Health & Nutrition Industry 2010 Census - Trends in Mergers & Acquisitions
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Health & Nutrition Industry 2010 Census - Trends in Mergers & Acquisitions

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Reflective of stronger-than-expected 2010 year-end economic growth, M&A activity continued its substantial rebound for the year....

Reflective of stronger-than-expected 2010 year-end economic growth, M&A activity continued its substantial rebound for the year.

With improving equity markets and the return of the large strategics, transaction activity in the health & nutrition sector, led by the natural/organic food & beverage segment, outpaced the peak of 2006.

I will be pleased to respond to questions arising from the Census and may be contacted at 773-693-4800 or mgalante@jhchapman.com

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    Health & Nutrition Industry 2010 Census - Trends in Mergers & Acquisitions Health & Nutrition Industry 2010 Census - Trends in Mergers & Acquisitions Presentation Transcript

    • Health & Nutrition Industry 2010 Census Trends in Mergers and Acquisitions Marco V. Galante, Principal Marco V. Galante, Principal J.H. Chapman Group, L.L.C. J.H. Chapman Group, L.L.C. 773-693-4800 773-693-4800 mgalante@jhchapman.com mgalante@jhchapman.com ©2011 J.H. Chapman Group, L.L.C.This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Contents Objective of Census . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Sub-Segment Analysis and Commentary .................................... 10 Healthy, natural, organic, functional foods and beverages . . . . . . . . . . . . . . . . . . 12 Health and nutrition ingredients suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Contract manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Branded nutritional supplements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 OTC and natural personal care products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Licensing and joint ventures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Retailers and distributors of these products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Conventional ingredients suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Recent Financings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 J.H. Chapman Group, L.L.C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 J.H. Chapman Group, L.L.C. makes no representation as to the accuracy and completeness of the information provided. The information in this presentation is obtained from various public sources. In the listings of Acquirers and Targets, the columns are blank if amounts are unavailable. Please do not reproduce it for third parties, but notify us of others who would like to receive it and we will contact them directly. ©2011 J.H. Chapman Group, L.L.C. 2This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Objective of Census Provide for market participants a Census of M&A activity and trends in the sub-segment of their industry, within the $5 million to $100 million transaction value range. Identify, where applicable, future trends that are likely to have an influence on transaction activity and valuations. ©2011 J.H. Chapman Group, L.L.C. 3This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Executive SummaryM&A Transactions on strategic transactions supporting acquirers’ core directions not just for growth, but also to increaseWithin the total of the food industry, 2010 M&A trans- their product and application offering and to expandactions increased by 20% over the previous year, with their share of the market. Many larger companiesthe “Food Processor” category providing the single (such as Elan Nutrition, Garden of Life, Tree oflargest increase and more dairy activity than usual. Life, Balance Bar, and Airborne) acquired small toTransactions were buoyed by acquisitions such as medium sized companies.Kraft’s winning battle to acquire Cadbury and NBTY’s In the health and nutrition category, there were aacquisition by Carlyle. Overall, corporate strategics total of 87 transactions in 2010 (excludingand financial sponsors continued to be active. licensing, joint ventures, financing, retail andThe Monday, January 10, 2011 announcement of distribution), an increase of 72% over 2009 and aDuPont’s acquisition of Danisco, for a transaction substantial increase of 23% over the peak of 2006.value of $6.3 billion, may be a sign that the multi- The organic/natural food and beverage sector wasbillion M&A activity that has taken place in the the largest contributor, at 48% of the total, followednutritional ingredients market over the last several by health and nutrition ingredients suppliers atmonths is continuing in 2011. 20%.The subsequent information provides a synopsis of There is a significant resurgence of licensing andM&A activity in the health and nutrition sector, joint ventures. Although lower than 2009, this trendfollowed by the statistics for each identified segment. is a strong indicator of continuing alternative strategic options for companies seeking growth. Health and Nutrition Organic and Functional Food & Beverage A distinct rebound in M&A took place in 2010, with most transactions in the natural, organic and This category continues to be the largest M&A functional foods sectors of the industry. Focus was contributor accounting for 48% of the transactions, ©2011 J.H. Chapman Group, L.L.C. 4This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Executive Summary (cont’d) with an increase of 46% above 2009 and the Financing highest number of transactions since 2006. There has been some recent easing of the capital Health and Nutrition Ingredients Suppliers markets, and 2010 financings (47) compare to 2009 (44). More bank credit is becoming As the second largest transaction contributor, this available at attractive interest rates. category was 142% higher than in 2009, and almost on par with the average annual number of Economic and Market Environment in 2010 transactions during 2006 through 2008. The U.S. Economy Branded Nutritional Supplements The year 2010 began and ended well! Despite Transactions in 2010 were 85% higher than in certain volatility, growth in financial markets 2009, and the 2010 total was almost equivalent to exceeded expectations at the beginning of the the average transaction numbers during 2006 year, then the economy relapsed in mid-year, but through 2008. substantially recovered by year-end with stronger- than-expected growth for the year as a whole. Licensing & Joint Ventures While the recovery now in progress is not yet The second half of 2010 saw a significant much cause for cheer, the country enters 2011 resurgence of licensing and joint ventures – a total with an improved economic and financial of 40 transactions. Although 23% lower than the situation despite continuing weak consumer 52 in 2009, this is a continuing strong indicator confidence, the housing trouble spot and that companies seeking growth are pursuing unemployment continuing at a rate of 9.8%. means in addition to traditional M&A. ©2011 J.H. Chapman Group, L.L.C. 5This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Executive Summary (cont’d) A significant factor against this backdrop is that cash reserves and strong balance sheets, better food manufacturers are facing considerable and availability of credit at attractive rates and increasing pressure from rising commodity prices, potentially lower valuations. which are making an impact on margins that are being squeezed as consumers continue to resist Acquirers are focused on strategic transactions price increases. that support their core directions and are likely to produce measurably improved results. North American M&A Activity Acquisitions are expected to build the “bottom M&A and investment activity is on the upswing line” with a good return on the invested capital. as evidenced by the return of the large strategic Examples include: acquirers that, having experienced low organic • Brazil – JBS’ acquisition of Pilgrim’s Pride, growth due to the recessionary environment, are and Mafrig Food’s acquisition of Keystone, pursuing acquisitions aimed at bolstering low the largest privately held meat products growth rates. With rebounding stock prices and company. substantial cash reserves, those strategics • Mexico – Group Bimbo’s acquisition of consummated a large number of transactions. Sara Lee’s bakery operation, and Sigma Kraft’s acquisition of Cadbury and Pepsico’s Alimentos’ purchase of Bar S Foods. purchase of Russian dairy, baby food and juice processor Wimm-Bill-Dan are but two examples. • Europe – Ebro’s sale of its dairy business to Lactalis, and Arla’s merger with German Global M&A Activity Hausa-Milch. Cross-border M&A soared in 2010 and will be a A strong indicator of heightening activity in 2011 major activity again in 2011. Forces fostering the is the interest expressed in PAI Partners’ stake in surge include leaner enterprises with substantial ©2011 J.H. Chapman Group, L.L.C. 6This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Executive Summary (cont’d) Yoplait, evidenced by ongoing bids by Lactalis, Private Equity Groups (PEGs) Nestle, General Mills, Pepsico and others. Current financing terms at low interest rates make Emerging Markets for challenging investing, even in a slow growth environment. Capital is still restrictive, but U.S. companies appear to be the most popular available for transactions where borrowers have market suitors for emerging market bidders demonstrated outstanding fundamentals, including China. In turn, U.S. companies are consistent earnings, a capital structure that does seeking to expand their global presence, not over-leverage the company and a meaningful particularly in India, while Indian midmarket to amount of equity. large size companies are leveraging their financial strength to aggressively access overseas markets. With tempered market growth and minimum equity contributions in excess of 40%, it will Examples of Indian M&A activity in the U.S. become difficult to expect annual investment include: returns above 20% at “reasonable” purchase • Cambrex Corporation’s acquisition of prices. Hence PEGs’ increased holding period the Genera Pharmaceuticals for $20 million past few years because of their inability to exit • Norwest Venture’s investment in Tutor investments. Vista These points notwithstanding, PEGs were very • Zensar Technologies’ $66 million acquisi- active as buyers and sellers alike in 2010 where tion of Akibia the B2B products and services industry sector • Dr. Reddy’s acquisition of accounted for approximately one-third of their GlaxoSmithkline’s U.S. oral penicillin total transactions, with B2C products and services facility and product portfolio providing the largest increase. • Dabur India’s $100 million acquisition of Data for 2010 shows renewed interest in large U.S.