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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13E-3
RULE 13E-3 TRANSACTION STATEMENT
(PURSUANT TO SECTION 13(e) OF THE SECURITIES EXCHANGE ACT OF 1934)
UNITED FOODS, INC.
(Name of the Issuer)
UNITED FOODS, INC.
PICTSWEET LLC
UF ACQUISITION CORP.
JAMES I. TANKERSLEY
EDNA W. TANKERSLEY
DARLA T. DARNALL
KELLE T. NORTHERN
JAMES W. TANKERSLEY
(Name of Persons Filing Statement)
CLASS A COMMON STOCK, PAR VALUE $1.00 PER SHARE
CLASS B COMMON STOCK, PAR VALUE $1.00 PER SHARE
(Title of Class of Securities)
CLASS A 910365 30 3
CLASS B 910365 10 5
(CUSIP Number of Class of Securities)
B.M. ENNIS
PRESIDENT
UNITED FOODS, INC.
TEN PICTSWEET DRIVE
BELLS, TENNESSEE 39006-0119
(901) 422-7600
JAMES I. TANKERSLEY
TEN PICTSWEET DRIVE
BELLS, TENNESSEE 39006-0119
(901) 422-7600
With copies to:
JAMES H. CHEEK, III SAM D. CHAFETZ
BASS, BERRY & SIMS PLC WARING COX, PLC
2700 FIRST AMERICAN CENTER 50 NORTH FRONT STREET
NASHVILLE, TENNESSEE 37238-2700 SUITE 1300
(615) 742-6200 MEMPHIS, TENNESSEE 38103-1190
(901) 543-8000
----------
(Name, Address and Telephone Number of Person(s) Authorized to Receive Notices
and Communications on Behalf of Person(s) Filing Statement)
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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 [17 CFR 240.14a-1 to 240.14b-1], Regulation
14C [17 CFR 240.14c-1 to 240.14c-101] or Rule 13e-3(c) [[Section]
240.13e(c)] under the Securities 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 (1): $ 14,897,799
Amount of Filing Fee (2): $ 2,980
(1) Estimated solely for purposes of calculating the filing fee and pursuant to
Rule 0-11 under the Securities Exchange Act of 1934, as amended. The transaction
applies to an aggregate of 4,256,514 shares of common stock, of which 2,617,243
shares are Class A common stock, par value $1.00 per share, and 4,192,686 shares
are Class B common stock, par value $1.00 per share (the "Class A Common Stock"
and "Class B Common Stock," respectively, and together, the "Common Stock"), of
United Foods, Inc. calculated as follows: the sum of (i) 2,617,243 shares of
Class A Common Stock issued and outstanding (less 0 shares of Class A Common
Stock then owned by Pictsweet LLC, UF Acquisition Corp. or any of their
affiliates) and (ii) an aggregate of 1,639,271 shares of Class B Common Stock
calculated as follows: 4,192,686 shares of Class B Common Stock issued and
outstanding (less 2,553,415 shares of Class B Common Stock then owned by
Pictsweet LLC, UF Acquisition Corp. or any of their affiliates).
(2) The proposed maximum aggregate value of the transaction is $14,897,799
calculated as follows: the sum of (i) the product of (a) 2,617,243 shares of
Class A Common Stock issued and outstanding (less 0 shares of Class A Common
Stock then owned by Pictsweet LLC, UF Acquisition Corp. or any of their
affiliates) and (b) $3.50, and (ii) the product of (a) 4,192,686 shares of Class
B Common Stock issued and outstanding (less 2,553,415 shares of Class B Common
Stock then owned by Pictsweet LLC, UF Acquisition Corp. or any of their
affiliates) and (b) $3.50.
[ ] 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: $_______
Filing Party: _______________
Form or Registration No.: _____________
Proxy Statement File No.: _______
Date Filed: ________, 1999.
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INTRODUCTION
This Rule 13e-3 Transaction Statement (as amended, the "Statement") is being
filed by United Foods, Inc., a Delaware corporation (the "Company"), Pictsweet
LLC, a Delaware limited liability company, UF Acquisition Corp., a Delaware
corporation and wholly-owned subsidiary of Pictsweet LLC and James I.
Tankersley, Edna W. Tankersley, James W. Tankersley, Darla T. Darnall and Kelle
T. Northern (the "Jim Tankersley Family"), in connection with the proposed
merger (the "Merger") of UF Acquisition Corp. with and into the Company,
pursuant to the Agreement and Plan of Merger dated as of May 14, 1999 (the
"Merger Agreement"), among the Company, Pictsweet LLC and UF Acquisition Corp.
The cross reference sheet below is being supplied pursuant to General
Instruction F to Schedule 13E-3 and shows the location in the Company's
preliminary proxy statement (the "Proxy Statement") simultaneously being filed
with the Securities and Exchange Commission (the "Commission") in connection
with the proposed Merger, which contains information required to be included in
response to items of this Statement. A copy of the Proxy Statement is attached
hereto as Exhibit 17(d). The information in the Proxy Statement, including all
exhibits thereto, is hereby expressly incorporated herein by reference and the
responses to each item are qualified in their entirety by the provisions of the
Proxy Statement. All information in, or incorporated by reference in, the Proxy
Statement or this Statement concerning the Company or its advisors, or actions
or events with respect to any of them, was provided by the Company, and all
information in, or incorporated by reference in, the Proxy Statement or this
Statement concerning the Jim Tankersley Family, Pictsweet LLC, UF Acquisition
Corp. or their affiliates, or actions or events with respect to them, was
provided by the Jim Tankersley Family. The Proxy Statement incorporated by
reference in this filing is in preliminary form and is subject to completion or
amendment. In addition, the information in the preliminary Proxy Statement is
intended to be solely for the information and use of the Commission, and should
not be relied upon by any other person for any purpose. Capitalized terms used
but not defined in this statement shall have the respective meanings given them
in the Proxy Statement.
