev

TEV/ EBITDA

Archer-Daniels-Midland NYSE:ADM IL $25,201 $43 18.1% 17% 24.1x 1.4x 0.5x 10.4x

Bunge Limited NYSE:BG NY $8,263 $59 4.4% -13% 14.6x 1.4x 0.3x 7.6x

Seaboard Corp. AMEX:SEB KS $3,360 $2,871 -4.4% -1% 20.4x 1.2x 0.5x 9.2x

The Andersons, Inc. NasdaqGS:ANDE OH $993 $36 13.1% 12% 33.1x 1.3x 0.4x 13.9x

Alico Inc. NasdaqGS:ALCO FL $251 $30 9.6% -22% 14.5x 1.5x 2.8x 8.5x

Limoneira Company NasdaqGS:LMNR CA $250 $18 15.9% 18% NM 2.1x 3.8x 99.7x

Agria Corporation NYSE:GRO N/A $48 $1 -12.1% -37% NM 1.0x 0.4x 8.0x

Archer-Daniels-Midland NYSE:ADM IL $25,201 $43 18.1% 17% 24.1x 1.4x 0.5x 10.4x



Segment Average $5,481 6.4% -3.7% 21.3x 1.4x 1.2x 22.5x



-20%

-15%

-10%

-5%

0%

5%

10%

15%

6/30/2015 8/31/2015 10/31/2015 12/31/2015 2/29/2016 4/30/2016 6/30/2016

Diversified Agribusiness Crop/ Turf/ Ornamental Inputs Animal Health and NutritionMachinery and Equipment Distribution Agricultural Technology ServicesDairy Produce ProteinsOilseeds and Ingredients S&P 500

ANIMAL HEALTH AND NUTRITION



Price/ Book

TEV/ Rev

TEV/ EBITDA

Merck & Co. Inc. NYSE:MRK NJ $159,466 $58 8.9% 9% 32.5x 3.6x 4.4x 11.8x

Archer-Daniels-Midland Company

NYSE:ADM IL $25,201 $43 18.1% 17% 24.1x 1.4x 0.5x 10.4x

Zoetis Inc. NYSE:ZTS NJ $23,550 $47 7.1% -1% 31.8x 20.2x 5.7x 18.0x

Ingredion Incorporated NYSE:INGR IL $9,316 $129 21.2% 35% 22.3x 4.1x 1.9x 11.3x

The Mosaic Company NYSE:MOS MN $9,158 $26 -3.0% -5% 15.2x 0.9x 1.4x 6.4x

IDEXX Laboratories, Inc. NasdaqGS:IDXX ME $8,314 $93 18.6% 27% 49.0x NM 5.6x 24.1x

Patterson Companies, Inc. NasdaqGS:PDCO MN $4,626 $48 2.9% 6% 23.8x 3.2x 1.0x 12.5x

Darling Ingredients Inc. NYSE:DAR TX $2,452 $15 13.1% 42% 41.6x 1.3x 1.3x 8.8x

Neogen Corp. NasdaqGS:NEOG MI $2,111 $56 11.7% 0% 62.4x 5.4x 6.4x 29.6x

Balchem Corp. Nasdaq:BCPC NY $1,883 $60 -3.8% -2% 36.8x 3.9x 4.0x 17.0x

Segment Average $5,616 6.6% (0.6%) 38.2x 4.2x 3.0x 20.6x






PUBLIC BASKET (CONTINUED)

7


The Scotts Miracle-GroCompany

NYSE:SMG OH $4,280 $70 -3.9% 8% 16.9x 6.3x 1.9x 11.4x

Compass Minerals International Inc.

NYSE:CMP KS $2,506 $74 4.7% -1% 19.7x 3.6x 3.0x 10.8x

Platform Specialty Products Corporation

NYSE:PAH FL $2,038 $9 3.3% -31% NM 0.9x 2.8x 12.8x

Terra Nitrogen Company, L.P.

