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Fairness Opinion Detail

HSH FOOpen source

The Hillshire Brands Company to Tyson Foods, Inc.

Packaged FoodsProteins/Jul 2014/Centerview, Goldman Sachs

Deal Information

Target
The Hillshire Brands Company
Acquiror
Tyson Foods, Inc.
Sector
Packaged FoodsProteins
Target Type
Public
Acquiror Type
Strategic
Advisors
Centerview, Goldman Sachs

Transaction Metrics

Enterprise Value
$8.7B
EV / LTM Sales
2.2x
EV / LTM EBITDA
16.8x
EV / Fwd EBITDA
15.9x

Advisor Transaction Comparables

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

Advisor: Centerview

EV / LTM EBITDA selected range: 10.0x - 13.0x

19 comps
Apr 2014Michael Foods, Inc.Post Holdings, Inc.--10.4x-
Oct 2013Del Monte Consumer ProductsDel Monte Pacific Limited--9.8x-
Aug 2013Wish-BonePinnacle Foods Inc.--12.1x-
May 2013Smithfield Foods, Inc.Shuanghui International Holdings Limited--8.7x-
Feb 2013H.J. Heinz CompanyBerkshire Hathaway and 3G Capital--13.7x-
Jan 2013SkippyHormel Foods Corp.--10.7x-
Nov 2012Ralcorp Holdings, Inc.ConAgra Foods, Inc.--11.9x-
Jul 2012Bolthouse FarmsCampbell Soup Company--10.2x-
Feb 2012PringlesKellogg Company--11.1x-
Nov 2010Del Monte Foods CompanyKKR, Vestar Capital Partners, Centerview PE--8.8x-
Jul 2010Unilever’s Italian Findus BusinessBirds Eye Iglo--10.0x-
Jun 2010American Italian Pasta CompanyRalcorp Holdings, Inc.--8.1x-
Feb 2010Kettle FoodsDiamond Foods, Inc.--11.6x-
Jan 2010Kraft Foods Frozen PizzaNestle SA--14.9x-
Nov 2009Birds Eye Foods, Inc.Pinnacle Foods Inc.--9.5x-
Apr 2008William Wrigley Jr. CompanyMars, Inc.--18.5x-
Jul 2007Danone - Biscuits DivisionKraft Foods Inc.--13.2x-
Apr 2007GerberNestle SA--15.7x-
Feb 2007Pinnacle Foods Inc.The Blackstone Group--11.0x-
Mean-11.6x-
Median-11.0x-

Advisor: Goldman Sachs

14 comps
Nov 2009Birds Eye Foods, Inc.Pinnacle Foods Inc.$1.4B-9.5x-
Feb 2010Kettle Foods Inc.Diamond Foods, Inc.$616M-11.6x-
Nov 2010Del Monte Foods CompanyKKR and Co. L.P./Vestar Capital Partners/ Centerview Partners$5.3B-8.8x-
Feb 2012Pringles Snacking BusinessThe Kellogg Company$2.7B-11.1x-
Jul 2012Bolthouse Farms, Inc.Campbell Soup Company$1.6B-10.2x-
Nov 2012Ralcorp Holdings Inc.ConAgra Foods, Inc.$6.8B-11.9x-
Jan 2013Skippy Peanut Butter BusinessHormel Foods Corporation$700M-10.7x-
Feb 2013H.J. Heinz Company3G Capital$27.7B-13.7x-
May 2013Smithfield Foods, Inc.Shuanghui International Holdings Limited$7.1B-8.7x-
Aug 2013Wish-Bone Salad Dressings BusinessPinnacle Foods Inc.$575M-12.1x-
Oct 2013Consumer Products Business of Del Monte Foods CompanyDel Monte Pacific Limited$1.7B-9.8x-
Dec 2013US Foods Inc.Sysco Corp.$8.2B-9.9x-
Dec 2013Natural Selection Foods, LLC, d/b/a Earthbound FarmWhiteWave Foods Co.$600M-8.0x-
Apr 2014Michael Foods Inc.Post Holdings Inc.$2.5B-10.4x-
Mean-10.5x-
Median-10.3x-

DCF Assumptions

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

Centerview

Open
WACC
8.0% – 9.0%
Terminal method
Perpetuity growth
Terminal assumption
1.5% – 2.5%
Forecast basis
-
Forecast period
fiscal 2015-2024 (Forecasts plus Centerview's extrapolation for 2018-2024), discounted to… more

fiscal 2015-2024 (Forecasts plus Centerview's extrapolation for 2018-2024), discounted to 2014-06-30, mid-year convention

Goldman Sachs

Open
WACC
8.0% – 9.3%
Terminal method
Exit multiple
Terminal assumption
9.0x – 12.0x (fiscal 2019 Adjusted EBITDA)
Forecast basis
-
Forecast period
fiscal 2015-2019 (Forecasts with extrapolations for 2018-2019), discounted to 2014-06-30
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