CROSS REFERENCE SHEET
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Item in Schedule 13E-3 Caption in Proxy Statement
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Item 1(a) Cover Page; Summary - The Parties.
Item 1(b) Cover Page; Summary - The Special Meeting - Record Date and Voting; The Special
Meeting - Record Date and Voting; Market Price and Dividend Information.
Item 1(c)-(d) Market Price and Dividend Information.
Item 1(e) Not Applicable.
Item 1(f) Certain Transactions in the Common Stock.
Item 2(a)-(d), (g) Summary - The Parties; Directors and Executive Officers of the Company, Pictsweet
LLC and UF Acquisition Corp. - Information Concerning Directors and Executive
Officers of the Company; Directors and Executive Officers of the Company,
Pictsweet LLC and UF Acquisition Corp. - Information Concerning Directors and
Executive Officers of Pictsweet LLC and UF Acquisition Corp; Directors and
Executive Officers of the Company, Pictsweet LLC and UF Acquisition Corp. -
Information Concerning Directors and Executive Officers of the Surviving
Corporation.
Item 2(e)-(f) Not Applicable.
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Item 3(a)(1) Not applicable.
Item 3(a)(2) - (b) Special Factors - Background of the Merger; Special Factors - Recommendation of
the Special Committee; Special Factors - Recommendation of the Board of Directors;
The Merger Agreement; Appendix A - The Merger Agreement; Certain Transactions in the Common Stock.
Item 4(a)-(b) Questions and Answers About the Merger; Summary; Special Factors - Purpose and
Structure of the Merger; Special Factors - Interests of Certain Persons in the Merger;
Special Factors - Certain Effects of the Merger; Special Factors - Certain Federal
Income Tax Consequences; The Merger Agreement; Appraisal Rights; Appendix A - The Merger
Agreement.
Item 5(a), (b), (d) and (e) Special Factors - Plans for the Company After the Merger; Special Factors - Certain
Effects of the Merger.
Item 5(c), (f) and (g) Summary - Special Factors - Certain Effects of the Merger; Special Factors - Interests
of Certain Persons in the Merger - Directors and Officers; Special Factors - Certain
Effects of the Merger.
Item 6(a) - (b) Special Factors - Sources of Funds; Fees and Expenses; The Merger Agreement -
Fees and Expenses.
Item 6(c) Special Factors - Sources of Funds; Fees and Expenses; Appendix A - The Merger
Agreement.
Item 6(d) Not Applicable.
Item 7(a) Summary - Special Factors - Purpose and Structure of the Merger; Special Factors -
Background of the Merger; Special Factors - Purpose and Structure of the Merger;
Special Factors - Plans for the Company After the Merger; Special Factors -
Perspective of the Jim Tankersley Family, Pictsweet LLC and UF Acquisition Corp.
on the Merger.
Item 7(b) Special Factors - Background of the Merger; Special Factors - Purpose and Structure
of the Merger; Special Factors - Plans for the Company After the Merger; Special Factors -
Perspective of the Jim Tankersley Family, Pictsweet LLC and UF Acquisition Corp. on the
Merger.
Item 7(c) Summary - Special Factors - Purpose and Structure of the Merger; Special Factors -
Background of the Merger; Special Factors - Purpose and Structure of the Merger; Special
Factors - Recommendation of the Special Committee; Special Factors - Recommendation of
the Board of Directors; Special Factors - Plans for the Company After the Merger; Special
Factors - Perspective of the Jim Tankersley Family, Pictsweet LLC and UF Acquisition Corp.
on the Merger; The Special Meeting - Vote Required; Revocability of Proxies.
Item 7(d) Summary - Special Factors - Purpose and Structure of the Merger; Summary - Special
Factors - Certain Effects of the Merger; Summary - Special Factors - Certain U.S.
Federal Income Tax Consequences; Summary - The Merger; Special Factors - Purpose and Structure
of the Merger; Special Factors - Plans for the Company After
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the Merger; Special Factors - Certain Effects of the Merger; Special Factors - Certain
Federal Income Tax Consequences; The Merger Agreement.
Item 8(a) - (b) Summary - Special Factors - Recommendation of the Special Committee; Summary -
Special Factors - Recommendation of the Board of Directors; Special Factors -
Background of the Merger; Special Factors - Purpose and Structure of Merger;
Special Factors - Recommendation of the Special Committee; Special Factors -
Recommendation of the Board of Directors; Special Factors - Opinion of the Special
Committee's Financial Advisor; Appendix B - Fairness Opinion of J.C. Bradford &
Co., L.L.C.
Item 8(c) Summary - The Special Meeting - Vote Required; Revocability of Proxies; Summary
- Special Factors - Recommendation of the Special Committee; Summary - Special
Factors - Recommendation of the Board of Directors; Special Factors -
Recommendation of the Special Committee; Special Factors - Recommendation of
the Board of Directors; The Special Meeting - Vote Required; Revocability of
Proxies.
