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Fairness Opinion Detail

CQB FOOpen source

Chiquita Brands International plc to Grupo Cutrale / Safra Group

Packaged Foods/Oct 2014/Goldman Sachs, Lazard, Wells Fargo Securities

Deal Information

Target
Chiquita Brands International plc
Acquiror
Grupo Cutrale / Safra Group
Sector
Packaged Foods
Target Type
Public
Acquiror Type
Strategic
Advisors
Goldman Sachs, Lazard, Wells Fargo Securities

Transaction Metrics

Enterprise Value
EV / LTM Sales
EV / LTM EBITDA
12.8x
EV / Fwd EBITDA

Advisor Transaction Comparables

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

Advisor: Lazard

EV/LTM EBITDA selected range: 7.0x - 9.0x

16 comps
Dec 2013Earthbound Farm
(a) EBITDA margin is in low-to-mid teens as per investor presentation; LTM EBITDA multiple of approximately 7.5x net of anticipated tax benefits.
The WhiteWave Foods Company$600M-8.0x-
Aug 2013Dole Food Company, Inc.David H. Murdock$1.5B-10.2x-
Sep 2012Dole Food Company, Inc.'s Asia fresh & worldwide packaged foods businesses
(b) Financials as of 2011. Based on 2012 estimated financials, enterprise value to LTM EBITDA multiple would stand at 8.4x.
Itochu Corporation$1.7B-9.0x-
Jul 2012Bolthouse Farms
(c) Company reports an EBITDA multiple of 9.5x including tax benefits.
Campbell Soup Company$1.6B-10.2x-
Dec 2011Turners & Growers (72.5%)BayWa Aktiengesellschaft$226M-7.2x-
Feb 2010France Champignon
(d) Financials as of 2008.
Bonduelle$139M-6.3x-
Jun 2008Vitacress SaladsRAR Group$105M-8.2x-
Jun 2008Desarrollo Agroindustrial de Frutales S.A., Frutas de Exportacion S.A. and CaribanaFresh Del Monte Produce Inc.$403M-8.1x-
Jul 2007Wight Salads Group (70%)RAR Group$41M-5.7x-
Jul 2006Chiquita Brands South Pacific Limited
(e) Financials as of end of fiscal year 2005 (June 30).
Tradefresh Pty Ltd$130M-8.7x-
Oct 2005Bolthouse Farms (57%)Madison Dearborn Partners$1.1B-9.3x-
Feb 2005Fresh Express unit of Performance Food Group
(f) Chiquita reported an implied multiple of 9.4x based on 2004 actual EBITDA prior to deduction of $10 million in corporate costs.
Chiquita Brands International, Inc.$855M-10.7x-
May 2004Everfresh (60%)
(g) Fyffes acquired the remaining 40% in 2007 based on a predefined formula and indicated EBITDA multiple of 6.25x for 100% of the business.
Fyffes plc$75M-6.4x-
Nov 2003Sylvan Inc.Snyder Associated Companies Inc.$100M-8.3x-
Dec 2002Dole Food Company, Inc.David H. Murdock$2.3B-6.2x-
Aug 2001Fresh Express
(h) Includes $10 million earn-out payment, estimated at announcement of the transaction.
Performance Food Group$303M-7.2x-
Mean-8.1x-
Median-8.1x-

Advisor: Wells Fargo Securities

EV/LTM EBITDA selected range: 8.5x - 10.0x

14 comps
Dec 2013Earthbound FarmWhiteWave Foods--8.0x-
Oct 2013Del Monte Consumer ProductsDel Monte Pacific--9.4x-
Jun 2013Dole Food Co.David H. Murdock--10.4x-
Sep 2012Dole Asia FreshItochu--9.0x-
Jul 2012Bolthouse FarmsCampbell's Soup Co.--10.2x-
Nov 2011Turners & GrowersBayWa--7.2x-
Jun 2011Clement Pappas & Co.Lassonde Industries--6.7x-
Nov 2010Del Monte FoodsKKR, Vestar, Centerview--8.6x-
Jan 2010France ChampignonBonduelle--6.0x-
Nov 2009Birds Eye FoodsPinnacle Foods--9.5x-
Jun 2008Vitacress SaladsRAR Group--8.2x-
Oct 2005Bolthouse FarmsMadison Dearborn Partners--9.8x-
Feb 2005Fresh ExpressChiquita--9.4x-
Apr 2004J.R. WoodDole Food Co.--7.3x-
Mean-8.6x-
Median-8.8x-

DCF Assumptions

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

Goldman Sachs

2 DCF scenarios
Open
WACC
8.5% – 9.5%
Terminal method
Exit multiple
Terminal assumption
6.5x – 7.5x (LTM EV/EBITDA (terminal year 2016E))
Forecast basis
Management Forecasts (the "Forecasts") for Chiquita as a standalone company
Forecast period
fiscal years 2015 and 2016

Lazard

Open
WACC
8.0% – 8.5%
Terminal method
Perpetuity growth
Terminal assumption
1.0% – 2.0%
Forecast basis
Projections provided by the management of Fyffes (for both Fyffes and Chiquita)
Forecast period
fiscal year 2014 through fiscal year 2023

Wells Fargo Securities

Open
WACC
8.0% – 9.0%
Terminal method
Exit multiple
Terminal assumption
7.5x – 9.0x (2016P EBITDA)
Forecast basis
Chiquita Projections (for Chiquita) and Chiquita's Fyffes Projections (for Fyffes)
Forecast period
through 2016P
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