foodservice spotlight 2018 - clairfield.com · introduction to foodservice ... systems. rising...

Could be

used for

customer

specific pics:

products,

applications,

sector, etc)

1

SECTOR SPOTLIGHT

FOODSERVICE

Industry Focus

Consumer & retail

www.clairfield.com

2

CONTENTS

RECENT CASE STUDY

INTRODUCTION TO FOODSERVICE

CLAIRFIELD INTERNATIONAL SECTOR EXPERTISE

KEY FACTS ABOUT FOODSERVICE PER REGION

BENELUX

BRAZIL

DACH

FRANCE

ITALY

NORDICS

POLAND

SPAIN

UK

USA

CONTACT INFORMATION

ABOUT CLAIRFIELD

p. 3

p. 5

p. 8

p. 11

p. 15

p. 18

p. 21

p. 25

p. 28

p. 31

p. 34

p. 37

p. 40

p. 43

p. 44

3

SECTOR SPOTLIGHT: FOODSERVICE

ADVISOR OF CHOICE FOR CORPORATE CLIENTS (1/2)

4


The acquisition of Pier 7 represents the second transaction that Clairfield International has advised for Bidcorp. In 2014, Clairfield International advised on Bidcorp’s Italian market entry with the acquisition of Gruppo DAC. Clairfield is pleased to be repeatedly selected as the trusted strategic and financial advisor to international clients such as Bidcorp.

Deal team: Albert Schander, Oliver Kolb

acquired a majority shareholding in

Advisor to the buyer

ADVISOR OF CHOICE FOR CORPORATE CLIENTS (2/2)

CLAIRFIELD ADVISED BIDCORP (FORMERLY BIDVEST) ON 2ND PLATFORM

ACQUISITION IN EUROPE

Transaction summary Transaction rationale

Bid Corporation (Bidcorp) of South Africa acquired a majority shareholding in Pier 7 Foods, based in Gröbenzell, Germany, securing entry into the lucrative German food service market. The transaction was approved by the German Bundeskartellamt (Independent Competition Authority) in July 2017.

The acquisition of Pier 7 Foods accomplishes Bidcorp’s objective of market entry into Germany. Pier 7 customers include well-known restaurant chains and hotels. Bidcorp and Pier 7 Foods will assess other strategic partnering opportunities in the upcoming months. The investment in Pier7 Foods in Germany is a further milestone in Bidcorp’s growth strategy in Europe and comes on the heels of its acquisition of the Spanish Guzman Group.

Profile of the companies

Views of the parties

Bidcorp Ltd is headquartered in Johannesburg and was established in 1988. The group operates globally in food services which comprises wholesale distribution of frozen, chilled, fresh, and dry foodstuffs, as well as ancillary products, mostly to B2B clients in the HoReCa market (hotels, restaurants, and catering-businesses). Bidcorp is quoted on the Johannesburg stock exchange and generates close to EUR 10 billion in revenues. The group has significant investments in over 50 businesses and currently has approximately 25,000 employees.

Pier 7 Foods Import GmbH was founded in 1998 and headquartered in Gröbenzell, near Munich. The company distributes fresh and frozen food to the food and gastro-hotel industry in Germany and Austria and has long-standing relationships with carefully selected suppliers. Pier 7 has seven subsidiaries with its own logistics and vehicle fleet supplying certain areas and works with its cooperation partners coming from all over Europe. As estimated for 2016, the group generates over EUR 80 million in revenues.

Stephen Bender, managing director of BidCorp Foodservice (Europe) Ltd. and future co-managing director said: “Our investment in Pier 7 Foods in Germany is a further achievement in our growth strategy in Europe. We are looking forward to implementation of our roll-out strategy for the German market working closely with Markus and his team.“

Markus Erhart, managing director and founder as well as future co-shareholder said: "I have been in touch with several business units of BidCorp over an extended period in order to be certain that I have correctly selected my partner, as I intend to proactively manage the transition of succession in my business. BidCorp is the right partner for our group for further growth as Bidcorp is very entrepreneurial and our product portfolios complement each other cross-border. For both sides service to our clients and high quality are paramount.“

5


INTRODUCTION TO FOODSERVICE

Sources: Tradedimensions GV-Markt 2016; Bulwiengesa Market Study; Genios Food Service; Euromonitor International; Daedal Research: Global

Foodservice Market; GIRA Foodservice: Foodservice EUROPE 2018

Foodservice worldwide

Foodservice, defined as the industry serving food outside the home (HoReCa), as well as the service providers – food wholesalers, logistics providers and the like – that cater to the HoReCa industry, is a thriving sector everywhere in the world.

Currently Asia Pacific is the world’s leading foodservice market, accounting for 43% of the market share, driven by rising demand in India and China.

Europe is the third largest foodservice market with France, Germany, Italy, the UK, and Spain as major foodservice submarkets.

Borders between the different market segments are becoming increasingly blurred. Traditional HoReCa suppliers are increasingly challenged by Cash & Carry players and Logistics & Transport segments.

According to a study of 10 European countries, people eat 18% of all meals outside the home. This tendency translates into growing opportunities for producers, distributors, restaurant chains, catering establishments, and other foodservice companies.

Some trends, such as concern for healthy eating, and interest in eating local, fresh, and sustainable foods, can be tracked throughout the world, however, some trends are more country-specific reflecting the eating habits in the region.

The farm-to-table tendency is observed among all sector players, from supermarkets to Michelin-starred restaurants. Interest in international cuisine is another noteworthy trend affecting all cultures.

Foodservice industry trends

The digital economy is transforming the industry with e-commerce platforms, delivery and automation technologies, and customer-tracking systems.

Rising wages mean increased labor costs, which is a concern in the industry, though a more prosperous workforce also creates more consumers.

High competition as well as economies of scale are very noticeable in the industry, which is one of the reasons for consolidation in the industry.

More than ever, foodservice companies and final customers are expecting wholesalers to provide them with quality products.

< USD 50 bn > USD 1 tn

Foodservice markets by sales volume (1)

The total foodservice sales value worldwide is

estimated at USD 3.4 trillion growing at 4.6% p.a. in

2016 and 2017 (est. CAGR 2015-20 is 3.4%), and the

industry is estimated to employ 10.8 million people

(many on a part-time basis).

6


FOODSERVICE IN NUMBERS

Source: Comprises M&A deals in the foodservice industry based on Mergermarket classification; Daedal Research: Global Foodservice Market; PR

Newswire Association: Global Foodservice Market 2017-2021; Tradedimensions GV-Markt 2016; Gain Report: Foodservice 2017

€24 billion ANNUAL TURNOVER OF THE CONTRACT

CATERING INDUSTRY IN EUROPE

Asia Pacific

North

America Europe

36.4% increase in deal value from

2016 to 2017

Largest foodservice markets

Dairy & Frozen

Desserts 20%

Meat, Fish & Seafood

35% Beverages

6%

Bakery 6%

Fruits & Vegetables

12%

Others 20%

Foodservice industry worldwide by end customers, 2016

Foodservice companies worldwide: total sales by offered products, 2016

Market

trends

MARKET DRIVER Innovation & customization of food menus

MARKET CHALLENGE Fluctuations in commodity prices & rise in labor costs

188 Number of worldwide deals

made in the foodservice industry in 2017

Sample of leading players

Company Restaurants

55%

Hospitals 18%

Retirement Homes

12%

New Markets (Event

Catering) 10%

Schools, Universities

5%

7


FOODSERVICE MERGERS & ACQUSITIONS

Source: Clairfield Analysis of Mergermarket Data; “DV” = Deal Value; Note: not all deals include public deal values

