Global Agribusiness · food group WhiteWave in a cash deal worth $12.5bn. ... stake in Engro Foods,...

Deal Activity

Global Agribusiness

July 2016

www.pwc.com

1 Agribusiness news & multiples 1

2 Food trust 6

3 Markets update 8

4 Our team 13

PageSection Overview

Table of contents

PwC

July 2016

1

Global Agribusiness • Deal Activity

Agribusiness news & multiples

PwC

July 2016

2015A NTM

1 0.3x 9.6x

20.8x 1 2.6x

7 .9x 7 .0x

1 0.0x 9.9x

1 3.0x n.a.

21 .5x 1 0.1 x

5.6x 6.5x

38.5x n.a.

34.3x 1 0.4x

7 .2x n.a.

11.7x 9.9x

16.9x 9.4x

2015A NTM

1 6.0x 1 4.6x

27 .5x 1 6.3x

1 0.0x 9.9x

1 0.3x 9.6x

1 2.9x 1 1 .2x

1 8.1 x 1 6.4x

1 4.8x 1 3.3x

6.4x 5.7 x

1 2.0x 1 0.9x

20.2x 1 7 .7 x

13.8x 12.2x

14.8x 12.6x

2015A NTM

1 4.9x 1 4.6x

1 8.0x 1 3.6x

1 5.2x 1 3.2x

1 7 .5x 1 6.1 x

1 3 .5x 1 2.4x

1 0.6x n.a.

1 4.7 x 1 4.3x

1 6.1 x 1 6.2x

6.1 x 5.4x

8.4x 8.3x

14.8x 13.6x

13.5x 12.7x

Section 1 – Agribusiness news & multiples

2


DairyRed meatPork

Transaction multiples (EV/EBITDA)

Bidder/Target 1: Pershing Square Capital/Mondelez, 2: Groupe Lactalis/Lactalis Puleva, 3: Pepsi-Cola/Wimm-Bill-Dann Food, 4: Bank Hapoalim/Parmalat, 5: Société pour le Financement de l'Industrie Laitière/Parmalat, 6: Suntory/Cerebos Pacific, 7: SavolaGroup/Almarai , 8: Trian Fund Management/ Danone, 9: Saputo Cheese Morningstar Foods, 10: Prominent Achiever / China Mengniu Dairy Co., 11: China Mengniu Dairy Co./Yashili International, 12: FB Participações/Vigor Alimentos, 13: QurainPetrochemical Industries/Saudia Dairy & Foodstuff, 14: First Pacific & Wilmar International /Goodman Fielder, 15: Qurain Petrochemical Industries/Saudia Dairy & Foodstuff.16: Qurain Petrochemical Industries/Saudia Dairy & Foodstuff.17: First Pacific Company / Goofman Fielder Ltd. 18: Warrnambool Cheese and Butter / Lion Dairy & Drinks, Everyday cheese business, 19: Management / China Huishan Dairy, 20: Centre Laboratories / Ausnutria Dairy.

Trading multiples (EV/EBITDA)

Dairy

M&A News

US: French dairy giant Danone is to acquire US organic food group WhiteWave in a cash deal worth $12.5bn.

Switzerland: Emmi is to acquire the remaining 40% stake in Mittelland Molkerei AG in a cash and stock deal.

Australia/South Korea: Taekyung Food & Processing has proposed a strategic alliance withBeston Global Food to distribute its food products into the Korean market.

Pakistan: Royal FrieslandCapina is to acquire a 51% stake in Engro Foods, Pakistan’s second largest dairy company.

Management News

No relevant news.

Red meat

M&A News

China: Tsing Capital is to establish a new US$1bn Food and Agritech fund to invest in Australian food production facilities.

Australia: Hancock Prospecting has acquired two cattle stations in the Northern Territory totalling 550,000ha, adding to its growing agriculture portfolio.

Management News

Australia: The Australian Livestock Exporters’ Council (ALEC) has appointed Simon Westaway to CEO.

Bidder/Target 1: West Face Capital/Maple Leaf Foods, 2: Boparan Holdings/Northern Foods, 3: NA/Astarta Holding, 4: Leucadia/National Beef Packing, 5: TMK Holding/ National Beef Packing, 6: NA/Zhongpin, 7: Henan Shineway/Smithfield Foods, 8: Darling Ingredients/VION Ingredients, 9: NA/People's Food Holdings, 10: Sigma Alimentos/Campofrio Food Group, 11: L Sigma Alimentos/Campofrio Food Group, 12: JBS S.A , 13: Condorcet Opportunity / Campofrio Food Group, 14: Tyson Foods / The Hillshire Brands, 15: Nutresa / Aldage. 16: ITOCHU Corporation / C. P. Pokphand Co.17: H. J Heinz Holding Corp / Kraft Foods Group, 18. Bright Foods / Silver Fern Farms.

Trading multiples (EV/EBITDA)Transaction multiples (EV/EBITDA)

Sources: S&P Capital IQ, Factiva, PwC research

Pork

M&A News

China: Aoxin Tianli is to acquire a majority stake in Hainan Chengmai Zaohuaxiang Hog Industry in a cash and stock deal.

Management News

No relevant news.

Bidder/Target 1:Talleys Group/ AFFCO Holdings, 2: Premium Brings Holdings / PillerSausages & Delicatessens, 3: Harim Holdings/ Sunjin Holdings Co. 4: LBO / ZhongpinInc. 5: Mitsubishi Corp / Yonekyu Corp. 6: Henan Shineway Industry Group / Smithfield Foods Inc. 7: LBO / People’s Food Holdings Ltd. 8: Sigma Alimentos / Campofrio Food Group, SA. 9: JBS Australia Pty / P&M Smallgoods Pty. 10: Swift Pork (JBS) / Cargill Pork. 11: Cedrob SA / Polski Koncern, 12: JBS S.A. / Moy Park Ltd., 13: Itoham Foods / Yonekyo Corp.

Transaction multiples (EV/EBITDA) Trading multiples (EV/EBITDA)

Median: 12.4x

Median: 9.5x

Median: 7.5x

Nestlé S.A.

