Supervalu Inc. to United Natural Foods, Inc.

Grocery Retail/Jul 2018/Barclays, Lazard

Deal Information

Target

Supervalu Inc.

Acquiror

United Natural Foods, Inc.

Sector

Target Type

Public

Acquiror Type

Strategic

Advisors

Barclays, Lazard

Enterprise Value

$2.9B

EV / LTM Sales

EV / LTM EBITDA

7.0x

EV / Fwd EBITDA

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

EV / LTM EBITDA selected range: 6.5x - 7.5x

15 comps


	Oct 2017	Associated Grocers of Florida	SUPERVALU	-	-	8.8x	-
	Apr 2017	Unified Grocers	SUPERVALU	-	-	10.9x	-
	Oct 2016	Save-A-Lot	Onex	-	-	7.2x	-
	Mar 2016	Fresh Market	Apollo	-	-	6.6x	-
	Nov 2015	Roundy’s	Kroger	-	-	6.5x	-
	Sep 2014	Associated Wholesalers Printed out of date order (9/9/2014 between 2015 and 2014 rows).	C&S Wholesale Grocers	-	-	-	-
	Jun 2015	Delhaize Group	Ahold	-	-	7.6x	-
	Mar 2014	Safeway (U.S. Grocery only)	Albertsons	-	-	6.5x	-
	Sep 2013	United Supermarkets	Albertsons	-	-	6.2x	-
	Jul 2013	Nash Finch Co.	Spartan Stores	-	-	7.0x	-
-	Jul 2013	Spartan Stores Barclays lists the Spartan Stores / Nash Finch merger twice, once with each company as the target (row 10: Nash Finch, 7.0x; this row: Spartan Stores, 5.7x). This row is not linked to a deal (per Nico, 2026-11-07); row 10 carries the deal's observation.	Nash Finch Co.	-	-	5.7x	-
	Jul 2013	Harris Teeter Supermarkets, Inc.	Kroger	-	-	7.1x	-
	Jan 2013	SUPERVALU (Retail Assets)	Cerberus	-	-	3.9x	-
	Oct 2012	Smart & Final Stores	Ares Management	-	-	7.9x	-
	Dec 2011	Winn-Dixie Stores, Inc.	BI-LO	-	-	4.3x	-
		Mean			-	6.9x	-
		Median			-	6.8x	-

EV / LTM EBITDA selected range: 6.5x - 7.5x

12 comps


Food Distribution
	Oct 2017	Associated Grocers of Florida	SUPERVALU	-	0.3x	8.8x	-
	Apr 2017	Unified Grocers	SUPERVALU	-	0.1x	10.9x	-
	Nov 2016	Caito Food Service, BRT Logistics	SpartanNash	-	0.4x	-	-
	Jul 2013	Nash Finch Co.	Spartan Stores	-	0.2x	7.1x	-
Food Retail
	Oct 2016	Save-A-Lot	Onex	-	0.3x	7.2x	-
	Nov 2015	Roundy’s	Kroger	-	0.2x	6.5x	-
	Jun 2015	Delhaize Group	Ahold	-	0.5x	7.6x	-
	Mar 2014	Safeway (U.S. Grocery only)	Albertsons	-	-	6.5x	-
	Dec 2013	Arden Group (Gelson’s Markets)	TPG Capital	-	0.8x	10.2x	-
	Jul 2013	Harris Teeter Supermarkets, Inc.	Kroger	-	0.5x	7.1x	-
	Jan 2013	New Albertsons (SUPERVALU)	Albertsons LLC (Cerberus)	-	0.2x	3.9x	-
	Dec 2011	Winn-Dixie Stores, Inc.	BI-LO	-	0.1x	4.3x	-
		Mean			0.3x	7.3x	-
		Median			0.3x	7.1x	-

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

2 DCF scenarios

WACC: 9.0% – 10.0%
Terminal method: Perpetuity growth
Terminal assumption: 1.0% – 2.0%
Forecast basis: -
Forecast period: last three quarters of fiscal 2019 through fiscal 2023; terminal value as of February 2023

2 DCF scenarios

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Barclays 2 DCF scenarios	9.0% – 10.0%	Perpetuity growth	1.0% – 2.0%	-	last three quarters of fiscal 2019 through fiscal 2023; terminal value as of February 2023	Open
Lazard 2 DCF scenarios	8.5% – 9.5%	Perpetuity growth	1.0% – 2.0%	-	last three quarters of fiscal 2019 through fiscal 2023	Open