2010

The following is a summary of the major acquisitions that occurred in the food and beverage industry in 2010.

Legend

• Date: The date the buyer acquired the target or brand, as reported in public sources.
• Price: The price paid for the company being acquired.
• Buyer: The company that acquired the target or brand.
• Target: The company or brand that was acquired. For example, if Ford Motor Company acquired Audi, Ford Motor Company is the buyer, Volkswagen is the seller, and the target is Audi.
• Location: The location of the target (i.e., the company or brand that was acquired).
• Seller: The company that owned the target company or brand that was acquired. For example, if Volkswagen sold Audi, Volkswagen is the seller, and the target is Audi.
• Purpose: The primary reason the buyer acquired the target or brand.
• Details: Specific details regarding the transaction, such as the form of consideration (e.g., cash, stock, notes, etc.) and/or any contingent payments (e.g., earnouts, etc.).

Food Manufacturing – General

Kraft Foods Inc. Acquired Cadbury Plc (Confectionery)

Date:	February 2, 2010
Price:	£13.3 Billion ($21.8 Billion)
Buyer:	Kraft Foods Inc. – A Chicago-based food manufacturing and processing conglomerate that split from Kraft Foods Inc. in 2012.
Target:	Cadbury Plc – A British multinational confectionery company owned by Mondelez International since 2010. It is the second-largest confectionery brand worldwide after Mars.
Location:	Birmingham, UK
Purpose:	John Heily, President and CEO of Continental Mills, said, “The purchase of Sun Country Foods and the Kretschmer Wheat Germ brand aligns with our core product lines. We are interested in investing in our branded business, and this is a great health-oriented food that has been a mainstay in the health category of products for many years.”
Details:	Combining Kraft and Cadbury will generate annual revenues of approximately $50 billion and sales in approximately 160 countries.

Ralcorp Holdings Acquired American Italian Pasta Co. (Pasta Manufacturer)

Date:	July 27, 2010
Price:	$1.2 Billion
Buyer:	Ralcorp Holdings – Produces Post-branded cereals, various store brand and value brand foods sold under individual labels of mass merchandise, grocery, and drugstore retailers, and frozen bakery products for restaurants, in-store bakeries, and other food service customers.
Target:	American Italian Pasta Co. – A pasta manufacturing company based in Kansas City, Missouri, with plants in South Carolina, Missouri, Arizona, and Italy.
Location:	Missouri, USA
Purpose:	Kevin J. Hunt, Co-Chief Executive Officer and President of Ralcorp, said, “We are pleased to welcome AIPC to the Ralcorp family. We believe this combination further strengthens our position as a diversified provider of private label and branded food products.”
Details:	After completing the transaction, AIPC became a wholly-owned subsidiary of Ralcorp and will report to Kevin J. Hunt.

TreeHouse Foods Acquired S.T. Specialty Foods (Packaged Meals)

Date:	September 14, 2010
Price:	$100 Million
Buyer:	TreeHouse Foods – A multinational food processing company headquartered in Oak Brook, Illinois, that produces private-label packaged foods.
Target:	S.T. Specialty Foods – Manufactures and distributes packaged meal products.
Location:	Wisconsin, USA
Purpose:	Sam K. Reed, Chairman and Chief Executive Officer, said, “S.T. has had consistent growth since its inception and will not only add to our broad product portfolio for the retail grocery channel, but it will also give us the opportunity to expand our offerings into the lunch and dinner meal occasions.”
Details:	The acquisition was financed through borrowings under TreeHouse’s existing $600 million credit facility. The transaction was neutral to the company’s earnings over the balance of 2010 but is predicted to add from $0.11 to $0.13 per share to earnings on an annualized basis.

Grupo Bimbo Bakeries Acquired Sara Lee’s Bakeries (Bread Products)

Date:	November 12, 2010
Price:	$959 Million
Buyer:	Grupo Bimbo – A Mexican multinational company operating in over 33 countries, including the Americas, Europe, Africa, and Asia.
Target:	Sara Lee Corporation’s Bakeries – An American consumer-goods company based in Downers Grove, Illinois.
Location:	Illinois, USA
Purpose:	“This transaction will allow the combined Grupo Bimbo and Sara Lee Bakery business to focus on the fresh bakery category and winning in the marketplace,” said CJ Fraleigh, CEO of Sara Lee North America.
Details:	As part of the transaction, all of Sara Lee’s approximately 13,000 North American fresh bakery employees will transfer to Grup Bimbo. The sale also includes 41 plants in the U.S.