-based Namaste Laboratories and its transactions, including those made possible by three subsidiaries. ©2011 J.H. Chapman Group, L.L.C. 7This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Executive Summary (cont’d) increased availability of debt and a build-up of vegetables have increased, albeit at a much lower capital in PE investor funds. Equally, PE investors rate, than that of other commodities. have displayed a larger appetite for the Food and Beverage Industry sector than in prior years. Food Safety Active investors have included KPS Capital The recently legislated food safety measures will Partners, Wind Point Partners, Catterton Partners have an impact on the operation of food and Mistral Equity Partners. processors and distributors, with consequences on Raw Materials and Food Prices the bottom line. Climate change, mixed harvest results, rising Market Trends and the Consumer populations and scarcity of arable land are just a All-Natural Food and Beverage few factors that will continue to impact the costs of raw materials, placing increasing price In addition to consumers’ growing use of products pressures on manufacturers and retailers in the with healthy attributes, they are also seeking a years ahead. wider range of products made with all-natural ingredients. A number of major food and beverage Given recent historically low food prices, price manufacturers have indicated that they will offer increases need to be viewed on a relative basis. an increased number of all-natural products. An However, consumers are paying up to 55% more indicator of this trend is PepsiCo’s recent for some basic items than three years ago. Corn announcement that in 2011, 50% of their Frito- prices have increased 45% in the last three Lay products will be made from all-natural months. Soybeans, coffee, cocoa and others have ingredients. also increased substantially. While there is volatility, the global trend is definitely upward. Other Trends Include: Snacks are becoming more functional, giving On a year-over-year basis, prices of staples such snacks a nutritional edge. as bread, eggs, meat and even fruits and ©2011 J.H. Chapman Group, L.L.C. 8This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Executive Summary (cont’d) Gluten-free is being viewed by the consumer as a consumers attempt to adopt behaviors that healthy alternative. improve their health and avoid diseases. Non-GMO is set to become the hot new label. Given the growing role and importance of The Consumer nutraceuticals, it is likely that an increased number of pharmaceutical companies will become Economic-driven necessities have impacted participants in the functional ingredients sector, consumers’ behavior and forced “adaptability,” driven by the convergence of food and pharma for creating behavior changes that are likely to remain personalized health and nutrition. for the foreseeable future – by and large consumers now think defensively. Their choices In keeping with these developments, Nestle has will be different and driven by “sales,” special passed on some of the bigger food industry trans- offers, promotions and discounts, and not actions to specifically invest in its own nutrition necessarily just by brands or store choice. unit with the singular objective of becoming the leader in health science and nutrition. People are working beyond retirement – either due to financial need or because they have This trend is further reinforced in Europe by the become accustomed to a particular lifestyle. EIB’s (European Investment Bank) financing to Danisco and Novozyme to support research, Current unemployment rates notwithstanding, development and innovation in the area of enzyme continuing and increased penetration of automated applications and other health-focused ingredients. technology will inevitably replace workers – for better or worse. Consequently, 2011 may see certain jobs permanently displaced by technology. The market for healthy/functional foods and dietary supplements will see significant growth as ©2011 J.H. Chapman Group, L.L.C. 9This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis and Commentary Health & Nutrition focuses on those “sub-segments” at the intersection of the giant healthcare, personal care and food industries. Personal Care Natural Personal Care Healthcare Nutritional Supplements Ingredients Suppliers Functional OTC Foods Natural and Food Pharmaceuticals Organic Foods ©2011 J.H. Chapman Group, L.L.C. 10This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis and Commentary Number of Transactions Number of Transactions Segme nt 2006 2007 2008 2009 2010 Healthy, Natural, Organic and Functional Foods and Beverages 25 22 24 29 42 Health and Nutrition Ingredients Suppliers 21 20 17 7 17 Contract Manufacturers 3 2 4 3 7 Branded Nutritional Supplements 14 12 14 7 13 OTC & Natural Personal Care Products 7 6 2 5 8 Total 70 62 61 51 87 Licensing and Joint Ventures (Started in 2008) NA NA 21 52 42 Retailers and Distribution 13 12 6 2 8 Financings 25 19 23 44 47 ©2011 J.H. Chapman Group, L.L.C. 11This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Healthy, Natural, Organic, Functional Foods and BeveragesDairy and Probiotic transactions dominate second half of 2010 ©2011 J.H. Chapman Group, L.L.C. 12This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Healthy, Natural, Organic, Functional Foods and Beverages Dairy and Probiotic transactions dominate second half of 2010 French conglomerate Groupe Danone acquired 51% of ProViva, a Swedish probiotic digestive health brand. ProViva has sales in excess of $50 million. In addition to its equity participation, Danone secured a 10-year global license agreement with the inventors. Eyeing the frozen yogurt market, Danone announced their acquisition of one of the leading frozen yogurt manufacturers, YoCream for approximately $103 million. The Hain Celestial Group entered the yogurt market with their acquisition of 3 Greek Gods, makers of authentic Greek-style products. With sales of approximately $10 million in 2009, 3 Greek Gods’ yogurt is thicker and creamier than standard yogurt and fits squarely into Hain’s portfolio of natural and ethnic brands. Acquired by Dean Foods in 1999, UK-based Rachel’s Yogurt, was sold to French dairy producer Groupe Lactalis in August 2010. Established in 1966, Rachel’s is a premium brand and the second largest organic dairy brand in the UK. In their second divestiture in 6 months, Dean Foods sold Mountain High Yogurt business and Mountain High brands to General Mills. Mountain High will become part of General Mills’ Yoplait USA division and continue to operate under the Mountain High name. Yoplait acquired Canadian-based yogurt-maker, Liberte from Swander Pace Capital, Roynat Capital and the management team. Liberte is Canada’s leading natural and organic yogurt brand. Goat cheese company, Cypress Grove Chevre (based in Arcata, CA) was acquired by Emmi Holding (USA), Inc. a division of Emmi, founded as a dairy owned cooperative in 1907, the largest milk processor in Switzerland. ©2011 J.H. Chapman Group, L.L.C. 13This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Healthy, Natural, Organic, Functional Foods and Beverages Trans. Sales Multiple of EBITDA Multiple of 2010 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) W estern European Sunny Delight juice Dec. Orangina Schweppes drink Dec. Meyer Natural Foods Dakota Beef Dec. High Road Capital Partners Panos Brands 22.0 Dec. Yoplait Liberté 175.0 Dec. New Image Group Somnaceutics Nov. General Mills Mountain High Yoghurt Nov. W eston Foods Ace Bakery 110.0 Nov. Danone YoCream International 103.0 Nov. Umami Sustainable Seafood Baja Aqua Farms Sept. Lactalis Ebros dairy business Aug. Emmi Cypress Grove Chèvre 10.0 Aug. Usana Health Sciences BabyCare Limited 62.7 15.0 4.2 Aug. Cott Corporation Cliffstar 569.0 100.0 5.7 Aug. Lactalis Rachels Yogurt Aug. Lion Capital Picard Surgele 1970.0 1440.0 1.4 Aug. Nestle Vitaflo 42.0 Aug. SAIF Partners Huiyuan Juice Aug. Danone Proviva 50.0 July Gertrude Hawk Chocolates Drews All Natural July T he Hain Celestial Group 3 Greek Gods 10.0 June Heart Health Blue Gold Beverages Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 14This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Healthy, Natural, Organic, Functional Foods and Beverages Trans. 2010 Sales Multiple of EBITDA Multiple of Acquirer Target Value (Contd) (US $M) Sales (US $M) EBITDA (US $M) June Darwin Private Equity Plum Baby 15.0 22.0 0.7 June Danone Unimilk June Hain Celestial Group Churchill Food Products Ltd. May Hearthside Food Solutions Golden Temple (Cereal Division) May Coffee Holding Co. Inc. Organic Products Trading Company May Hain Celestial Group W orld Gourmet May Empire Kosher Kosher Valley April E&A Industries Udis Healthy Foods April Coca Cola Innocent April China Haisheng Juice Holdings Yitian Group April Sweet Tea Leaf Tradewinds Beverage March Mach One W hite Hat Brands March T reeHouse Foods Sturm Foods 660.0 340.0 1.9 March Fresh Harvest Products, Inc. AC La Rocco Pizza 1.5 Feb. Kore Go All In Feb. North Castle Partners Flatout, Inc. Feb. Raisio Glisten 29.7 Feb. Diamond Foods Kettle Foods 615.0 250.0 2.5 Jan. Malt-O-Meal Farina Mills Brand Jan. Shashi Foods MJs Fine Foods Specialty Foods Indias healthcare nutrition Jan. Nestle India 6.3 business Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 15This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Healthy, Natural, Organic, Functional Foods and Beverages Trans. Sales Multiple of EBITDA Multiple of 2009 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Dec. DS Waters Owaters LLC Dec. Attune Foods Uncle Sam and Erewhon brands Dec. Danone Danone Clover Nov. Brynwood Partners VI L.P. Balance Bar Company (from Kraft Foods) Oct. Hain Celestial Group Infinitea Kombucha Oct. Food Collective Helens Kitchen and Organic Bistro Sept. Pulmuone Monterey Gourmet Foods Sept. Full Motion Beverage Performaxx Brands, Inc (Energize Brand) Aug. Full Motion Beverage