FOOD & BEVERAGE Q2 2015 - Capstone Partners | Beverage... · FOOD & BEVERAGE Q2 2015 CONTACTS ......

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BOSTON CHICAGO LONDON LOS ANGELES PHILADELPHIA SAN DIEGO SILICON VALLEY TAMPA Q2 2015 FOOD & BEVERAGE CONTACTS Thomas Elliott Managing Director (813) 251-7285 [email protected] Shawn Keenan Vice President (813) 251-7299 [email protected] Daniel Schultz Director of Business Development (617) 619-3368 [email protected] MERGER & ACQUISITION ACTIVITY 2014 proved to be one of the strongest years on record for mergers and acquisitions in the food & beverage industry. Reflective of economic conditions, the industry witnessed increasing activity almost every year since the recession. The one exception was 2013, during which the number of transactions declined, a result of the capital gains tax increase in January of that year. Activity rebounded in 2014, posting a 14% increase to 305 transactions. This activity reflects the strong interest in food & beverage businesses, making them attractive acquisition targets with the ability to draw healthy valuations. 2015 OUTLOOK M&A activity in the food & beverage industry is off to a strong start in 2015, with 94 transactions reported midway through Q2. The industry has consistently grown year over year, even during challenging economic times, and as a result buyers and investors are attracted to the resiliency of the sector. Capstone expects robust activity in the industry to persist in the near-term, with middle market deals driven by eager, well-capitalized buyers backed by a growing economy. We expect that 2015 will yield strong opportunities for privately held middle market companies. In fact, the M&A cycle appears to be entering its “boom” phase, during which activity – and valuation premiums – typically rise sharply, resulting in a very attractive seller’s market. 223 267 309 260 210 261 283 300 268 305 94 0 50 100 150 200 250 300 350 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q2 2015 Food & Beverage Transactions Source: Capital IQ Transactions in the U.S. or Canada

Transcript of FOOD & BEVERAGE Q2 2015 - Capstone Partners | Beverage... · FOOD & BEVERAGE Q2 2015 CONTACTS ......

BOSTON

CHICAGO

LONDON

LOS ANGELES

PHILADELPHIA

SAN DIEGO

SILICON VALLEY

TAMPA

Q2 2015 FOOD & BEVERAGE

CONTACTS Thomas Elliott Managing Director (813) 251-7285 [email protected] Shawn Keenan Vice President (813) 251-7299 [email protected] Daniel Schultz Director of Business Development (617) 619-3368 [email protected]

MERGER & ACQUISITION ACTIVITY

2014 proved to be one of the strongest years on record for mergers and acquisitions in the food

& beverage industry. Reflective of economic conditions, the industry witnessed increasing

activity almost every year since the recession. The one exception was 2013, during which the

number of transactions declined, a result of the capital gains tax increase in January of that year.

Activity rebounded in 2014, posting a 14% increase to 305 transactions. This activity reflects the

strong interest in food & beverage businesses, making them attractive acquisition targets with

the ability to draw healthy valuations.

2015 OUTLOOK

M&A activity in the food & beverage industry is off to a strong start in 2015, with 94 transactions

reported midway through Q2. The industry has consistently grown year over year, even during

challenging economic times, and as a result buyers and investors are attracted to the resiliency of

the sector.

Capstone expects robust activity in the industry to persist in the near-term, with middle market

deals driven by eager, well-capitalized buyers backed by a growing economy. We expect that

2015 will yield strong opportunities for privately held middle market companies. In fact, the

M&A cycle appears to be entering its “boom” phase, during which activity – and valuation

premiums – typically rise sharply, resulting in a very attractive seller’s market.

223

267

309

260

210

261 283

300

268

305

94

0

50

100

150

200

250

300

350

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q2 2015

Food & Beverage Transactions

Source: Capital IQ Transactions in the U.S. or Canada

With limited organic

growth opportunities,

companies in the industry

are actively looking to

acquire other providers in

an effort to boost sales

and profits.

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Food & Beverage Q2 2015

M&A TRENDS & DRIVERS

M&A activity in the food & beverage industry is expected to continue to be robust in

2015, supported by strong industry and market fundamentals. Several themes are

contributing to the high level of M&A activity in the industry, including the following.

