Post on 15-May-2018
Market Analysis Spring 2015
Healthy Lifestyle and Craft Beer Quarterly Report
Non-Durables Fitness/Weight Management • Natural, Organic & Functional Food & Beverage • Fitness Centers • Natural Living (Beauty, Household & Pet) • Weight Management • Supplements Wholesalers • Supplements Direct-to-Consumer • Health & Wellness Retailers/Distributors
Craft Products • Craft Beer & Hard Cider
Kurt M. Roth Owen L. Hart David M. Silver Satoshi Matsumoto Managing Director Managing Director Managing Director Managing Director +1.312.609.4689 +1.415.627.3273 Head of European Director of Japan M&A kroth@rwbaird.com ohart@rwbaird.com Investment Banking +1.312.609.5446 +44.207.667.8216 smatsumoto@rwbaird.com dsilver@rwbaird.com
Table of Contents Page
Please refer to Appendix – Disclaimers and Other Disclosures on page 25.
• Robert W. Baird & Co. Healthy Lifestyle and Craft Beer Practice ........................ 1
• Healthy Lifestyle and Craft Beer Stock Activity .................................................. 2
• Quarterly Transaction Update ............................................................................ 4
• Addressable Markets .......................................................................................... 8
• Public Company Performance ........................................................................... 14
• Same-Store Sales Performance ........................................................................ 20
• Equity Capital Markets Overview ...................................................................... 21
• Recently Priced IPOs ........................................................................................ 22
• Baird’s Healthy Lifestyle and Craft Beer Transaction Experience ...................... 23
• Global Investment Banking Contact List ........................................................... 24
The following report has been prepared by the Global Investment Banking Department of Robert W. Baird & Co. This report is an overview and analysis of industry and consolidation trends and is not intended to provide investment recommendations on any specific industry or company. A complete listing of all companies covered by Baird U.S. Equity Research and applicable research disclosures can be accessed at <http://www.rwbaird.com/researchdisclosure>. You can also call 1-800-792-2473 or write: Robert W. Baird, Equity Research, 24th Floor, 777 E. Wisconsin Avenue, Milwaukee, WI 53202.
Robert W. Baird & Co. (“Baird”) is a leading middle market focused investment bank serving the M&A and equity financing needs of our clients throughout the U.S., Europe and Asia. Since 2008, we have advised on 404 M&A transactions totaling $89 billion and have served as an underwriter on 547 equity offerings totaling more than $172 billion in raised capital. Baird’s balanced buy- and sell-side practice provides expertise for public and private companies, while our dedicated financial sponsor coverage further expands opportunities and financing resources for our clients. Through close coordination between our U.S., European and Asian bankers, we work to optimize opportunities and results for clients in the international marketplace. Approximately one-third of our M&A activity over the past five years has involved international transactions.
Robert W. Baird & Co. Healthy Lifestyle and Craft Beer Practice
Robert W. Baird & Co. 1
AN EXPERIENCED, PROVEN AND TRUSTED ADVISOR Baird’s Global Investment Banking team possesses highly relevant industry expertise and significant transaction experience in the Healthy Lifestyle sector. • We have in-depth advisory and equity origination capabilities in the Healthy Lifestyle space:
– Multiple high-profile assignments over the last decade – Unique knowledge of consumer growth investors – Expert insight into current “hot button” issues
• Deep industry knowledge and proprietary transaction and benchmarking database • Established relationships with, and access to, key industry and client decision makers • Significant senior resources dedicated to industry and execution • Focus on long-term partnerships and senior level attention
Baird Healthy Lifestyle Practice Contacts
Kurt M. Roth Managing Director +1.312.609.4689 kroth@rwbaird.com
Owen L. Hart Managing Director +1.415.627.3273 ohart@rwbaird.com
David M. Silver Managing Director Head of European Investment Banking +44.207.667.8216 dsilver@rwbaird.com
Satoshi Matsumoto Managing Director +1.312.609.5446 smatsumoto@rwbaird.com
Baird is One of the Most Active Advisors and Underwriters to the Consumer Sector
Baird’s Consumer investment banking team has a proven track record of delivering outstanding results for our clients. We offer comprehensive strategic advisory and capital market services across several consumer sectors. Our transaction experience, frequent dialogue with industry participants and robust deal flow provide us with unique insight into the sectors we serve.
• Since the start of 2010, completed 111 consumer M&A and public equity transactions worth $28 billion
• Market maker in over 500 Consumer stocks • 5 Consumer focused research analysts covering 82
companies
Middle-Market Deal Award Nine consecutive years 2005 - 2013
“Most Trusted” Research Eleven consecutive years 2004 - 2014(1)
Adviser of the Year Awards 2008 - 2011
“Wisconsin Specialty Protein sale to Omega Protein” Nutrition Business Journal’s Top Deal of the Year January 2014
_____________________ (1) Baird ranked No.1 for “Most Trusted” Research for the eleventh consecutive year in the 2014 Greenwich Associates Surveys (2004 - 2014). Surveys conducted with U.S.
small-cap and mid-cap fund managers.
Healthy Lifestyle and Craft Beer Stock Activity
Robert W. Baird & Co. 2
Rising Valuations Supportive of Increased Transaction Activity
LTM Stock Performance
90%
95%
100%
105%
110%
115%
120%
Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15
HLCB S&P 500
10.4%12.3%
_____________________ Source: Capital IQ. LTM as of March 31, 2015. See footnote at bottom of page for list of companies that comprise Healthy Lifestyle and Craft Beer (HLCB) index.
Recent Stock Performance
Index 1-Month %
Change 3-Month %
Change 6-Month %
Change 1-Year % Change
S&P 500 (1.7%) 0.4% 4.8% 10.4%
Healthy Lifestyle and Craft Beer 2.9% 4.6% 10.8% 12.3%
Natural, Organic & Functional Food & Beverage 1.3% 12.6% 15.2% 28.4%
Supplements Wholesalers 16.1% 4.1% (1.2%) (9.8%)
Supplements Direct-to-Consumer 6.4% (2.6%) 5.2% (17.8%)
Health & Wellness Retailers/Distributors 0.1% 0.6% 24.9% 1.8%
Craft Products 3.9% (3.4%) 7.4% (0.7%)
Fitness Centers 2.9% 9.4% 14.3% 23.6%
Weight Management (3.1%) (26.3%) (22.6%) (10.1%)
Recent Healthy Lifestyle and Craft Beer IPOs 2.9% 8.4% 22.9% 7.5% _____________________ Source: Capital IQ. LTM as of March 31, 2015. Natural, Organic & Functional Food & Beverage index consists of BDBD, FRPT, HAIN, TSE:2220, LWAY, MJN, MNST, SET:ICHI, TSX:SOY and WWAV. VMS Wholesalers index consists of ENXTAM:DSM, NUTR, OME and PRGO. VMS Direct-to-Consumer index consists of HLF, LFVN, NATR, NUS, RELV and USNA. Health & Wellness Retailers/Distributors index consists of TFM, GNC, NGVC, SFM, UNFI, VSI and WFM. Craft Products index consists of BREW and SAM. Fitness Centers index consists of ASX:AAD, TSE:4801, BMV:SPORT S, LTM, BSE:533200 and CLUB. Weight Management index consists of MED, NTRI and WTW. Healthy Lifestyle and Craft Beer index consists of all companies listed directly above. Recent Healthy Lifestyle and Craft Beer IPOs index consists of SFM, WWAV, NGVC, FRPT, GNC and TFM.
Healthy Lifestyle and Craft Beer Stock Activity
Robert W. Baird & Co. 3
Recent Valuations
Index
Median Multiple
LTM Revenue LTM EBITDA 2015 P/E
Healthy Lifestyle and Craft Beer 1.4x 11.5x 21.5x
Natural, Organic & Functional Food & Beverage 3.0x 19.3x 31.8x
Supplements Wholesalers 1.1x 7.7x 16.1x
Supplements Direct-to-Consumer 0.8x 8.4x 15.3x
Health & Wellness Retailers/Distributors 1.2x 13.4x 24.4x
Craft Products 2.6x 19.1x 35.2x
Fitness Centers 2.0x 10.2x 19.1x
Weight Management 1.4x 7.3x 16.3x
Recent Healthy Lifestyle and Craft Beer IPOs 2.0x 14.9x 40.1x
_____________________ Source: Capital IQ. Figures as of March 31, 2015. See “Recent Stock Performance” table on page 2 for list of companies that comprise each index.
Top 10 Stock Price Gainers in Q1 2015
40.4% 38.7%
29.5% 28.7% 27.7% 26.7% 25.3% 23.4% 22.8% 15.4%
0%
10%
20%
30%
40%
50%
HL Corp(Shenzhen)
Nu SkinEnterprises
Inc.
Omega ProteinCorporation
TalwalkarsBetter Value
Fitness Limited
MonsterBeverage
Corporation
TheWhiteWave
FoodsCompany
Life TimeFitness, Inc.
JohnsonHealth Tech
Co., Ltd.
Central SportsCo.,Ltd.
Lifeway FoodsInc.
Top 10 Stock Price Losers in Q1 2015
(71.9% )
(39.2% )(28.5% )
(15.3% ) (15.2% ) (13.8% ) (10.8% ) (10.8% ) (10.7% ) (8.9% )
(80%)(70%)(60%)(50%)(40%)(30%)(20%)(10%)
0%
WeightWatchers
International,Inc.
LifevantageCorporation
Ardent LeisureGroup
Grupo SportsWorld, S.A.B.
de C.V.