NYSE:TNH IL $1,954 $105 -6.0% 3% 27.5x 6.9x 3.5x 6.0x

Central Garden & Pet Company

Nasdaq:CENT CA $1,109 $23 39.7% 69% 27.2x 2.2x 0.9x 10.3x


CVR Partners, LP NYSE:UAN TX $926 $8 -2.3% 2% 17.8x 1.6x 3.7x 11.2x

American Vanguard Corp. NYSE:AVD CA $440 $15 -4.2% 8% 55.8x 1.6x 1.7x 13.5x

AgroFresh Solutions, Inc. NasdaqGS:AGFS PA $265 $5 -17.0% -16% NM 0.6x 3.8x 13.2x

Agrinos AS OTCNO: AGRI N/A $143 $2 -22.0% -65% NM NM 4.6x NM




DISTRIBUTION (AGRICULTURAL, HORTICULTURAL, GREEN SPACE PRODUCTS)



Price/ Book

TEV/ Rev

TEV/ EBITDA

Agrium Inc. NYSE:AGU AB $16,151 $90 2.4% 1% 0.0x 0.0x 1.2x 8.5x

Tractor Supply Company NasdaqGS:TSCO TN $12,166 $91 0.8% 7% 30.0x 9.0x 1.9x 15.6x

The Scotts Miracle-GroCompany

NYSE:SMG OH $4,280 $70 -3.9% 8% 16.9x 6.3x 1.9x 11.4x


Agria Corporation NYSE:GRO N/A $48 $1 -12.1% -37% NM 1.0x 0.4x 8.0x


CROP INPUTS (SEEDS, CROP PROTECTION, CROP NUTRITION)



Price/ Book

TEV/ Rev

TEV/ EBITDA

E. I. du Pont de Nemours and Company

NYSE:DD DE $56,633 $65 2.3% -3% 34.8x 5.6x 2.5x 15.1x

The Dow Chemical Company NYSE:DOW MI $55,963 $50 -2.3% -3% 17.5x 2.6x 1.5x 7.9x

Monsanto Company NYSE:MON MO $45,250 $103 17.9% 5% 31.9x 8.9x 4.1x 15.1x

Syngenta AG NYSE:SYT N/A $34,045 $77 -7.3% -2% 0.0x 0.0x 2.7x 13.2x

Potash Corporation of Saskatchewan Inc.

NYSE:POT SK $17,628 $16 -4.6% -5% 0.0x 0.0x 3.4x 8.4x

Agrium Inc. NYSE:AGU AB $16,151 $90 2.4% 1% 0.0x 0.0x 1.2x 8.5x

The Mosaic Company NYSE:MOS MN $9,158 $26 -3.0% -5% 15.2x 0.9x 1.4x 6.4x


FMC Corp. NYSE:FMC PA $6,194 $46 14.7% 18% 23.5x 3.2x 2.4x 12.7x

CF Industries Holdings, NYSE:CF IL $5,618 $24 -23.1% -41% 10.6x 1.4x 2.7x 7.3x




Investment Banking and Securities Offered Through SDR Capital Markets, Inc., Member FINRA and SIPC. 8

MACHINERY & EQUIPMENT





Price/ Book

TEV/ Rev

TEV/ EBITDA

Deere & Company NYSE:DE IL $25,468 $81 5.3% 6% 18.4x 3.6x 2.2x 15.8x

CNH Industrial N.V. NYSE:CNHI N/A $9,729 $7 5.8% 5% 21.8x 1.4x 1.2x 14.1x

The Toro Company NYSE:TTC MN $4,854 $88 2.4% 21% 24.7x 8.6x 2.1x 12.7x

AGCO Corporation NYSE:AGCO GA $3,887 $47 -5.2% 4% 20.2x 1.4x 0.7x 7.9x

Valmont Industries, Inc. NYSE:VMI NE $3,069 $135 9.2% 28% 27.6x 3.3x 1.4x 11.0x

Advanced Drainage Systems, Inc.