Industry Size and Consistent Growth – On the one hand, investors are attracted to

the food & beverage industry by its huge size and consistent growth. The industry is

large, with sales divided evenly between retail and foodservice. Although economic

slumps do have an adverse impact on the industry’s sales, the sector is relatively

insulated compared to other industries, as food & beverage products continue to be

essential to consumers in spite of changes in the economy. On the other hand,

industry growth is stagnating, and is projected to rise only at about the same rate as

the population, 1%, providing little year-over-year revenue growth. With limited

organic growth opportunities, companies in the industry are actively looking to

acquire others in an effort to boost sales and profits.

A Bifurcated Market – The food & beverage industry is undergoing substantial

change, and the market has become bifurcated due to divergent consumer

preferences. On one end of the spectrum are the consumers who are willing to pay

more for higher-quality items, especially those emphasizing health benefits, natural

ingredients and convenience. On the other end are consumers who are still

recovering from the recent economic downturn and who continue to seek out

products that offer the best value, including private label items. Overall, consumer

preferences in the U.S. and other developed markets are shifting toward high quality,

nutritional products including pre-packaged and home-cooked food. As a result of

the market’s bifurcation, industry participants are expected to focus on product

differentiation to increase their market share. Catering to the needs of increasingly

divergent consumer groups has added to the complexity of the market, resulting in a

focused M&A strategy for industry participants.

Sources: Bloomberg, Food Institute Report, Organic Trade Association, Marketline

Food & Beverage Sales

$669.6 $673.3 $711.0 $748.3 $772.2 $792.3

$646.1 $649.1 $680.5 $700.7 $711.4 $734.2

$312.4 $320.6 $327.3 $334.6

$341.5 $348.8

$0.0

$200.0

$400.0

$600.0

$800.0

$1,000.0

$1,200.0

$1,400.0

$1,600.0

$1,800.0

$2,000.0

2009 2010 2011 2012 2013 2014

$ B

illio

ns

Retail Food Sales Foodservice Sales Beverage Sales

Many of the sector’s

strategic transactions are

driven by the goal of

creating synergies that

reduce costs, and gaining

access to higher growth

segments, both important

strategies in a challenging

environment.

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Food & Beverage Q2 2015

M&A TRENDS & DRIVERS (Continued)

Buyers Target “Hot” Product Categories – With new product development and

introductions critical to success in the industry, companies that have distinguished

themselves in the market with popular brands and products are highly sought-after

acquisition targets by buyers looking to enhance their product portfolios. Examples

of popular food & beverage product categories include specialty, healthy/functional,

ethnic, non-GMO products, sports and nutrition products, protein-based snacks,

convenience foods, and private labels. With some of these categories expanding at

double-digit rates, they have become attractive targets in an otherwise slow-growth

industry.

Popularity of Healthy Foods & Beverages – Valuation multiples are elevated for

health and nutrition companies, reflecting consumers' insatiable demand for good-

for-you and healthier foods & beverage. The tastes of upscale buyers are changing,

calling for alternatives they consider "less processed," with simpler ingredients,

health oriented branding, convenience, and sustainability. Also prominent are

products marketed as allergen-free or gluten-free, no additives or preservatives, or

containing antioxidants. And because this trend is being embraced by millennials, it

is only expected to be more pronounced in the coming years. Factors such as the

aging population, heightened allergen awareness, and growing concern about GMOs

and food additives are also credited with boosting this segment. In order to fully

participate in this sector’s growth, companies are looking to make acquisitions in the

healthy products segment. As a result, there have been several recent examples of

“mainstream” food & beverage companies acquiring health & nutrition targets.

New Focus on Smaller Brands – The competitive landscape of the food & beverage

industry has changed dramatically, in that small niche brands are readily accepted by

large retailers and mass merchandisers, where they are competing effectively against

the leading brands of established food giants. Where once “bigger is better” was the

preferred food & beverage strategy, today companies are looking for niche brands

that cater to specific consumer preferences, and they are making acquisitions to add

such brands to their portfolios.

Synergies Drive Transactions & Valuations – M&A transactions in the food &

beverage industry are very targeted and highly strategic. Common strategies

employed by buyers include acquiring a business that sells a product or brand related

to one of the buyer’s own, expansion into a new geographic market (including U.S.

companies looking to expand into emerging markets), international players wishing

to move into the U.S., consolidation to take advantage of economies of scale and

increased clout with large food retailers, and larger companies purchasing smaller

enterprises with innovative products or advanced capabilities and systems. Many of

the sector’s strategic transactions are driven by the goals of creating synergies that

reduce costs and gaining access to higher growth segments, both important

strategies in a challenging environment.