VitaminShoppe, Inc.
BoulderBrands, Inc.
SunOpta Inc. Nature'sSunshine
Products Inc.
Medifast Inc. KoninklijkeDSM N.V.
_____________________ Source: Capital IQ. YTD as of March 31, 2015.
Quarterly Transaction Update
Robert W. Baird & Co. 4
Pages 4-6 list M&A transactions, private placements and equity offerings announced during Q1 2015 for categories within the scope of this report. The Healthy Lifestyle and Craft Beer sectors registered significant levels of M&A activity on a global basis in the first quarter. We have identified 34 change-of-control M&A transactions announced during the quarter; this level was slightly below the quarterly average of 37 over the past two years.
Global Healthy Lifestyle M&A Activity by Quarter
29
48
36 34 3732
4534
0
10
20
30
40
50
60
Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15
Deal Count Average Deal Count
Average = 37
_____________________
Source: Capital IQ, Dealogic and Robert W. Baird & Co. analysis. Includes deals in the following segments: Natural, Organic & Functional Food and Beverages; Natural Living products; VMS Wholesalers and Direct-to-Consumer platforms; Health & Wellness Specialty Retailers and Distributors; Craft Beer & Hard Cider; Weight Management; and Fitness Centers
Global Healthy Lifestyle and Craft Beer M&A Activity in Q1
Date Announced
Target Name / Nationality
Target
Acquiror
Deal Value ($mil) Commentary Segment Description
30-Mar-15 Total Fitness / U.K. Fitness Centers Operator of health clubs
Northedge Capital Partners; RooGreen Ventures; Company Management
- Private equity firms Northedge and RooGreen joined the executive management of Total Fitness in acquiring the business, which has 17 locations in northern England
30-Mar-15 Angel's Share Brands / U.S. Craft Products Maker of bourbon whiskey
Bacardi - The acquisition allows Bacardi to expand in the super-premium spirits segment by entering the bourbon category of the North American whiskey sector
29-Mar-15 Perrin Brewing / U.S. Craft Products Brewer of beer Oskar Blues Brewery - The acquisition by Fireman Capital-backed Oskar Blues, whose products are distributed in 42 states, will help Michigan-based Perrin build its geographic presence
25-Mar-15 Club Pilates / U.S. Fitness Centers Operator and franchisor of Pilates clubs
LAG Fit - LAG Fit, a firm specializing in acquiring and expanding wellness concepts, acquired 35-studio chain Club Pilates
16-Mar-15 MonaVie / U.S. Supplements Direct-to-Consumer
Maker of nutritional products
Jeunesse Global - Following the acquisition, Jeunesse, a healthy living oriented direct selling company, has a network of 4 million distributors in over 100 countries
16-Mar-15 Life Time Fitness / U.S. Fitness Centers Operator of fitness clubs
Leonard Green & Partners; TPG Capital; LNK Partners
4,071.8 The pending deal’s share price represents a 73% premium to the closing price on August 22, 2014, when Life Time announced it was considering strategic options
11-Mar-15 My Goodness / U.K. Supplements Wholesale
Producer of sports nutrition and protein drinks/snacks
Aurivo Co-operative Society Limited
- The deal provides Ireland-based Aurivo a significant position in the expanding sports nutrition and protein drinks/snacks market in the U.K. and Ireland
9-Mar-15 Brand Aromatics / U.S. Natural, Organic & Functional
Maker of marinades and broths
McCormick & Company 63.0 Brand Aromatics, with $28 million in 2014 sales, enhances the breadth of value-added products in McCormick’s offering for packaged food companies and restaurants
9-Mar-15 Natural American Pet Products and Natural Life Pet Products / U.S.
Natural Living Producer of pet foods Arthur Dogswell - The acquisition brings vertical integration in the premium pet treat space to natural pet food producer Arthur Dogswell
9-Mar-15 Full Sail Brewing / U.S. Craft Products Brewer of beer
Encore Consumer Capital; Oregon Craft Brewers
- Encore Consumer Capital acquired employee owned Full Sail, which brewed 115,000 barrels in 2014, through its newly formed investment group Oregon Craft Brewers
5-Mar-15 Ritual Wellness / U.S. Natural, Organic & Functional
Producer of organic juices
Project Juice - The combined company seeks to source from more farms due to its enhanced scale
__________________ Source: Capital IQ, Dealogic and Robert W. Baird & Co. analysis.
Quarterly Transaction Update
Robert W. Baird & Co. 5
Global Healthy Lifestyle and Craft Beer M&A Activity in Q1 (continued)
Date Announced
Target Name / Nationality
Target
Acquiror
Deal Value ($mil) Commentary Segment Description
4-Mar-15 Empire Kosher Poultry (remaining 80% stake) / U.S.
Natural, Organic & Functional
Producer of kosher poultry products
The Hain Celestial Group
57.6 Empire Kosher, with $100+ million in 2014 sales, expands Hain’s farm to table offerings
2-Mar-15 Citrusource / U.S. Natural, Organic & Functional
Supplier of orange juice and citrus products
SunOpta Grains and Foods
13.3 The deal is aligned with SunOpta’s strategy to grow its healthy beverages portfolio
28-Feb-15 Two Virgin Active Gyms in Glamorgan and Middleton / U.K.
Fitness Centers Operator of two fitness centers
LaSalle Investment Management
13.9 LaSalle acquired the two Virgin Active fitness centers to capitalize on the growing interest in health and fitness in the U.K.
20-Feb-15 Belvedere International / Canada
Natural Living Producer of health and beauty care products
The Hain Celestial Group
- Hain established a personal care base in Canada with the acquisition of Belvedere, whose Live Clean brand of natural products fueled annual sales of $25 million
17-Feb-15 Healthy Food Ingredients / U.S.
Natural, Organic & Functional
Supplier of organic food ingredients
Hesco - Specialty grain producer Hesco acquired Healthy Food Ingredients in order to expand into specialty ingredients for organic foods
16-Feb-15 Enjoy Life Foods / U.S. Natural, Organic & Functional
Producer of allergen free snacks
Mondelez International - Enjoy Life Foods fits the strategy of Mondelez to drive growth in snacking by expanding its portfolio through allergy-friendly 'free from' offerings
11-Feb-15 JackedPack / U.S. Supplements Direct-to-Consumer
Online retailer of health supplements
IdeoClick - E-commerce company IdeoClick acquired JackedPack, a provider of nutrition supplement samples, to expand its presence in nutrition supplements
9-Feb-15 Nutricap Labs / U.S. Supplements Wholesale
Manufacturer of nutraceuticals
Twinlab Consolidated Holdings, Inc.
12.0 The acquisition is designed to provide more product options and services for the customers of Nutricap and Twinlab
9-Feb-15 Native Remedies Inc., Certain Assets / U.S.
Supplements Direct-to-Consumer
Marketer of herbal supplements
Silver Star Brands (Blyth, Inc.)
- The acquisition complements the direct-to-consumer portfolio of Silver Star and enhances its e-commerce market share
4-Feb-15 Yellow Chips BV (51%) / Netherlands
Natural, Organic & Functional
Producer of vegetable and organic chips
Diamond Foods - Yellow Chips allows Diamond Foods to compete more effectively in the high-growth vegetable chip category in Europe
30-Jan-15 Eos Fitness Holdings / U.S. Fitness Centers Operator of a chain of fitness centers
Bruckmann, Rosser, Sherrill; Performance Equity Management; Stellus Capital
- Eos Fitness, a chain of 16 clubs in the southwest U.S., was acquired by a private equity group that includes BRS, which brings fitness center expertise through prior ownership of Town Sports International
29-Jan-15 Krave Pure Foods / U.S. Natural, Organic & Functional
Producer of meat-based snack items
The Hershey Company - The acquisition will help Hershey enter the all-natural meat snacks market and expand in the broader snacks space. Krave has trailing full-year sales of about $35 million
27-Jan-15 17 Planet Fitness locations in New York / U.S.
Fitness Centers Operator of fitness clubs Exaltare Capital Partners; Brightwood Capital Advisors
- Private equity firms Exaltare and Brightwood acquired 17 Planet Fitness sites in New York from a franchisee, bringing their ownership of Planet Fitness locations to 52 franchises
23-Jan-15 Elysian Brewing Company / U.S.
Craft Products Brewer of beer Anheuser-Busch InBev - The proposed acquisition fits the strategy of AB InBev, which has acquired two other craft brewers since the start of 2014
20-Jan-15 Salix Animal Health / U.S. Natural Living Producer and distributor of dog chews, treats and snacks
Spectrum Brands Holdings
- With annual revenue of about $100 million, Salix enables Spectrum’s pet supplies unit to expand its dog treats business, leverage Salix’s enzyme technology and seek new opportunities in Europe and Latin America
16-Jan-15 Planter's S.p.A. / Italy Natural Living Maker of herbal products and natural cosmetics
Investor group - Italy-based private equity firm DGPA SGR sold Planter’s to an unspecified investor group
14-Jan-15 XS Energy / U.S. Natural, Organic & Functional
Producer of sugar-free energy drinks
Amway - Amway, the exclusive distributor of XS Energy since 2003, will expand the brand’s geographic reach, including in Southeast Asia. XS Energy is distributed in 38 countries with annual sales of $150 million
9-Jan-15 Nutritional Laboratories International / U.S.
