EX-99.(C)(2) 3 a2096987zex-99_c2.htm EXHIBIT 99(C)(2)
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Ex 99(c)(2)

Selected comparable companies analysis

 
    
    
    
   EV/Revenue
   EV/EBITDA
   EV/EBIT
   P/E
Company
   Share Price
    
    
  Market Cap
   EV
   LTM
   2002E
   2003E
   LTM
   2002E
   2003E
   LTM
   2002E
   2003E
   2002E
   2003E
Direct comps:                                                              
Fresh Del Monte Produce Inc.   $ 27.12   $ 1,477.2   $ 1,667.4   0.9x   0.8x   0.7x   5.8x   6.5x   6.7x   7.5x   8.5x   8.8x   10.8x   10.0x
Chiquita Brands Int'l.   $ 16.22   $ 711.3   $ 1,232.5   0.5x   0.5x   0.5x   6.8x   7.0x   5.6x   11.8x   9.5x   7.0x   8.8x   7.1x
                  Mean   0.7x   0.7x   0.6x   6.3x   6.8x   6.1x   9.6x   9.0x   7.9x   9.8x   8.5x
                  Median   0.7x   0.7x   0.6x   6.3x   6.8x   6.1x   9.6x   9.0x   7.9x   9.8x   8.5x

Other commodity comps:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Archer Daniels Midland Co.   $ 12.05   $ 7,805.8   $ 11,211.7   0.5x   0.4x   0.4x   7.4x   8.3x   6.7x   11.9x   14.5x   10.3x   18.8x   13.9x
Bunge Limited   $ 20.72   $ 2,056.4   $ 3,075.4   0.3x   0.2x   0.3x   4.5x   4.1x   4.5x   6.1x   5.2x   6.1x   9.9x   8.7x
ConAgra Foods, Inc.   $ 25.45   $ 13,754.1   $ 20,549.4   1.1x   0.8x   1.0x   9.7x   9.0x   9.7x   13.8x   12.0x   12.0x   16.1x   15.3x
Dean Foods Co.   $ 39.11   $ 3,547.2   $ 6,091.1   0.6x   0.6x   0.6x   7.0x   6.9x   6.5x   10.0x   8.7x   8.2x   14.1x   12.7x
Smithfield Foods, Inc.   $ 17.49   $ 1,939.1   $ 3,456.7   0.4x   0.4x   0.4x   6.9x   8.2x   7.4x   10.1x   12.8x   10.9x   17.8x   13.8x
                  Mean   0.6x   0.5x   0.5x   7.1x   7.3x   7.0x   10.4x   10.6x   9.5x   15.4x   12.9x
                  Median   0.5x   0.4x   0.4x   7.0x   8.2x   6.7x   10.1x   12.0x   10.3x   16.1x   13.8x
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Dole Food Co.—current   $ 26.60   $ 1,511.4   $ 2,141.6   0.5x   0.5x   0.5x   5.8x   5.6x   5.2x   8.1x   7.7x   7.1x   10.0x   9.0x
   
 
 
 
 
 
 
 
 
 
 
 
 
 

1

Analysis of selected precedent transactions

 
    
    
    
   Transaction value as
a multiple of LTM:
   Equity value multiple
   Premiums to market
  
Date announced
   Target/Acquiror
   Equity value
   Enterprise value
   Revenues
   EBITDA
   EBIT
   LTM net income
   Day prior
   4 Weeks prior
  
