Kraft Foods Group, Inc. to H.J. Heinz Company

Deal Information

Target

Kraft Foods Group, Inc.

Acquiror

H.J. Heinz Company

Sector

Target Type

Public

Acquiror Type

Strategic

Advisors

Centerview

Enterprise Value

$55.4B

EV / LTM Sales

3.0x

EV / LTM EBITDA

EV / Fwd EBITDA

15.4x

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

EV / CY2015E EBITDA selected range: 13.0x - 15.0x

16 comps


May 2014	The Hillshire Brands Company	Tyson Foods, Inc.	-	2.1x	16.7x	-
Feb 2013	H. J. Heinz Company	3G Capital and Berkshire Hathaway	-	2.4x	13.9x	-
Nov 2012	Ralcorp Holdings, Inc.	ConAgra Foods, Inc	-	1.5x	11.9x	-
Nov 2010	Del Monte Foods	Funds affiliated with Kohlberg Kravis Roberts & Co. L.P., Vestar Capital Partners and Centerview Capital, L.P.	-	1.4x	8.8x	-
Jan 2010	Cadbury plc	Kraft Foods Inc. (prior to Kraft’s separation from Mondelēz International, Inc.)	-	2.2x	13.0x	-
Jan 2010	North American Frozen Pizza Business of Kraft Food Global, Inc.	Nestlé S.A.	-	1.8x	12.5x	-
Jul 2008	Anheuser-Busch	InBev	-	2.9x	12.5x	-
Apr 2008	Wm. Wrigley Jr. Company	Mars, Incorporated	-	4.1x	18.5x	-
Jul 2007	Biscuits Division of Groupe Danone S.A.	Kraft Foods Inc. (prior to Kraft’s separation from Mondelēz International, Inc.)	-	2.6x	13.2x	-
Jan 2001	Ralston Purina Company	Nestlé S.A.	-	3.8x	16.2x	-
Dec 2000	IBP, Inc.	Tyson Foods Inc.	-	0.3x	7.5x	-
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	The Pillsbury Company	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			2.3x	13.1x	-
	Median			2.2x	13.1x	-

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

WACC: 6.75% – 7.25%
Terminal method: Perpetuity growth
Terminal assumption: 2.5%
Forecast basis: -
Forecast period: calendar 2015-2019 (2015 Financial Plan; 2019 extrapolated), mid-year convention

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Centerview	6.75% – 7.25%	Perpetuity growth	2.5%	-	calendar 2015-2019 (2015 Financial Plan; 2019 extrapolated), mid-year convention	Open