Strategic 69% Financial

31%

M&A deals in foodservice worldwide (2013 – 2017)

16.2 21.8

25.6 26.1

35.6

172

195 198 210

188

0

50

100

150

200

250

0

5

10

15

20

25

30

35

40

2013 2014 2015 2016 2017

Deal Value Deal Volume

EUR bn #

Note: Comprises M&A deals in the foodservice industry based on Mergermarket classification; Not all companies disclose a deal value; Up to 31.12.2017

Deals by acquiror type Deals value and volume

Selected recent M&A deals in foodservice & valuation multiples

Announ. Date

Target Target

country Acquiror

Acquiror country

DV (EUR m)

Revenue Multiple

EBITDA Multiple

EBITDA Margin

09/2017 Mila S.A. PL Eurocash S.A. PL 82 0.2x 74.3x 0.3%

07/2017 Stonyfield Farm, Inc. US Groupe Lactalis S.A. FR 768 2.4x 20.0x 5.4%

03/2017 KFC (16 establishments) NL Collins Foods Limited AU 62 1.3x 8.5x 15.7%

02/2017 Zabka Polska sp. z o.o. PL CVC Capital Partners Limited UK 1 296 2.6x 43.2x 6.0%

01/2017 Booker Group PLC UK Tesco PLC UK 4,175 0.7x 20.0x 3.6%

12/2016 SuperDrob S.A. (33% stake) PL Charoen Pokphand Foods Public Company Ltd

TH 50 1.1x N.A. N.A.

11/2016 Autogrill Nederland BV NL Gr8 Investments BV NL 23 0.7x 8.1x 8.5%

10/2016 Dakri Dystrybucja sp. z.o.o. PL Bake & Co., N.V. BE 6 0.4x 5.0x 7.4%

08/2016 Graal S.A. (55.77% stake) PL Abris Capital Partners and private investor

PL 51 0.3x 5.8x 5.7%

07/2016 Organic Farma Zdrowia S.A. (63% stake)

PL EcorNaturaSi S.p.A IT 9 1.4x 17.5x 4.2%

07/2016 Internatural AB SE Midsona AB SE 86 1.3x 12.5x N.A.

04/2016 DE.AL. s.r.l. IT Marr S.p.A IT 36 0.6x N.A. N.A.

02/2016 Brake Bros Limited UK Sysco Corporation US 2,786 0.7x 19.0x 3.4%

12/2015 Hortigil Hortifruti S.A. BR Partners Group Holding AG CH 69 0.5x N.A. N.A.

12/2015 Vermaat Groep BV NL Partners Group Holding AG CH 390 3.5x N.A. N.A.

11/2015 Findus Sverige AB SE Nomad Foods Limited BVI 701 1.2x 10.6x 11.0%

03/2015 Ad van Geloven BV NL TowerBrook Capital Partners LP

US 264 1.4x N.A. N.A.

02/2015 Drogheria & Alimentari Spa IT McCormick & Company Inc. US 85 1.4x 10.6x 13.3%

Mean 567 1.2x 19.6x 7.0%

Median 82 1.2x 12.5x 5.9%

8

CLAIRFIELD INTERNATIONAL

SECTOR EXPERTISE

CONSUMER & RETAIL

9


RELEVANT SECTOR EXPERIENCE

Selected foodservice transactions

REPEAT CLIENT

Australia

was sold to

Norway/ Finland

acquired the seafood division of

Germany

was sold to

South Africa/Germany

acquired a majority stake of

South Africa/Italy

acquired a majority stake of

Italy

acquired

Qua.Ser

UK

was sold to

Australia

was sold to

France

sold

CENTRE FRANCE DEVELOPPEMENT

Norway

was sold to

Selected industry contacts

10


CLAIRFIELD INTERNATIONAL SECTOR EXPERTISE

Clairfield International provides advisory services, mainly in cross-border mergers and acquisitions, to multinational corporations, family-owned enterprises, and private equity firms. Our focus is the middle-market segment, designing and executing transactions of up to EUR 500 million in enterprise value

High ratio of senior partners and directors to junior employees ensures that senior team members take an active role in all transactions

Worldwide presence guarantees our clients direct access to the local knowledge of its regional office and industry expertise from professionals around the globe

Clairfield International’s consumer goods sector team focuses on advisory to midcap clients, whether advising on a growth strategy or on selling a business

WORLDWIDE

PRESENCE

35+ OFFICES

20+ COUNTRIES

WHERE CLAIRFIELD

IS PRESENT

400+ PROFESSIONALS

Brisbane

Hong Kong

Santiago de Chile Curitiba

Sao Paulo

Mexico City

New York

Washington

Miami

Amsterdam Antwerp Atlanta Barcelona Birmingham Brussels Budapest Copenhagen Dusseldorf Frankfurt Geneva Helsinki Istanbul London

Lyon Madrid

Marseille Milan

Moscow Nantes

Oslo Paris

Stockholm Stuttgart

Tel Aviv Vienna

Warsaw

Montreal

Atlanta

194 CONSUMER & RETAIL

TRANSACTIONS

CLOSED SINCE 2006

EUR 9 bn CUMULATIVE VALUE OF

CONSUMER & RETAIL

TRANSACTIONS

CLOSED SINCE 2006

Clairfield’s Consumer goods team is chaired by Albert Schander of Clairfield Germany and Gary Ecob of Clairfield United Kingdom. The team offers particular expertise in the following areas:

Agribusiness

Branded products

Clothing retail

e-commerce

Foodservice

Seafood

Buy-side 35%

Sell-side 65%

Financial buyers

44%

Strategic buyers

56%

Consumer & retail expertise

Our locations

SECTOR SPOTLIGHT: FOODSERVICES

11

KEY FACTS ABOUT FOODSERVICE IN

BENELUX

12


FOODSERVICE INDUSTRY IN BELGIUM

Source: Euromonitor (2017); Business Insider (2017); Market Monitor; National Bank of Belgium (2017)

Current market situation

Food chains remain underrepresented, but are doing better than independent restaurants. International players remain absent due to various factors such as high taxes and Belgian loyalty to traditional gastronomy.

Some new market-shaping trends include the growing importance of gourmet fast food players including purveyors of gourmet burgers and premium pizzas as well as the increasing demand towards subscription fresh food boxes such as Hello Fresh or Simply you, the newly introduced equivalent by Carrefour.

Margins are under pressure in the food service industry due to the high energy costs (affecting mainly the smaller businesses) but more importantly because labor costs are more than 20% higher than in neighboring countries France, Germany, and the Netherlands.

Top market players in Belgium

Company

Total Belgium

sales 2016 (EUR m)

EBITDA 2016

(EUR m)

Belgium employees

883.2 4.6 399

367.0 N.A. +1,000

319.3 5.6 403.3

165.8 4.4 161.3

157.5 6.4 206

-1.7% -1.9%

-0.8% -1.2% -1.8%

-1.6% -3.5%

-4.9%

-5.9% -6.2%

-4.6%

-2.5%

0.0% 0.5%

1.0% 0.5% 0.8%

2.3% 2.8%

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015

0.4% 0.2%

0.0%

-0.1%

0.0%

0.6% 0.4%

-0.4% -0.8%

-0.5% -0.5%

0.2%

1.4%

0.7%

0.5% 0.4%

0.1%

1.0% 1.2%

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015

Consumption evolution in the Belgian

HoReCa sector

Evolution number of visits

Evolution spending per visit

In 2016, Belgian total sales value of the foodservice/out of home industry was estimated at EUR 16.5 billion. The foodservice industry is composed of the Horeca industry as well as the wholesalers supplying to the HoReCa industry.