Mojava Aug. AMI Brands Embodi Aug. Pepsico Amacoco Aug. Foster Farms Dairy Humboldt Creamery July Skinny Nutritional Corp. "Skinny" Trademarks June Fresh Harvest Products Organic Chef June Renaissance Food Group Really Cool Food Company June Beverages Holdings LLC Bossa Nova June Dean Foods Alpro 458.0 366.0 1.3 June Dinewise Home Bistro June Nutrition Solutions (Atkins) Bora Bora April Swander Pace Applegate Farms BAZZA High-Energy Tea trademark from March BYB Brands, Inc. Cooper Tea Company Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 16This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Healthy, Natural, Organic, Functional Foods and Beverages Trans.2009 Sales Multiple of EBITDA Multiple of Acquirer Target Value (Contd) (US $M) Sales (US $M) EBITDA (US $M) Feb. Andromeda Acquisition Corp. Galaxy Nutritional Foods, Inc. 6.8 24.8 0.3 1.2 5.7 Feb. Lifeway Foods Fresh Made Dairy 14.0 10.0 1.4 Feb. M&K Acquisitions Gleukos, Inc. Feb. Nest Collective Plum Organics Frucor Beverages Group Ltd (from Groupe Feb. Suntory 775.0 270.0 2.9 Danone SA) Jan. Otsuka Pharmaceuticals Nutrition & Santé Jan. Hilco Equity Partners Niman Ranch 47.8 Jan. T ivall (a division of Osem Group) Foodtech International 20.0 Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 17This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Healthy, Natural, Organic, Functional Foods and Beverages Trans. Sales Multiple of EBITDA Multiple of 2008 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Oct. Osem Group Tribe Mediterranean Foods 57.0 32.0 1.8 Oct. Pepsico Spitz International Company Sept. Green Mountain Coffee Roasters Tullys 40.0 30.4 1.3 Sept. Ians Natural Foods Inc. Healthy Handfuls LLC Aug. Aventura Equities Inc. Byers Food Inc. Aug. Promax Nutrition Corp. Pure of Holland LLC Aug. SunOpta Pure Nature Organics July W essanen So Good 11.7 July Olympus Partners Anns House of Nuts Inc. July Campbell Soup Co. Country Gourmet Foods June General Mills Humm Foods June Meyer Natural Angus Coleman Natural Foods May Pepsico V Water April SunOpta Tradin Organics 120.0 April T he Hain Celestial Group Daily Bread, Ltd. April T SG Consumer Partners MonaVie March Natures Products Inc. Champion Nutrition March T he Hain Celestial Group MaraNatha and SunSpire Brands 40.0 Pilgrims Pride Corporation (Turkey March T he Hain Celestial Group Operation) Feb. Coca-Cola Honest Tea Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 18This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Healthy, Natural, Organic, Functional Foods and Beverages Trans.2008 Sales Multiple of EBITDA Multiple of Acquirer Target Value (Contd) (US $M) Sales (US $M) EBITDA (US $M) Feb. Coca-Cola NutriJoy Inc. Feb. Robertet Group Plantes Aromatiques du Diois 8th Continent (A General Mills and Dupont Feb. Stremicks Heritage Foods JV) Jan. Meyer Natural Angus Lauras Lean Beef Co. 150.0 Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 19This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Healthy, Natural, Organic, Functional Foods and Beverages Trans. Sales Multiple of EBITDA Multiple of 2007 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) W holesome and Hearty Foods Company Nov. Kelloggs (Gardenburger brand) Nov. Kelloggs Bear Naked 20.0 Oct. Amish Naturals Schlabach Amish Wholesale Bakery Oct. Amish Naturals Prima Pasta Oct. Clearlight Partners Apple and Eve Zero Debt Bottling Corp. (a.k.a. 505 Aug. Creo Capital Partners Southwestern) Aug. T he Hain Celestial Group Plainville T urkey Farm 30.0 July ConAgra Alexia Foods 35.0 July Nestle Novartis Medical Nutrition 2500.0 Vialat (70% of its fresh dairy activity in May Group DANONE Chile) May Clearly Canadian Beverage Corp. My Organic Baby 2.5 May Coca Cola Glaceau 4100.0 355.0 11.5 May T he Hain Celestial Group Tofu Business of WhiteWave Foods March Integrated Biopharma BevSpec (Syzmo Brand) Feb. Clearly Canadian Beverage Corp. DMR Food Corporation Feb. Rich Products GLP Free Manufacturing Susquehanna International Group Feb. U.S. Mills (SIG) Investments Jan. Coca Cola Fuze Beverage Jan. Catterton Partners CoolBrands Dairy, Inc. Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 20This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Healthy, Natural, Organic, Functional Foods and Beverages Trans. 2007 Sales Multiple of EBITDA Multiple of Acquirer Target Value (Contd) (US $M) Sales (US $M) EBITDA (US $M) Eskimo Pie, Chipwich brands, Real Fruit Jan. Dreyers Grand Ice Cream trademark and Eskimo Pie foodservice business (Coolbrands) Jan. Health Sciences Group Kalahari Tea Jan. ICBS DNA Distribution (maker of GO-JI Plus) Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 21This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Health and Nutrition Ingredients Suppliers DSM expands its reach in natural products After a nearly 2-year hiatus from the health and nutrition sector, DSM returned, acquiring two companies in the sector in the last four months of 2010, focusing in on higher value nutritional ingredients as opposed to low-margin bulk chemicals. In September 2010, DSM acquired Microbia from Ironwood Pharmaceuticals. Microbia claims that it has developed a technology platform that enables it to produce high- quality, natural carotenoids (including ß-carotene and canthaxanthin), nutritional products and other specialty materials and chemicals from renewable resources. On the heels of this acquisition, DSM acquired Martek Biosciences for $1.5 billion. With $450 million of annual revenue and 600 employees, Martek offers fatty acids and nutrition ingredients to companies including baby-formula maker Mead Johnson Nutrition Co. and Kellogg Co. The company, in its efforts to move beyond infant Omega 3 nutrition, acquired supplement manufacturer, Amerifit in early 2010. Omega 3 companies Trygg Pharma AS, a company jointly owned by Aker BioMarine ASA, a Norwegian biotechnology company, and Lindsay Goldberg, a New York-based investment fund, acquired all of the shares in EPAX AS from Austevoll Seafood ASA. EPAX AS is a leading supplier of concentrated, marine- derived omega-3 formulas. Expanding beyond protein products and omega-3 fish oil, Omega Protein acquired Cyvex Nutrition, suppliers and marketers of premium branded ingredients to dietary supplement manufacturers. ©2011 J.H. Chapman Group, L.L.C. 22This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Health and Nutrition Ingredients Suppliers Trans. Sales Multiple of EBITDA Multiple of 2010 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Dec. DSM Martek 1087.0 450.0 2.4 Dec. Omega Protein Cyvex Nutrition Sept. DSM Microbia Sept. Solbar Green Planet Farms 7.8 Martek Biosciences manufacturing plant in Sept. Alltech 14.0 W inchester, KY Aug. T rygg Pharma AS EPAX AS 91.0 51.2 1.8 July Marco Hi-Tech Reducol Assets (from Forbes Medi-tech) June Novus International IQF Group June BASF Cognis 3833.0 3215.0 1.2 450.0 8.5 May Viterra 21st Century Grain Processing 90.5 March Lallemand Health Ingredients Lal’Food March H2 Equity Partners Kirin Agribio Company Nutra Cea (Natural Glo, Satin Finish, and March Manna Pro Products 0.7 Max-E-Glo Brands and Trademarks) March Institut Rosell-Lallemand DSM (LAFTI range of probiotic strains) NutraCeas cereal ingredient Feb. Kerry Group 4.0 business Albion Laboratories, Inc. (Animal Nutrition Feb. Novus International Division) Jan. Kemin Industries Soda Feed Ingredients Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 23This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Health and Nutrition Ingredients Suppliers Trans. Sales Multiple of EBITDA Multiple of 2009 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Nov. Symrise (Germany) Futura Labs Oct. Advitech Botaneco Sept. Qualsec Vitamin Spice Aug. Naturex Natraceutical March Burgundy Botanical Cognis botanicals extract business Feb. Mach One Corporation Ceres Organic Harvest 8.0 20.0 0.4 Jan. Chr. Hansen Urex Biotech Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 24This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Health and Nutrition Ingredients Suppliers Trans. Sales Multiple of EBITDA Multiple of 2008 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Nov. Biorigin PTX Food Corp. Oct. Danisco GraceLink Ltd. (Glucagel brand) Sept. RFI Ingredients W ilsey and Sons Qufu Shengwang Stevia Biology and Sept. Sunwin International Neutraceuticals Science Company Aug. DSM Provexis (30% purchased) 2.0 Aug. Glanbia Optimum Nutrition 315.0 185.0 1.7 July Besins Healthcare S.A. Olympian Labs July Dynova Laboratories SiCap Industries July Rousselot PEPTAN June All American Pharmaceutical Laurel Dairy May Premium Ingredients International Bulk Pharmaceuticals Inc. April Iranex Group Bio-Serae 11.0 March Cognis InterMed Discovery March NutraCea Irgovel 14.0 Feb. Barentz Europe Vitablend Holding Jan. Eurogerm Leag 5.8 Jan. Naturex Berkems "Actifs Innovants" division 14.0 5.6 2.5 Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 25This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Health and Nutrition Ingredients Suppliers Trans. Sales Multiple of EBITDA Multiple of 2007 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Dec. Chr. Hansen Medipharm Dec. Natrol, Inc. Plethico Pharmaceuticals Limited 81.0 Dec. Naturex Chart Corporation Nov. Frutarom RAD Technologies 4.1 1.5 2.7 Tat Nisasta (Galam and Tat Nisasta, a Turkish starch, glucose and isoglucose manufacturer, have Nov. Galam formed a partnership to meet the increasing global demand for fructose) Oct. Galam Group Atomer S.L. Oct. Novozymes Biocons enzyme business 115.0 27.0 4.2 Pizzeys Milling (Omega 3 ingredient Sept. Glanbia business) Sept. Natraceutical Cevena Bioproducts 2.8 July Avesthagen Renaissance Herbs May Gadot Biochemical Industries Ltd. Pharmline Holding Inc. (85%) 37.0 May Lonza S.A.M. Electron Technologies First Israeli Turnaround Enterprise May Solbar (51% stake) 19.6 Fund May Naturex HP Botanicals 3.0 3.8 0.8 MDB Twello BV (operates under the name April Barentz Europe Fa. L.I. Frank - Fa. Wed. W. Miedendorp) Chinook Group Limited (certain choline March Balchem Corporation chloride business assets) Tempo Canada (expansion of strategic Feb. Lipid Nutrition partnership) Feb. Univars Czech Ekozym Jan. Naturex Hammer Pharma 13.0 10.1 1.3 1.2 11.2 Jan. Polifenoles Naturales National Bioscience Corp 26 ©2011 J.H. Chapman Group, L.L.C.This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient withoutWhere available, data isChapman Group. permission from the J.H. b eing provided.