Item 8(d) Summary - Special Factors - Recommendation of the Special Committee; Summary -
Special Factors - Recommendation of the Board of Directors; Summary - Special
Factors - Opinion of the Financial Advisor to the Special Committee; Special Factors -
Background of the Merger; Special Factors - Recommendation of the Special
Committee; Special Factors - Recommendation of the Board of Directors; Special
Factors - Opinion of the Special Committee's Financial Advisor; Appendix B -
Fairness Opinion of J.C. Bradford & Co., L.L.C.
Item 8(e) Summary - Special Factors - Recommendation of the Special Committee; Summary - Special
Factors - Recommendation of the Board of Directors; Special Factors - Recommendation of the
Special Committee; Special Factors - Recommendation of the Board of Directors.
Item 8(f) Not Applicable.
Item 9(a)-(c) Summary - Special Factors - Opinion of the Financial Advisor to the Special Committee;
Special Factors - Background of the Merger; Special Factors - Recommendation of the Special
Committee; Special Factors - Recommendation of the Board of Directors; Special Factors -
Opinion of the Special Committee's Financial Advisor; Appendix B - Fairness Opinion of J.C.
Bradford & Co., L.L.C.
Item 10(a) Special Factors - Interests of Certain Persons in the Merger; Security Ownership of
Management and Certain Beneficial Owners.
Item 10(b) Certain Transactions in the Common Stock.
Item 11 Summary - The Special Meeting - Record Date and Voting; Summary - The Special
Meeting - Vote Required; Revocability of Proxies; Special Factors - Background of
the Merger; Special Factors - Sources of Funds; Fees and Expenses; Special Factors -
Interests of Certain Persons in the Merger; The Special Meeting - Record Date and
Voting; The Special Meeting - Vote Required; Revocability of Proxies; The Merger
Agreement; Certain Transactions in the Common Stock; Appendix A - The Merger
Agreement.
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Item 12(a) - (b) Summary - The Special Meeting - Vote Required; Revocability of Proxies; Summary -
Special Factors; Summary - Appraisal Rights; Summary - The Special Meeting -
Interests of Certain Persons in the Merger; The Special Meeting - Appraisal Rights;
The Special Meeting - Vote Required; Revocability of Proxies; Special Factors -
Background of the Merger; Special Factors - Recommendation of the Special
Committee; Special Factors - Recommendation of the Board of Directors; Special
Factors - Interests of Certain Persons in the Merger.
Item 13(a) Summary - Appraisal Rights; Appraisal Rights; Statement of appraisal rights
(incorporated by reference to Appendix C to the Proxy Statement attached hereto as
Exhibit 17(d)).
Item 13(b) - (c) Not Applicable.
Item 14(a) Summary - Summary Historical and Unaudited Pro Forma Financial Information - Summary
Historical Financial Information; Selected Historical Financial Data; Financial
Statements and Supplementary Data.
Item 14(b) Summary - Summary Historical and Unaudited Pro Forma Financial Information - Pro
Forma Effect of Proposed Merger.
Item 15(a) - (b) Special Factors - Sources of Funds; Fees and Expenses; The Special Meeting -
Solicitation of Proxies; The Merger Agreement - Fees and Expenses.
Item 16 The information set forth in the Proxy Statement is incorporated herein by reference.
Item 17(a) First American National Bank Commitment Letter dated May 21, 1999 (attached
hereto as Exhibit 17(a)).
Item 17(b) Opinion of J.C. Bradford & Co., L.L.C., dated May 14, 1999 (incorporated by
reference to Appendix B to the Proxy Statement attached hereto as Exhibit 17(d));
Report of the Special Transaction Committee of the Board of Directors of United
Foods, Inc., dated May 10, 1999 (attached hereto as Exhibit 17(b)(2)); Information for
the Special Committee of the Board of Directors prepared by J.C. Bradford & Co.,
L.L.C., dated May 10, 1999 (attached hereto as Exhibit 17(b)(3)); Fairness Opinion of
J.C. Bradford & Co., L.L.C., dated January 20, 1999 (attached hereto as
Exhibit 17(b)(4)); Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated January 20, 1999 (attached hereto as
Exhibit 17(b)(5)); Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated December 21, 1998 (attached hereto
as Exhibit 17(b)(6)); Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated December 8, 1998 (attached hereto as
Exhibit 17(b)(7)); Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated November 18, 1998 (attached hereto
as Exhibit 17(b)(8)); Information for the Special Committee of the Board of Directors
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prepared by J.C. Bradford & Co., L.L.C., dated October 14, 1998 (attached hereto as
Exhibit 17(b)(9)); Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated October 5, 1998 (attached hereto as
Exhibit 17(b)(10)).
Item 17(c) Agreement and Plan of Merger, dated as of May 14, 1999, among the Company,
Pictsweet LLC and UF Acquisition Corp. (incorporated by reference to Appendix A
to the Proxy Statement attached hereto as Exhibit 17(d)).
Item 17(d) Preliminary copy of Notice of Special Meeting of Stockholders, Proxy Statement and
form of Proxy for the Special Meeting of Stockholders of the Company (attached hereto
as Exhibit 17(d)).
Item 17(e) Statement of appraisal rights (Section 262 of the Delaware General Corporation Law)
(incorporated by reference to Appendix C to the Proxy Statement attached hereto as
Exhibit 17(d)).