Unilev er PLC

Unilev er N.V.

Mondelez International, Inc.

Danone

Fonterra Co-Operativ e Group Ltd.

General Mills, Inc.

Mead Johnson Nutrition Company

Dean Foods Company

Want Want China Holdings Ltd.

Median

Average

Associated British Foods plc

The Kraft Heinz Company

BRF S.A.

Ty son Foods, Inc.

Henan Shuanghui Inv estment &

Kerry Group plc

Hormel Foods Corporation

JBS S.A.

Uni-President Enterprises Corporation

Univ ersal Robina Corporation

Median

Average

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

Dec-10 Dec-11 Dec-12 Dec-13 Dec-14

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

Jul-11 Jul-12 Jul-13 Jul-14 Jul-15

Ty son Foods, Inc.

Guangdong Wen's Foodstuffs Group

WH Group Limited

BRF S.A.

Seaboard Corp.

Maple Leaf Foods Inc.

Public Joint Stock Company

Shandong Longda Meat Foodstuff Co.,

Muy uan Foods Co., Ltd.

Marudai Food Co., Ltd.

Median

Average

PwC

July 2016

2015A NTM

1 9.6x 1 5.5x

1 4.1 x 1 0.1 x

32.2x n.a.

1 6.8x n.a.

1 2.2x n.a.

26.5x 1 1 .7 x

8.7 x n.a.

3 .1 x n.a.

1 0.3x n.a.

1 1 .0x 1 3.5x

13.1x 12.6x

15.4x 12.7x

2015A NTM

1 0.3x 9.6x

6.4x 5.7 x

1 4.8x 1 3.3x

1 0.0x 9.9x

5.8x 6.8x

1 53.8x n.a.

5.3x 5.6x

4.3x 6.3x

5.4x 4.0x

5.0x 4.7 x

6.1x 6.3x

22.1x 7.3x

PoultryForestryFruit, vegetables & nuts


3


Poultry

M&A News

Germany: Sprehe Gruppe acquired turkey producer Bernard Matthews Oldenburg.

Russia: Rusgrain Holding has acquired poultry farm Singyavinskaya, Russia’s largest producer of commercial eggs.

Management News

No relevant news.


Ty son Foods, Inc.

JBS S.A.

Hormel Foods Corporation

BRF S.A.

Pilgrim's Pride Corporation

Fujian Sunner Dev elopment Co., Ltd.

MHP S.A.

Industrias Bachoco S.A.B. de C.V.

Sanderson Farms, Inc.

L.D.C. S.A.

Median

Average


Bidder/Target 1: Eco-Trade Corp/YaSheng Group, 2: Bonduelle SA/France Champignon, 3: Inversiones Frutícolas / Copefrut, 4: ITOCHU/ Dole, Worldwide Packaged Foods and Asia Fresh Produce Businesses, 5: Dramd Participações e Administração / Rasip Agro Pastoril, 6: Golden Target Pacific / Camposol Holding, 7: Almarai / Continental Farmers Group, 8: Walden International / Le Gaga Holding, 9: D&C Group/ Camposol Holding, 10: Grupo Nutresa/ Setas Colombianas, 11: D&C Group/ Camposol Holding, 12: Valles Del Sur/ Hortifrut S.A., 13: Arlon Group/ AlicoInc., 14: FMR Rentas Generales/ Fruticola Viconto S.A., 15: D&C Group/ CamposolHolding, 16: Property & Building Corp./ Mehadrin, 17: NA/ Hortifrut. 18: SucocitricoCutrale Ltda / Chiquita Brands. 19: Private investor / Lontrue Co, 20: Private investor / Lontrue Co, 21: Private investor / Hortifruit S.A., 22: Nomad Holdings / Iglo Foods Holdings, 23: Snyder’s-Lance / Diamond Foods.

Fruit, vegetables & nuts

M&A News

New Zealand: China’s Golden Wing Mau has acquired a 20% stake in T&G Global for US$28m.

UK: Florette acquired beetroot specialist Axgro Foods.

US: NewStar Fresh Foods announced it has been bought by President and long time employee, Anthony Vasquez.

Management News

US: T&G Global appointed Joe Barsi to President of its American pipfruit business.


Felda Global Ventures Holdings Berhad

Fresh Del Monte Produce Inc.

Gansu Yasheng Industrial (Group) Co.,

Hortifrut S.A.

United Plantations Bhd

Costa Group Holdings Limited

Hokuto Corporation

Dongfang Modern Agriculture Holding

T&G Global Limited

Société Internationale de Plantations

Median

Average

Bidder/Target 1: Old Mutual Investment Group / Sovereign Food Investment , 2: West Face Capital / Maple Leaf Foods, 3: EASY BIO & FarmStory / Maniker Co., 4: CherrybroCo ., 5: Sadia Alimentos / Avex S.A., 6: PT Japfa Comfeed / PT Multibreeder Adirama, 7: The Chefs' Warehouse Mid-Atlantic / Michael's Finer Meats & Seafoods, 8: SavolaGroup / Almarai, 9: Mitsubishi / Yonekyu, 10: Bellisio Foods / Overhill Farms. 11: QL Resources Berhad / Lay Hong Berhad, 12: Hassad Food / A’Saffa Foods, 13: JBS S.A. / Moy Park, 14: Charoen Pokphand Foods / CJSC Poultry, 15: Yonekyu Corp / Itoham Foods, 16: Cranswick plc / Crown Chicken, 17: KKR & Co / PT Japfa Comfeed.

2015A NTM

9.4x 6.2x

7 .4x 5.3x

1 1 .7 x 9.7 x

35.2x n.a.

6.3x n.a.