Supplements Wholesale
Producer of nutritional and dietary supplements
Elite One Source Nutrisciences
- Elite One Source, majority-owned by Ampersand Capital Partners, acquired NLI from Praesidian Capital as part of its strategy to become the leading contract maker of nutritional and dietary supplements
8-Jan-15 Freedom Fitness Milton Keynes / U.K.
Fitness Centers Operator of a fitness club in Warwick, U.K.
Wealden Leisure - U.K.-based Wealden Leisure, which operates 30+ Freedom Leisure fitness centers, added to its U.K. portfolio with this acquisition
5-Jan-15 Sun Orchard (majority stake) / U.S.
Natural, Organic & Functional
Provider of fruit juices and beverage products
Centre Partners Management
- Sun Orchard brings a premium juice platform to Centre Partners, which intends to fuel growth through new product lines and channels plus select acquisitions
__________________ Source: Capital IQ, Dealogic and Robert W. Baird & Co. analysis.
Quarterly Transaction Update
Robert W. Baird & Co. 6
Global Healthy Lifestyle and Craft Beer Private Placements in Q1
Date Announced
Target Name / Nationality
Target Investment Amount ($mil) Type Investor(s) Use of Proceeds Segment Description
27-Mar-15 The Pulse Beverage Company / U.S.
Natural, Organic & Functional
Producer of healthy beverages
$1.0 Equity Private investors Expand its operations into Mexico and Canada, and support working capital growth
23-Mar-15 Smari Organics / U.S. Natural, Organic & Functional
Maker of organic Icelandic yogurt
3.8 Equity Private investors Working capital
19-Mar-15 Fireman's Brew / U.S. Craft Products Producer of beer and coffee
5.0 Equity Private investors -
16-Mar-15 Five Star Organics / U.S. Natural, Organic & Functional
Maker of organic candy bars
4.0 Equity Private investors -
12-Mar-15 Camden Town Brewery / U.K.
Craft Products Brewer of beer 2.7 Equity Private investors Fund growth and return manufacturing to the U.K.
11-Mar-15 Nature Cell / U.S. Natural, Organic & Functional
Producer of health drinks and organic foods
2.0 Debt Private investors Operations
10-Mar-15 Windy Hill Spirits / U.S. Craft Products Maker of whiskeys 5.0 Debt Private investors -
6-Mar-15 Payette Brewing Company / U.S.
Craft Products Brewer of beer 1.3 Equity Private investors -
2-Mar-15 Bhakti Chai / U.S. Natural, Organic & Functional
Provider of ready-to-drink and bottled tea and coffee products
4.9 Equity Colorado Impact Fund and private investors
Manufacturing facility in Colorado, sales and marketing, and national distribution
27-Feb-15 Columbia Phyto Technology / U.S.
Supplements Wholesale
Producer of organic and conventional powders
1.5 Debt Private investors -
20-Feb-15 True Drinks Holdings / U.S. Natural, Organic & Functional
Producer of healthy beverages
4.3 Equity Toba Capital Working capital
12-Feb-15 BAI Brands / U.S. Natural, Organic & Functional
Producer of healthy beverages
15.0 Equity Private investors Working capital
9-Feb-15 Pangea Naturals / U.S. Natural Living Maker of skincare products
1.5 Equity Private investors -
6-Feb-15 Biena / U.S. Natural, Organic & Functional
Maker of chickpea snacks
1.5 Equity Private investors -
1-Feb-15 Wisconsin Brewing Co / U.S. Craft Products Brewer of beer 2.0 Equity Private investors Working capital and capex
29-Jan-15 Bowen Hayward Group / U.S.
Craft Products Brewer of beer 1.2 Debt & Equity
Private investors -
29-Jan-15 Westbourne / U.S. Natural, Organic & Functional
Producer of organic popcorn
4.0 Equity Private investors -
22-Jan-15 Synergy Strips Corp. / U.S. Supplements Wholesale
Producer of orally dissolving film strips
6.0 Debt & Equity
Knight Therapeutics
Acquisition of the Focus Factor business
20-Jan-15 American Botanicals / U.S. Supplements Wholesale
Processor of herbs, roots and barks
2.7 Equity
Advantage Capital Partners
Fund growth
20-Jan-15 KonaRed / U.S. Natural, Organic & Functional
Maker of beverages and nutritional products
1.0 Debt Group 10 Holdings -
14-Jan-15 New Oberpfalz Brewing / U.S.
Craft Products Brewer of beer 1.0 Equity Private investors Pay executives
12-Jan-15 Wright Leisure Limited / U.K. Fitness Centers Operator of a chain of gyms
7.6 Equity Business Growth Fund plc
Fund growth
8-Jan-15 Sonoma Beverage Works / U.S.
Craft Products Maker of flavored ciders
1.2 Equity/ Debt
Private investors -
7-Jan-15 Soylent / U.S. Weight Management
Maker of food replacement products
20.0 Equity Andreessen Horowitz; Index Ventures; Lerer Hippeau Ventures
Expand manufacturing, shipping, product development, biotechnology research and resource procurement
Global Healthy Lifestyle and Craft Beer Equity Offerings in Q1
Offer Date Issuer Name /
Nationality
Issuer
Offering Type Gross Offering Amount ($mil) Use of Proceeds Segment Description
4-Mar-15 Sprouts Farmers Market / U.S.
Health & Wellness Retail
Retailer of fresh, natural and organic food
Follow-on 559.4 -
15-Feb-15 By-health Co. / China Supplements Wholesale
Maker of nutritional supplements
Follow-on 298.9 General corporate purposes and working capital
_____________________ Source: Capital IQ, Dealogic and Robert W. Baird & Co. analysis.
Quarterly Transaction Update
Robert W. Baird & Co. 7
Selected LTM Healthy Lifestyle and Craft Beer M&A Activity
Date Announced Target Target Nationality Target Description Acquiror
Deal Value ($mil)
EV / LTM
Revenue EBITDA
16-Mar-15 Life Time Fitness United States Operator of fitness clubs Leonard Green & Partners; TPG Capital; LNK Partners
$4,071.8 3.2x 10.9x
5-Dec-14 McCleskey Mills United States Provider of shelled peanuts and seed peanuts
Olam International 176.0 - 6.0
21-Nov-14 TIPNESS Japan Operator of fitness clubs Nippon Television Holdings 203.0 0.7 -
26-Oct-14 Chiquita Brands International
United States Processor of produce Banco Safra S.A. and Sucocitrico Cutrale
1,321.7 0.4 12.6
15-Oct-14 Penford United States Maker of natural ingredient systems Ingredion 338.5 0.8 12.4
9-Oct-14 New Britain Palm Oil Papua New Guinea Producer of palm oil Sime Darby Plantation 2,010.8 3.4 12.6
24-Sep-14 Green Eagle Holdings Singapore Producer of palm oil PT. BW Plantation, Tbk 880.9 6.1 -
17-Sep-14 So Delicious Dairy Free United States Producer of dairy-free frozen desserts
The WhiteWave Foods Company
195.0 1.7 -
12-Sep-14 Isopure United States Producer of protein powder and drinks
Glanbia 153.0 2.1 -
8-Sep-14 Annie's United States Maker of natural and organic food products
General Mills 823.0 4.0 38.6
7-Jul-14 WILD Flavors Switzerland Maker of natural ingredients, flavors and colors
Archer Daniels Midland 3,096.5 2.3 -
4-Jul-14 Apple & Eve United States Branded juice manufacturer Lassonde Industries 147.9 - 9.7
2-Jul-14 Vitacost.com United States Online retailer of health and wellness products
The Kroger Co. 281.2 0.6 -
30-Jun-14 Flagstone Foods United States Producer of snacks and dried fruits TreeHouse Foods 875.0 1.2 16.1
11-Jun-14 Healthy Directions, LLC United States Maker of nutritional supplements Helen of Troy 195.0 1.3 8.0 14-Apr-14 DIANA S.A.S. France Nutritional and natural-ingredients
foods producer Symrise AG 1,796.2 2.9 14.0
10-Apr-14 Deoleo SA Spain Producer of olive oil, vinegars, sauces and olives
CVC Capital Partners 1,258.1 1.2 12.5
Mean 2.0x 14.0x Median 1.5x 12.5x
_____________________ Source: Capital IQ, Dealogic and Robert W. Baird & Co. analysis. List includes deals with reported values of at least $100 million and a disclosed valuation multiple.
Addressable Markets
Robert W. Baird & Co. 8
Natural, Organic & Functional Food & Beverage Market
The Natural, Organic & Functional food and beverage market includes food and beverages classified as natural, organic or functional by the Nutrition Business Journal. Natural foods and beverages typically focus on the health benefits derived from natural ingredients. Organic food and beverages generally are produced without chemicals, pesticides, herbicides, hormones, antibiotics or genetically modified feed crops. Functional foods and beverages are designed to provide health benefits via the inclusion or combination of certain ingredients.
The U.S. market for Natural, Organic and Functional food and beverage items increased to approximately $104 billion in 2013 from approximately $95 billion in 2012, representing growth of nearly 10% versus an increase of around 3% for the entire food and beverage market. Natural, Organic and Functional food and beverage sales accounted for 14% of total U.S. food sales in 2013, up from just over 11% in 2008.