M&A TRENDS & DRIVERS (Continued)

Market Supports Both Mega Deals and Middle-Market Transactions – A wide range

of acquisitions are occurring in the industry, with buyers targeting everything from

small, single-product companies to large corporations with a full stable of product

categories and brand names. Acquisitions of all sizes provide a way for buyers to gain

market share and bolster growth. While large targets enjoy advantages in economies

of scale and strong brand recognition, smaller targets can provide buyers with

specialized or unique products. Examples of blockbuster deals in the industry include

Tyson Food’s purchase of The Hillshire Brands Company for $8.5 billion and the

recently announced acquisition of Kraft Foods Group by H.J. Heinz Company in a

transaction valued at $54 billion. The newly named Kraft Heinz Company will be the

3rd largest food and beverage company in North America and the 5th largest food

and beverage company in the world.

Despite these headliner deals, most of the transactions in this fragmented industry

are completed in the middle market and smaller categories, where large consumer

products companies are looking to add new products and successful brands.

Changing buying patterns favor smaller entrepreneurial brands, as consumers' new

demands have not been met quickly enough by the large multinationals, who are

now making smaller acquisitions to keep up with changing demand.

Corporate Buyers Are Active – Corporate buyers have been very active in the

industry, as they continue to seek acquisitions that help to expand their product

offerings and/or geographic footprints. We have seen strong interest from all types

of buyers, including large food & beverage companies that are actively adding new

products and successful brands to their portfolio. Foreign companies have also been

active, as they look to expand their footprint in the lucrative U.S. market.

Private Equity is Very Interested in the Sector – Private equity firms are attracted to

the fragmented nature and relative stability of the food & beverage industry, and

they continue to make platform and add-on acquisitions in the sector, performing

roll-ups of multiple targets that combined have greater scope, scale and improved

standing in this highly competitive industry. Generally speaking, these buyers look

for investments with good market visibility, excellent growth potential, a track-record

of profitable growth and a strong management team. Collectively, private equity

groups have an abundance of cash that needs to be deployed, and their transactions

are supported by low interest rates and ready access to debt. Private equity

fundraising remained elevated in 2014 at $189 billion, and private equity firms now

have a significant backlog of capital to invest, estimated at $535 billion.

Looking forward, Capstone expects middle-market companies in the food & beverage

industry to remain in high demand and we believe 2015 will prove to be a seller’s

market. We expect positive operating results for many target companies in the

sector, resulting in a strong level of buyer interest and healthy transaction multiples.

The following table provides a sampling of transactions in the industry, reflecting the

healthy M&A environment for food & beverage product companies.

Despite these headliner

deals, most of the

transactions in this

fragmented industry are

completed in the middle

market and smaller

categories, where large

consumer products

companies are looking to

add new products and

successful brands.

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Food & Beverage Q2 2015

SELECTED FOOD & BEVERAGE M&A TRANSACTIONS

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Food & Beverage Q2 2015

Enterprise EV / LTM

Date Target Acquiror Target Business Description Value (mm)

Revenue EBITDA

5/25/2015 Sun Valley Farms Houweling's Nurseries Produces tomatoes. - - -

05/21/2015 Reïva Global Genius Properties Produces natural and healthy food products and beverages.

- - -

05/12/2015 Wenner Bread Products EUROPASTRY Produces baked frozen dough, and fully-baked bread products to foodservice and retail bakeries.

- - -

05/12/2015 Blake's All Natural Food ConAgra Foods Offers natural and organic food products. - - -

05/06/2015 Aamicola Crystal Clear Blue Summit Waters Manufactures bottled water. - - -

05/06/2015 Sunrise Farms Charles River Laboratories

Offers poultry processing services and distributes poultry products.

- - -

05/04/2015 Presteve Foods Tricor Pacific Capital Processes and supplies fresh and frozen fish products in North America and internationally.

- - -

05/01/2015 Gold Standard Baking Tricor Pacific Capital Manufactures and supplies thaw-and-serve baked goods.