1 5.9x 1 2.5x

1 6.9x 6.9x

9.2x 7 .6x

25.6x 6.8x

4.5x 5.0x

10.6x 6.9x

14.2x 7.5x


Bidder/Target 1: Placas do Parana /Arauco do Brasil, 2: FV S.A./Fiplasto S.A., 3: Meerwind/Rörvik Timber, 4: BC Investment management / Timber West Forest Corp, 5: LIXIL Group/Hivic Co., 6: Viking Investments Group/China Wood, 7: Viking Investments Group/China Wood, 8: Brookfield Asset Management / Western Forest Products, 9: Samling Strategic / Samling Global, 10: Samling Global / Lingui Developments, 11: Mill Road Capital / PRT Growing Service, 12: Rentech /FulghumFibres, 13: Weyerhaeuser / Longview Timber, 14: Boise Cascade Wood Products / Chester Wood & Moncure Plywood, 15: Louisiana-Pacific / Ainsworth Lumber, 16: Interfor / Tolleson Lumber, 17: Rentech / New England Wood. 18: Keshav Kantamneni/ Uniply Industries, 19: Management / TFS Corporation, 20: Private Investors / Hong Wei Holdings.

Trading multiples (EV/EBITDA)Forestry

M&A News

No relevant news.

Management News

No relevant news.

West Fraser Timber Co. Ltd.

Canfor Corp.

Duratex SA

Deltic Timber Corporation

Sonae Indústria, S.G.P.S., S.A.

Stella-Jones Inc.

Interfor Corporation

Boise Cascade Company

Norbord, Inc.

Suzano Papel e Celulose S.A.

Median

Average

Median: 7.9x

Median: 6.8x

Median: 11.9x

0.0x

5.0x

10.0x

15.0x

20.0x

Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

Apr-11 Apr-12 Apr-13 Apr-14 Apr-15

5

10

15

20

25

30

35

Aug-12 Aug-13 Aug-14 Aug-15


PwC

July 2016

2015A NTM

1 2.8x 1 4.5x

1 4.6x 1 4.1 x

7 .6x 1 1 .8x

5.9x 1 0.1 x

4.7 x 6.5x

6.5x 8.1 x

9.0x 9.8x

5.0x 5.8x

6.9x 8.2x

9.3x 8.1 x

7.3x 9.0x

8.2x 9.7x

Grains & beansFertiliser & agricultural chemicals


4



Fertiliser & agricultural chemicals

M&A News

US: Shareholders of DuPont and The Dow Chemical Company voted to approve all proposals to complete their merger of equals. The deal is due to close in the second half of 2016.

Switzerland: Syngenta expects its takeover by ChemChina to be completed by the end of the year.

Spain: Brandt acquired the assets of TratamientosGuadalquivir, a producer and distributor of specialty fertilisers.

Management News

US: AgroFresh Solutions appointed Jordi Ferre to CEO.


Monsanto Company

Sy ngenta AG

Potash Corporation of Saskatchewan

The Mosaic Company

K+S Aktiengesellschaft

CF Industries Holdings, Inc.

Agrium Inc.

Yara International ASA

Israel Chemicals Ltd.

The Dow Chemical Company

Median

Average


Bidder/Target 1: Koor Industries/ADAMA , 2: CF Industries/Terra Industries, 3: China National Chemical / ADAMA, 4: Uralkali /Silvinit, 5: Sumitomo Chemical / Nufarm, 6: Mineracao Naque/ Vale Fertilizantes, 7: Menoza Trading / OJSC PhosAgro, 8: CJSC Holding / SBU Azot, 8: EuroChem/K+S Aktiengesellschaft, 10: YoungorInvestment/Kingenta Ecologic Engineering, 11: Norica /Grupa Azoty, 12: Grupa AzotySpólka Akcyjna/Zaklady Azotowe Pulawy Spolka Akcyjna, 13: ADAMA /Hubei SanondaCo., 14: Jiang Yin Hanying/Jiangsu ChengXing Phosph-Chemicals, 15: YaraInternational/OFD Holding, 16: EDAILY Co./ KG Chemical, 17: Adorabella/OJSC PhosAgro, 18: Platform Specialty Products/ Chemtura AgroSolutions, 19: YaraInternational/Galvani Indústria, Comércio E Serviços, 20: Boulevard Acquisiton / AgroFresh. 21: CF Industries / GrowHow UK. 22: Dow Chemical / DuPont. 23: Compass Minerals / Produquimica, 24: Sumitomo Chemical / Excel Crop Care.

2015A NTM

1 1 .1 x 1 0.3x

1 1 .2x 1 2.9x

8.5x 7 .6x

1 8.7 x 1 7 .1 x

1 6.3x 1 2.8x

23.0x 1 5.5x

1 2.0x 9.3x

1 0.7 x 9.4x

26.3x 1 7 .6x

1 2.9x 1 1 .8x

12.5x 12.3x

15.1x 12.4x

Grains & beans

M&A News

Australia: Archer Daniels Midland is to sell its 19.85% stake in GrainCorp after its failed attempt to take it over.

US: Monsanto turned down Bayer’s improved $64bn acquisition offer, but said it was open to further talks with Bayer and other parties.

Specialty seed producer Suba Seeds acquired Brotherton Seed Company.

Land O’Lakes is to acquire Ceres Inc for $17m.

South Africa: Nutreco acquired Advit Animal Nutrition.

Vietnam: Bunge and Wilmar International announced plans to form a JV with soybean producer Quang Dung to market oils and soybean meal in Vietnam.

Management News

Australia: Australian Grain Technologies promoted Haydn Kuchel to CEO.

Hong Kong: COFCO International appointed Matt Jansen to CEO. Jansen will continue to serve as CEO of subsidiary COFCO Agri.


