H.J. Heinz Company to 3G Capital and Berkshire Hathaway

Packaged FoodsCenter Store/Feb 2013/BofA, Centerview, Moelis

Deal Information

Target

H.J. Heinz Company

Acquiror

3G Capital and Berkshire Hathaway

Sector

Packaged FoodsCenter Store

Target Type

Public

Acquiror Type

Financial

Advisors

BofA, Centerview, Moelis

Transaction Metrics

Enterprise Value

$27.7B

EV / LTM Sales

2.4x

EV / LTM EBITDA

13.7x

EV / Fwd EBITDA

12.6x

Advisor Transaction Comparables

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

Advisor: BofA

EV / LTM EBITDA selected range: 11.0x - 14.0x

9 comps


Nov 2012	Ralcorp Holdings, Inc.	ConAgra Foods, Inc.	-	1.5x	11.9x	-
Nov 2010	Del Monte Foods Co.	KKR & Co.	-	1.4x	8.8x	-
Jan 2010	Kraft Foods Frozen Pizza Division	Nestlé S.A.	-	1.8x	12.5x	-
Jul 2007	Danone S.A.’s Biscuits Division	Kraft Foods Group, Inc.	-	2.6x	13.2x	-
Dec 2000	The Quaker Oats Company	PepsiCo, Inc.	-	2.8x	15.6x	-
Oct 2000	Keebler Foods Company	Kellogg Company	-	1.6x	11.1x	-
Jul 2000	Diageo PLC’s Pillsbury Division	General Mills, Inc.	-	1.7x	11.0x	-
Jun 2000	Nabisco Holdings Corp.	Philip Morris Companies Inc.	-	2.1x	13.2x	-
Jun 2000	Bestfoods	Unilever plc	-	2.6x	13.9x	-
	Mean			2.0x	12.4x	-
	Median			1.8x	12.5x	-

Advisor: Centerview

EV / LTM EBITDA selected range: 11.0x - 14.0x

9 comps


Nov 2012	Ralcorp Holdings Inc.	ConAgra Foods, Inc.	-	1.5x	11.9x	-
Nov 2010	Del Monte Foods Co.	Funds affiliated with Kohlberg Kravis Roberts & Co. L.P., Vestar Capital Partners and Centerview Partners	-	1.4x	8.8x	-
Jan 2010	Kraft Foods North America frozen pizza business	Nestlé S.A.	-	1.8x	12.5x	-
Jul 2007	Group Danone S.A.’s biscuits division	Kraft Foods Group, Inc.	-	2.6x	13.2x	-
Dec 2000	Quaker Oats Co.	PepsiCo, Inc.	-	2.8x	15.6x	-
Oct 2000	The Keebler Company	The Kellogg Company	-	1.6x	11.1x	-
Jul 2000	Pillsbury	General Mills, Inc.	-	1.7x	11.0x	-
Jun 2000	Nabisco Holdings Corp.	Philip Morris Companies Inc.	-	2.1x	13.2x	-
Jun 2000	Bestfoods	Unilever PLC	-	2.6x	13.9x	-
	Mean			2.0x	12.4x	-
	Median			1.8x	12.5x	-