    • Sub-Segment Analysis Contract Manufacturers SunOpta returns • SunOpta, a producer and distributor of natural food products, acquired Edner of Nevada, a maker of fruit snack bars. The fourth quarter of 2010 marks the return of SunOpta as an active acquirer of ingredient companies and related business, after a relatively quiet period since the beginning of 2008 when the company was faced with a class action lawsuit over mis-stated inventories in its berry operations. Interest in South Africa • Netherlands-based Danisco announced their acquisition of Research Solutions, a South African company known for their expertise in customized ingredient solutions, particularly in dairy. This marks the second transaction in South African’s health and nutrition industry in the last 12 months. In December 2009, SunOpta entered into a Joint Venture with Specialized Protein Products, a South African-based soymilk/soy powder manufacturer. Edner of Nevada ©2011 J.H. Chapman Group, L.L.C. 27This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Contract Manufacturers Trans. Sales Multiple of EBITDA Multiple of 2010 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Nov. SunOpta Edner of Nevada 4 10 0.4 Nov. UAS Labs APN Labs Aug. Danisco Research Solutions July National Enzyme Company Sora Laboratories April Pharmachem AmeriFill April ConAgra Elan Nutrition April Milk Specialties Global Protient’s Dairy Processing Facility Trans. Sales Multiple of EBITDA Multiple of 2009 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Aug. Herbalife Micelle Laboratories Acquired two additional gelatin production April CapsCanada facilities March Milk Specialties Global Edan Naturals Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 28This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Contract Manufacturers Trans. Sales Multiple of EBITDA Multiple of 2008 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Nov. Joshua Partners LLC Medicia Holdings LLC MSC Animal Nutrition (A division of Oct. Manufacturing Facility Milk Specialties Global) Sep. Perrigo JB Laboratories 44.0 70.0 0.6 Jul. Probio Gelkaps Trans. Sales Multiple of EBITDA Multiple of 2007 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Jan. Atrium Biotechnologies Inc. AquaCap Pharmaceutical, Inc. 21.5 3.6 6.0 T he Qualicaps Group (The Carlyle Jan. Pharmaphil, Inc. Group) Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 29This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Branded Nutritional Supplements The return of Private Equity Groups (PEGs) The Carlyle Group re-entered the health and nutrition sector with its acquisition of NBTY. In 2005, the global alternative asset management firm acquired Chinese contract manufacturer Shionogi Qualicaps Group, and through that portfolio company acquired Pharmaphil in 2007. NBTY makes nutritional supplements and vitamins under the brands Nature’s Bounty, Vitamin World, and others. Atkins Nutritionals, a portfolio company of North Castle Partners, was acquired by Roark Capital Group, an Atlanta-based private equity firm. Roark has a focus on consumer products, direct marketing and retail. Their previous investments include Pet Valu, Seattle’s Best Coffee, Aunt Anne’s and Moe’s Southwest Grille. Levine Leichtman Capital Partners (LLCP) announced that it has partnered with management in its acquisition of Santa Cruz Nutritionals, a leading manufacturer of gummy-based nutritional products and dietary supplements from Swander Pace. Swander Pace acquired Santa Cruz Nutritionals as part of the Harmony Foods buyout, and sold the Harmony Foods Retail division to Diamond Foods in 2006. LLCP’s previous consumer and retail investments include Quizno’s, Cici’s Pizza and Overhill Farms. ©2011 J.H. Chapman Group, L.L.C. 30This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Branded Nutritional Supplements Trans. Sales Multiple of EBITDA Multiple of 2010 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Dec. Atkins Nutritionals Roark Capital Group 170.0 Dec. Atrium Innovations Inc. Minami Nutrition 7.4 6.7 1.1 1.3 5.5 Dec. GlaxoSmithKline Maxinutrition Group Holdings 250.0 56.0 4.5 Nov. Levine Leichtman Capital Partners Santa Cruz Nutritionals Cataline LifeSciences (Bariatric Aug. Metagenics Advantage) July Carlyle Group NBTY 4000.0 2600.0 1.5 500.0 8.0 June T horne Research Diversified Natural Products June Danone Medical Nutrition 62.0 16.0 3.9 May Vitacyclix, LLC Freeman Industries April Baird Capital Partners New Vitality March Atrium Innovations Trophic Canada 11.0 7.5 1.5 Jan. International Vitamin Corporation Inverness Medical Innovations 63.4 Jan. Martek Amerifit Nutrition Inc. 200.0 Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 31This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Branded Nutritional Supplements Trans. Sales Multiple of EBITDA Multiple of 2009 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Oct. GF Capital Private Equity Fund Airborne Sept. Atrium Innovations Garden of Life 35.0 52.0 0.7 NataFort and NataChew and related U.S. Sept. Mission Pharmacal patents from W arner Chilcot Aug. Alticor Metagenics Feb. Sergeant Chomp Jan. Atrium Innovations Inc. Nutri-Health Supplements 24.0 27.0 0.9 Jan. Genesis Pharmaceuticals Hongrui Pharmaceuticals Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 32This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Branded Nutritional Supplements Trans. Sales Multiple of EBITDA Multiple of 2008 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Dec. T he Neutraceutical Company Trimlife Nov. Kubicki Company Berkeley Premium Nutraceuticals Oct. Atrium Innovations Inc. Orthos Europe B.V. 11.0 Dr. Willmar Schwabe Oct. Enzymatic Therapy Pharmaceuticals Sept. NBTY Inc. Baugur Group (Julian Graves Ltd.) 25.0 Sept. W almark Aminostar Aug. Miles Kimball As We Change 2.0 July NeutraHealth Perrigo UK Ltd. 9.3 8.3 1.1 0.7 12.9 June NBTY Leiner Health Products 371.0 April Humet Enerex Botanicals Feb. Atrium Innovations MCO Health 24.8 22.0 1.1 Feb. Encore Consumer Capital Isopure Jan. Maabarot Products Analit Extracts Jan. Natural Nutrition Interactive Nutrition International Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 33This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Branded Nutritional Supplements Trans. Sales Multiple of EBITDA Multiple of 2007 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Dec. Darwin Private Equity Maximuscle Nov. Plethico Pharmaceuticals Limited Natrol 81.0 73.9 1.1 Sept. North Castle Partners Atkins Nutritionals Sept. T SG Consumer Partners Cytosport, Inc. Aug. Diverse Investor Group Nellson Nutraceutical Aug. MBF Healthcare Partners Nutriforce / FDC Vitamins 30.0 July Atrium Innovations Inc. Mucos Emulsions GmbH 175.0 85.0 2.1 27.0 6.5 June Natrol Medical Research Institute 8.0 May GeoPharma Dynamic Health Products 15.0 50.0 0.3 April Baywood International Nutritional Specialties, Inc. (Lifetime brand) 11.0 11.9 0.9 Natural Channel Brands of Botanical March Nutraceutical International Laboratories Jan. NeutraHealth Brunel Healthcare 5.0 Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 34This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis OTC and Natural Personal Care Products Trans. Sales Multiple of EBITDA Multiple of 2010 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Nov. Gojo Purell Brand Sara Lees global body care and European Nov. Unilever 1631.0 984.5 1.7 168.0 9.7 detergents businesses Oct. New Image Living Nature May Perrigo PBM Holdings 808.0 April Avon Liz Earle Beauty March Dr. Fresh Dr. Kens Feb. Revive Personal Products Natural Dentist Jan. Shiseido Bare Escentuals 1700.0 556.0 3.1 Trans. Sales Multiple of EBITDA Multiple of 2009 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Dec. Alberto Culver Simple Heath and Beauty 390.0 104.0 3.8 Dec. Sanofi Aventis Chattem 1900.0 Sept. Galaxy Nutritionals BeeCeuticals Aug. Catterton Partners Strivectin June Swander Pace Insight Pharmaceuticals Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 35This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis OTC and Natural Personal Care Products Trans. Sales Multiple of EBITDA Multiple of 2008 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) July Dynova Laboratories SiCap Industries (Sinus Buster Brand) Goldman Sachs Urban Investment June Group and Cordova, Smart & H20 W illiams Trans. Sales Multiple of EBITDA Multiple of 2007 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Oct. Clorox Burts Bees Inc 925.0 170.0 5.4 Oct. VMG Equity Partners Colorescience May First Natural Limited Tisserand Jan. Kiluva Laboratorios Abad 3.0 Jan. Procter & Gamble Co HDS Cosmetics Lab, Inc. (DDF Brand) Jan. Purity Life Hebron Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 