-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HZQuAbiHPZE41T8WXSOLFaV7QUXcxnkj8gpvZo543gnS0Tyy0SplIgqU90THHRmQ zbbcQlXC9MWg33H6tLt8lQ== 0000950123-01-501961.txt : 20010509 0000950123-01-501961.hdr.sgml : 20010509 ACCESSION NUMBER: 0000950123-01-501961 CONFORMED SUBMISSION TYPE: SC 13E3 PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20010508 GROUP MEMBERS: DAIRY MART CONVENIENCE STORES INC GROUP MEMBERS: DM ACQUISITION CORP GROUP MEMBERS: DM ASSOCIATES LIMITED PARTNERS GROUP MEMBERS: NEW DM MANAGEMENT ASSOCIATES I GROUP MEMBERS: ROBERT B STEIN JR SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: DAIRY MART CONVENIENCE STORES INC CENTRAL INDEX KEY: 0000721675 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-CONVENIENCE STORES [5412] IRS NUMBER: 042497894 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: SC 13E3 SEC ACT: SEC FILE NUMBER: 005-36859 FILM NUMBER: 1624732 BUSINESS ADDRESS: STREET 1: 210 BROADWAY EAST CITY: CUYAHOGA FALLS STATE: OH ZIP: 44222 BUSINESS PHONE: 2037414444 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: DAIRY MART CONVENIENCE STORES INC CENTRAL INDEX KEY: 0000721675 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-CONVENIENCE STORES [5412] IRS NUMBER: 042497894 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: SC 13E3 BUSINESS ADDRESS: STREET 1: 210 BROADWAY EAST CITY: CUYAHOGA FALLS STATE: OH ZIP: 44222 BUSINESS PHONE: 2037414444 SC 13E3 1 y48742sc13e3.txt SCHEDULE 13E-3 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ SCHEDULE 13E-3 (RULE 13e-3 100) TRANSACTION STATEMENT PURSUANT TO SECTION 13(e) OF THE SECURITIES AND EXCHANGE ACT OF 1934 Dairy Mart Convenience Stores, Inc. - -------------------------------------------------------------------------------- (Name of the Issuer) Dairy Mart Convenience Stores, Inc., Robert B. Stein, Jr., DM Acquisition Corp., DM Associates Limited Partnership, New DM Management Associates I - -------------------------------------------------------------------------------- (Name of Person(s) Filing Statement) Common Stock, par value $0.01 per share - -------------------------------------------------------------------------------- (Title of Class of Securities) 23386030 - -------------------------------------------------------------------------------- (CUSIP Number of Class of Securities) Robert B. Stein, Jr. Chairman of the Board, Chief Executive Office and President. Gregory G. Landry, Chief Financial Officer, Vice President and Assistant Secretary Dairy Mart Convenience Stores, Inc. One Dairy Mart Way 300 Executive Parkway West Hudson, Ohio 44236 Telephone Number: (330) 342-6700 WITH COPIES TO: John M. Gherlein Roland Hlawaty Baker & Hostetler LLP Milbank, Tweed, Hadley & McCloy LLP 3200 National City Center One Chase Manhattan Plaza 1900 E. 9th Street New York, NY 10005 Cleveland, Ohio 44114-3485 (212) 530-5735 (216) 861-7398
- -------------------------------------------------------------------------------- (Name, Address and Telephone Number if Person Authorized to Receive Notices and Communications on Behalf of Person(s) Filing Statement) This statement is filed in connection with (check the appropriate box): a. [X] The filing of solicitation materials or an information statement subject to Regulation 14A, Regulation 14C or Rule 13e-3(c) under the Securities and Exchange Act of 1934. b. [ ] The filing of a registration statement under the Securities Act of 1933. c. [ ] A tender offer. d. [ ] None of the above. Check the following box if the soliciting materials or information statement referred to in checking box (a) are preliminary copies: [X] Calculation of Filing Fee - --------------------------------------------------------------------------------
TRANSACTION VALUATION AMOUNT OF FILING FEE - --------------------------------------------------------------------------------------------- $19,591,138 $3,918.23 - ---------------------------------------------------------------------------------------------
[X] Check box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing. Amount previously paid: $3,918.23 Form or registration no.: Schedule 14A Filing Party: Dairy Mart Convenience Stores, Inc. Date filed: May 7, 2001 2 Pursuant to General Instruction F to Schedule 13e-3, Dairy Mart Convenience Stores, Inc. hereby incorporates by reference its preliminary Proxy Statement with respect to its Special Meeting of its Stockholders being filed with the Commission simultaneously herewith. Reference Sheet and itemized responses in this Transaction Statement refer to portions of the preliminary Proxy Statement incorporated in answers thereto. This Rule 13e-3 Transaction Statement on Schedule 13E-3 (this "Schedule 13E-3") is being filed by: (1) Dairy Mart Convenience Stores, Inc., a Delaware corporation (the "Company"), (2) Dairy Mart Acquisition Corp., a Delaware corporation ("DMAC") and (3) Robert B. Stein, Jr., Chairman, President and Chief Executive Officer of the Company. The preceding persons are collectively referred to herein as the "Filing Persons". This Statement relates to an Agreement and Plan of Merger dated as of March 15, 2001, (the "Merger Agreement"), among the Company and DMAC, pursuant to which DMAC will merge with and into the Company (the "Merger"), with the Company as the surviving entity. In the Merger, each outstanding share of common stock, par value $0.01 per share ("Common Stock"), of the Company will be converted, without any action on the part of the shareholders, into the right to receive $4.50 in cash per share (other than shares held by shareholders who properly demand appraisal rights with respect to such shares). Options and restricted stock awards will be treated as described more fully in the Proxy Statement (as defined below). Any shares of the Company held by the Company, DMAC or Robert B. Stein, Jr. will be canceled without payment being made therefor. Concurrently with the filing of this Schedule 13E-3, the Company is filing with the Securities and Exchange Commission a proxy statement (the "Proxy Statement") under Regulation 14A of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), relating to the special meeting of stockholders of the Company at which the stockholders of the Company will consider and vote upon, among other things, a proposal to approve and adopt the Merger Agreement and authorize the Merger. A copy of the Proxy Statement is attached hereto as Exhibit (a)(1), a copy of the Merger Agreement is attached as Appendix A to the Proxy Statement. All references in this Schedule 13E-3 to Items numbered 1001 through 1016 are references to Items contained in Regulation M-A under the Exchange Act. The information contained in the Proxy Statement, including all annexes thereto, is hereby expressly incorporated herein by reference. All information in, or incorporated by reference in, this Schedule 13E-3 concerning the Company has been supplied by the Company, all information concerning DMAC, DM Associates Limited Partnership, New DM Management Associates I and Robert B. Stein, Jr. has been provided by Robert B. Stein, Jr. As of the date hereof, the Proxy Statement is in preliminary form and is subject to completion or amendment. Capitalized terms used but not defined in this Schedule 13E-3 shall have the meanings given to them in the Proxy Statement. ITEM 1. SUMMARY TERM SHEET. Item 1001 The information contained in the sections of the Proxy Statement entitled "Summary Term Sheet", "Questions and Answers About the Merger" and "Questions and Answers About the Special Meeting" is incorporated herein by reference.
ITEM 2. SUBJECT COMPANY INFORMATION. Item 1002 (a) The information contained in the sections of the Proxy Statement entitled "Summary Term Sheet -- The Companies" and "Who Can Help Answer Your Questions" is incorporated herein by reference.
2 3 (b) The information contained in the section of the Proxy Statement entitled "Information Concerning the Special Meeting -- Record Date and Quorum Requirements" is incorporated herein by reference. (c)-(d) The information contained in the section of the Proxy Statement entitled "Common Stock Market Price and Dividend Information" is incorporated herein by reference. (e) Not applicable. (f) The information contained in the sections of the Proxy Statement entitled "Common Stock Purchase Information -- Purchases by Dairy Mart", "Common Stock Purchase Information -- Purchases by Mr. Stein and DM Associates", "Robert B. Stein, Jr., DM Acquisition Corp. and Other Affiliated Purchasers" and "Common Stock Purchase Information -- Other Parties" is incorporated herein by reference.
ITEM 3. IDENTITY AND BACKGROUND OF FILING PERSONS. Item 1003 (a) The information contained in the sections of the Proxy Statement entitled "Summary Term Sheet -- The Companies", "Current Executive Officers and Directors of Dairy Mart", "Management of Dairy Mart Following the Merger", "Robert B. Stein, Jr., DM Acquisition Corp. and Other Affiliated Purchasers" and "Security Ownership of Certain Beneficial Owners and Management" is incorporated herein by reference. (b) The information contained in the sections of the Proxy Statement entitled "Summary Term Sheet -- The Companies", "Current Executive Officers and Directors of Dairy Mart", "Robert B. Stein, Jr., DM Acquisition Corp. and Other Affiliated Purchasers" and "Management of Dairy Mart Following the Merger" is incorporated herein by reference. (c)(1)-(5) The information contained in the sections of the Proxy Statement entitled "Current Executive Officers and Directors of Dairy Mart", "Robert B. Stein, Jr., DM Acquisition Corp. and Other Affiliated Purchasers" and "Management of Dairy Mart Following the Merger" is incorporated herein by reference.
ITEM 4. TERMS OF THE TRANSACTION. Item 1004 (a)(1) Not applicable. (a)(2) The information contained in the sections of the Proxy Statement entitled "Summary Term Sheet", "Questions and Answers About the Merger", "Information Concerning the Special Meeting", "Special Factors -- Background of the Merger", "Special Factors -- Recommendation of the Special Committee and Board of Directors; Purpose and Reasons for the Merger", "Special Factors -- Purpose of Merger; Reasons for and Structure of the Merger", "Special Factors -- Interests of Certain Persons in the Merger; Certain Dairy Mart Benefit Plans; and Continued Ownership of Dairy Mart After the Merger", "Special Factors -- Transactions Immediately Prior to the Merger", "Special Factors -- Consequences of the Merger" and "Material Federal Income Tax Consequences" is incorporated herein by reference.
3 4 (c) The information contained in the sections of the Proxy Statement entitled "Summary Term Sheet", "Questions and Answers About the Merger", "Information Concerning the Special Meeting -- Voting Agreement", "Special Factors -- Interests of Certain Persons in the Merger; Certain Dairy Mart Benefit Plans; and Continued Ownership of Dairy Mart After the Merger", "Special Factors -- Transactions Immediately Prior to the Merger", "Special Factors -- Consequences of the Merger", "Special Factors -- Plans for Dairy Mart After the Merger", "Merger -- Financing; Source of Funds", "The Merger Agreement", "The Voting Agreement" and "Management of Dairy Mart Following the Merger" is incorporated herein by reference. (d) The information contained in the section of the Proxy Statement entitled "Appraisal Rights" and in Appendix C to the Proxy Statement, "Appraisal Rights Provisions" is incorporated herein by reference. (e) The information contained in the section of the Proxy Statement entitled "Where You Can Find More Information" is incorporated herein by reference. Except as described in such section of the Proxy Statement, the Filing Persons have made no provisions in connection with this transaction to grant unaffiliated security holders access to the respective corporate files of such Filing Persons or to obtain counsel or appraisal services at the expense of such Filing Persons. (f) Not applicable.
ITEM 5. PAST CONTACTS, TRANSACTIONS, NEGOTIATIONS AND AGREEMENTS. Item 1005 (a)(1)-(2) The information contained in the section of the Proxy Statement entitled "Special Factors -- Background of the Merger" and "Robert B. Stein, Jr., DM Acquisition Corp. and Other Affiliated Purchasers" is incorporated herein by reference. (b) The information contained in the sections of the Proxy Statement entitled "Special Factors -- Background of the Merger", "Interests of Certain Persons in the Merger" and "The Merger Agreement" is incorporated herein by reference. (c) The information contained in the sections of the Proxy Statement entitled "Special Factors -- Background of the Merger" "Special Factors -- Purpose of the Merger; Reasons for and Structure of the Merger", "Special Factors -- Interests of Certain Persons in the Merger; Certain Dairy Mart Benefit Plans; and Continued Ownership of Dairy Mart After the Merger" "Special Factors -- Plans for Dairy Mart After the Merger" and "Robert B. Stein, Jr., DM Acquisition Corp. and Other Affiliated Purchasers" is incorporated herein by reference. (d) The information contained in the sections of the Proxy Statement entitled "Summary Term Sheet", "Questions and Answers About the Merger", "Information Concerning the Special Meeting -- Voting Agreement", "Special Factors -- Interests of Certain Persons in the Merger; Certain Dairy Mart Benefit Plans; and Continued Ownership of Dairy Mart After the Merger", "Special Factors -- Transactions Immediately Prior to the Merger", "Special Factors -- Consequences of the Merger", "Special Factors -- Plans for Dairy Mart After the Merger", "Special Factors -- Financing; Source of Funds", "The Merger Agreement" and "The Voting Agreement" is incorporated herein by reference.
4 5 ITEM 6. PURPOSES OF THE TRANSACTION AND PLANS OR PROPOSALS. Item 1006 (b) The information contained in the sections of the Proxy Statement entitled "Summary Term Sheet", "Special Factors -- Consequences of the Mergers", "Special Factors -- Plans for Dairy Mart After the Merger" and "The Merger Agreement" is incorporated herein by reference. (c)(1)-(8) The information contained in the sections of the Proxy Statement entitled "Special Factors -- Background of the Merger", "Special Factors -- Plans for Dairy Mart after the Merger", "Special Factors -- Consequences of the Merger", "The Merger Agreement", "Common Stock Market Price and Dividend Information", "Management of Dairy Mart following the Merger" and "Robert B. Stein, Jr., DM Acquisition Corp. and Other Affiliated Purchasers" is incorporated herein by reference.
ITEM 7. PURPOSES, ALTERNATIVES, REASONS AND EFFECTS. Item 1013 (a)-(c) The information contained in the sections of the Proxy Statement entitled "Special Factors -- Background of the Merger", "Special Factors -- Recommendation of the Special Committee and Board of Directors; Purpose and Reasons for the Merger", "Special Factors -- Benefits and Detriments of the Merger to Dairy Mart and Dairy Mart's Shareholders" and "Special Factors -- Purpose of the Merger; Reasons for and Structure of the Merger" is incorporated herein by reference. (d) The information contained in the sections of the Proxy Statement entitled "Summary Term Sheet", "Questions and Answers About the Merger", "Special Factors -- Recommendation of the Special Committee and Board of Directors; Purpose and Reasons for the Merger", "Special Factors -- Benefits and Detriments of the Merger to Dairy Mart and Dairy Mart's Shareholders", "Special Factors -- Purpose, Reasons and Plans", "Special Factors -- Interests of Certain Persons in the Merger; Certain Dairy Mart Benefit Plans; and Continued Ownership of Dairy Mart After the Merger, "Special Factors -- Consequences of the Merger", "Special Factors -- Plans for Dairy Mart After the Merger" and "Special Factors -- Material Federal Income Tax Consequences" is incorporated herein by reference.
ITEM 8. FAIRNESS OF THE TRANSACTION. Item 1014 (a), (b) The information contained in the sections of the Proxy Statement entitled "Summary Term Sheet -- Voting Agreement", "Special Factors -- Background of the Merger", "Special Factors -- Recommendation of the Special Committee and Board of Directors; Purpose and Reasons for the Merger", "Special Factors -- Benefits and Detriments of the Merger to Dairy Mart and Dairy Mart's Shareholders", "Special Factors -- Opinion of the Financial Advisor for the Special Committee" and "Special Factors -- Purpose of the Merger; Reasons for and Structure of the Merger" is incorporated herein by reference. (c) The information contained in the section of the Proxy Statement entitled "Information Concerning the Special Meeting -- Vote Required" is incorporated herein by reference.
5 6 (d) The information contained in the sections of the Proxy Statement entitled "Questions and Answers About the Merger -- Why Was the Special Committee Formed?", "Special Factors -- Background of the Merger" "Special Factors -- Recommendation of the Special Committee and Board of Directors; Purpose and Reasons for the Merger," and "Special Factors -- Opinion of Financial Advisor for the Special Committee" is incorporated herein by reference. (e) The information contained in the sections of the Proxy Statement entitled "Summary Term Sheet -- Recommendations of Dairy Mart's Board of Directors and the Special Committee" and "Special Factors -- Recommendation of the Special Committee and Board of Directors; Purpose and Reasons for the Merger" is incorporated herein by reference. (f) The information contained in the section of the Proxy Statement entitled "Special Factors -- Background of the Merger" is incorporated herein by reference.
ITEM 9. REPORTS, OPINIONS, APPRAISALS AND NEGOTIATIONS. Item 1015 (a)-(c) The information contained in the sections of the Proxy Statement entitled "Special Factors -- Background of the Merger" and "Special Factors -- Opinion of Financial Advisor for the Special Committee" and in Appendix C to the Proxy Statement is incorporated herein by reference.
ITEM 10. SOURCE AND AMOUNTS OF FUNDS OR OTHER CONSIDERATIONS. Item 1007 (a), (b) The information contained in the section of the Proxy Statement entitled "Merger Agreement" and in Exhibit (d)(1) this Schedule 13E-3 is incorporated herein by reference. (c) The information contained in the sections of the Proxy Statement entitled "Merger Agreement" is incorporated herein by reference. (d)(1)-(2) The information contained in the section of the Proxy Statement entitled "Merger Agreement" and in Exhibit (d)(1) this Schedule 13E-3 is incorporated herein by reference.
ITEM 11. INTEREST IN SECURITIES OF THE SUBJECT COMPANY. Item 1008 (a) The information contained in the sections of the Proxy Statement entitled "Common Stock Purchase Information" and "Security Ownership of Certain Beneficial Owners and Management" is incorporated herein by reference. (b) The information contained in the section of the Proxy Statement entitled "Common Stock Purchase Information -- Recent Transactions" is incorporated herein by reference.
6 7 ITEM 12. THE SOLICITATION OR RECOMMENDATION. Item 1012 (d) The information contained in the sections of the Proxy Statement entitled "Summary Term Sheet -- Transactions Immediately Prior to the Merger", "Summary Term Sheet -- Voting Agreement", "Questions and Answers About the Merger", "Information Concerning the Special Meeting -- Vote Required", "Information Concerning the Special Meeting -- Voting Agreement", "Special Factors -- Background of the Merger", "Special Factors -- Recommendation of the Special Committee and Board of Directors; Purpose and Reasons for the Merger", "Special Factors -- Transactions Immediately Prior to the Merger" and "Voting Agreement" is incorporated herein by reference. (e) The information contained in the section of the Proxy Statement entitled "Special Factors -- Recommendation of the Special Committee and Board of Directors; Purpose and Reasons for the Merger" is incorporated herein by reference.
ITEM 13. FINANCIAL STATEMENTS. Item 1010 (a) The information contained in the section of the Proxy Statement entitled "Selected Historical Consolidated Financial Data" is incorporated herein by reference. In addition, the financial information referenced therein is incorporated herein by reference. (b) Not applicable.
ITEM 14. PERSONS/ASSETS, RETAINED, EMPLOYED, COMPENSATED OR USED. Item 1009 (a), (b) The information contained in the section of the Proxy Statement entitled "Information Concerning the Special Meeting -- Proxy Solicitation" is incorporated herein by reference.
ITEM 15. ADDITIONAL INFORMATION. Item 1011 (b) The information contained in the Proxy Statement, including all appendices thereto, is incorporated herein by reference.
ITEM 16. EXHIBITS. Item 1016 (a)(1) Proxy Statement and Form of Proxy Card, filed with the Securities and Exchange Commission filed with the Securities and Exchange Commission on May 7, 2001. Incorporated by reference to the Schedule 14A filed by Dairy Mart Convenience Stores, Inc. on May 7, 2001. (a)(2) Schedule 14A of Dairy Mart Convenience Stores, Inc. dated March 15, 2001. (b)(1) New senior secured credit facility between Dairy Mart and the banks listed therein.* (c)(1) Fairness Opinion of Morgan, Keegan & Company Inc. dated March 15, 2001 attached as Appendix B to the Proxy Statement.
7 8 (c)(2) Presentation of Morgan, Keegan & Company Inc. to the Special Committee of Board of Directors dated March 9, 2001 and updated March 15, 2001. (d)(1) Agreement and Plan of Merger, dated as of March 15, 2001 between Dairy Mart and DMAC, attached as Appendix A to the Proxy Statement. (e) Not applicable. (f) Section 262 of the Delaware General Corporation Law, attached as Appendix D to the Proxy Statement. (g) Not applicable.
- --------------- * To be filed by amendment 8 9 SIGNATURE After due inquiry and to the best of the undersigned's knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct. May 7, 2001 -------------------------------------- (Date) DAIRY MART CONVENIENCE STORES, INC. By: /s/ GREGORY G. LANDRY ------------------------------------ Gregory G. Landry Executive Vice President DM ASSOCIATES LIMITED PARTNERSHIP By: /s/ ROBERT B. STEIN, JR. ------------------------------------ Robert B. Stein, Jr. Managing Partner DM ACQUISITION CORP. By: /s/ ROBERT B. STEIN, JR. ------------------------------------ Robert B. Stein, Jr. President NEW DM MANAGEMENT ASSOCIATES I By: /s/ ROBERT B. STEIN, JR. ------------------------------------ Robert B. Stein, Jr. Managing Partner The original statement shall be signed by each person on whose behalf the statement is filed or his authorized representative. If the statement is signed on behalf of a person by his authorized representative (other than an executive officer or general partner of the person filing this statement), evidence of the representative's authority to sign on behalf of such person shall be filed with the statement. The name and any title of each person who signs the statement shall be typed or printed beneath his signature. 9 10 EXHIBIT INDEX
EXHIBIT NUMBER - ------- (a)(1) Proxy Statement and Form of Proxy Card, filed with the Securities and Exchange Commission filed with the Securities and Exchange Commission on May 7, 2001. Incorporated by reference to the Schedule 14A filed by Dairy Mart Convenience Stores, Inc. on May 7, 2001. (a)(2) Schedule 14A of Dairy Mart Convenience Stores, Inc. dated March 15, 2001. (b)(1) New senior secured credit facility between Dairy Mart and the banks listed therein.* (c)(1) Fairness Opinion of Morgan, Keegan & Company Inc. dated March 15, 2001 attached as Appendix B to the Proxy Statement. (c)(2) Presentation of Morgan, Keegan & Company Inc. to the Special Committee of Board of Directors dated March 9, 2001 and updated March 15, 2001. (d)(1) Agreement and Plan of Merger, dated as of March 15, 2001 between Dairy Mart and DMAC, attached as Appendix A to the Proxy Statement. (e) Not applicable. (f) Section 262 of the Delaware General Corporation Law, attached as Appendix D to the Proxy Statement. (g) Not applicable.
- --------------- * To be filed by amendment 10 EX-99.C.2 2 y48742ex99-c_2.txt PRESENTATION OF MORGAN, KEEGAN & COMPANY 1 This is Exhibit (c)(2) to 13e3 [DAIRY MART LOGO] PRESENTATION TO THE BOARD OF DIRECTORS MARCH 9, 2001 THE INFORMATION CONTAINED IN THIS INFORMATION PACKAGE SHOULD BE CONSIDERED CONFIDENTIAL AND SHOULD NOT BE USED FOR ANY PURPOSES OTHER THAN THE BOARD OF DIRECTORS' CONSIDERATION OF THIS TRANSACTION. Morgan Keegan & Company, Inc. Investment Banking 50 North Front Street 19th Floor Memphis, TN 38103 (901) 524-4100 2 TABLE OF CONTENTS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- TRANSACTION OVERVIEW................................................................................TAB A METHODOLOGY.........................................................................................TAB B COMPANY OVERVIEW....................................................................................TAB C DAIRY MART FINANCIAL REVIEW.........................................................................TAB D 1. HISTORICAL FINANCIAL PERFORMANCE 2. LIQUIDITY ANALYSIS STOCK TRADING ANALYSIS..............................................................................TAB E VALUATION ANALYSIS..................................................................................TAB F 1. COMPARABLE COMPANY ANALYSIS 2. SELECTED PRECEDENT TRANSACTIONS 3. PREMIUM ANALYSIS VALUATION SUMMARY...................................................................................TAB G APPENDICES..........................................................................................TAB H 1. COMPARABLE COMPANY ANALYSIS - DETAILED 2. SELECTED PRECEDENT TRANSACTIONS ANALYSIS 3. PREMIUM ANALYSIS
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. 3 TAB A TRANSACTION SUMMARY [DAIRY MART LOGO] - -------------------------------------------------------------------------------- An Investor Group led by Mr. Robert B. Stein, Jr. (the "Investor") has proposed to enter into an agreement in principle with Dairy Mart Convenience Stores, Inc. ("Dairy Mart") (the "Agreement"). Pursuant to the Agreement, the Investor will purchase all of the issued and outstanding shares of Dairy Mart (excluding Investor shares) for $4.50 per share in cash.
