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Fairness Opinion Detail

PF FOOpen source

Pinnacle Foods Inc. to Conagra Brands, Inc.

Packaged FoodsCenter Store/Jun 2018/Credit Suisse, Evercore

Deal Information

Target
Pinnacle Foods Inc.
Acquiror
Conagra Brands, Inc.
Sector
Packaged FoodsCenter Store
Target Type
Public
Acquiror Type
Strategic
Advisors
Credit Suisse, Evercore

Transaction Metrics

Enterprise Value
$10.9B
EV / LTM Sales
3.4x
EV / LTM EBITDA
16.1x
EV / Fwd EBITDA
15.9x

Advisor Transaction Comparables

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

Advisor: Credit Suisse

EV / LTM EBITDA selected range: 15.0x - 18.0x

14 comps
Dec 2017Snyder’s-Lance, Inc.Campbell Soup Company--20.9x-
Dec 2017Amplify Snack Brands, Inc.The Hershey Company--19.8x-
Sep 2017Bob Evans Farms, Inc.Post Holdings, Inc.--16.5x-
Jul 2017Reckitt Benckiser’s Food DivisionMcCormick & Company Inc.--19.5x-
Feb 2017Mead Johnson Nutrition CompanyReckitt Benckiser Group plc--17.4x-
Nov 2016Bellisio Foods IncCharoen Pokphand Foods Pcl--13.1x-
Jul 2016WhiteWave Foods Co.Danone SA--25.0x-
Nov 2015Boulder Brands, Inc.Pinnacle--15.7x-
Oct 2015Diamond Foods, Inc.Snyder’s-Lance, Inc.--15.4x-
Mar 2015Kraft Foods Group, Inc.The H.J. Heinz Company/3G Capital--16.5x-
Jul 2014The Hillshire Brands CompanyTyson Foods, Inc.--16.7x-
May 2014Ragú/Bertolli (Unilever)Mizkan Group--15.8x-
May 2014Pinnacle
Not consummated (Evercore marks this transaction '* Transaction not consummated').
The Hillshire Brands Company--12.3x-
Feb 2013The H.J. Heinz CompanyBerkshire Hathaway / 3G Capital--13.4x-
Mean-17.0x-
Median-16.5x-

Advisor: Evercore

EV / LTM EBITDA selected range: 14.0x - 20.0x

17 comps
Apr 2018Ainsworth Pet Nutrition, LLCThe J. M. Smucker Company--20.0x-
Feb 2018Blue Buffalo Pet Products, Inc.General Mills, Inc.--25.5x-
Dec 2017Snyder’s-Lance, Inc.Campbell Soup Company--21.1x-
Dec 2017Amplify Snack Brands, Inc.The Hershey Company--19.8x-
Sep 2017Bob Evans Farms, Inc.Post Holdings, Inc.--16.5x-
Jul 2017Reckitt Benckiser Group plc (Food Division)McCormick & Company, Incorporated--19.5x-
Feb 2017Mead Johnson Nutrition CompanyReckitt Benckiser Group plc--17.7x-
Nov 2016Bellisio Parent LLCCharoen Pokphand Foods pcl--13.1x-
Jul 2016The WhiteWave Foods CompanyDanone S.A.--24.7x-
Nov 2015Boulder Brands, Inc.Pinnacle--15.7x-
Oct 2015Diamond Foods, Inc.Snyder’s-Lance, Inc.--15.4x-
Mar 2015Kraft Goods Group, Inc.
Printed 'Kraft Goods Group, Inc.' (Kraft Foods Group, Inc.).
H.J. Heinz Company--16.5x-
Feb 2015Big Heart Pet BrandsThe J. M. Smucker Company--15.1x-
Jul 2014The Hillshire Brands CompanyTyson Foods, Inc.--16.7x-
May 2014Ragu / Bertolli Brands (Unilever)Mizkan Group--15.8x-
May 2014Pinnacle
* Transaction not consummated
The Hillshire Brands Company--12.3x-
Feb 2013H.J. Heinz CompanyBerkshire Hathaway Inc./3G Capital--13.6x-
Mean-17.6x-
Median-16.5x-

DCF Assumptions

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

Credit Suisse

Open
WACC
6.0% – 7.0%
Terminal method
Exit multiple
Terminal assumption
12.0x – 13.0x (Pinnacle fiscal 2022 EBITDA)
Forecast basis
-
Forecast period
nine months ended 2018-12-31 and fiscal 2019-2022

Evercore

2 DCF scenarios
Open
WACC
7.0% – 7.5%
Terminal method
Perpetuity growth
Terminal assumption
2.0% – 2.5%
Forecast basis
-
Forecast period
2018-07-01 through 2022
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