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Fairness Opinion Detail

BUFF FOOpen source

Blue Buffalo Pet Products, Inc. to General Mills, Inc.

Packaged Foods/Feb 2018/Centerview, JPMorgan

Deal Information

Target
Blue Buffalo Pet Products, Inc.
Acquiror
General Mills, Inc.
Sector
Packaged Foods
Target Type
Public
Acquiror Type
Strategic
Advisors
Centerview, JPMorgan

Transaction Metrics

Enterprise Value
$8.0B
EV / LTM Sales
6.3x
EV / LTM EBITDA
25.5x
EV / Fwd EBITDA

Advisor Transaction Comparables

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

Advisor: Centerview

EV/LTM Adjusted EBITDA selected range: 17.5x - 24.5x

18 comps
Jan 2001Ralston Purina CompanyNestle S.A.--15.7x-
Apr 2007Gerber Products Company
1 Utilized a CY2007 multiple.
Nestle S.A.--15.7x-
Jul 2007Royal Numico N.V.Danone--24.3x-
Apr 2008Wm. Wrigley Jr. CompanyMars, Incorporated--18.4x-
Jan 2010Cadbury plcKraft Foods Inc.--13.0x-
Apr 2012Pfizer Nutrition
2 Utilized an estimated FY2011 multiple.
Nestle S.A.--21.7x-
Feb 2013H. J. Heinz Company3G Capital Partners, L.P.--13.5x-
Apr 2013D.E. Master Blenders 1753 N.V.JAB Holdings--18.3x-
Jul 2014The Hillshire Brands CompanyTyson Foods, Inc.--16.8x-
Sep 2014Annie's, Inc.General Mills, Inc.--38.7x-
Feb 2015Big Heart Pet Brands, Inc.The J.M. Smucker Company--15.3x-
Dec 2015Keurig Green Mountain, Inc.JAB Holdings--13.3x-
Jul 2016The WhiteWave Foods CompanyDanone--23.4x-
Feb 2017Mead Johnson Nutrition CompanyReckitt Benckiser Group plc--17.4x-
Jul 2017The French's Food Company
3 Utilized an estimated LTM multiple based on an average of FY2016 and 2017E figures publicly disclosed.
McCormick & Company, Incorporated--20.0x-
Sep 2017Bob Evans Farms, Inc.Post Holdings, Inc.--16.5x-
Dec 2017Snyders-Lance, Inc.Campbell Soup Company--20.9x-
Dec 2017Amplify Snack Brands, Inc.The Hershey Company--19.7x-
Mean-19.0x-
Median-17.9x-

Advisor: JPMorgan

FV/LTM Adjusted EBITDA selected range: 17.5x - 26.0x

13 comps
Sep 2014Annies, Inc.General Mills, Inc.--38.7x-
Nov 2012Schiff Nutrition International, Inc.Reckitt Benckiser Group plc--26.2x-
Jul 2007Royal Numico N.V.Danone--24.3x-
Jul 2016The WhiteWave Foods CompanyDanone--23.4x-
Oct 2007Burts Bees, Inc.The Clorox Company--22.2x-
Apr 2012Wyeth Nationals (Pfizer)Nestle S.A.--21.7x-
May 2014Merck Consumer CareBayer AG--21.0x-
Dec 2017Snyders-Lance, Inc.Campbell Soup Company--20.9x-
Jan 2014Beam Inc.Suntory Holdings Limited--20.3x-
Jul 2017The Frenchs Food CompanyMcCormick & Company, Incorporated--20.0x-
Dec 2017Amplify Snack Brands, Inc.The Hershey Company--19.7x-
Apr 2008Wm. Wrigley Jr. CompanyMars, Incorporated--18.4x-
Feb 2017Mead Johnson Nutrition CompanyReckitt Benckiser Group plc--17.4x-
Mean-22.6x-
Median-21.0x-

DCF Assumptions

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

Centerview

Open
WACC
8.5% – 9.5%
Terminal method
Perpetuity growth
Terminal assumption
2.5% – 3.5%
Forecast basis
Management Forecasts (Certain Financial Projections)
Forecast period
January 1, 2018 through December 31, 2022

JPMorgan

Open
WACC
8.25% – 9.25%
Terminal method
Perpetuity growth
Terminal assumption
2.5% – 3.5%
Forecast basis
Company Forecasts
Forecast period
calendar years 2018 through 2022
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