NYSE: WMS OH $1,490 $27 28.5% 14% 72.2x 7.0x 1.7x 14.6x

Alamo Group, Inc. NYSE:ALG TX $755 $66 18.4% 27% 16.0x 2.0x 1.0x 8.4x

Lindsay Corporation NYSE:LNN NE $731 $68 -5.2% -6% 58.6x 2.9x 1.5x 17.2x

Raven Industries Inc. NasdaqGS:RAVN SD $685 $19 18.2% 21% 63.9x 2.6x 2.5x 18.4x

Ag Growth International Inc. TSX: AFN MB $601 $41 17.9% 23% 117.5x 2.6x 1.9x 18.2x

Titan International Inc. NYSE:TWI IL $335 $6 15.2% 57% NM 1.0x 0.6x 21.0x

Titan Machinery, Inc. NasdaqGS:TITN ND $236 $11 -3.5% 2% NM 0.7x 0.6x 21.0x

Cervus Equipment Corporation

TSX: CVL AB $176 $11 2.4% -15% 16.1x 0.9x 0.5x 10.4x

Rocky Mountain Dealerships, Inc.

TSX:RME AB $136 $7 20.1% 13% 15.9x 0.8x 0.6x 14.0x

Paul Mueller Co. OTCPK:MUEL MO $36 $29 -3.4% 7% 4.9x 1.1x 0.3x 2.7x

Bion Environmental Technologies Inc.

OTCPK:BNET CO $20 $1 11.3% 20% NM NM NM NM

Art's-Way Manufacturing Co. Inc.

NasdaqCM:ARTW IA $12 $3 0.3% -5% NM 0.7x 0.7x 62.4x

Tytan Holdings, Inc. OTCPK:TYTN WA $0 $0 220.0% 45% NM 0.1x 0.0x NM

Segment Average $2,901 19.9% 14.8% 36.8x 2.4x 1.1x 16.9x


DAIRY

AGRICULTURAL TECHNOLOGY



Price/ Book

TEV/ Rev

TEV/ EBITDA

IDEXX Laboratories, Inc. NasdaqGS:IDXX ME $8,314 $93 18.6% 27% 49.0x NM 5.6x 24.1x

Raven Industries Inc. NasdaqGS:RAVN SD $685 $19 18.2% 21% 63.9x 2.6x 2.5x 18.4x

Arcadia Biosciences, Inc. NasdaqGM:RKDA CA $115 $3 -6.8% -15% NM 3.2x 16.4x NM

Iteris, Inc. NasdaqCM:ITI CA $92 $3 17.2% 33% NM 2.1x 1.0x NM

Origin Agritech Limited NasdaqGS:SEED N/A $41 $2 34.8% 24% NM 1.4x 1.5x 22.3x

Marrone Bio Innovations, Inc. NasdaqGM:MBII CA $20 $1 -8.9% -25% NM NM 6.7x NM

Bion Environmental Technologies Inc.

OTCPK:BNET CO $20 $1 11.3% 20% NM NM NM NM




Price/ Book

TEV/ Rev

TEV/ EBITDA

The WhiteWave Foods Company

NYSE:WWAV CO $8,305 $47 15.5% 21% 49.1x 6.3x 2.6x 22.2x

Dean Foods Company NYSE:DF TX $1,660 $18 4.4% 5% 14.3x 2.9x 0.3x 5.6x

Nomad Foods Limited NYSE:NOMD N/A $1,424 $8 -11.4% -34% NM 0.9x 1.7x 0.0x

Synutra International Inc. NasdaqGS:SYUT MD $216 $4 -23.3% -19% 10.2x 1.6x 1.7x 9.8x

Lifeway Foods Inc. NasdaqGM:LWAY IL $156 $10 -10.7% -13% 64.6x 3.4x 1.3x 21.7x

Segment Average $2,352 -5.1% -7.9% 34.5x 3.0x 1.5x 11.8x







PRODUCE





Price/ Book

TEV/ Rev

TEV/ EBITDA

The WhiteWave Foods Company

NYSE:WWAV CO $8,305 $47 15.5% 21% 49.1x 6.3x 2.6x 22.2x

Fresh Del Monte Produce Inc.