FULLY-DILUTED COMMON STOCK SHARES OUTSTANDING: - ---------------------------------------------- Dairy Mart's fully-diluted common stock shares outstanding: Common shares outstanding as of February 15, 2001 5,001,204 Options, warrants and grants converted using the treasury method (1) 550,319 ---------- Total fully-diluted common shares outstanding 5,551,523
VALUATION OF THE PROPOSED MERGER - -------------------------------- Dairy Mart's fully-diluted common shares outstanding 5,551,523 Cash merger consideration specified in the draft merger agreement $ 4.50 ----------- IMPLIED EQUITY VALUE OF THE MERGER $ 24,981,854 Net debt outstanding as of December 30, 2000 $128,481,912 ----------- Implied enterprise value of the merger $153,463,766 ============
This equates to enterprise value multiple of 13.1x earnings before interest, depreciation and amortization ("EBITDA") for the latest twelve months ended October 28, 2000 (2). (1) Option and warrant conversion calculations based on $4.50 per share. (2) Excludes non-recurring items. - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 1 4 TAB B METHODOLOGY [DAIRY MART LOGO] - -------------------------------------------------------------------------------- In connection with rendering its opinion, Morgan Keegan, among other things: - - reviewed certain publicly available financial statements and other information of Dairy Mart; - - reviewed certain internal financial statements and other financial and operating data concerning Dairy Mart prepared by management; - - discussed the past and current operations and financial condition and the prospects of Dairy Mart, with senior executives of Dairy Mart; - - reviewed the reported prices and trading activity for Dairy Mart's common stock; - - compared the financial performance of Dairy Mart and the prices and trading activity of Dairy Mart's common stock with that of certain other publicly-traded companies and their securities; - - reviewed the financial terms, to the extent publicly available, of certain other business combinations and other transactions that Morgan Keegan deemed relevant; - - reviewed a draft of the merger agreement; - - performed such other analyses and considered such other factors as Morgan Keegan deemed appropriate; - - assumed no responsibility for independent verification of any of the foregoing information and relied on its being complete and accurate in all material respects; - - forecasts relating to the future financial performance of Dairy Mart were unavailable and, therefore, Morgan Keegan did not undertake a review or analysis of financial projections; and - - Morgan Keegan did not make an independent evaluation or appraisal of the assets or liabilities (contingent or otherwise) of Dairy Mart, nor was Morgan Keegan furnished with any such evaluations or appraisals. - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 2 5 TAB C COMPANY OVERVIEW [DAIRY MART LOGO] - -------------------------------------------------------------------------------- Dairy Mart Convenience Stores, Inc. and its subsidiaries (the "Company" or "Dairy Mart"), based in Hudson, Ohio, operates one of the nation's largest regional convenience store chains. The Company, which was originally founded in 1939, now operates 554 stores in seven primarily Midwestern states including Michigan, Indiana, Ohio, Pennsylvania, Kentucky, Tennessee and North Carolina. 446 of the stores are company-owned and operated and 108 are franchisee-operated. All of the stores operate under the "Dairy Mart" name. Dairy Mart stores offer a comprehensive array of grocery and non-food items that cater to the convenience needs of its customers, including milk, ice cream, groceries, beverages, snack foods, candy, deli products, publications, health and beauty care aids, tobacco products, select highly consumable general merchandise, lottery tickets, money orders and select customer focused services. The Company sells gasoline at 281 locations under the Dairy Mart, Chevron and CITGO brands. The stores are typically located in densely populated, suburban areas on sites which are easily accessible to customers and provide ample parking. Dairy Mart stores are generally free-standing structures which are well-lit and are designed to encourage customers to purchase high profit margin products, such as deli items, coffee, fountain drinks and other fast food items. - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 3 6 TAB D FINANCIAL REVIEW [DAIRY MART LOGO] - -------------------------------------------------------------------------------- HISTORICAL FINANCIAL HIGHLIGHTS (FISCAL 1996 THROUGH THE TWELVE MONTHS ENDED OCTOBER 28, 2000 AS REPORTED) REVENUES FY 1996 - TTM 10/28/00 (000's) [BAR GRAPH]
$800,000 $700,000 $692,375 $600,000 $571,311 $585,746 $501,359 $581,119 $500,000 $477,047 $400,000 $300,000 $200,000 $100,000 $0 1996 1997 1998 1999 2000 TTM 10/28/00
EBITDA FY 1996 - TTM 10/28/00 (000's) [BAR GRAPH]
$25,000 $20,222 $21,233 $21,499 $20,000 $19,455 $15,000 $12,831 $10,000 $9,614 $5,000 $0 1996 1997 1998 1999 2000 TTM 10/28/00
EBIT FY 1996 - TTM 10/28/00 (000's) [BAR GRAPH]
$12,000 $10,981 $10,000 $8,348 $8,613 $8,000 $7,923 $6,000 $4,000 $2,000 $441 $0 1996 1997 1998 1999 2000 TTM 10/28/00 - -$2,000 - -$4,000 -$5,810 - -$6,000 - -$8,000
NET INCOME FY 1996 - TTM 10/28/00 (000's)
$2,000 $25 $0 1996 1997 1998 1999 2000 TTM 10/28/00 -$1,836 -$1,468 -$2,000 -$2,496 -$4,000 -$6,000 -$6,000 -$8,000 - -$10,000 -$11,215 - -$12,000
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 4 7 FINANCIAL REVIEW [DAIRY MART LOGO] - -------------------------------------------------------------------------------- HISTORICAL BALANCE SHEETS IN THOUSANDS (AS REPORTED)
ASSETS - ------------------------------------------------------------------------------------------------------------------------------ As of January 30, 1999 As of January 29, 2000 As of October 28, 2000 ---------------------- ---------------------- ----------------------- Amount % Amount % Amount % ----------- --------- ----------- --------- ----------- ---------- Curent assets: Cash $ 3,367 1.9% $ 7,702 4.2% $ 2,807 1.5% Short-term invesments 2,724 0.0 155 0.0 2,855 0.0 Accounts and notes receivable, net 15,541 0.1 20,499 0.1 17,909 0.1 Inventory 24,293 0.1 34,804 0.2 26,087 0.1 Prepaid expenses 2,324 0.0 1,704 0.0 2,001 0.0 Deferred income taxes 1,520 0.0 2,393 0.0 1,901 0.0 ----------- --------- ----------- --------- ----------- ---------- Total current assets 49,769 0.3 67,257 0.4 53,560 0.3 ----------- --------- ----------- --------- ----------- ---------- Assets held for sale 6,327 0.0 2,392 0.0 0 - Property and Equipment, net 98,829 0.5 110,946 0.6 113,782 0.6 Intangible assets, net 15,452 0.1 14,582 0.1 13,994 0.1 Other assets, net 10,954 0.1 14,622 0.1 17,655 0.1 ----------- --------- ----------- --------- ----------- ---------- Total assets $ 181,331 100.0% $ 209,799 100.0% $ 198,991 100.0% =========== ========= =========== ========= =========== ==========
LIABILITIES & STOCKHOLDER'S EQUITY - ------------------------------------------------------------------------------------------------------------------------------ As of January 30, 1999 As of January 29, 2000 As of October 28, 2000 ---------------------- ---------------------- ----------------------- Amount % Amount % Amount % ----------- --------- ----------- --------- ----------- ---------- Current Liabilities: Current portion of long-term obligations $ 4,056 2.0% $ 3,091 1.5% $ 22,982 11.1% Accounts payable 35,685 0.2 50,916 0.2 46,017 0.2 Accrued expenses 15,378 0.1 11,651 0.1 7,733 0.0 Accrued interest 3,713 0.0 3,490 0.0 1,625 0.0 ----------- --------- ----------- --------- ----------- ---------- Total current liabilities 58,832 0.3 69,148 0.3 78,357 0.4 ----------- --------- ----------- --------- ----------- ---------- Long-term obligations, less current portion 104,451 0.5 120,044 0.6 106,677 0.5 Other liabilities 8,791 0.0 13,738 0.1 13,782 0.1 Stockholder's Equity: Common stock 69 0.0 69 0.0 70 0.0 Paid-in capital 31,999 0.2 32,107 0.2 32,351 0.2 Retained earnings (7,806) (0.0) (10,302) (0.0) (17,241) (0.1) Treasury stock (15,005) (0.1) (15,005) (0.1) (15,005) (0.1) ----------- --------- ----------- --------- ----------- ---------- Total stockholder's equity 9,257 0.0 6,869 0.0 175 0.0 ----------- --------- ----------- --------- ----------- ---------- Total liabilities and stockholder's equity $ 181,331 87.7% $ 209,799 101.5% $ 198,991 96.3% =========== ========= =========== ========= =========== ==========
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 5 8 FINANCIAL REVIEW [DAIRY MART LOGO] - -------------------------------------------------------------------------------- HISTORICAL FISCAL YEAR INCOME STATEMENTS IN THOUSANDS, EXCEPT PER SHARE AND NUMBER OF STORES (AS REPORTED)
For the Fiscal Years Ended ----------------------------------------------------------------- February 3, 1996 February 1, 1997 January 31, 1998 ------------------- ------------------- ------------------ Amount % Amount % Amount % ---------- -------- ---------- -------- ---------- -------- Revenues $ 571,311 100.0% $ 585,746 100.0% $ 501,359 100.0% Cost of goods sold 413,548 72.4 431,767 73.7 364,525 72.7 ---------- -------- ---------- -------- ---------- -------- Gross Profit 157,763 27.6 153,979 26.3 136,834 27.3 Expenses Operating and administrative expenses 157,322 27.5 145,631 24.9 128,221 25.6 Interest expense 9,661 1.7 10,877 1.9 10,612 2.1 ---------- -------- ---------- -------- ---------- -------- Total expenses 166,983 29.2 156,508 26.7 138,833 27.7 ---------- -------- ---------- -------- ---------- -------- Income before income taxes (9,220) (1.6) (2,529) (0.4) (1,999) (0.4) Benefit from (provision for) income taxes 3,220 0.6 693 0.1 531 0.1 ---------- -------- ---------- -------- ---------- -------- Net income (loss) $ (6,000) -1.1% $ (1,836) -0.3% $ (1,468) -0.3% ========== ======== ========== ======== ========== ======== Earnings (loss) per share $ (1.12) $ (0.41) $ (0.31) Weighted Average Shares Outstanding 5,374 4,441 4,749 EBITDA Calculation: EBIT $ 441 0.1% $ 8,348 1.4% $ 8,613 1.7% Plus: Depreciation & Amortization 12,390 2.2 11,874 2.0 10,842 2.2 ------------ ------- ---------- -------- ----------- -------- EBITDA $ 12,831 2.2% $ 20,222 3.5% $ 19,455 3.9% ============ ======= =========== ======== =========== ======== Total Stores: At the beginning of period 961 877 811 Opened or acquired 8 9 7 Closed or sold (92) (75) (191) ------------ ----------- ----------- At the end of period 877 811 627 ============ =========== ===========
For the Fiscal Years Ended --------------------------------------- January 30, 1999 January 29, 2000 ------------------- ------------------ Amount % Amount % ---------- -------- ---------- -------- Revenues $ 477,047 100.0% $ 581,119 100.0% Cost of goods sold 339,308 71.1 435,867 75.0 ---------- -------- ---------- -------- Gross Profit 137,739 28.9 145,252 25.0 Expenses Operating and administrative expenses 126,758 26.6 137,329 23.6 Interest expense 10,806 2.3 11,583 2.0 ---------- -------- ---------- -------- Total expenses 137,564 28.8 148,912 25.6 ---------- -------- ---------- -------- Income before income taxes 175 0.0 (3,660) (0.6) Benefit from (provision for) income taxes (150) (0.0) 1,164 0.2 ---------- -------- ---------- -------- Net income (loss) $ 25 0.0% $ (2,496) -0.4% ========== ======== ========== ======== Earnings (loss) per share $ 0.01 $ (0.51) Weighted Average Shares Outstanding 4,823 4,869 EBITDA Calculation: EBIT $ 10,981 2.3% $ 7,923 1.4% Plus: Depreciation & Amortization 10,252 2.1 13,576 2.3 ----------- -------- ----------- -------- EBITDA $ 21,233 4.5% $ 21,499 3.7% =========== ======== =========== ======== Total Stores: At the beginning of period 627 618 Opened or acquired 25 18 Closed or sold (34) (33) ----------- ----------- At the end of period 618 603 =========== ===========
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 6 9 FINANCIAL REVIEW [DAIRY MART LOGO] - -------------------------------------------------------------------------------- INCOME STATEMENTS FOR THE TWELVE MONTHS ENDED OCTOBER 28, 2000 IN THOUSANDS, EXCEPT PER SHARE INFORMATION (AS REPORTED)
For the Fiscal Year Ended For the Three Fiscal Quarters Ended ------------------------- ----------------------------------------- January 29, 2000 October 30, 1999 October 28, 2000 ------------------------- ------------------- -------------------- Amount % Amount % Amount % -------------- --------- ----------- ------- ------------ ------- Revenues $ 581,119 100.0% $ 438,211 100.0% $ 549,467 100.0% Cost of goods sold 435,867 75.0 328,156 74.9 435,631 79.3 -------------- --------- ----------- ------- ------------ ------- Gross Profit 145,252 25.0 110,055 25.1 113,836 20.7 Expenses Operating and administrative expenses 137,329 23.6 98,624 22.5 116,138 21.1 Interest expense 11,583 2.0 8,058 1.8 9,794 1.8 -------------- --------- ----------- ------- ------------ ------- Total expenses 148,912 25.6 106,682 24.3 125,932 22.9 -------------- --------- ----------- ------- ------------ ------- Income before income taxes (3,660) (0.6) 3,373 0.8 (12,096) (2.2) Benefit from (provision for) income taxes 1,164 0.2 (1,593) (0.4) 5,157 0.9 -------------- --------- ----------- ------- ------------ ------- Net income (loss) $ (2,496) -0.4% $ 1,780 0.4% $ (6,939) -1.3% ============== ========= =========== ======= ============ ======= Earnings (loss) per share $ (0.51) $ 0.36 $ (1.41) Weighted Average Shares Outstanding 4,869 4,946 4,931 EBITDA Calculation: EBIT $ 7,923 1.4% $ 11,431 2.6% $ (2,302) -0.4% Plus: Depreciation & Amortization 13,576 2.3 8,863 2.0 10,711 1.9 -------------- --------- ----------- ------- ------------ ------- EBITDA 21,499 3.7 20,294 4.6 8,409 1.5 Non-recurring items - - - - 2,077 0.4 -------------- --------- ----------- ------- ------------ ------- EBITDA before non-recurring items $ 21,499 3.7% $ 20,294 4.6% $ 10,486 1.9% ============== ========= =========== ======= ============ =======
For the Twelve Months Ended --------------------------- October 28, 2000 --------------------------- Amount % ------------- ----------- Revenues $ 692,375 100.0% Cost of goods sold 543,342 78.5 ------------- ----------- Gross Profit 149,033 21.5 Expenses Operating and administrative expenses 154,843 22.4 Interest expense 13,319 1.9 ------------- ----------- Total expenses 168,162 24.3 ------------- ----------- Income before income taxes (19,129) (2.8) Benefit from (provision for) income taxes 7,914 1.1 ------------- ----------- Net income (loss) $ (11,215) -1.6% ============= =========== Earnings (loss) per share $ (2.28) Weighted Average Shares Outstanding 4,915 EBITDA Calculation: EBIT $ (5,810) -0.8% Plus: Depreciation & Amortization 15,424 2.2 ------------- ----------- EBITDA 9,614 1.4 Non-recurring items 2,077 0.3 ------------- ----------- EBITDA before non-recurring items $ 11,691 1.7% ============= ===========
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 7 10 FINANCIAL REVIEW [DAIRY MART LOGO] - -------------------------------------------------------------------------------- INCOME STATEMENTS FOR THE TWELVE PERIODS ENDING DECEMBER 30, 2000 IN THOUSANDS, EXCEPT FOR NUMBER OF STORES (AS PROVIDED BY DAIRY MART MANAGEMENT)
FY 2000 FY 2000 FY 2001 FY 2001 FY 2001 FY 2001 FY 2001 PERIOD 12 PERIOD 1 PERIOD 2 PERIOD 3 PERIOD 4 PERIOD 5 PERIOD 6 FINANCIAL RESULTS ------------------------------------- Revenues Merchandise 29,015 24,862 25,663 33,032 28,106 28,662 37,562 Franchise Fees 680 553 567 715 588 579 699 QSR 492 437 477 667 591 537 661 Gasoline 25,108 23,250 26,679 33,114 27,924 31,640 34,720 Other Income 1,113 926 940 1,173 966 970 1,656 Total Revenues 56,408 50,028 54,326 68,701 58,175 62,388 75,298 Margin Merchandise 8,088 7,024 7,308 10,255 8,263 8,450 11,312 Franchise Fees 680 553 567 715 588 579 699 QSR 280 273 293 428 357 346 403 Gasoline 2,357 1,519 1,565 2,103 2,055 2,561 2,714 Other Income 1,113 926 940 1,173 966 970 1,656 Total Margin 12,518 10,295 10,673 14,674 12,229 12,906 16,784 Operating Expenses Labor 5,669 4,512 4,636 5,904 4,727 4,684 5,781 Depreciation 2,344 875 857 1,071 913 914 1,032 Rent 1,165 1,294 1,340 1,042 1,361 1,325 1,313 Utilities & Telephone 853 855 864 864 875 912 953 Repairs & Maintenance 647 371 521 529 464 377 607 Gas Commissions 99 89 86 93 119 113 110 All Other 1,801 1,441 1,470 1,850 1,371 1,394 1,562 Total Operating Expenses 12,578 9,437 9,774 11,353 9,830 9,719 11,358 Income Before Administrative Expense (60) 858 899 3,321 2,399 3,187 5,426 and Interest Total General & Administrative 3,294 2,143 2,119 2,889 2,478 2,160 2,292 Earnings Before Taxes & Interest (3,354) (1,285) (1,220) 432 (79) 1,027 3,134 Interest Expense 1,482 990 1,002 1,256 1,046 1,058 1,243 (Gain) / Loss on Disp of F/A 31 (33) 52 5 81 2 1 Pretax Income before Non-Recurring (4,867) (2,242) (2,274) (829) (1,206) (32) 1,889 Non-Recurring Items 472 19 Pretax Income (4,867) (2,242) (2,274) (829) (1,206) (504) 1,871 Income Taxes (1,763) (1,031) (1,049) (382) (657) (231) 956 Net Income $ (3,104) $ (1,211) $ (1,225) $ (447) $ (549) (273) $ 915 ============================================================================================================================== EBITDA $ (797) $ (159) $ (194) $ 1,735 $ 973 $ 1,690 $ 4,390 EBITDA BEFORE NON-RECURRING ITEMS $ (797) $ (159) $ (194) $ 1,735 $ 973 $ 2,161 $ 4,409 ==============================================================================================================================
FY 2001 FY 2001 FY 2001 FY 2001 FY 2001 PERIOD 7 PERIOD 8 PERIOD 9 PERIOD 10 PERIOD 11 TOTALS FINANCIAL RESULTS ------------------------------------- Revenues Merchandise 30,367 26,176 32,071 23,829 29,727 349,072 Franchise Fees 548 541 649 505 623 7,247 QSR 535 503 627 448 517 6,492 Gasoline 25,283 27,156 33,207 26,225 30,597 344,903 Other Income 911 1,048 1,134 985 1,134 12,956 Total Revenues 57,644 55,424 67,688 51,992 62,598 720,670 Margin Merchandise 8,329 7,980 9,458 6,926 8,783 102,176 Franchise Fees 548 541 649 505 623 7,247 QSR 330 303 412 266 328 4,019 Gasoline 1,255 1,698 1,885 1,500 1,803 23,015 Other Income 911 1,048 1,134 985 1,134 12,956 Total Margin 11,373 11,570 13,538 10,182 12,671 149,413 Operating Expenses Labor 4,737 4,640 5,725 4,646 5,783 61,444 Depreciation 877 868 1,091 900 1,306 13,048 Rent 1,381 1,337 1,299 1,337 1,339 15,533 Utilities & Telephone 962 962 933 832 850 10,715 Repairs & Maintenance 519 370 677 409 546 6,037 Gas Commissions 52 98 89 75 83 1,106 All Other 1,331 1,423 1,671 1,386 1,855 18,555 Total Operating Expenses 9,859 9,698 11,485 9,585 11,762 126,438 Income Before Administrative Expense 1,514 1,872 2,053 597 909 22,975 and Interest Total General & Administrative 2,178 2,635 2,503 1,948 2,736 29,374 Earnings Before Taxes & Interest (664) (763) (450) (1,351) (1,827) (6,399) Interest Expense 1,047 1,060 1,299 1,093 1,304 13,880 (Gain) / Loss on Disp of F/A (10) (5) 58 445 (19) 608 Pretax Income before Non-Recurring (1,701) (1,818) (1,807) (2,889) (3,111) (20,887) Non-Recurring Items 99 123 1,364 35 248 2,359 Pretax Income (1,800) (1,941) (3,171) (2,924) (3,359) (23,246) Income Taxes (720) (776) (1,269) (1,170) (1,344) (9,436) Net Income $ (1,080) $ (1,165) $ (1,903) $ (1,754) $ (2,015) $ (13,810) ============================================================================================================================== EBITDA $ 349 $ 208 $ (544) $ (716) (510) $ 6,425 EBITDA BEFORE NON-RECURRING ITEMS $ 448 $ 332 $ 820 $ (681) (262) $ 8,784 ==============================================================================================================================
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY PAGE 8 11 FINANCIAL REVIEW [DAIRY MART LOGO] - -------------------------------------------------------------------------------- BALANCE SHEET AS OF DECEMBER 30, 2000 DOLLARS IN THOUSANDS (PROVIDED BY DAIRY MART MANAGEMENT)
AS OF DECEMBER 30, 2000 -------------------------------- ASSETS Amount % ----------- --------- Current assets: Cash $ - 0.0% Short-term investments 3,180 1.6 Accounts and notes receivable, net 15,560 8.0 Inventory 25,541 13.2 Prepaid expenses and other current assets 1,853 1.0 Deferred income taxes 1,901 1.0 ----------- --------- Total current assets 48,035 24.8 ----------- --------- Assets held for sale - - Property and equipment, net 107,398 55.4 Intangible assets, net 13,865 7.1 Other assets, net 24,623 12.7 ----------- --------- Total Assets $193,921 100.0% =========== ========= LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term obligations $ 25,479 13.1% Accounts payable 41,054 21.2 Accrued expenses 8,210 4.2 Accrued interest 3,114 1.6 ----------- --------- Total current liabilties 77,857 40.1 ----------- --------- Long-term obligations, less current portion 106,183 54.8 Other liabilities 13,415 6.9 Stockholders' equity: Common stock, par value $.01, 30,000 authorized, 6,949 issued 71 0.0 Paid-in capital 32,408 16.7 Retained deficit (21,009) (10.8) Treasury stock, at cost (15,005) (7.7) ----------- --------- Total stockholders' equity (3,535) (1.8) ----------- --------- Total liabilities and stockholders' equity $193,921 100.0% =========== =========
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY PAGE 9 12 FINANCIAL REVIEW [DAIRY MART LOGO] - -------------------------------------------------------------------------------- ACTUAL VS. BUDGET, YTD FISCAL 2001 (THROUGH DECEMBER 30, 2000) AND FISCAL 2001 DOLLARS IN THOUSANDS (PROVIDED BY DAIRY MART MANAGEMENT)
ACTUAL BUDGET BUDGET YTD FISCAL 2001 YTD FISCAL 2001 FISCAL 2001 ----------------------- ----------------------- ------------------------ Amount % Amount % Amount % ----------- ---------- ----------- --------- ----------- ---------- Revenues $ 664,269 100.0% $ 652,776 100.0% $ 725,051 100.0% Cost of Goods Sold 527,280 79.4 504,617 77.3 560,219 77.3 ----------- ---------- ----------- --------- ----------- ---------- Gross Profit 136,989 20.6 148,159 22.7 164,832 22.7 Operating & Administrative Expenses (excluding Depreciation & Amortization) 126,662 19.1 124,821 19.1 137,481 19.0 ----------- ---------- ----------- --------- ----------- ---------- EBITDA (1) $ 10,327 1.6% $ 23,338 3.6% $ 27,351 3.8% =========== ========== =========== ========= =========== ==========