10/30/01   Cerestar SA (Montedison)/Cargill Inc.   $ 428.4   $ 1,235.6   0.8 x 12.1 x NM   NA          
08/09/01   Fresh Express Inc/Performance Food Group Co     302.6     302.6   0.6   7.2   11.0 x 19.6 x        
04/05/01   Dean Foods/Suiza Foods     1,500.0     2,500.0   0.6   7.1   10.8   14.3   25.9 % 26.9 %
12/22/00   Michael Foods/Investor Group     569.3     769.3   0.7   5.8   8.5   12.2   10.2   14.7  
12/04/00   IBP/Tyson(1)     2,776.3     4,204.9   0.3   6.3   8.2   9.9   42.0   62.5  
12/04/00   Agribrands International Inc/Cargill(2)     575.8     411.9   0.3   4.7   6.6   12.4   24.4   24.6  
11/13/00   IBP/Smithfield(1)     2,666.3     4,094.9   0.3   6.1   8.0   9.5   36.5   56.3  
10/02/00   IBP/DLJ Merchant Partners(1)     2,363.8     3,792.4   0.2   5.6   7.4   8.4   21.5   39.1  
09/27/00   WLR Foods/Pilgrim's Pride     240.0     300.0   0.4   8.6   19.7   32.0   107.3   210.2  
08/08/00   Agribrands International Inc/Ralcorp(2)     405.0     241.1   0.2   2.8   3.9   8.7   9.7   (1.7 )
12/08/99   Seaboard Inc.—Poultry division/ConAgra Inc     360.0     360.0   0.8   6.9   13.3   NA          
07/26/99   Thom Apple Valley—6 plants/IBP     115.0     117.5   0.2   9.2   45.2   NA          
01/05/99   B.C. Packers—canned seafood brands/International Home Foods     39.0     39.0   0.3   5.9   NA   NA          
12/02/98   Gramoven (Bunge)/Cargill     140.0     233.3   1.4   9.3   13.7   NA          
11/10/98   Continental Grain Co—Commodity marketing/Cargill     300.0     300.0   NA   NA   NA   NA          
07/27/98   Birds Eye (Dean Foods)/Argilink Foods     458.4     488.4   0.7   7.3   12.3   NA          
07/20/98   Libby's (Nestle)/International Home Foods     126.0     126.0   0.9   7.0   NA   NA          
06/11/98   ICS Holdings Ltd(CG Smith Ltd)/Tiger Oats Ltd(Barlow Ltd)     225.0     225.0   0.3   3.9   4.9   7.2   6.5   26.9  
09/04/97   Hudson Foods Inc/Tyson Foods     642.4     642.4   0.4   8.1   12.0   15.2   23.5   28.6  
08/26/97   Savannah Foods & Industries/Imperial Holly     582.9     582.9   0.5   5.8   8.2   14.7          
05/08/97   Lonrho Sugar Corp Ltd(Lonrho)/Illovo Sugar Ltd     384.8     384.8   1.6   5.2   5.9   14.4          
05/02/97   Bumble Bee Seafoods/International Home Foods     163.0     366.2   1.1   9.5   NA   NA          
02/28/97   Del Monte Foods Company/Texas Pacific Group     540.0     850.0   0.7   7.1   8.9   27.8          
   
 
    Low               0.2 x 3.9 x 4.9 x     6.5 % 14.7 %
    Median               0.6   7.1   10.8       24.4   26.9  
    Mean               0.7   7.2   12.6       34.2   56.3  
    Adj Mean               0.6   6.4   9.3       18.0   24.2  
    High               1.6   12.1   45.2       107.3   210.2  
   
 
(1)
Premia for all three IBP proposals calculated based on IBP closing price on 10/1/00, the day prior to the original DLJ offer. The Tyson/IBP transaction, which had been terminated in March 2001, is pending following the issuance of a Delaware court order forcing Tyson to proceed with the transaction.

(2)
Ralcorp bid for Agribrands was topped by Cargill bid. Premia for Agribrands/Cargill transaction calculated based on closing prices prior to announcement of Ralcorp bid.

2

Multiples at various prices

Acquisition price per share         $ 24.30   $ 27.00   $ 27.50   $ 28.00   $ 28.50   $ 29.00   $ 29.50   $ 30.00   $ 30.50   $ 31.00   $ 31.50   $ 32.00   $ 32.50   $ 33.00   $ 33.50   $ 34.00  
Implied Premium:                                                                                                        
  Current           0.0 %   11.1 %   13.2 %   15.2 %   17.3 %   19.3 %   21.4 %   23.5 %   25.5 %   27.6 %   29.6 %   31.7 %   33.7 %   35.8 %   37.9 %   39.9 %
  52-week high   $ 33.85     (28.2 )%   (20.2 )%   (18.8 )%   (17.3 )%   (15.8 )%   (14.3 )%   (12.9 )%   (11.4 )%   (9.9 )%   (8.4 )%   (6.9 )%   (5.5 )%   (4.0 )%   (2.5 )%   (1.0 )%   0.4 %
  30-day avg.   $ 27.07     (10.2 )%   (0.2 )%   1.6 %   3.4 %   5.3 %   7.1 %   9.0 %   10.8 %   12.7 %   14.5 %   16.4 %   18.2 %   20.1 %   21.9 %   23.8 %   25.6 %
  26-week Avg   $ 30.02     (19.1 )%   (10.1 )%   (8.4 )%   (6.7 )%   (5.1 )%   (3.4 )%   (1.7 )%   (0.1 )%   1.6 %   3.3 %   4.9 %   6.6 %   8.3 %   9.9 %   11.6 %   13.2 %
  52-week Avg   $ 27.69     (12.3 )%   (2.5 )%   (0.7 )%   1.1 %   2.9 %   4.7 %   6.5 %   8.3 %   10.1 %   11.9 %   13.7 %   15.6 %   17.4 %   19.2 %   21.0 %   22.8 %