Item 17(f) Not Applicable.
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ITEM 1. Issuer and Class of Security Subject to the Transaction.
(a) The information set forth in "Cover Page" and "Summary - The Parties"
in the Proxy Statement is incorporated herein by reference.
(b) The information set forth in "Cover Page," "Summary - The Special
Meeting - Record Date and Voting," "The Special Meeting - Record Date
and Voting," and "Market Price and Dividend Information" in the Proxy
Statement is incorporated herein by reference.
(c) - (d) The information set forth in "Market Price and Dividend
Information" in the Proxy Statement is incorporated herein by
reference.
(e) Not applicable.
(f) The information set forth in "Certain Transactions in the Common
Stock" in the Proxy Statement is incorporated herein by reference.
ITEM 2. Identity and Background.
This Statement is being jointly filed by the Company (the issuer of
the classes of equity securities which are the subject of the
transaction), Pictsweet LLC, UF Acquisition Corp. (a wholly-owned
subsidiary of Pictsweet LLC) and the members of the Jim Tankersley
Family.
(a) - (d) The information set forth in "Summary - The Parties," "Directors and
and (g) Executive Officers of the Company, Pictsweet LLC and UF Acquisition
Corp. - Information Concerning Directors and Executive Officers of the
Company," "Directors and Executive Officers of the Company, Pictsweet
LLC and UF Acquisition Corp. - Information Concerning Directors and
Executive Officers of Pictsweet LLC and UF Acquisition Corp,"
"Directors and Executive Officers of the Company, Pictsweet LLC and UF
Acquisition Corp. - Information Concerning Directors and Executive
Officers of the Surviving Corporation" in the Proxy Statement is
incorporated herein by reference.
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(e) and None of Company, Pictsweet LLC, UF Acquisition Corp., the members of
(f) the Jim Tankersley Family or, to the best of their knowledge, any
executive officer, director or controlling person of the Company,
Pictsweet LLC or UF Acquisition Corp. (i) has been convicted in a
criminal proceeding (excluding traffic violations or similar
misdemeanors) or (ii) has been a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction and as a
result of such proceeding was or is subject to a judgment, decree or
final order enjoining further violations of, or prohibiting activities
subject to, federal or state securities laws or finding any violation
with respect to such laws.
ITEM 3. Past Contacts, Transactions or Negotiations.
(a)(1) Not applicable.
(a)(2) - The information set forth in "Special Factors - Background of the
(b) Merger," "Special Factors - Recommendation of the Special Committee"
"Special Factors - Recommendation of the Board of Directors," "The
Merger Agreement," "Certain Transactions in the Common Stock" and
"Appendix A - The Merger Agreement" in the Proxy Statement is
incorporated herein by reference.
ITEM 4. Terms of the Transaction.
(a) - (b) The information set forth in "Questions and Answers About the Merger,"
"Summary," "Special Factors - Purpose and Structure of the Merger,"
"Special Factors - Interests of Certain Persons in the Merger,"
"Special Factors - Certain Effects of the Merger," "Special Factors -
Certain Federal Income Tax Consequences," "The Merger Agreement,"
"Appraisal Rights" and "Appendix A - The Merger Agreement" in the
Proxy Statement is incorporated herein by reference.
ITEM 5. Plans or Proposals of the Issuer or Affiliate.
(a), (b), The information set forth in "Special Factors - Plans for the Company
(d) and After the Merger" and "Special Factors - Certain Effects of the
(e) Merger" in the Proxy Statement is incorporated herein by reference.
(c), (f) The information set forth in "Summary - Special Factors - Certain
and (g) Effects of the Merger," "Special Factors - Interests of Certain
Persons in the Merger - Directors and Officers," and "Special Factors
- Certain Effects of the Merger" in the Proxy Statement is
incorporated herein by reference.
ITEM 6. Source and Amounts of Funds or Other Consideration.
(a) - (b) The information set forth in "Special Factors - Sources of Funds; Fees
and Expenses" and "The Merger Agreement - Fees and Expenses" in the
Proxy Statement is incorporated herein by reference.
(c) The information set forth in "Special Factors - Sources of Funds; Fees
and Expenses" and "Appendix A - The Merger Agreement" in the Proxy
Statement is incorporated herein by reference.
(d) Not applicable.
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ITEM 7. Purpose(s), Alternatives, Reasons and Effects.
(a) The information set forth in "Summary - Special Factors - Purpose and
Structure of the Merger," "Special Factors - Background of the Merger,"
"Special Factors - Purpose and Structure of the Merger," "Special
Factors - Plans For the Company After the Merger," and "Special Factors
- Perspective of the Jim Tankersley Family, Pictsweet LLC and UF
Acquisition Corp. on the Merger" in the Proxy Statement is incorporated
herein by reference.
(b) The information set forth in "Special Factors - Background of the
Merger," "Special Factors - Purpose and Structure of the Merger,"
"Special Factors - Plans For the Company after the Merger" and "Special
Factors Perspective of the Jim Tankersley Family, Pictsweet LLC and UF
Acquisition Corp. on the Merger" in the Proxy Statement is incorporated
herein by reference.