The FSR channel (full service restaurant), the largest foodservice channel, accounts for 36% of the foodservice industry. During the 2014-2016 period it grew at a CAGR of 3.4% and is forecast to grow at a CAGR of 3.8% during the 2016-2021 period.

The QSR channel (Quick Service Restaurants) accounts for 8% of total revenue generated and has grown at a CAGR of 3.0% between 2014 and 2016 and is forecast to grow at a CAGR of 3.2% during 2016-2021.

While the FSR market is highly fragmented, about a third of the QSR market generates 56.4% of the channel revenue (with Panos, subsidiary of La Lorraine Bakery Group, being the largest QSR operator). Although just 31% of QSR outlets are owned by chain operators, they generate 56% of the channel revenue. Panos is the largest QSR operator by a substantial margin, representing 18% of the channel’s value.

13


FOODSERVICE INDUSTRY IN THE NETHERLANDS

Top market players in the Netherlands


Company Total Dutch sales 2016 (EUR bn) Dutch employees

Dutch wholesale market share (%)

2.8 6,571 24%

2.5 876 13%

0.7 1,469 11%

0.8 2,818 8%

ca. 0.6 5,000 6%

5.0 4.9 4.9 5.1 5.3

3.2 3.2 3.2 3.2 3.3

2.6 2.5 2.4 2.5 2.5

2.3 2.3 2.3 2.3 2.4

1.8 1.8 1.8 1.8 1.8 1.6 1.6 1.7 1.7 1.8 1.2 1.2 1.2 1.2 1.3

17.9 17.5 17.5 17.9 18.4

0.0

5.0

10.0

15.0

20.0

2012 2013 2014 2015 2016

Recreation

Hotels

Cafés

QuickrestaurantsOn-the-go

Catering

Revenue development of foodservice sectors (EUR bn)

Future strategic market developments

According to a research report by ABN AMRO, the Dutch food service industry is forecasted to have a 2.3% growth in 2017 and a 2% growth in 2018.

The growing need for a quick meal is not only met by the traditional QSR but also by lunchrooms and by new food concepts that “go organic” and/or “go healthy”.

With the digital age, traditional supermarkets are being disrupted by a surge of food delivery services (ready meals or meals to prepare). As a response, food retailers are starting to implement foodservice / “horeca light” concepts at their own supermarkets, e.g. the 2nd largest Dutch supermarket chain Jumbo taking over La Place restaurants and introducing this concept at their own supermarkets and many competitors introducing comparable concepts.

Source: Foodservice markt, Foodstep (2016); Foodservice in beweging, ING (2016); Financial reports (2016), CapitalIQ, Foodservice Beleidsmonitor (2017); Parent companies: Lekkerland AG

(Lekkerland), Bidcorp (Deli-XL), Sonah (Hanos), Metro (Makro). Sligro also offers food retail through EMTE and Makro provides also non-food; Foodservice Insights, ABN AMRO (2017)

The Dutch foodservice / out of home market generated sales of EUR 18.3 billion (based on food, beverage, and tobacco spending) in 2016, showing positive 2.7% year-on-year growth.

All top five players (see table below) are active as foodservice wholesalers. The wholesale market is highly concentrated and characterized by consolidation and scale up, where approximately 80% of the market belongs to the top ten players. In contrast, the market with companies serving the out-of-home end consumer like hotels, restaurant and caterers is still highly dispersed.

Hotels, restaurants and quick service restaurants (QSRs) are showing steady volume growth due to increasing consumer confidence and increasing number of tourists. On-the-go service concepts are also gaining popularity due to larger mobility and less fixed working hours.

The catering workforce is decreasing and increasingly becoming characterized by flexible labor. In contrast, catering revenues are increasing due to much higher pricing (50% increase during 2006-2016 compared to inflation of only 17%).

14


MAJOR FOODSERVICE TRANSACTIONS IN BENELUX

Target Target

Description Target

Country Acquiror

Target Revenues (EUR m)

Transaction Rationale

Lunch Garden SNC Owner and operator of a chain of self-service restaurants

BE Gate Invest 52.0 The deal enables the opening new locations and stimulating further growth.

Icelandic Gadus NV Processor and distributor seafood

BE

Seamark Seafood, Fishproducts Iceland, and Akur (PE)

83.0

The transaction will enable investors to further promote sales and marketing of high quality seafood in Belgium and Central Europe as well as provide investors an opportunity to grow internationally and promote the image and value of Icelandic seafood in Central Europe.

ISPC International SA

Company engaged in the wholesale of food products to the catering and hospitality industry

BE Sligro Food Group 84.9

The acquisition will be a catalyst in the growth of Sligro’s current market segments and to expand its branch network in other Belgian cities.

Frigilunch NV

Providor of frozen ready meals for food companies, cafes, hotels, restaurants, companies, and institutions

BE

Marfo Food Group BV Van Lanschot Participaties

20.3

The acquisition will strengthen Marfo Food’s position in the frozen meal food market and increase market segments for Marfo Food. Post acquisition, Frigilunch will become the part of Marfo Food Group and both the companies will operate independently under their own names.

Adriaens NV Belgium-based company engaged in the slaughtering and processing of beef

BE Veviba N.A. The transaction will enable Veviba and Adriaens to strengthen their business in the Belgian slaughterhouse market.

JAVA Foodservice

Belgium-based foodservice company: institutional and company catering market segments and several hotel chains

BE Sligro Food Group 129.0

The acquisition will enable Sligro Food to become the leading player in the Belgian foodservice market. The acquisition will immediately contribute to Sligro Food’s earnings per share.

KFC (16 establishments)

Operator of a fast food chain

NL Collins Foods Limited

47.2 (‘15)

The Netherlands is a highly attractive market which is underpenetrated for KFC restaurants and the acquisition portfolio is a high quality business which is growing and generates strong margins.

Autogrill Nederland BV

Manager of restaurants, hotels and coffee stores

NL Gr8 Investments BV 33.0 The acquisition enables a new operational concept of medium-priced hotel offering with the emphasis on automated efficiency

Monterroio BV Food distribution company NL Sociedade Francisco Manuel Dos Santos

N.A. N.A.

Just-Eat Benelux BV Provider of food ordering and delivery services

NL Takeaway.com BV N.A.

Takeaway.com strengthens its position in the Benelux, in line with the strategy to expand its leadership positions in the European market.

La Place BV Operator of restaurants chain

NL Jumbo Supermarkten BV

150.0 The deal enables the bidder to gain more market presence in the food service industry as a hospitality specialist.

Source: Mergermarket

For information on transaction values, please contact the local Clairfield expert (page 43).

