Amplify Snack Brands, Inc. acquired by The Hershey Company

Basis

• USD 1.6bn enterprise value is treated as publicly disclosed or derived directly from public source data.
• Valuation covers 100% of the target; the amount invested or paid for a stake is separate.
• Implied EV / revenue is 4.3x, calculated from USD 1.6bn value and USD 372m revenue.
• Revenue and multiple inputs are not fully disclosed in public transaction materials reviewed; treat the multiple as an estimate.
• Announced transaction value was approximately USD 1.6 billion, including net debt and a USD 76 million Tax Receivable Agreement make-whole payment. LTM net sales were USD 372 million for the 12 months ended September 30, 2017; dividing the approximate transaction value by those sales gives approximately 4.30x. Amplify’s fiscal-2017 adjusted EBITDA guidance was USD 84–86 million. Hershey reported an approximately 14.8x multiple based on 2017 adjusted EBITDA including approximately USD 20 million of expected annual run-rate synergies; this is not a standalone EBITDA multiple. At closing, Hershey paid approximately USD 908 million for shares and approximately USD 607 million to repay Amplify obligations. The guidance range and reported multiple are not converted into a scalar EBITDA amount or standalone multiple. Approximately USD 1.6 billion divided by USD 372 million equals approximately 4.30x. No standalone EBITDA multiple calculated. Issuer announcement and conference-call transcript report transaction value, LTM sales, fiscal-2017 adjusted EBITDA guidance, and a reported synergy-inclusive multiple. EBITDA guidance is a range, so no scalar EBITDA amount is assigned.