Equity value (EV)
 
 
 
 
$
1,378.6
 
$
1,534.5
 
$
1,563.4
 
$
1,592.4
 
$
1,621.7
 
$
1,651.0
 
$
1,680.3
 
$
1,709.6
 
$
1,739.0
 
$
1,768.3
 
$
1,797.6
 
$
1,826.9
 
$
1,856.2
 
$
1,885.5
 
$
1,914.9
 
$
1,944.2
 
  Plus: Total Debt           1,205.9     1,205.9     1,205.9     1,205.9     1,205.9     1,205.9     1,205.9     1,205.9     1,205.9     1,205.9     1,205.9     1,205.9     1,205.9     1,205.9     1,205.9     1,205.9  
  Plus: Minority Interest           35.8     35.8     35.8     35.8     35.8     35.8     35.8     35.8     35.8     35.8     35.8     35.8     35.8     35.8     35.8     35.8  
  Less: Cash           611.4     611.4     611.4     611.4     611.4     611.4     611.4     611.4     611.4     611.4     611.4     611.4     611.4     611.4     611.4     611.4  
Total enterprise value (TEV)         $ 2,008.8   $ 2,164.7   $ 2,193.6   $ 2,222.6   $ 2,251.9   $ 2,281.2   $ 2,310.6   $ 2,339.9   $ 2,369.2   $ 2,398.5   $ 2,427.8   $ 2,457.1   $ 2,486.5   $ 2,515.8   $ 2,545.1   $ 2,574.4  

TEV as a multiple of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  LTM Revenue   $ 4,467.5     0.4 x   0.5 x   0.5 x   0.5 x   0.5 x   0.5 x   0.5 x   0.5 x   0.5 x   0.5 x   0.5 x   0.6 x   0.6 x   0.6 x   0.6 x   0.6 x
  LTM EBITDA     372.2     5.4 x   5.8 x   5.9 x   6.0 x   6.1 x   6.1 x   6.2 x   6.3 x   6.4 x   6.4 x   6.5 x   6.6 x   6.7 x   6.8 x   6.8 x   6.9 x
  LTM EBIT     264.1     7.6 x   8.2 x   8.3 x   8.4 x   8.5 x   8.6 x   8.7 x   8.9 x   9.0 x   9.1 x   9.2 x   9.3 x   9.4 x   9.5 x   9.6 x   9.7 x

EV as a multiple of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  FY02 EPS   $ 2.65     9.2 x   10.2 x   10.4 x   10.6 x   10.8 x   10.9 x   11.1 x   11.3 x   11.5 x   11.7 x   11.9 x   12.1 x   12.3 x   12.5 x   12.6 x   12.8 x
  FY03 EPS   $ 3.07     7.9 x   8.8 x   9.0 x   9.1 x   9.3 x   9.4 x   9.6 x   9.8 x   9.9 x   10.1 x   10.3 x   10.4 x   10.6 x   10.7 x   10.9 x   11.1 x
  Book value   $ 725.9     1.9 x   2.1 x   2.2 x   2.2 x   2.2 x   2.3 x   2.3 x   2.4 x   2.4 x   2.4 x   2.5 x   2.5 x   2.6 x   2.6 x   2.6 x   2.7 x
  Tangible book value   $ 589.8     2.3 x   2.6 x   2.7 x   2.7 x   2.7 x   2.8 x   2.8 x   2.9 x   2.9 x   3.0 x   3.0 x   3.1 x   3.1 x   3.2 x   3.2 x   3.3 x

Credit stats
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Total debt/LTM EBITDA           3.2 x   3.2 x   3.2 x   3.2 x   3.2 x   3.2 x   3.2 x   3.2 x   3.2 x   3.2 x   3.2 x   3.2 x   3.2 x   3.2 x   3.2 x   3.2 x
  Net debt/LTM EBITDA           1.6 x   1.6 x   1.6 x   1.6 x   1.6 x   1.6 x   1.6 x   1.6 x   1.6 x   1.6 x   1.6 x   1.6 x   1.6 x   1.6 x   1.6 x   1.6 x
  Total debt/total capitalization           46.7 %   44.0 %   43.5 %   43.1 %   42.6 %   42.2 %   41.8 %   41.4 %   40.9 %   40.5 %   40.1 %   39.8 %   39.4 %   39.0 %   38.6 %   38.3 %

3



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