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Fairness Opinion Detail

PAS FOOpen source

PepsiAmericas, Inc. to PepsiCo., Inc.

BeveragesNon-Alcoholic/Aug 2009/BofA, Centerview, Goldman Sachs

Deal Information

Target
PepsiAmericas, Inc.
Acquiror
PepsiCo., Inc.
Sector
BeveragesNon-Alcoholic
Target Type
Public
Acquiror Type
Strategic
Advisors
BofA, Centerview, Goldman Sachs

Transaction Metrics

Enterprise Value
$6.1B
EV / LTM Sales
1.3x
EV / LTM EBITDA
8.7x
EV / Fwd EBITDA
8.9x

Advisor Transaction Comparables

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

Advisor: BofA

EV / LTM EBITDA selected range: 8.0x - 10.0x

11 comps
Nov 2008Coca Cola Amatil LtdLion Nathan Ltd (offer withdrawn on February 9, 2009)$6.1B-10.9x-
Mar 2008Lebedyansky JSCPepsiCo, Inc./The Pepsi Bottling Group, Inc.$2.1B-13.4x-
Nov 2007Sandora, LLC
Enterprise Value/LTM EBITDA printed as N/A.
PepsiCo, Inc./PepsiAmericas, Inc.$679M---
Jun 2007Panamco México, S.A. de C.V.
Printed as 'Panamco México, S.A. de C.V.', June 2007, USD 3,594m; Perella Weinberg and Goldman Sachs date Coca-Cola FEMSA's Panamerican Beverages acquisition 2002. Linked to the 2002 deal (D7).
Coca Cola Femsa, S.A.B. de C.V.$3.6B-7.7x-
Apr 2006Dr Pepper/Seven-Up Companies, Inc.Cadbury Schweppes plc$1.5B-7.1x-
Oct 2002Pepsi-Gemex, S.A. de C.V.The Pepsi Bottling Group, Inc.$1.3B-6.3x-
Apr 2001Hondo Incorporated and Herbco Enterprises, Inc.Coca-Cola Enterprises Inc.$1.3B-10.7x-
Feb 2001Coca-Cola Bottlers Philippines, Inc.San Miguel Corp./Coca-Cola Company$1.2B-7.3x-
Aug 2000PepsiAmericas, Inc.Whitman Corporation$662M-11.8x-
Oct 1999Coca-Cola Beverages plcCoca-Cola Hellenic Bottling Company S.A.$2.1B-14.5x-
Sep 1999Dr Pepper Bottling Company of TexasCadbury Schweppes plc/The Carlyle Group$691M-8.1x-
Mean-9.8x-
Median-9.4x-

Advisor: Centerview

EV / LTM EBITDA selected range: 8.0x - 10.0x

11 comps
Nov 2008Coca Cola Amatil LtdLion Nathan Ltd (offer withdrawn on February 9, 2009)$6.1B-10.9x-
Mar 2008Lebedyansky JSCPepsiCo, Inc./The Pepsi Bottling Group, Inc.$2.1B-13.4x-
Nov 2007Sandora, LLC
Enterprise Value/LTM EBITDA printed as N/A.
PepsiCo, Inc./PepsiAmericas, Inc.$679M---
Jun 2007Panamco México, S.A. de C.V.
Printed as 'Panamco México, S.A. de C.V.', June 2007, USD 3,594m; Perella Weinberg and Goldman Sachs date Coca-Cola FEMSA's Panamerican Beverages acquisition 2002. Linked to the 2002 deal (D7).
Coca Cola Femsa, S.A.B. de C.V.$3.6B-7.7x-
Apr 2006Dr Pepper/Seven-Up Companies, Inc.Cadbury Schweppes plc$1.5B-7.1x-
Oct 2002Pepsi-Gemex, S.A. de C.V.The Pepsi Bottling Group, Inc.$1.3B-6.3x-
Apr 2001Hondo Incorporated and Herbco Enterprises, Inc.Coca-Cola Enterprises Inc.$1.3B-10.7x-
Feb 2001Coca-Cola Bottlers Philippines, Inc.San Miguel Corp./Coca-Cola Company$1.2B-7.3x-
Aug 2000PepsiAmericas, Inc.Whitman Corporation$662M-11.8x-
Oct 1999Coca-Cola Beverages plcCoca-Cola Hellenic Bottling Company S.A.$2.1B-14.5x-
Sep 1999Dr Pepper Bottling Company of TexasCadbury Schweppes plc/The Carlyle Group$691M-8.1x-
Mean-9.8x-
Median-9.4x-

Advisor: Goldman Sachs

EV / LTM EBITDA selected range: 7.0x - 9.0x

7 comps
Jan 1998CCBG Corporation and Texas Bottling Group, Inc.Coca-Cola Enterprises Inc.--13.1x-
Jan 1999DP Bottling Company of TexasInvestor Group--8.1x-
Jan 2000PepsiAmericas, Inc.
Printed in the list as 'the former PepsiAmericas, Inc.'.
Whitman Corporation--11.8x-
Jan 2001Hondo Incorporated and Herbco Enterprises, Inc.Coca-Cola Enterprises Inc.--10.5x-
Jan 2002Pepsi-Gemex S.A. de C.V.The Pepsi Bottling Group, Inc.--6.8x-
Jan 2002Panamerican Beverages, Inc.Coca-Cola FEMSA, S.A.B. de C.V.--8.2x-
Jan 2006Dr Pepper/Seven Up Bottling Group Inc.Cadbury Schweppes plc--7.1x-
Mean-9.4x-
Median-8.2x-

DCF Assumptions

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

BofA

Open
WACC
7.5% – 8.5%
Terminal method
Perpetuity growth
Terminal assumption
1.5%
Forecast basis
-
Forecast period
fiscal 2009-2018 (PepsiCo-PAS forecasts; 5.0% annual FCF growth 2013-2018 at PepsiCo mana… more

fiscal 2009-2018 (PepsiCo-PAS forecasts; 5.0% annual FCF growth 2013-2018 at PepsiCo management's instruction), discounted to 2009-06-30

Centerview

Open
WACC
7.5% – 8.5%
Terminal method
Perpetuity growth
Terminal assumption
1.5%
Forecast basis
-
Forecast period
fiscal 2009-2018 (PepsiCo-PAS forecasts; 5.0% annual FCF growth 2013-2018 at PepsiCo mana… more

fiscal 2009-2018 (PepsiCo-PAS forecasts; 5.0% annual FCF growth 2013-2018 at PepsiCo management's instruction), discounted to 2009-06-30

Goldman Sachs

Open
WACC
7.0% – 8.0%
Terminal method
Perpetuity growth
Terminal assumption
1.0% – 2.0%
Forecast basis
-
Forecast period
2009-2012 (Forecasts), terminal value in 2012, discounted to the beginning of August 2009
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