Bidder/Target 1: GrainCorp. / GrainCorp Malt, 2: Tradewinds Malaysia / Padiberas Nasional Bhd, 3: Felda Global Ventures / Tradewinds Malaysia, 4: NA/ Kernel Holding, 5: PT Salim Ivomas Pratama / PT Perusahaan Perkebunan London Sumatra, 6: PT Bakrie Sumatera Plantations / Agri International Resources, 7: Vertical Capacity / IOI Corp., 8: Seaport Terminal (Johor), Acara Kreatif Sdn, Kelana Ventures/Padiberas Nasional, 9: Seaport Terminal (Johor), Acara Kreatif Sdn, Kelana Ventures / Tradewinds Malaysia , 10: Bollore/ Plantations Des Terres Rouges, 11: Seaport Terminal (Johor), Acara KreatifSdn, Kelana Ventures / Padiberas Nasional Bhd, 12: , PT Krishna Kapital/ PT Dharma Satya Nusantara. 13: SPC Kappa Co / Kappa Create Holdings Co. 14: Private investor / Longtrue Co, 15: Post Holdings / MOM Brands Company. 16: Private investor / LongtrueCo, 17: Sime Darby Plantation Sdn / New Britain Palm Oil Ltd, 18: Associated British Foods / Illovo Sugar, 19: Canada Pension Plan Investment Board / Glencore, Agricultural Products.

Archer-Daniels-Midland Company

Wilmar International Limited

Bunge Limited

IOI Corp.Bhd

GrainCorp. Ltd.

ShanDongDenghai Seeds Co., LTD.

PT Astra Agro Lestari Tbk

First Resources Limited

Genting Plantations Berhad

KWS Saat SE

Median

Average

Median: 11.9x

Median: 9.8x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16

PwC

July 2016

2015A NTM

1 6.2x 1 2.7 x

1 .9x 8.4x

21 .2x 1 8.0x

8.4x 7 .8x

1 5.2x 1 2.6x

8.2x 7 .8x

1 4.4x 1 1 .7 x

1 7 .5x 9.1 x

1 3 .8x 6.9x

1 7 .2x 1 1 .2x

14.8x 10.2x

13.4x 10.6x

2015A NTM

1 5.9x n.a.

1 4.0x 1 6.2x

8.9x 8.8x

7 .9x 1 0.1 x

1 4.1 x 1 2.5x

1 1 .1 x 1 1 .9x

1 1 .5x 9.3x

1 6.0x 9.7 x

1 5.5x n.a.

8.5x 7 .5x

12.7x 9.9x

12.3x 10.7x

2015A NTM

20.0x 1 6.4x

1 4.3x 1 4.0x

1 8.6x 1 9.1 x

20.5x 1 6.2x

1 3.7 x 1 3 .2x

1 8.0x 1 6.3x

24.8x 1 3.0x

22.0x n.a.

23.4x 21 .3x

21 .6x 1 8.9x

20.3x 16.3x

19.7x 16.5x

Viticulture Agricultural products & machineryFishery


5


Agricultural products & machinery

M&A News

Denmark: AGCO is to acquire Cimbria Holdings for US$340m from Silverfleet Capital.

US: Agrium acquired 18 ag retail locations from Cargill AgHorizons.

UK: Royal Reesink completed the acquisition of Lely Holding, a turfcare activities company operating in the UK, Ireland and Denmark.

Germany: The Big Dutchman group is to acquire PAL-Bullermann, a leading supplier of poultry equipment, subject to regulatory approval.

Management News

No relevant news.

Bidder/Target 1: Woodstream/Zareba Systems, 2: Ag Growth International/Mepu Oy, 3: Converted Organics/TerraSphere Systems, 4: Blount/SpeeCo, 5: Kubota/KvernelandASA, 6: Paine & Partners/Eurodrip SA, 7: Seoul Moongo Co. / Daedong Industrial Co., 8: Danfoss/ Sauer-Danfoss Inc., 9: NA/ China Farm Equipment, 10: Silverfleet Capital /Cimbria, 11: P&P Water Holding / Eurodrip S A, 12: MHR Fund Management / Titan International. 13: Private investors / Xinjiang Machinery Research, 14: Bain Capital / Yukiguni Maitake Co. 15: SHV Holdings / Nutreco NV.16: Paine & Partners / Spearhead International.

Trading multiples (EV/EBITDA)Transaction multiples (EV/EBITDA)

Transaction multiples (EV/EBITDA) Trading multiples (EV/EBITDA)Fishery

M&A News

Denmark: Bakkafrost Group is to acquire the remaining 51% stake in P/F Faroe Farming for US$11.2m.

Management News

UK: Pete Ward stepped down as CEO of Young’s Seafood. Bill Showalter, CEO of Young’s parent company, will fill the role on an interim basis.

Bidder/Target 1: Thai Union Frozen Products/MW Brands, 2: BoparanHoldings/Northern Foods, 3: Corporacion Economica Damm / Pescanova, 4: Luxempart / Pescanova, 5: Orkla Brands / Rieber & Søn, 6: Tiger Brands / OceanaGroup, 7: Geveran Trading Co ./ Marine Harvest ASA, 8: Profond Holding / Marine Harvest, 9: China Fishery Group / Copeinca, 10: Geveran Trading Co. / Marine Harvest, 11: RCL Foods / Foodcorp, 12: China Fishery Group/Copeinca, 13: CFG Investment / Copeinca. 14: Hassad Food / A’Saffa Foods, 15: Marine Harvest / Havfisk ASA, 16: Oceana Group / Daybrook Fisheries, 17: Private investors / Sajo Industries, 18: Private investors / Grieg Seafood.

Charoen Pokphand Foods Public Co.

Marine Harv est ASA

PT Indofood CBP Sukses Makmur Tbk

NH Foods Limited

CALBEE, Inc.

Toy o Suisan Kaisha Ltd.

Thai Union Group Public Company

SalMar ASA

Lerøy Seafood Group Asa

Guangdong Haid Group Co., Limited

Median

Average


Viticulture

M&A News

No relevant news.

Management News

No relevant news.


Bidder/Target 1: Advini/Laroche, 2: Nikora/JSC Teliani Valley, 3: Remgro and ZederInvestment /Capevin Holdings, 4: Kirin/Mercian, 5: SVL/Abrau-Durso, 6: Majority shareholders/Magnotta Winery, 7: Sogrape Vinho/Bodegas Lan, 8: Tempo Beverages/Barkan Wine Cellars, 9: FMR Rentas Generales/Viñedos Emiliana, 10: FMR Rentas Generales/ Treasury Wine Estates, 11: Kohlberg Kravis Roberts & Co / Treasury Wine Estates, 12: Private investor/ Schlumberger, 13: Private investor/ Pincon Spirit Ltd.

