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Fairness Opinion Detail

K FOOpen source

Kellanova to Mars, Incorporated

Packaged Foods/Aug 2024/Goldman Sachs, Lazard

Deal Information

Target
Kellanova
Acquiror
Mars, Incorporated
Sector
Packaged Foods
Target Type
Public
Acquiror Type
Strategic
Advisors
Goldman Sachs, Lazard

Transaction Metrics

Enterprise Value
$36.4B
EV / LTM Sales
EV / LTM EBITDA
16.4x
EV / Fwd EBITDA
16.0x

Advisor Transaction Comparables

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

Advisor: Goldman Sachs

EV/FY1 EBITDA selected range: 12.1x - 21.5x

11 comps
-Sep 2023Hostess Brands, Inc.J. M. Smucker Co.----
-Jun 2018Pinnacle FoodsConagra Brands, Inc.----
Dec 2017Snyders-Lance, Inc.Campbell Soup Company----
Sep 2017Bob Evans Farms, Inc.Post Holdings, Inc.----
Feb 2017Mead Johnson Nutrition CompanyReckitt Benckiser Group plc----
-Jul 2016The WhiteWave Foods Co.Danone S.A.----
-Mar 2015Kraft Foods GroupH.J. Heinz Holding Corporation----
Jul 2014The Hillshire Brands CompanyTyson Foods, Inc.----
Feb 2013H.J. Heinz CompanyBerkshire Hathaway and 3G Capital----
Jan 2010Cadbury plcKraft Foods Group---12.1x
Apr 2008Wm. Wrigley Jr. CompanyMars, Incorporated---17.6x
Mean--14.9x
Median--14.9x

Advisor: Lazard

EV/LTM Adjusted EBITDA selected range: 15.5x - 17.5x

11 comps
Sep 2023Hostess Brands, Inc.The J.M. Smucker Company--17.9x-
Aug 2023Sovos Brands, Inc.Campbell Soup Company--19.8x-
Apr 2021The Bountiful CompanyNestlé S.A.--16.8x-
Feb 2021Planters® (snacking portfolio of The Kraft Heinz Company)Hormel Foods Corporation--15.0x-
Jun 2018Pinnacle Foods, Inc.Conagra Brands, Inc.--16.1x-
Dec 2017Snyders-Lance, Inc.Campbell Soup Company--20.9x-
Dec 2017Unilever Spreads businessKKR--10.0x-
Jul 2017Reckitt Benckiser Group plc's Food DivisionMcCormick & Company Inc.--20.0x-
Dec 2015Keurig Green MountainJAB Holding Company / Mondelēz International, Inc.--13.5x-
Mar 2015Kraft Foods Group, Inc.H.J. Heinz Company--15.2x-
Jul 2014The Hillshire Brands CompanyTyson Foods, Inc.--16.7x-
Mean-16.5x-
Median-16.7x-

DCF Assumptions

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

Goldman Sachs

Open
WACC
6.0% – 7.0%
Terminal method
Both
Terminal assumption
Exit multiple 12.0x – 14.0x (EV/LTM EBITDA applied to calendar year 2027 adjusted EBITDA); Perpetuity growth 1.0% – 2.6%
Forecast basis
Management Projections (referred to as "the Projections")
Forecast period
July 1, 2024 to December 31, 2027

Lazard

Open
WACC
6.25% – 6.75%
Terminal method
Perpetuity growth
Terminal assumption
1.5% – 2.0%
Forecast basis
Financial Projections
Forecast period
June 30, 2024 through end of calendar year 2027
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