- - -

04/27/15 Prairie Meats Golden Opportunities Fund

Produces fresh and frozen meat products. - - -

04/16/15 BAI Brands Dr Pepper Snapple Group

Produces antioxidant infusion drinks. - - -

04/10/15 Baker Boys Ginsburg Bakery Co-packs a variety of breads for companies in the North East Region of the United States.

- - -

04/07/15 Kencraft BBX Sweet Holdings Offers lollipops, sugar eggs, bubblegum, candy canes, suckers, and candy sticks.

- - -

04/02/15 B&R Liquid Adventure

American Brewing Company

Manufactures non-alcoholic beverages. - - -

03/31/15 American Beverage Corporation

Harvest Hill Beverage Company

Produces and markets ready to drink cocktails, non-alcoholic cocktail mixers and fruit drinks.

$55.0 0.5x 6.0x

03/30/15 Angel's Share Brands

Bacardi Produces and offers bourbon whiskey. - - -

03/27/15 Gehl Foods Wind Point Partners Produces dairy products. - - -

03/25/15 Kraft Foods Group H.J. Heinz Holding Corporation

Produces consumer packaged foods and beverages. $53,739.0 3.0x 22.6x

03/13/15 Flatout T. Marzetti Company Manufactures and sells flatbreads. $92.0 2.0x -

03/11/15 Sager Creek Vegetable Company

Del Monte Foods Produces and distributes canned vegetables. $75.0 0.3x -

03/09/15 Brand Aromatics McCormick & Company

Manufactures and markets savory flavors, seasonings and culinary bases for food applications.

$63.0 2.3x 10.0x

03/06/15 The Butcher Block Les Spécialités Prodal

Produces artisanal meats and cheeses. - - -

03/04/15 Empire Kosher Poultry

The Hain Celestial Group

Produces kosher poultry products. - - -

02/28/15 Ritual Wellness Project Juice Produces and distributes organic juices. - - -

SELECTED FOOD & BEVERAGE M&A TRANSACTIONS (CONTINUED)

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Food & Beverage Q2 2015

Enterprise EV / LTM

Date Target Acquiror Target Business Description Value (mm)

Revenue EBITDA

02/16/15 Enjoy Life Foods Mondelez International

Engages in the production of snacks that are free from allergens.

- - -

02/10/15 Van De Vries Spice Corporation

Frontenac Company Imports and processes ingredients for food manufacturing, bakery and food distribution industries.

- - -

02/09/15 Lakeview Farms Falcon Investment Advisors

Produces and sells sour cream, dips and desserts. - - -

02/04/15 Distant Lands Coffee Company

ITO EN Grows, harvests, processes and roasts coffee. $83.2 0.6x -

02/02/15 Saputo Bakery Group

Canada Bread Company

Manufactures and markets snack-cake and bakery products for the retail segment in Canada.

$103.4 - -

12/04/14 The Allan Candy Company

Hershey Canada Produces and distributes chocolate and sugar confectionery products.

$24.8 - -

12/02/14 Orange-Co Alico Produces and markets citrus fruits in Florida. $274.0 - -

12/02/14 Talenti Gelato e Sorbetto

Unilever Produces gelatos and sorbettos in the United States. - - -

11/21/14 Noosa Yoghurt Advent International Corporation

Produces flavored yogurt. - - -

11/14/14 Garden Protein International

Pinnacle Foods Manufactures plant based meat-like foods. $154.8 - -

11/05/14 Windsor Quality Food Company

Ajinomoto North America

Produces and markets frozen ethnic foods and appetizers.

$800.0 1.2x -

11/01/14 American Blanching Nuts Distributor of America

Produces peanut butter, peanut granules, peanut paste and blanched peanuts.

$128.0 - -

10/31/14 Harrell Nut Company Golden Peanut and Tree Nuts

Provides pecan processing services. $89.0 - -

10/31/14 So Delicious Dairy Free

The WhiteWave Foods Company

Produces dairy free frozen desserts, beverages and creamers.

$195.0 1.7x -

10/28/14 Teasdale Foods Snow Phipps Group Produces shelf stable food products. - - -

10/24/14 Best Maid Cookie The New French Bakery

Produces and markets cookies, brownies and bars. - - -

10/24/14 Village Tea Company Distribution

AccelPath Provides tea products sourced from growers in Asia, Africa and North America.