M&A transactions 2016-2017


15


BRAZIL

16


KEY FACTS ABOUT FOODSERVICE IN BRAZIL

Source: Nielsen

Distributor 40%

Wholesale with

Delivery 35%

Cash and Carry 21%

Others 4%

Company Sales (EUR m) Employees

Industry

10,254 111,868

4,778 45,000

2,247 19,000

1,575 7,200

Cash and Carry

412 3,122

406 2,031

340 1,713

293 1,770

Food Distribution

323 1,200

300 N.A.

253 N.A.

228 1,000

344 379

410 436

466

136 131 132 117 122

2012 2013 2014 2015 2016

BRL EUR


Top players in Brazil Segments

Consumer market (billion)

The Brazilian foodservice market in 2016, including restaurants, was EUR 122 billion.

The percentage of food eaten out of the home is 34%. This number will increase in the coming years for the following reasons:

− Growth of 2x per capita income by 2036;

− Increasing participation of women in the labor market;

− Population growth: Brazil should reach a population of 227 million people by 2036;

− Market development, both on the supply side and on the demand side;

− Strong trend towards healthy food (very fragmented market full of small companies).

17


Target Target

Description Target

Country Acquiror



Popeyes Louisiana Kitchen

Restaurant chain USA 3G Capital/ Restaurant Brands International Inc.

229

The Popeyes acquisition adds a successful and highly regarded brand with high consumer loyalty to RBI, one of the largest companies in the world.

Vigor Alimentos SA Food producer BR Grupo Lala, S.A.B. de C.V.

667 Lala, a Mexican company, acquired Vigor to expand its business in Brazil.

Hortigil Hortifruti S.A. (60% stake)

Retail company of fruit and vegetables

BR Partners Group Holding AG

394

Partners Group intends to maintain the expansion of Hortifruti’s network. Pursuant to the transaction, former members Hortifruti will remain close to the company. Partners Group now owns 100% stake in Hortifruti.

OK Superatacado (Serrano Distribuidora SA)

Wholesale chain BR Arlon Group LLC N.A.

Arlon has completed a 35% acquisition of the remaining shares of OK Superatacado, Arlon intends to maintain the investment for about 7 years.

Russi Supermercados

Supermarket/wholesale Chain

BR Grupo Ricoy 263

Russi Supermercados was one of the leading supermarket chain in the country side of the state of São Paulo. In the past 5 years, Russi was facing financial issues, Grupo Ricoy só the opportunity to grow the business and acquired Russi Supermercados.

International Meal Company (IMC)

Restaurant holding BR Multiple Investors 395 The Advent Private Equity firm, sold the 73% remaining shares of the IMC for multiple investors.

Taco Bell Brazil Restaurant chain BR Daniel de Jesus N.A.

With the purchase of 20% of the company for USD 50 million, the investment will serve to expand the company. Taco Bell Brazil already has 17 units (all of them situated at São Paulo), the goal is to reach 1000 stores in Brazil in the next ten years.

MAJOR FOODSERVICE TRANSACTIONS IN BRAZIL





18


DACH

(Germany, Austria, Switzerland)

19


KEY FACTS ABOUT FOODSERVICE IN DACH

Source: Tradedimensions GV-Markt 2016; Bulwiengesa Market Study; GAIN Report; METRO International Supplement; Genios Food Service

Top players in Germany

Company Sales 2016 (EUR m) Market share in DE (%)

2,083 11.4%

2,966 14.3%

5,447 28.7%

3,661 16.8%

586 0.6%

Foodservice market share

by category 2016, %

Wholesale delivery

57%

Cash & carry 19%

Logistics provider

5%

Direct sales from

producers 10%

Retailers 9%

Turnover share of the Foodservice industry

by production 2016, %

Meat products

20%

Various food products

16%

Drinks 15%

Dairy products

13%

Bakery & farinaceous

products 12%

Animal feed 7%

Processed food &

vegetables 6%

Oils & fats 5%

Grain mill products &

starch products

4%

Fish products 2%


The stabilization of the euro exchange rate eases the strain on wholesale & production sectors in Switzerland. Pressure on domestic prices is lessening, and opportunities abroad are improving.

In Austria and Germany, demand remains intact and stable, whereas Switzerland felt the effects of falling sales as well as weak domestic demand, and the inability to pass on rising costs and lost export sales.

Particularly in Germany and Austria, the trend is towards consolidation of wholesale & foodservice distribution businesses with 41 transactions in Germany from 2000 to 2016 and an average EBITDA multiple of 9x-10x.

The foodservice sector is showing resilience to the economic downturn with an increase of 6.3% in 2016. There was a rise of 7.4% in food wholesaling, 4.7% in food manufacturing and 14.6% in non-residential catering. Food retailing changed little at 0.4%.

In the subsegments, the quick service and motorway catering make up about four-fifths of the sales of top 100 food service companies.

The foodservice industry is one of DACHs strongest industrial sectors in terms of turnover and number of employees.

Note: Comprises sales generated only from the segments related to foodservice

20


MAJOR FOODSERVICE TRANSACTIONS IN DACH


Target Target

Description Target

Country Acquiror



Huegli Holding AG

Engaged in the development, production and marketing of a wide range of foods and food products.

CH Bell Food Group AG 327.8

The takeover of Huegli Holding AG leads to numerous synergies and cost-cutting potential, the expansion of the product range, but also to a slight increases in the profit margin

Zanini SA Switzerland-based winery CH TransGourmet Holding AG

35.0

With the merger, the entrepreneurs want to offer their employees a long-term perspective and make optimal use of the synergies of both companies

Metro AG Wholesale, food, logistics, IT and real estate business

DE METRO AG (shareholders)

37,496.0

The board of METRO AG is preparing the creation of two independent and sector focused companies through a demerger of the group.

Team Beverage AG (70% Stake)

Distribution, purchasing, marketing and service platform for the beverage industry

DE Transgourmet Deutschland GmbH & Co. OHG

1,300.0

The entry of Transgourmet into the beverage market should meet increasing customer need for more performance and fewer contact partners.

Pier 7 Foods Import GmbH

Distributor of food to the gastro-hotel industry

DE Bid Corporation Limited

48.3 The acquisition of Pier 7 Foods accomplishes Bidcorp’s objective of market entry into Germany.

Guzman Gastronomia, S.L. (90% Stake)

Company engaged in distributing and delivering food to gastro-hotel industry

ES Bid Corporation Limited

100.0

The acquisition is in line with Bidcorp’s strategy to expand its footprint into geographies which offer solid growth in the food services market. It will enable Bidcorp to position itself as one of the leading foodservice companies in south-west Europe.

International Food Cooperation Germany GmbH

Wholesaler of food, beverages, and tobacco

DE BIP Holland B.V. 25.7

With the takeover of IFC, BIP Germany is securing one of the German market leaders for licensed confectionery and strengthening its own German business.

Bresc B.V.

Company specialized in the development, production and sales of chilled garlic and herb products

NL Huegli Holding AG 12.0 This acquisition is in line with expanding Huegli’s culinary competence in the fast-growing foodservice segment.

RUNGIS Express AG Wholesaler of fresh foods DE Ceconomy AG 130

The acquisition will enable Ceconomy to realize their wholesale business expansion plans in Germany and to further expand their food service distribution concept.




21


FRANCE

22


KEY FACTS ABOUT FOODSERVICE IN FRANCE

In 2016, the French foodservice sector showed resilience to the economic downturn with a 0.7% increase, after 3 consecutive years of decrease between 2013 and 2015.

In 2016, The French foodservice market reached an estimated value of EUR 54.6 billion.