Diageo plc

Pernod-Ricard SA

Brown-Forman Corporation

Constellation Brands Inc.

Yantai Changy u Pioneer Wine

Dav ide Campari - Milano SpA

Treasury Wine Estates Limited

Anhui Kouzi Distillery Co., Ltd.

Vranken Pommery Monopole

Lanson-BCC

Median

Average

Deere & Company

CNH Industrial N.V.

Kubota Corporation

AGCO Corporation

The Toro Company

Lindsay Corporation

Turk Traktor v e Ziraat Makineleri

First Tractor Co. Ltd.

Iseki & Co. Ltd.

Jain Irrigation Sy stems Limited

Median

Average

Median: 8.1x

Median: 12.2x

Median: 11.3x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

40.0x

Aug-11 Aug-12 Aug-13 Aug-14 Aug-15

0.0x

5.0x

10.0x

15.0x

20.0x

Feb-12 Feb-13 Feb-14 Feb-15

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15

PwC

July 2016

6


Food trust

PwC

July 2016

The rising cost of food production, coupled with fierce competition in the retail sector, has driven food companies to aggressively seek cost savings and increase the complexity of their food supply chains.

This is the backstory to the 2013 scandal that saw horsemeat passed off as beef mince and supplied to food producers all over Europe – a problem that continues to afflict the food industry today.

The scandal sparked an international investigation, prosecutions and questions over regulator effectiveness. There were allegations of criminal activity and questions about whether European regulators are capable of coping with an industry whose supply chain has become more complex and international. It caused consumers to question whether they can trust the labels on supermarket shelves.

Our client, an international FMCG company, asked us for help in understanding the key economic, social and environmental risks facing its food and commodity supply chains.

This was a focus on mitigating the risks of food fraud as much as it was assessing food safety and quality across the supply chain. So, how did we help and improve their processes?

Increasingly complex and extended supply chains bringing new and expanded risks, such as reduced traceability and fraud, required a new approach to supply chain management. We supported our client by redesigning their strategy, structure and processes to create a robust supplier risk framework.

We also developed a detailed understanding of retailers’ requirements so our client could focus on the key drivers that were pertinent to their relationships.

This is an industry where customer trust and confidence is paramount, and a food safety scare can soon become a high profile and brand damaging scandal threatening a food company’s reputation and viability.

Successful food companies must demonstrate transparency and reliability by understanding their customers’ requirements and effectively manage their supply chain risks to reduce their exposure.

How did we help?

We developed a range of options for our client, which included:

• Risk profiling to identify and quantify risk in their supply chain,

• Forensic investigations to identify what may have gone wrong and why,

• Performing controls and supplier audits and due diligence work to provide assurance as required,

• Deploying risk monitoring solutions to ensure compliance with standard, and

• Redesigning the supply chain structure, strategy and organisation to optimise between cost and resilience.

Food trust Food supply and integrity case study

7

Section 2 – Food trust


When beef goes horse. A lesson in managing supplier risk

PwC

July 2016

8


Markets update

PwC

July 2016

Macroeconomic & foreign exchange data

Section 3 – Markets update

9


Source: S&P Capital IQ

FX – Spot rates FX – Week-to-date % change

Macroeconomic indicators

Notes: Figures are the most recently reported quarterly data, as reported by the Economist Intelligence Unit by 21 July 2016 • Current data is for 2016Q1 or 2016Q2 whereavailable • Real GDP growth is calculated as % change year on year • CPI Inflation is calculated as % change year on year • Unemployment rate represents the actualunemployment as a percentage of the labour force • Industrial Production Index is calculated as % change year on year for the index • Producer Price Index in calculated as the %change year on year for the index of prices faced by firms, with the exception of Brazil whose index is based on a general prices • Exports fob in $US bn • Trade balance iscalculated as Exports fob less imports cif in $US bn • Reported currencies for Exports and Trade Balances converted to $US at most recent conversion rates at time of writing •

Note: Straight line shows historical spot prices, dotted marked line shows futures prices. Price development table is based on most actively traded futures contract.

FX – Year-to-date % changeFX – Month-to-date % change

EUR USD BRL CNY GBP

1 EUR - -0.83% -3.27 % -0.69% 0.1 5%

1 USD 0.84% - -2.46% 0.1 5% 0.99%

1 BRL 3.38% 2.52% - 2.67 % 3.53%

1 CNY 0.69% -0.1 5% -2.60% - 0.84%

1 GBP -0.1 5% -0.98% -3.41 % -0.83% -

20.00

25.00

30.00

35.00

40.00

45.00

50.00

55.00

60.00

Aug-2015 Dec-2015 Apr-2016 Aug-2016 Dec-2016 Apr-2017 Aug-2017

EUR USD BRL CNY GBP

1 EUR - 1 .1 082 3.5287 7 .37 24 0.847 7

1 USD 0.9024 - 3.1 841 6.6525 0.7 649

1 BRL 0.2834 0.31 41 - 2.0893 0.2402

1 CNY 0.1 356 0.1 503 0.47 86 - 0.1 1 50

1 GBP 1 .1 7 97 1 .307 4 4.1 627 8.697 2 -

EUR USD BRL CNY GBP

1 EUR - -0.82% -2.47 % -0.69% 0.7 4%

1 USD 0.83% - -1 .66% 0.1 3% 1 .57 %

1 BRL 2.53% 1 .69% - 1 .82% 3.28%

1 CNY 0.7 0% -0.1 3% -1 .7 8% - 1 .44%

1 GBP -0.7 3% -1 .54% -3.1 8% -1 .42% -

EUR USD BRL CNY GBP

1 EUR - 2.04% -1 7 .98% 4.55% 1 5.1 0%

1 USD -2.00% - -1 9.62% 2.46% 1 2.80%

1 BRL 21 .92% 24.41 % - 27 .47 % 40.33%

1 CNY -4.36% -2.41 % -21 .55% - 1 0.09%

1 GBP -1 3.1 2% -1 1 .35% -28.7 4% -9.1 6% -

Crude Oil - Brent ($ per Bbl. – ICE: ^B) Gold ($ per troy oz. – COMEX: ^GC)

Latest price 1 ,3 6 2 .7 0 Week-to-date 0.7 1 %

52-w eek low 1 ,04 9 .6 0 Month-to-date -0.3 2 %

52-w eek high 1 ,3 6 8 .2 0 Year-to-date 2 8 .5 3 %

Dev elopm ent - Gold

Indicator Australia Brazil China Germany India Japan U.K. U.S.