NYSE:FDP FL $2,766 $54 29.4% 40% 24.0x 1.6x 0.8x 11.3x

Nomad Foods Limited NYSE:NOMD N/A $1,424 $8 -11.4% -34% NM 0.9x 1.7x 0.0x

Calavo Growers Inc. NasdaqGS:CVGW CA $1,168 $67 17.4% 37% 38.8x 5.7x 1.4x 21.1x

Alico Inc. NasdaqGS:ALCO FL $251 $30 9.6% -22% 14.5x 1.5x 2.8x 8.5x

Limoneira Company NasdaqGS:LMNR CA $250 $18 15.9% 18% NM 2.1x 3.8x 99.7x



INGREDIENTS

PROTEINS



Price/ Book

TEV/ Rev

TEV/ EBITDA

Tyson Foods, Inc. NYSE:TSN AR $25,731 $67 0.2% 25% 16.9x 2.7x 0.8x 9.0x

Hormel Foods Corporation NYSE:HRL MN $19,393 $37 -15.4% -7% 25.9x 4.5x 2.1x 14.1x

Pilgrim's Pride Corporation NasdaqGS:PPC CO $6,486 $25 0.3% 15% 12.2x 4.7x 0.9x 6.4x


Cal-Maine Foods, Inc. NasdaqGS:CALM MS $2,151 $44 -14.6% -4% 6.2x 2.4x 0.9x 3.1x

Sanderson Farms, Inc. NasdaqGS:SAFM MS $1,956 $87 -3.9% 12% 14.3x 1.8x 0.6x 5.8x

Premium Brands Holdings Corporation

TSX:PBH BC $1,576 $54 -0.7% 42% 35.1x 4.5x 1.2x 15.8x

Pingtan Marine Enterprise Ltd.

NasdaqCM:PME N/A $97 $1 -2.2% -12% 25.0x 0.7x 4.6x NM

Aoxin Tianli Group, Inc. NasdaqCM:ABAC N/A $27 $1 20.3% -8% 7.8x 0.3x NM NM

Segment Average $6,753 -2.3% 6.9% 18.2x 2.5x 1.4x 9.1x



Price/ Book

TEV/ Rev

TEV/ EBITDA

Archer-Daniels-Midland Company

NYSE:ADM IL $25,201 $43 18.1% 17% 24.1x 1.4x 0.5x 10.4x

Ingredion Incorporated NYSE:INGR IL $9,316 $129 21.2% 35% 22.3x 4.1x 1.9x 11.3x


FMC Corp. NYSE:FMC PA $6,194 $46 14.7% 18% 23.5x 3.2x 2.4x 12.7x

Sensient Technologies Corporation

NYSE:SXT WI $3,184 $71 11.9% 13% 27.3x 3.7x 2.8x 15.0x

Darling Ingredients Inc. NYSE:DAR TX $2,452 $15 13.1% 42% 41.6x 1.3x 1.3x 8.8x

SunOpta Inc. TSX:SOY ON $463 $5 -6.6% -43% 270.1x 0.9x 0.7x 15.5x

TerraVia Holdings, Inc. NasdaqGS:TVIA CA $222 $3 29.1% 6% NM NM 7.8x NM

Aemetis, Inc. NasdaqGM:AMTX CA $45 $2 11.8% -21% NM NM 1.0x NM

Feronia Inc. TSXV:FRN ON $35 $0 -25.9% -35% NM 0.2x 4.1x NM








Source: GF Data*

*The most current source of GF Data is as of March 31, 2016, and lags one quarter behind the current quarter.Source: GF Data*