36This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Licensing and Joint Ventures ©2011 J.H. Chapman Group, L.L.C. 37This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Licensing and Joint Ventures Ganeden Biotech • Ganeden Biotech, a supplier of probiotics and maker of the patented probiotic GanedenBC30®, entered into a non-exclusive agreement with Glanbia Nutritionals to supply probiotics for the Irish company’s formulations. The transaction confirms an informal collaboration that has seen at least one formulation utilized for an immunity product called Java Juice. • Agostoni Chocolate, an Italian farm-to-bar producer of all natural premium chocolates, and Ganeden Biotech, Inc., announced Chocolate Plus Private Label, the first store brand functional snack program to bring together GanedenBC30® probiotic with an award-winning premium Italian dark chocolate. Designed to fit into retailers’ confectionary and wellness supplement categories, the Chocolate Plus Private Label program offers a mix-and-match approach for product feature and pricing flexibility Jamba Juice • The Jamba Juice Company, a seller of healthy beverages through its retail locations and through Jamba-branded consumer products, and O.N.E. announced an exclusive licensing agreement develop and launch a line of Jamba-branded, ready-to-drink coconut water fruit juice blends. The new line of Jamba-branded products will be brought to market via the O.N.E. distribution system, which includes distribution through Pepsi Beverage Company, and is expected to be available in select grocery, convenience and other retail outlets in early 2011. • Acai beverage and smoothie company Zola Acai and The Jamba Juice Company announced an exclusive licensing agreement to develop and launch an innovative new line of Jamba- branded daily Superfruit shots. The products are also expected to launch in Jamba Juice retail stores, grocery stores and other retail outlets in early 2011. ©2011 J.H. Chapman Group, L.L.C. 38This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Licensing and Joint Ventures 2010 Partnership Partnership Dec. NutraCea AF Bran Holdings Dec. DSM (anti-infectives) Sinochem Group Nov. Nutraceutical International Peruvian Nature Nov. AB Enzymes Bio Sun FFI Nov. Jamba Juice Zola Acai Nov. Jamba Juice O.N.E Nov. Novus ESM Technologies Nov. Burcon (Clarisoy) ADM Nov. Firmenich Amyris Nov. Spice Depot Ever Fresh Nov. CK Nutritional Ingredients Nut-trition Nov. Novasep Mega Nov. McCormick and Co. Eastern Condiments Private Nov. Kemin Health National and World para-triathlete, Champion Aaron Scheidies Nov. Solazyme Roquette Oct. Chr. Hansen TI Food and Nutrition Oct. Ebro Foods Ricegrowers Limited Aug. Ganeden Biotech Agostino Chocolate July GLG Life Tech Corporation Grupo Azucarero Mexico July Ariste Flavor Essence Bestino Natural Oils July Grain Processing Corporation (GPC) ENERCO July Ganeden Biotech Glanbia Nutritionals Where availabl e, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 39This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Licensing and Joint Ventures 2010 Partnership Partnership (Contd) GAT Food Essentials (GAT) Omega-3 microencapsulation-emulsion July Ocean Nutrition Canada technology June AB Enzymes (part of Associated British Foods) The Ingredients Company June International Flavors & Fragrances Reddpoint June MegaFood Organic Valley Cooperative May Lamb Weston/Meijer Frisch & Frost Nahrungsmittel GmbH May S&W Seed Company PureCircle May PL Thomas Polifenoles Naturales April Alterra Coffee Mars Drinks March Mead Johnson Almarai Company March Solazyme Unilever March Fluxome Glycanova Feb. BioGaia Nippon Access Feb. Ganeden Biotech Pathway International Feb. DSM Anchor Biotechnologies Jan. DSM Tatenergo Jan. VitaminSpice Amdistco for Iron Chef America Co-Branded VitaminSpice Seasonings Jan. Cyvex Nutrition The Salk Institute for Biological Studies Jan. Pure Circle Cooperativa Colonias Unidas Jan. Pure Circle Imperial Sugar Company Jan. Ayala Herbal W ater Sunsweet Where availabl e, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 40This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Licensing and Joint Ventures 2009 Partnership Partnership Dec. W ellgen RFI Ingredients Dec. Aker BioMarine Schiff Nutrition Dec. SunOpta Grains & Foods Group Specialized Protein Products Nov. Statum Nutrition (Human Nutrition division of Novus International) ESM Technologies Nov. SunOpta Inc. Kaleb Service Farmers House Nov. Chr. Hansen Probiomics Ltd. Nov. MGP Ingredients Illinois Corn Processing Holdings Oct. SunOpta Ingredients Group Best Cooking Pulses Oct. Sanofi-Aventis Minsheng Oct. T ate & Lyle Solvay Oct. Hormel Foods Herdez Del Fuerte Complete Sept. DSM Nutritional Products Myprotein.co.uk Aug. Pharmachem Probiotical, S.p.A Aug. Martek Biosciences E.T. Horn Aug. Cargill Health and Nutrition Sentosa Taiwan Aug. Lithos Food GTC Nutrition Aug. Nutritional Products International Sea2O Aug. AHD International Maruzen Pharmaceutical Aug. Martek Biosciences Puleva Food Aug. Martek Biosciences Milk Powder Solutions June DSM Nutritional Products Lonza Where availabl e, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 41This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Licensing and Joint Ventures 2009 Partnership Partnership (Contd) June Bunge ITOCHU and STX Pan Ocean June Dole Fresh Vegetables Monsanto May Chr Hansen ProteoNic May Enzymotec Phosphotec April Albemarle Corporation Zymes LLC April Coca-Cola Innocent April Martek Biosciences Corporation Lactalis Nutrition April Old Orchard Brands Chiquita April T ate & Lyle A. Holliday March Access Beverage, Inc. New Patagonia SA March Avesthagen Uxmal March Cognis Intermed Discovery March Embria Health Sciences Rio de Janeiros Pharma Nostra March Frutarom Collactive March Granular Paraguay March Symrise Flavors First Choice Ingredients March DSM Roquette March Ganeden Biotech Heartland Sweeteners March Green Meadows Foods Arla Foods March GTC Nutrition Nu-Mega Ingredients March InterMed Discovery GmbH Axxam SpA March Natural Alternatives International Carnosyn Where availabl e, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 42This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Licensing and Joint Ventures 2009 Partnership Partnership (Contd) March Pure Circle Cerilliant Feb. Danisco Mingtai Feb. Frutarom Copalis, France Feb. Monterey Gourmet Foods, Inc. Aidells Sausage Company, Inc. Feb. NattoPharma ASA Danisco A/S Feb. Sirion Therapeutics Advanced Vision Research Feb. W ILD Flavors, Inc. Sunwin International Neutraceuticals, Inc. Jan. International Flavors & Fragrances Barentz Jan. SunOpta Ingredients Group PolyCell Technologies Where availabl e, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 43This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Licensing and Joint Ventures 2008 Partnership Partnership Dec. Gourmetceuticals, LLC Curamedics Pharmaceuticals, Inc. Dec. Natreon, Inc. Abelei Inc. Dec. Nellson Nutraceutical, LLC Ganeden Biotech, Inc. Dec. Nutri Pharmaceuticals Research, Inc. SourceOne Global Partners Nov. Solae Novozymes Nov. Senomyx Inc. Firmenich SA Nov. ChromaDex Cargill Oct. ACH Food Companies, Inc. Archer Daniels Midland Company Oct. GTC Nutrition Ganeden Sept. GLG Life Tech Corporation Weider Global Nutrition Aug. DSM Provexis Aug. Nutraceuticals Discoveries Inc. Attitude Drinks Inc. Aug. FutureCeuticals, Inc. Comax Flavors Aug. ChromaDex SUNY Buffalo Aug. Market-Wide Nutrition LLC Northern Light Food Processing June Blue Pacific Flavors Inc. HortResearch June Organic Prairie Dakota Beef May Naturex Scalime Nutrition April Kraft Foods Probi Feb. Kerry Dierbergers Oleaos Essencias Feb. Numico Martek Biosciences Corp. Where availabl e, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 44This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Retailers and Distributors • Parent company SuperValu (which also owns Alberston’s) sold its Bristol Farms chain (13 Bristol Farms stores and one Lazy Acres store) to Endeavor Capital, a private equity firm with a focus on food manufacturing, distribution and grocery retail, along with Bristol Farm’s management team. Albertsons initially purchased Bristol Farms in 2004 for $135 million before it was acquired by SuperValu a few years later. SuperValu had major expansion plans for Bristol Farms, but scaled back and subsequently closed locations in recent years. • The Fresh Market, a Greensboro North Carolina supermarket chain, raised $290 million in its recent IPO. The small grocery chain, which operates 100 stores, half of which are in Florida, North Carolina and Georgia, focuses on higher margin foods and services such as imported cheeses, organic produce and on-site butchers. Many analysts liken the company to Whole Foods, with its emphasis on