Real GDP Growth (YoY) 3.0% -5.1 % 6.7 % 1 .6% 8.2% 0.0% 2.1 % 2.0%

Industrial Production Index (YoY) 1 .9% -1 1 .7 % 5.9% 2.9% 0.2% -3.2% 0.8% 0.2%

Unemploy ment rate 5.8% 1 0.9% n/a 4.3% n/a 3.2% 5.1 % 5.1 %

CPI Inflation (YoY) 1 .3% 1 0.1 % 2.2% 0.1 % 5.3% 0.1 % 0.4% 0.4%

Producer Price Index (YoY) -1 .1 % -8.3% n/a -2.7 % 0.0% -3.4% -1 .0% -0.1 %

Exports ($US bn) 42.3 40.6 464.1 332.5 64.7 1 7 0.4 1 07 .1 352.8

Trade Balance ($US bn) -3.7 8.4 1 25.7 69.4 -1 8.3 3.3 -50.2 -1 82.6

Latest price 4 4 .2 9 Week-to-date 1 .7 5 %

52-w eek low 2 8 .5 5 Month-to-date -1 3 .7 0%

52-w eek high 5 5 .8 0 Year-to-date 1 7 .5 7 %

Dev elopm ent - Cru de Oil

1,040.00

1,090.00

1,140.00

1,190.00

1,240.00

1,290.00

1,340.00

1,390.00

1,440.00


PwC

July 2016

Commodities (1/2)


10


Corn ($ per bu. – CBOT: ^C)

Oats ($ per bu. – CBOT: ^O)

Soybean Meal ($ per T – CBOT: ^SM)

Wheat ($ per bu. – CBOT: ^W)

Soybeans ($ per bu. – CBOT: ^S)

Sugar #11 ($ per lb – ICE: ^SB)



3.00

3.20

3.40

3.60

3.80

4.00

4.20

4.40

4.60

Aug-2015 Dec-2015 Apr-2016 Aug-2016 Dec-2016 Apr-2017 Aug-20173.90

4.10

4.30

4.50

4.70

4.90

5.10

5.30

5.50


8.00

8.50

9.00

9.50

10.00

10.50

11.00

11.50

12.00


250.00

270.00

290.00

310.00

330.00

350.00

370.00

390.00

410.00

430.00


Latest price 3 2 8 .00 Week-to-date -6 .2 6 %

52-w eek low 2 6 0.6 0 Month-to-date -1 4 .6 3 %

52-w eek high 4 1 8 .3 0 Year-to-date 2 3 .5 4 %

Dev elopm ent - Soy bean

0.10

0.12

0.14

0.16

0.18

0.20

0.22


Latest price 0.2 0 Week-to-date 3 .4 1 %

52-w eek low 0.1 0 Month-to-date -5 .2 0%

52-w eek high 0.2 1 Year-to-date 2 9 .2 7 %

Dev elopm ent - Su gar

Latest price 3 .3 1 Week-to-date -3 .3 2 %

52-w eek low 3 .3 1 Month-to-date -8 .06 %

52-w eek high 4 .4 2 Year-to-date -7 .6 4 %

Dev elopm ent - Corn

Latest price 4 .03 Week-to-date -1 .04 %

52-w eek low 4 .01 Month-to-date -6 .2 8 %

52-w eek high 5 .2 6 Year-to-date -1 4 .2 3 %

Dev elopm ent - Wh eat


52-w eek low 1 .7 8 Month-to-date -3 .6 4 %

52-w eek high 2 .4 7 Year-to-date -1 4 .6 2 %

Dev elopm ent - Oat s

1.70

1.80

1.90

2.00

2.10

2.20

2.30

2.40

2.50

2.60



52-w eek low 8 .5 5 Month-to-date -1 5 .3 2 %

52-w eek high 1 1 .7 8 Year-to-date 1 0.6 8 %


PwC

July 2016

Commodities (2/2)


11


Cocoa ($ per MT – ICE: ^CC)

Rice – Rough #2 ($ per cwt. – CBOT: ^RR)

Crude Palm Kernel Oil ($ per MT – KLSE: ^QF)

Coffee – Columbian ($ per lb – ICE: ^KC)

Soybean Oil ($ per lb – CME: ^BO)

Milk – Class III ($ per lb – CME: ^DA)