Food Manufacturing – Snacks

Diamond Foods Acquired Kettle Foods (Potato Chips Manufacturer)

Date:	February 25, 2010
Price:	$615 Million
Buyer:	Diamond Foods – A U.S. packaged food company headquartered in San Francisco that markets snack foods and nuts.
Target:	Kettle Foods – An American manufacturer of potato chips based in Salem, Oregon, United States, with a European and Middle East headquarters in Norwich, United Kingdom.
Location:	Oregon, USA
Purpose:	“Kettle Foods’ passion for making great tasting, natural potato chips has attracted a loyal consumer following and shaped a truly premium brand that has our deep respect,” said Michael J. Mendes, Chairman, President, and CEO of Diamond Foods.
Details:	The transaction was structured as a purchase of all outstanding shares of a parent holding company of the U.S. and U.K. Kettle operating entities.

Non-Alcoholic Beverages

Cott Corp Acquired Cliffstar Corp (Juice Maker)

Date:	July 8, 2010
Price:	$500 Million
Buyer:	Cott Corp – A leading North American and European water, coffee, coffee extract, tea, and filtration solutions service company.
Target:	Cliffstar Corp – Maker of juices, sports drinks, teas, and private-label beverages for grocery, mass merchandisers, and food service companies.
Location:	New York, USA
Purpose:	“Cliffstar is an ideal partner for Cott as we strengthen our position in private-label beverages,” said Jerry Fowden, CEO of Cott. He added, “A combination with Cliffstar expands Cott’s product portfolio and manufacturing capabilities, enhances our customer offering and growth prospects, and improves our strategic platform for the future. Combined with Cliffstar, Cott will be a more diversified company with long-term advantages for our shareowners and retailer partners.”
Details:	In addition to $500 million due at signing, Cliffstar will receive $14 million of deferred consideration over three years.

Restaurants

Apollo Global Management Acquired CKE Restaurants (Fast Food Chain)

Date:	April 26, 2010
Price:	$1 Billion
Buyer:	Apollo Global Management – An American global private-equity firm. It provides investment management and invests in credit, private equity, and real assets.
Target:	CKE Restaurants – An American fast food corporation and is the parent organization for the Carl’s Jr., Hardee’s, Green Burrito, and Red Burrito brands.
Location:	Arizona, USA
Details:	Under the terms of the agreement, CKE stockholders will receive $12.55 in cash for each share of CKE common stock they hold, representing a 41% premium to the company’s closing share price on Feb. 25.

Oak Hill Capital Partners Acquired Dave & Buster’s (Restaurant and Entertainment Business)

Date:	May 3, 2010
Price:	$570 Million
Buyer:	Oak Hill Capital Partners – A private equity firm headquartered in New York City, with more than $19 billion of committed capital from entrepreneurs, endowments, foundations, corporations, pension funds, and global financial institutions. Robert Bass is the lead investor.
Target:	Dave & Buster’s – An American entertainment business and restaurant based in Dallas.
Location:	Texas, USA
Purpose:	Tyler Wolfram, a Partner at Oak Hill Capital, said, “Dave & Buster’s is a category-defining concept that offers its customers a unique interactive entertainment and dining experience in a lively setting. We believe there is a tremendous opportunity to grow the Dave & Buster store base given its differentiated format, the strength of its brand, and the meaningful number of untapped markets across North America and beyond.”
Details:	Jefferies & Company, Inc. acted as the sole financial advisor to Dave & Buster’s. J.P. Morgan Securities Inc. served as the exclusive financial advisor to Oak Hill Capital in the transaction.

Centerbridge Partners Acquired PF Chang’s (Casual Dining Restaurant Chain)

Date:	May 1, 2012
Price:	$1.1 Billion
Buyer:	Centerbridge Partners LP – A leading private investment firm.
Target:	P. F. Chang’s China Bistro – Founded in 1993 by Philip Chiang and Paul Fleming, Chang’s is a U.S.-based casual dining restaurant chain that offers Asian fusion cuisine.
Location:	Arizona, USA
Purpose:	Rick Federico, Chairman, and CEO of P.F. Chang’s, said, “We look forward to working with Centerbridge to further strengthen the company and our growing P.F. Chang’s, Pei Wei, True Food Kitchen, and Global Brands businesses.”
Details:	Centerbridge will acquire all of P.F. Chang’s outstanding shares of common stock for $51.50 per share in cash, representing a premium of roughly 30% over the average closing share of P.F. Chang’s common stock for 30 days ending April 30, 2012.