(1) Excludes Other (Gain)/Loss and Non-Recurring Items - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY PAGE 10 13 FINANCIAL REVIEW [DAIRY MART LOGO] - -------------------------------------------------------------------------------- HISTORICAL FINANCIAL PERFORMANCE - - Historical financial information is from the Company's annual and quarterly reports as filed with the Securities and Exchange Commission and internal financial information through December 30, 2000 provided by the Company. BALANCE SHEET FACTORS - - Net Debt of $124.0 million as of October 28, 2000 and $128.5 million as of December 30, 2000. - - As of December 30, 2000, the outstanding balance under the Company's Senior Credit Facility was $20.9 million. In addition, the Company had $87.7 million, net of original issue discount, outstanding in 10.25% senior subordinated notes due March 15, 2004. - - Net property and equipment of $113.8 million as of October 28, 2000 and $107.4 million as of December 30, 2000. INCOME STATEMENT FACTORS REVENUES - - Total revenues for the twelve months ended December 30, 2000 ("LTM 2000") were $720.7 million. - - Total revenues for the twelve months ended October 28, 2000 ("TTM 2000") were $692.4 million. Convenience store revenues increased $16.9 million, or 6.3%, for the first three fiscal quarters compared to the same period for the prior fiscal year, primarily due to a 3.7% increase in comparable convenience store merchandise sales, partially offset by the net reduction of 36 stores during TTM 2000. Gasoline revenues increased $94.4 million for the first three fiscal quarters compared to the same period last year, which consisted of an 18.2% increase in gallons sold and an increase in the average selling price of gasoline of 35.5 cents per gallon. - - Total revenues for the fiscal year ended January 29, 2000 ("Fiscal 2000") increased 8.6% to $581.1 million from $477.0 million for Fiscal 1999. Convenience store revenues increased 15% in Fiscal 2000 compared to Fiscal 1999, primarily due to an 11.5% increase in comparable Company operated store sales. Gasoline revenues increased $60.1 million in Fiscal 2000 compared to Fiscal 1999 as a result of a 19.3% increase in total gallons sold and an increase in average selling price of gasoline of 14.5 cents per gallon. - - Total revenues for the fiscal year ended January 30, 1999 ("Fiscal 1999") decreased 4.9% to $477.0 million from $501.4 million for Fiscal 1998. During Fiscal 1998, the Company sold 156 convenience store and retail gasoline locations in the northeastern United States during Fiscal 1998. Fiscal 1999 revenues increased $17.7 million, or 3.9%, over the unaudited pro forma Fiscal 1998 revenues (excluding historical revenues associated with the assets sold) of $459.3 million, due to a 9.2% increase in comparable Company operated store sales, partially offset by a decrease in the average selling price of gasoline by 16.0 cents per gallon. - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY PAGE 11 14 FINANCIAL REVIEW [DAIRY MART LOGO] - -------------------------------------------------------------------------------- - - Total revenues for the fiscal year ended January 31, 1998 ("Fiscal 1998") decreased 14.4% to $501.4 million from $585.8 million for Fiscal 1997, due to the sale of 156 convenience store and retail gasoline locations in the northeastern United States during Fiscal 1998. Pro forma Fiscal 1998 revenues decreased $12.4 million, from pro forma Fiscal 1997 revenues of $471.7 million, due to a decrease in total gallons sold of 11.1 million and a decrease in the average selling price of gasoline by 3.2 cents per gallon, partially offset by a 3.4% increase in comparable Company operated store sales. - - Total revenues for the fiscal year ended February 1, 1997 ("Fiscal 1997") increased 2.5% to $585.7 million from $571.3 million for Fiscal 1996. Convenience store revenues decreased 1.7% in Fiscal 1997 compared to Fiscal 1996, as a result of the reduction of 75 underperforming stores, partially offset by a 2.9% increase in comparable store sales. Gasoline revenues increased $19.2 million in Fiscal 1997 compared to Fiscal 1996 as a result an increase in average selling price of gasoline of 10.9 cents per gallon, partially offset by a decrease in gasoline gallons sold of 3.4 million. EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") - - EBITDA for LTM 2000 was $6.4 million, with an EBITDA margin of 0.9%. - - EBITDA for TTM 2000 was $9.6 million, with an EBITDA margin of 1.4%. - - During Fiscal 2000, EBITDA increased 1.3% from $21.2 million in Fiscal 1999 to $21.5 million for Fiscal 2000, while EBITDA margin decreased from 4.5% to 3.7%. - - During Fiscal 1999, EBITDA increased 9.1% from $19.5 million in Fiscal 1998 to $21.2 million for Fiscal 1999, while EBITDA margin decreased from 3.9% to 4.5%. - - During Fiscal 1998, EBITDA decreased 3.8% from $20.2 million in Fiscal 1997 to $19.5 million for Fiscal 1998, while EBITDA margin increased from 3.5% to 3.9%. - - During Fiscal 1997, EBITDA increased 57.6% from $12.8 million in Fiscal 1996 to $20.2 million for Fiscal 1997, while EBITDA margin increased from 2.2% to 3.5%. EARNINGS BEFORE INTEREST AND TAXES ("EBIT") - - EBIT for LTM 2000 was -$6.4 million. - - EBIT for TTM 2000 was -$5.8 million. - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY PAGE 12 15 FINANCIAL REVIEW [DAIRY MART LOGO] - -------------------------------------------------------------------------------- - - During Fiscal 2000, EBIT decreased 27.9% from $11.0 million in Fiscal 1999 to $7.9 million for Fiscal 2000, while EBIT margin decreased from 2.3% to 1.4%. - - During Fiscal 1999, EBIT increased 27.5% from $8.6 million in Fiscal 1998 to $11.0 million for Fiscal 1999, while EBIT margin increased from 1.7% to 2.3%. - - During Fiscal 1998, EBIT increased 3.2% from $8.3 million in Fiscal 1997 to $8.6 million for Fiscal 1998, while EBIT margin increased from 1.4% to 1.7%. - - During Fiscal 1997, EBIT increased dramatically from approximately $441,000 in Fiscal 1996 to $8.3 million for Fiscal 1997, while EBIT margin increased from 0.1% to 1.4%. NET INCOME FROM CONTINUING OPERATIONS ("NET INCOME") - - Net Income for LTM 2000 was -$13.8 million. - - Net Income for TTM 2000 was -$11.2 million. - - During Fiscal 2000, Net Income decreased from approximately $25,000 in Fiscal 1999 to -$2.5 million for Fiscal 2000. - - During Fiscal 1999, Net Income increased from -$1.5 million in Fiscal 1998 to approximately $25,000 for Fiscal 1999. - - During Fiscal 1998, Net Income increased from -$1.8 million in Fiscal 1997 to -$1.5 million for Fiscal 1998. - - During Fiscal 1997, Net Income increased from -$6.0 million in Fiscal 1996 to -$1.8 million for Fiscal 1997. - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY PAGE 13 16 TAB D 2 FINANCIAL REVIEW [DAIRY MART LOGO] - -------------------------------------------------------------------------------- LIQUIDITY ANALYSIS - - The Company faces severe liquidity issues. According to cash flow projections provided by management, Dairy Mart will run out of available credit and capital on March 15, 2001. - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY PAGE 14 17 TAB E STOCK TRADING ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [GRAPHIC] 12/12/00 - Dairy Mart announced significantly reduced operating results for its third quarter ended October 28, 2000. The Company also announced the current status of its ongoing effort to review all of its strategic options, including a potential sale of the Company. Robert B. Stein, Jr., the Company's Chairman, President and Chief Executive Officer, is currently pursuing a proposal to acquire the Company. 9/12/00 - Dairy Mart reports Fiscal 2001 Second Quarter results. 6/13/00 - Dairy Mart reports Fiscal 2001 First Quarter results. 5/22/00 - Dairy Mart announces that they have settled the proxy contest. 5/16/00 - Morgan Keegan is hired to explore strategic options, including a possible sale. 5/11/00 - Dairy Mart announces expressions of interest from potential buyers. 4/29/00 - Dairy Mart announces the sale or closure of 246 stores. 4/19/00 - Preliminary proxy statement filed by shareholder group. 4/13/00 - Dairy Mart announces expected loss for fiscal year ended January 29, 2000. - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY PAGE 15 18 STOCK TRADING ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [GRAPHIC] - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY PAGE 16 19 STOCK TRADING ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [GRAPHIC] - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY PAGE 17 20 STOCK TRADING ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [GRAPHIC] - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY PAGE 18 21 STOCK TRADING ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [GRAPHIC] - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY PAGE 20 22 STOCK TRADING ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [GRAPHIC] - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY PAGE 21 23 VALUATION ANALYSIS [DIARY MART LOGO] - -------------------------------------------------------------------------------- COMPARABLE COMPANY ANALYSIS OVERVIEW - - Analyzed certain publicly-traded companies that were deemed to be comparable to the business of Dairy Mart in the scope of business operations. Compared Dairy Mart's financial performance with the performance of the comparable companies for the latest twelve months of publicly available data. - - Derived industry multiples by analyzing the specific comparable company financial information. - - Applied the respective Comparable Company multiples to financial metrics of Dairy Mart for the twelve months ended October 28, 2000 to derive an implied range of equity values and prices per share. - -------------------------------------------------------------------------------- MORGAN KEEGAN & GOMPANY, INC. PAGE 24 24 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [7 ELEVEN LOGO] 7-ELEVEN, INC. ("7-Eleven") operates or franchises convenience store chains including approximately 5,665 7-Eleven convenience stores throughout the U.S. and Canada, as well as 38 other retail locations, operating under the Quik Mart, HIGH'S Dairy Store and Christy's Market brand names. The company's stores carry up to 2,800 items. Area licensees, including Seven-Eleven Japan, operate additional 7-Eleven stores in the US, Guam, Puerto Rico and more than 15 foreign countries. 7-Eleven also has an equity interest in over 270 convenience stores in Mexico. In April 1999, the company changed its corporate name from The Southland Corporation to 7-Eleven, Inc. RECENT NEWS: - - 2/5/01 - 7-Eleven, Inc. and American Express introduced a prepaid 7-Eleven Internet Shopping Card that can be used to make online purchases. - - 1/8/01 - 7-Eleven, Inc. announced the resignation of its chief financial officer, Ezra Shashoua. Mr. Shashoua is leaving the Company to accept a position as executive vice president and chief financial officer of NationsRent, Inc., based in Fort Lauderdale, Fla. [LINE GRAPH] - ------------------------------------------------ Ticker: SE Headquarters: Dallas, TX Stock Price: 10 15/79 Market Cap (000's): $1,067,551 LTM Revenue (000's): $9,309,715 LTM EPS: $0.98 LTM EBITDA (000's): $467,319 EBITDA Multiple: 5.7x - ------------------------------------------------
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 23 25 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [CASEY'S LOGO] CASEY'S GENERAL STORES, INC. (Casey's") operates over 1,000 convenience stores (and franchises an additional 161) under the name Casey's General Store in nine Midwestern states, primarily Iowa, Missouri, and Illinois. The company's stores are primarily located in areas with populations of less than 5,000. Casey's also operates a general warehouse under the name Casey's Distribution Center in Ankeny, Iowa, that distributes grocery and general merchandise items to company-operated and franchised stores. RECENT NEWS: - - 11/7/00 - Info Touch Technologies and Casey's General Stores, Inc. announced that they will commence a 10-store pilot project, which will include the addition of Info Touch Internet kiosks inside Casey's stores. [LINE GRAPH] - ------------------------------------------------ Ticker: CASY Headquarters: Ankeny, IA Stock Price: 12 1/16 Market Cap (000's): $597,915 LTM Revenue (000's): $1,877,297 LTM EPS: $0.84 LTM EBITDA (000's): $117,605 EBITDA Multiple: 6.4x - ------------------------------------------------
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 24 26 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [MARSH LOGO] MARSH SUPERMARKETS, INC. ("Marsh") operates 90 supermarkets and 175 Village Pantry convenience stores in central Indiana and western Ohio. Marsh also owns and operates a specialized convenience store distribution business that serves its Village Pantry stores as well as 1,310 unaffiliated convenience stores in a nine-state area. In addition, Marsh owns and operates a food services division that provides upscale catering, vending, concession, and business cafeteria management services. The company's supermarkets feature an extended line of traditional grocery store items as well as service and specialty departments such as delicatessens, bakeries, prepared foods, prime cut meats, fresh seafood, floral and video rental. The convenience stores offer a broad selection of grocery, bakery, dairy and delicatessen items, including fresh pastry products and sandwiches prepared in the stores. RECENT NEWS: - - 11/10/00 - Marsh Supermarkets Inc. and LoBill Foods store locations announced that they have voluntarily removed all products containing phenylpropanolamine PPA from their store shelves following the Food and Drug Administration's warning concerning the use of PPA. This drug is widely used as a nasal decongestant (in over-the-counter and prescription drug products) and for weight control (in over-the-counter drug products). [LINE GRAPH] - ------------------------------------------------ Ticker: MARSA Headquarters: Indianapolis, IN Stock Price: 16 Market Cap (000's): $124,348 LTM Revenue (000's): $1,908,760 LTM EPS: $1.38 LTM EBITDA (000's): $74,970 EBITDA Multiple: 4.7x - ------------------------------------------------
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 25 27 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [THE PANTRY LOGO] THE PANTRY, INC. ("The Pantry") operates convenience stores in the southeast region of the United States. The Company operates approximately 1,266 convenience stores under the names The Pantry, Lil' Champ, Quick Stop, Depot, Food Chief, Express Stop, Dash N, Smokers Express, ETNA and Sprint located throughout North and South Carolina, Florida, western Kentucky, Tennessee, Virginia, southern Indiana and Georgia. RECENT NEWS: - - 1/31/01 - The Pantry, Inc. reported that it has completed the previously announced acquisition of 11 East Coast Oil Corporation convenience stores. - - 12/22/00 - The Pantry, Inc. announced that it has completed its acquisition of 26 Fast Lane convenience stores from R.R. Morrison and Son, Inc. - - 9/18/00 - The Pantry, Inc. announced that it has successfully completed the acquisition of 18 new convenience stores located in Jackson, Mississippi. - - 7/3/2000 - The Pantry announces that is has successfully completed the acquisition of fourteen South Carolina-based convenience stores operating under the MiniMart trade name from Oates Oil Company. The Pantry also announced that on June 29, it completed the acquisition of a chain of nineteen Mississippi-based convenience stores from Tip Top Convenience Stores, Inc. [LINE GRAPH] - ------------------------------------------------ Ticker: PTRY Headquarters: Sanford, NC Stock Price: 10 Market Cap (000's): $181,115 LTM Revenue (000's): $2,526,446 LTM EPS: $0.72 LTM EBITDA (000's): $132,394 EBITDA Multiple: 5.3x - ------------------------------------------------
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 26 28 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [UNI-MART LOGO] UNI-MARTS, INC. ("Uni-Marts") is an operator of convenience stores and discount tobacco stores. The company operates approximately 234 convenience stores and 22 Choice Cigarette Discount Outlets stores in Pennsylvania, New York, Delaware, Maryland and Virginia, of which 182 convenience stores and 12 Choice stores sell gasoline. Typically, the stores offer over 2,500 popular consumer items. RECENT NEWS: - - 4/24/2000 - Uni-Marts announces the completion of the acquisition of 43 convenience stores and related petroleum dispensing stations, located in northeastern Pennsylvania, from Orloski Service Station, Inc. [LINE GRAPH] - ------------------------------------------------ Ticker: UNI Headquarters: State College, PA Stock Price: 2 1/20 Market Cap (000's): $14,433 LTM Revenue (000's): $388,081 LTM EPS: $0.16 LTM EBITDA (000's): $15,753 EBITDA Multiple: 5.7x - ------------------------------------------------
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 27 29 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [GIANT LOGO] GIANT INDUSTRIES, INC. and its subsidiaries ("Giant") refines and markets petroleum products in New Mexico, Arizona, Colorado, and Utah, with a concentration in the Four Corners area. Giant owns and operates two refineries in Gallup and Bloomfield, New Mexico, with a combined throughput capacity of approximately 44,600 barrels of crude oil and natural gas liquids per day. Giant also sells gasoline, diesel fuel, and merchandise to the general public through 172 retail service station/convenience stores and a travel center in the Four Corners area. In addition, Giant distributes gasoline, diesel fuel, and various lubricants to industrial and commercial accounts. RECENT NEWS: - - 07/26/00 - Giant Industries Inc. reports Letter of Intent to acquire an interest in El Paso, Texas Refining Assets. Giant also announced that it had begun a process to evaluate the economic and strategic value of its service station/convenience store chain and, pending the results of a detailed review, it may offer selected retail units for sale. [LINE GRAPH] - ------------------------------------------------ Ticker: GI Headquarters: Scottsdale, AZ Stock Price: 7 9/10 Market Cap (000's): $71,228 LTM Revenue (000's): $1,010,390 LTM EPS: $0.67 LTM EBITDA (000's): $64,445 EBITDA Multiple: 4.6x - ------------------------------------------------
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 28 30 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [TOSCO LOGO] TOSCO CORPORATION ("Tosco") is one of the nation's largest independent oil refiners and petroleum marketers. The company operates eight refineries in California, New Jersey, Pennsylvania, and Washington, which together are capable of processing some 950,000 barrels of crude oil, feedstocks, and blendstocks per day into a variety of petroleum products, chiefly light transportation fuels (gasoline, diesel, and jet fuel) and heating oil. The company also operates over 5,000 retail marketing locations under the BP, Exxon, 76, and Circle K names, which sell some 4.5 billion gallons of fuel annually. RECENT NEWS: - - 2/4/01 - Tosco Corporation announced that Phillips Petroleum Company has agreed to purchase Tosco in a $7 billion stock transaction. - - 1/10/01 - Sunoco, Inc. announced that it has signed a letter of intent to sell its Kendall motor oil brand, and the customer lists and other related assets for both the Sunoco and Kendall brand labels to Tosco Corporation. [LINE GRAPH] - ------------------------------------------------ Ticker: TOS Headquarters: Stamford, CT Stock Price: 34 25/41 Market Cap (000's): $5,154,276 LTM Revenue (000's): $21,287,100 LTM EPS: $2.75 LTM EBITDA (000's): $1,216,900 EBITDA Multiple: 6.3x - ------------------------------------------------
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 29 31 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- [ULTRAMAR DIAMOND SHAMROCK LOGO] ULTRAMAR DIAMOND SHAMROCK CORP. is an independent refiner and marketer of high-quality refined products and convenience store merchandise in the central and southwest regions of the United States, and the northeast United States and eastern Canada. The Company's operations consist of refineries, convenience stores, pipelines and terminals, a home heating oil business, and related petrochemical and natural gas liquids operations. The Company owns and operates six refineries strategically located near its key markets. In the United States, the Company markets refined products and a broad range of convenience store merchandise under the Diamond Shamrock, Beacon, Ultramar, and Total brand names through a network of approximately 3,800 convenience stores. In the Northeast, the Company markets refined products through approximately 1,200 convenience stores and 82 cardlocks, and operates a retail home heating oil. RECENT NEWS: - - 10/4/2000 - UDS announces the completion of the purchase of 23 retail outlets and the branded wholesale business of Valley Shamrock in McAllen, Texas. Terms of the sale were not disclosed. - - 8/31/2000 - UDS announces the completion of the purchase of Tosco's Avon refinery. [LINE GRAPH] - ------------------------------------------------ Ticker: UDS Headquarters: San Antonio, TX Stock Price: 38 3/25 Market Cap (000's): $3,386,972 LTM Revenue (000's): $16,187,500 LTM EPS: $4.02 LTM EBITDA (000's): $961,000 EBITDA Multiple: 5.4x - ------------------------------------------------
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 30 32 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- COMPARABLE COMPANY ANALYSIS - SUMMARY (DETAILED ANALYSIS IS INCLUDED AS APPENDIX 1) (Dollars in thousands except per share values)
- ----------------------------------------------------------------------------------------------------------------- COMPARABLE COMPANY ANALYSIS - ----------------------------------------------------------------------------------------------------------------- BASED ON TTM (10/28/00) RESULTS ------------------------------------------------------------- Implied Implied Implied Median Enterprise Equity Share Multiples TTM Value Value Value ------------------------------------------------------------- CONVENIENCE STORE OPERATORS Revenues 0.3x $ 692,375 $ 194,098 $ 70,101 $ 12.63 EBITDA 5.7x 11,691 66,690 NM NM EBIT 9.7x (5,810) NM NM NM Net Income 12.4x (11,215) NM NM NM Tangible Book Value/Share 1.3x (13,819) NM NM NM SELECTED REFINERS AND MARKETERS Revenues 0.3x $ 692,375 $ 222,016 $ 98,019 $ 17.66 EBITDA 5.4x 11,691 63,147 NM NM EBIT 8.7x (5,810) NM NM NM Net Income 11.7x (11,215) NM NM NM Tangible Book Value/Share 2.0x (13,819) NM NM NM - ----------------------------------------------------------------------------------------------------------------- Net Debt $ 123,997 Shares Outstanding 5,552
