Ralcorp Holdings, Inc. to ConAgra Foods, Inc.

Packaged FoodsCenter Store/Nov 2012/Barclays, Goldman Sachs

Deal Information

Target

Ralcorp Holdings, Inc.

Acquiror

ConAgra Foods, Inc.

Sector

Packaged FoodsCenter Store

Target Type

Public

Acquiror Type

Strategic

Advisors

Barclays, Goldman Sachs

Transaction Metrics

Enterprise Value

$6.8B

EV / LTM Sales

1.6x

EV / LTM EBITDA

12.1x

EV / Fwd EBITDA

9.2x

Advisor Transaction Comparables

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

Advisor: Barclays

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

24 comps


Selected Branded Food Transactions
	Jul 2012	Wm. Bolthouse Farms Inc. EBITDA multiple excludes value paid for step ups in tax basis (DEFM14A footnote 1).	Campbell Soup Company	-	2.2x	9.5x	-
	Feb 2012	Pringles (Procter & Gamble Co.) EBITDA multiple excludes value paid for step ups in tax basis (DEFM14A footnote 1).	Kellogg Company	-	1.8x	9.0x	-
	Nov 2010	Del Monte Foods Company	KKR & Co. L.P., Vestar Capital Partners, Centerview Partners	-	1.4x	8.7x	-
	Nov 2010	Sara Lee Corp.’s North American Fresh Bakery Business	Grupo Bimbo S.A.B. de C.V.	-	0.4x	9.1x	-
	Jul 2010	NBTY, Inc.	The Carlyle Group L.P.	-	1.3x	7.6x	-
	Jan 2010	Kraft Foods Inc.’s Frozen-Pizza Business EBITDA multiple excludes value paid for step ups in tax basis (DEFM14A footnote 1).	Nestlé S.A.	-	1.8x	10.6x	-
	Nov 2009	Birds Eye Foods LLC	Pinnacle Foods Group LLC	-	1.4x	8.2x	-
	Dec 2008	George Weston Limited’s Northwestern U.S. Bakery Business	Grupo Bimbo S.A.B. de C.V.	-	1.1x	8.7x	-
	Jul 2008	Bertolli (Unilever Plc)	SOS Corporacion Alimentaria S.A.	-	1.7x	10.5x	-
	Jun 2008	Folgers (Procter & Gamble Co.)	The J.M. Smucker Company	-	2.1x	9.0x	-
	Nov 2007	Post Cereals (Kraft Foods Inc.)	Ralcorp	-	2.4x	9.0x	-
	Feb 2007	Pinnacle Foods Group Inc.	The Blackstone Group L.P.	-	1.6x	10.5x	-
Selected Private Label / Food Service Transactions
	Oct 2011	Sara Lee Corp.’s North American Foodservice Coffee and Beverage Business	The J.M. Smucker Company	-	1.4x	-	-
	Aug 2011	Sara Lee Corp.’s North American Refrigerated Dough Business EBITDA multiple excludes value paid for step ups in tax basis (DEFM14A footnote 1).	Ralcorp	-	1.8x	7.1x	-
	Jun 2011	Clement Pappas and Company, Inc.	Lassonde Industries Inc.	-	1.0x	6.5x	-
	Sep 2010	S.T. Specialty Foods, Inc.	TreeHouse Foods, Inc.	-	1.9x	8.2x	-
	Jul 2010	Cliffstar Corporation EBITDA multiple excludes value paid for step ups in tax basis (DEFM14A footnote 1).	Cott Corporation	-	0.8x	5.3x	-
	Jun 2010	Fresh Start Bakeries (FSB Global Holdings, Inc.)	Aryzta AG	-	1.0x	8.1x	-
	Jun 2010	American Italian Pasta Company	Ralcorp	-	2.0x	8.1x	-
	May 2010	Michael Foods, Inc.	GS Capital Partners	-	1.1x	7.8x	-
	Mar 2010	Dakota Growers Pasta Company, Inc.	Viterra Inc.	-	0.9x	5.7x	-
	Feb 2010	Best Brands Corp.	CSM N.V.	-	0.9x	8.5x	-
	Dec 2009	Sturm Foods, Inc.	TreeHouse Foods, Inc.	-	1.9x	7.2x	-
	Oct 2006	Otis Spunkmeyer, Inc.	IAWS Group, plc	-	1.6x	11.7x	-
		Mean			1.5x	8.5x	-
		Median			1.5x	8.5x	-