(c) The information set forth in "Summary - Special Factors - Purpose and
Structure of the Merger," "Special Factors - Background of the Merger,"
"Special Factors - Purpose and Structure of the Merger," "Special
Factors - Recommendation of the Special Committee," "Special Factors -
Recommendation of the Board of Directors," "Special Factors - Plans For
the Company after the Merger," "Special Factors - Perspective of the
Jim Tankersley Family, Pictsweet LLC and UF Acquisition Corp. on the
Merger" and "The Special Meeting - Vote Required; Revocability of
Proxies" in the Proxy Statement is incorporated herein by reference.
(d) The information set forth in "Summary - Special Factors - Purpose and
Structure of the Merger," "Summary - Special Factors - Certain Effects
of the Merger," "Summary - Special Factors - Certain U.S. Federal
Income Tax Consequences," "Summary - The Merger," "Special Factors -
Purpose and Structure of the Merger," "Special Factors - Plans for the
Company After the Merger," "Special Factors - Certain Effects of the
Merger," "Special Factors - Certain Federal Income Tax Consequences"
and "The Merger Agreement" in the Proxy Statement is incorporated
herein by reference.
ITEM 8. Fairness of the Transaction.
(a) - (b) The information set forth in "Summary - Special Factors -
Recommendation of the Special Committee," "Summary - Special Factors -
Recommendation of the Board of Directors," "Special Factors -
Background of the Merger," "Special Factors - Purpose and Structure of
Merger," "Special Factors - Recommendation of the Special Committee,"
"Special Factors - Recommendation of the Board of Directors," "Special
Factors - Opinion of the Special Committee's Financial Advisor ," and
"Appendix B - Fairness Opinion of J.C. Bradford & Co., L.L.C." in the
Proxy Statement is incorporated herein by reference.
(c) The information set forth in "Summary - The Special Meeting - Vote
Required; Revocability of Proxies," "Summary - Special Factors -
Recommendation of the Special Committee ," "Summary - Special Factors
- Recommendation of the Board of Directors," "Special Factors -
Recommendation of the Special Committee," "Special Factors -
Recommendation of the Board of Directors" and "The Special Meeting -
Vote Required; Revocability of Proxies" in the Proxy Statement is
incorporated herein by reference.
(d) The information set forth in "Summary - Special Factors -
Recommendation of the Special Committee," "Summary - Special Factors -
Recommendation of the Board of Directors," "Summary - Special Factors
Opinion of the Financial Advisor to the Special Committee," "Special
Factors - Background of the Merger," "Special Factors - Recommendation
of the Special Committee," "Special Factors - Recommendation of the
Board of Directors," "Special Factors - Opinion of the Special
Committee's Financial Advisor" and "Appendix B - Fairness Opinion of
J.C. Bradford & Co., L.L.C." in the Proxy Statement is incorporated
herein by reference.
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(e) The information set forth in "Summary - Special Factors -
Recommendation of the Special Committee," "Summary - Special Factors -
Recommendation of the Board of Directors," "Special Factors -
Recommendation of the Special Committee," "Special Factors -
Recommendation of the Board of Directors" in the Proxy Statement is
incorporated herein by reference.
(f) Not Applicable.
ITEM 9. Reports, Opinions, Appraisals and Certain Negotiations.
(a) - (c) The information set forth in "Summary - Special Factors - Opinion
of the Financial Advisor to the Special Committee," "Special Factors -
Background of the Merger," "Special Factors - Recommendation of the
Special Committee," "Special Factors - Recommendation of the Board of
Directors," "Special Factors - Opinion of the Special Committee's
Financial Advisor" and "Appendix B - Fairness Opinion of J.C. Bradford
& Co., L.L.C." in the Proxy Statement is incorporated herein by
reference.
ITEM 10. Interest in Securities of the Issuer.
(a) The information set forth in "Special Factors -Interests of Certain
Persons in the Merger" and "Security Ownership of Management and
Certain Beneficial Owners" in the Proxy Statement is incorporated
herein by reference.
(b) The information set forth in "Certain Transactions in the Common
Stock" in the Proxy Statement is incorporated herein by reference.
ITEM 11. Contracts, Arrangements or Understandings with Respect to
the Issuer's Securities.
The information set forth in "Summary - The Special Meeting - Record
Date and Voting," "Summary - The Special Meeting - Vote Required;
Revocability of Proxies," "Special Factors - Background of the
Merger," "Special Factors - Sources of Funds; Fees and Expenses,"
"Special Factors - Interests of Certain Persons in the Merger," "The
Special Meeting - Record Date and Voting," "The Special Meeting - Vote
Required; Revocability of Proxies," "The Merger Agreement," "Certain
Transactions in the Common Stock" and "Appendix A - The Merger
Agreement" in the Proxy Statement is incorporated herein by reference.
ITEM 12. Present Intention and Recommendation of Certain Persons
with Regard to the Transaction.
(a) - (b) The information set forth in "Summary - The Special Meeting - Vote
Required; Revocability of Proxies," "Summary - Appraisal Rights,"
"Summary - The Special Meeting - Interests of Certain Persons in the
Merger," "Special Meeting - Vote Required; Revocability of Proxies,"
"Special Factors - Background of the Merger," "Special Factors -
Recommendation of the Special Committee," "Special Factors -
Recommendation of the Board of Directors," "Special Factors -
Interests of Certain Persons in the Merger," and "The Special Meeting
- Vote Required; Revocability of Proxies," in the Proxy Statement is
incorporated herein by reference.
ITEM 13. Other Provisions of the Transaction.