- - -

10/21/14 Annie's General Mills Produces and distributes natural and organic food products.

$821.4 4.0x 38.6x

10/01/14 Musashi and PowerBar

Post Holdings Produces health supplements, protein powders, functional bars and amino acids.

$150.0 - -

10/01/14 Angie's Artisan Treats

TPG Growth Produces and sells classic, caramel, lite and white cheddar kettle corn.

- - -

09/26/14 Daily's Foods Triumph Foods Produces smoked and processed meat products for the retail and food service markets.

$145.0 - -

09/19/14 Southern Tier Brewing Company

Ulysses Management Manufactures beer and ale. - - -

09/17/14 Hispanic Specialty Brands

Dream Foods International

Provides Mexican foods. - - -

SELECTED FOOD & BEVERAGE M&A TRANSACTIONS (CONTINUED)

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Food & Beverage Q2 2015

Enterprise EV / LTM

Date Target Acquiror Target Business Description Value (mm)

Revenue EBITDA

09/03/14 Dobake Bakeries Gordon Brothers Group

Produces fully prepared, fresh and frozen bakery products.

- - -

09/02/14 Sahale Snacks The J. M. Smucker Company

Produces nuts and dried fruits snacks in the United States.

$80.0 - -

08/31/14 Rudi’s Organic Bakery

The Hain Celestial Group

Produces natural, organic and gluten-free breads, buns, bagels, tortillas, wraps and soft pretzels.

$61.3 - -

08/28/14 The Hillshire Brands Company

Tyson Foods Manufactures and markets convenient food products worldwide.

$8,543.1 2.1x 15.8x

08/22/14 Lucini Italia Company

Molinos USA Manufactures and sells Italian gourmet foods. $29.5 - -

08/19/14 Lodi Olive Oil Company

Coldani Olive Ranch Grows olives, and produces and sells olive oil. - - -

08/18/14 Tate's Bake Shop

The Riverside Company

Produces baking products. - - -

08/18/14 Nature's Best KeHE Distributors Operates as a wholesaler-distributor of health and natural food products.

- - -

08/08/14 Première Moisson Metro Produces baked goods, pastries, charcuteries, ready-to-eat dishes and gourmet specialties.

- - -

08/01/14 Mighty Leaf Tea Company

Peet's Coffee & Tea Produces and distributes tea products. - - -

07/31/14 Leo's Foods Wise Foods Produces corn and flour tortillas for the food service, retail and private label markets.

- - -

07/31/14 Faribault Foods Arizona Canning Company

Produces and supplies beans, soups, beverages, pastas and vegetables.

- - -

07/29/14 Flagstone Foods Bay Valley Foods Purchases, prepares, packages, distributes and sells private label healthy snacks in North America.

$875.0 1.2x 16.1x

07/14/14 All Market Reignwood Group Produces and supplies coconut water in the United States.

$664.0 - -

07/04/14 Apple & Eve Lassonde Industries Produces and markets natural fruit juices. $147.9 0.9x 10.8x

07/01/14 Truco Enterprises Insignia Capital Group

Provides Southwestern Mexican Style snacks and drink mixes in the United States.

- - -

07/01/14 Pacific Northwest Kale Chips Company

Made In Nature Manufactures kale chips. - - -

07/01/14 Quincy Street Indiana Packers Corporation

Produces and markets pork products. - - -

06/30/14 Conopco Mizkan Holdings Comprises two pasta sauce brands, Ragu and Bertolli and associated production facilities.

$2,150.0 3.6x -

06/30/14 Vegetable Juices Naturex Société Anonyme

Processes, produces and markets vegetable juice blends and natural vegetable flavors and ingredients.

- - -

06/30/14 S-L Snacks Shearer's Foods Comprises a cookies and crackers brand and two manufacturing facilities.

$430.0 - -

06/27/14 Clement Pappas & Co. Lassonde Industries Processes cranberry sauces and beverages including a line of organic products primarily for private label.

$185.0 - -

06/02/14 MFI Holding Corporation

Post Holdings Processes and distributes food products in the United States and internationally.

$2,499.5 - 10.5x

SELECTED FOOD & BEVERAGE M&A TRANSACTIONS (CONTINUED)

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Food & Beverage Q2 2015

Enterprise EV / LTM

Date Target Acquiror Target Business Description Value (mm)

Revenue EBITDA

05/30/14 PFF Capital Group Treehouse Foods Produces food and beverage products, including broth, soups and gravies.