CAPITAL STACKOVERALL U.S. LOWER MIDDLE MARKET M&A ACTIVITY

M&A ACTIVITY

TRANSACTION MULTIPLESEBITDA Multiples By Transaction Size

34.3% 39.5% 40.1% 43.7% 37.9%

17.1% 13.1% 18.0% 16.5% 17.3%

48.0% 47.4% 41.9% 39.8% 44.9%

38.2% 35.6% 37.3% 44.1% 39.2%

16.4% 11.0% 14.7% 10.7% 19.6%

45.4% 53.3% 48.0% 45.3% 41.2%

36.6% 37.6% 36.5% 41.8% 36.3%

15.0% 13.1% 12.0% 11.5%18.5%

48.5% 49.3% 51.4% 46.8% 55.2%

0%

20%

40%

60%

80%

100%

2012 2013 2014 2015 2016

Senior Debt Sub Debt Equity

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800

2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2

Cap

ital Invested ($m

m)

Dea

ls C

lose

d

Deals Closed Capital Invested

5.3x5.8x 5.9x

5.4x5.9x

6.5x6.4x 6.2x6.8x 6.6x 6.7x

6.1x

7.5x6.7x 6.8x

8.6x

7.5x6.9x

7.7x 7.4x 7.5x 7.8x

9.0x

7.7x

0.0x

3.0x

6.0x

9.0x

2011 2012 2013 2014 2015 YTD 2016

$10-25mm $25-50mm $50-100mm $100-250mm





SDR SERVICE OFFERINGS

COMPREHENSIVE AGRIBUSINESS EXPERTISE

SELECT TRANSACTION EXPERIENCESDR has completed numerous transactions types throughout the Agribusiness industry, including:

CONTACT USTravis ConwayManaging Director –Agribusiness [email protected]

SDR’s Agribusiness Team along with Director Eric Bosveld have worked on andcompleted numerous M&A transactions with both strategic and financial buyersand sellers across a wide range of manufacturing, distribution and service-related businesses in the agribusiness, horticultural, agrifood and green spaceindustries.

Our agribusiness industry investment banking expertise includes the following segments:

Eric BosveldDirector –Agribusiness [email protected]

PRIVATE CAPITAL FORMATIONSELL-SIDE ADVISORY

BUY-SIDE ADVISORY STRATEGIC CONSULTING

Diversified Agribusiness

Crop Inputs

Animal Health & Nutrition

Machinery & Equipment

Distribution

Agricultural Technology

Dairy

Produce

Proteins

Ingredients

*These transactions were completed by SDR Director Eric Bosveld during his tenure at another firm.

Ben RudmanDirector –Agribusiness [email protected]








Date Target Buyer(s) Segment Amount ($ in Mil)

TEV/Rev

TEV/EBITDA

5/20/2016 Back Tree Nursery & Transplanting Back Tree & Landscape, Inc. Diversified Agribusiness - - -5/19/2016 Day Boat Seafood, LLC The Green PolkaDot Box, Inc.

(OTCPK:GPDB)Proteins - - -

6/30/2016 Ecosphere Development Company LLC - Agricultural Technology Services 1.0 - -6/30/2016 Impossible Foods, Inc. - Proteins 16.5 - -6/30/2016 Vet Innovations, Inc. - Animal Health and Nutrition 1.0 - -6/30/2016 Oragenics Inc. (AMEX:OGEN) Intrexon Corporation (NYSE:XON); Koski