(a) The information set forth in "Summary - Appraisal Rights," "Appraisal
Rights" and "Appendix C - Statement of Appraisal Rights" in the Proxy
Statement is incorporated herein by reference.
(b) - (c) Not applicable.
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ITEM 14. Financial Information.
(a) The information set forth in "Summary - Summary Historical and
Unaudited Pro Forma Financial Information - Summary Historical
Financial Information," "Selected Historical Financial Data" and
"Financial Statements and Supplementary Data" in the Proxy Statement
is incorporated herein by reference.
(b) "Summary - Summary Historical and Unaudited Pro Forma Financial
Information - Pro Forma Effect of the Proposed Merger" in the Proxy
Statement is incorporated herein by reference.
ITEM 15. Persons and Assets Employed, Retained or Utilized.
(a) - (b) The information set forth in "Special Factors - Sources of Funds;
Fees and Expenses," "The Special Meeting - Solicitation of Proxies,"
and "The Merger Agreement - Fees and Expenses" in the Proxy Statement
is incorporated herein by reference.
ITEM 16. Additional Information.
The information set forth in the Proxy Statement is incorporated herein
by reference.
ITEM 17. Material to be Filed as Exhibits.
(a) First American National Bank Commitment Letter dated May 21, 1999.
(b)(1) Opinion of J.C. Bradford & Co., L.L.C., dated May 14, 1999
(incorporated by reference to Appendix B to the Proxy Statement
attached hereto as Exhibit 17(d)).
(b)(2) Report of the Special Transaction Committee of the Board of Directors
of United Foods, Inc., dated May 10, 1999.
(b)(3) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated May 10, 1999.
(b)(4) Fairness Opinion of J.C. Bradford & Co., L.L.C., dated January 20,
1999.
(b)(5) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated January 20, 1999.
(b)(6) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated December 21, 1998.
(b)(7) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated December 8, 1998.
(b)(8) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated November 18, 1998.
(b)(9) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated October 14, 1998.
11
<PAGE> 12
(b)(10) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated October 5, 1998.
(c) Agreement and Plan of Merger, dated as of May 14, 1999, among Company,
Pictsweet LLC and UF Acquisition Corp. (incorporated by reference to
Appendix A to the Proxy Statement attached hereto as Exhibit 17(d)).
(d) Preliminary copy of Notice of Special Meeting of Stockholders, Proxy
Statement and form of Proxy for the Special Meeting of Stockholders of
the Company.
(e) Statement of appraisal rights (Section 262 of the Delaware General
Corporation Law) (incorporated by reference to Appendix C to the Proxy
Statement attached hereto as Exhibit 17(d)).
(f) Not Applicable.
12
<PAGE> 13
SIGNATURES
After due inquiry and to the best of my knowledge and belief, I certify that the
information set forth in this statement is true, complete and correct.
Dated: June 8, 1999 UNITED FOODS, INC.
By: /s/ B. M. Ennis
----------------------------------------
Name: B.M. Ennis
Title: President
PICTSWEET LLC
By: /s/ James I. Tankersley
----------------------------------------
Name: James I. Tankersley
Title: President
UF ACQUISITION CORP.
By: /s/ James I. Tankersley
----------------------------------------
Name: James I. Tankersley
Title: Chairman of the Board and President
JAMES I. TANKERSLEY
/s/ James I. Tankersley
-------------------------------------------
EDNA W. TANKERSLEY
/s/ Edna W. Tankersley
-------------------------------------------
JAMES W. TANKERSLEY
/s/ James W. Tankersley
-------------------------------------------
DARLA T. DARNALL
/s/ Darla T. Darnall
-------------------------------------------
KELLE T. NORTHERN
/s/ Kelle T. Northern
-------------------------------------------
13
<PAGE> 14
Exhibit Index
17(a) First American National Bank Commitment Letter dated May 21, 1999.
17(b)(1) Opinion of J.C. Bradford & Co., L.L.C., dated May 14, 1999
(incorporated by reference to Appendix B to the Proxy Statement
attached hereto as Exhibit 17(d)).
17(b)(2) Report of the Special Transaction Committee of the Board of
Directors of United Foods, Inc., dated May 10, 1999.
17(b)(3) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated May 10, 1999.
17(b)(4) Fairness Opinion of J.C. Bradford & Co., L.L.C., dated January 20,
1999.
17(b)(5) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated January 20, 1999.
17(b)(6) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated December 21, 1998.
17(b)(7) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated December 8, 1998.
17(b)(8) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated November 18, 1998.
17(b)(9) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated October 14, 1998.
17(b)(10) Information for the Special Committee of the Board of Directors
prepared by J.C. Bradford & Co., L.L.C., dated October 5, 1998.
17(c) Agreement and Plan of Merger, dated as of May 14, 1999, among
Company, Pictsweet LLC and UF Acquisition Corp. (incorporated by
reference to Appendix A to the Proxy Statement attached hereto as
Exhibit 17(d)).
17(d) Preliminary copy of Notice of Special Meeting of Stockholders,
Proxy Statement and form of Proxy for the Special Meeting of
Stockholders of the Company.
17(e) Statement of appraisal rights (Section 262 of the Delaware General
Corporation Law) (incorporated by reference to Appendix C to the
Proxy Statement attached hereto as Exhibit 17(d)).