$154.3 - -

05/06/14 New Frontiers Natural Marketplace

Whole Foods Market Operates a chain of natural and organic food stores. - - -

05/29/14 FoodCrafters Group A.C. Simmonds and Sons

Produces wholesale baked goods & specialty food products for the international market and private label.

- - -

05/23/14 Canada Bread Company

Grupo Bimbo Manufactures and distributes fresh and frozen bakery products.

$1,375.6 1.0x 8.4x

05/15/14 Van's International Foods

The Hillshire Brands Company

Produces and sells gluten free food products primarily for breakfast.

$165.0 - -

05/05/14 Klement's Sausage Company

Tall Tree Foods Holdings

Produces sausages, and meat and deli products. - - -

05/05/14 Rubschlager Baking Corporation

Weston Foods Produces breads. $10.0 - -

04/28/14 Charter Baking Company

The Hain Celestial Group

Engages in the production and distribution of organic and natural bread and baked goods.

$61.3 - -

04/23/14 Specialty Brands of America

B&G Foods North America

Manufactures and sells specialty foods. $155.0 - -

04/15/14 Medallion Foods Shearer's Foods Manufactures corn-based snack products, including tortilla chips, corn chips and extruded corn products.

$33.5 - -

04/07/14 The Manischewitz Company

Sankaty Advisors Manufactures processed kosher food products. - - -

04/03/14 Goudas Food Products & Investments

A.C. Simmonds and Sons

Imports and produces food products for sale in supermarkets and retailers.

$16.6 0.6x -

04/02/14 Pineridge Bakery ARYZTA AG Produces and markets frozen and fresh specialty baked goods.

$340.0 1.6x -

04/01/14 Cooperstown Brewing Company

Northern Eagle Beverages

Brews premium ales, porters and stouts. - - -

03/12/14 Simply Omega Function-O Foods Produces beef products that are naturally rich with Omega-3 fatty acids.

- - -

02/25/14 Lettieri's Greencore Group Manufactures cooked and merchandised food products. $37.7 1.0x 8.1x

02/24/14 CitraSource Frutarom USA Provides citrus products to flavor and ingredient companies.

$7.5 1.1x -

02/14/14 Head Country Gladstone Investment Corporation

Manufactures and markets barbeque sauces, seasonings and marinades.

- - -

02/11/14 The Switch Beverage Company

Apple & Eve Manufactures and markets carbonated juices. - - -

02/07/14 Corn Flour Producers Bunge North America Produces corn flours for the production of tortillas, chips, shells, tamales and other food products.

$12.0 - -

02/01/14 Golden Boy Foods Post Holdings Produces and markets food products. $300.6 - -

LTM = last twelve months; EV = enterprise value Sources: Capstone Partners LLC research; Capital IQ; public filings and press releases

Capstone Partners’ bankers have completed several transactions within the consumer products space. These transactions

span the major categories of manufacturing, contract manufacturing, retail and wholesale and include a variety of

companies offering a diversity of products such as food & beverage items, tobacco, pet products, juvenile products, drugs

and neutraceuticals, and recreation products. Capstone’s experience in the sector provides us with insight into the

valuable attributes and likely valuation of a target company, the active buyers in the industry and the nuances of

transactions in this space.

has divested

has been acquired by has been

acquired by has recapitalized with

has been acquired by

has been acquired by

has been acquired by

a portfolio company of

has been acquired by

has been acquired by

has been acquired by

Capstone Partners LLC 9

CAPSTONE PARTNERS: COMPLETED CONSUMER PRODUCTS TRANSACTIONS

has been acquired by

has been acquired by

strategic joint venture

has been acquired by

a portfolio company of

Food & Beverage Q2 2015

A Branded Organic Food Company

CONFIDENTIAL

corporate sale (IN PROCESS)

Contract Manufacturer of Supplements and

Nutritional Products

CONFIDENTIAL

corporate sale (IN PROCESS)

Crystals International

North Atlantic Trading Company

Tom Elliott, Managing Director

[email protected] • (813) 251-7285

Tom Elliott is responsible for managing the firm's investment banking activities in the

Southeastern United States. Tom joined Capstone through the merger of his firm,

EQV Capital Group, Inc., a middle market M&A boutique headquartered in Tampa,

Florida. While operating EQV, Tom focused on providing middle market business

owners with sophisticated financial and strategic advisory services in the areas of exit

planning, valuations, recapitalizations and merger & acquisition transactions.