2,700.00

2,800.00

2,900.00

3,000.00

3,100.00

3,200.00

3,300.00

3,400.00

3,500.00


Latest price 2 ,9 9 1 .00 Week-to-date 5 .5 0%

52-w eek low 2 ,7 6 1 .00 Month-to-date -0.1 3 %

52-w eek high 3 ,4 1 7 .00 Year-to-date -6 .8 5 %

Dev elopm ent - Cocoa

9.00

10.00

11.00

12.00

13.00

14.00


400.00

450.00

500.00

550.00

600.00

650.00

700.00

Aug-2015 Dec-2015 Apr-2016 Aug-2016 Dec-2016 Apr-2017 Aug-20170.12

0.13

0.14

0.15

0.16

0.17

0.18


1.10

1.15

1.20

1.25

1.30

1.35

1.40

1.45

1.50

1.55


Latest price 1 .4 2 Week-to-date -2 .8 0%

52-w eek low 1 .1 2 Month-to-date -2 .9 4 %

52-w eek high 1 .5 2 Year-to-date 1 2 .1 5 %

Dev elopm ent - Coffee


52-w eek low 9 .3 3 Month-to-date -1 4 .4 5 %

52-w eek high 1 3 .4 0 Year-to-date -2 1 .2 1 %

Dev elopm ent - Rou gh Rice

Latest price 6 1 9 .5 0 Week-to-date 6 .3 5 %

52-w eek low 4 2 3 .2 5 Month-to-date 3 .04 %

52-w eek high 7 01 .2 5 Year-to-date 1 0.9 2 %

Dev elopm ent - Palm Oil

Latest price 0.1 7 Week-to-date 1 1 .3 4 %

52-w eek low 0.1 2 Month-to-date 1 2 .7 4 %

52-w eek high 0.1 7 Year-to-date 2 3 .5 6 %

Dev elopm ent - Milk

0.26

0.28

0.30

0.32

0.34

0.36


Latest price 0.3 1 Week-to-date 0.5 2 %

52-w eek low 0.2 6 Month-to-date -3 .9 5 %

52-w eek high 0.3 5 Year-to-date -0.3 6 %


PwC

July 2016

Equity indices


12


MSCI USA

MSCI Pacific

MSCI World/Food Products (Industry Index)

MSCI Europe

MSCI BRIC

MSCI World/Retailing (Industry Group Index)


1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

Jul-2011 Jul-2012 Jul-2013 Jul-2014 Jul-2015 Jul-2016

1,500

1,700

1,900

2,100

2,300

2,500

2,700


120

170

220

270

320

370


120

140

160

180

200

220

240

260

280


150

200

250

300

350


Latest value 2 ,07 9 .1 9 Week-to-date 0.4 1 %

52-w eek low 1 ,7 3 4 .2 4 Month-to-date 0.5 4 %

52-w eek high 2 ,07 9 .1 9 Year-to-date 6 .6 4 %

Dev elopm ent - MSCI USA

Latest value 1 ,4 5 2 .5 2 Week-to-date -1 .1 9 %

52-w eek low 1 ,3 05 .7 6 Month-to-date -0.4 9 %

52-w eek high 1 ,7 04 .9 0 Year-to-date -4 .6 1 %

Dev elopm ent - MSCI Eu rope

Latest value 2 ,3 1 9 .9 9 Week-to-date -1 .8 0%

52-w eek low 1 ,9 4 2 .5 4 Month-to-date -1 .9 4 %

52-w eek high 2 ,4 7 7 .4 8 Year-to-date 0.2 4 %

Dev elopm ent - MSCI Pacific

Latest value 2 4 1 .00 Week-to-date 1 .4 6 %

52-w eek low 1 8 5 .1 4 Month-to-date 0.9 3 %

52-w eek high 2 5 5 .00 Year-to-date 9 .05 %

Dev elopm ent - MSCI BRIC

Latest value 3 3 0.7 2 Week-to-date 0.00%

52-w eek low 2 6 7 .3 9 Month-to-date -0.3 9 %

52-w eek high 3 3 2 .01 Year-to-date 4 .3 6 %

Dev elopm ent - MSCI World/Ret ailing (Indu st ry Grou p Index)

Latest value 2 5 4 .08 Week-to-date -1 .05 %

52-w eek low 2 1 5 .1 6 Month-to-date -0.7 3 %

52-w eek high 2 5 6 .7 8 Year-to-date 9 .3 6 %

Dev elopm ent - MSCI World/Food Produ ct s (Indu st ry Index)

1,000

1,200

1,400

1,600

1,800

2,000

2,200


PwC

July 2016

Section 4 – Our team

13


Credentials

Vendor due diligence for GKN identifying key drivers of investment in agriculture tractors and machinery in Europe, the US, Brazil, Russia

and China

Undertook a strategic review;

Commodity risk analysis;

buy-side assistance to Shanghai Maling for

their 50% stake in SFF

Financial advisor to Oji Holdings and

Innovation Network on their US$890m

acquisition of Carter Holt Harvey

Buy-side advisory

Advisor on acquisition of Coop Farms estate for £249m in one of the

largest land sales in Britain

Buy-side advisory

Financial due diligence for GrainCorp for their

acquisition of Allied Mills

Sale of 100% of equity in Manuka Health NZ to Pacific Equity Partners

for NZ$110m.

Sell-side advisory

Bright Sugar Co. Ltd.Acquisition of 60%

stake in Yunnan Yin More Sugar Co. Ltd

Buy-side advisory

Assisted KS Oils raise second round

US$110m of Private Equity funds

Financial advisory

Lead advisory for Marlborough Lines in

their acquisition of 80% of Yealands Estate

Buy-side advisory Buy-side advisory

Advisor to management on the sale of Provimi to

Cargill

Advisor to management of Heiploeg on its capital structure Total debt 130m

Commercial due diligence of Cimbria,

manufacturer of grain handling and seed

processing equipment on behalf of Silverfleet

Capital

Commercial due diligence of Haarslev,

one of the leading global meat rendering machinery suppliers

Financial and due diligence services on a

transaction for Syngenta

Financial Advisory

Advised DLG on acquisition of 43% stake

in Team

Financial Advisory

Sell-side advisory Financial advisory

PwC

July 2016


14


PwC was the number one global M&A advisor for 2015, achieved through a strong international network

PwC currently has approximately 480 live sale mandates and we advise on average over 300 deals globally per year

PwC M&A Ranking 2015

• Global: 1st

• Global buyouts 1st

• Europe: 1st

• European buyouts: 1st

• Iberia: 1st• Nordics: 1st • Asia-Pacific (excl. Japan): 1st • South Korea: 1st

Source: MergerMarket M&A Trend Report 2015

Deal Count

1 PwC 132

2 117

3 KPMG 113

4 EY 86

5 Nomura 83

Rank Advisor

Asia-Pacific

Deal Count

1 PwC 389

2 Goldman Sachs 349

3 Morgan Stanley 329

4 KPMG 323

5 JP Morgan 303

Rank Advisor

Global

Morgan Stanley

Deal Count

1 Goldman Sachs 253

2 Morgan Stanley 210

3 JP Morgan 198

4 Bank of America Merrill Lynch 171

15 PwC 96

Rank Advisor

Americas

Deal Count

1 PwC 262

2 Rothschild 242

3 KPMG 205

4 EY 196

5 Deloitte 175

Rank Advisor

Europe

2015

PwC

July 2016


15


Global CF leader

Stuart MckeeT: +44 20 7213 4321E: [email protected]