14
<PAGE> 1
Exhibit 17(a)
[First American National Bank Letterhead]
March 5, 1999
Mr. James. I. Tankersley, Chairman
United Foods, Inc.
Ten Pictsweet Drive
Bells, TN 38006
Dear Mr. Jim,
This letter represents a Commitment for a thirty five million dollar
($35,000,000.00) Revolving Line of Credit as detailed on the attached Summary of
Terms. It supercedes all previous commitments by the Bank.
This credit facility is provided to support the proposed share repurchase
transaction by your family. This Commitment is subject to the bank's concurrence
of the final structure of the transaction, when and as approved by the Board of
Directors of United Foods, Inc.
This commitment shall remain in force until April 30, 1999.
Sincerely,
FIRST AMERICAN NATIONAL BANK
/s/ David C. May
David C. May
Executive Vice President
<PAGE> 2
UNITED FOODS, INC.
SUMMARY OF TERMS
FOR EIGHTH AMENDMENT TO REVOLVING LOAN AGREEMENT
DATED APRIL 7, 1993
$35,000,000 CREDIT FACILITY
MARCH 5, 1999
BORROWERS: United Foods, Inc. ("United Foods" or "Borrower").
LENDER: First American National Bank ("FANB" or "Lender"),
and its assigns. Collectively, referred to as
"Lenders".
FACILITY: $35,000,000 Revolving Line of Credit
(Outstandings tied to a borrowing base: 85%
of eligible accounts receivable, 60% of
eligible inventory.) There will be a
$5,000,000 Swing Line, provided as a
sublimit within the above $35,000,000
Revolver, by FANB, to facilitate daily
advances and cash management.
PURPOSE: To provide daily working capital needs, credit
enhancement for obligations relating to workman's
compensation insurance, and for general corporate
purposes.
MATURITY: June 1, 2001.
The Facility Documents will contemplate
annually, with the approval of all Lenders,
an ability to extend the maturity of this
revolving credit by one year beginning on
June 1, 1999.
COLLATERAL: The Facility is secured by a perfected first
priority security interest in all of the
Borrower's accounts receivable and inventory
(excluding the accounts receivable and inventory
associated with Pictsweet Mushroom Farms.)
INTEREST RATES: Lender's Index Rate (FANB Prime) minus .5% and/or
LIBOR + 1.50%.
FEES: COMMITMENT FEE: Payable quarterly in arrears,
0.125% per annum will be charged on the average
unused portion of the Revolving Line of Credit.
Standby Letters of Credit will count as "usage."
STANDBY LETTERS
OF CREDIT: TERMS AND FEES: All new Standby Letters of Credit
(i) will be issued by the Lender as the Issuing
Bank, (ii) will have individual maturities equal
to the lesser of either 364 days or the minimum
maturity required by the beneficiary, provided
that all new Standby Letter of Credits mature
prior to the Maturity of the Revolving Credit
Facility, and (iii) will bear a fee equal to
1.25%.
CONDITIONS
<PAGE> 3
PRECEDENT: As customary for facilities of this nature,
including but not limited to:
- No material adverse change in Borrower's
prospects or financial condition at any time
prior to closing.
- Receipt of documentation listing all material
assets belonging to the Borrower, and
describing all liens and all material
litigation.
- Receipt of satisfactory opinion from the
Borrower's counsel.
- Receipt of documents certifying that the
Borrower has the appropriate insurance coverage
and appropriate government authorizations
(permits, licenses, etc.), and is in compliance
with all government laws and regulations,
including those specifically relating to
environmental issues and to ERISA.
- Receipt of corporate resolutions and incumbency
certificates for the Borrowers, and
certifications as to the accuracy of all
representations and warranties and absence of
any event of default or situation, which, with
the passage of time, could constitute an event
of default.
- Receipt of reaffirmation of evidence confirming
that all relevant warehouses are bonded or
insured.
- Completion of satisfactory loan documentation
and approval by the Lenders' credit approval
authorities as to the final structure of the
transaction, when and as approved by United
Foods, Inc. Board of Directors. However, should
United Foods, Inc. desire to close this
transaction prior to "going-private", all terms
and conditions contained herein shall prevail
with the exception of the financial covenants.
Those financial covenants that are presently in
full force in the existing $18MM Revolving Loan
Agreement, shall replace those in this document
until such time as United Foods, Inc. goes
private. Should United Foods, Inc. "go private"
subsequent to the closing of this transaction,
the covenants contained herein shall govern
upon "going private", assuming Lenders' have
consented to the final structure of the Company
as approved by the Board of Directors of the
Borrower.
REPRESENTATIONS
AND WARRANTIES: As customary for facilities of this nature,
including but not limited to affirmations
concerning corporate existence, corporate and
governmental authorization, financial information,
compliance with laws, including environmental,
compliance with ERISA, no material litigation,
payment of taxes, full disclosure, ownership and
maintenance of assets, including permits, licenses,
patents and trademarks, validity of loan documents,
and no liens or indebtedness except as acceptable
to the Lenders and except those required in the
ordinary course of business.
COVENANTS: As customary for facilities of this nature,
including but not limited to requirements
concerning:
AFFIRMATIVE COVENANTS: - Maintenance of corporate existence, government
authorization (licenses, permits, etc.),
business conduct, property and insurance.
- Payment of taxes and compliance with laws.
- Maintenance of warehouse agreements and
collateral, right of inspection.
- Notice of defaults, adverse changes.