Family Limited PartnershipAnimal Health and Nutrition 2.7 - -

6/28/2016 Terracare Associates, LLC - Crop/ Turf/ Ornamental Inputs - - -6/27/2016 Milk Specialties Company American Securities Dairy - - -6/23/2016 Kirkland Seed Inc. Chromatin, Inc. Crop/ Turf/ Ornamental Inputs - - -6/22/2016 Petlife Pharmaceuticals, Inc. (OTCPK:PTLF) - Animal Health and Nutrition 4.0 - -6/22/2016 Ripple Foods, PBC - Dairy 30.0 - -6/20/2016 Brasstown Beef & Cattle Co., LLC - Proteins 1.5 - -6/20/2016 Peace Dining Corporation HANA GROUP, société par actions

simplifiéeProteins - - -

6/17/2016 New Global Energy, Inc. (OTCPK:NGEY) - Proteins 3.5 - -6/17/2016 Unifrutti of America, Inc. - Produce - - -6/17/2016 Ceres, Inc. (NasdaqCM:CERE) Land O Lakes Inc. Dairy 11.2 1.64x -6/16/2016 Bee Vectoring Technologies International Inc.

(TSXV:BEE)- Crop/ Turf/ Ornamental Inputs 1.2 - -

6/16/2016 Cal Agri Products, LLC. Pacific Ag Crop/ Turf/ Ornamental Inputs - - -6/16/2016 Monsanto Company, Sorghum Production

Assets In The United StatesRemington Holding Company, LLC Crop/ Turf/ Ornamental Inputs - - -

6/16/2016 Pure of Holland, LLC Kashi Company Oilseeds & Ingredients - - -6/15/2016 MoringaConnect LLC - Oilseeds & Ingredients 0.8 - -6/14/2016 ECOTIERRA INC. Desjardins Business Capital régional et

coopératifAgricultural Technology Services 0.5 - -

6/14/2016 Pendleton Grain Growers, Inc., Grain Assets United Grain Corporation Diversified Agribusiness - - -

6/13/2016 Captiva Verde Industries Ltd. (CNSX:VEG) - Produce 3.9 - -6/13/2016 N-Viro International Corp. (OTCPK:NVIC) - Agricultural Technology Services 0.6 - -6/10/2016 Alrgn Bio, Inc. - Oilseeds & Ingredients 0.1 - -6/9/2016 Catalina Sea Ranch, LLC - Proteins 2.0 - -6/9/2016 Ceapro Inc. (TSXV:CZO) - Oilseeds & Ingredients 3.9 - -6/9/2016 Brooks Peanut Company, Inc. Olam International Limited (SGX:O32) Produce 85.0 - -6/9/2016 Cover Crop Solutions LLC La Crosse Seed LLC Crop/ Turf/ Ornamental Inputs - - -6/9/2016 Worldwide Fish & Seafood, Inc. Fortune Fish Company Proteins - - -6/8/2016 AgEagle Aerial Systems, Inc. - Machinery and Equipment 0.3 - -6/8/2016 Jaguar Animal Health, Inc. (NasdaqCM:JAGX) Aspire Capital Partners, LLC Animal Health and Nutrition 15.0 - -

6/7/2016 Migao Corporation (TSX:MGO) 2521416 Ontario Inc. Crop/ Turf/ Ornamental Inputs 251.8 0.63x -6/6/2016 Salty Girl Seafood, Inc. - Proteins 0.8 - -6/6/2016 La Tourangelle, Inc. BNP Paribas Développement SA, SCR;

UnigrainsOilseeds & Ingredients - - -

6/3/2016 Avivagen Inc. (TSXV:VIV) - Animal Health and Nutrition 2.8 - -6/3/2016 Ranch-Way, Inc. Ridley USA Inc. Crop/ Turf/ Ornamental Inputs - - -6/1/2016 Five Star Custom Foods, Ltd. Cargill, Incorporated Proteins - - -5/30/2016 Laguna Dairy, S. de R.L. de C.V., Certain U.S.

Branded Business AssetsGrupo Lala, S.A.B. de C.V. (BMV:LALA B) Dairy 246.0 - -

5/26/2016 Fat Toad Farm, LLC - Oilseeds & Ingredients 0.3 - -5/26/2016 Delhi Foods, Inc. Creation Gardens, Inc. Produce - - -5/24/2016 Driftwood Dairy Holding Corporation Vietnam Dairy Products Joint Stock

Company (HOSE:VNM)Dairy 3.0 - -

5/23/2016 B.T.T.R Ventures LLC Red Sea Ventures; S2G Ventures; Acre Venture Partners

Produce 10.0 - -

5/23/2016 Conagra Foods Food Ingredients Company, Inc.

