RubinBrown Food & Beverage Mid-Year Review 2014

M&A Activity Overview: All Food & Beverage Deals

F&B Deal Activity Continues to Gain Steam Deal activity in the food and beverage sector over the last few years has been quite strong, marked by a string of high- profile transactions recently. Even as M&A activity has been ticking up virtually across the board, food and beverage deals have taken their share of the headlines of late. There are numerous factors that have contributed to the heightened deal activity in the food & beverage space over the last few years including fear of increased taxes, favorable market conditions, rising demand for protein, and the relative familiarity of the industry, among others. It is widely viewed that much of 2012 M&A activity in the United States was fueled by sellers’ fears of increased capital i t t A d i t d i th fi t th i ht th ga ns ax ra es. s ep c e n e gure o e r g , ere were roughly 480 transactions that closed in the food and beverage industry during 2012, with median transaction values of nearly $23 million. 1 Absent the fear of a near-term increase in capital gains tax rates in 2013, the number of deals closed declined slightly to approximately 420 transactions; the median transaction value during 2013 was $14 million 1 . Through the first half of 2014, the number of deals closed is generally on pace with 2012 and 2013, with 200 transactions closing thus far – relative to approximately 215 and 180 transactions during the first two quarters of 2012 and 2013, respectively. The median transaction size for deals closed during the first half of 2014 was approximately $26 0 million 1 . . 1 Median transaction values referenced herein are based on a limited number of transactions where this information was available. Food & Beverage Sector: 2014 Mid-Year Update

Food & Beverage Deal Activity

$30

160

140

$25

120

$20

100

$15

80

$ millions

nsactions Closed

60

$10

# of Tra

40

$5

20

$-

-

MedianDeal Size

Quarterly Transactions

Source: S&P Capital IQ Reflects all closed Food & Beverage transactions, regardless of size. Median Deal Size is based on transactions where this information was available.

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