Chiquita Brands International, Inc. to Fyffes plc

Packaged FoodsFresh & Produce/Mar 2014/Goldman Sachs, Lazard, Wells Fargo Securities

Deal Information

Target

Chiquita Brands International, Inc.

Acquiror

Fyffes plc

Sector

Packaged FoodsFresh & Produce

Target Type

Public

Acquiror Type

Strategic

Advisors

Goldman Sachs, Lazard, Wells Fargo Securities

Transaction Metrics

Enterprise Value

EV / LTM Sales

EV / LTM EBITDA

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 2013	Earthbound 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 2013	Dole Food Company, Inc.	David H. Murdock	$1.5B	-	10.2x	-
Sep 2012	Dole 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 2012	Bolthouse Farms (c) Company reports an EBITDA multiple of 9.5x including tax benefits.	Campbell Soup Company	$1.6B	-	10.2x	-
Dec 2011	Turners & Growers (72.5%)	BayWa Aktiengesellschaft	$226M	-	7.2x	-
Feb 2010	France Champignon (d) Financials as of 2008.	Bonduelle	$139M	-	6.3x	-
Jun 2008	Vitacress Salads	RAR Group	$105M	-	8.2x	-
Jun 2008	Desarrollo Agroindustrial de Frutales S.A., Frutas de Exportacion S.A. and Caribana	Fresh Del Monte Produce Inc.	$403M	-	8.1x	-
Jul 2007	Wight Salads Group (70%)	RAR Group	$41M	-	5.7x	-
Jul 2006	Chiquita Brands South Pacific Limited (e) Financials as of end of fiscal year 2005 (June 30).	Tradefresh Pty Ltd	$130M	-	8.7x	-
Oct 2005	Bolthouse Farms (57%)	Madison Dearborn Partners	$1.1B	-	9.3x	-
Feb 2005	Fresh 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 2004	Everfresh (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 2003	Sylvan Inc.	Snyder Associated Companies Inc.	$100M	-	8.3x	-
Dec 2002	Dole Food Company, Inc.	David H. Murdock	$2.3B	-	6.2x	-
Aug 2001	Fresh 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 2013	Earthbound Farm	WhiteWave Foods	-	-	8.0x	-
Oct 2013	Del Monte Consumer Products	Del Monte Pacific	-	-	9.4x	-
Jun 2013	Dole Food Co.	David H. Murdock	-	-	10.4x	-
Sep 2012	Dole Asia Fresh	Itochu	-	-	9.0x	-
Jul 2012	Bolthouse Farms	Campbell's Soup Co.	-	-	10.2x	-
Nov 2011	Turners & Growers	BayWa	-	-	7.2x	-
Jun 2011	Clement Pappas & Co.	Lassonde Industries	-	-	6.7x	-
Nov 2010	Del Monte Foods	KKR, Vestar, Centerview	-	-	8.6x	-
Jan 2010	France Champignon	Bonduelle	-	-	6.0x	-
Nov 2009	Birds Eye Foods	Pinnacle Foods	-	-	9.5x	-
Jun 2008	Vitacress Salads	RAR Group	-	-	8.2x	-
Oct 2005	Bolthouse Farms	Madison Dearborn Partners	-	-	9.8x	-
Feb 2005	Fresh Express	Chiquita	-	-	9.4x	-
Apr 2004	J.R. Wood	Dole 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

Open

WACC: 8.5% – 9.5%
Terminal method: Exit multiple
Terminal assumption: 6.5x – 7.5x (LTM EBITDA as of end of year 2016)
Forecast basis: Management Forecasts (the Forecasts)
Forecast period: fiscal years 2014 through 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

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Goldman Sachs	8.5% – 9.5%	Exit multiple	6.5x – 7.5x (LTM EBITDA as of end of year 2016)	Management Forecasts (the Forecasts)	fiscal years 2014 through 2016	Open
Lazard	8.0% – 8.5%	Perpetuity growth	1.0% – 2.0%	Projections provided by the management of Fyffes (for both Fyffes and Chiquita)	fiscal year 2014 through fiscal year 2023	Open
Wells Fargo Securities	8.0% – 9.0%	Exit multiple	7.5x – 9.0x (2016P EBITDA)	Chiquita Projections (for Chiquita) and Chiquita's Fyffes Projections (for Fyffes)	through 2016P	Open

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