Givaudan SA (SWX:GIVN) Oilseeds & Ingredients 340.0 - -

Q2 2016 TRANSACTION ACTIVITY








TEV/Rev

TEV/EBITDA

5/19/2016 Fresh Unlimited, Inc. US Foods, Inc. Produce - - -

5/18/2016 Monsanto Company (NYSE:MON) Bayer AG (DB:BAYN) Crop/ Turf/ Ornamental Inputs 62,322.1 4.48x 15.32x

5/18/2016 Stonegate Agricom Ltd. (TSX:ST) Zaff LP Crop/ Turf/ Ornamental Inputs 1.1 - -

5/18/2016 The Andersons, Inc. (NasdaqGS:ANDE) HC2 Holdings, Inc. (AMEX:HCHC) Crop/ Turf/ Ornamental Inputs 1,799.6 0.42x 14.28x

5/17/2016 IC Potash Corp. (TSX:ICP) - Crop/ Turf/ Ornamental Inputs 0.6 - -

5/17/2016 ImmunoVaccine Inc. (TSX:IMV) - Animal Health and Nutrition 6.3 - -

5/17/2016 Wayne Bailey, Inc. - Produce 8.5 - -

5/17/2016 SG Solutions' Gasification Plant Philipp Brothers Fertilizer Crop/ Turf/ Ornamental Inputs - - -

5/17/2016 Slade Gorton & Co., Inc. Samherji hf. Proteins - - -

5/17/2016 Tomales Bay Foods, Inc. And Cowgirl Creamery Corporation

Emmi AG (SWX:EMMN) Dairy - - -

5/16/2016 Organto Foods Inc. (TSXV:OGO) - Produce 1.9 - -

5/16/2016 Anacor Pharmaceuticals, Inc. Pfizer Inc. (NYSE:PFE) Animal Health and Nutrition 4,615.4 52.94x -

5/16/2016 Encanto Potash Corp. (TSXV:EPO) Malaspina Consultants Inc.; World Defense Holdings WDH Ltd.

Crop/ Turf/ Ornamental Inputs 2.4 - -

5/15/2016 Oakridge Dairy LLC - Dairy 2.7 - -

5/13/2016 Great Plains Manufacturing, Incorporated Kubota U.S.A. Inc. Machinery and Equipment 430.0 - -

5/12/2016 Red Duck Foods, Inc. - Oilseeds & Ingredients 2.4 - -

5/12/2016 Caribou Biosciences, Inc. Novartis AG (SWX:NOVN); Genus plc (LSE:GNS); Maverick Capital, Ltd.; Pontifax Ltd.; Mission Bay Capital LLC; Heritage Group, LLC; Anterra Capital; 5 Prime Ventures; F-Prime Capital Partners

Animal Health and Nutrition 30.1 - -

5/12/2016 Joe Caputo And Sons, Inc. Piggly Wiggly Midwest, LLC Produce 32.0 - -

5/11/2016 Cultivation Technologies, Inc. - Machinery and Equipment 2.0 - -

5/11/2016 Cady Creek Farms, LLC Burnett Dairy Cooperative Dairy - - -

5/10/2016 NovaVive Inc. - Animal Health and Nutrition 0.1 - -

5/10/2016 Raptor Maps, Inc. - Agricultural Technology Services 0.4 - -

5/10/2016 Seven Farms totaling 2,944 Acres Farmland Partners Inc. (NYSE:FPI) Diversified Agribusiness 14.8 - -

