Whole Foods Market, Inc. to Amazon.com, Inc.

Grocery Retail/Jun 2017/Evercore

Deal Information

Target

Whole Foods Market, Inc.

Acquiror

Amazon.com, Inc.

Sector

Grocery Retail

Target Type

Public

Acquiror Type

Strategic

Advisors

Evercore

Enterprise Value

$13.7B

EV / LTM Sales

EV / LTM EBITDA

10.6x

EV / Fwd EBITDA

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

TEV/LTM Adjusted EBITDA selected range: 8.0x - 10.0x

20 comps


Apr 2017	Unified Grocers, Inc.	Supervalu Inc.	-	-	10.0x	-
Oct 2016	Save-A-Lot (subsidiary of Supervalu Inc.)	Onex Corp.	-	-	6.4x	-
Mar 2016	The Fresh Market, Inc.	Apollo Global Management, LLC	-	-	7.1x	-
Nov 2015	Roundy's, Inc.	The Kroger Co.	-	-	7.1x	-
Jun 2015	Delhaize Group	Koninklijke Ahold N.V.	-	-	8.1x	-
Aug 2014	Demoulas Super Markets, Inc. (50.5% stake) * Not publicly disclosed.	Arthur T. Demoulas	-	-	-	-
Mar 2014	Safeway Inc.	Cerberus Capital Management, L.P., Kimco Realty Corporation, Klaff Realty, LP, Lubert-Adler Partners LP, Schottenstein Stores Corporation	-	-	5.0x	-
Dec 2013	Arden Group, Inc.	TPG	-	-	10.0x	-
Jul 2013	Nash Finch Company	Spartan Stores, Inc.	-	-	6.7x	-
Jul 2013	Harris Teeter Supermarkets, Inc.	The Kroger Co.	-	-	7.3x	-
Jan 2013	Supervalu (five retail grocery banners)	Cerberus Capital Management L.P.	-	-	4.0x	-
Oct 2012	Smart & Final Holdings Corp.	Ares Management	-	-	7.5x	-
Dec 2011	Winn-Dixie Stores, Inc.	Lone Star Funds	-	-	5.4x	-
Jun 2011	BJ's Wholesale Club, Inc.	CVC Capital Partners, Leonard Green & Partners LP	-	-	7.6x	-
Dec 2009	Ukrop's Super Markets, Inc. * Not publicly disclosed.	Ahold USA	-	-	-	-
Oct 2009	Bi-Lo * Not publicly disclosed.	Delhaize Group	-	-	-	-
Oct 2007	TOPS Friendly Markets, LLC * Not publicly disclosed.	Morgan Stanley Private Equity	-	-	-	-
Mar 2007	Pathmark Stores Inc.	The Great Atlantic & Pacific Tea Company	-	-	10.0x	-
Feb 2007	Wild Oats Marketplace	Whole Foods	-	-	15.3x	-
Feb 2007	Smart & Final Inc.	Apollo Global Management, LLC	-	-	10.5x	-
	Mean			-	8.0x	-
	Median			-	7.4x	-

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

WACC: 7.0% – 9.0%
Terminal method: Both
Terminal assumption: Exit multiple 7.0x – 9.5x (FY2022E EBITDA); Perpetuity growth 2.5% – 3.5%
Forecast basis: Management Estimates (Whole Foods Market Projections, with terminal year FY2022 EBITDA of… more
Management Estimates (Whole Foods Market Projections, with terminal year FY2022 EBITDA of $2,058M and normalized unlevered FCF of $845M derived by Evercore and confirmed by the Company); also analyzed using Public Equity Analysts' Estimates (equity research published after May 10, 2017, with derived FY2022 EBITDA of $1,556M and normalized unlevered FCF of $516M)
Forecast period: fiscal years 2017 through 2022

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Evercore	7.0% – 9.0%	Both	Exit multiple 7.0x – 9.5x (FY2022E EBITDA); Perpetuity growth 2.5% – 3.5%	Management Estimates (Whole Foods Market Projections, with terminal year FY2022 EBITDA of… more Management Estimates (Whole Foods Market Projections, with terminal year FY2022 EBITDA of $2,058M and normalized unlevered FCF of $845M derived by Evercore and confirmed by the Company); also analyzed using Public Equity Analysts' Estimates (equity research published after May 10, 2017, with derived FY2022 EBITDA of $1,556M and normalized unlevered FCF of $516M)	fiscal years 2017 through 2022	Open