In France, around 4,000 companies serve the HoReCa companies and are divided into 5 main segments (Cash & Carry, Logistics & Transport, Wholesales & Delivery…).

Some companies active in the foodservice distribution are focused on a specific segment (for example STEF is specialized in Logistics & Transport) but other companies are active in several segments.

Main segments of the foodservice distribution market

“Full line” wholesalers

Traditional wholesalers

Specialized wholesalers

Cash & Carry

Logistics & Transport

Foodservice distribution market

Key players in the foodservice market in France

Source: «Le marché de la restauration hors domicile sort du tunnel avec le retour de la croissance après 3 années consécutives de recul» (NPD, 2017); «Les fournisseurs de la restauration hors foyer»

(Xerfi, 2015); «Les grands défis des fournisseurs de la restauration à l'horizon 2020» (Xerfi, 2017); «Etude de la distribution sur le marché Food service France» (Gira)

Company Segment Revenue (EUR bn)

Foodservice 22

Foodservice 17

Beverages 9

Cooperative 5

Cereal processing 5

Foodservice 4.8

Foodservice 4.4

Wholesale & delivery 3.6

Foodservice 3

Logistics & Transport 2.8


23


KEY FACTS ABOUT FOODSERVICE IN FRANCE TOP 20 FOOD & BEVERAGE DISTRIBUTION NETWORKS FOR FOODSERVICE INDUSTRY

Source: Top 20 des réseaux de distribution alimentaires et boissons en RHD en 2014 (Tokster, 2015)

Rank Company Revenue

(€m) Staff Shareholders

Warehouses & Logistic platforms

Customers Products

1 Metro Cash & Carry France

4,306 (2016)

9,500 Metro Group 93 warehouses & 20 platforms 1,000,000 Fresh and frozen products, grocery

2 Groupe Pomona

3,600 (2016)

8,600 Family Dewavrin 140 sites 150,000 Fresh and frozen products, grocery

3 France Frais 1,495 (2014)

3,540 Les Maîtres laitiers du Cotentin

103 companies 70,000 Dairy products

4 C10 1,330 (2014)

3,500 Members of the network

240 warehouses & 1 platform 90,000 Beverage

5 Transgourmet France

1,170 (2015)

3,900 Swiss Coop 35 warehouses & 20 platforms 65,000 Grocery

6 Martin Brower France

1,110 (2014)

774 Reyes Holding 7 distribution centres & 1 platform

N.A. Logistics services

7 Promocash 1,070 (2014)

N.A. Carrefour 138 stores & 11 drives 320,000 Fresh and frozen products, grocery

8 Creno 970

(2014) 2,500 Cooperative

Companies: 39 (fruits & vegetables) and 17 (seafood)

N.A. Fruits, vegetables, seafood (fresh)

9 Distriboissons 990

(2015) N.A. Cooperative

73 companies, 135 warehouses & 1 platform

60,000 Beverage

10 France Boissons

940 (2014)

2,682 Heineken 14 platforms & 78 warehouses 56,500 Beverage

11 Brake France 732

(2016) 2,000 Sysco 45 platforms 45,000

Grocery, meat, seafood, vegetables

12 Davigel 637

(2016) 2,922 Sysco 13 regional centres 70,000 Frozen products

13 Pro à Pro 645

(2014) 1,700 Metro Group 20 warehouses 30,000

Grocery, meat, seafood, fresh products

14 Relais d’Or Miko

578 (2014)

670 Pomona 17 members, 56 sites 84,300 Frozen products

15 Back Europ France

557 (2014)

1,600 Cooperative 43 companies 36,000 Grocery & Snacking

16 Hexagro 500

(2014) 3,000 Cooperative 26 members & 35 warehouses N.A.

Fresh & frozen vegetables and seafood

17 Gedal 300

(2014) 400 N.A. 29 members & 37 warehouses 25,000 Grocery

17 Réseau Krill 300

(2014) 1,000 Groupe Even

8 companies, 18 platforms & 30 sites

35,000 Fresh & frozen products, meat

19 DGF 220

(2016) 1,000

21 Centrale Partners

25 distributors in France & 83 worldwide

15,000 Bakery products

20 Carigel 250

(2014) N.A. Sysco 14 members N.A. Frozen products

24


MAJOR FOODSERVICE TRANSACTIONS IN FRANCE

Source: Mergermarket; CFNews

Target Target

Description Target

Country Acquiror



Financière Turenne Lafayette (canned food division)

Brands: Conserverie du Languedoc, Julien Mack, Soulié Restauration, William Saurin Garbit, etc.

FR Cofigeo; Arterris 324 Financière Turenne Lafayette filed for insolvency in June 2017.

St Hubert

Supplier of chilled, frozen and ambient products to retail and food service customers

FR Beijing Sanyuan Foods Co.; Fosun International

126 Sanyuan and Fosun will benefit from St Hubert's healthy foods and technological innovations.

Labeyrie Traiteur SUrgeles

Manufacturer of frozen foods

FR Ajinomoto Foods Europe

50

The transaction will enable Ajinomoto to expand and enhance its business operations for frozen foods in France and accelerate its growth.

Stonyfield Farm Producer of organic yogurts US Groupe Lactalis 351 The consideration represents 20 times the EBITDA of Stonyfield in 2016.

René Laurent Development, production and marketing of flavors and natural extracts

FR Frutarom 12

René Laurent's activity is synergetic with Frutarom's activity in the field of flavors and in line with Frutarom's rapid growth strategy.

Ready Pac Foods Producer of salads, fruits, vegetables and snacks

US Bonduelle 760 This acquisition will help fuel the growth of both companies in the fresh food space.




25


ITALY

26


KEY FACTS ABOUT FOODSERVICE IN ITALY

Sources: Aida BvD; Market trend report issued by Formind S.r.l.

The foodservice market in Italy has recorded a further growth in 2016, driven by the increasing habit of the Italians to go out for lunch and dinner.

Every year, the Italians spend more than EUR 200 billion on food out of which about 35% is spent in bars and restaurants.

Over the last 10 years, the Italian food & beverage on offer more than doubled and new bars and fast-food places are located in transport hubs such as railway stations and airports.

The foodservice market reflects this trend and has more than 3,890 independent food distributors with a market value of about EUR 8.6 billion.

The five main providers are adapting their product range to new market requirements:

− highly customizable products for both collective and retail food service;

− complete selection of products: fresh and frozen food, long-life products, beverages;

− provision of catering services and solutions for several circumstances;

− well organized distribution network;

− choice of branded and non-branded products.

Top 5 players

Company Sales 2016 (EUR m) Employees

1,481.0 845.0

922.8 3,208.0

286.8 230.0

182.2 230

138.5 141.0

Out-of-home market 2016, %


Food; 75% Beverage; 25%

27


Target Target

Description Target

Country Acquiror



D.I.MAR. S.r.l.

Italy-based company engaged in the distribution of fish and frozen fish products

IT

Edmond de Rothschild Investment Partners, S.A.S.

80.0 The PE fund acquired DIMAR in a management buyout auction to support the business expansion of the company.

Fruttital Firenze S.p.A.

Italy-based company engaged in wholesale distribution of fresh fruits and vegetables

IT Orsero S.p.A. 40.9

The transaction is in line with the Orsero group's strategy to strengthen the distribution of fresh fruit and vegetables in Southern Europe and expand the activities of the acquired company.