5/9/2016 Orthman Manufacturing, Inc. - Machinery and Equipment 2.0 - -

5/9/2016 Seal The Seasons LLC - Produce 0.4 - -

5/9/2016 Lyrical Foods, Inc. Khosla Ventures; 301 Inc.; CAVU Venture Partners

Dairy 18.0 - -

5/9/2016 Icicle Seafoods, Inc. Cooke Seafood USA Inc. Proteins - - -

5/6/2016 Beta Hatch Inc. - Animal Health and Nutrition 0.5 - -

5/6/2016 Terrabiogen Technologies Inc. - Crop/ Turf/ Ornamental Inputs 0.3 - -

5/4/2016 Stevia First Corporation (OTCPK:STVF) - Crop/ Turf/ Ornamental Inputs 0.3 - -

5/2/2016 Urban Greens Food Co-op - Produce 1.0 - -

5/2/2016 Crystal Peak Minerals Inc. (TSXV:CPM) EMR Capital Pty Ltd Crop/ Turf/ Ornamental Inputs 4.2 - -

5/2/2016 Cargill Dressing, Sauces & Oils North America Ventura Foods, LLC Oilseeds & Ingredients - - -

4/18/2016 Total Tree Care Inc. The Care of Trees, Inc. Crop/ Turf/ Ornamental Inputs - - -

4/15/2016 Technical Provisions, LLC - Crop/ Turf/ Ornamental Inputs 0.4 - -

4/14/2016 Captiva Verde Industries Ltd. (CNSX:VEG) - Produce 5.0 - -

4/13/2016 Jensen Corporate Holdings, Inc. Signature Landscape Services, Inc. Agricultural Technology Services - - -

4/12/2016 SemiosBio Technologies Inc. Haywood Securities Inc. Crop/ Turf/ Ornamental Inputs 8.0 - -

4/11/2016 Evans Food Group Ltd. Wind Point Partners Proteins - - -

Q2 2016 TRANSACTION ACTIVITY (CONTINUED)








TEV/Rev

TEV/EBITDA

4/8/2016 Yucatan Foods, LP Harvest Capital Credit Corporation (NasdaqGM:HCAP); HCAP Advisors

Produce 10.8 - -

4/8/2016 Munger Bros., LLC Hortifrut S.A. (SNSE:HF) Produce - - -

5/20/2016 Potash Ridge Corporation (TSX:PRK) - Crop/ Turf/ Ornamental Inputs 1.1 - -

5/20/2016 Terramera, Inc. ACA Investments Pte Ltd; Renewal2 Management Company; S2G Ventures; Maumee Ventures; Bold Capital Partners

Crop/ Turf/ Ornamental Inputs - - -

4/6/2016 WayMark, Inc. - Dairy 0.0 - -

4/6/2016 Yancoal Canada Resources Co. Ltd., Two Saskatchewan Potash Exploration Permits

Gensource Potash Corporation (TSXV:GSP)

Crop/ Turf/ Ornamental Inputs 1.9 - -

4/5/2016 Kensington & Sons, LLC - Oilseeds & Ingredients 9.0 - -

4/5/2016 Potash Ridge Corporation (TSX:PRK) NHP Asset Management AG Crop/ Turf/ Ornamental Inputs 1.4 - -

4/4/2016 Organto Foods Inc. (TSXV:OGO) SG Strategic Income Limited Produce 0.5 - -

4/1/2016 True Citrus Inc. Juggernaut Management, LLC Produce - - -

4/1/2016 Highline Produce Limited Fyffes plc (ISE:FQ3) Produce 110.9 - -

4/1/2016 St. Jacobs Animal Breeding Corp. ABS Global, Inc. Distribution - - -

4/1/2016 Terra Novo, Inc. LSC Environmental Products, LLC Crop/ Turf/ Ornamental Inputs - - -


Q2 2016 TRANSACTION ACTIVITY (CONTINUED)



Agribusiness Report Q2 2016 - SDR Ventures...AGRIBUSINESS REPORT Q2 2016 Explore M&A Activity,...

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