Prior to founding EQV, Mr. Elliott spent 12 years with the Southeast Regional office of

Citigroup Capital Strategies. Prior to Citigroup, he worked as a Corporate Finance

consultant, responsible for assisting private companies with capital raising activities

ranging from venture capital funding to initial public offerings. Tom also spent four

years working as a CPA for Ernst & Young. Tom has worked with clients across a

variety of industries, including consumer products. Tom specializes in maximizing

shareholder value in private company sales and recapitalizations. He earned his MBA

from the University of Michigan and a BBA in Accounting from the University of

Notre Dame.

Shawn Keenan, Vice President

[email protected] • (813) 251-7299

Shawn Keenan is focused on providing strategic advisory services for clients in the

Food and Beverage sector. Prior to joining Capstone, Shawn was a Vice President

with Raymond James & Associates investment banking. There he participated in

numerous merger and acquisition advisory as well as capital offering assignments

resulting in over $2 billion of proceeds for clients. Shawn started his eight year career

in investment banking after graduating with his MBA from the Kellogg School of

Management at Northwestern University. Prior to attending graduate school, he

spent seven years as an officer in the United States Navy, achieving the rank of

Lieutenant. Shawn attended the University of Florida on a Naval ROTC scholarship

and graduated with a Bachelors of Arts in Business Administration.

Daniel Schultz, Director of Business Development

[email protected] • (617) 619-3368

Dan oversees Capstone’s national business development and industry coverage

activities, working closely with current and prospective clients of the firm on matters

related to corporate sales, recapitalizations, mergers & acquisitions and growth

financings. Prior to spearheading the firm’s business development and market

initiatives, he was a Vice President in Capstone’s M&A group, managing numerous

successful transactions across a variety of industries. Dan also gained hands-on

transaction experience as an investment banker at Headwaters MB. He started his

career with Ernst & Young’s National Professional AABS practice in New York and

later worked in Assurance and Advisory Business Services in the Denver office. Dan

received a BE in Biomedical Engineering with a Business Minor from Vanderbilt

University. He earned an MBA and a Master of Accountancy from the Daniels College

of Business at the University of Denver.

Capstone Partners LLC 10

Food & Beverage Q2 2015

THE FOOD & BEVERAGE TEAM

ABOUT CAPSTONE PARTNERS

Capstone Partners LLC is a premier investment banking firm dedicated to serving

the corporate finance needs of middle market business owners, investors and

creditors. The firm provides corporate sale & divestiture, merger & acquisition,

private placement, corporate restructuring, valuation and financial advisory

services. Capstone maintains various industry specialties including one in the Food

& Beverage sector. The firm also has a merchant banking capability to actively co-

invest in transactions. Headquartered in Boston, Capstone has offices in Chicago,

London, Los Angeles, Philadelphia, San Diego, Silicon Valley and Tampa.

© 2015 Capstone Partners LLC. All rights reserved.

World Class Wall Street Expertise. Built for the Middle Market.

CAPSTONE’S OFFICE LOCATIONS

BOSTON

176 Federal Street

3rd Floor

Boston, MA 02110

(617) 619-3300

CHICAGO

200 South Wacker Drive

Suite 3100

Chicago, IL 60606

(312) 674-4531

LONDON

42 Brook Street

London W1K 5DB

United Kingdom

+44 (0) 203 427 5068

LOS ANGELES

23046 Avenida de la Carlota

Suite 600

Laguna Hills, CA 92653

(949) 460-6431

PHILADELPHA

1515 Market Street

12th Floor

Philadelphia, PA 19102

(215) 854-4063

SAN DIEGO

12707 High Bluff Drive

Suite 200

San Diego, CA 92130

(858) 926-5950

SILICON VALLEY

228 Hamilton Avenue

3rd Floor

Palo Alto, CA 94301

(650) 319-7370

TAMPA

1550 W Cleveland Street

Suite 10

Tampa, FL 33679

(813) 251-7285

For more information

about our expertise,

please visit

www.capstonellc.com