U.S. Natural, Organic & Functional Retail Sales
$66.7 $72.0 $74.8 $79.6 $86.6 $94.8 $103.9$114.0 $124.7
$136.2$148.3
$161.2$174.8
0%
2%
4%
6%
8%
10%
$0$25$50$75
$100$125$150$175
2007 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E
2007-2013 CAGR: 7.7% 2013-2019 CAGR: 9.1%
$in b
illio
nsYear-over-year growth
_____________________ Source: Nutrition Business Journal, Sterling-Rice Group.
Breakdown of 2013 Sector Sales by Category and Channel Natural Sales by Category Organic Sales by Category Functional Category Sales by Category
Dairy14%
Fruit & Vegetables
11%
Breads & Grains15%
Meat, Fish & Poultry
10%Beverages
23%
Snack Foods8%
Packaged & Prepared
Foods15%
Condiments4%
Dairy16%
Fruit & Vegetables
39%Breads &
Grains10%
Meat, Fish, & Poultry
3%
Beverages11%
Snack Foods5%
Packaged & Prepared
Foods12%
Condiments4%
Dairy5% Breads &
Grains13%
Beverages65%
Snack Foods8%
Packaged & Prepared
Foods8%
Other1%
Natural Sales by Channel Organic Sales by Channel Functional Sales by Channel
Retail - Health & Wellness
32%
Internet 2%Retail - Mass
63%
Other 3%
Retail - Health & Wellness,
44%
Internet, 3%
Retail - Mass, 46%
Other, 6%
Retail - Health & Wellness
10% Internet1%
Retail - Mass88%
Other1%
_____________________ Source: Nutrition Business Journal, Sterling-Rice Group.
Addressable Markets
Robert W. Baird & Co. 9
Supplements Market
The supplements market includes vitamins, minerals, herbs & botanicals, specialty supplements, meal replacements and sports nutrition products. After an extended period of impressive growth, the U.S. supplements market generated retail sales of nearly $35 billion in 2013.
U.S. Supplements Retail Sales
$23.8 $25.5 $27.0$28.2 $30.1 $32.5 $34.9 $37.4
$39.9 $42.7 $45.6 $48.7$52.0
0%
2%
4%
6%
8%
$0
$10
$20
$30
$40
$50
2007 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E
2007-2013 CAGR: 6.6% 2013-2019 CAGR: 6.9%
$in b
illio
nsYear-over-year growth
_____________________ Source: Nutrition Business Journal, Sterling-Rice Group.
Breakdown of 2013 Sector Sales by Category and Channel Sales by Category Sales by Channel
Specialty & Other19%
Vitamins32%
Herbs & Botanicals
17%
Sports Nutrition
13%
Minerals7%
Meal Replacements
12%
Retail - Health & Wellness
36%
Internet6%Retail - Mass
28%
Other30%
_____________________ Source: Nutrition Business Journal, Sterling-Rice Group.
Addressable Markets
Robert W. Baird & Co. 10
Natural Living Products Market
The natural living products market includes personal care, household and pet products classified as natural by the Nutrition Business Journal. Natural living products focus on the health benefits derived from natural ingredients.
The U.S. natural living products market increased to $18.6 billion in 2013 from $16.9 billion in 2012, representing expansion of 10%, far outpacing growth for conventional products in the personal care, household and pet segments. High single-digit annual growth is projected for this market over the next several years.
U.S. Natural Living Product Sales
$12.9 $13.4 $14.2 $15.2 $16.9 $18.6 $20.5 $22.4 $24.4 $26.6 $28.8$31.2
0%
3%
6%
9%
12%
15%
0
10
20
30
40
2008 2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E
2007-2013 CAGR: 8.3% 2013-2019 CAGR: 9.0%
Reve
nue (
$ in b
illio
ns) Year-over-year growth
_____________________ Source: Nutrition Business Journal, Sterling-Rice Group.
Breakdown of 2013 Sector Sales by Category and Channel Personal Care Sales by Category Household Sales by Category Pet Sales by Category
Skincare39%
Hair Products25%
Bath and Toilet Soap
13%
Aroma and Fragrances
5%
Deodorants3%
Oral Hygiene4%
Cosmetics6%
Other5%
Total Organic Fiber (Linens and Clothing)
28%
Natural and Organic
Household Cleaners
22%
Natural and Organic Pet
Food48%
Organic Flowers
2%
Pet Supplements
45%
Natural and Organic Food
45%
Supplies and Other10%
Personal Care Sales by Channel Household Sales by Channel
MM and Beauty Supply
Discounters 21%
Other Direct and
Multichannel NPC Brands
13%
Network Marketing 18%
Natural and Specialty
Retail 30%
Other 18%
Natural and Specialty
Retail, 30%
MM and Beauty Supply Discounters,
45%
Department Store,
Boutique, Salon, and Spa, 13%
Other, 13%
_____________________ Source: Nutrition Business Journal, Sterling-Rice Group.
Addressable Markets
Robert W. Baird & Co. 11
Craft Beer Market
The U.S. craft beer market increased to $14.2 billion in 2013 from $11.9 billion in 2012, representing expansion of 19%, well above the overall growth of the beer market. Craft beer is expected to represent about 20% of market volume by 2020, quadruple the market share of 2010.
U.S. Craft Beer Revenue and Production Growth
$9.0 $10.3 $11.9 $14.2$17.2 $19.3
$21.9$24.5
$27.9$30.9
0
20
40
60
0
10
20
30
40
2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E
2010-2013 CAGR: 16.4% 2014-2019 CAGR: 12.4%
Reve
nue (
$ in b
illio
ns)
Barrels(millions)
_____________________ Source: Historical and projected revenue figures provided by Mintel; reflects total U.S. sales (on- and off- premises). Barrel production figures apply constant 2013 revenue / barrel metric (per Brewers Association data) to annual revenue figures.
U.S. Craft Market Share (by Volume)
4.0%
8.0%
12.0%
16.0%
20.0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Marke
t Sha
re
Actual Projected
_____________________ Actual market share figures provided by Brewers Association. Projections assume straight-line growth from 2014 to 2019 to reach anticipated ~20% share by volume.
Number of Breweries
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2013 2014
Numb
er of Br
eweries
ProhibitionEra
Industry Majors’ Rise to Dominance
Resurgence of Craft Brewing Popularity
_____________________ Source: Brewers Association.
Addressable Markets
Robert W. Baird & Co. 12
Fitness Centers Market
The U.S. Fitness Centers market consists of about 30,000 membership-based exercise facilities. Fitness centers operate as parts of multi-site chains or as single-location entities. Following steady market growth in recent years, the Fitness Center market exceeds $22 billion in revenue, with aggregate membership of about 53 million.
U.S. Fitness Center Revenue
$18.5 $19.1 $19.5 $20.3 $21.4 $21.8 $22.4 $22.9 $23.6 $24.4 $25.1 $25.9 $26.4
0%
1%
2%
3%
4%
5%
6%
$0$3$6$9
$12$15$18$21$24$27
2007 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E
2007-2013 CAGR: 3.2% 2013-2019 CAGR: 2.8%
$in b
illio
nsYear-over-year growth
_____________________ Source: IHRSA and IBISWorld industry reports. Revenue for 2007-2013 is based on IHRSA data. Estimates for 2013-2019 are based on IBISWorld growth projections.
U.S. Fitness Center Membership
46.7 45.6 45.3 50.2 51.4 51.3 52.9 54.1 54.8 56.0 56.9 58.2 58.8
(6%)
(3%)
0%
3%
6%
9%
12%
0
15
30
45
60
2007 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E
2007-2013 CAGR: 2.1% 2013-2019 CAGR: 1.8%
Mem
bers
in m
illio
ns Year- over-year growth
_____________________ Source: IHRSA and IBISWorld industry reports.
Participation Rate by Sport in U.S.
12%
13%
21%
36%
49%
61%
0% 10% 20% 30% 40% 50% 60% 70%
Water Sports
Racquet Sports
Team Sports
Individual Sports
Outdoor Sports
Fitness Sports
_____________________ Source: Physical Activity Council, 2014 Participation Report
Addressable Markets
Robert W. Baird & Co. 13
Weight Management Market
The U.S. Weight Management market consists of a variety of products and services designed to promote weight loss and maintenance. For the purposes of this report, relevant market segments include weight loss centers, meal replacements, diet pills and drugs, weight loss surgeries and diet-related media (e.g., books, videos). The size of these segments of the U.S. Weight Management market is estimated at about $10 billion, with more than 100 million consumers undertaking dieting-related activities each year.
Sales for Selected U.S. Weight Management Market Segments
$10.4 $10.1 $10.2 $10.1
$0
$2
$4
$6
$8
$10
$12
2010 2011 2012 2013
$in b
illio
ns
_____________________ Source: Marketdata Enterprise.
Over the past several years, the size of the U.S. Weight Management market has been relatively unchanged. During the 2010-2013 period, weight loss centers and meal replacements became a larger share of consumer spending in this market, at the expense of share for surgery and diet-related media.