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 31 33 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- COMPARABLE COMPANY ANALYSIS CONCLUSION - - Morgan Keegan determined the market value and the adjusted market value of each comparable company and calculated trading multiples based on revenue, EBITDA, EBIT, net income and tangible book value. - - Trading multiples of the comparable company group as a whole were deemed more meaningful than multiples of any particular company. - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 32 34 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- SELECTED PRECEDENT TRANSACTIONS ANALYSIS OVERVIEW - - Searched selected databases and public filings for valuation data on mergers and acquisitions involving companies comparable to Dairy Mart. - - Identified those transactions with available financial information that were deemed most relevant. - - Derived valuation multiples by comparing the prices paid in these transactions to Dairy Mart's financial information for the last twelve months. - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 33 35 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- SELECTED PRECEDENT TRANSACTIONS ANALYSIS - SUMMARY (DETAILED ANALYSIS IS INCLUDED AS APPENDIX 2) (Dollars in thousands except per share values)
- ----------------------------------------------------------------------------------------------------------------- COMPARABLE COMPANY ANALYSIS - ----------------------------------------------------------------------------------------------------------------- BASED ON TTM (10/28/00) RESULTS ------------------------------------------------------------- Implied Implied Implied Median Enterprise Equity Share Multiples TTM Value Value Value ------------------------------------------------------------- Revenues 0.6x $ 692,375 $ 439,414 $ 315,417 $ 56.82 EBITDA 6.9x 11,691 80,997 NM NM EBIT 9.8x (5,810) NM NM NM Net Income 14.0x (11,215) NM NM NM Book Value 2.2x (13,819) NM NM NM - ----------------------------------------------------------------------------------------------------------------- Net Debt $ 123,997 Shares Outstanding 5,552
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 34 36 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- SELECTED PRECEDENT TRANSACTIONS ANALYSIS CONCLUSION - - Transaction multiples vary for many reasons including: - Differences in pre-transaction operating performance; - Other hidden or intangible assets not apparent in historical operating performance; - Non-disclosed addbacks; and - Other deal specific factors. - - Undisclosed convenience store transactions involving quality companies are generally being completed at approximately 6.0x LTM EBITDA. - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 35 37 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- PREMIUM ANALYSIS OVERVIEW - - Analyzed the premiums paid for completed retail mergers and acquisitions of publicly-traded companies million since January 1, 1999. - - Analyzed the premiums paid for completed non-financial institution and non-technology mergers and acquisitions of publicly-traded companies with total consideration between $25 million and $250 million since January 1, 1999. - - Analyzed the premiums paid for completed non-financial institution and non-technology mergers and acquisitions of publicly-traded companies with total consideration between $25 million and $250 million since January 1, 1999 where cash was the principal form of consideration. - - Analyzed the premiums paid over the target's stock price one day, one week and one month prior to the announcement date of May 11, 2000 that the Company was analyzing strategic alternatives including a sale. Also analyzed these premiums against the closing price on March 7, 2001. - - Compared these premiums to the premium offered pursuant to the transaction. - - Derived an implied price per share based on the median premiums paid in these transactions. - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 36 38 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- PREMIUM ANALYSIS - SUMMARY (DETAILED ANALYSIS IS INCLUDED AS APPENDIX 4)
- ------------------------------------------------------------------------------------------------------------------ 1 DAY 1 WEEK 4 WEEKS PRIOR TO PRIOR TO PRIOR TO DECEMBER 12, 2000 MARCH 7, 2001 ANN. DATE ANN. DATE ANN. DATE DAIRY MART CLOSING PRICE 2 1/4 2 5/8 2 13/16 3 13/16 $2.70 - ------------------------------------------------------------------------------------------------------------------
ALL COMPLETED RETAIL INDUSTRY TRANSACTIONS SINCE 1/1/99 ------------------------------------------------- MEDIAN 24.0 % 42.9 % 44.9 % ------------------------------------------------- - ------------------------------------------------------------------------------- Implied Price per Share $ 2.79 $ 3.75 $ 4.08 - -------------------------------------------------------------------------------
ALL COMPLETED NON-FINANCIAL INSTITUTION AND NON-TECHNOLOGY TRANSACTIONS WITH TOTAL CONSIDERATION BETWEEN $25 MILLION AND $250 MILLION SINCE 1/1/99 ------------------------------------------------- MEDIAN 29.1 % 35.3 % 45.4 % ------------------------------------------------- - ------------------------------------------------------------------------------- Implied Price per Share $ 2.91 $ 3.55 $ 4.09 - -------------------------------------------------------------------------------
ALL COMPLETED NON-FINANCIAL INSTITUTION TRANSACTIONS WITH TOTAL CONSIDERATION BETWEEN $25 MILLION AND $250 MILLION SINCE 1/1/99 (CASH ONLY CONSIDERATION) ------------------------------------------------- MEDIAN 28.3 % 35.2 % 44.0 % ------------------------------------------------- - ------------------------------------------------------------------------------- Implied Price per Share $ 2.89 $ 3.55 $ 4.05 - -------------------------------------------------------------------------------
THE OFFER PRICE OF $4.50 PER SHARE REPRESENTS A PREMIUM OF: 66.7% to the closing price on March 7, 2001; 100.0% to the closing price on May 10, 2000, 1 day before the announcement that the Company was analyzing strategic alternatives, including a sale; 71.4% to the closing price one week prior to the announcement date; 60.0% to the closing price four weeks prior to the announcement date; and 18.0% to the closing price on December 12, 2000, the day that the Company announced that Robert B. Stein, Jr. was pursuing a transaction. - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 37 39 VALUATION ANALYSIS [DAIRY MART LOGO] - -------------------------------------------------------------------------------- SUMMARY OF VALUATION The preparation of a fairness opinion is a complex process and is not necessarily susceptible to partial analysis or summary description. Morgan Keegan believes that its analyses must be considered as a whole and that selecting portions of its analyses and of the factors considered by it, without considering all analyses and factors, could create a misleading view of the processes underlying the Morgan Keegan opinion. No company or transaction used in the analysis performed by Morgan Keegan as a comparison is identical to Dairy Mart or the contemplated merger. In addition, Morgan Keegan may have given various analyses more or less weight than other analyses, and may have deemed various assumptions more or less probable than other assumption, so that the range of valuation resulting from any particular analysis described below should not be take to be Morgan Keegan's view of the actual value of Dairy Mart. The following table sets forth the indicated ranges of exchange ratios as outlined in the previous analyses.
- --------------------------------------------------------------------------------------------------------------------------------- VALUATION METHOD IMPLIED PRICE PER SHARE - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- COMPARABLE COMPANY ANALYSIS Convenience Store Operators NM to $12.63 Selected Refiners and Marketers NM to $17.66 - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- SELECTED PRECEDENT TRANSACTIONS ANALYSIS NM to $56.82 - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- PREMIUM ANALYSIS Retail Industry Transactions since 1/1/199 $2.79 to $4.08 All Completed Non-Financial and Non-Technology Transactions with Total Consideration between $25 million and $250 million since 1/1/99 $2.91 to $4.09 All Completed Non-Financial and Non-Technology Transactions with Total Consideration between $25 million and $250 million since 1/1/99 (Cash Only Considerations) $2.89 to $4.05 - ---------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. PAGE 38 40 APPENDIX 1 [DAIRY MART LOGO] - -------------------------------------------------------------------------------- COMPARABLE COMPANIES - DETAILED SCHEDULES - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. APPENDIX 1 41 DAIRY MART CONVENIENCE STORES MORGAN KEEGAN & COMPANY, INC. COMPARABLE COMPANY ANALYSIS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) - --------------------------------------------------------------------------------
SHARE 52-WEEK RANGE COMPANY / PRICE -------------------- SHARES MARKET NET LATEST FINANCIALS TICKER 3/7/01 HIGH LOW OUTST. VALUE DEBT (1) - ---------------------------------------- ------ -------- -------- --------- ---------- ----------- ---------- CONVENIENCE STORE OPERATORS - ---------------------------------------- 7-Eleven, Inc (5) SE 10 15/79 21 1/4 8 104,765 1,067,551 1,598,229 9/30/00 Casey's General Stores CASY 12 1/16 15 7 15/16 49,568 597,915 154,307 10/31/00 Marsh Supermarkets MARSA 15 17 13 5/8 8,290 124,348 226,909 1/6/01 Pantry, Inc PTRY 10 15 3/8 7 18,111 181,115 527,142 12/28/00 Uni-Marts (6) UNI 2 1/20 4 1/4 1 3/8 7,040 14,433 76,085 1/4/01 SELECTED REFINERS AND MARKETERS - ---------------------------------------- Giant Industries (7) GI 7 9/10 10 1/2 5 1/8 9,016 71,228 227,690 9/30/00 Tosco Corp. (8) TOS 34 25/41 43 6/25 25 7/8 148,924 5,154,276 2,515,300 9/30/00 Ultramar Diamond Shamrock (9) UDS 38 3/25 37 19/20 21 7/8 88,850 3,386,972 1,803,700 9/30/00 - -------------------------------------------------------------------------------------------------------------------------------- CURRENT MARKET VALUATION (REPORTED FINANCIALS) DAIRY MART CONVENIENCE STORES (10) DMC 2 3/5 5 15/16 1 5/8 4,999 12,999 123,997 10/28/00 CURRENT MARKET VALUATION (INTERNAL FINANCIALS) DAIRY MART CONVENIENCE STORES (11) DMC 2 3/5 5 15/16 1 5/8 5,552 14,434 131,662 12/30/00 - -------------------------------------------------------------------------------------------------------------------------------- LATEST TWELVE MONTHS' (3) ---------------------------------------------------------------- ADJUSTED COMPANY / MARKET NET BOOK LATEST FINANCIALS VALUE (2) SALES EBITDA EBIT INCOME VALUE - ---------------------------------------- ----------- ---------- -------- ------- -------- ------- CONVENIENCE STORE OPERATORS - ---------------------------------------- 7-Eleven, Inc (5) 2,665,780 9,309,715 467,319 237,794 115,450 67,786 9/30/00 Casey's General Stores 752,222 1,877,297 117,605 77,506 41,688 336,792 10/31/00 Marsh Supermarkets 351,257 1,908,760 74,970 43,850 13,491 136,734 1/6/01 Pantry, Inc 708,257 2,526,446 132,394 74,415 13,628 (150,746) 12/28/00 Uni-Marts (6) 90,518 388,081 15,753 8,555 1,165 21,424 1/4/01 SELECTED REFINERS AND MARKETERS - ---------------------------------------- Giant Industries (7) 298,918 1,010,390 64,445 30,657 6,086 106,492 9/30/00 Tosco Corp. (8) 7,669,576 21,287,100 1,216,900 882,200 427,326 1,868,000 9/30/00 Ultramar Diamond Shamrock (9) 5,190,672 16,187,500 961,000 711,800 349,830 1,727,300 9/30/00 - -------------------------------------------------------------------------------------------------------------------------------- CURRENT MARKET VALUATION (REPORTED FINANCIALS) DAIRY MART CONVENIENCE STORES (10) 136,996 692,375 11,691 (5,810) (11,215) (13,819) 10/28/00 CURRENT MARKET VALUATION (INTERNAL FINANCIALS) DAIRY MART CONVENIENCE STORES (11) 146,096 720,670 8,784 (6,399) (13,810) (17,400) 12/30/00 - -------------------------------------------------------------------------------------------------------------------------------- EPS ------------------------------------- COMPANY / 2000 CAL 2001 CAL 2002 CAL LATEST FINANCIALS LTM ACT. EST. (4) EST. (4) - ---------------------------------------- ----- -------- -------- --------- CONVENIENCE STORE OPERATORS - ---------------------------------------- 7-Eleven, Inc (5) $0.98 $0.87 $0.98 $1.13 9/30/00 Casey's General Stores $0.84 $0.82 $0.98 NA 10/31/00 Marsh Supermarkets $1.38 $1.39 $1.41 NA 1/6/01 Pantry, Inc $0.72 $0.71 $1.08 $1.29 12/28/00 Uni-Marts (6) $0.16 $0.13 NA NA 1/4/01 SELECTED REFINERS AND MARKETERS - ---------------------------------------- Giant Industries (7) $0.67 $1.15 NA NA 9/30/00 Tosco Corp. (8) $2.75 $3.39 $3.71 $3.39 9/30/00 Ultramar Diamond Shamrock (9) $4.02 $4.93 $4.90 $4.40 9/30/00 - ------------------------------------------------------------------------------------------ CURRENT MARKET VALUATION (REPORTED FINANCIALS) DAIRY MART CONVENIENCE STORES (10) ($2.28) NA NA NA 10/28/00 CURRENT MARKET VALUATION (INTERNAL FINANCIALS) DAIRY MART CONVENIENCE STORES (11) ($2.76) NA NA NA 12/30/00 - ------------------------------------------------------------------------------------------
================================================================================ (1) Short-term debt, long-term debt (including capitalized lease obligations), and preferred stock minus cash and marketable securities. (2) Market value of equity plus net debt. (3) Income statement data excludes extraordinary items. (4) Mean estimates obtained from First Call. (5) Adjusted for a 1:5 stock split on May 1, 2000. (6) Excludes $159,770 for the provision for asset impairment in 2000. (7) Excludes a $2.4 million loss on the write-off of assets in 1999. (8) Excludes $43.1 million in Avon Refinerty start-up costs, a $2.1 million restructuring recovery, a $240 million inventory recovery and a $40.5 million gain on the sale of retail assets in non-core markets in 1999. Also excludes a $20 million gain on the sale of the Avon Refinery during the nine months ended September 30, 2000. Share price is as of 2/2/01, prior to the announcement of a proposed acquisition by Phillips Petroleum Co. (9) Excludes $8.2 million of restructuring and other non-recurring expenses in 1999. (10) EBITDA excludes non-recurring items as provided by Dairy Mart Management. (11) Internal financial information provided by Dairy Mart Management. EBITDA excludes non-recurring items. 42 APPENDIX 2 [DAIRY MART LOGO] - -------------------------------------------------------------------------------- SELECTED PRECEDENT TRANSACTIONS ANALYSIS - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. APPENDIX 2 43 DAIRY MART CONVENIENCE STORES, INC. - -------------------------------------------------------------------------------- MERGERS & ACQUISITIONS ANALYSIS (Dollars in Millions)
EQUITY ANNOUNCED EFFECTIVE SELLER BUYER VALUE - ------------ ------------ ------------------------------------ ----------------------------------------------- ------------ 15-Feb-01 VICORP Restaurants Inc Investor Group $174.24 5-Feb-01 Tosco Corporation Phillips Petroleum 6728.55 14 Dec 00 NPC International Inc O Gene Bicknell $249.05 16 Nov 00 Il Fornaio America Corp Bruckmann Rosser Sherrill & Co $93.00 06 Oct 00 20 Dec 00 Taco Cabana Inc Carrols Corp $105.25 5-Jun-00 Buffets Inc Caxton-Iseman Capital Inc $575.84 1-Jun-00 15-Nov-00 Travelcenters of America Oak Hill Capital Partners $731.0 24 Nov 99 24 Nov 99 Kangaroo Inc The Pantry Inc 46 9-Nov-99 29-Dec-99 Advantica Restaurant Group Inc American Securities Capital Partners LP $114.00 21 Jun 99 22 Jul 99 R&H Maxxon Inc The Pantry Inc 35.809 13-Aug-99 13-Aug-99 Sbarro Inc Private Group $592.41 8-Jun-99 16-Jul-99 La Salsa Holding Co Santa Barbara Restaurant Group Inc $13.13 19-Mar-99 16-Aug-99 Rock Bottom Restaurants Inc Private Group $80.46 9-Mar-99 9-Mar-99 Pathmark Stores Koninklijke Ahold NV 250 29-Jan-99 10-Aug-99 Rally's Hamburgers Inc Checkers Drive-In Restaurants Inc $49.31 28-Jan-99 28-Jan-99 Taylor Oil Company The Pantry, Inc. 22.85 11-Dec-98 16-Feb-99 Logan's Roadhouse Inc CBRL Group Inc $172.78 3-Dec-98 5-Apr-99 Back Bay Restaurant Group Inc SRC Holdings Inc/Private Group $35.47 30-Nov-98 1-Oct-99 Miami Subs Corp Nathan's Famous Inc $4.64 13-Oct-98 20-Nov-98 Dominick's Supermarkets, Inc. Safeway Inc 1200 28-Sep-98 5-Nov-98 Express Stop The Pantry, Inc. 20.28 18-Sep-98 25-Jan-99 Spaghetti Warehouse Inc Cracken Harkey Street & Hartnett LLC $45.30 06 Aug 98 16 Apr 99 Carr-Gottstein Foods Co Safeway Inc $110.00 03 Aug 98 24 Jun 99 American Stores Company Albertson's Inc $9,027.36 4-Jun-98 21-Jul-98 Pollo Tropical Inc Carrols Corp $90.81 23-Apr-98 28-May-98 Morrison Restaurants Inc Piccadilly Cafeterias Inc $46.17 3-Apr-98 21-Jun-98 Bertucci's Inc NE Restaurant Corp $87.46 20 Jan 98 05 Oct 98 Buttrey Food and Drug Stores Co Albertson's Inc $139.25 ASSUMED ADJUSTED LAST TWELVE MONTHS NET MARKET ----------------------------------------------------------------------- ANNOUNCED DEBT VALUE REVENUE EBIT EBITDA NET INCOME BOOK VALUE - ------------ ------------ ------------- ---------------- ---------- ---------- ------------- ------------- 15-Feb-01 ($8.20) $166.04 $375.34 $24.84 42.68 14.79 130.73 5-Feb-01 2,515.30 $9,243.85 21,287.10 882.20 1,216.90 500.37 1,868.00 14 Dec 00 $190.14 $439.19 $480.96 $46.18 74.86 21.51 164.12 16 Nov 00 ($4.40) $88.60 $117.38 $4.63 8.83 3.46 45.79 06 Oct 00 $43.35 $148.59 $163.49 $15.68 24.74 21.70 43.00 5-Jun-00 $41.50 $617.34 $961.76 $75.32 118.34 45.59 303.69 1-Jun-00 482.39 $1,213.39 1,640.61 35.58 92.70 (0.17) 22.44 24 Nov 99 $3.87 $49.87 $111.86 $1.89 3.76 1.45 10.21 9-Nov-99 $14.00 $128.00 $138.90 24.50 21 Jun 99 $13.80 $49.61 $118.29 $5.53 8.73 2.84 15.78 13-Aug-99 ($146.07) $446.34 $372.54 $57.87 80.60 39.14 263.88 8-Jun-99 $5.60 $18.73 $32.45 $0.10 1.85 (354.00) (21.31) 19-Mar-99 $23.46 $103.91 $160.10 $11.23 20.03 5.98 65.42 9-Mar-99 $1,462.58 $1,712.58 $3,694.87 $123.33 212.33 (31.23) (1,127.46) 29-Jan-99 $63.78 $113.09 $144.95 ($0.62) 9.77 (7.54) 36.63 28-Jan-99 ($0.01) $22.84 $110.45 $3.98 5.97 3.98 8.94 11-Dec-98 ($0.05) $172.73 $90.27 $12.31 16.87 8.40 78.80 3-Dec-98 $3.67 $39.14 $97.33 $4.10 8.32 2.53 28.81 30-Nov-98 $1.78 $6.42 $22.47 $1.09 2.52 0.78 16.56 13-Oct-98 $623.46 $1,823.46 $2,426.77 $103.68 171.12 (58.41) 135.97 28-Sep-98 ($0.46) $19.82 $51.11 $2.70 3.51 2.67 2.70 18-Sep-98 $4.50 $49.79 $66.03 $2.25 6.07 1.19 47.20 06 Aug 98 $207.96 $317.96 $601.87 $31.43 49.81 2.12 27.46 03 Aug 98 $3,437.19 $12,464.54 $19,866.73 $868.02 1,355.33 336.88 2,699.20 4-Jun-98 ($1.30) $89.51 $67.74 $9.87 12.29 5.95 31.53 23-Apr-98 $11.96 $58.13 $241.25 ($3.39) 6.62 (2.34) 36.86 3-Apr-98 $14.25 $101.71 $136.72 $6.52 15.47 3.51 71.37 20 Jan 98 $36.98 $176.23 $391.37 $10.15 21.05 3.51 95.33 ADJUSTED MARKET VALUE / EQUITY VALUE / ----------------------------------------- ----------------------------- ANNOUNCED REVENUE EBIT EBITDA NET INCOME BOOK VALUE - ------------ ------------ ------------ --------- ------------- -------------- 15-Feb-01 0.442364294 6.685067196 3.8900945 11.77774868 1.332823483 5-Feb-01 0.434246562 10.47817955 7.5962281 13.44713222 3.602007495 14 Dec 00 0.913166555 9.51128148 5.8668572 11.58018011 1.517545005 16 Nov 00 0.754839149 19.14020307 10.029432 26.85532775 2.031232937 06 Oct 00 0.908857121 9.475912077 6.005164 4.850482868 22.22636161 5-Jun-00 0.64188571 8.196229421 5.2166638 12.6308401 1.896144094 1-Jun-00 0.73959988 34.10032881 13.089026 NM 32.57430596 24 Nov 99 0.445838882 26.33334002 13.269712 31.67167217 4.504296756 9-Nov-99 0.921526278 NA 5.2244898 NA NA 21 Jun 99 0.419395589 8.96995654 5.6858147 12.63064896 2.269289052 13-Aug-99 1.198123478 7.712988475 5.538097 15.134857 2.245050441 8-Jun-99 0.576970481 NM 10.127096 NM NM 19-Mar-99 0.649048688 9.251150788 5.1868697 13.46144885 1.229816854 9-Mar-99 0.463500871 13.88634373 8.0657809 NM NM 29-Jan-99 0.780156535 NM 11.577114 NM 1.346172223 28-Jan-99 0.206825055 5.742332831 3.8295054 5.742937569 2.556500336 11-Dec-98 1.91350305 14.03308945 10.236703 20.57673587 2.192713071 3-Dec-98 0.402161594 9.55644342 4.7058418 13.99731344 1.23101351 30-Nov-98 0.28587344 5.891877832 2.5474601 5.938728344 0.280149 13-Oct-98 0.751395064 17.58707394 10.655799 NM 8.825800758 28-Sep-98 0.387744321 7.353617811 5.6397268 7.604049494 7.513894035 18-Sep-98 0.754138413 22.10933315 8.1983557 37.97938231 0.959776221 06 Aug 98 0.52829104 10.11554735 6.383241 51.78907721 4.005680784 03 Aug 98 0.627408064 14.35970989 9.1967129 26.797002 3.344461498 4-Jun-98 1.321401948 9.066693044 7.2827026 15.26922811 2.880293548 23-Apr-98 0.240947975 NM 8.7768292 NM 1.252507732 3-Apr-98 0.74392922 15.59423824 6.573554 24.93575289 1.225478795 20 Jan 98 0.450286555 17.36940666 8.3707785 39.637347 1.460719418
----------------------------------------------------------------------------------- Notes: Low 0.206825055 5.742332831 2.5474601 4.850482868 0.280149 - ------ High 1.91350305 34.10032881 13.269712 51.78907721 32.57430596 Source: Thomson Financial Securities Data Mean 0.675122351 13.02168103 7.4559161 19.25275681 4.580161384 Median 0.634646887 9.835995388 6.9281283 13.99731344 2.192713071 -----------------------------------------------------------------------------------
MORGAN KEEGAN & COMPANY, INC. 44 APPENDIX 3 [DAIRY MART LOGO] - -------------------------------------------------------------------------------- PREMIUM ANALYSIS - -------------------------------------------------------------------------------- MORGAN KEEGAN & COMPANY, INC. APPENDIX 3 45 DAIRY MART CONVENIENCE STORES, INC. Premium Analysis of All Completed Retail Industry Transactions Since 1/1/99 (1)
