Industry Update: Food & Beverage M&A Update – February, 2019

February, 2019

For 2018, total U.S. F&B announced transactions of 440, slightly less than 2017 levels of 453 deals. Both 2018 and 2017 exceeded 2016 levels of 453 deal.

Select recent notable publicly announced M&A transactions:

– Virgo makes an investment in 80 Acres Farms (represented by Peakstone) for an undisclosed amount.

– Fuji Oil Holdings acquires Bloomer Chocolate Company for $750 million.

– CJ Foods acquires The Schwan Food Company for $1,800 million.

– The Andersons Grain Group acquires Lansing Trade Group for $494 million.

– Hickory Farms and Modjule acquires Gourmet Gift Concepts (represented by Peakstone) for an undisclosed amount.

Industry Update: Consumer and Retail M&A Update – February, 2019

February, 2019

For 2018, strategic buyers accounted for 69% of Consumer and Retail M&A transactions. During 2017, strategic buyers accounted for 65% of the transactions.

Select recent notable publicly announced M&A transactions:

– Tivity Health acquired Nutrisystem for $1.4 billion.

– Platinum Equity acquired Jostens for $1.3 billion.

– ARG Holdings acquired Sonic for $2.3 billion.

– Vintage Investment Partners acquired Rent-A-Center for $1.3 billion.

– Marriott Vacations Worldwide Corp. acquired ILG Inc. for about $5.8 billion.

– Tenneco acquired Federal-Mogul for $5.4 billion.

– Peakstone advises Erehwon Mountain Outfitter on sale of company to Camping World Holdings, Inc. (NYSE:CWH) for an undisclosed amount.

– Arby’s Restaurant Group Inc. acquired Buffalo Wild Wings Inc. for approximately $2.9 billion.

– American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) acquired Metaldyne Performance Group Inc. for approximately $3.42 billion.

– BPS Direct, L.L.C. acquired Cabela’s Incorporated (NYSE:CAB) for approximately $8.67 billion.

– Circle K Stores Inc. acquired CST Brands, Inc. (NYSE:CST) for approximately $6.09 billion.

– Rye Parent Corp. acquired Panera Bread Company (NasdaqGS:PNRA) for approximately $7.66 billion.

John Eck joins Peakstone as Managing Director

February, 2019. John Eck has joined Peakstone as a Managing Director. John will focus on deal origination and execution in a number of areas including real estate, financial services, senior living, manufacturing and other industries. John also has expertise in distressed financial assets and bankruptcy transactions.

John has over 30 years of experience in financial services including commercial and investment banking. Prior to joining Peakstone, John was leading Guaranteed Rate’s efforts to develop its multifamily lending capabilities.

John began his career with LaSalle National Bank in Chicago, serving in many different roles within the institution, as well as for its parent, ABN Amro Bank, N.V. After a 20-year career with LaSalle, John worked at several community banks, including roles as President and Chief Lending Officer of First Chicago Bank, a private equity-backed bank.

John is a graduate of University of Illinois, with a Bachelor’s degree in Economics, and has an MBA from University of Chicago.

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. The team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com.

Peakstone Closed Deal Announcement: Third-Party Logistics and E-Commerce Fulfillment Company

February, 2019. Peakstone is pleased to announce that iD Commerce + Logistics (IDC) has been acquired by Symbia Logistics, a Colorado-based warehousing, logistics and e-commerce fulfillment company.

Founded in 1998, IDC is a Chicago-based leader in third-party logistics (3PL) and e-commerce fulfillment services. Dan Arriola, who has served as CEO of IDC, will join the Symbia executive team. Arriola said, “Delivering world-class 3PL services nationwide can be a daunting task for any company on its own. That is why we’re thrilled to join forces with Symbia Logistics in a move that will help us better serve the U.S. market more effectively and efficiently. We believe that our expertise in the industries we serve will enhance Symbia’s already impressive portfolio so the company will continue to be looked upon as a leading 3PL provider.”

IDC will continue its Chicago operations under the iD Commerce + Logistics name with its current workforce. Its local leadership will remain in place to guide the organization’s operations, and they will also support Symbia in its efforts to expand the company’s e-commerce capabilities across the nation.

Press Release: Click Here

Terms of the transaction were not disclosed.

For additional information please contact:

Eric Dziedzic, Managing Director, 312-346-7314, eric@peakstone.com

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. The team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com.

Peakstone Closed Deal Announcement: Vertical Farming Company

February, 2019. Peakstone served as exclusive financial advisor to 80 Acres Farms in connection with the Company’s recent investment from Virgo Investment Group, a San Francisco Bay Area based private equity firm that invests in companies transforming and disrupting high-potential industries. Terms of the financing were not disclosed.