Argentina

Mariano TomatisT: +54 11 4850 4757E: [email protected]

Australia

Craig HeraghtyT: +61 282 661 458E: [email protected]

Ryan JordanT: +61 732 575 641E: [email protected]

Brazil

Ana MalvestioT: +55 16 3516 6624E: [email protected]

Alessandro Ribeiro

T: +55 11 3674 2651

E: [email protected]

Daniela CocoT: +55 19 3794 5321E: [email protected]

Luiz BarbosaT: +55 16 3516 6694E: [email protected]

Canada

Clinton L. RobertsT: +1 403 509 7307E: [email protected]

CEE

Stephen OldfieldT: +44 (0) 771 038 8792E: [email protected]

China

Frank LynT: +86 10 6533 2388E: [email protected]

Gabriel WongT: +86 21 2323 2609E: [email protected]

Denmark

Thomas KrantzT: +45 3 945 3140E: [email protected]

France

Yves PelleT: +33 (0) 299 231 705E: [email protected]

Germany

Norbert NiedenhofT: +49 (0) 541 330 4330E: [email protected]

India

Ajay KakraT: +91 124 330 6029E: [email protected]

Sunjay VST: +91 124 330 6171E: [email protected]

Indonesia

Rizal SatarT: +62 21 5289 0350E: [email protected]

Ireland

Jimmy MaherT: +353 (0) 1 792 6326E: [email protected]

Japan

Matthew J WybornT: +81 (3) 3546 8570E: [email protected]

Taizo IwashimaT: +81 (3) 6266 5572E: [email protected]

MENA

Mark WebsterT: +966 (11) 211 0400 (Ext. 1555)E: [email protected]

Netherland

Ruud KokT: +31 (0) 88792 6382E: [email protected]

Guido EmanuelsT: +31 (6) 2042 0533E: [email protected]

New Zealand

Craig ArmitageT: +64 (3) 374 3052


Justin LiddellT: +64 (9) 355 8330E: [email protected]

Romania

Anca ScurtescuT: +40 21 22 53 871E: [email protected]

Singapore

Richard SkinnerT: +65 9823 3771E: [email protected]

South Africa

Frans WeilbachT: +27 (21) 815 3204E: [email protected]

Switzerland

Dr. Martin FreyT: +41 58 792 15 37E: [email protected]

Ukraine

Olena VolkovaT: +38 (0) 56 733 5010E: [email protected]

UK

Mark JamesT: +44 (0) 7803 858721E: [email protected]

Thomas SengbuschT: +44 (0) 7725 069448E: [email protected]

USA

Thomas JohnsonT: +1 612 596 4846E: [email protected]

Christopher NolanT: +1 646 4717387E: [email protected]

Sean GaffneyT: +1 216 875 3275E: [email protected]

Agribusiness network Global Agribusiness Deals reportElisha NuttallE: [email protected]

PwC

July 2016


16


Global Leader

Craig ArmitageE: [email protected]

Australia

Clare PowerE: [email protected]

Andrew WilsonE: [email protected]

Christopher DaniellE: [email protected]

Rick CretharE: [email protected]

Belgium

Marc DaelmanE: [email protected]

Yogesh NayakE: [email protected]

Brazil

Ana MalvestioE: [email protected]

Daniela CocoE: [email protected]

China

Shirley XieE: [email protected]

Janice LeeE: [email protected]

Catherine BarieE: [email protected]

Michelle MengE: [email protected]

France

Baptisete BannierE: [email protected]

Kader GarnierE: [email protected]

Sabine Durand-HayesE: [email protected]

Germany

Hendrik FinkE: [email protected]

Barbara Johanna WielerE: [email protected]

Gerd BovensiepenE: [email protected]

Marcus MesserschmidtE: [email protected]

India

Ashok VarmaE: [email protected]

Ajay KakraE: [email protected]

Italy

Gianluca SacchiE: [email protected]

Japan

Kazu MiyamuraE: [email protected]

Yukinori MorishitaE: [email protected]

Yoshiaki YoneyamaE: [email protected]

Malaysia

Josephine PhanE: [email protected]

Khoon Yean Soo HooE: [email protected]

Netherlands

Hans SchooldermanE: [email protected]

Onno NillesenE: [email protected]

Tom BerendsenE: [email protected]

New Zealand

Bruce BaillieE: [email protected]

Mark BramleyE: [email protected]

Scott MitchellE: [email protected]

Richard PolsonE: [email protected]

Norway

Per RøhnebækE: [email protected]

Food Supply & Integrity Services team

Qatar

Michael FergusonE: [email protected]

Russia

Tim CloughE: [email protected]

Singapore

Julia LeongE: [email protected]

Desiree BeerenE: [email protected]

Richard SkinnerE: [email protected]

Switzerland

Michael RubleE: [email protected]

Turkey

Tumin GultekinE: [email protected]

Taiwan

Paul LiuE: [email protected]

Garry KingE: [email protected]

United Kingdom

Marco AmitranoE: [email protected]

Fran MarwoodE: [email protected]

Madeleine ThompsonE: [email protected]

United States

Sally BernsteinE: [email protected]

Kelvin HarrisE: [email protected]

Thomas Johnson


Don ReedE: [email protected]

Vietnam

Xavier PotierE: [email protected]

Global Agribusiness · food group WhiteWave in a cash deal worth $12.5bn. ... stake in Engro Foods,...

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Transcript of Global Agribusiness · food group WhiteWave in a cash deal worth $12.5bn. ... stake in Engro Foods,...