- ---------------------------------------------------------------------------------------- DATE DATE ANNOUNCED EFFECTIVE TARGET NAME - ---------------------------------------------------------------------------------------- 29 Dec 00 29 Dec 00 Prandium Inc(AIF II LP) 07 Dec 00 01 Feb 01 Musicland Stores Corp 03 Nov 00 14 Dec 00 Designs Inc 25 Oct 00 22 Dec 00 pcOrder.com 06 Oct 00 20 Dec 00 Taco Cabana Inc 04 Oct 00 01 Feb 01 Bowlin Outdoor Advertising & Travel Centers 26 Sep 00 01 Dec 00 Rainforest Cafe Inc 31 Jul 00 30 Aug 00 Big Dog Holdings Inc 20 Jul 00 01 Sep 00 CDNow Inc 03 Jul 00 11 Aug 00 David's Bridal Inc 05 Jun 00 28 Sep 00 Buffets Inc 25 Apr 00 24 Jul 00 Lamonts Apparel Inc 07 Apr 00 01 Aug 00 Seaway Food Town Inc 08 Mar 00 10 Apr 00 Payless ShoeSource Inc 07 Mar 00 12 Sep 00 Arinco Computer Systems Inc 03 Feb 00 21 Mar 00 Filene's Basement Corp 25 Jan 00 10 Mar 00 CompUSA Inc 22 Nov 99 02 Feb 00 Garden Ridge Corp 15 Nov 99 31 Jan 00 Catherines Stores Corp 15 Nov 99 29 Dec 99 VICORP Restaurants Inc 15 Oct 99 31 Dec 99 Zions Cooperative Mercantile Institution 26 Aug 99 23 Sep 99 Garden Ridge Corp 18 Aug 99 31 Jul 00 Hannaford Bros Co 17 Aug 99 25 Oct 99 Planet Hollywood International Inc 26 Jul 99 02 Sep 99 Host Marriott Services Corp 14 Jul 99 22 Nov 99 Egghead.com Inc 05 Jul 99 11 Aug 99 General Nutrition Cos Inc 10 May 99 30 Jul 99 Pamida Holdings Corp 03 May 99 04 Jun 99 Limited Inc 24 Mar 99 24 Mar 99 Country Star Restaurants Inc 19 Mar 99 13 Aug 99 Rock Bottom Restaurants Inc 10 Mar 99 28 Apr 99 Triarc Cos Inc 04 Mar 99 01 Jun 99 K&G Men's Center Inc 09 Feb 99 08 Jul 99 Coffee People Inc(Second Cup Ltd) 29 Jan 99 09 Aug 99 Rally's Hamburgers Inc 11 Jan 99 08 Mar 99 Shopping.com - -------------------------------------------------------------------------------------------------------------------------- DATE DEAL OFFER ANNOUNCED ACQUIROR NAME VALUE (MIL) PRICE/SHARE (1) - -------------------------------------------------------------------------------------------------------------------------- 29 Dec 00 Kevin Relyea 15.00 07 Dec 00 Best Buy Co Inc 418.71 12.55 03 Nov 00 Designs Inc 4.40 2.50 25 Oct 00 Trilogy Software Inc 48.35 6.38 06 Oct 00 Carrols Corp 151.41 9.04 04 Oct 00 Lamar Advertising Co 41.64 26 Sep 00 Landry's Seafood Restaurants Inc 70.77 3.25 31 Jul 00 Big Dog Holdings Inc 21.88 6.25 20 Jul 00 Bertelsmann AG 138.42 3.00 03 Jul 00 May Department Stores Co 412.76 20.00 05 Jun 00 Investor Group 646.76 13.85 25 Apr 00 Gottschalks Inc 20.10 07 Apr 00 Spartan Stores Inc 108.03 16.18 08 Mar 00 Payless ShoeSource Inc 400.00 53.00 07 Mar 00 Pangea Internet Advisors LLC 40.00 03 Feb 00 Value City Department Stores Inc(Schottenstein Stores Corp) 12.50 25 Jan 00 Grupo Sanborns(Grupo Carso SA de CV) 805.26 10.10 22 Nov 99 GR Acquisition Corp(GRDG Holdings LLC) 144.43 11.50 15 Nov 99 Charming Shoppes Inc 153.59 21.00 15 Nov 99 VICORP Restaurants Inc 38.00 19.00 15 Oct 99 May Department Stores Co 49.70 22.50 26 Aug 99 Garden Ridge Corp 8.33 7.00 18 Aug 99 Food Lion Inc 3,712.99 79.00 17 Aug 99 Investor Group 30.00 26 Jul 99 Autogrill SpA(Edizione Holding SpA) 547.29 15.75 14 Jul 99 ONSALE Inc 328.32 12.71 05 Jul 99 Koninklijke Numico NV 2,506.39 25.00 10 May 99 ShopKo Stores Inc 372.28 11.50 03 May 99 Limited Inc 750.00 50.00 24 Mar 99 Go Call Inc 8.57 19 Mar 99 RB Capital Inc 58.53 10.00 10 Mar 99 Triarc Cos Inc 69.44 18.25 04 Mar 99 Men's Wearhouse Inc 118.27 11.50 09 Feb 99 Diedrich Coffee Inc 31.67 2.92 29 Jan 99 Checkers Drive-In Restaurants Inc 35.82 1.06 11 Jan 99 Compaq Computer Corp 130.09 18.25 - -------------------------------------------------------------------------------------------------------- CLOSING PRICE PREMIUM ---------------------------------------- -------------------------------------- 1 day 1 week 4 weeks 1 day 1 week 4 weeks DATE prior to prior to prior to prior to prior to prior to ANNOUNCED ann. date ann. date ann. date ann. date ann. date ann. date - -------------------------------------------------------------------------------------------------------- 29 Dec 00 07 Dec 00 03 Nov 00 2.38 2.28 2.06 5.26 9.60 21.18 25 Oct 00 3.44 3.06 4.09 85.43 108.13 55.72 06 Oct 00 4.16 4.31 4.45 117.52 109.60 103.01 04 Oct 00 6.56 6.50 6.56 26 Sep 00 2.03 2.06 2.84 60.02 57.54 14.28 31 Jul 00 4.63 4.38 4.25 35.14 42.86 47.06 20 Jul 00 2.88 2.50 2.88 4.35 20.00 4.35 03 Jul 00 11.56 12.63 12.00 72.97 58.42 66.67 05 Jun 00 12.13 10.88 11.25 14.23 27.36 23.11 25 Apr 00 07 Apr 00 16.00 17.00 23.38 1.13 (4.82) (30.78) 08 Mar 00 48.13 42.81 42.31 10.13 23.79 25.26 07 Mar 00 03 Feb 00 25 Jan 00 9.50 5.44 5.25 6.32 85.73 92.38 22 Nov 99 7.25 6.94 6.75 58.62 65.75 70.37 15 Nov 99 12.38 12.25 13.75 69.70 71.43 52.73 15 Nov 99 16.75 16.50 15.81 13.43 15.15 20.15 15 Oct 99 26 Aug 99 5.94 5.94 6.06 17.88 17.88 15.45 18 Aug 99 63.69 56.25 56.06 24.04 40.44 40.91 17 Aug 99 0.75 0.75 0.88 26 Jul 99 9.75 9.06 7.81 61.54 73.78 101.59 14 Jul 99 12.06 12.00 9.94 5.39 5.94 27.92 05 Jul 99 22.88 21.97 17.94 9.29 13.80 39.37 10 May 99 9.00 7.38 3.25 27.78 55.93 253.85 03 May 99 24 Mar 99 19 Mar 99 6.50 6.50 5.13 53.85 53.85 95.12 10 Mar 99 15.88 15.75 15.06 14.96 15.87 21.16 04 Mar 99 8.38 7.91 7.94 37.35 45.50 44.91 09 Feb 99 1.19 1.50 1.81 145.37 94.33 60.78 29 Jan 99 1.03 1.19 0.56 2.52 (11.03) 87.74 11 Jan 99
------------------------------------------------------ MEDIAN 24.0 % 42.9 % 44.9 % ------------------------------------------------------
COPYRIGHT(C) 2001, THOMSON FINANCIAL SECURITIES DATA. (1) Includes all forms of consideration based on date of announcement. 46 DAIRY MART CONVENIENCE STORES, INC. Premium Analysis of All Completed Non-Financial Institution and Non-Technology Transactions With Total Consideration Between $25 Million and $250 Million Since 1/1/99 (1)
- ------------------------------------------------------------------------------------------------------- DATE DATE ANNOUNCED EFFECTIVE TARGET NAME - ------------------------------------------------------------------------------------------------------- 04 Jan 01 20 Feb 01 TravelNow.com Inc 20 Dec 00 09 Feb 01 Marine Transport Corp 15 Dec 00 29 Jan 01 Edgewater Technology Inc 07 Dec 00 25 Jan 01 Ramp Networks Inc 06 Nov 00 12 Dec 00 kforce.com Inc 06 Nov 00 03 Jan 01 Equinox Systems Inc 03 Nov 00 14 Dec 00 Designs Inc 03 Nov 00 25 Jan 01 Getty Petroleum Marketing Inc 27 Oct 00 16 Jan 01 TelCom Semiconductor Inc 25 Oct 00 02 Jan 01 EduTrek International Inc 25 Oct 00 22 Dec 00 pcOrder.com 25 Oct 00 06 Dec 00 Continuus Software Corp 25 Oct 00 06 Dec 00 Continuus Software Corp 17 Oct 00 29 Nov 00 Trex Medical Corp(ThermoTrex Corp/Thermo Electron Corp) 17 Oct 00 01 Dec 00 JPS Packaging Co 12 Oct 00 28 Nov 00 Cerprobe Corporation 10 Oct 00 09 Feb 01 Lifemark Corp 06 Oct 00 20 Dec 00 Taco Cabana Inc 04 Oct 00 07 Dec 00 InnerDyne Inc 04 Oct 00 23 Jan 01 Integ Inc 04 Oct 00 12 Dec 00 Home-Stake Oil & Gas Co 03 Oct 00 16 Nov 00 JLK Direct Distribution Inc (Kennametal Inc) 26 Sep 00 01 Dec 00 Rainforest Cafe Inc 25 Sep 00 02 Feb 01 @plan.inc 19 Sep 00 30 Nov 00 US Franchise Systems Inc 13 Sep 00 18 Oct 00 BeautiControl Cosmetics Inc 13 Sep 00 18 Oct 00 BeautiControl Cosmetics Inc 13 Sep 00 17 Nov 00 Fatbrain.com Inc 07 Sep 00 08 Dec 00 Agritope Inc 05 Sep 00 23 Oct 00 Engineering Animation Inc 01 Sep 00 18 Dec 00 Minolta-QMS Inc(Minolta Co Ltd) 31 Aug 00 16 Oct 00 Splash Technology Holdings Inc 29 Aug 00 13 Nov 00 Printrak International Inc 29 Aug 00 02 Jan 01 Columbus Energy Corp 28 Aug 00 24 Jan 01 Washington Homes Inc 28 Aug 00 04 Oct 00 800-JR Cigar Inc 22 Aug 00 20 Dec 00 Newgen Results Corporation 21 Aug 00 17 Nov 00 Aquila Biopharmaceuticals Inc 16 Aug 00 20 Nov 00 Delia's Inc 15 Aug 00 05 Feb 01 Clearworks Net Inc 11 Aug 00 01 Oct 00 Piercing Pagoda Inc 11 Aug 00 06 Oct 00 BI Inc 04 Aug 00 22 Sep 00 EndoSonics Corp 31 Jul 00 30 Aug 00 Big Dog Holdings Inc 26 Jul 00 27 Dec 00 Video Services Corp 25 Jul 00 06 Sep 00 Chemfab Corp 20 Jul 00 17 Nov 00 JLK Direct Distribution Inc (Kennametal Inc) 20 Jul 00 01 Sep 00 CDNow Inc 19 Jul 00 20 Sep 00 Carey International Inc 17 Jul 00 25 Aug 00 Concentrex Inc 17 Jul 00 24 Aug 00 CareerBuilder Inc 14 Jul 00 21 Aug 00 Serengeti Eyewear Inc 11 Jul 00 28 Dec 00 In Home Health Inc(Manor Care Inc) 10 Jul 00 17 Aug 00 Business Resource Group 10 Jul 00 17 Aug 00 Business Resource Group 06 Jul 00 02 Jan 01 Engineering Measurements Co 29 Jun 00 01 Oct 00 Utilx Corp 29 Jun 00 01 Sep 00 Interface Systems Inc 28 Jun 00 03 Jan 01 CFM Technologies Inc 27 Jun 00 29 Sep 00 Tech-Sym Corp 27 Jun 00 22 Sep 00 National-Standard Co - -------------------------------------------------------------------------------------------------------------------------- DATE DEAL OFFER ANNOUNCED ACQUIROR NAME VALUE (MIL) PRICE/SHARE (1) - -------------------------------------------------------------------------------------------------------------------------- 04 Jan 01 Hotel Reservations Network Inc (USA Networks Inc) 45.23 4.16 20 Dec 00 Crowley Maritime Corp 47.83 7.00 15 Dec 00 Edgewater Technology Inc 130.00 8.00 07 Dec 00 Nokia Oy AB 132.14 5.80 06 Nov 00 kforce.com Inc 55.00 5.50 06 Nov 00 Avocent Corp 56.91 9.75 03 Nov 00 Designs Inc 4.40 2.50 03 Nov 00 LUKoil Holdings 71.09 5.00 27 Oct 00 Microchip Technology Inc 284.43 13.91 25 Oct 00 Career Education Corp 44.61 3.31 25 Oct 00 Trilogy Software Inc 48.35 6.38 25 Oct 00 Telelogic AB 43.33 3.46 25 Oct 00 Telelogic AB 43.33 3.46 17 Oct 00 Thermo Electron Corp 16.14 2.15 17 Oct 00 Pechiney SA 45.47 7.86 12 Oct 00 Kulicke & Soffa Industries Inc 201.37 20.00 10 Oct 00 Evercare(Ovations/UnitedHealth Group) 62.44 10.55 06 Oct 00 Carrols Corp 151.41 9.04 04 Oct 00 Tyco International Ltd 194.81 7.50 04 Oct 00 Inverness Medical Technology Inc 57.87 5.04 04 Oct 00 Cortez Oil & Gas Inc 50.26 11.00 03 Oct 00 JLK Direct Distribution Inc (Kennametal Inc) 36.24 8.75 26 Sep 00 Landry's Seafood Restaurants Inc 70.77 3.25 25 Sep 00 DoubleClick Inc 102.35 8.00 19 Sep 00 Pritzker Group 100.21 5.00 13 Sep 00 Tupperware Corp 54.32 7.00 13 Sep 00 Tupperware Corp 54.32 7.00 13 Sep 00 barnesandnoble.com Inc 57.18 3.19 07 Sep 00 Exelixis Inc 33.10 6.26 05 Sep 00 Unigraphics Solutions Inc (Electronic Data Systems Corp) 176.89 13.75 01 Sep 00 Minolta Investments Co(Minolta Co Ltd) 34.58 6.00 31 Aug 00 Electronics for Imaging Inc 147.37 10.00 29 Aug 00 Motorola Inc 154.04 12.14 29 Aug 00 Key Production Co Inc 23.84 6.32 28 Aug 00 Hovnanian Enterprises Inc 136.19 10.08 28 Aug 00 Investor Group 33.31 13.00 22 Aug 00 TeleTech Holdings Inc 166.83 14.50 21 Aug 00 Antigenics Inc 40.75 4.60 16 Aug 00 iTurf Inc 82.77 4.93 15 Aug 00 Eagle Wireless International Inc 155.08 6.40 11 Aug 00 Zale Corp 265.64 21.50 11 Aug 00 Investor Group 67.44 8.25 04 Aug 00 Jomed NV 209.57 11.00 31 Jul 00 Big Dog Holdings Inc 21.88 6.25 26 Jul 00 Liberty Livewire Corp(Liberty Media Group) 138.28 9.67 25 Jul 00 Norton Co(Cie De Saint-Gobain SA) 145.41 18.25 20 Jul 00 Kennametal Inc 36.46 8.75 20 Jul 00 Bertelsmann AG 138.42 3.00 19 Jul 00 Investor Group 189.81 18.25 17 Jul 00 John H Harland Co 37.88 7.00 17 Jul 00 Investor Group 199.31 8.00 14 Jul 00 Worldwide Sports & Recreation Inc 32.77 3.95 11 Jul 00 Manor Care Inc 22.61 3.70 10 Jul 00 BR Holding Inc(Bull Run Corp) 57.21 9.25 10 Jul 00 BR Holding Inc(Bull Run Corp) 57.21 9.25 06 Jul 00 Advanced Energy Industries Inc 30.02 7.09 29 Jun 00 Infrastrux Group Inc(Puget Sound Energy) 49.58 6.13 29 Jun 00 Tumbleweed Communications Corp 70.38 13.33 28 Jun 00 Mattson Technology Inc 177.75 20.63 27 Jun 00 Integrated Defense Technologies Inc(Veritas Capital Fund) 93.01 30.00 27 Jun 00 Heico Holding Inc 5.79 1.00 - ------------------------------------------------------------------------------------------------------- CLOSING PRICE PREMIUM ------------------------------------ ------------------------------------------- 1 day 1 week 4 weeks 1 day 1 week 4 weeks DATE prior to prior to prior to prior to prior to prior to ANNOUNCED ann. date ann. date ann. date ann. date ann. date ann. date - ------------------------------------------------------------------------------------------------------- 04 Jan 01 20 Dec 00 5.00 5.13 5.13 40.00 36.59 36.59 15 Dec 00 5.50 5.63 5.06 45.46 42.22 58.03 07 Dec 00 06 Nov 00 4.47 3.94 3.03 23.08 39.68 81.44 06 Nov 00 7.00 7.00 5.63 39.29 39.29 73.33 03 Nov 00 2.38 2.28 2.06 5.26 9.59 21.21 03 Nov 00 3.44 3.38 3.75 45.46 48.15 33.33 27 Oct 00 11.94 11.75 14.88 16.55 18.40 (6.47) 25 Oct 00 25 Oct 00 3.44 3.06 4.09 85.46 108.16 55.73 25 Oct 00 25 Oct 00 17 Oct 00 4.00 3.44 2.88 (46.25) (37.46) (25.22) 17 Oct 00 4.63 4.25 3.19 69.95 84.94 146.59 12 Oct 00 12.50 13.81 15.00 60.00 44.80 33.33 10 Oct 00 8.44 8.38 8.25 25.04 25.97 27.88 06 Oct 00 4.16 4.31 4.45 117.50 109.62 103.00 04 Oct 00 7.13 5.88 6.50 5.26 27.66 15.39 04 Oct 00 2.38 2.34 1.59 112.30 115.13 216.36 04 Oct 00 10.75 10.75 12.13 2.33 2.33 (9.28) 03 Oct 00 26 Sep 00 2.03 2.06 2.84 60.00 57.58 14.29 25 Sep 00 7.25 6.38 6.00 10.35 25.49 33.33 19 Sep 00 4.38 4.38 4.31 14.29 14.29 15.94 13 Sep 00 3.75 3.75 3.19 86.67 86.67 119.61 13 Sep 00 3.75 3.75 3.19 86.67 86.67 119.61 13 Sep 00 3.81 3.63 3.88 (16.39) (12.07) (17.74) 07 Sep 00 7.13 5.44 5.19 (12.20) 15.05 20.60 05 Sep 00 11.06 11.37 6.75 24.30 20.93 103.70 01 Sep 00 3.00 3.00 3.06 100.00 100.00 95.92 31 Aug 00 29 Aug 00 11.63 10.94 7.63 4.43 10.99 59.21 29 Aug 00 28 Aug 00 7.13 7.25 6.50 41.47 39.03 55.08 28 Aug 00 22 Aug 00 13.88 13.38 15.38 4.51 8.41 (5.69) 21 Aug 00 4.38 5.13 4.44 5.17 (10.22) 3.69 16 Aug 00 2.38 2.25 2.81 107.62 119.16 75.32 15 Aug 00 4.75 4.75 4.00 34.74 34.74 60.00 11 Aug 00 16.00 14.56 14.38 34.38 47.64 49.57 11 Aug 00 4.63 4.00 5.00 78.38 106.25 65.00 04 Aug 00 7.00 6.38 6.38 57.14 72.55 72.55 31 Jul 00 4.63 4.38 4.25 35.14 42.86 47.06 26 Jul 00 4.75 4.75 4.81 103.50 103.50 100.85 25 Jul 00 10.13 10.63 11.88 80.25 71.77 53.68 20 Jul 00 20 Jul 00 2.88 2.50 2.88 4.35 20.00 4.35 19 Jul 00 14.50 15.06 11.06 25.86 21.16 64.97 17 Jul 00 4.00 3.94 4.13 75.00 77.78 69.70 17 Jul 00 4.13 3.88 2.97 93.94 106.45 169.47 14 Jul 00 11 Jul 00 3.00 2.88 3.00 23.33 28.70 23.33 10 Jul 00 6.75 6.38 7.47 37.04 45.10 23.85 10 Jul 00 6.75 6.38 7.47 37.04 45.10 23.85 06 Jul 00 7.75 7.88 7.06 (8.52) (9.97) 0.39 29 Jun 00 4.38 4.63 4.06 40.00 32.43 50.77 29 Jun 00 9.50 8.91 7.63 40.34 49.69 74.85 28 Jun 00 13.75 10.56 7.81 50.04 95.31 164.06 27 Jun 00 24.00 24.25 22.00 25.00 23.71 36.36 27 Jun 00 1.75 1.50 1.81 (42.86) (33.33) (44.83)
47 DAIRY MART CONVENIENCE STORES, INC. Premium Analysis of All Completed Non-Financial Institution and Non-Technology Transactions With Total Consideration Between $25 Million and $250 Million Since 1/1/99 (1)
- ------------------------------------------------------------------------------------------------------- DATE DATE ANNOUNCED EFFECTIVE TARGET NAME - ------------------------------------------------------------------------------------------------------- 27 Jun 00 02 Aug 00 Quest Education Corp 20 Jun 00 27 Oct 00 Hagler Bailly Inc 16 Jun 00 31 Aug 00 Pacific Gateway Properties 13 Jun 00 02 Oct 00 Cereus Technology Partners Inc 12 Jun 00 31 Aug 00 Comptek Research Inc 08 Jun 00 12 Sep 00 OneMain.com Inc 06 Jun 00 13 Oct 00 Trimark Holdings Inc 02 Jun 00 08 Aug 00 Lunar Corp 30 May 00 14 Jul 00 PremiumWear Inc 26 May 00 20 Jul 00 KLLM Transport Services Inc 26 May 00 17 Nov 00 Acme Electric Corp 25 May 00 01 Aug 00 Protocol Systems Inc 23 May 00 18 Dec 00 Cambridge Neuroscience Research Inc 23 May 00 31 Jul 00 Pentech International Inc 11 May 00 15 Nov 00 Gatefield Corp 10 May 00 06 Jul 00 SeraNova Inc 10 May 00 26 Jun 00 WMF Group Ltd 04 May 00 21 Jun 00 Provantage Health Services Inc (ShopKo Stores Inc) 04 May 00 31 Dec 00 Petroglyph Energy Inc (InterMountain Industries) 04 May 00 25 Sep 00 Eskimo Pie Corp 03 May 00 14 Jun 00 Cunningham Graphics International Inc 02 May 00 06 Jun 00 Amrep Corp 02 May 00 10 Aug 00 ACT Networks Inc 01 May 00 31 May 00 Drew Industries Inc 27 Apr 00 01 Sep 00 VIASOFT Inc 24 Apr 00 01 Jul 00 Safety 1st Inc 24 Apr 00 27 Jul 00 Noodle Kidoodle Inc 19 Apr 00 29 Sep 00 Somerset Group Inc 17 Apr 00 14 Sep 00 Brunswick Technologies Inc 17 Apr 00 07 Aug 00 Cybergold Inc 17 Apr 00 15 May 00 Green Mountain Coffee Inc 17 Apr 00 25 May 00 ACSYS Inc 14 Apr 00 19 May 00 PlayCore Inc(GreenGrass Holdings) 07 Apr 00 01 Aug 00 Seaway Food Town Inc 07 Apr 00 16 Aug 00 North Face Inc 06 Apr 00 19 Jun 00 Funco Inc 31 Mar 00 10 May 00 Johnston Industries Inc 31 Mar 00 08 May 00 Pulaski Furniture Corp 27 Mar 00 08 May 00 Farr Co 24 Mar 00 01 Jun 00 BridgeStreet Accommodations Inc 24 Mar 00 02 Jun 00 Harding Lawson Associates Group Inc 16 Mar 00 15 Apr 00 Chicago Rivet & Machine Co 16 Mar 00 30 Jun 00 Inference Corp 14 Mar 00 01 Jun 00 Met-Coil Systems Corp 13 Mar 00 29 Sep 00 Voyager.Net Inc 10 Mar 00 30 Apr 00 Wave Technologies International Inc 06 Mar 00 18 Dec 00 Genzyme Tissue Repair(Genzyme Corp) 02 Mar 00 03 Jul 00 Savoir Technology Group Inc 29 Feb 00 28 Jun 00 Exactis.com Inc 28 Feb 00 30 Apr 00 Bristol Hotels & Resorts Inc 28 Feb 00 15 Sep 00 Carson Inc 28 Feb 00 18 May 00 Mustang.com Inc 25 Feb 00 15 Jun 00 Centennial HealthCare Corp 25 Feb 00 24 Mar 00 Escalade Inc 23 Feb 00 15 May 00 Everest Medical Corp 19 Feb 00 19 Feb 00 Diehl Graphsoft Inc 16 Feb 00 05 Apr 00 American Precision Industries Inc 15 Feb 00 12 Jul 00 Advanced Machine Vision Corp 14 Feb 00 23 Mar 00 K-Tron International Inc - -------------------------------------------------------------------------------------------------------------------------- DATE DEAL OFFER ANNOUNCED ACQUIROR NAME VALUE (MIL) PRICE/SHARE (1) - -------------------------------------------------------------------------------------------------------------------------- 27 Jun 00 Kaplan Inc(Washington Post Co) 157.12 18.35 20 Jun 00 PA Consulting Group(Button Trust) 96.99 5.32 16 Jun 00 Mission Orchard Statutory Trust 53.76 12.70 13 Jun 00 Eltrax Systems Inc 128.91 12.63 12 Jun 00 Northrop Grumman Corp 180.54 22.30 08 Jun 00 EarthLink Inc 310.05 6.39 06 Jun 00 Lions Gate Entertainment Corp 48.61 9.83 02 Jun 00 GE Medical Systems(General Electric Co) 158.71 16.87 30 May 00 New England Business Service Inc 40.19 13.50 26 May 00 High Road Acquisition Corp 33.02 8.05 26 May 00 Key Components LLC(Kelso & Co) 57.55 9.00 25 May 00 Welch Allyn Inc 143.05 16.00 23 May 00 CeNeS Pharmaceuticals PLC 41.78 2.25 23 May 00 JAKKS Pacific Inc 39.45 1.60 11 May 00 Actel Corp 29.47 5.25 10 May 00 Shareholders 155.79 9.38 10 May 00 Prudential Mortgage Capital Corp(Prudential Insurance Co of America) 137.79 8.90 04 May 00 Merck & Co Inc 222.40 12.25 04 May 00 Intermountain Industries 9.15 2.85 04 May 00 CoolBrands International Corp 29.63 10.25 03 May 00 Automatic Data Processing Inc 129.34 22.00 02 May 00 Amrep Corp 4.11 7.00 02 May 00 Clarent Corp 151.96 13.43 01 May 00 Drew Industries Inc 11.60 8.00 27 Apr 00 Allen Systems Group 157.38 8.40 24 Apr 00 Dorel Industries Inc 178.21 13.88 24 Apr 00 Zany Brainy Inc 40.87 5.28 19 Apr 00 First Indiana Corp, Indianapolis,Indiana 71.86 24.70 17 Apr 00 CertainTeed Corp(Cie de Saint Gobain) 35.49 8.50 17 Apr 00 MyPoints.com Inc 146.61 7.17 17 Apr 00 Green Mountain Coffee Inc 4.46 16.00 17 Apr 00 Vedior NV 72.51 5.00 14 Apr 00 Chartwell Investments II LLC (Chartwell Managers LLC) 105.96 10.10 07 Apr 00 Spartan Stores Inc 108.03 16.18 07 Apr 00 VF Corp 25.61 2.00 06 Apr 00 Babbage's Etc LLC(Barnes & Noble Inc) 162.87 24.75 31 Mar 00 CGW Southeast Partners IV 33.40 3.00 31 Mar 00 Investor Group 65.31 22.50 27 Mar 00 Ratos Acquisition Corp (Forvaltnings AB Ratos) 132.70 17.45 24 Mar 00 Meristar Hotels & Resorts Inc 34.02 2.88 24 Mar 00 MACTEC Inc 61.28 11.50 16 Mar 00 Chicago Rivet & Machine Co 3.67 23.00 16 Mar 00 eGain Communications Corp 73.26 8.28 14 Mar 00 Mestek Inc 38.04 7.10 13 Mar 00 CoreComm Ltd 189.12 5.98 10 Mar 00 Thomson Corp 42.55 9.75 06 Mar 00 Genzyme Surgical Products (Genzyme General/Genzyme Corp) 233.03 9.13 02 Mar 00 Avnet Inc 133.52 7.85 29 Feb 00 24/7 Media Inc 400.33 33.17 28 Feb 00 Bass PLC 152.50 9.50 28 Feb 00 Cosmair Inc(L'Oreal SA) 80.64 5.20 28 Feb 00 Quintus Corp 214.56 38.26 25 Feb 00 Investor Group 65.58 5.50 25 Feb 00 Escalade Inc 12.60 18.00 23 Feb 00 Gyrus Group PLC 51.27 4.85 19 Feb 00 Nemetschek AG 29.49 9.50 16 Feb 00 Danaher Corp 209.57 19.25 15 Feb 00 Key Technology Inc 26.45 1.64 14 Feb 00 K-Tron International Inc 9.14 18.00 - ------------------------------------------------------------------------------------------------------- CLOSING PRICE PREMIUM ------------------------------------ ------------------------------------------- 1 day 1 week 4 weeks 1 day 1 week 4 weeks DATE prior to prior to prior to prior to prior to prior to ANNOUNCED ann. date ann. date ann. date ann. date ann. date ann. date - ------------------------------------------------------------------------------------------------------- 27 Jun 00 9.75 9.69 9.25 88.21 89.42 98.38 20 Jun 00 4.75 3.56 1.94 12.00 49.33 174.58 16 Jun 00 10.63 10.63 10.69 19.53 19.53 18.83 13 Jun 00 12 Jun 00 17.19 16.94 16.00 29.72 31.63 39.34 08 Jun 00 8.00 7.81 4.88 (20.13) (18.21) 31.08 06 Jun 00 8.72 6.00 7.00 12.72 63.80 40.40 02 Jun 00 11.13 11.00 10.63 51.60 53.32 58.73 30 May 00 9.88 9.75 8.50 36.71 38.46 58.82 26 May 00 6.81 8.50 8.13 18.17 (5.29) (0.92) 26 May 00 7.44 7.38 7.25 21.01 22.03 24.14 25 May 00 13.13 12.75 12.38 21.91 25.49 29.29 23 May 00 23 May 00 0.91 1.00 0.66 76.55 60.00 143.81 11 May 00 4.13 4.50 4.31 27.27 16.67 21.75 10 May 00 10 May 00 6.00 6.25 5.25 48.33 42.40 69.52 04 May 00 04 May 00 2.00 1.38 1.63 42.50 107.27 75.39 04 May 00 9.00 8.88 8.25 13.89 15.49 24.24 03 May 00 22.50 21.75 26.25 (2.22) 1.15 (16.19) 02 May 00 5.06 5.06 5.69 38.27 38.27 23.08 02 May 00 01 May 00 7.06 6.88 7.00 13.27 16.36 14.29 27 Apr 00 5.50 5.75 6.47 52.73 46.09 29.86 24 Apr 00 12.63 11.25 11.63 9.90 23.33 19.36 24 Apr 00 4.25 4.00 5.88 24.19 31.95 (10.16) 19 Apr 00 17.50 17.75 17.75 41.14 39.16 39.16 17 Apr 00 17 Apr 00 5.50 9.38 14.44 30.36 (23.52) (50.34) 17 Apr 00 14.38 16.50 12.00 11.30 (3.03) 33.33 17 Apr 00 2.75 3.56 1.81 81.82 40.35 175.86 14 Apr 00 6.75 7.00 7.81 49.63 44.29 29.28 07 Apr 00 16.00 17.00 23.38 1.13 (4.82) (30.78) 07 Apr 00 06 Apr 00 11.88 13.75 10.94 108.42 80.00 126.29 31 Mar 00 2.31 1.94 1.81 29.73 54.84 65.52 31 Mar 00 21.88 17.13 14.56 2.86 31.39 54.51 27 Mar 00 11.88 12.50 10.13 46.95 39.60 72.35 24 Mar 00 1.94 2.13 2.00 48.39 35.29 43.75 24 Mar 00 9.25 8.50 7.94 24.32 35.29 44.88 16 Mar 00 16 Mar 00 14 Mar 00 6.13 6.00 6.00 15.92 18.33 18.33 13 Mar 00 13.00 12.31 11.94 (54.04) (51.47) (49.95) 10 Mar 00 7.38 8.50 6.13 32.20 14.71 59.18 06 Mar 00 02 Mar 00 8.25 7.75 6.95 (4.81) 1.33 12.94 29 Feb 00 18.69 20.63 18.00 77.47 60.80 84.25 28 Feb 00 5.75 4.88 4.56 65.22 94.87 108.22 28 Feb 00 3.75 3.69 3.50 38.67 41.02 48.57 28 Feb 00 25.88 21.50 14.13 47.87 77.96 170.88 25 Feb 00 2.94 2.97 3.00 87.23 85.26 83.33 25 Feb 00 16.50 16.25 11.00 9.09 10.77 63.64 23 Feb 00 3.69 3.94 3.38 31.53 23.18 43.70 19 Feb 00 7.13 6.25 4.88 33.33 52.00 94.87 16 Feb 00 11.44 11.69 8.69 68.31 64.71 121.58 15 Feb 00 1.69 1.63 1.34 (2.76) 0.99 22.12 14 Feb 00 14.13 14.25 14.13 27.43 26.32 27.43
48 DAIRY MART CONVENIENCE STORES, INC. Premium Analysis of All Completed Non-Financial Institution and Non-Technology Transactions With Total Consideration Between $25 Million and $250 Million Since 1/1/99 (1)