Wallet Share for Selected U.S. Weight Management Market Segments
Weight Loss Centers
31%
Meal Replacements
26%
Surgery31%
Diet Media12%
2010
Weight Loss Centers
33%
Meal Replacements
28%
Surgery28%
Diet Media11%
2013
_____________________ Source: Marketdata Enterprise.
Public Company Performance
Robert W. Baird & Co. 14
Natural, Organic & Functional Food & Beverage
Kameda Seika
Valuation & Operating Statistics
($ in millions except per share data) 3/31/2015Last Twelve Month Results PE Ratio LTM Valuation Multiples
Price per % of 52- Enterprise Total Revenue Gross EBITDA EBIT TotalTicker Company Name Nationality Share Week High Value Revenue Growth Profit % Margin % Margin % 2015E 2016E Revenue EBITDA EBIT
NasdaqGS:BDBD Boulder Brands, Inc. United States $9.53 51.6% $858.7 $516.6 8.2% 37.0% 11.5% 7.5% 36.3 x 27.6 x 1.7 x 14.5 x 22.3 xFRPT Freshpet, Inc. United States 19.43 91.4% 614.1 86.8 26.4% 48.7% 0.0% (7.4% ) N/A 48.0 7.1 N/A N/ANasdaqGS:HAIN The Hain Celestial Group, Inc. United States 64.05 96.5% 7,254.9 2,468.9 21.4% 24.3% 11.9% 9.7% 31.8 28.4 2.9 24.6 30.3SET:ICHI ICHITAN GROUP Public Company Limi Thailand 0.65 87.2% 897.3 188.4 (3.9% ) 34.4% 25.8% 19.9% 21.7 17.7 4.8 18.4 24.0TSE:2220 Kameda Seika CO., Ltd. Japan 40.71 96.0% 887.6 794.2 (11.9% ) 43.3% 9.9% 4.8% 27.5 26.7 1.1 11.3 23.3NasdaqGM:LWAY Lifeway Foods Inc. United States 21.39 95.6% 352.4 119.0 16.3% 26.4% 6.5% 3.7% 38.9 32.9 3.0 45.9 N/ANYSE:MJN Mead Johnson Nutrition Company United States 100.53 95.3% 20,624.1 4,409.3 3.1% 61.4% 24.2% 22.1% 25.1 22.7 4.7 19.3 21.1NasdaqGS:MNST Monster Beverage Corporation United States 138.40 96.2% 22,377.9 2,464.9 7.2% 54.4% 31.3% 30.2% 41.1 34.3 9.1 29.0 30.0TSX:SOY SunOpta Inc. Canada 10.60 82.7% 839.2 1,242.6 9.0% 11.5% 5.3% 3.6% 24.1 18.1 0.7 12.7 18.9NYSE:WWAV The WhiteWave Foods Company United States 44.34 97.4% 9,232.5 3,436.6 24.3% 33.6% 11.3% 8.1% 40.1 33.9 2.7 23.7 33.1
Mean 89.0% $6,393.9 10.0% 37.5% 13.8% 10.2% 31.8 x 29.0 x 3.8 x 22.2 x 25.4 xMedian 95.5% 892.4 8.6% 35.7% 11.4% 7.8% 31.8 28.0 3.0 19.3 23.6
_____________________ Source: Capital IQ. Figures and LTM as of March 31, 2015. Figures are as reported and have not been adjusted for recent acquisitions.
Historical Performance
Revenue EBITDA Stock Performance
1.4x 1.5x1.8x
2.6x 2.6x3.0x
2.6x
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
2010 2011 2012 2013 2014 LTM2015
2015E
12.7x 11.8x14.2x
17.2x19.1x 19.3x
17.5x
0x
4x
8x
12x
16x
20x
2010 2011 2012 2013 2014 LTM2015
2015E
80%
90%
100%
110%
120%
130%
Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15
S&P 500 HLCB Natural, Organic & Functional
_____________________ Source: Capital IQ. LTM as of March 31, 2015. Median multiples are based on enterprise values as of the end of the period indicated divided by the income statement figure for the period indicated.
Public Company Performance
Robert W. Baird & Co. 15
Supplements Wholesalers and Direct-to-Consumer
Valuation & Operating Statistics
($ in millions except per share data) 3/31/2015Last Twelve Month Results PE Ratio LTM Valuation Multiples
Price per % of 52- Enterprise Total Revenue Gross EBITDA EBIT TotalTicker Company Name Nationality Share Week High Value Revenue Growth Profit % Margin % Margin % 2015E 2016E Revenue EBITDA EBIT
Supplements WholesalersENXTAM:DSM Koninklijke DSM N.V. Netherlands 55.83 96.2% 12,563.5 11,113.0 (11.0% ) 26.2% 12.2% 6.6% 19.7 x 17.2 x 1.1 9.3 17.2NasdaqGS:NUTR Nutraceutical International Corporation United States 19.70 67.6% 227.9 216.0 3.6% 49.1% 17.4% 11.8% 12.4 12.0 1.1 6.1 9.0NYSE:OME Omega Protein Corporation United States 13.69 86.0% 329.8 308.6 19.2% 25.1% 22.2% 15.1% 12.0 9.4 1.1 4.8 7.1NYSE:PRGO Perrigo Company Ireland 165.55 94.8% 25,527.3 4,171.5 7.4% 34.4% 28.4% 18.6% 21.3 18.3 6.1 21.5 32.9Supplements Direct-to-ConsumerNYSE:HLF Herbalife Ltd. Cayman Islands 42.76 61.4% 5,105.7 4,958.6 (0.1% ) 50.5% 12.7% 10.8% 10.1 9.3 1.0 8.1 9.5NasdaqCM:LFVN Lifevantage Corporation United States 0.79 51.0% 86.5 211.0 0.7% 85.5% 10.6% 9.5% 6.6 N/A 0.4 3.9 4.3NasdaqCM:NATR Nature's Sunshine Products Inc. United States 13.12 71.4% 187.4 366.4 (2.9% ) 75.0% 6.4% 5.2% 18.7 13.7 0.5 8.0 9.8NYSE:NUS Nu Skin Enterprises Inc. United States 60.21 67.1% 3,525.1 2,569.5 (22.3% ) 81.4% 15.8% 13.7% 15.3 13.7 1.4 8.7 10.0NasdaqGS:RELV Reliv International, Inc. United States 1.12 41.8% 13.6 57.3 (10.1% ) 79.7% 1.8% 0.2% N/A N/A 0.2 12.9 N/ANYSE:USNA USANA Health Sciences Inc. United States 111.12 93.5% 1,295.5 790.5 8.1% 82.2% 15.8% 14.7% 16.6 14.7 1.6 10.4 11.2
Mean 73.1% $4,886.2 (0.7%) 58.9% 14.3% 10.6% 14.8 x 13.5 x 1.5 x 9.4 x 12.3 xMedian 69.5% 812.7 0.3% 62.8% 14.3% 11.3% 15.3 13.7 1.1 8.4 9.8
_____________________ Source: Capital IQ. Figures and LTM as of March 31, 2015. Figures are as reported and have not been adjusted for recent acquisitions.
Historical Performance
Revenue EBITDA Stock Performance
1.1x
0.7x0.9x
1.3x
1.0x1.1x 1.1x
0.0x
0.3x
0.6x
0.9x
1.2x
1.5x
2010 2011 2012 2013 2014 LTM2015
2015E
6.5x
4.9x 5.4x
9.3x8.1x 8.4x 7.9x
0x
2x
4x
6x
8x
10x
2010 2011 2012 2013 2014 LTM2015
2015E
75%
80%
85%
90%
95%
100%
105%
110%
115%
Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15
S&P 500 HLCB Supplements
_____________________ Source: Capital IQ. LTM as of March 31, 2015. Median multiples are based on enterprise values as of the end of the period indicated divided by the income statement figure for the period indicated.
Public Company Performance
Robert W. Baird & Co. 16
Health & Wellness Retailers & Distributors
Valuation & Operating Statistics
($ in millions except per share data) 3/31/2015Last Twelve Month Results PE Ratio LTM Valuation Multiples
Price per % of 52- Enterprise Total Revenue Gross EBITDA EBIT TotalTicker Company Name Nationality Share Week High Value Revenue Growth Profit % Margin % Margin % 2015E 2016E Revenue EBITDA EBIT
NasdaqGS:TFM The Fresh Market, Inc. United States $40.64 96.5% $1,956.7 $1,753.2 16.0% 33.9% 10.7% 7.2% 21.9 x 19.9 x 1.1 x 10.4 x 15.5 xNYSE:GNC GNC Holdings Inc. United States 49.07 98.8% 5,520.0 2,613.2 (1.1% ) 37.5% 18.7% 16.6% 15.6 13.9 2.1 11.3 12.8NYSE:NGVC Natural Grocers by Vitamin Cottage, Inc. United States 27.61 62.8% 647.4 546.0 13.9% 29.0% 8.0% 4.6% 40.9 N/A 1.2 14.9 25.6NasdaqGS:SFM Sprouts Farmers Market, Inc. United States 35.23 91.6% 5,644.3 2,967.4 14.7% 29.8% 8.6% 6.8% 40.1 32.4 1.9 22.0 28.2NasdaqGS:UNFI United Natural Foods, Inc. United States 77.04 91.8% 4,385.3 7,555.4 17.0% 16.0% 3.7% 3.0% 24.4 21.5 0.6 15.7 19.6NYSE:VSI Vitamin Shoppe, Inc. United States 41.19 82.7% 1,267.8 1,213.0 8.7% 42.5% 12.1% 9.3% 17.2 15.1 1.0 8.6 11.2NasdaqGS:WFM Whole Foods Market, Inc. United States 51.95 90.2% 18,114.5 14,626.0 10.0% 35.5% 9.2% 6.6% 28.9 25.9 1.2 13.4 18.9
Mean 87.8% $5,362.3 12.9% 32.0% 10.2% 7.7% 27.0 x 21.4 x 1.3 x 13.7 x 18.8 xMedian 91.6% 4,385.3 13.9% 33.9% 9.2% 6.8% 24.4 20.7 1.2 13.4 18.9
_____________________ Source: Capital IQ. Figures and LTM as of March 31, 2015. Figures are as reported and have not been adjusted for recent acquisitions.