Tramezzino Itì S.r.l. Italy-based company engaged in providing food delivery services

IT

Gruppo Argenta S.p.A., Kohlberg Kravis Roberts & Co. L.P., Motion Equity Partners

4.4

This acquisition will allow Gruppo Argenta to develop the Foodies brand by opening 50 new branches under the brand name Foodies.

DE.AL. S.r.l.

Italy-based company engaged in distribution of food products to the foodservice sector

IT Marr S.p.A. 56.6 The acquisition will strengthen Marr's presence in the mid-Adriatic area and will enhance the service offerings.

MAJOR FOODSERVICE TRANSACTIONS IN ITALY

Source: Mergermarket; FactSet




28


THE NORDICS

29


KEY FACTS ABOUT FOODSERVICE IN THE NORDICS

Source: Euromonitor

Turnover share of the consumer foodservice industry by country in 2016, %

Denmark; 20%

Sweden; 42%

Norway; 21%

Finland; 17%

2016 distribution

Consumer foodservice market share by category in 2016, EUR m

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Scandinavian consumer foodservice market

DK SE NO FI

Top 5 players

Company Sales 2016 (EUR m) Employees

603 N.A.

560 847

421 N.A.

373 717

270 N.A.


The foodservice sector has recovered from the economic downturn and is growing in all Nordic countries. It is expected to continue towards 2021 with CAGR of 3% in total. This reflects a general trend where consumers are spending more time out of their homes and less in their own kitchens.

As the catering business/foodservice supports the consumer food business and is thereby linked directly to the development of consumer food service, companies in this sector have also experienced growth. At the same time food retail is selling more ready-to-go food than ever.

The market is attractive right now as investors are seeking business areas with resilience in case we are approaching a slower period again soon.

30


Target Target

Description Target

Country Acquiror



Grambogård A/S Manufacturer of high end meat and dairy products

DK FoodService Danmark A/S

7 Access to prime meat products and dairy.

SR Food A/S Manufacturer of meat and pastry products

DK Dragsbæk A/S 8 Access to pastry products and more.

Clafra AB Andys Fruit – supplier of fresh fruit

SE Menigo Foodservice AB

25 Increase in fresh food.

Eurocash Food AB 7 large B2B food stores SE Axfood AB/Norgesgruppen

95 Access to bigger marketshare in Sweden.

Skagen Food Distributor of fish products DK Dansk Supermarked 133 Access to 19,000 online customers weekly.

Internatural AB Kung Markatta and Helios SE Midsona AB 64 Increase share organic food.

Matse Holding AB mat.se – online delivery of weekly food boxes

SE Axfood AB/Norgesgruppen

30 Increased access to online B2C market.

Grøn Fokus Ecology products DK FoodService Danmark A/S

8 Expand into organics.

Rynkeby Foods A/S Largest manufacturer of juice in Denmark

DK Eckes-Granini Group GmbH

95 Arla (Dairy) was looking to divest their juice company.

Västkustfilé Ab Producer and distributor fish products

SE Insula AS 30 Consolidation/increased presence in Sweden.

Dk-Food's A/S Leading manufacturer and distributor of pepperoni

DK Maj Invest Equity 20 Leading manufactorer of pepperoni high growth.

O. Kavli A/S Drinking products DK Orkla Foods Danmark A/S

24 Expand into drinking products.

Ch Interfrugt A/S Organic fruit DK FoodService Danmark A/S

13 Parent company of Grøn Fokus.

Kaivonliha Kaunismaa Oy

Beef processing and wholesale

FI Atria Oyj 43 Complement Atria’s beef product range.

Lagerberg i Norjeby Ab

Producer of chicken products

SE Atria Oyj 30 Enter poultry business in Sweden.

Paimion Teurastamo Oy

Beef slaughterhouse FI HKScan Oyj 14 Strengthen HKScan’s position in the beef market.

Frebaco Kvarn AB Breakfast cereals and other grain products

SE Oy Karl Fazer Ab 29 Increase oats production capacity.

Västkustfilé AB Fish products SE Insula AS 25 Strengthen position in Sweden.

MAJOR FOODSERVICE TRANSACTIONS IN THE NORDICS

Source: Mergermarket; Capital IQ




31


POLAND

32


KEY FACTS ABOUT FOODSERVICE IN POLAND

Source: Statistics Poland; Polish Investment and Trade Agency

Turnover share of the foodservice industry by product, %

Meat products

28%

Various food products

17% Dairy products 15%

Drinks 11%

Fruits & vegetables

8%

Animal feed 7%

Bakery & farinaceous

products 6%

Fish products 4%

Grain mill products &

starch products

3%

Oils & fats 2%

HoReCa industry suppliers type, %

77%

25%

12% 6% 3% 2% 1%

Wholesale (withdelivery)

Direct fromproducer

Makro Cash&Carry Wholesale (withoutdelivery)

Selgros Cash&Carry Food market Eurocash

Company Sales 2016

(EUR m) Employees

765 3,200

574 1,100

N.A. 10,900

110 500

5,072 9,340

Top players in Poland


In recent years the foodservice sector in Poland has been systematically growing. In 2016, this market grew by 7%.

Polish society is becoming more wealthy, which drives foodservice and related industries.

The foodservice industry belongs to the most important sectors of Polish economy.

33


Target Target

Description Target

Country Acquiror



Mila S.A. Supermarket chain. PL Eurocash S.A. 344 The transaction is in line with the Eurocash's strategy to build nationwide supermarket chain.

Pini Polska sp. z o.o. Meat processing and packaging plant

PL Smithfield Foods, Inc.

1,104 The acquisition of Pini Polska has increased Smithfields‘s production and export capabilities of quality meat.

Zabka Polska sp. z o.o.

Convenience stores chain owner and operator

PL CVC Capital Partners Limited

1,468 The acquisition will help Żabka to capitalize on growing market opportunities and enhance the existing store network.

SuperDrob S.A. (33% stake)

Poultry producer PL Charoen Pokphand Foods Public Company Ltd

230 With this transaction CPF intends to invest in the Polish market and gain access to its distribution channels.

Graal S.A. (55.77% stake)

Listed on the WSE frozen and chilled food producer.

PL Abris Capital Partners and private investor

223 This transaction allow Abris Capital Patners and private investor to delist the company from the Warsaw Stock Exchange.

Dakri Dystrybucja sp. z.o.o.

Bakery products production and distribution

PL Bake & Co., N.V. 15 Through this transaction Bake & Co N.V. has enlarged its portfolio.

Organic Farma Zdrowia S.A. (63% stake)

Organic food retail chain PL EcorNaturaSi S.p.A 21 The acquisition will help Organic Farma Zdrowia in development and will accelerate the expansion of the Polish market.

Nordfish-Foodmark sp. z o.o.

Fish products producer PL Lisner sp. z o.o. 39 The transaction will strengthen Lisner’s position on the Polish market.

QFG sp. z o.o. (60% stake)

Producer of poultry, beef and pork based products

PL Highlander Partners, L.P.