- --------------------------------------------------------------------------------------------------------- DATE DATE ANNOUNCED EFFECTIVE TARGET NAME - --------------------------------------------------------------------------------------------------------- 14 Feb 00 29 Mar 00 GRC International Inc 10 Feb 00 01 Jun 00 TCBY Enterprises Inc 04 Feb 00 26 Jul 00 BNC Mortgage Inc 03 Feb 00 31 Mar 00 Telesoft Corp 31 Jan 00 03 May 00 Metrika Systems Corp(Thermo Instrument Systems Inc/Thermo Electron Corp) 31 Jan 00 28 Jun 00 Sunrise International Leasing Inc(King Management Corp) 31 Jan 00 13 Apr 00 ONIX Systems Inc(Thermo Instrument Systems) 31 Jan 00 25 Aug 00 Writer Corp 31 Jan 00 12 Apr 00 Thermedics Detection Inc(Thermedics Inc/Thermo Electron Corp) 31 Jan 00 04 Apr 00 Thermo Sentron Inc(Thermedics) 28 Jan 00 10 Mar 00 Zing Technologies Inc 28 Jan 00 01 May 00 SPR Inc 28 Jan 00 Advanced Technical Products Inc 17 Jan 00 13 Mar 00 Caere Corp 17 Jan 00 24 Feb 00 Moore Products Co 14 Jan 00 11 Jul 00 Globe Business Resources Inc (Equity Residential Properties Trust) 06 Jan 00 21 Jun 00 Saratoga Beverage Group Inc 28 Dec 99 02 Feb 00 Renex Corp 28 Dec 99 14 Feb 00 Riviera Holdings Corp 28 Dec 99 09 May 00 Digital Origin Inc 23 Dec 99 16 May 00 Wilmar Industries Inc 21 Dec 99 27 Jan 00 Softworks Inc 20 Dec 99 23 Mar 00 PS Group Holdings Inc 20 Dec 99 13 Mar 00 Plasma-Therm Inc 15 Dec 99 15 Aug 00 ThermoLase Corp(ThermoTrex Corp/Thermo Electron Corp) 13 Dec 99 26 Jun 00 Galaxy Enterprises Inc 13 Dec 99 09 Feb 00 NetMoves 09 Dec 99 29 Mar 00 Gleason Corp 01 Dec 99 05 Jun 00 Pointe Communications Corp 29 Nov 99 11 Feb 00 Mecon Inc 29 Nov 99 02 Feb 00 Connectinc.com 26 Nov 99 22 Feb 00 Bolle Inc 22 Nov 99 02 Feb 00 Garden Ridge Corp 18 Nov 99 31 Jan 00 Worldtalk Communications Corp 18 Nov 99 01 Feb 00 Innovative Valve Technologies Inc 16 Nov 99 16 Dec 99 Atrion Corp 15 Nov 99 21 Dec 99 Vallen Corp 15 Nov 99 31 Jan 00 Catherines Stores Corp 15 Nov 99 29 Dec 99 VICORP Restaurants Inc 12 Nov 99 17 Dec 99 TB Wood's Corp 10 Nov 99 01 Sep 00 Berkshire Energy Resources 09 Nov 99 11 Feb 00 Innovasive Devices Inc 09 Nov 99 15 Dec 99 Alba-Waldensian Inc 09 Nov 99 03 Mar 00 HealthWorld Corp 09 Nov 99 19 Jan 00 Percon Inc 08 Nov 99 31 May 00 FlashNet Communications Inc 08 Nov 99 07 Feb 00 Autocam Corp 04 Nov 99 15 Feb 00 Cleveland Indians Baseball Co 04 Nov 99 11 Feb 00 COMPS.COM INC 03 Nov 99 09 Mar 00 Gibson Greetings Inc 26 Oct 99 13 Dec 99 GeoScience Corp(Tech-Sym Corp) 26 Oct 99 06 Dec 00 Praegitzer Industries Inc 21 Oct 99 10 Jan 00 Wall Data Inc 21 Oct 99 04 Feb 00 Cade Industries Inc 20 Oct 99 06 Jun 00 Thermoretec Corp (Thermo TerraTech Inc/Thermo Electron Corp) 20 Oct 99 31 Jan 00 Ferrofluidics Corp 20 Oct 99 08 Dec 99 Variflex Inc - -------------------------------------------------------------------------------------------------------------------------- DATE DEAL OFFER ANNOUNCED ACQUIROR NAME VALUE (MIL) PRICE/SHARE (1) - -------------------------------------------------------------------------------------------------------------------------- 14 Feb 00 AT&T Corp 218.90 15.00 10 Feb 00 Capricorn Investors LP 139.11 6.00 04 Feb 00 Investor Group 48.10 10.00 03 Feb 00 Telesoft Corp 16.68 7.25 31 Jan 00 Thermo Instrument Systems Inc (Thermo Electron Corp) 14.15 9.00 31 Jan 00 King Management Corp 16.97 5.25 31 Jan 00 Thermo Instrument Systems Inc (Thermo Electron Corp) 23.13 9.00 31 Jan 00 Standard Pacific Corp 52.85 3.35 31 Jan 00 Thermedics Inc(Thermo Electron Corp) 17.02 8.00 31 Jan 00 Thermedics Inc(Thermo Electron Corp) 30.69 15.50 28 Jan 00 International Rectifier Corp 36.97 15.36 28 Jan 00 Leapnet Inc 93.86 7.19 28 Jan 00 Veritas Capital Fund LP (Veritas Capital Partners LP) 70.89 12.75 17 Jan 00 ScanSoft Inc(Visioneer Inc) 147.46 11.75 17 Jan 00 Siemens Energy & Automation (Siemens Corp) 168.65 54.71 14 Jan 00 Equity Residential Properties Trust 63.00 13.00 06 Jan 00 North Castle Partners 39.65 6.00 28 Dec 99 National Nephrology Associates {NNA} 76.66 10.00 28 Dec 99 Riviera Holdings Corp 4.43 7.50 28 Dec 99 Media 100 Inc 95.43 14.45 23 Dec 99 Investor Group 294.71 18.25 21 Dec 99 EMC Corp 179.77 10.00 20 Dec 99 Integrated Capital Associates Inc 72.82 12.00 20 Dec 99 Oerlikon-Buehrle Holding AG 155.00 12.50 15 Dec 99 Thermo Electron Corp 36.44 2.73 13 Dec 99 NetGateway Inc 50.51 8.03 13 Dec 99 Mail.com Inc 179.83 9.87 09 Dec 99 Investor Group 320.48 23.00 01 Dec 99 Telscape International Inc 208.50 2.11 29 Nov 99 GE Medical Systems(General Electric Co) 85.25 11.06 29 Nov 99 Calico Commerce Inc 89.72 5.43 26 Nov 99 Worldwide Sports & Recreation Inc 92.00 5.25 22 Nov 99 GR Acquisition Corp(GRDG Holdings LLC) 144.43 11.50 18 Nov 99 Tumbleweed Communications Corp 146.74 10.27 18 Nov 99 Flowserve Corp 101.08 1.62 16 Nov 99 Atrion Corp 4.11 12.00 15 Nov 99 Hagemeyer NV 200.99 25.00 15 Nov 99 Charming Shoppes Inc 153.59 21.00 15 Nov 99 VICORP Restaurants Inc 38.00 19.00 12 Nov 99 TB Wood's Corp 3.60 9.00 10 Nov 99 Energy East Corp 95.73 38.00 09 Nov 99 Johnson & Johnson 83.09 8.25 09 Nov 99 Tefron Ltd 61.59 18.50 09 Nov 99 Cordiant Communications Group PLC 198.03 23.00 09 Nov 99 PSC Inc 59.52 15.00 08 Nov 99 Prodigy Communications Corp 120.86 8.66 08 Nov 99 Aurora Capital Partners LP 123.30 18.75 04 Nov 99 Investor Group 180.56 22.66 04 Nov 99 Costar Corp(Corning Inc) 88.70 7.50 03 Nov 99 American Greetings Corp 162.30 10.25 26 Oct 99 Cie Generale de Geophysique 97.00 6.71 26 Oct 99 Tyco International Ltd 79.84 5.50 21 Oct 99 NetManage Inc 93.30 9.00 21 Oct 99 United Technologies Corp 133.22 5.05 20 Oct 99 Thermo Electron Corp 56.88 7.00 20 Oct 99 Ferrotec Corp 41.50 6.50 20 Oct 99 Variflex Inc 3.33 6.50 - ------------------------------------------------------------------------------------------------------ CLOSING PRICE PREMIUM ------------------------------------ ------------------------------------------- 1 day 1 week 4 weeks 1 day 1 week 4 weeks DATE prior to prior to prior to prior to prior to prior to ANNOUNCED ann. date ann. date ann. date ann. date ann. date ann. date - ------------------------------------------------------------------------------------------------------ 14 Feb 00 13.38 12.88 12.63 12.15 16.51 18.81 10 Feb 00 3.56 3.81 3.75 68.42 57.38 60.00 04 Feb 00 7.38 7.00 6.38 35.59 42.86 56.86 03 Feb 00 4.75 4.75 4.25 52.63 52.63 70.59 31 Jan 00 31 Jan 00 5.50 5.25 5.19 (4.55) 1.21 31 Jan 00 31 Jan 00 2.25 1.91 1.50 48.89 75.76 123.33 31 Jan 00 7.94 7.94 7.00 0.79 0.79 14.29 31 Jan 00 14.44 14.50 14.50 7.36 6.90 6.90 28 Jan 00 15.00 15.81 12.88 2.40 (2.86) 19.30 28 Jan 00 5.63 5.28 6.13 27.79 36.10 17.36 28 Jan 00 7.44 10.88 13.94 71.43 17.24 (8.52) 17 Jan 00 7.44 7.38 6.94 57.98 59.32 69.37 17 Jan 00 42.88 37.50 30.50 27.60 45.89 79.38 14 Jan 00 11.88 12.00 13.06 9.47 8.33 (0.48) 06 Jan 00 4.81 4.84 3.44 24.68 23.87 74.55 28 Dec 99 8.25 6.63 6.31 21.21 50.94 58.42 28 Dec 99 5.19 5.38 5.13 44.58 39.54 46.34 28 Dec 99 8.63 10.25 9.13 67.48 40.93 58.30 23 Dec 99 14.00 14.38 15.38 30.36 26.96 18.70 21 Dec 99 9.31 8.63 5.00 7.38 15.94 100.00 20 Dec 99 11.00 10.69 10.38 9.09 12.28 15.66 20 Dec 99 9.38 9.00 9.19 33.33 38.89 36.05 15 Dec 99 2.38 2.13 1.88 15.03 28.57 45.71 13 Dec 99 5.06 3.00 2.38 58.53 167.50 237.90 13 Dec 99 5.50 5.06 3.94 79.38 94.88 150.57 09 Dec 99 18.00 18.13 17.56 27.78 26.90 30.96 01 Dec 99 29 Nov 99 9.38 8.00 6.38 17.94 38.21 73.44 29 Nov 99 4.84 4.47 2.63 12.04 21.44 106.74 26 Nov 99 4.63 4.56 3.00 13.51 15.07 75.00 22 Nov 99 7.25 6.94 6.75 58.62 65.77 70.37 18 Nov 99 8.00 6.00 5.00 28.38 71.17 105.40 18 Nov 99 16 Nov 99 10.25 9.25 9.00 17.07 29.73 33.33 15 Nov 99 19.75 17.00 13.63 26.58 47.06 83.49 15 Nov 99 12.38 12.25 13.75 69.70 71.43 52.73 15 Nov 99 16.75 16.50 15.81 13.43 15.15 20.16 12 Nov 99 9.31 9.19 9.38 (3.36) (2.04) (4.00) 10 Nov 99 33.00 25.50 25.81 15.15 49.02 47.22 09 Nov 99 09 Nov 99 16.25 13.69 10.00 13.85 35.16 85.00 09 Nov 99 17.50 17.13 14.25 31.43 34.31 61.40 09 Nov 99 13.44 13.25 10.38 11.63 13.21 44.58 08 Nov 99 10.00 9.19 8.50 (13.37) (5.71) 1.92 08 Nov 99 13.00 11.00 16.31 44.23 70.46 14.94 04 Nov 99 16.25 9.94 8.88 39.45 128.04 155.34 04 Nov 99 7.28 7.00 6.69 3.00 7.14 12.15 03 Nov 99 5.50 4.88 4.63 86.36 110.26 121.62 26 Oct 99 6.00 6.88 7.25 11.83 (2.40) (7.45) 26 Oct 99 4.75 4.31 4.25 15.79 27.54 29.41 21 Oct 99 5.75 5.81 5.38 56.52 54.84 67.44 21 Oct 99 3.88 4.00 3.25 30.32 26.25 55.39 20 Oct 99 5.50 5.25 5.19 27.27 33.33 34.94 20 Oct 99 3.94 3.63 4.13 65.08 79.31 57.58 20 Oct 99 5.75 5.56 5.98 13.04 16.85 8.62
49 DAIRY MART CONVENIENCE STORES, INC. Premium Analysis of All Completed Non-Financial Institution and Non-Technology Transactions With Total Consideration Between $25 Million and $250 Million Since 1/1/99 (1)
- -------------------------------------------------------------------------------------------------------- DATE DATE ANNOUNCED EFFECTIVE TARGET NAME - -------------------------------------------------------------------------------------------------------- 15 Oct 99 31 Dec 99 Zions Cooperative Mercantile Institution 15 Oct 99 05 Jan 00 Crystal Gas Storage Inc 07 Oct 99 08 Nov 99 Presley Cos 06 Oct 99 02 Mar 00 Lady Luck Gaming Corp 06 Oct 99 06 Mar 00 Conso International Corp 05 Oct 99 19 Nov 99 CombiChem Inc 05 Oct 99 17 Jan 00 Vivid Technologies Inc 01 Oct 99 08 Nov 99 M/A/R/C Group 27 Sep 99 27 Sep 99 Orange-co Inc 27 Sep 99 05 Nov 99 Orange-co Inc 22 Sep 99 11 Oct 00 Laser Power Corp 20 Sep 99 02 Nov 99 Diatide Inc 15 Sep 99 07 Jun 00 Align-Rite International Inc 09 Sep 99 28 Sep 00 Fall River Gas Co 09 Sep 99 31 Oct 99 Novacare Employee Services Inc (NovaCare Inc) 06 Sep 99 01 Dec 99 International Telecommunication Data Systems Inc 01 Sep 99 20 Oct 99 Effective Management Systems Inc 26 Aug 99 23 Sep 99 Garden Ridge Corp 24 Aug 99 02 Feb 00 Aavid Thermal Technologies Inc 23 Aug 99 11 Nov 99 General Surgical Innovations 19 Aug 99 30 Sep 99 Metrowerks Inc 18 Aug 99 16 Mar 00 Gentiva Health Services Inc (Olsten Corp) 13 Aug 99 22 Sep 99 Turner Corp 12 Aug 99 22 Dec 99 Intelliquest Information Group Inc 12 Aug 99 04 Oct 99 United Capital Corp 11 Aug 99 24 Nov 99 HCIA Inc(VS&A Communications Partners III LP) 10 Aug 99 20 Sep 99 Copley Pharmaceutical Inc(Hoechst Celanese Corp) 02 Aug 99 03 Sep 99 Collagen Aesthetics Inc 02 Aug 99 12 Nov 99 SIBIA Neurosciences Inc 30 Jul 99 21 Oct 99 General Housewares Corp 30 Jul 99 12 Jun 00 Todd-AO Corp 30 Jul 99 12 Jan 00 Xionics Document Technologies Inc 29 Jul 99 10 Sep 99 Concord Fabrics Inc 28 Jul 99 19 Oct 99 Kofax Image Products 28 Jul 99 07 Sep 99 Easco Inc(American Industrial Partners) 27 Jul 99 27 Dec 99 Asahi-America Inc 27 Jul 99 01 Sep 99 Mark VII Inc 26 Jul 99 01 Sep 99 Exogen Inc 22 Jul 99 10 Mar 00 White Cap Industries Inc 15 Jul 99 08 Nov 00 EnergyNorth Inc 15 Jul 99 04 Feb 00 SpecTran Corp 15 Jul 99 01 Sep 99 Information Advantage Software Inc 13 Jul 99 07 Jan 00 Thermo Vision Corp(Thermo Instrument/Thermo Electron) 12 Jul 99 09 Aug 99 Data-TRAK International Inc 12 Jul 99 17 Dec 99 Happy Kids Inc 12 Jul 99 03 May 00 TSI Inc 07 Jul 99 31 Aug 99 Smartflex Systems(Rogers Corp) 01 Jul 99 16 Sep 99 ADFlex Solutions Inc 30 Jun 99 09 Aug 99 TechForce Corp 24 Jun 99 08 Nov 99 Think New Ideas Inc 22 Jun 99 24 Sep 99 Diamond Multimedia Systems Inc 22 Jun 99 24 Sep 99 Market Guide Inc 18 Jun 99 26 Jul 99 Durakon Industries Inc 16 Jun 99 26 Aug 99 Central Sprinkler Corp 14 Jun 99 02 Aug 99 OrCAD Inc 14 Jun 99 02 Nov 99 Physicians Specialty Corp 11 Jun 99 26 Oct 99 Supertel Hospitality Inc 11 Jun 99 22 Jul 99 Sterigenics International Inc - ------------------------------------------------------------------------------------------------------------------------- DATE DEAL OFFER ANNOUNCED ACQUIROR NAME VALUE (MIL) PRICE/SHARE (1) - ------------------------------------------------------------------------------------------------------------------------- 15 Oct 99 May Department Stores Co 49.70 22.50 15 Oct 99 El Paso Energy Corp 158.39 57.00 07 Oct 99 William Lyon Co 7.00 0.66 06 Oct 99 Isle of Capri Casinos Inc 235.57 12.00 06 Oct 99 CIC Acquisition Co 66.11 9.00 05 Oct 99 EI du Pont de Nemours and Co 93.47 6.75 05 Oct 99 EG&G Inc 64.90 6.34 01 Oct 99 Omnicom Group Inc 112.52 20.00 27 Sep 99 Reservoir Capital Group LLC 37.82 7.00 27 Sep 99 Reservoir Capital Group LLC 34.36 7.00 22 Sep 99 II-VI Inc 38.93 4.32 20 Sep 99 Schering Berlin Inc(Schering AG) 126.08 9.50 15 Sep 99 Photronics Inc 116.85 23.45 09 Sep 99 Southern Union Co 51.60 23.50 09 Sep 99 Investor Group 72.55 2.50 06 Sep 99 Amdocs Ltd 236.81 13.08 01 Sep 99 IFS Americas Inc (IFS AB) 21.74 4.50 26 Aug 99 Garden Ridge Corp 8.33 7.00 24 Aug 99 Willis Stein & Partners LP (Willis Stein & Partners) 264.09 25.50 23 Aug 99 Tyco International Ltd 108.31 7.50 19 Aug 99 Motorola Inc 94.87 6.25 18 Aug 99 Shareholders 99.08 4.88 13 Aug 99 Hochtief AG(RWE AG) 394.76 28.63 12 Aug 99 WPP Group PLC 111.21 12.70 12 Aug 99 United Capital Corp 4.81 17.50 11 Aug 99 VS&A Communications Partners III LP(Veronis Suhler & Associates) 134.70 11.00 10 Aug 99 Teva Pharmaceutical USA Inc (Teva Pharmaceutical Industries Inc) 214.84 11.00 02 Aug 99 Inamed Corp 140.80 16.25 02 Aug 99 Merck & Co Inc 88.59 8.50 30 Jul 99 Corning Consumer Products Co(Corning Inc) 148.58 28.75 30 Jul 99 Liberty Media Group(AT&T Corp) 84.68 14.80 30 Jul 99 Oak Technology Inc 82.29 6.10 29 Jul 99 Concord Fabrics Inc 10.14 7.88 28 Jul 99 Investor Group 70.75 12.75 28 Jul 99 Caradon PLC 154.71 15.20 27 Jul 99 Asahi Organic Chemical Industries 28.59 9.55 27 Jul 99 MSAS Global Logistics Inc (Ocean Group PLC) 225.84 23.00 26 Jul 99 Smith & Nephew Inc(Smith & Nephew Consolidated/Smith & Nephew PLC) 67.35 5.15 22 Jul 99 Investor Group 185.40 16.50 15 Jul 99 Eastern Enterprises 202.03 47.00 15 Jul 99 Lucent Technologies Inc 65.12 9.00 15 Jul 99 Sterling Software Inc 177.53 6.50 13 Jul 99 Thermo Instrument Systems Inc (Thermo Electron Corp) 11.87 7.00 12 Jul 99 Data-TRAK International Inc 19.80 6.00 12 Jul 99 HIG Capital LLC 119.59 11.50 12 Jul 99 JJF Acquisition Inc 167.91 15.25 07 Jul 99 Saturn Electronics & Engineering 69.11 10.50 01 Jul 99 Innovex Inc 34.32 3.80 30 Jun 99 Equant NV 72.62 8.50 24 Jun 99 AnswerThink Consulting Group 215.31 19.25 22 Jun 99 S3 Inc 182.98 4.90 22 Jun 99 Multex.com Inc 149.76 29.00 18 Jun 99 Littlejohn & Co LLC 101.23 16.00 16 Jun 99 Tyco International Ltd 125.51 30.00 14 Jun 99 Cadence Design Systems Inc 129.48 13.00 14 Jun 99 TA Associates 100.88 10.50 11 Jun 99 Humphrey Hospitality 52.82 10.89 11 Jun 99 Ion Beam Applications SA 213.74 27.00 - ------------------------------------------------------------------------------------------------------- CLOSING PRICE PREMIUM ------------------------------------ ------------------------------------------- 1 day 1 week 4 weeks 1 day 1 week 4 weeks DATE prior to prior to prior to prior to prior to prior to ANNOUNCED ann. date ann. date ann. date ann. date ann. date ann. date - ------------------------------------------------------------------------------------------------------- 15 Oct 99 15 Oct 99 45.00 44.13 45.25 26.67 29.18 25.97 07 Oct 99 0.81 0.81 0.94 (19.39) (19.39) (30.13) 06 Oct 99 8.13 7.50 8.56 47.69 60.00 40.15 06 Oct 99 5.06 5.13 5.56 77.78 75.61 61.80 05 Oct 99 5.50 5.13 4.75 22.73 31.71 42.11 05 Oct 99 3.56 4.38 4.00 77.99 44.94 58.53 01 Oct 99 14.13 14.13 14.25 41.59 41.59 40.35 27 Sep 99 27 Sep 99 22 Sep 99 1.25 1.25 1.69 245.60 245.60 156.00 20 Sep 99 7.88 8.63 5.81 20.64 10.15 63.44 15 Sep 99 09 Sep 99 20.63 19.75 13.94 18.99 09 Sep 99 2.63 2.59 3.19 (4.76) (3.61) (21.57) 06 Sep 99 8.13 7.88 8.13 60.97 66.08 60.97 01 Sep 99 26 Aug 99 5.94 5.94 6.06 17.90 17.90 15.46 24 Aug 99 19.75 20.69 19.81 29.11 23.26 28.71 23 Aug 99 5.50 5.06 5.06 36.36 48.15 48.15 19 Aug 99 5.06 3.75 3.25 23.46 66.67 92.31 18 Aug 99 13 Aug 99 25.31 27.00 21.25 13.09 6.02 34.71 12 Aug 99 9.25 9.44 9.38 37.30 34.57 35.47 12 Aug 99 14.88 15.00 14.63 17.65 16.67 19.66 11 Aug 99 8.38 8.31 10.56 31.34 32.33 4.14 10 Aug 99 8.88 9.81 10.06 23.94 12.10 9.32 02 Aug 99 11.19 10.56 12.25 45.25 53.85 32.65 02 Aug 99 5.25 5.06 4.97 61.91 67.90 71.07 30 Jul 99 20.06 19.25 19.81 43.30 49.35 45.11 30 Jul 99 8.69 6.63 6.06 70.36 123.40 144.12 30 Jul 99 5.06 4.88 4.47 20.53 25.17 36.55 29 Jul 99 5.63 5.81 5.88 40.00 35.48 34.04 28 Jul 99 9.38 9.75 9.75 36.00 30.77 30.77 28 Jul 99 12.00 11.25 10.56 26.67 35.11 43.91 27 Jul 99 7.00 7.00 7.75 36.43 36.43 23.23 27 Jul 99 18.63 17.50 16.50 23.49 31.43 39.39 26 Jul 99 4.31 2.44 2.31 19.42 111.28 122.70 22 Jul 99 11.06 11.38 10.63 49.15 45.06 55.29 15 Jul 99 29.69 29.63 28.63 58.32 58.65 64.19 15 Jul 99 11.50 11.63 8.81 (21.74) (22.58) 2.13 15 Jul 99 5.50 3.81 4.16 18.18 70.49 56.39 13 Jul 99 4.00 4.38 3.38 75.00 60.00 107.41 12 Jul 99 5.31 5.19 4.53 12.94 15.66 32.41 12 Jul 99 10.50 8.94 14.13 9.52 28.67 (18.58) 12 Jul 99 10.69 10.50 9.25 42.69 45.24 64.87 07 Jul 99 5.03 3.31 3.44 108.70 216.98 205.46 01 Jul 99 4.00 3.63 3.75 (5.00) 4.83 1.33 30 Jun 99 7.63 7.75 7.63 11.48 9.68 11.48 24 Jun 99 17.00 16.25 14.00 13.24 18.46 37.50 22 Jun 99 5.69 4.03 4.69 (13.85) 21.55 4.53 22 Jun 99 22.88 19.00 16.88 26.78 52.63 71.85 18 Jun 99 12.06 12.38 12.81 32.64 29.29 24.88 16 Jun 99 22.38 20.00 16.88 34.08 50.00 77.78 14 Jun 99 9.38 8.25 7.63 38.67 57.58 70.49 14 Jun 99 8.75 8.50 8.38 20.00 23.53 25.37 11 Jun 99 9.50 9.00 9.00 14.61 20.98 20.98 11 Jun 99 19.50 17.75 15.13 38.46 52.11 78.51
50 DAIRY MART CONVENIENCE STORES, INC. Premium Analysis of All Completed Non-Financial Institution and Non-Technology Transactions With Total Consideration Between $25 Million and $250 Million Since 1/1/99 (1)
- -------------------------------------------------------------------------------------------------------- DATE DATE ANNOUNCED EFFECTIVE TARGET NAME - -------------------------------------------------------------------------------------------------------- 10 Jun 99 07 Oct 99 RIBI ImmunoChem Research Inc 09 Jun 99 20 Jul 99 Automobile Protection Corp 08 Jun 99 21 Jul 99 QMS Inc(Lason Inc) 07 Jun 99 01 Oct 99 Neopath Inc 07 Jun 99 23 Aug 99 ViaGrafix Corp 07 Jun 99 30 Sep 99 Jevic Transportation Inc 04 Jun 99 12 Jul 99 Stimsonite Corp 02 Jun 99 30 Aug 99 O'Sullivan Corp 27 May 99 14 Jul 99 Marcam Solutions Inc 27 May 99 01 Sep 99 Empi Inc 26 May 99 04 Aug 99 Golden Genesis Co(Golden Technologies Co Inc/ACX Technologies) 26 May 99 26 Jul 99 Utah Medical Products Inc 24 May 99 17 Aug 99 Texas Micro Inc 21 May 99 30 Jul 99 AmeriLink Corp 20 May 99 15 Sep 99 Therapeutic Antibodies Inc 17 May 99 16 Aug 99 ULTRADATA Corp 14 May 99 29 Oct 99 Kentek Information Systems Inc 14 May 99 23 Sep 99 United Foods Inc 13 May 99 23 Aug 99 Compass International Services Corp 12 May 99 21 Jun 99 Optek Technology Inc 12 May 99 05 Nov 99 Price Enterprises Inc 11 May 99 14 Sep 99 Meridian Data 11 May 99 21 Jun 99 Gradall Industries Inc 10 May 99 18 Jun 99 EMCON 10 May 99 14 Jun 99 ReSound Corp 09 May 99 30 Jun 99 Voice Control Systems Industries Inc 07 May 99 29 Sep 99 Instron Corp 06 May 99 18 Jun 99 Shelby Williams Industries Inc 05 May 99 17 Sep 99 Enterprise Software Inc 03 May 99 10 Jun 99 Amerihost Properties Inc 03 May 99 16 Aug 99 Integrated Sensor Solutions Inc 30 Apr 99 03 Aug 99 Artecon Inc 27 Apr 99 01 Jun 99 Hilite Industries Inc 27 Apr 99 25 May 99 Software AG Systems Inc (Thayer Capital Partners) 26 Apr 99 19 Aug 99 Bridgeport Machines Inc 21 Apr 99 23 Jul 99 TAVA Technologies Inc 16 Apr 99 26 May 99 DSI Toys Inc 12 Apr 99 10 May 99 Supreme Industries Inc 05 Apr 99 16 Jul 99 Mosaix Inc 05 Apr 99 19 Jul 99 National Propane Partners LP 29 Mar 99 23 Dec 99 Grease Monkey Holding Corp 25 Mar 99 10 May 99 Sheridan Healthcare Inc 23 Mar 99 01 May 99 Interlink Computer Sciences Inc 19 Mar 99 13 Aug 99 Rock Bottom Restaurants Inc 17 Mar 99 15 Aug 99 Trion Inc 16 Mar 99 23 Jul 99 SeaMED Corp 15 Mar 99 30 May 99 Haskel International Inc 12 Mar 99 28 May 99 Trak Auto Corp(Dart Group Corp) 11 Mar 99 26 Aug 99 LAI Worldwide Inc 11 Mar 99 01 Sep 99 Sodak Gaming Inc 10 Mar 99 29 Jul 99 Morgan Products Ltd 08 Mar 99 24 Jun 99 Analysis & Technology Inc 08 Mar 99 01 Dec 99 ENStar Inc 08 Mar 99 10 Aug 99 LabOne Inc(Lab Holdings Inc) 04 Mar 99 28 Jun 99 Genzyme Surgical Products (Genzyme General/Genzyme Corp) 04 Mar 99 01 Jun 99 K&G Men's Center Inc 26 Feb 99 01 Jun 99 Travel Ports of America Inc 26 Feb 99 26 Feb 99 Aris Industries Inc 24 Feb 99 21 May 99 Industrial Scientific Corp. - -------------------------------------------------------------------------------------------------------------------------- DATE DEAL OFFER ANNOUNCED ACQUIROR NAME VALUE (MIL) PRICE/SHARE (1) - -------------------------------------------------------------------------------------------------------------------------- 10 Jun 99 Corixa Corp 55.27 2.29 09 Jun 99 Ford Motor Co 169.88 13.00 08 Jun 99 Minolta Co Ltd 34.00 6.25 07 Jun 99 AutoCyte Inc 107.50 6.13 07 Jun 99 7th Street.com 55.15 9.23 07 Jun 99 Yellow Corp 194.46 14.00 04 Jun 99 Avery Dennison Corp 131.17 14.75 02 Jun 99 Geon Co(BF Goodrich Co) 191.79 12.25 27 May 99 Invensys PLC 59.50 7.50 27 May 99 Carlyle Group LP 165.32 26.50 26 May 99 Kyocera International Inc (Kyocera Corp) 40.48 2.33 26 May 99 Utah Medical Products Inc 9.20 8.00 24 May 99 RadiSys Corp 119.56 8.23 21 May 99 Tandy Corp 70.73 15.34 20 May 99 Proteus International PLC 38.60 0.74 17 May 99 CFI ProServices Inc 64.02 7.50 14 May 99 Investor Group 42.09 8.29 14 May 99 Pictsweet LLC 23.84 3.50 13 May 99 NCO Group Inc 107.74 7.80 12 May 99 Dyson-Kissner-Moran Corp 202.56 25.50 12 May 99 Excel Legacy Corp(Excel Realty Trust Inc) 106.45 8.50 11 May 99 Quantum Corp 93.78 9.41 11 May 99 JLG Industries Inc 196.20 20.00 10 May 99 IT Group Inc 64.30 6.75 10 May 99 GN Great Nordic Ltd 185.37 8.00 09 May 99 Koninklijke Philips Electronics NV 57.97 4.00 07 May 99 Kirtland Capital Partners 159.94 22.00 06 May 99 Falcon Products Inc 145.15 16.50 05 May 99 LiveWire Ventures LLC 74.01 9.25 03 May 99 Amerihost Properties Inc 4.00 4.00 03 May 99 Texas Instruments Inc 64.67 8.05 30 Apr 99 Box Hill Systems Corp 52.30 2.40 27 Apr 99 Investor Group 71.00 14.25 27 Apr 99 Software AG Systems Inc (Thayer Capital Partners) 0.02 8.00 26 Apr 99 Goldman Industrial Group Inc 57.04 10.00 21 Apr 99 Real Software NV 196.54 8.00 16 Apr 99 MVII LLC 7.01 4.38 12 Apr 99 Supreme Industries Inc 17.01 10.00 05 Apr 99 Lucent Technologies Inc 129.29 10.77 05 Apr 99 Columbia Propane Corp(Columbia Energy Group) 96.22 12.00 29 Mar 99 QL3000 Inc 7.49 1.00 25 Mar 99 Investor Group 74.83 9.25 23 Mar 99 Sterling Software Inc 63.02 7.00 19 Mar 99 RB Capital Inc 58.53 10.00 17 Mar 99 Fedders Corp 39.56 5.50 16 Mar 99 Plexus Corp 78.45 13.68 15 Mar 99 Investor Group 65.39 12.90 12 Mar 99 Halart LLC 53.18 9.00 11 Mar 99 TMP Worldwide Inc 74.21 9.23 11 Mar 99 International Game Technology 228.42 10.00 10 Mar 99 Andersen Corp 41.44 4.00 08 Mar 99 Anteon Corp 108.51 26.00 08 Mar 99 Investor Group 13.22 12.50 08 Mar 99 Lab Holdings Inc 34.29 12.75 04 Mar 99 Shareholders 69.38 4.69 04 Mar 99 Men's Wearhouse Inc 118.27 11.50 26 Feb 99 TravelCenters of America Inc 36.87 4.30 26 Feb 99 Investor 20.00 0.44 24 Feb 99 Investor Group 31.11 28.50 - --------------------------------------------------------------------------------------------------------- CLOSING PRICE PREMIUM ------------------------------------ ------------------------------------------- 1 day 1 week 4 weeks 1 day 1 week 4 weeks DATE prior to prior to prior to prior to prior to prior to ANNOUNCED ann. date ann. date ann. date ann. date ann. date ann. date - --------------------------------------------------------------------------------------------------------- 10 Jun 99 1.78 2.00 2.25 28.28 14.25 1.56 09 Jun 99 11.88 11.00 9.00 9.47 18.18 44.44 08 Jun 99 5.69 4.50 3.88 9.89 38.89 61.29 07 Jun 99 3.94 4.00 4.03 55.56 53.13 51.94 07 Jun 99 7.00 6.31 6.19 31.86 46.22 49.17 07 Jun 99 10.75 9.63 9.25 30.23 45.46 51.35 04 Jun 99 7.31 7.50 7.50 101.71 96.67 96.67 02 Jun 99 9.38 9.13 8.50 30.67 34.25 44.12 27 May 99 3.75 2.56 1.94 100.00 192.68 287.10 27 May 99 20.81 20.75 22.69 27.33 27.71 16.80 26 May 99 1.88 1.81 1.50 24.27 28.55 55.33 26 May 99 7.06 6.19 6.25 13.27 29.29 28.00 24 May 99 4.88 4.94 4.69 68.72 66.58 75.47 21 May 99 10.88 9.94 7.13 41.03 54.34 115.26 20 May 99 17 May 99 14 May 99 7.63 7.63 7.00 8.72 8.72 18.43 14 May 99 2.50 2.75 2.44 40.00 27.27 43.59 13 May 99 7.38 6.94 7.00 5.82 12.49 11.49 12 May 99 19.63 17.25 14.06 29.94 47.83 81.33 12 May 99 6.75 6.00 5.63 25.93 41.67 51.11 11 May 99 3.50 3.25 3.00 168.94 189.63 213.77 11 May 99 17.50 15.88 14.69 14.29 25.98 36.17 10 May 99 5.47 5.06 3.88 23.43 33.33 74.19 10 May 99 6.56 5.25 4.19 21.91 52.38 91.05 09 May 99 3.19 3.06 3.19 25.49 30.61 25.49 07 May 99 16.13 17.00 16.75 36.43 29.41 31.34 06 May 99 13.75 13.25 9.94 20.00 24.53 66.04 05 May 99 7.50 7.38 6.19 23.33 25.42 49.50 03 May 99 3.44 3.38 3.25 16.36 18.52 23.08 03 May 99 6.13 4.56 4.28 31.43 76.44 88.03 30 Apr 99 2.38 2.25 1.13 1.05 6.67 113.33 27 Apr 99 10.88 10.75 10.50 31.03 32.56 35.71 27 Apr 99 6.75 6.00 8.88 18.52 33.33 (9.86) 26 Apr 99 5.97 5.63 6.50 67.54 77.78 53.85 21 Apr 99 5.94 5.75 5.03 34.74 39.13 59.01 16 Apr 99 2.25 2.25 2.00 94.67 94.67 119.00 12 Apr 99 05 Apr 99 8.38 7.94 7.75 28.56 35.65 38.93 05 Apr 99 6.31 6.50 5.00 90.10 84.62 140.00 29 Mar 99 25 Mar 99 8.50 8.25 7.88 8.82 12.12 17.46 23 Mar 99 4.94 4.81 3.38 41.77 45.46 107.41 19 Mar 99 6.50 6.50 5.13 53.85 53.85 95.12 17 Mar 99 3.50 3.25 3.50 57.14 69.23 57.14 16 Mar 99 7.56 7.81 8.00 80.83 75.04 70.94 15 Mar 99 9.06 8.63 8.50 42.35 49.57 51.77 12 Mar 99 7.00 7.13 7.38 28.57 26.32 22.03 11 Mar 99 6.69 7.38 6.00 38.03 25.16 53.84 11 Mar 99 8.00 8.00 7.44 25.00 25.00 34.45 10 Mar 99 3.25 2.75 2.50 23.08 45.46 60.00 08 Mar 99 21.88 22.38 21.00 18.86 16.20 23.81 08 Mar 99 8.00 7.88 8.25 56.25 58.73 51.52 08 Mar 99 10.88 11.56 11.75 17.24 10.27 8.51 04 Mar 99 04 Mar 99 8.38 7.91 7.94 37.35 45.49 44.92 26 Feb 99 3.25 3.69 3.50 32.31 16.61 22.86 26 Feb 99 24 Feb 99 20.50 20.38 20.50