Historical Performance
Revenue EBITDA Stock Performance
1.2x1.3x
1.5x 1.6x
1.2x 1.2x1.0x
0.0x0.2x0.4x0.6x0.8x1.0x1.2x1.4x1.6x1.8x
2010 2011 2012 2013 2014 LTM2015
2015E
12.9x 12.4x14.1x
16.6x
13.2x 13.4x12.2x
0x
3x
6x
9x
12x
15x
18x
2010 2011 2012 2013 2014 LTM2015
2015E
75%
80%
85%
90%
95%
100%
105%
110%
115%
Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15
S&P 500 HLCB Retailers & Distributors
_____________________ Source: Capital IQ. LTM as of March 31, 2015. Median multiples are based on enterprise values as of the end of the period indicated divided by the income statement figure for the period indicated.
Public Company Performance
Robert W. Baird & Co. 17
Craft Products
Valuation & Operating Statistics
($ in millions except per share data) 3/31/2015Last Twelve Month Results PE Ratio LTM Valuation Multiples
Price per % of 52- Enterprise Total Revenue Gross EBITDA EBIT TotalTicker Company Name Nationality Share Week High Value Revenue Growth Profit % Margin % Margin % 2015E 2016E Revenue EBITDA EBIT
SAM Boston Beer Co. Inc. United States $267.40 82.3% $3,490.9 $903.0 14.7% 51.5% 20.3% 16.4% 35.2 x 29.7 x 3.9 x 19.0 x 23.5 xBREW Craft Brew Alliance, Inc. United States 13.64 76.2% 275.1 200.0 7.3% 29.4% 7.2% 2.9% N/A 37.3 1.4 19.2 48.2
Mean 79.3% $1,883.0 11.0% 40.4% 13.7% 9.6% 35.2 x 33.5 x 2.6 x 19.1 x 35.9 xMedian 79.3% 1,883.0 11.0% 40.4% 13.7% 9.6% 35.2 33.5 2.6 19.1 35.9
_____________________ Source: Capital IQ. Figures and LTM as of March 31, 2015. Figures are as reported and have not been adjusted for recent acquisitions.
Historical Performance
Revenue EBITDA Stock Performance
1.9x1.7x 1.8x
2.9x 2.7x 2.6x2.3x
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
2010 2011 2012 2013 2014 LTM2015
2015E
13.5x11.5x 12.5x
24.1x
19.4x 19.1x16.7x
0x
5x
10x
15x
20x
25x
2010 2011 2012 2013 2014 LTM2015
2015E
75%
80%
85%
90%
95%
100%
105%
110%
115%
Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15
S&P 500 HLCB Craft Products
_____________________ Source: Capital IQ. LTM as of March 31, 2015. Median multiples are based on enterprise values as of the end of the period indicated divided by the income statement figure for the period indicated.
Public Company Performance
Robert W. Baird & Co. 18
Fitness Centers
Valuation & Operating Statistics
($ in millions except per share data) 3/31/2015Last Twelve Month Results PE Ratio LTM Valuation Multiples
Price per % of 52- Enterprise Total Revenue Gross EBITDA EBIT TotalTicker Company Name Nationality Share Week High Value Revenue Growth Profit % Margin % Margin % 2015E 2016E Revenue EBITDA EBIT
ASX:AAD Ardent Leisure Group Australia $1.71 64.2% $971.8 $437.7 (3.6% ) 70.0% 19.6% 10.8% 15.7 x 13.5 x 2.2 x 11.3 x 20.6 xTSE:4801 Central Sports Co.,Ltd. Japan 18.60 92.7% 292.6 424.0 (9.7% ) 11.5% 8.8% 5.7% N/A N/A 0.7 7.8 12.1BMV:SPORT S Grupo Sports World, S.A.B. de C.V. Mexico 1.48 85.1% 130.8 71.9 1.4% N/A 19.0% 8.5% 21.0 16.7 1.8 9.6 21.4NYSE:LTM Life Time Fitness Inc. United States 70.96 99.1% 4,016.2 1,290.6 5.2% 44.9% 28.9% 17.8% 21.5 19.6 3.1 10.8 17.5BSE:533200 Talwalkars Better Value Fitness Limited India 5.94 90.7% 191.2 34.2 9.3% 80.7% 51.4% 36.9% 17.2 13.8 5.6 10.9 15.2NasdaqGM:CLUB Town Sports International Holdings Inc. United States 6.81 77.6% 457.0 453.8 (2.8% ) 57.5% 11.6% 1.2% N/A N/A 1.0 8.7 N/A
Mean 84.9% $1,009.9 (0.0%) 52.9% 23.2% 13.5% 18.9 x 15.9 x 2.4 x 9.8 x 17.4 xMedian 87.9% 374.8 (0.7%) 57.5% 19.3% 9.6% 19.1 15.3 2.0 10.2 17.5
_____________________ Source: Capital IQ. Figures and LTM as of March 31, 2015. Figures are as reported and have not been adjusted for recent acquisitions.
Historical Performance
Revenue EBITDA Stock Performance
1.8x
1.5x
1.9x 2.0x
2.4x
2.0x 2.0x
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
2010 2011 2012 2013 2014 LTM2015
2015E
8.0x 7.6x8.9x
7.9x9.0x
10.2x 9.8x
0x
2x
4x
6x
8x
10x
12x
2010 2011 2012 2013 2014 LTM2015
2015E
90%
95%
100%
105%
110%
115%
120%
125%
130%
Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15
S&P 500 HLCB Fitness Centers
_____________________ Source: Capital IQ. LTM as of March 31, 2015. Median multiples are based on enterprise values as of the end of the period indicated divided by the income statement figure for the period indicated.
Public Company Performance
Robert W. Baird & Co. 19
Weight Management
Valuation & Operating Statistics
($ in millions except per share data) 3/31/2015Last Twelve Month Results PE Ratio LTM Valuation Multiples
Price per % of 52- Enterprise Total Revenue Gross EBITDA EBIT TotalTicker Company Name Nationality Share Week High Value Revenue Growth Profit % Margin % Margin % 2015E 2016E Revenue EBITDA EBIT
NYSE:MED Medifast Inc. United States $29.97 83.1% $311.7 $285.3 (17.9% ) 73.3% 15.0% 12.2% 16.3 x 14.4 x 1.1 x 7.3 x 8.9 xNasdaqGS:NTRI Nutrisystem, Inc. United States 19.98 93.1% 545.0 403.1 7.5% 50.6% 9.2% 7.3% 25.5 21.1 1.4 14.7 18.6NYSE:WTW Weight Watchers International, Inc. United States 6.99 23.4% 2,501.2 1,479.9 (9.9% ) 54.5% 24.4% 21.0% 11.7 12.9 1.7 6.9 8.0
Mean 66.5% $1,119.3 (6.8%) 59.5% 16.2% 13.5% 17.8 x 16.2 x 1.4 x 9.6 x 11.9 xMedian 83.1% 545.0 (9.9%) 54.5% 15.0% 12.2% 16.3 14.4 1.4 7.3 8.9
_____________________ Source: Capital IQ. Figures and LTM as of March 31, 2015. Figures are as reported and have not been adjusted for recent acquisitions.
Historical Performance
Revenue EBITDA Stock Performance
1.6x
0.8x1.0x
1.2x 1.3x 1.4x1.2x
0.0x
0.5x
1.0x
1.5x
2.0x
2010 2011 2012 2013 2014 LTM2015
2015E
10.8x
8.8x9.9x
8.0x8.7x
7.3x
10.6x
0x
3x
6x
9x
12x
2010 2011 2012 2013 2014 LTM2015
2015E
85%
90%
95%
100%
105%
110%
115%
120%
125%
130%
Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15
S&P 500 HLCB Weight Management
_____________________ Source: Capital IQ. LTM as of March 31, 2015. Median multiples are based on enterprise values as of the end of the period indicated divided by the income statement figure for the period indicated.
Same-Store Sales Performance
Robert W. Baird & Co. 20
Health & Wellness Retailers & Distributors
8.5% 6.2%
4.5% 3.0% 1.7%
(3.0% )(5%)
0%
5%
10%
Sprouts Famers Market,Inc.
Natural Grocers by VitaminCottage, Inc.
Whole Foods Market, Inc. The Fresh Market, Inc. Vitamin Shoppe, Inc. GNC Holdings Inc.
_____________________ Source: Capital IQ. Same-Store Sales Performance for Calendar Year Q4.
Fitness Centers
10.2% 9.3%
0.6%
(3.9% )(5%)
0%
5%
10%
15%
Talwalkers Better Value Fitness Limited Ardent Leisure Group Life Time Fitness Inc. Town Sports International Holdings Inc.