27 The transaction will allow QFG further development and production enhancement.

MAJOR FOODSERVICE TRANSACTIONS IN POLAND





34


SPAIN

35


KEY FACTS ABOUT FOODSERVICE IN SPAIN

Source: Ministerio de Agricultura, Alimentación y Medio Ambiente

Top 5 players in purchasing groups

Company Sales (EUR m)

13,795.0

400.0

385.2

282.7

189.0

63% 54%

23% 21%

4%

9% 9%

3% 5%

4% 5%

2008 2013

Other retailers Self Service

Cash & Carry Manufacturer

Multicategory Distributor Specialist Distributor


Clients are requesting more complex services to logistics operators and increasing the number and frequency of orders while reducing their size, and concentrating their Iberian market contracts into larger operators who offer full coverage in the Iberian market.

Food producers and distributors insist on higher quality standards through the whole distribution chain requesting more stringent quality controls and traceability from logistic operators.

Domestic food producers are increasing exports in order to compensate for a decrease in the domestic market, representing an opportunity for logistics service providers.

Food exports are growing in the range of 5%-10%.

The largest multinationals have domestic coverage but generally are focused on large retailers with limited reach and do not offer complex services.

Food retailers are demanding advanced logistics methods (“just in time”), forcing food manufacturers and intermediaries to choose between investing in installations or outsourcing logistics services to specialized logistics service providers.

Some segments in the food market such as wholesalers are starting to see the potential benefits of outsourcing their logistics operations.

Independent Hospitality: Most of the expenditure in HoReCa supplies is concentrated in Distributors / Wholesalers.

Organized Hospitality: Except the drinks, where purchases are made directly through the manufacturer, the rest of products for the majority of these groups are obtained through a logistics operator.

Suppliers market share (% of the total)

36


MAJOR FOODSERVICE TRANSACTIONS IN SPAIN


Target Target

Description Target

Country Acquiror



Amer Gourmet SL Import and distribution of alcoholic beverages

ES Destilerias Mg SL 4.7

This majority stake transaction expands Destilerias Mg SL's global presence and enhances the portfolio of brands and distribution channels of the company in Spain.

Cermol 79 SA Supermarket chain ES Grupo Uvesco SL (IFA Española)

59.9

The acquisition strengthens the operations of BM Supermercados, the supermarket chain of Grupo Uvesco SL. The transaction is a result of the insolvency situation and auction process for "Gigante Supermercados" (Cermol 79).

Consorcio de Jabugo SA (Agrolimen SA)

Producer and marketer of Iberian pork products

ES

Grupo Osborne SA (Shanghai Fosun Industrial Investment Co. Ltd.)

25.0 The acquisition allows Grupo Osborne to increase turnover by more than 30%.

Guzmán Gastronomía SL

Processor and distributor of fresh and frozen fruits and vegetables

ES Bid Corp. Ltd. 100.0

The acquisition (90%) is in line with Bidcorp’s strategy to expand its footprint into geographies which offer solid growth in the food services market. It will enable Bidcorp to position itself as one of the leading foodservice companies in south-west Europe.

Hermanos Fernandez Lopez SA

Distributor of fruits and vegetables

ES Orsero SpA 170.0

Orsero SpA acquired the remaining 50% stake not yet owned. The acquisition enables Orsero SpA to enhance its portfolio of existing business.

Eroski (Rockspring Property Investment Managers LLP)

Supermarket chain ES Grupo Lar SA 5,490.0

Grupo Lar SA acquired 22 Eroski Supermarket from Rockspring Property Investment Managers LLP for EUR110.7 million. The acquisition enhances the business portfolio of Grupo Lar SA.

Turolinnova SL Wholesaler of frozen fish and other products

ES Productos Congelados Selectos 3000 SL

2.1 N.A.




37


THE UK

38


KEY FACTS ABOUT FOODSERVICE IN THE UK

Source: IGD Research 2017; Mintel

Company Sales 2016 (GBP m) Employees Market share in the

UK (%)*

3,295.0 12,418 18%

5,327.9 13,533 16%

2,360.0 8,990 15%

432.1 >1,000 6%

288.1 >1,000 4%

Top players in the UK

*Market share relates to foodservice element of total sales.

Delivered foodservice – % growth by category, 2016

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Am

bie

nt

Foo

d

Ch

illed

& F

resh

Fo

od

Fro

zen

Fo

od

Soft

Dri

nks

Alc

oh

olic

B

ever

ages

Tob

acco

No

n-f

oo

d

Co

nsu

mab

les

No

n-f

oo

d D

ura

ble

s

UK Foodservice market: frequency of eating out

16%

18%

12%

26% 55%

29%

23%

4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1989 2016

I don't eat out Less than once a month

Once a month Once a fortnight

Once a week More than once a week

Increased eating out amongst UK consumers continues to drive sales in the delivered foodservice market


The delivered UK foodservice sector continues to remain resilient in the face of rising wages and food costs, growing by 1.9% in 2016 to reach a market value of GBP 10.1 bn.

This growth has been driven by an increasing consumer demand for eating out which has led to a strong performing and expanding restaurant, pub and hospitality scene in the UK.

Chilled and fresh food was the biggest growing single category, demonstrating the growing importance to UK foodservice customers of having fresh natural products at the core of their offering.

The delivered foodservice sector is anticipated to grow at a CAGR of 2.5% to reach £11 bn. by 2021 driven by continued growth in the UK eating out market.

This growth may be stunted by challenges created by the UK’s exit from the European Union, with the rising costs of food imports and possible labour shortages impacting upon the UK foodservice sector as a whole.

39


Target Target

Description Target

Country Acquiror



Booker Group PLC Company engaged in the wholesale of food.

UK Tesco PLC 5,957

Tesco PLC to gain market share in the grocery market with the acquisition of leading food wholesaler, Booker.

Calder Foods (Manufacturing) Ltd

Company manufactures and distributes sandwich fillings, marinated and cooked meats, salads, chutneys, and sauces.

UK Flagship Europe Limited

25

The acquisition of Calder Foods will both compliment and expand the food-to-go product offering by Flagship Europe.

The Foodfellas Limited (60% stake)

Company supplies food products to the foodservice market.

UK CP Foods (UK) Limited

59

The UK arm of CP Foods acquired a 60% stake in Foodfellas to expand into the foodservice market in the UK.

Knight Meats Limited

Catering butcher that supplies fresh meat, poultry, and deli products to the professional kitchen.

UK Bidcorp N.A.

The acquisition of Knight Meats has increased Bidcorp‘s capabilities in the delivery of quality meat.

Caterfood Holdings

Company supplies frozen, chilled and ambient foods to pubs, restaurants and caterers, predominately in the South West of England.

UK Bidcorp 14

Bidcorp‘s acquisition of Caterfood has strengthened the companies operations and services in the South-west of England.

Brake Bros Limited

Company supplies frozen, chilled, and ambient foods to pubs, restaurants, hotels, hospitals, schools, care homes, and leisure facilities

UK Sysco Corporation 3,684

Sysco‘s acquisition of Brakes Group has increased their access into European markets.

Notes: - Conversion to euros for the transaction value is based upon the relevant exchange rate at the date of the transaction as taken from Capital IQ. - Conversion to euros for the Revenue figure is based upon the spot rate as of 17/11/2017 (1:1.1206)

MAJOR FOODSERVICE TRANSACTIONS IN THE UK





40


USA

41


KEY FACTS ABOUT FOODSERVICE IN THE US

Source: Forbes, IBISWorld, USDA

Company Revenue (USD m)

Number of Employees

57,007 66,500

. 29,178 17,000

. 23,829 25,000

17,081 14,000

9,454 9,700

Top food distribution players in the United States

40%

42%

44%

46%

48%

50%

52%

54%

56%

2000 2002 2004 2006 2008 2010 2012 2014

Food at Home Food Away from Home


Restaurant industry sales in the United States are expected to reach USD 800 billion in 2017.