51 DAIRY MART CONVENIENCE STORES, INC. Premium Analysis of All Completed Non-Financial Institution and Non-Technology Transactions With Total Consideration Between $25 Million and $250 Million Since 1/1/99 (1)
- --------------------------------------------------------------------------------------------------------- DATE DATE ANNOUNCED EFFECTIVE TARGET NAME - --------------------------------------------------------------------------------------------------------- 23 Feb 99 31 Mar 99 Control Devices Inc 22 Feb 99 22 Jun 99 SEEQ Technology Inc 19 Feb 99 31 Mar 99 Oacis Healthcare Holdings Corp (Bell Atlantic Corp) 17 Feb 99 06 Aug 99 Equitrac Corp 17 Feb 99 27 Aug 99 Doughtie's Foods Inc 17 Feb 99 07 May 99 Parts Source Inc 17 Feb 99 09 Jul 99 Precision Systems Inc 11 Feb 99 06 May 99 ISE Labs Inc 10 Feb 99 26 Mar 99 Hudson General Corp 09 Feb 99 08 Jul 99 Coffee People Inc(Second Cup Ltd) 29 Jan 99 09 Aug 99 Rally's Hamburgers Inc 28 Jan 99 10 May 99 Signature Inns Inc 22 Jan 99 11 Jun 99 Treadco Inc(Arkansas Best Corp) 19 Jan 99 24 Mar 99 Audits & Surveys Worldwide Inc 19 Jan 99 13 Aug 99 Sparta Pharmaceuticals Inc 19 Jan 99 09 Apr 99 AG Associates Inc 18 Jan 99 28 Apr 99 FDP Corp 13 Jan 99 02 Mar 99 Boston Celtics LP 11 Jan 99 08 Mar 99 Shopping.com 11 Jan 99 22 Feb 99 Alarmguard Holdings Inc 07 Jan 99 17 Feb 99 Trident International Inc 07 Jan 99 24 Feb 99 Defiance Inc 06 Jan 99 01 Mar 99 ExecuStay Corp - --------------------------------------------------------------------------------------------------------------------------- DATE DEAL OFFER ANNOUNCED ACQUIROR NAME VALUE (MIL) PRICE/SHARE (1) - --------------------------------------------------------------------------------------------------------------------------- 23 Feb 99 First Technology PLC 142.44 16.25 22 Feb 99 LSI Logic Corp 104.33 2.98 19 Feb 99 Science Applications International Corp{SAIC} 74.58 4.45 17 Feb 99 Investor Group 81.53 21.00 17 Feb 99 Sysco Corp 25.42 17.00 17 Feb 99 General Parts Inc 10.24 3.00 17 Feb 99 Anshutz Digital Media Inc 20.17 1.00 11 Feb 99 ASE Test Ltd(Advanced Semiconductor Engineering Inc) 98.00 8.00 10 Feb 99 GlobeGround GmbH(Deutsche Lufthansa AG) 134.66 76.00 09 Feb 99 Diedrich Coffee Inc 31.67 2.92 29 Jan 99 Checkers Drive-In Restaurants Inc 35.82 1.06 28 Jan 99 Jameson Inns Inc 41.22 6.06 22 Jan 99 Arkansas Best Corp 22.65 9.00 19 Jan 99 United Information Group (United News & Media PLC) 43.22 3.24 19 Jan 99 Supergen Inc 38.30 1.90 19 Jan 99 Steag AG(Rag AG) 34.58 5.50 18 Jan 99 SunGard Data Systems Inc 89.69 13.88 13 Jan 99 Castle Creek Partners LP 7.31 17.00 11 Jan 99 Compaq Computer Corp 130.09 18.25 11 Jan 99 ADT Inc(ADT Group PLC) 53.38 9.25 07 Jan 99 Illinois Tool Works Inc 111.65 16.50 07 Jan 99 General Chemical Group Inc 57.81 9.50 06 Jan 99 Marriott International Inc (Host Marriott Corp) 64.84 14.00 - -------------------------------------------------------------------------------------------------------- CLOSING PRICE PREMIUM ------------------------------------ ------------------------------------------- 1 day 1 week 4 weeks 1 day 1 week 4 weeks DATE prior to prior to prior to prior to prior to prior to ANNOUNCED ann. date ann. date ann. date ann. date ann. date ann. date - -------------------------------------------------------------------------------------------------------- 23 Feb 99 13.50 13.63 15.25 20.37 19.27 6.56 22 Feb 99 2.03 2.06 1.38 46.91 44.68 117.02 19 Feb 99 3.19 3.13 3.13 39.61 42.40 42.40 17 Feb 99 20.13 19.88 18.13 4.35 5.66 15.86 17 Feb 99 13.25 13.75 11.94 28.30 23.64 42.41 17 Feb 99 2.50 1.50 1.25 20.00 100.00 140.00 17 Feb 99 2.06 2.38 2.63 (51.52) (57.90) (61.91) 11 Feb 99 10 Feb 99 54.63 55.00 50.00 39.13 38.18 52.00 09 Feb 99 1.19 1.50 1.81 145.47 94.33 60.83 29 Jan 99 1.03 1.19 0.56 2.50 (10.99) 87.91 28 Jan 99 3.88 2.94 3.03 56.47 106.40 100.02 22 Jan 99 19 Jan 99 2.44 2.38 2.50 32.92 36.42 29.60 19 Jan 99 19 Jan 99 4.38 4.13 3.69 25.71 33.33 49.15 18 Jan 99 12.13 11.50 10.13 14.47 20.70 37.09 13 Jan 99 14.00 14.63 10.00 21.43 16.24 70.00 11 Jan 99 11 Jan 99 9.75 8.19 7.63 (5.13) 12.98 21.31 07 Jan 99 9.25 9.00 9.25 78.38 83.33 78.38 07 Jan 99 6.13 6.75 6.50 55.10 40.74 46.15 06 Jan 99 13.56 13.06 12.75 3.23 7.18 9.80
----------------------------------------------------------- MEDIAN 29.1 % 35.3 % 45.4 % -----------------------------------------------------------
Copyright(C)2001, Thomson Financial Securities Data. (1) Includes all forms of consideration based on date of announcement. 52 DAIRY MART CONVENIENCE STORES, INC. Premium Analysis of All Completed Non-Financial Institution and Non-Technology Transactions With Total Consideration Between $25 Million and $250 Million Since 1/1/99 (1) (ALL CASH CONSIDERATION)
- -------------------------------------------------------------------------------------------------------------- DATE DATE ANNOUNCED EFFECTIVE TARGET NAME - -------------------------------------------------------------------------------------------------------------- 04 Jan 01 20 Feb 01 TravelNow.com Inc 20 Dec 00 09 Feb 01 Marine Transport Corp 15 Dec 00 29 Jan 01 Edgewater Technology Inc 07 Dec 00 25 Jan 01 Ramp Networks Inc 06 Nov 00 12 Dec 00 kforce.com Inc 06 Nov 00 03 Jan 01 Equinox Systems Inc 03 Nov 00 14 Dec 00 Designs Inc 03 Nov 00 25 Jan 01 Getty Petroleum Marketing Inc 25 Oct 00 02 Jan 01 EduTrek International Inc 25 Oct 00 22 Dec 00 pcOrder.com 25 Oct 00 06 Dec 00 Continuus Software Corp 25 Oct 00 06 Dec 00 Continuus Software Corp 17 Oct 00 29 Nov 00 Trex Medical Corp(ThermoTrex Corp/Thermo Electron Corp) 17 Oct 00 01 Dec 00 JPS Packaging Co 12 Oct 00 28 Nov 00 Cerprobe Corporation 06 Oct 00 20 Dec 00 Taco Cabana Inc 04 Oct 00 12 Dec 00 Home-Stake Oil & Gas Co 03 Oct 00 16 Nov 00 JLK Direct Distribution Inc (Kennametal Inc) 26 Sep 00 01 Dec 00 Rainforest Cafe Inc 25 Sep 00 02 Feb 01 @plan.inc 19 Sep 00 30 Nov 00 US Franchise Systems Inc 13 Sep 00 18 Oct 00 BeautiControl Cosmetics Inc 13 Sep 00 18 Oct 00 BeautiControl Cosmetics Inc 13 Sep 00 17 Nov 00 Fatbrain.com Inc 05 Sep 00 23 Oct 00 Engineering Animation Inc 01 Sep 00 18 Dec 00 Minolta-QMS Inc(Minolta Co Ltd) 31 Aug 00 16 Oct 00 Splash Technology Holdings Inc 29 Aug 00 13 Nov 00 Printrak International Inc 28 Aug 00 24 Jan 01 Washington Homes Inc 28 Aug 00 04 Oct 00 800-JR Cigar Inc 11 Aug 00 01 Oct 00 Piercing Pagoda Inc 11 Aug 00 06 Oct 00 BI Inc 04 Aug 00 22 Sep 00 EndoSonics Corp 31 Jul 00 30 Aug 00 Big Dog Holdings Inc 26 Jul 00 27 Dec 00 Video Services Corp 25 Jul 00 06 Sep 00 Chemfab Corp 20 Jul 00 17 Nov 00 JLK Direct Distribution Inc (Kennametal Inc) 20 Jul 00 01 Sep 00 CDNow Inc 19 Jul 00 20 Sep 00 Carey International Inc 17 Jul 00 25 Aug 00 Concentrex Inc 17 Jul 00 24 Aug 00 CareerBuilder Inc 14 Jul 00 21 Aug 00 Serengeti Eyewear Inc 11 Jul 00 28 Dec 00 In Home Health Inc(Manor Care Inc) 10 Jul 00 17 Aug 00 Business Resource Group 10 Jul 00 17 Aug 00 Business Resource Group 06 Jul 00 02 Jan 01 Engineering Measurements Co 29 Jun 00 01 Oct 00 Utilx Corp 27 Jun 00 29 Sep 00 Tech-Sym Corp 27 Jun 00 22 Sep 00 National-Standard Co 27 Jun 00 02 Aug 00 Quest Education Corp 20 Jun 00 27 Oct 00 Hagler Bailly Inc 16 Jun 00 31 Aug 00 Pacific Gateway Properties 08 Jun 00 12 Sep 00 OneMain.com Inc 06 Jun 00 13 Oct 00 Trimark Holdings Inc 30 May 00 14 Jul 00 PremiumWear Inc 26 May 00 20 Jul 00 KLLM Transport Services Inc 26 May 00 17 Nov 00 Acme Electric Corp 25 May 00 01 Aug 00 Protocol Systems Inc 23 May 00 31 Jul 00 Pentech International Inc 11 May 00 15 Nov 00 Gatefield Corp 10 May 00 26 Jun 00 WMF Group Ltd 04 May 00 21 Jun 00 Provantage Health Services Inc (ShopKo Stores Inc) - --------------------------------------------------------------------------------------------------------------------------------- DATE DEAL OFFER ANNOUNCED ACQUIROR NAME VALUE (MIL) PRICE/SHARE (1) - --------------------------------------------------------------------------------------------------------------------------------- 04 Jan 01 Hotel Reservations Network Inc (USA Networks Inc) 45.23 4.16 20 Dec 00 Crowley Maritime Corp 47.83 7.00 15 Dec 00 Edgewater Technology Inc 130.00 8.00 07 Dec 00 Nokia Oy AB 132.14 5.80 06 Nov 00 kforce.com Inc 55.00 5.50 06 Nov 00 Avocent Corp 56.91 9.75 03 Nov 00 Designs Inc 4.40 2.50 03 Nov 00 LUKoil Holdings 71.09 5.00 25 Oct 00 Career Education Corp 44.61 3.31 25 Oct 00 Trilogy Software Inc 48.35 6.38 25 Oct 00 Telelogic AB 43.33 3.46 25 Oct 00 Telelogic AB 43.33 3.46 17 Oct 00 Thermo Electron Corp 16.14 2.15 17 Oct 00 Pechiney SA 45.47 7.86 12 Oct 00 Kulicke & Soffa Industries Inc 201.37 20.00 06 Oct 00 Carrols Corp 151.41 9.04 04 Oct 00 Cortez Oil & Gas Inc 50.26 11.00 03 Oct 00 JLK Direct Distribution Inc (Kennametal Inc) 36.24 8.75 26 Sep 00 Landry's Seafood Restaurants Inc 70.77 3.25 25 Sep 00 DoubleClick Inc 102.35 8.00 19 Sep 00 Pritzker Group 100.21 5.00 13 Sep 00 Tupperware Corp 54.32 7.00 13 Sep 00 Tupperware Corp 54.32 7.00 13 Sep 00 barnesandnoble.com Inc 57.18 3.19 05 Sep 00 Unigraphics Solutions Inc (Electronic Data Systems Corp) 176.89 13.75 01 Sep 00 Minolta Investments Co(Minolta Co Ltd) 34.58 6.00 31 Aug 00 Electronics for Imaging Inc 147.37 10.00 29 Aug 00 Motorola Inc 154.04 12.14 28 Aug 00 Hovnanian Enterprises Inc 136.19 10.08 28 Aug 00 Investor Group 33.31 13.00 11 Aug 00 Zale Corp 265.64 21.50 11 Aug 00 Investor Group 67.44 8.25 04 Aug 00 Jomed NV 209.57 11.00 31 Jul 00 Big Dog Holdings Inc 21.88 6.25 26 Jul 00 Liberty Livewire Corp(Liberty Media Group) 138.28 9.67 25 Jul 00 Norton Co(Cie De Saint-Gobain SA) 145.41 18.25 20 Jul 00 Kennametal Inc 36.46 8.75 20 Jul 00 Bertelsmann AG 138.42 3.00 19 Jul 00 Investor Group 189.81 18.25 17 Jul 00 John H Harland Co 37.88 7.00 17 Jul 00 Investor Group 199.31 8.00 14 Jul 00 Worldwide Sports & Recreation Inc 32.77 3.95 11 Jul 00 Manor Care Inc 22.61 3.70 10 Jul 00 BR Holding Inc(Bull Run Corp) 57.21 9.25 10 Jul 00 BR Holding Inc(Bull Run Corp) 57.21 9.25 06 Jul 00 Advanced Energy Industries Inc 30.02 7.09 29 Jun 00 Infrastrux Group Inc(Puget Sound Energy) 49.58 6.13 27 Jun 00 Integrated Defense Technologies Inc(Veritas Capital Fund) 93.01 30.00 27 Jun 00 Heico Holding Inc 5.79 1.00 27 Jun 00 Kaplan Inc(Washington Post Co) 157.12 18.35 20 Jun 00 PA Consulting Group(Button Trust) 96.99 5.32 16 Jun 00 Mission Orchard Statutory Trust 53.76 12.70 08 Jun 00 EarthLink Inc 310.05 6.39 06 Jun 00 Lions Gate Entertainment Corp 48.61 9.83 30 May 00 New England Business Service Inc 40.19 13.50 26 May 00 High Road Acquisition Corp 33.02 8.05 26 May 00 Key Components LLC(Kelso & Co) 57.55 9.00 25 May 00 Welch Allyn Inc 143.05 16.00 23 May 00 JAKKS Pacific Inc 39.45 1.60 11 May 00 Actel Corp 29.47 5.25 10 May 00 Prudential Mortgage Capital Corp(Prudential Insurance Co of America) 137.79 8.90 04 May 00 Merck & Co Inc 222.40 12.25 - -------------------------------------------------------------------------------------------------- CLOSING PRICE PREMIUM ----------------------------------- --------------------------------------- 1 day 1 week 4 weeks 1 day 1 week 4 weeks DATE prior to prior to prior to prior to prior to prior to ANNOUNCED ann. date ann. date ann. date ann. date ann. date ann. date - -------------------------------------------------------------------------------------------------- 04 Jan 01 20 Dec 00 5.00 5.13 5.13 40.00 36.59 36.59 15 Dec 00 5.50 5.63 5.06 45.46 42.22 58.03 07 Dec 00 06 Nov 00 4.47 3.94 3.03 23.08 39.68 81.44 06 Nov 00 7.00 7.00 5.63 39.29 39.29 73.33 03 Nov 00 2.38 2.28 2.06 5.26 9.59 21.21 03 Nov 00 3.44 3.38 3.75 45.46 48.15 33.33 25 Oct 00 25 Oct 00 3.44 3.06 4.09 85.46 108.16 55.73 25 Oct 00 25 Oct 00 17 Oct 00 4.00 3.44 2.88 (46.25) (37.46) (25.22) 17 Oct 00 4.63 4.25 3.19 69.95 84.94 146.59 12 Oct 00 12.50 13.81 15.00 60.00 44.80 33.33 06 Oct 00 4.16 4.31 4.45 117.50 109.62 103.00 04 Oct 00 10.75 10.75 12.13 2.33 2.33 (9.28) 03 Oct 00 26 Sep 00 2.03 2.06 2.84 60.00 57.58 14.29 25 Sep 00 7.25 6.38 6.00 10.35 25.49 33.33 19 Sep 00 4.38 4.38 4.31 14.29 14.29 15.94 13 Sep 00 3.75 3.75 3.19 86.67 86.67 119.61 13 Sep 00 3.75 3.75 3.19 86.67 86.67 119.61 13 Sep 00 3.81 3.63 3.88 (16.39) (12.07) (17.74) 05 Sep 00 11.06 11.37 6.75 24.30 20.93 103.70 01 Sep 00 3.00 3.00 3.06 100.00 100.00 95.92 31 Aug 00 29 Aug 00 11.63 10.94 7.63 4.43 10.99 59.21 28 Aug 00 7.13 7.25 6.50 41.47 39.03 55.08 28 Aug 00 11 Aug 00 16.00 14.56 14.38 34.38 47.64 49.57 11 Aug 00 4.63 4.00 5.00 78.38 106.25 65.00 04 Aug 00 7.00 6.38 6.38 57.14 72.55 72.55 31 Jul 00 4.63 4.38 4.25 35.14 42.86 47.06 26 Jul 00 4.75 4.75 4.81 103.50 103.50 100.85 25 Jul 00 10.13 10.63 11.88 80.25 71.77 53.68 20 Jul 00 20 Jul 00 2.88 2.50 2.88 4.35 20.00 4.35 19 Jul 00 14.50 15.06 11.06 25.86 21.16 64.97 17 Jul 00 4.00 3.94 4.13 75.00 77.78 69.70 17 Jul 00 4.13 3.88 2.97 93.94 106.45 169.47 14 Jul 00 11 Jul 00 3.00 2.88 3.00 23.33 28.70 23.33 10 Jul 00 6.75 6.38 7.47 37.04 45.10 23.85 10 Jul 00 6.75 6.38 7.47 37.04 45.10 23.85 06 Jul 00 7.75 7.88 7.06 (8.52) (9.97) 0.39 29 Jun 00 4.38 4.63 4.06 40.00 32.43 50.77 27 Jun 00 24.00 24.25 22.00 25.00 23.71 36.36 27 Jun 00 1.75 1.50 1.81 (42.86) (33.33) (44.83) 27 Jun 00 9.75 9.69 9.25 88.21 89.42 98.38 20 Jun 00 4.75 3.56 1.94 12.00 49.33 174.58 16 Jun 00 10.63 10.63 10.69 19.53 19.53 18.83 08 Jun 00 8.00 7.81 4.88 (20.13) (18.21) 31.08 06 Jun 00 8.72 6.00 7.00 12.72 63.80 40.40 30 May 00 9.88 9.75 8.50 36.71 38.46 58.82 26 May 00 6.81 8.50 8.13 18.17 (5.29) (0.92) 26 May 00 7.44 7.38 7.25 21.01 22.03 24.14 25 May 00 13.13 12.75 12.38 21.91 25.49 29.29 23 May 00 0.91 1.00 0.66 76.55 60.00 143.81 11 May 00 4.13 4.50 4.31 27.27 16.67 21.75 10 May 00 6.00 6.25 5.25 48.33 42.40 69.52 04 May 00
53 DAIRY MART CONVENIENCE STORES, INC. Premium Analysis of All Completed Non-Financial Institution and Non-Technology Transactions With Total Consideration Between $25 Million and $250 Million Since 1/1/99 (1) (ALL CASH CONSIDERATION)
- -------------------------------------------------------------------------------------------------------------- DATE DATE ANNOUNCED EFFECTIVE TARGET NAME - -------------------------------------------------------------------------------------------------------------- 04 May 00 31 Dec 00 Petroglyph Energy Inc (InterMountain Industries) 04 May 00 25 Sep 00 Eskimo Pie Corp 03 May 00 14 Jun 00 Cunningham Graphics International Inc 02 May 00 06 Jun 00 Amrep Corp 01 May 00 31 May 00 Drew Industries Inc 27 Apr 00 01 Sep 00 VIASOFT Inc 24 Apr 00 01 Jul 00 Safety 1st Inc 19 Apr 00 29 Sep 00 Somerset Group Inc 17 Apr 00 14 Sep 00 Brunswick Technologies Inc 17 Apr 00 15 May 00 Green Mountain Coffee Inc 17 Apr 00 25 May 00 ACSYS Inc 14 Apr 00 19 May 00 PlayCore Inc(GreenGrass Holdings) 07 Apr 00 01 Aug 00 Seaway Food Town Inc 07 Apr 00 16 Aug 00 North Face Inc 06 Apr 00 19 Jun 00 Funco Inc 31 Mar 00 10 May 00 Johnston Industries Inc 31 Mar 00 08 May 00 Pulaski Furniture Corp 27 Mar 00 08 May 00 Farr Co 24 Mar 00 01 Jun 00 BridgeStreet Accommodations Inc 24 Mar 00 02 Jun 00 Harding Lawson Associates Group Inc 16 Mar 00 15 Apr 00 Chicago Rivet & Machine Co 14 Mar 00 01 Jun 00 Met-Coil Systems Corp 13 Mar 00 29 Sep 00 Voyager.Net Inc 10 Mar 00 30 Apr 00 Wave Technologies International Inc 28 Feb 00 30 Apr 00 Bristol Hotels & Resorts Inc 28 Feb 00 15 Sep 00 Carson Inc 25 Feb 00 15 Jun 00 Centennial HealthCare Corp 25 Feb 00 24 Mar 00 Escalade Inc 23 Feb 00 15 May 00 Everest Medical Corp 19 Feb 00 19 Feb 00 Diehl Graphsoft Inc 16 Feb 00 05 Apr 00 American Precision Industries Inc 15 Feb 00 12 Jul 00 Advanced Machine Vision Corp 14 Feb 00 23 Mar 00 K-Tron International Inc 14 Feb 00 29 Mar 00 GRC International Inc 10 Feb 00 01 Jun 00 TCBY Enterprises Inc 04 Feb 00 26 Jul 00 BNC Mortgage Inc 03 Feb 00 31 Mar 00 Telesoft Corp 31 Jan 00 03 May 00 Metrika Systems Corp(Thermo Instrument Systems Inc/Thermo Electron Corp) 31 Jan 00 28 Jun 00 Sunrise International Leasing Inc(King Management Corp) 31 Jan 00 13 Apr 00 ONIX Systems Inc(Thermo Instrument Systems) 31 Jan 00 25 Aug 00 Writer Corp 31 Jan 00 12 Apr 00 Thermedics Detection Inc(Thermedics Inc/Thermo Electron Corp) 31 Jan 00 04 Apr 00 Thermo Sentron Inc(Thermedics) 28 Jan 00 10 Mar 00 Zing Technologies Inc 17 Jan 00 13 Mar 00 Caere Corp 17 Jan 00 24 Feb 00 Moore Products Co 14 Jan 00 11 Jul 00 Globe Business Resources Inc (Equity Residential Properties Trust) 06 Jan 00 21 Jun 00 Saratoga Beverage Group Inc 28 Dec 99 02 Feb 00 Renex Corp 28 Dec 99 14 Feb 00 Riviera Holdings Corp 23 Dec 99 16 May 00 Wilmar Industries Inc 21 Dec 99 27 Jan 00 Softworks Inc 20 Dec 99 23 Mar 00 PS Group Holdings Inc 20 Dec 99 13 Mar 00 Plasma-Therm Inc 09 Dec 99 29 Mar 00 Gleason Corp 26 Nov 99 22 Feb 00 Bolle Inc 22 Nov 99 02 Feb 00 Garden Ridge Corp 18 Nov 99 01 Feb 00 Innovative Valve Technologies Inc 16 Nov 99 16 Dec 99 Atrion Corp 15 Nov 99 21 Dec 99 Vallen Corp - ---------------------------------------------------------------------------------------------------------------------------------- DATE DEAL OFFER ANNOUNCED ACQUIROR NAME VALUE (MIL) PRICE/SHARE (1) - ---------------------------------------------------------------------------------------------------------------------------------- 04 May 00 Intermountain Industries 9.15 2.85 04 May 00 CoolBrands International Corp 29.63 10.25 03 May 00 Automatic Data Processing Inc 129.34 22.00 02 May 00 Amrep Corp 4.11 7.00 01 May 00 Drew Industries Inc 11.60 8.00 27 Apr 00 Allen Systems Group 157.38 8.40 24 Apr 00 Dorel Industries Inc 178.21 13.88 19 Apr 00 First Indiana Corp, Indianapolis,Indiana 71.86 24.70 17 Apr 00 CertainTeed Corp(Cie de Saint Gobain) 35.49 8.50 17 Apr 00 Green Mountain Coffee Inc 4.46 16.00 17 Apr 00 Vedior NV 72.51 5.00 14 Apr 00 Chartwell Investments II LLC (Chartwell Managers LLC) 105.96 10.10 07 Apr 00 Spartan Stores Inc 108.03 16.18 07 Apr 00 VF Corp 25.61 2.00 06 Apr 00 Babbage's Etc LLC(Barnes & Noble Inc) 162.87 24.75 31 Mar 00 CGW Southeast Partners IV 33.40 3.00 31 Mar 00 Investor Group 65.31 22.50 27 Mar 00 Ratos Acquisition Corp (Forvaltnings AB Ratos) 132.70 17.45 24 Mar 00 Meristar Hotels & Resorts Inc 34.02 2.88 24 Mar 00 MACTEC Inc 61.28 11.50 16 Mar 00 Chicago Rivet & Machine Co 3.67 23.00 14 Mar 00 Mestek Inc 38.04 7.10 13 Mar 00 CoreComm Ltd 189.12 5.98 10 Mar 00 Thomson Corp 42.55 9.75 28 Feb 00 Bass PLC 152.50 9.50 28 Feb 00 Cosmair Inc(L'Oreal SA) 80.64 5.20 25 Feb 00 Investor Group 65.58 5.50 25 Feb 00 Escalade Inc 12.60 18.00 23 Feb 00 Gyrus Group PLC 51.27 4.85 19 Feb 00 Nemetschek AG 29.49 9.50 16 Feb 00 Danaher Corp 209.57 19.25 15 Feb 00 Key Technology Inc 26.45 1.64 14 Feb 00 K-Tron International Inc 9.14 18.00 14 Feb 00 AT&T Corp 218.90 15.00 10 Feb 00 Capricorn Investors LP 139.11 6.00 04 Feb 00 Investor Group 48.10 10.00 03 Feb 00 Telesoft Corp 16.68 7.25 31 Jan 00 Thermo Instrument Systems Inc (Thermo Electron Corp) 14.15 9.00 31 Jan 00 King Management Corp 16.97 5.25 31 Jan 00 Thermo Instrument Systems Inc (Thermo Electron Corp) 23.13 9.00 31 Jan 00 Standard Pacific Corp 52.85 3.35 31 Jan 00 Thermedics Inc(Thermo Electron Corp) 17.02 8.00 31 Jan 00 Thermedics Inc(Thermo Electron Corp) 30.69 15.50 28 Jan 00 International Rectifier Corp 36.97 15.36 17 Jan 00 ScanSoft Inc(Visioneer Inc) 147.46 11.75 17 Jan 00 Siemens Energy & Automation (Siemens Corp) 168.65 54.71 14 Jan 00 Equity Residential Properties Trust 63.00 13.00 06 Jan 00 North Castle Partners 39.65 6.00 28 Dec 99 National Nephrology Associates {NNA} 76.66 10.00 28 Dec 99 Riviera Holdings Corp 4.43 7.50 23 Dec 99 Investor Group 294.71 18.25 21 Dec 99 EMC Corp 179.77 10.00 20 Dec 99 Integrated Capital Associates Inc 72.82 12.00 20 Dec 99 Oerlikon-Buehrle Holding AG 155.00 12.50 09 Dec 99 Investor Group 320.48 23.00 26 Nov 99 Worldwide Sports & Recreation Inc 92.00 5.25 22 Nov 99 GR Acquisition Corp(GRDG Holdings LLC) 144.43 11.50 18 Nov 99 Flowserve Corp 101.08 1.62 16 Nov 99 Atrion Corp 4.11 12.00 15 Nov 99 Hagemeyer NV 200.99 25.00 - ---------------------------------------------------------------------------------------------------- CLOSING PRICE PREMIUM ----------------------------------- --------------------------------------- 1 day 1 week 4 weeks 1 day 1 week 4 weeks DATE prior to prior to prior to prior to prior to prior to ANNOUNCED ann. date ann. date ann. date ann. date ann. date ann. date - ---------------------------------------------------------------------------------------------------- 04 May 00 2.00 1.38 1.63 42.50 107.27 75.39 04 May 00 9.00 8.88 8.25 13.89 15.49 24.24 03 May 00 22.50 21.75 26.25 (2.22) 1.15 (16.19) 02 May 00 5.06 5.06 5.69 38.27 38.27 23.08 01 May 00 7.06 6.88 7.00 13.27 16.36 14.29 27 Apr 00 5.50 5.75 6.47 52.73 46.09 29.86 24 Apr 00 12.63 11.25 11.63 9.90 23.33 19.36 19 Apr 00 17.50 17.75 17.75 41.14 39.16 39.16 17 Apr 00 17 Apr 00 14.38 16.50 12.00 11.30 (3.03) 33.33 17 Apr 00 2.75 3.56 1.81 81.82 40.35 175.86 14 Apr 00 6.75 7.00 7.81 49.63 44.29 29.28 07 Apr 00 16.00 17.00 23.38 1.13 (4.82) (30.78) 07 Apr 00 06 Apr 00 11.88 13.75 10.94 108.42 80.00 126.29 31 Mar 00 2.31 1.94 1.81 29.73 54.84 65.52 31 Mar 00 21.88 17.13 14.56 2.86 31.39 54.51 27 Mar 00 11.88 12.50 10.13 46.95 39.60 72.35 24 Mar 00 1.94 2.13 2.00 48.39 35.29 43.75 24 Mar 00 9.25 8.50 7.94 24.32 35.29 44.88 16 Mar 00 14 Mar 00 6.13 6.00 6.00 15.92 18.33 18.33 13 Mar 00 13.00 12.31 11.94 (54.04) (51.47) (49.95) 10 Mar 00 7.38 8.50 6.13 32.20 14.71 59.18 28 Feb 00 5.75 4.88 4.56 65.22 94.87 108.22 28 Feb 00 3.75 3.69 3.50 38.67 41.02 48.57 25 Feb 00 2.94 2.97 3.00 87.23 85.26 83.33 25 Feb 00 16.50 16.25 11.00 9.09 10.77 63.64 23 Feb 00 3.69 3.94 3.38 31.53 23.18 43.70 19 Feb 00 7.13 6.25 4.88 33.33 52.00 94.87 16 Feb 00 11.44 11.69 8.69 68.31 64.71 121.58 15 Feb 00 1.69 1.63 1.34 (2.76) 0.99 22.12 14 Feb 00 14.13 14.25 14.13 27.43 26.32 27.43 14 Feb 00 13.38 12.88 12.63 12.15 16.51 18.81 10 Feb 00 3.56 3.81 3.75 68.42 57.38 60.00 04 Feb 00 7.38 7.00 6.38 35.59 42.86 56.86 03 Feb 00 4.75 4.75 4.25 52.63 52.63 70.59 31 Jan 00 31 Jan 00 5.50 5.25 5.19 (4.55) 1.21 31 Jan 00 31 Jan 00 2.25 1.91 1.50 48.89 75.76 123.33 31 Jan 00 7.94 7.94 7.00 0.79 0.79 14.29 31 Jan 00 14.44 14.50 14.50 7.36 6.90 6.90 28 Jan 00 15.00 15.81 12.88 2.40 (2.86) 19.30 17 Jan 00 7.44 7.38 6.94 57.98 59.32 69.37 17 Jan 00 42.88 37.50 30.50 27.60 45.89 79.38 14 Jan 00 11.88 12.00 13.06 9.47 8.33 (0.48) 06 Jan 00 4.81 4.84 3.44 24.68 23.87 74.55 28 Dec 99 8.25 6.63 6.31 21.21 50.94 58.42 28 Dec 99 5.19 5.38 5.13 44.58 39.54 46.34 23 Dec 99 14.00 14.38 15.38 30.36 26.96 18.70 21 Dec 99 9.31 8.63 5.00 7.38 15.94 100.00 20 Dec 99 11.00 10.69 10.38 9.09 12.28 15.66 20 Dec 99 9.38 9.00 9.19 33.33 38.89 36.05 09 Dec 99 18.00 18.13 17.56 27.78 26.90 30.96 26 Nov 99 4.63 4.56 3.00 13.51 15.07 75.00 22 Nov 99 7.25 6.94 6.75 58.62 65.77 70.37 18 Nov 99 16 Nov 99 10.25 9.25 9.00 17.07 29.73 33.33 15 Nov 99 19.75 17.00 13.63 26.58 47.06 83.49
