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Fairness Opinion Detail

RAI FOOpen source

Reynolds American to BAT

Tobacco/Jan 2017/Goldman Sachs, JPMorgan, Lazard

Deal Information

Target
Reynolds American
Acquiror
BAT
Sector
Tobacco
Target Type
Public
Acquiror Type
Strategic
Advisors
Goldman Sachs, JPMorgan, Lazard

Transaction Metrics

Enterprise Value
EV / LTM Sales
EV / LTM EBITDA
15.4x
EV / Fwd EBITDA

Advisor Transaction Comparables

Comparable transactions cited by the advisor, excluding the subject transaction.

Advisor: Goldman Sachs

EV/LTM EBITDA selected range: 10.9x - 16.0x

14 comps
Jun 2015TDR d.o.o.BAT$600M-12.5x-
Mar 2015Souza Cruz S.A.BAT$14.2B-16.0x-
Jul 2014Lorillard, Inc.
The EV/LTM EBITDA multiple of 13.9x for this transaction was excluded from the calculation of the median, as such transaction involved significant geographic overlap and was not deemed to be comparable to the proposed transaction. It was referenced for information purposes only.
RAI$27.6B-13.9x-
May 2012Gryson NVJapan Tobacco Inc.$600M-12.3x-
May 2011Productora Tabacalera de Colombia, S.A.S. (Protabaco)BAT$500M-11.3x-
Jun 2009PT Bentoel Internasional Investama TbkBAT$700M-14.0x-
Sep 2008UST Inc.Altria Group, Inc.$11.7B-12.0x-
Feb 2008Skandinavisk Tobakskompagni A/SBAT$4.0B-11.2x-
Feb 2008TekelBAT$1.7B-11.4x-
Nov 2007John Middleton, Inc.Altria Group, Inc.$2.9B-15.0x-
Jul 2007Altadis S.A.Imperial Brands PLC$22.4B-14.2x-
Feb 2007Commonwealth Brands, Inc.Imperial Brands PLC$1.9B-10.9x-
Dec 2006Gallaher Group PLCJapan Tobacco Inc.$18.5B-13.0x-
Apr 2006Conwood Company, LP, Conwood Sales Co., LP, Rosswil LLC and Scott Tobacco LLCRAI$3.5B-13.6x-
Mean-13.0x-
Median-12.8x-

Advisor: JPMorgan

FV/LTM EBITDA selected range: 12.0x - 16.0x

19 comps
Jun 2015TDR d.o.o.BAT$599M-12.5x-
Feb 2015Souza Cruz SABAT$14.2B-16.0x-
Jul 2014Lorillard, Inc.RAI$27.9B-13.8x-
Jul 2014Lorillard, Inc. and RAI assetsImperial Tobacco Group p.l.c.$7.1B-8.8x-
May 2011Productora Tabacalera de Colombia, S.A.S. (Protabaco)BAT$452M-11.3x-
Jun 2009PT Bentoel Internasional Investama TbkBAT$744M-14.0x-
Sep 2008UST Inc.Altria Group Inc.$11.7B-12.0x-
Jul 2008Rothmans Inc.Philip Morris International Inc.$1.9B-9.7x-
Feb 2008Skandinavisk TobakskompagniBAT$4.1B-11.2x-
Feb 2008TekelBAT$1.7B-11.4x-
Nov 2007John Middleton Co.Philip Morris USA$2.9B-15.8x-
Jul 2007Altadis SAImperial Tobacco Group p.l.c.$22.6B-14.1x-
Feb 2007Commonwealth Brands Inc.Imperial Tobacco Group p.l.c.$1.9B-10.9x-
Jan 2007Lakson Tobacco Co. Ltd.Philip Morris International Inc.$675M-14.8x-
Dec 2006Gallaher Group plcJapan Tobacco Inc.$18.9B-13.0x-
Apr 2006Conwood LPRAI$3.5B-13.6x-
Mar 2005PT HM Sampoerna TbkPhilip Morris International Inc.$5.1B-13.9x-
Mar 2002Reemtsma Cigarettenfabriken GmbHImperial Tobacco Group p.l.c.$5.1B-13.4x-
Jun 2001Austria Tabak AGGallaher Group plc$1.9B-7.4x-
Mean-12.5x-
Median-13.0x-

Advisor: Lazard

EV/LTM EBITDA selected range: 12.0x - 15.0x

19 comps
Jun 2015TDRBAT$603M-12.5x-
Feb 2015Souza Cruz (24.7%)BAT$13.7B-15.1x-
Jul 2014RAIImperial Brands$7.1B-8.8x-
Jul 2014LorillardRAI$27.4B-13.1x-
May 2012GrysonJapan Tobacco Inc.$598M-12.3x-
Jul 2011Haggar Cigarette & Tobacco FactoryJapan Tobacco Inc.$450M-9.9x-
May 2011ProtabacoBAT$452M-11.3x-
Jun 2009PT Bentoel Internasional InvestamaBAT$744M-14.0x-
Sep 2008USTAltria Group$11.7B-12.2x-
Jul 2008RothmansPhilip Morris International$2.0B-9.6x-
Feb 2008Tekel (Cigarette business)BAT$1.7B-11.4x-
Feb 2008Skandinavisk TobakskompagniBAT$4.1B-11.2x-
Nov 2007John MiddletonAltria Group$2.9B-15.7x-
Jul 2007AltadisImperial Brands$22.4B-14.2x-
Feb 2007Commonwealth BrandsImperial Brands$1.9B-10.9x-
Jan 2007Larkson TobaccoPhilip Morris International$675M-14.6x-
Dec 2006Gallaher GroupJapan Tobacco Inc.$19.0B-12.8x-
Apr 2006Conwood CompanyRAI$3.5B-13.5x-
Mar 2005PT HM SampoernaPhilip Morris International$5.1B-14.0x-
Mean-12.5x-
Median-12.5x-