Advisor: Goldman Sachs

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

24 comps


Selected Branded Food Transactions
	Jul 2012	Wm. Bolthouse Farms Inc. EBITDA multiple excludes value paid for step ups in tax basis (DEFM14A footnote 1).	Campbell Soup Company	-	2.2x	9.5x	-
	Feb 2012	Pringles (Procter & Gamble Co.) EBITDA multiple excludes value paid for step ups in tax basis (DEFM14A footnote 1).	Kellogg Company	-	1.8x	9.0x	-
	Nov 2010	Del Monte Foods Company	KKR & Co. L.P., Vestar Capital Partners, Centerview Partners	-	1.4x	8.7x	-
	Nov 2010	Sara Lee Corp.’s North American Fresh Bakery Business	Grupo Bimbo S.A.B. de C.V.	-	0.4x	9.1x	-
	Jul 2010	NBTY, Inc.	The Carlyle Group L.P.	-	1.3x	7.6x	-
	Jan 2010	Kraft Foods Inc.’s Frozen-Pizza Business EBITDA multiple excludes value paid for step ups in tax basis (DEFM14A footnote 1).	Nestlé S.A.	-	1.8x	10.6x	-
	Nov 2009	Birds Eye Foods LLC	Pinnacle Foods Group LLC	-	1.4x	8.2x	-
	Dec 2008	George Weston Limited’s Northwestern U.S. Bakery Business	Grupo Bimbo S.A.B. de C.V.	-	1.1x	8.7x	-
	Jul 2008	Bertolli (Unilever Plc)	SOS Corporacion Alimentaria S.A.	-	1.7x	10.5x	-
	Jun 2008	Folgers (Procter & Gamble Co.)	The J.M. Smucker Company	-	2.1x	9.0x	-
	Nov 2007	Post Cereals (Kraft Foods Inc.)	Ralcorp	-	2.4x	9.0x	-
	Feb 2007	Pinnacle Foods Group Inc.	The Blackstone Group L.P.	-	1.6x	10.5x	-
Selected Private Label / Food Service Transactions
	Oct 2011	Sara Lee Corp.’s North American Foodservice Coffee and Beverage Business	The J.M. Smucker Company	-	1.4x	-	-
	Aug 2011	Sara Lee Corp.’s North American Refrigerated Dough Business EBITDA multiple excludes value paid for step ups in tax basis (DEFM14A footnote 1).	Ralcorp	-	1.8x	7.1x	-
	Jun 2011	Clement Pappas and Company, Inc.	Lassonde Industries Inc.	-	1.0x	6.5x	-
	Sep 2010	S.T. Specialty Foods, Inc.	TreeHouse Foods, Inc.	-	1.9x	8.2x	-
	Jul 2010	Cliffstar Corporation EBITDA multiple excludes value paid for step ups in tax basis (DEFM14A footnote 1).	Cott Corporation	-	0.8x	5.3x	-
	Jun 2010	Fresh Start Bakeries (FSB Global Holdings, Inc.)	Aryzta AG	-	1.0x	8.1x	-
	Jun 2010	American Italian Pasta Company	Ralcorp	-	2.0x	8.1x	-
	May 2010	Michael Foods, Inc.	GS Capital Partners	-	1.1x	7.8x	-
	Mar 2010	Dakota Growers Pasta Company, Inc.	Viterra Inc.	-	0.9x	5.7x	-
	Feb 2010	Best Brands Corp.	CSM N.V.	-	0.9x	8.5x	-
	Dec 2009	Sturm Foods, Inc.	TreeHouse Foods, Inc.	-	1.9x	7.2x	-
	Oct 2006	Otis Spunkmeyer, Inc.	IAWS Group, plc	-	1.6x	11.7x	-
		Mean			1.5x	8.5x	-
		Median			1.5x	8.5x	-

DCF Assumptions

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

Barclays

Open

WACC: 6.5% – 7.5%
Terminal method: Exit multiple
Terminal assumption: 8.5x – 10.0x (FY2017 EBITDA)
Forecast basis: -
Forecast period: fiscal 2013-2017

Goldman Sachs

Open

WACC: 6.5% – 7.5%
Terminal method: Exit multiple
Terminal assumption: 8.5x – 10.0x (FY2017 EBITDA)
Forecast basis: -
Forecast period: fiscal 2013-2017

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Barclays	6.5% – 7.5%	Exit multiple	8.5x – 10.0x (FY2017 EBITDA)	-	fiscal 2013-2017	Open
Goldman Sachs	6.5% – 7.5%	Exit multiple	8.5x – 10.0x (FY2017 EBITDA)	-	fiscal 2013-2017	Open

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