54 DAIRY MART CONVENIENCE STORES, INC. Premium Analysis of All Completed Non-Financial Institution and Non-Technology Transactions With Total Consideration Between $25 Million and $250 Million Since 1/1/99 (1) (ALL CASH CONSIDERATION)
- -------------------------------------------------------------------------------------------------------------- DATE DATE ANNOUNCED EFFECTIVE TARGET NAME - -------------------------------------------------------------------------------------------------------------- 15 Nov 99 31 Jan 00 Catherines Stores Corp 15 Nov 99 29 Dec 99 VICORP Restaurants Inc 12 Nov 99 17 Dec 99 TB Wood's Corp 10 Nov 99 01 Sep 00 Berkshire Energy Resources 09 Nov 99 Datum Inc 09 Nov 99 15 Dec 99 Alba-Waldensian Inc 09 Nov 99 19 Jan 00 Percon Inc 08 Nov 99 Laser Mortgage Management Inc 08 Nov 99 07 Feb 00 Autocam Corp 04 Nov 99 15 Feb 00 Cleveland Indians Baseball Co 04 Nov 99 11 Feb 00 COMPS.COM INC 03 Nov 99 09 Mar 00 Gibson Greetings Inc 26 Oct 99 13 Dec 99 GeoScience Corp(Tech-Sym Corp) 26 Oct 99 06 Dec 00 Praegitzer Industries Inc 21 Oct 99 10 Jan 00 Wall Data Inc 21 Oct 99 04 Feb 00 Cade Industries Inc 20 Oct 99 06 Jun 00 Thermoretec Corp (Thermo TerraTech Inc/Thermo Electron Corp) 20 Oct 99 31 Jan 00 Ferrofluidics Corp 20 Oct 99 08 Dec 99 Variflex Inc 15 Oct 99 05 Jan 00 Crystal Gas Storage Inc 07 Oct 99 08 Nov 99 Presley Cos 06 Oct 99 02 Mar 00 Lady Luck Gaming Corp 06 Oct 99 06 Mar 00 Conso International Corp 05 Oct 99 19 Nov 99 CombiChem Inc 01 Oct 99 08 Nov 99 M/A/R/C Group 27 Sep 99 27 Sep 99 Orange-co Inc 27 Sep 99 05 Nov 99 Orange-co Inc 22 Sep 99 11 Oct 00 Laser Power Corp 20 Sep 99 02 Nov 99 Diatide Inc 09 Sep 99 31 Oct 99 Novacare Employee Services Inc (NovaCare Inc) 01 Sep 99 20 Oct 99 Effective Management Systems Inc 26 Aug 99 23 Sep 99 Garden Ridge Corp 24 Aug 99 02 Feb 00 Aavid Thermal Technologies Inc 19 Aug 99 30 Sep 99 Metrowerks Inc 13 Aug 99 22 Sep 99 Turner Corp 12 Aug 99 22 Dec 99 Intelliquest Information Group Inc 12 Aug 99 04 Oct 99 United Capital Corp 11 Aug 99 24 Nov 99 HCIA Inc(VS&A Communications Partners III LP) 10 Aug 99 20 Sep 99 Copley Pharmaceutical Inc(Hoechst Celanese Corp) 02 Aug 99 03 Sep 99 Collagen Aesthetics Inc 02 Aug 99 12 Nov 99 SIBIA Neurosciences Inc 30 Jul 99 21 Oct 99 General Housewares Corp 30 Jul 99 12 Jan 00 Xionics Document Technologies Inc 29 Jul 99 10 Sep 99 Concord Fabrics Inc 28 Jul 99 19 Oct 99 Kofax Image Products 28 Jul 99 07 Sep 99 Easco Inc(American Industrial Partners) 27 Jul 99 27 Dec 99 Asahi-America Inc 27 Jul 99 01 Sep 99 Mark VII Inc 26 Jul 99 01 Sep 99 Exogen Inc 22 Jul 99 10 Mar 00 White Cap Industries Inc 15 Jul 99 08 Nov 00 EnergyNorth Inc 15 Jul 99 04 Feb 00 SpecTran Corp 15 Jul 99 01 Sep 99 Information Advantage Software Inc 13 Jul 99 07 Jan 00 Thermo Vision Corp(Thermo Instrument/Thermo Electron) 12 Jul 99 09 Aug 99 Data-TRAK International Inc 12 Jul 99 17 Dec 99 Happy Kids Inc 12 Jul 99 03 May 00 TSI Inc 07 Jul 99 31 Aug 99 Smartflex Systems(Rogers Corp) - --------------------------------------------------------------------------------------------------------------------------------- DATE DEAL OFFER ANNOUNCED ACQUIROR NAME VALUE (MIL) PRICE/SHARE (1) - --------------------------------------------------------------------------------------------------------------------------------- 15 Nov 99 Charming Shoppes Inc 153.59 21.00 15 Nov 99 VICORP Restaurants Inc 38.00 19.00 12 Nov 99 TB Wood's Corp 3.60 9.00 10 Nov 99 Energy East Corp 95.73 38.00 09 Nov 99 Frequency Electronics Inc 59.46 10.00 09 Nov 99 Tefron Ltd 61.59 18.50 09 Nov 99 PSC Inc 59.52 15.00 08 Nov 99 Ellington Management Group Inc 63.90 4.30 08 Nov 99 Aurora Capital Partners LP 123.30 18.75 04 Nov 99 Investor Group 180.56 22.66 04 Nov 99 Costar Corp(Corning Inc) 88.70 7.50 03 Nov 99 American Greetings Corp 162.30 10.25 26 Oct 99 Cie Generale de Geophysique 97.00 6.71 26 Oct 99 Tyco International Ltd 79.84 5.50 21 Oct 99 NetManage Inc 93.30 9.00 21 Oct 99 United Technologies Corp 133.22 5.05 20 Oct 99 Thermo Electron Corp 56.88 7.00 20 Oct 99 Ferrotec Corp 41.50 6.50 20 Oct 99 Variflex Inc 3.33 6.50 15 Oct 99 El Paso Energy Corp 158.39 57.00 07 Oct 99 William Lyon Co 7.00 0.66 06 Oct 99 Isle of Capri Casinos Inc 235.57 12.00 06 Oct 99 CIC Acquisition Co 66.11 9.00 05 Oct 99 EI du Pont de Nemours and Co 93.47 6.75 01 Oct 99 Omnicom Group Inc 112.52 20.00 27 Sep 99 Reservoir Capital Group LLC 37.82 7.00 27 Sep 99 Reservoir Capital Group LLC 34.36 7.00 22 Sep 99 II-VI Inc 38.93 4.32 20 Sep 99 Schering Berlin Inc(Schering AG) 126.08 9.50 09 Sep 99 Investor Group 72.55 2.50 01 Sep 99 IFS Americas Inc (IFS AB) 21.74 4.50 26 Aug 99 Garden Ridge Corp 8.33 7.00 24 Aug 99 Willis Stein & Partners LP (Willis Stein & Partners) 264.09 25.50 19 Aug 99 Motorola Inc 94.87 6.25 13 Aug 99 Hochtief AG(RWE AG) 394.76 28.63 12 Aug 99 WPP Group PLC 111.21 12.70 12 Aug 99 United Capital Corp 4.81 17.50 11 Aug 99 VS&A Communications Partners III LP(Veronis Suhler & Associates) 134.70 11.00 10 Aug 99 Teva Pharmaceutical USA Inc (Teva Pharmaceutical Industries Inc) 214.84 11.00 02 Aug 99 Inamed Corp 140.80 16.25 02 Aug 99 Merck & Co Inc 88.59 8.50 30 Jul 99 Corning Consumer Products Co(Corning Inc) 148.58 28.75 30 Jul 99 Oak Technology Inc 82.29 6.10 29 Jul 99 Concord Fabrics Inc 10.14 7.88 28 Jul 99 Investor Group 70.75 12.75 28 Jul 99 Caradon PLC 154.71 15.20 27 Jul 99 Asahi Organic Chemical Industries 28.59 9.55 27 Jul 99 MSAS Global Logistics Inc (Ocean Group PLC) 225.84 23.00 26 Jul 99 Smith & Nephew Inc(Smith & Nephew Consolidated/Smith & Nephew PLC) 67.35 5.15 22 Jul 99 Investor Group 185.40 16.50 15 Jul 99 Eastern Enterprises 202.03 47.00 15 Jul 99 Lucent Technologies Inc 65.12 9.00 15 Jul 99 Sterling Software Inc 177.53 6.50 13 Jul 99 Thermo Instrument Systems Inc (Thermo Electron Corp) 11.87 7.00 12 Jul 99 Data-TRAK International Inc 19.80 6.00 12 Jul 99 HIG Capital LLC 119.59 11.50 12 Jul 99 JJF Acquisition Inc 167.91 15.25 07 Jul 99 Saturn Electronics & Engineering 69.11 10.50 - --------------------------------------------------------------------------------------------------- CLOSING PRICE PREMIUM ----------------------------------- --------------------------------------- 1 day 1 week 4 weeks 1 day 1 week 4 weeks DATE prior to prior to prior to prior to prior to prior to ANNOUNCED ann. date ann. date ann. date ann. date ann. date ann. date - --------------------------------------------------------------------------------------------------- 15 Nov 99 12.38 12.25 13.75 69.70 71.43 52.73 15 Nov 99 16.75 16.50 15.81 13.43 15.15 20.16 12 Nov 99 9.31 9.19 9.38 (3.36) (2.04) (4.00) 10 Nov 99 33.00 25.50 25.81 15.15 49.02 47.22 09 Nov 99 7.50 7.19 6.63 33.33 39.13 50.94 09 Nov 99 16.25 13.69 10.00 13.85 35.16 85.00 09 Nov 99 13.44 13.25 10.38 11.63 13.21 44.58 08 Nov 99 3.56 3.88 3.63 20.70 10.97 18.62 08 Nov 99 13.00 11.00 16.31 44.23 70.46 14.94 04 Nov 99 16.25 9.94 8.88 39.45 128.04 155.34 04 Nov 99 7.28 7.00 6.69 3.00 7.14 12.15 03 Nov 99 5.50 4.88 4.63 86.36 110.26 121.62 26 Oct 99 6.00 6.88 7.25 11.83 (2.40) (7.45) 26 Oct 99 4.75 4.31 4.25 15.79 27.54 29.41 21 Oct 99 5.75 5.81 5.38 56.52 54.84 67.44 21 Oct 99 3.88 4.00 3.25 30.32 26.25 55.39 20 Oct 99 5.50 5.25 5.19 27.27 33.33 34.94 20 Oct 99 3.94 3.63 4.13 65.08 79.31 57.58 20 Oct 99 5.75 5.56 5.98 13.04 16.85 8.62 15 Oct 99 45.00 44.13 45.25 26.67 29.18 25.97 07 Oct 99 0.81 0.81 0.94 (19.39) (19.39) (30.13) 06 Oct 99 8.13 7.50 8.56 47.69 60.00 40.15 06 Oct 99 5.06 5.13 5.56 77.78 75.61 61.80 05 Oct 99 5.50 5.13 4.75 22.73 31.71 42.11 01 Oct 99 14.13 14.13 14.25 41.59 41.59 40.35 27 Sep 99 27 Sep 99 22 Sep 99 1.25 1.25 1.69 245.60 245.60 156.00 20 Sep 99 7.88 8.63 5.81 20.64 10.15 63.44 09 Sep 99 2.63 2.59 3.19 (4.76) (3.61) (21.57) 01 Sep 99 26 Aug 99 5.94 5.94 6.06 17.90 17.90 15.46 24 Aug 99 19.75 20.69 19.81 29.11 23.26 28.71 19 Aug 99 5.06 3.75 3.25 23.46 66.67 92.31 13 Aug 99 25.31 27.00 21.25 13.09 6.02 34.71 12 Aug 99 9.25 9.44 9.38 37.30 34.57 35.47 12 Aug 99 14.88 15.00 14.63 17.65 16.67 19.66 11 Aug 99 8.38 8.31 10.56 31.34 32.33 4.14 10 Aug 99 8.88 9.81 10.06 23.94 12.10 9.32 02 Aug 99 11.19 10.56 12.25 45.25 53.85 32.65 02 Aug 99 5.25 5.06 4.97 61.91 67.90 71.07 30 Jul 99 20.06 19.25 19.81 43.30 49.35 45.11 30 Jul 99 5.06 4.88 4.47 20.53 25.17 36.55 29 Jul 99 5.63 5.81 5.88 40.00 35.48 34.04 28 Jul 99 9.38 9.75 9.75 36.00 30.77 30.77 28 Jul 99 12.00 11.25 10.56 26.67 35.11 43.91 27 Jul 99 7.00 7.00 7.75 36.43 36.43 23.23 27 Jul 99 18.63 17.50 16.50 23.49 31.43 39.39 26 Jul 99 4.31 2.44 2.31 19.42 111.28 122.70 22 Jul 99 11.06 11.38 10.63 49.15 45.06 55.29 15 Jul 99 29.69 29.63 28.63 58.32 58.65 64.19 15 Jul 99 11.50 11.63 8.81 (21.74) (22.58) 2.13 15 Jul 99 5.50 3.81 4.16 18.18 70.49 56.39 13 Jul 99 4.00 4.38 3.38 75.00 60.00 107.41 12 Jul 99 5.31 5.19 4.53 12.94 15.66 32.41 12 Jul 99 10.50 8.94 14.13 9.52 28.67 (18.58) 12 Jul 99 10.69 10.50 9.25 42.69 45.24 64.87 07 Jul 99 5.03 3.31 3.44 108.70 216.98 205.46
55 DAIRY MART CONVENIENCE STORES, INC. Premium Analysis of All Completed Non-Financial Institution and Non-Technology Transactions With Total Consideration Between $25 Million and $250 Million Since 1/1/99 (1) (ALL CASH CONSIDERATION)
- -------------------------------------------------------------------------------------------------------------- DATE DATE ANNOUNCED EFFECTIVE TARGET NAME - -------------------------------------------------------------------------------------------------------------- 01 Jul 99 16 Sep 99 ADFlex Solutions Inc 30 Jun 99 09 Aug 99 TechForce Corp 18 Jun 99 26 Jul 99 Durakon Industries Inc 16 Jun 99 26 Aug 99 Central Sprinkler Corp 14 Jun 99 02 Aug 99 OrCAD Inc 14 Jun 99 02 Nov 99 Physicians Specialty Corp 11 Jun 99 22 Jul 99 Sterigenics International Inc 10 Jun 99 07 Oct 99 RIBI ImmunoChem Research Inc 09 Jun 99 20 Jul 99 Automobile Protection Corp 08 Jun 99 21 Jul 99 QMS Inc(Lason Inc) 07 Jun 99 30 Sep 99 Jevic Transportation Inc 04 Jun 99 12 Jul 99 Stimsonite Corp 02 Jun 99 30 Aug 99 O'Sullivan Corp 27 May 99 14 Jul 99 Marcam Solutions Inc 27 May 99 01 Sep 99 Empi Inc 26 May 99 04 Aug 99 Golden Genesis Co(Golden Technologies Co Inc/ACX Technologies) 26 May 99 26 Jul 99 Utah Medical Products Inc 17 May 99 16 Aug 99 ULTRADATA Corp 14 May 99 29 Oct 99 Kentek Information Systems Inc 14 May 99 23 Sep 99 United Foods Inc 12 May 99 21 Jun 99 Optek Technology Inc 12 May 99 05 Nov 99 Price Enterprises Inc 11 May 99 21 Jun 99 Gradall Industries Inc 10 May 99 18 Jun 99 EMCON 10 May 99 14 Jun 99 ReSound Corp 09 May 99 30 Jun 99 Voice Control Systems Industries Inc 07 May 99 29 Sep 99 Instron Corp 06 May 99 18 Jun 99 Shelby Williams Industries Inc 05 May 99 17 Sep 99 Enterprise Software Inc 03 May 99 10 Jun 99 Amerihost Properties Inc 03 May 99 16 Aug 99 Integrated Sensor Solutions Inc 27 Apr 99 01 Jun 99 Hilite Industries Inc 27 Apr 99 25 May 99 Software AG Systems Inc (Thayer Capital Partners) 26 Apr 99 19 Aug 99 Bridgeport Machines Inc 21 Apr 99 23 Jul 99 TAVA Technologies Inc 16 Apr 99 26 May 99 DSI Toys Inc 12 Apr 99 10 May 99 Supreme Industries Inc 05 Apr 99 19 Jul 99 National Propane Partners LP 29 Mar 99 23 Dec 99 Grease Monkey Holding Corp 25 Mar 99 10 May 99 Sheridan Healthcare Inc 23 Mar 99 01 May 99 Interlink Computer Sciences Inc 19 Mar 99 13 Aug 99 Rock Bottom Restaurants Inc 17 Mar 99 15 Aug 99 Trion Inc 15 Mar 99 30 May 99 Haskel International Inc 12 Mar 99 28 May 99 Trak Auto Corp(Dart Group Corp) 11 Mar 99 01 Sep 99 Sodak Gaming Inc 10 Mar 99 29 Jul 99 Morgan Products Ltd 08 Mar 99 24 Jun 99 Analysis & Technology Inc 08 Mar 99 01 Dec 99 ENStar Inc 08 Mar 99 10 Aug 99 LabOne Inc(Lab Holdings Inc) 26 Feb 99 01 Jun 99 Travel Ports of America Inc 26 Feb 99 26 Feb 99 Aris Industries Inc 24 Feb 99 21 May 99 Industrial Scientific Corp. 23 Feb 99 31 Mar 99 Control Devices Inc 19 Feb 99 31 Mar 99 Oacis Healthcare Holdings Corp (Bell Atlantic Corp) 17 Feb 99 06 Aug 99 Equitrac Corp 17 Feb 99 27 Aug 99 Doughtie's Foods Inc 17 Feb 99 07 May 99 Parts Source Inc 17 Feb 99 09 Jul 99 Precision Systems Inc 11 Feb 99 06 May 99 ISE Labs Inc 10 Feb 99 26 Mar 99 Hudson General Corp 09 Feb 99 08 Jul 99 Coffee People Inc(Second Cup Ltd) - --------------------------------------------------------------------------------------------------------------------------------- DATE DEAL OFFER ANNOUNCED ACQUIROR NAME VALUE (MIL) PRICE/SHARE (1) - --------------------------------------------------------------------------------------------------------------------------------- 01 Jul 99 Innovex Inc 34.32 3.80 30 Jun 99 Equant NV 72.62 8.50 18 Jun 99 Littlejohn & Co LLC 101.23 16.00 16 Jun 99 Tyco International Ltd 125.51 30.00 14 Jun 99 Cadence Design Systems Inc 129.48 13.00 14 Jun 99 TA Associates 100.88 10.50 11 Jun 99 Ion Beam Applications SA 213.74 27.00 10 Jun 99 Corixa Corp 55.27 2.29 09 Jun 99 Ford Motor Co 169.88 13.00 08 Jun 99 Minolta Co Ltd 34.00 6.25 07 Jun 99 Yellow Corp 194.46 14.00 04 Jun 99 Avery Dennison Corp 131.17 14.75 02 Jun 99 Geon Co(BF Goodrich Co) 191.79 12.25 27 May 99 Invensys PLC 59.50 7.50 27 May 99 Carlyle Group LP 165.32 26.50 26 May 99 Kyocera International Inc (Kyocera Corp) 40.48 2.33 26 May 99 Utah Medical Products Inc 9.20 8.00 17 May 99 CFI ProServices Inc 64.02 7.50 14 May 99 Investor Group 42.09 8.29 14 May 99 Pictsweet LLC 23.84 3.50 12 May 99 Dyson-Kissner-Moran Corp 202.56 25.50 12 May 99 Excel Legacy Corp(Excel Realty Trust Inc) 106.45 8.50 11 May 99 JLG Industries Inc 196.20 20.00 10 May 99 IT Group Inc 64.30 6.75 10 May 99 GN Great Nordic Ltd 185.37 8.00 09 May 99 Koninklijke Philips Electronics NV 57.97 4.00 07 May 99 Kirtland Capital Partners 159.94 22.00 06 May 99 Falcon Products Inc 145.15 16.50 05 May 99 LiveWire Ventures LLC 74.01 9.25 03 May 99 Amerihost Properties Inc 4.00 4.00 03 May 99 Texas Instruments Inc 64.67 8.05 27 Apr 99 Investor Group 71.00 14.25 27 Apr 99 Software AG Systems Inc (Thayer Capital Partners) 0.02 8.00 26 Apr 99 Goldman Industrial Group Inc 57.04 10.00 21 Apr 99 Real Software NV 196.54 8.00 16 Apr 99 MVII LLC 7.01 4.38 12 Apr 99 Supreme Industries Inc 17.01 10.00 05 Apr 99 Columbia Propane Corp(Columbia Energy Group) 96.22 12.00 29 Mar 99 QL3000 Inc 7.49 1.00 25 Mar 99 Investor Group 74.83 9.25 23 Mar 99 Sterling Software Inc 63.02 7.00 19 Mar 99 RB Capital Inc 58.53 10.00 17 Mar 99 Fedders Corp 39.56 5.50 15 Mar 99 Investor Group 65.39 12.90 12 Mar 99 Halart LLC 53.18 9.00 11 Mar 99 International Game Technology 228.42 10.00 10 Mar 99 Andersen Corp 41.44 4.00 08 Mar 99 Anteon Corp 108.51 26.00 08 Mar 99 Investor Group 13.22 12.50 08 Mar 99 Lab Holdings Inc 34.29 12.75 26 Feb 99 TravelCenters of America Inc 36.87 4.30 26 Feb 99 Investor 20.00 0.44 24 Feb 99 Investor Group 31.11 28.50 23 Feb 99 First Technology PLC 142.44 16.25 19 Feb 99 Science Applications International Corp{SAIC} 74.58 4.45 17 Feb 99 Investor Group 81.53 21.00 17 Feb 99 Sysco Corp 25.42 17.00 17 Feb 99 General Parts Inc 10.24 3.00 17 Feb 99 Anshutz Digital Media Inc 20.17 1.00 11 Feb 99 ASE Test Ltd(Advanced Semiconductor Engineering Inc) 98.00 8.00 10 Feb 99 GlobeGround GmbH(Deutsche Lufthansa AG) 134.66 76.00 09 Feb 99 Diedrich Coffee Inc 31.67 2.92 - -------------------------------------------------------------------------------------------------- CLOSING PRICE PREMIUM ----------------------------------- --------------------------------------- 1 day 1 week 4 weeks 1 day 1 week 4 weeks DATE prior to prior to prior to prior to prior to prior to ANNOUNCED ann. date ann. date ann. date ann. date ann. date ann. date - -------------------------------------------------------------------------------------------------- 01 Jul 99 4.00 3.63 3.75 (5.00) 4.83 1.33 30 Jun 99 7.63 7.75 7.63 11.48 9.68 11.48 18 Jun 99 12.06 12.38 12.81 32.64 29.29 24.88 16 Jun 99 22.38 20.00 16.88 34.08 50.00 77.78 14 Jun 99 9.38 8.25 7.63 38.67 57.58 70.49 14 Jun 99 8.75 8.50 8.38 20.00 23.53 25.37 11 Jun 99 19.50 17.75 15.13 38.46 52.11 78.51 10 Jun 99 1.78 2.00 2.25 28.28 14.25 1.56 09 Jun 99 11.88 11.00 9.00 9.47 18.18 44.44 08 Jun 99 5.69 4.50 3.88 9.89 38.89 61.29 07 Jun 99 10.75 9.63 9.25 30.23 45.46 51.35 04 Jun 99 7.31 7.50 7.50 101.71 96.67 96.67 02 Jun 99 9.38 9.13 8.50 30.67 34.25 44.12 27 May 99 3.75 2.56 1.94 100.00 192.68 287.10 27 May 99 20.81 20.75 22.69 27.33 27.71 16.80 26 May 99 1.88 1.81 1.50 24.27 28.55 55.33 26 May 99 7.06 6.19 6.25 13.27 29.29 28.00 17 May 99 14 May 99 7.63 7.63 7.00 8.72 8.72 18.43 14 May 99 2.50 2.75 2.44 40.00 27.27 43.59 12 May 99 19.63 17.25 14.06 29.94 47.83 81.33 12 May 99 6.75 6.00 5.63 25.93 41.67 51.11 11 May 99 17.50 15.88 14.69 14.29 25.98 36.17 10 May 99 5.47 5.06 3.88 23.43 33.33 74.19 10 May 99 6.56 5.25 4.19 21.91 52.38 91.05 09 May 99 3.19 3.06 3.19 25.49 30.61 25.49 07 May 99 16.13 17.00 16.75 36.43 29.41 31.34 06 May 99 13.75 13.25 9.94 20.00 24.53 66.04 05 May 99 7.50 7.38 6.19 23.33 25.42 49.50 03 May 99 3.44 3.38 3.25 16.36 18.52 23.08 03 May 99 6.13 4.56 4.28 31.43 76.44 88.03 27 Apr 99 10.88 10.75 10.50 31.03 32.56 35.71 27 Apr 99 6.75 6.00 8.88 18.52 33.33 (9.86) 26 Apr 99 5.97 5.63 6.50 67.54 77.78 53.85 21 Apr 99 5.94 5.75 5.03 34.74 39.13 59.01 16 Apr 99 2.25 2.25 2.00 94.67 94.67 119.00 12 Apr 99 05 Apr 99 6.31 6.50 5.00 90.10 84.62 140.00 29 Mar 99 25 Mar 99 8.50 8.25 7.88 8.82 12.12 17.46 23 Mar 99 4.94 4.81 3.38 41.77 45.46 107.41 19 Mar 99 6.50 6.50 5.13 53.85 53.85 95.12 17 Mar 99 3.50 3.25 3.50 57.14 69.23 57.14 15 Mar 99 9.06 8.63 8.50 42.35 49.57 51.77 12 Mar 99 7.00 7.13 7.38 28.57 26.32 22.03 11 Mar 99 8.00 8.00 7.44 25.00 25.00 34.45 10 Mar 99 3.25 2.75 2.50 23.08 45.46 60.00 08 Mar 99 21.88 22.38 21.00 18.86 16.20 23.81 08 Mar 99 8.00 7.88 8.25 56.25 58.73 51.52 08 Mar 99 10.88 11.56 11.75 17.24 10.27 8.51 26 Feb 99 3.25 3.69 3.50 32.31 16.61 22.86 26 Feb 99 24 Feb 99 20.50 20.38 20.50 23 Feb 99 13.50 13.63 15.25 20.37 19.27 6.56 19 Feb 99 3.19 3.13 3.13 39.61 42.40 42.40 17 Feb 99 20.13 19.88 18.13 4.35 5.66 15.86 17 Feb 99 13.25 13.75 11.94 28.30 23.64 42.41 17 Feb 99 2.50 1.50 1.25 20.00 100.00 140.00 17 Feb 99 2.06 2.38 2.63 (51.52) (57.90) (61.91) 11 Feb 99 10 Feb 99 54.63 55.00 50.00 39.13 38.18 52.00 09 Feb 99 1.19 1.50 1.81 145.47 94.33 60.83
56 DAIRY MART CONVENIENCE STORES, INC. Premium Analysis of All Completed Non-Financial Institution and Non-Technology Transactions With Total Consideration Between $25 Million and $250 Million Since 1/1/99 (1) (ALL CASH CONSIDERATION)
- -------------------------------------------------------------------------------------------------------------- DATE DATE ANNOUNCED EFFECTIVE TARGET NAME - -------------------------------------------------------------------------------------------------------------- 28 Jan 99 10 May 99 Signature Inns Inc 22 Jan 99 11 Jun 99 Treadco Inc(Arkansas Best Corp) 19 Jan 99 24 Mar 99 Audits & Surveys Worldwide Inc 19 Jan 99 09 Apr 99 AG Associates Inc 13 Jan 99 02 Mar 99 Boston Celtics LP 11 Jan 99 08 Mar 99 Shopping.com 11 Jan 99 22 Feb 99 Alarmguard Holdings Inc 07 Jan 99 17 Feb 99 Trident International Inc 07 Jan 99 24 Feb 99 Defiance Inc 06 Jan 99 01 Mar 99 ExecuStay Corp - ---------------------------------------------------------------------------------------------------------------------------------- DATE DEAL OFFER ANNOUNCED ACQUIROR NAME VALUE (MIL) PRICE/SHARE (1) - ---------------------------------------------------------------------------------------------------------------------------------- 28 Jan 99 Jameson Inns Inc 41.22 6.06 22 Jan 99 Arkansas Best Corp 22.65 9.00 19 Jan 99 United Information Group (United News & Media PLC) 43.22 3.24 19 Jan 99 Steag AG(Rag AG) 34.58 5.50 13 Jan 99 Castle Creek Partners LP 7.31 17.00 11 Jan 99 Compaq Computer Corp 130.09 18.25 11 Jan 99 ADT Inc(ADT Group PLC) 53.38 9.25 07 Jan 99 Illinois Tool Works Inc 111.65 16.50 07 Jan 99 General Chemical Group Inc 57.81 9.50 06 Jan 99 Marriott International Inc (Host Marriott Corp) 64.84 14.00 - -------------------------------------------------------------------------------------------------- CLOSING PRICE PREMIUM ----------------------------------- --------------------------------------- 1 day 1 week 4 weeks 1 day 1 week 4 weeks DATE prior to prior to prior to prior to prior to prior to ANNOUNCED ann. date ann. date ann. date ann. date ann. date ann. date - -------------------------------------------------------------------------------------------------- 28 Jan 99 3.88 2.94 3.03 56.47 106.40 100.02 22 Jan 99 19 Jan 99 2.44 2.38 2.50 32.92 36.42 29.60 19 Jan 99 4.38 4.13 3.69 25.71 33.33 49.15 13 Jan 99 14.00 14.63 10.00 21.43 16.24 70.00 11 Jan 99 11 Jan 99 9.75 8.19 7.63 (5.13) 12.98 21.31 07 Jan 99 9.25 9.00 9.25 78.38 83.33 78.38 07 Jan 99 6.13 6.75 6.50 55.10 40.74 46.15 06 Jan 99 13.56 13.06 12.75 3.23 7.18 9.80
-------------------------------------------------------- MEDIAN 28.3 % 35.2 % 44.0 % --------------------------------------------------------
Copyright(C)2001, Thomson Financial Securities Data. (1) Includes all forms of consideration based on date of announcement. -----END PRIVACY-ENHANCED MESSAGE-----