Founded in 2015, 80 Acres Farms provides customers with a wide variety of locally grown, just-picked leafy greens, microgreens, and vine crops, including the world’s only tomatoes and cucumbers grown completely indoors using just LED lighting. The Company has developed its own artificial intelligence-powered growing system, sophisticated data monitoring, and automation technologies to deliver high quality and nutritious products at an affordable price. By locating its indoor farms close to customers, 80 Acres Farms is able to eliminate the costs, time and environmental impact of cross-country transportation, providing customers with a fresher, longer lasting product while drastically reducing food waste. 80 Acres distributes to major national grocers, local retailers, restaurants, and food service companies from its facilities in Ohio, Arkansas, North Carolina and Alabama.

Press Release: Click Here.

Terms of the transaction were not disclosed.

For additional information please contact:

Eric Dziedzic, Managing Director, 312-346-7314, eric@peakstone.com

Cathy Jaros, Managing Director, 312-262-7735, cjaros@peakstone.com

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. The team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com.

Peakstone Publishes Industry Reports

November, 2018. Peakstone has published eleven updated industry reports, which can be accessed through the links below.  We deliver sector knowledge, experience, and relationships to every client.  We welcome a chance to open dialogue with companies in these sectors to exchange information and viewpoints.

Automotive

Consumer & Retail

E-Commerce

Food & Beverage

Industrials & Manufacturing

IT Services

Packaging

Pet

Restaurant

Technology & Software

Transportation & Logistics

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. Our team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com.

Industry Update: Warehousing, Transportation and Logistics M&A Update – November, 2018

November, 2018

For 2018 YTD, strategic buyers have accounted for 79% of the Warehousing, Transportation and Logistics M&A transactions with financial buyers making up the difference; during 2017, strategic buyers accounted for approximately 92% of the transactions.

Select recent notable publicly announced M&A transactions:

– Odyssey acquires American Fast Freight for $465 million.

– ATSG acquires Omni Air International for $845 million.

– Blackstone acquires Gramercy Property Trust for $7.5 billion.

– Prologis acquired DCT Industrial Trust for $8.4 billion.

– Kirby Corporation acquired Higman Marine, Inc. for $419 million.

– Penske Automotive Group, Inc. (NYSE:PAG); MBK USA Commercial Vehicles Inc. acquired Penske Truck Leasing Co., L.P. for approximately $670 million.

– EQT Partners AB acquired Global Gateway South Terminal for approximately $820 million.

– Scorpio Tankers Inc. (NYSE:STNG) acquired Navig8 Product Tankers Inc. for approximately $1.18 billion.

– Knight Transportation, Inc. (NYSE:KNX) acquired Swift Transportation Company (NYSE:SWFT) for approximately $2.97 billion.

– Grupo México Transportes S.A. de C.V. acquired Florida East Coast Holdings Corp. for approximately $2.1 billion.

Industry Update: Technology & Software M&A Update – November, 2018

November, 2018

In YTD 2018, Technology and Software transactions value has been higher than 2017 and traded at lower multiples compared to 2017.

Select recent notable publicly announced M&A transactions:

– Microsoft Corporation (Nasdaq: MSFT) acquired GitHub for approximately $7.50 billion.

– Adobe Systems (Nasdaq: ADBE) acquired Magento for approximately $1.68 billion.

– SalesForce (NYSE: CRM) acquired MuleSoft for approximately $6.81 billion.

– General Dynamics (NYSE: GD) acquired CSRA Inc. (NYSE: CSRA) for approximately $9.95 billion.

Industry Update: Industrials & Manufacturing M&A Update – November, 2018

November, 2018

Through YTD 2018, strategic buyers accounted for 89% of the Industrials and Manufacturing M&A transactions with financial buyers making up the difference; during 2017, strategic buyers accounted for approximately 90% of the transactions.

Select recent notable publicly announced M&A transactions:

– DWABTEC (NYSE: WAB) acquired a division of General Electric (NYSE: GE) for approximately $11.1 billion.

– Aviall, Inc. – a Boeing Company – acquired KLX Inc. (NasdaqGS: KLXI) for approximately $4.4 billion.

– Tenneco Inc. (NYSE: TEN) acquired Federal Mogul (NYSE: FDML) for approximately $5.4 billion.

– Knauf Group acquired USG (NYSE: USG) for approximately $6.48 billion.

Industry Update: E-Commerce M&A Update – November, 2018

November, 2018

Through YTD 2018, strategic buyers accounted for 84% of the E-Commerce M&A transactions with financial buyers making up the difference; during 2017, strategic buyers accounted for approximately 92% of the transactions.

Select recent notable publicly announced M&A transactions:

– Direct Digital acquired Healthy Directions for approximately $71 million.

– Albertsons Companies acquired Plated for approximately $300 million.

– QVC Group (NasdaqGS:QVCA) acquired HSN, Inc. (NasdaqGS:HSNI) for approximately $1.83 billion.

– Bain Capital Private Equity, LP; Bow Street, LLC acquired Blue Nile, Inc. for approximately $500 million.