_____________________ Source: Capital IQ. Same-Store Sales Performance for Calendar Year Q4.
Equity Capital Markets Overview
Robert W. Baird & Co. 21
Equity Market Commentary Broader Equity Markets
• The S&P 500, Dow Jones and Nasdaq all fell in March, while the Russell 2000 was the only major index to end the month in positive territory
- Healthcare was the sole S&P sector to move higher, ending the month up 0.8%, while materials was the biggest laggard, falling 5.0%
• During Q1, the Dow Jones recorded the most daily swings of 1% or more since the fourth quarter of 2011; the increase in volatility occurred despite below-average volume for the quarter
20.0%40.0%60.0%80.0%
100.0%120.0%140.0%160.0%180.0%200.0%220.0%
Dec-06 Jan-09 Feb-11 Mar-13 Mar-15
NASDAQ Russell 2000 S&P 500 DJIA
March '15 2015DJIA (2.0%) (0.3%)S&P 500 (1.7%) 0.4%NASDAQ (1.3%) 3.5%Russell 2000 1.6% 4.0%
_____________________ Source: FactSet. As of March 31, 2015.
IPO Market Commentary Monthly IPO Pricing Activity
• The IPO market was quiet, with 8 IPOs pricing in March, raising $1.5 billion; this brings the Q1 total to 30 IPOs raising $5.6 billion, compared to 68 IPOs raising $12.1 billion in Q1 2014
• Demand for IPOs during Q1 was strong, with 30% pricing above their filing range, compared to 18% during Q1 2014
• Given the backdrop of elevated volatility, aftermarket performance in Q1 has pulled back, with average offer to 1-day and offer to 30-day at 12.2% and 18.5% respectively, compared to 19.4% and 33.4% during the same 2014 period
3027
22
3033
9
16
26 26
14 139 8
0
6
12
18
24
30
36
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Average = 20
_____________________ Source: Dealogic. As of March 31, 2015. Excludes Closed End Funds and deals under $15 million.
Follow-on Market Commentary Monthly Follow-on Pricing Activity
• Driven by Healthcare, Energy and Financial Services, March was a record month, as 102 offerings priced, raising $37.1 billion, bringing the YTD total to 227 offerings
• The median file-to-offer discount declined for a second consecutive month to 3.5%, bringing the YTD median to 4.1%, the same level seen in all of 2014
• Bought deals were extremely prevalent in March, as 42% of all follow-on offerings were bought deals, compared to 15% last month and 25% for 2014
90
51
72 68
50
31
63
31
57
38
5867
102
0
20
40
60
80
100
120
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Average = 60
_____________________ Source: Dealogic. As of March 31, 2015. Excludes Closed End Funds and deals under $15 million.
Recently Priced IPOs
Robert W. Baird & Co. 22
IPO Valuation Statistics: 2010 – YTD 2015 (In millions, except per share data)
Valuation DataMedian of
Precedents
SectorNatural/
Organic & Functional
Health & Wellness Retailer
Healthy Living Packaged
Foods
Health & Wellness Retailer
Health & Wellness Retailer
Health & Wellness Retailer
-
IPO Date 7-Nov-14 31-Jul-13 25-Oct-12 24-Jul-12 31-Mar-11 4-Nov-10 -
Initial Filing Range $12.00 - 14.00 $14.00 - 16.00 $14.00 - 16.00 $13.00 - 15.00 $15.00 - 17.00 $18.00 - 20.00 -
IPO Price $15.00 $18.00 $17.00 $15.00 $16.00 $22.00 -
Post-Deal Market Cap. $500.4 $2,635.8 $2,941.0 $335.2 $1,656.8 $1,055.8 $1,356.3
Forward Year Ending 31-Dec-13 31-Dec-13 31-Dec-12 31-Dec-11 31-Dec-11 -
Long-term EPS Growth 30.0% 25.4% 17.3% 21.5% 11.9% 14.0% 19.4%
P/E - Forward Year at Pricing 73.2x 32.7x 23.6x 32.6x 13.0x 21.4x 28.1x
PEG - at Pricing 2.44x 1.09x 1.35x 1.16x 0.87x 0.97x 1.1x
P/E - NTM 191.6x 40.1x 40.1x 40.9x 15.6x 21.9x 40.1x
EV/EBITDA - NTM 16.6x 17.6x 18.8x 13.0x 10.4x 9.0x 14.8x
Operating Data
LTM Revenue at Pricing $74.2 $2,071.2 $2,157.6 $316.6 $1,822.2 $940.7 $1,381.5
LTM Net Income at Pricing ($34.4) $36.3 $117.6 $7.8 $96.6 $38.0 $37.1
Aftermarket Performance
Offer to 1 Day 27.4% 122.8% (1.5%) 19.1% 4.7% 46.0% 23.3%
Offer to 1 Month 12.5% 105.3% (6.2%) 30.5% 19.1% 73.6% 24.8%
Offer to Current 29.5% 95.7% 160.8% 84.1% 206.7% 84.7% 90.2%
_____________________ Source: Capital IQ, company filings and Wall Street research. As of March 31, 2015.
Baird’s Healthy Lifestyle and Craft Beer Transaction Experience
Robert W. Baird & Co. 23
Undisclosed Value
Preferred Equity
Private Placement
$68,900,000Common Stock
Initial Public Offering
$257,500,000
A Portfolio Company of
Sale to
Undisclosed Value
Inv estment in
Financing
Undisclosed Value
A Portfolio Company of
Sale to
Undisclosed Value
Sale of 30% stake to
$147,857,145Common Stock
Initial Public Offering
$77,500,000Common Stock
Follow-on Offering
$179,687,505Common Stock
Initial Public Offering
$491,280,000Common Stock
Initial Public Offering
Undisclosed Value
Sale to
$49,400,000Common Stock
Initial Public Offering
$1,400,000,000
Acquisition of 48% of
Undisclosed Value
Minority Investment in
Undisclosed Value
Undisclosed Value
A Portfolio Company of
Sale to
$190,000,000
A Portfolio Company of
Sale to
Undisclosed Value
Alliance with
Undisclosed Value
Undisclosed Value
Acquisition of
$150,000,000Common Stock
Initial Public Offering
$168,536,548Common Stock
Follow-on Offering
$210,205,224Common Stock
Follow-on Offering
$177,828,296Common Stock
Initial Public Offering
Undisclosed Value
Sale to
$100,624,980Common Stock
Initial Public Offering
_____________________ Note: The transactions noted were selected for their relevance and are not indicative of all Baird transactions. Asterisk indicates a transaction executed by senior Baird team members at prior firms dating back to 1995. Please visit www.rwbaird.com/investment-banking for a complete list of Baird’s transactions.
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*
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*
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Global Investment Banking Contact List
Robert W. Baird & Co. 24
Brian S. Doyal Co-Head of Global
Investment Banking +1.312.609.4916
bdoyal@rwbaird.com
Brian P. McDonagh Co-Head of Global
Investment Banking +1.704.553.6611
bmcdonagh@rwbaird.com
Rodney L. Jones-Tyson Managing Director
Chief Operating Officer +1.312.609.4984
rtyson@rwbaird.com
Richard F. Waid Vice Chairman
+1.404.264.2210 rwaid@rwbaird.com
C.H. Randolph Lyon Vice Chairman
+1.312.609.4931 rlyon@rwbaird.com
Technology & Services Peter S. Kies Managing Director Head of Technology & Services Investment Banking +1.414.765.7262 pkies@rwbaird.com Stephen B. Guy Managing Director +1.414.765.7247 sguy@rwbaird.com Christopher W. Hildreth Managing Director +1.312.609.4937 childreth@rwbaird.com Michael Horwitz Managing Director +1.415.627.3284 mhorwitz@rwbaird.com John R. Lanza Managing Director +1.414.298.7669 jlanza@rwbaird.com Mike Magluilo Managing Director +1.303.551.4673 mmagluilo@rwbaird.com John Moriarty Managing Director +1.650.424.3811 jmoriarty@rwbaird.com
Kiran Paruchuru Managing Director +1.414.298.7642 kparuchuru@rwbaird.com Breton A. Schoch Managing Director +1.312.609.4965 bschoch@rwbaird.com Andrew K. Snow Managing Director +1.312.609.4972 asnow@rwbaird.com Ross W. Williams Managing Director +1.414.298.6235 rwilliams@rwbaird.com Daniel M. Alfe Director +1.312.609.4922 dalfe@rwbaird.com Peter Augar Director +44.207.667.8263 paugar@rwbaird.com Jordan Klein Director +1.312.609.4978 jklein@rwbaird.com John Sun Director +44.207.667.8224 jysun@rwbaird.com .