Total employment in the restaurant industry is estimated at 10 million across full service establishments, quick service restaurants, and other providers such as cafeterias and caterers.

Consumer spending, a key driver for establishments serving meals outside the home, has steadily increased since the recession.

− Per capita disposable income is projected to grow at a 2.7% annual rate for the next five years

− The USDA forecasts that money consumers spend eating outside the home will increase faster than the amount of money spent eating at home in future years

Other significant trends include consumers increased preference for convenient / quick yet healthy dining options, and the rise of the fast casual space

Foodservice outlets continue to be the most significant source of revenue for food wholesalers, as restaurants, hotels and other establishments rely on distribution networks to procure food products.

Grocery Wholesale Market Segments

Food Service Outlets

56%

Supermarkets and

Grocery 26%

Other Wholesalers

16%

Other 3%

% of Total Food Expenditures at Home vs. Away from Home

42


Target Target

Description Target

Country Acquiror

Target Revenues (USD m)


Centerplate, Inc. Provides event venue catering and hospitality services

US Sodexo S.A. 998 The acquisition strengthens Sodexo’s position in the North American market.

Ruby Tuesday, Inc.

Engages in the ownership, development, operation, and franchise of casual dining restaurants.

US NRD Capital Management, LLC

913 The acquisition leverages NRD’s experience in achieving profitable growth for restaurant concepts.

Ninety Nine Restaurant, Inc.

Owns and operates a chain of restaurants.

US J. Alexander's LLC 304 The acquisition will result in a diversified player in the casual dining segment.

Rubicon Resources, LLC

Imports and distributes seafood and seafood products.

US High Liner Foods Incorporated

234 The acquisition will diversify High Liner’s product portfolio and provide a platform for growth.

Panera Bread Company

Owns, operates, and franchises retail bakery-cafes.

US JAB Holdings B.V. 2,795 The acquisition is in line with JAB Holdings’ strategy of investing in consumer brands.

Guckenheimer Services, LLC

Operates as an onsite corporate restaurant management and catering company.

US ISS A/S 327 The acquisition will enhance ISS’s service offering in the North American market and improve its catering services.

Cheddar's, Inc. Owns and operates restaurants.

US Darden Restaurants, Inc.

N.A. The addition of Cheddar’s is complementary to Darden Restaurants’ portfolio of brands.

Checkers Drive-In Restaurants, Inc.

Owns and operates a drive thru restaurant chain.

US Oak Hill Capital Partners

N.A. The acquisition is in line with Oak Hill Capital Partner’s investment strategy.

Popeyes Louisiana Kitchen, Inc.

Develops, operates, and franchises quick-service restaurants.

US Restaurant Brands International Inc.

269 The acquisition strengthens Restaurant Brands’ US and international prospects for growth.

All American Foods, Inc.

Provides food products to foodservice establishments and SKUs.

US US Foods Holding Corp.

60 US Foods will build on All American Foods operations in New England.

ConAgra Foods, Inc., JM Swank Business

Comprises business of sourcing and distribution of food products.

US Platinum Equity, LLC N.A. The divestiture will allow ConAgra Foods to become a more focused company.

Kahala Brands, Ltd. Engages in franchising quick-service restaurants.

US MTY Food Group Inc.

130 The acquisition solidifies MTY’s presence in the United States and creates a diverse combined portfolio of brands.

Krispy Kreme Doughnuts, Inc.

Operates as a branded retailer and wholesaler of doughnuts, coffee and other complementary beverages, and treats and packaged sweets.

US JAB Holdings B.V. 523 The acquisition is in line with JAB Holdings’ strategy of investing in consumer brands.

CulinArt Group, Inc. Provides onsite corporate, educational, and leisure dining facilities.

US Compass Group USA, Inc.

264 The acquisition enhances Compass Group’s service offering.

MAJOR FOODSERVICE TRANSACTIONS IN THE US




43


CONTACT US

Clairfield consumer & retail team

Contact details – Sector heads

CLAIRFIELD INTERNATIONAL SA

11 Rue du Conseil-Général

1205 Geneva

Switzerland

Phone: +41 22 518 0242

[email protected]

www.clairfield.com

Dr. Albert Schander [email protected]

Gary Ecob [email protected]

BJÖRN ÅKERLUND

Sweden

[email protected]

JOSTEIN S. PETTERSEN

Norway

[email protected]

RUUD VAN HOEK

The Netherlands

[email protected]

ANTONIO SCARABOSIO

Italy

[email protected]

OLIVER NEMES

Hungary

[email protected]

ANTOINE ROUÉ-LECUYER

France

[email protected]

TOMMI WALTHER

Finland

[email protected]

MARTIN LEMMER

Germany

[email protected]

GABRIEL LOEST

Brazil

[email protected]

DAMIEN COPPIETERS

Belgium

[email protected]

BEREND YNTEMA

Austria

[email protected]

ALBERT SCHANDER

Germany

[email protected]

MARK STEINHART

Australia

[email protected]

LUIS CORIA

Mexico

[email protected]

GARY ECOB

United Kingdom

[email protected]

IGNACIO J. KLEIMAN

United States

[email protected]

Sector heads

KYLE SCHICKNER

United States

[email protected]

ERIK ZALENSKI

United States

[email protected]

ALLAN BJØRN

Denmark

[email protected]

PETER CHUDY

Poland

[email protected]

BRIAN O’HARE

Spain

[email protected]

44


ABOUT CLAIRFIELD

Clairfield is a leading independent M&A advisor for midmarket deals

DISCLAIMER: No part of this report may be reproduced without the written permission of Clairfield International or one of its partner firms. The

information herein has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. While

we endeavour to update on a reasonable basis the information presented in this report, there may be regulatory, compliance or other reasons

that prevent us from doing so. Much of the information contained in this report is subject to variation due to changes in market conditions,

legislation or regulatory matters and Clairfield International does not undertake to notify any recipient of the report of changes to the information

contained herein. This report is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction.

Additional supporting information is available upon request. Please contact: Press office, Clairfield International, Tel: +41 22 518 0242 ,

[email protected]

Copyright © 2018 Clairfield International

Clairfield was founded in 2004 by four European M&A boutiques and has since expanded to encompass all major economies worldwide. While Clairfield International continues to grow with the addition of knowledgeable partners in key markets, we are determined to preserve our strengths – entrepreneurial spirit, local expertise, industry knowhow, and close bonds among all team members spanning the globe.

TOP 10 TOP 20 80% >1100 IN EUROPEAN MIDMARKET

RANKINGS BY THOMSON

REUTERS

IN WORLDWIDE

MIDMARKET RANKINGS

OF OUR MANDATES ARE

INTERNATIONAL

ANNUAL ASSIGNMENTS ON

BEHALF OF CORPORATES,

INVESTORS, AND FAMILY

BUSINESSES

WE PROVIDE

Expert corporate finance and

capital market advisory services for creative solutions that build long-term value

Sector expertise, local knowledge, global coverage

Understanding of the complexities of the middle market

WE SERVE

Multinational corporations

Family businesses

Financial investors

foodservice spotlight 2018 - clairfield.com · introduction to foodservice ... systems. rising...

Documents