organic and upscale items and gross margins of 33%, similar to Whole Foods at 35%. ©2011 J.H. Chapman Group, L.L.C. 45This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Retailers and Distributors Trans. Sales Multiple of EBITDA Multiple of 2010 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Oct. Endeavor Capital Bristol Farms July NutriPure Beverages Brenlin June Musclemartonline, Inc. Nutriseller.com June Musclemartonline, Inc. Conditionnutrition.com May Catalyst Capital Group Inc. Planet Organic Health Corp. May W hole Foods Market Inc. Greenlife Grocery LLC SunOpta Inc (Canadian food distribution May United Natural Foods, Inc. 66.2 assets) March Jamm Enterprises Sangsters Health Centres Trans. Sales Multiple of EBITDA Multiple of 2009 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Dec. Kehe Food Distributors Tree of Life 190.0 1,162.0 0.2 17.5 10.9 Oct. Inventages Mixt Greens Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 46This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Retailers and Distributors Trans. Sales Multiple of EBITDA Multiple of 2008 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Sep. NBTY Julian Graves 25.0 120.0 0.2 Jul. Organic to Go Marvelous Market June Organic to Go High Noon (A Balduccis Business) 6.0 May Organic to Go Mels Market, Joelles and Simons March Lovejuice Barefoot Juice March Vitamin Shoppe Nutrition Depot (5 Locations) Trans. Sales Multiple of EBITDA Multiple of 2007 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Oct. Abel and Cole Phoenix Equity Partners 30.0 Henrys Farmers Markets and Sun Harvest Oct. Smart and Final 166.0 Markets Oct. United Natural Foods, Inc. Millbrook Distribution Services Inc. 300.0 April T ree of Life Organica USA Ares Management LLC and Ontario March GNC 1650.0 T eachers´ Pension Plan March Bare Escentuals Cosmeceuticals Ltd. March Organic to Go Jackrabbit Catering 2.0 March Planet Organic Health Corp Mrs. Greens Natural Market, Inc. 34.0 38.0 0.9 4.8 7.1 Feb. SPG Partners Tasti D-Lite Feb. W hole Foods W ild Oats 671.0 1200.0 0.6 47.0 14.3 Jan. G. Willi-Food Laish Israeli Food Products Ltd. 3.7 7.5 0.5 Jan. NeutraHealth Brunel Healthcare Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 47This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Conventional Ingredients Suppliers • SunOpta acquired Dahlgren & Company to create one of the world’s largest confection sunflower businesses. Dating back to the 1970’s when it first introduced an extended shelf-life high oleic sunflower kernel, SunOpta has been a pioneer in the sunflower industry. SunOpta’s president and CEO Steve Bromley said: "The combination of Dahlgrens extensive vertically integrated capabilities in confection sunflower with our existing sunflower operations creates a leading worldwide confection sunflower business, with a focus on vertically integrated and value-added healthy food products.” • Quebec-based dairy cooperative Agropur has acquired Wisconsin-based Main Street Ingredients, a Wisconsin-based provider of functional food products and ingredients, for an undisclosed sum. In recent months, Agropur acquired Green Meadows Food and Farmland Dairies’ Grand Rapids facility. Agropur has sales of approximately $3.4 billion annually and operates 27 plants in Canada, the U.S. and Argentina. Its brands include Schroeder, Quebon, Oka, Sealtest, Natrel, Island Farms, Yoplait and La Lacteo. ©2011 J.H. Chapman Group, L.L.C. 48This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Conventional Ingredients Suppliers Trans. Sales Multiple of EBITDA Multiple of 2010 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Rieber and Son (Industrial Spices and Dec. Frutarom 4.2 6.3 0.7 Savory Unit) Dec. AGROPUR Main Street Ingredients Nov. Kerry Group Key Essentials Inc. Nov. SunOpta Dahlgren & Co. Food Ingredient Technologies, LLC July SensoryEffects (emulsifier technology and Encap product line) July Brenntag EAC Industrial Ingredients Tate and Lyles European Sugar July American Sugar Refining Operations June Newly Weds Foods W itwood Food Products June SFINC JADICO June Corn Products International National Starch May Orkla Food Ingredients Sonneveld Group B.V. Feb. Linsalata Capital Partners Eatem Foods Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 49This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Conventional Ingredients Suppliers Trans. Sales Multiple of EBITDA Multiple of 2009 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Goodman Fielder (edible fats and oil Dec. Cargill 212.0 business) Dec. Barry Callebaut Spanish Chocolate Maker Chocovic Dec. Agropur Green Meadows Food Dec. Agropur Farmland Dairies Grand Rapids facility Nov. Symrise AG Futura Labs Group Penfords specialty starch business in Nov. National Starch Australia Cargills animal nutrition business in Spain Nov Nutreco and Portugal Oct. Chicago Sweeteners Inc. Industrial Ingredients Inc. (ABI) Sept. K&S Aktiengesellschaft Morton Salt New Zealand private investment Sept. Penford New Zealand Limited company (undisclosed) Aug. Brenntag UK Cargills packaged glucose syrup Aug. Lallemand Bio-Ingredients Lake States Yeast Company (Wisconsin) Aug. Lallemand GB Ingredients (GBI)s UK yeast facilities July AFG Unlimited REX Fine Foods June Diehl ACH Food Companies Savory Functional Systems Activities of June Frutarom 7.3 7.7 0.9 Chr. Hansen Group April Stanko, Warren Alchemy Spice Company April Bunge North America Mid-Atlantic Vegetable Shortening, Inc. IDI Inc. (U.S. subsidiary of Ingredia April Kantner Ingredients Group) Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 50This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Conventional Ingredients Suppliers Trans. 2009 Acquirer Target Value Sales Multiple of EBITDA Multiple of (Contd) (US $M) Sales (US $M) EBITDA (US $M) April K+S Aktiengesellschaft Morton International, Inc. April Olam International SK Foods 39.0 March Frutarom Flavor Specialties 17.2 11.5 1.5 Feb. Berje Inc. W hole Herb Company Feb. Food Ingredients & Specialties Fromatech Feb. Kerry X Café Jan. Xcell International Corporation Grand Carnival Jan. ADM (Archer Daniels Midland) Schokinag-Schokolade-Industrie Herrmann Jan. Osem Investments FoodTech International 20.0 Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 51This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Conventional Ingredients Suppliers Trans. Sales Multiple of EBITDA Multiple of 2008 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Dec. Agropur Schroder Company 3.0 Dec. AXA Private Equity Sfinc Dec. Frutarom Oxford Chemicals Nov. Danisco A/S Agtech Products Inc. 42.0 Nov. Riverside Company The Herbal Garden Oct. T ree Top, Inc. Sabroso Company Aug. FMC Corp. International Specialty Products Inc. Aug. Global Sweeteners Holdings Jinzhou Yuanchen Bio-chem Technology July Ashland Hercules 3300.0 July DSM Valley Research July Emerging Capital Partners (ECP) Salt Investment 30.0 July FMC CoLiving Food Ingredients July FMC ISPs Food Ingredients division July DSM Valley Research June Cody Resources ChromaDex May FMC Corporation International Specialty Products May Naturex Scalime Nutrition May Symrise Chr. Hansens flavor division April CHS Legacy Foods April T he Riverside Company HerbThyme Farms Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 52This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Conventional Ingredients Suppliers Trans. 2008 Acquirer Target Value Sales Multiple of EBITDA Multiple of (Contd) (US $M) Sales (US $M) EBITDA (US $M) W ingate Partners & Lake Pacific April Cal Pacific Specialty Foods Partners March C.H. Guenther & Son, Inc. W illiams Foods March Kerry Presco Food Seasonings Feb. Kerry Dierbergers Oleos Essencias Feb. McCormick & Company, Inc. Billy Bee Honey Products Ltd. Performance Chemicals & Feb. Givaudans St. Louis ingredient facility Ingredients Company Jan. Kerry CSMs QA Products business Jan. Akzo Nobel N.V. Imperial Chemical Industries Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 53This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Conventional Ingredients Suppliers Trans. Sales Multiple of EBITDA Multiple of 2007 Acquirer Target Value (US $M) Sales (US $M) EBITDA (US $M) Dec. Kerry CSMs QA Products Business 35.0 Nov. McCormick & Co. Lawrys 605.0 Oct. Galam Group Atomer S.L. Oct. Bakkavor W elcome Food Ingredients Oct. Frutarom Gewurzmuller 67.0 65.0 1.0 9.4 7.1 Sept. Symrise Aromatics S.A.S. (remaining shares) Chr Hansen (coatings & excipients Sept. Colorcon business) Unilevers UK non-branded food Sept. Symrise 6.4 ingredients business Federal Land Development Authority Aug. Twin Rivers Technologies 241.0 (FELDA) Aug. PGP International Riverend Rice Mill, Inc. Aug. Royal Cosun Atlanta Dethmers Aug. SunOpta ProSoya July Avesthagen Renaissance Herbs July Danisco Innovative Ingredients July Fuso Chemical CSMs gluconic acid business 2.5 5.7 0.4 July Proliant Meat Ingredients Fisher Foods Tate & Lyles Food and Industrial July Syral SAS 427.2 222.8 1.9 Ingredients, Europe division (TALFIIE) July Danisco Innovative Ingredients July Firmenich Daniscos Flavor division 613.0 273.0 2.2 Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 54This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Conventional Ingredients Suppliers Trans. 