Advisor: Moelis

EV / LTM EBITDA selected range: 11.0x - 14.0x

21 comps


Dec 2012	Morningstar Foods, LLC	Saputo Inc.	$1.4B	-	9.3x	-
Nov 2012	Ralcorp Holdings, Inc.	ConAgra Foods, Inc.	$6.8B	-	12.1x	-
Feb 2012	Pringles Business of Procter & Gamble Company 1 Financial data were based on latest available fiscal year end information; not latest quarter-end information.	Kellogg Company	$2.7B	-	11.1x	-
Jun 2010	American Italian Pasta Co.	Ralcorp Holdings, Inc.	$1.3B	-	8.3x	-
Jan 2010	North American Frozen Pizza Business of Kraft Food Global, Inc.	Nestlé S.A.	$3.7B	-	12.5x	-
Nov 2009	Birds Eye Foods, Inc.	Pinnacle Foods Group, Inc.	$1.4B	-	9.5x	-
Sep 2009	Cadbury plc	Kraft Foods Inc.	$21.4B	-	13.3x	-
Jun 2008	The Folgers Coffee Company	The J.M. Smucker Company	$3.4B	-	8.8x	-
Apr 2008	Wm. Wrigley Jr. Company	Mars, Incorporated	$23.0B	-	18.4x	-
Nov 2007	Post Foods 1 Financial data were based on latest available fiscal year end information; not latest quarter-end information.	Ralcorp Holdings, Inc.	$2.6B	-	11.3x	-
Jul 2007	Global Biscuit Business of Groupe Danone S.A. 1 Financial data were based on latest available fiscal year end information; not latest quarter-end information.	Kraft Foods Global, Inc.	$7.2B	-	13.6x	-
Feb 2007	Pinnacle Foods Group, Inc.	The Blackstone Group, L.P.	$2.1B	-	8.9x	-
Aug 2006	European Frozen Foods Division of Unilever plc 1 Financial data were based on latest available fiscal year end information; not latest quarter-end information.	Permira Advisors Ltd.	$2.2B	-	9.9x	-
Aug 2006	Chef America, Inc. Printed 'Aug. 2006'; the deal record is dated 2002-08-06 (per Nico, 2026-11-08).	Nestlé S.A.	$2.6B	-	14.5x	-
Dec 2002	Adams Confectionary Business of Pfizer Inc. 1 Financial data were based on latest available fiscal year end information; not latest quarter-end information.	Cadbury Schweppes plc	$3.8B	-	12.8x	-
Oct 2001	The Pillsbury Company 2 Financial data reflected revised deal terms pursuant to a second amended merger agreement. Linked to the Pillsbury deal dated July 2000, as printed by Centerview and BofA.	General Mills, Inc.	$10.4B	-	10.1x	-
Dec 2000	The Quaker Oats Company	PepsiCo, Inc.	$14.0B	-	15.6x	-
Oct 2000	Keebler Foods Company	Kellogg Company	$4.5B	-	10.7x	-
Jun 2000	Nabisco Holdings Corp.	Philip Morris Companies Inc.	$19.0B	-	13.7x	-
Jun 2000	International Home Foods	ConAgra Foods, Inc.	$2.9B	-	8.5x	-
May 2000	Bestfoods	Unilever plc	$23.5B	-	14.5x	-
	Mean			-	11.8x	-
	Median			-	11.3x	-

DCF Assumptions

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

BofA

2 DCF scenarios

Open

WACC: 5.5% – 7.0%
Terminal method: Exit multiple
Terminal assumption: 10.0x – 12.0x (Heinz fiscal 2018 EBITDA)
Forecast basis: -
Forecast period: fiscal 2014-2018

Centerview

2 DCF scenarios

Open

WACC: 5.5% – 7.0%
Terminal method: Exit multiple
Terminal assumption: 10.0x – 12.0x (Heinz estimated 2018 EBITDA)
Forecast basis: -
Forecast period: fiscal years ending April 2014 through April 2018

Moelis

Open

WACC: 5.5% – 7.0%
Terminal method: Exit multiple
Terminal assumption: 9.5x – 11.5x (Heinz estimated 2018 EBITDA)
Forecast basis: -
Forecast period: fiscal years ending April 30, 2014 through 2018

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
BofA 2 DCF scenarios	5.5% – 7.0%	Exit multiple	10.0x – 12.0x (Heinz fiscal 2018 EBITDA)	-	fiscal 2014-2018	Open
Centerview 2 DCF scenarios	5.5% – 7.0%	Exit multiple	10.0x – 12.0x (Heinz estimated 2018 EBITDA)	-	fiscal years ending April 2014 through April 2018	Open
Moelis	5.5% – 7.0%	Exit multiple	9.5x – 11.5x (Heinz estimated 2018 EBITDA)	-	fiscal years ending April 30, 2014 through 2018	Open

Compare across opinions →