Industrial Paul T. Rogalski Managing Director Head of Industrial Investment Banking +1.312.609.4912 progalski@rwbaird.com Christopher C. McMahon Managing Director Head of Global M&A +1.312.609.4983 cmcmahon@rwbaird.com Brian P. McDonagh Managing Director Co-Head of Global M&A +1.704.553.6611 bmcdonagh@rwbaird.com Justin T. Albert Managing Director +1.303.270.6381 jalbert@rwbaird.com Joel A. Cohen Managing Director +1.312.609.4924 jcohen@rwbaird.com Christopher R. Cooper Managing Director +1.704.553.6610 crcooper@rwbaird.com Adam W. Czaia Managing Director +1.414.298.7358 aczaia@rwbaird.com Stephen B. Guy Managing Director +1.414.765.7247 sguy@rwbaird.com Jason P. Kliewer Managing Director +1.813.273.8242 jkliewer@rwbaird.com Thomas E. Lange Managing Director +1.813.273.8248 tlange@rwbaird.com Michael Lindemann Managing Director +1.414.298.7408 mlindemann@rwbaird.com Joseph T. Packee Managing Director +1.414.298.7644 jpackee@rwbaird.com Trisha K. Renner Managing Director +1.303.270.6347 trenner@rwbaird.com Christian Colucci Director +1.312.609.4475 ccolucci@rwbaird.com Yong-Jae Kim Director +1.312.609.4939 jkim@rwbaird.com
Consumer Brian P. McDonagh Managing Director Head of Consumer Investment Banking +1.704.553.6611 bmcdonagh@rwbaird.com Andrew Martin Managing Director +1.704.553.6615 amartin@rwbaird.com
Nicholas Pavlidis Managing Director +1.312.609.4977 npavlidis@rwbaird.com Joe Pellegrini Managing Director +1.704.553.6612 jpellegrini@rwbaird.com
Kurt M. Roth Managing Director +1.312.609.4689 kroth@rwbaird.com Christopher J. Sciortino Managing Director +1.312.609.4923 csciortino@rwbaird.com Katie J. Melzer Director +1.415.627.3272 kmelzer@rwbaird.com Robert Rosenfeld Director +1.312.609.4971 rrosenfeld@rwbaird.com Matt Tingler Director +1.312.609.4470 mtingler@rwbaird.com Maria Watts Director +1.312.609.4743 mwatts@rwbaird.com
Real Estate Steven Goldberg Managing Director +1.703.918.7808 sgoldberg@rwbaird.com James O’Brien Managing Director +1.703.918.7814 jobrien@rwbaird.com Jeff Rogatz Managing Director +1.703.918.7823 jrogatz@rwbaird.com Adam Lefkowitz Director +1.703.918.7817 alefkowitz@rwbaird.com Tom O’Hare Director +1.202.303.1811 tohare@rwbaird.com
Healthcare Brian S. Doyal Managing Director Head of Healthcare Investment Banking +1.312.609.4916 bdoyal@rwbaird.com Rob Andrews Managing Director +1.312.609.5489 randrews@rwbaird.com
Benjamin A. Brown Managing Director +1.414.298.7013 bbrown@rwbaird.com Ryan Mausehund Managing Director +1.650.858.3817 rmausehund@rwbaird.com David S. Schechner Managing Director +1.617.426.5424 dschechner@rwbaird.com Bill Suddath Managing Director +1.404.264.2222 bsuddath@rwbaird.com Manish Gupta Director +1.414.765.3802 mgupta@rwbaird.com Chad W. Moore, CPA, CFA Director +1.312.609.5475 cmoore@rwbaird.com
Energy Richard F. Waid Vice Chairman +1.404.264.2210 rwaid@rwbaird.com Curtis Goot Managing Director +1.314.445.6540 cgoot@rwbaird.com John R. Lanza Managing Director +1.414.298.7669 jlanza@rwbaird.com Frank Murphy Managing Director +1.314.445.6532 fmurphy@rwbaird.com Nick Alfermann Director +1.314.445.6531 nalfermann@rwbaird.com Kjell Lundal Director +1.314.445.6533 klundal@rwbaird.com
Financial Services Mark C. Micklem Managing Director +1.703.821.5787 mmicklem@rwbaird.com Paul Egge Director +1.202.303.1816 pegge@rwbaird.com
Financial Sponsors C. Christopher Coetzee Managing Director +1.312.609.4913 ccoetzee@rwbaird.com Leslie Cheek IV Managing Director +1.617.426.5789 lcheek@rwbaird.com Vinay Ghai Managing Director +44.207.667.8225 vghai@rwbaird.com Thomas W. Lacy Managing Director +1.414.298.7648 tlacy@rwbaird.com
John Moriarty Managing Director +1.650.424.3811 jmoriarty@rwbaird.com Jeffrey M. Seaman Managing Director +1.312.609.4687 jseaman@rwbaird.com David M. Wierman Managing Director +1.404.264.2211 dwierman@rwbaird.com Mergers & Acquisitions
Christopher C. McMahon Managing Director Head of Global M&A +1.312.609.4983 cmcmahon@rwbaird.com Brian P. McDonagh Managing Director Co-Head of Global M&A +1.704.553.6611 bmcdonagh@rwbaird.com Owen L. Hart Managing Director +1.415.627.3273 ohart@rwbaird.com Howard P. Lanser Managing Director +1.312.609.5478 hlanser@rwbaird.com Satoshi Matsumoto Managing Director Director of Japan M&A +1.312.609.5446 smatsumoto@rwbaird.com J. David Cumberland, CFA Director, M&A Research +1.312.609.5429 dcumberland@rwbaird.com
Equity Capital Markets
Greg Ingram Managing Director +1.415.627.3279 gingram@rwbaird.com Lance R. Lange Managing Director +1.414.765.7079 llange@rwbaird.com Gary R. Placek Managing Director +1.414.765.3611 gplacek@rwbaird.com Ryan Engelhardt Director +1.414.298.2637 rengelhardt@rwbaird.com
Debt Advisory Howard P. Lanser Managing Director +1.312.609.5478 hlanser@rwbaird.com Paul Bail Managing Director +44.207.667.8271 pbail@rwbaird.com
Europe London†
David M. Silver Managing Director Head of European Investment Banking +44.207.667.8216 dsilver@rwbaird.com John A. Fordham Chairman of Baird International +44.207.667.8438 jfordham@rwbaird.com Paul Bail Managing Director +44.207.667.8271 pbail@rwbaird.com Vinay Ghai Managing Director +44.207.667.8225 vghai@rwbaird.com Jonathan Harrison Managing Director +44.207.667.8414 jjharrison@rwbaird.com Nicholas R. Sealy Managing Director +44.207.667.8370 nsealy@rwbaird.com Martin Luen Director +44.207.667.8381 mluen@rwaird.com Frankfurt Joachim Beickler Managing Director +49.69.13.01.49.51 jbeickler@rwbaird.com Michael Wolff Managing Director +49.69.13.01.49.49 mwolff@rwbaird.com Sven Harmsen Director +49.69.13.01.49.56 sharmsen@rwbaird.com
Asia Shanghai
Anthony Siu Managing Director Head of Asia Investment Banking +86.21.6182.0980 asiu@rwbaird.com.cn
† Robert W. Baird Limited is authorized and regulated by the Financial Conduct Authority.
Appendix – Disclaimers and Other Disclosures
Robert W. Baird & Co. 25
DISCLAIMERS This is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect our judgment at this date and are subject to change. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy.
ADDITIONAL INFORMATION ON COMPANIES MENTIONED HEREIN IS AVAILABLE UPON REQUEST
The Dow Jones Industrial Average, S&P 500, S&P 400 and Russell 2000 are unmanaged common stock indices used to measure and report performance of various sectors of the stock market; direct investment in indices is not available.
Baird is exempt from the requirement to hold an Australian financial services license. Baird is regulated by the United States Securities and Exchange Commission, FINRA, and various other self-regulatory organizations and those laws and regulations may differ from Australian laws. This report has been prepared in accordance with the laws and regulations governing United States broker-dealers and not Australian laws.
Copyright 2015 Robert W. Baird & Co. Incorporated. No part of this publication may be reproduced or distributed in any form or by any means without our prior written approval. However, you may download one copy of the information for your personal, non-commercial viewing only, provided that you do not remove or alter any trade mark, copyright or other proprietary notice.
OTHER DISCLOSURES UK disclosure requirements for the purpose of distributing this report into the UK and other countries for which Robert W Baird Limited holds an ISD passport.
This report is for distribution into the United Kingdom only to persons who fall within Article 19 or Article 49(2) of the Financial Services and Markets Act 2000 (financial promotion) order 2001 being persons who are investment professionals and may not be distributed to private clients. Issued in the United Kingdom by Robert W Baird Limited, which has offices at Finsbury Circus House 15 Finsbury Circus, London, EC2M 7EB, and is a company authorized and regulated by the Financial Conduct Authority.
Robert W Baird Limited ("RWBL") is exempt from the requirement to hold an Australian financial services license. RWBL is regulated by the Financial Conduct Authority ("FCA") under UK laws and those laws may differ from Australian laws. This document has been prepared in accordance with FCA requirements and not Australian laws.
Robert W. Baird & Co. www.rwbaird.com
800.RW.BAIRD
Equity Capital Markets and Private Equity Office Locations
Atlanta One Buckhead Plaza 3060 Peachtree Road Suite 1815 Atlanta, GA 30305 Boston One Post Office Square Suite 3617 Boston, MA 02109 Boulder One Boulder Plaza 1301 Canyon Boulevard – Suite 220 Boulder, CO 80302 Charlotte 6000 Fairview Road Suite 1100 Charlotte, NC 28210 Chicago 227 West Monroe Street Suite 2100 Chicago, IL 60606 Denver 210 University Boulevard Suite 700 Denver, CO 80206 Frankfurt* Neue Mainzer Strasse 28 60311 Frankfurt Germany
London* Finsbury Circus House 15 Finsbury Circus London EC2M 7EB UK Milwaukee 777 East Wisconsin Avenue Milwaukee, WI 53202 Nashville 2525 West End Avenue Suite 1000 Nashville, TN 37203 New York City 3 Rockefeller Plaza 610 Fifth Avenue New York, NY 10020 Palo Alto 1661 Page Mill Road Suite A Palo Alto, CA 94304 San Francisco 50 California Street Suite 450 San Francisco, CA 94111 555 California Street Suite 4900 San Francisco, CA 94104
Shanghai* Rm 42-022, 42/F, Hang Seng Bank Tower No.1000 Lujiazui Ring Road Pudong Shanghai 200120, China St. Louis 8000 Maryland Avenue Suite 500 St. Louis, MO 63105 Stamford 100 First Stamford Place 3rd Floor Stamford, CT 06902 Tampa 3000 Bayport Drive Suite 760 Tampa, FL 33607 Washington, D.C. 1717 K Street NW Suite 910 Washington, DC 20006
*Baird and its operating affiliates have offices in the United States, Europe and Asia. Robert W. Baird & Co. Incorporated. Member SIPC. Robert W. Baird Ltd. and Baird Capital Partners Europe are authorized and regulated in the UK by the Financial Conduct Authority. ©2015 Robert W. Baird & Co. Incorporated.