2007 Sales Multiple of EBITDA Multiple of Acquirer Target Value (Contd) (US $M) Sales (US $M) EBITDA (US $M) July Frutarom Abaco 5.1 3.2 1.6 July Frutarom Adumim 4.3 5.5 0.8 July Solae Cargills soy protein line (Prolisse) July Fuso Chemical CSMs gluconic acid business July Proliant Meat Ingredients Fisher Foods Tessenderlo Groups flavourings and food June Nactris ingredients activity Chr. Hansens paprika & spice oleoresin June A&P Group business activities and production facilities in Spain & India June AXA Private Equity Diana Ingredients 958.0 351.0 2.7 16.9 June CSM Titteringtons June Frutarom Raychan Food Industries 2.3 May Naturex HP Botanicals May Gadot Biochemical Industries Ltd. Pharmline Holding Inc. (85%) First Israeli Turnaround Enterprise May Solbar (51% stake) 19.6 Fund May Hawkins, Inc. Trumark, Inc. May SunOpta Baja California Congelados 14.0 April Frutarom Jupiter Flavours Limited 2.8 2.0 1.4 April Royal Cosun CSM Suiker 339.9 April T ate and Lyle GC Hahn 158.0 March Frutarom Belmay March Royal Cosun Atlanta Dethmers Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 55This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Sub-Segment Analysis Conventional Ingredients Suppliers Trans. 2007 Sales Multiple of EBITDA Multiple of Acquirer Target Value (Contd) (US $M) Sales (US $M) EBITDA (US $M) March Symrise Steng Ltd. 6.9 American Flavors and Fragrance do Brasil March Synergy Flavors (AFF) Yamaki Co., Ltd. (joint venture to form a Feb. Ajinomoto Co., Inc. capital & business alliance) Feb. Danone Calpis Ajinomoto Danone Feb. Main Street Ingredients Hilton House Foods Food Business of SPI Polyols and Jan. Corn Products International remaining 50% of SPI’s Brazilian joint 100.0 venture ADMs North American bakery ingredients Jan. CSM 55.0 division Jan. International Speciality Products Vincience Jan. Synergy Flavors Vanlab Corporation Where available, data is b eing provided. ©2011 J.H. Chapman Group, L.L.C. 56This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Recent Financings Industry stalwarts raise capital Kiss My Face, a NY-based natural personal care company, raised an undisclosed amount of growth capital investment from Caltius Equity Partners. Founded in 1981 by Bob MacLeod and Steve Byckiewicz, the company sells a variety of natural personal care products to natural, mass, grocery, online and specialty retailers. Greenmont Capital Partners completed an investment in Madhava Honey to help finance the company’s expansion. Madhava was founded in 1973 as a honey producer, but has since grown to provide a variety of alternative sweeteners. Emerging Markets China-based Tsing Capital, a $350 million cleantech and sustainability investment firm, announced their investment of $10 million in Tony’s Farm, Shanghai’s largest organic farm producer. Sustainable Seafood Blue Horizon Wild received a follow-on investment from Bradmer Foods. The company supplies sustainably harvested frozen seafood products to the North American market. San Francisco-based Pacific Catch, a small retail chain offering sustainable seafood, raised $4 million from Pacific Community Ventures. Ingredients and Technology Trilantic Capital Partners agreed to purchase a substantial minority interest in Fortitech, a developer and manufacturer of custom nutrient premixes for the food, beverage and pharmaceutical industries. Solazyme, a renewable oil production company, raised $52 million from Chevron Technology Ventures, Bunge, Unilever and others. The company’s products are used for clean and scalable fuels, chemicals, nutritional food ingredients and health and wellness products. ©2011 J.H. Chapman Group, L.L.C. 57This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Recent Financings Investment 2010 Company Funds Segment (US $M) Caltius Equity Partners, in partnership Dec. Kiss My Face Personal Care with Lisa Yarnell and Ron Gordon Nov. O.N.E Pepsi Bottling and Catterton Partners Branded Food and Beverage Nov. Pacific Catch Pacific Community Ventures Retail and Distribution 4.0 Nov. T onys Farm Tsing Capital Branded Food and Beverage 10.0 Nov. Blue Horizon Wild Bradmer Foods Branded Food and Beverage Oct. EcoSMART T echnologies Greenmont Capital Partners Lawn and Garden 2.0 Tata Group, First Beverage Group and Oct. Activate Branded Food and Beverage 15.0 Tornante Sept. Fortitech Trilantic Capital Partners Ingredients and Contract Manufacturing Sept. T asty Bite 2x Capital Partners Branded Food and Beverage Sept. Orabrush 2x Capital Partners Technology Sept. Shopwell Technology New Venture Partners and IDEO 1.1 Sept. Zevia Northwood Ventures and Paddy Spence Branded Food and Beverage Sept. Manitoba Harvest Avrio Ventures Branded Food and Beverage Chevron Technology Ventures, Bunge, Aug. Solazyme Ingredients and Contract Manufacturing 52.0 Unilever, and others June Siggis Revelry Brands Branded Food and Beverage June Phils Fresh Foods Revelry Brands Branded Food and Beverage June Diet Chef Piper Private Equity Branded Food and Beverage 4.5 May T ropical Smoothie Café BIP Opportunities Fund Retail and Distribution 4.4 May Prosperity Organic Foods Diverse Investor Group Branded Food and Beverage May Hugos Naturals Manhattan Growth Partners Branded Food and Beverage May Chiapas Organic Holdings IGNIA Fund I, LP Branded Food and Beverage 6.5 Where available, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 58This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Recent Financings 2010 Investment Company Funds Segment (Contd) (US $M) May Evolution Fresh Fireman Capital Branded Food and Beverage May T ossed Beringea Retail and Distribution 2.3 April ChromaDex Frost Group Ingredients and Contract Manufacturing Good Capital, Serious Change Fund, April Alter Eco Branded Food and Beverage 2.0 Renewal2 Investment Fund April Hibix (Ooba brand) Branded Food and Beverage 5.8 April Perfect Smile Corporation Bioactives Ingredients and Contract Manufacturing April Sweet Leaf Tea Branded Food and Beverage 19.0 April Yogurt Mountain Holding Books a Million Retail and Distribution April Ayala Herbal W ater Sunsweet Branded Food and Beverage April T he FRS Company Oak Investment Partners Branded Food and Beverage 23.1 CIC Partners, Michael Rawlings, Sherbrooke Capital, Pacific Community April Adina for Life Branded Food and Beverage 14.0 Ventures, Good Capital, and Seraph Capital March Hint Water Verlinvest Branded Food and Beverage 2.0 March Botanical Labs Triangle Capital Supplements 10.5 March Artisanal Premium Cheese Branded Food and Beverage 2.5 March LifeVantage Aspenwood Capital Supplements 5.0 March LocalDirt Peak Ridge Capital Technology Feb. ONE Bio UTA Capital Technology 3.0 Feb. Rudolf Wild GmbH & Co Kohlberg Kravis Roberts & Co. Ingredients and Contract Manufacturing Where available, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 59This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Recent Financings 2010 Investment Company Funds Segment (Contd) (US $M) Madonna, Guy Oseary, Matthew Feb. Vita Coco McConaughey, Demi Moore, and Red Hot Branded Food and Beverage Chili Peppers front-man Anthony Kiedis Feb. Home Market Foods Key Principal Partners Branded Food and Beverage 22.0 Feb. Vitamin Research Products Castanea Partners Supplements Feb. Health Resources Castanea Partners Supplements Feb. Speirs Nutritionals Partners LP Manawatu Investment Group Ingredients and Contract Manufacturing 1.0 Jan. T anfield Foods Inventages Branded Food and Beverage 6.0 SJF Ventures, CEI Community Ventures Jan. Rustic Crust Branded Food and Beverage 2.3 and Investors Renewal2 Jan. Island Oasis TSG Consumer Partners Branded Food and Beverage 10.0 Where available, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 60This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Recent Financings Investment 2009 Company Funds Segment (US $M) Dec. New Seasons Market Endeavor Capital Retail and Distribution Fifth T hird Bank & existing financial Dec. SunFlower Farmers Markets Retail and Distribution 35.0 partner, Pacific Corporate Group Dec. Attune Foods (Existing investors) Branded Food and Beverage 5.0 Greenmont Capital, Bradmer Foods and Dec. Blue Horizon Organic Seafood Branded Food and Beverage Renewal2 Social Funds Dec. ChromaDex Jinke Group Ltd Ingredients and Contract Manufacturing 1.0 Nov. Deccan Healthcare Nexus Venture Partners Supplements 30.0 Nov. Chef Solutions Mistral Equity Partners Retail and Distribution 24.0 Nov. GoodHealth Natural Products Salem Halifax Capital Partners Branded Food and Beverage Oct. Lonza Cilian AG Ingredients and Contract Manufacturing LFE Capital, Sherbrooke Capital and Sept. Immaculate Baking Branded Food and Beverage 3.0 Dogwood Equity Sept. Dutchy Originals W aitrose Supermarkets Branded Food and Beverage Phenomenelle Angels Fund, Fisher Sept. Leland Cherry Supplements 0.8 Properties and other angels Sept. Moobella Inventages Technology 18.0 Sept. O.N.E Pepsi Bottling and Catterton Partners Branded Food and Beverage Sept. Zico Coca Cola and individuals Branded Food and Beverage 15.0 Aug. mix1 Highland Consumer Fund Branded Food and Beverage 6.0 Highland Capital Partners, Highland Aug. Pharmaca Retail and Distribution 6.6 Consumer Fund and Physic Ventures OVP Venture Partners led the round; Aug. Novomer Technology 14.0 joined by return backers Physic Ventures Aug. T rue Food Kitchen Pf Changs Retail and Distribution 10.0 Aug. American Dairy Sequoia Capital Branded Food and Beverage 63.0 Where available, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 61This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Recent Financings 2009 Investment Company Funds Segment (Contd) (US $M) Aug. MyWebGrocer Stripes Group Retail and Distribution 13.0 Aug. Revolution Foods Catamount Ventures Branded Food and Beverage 6.5 July Pro-Organico Ignia Fund Branded Food and Beverage 3.0 July Earthbound Farms HM Capital Partners Branded Food and Beverage June Sunflower Food and Spice Company Advantage Capital Partners Branded Food and Beverage 7.0 June Jamba Juice Mistral Equity Partners & Serruya Family Retail and Distribution 35.0 June Red Mango Diverse Investor Group Retail and Distribution 1.2 June Burcon Diverse Investor Group Ingredients and Contract Manufacturing 17.0 Braemar Energy Ventures, Lightspeed June Solazyme Ingredients and Contract Manufacturing 57.0 Venture Partners, VantagePoint Venture June Polaris SA Seventure Venture of Paris Ingredients and Contract Manufacturing 8.4 June Big Idea Holdings Mindful Investors Branded Food and Beverage 2.0 June Burcon Diverse Investor Group Ingredients and Contract Manufacturing 17.0 June Polaris SA Seventure Venture of Paris Ingredients and Contract Manufacturing 8.4 June Solazyme Diverse Investor Group Ingredients and Contract Manufacturing 57.0 May Sambazon Rustic Canyon/Fontis Partners Branded Food and Beverage April Pinkberry Diverse Investor Group Retail and Distribution 5.8 March Ascenta Health Avrio Ventures Ingredients and Contract Manufacturing 4.0 March Manitoba Harvest Avrio Ventures Ingredients and Contract Manufacturing March Phils Fresh Foods Burrito Investor Group Branded Food and Beverage 2.0 March SinoVeda Canada AVAC Ingredients and Contract Manufacturing 3.0 March Sweet Leaf Tea Nestle Branded Food and Beverage 15.6 Where available, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 62This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Recent Financings 2009 Investment Company Funds Segment (Contd) (US $M) Galam Ltd, Ofer Hi-Tech Investments, Feb. Enzymotec Millennium II Materials Technology Fund Ingredients and Contract Manufacturing 11.0 and Arancia International Feb. Herbal Magic Torquest and Cameron Capital Retail and Distribution Jan. Intermed Discovery Biotropics Malaysia Berhad Ingredients and Contract Manufacturing Where available, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 63This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Recent Financings Investment 2008 Company Funds Segment (US $M) Sherbrooke Capital and Pacific Dec. Adina for Life Branded Food and Beverage 10.4 Community Ventures Dec. Biopharmacopae Design International Inc. Avrio Ventures Ingredients and Contract Manufacturing Dec. Jamba Juice CIC Advantage Holding Retail and Distribution Verlinvest, Bradmer Foods and RSF Dec. Sambazon Branded Food and Beverage Social Finance Nov. US Nutraceuticals EID Parry Ingredients and Contract Manufacturing Oct. Evesse Danisco Ingredients and Contract Manufacturing Oct. Gaia Herbs TBL Capital Branded Food and Beverage 3.0 Aug. GU Sports Adventure Funds Branded Food and Beverage Aug. Next Foods Maveron Branded Food and Beverage 16.0 Aug. Origin BioMed Avrio Ventures OTC 5.1 Aug. Red Mango CIC Partners Retail and Distribution 12.0 July MyChelle Dermaceuticals Encore Consumer Capital Personal Care San Francisco Equity Partners and Simon July Yes to Carrots Personal Care 14.0 Equity Partners June Botaneco Specialty Ingredients Inc. Avrio Ventures Ingredients and Contract Manufacturing 4.0 Sherbrooke Capital and Encore June Ciao Bella Branded Food and Beverage Consumer Capital May Sprouts Farmers Markets Diverse Investor Group Retail and Distribution 22.0 May T he Healthy Beverage Co. Inventages & Whitefish Group Branded Food and Beverage 11.0 April MonaVie TSG Consumer Partners Branded Food and Beverage April Sweet Leaf Tea Catterton Partners Branded Food and Beverage 18.0 Highland Capital Partners, the Highland March Pharmaca Retail and Distribution 20.0 Consumer Fund and Physic Ventures Where available, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 64This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Recent Financings 2008 Investment Company Funds Segment (Contd) (US $M) March Snikiddy D.E. Shaw and Company Branded Food and Beverage 15.0 March T elunapa Pty Ltd. Freedom Nutritional Products Ltd. (FNP) Branded Food and Beverage 5.0 Feb. Organic to Go Inventages Retail and Distribution 10.0 Where available, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 65This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Recent Financings Investment 2007 Company Funds Segment (US $M) Dec. Pinkberry Maveron Retail and Distribution 27.5 DSM Venturing, Capital Resource Nov. Ganeden Ingredients and Contract Manufacturing 12.0 Partners and others Oct. Mix1 Diverse Investor Group Branded Food and Beverage 6.0 Sept. Rustic Crust Inc. SJF Ventures Branded Food and Beverage 1.8 Aug. HerbalScience Nutraceuticals LLC Aisling Capital and W eston Presidio Ingredients and Contract Manufacturing 28.0 Aug. Plum Organics Simon Equity Partners Branded Food and Beverage July Immaculate Baking Dogwood Equity and Sherbrooke Capital Branded Food and Beverage 1.5 Physic Ventures, Dean Foods Co. and June Dreamerz Branded Food and Beverage 10.0 Fonterra Co-operative Group Ltd. Oak Investment Partners, Radar Partners June New Sun Nutrition Branded Food and Beverage 25.0 and Thomas W eisel May Sahale Snacks Palladium Equity Partners Branded Food and Beverage April Agrofrut Competitive Technologies, Inc. Ingredients and Contract Manufacturing 0.8 Aisling Capital, Great Sprit Ventures, April T he Natural Dentist Burrill & Company, Prolog Ventures, and Personal Care Brooke Private Equity March Agraquest Diverse Investor Group Other 14.4 March FoodShouldTasteGood Sherbrooke Capital Branded Food and Beverage March Pharmachem IGI, INC. Branded Supplements 1.5 Feb. NutraCea (Private placement of common stock) Branded Supplements 50.0 Jan. Adina for Life Diverse Investor Group Branded Food and Beverage 5.0 Jan. Blue Horizon Organic Seafood Greenmont Capital Branded Food and Beverage Jan. Honest Tea Stonyfield Farm and Inventages Branded Food and Beverage 12.0 Where available, data is being provided. ©2011 J.H. Chapman Group, L.L.C. 66This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • J.H. Chapman Group, L.L.C. Tap into the exceptional experience of a leading investment banking firm J.H. Chapman Group, L.L.C. Providing advisory services for mergers & acquisitions Specializing in the food, beverage and food ingredient industries – from raw materials/ingredients to consumer products Founded in 1982 Offices and principals in the United States (Chicago) and Europe (Paris) Specialize in transactions $10 - $500 million, with clients ranging from closely held businesses to Fortune 500 corporations Extensive experience representing both sellers and buyers, with most clients in North America & Europe Visit our website (www.jhchapman.com) to view our transactions and track record of success ©2011 J.H. Chapman Group, L.L.C. 67This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.
    • Contact Information J.H. CHAPMAN GROUP, L.L.C® 9700 Higgins Road Suite 630 Rosemont, IL 60018 Telephone: (773) 693-4800 Telefax: (773) 693-6255 www.jhchapman.com Marco V. Galante, Principal, J.H. Chapman Group, will be pleased to respond to questions you may have concerning this information and the services of our group. mgalante@jhchapman.com ©2011 J.H. Chapman Group, L.L.C. 68This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.