- Notice of covenant compliance immediately
preceding and immediately following any
acquisition.
FINANCIAL REPORTING: - Annual audited consolidated and reconciled
consolidating balance sheets and income
statements and statements of cash flows for the
Borrower due within 90 days of fiscal year-end
complete with confirming letter from accountant
and officer's compliance certificate.
<PAGE> 4
FINANCIAL REPORTING
(CONT'D): - Quarterly unaudited consolidated balance sheets
and income statements and statements of cash
flows as represented by the Borrower's 10-Q due
within 45 days of the first three fiscal
quarter-ends complete with officer's compliance
certificate.
- Preliminary annual unaudited consolidated and
reconciled consolidating balance sheets and
income statements and statements of cash flows
for the Borrower due within 45 days of fiscal
year end.
- Monthly consolidated financial statements for
the Borrower due within 20 days of each month
end.
- All other distributed material registered with
the SEC and distributed to the shareholders.
- Borrowing Base Certificate due within 15 days
of month end. The monthly balance of accounts
payable subject to PACA.
- Quarterly Certificate of compliance with all
financial covenants, due within 45 days of
Quarter end.
- Annual forecast to include balance sheet,
income statement and statement of cash flows in
reasonable detail satisfactory to the Lenders,
due within 90 days of fiscal year-end.
NEGATIVE COVENANTS: - Prohibitions on loans to management or
shareholders, or guarantees of loans to
management or shareholders in excess of a
cumulative $5,000,000.
- Prohibitions on any change in business.
- Prohibition against any change in the charter
documents or in fiscal year-end.
- Limitations on mergers, investments,
consolidations, transactions with affiliates,
and the sale of assets or collateral.
FINANCIAL COVENANTS:
- Working Capital Floor: Minimum $25,000,000.
Calculation:
Calculated annually, Current Assets minus
Current Liabilities.
- Tangible Net Worth: Minimum $27,500,000.
Calculation:
Calculated quarterly, $27,500,000 plus 50% of
Net Income or 50% of a Net Loss. The first
escalation would be for the quarter year
ending 2/28/99. Under no circumstances should
TNW fall below $27,500,000. Should the
Company not enter into the contemplated share
re-purchase, the TNW Minimum would be amended
to the $42,000,000 level. The adjustments for
net income or net losses as noted above would
continue to apply.
- Debt to Equity Ratio: Maximum 3.5:1.0.
Calculation:
Calculated annually, Total Liabilities
divided by Tangible Net Worth. Should the
company not enter into the contemplated share
re-purchase, the Debt to Equity Ratio would
return to 2.0:1.0.
<PAGE> 5
FINANCIAL COVENANTS (CONT'D):
- Interest Coverage Ratio: Minimum 1.2:1.0
Calculation:
Calculated annually, in the event that the
company has net losses of $3,000,000 or more.
Ratio is defined as Earnings before Interest,
Taxes, Depreciation and Amortization, divided
by Current Maturities of Long Term Debt plus
Interest Expense.
EVENTS OF DEFAULT: As customary for facilities of this nature,
including but not limited to requirements
concerning:
- Nonpayment of any principal or interest when
due.
- Nonpayment of any other obligations owed to the
Lenders within 10 days of the due date.
- Default by the Borrower under any other
agreements for funded debt with a principal
amount in excess of $500,000.
- Misleading, false or incomplete representations
or warranties.
- Breach or failure to observe or perform any
covenant or undertaking contained in the Credit
Agreement, subject to 30 day cure period.
- Any judgment in excess of $500,000 against the
Borrower not cured, waived or dismissed within
30 days.
- Any bankruptcy filing or other insolvency
proceeding of the Borrower.
- Occurrence of any liability, or reasonable
threat of such liability, under any employee
benefit plan which may have a material adverse
effect on the Borrower.
INDEMNIFICATION: The Lenders will be indemnified against all
losses, liabilities, claims, damages or
expenses relating to their loans, the
Borrower's use of the loan proceeds, or the
commitments including but not limited to
reasonable attorney's fees and settlement
costs.
GOVERNING LAW: State of Tennessee.
EXPENSES: The Borrower will pay all reasonable fees
and expenses of the Lenders and its counsel
associated with the negotiation,
documentation and syndication of this
Facility, plus out-of-pocket expenses of the
Administrative Agent incurred in connection
with amendments and, for each Lender,
incurred in connection with the preservation
or enforcement of rights.
EXPIRATION: This commitment shall expire on April 30,
1999, unless accepted below. If the
commitment is accepted, the closing must
occur before July 1, 1999, or the commitment
shall lapse. If prior to closing, but after
acceptance of this commitment, the Borrower
determines that it will not "go-private",
then the Borrower, shall have the right to
cancel this commitment.
We hereby accept the forgoing terms and conditions this 28th day of April, 1999
UNITED FOODS, INC.
By: /s/ Carl W. Gruenewald, II
-----------------------------------------
Title: Sr. Vice President - Finance Treasurer
--------------------------------------
<PAGE> 1
Exhibit 17(b)(2)
REPORT
OF THE
SPECIAL TRANSACTION COMMITTEE
OF THE
BOARD OF DIRECTORS
OF
UNITED FOODS, INC.
MAY 10, 1999
MEMBERS
John S. Wilder, Sr., Chairman
Dr. Joseph A. Geary
ADVISORS
Byron R. Trauger, Esq., Doramus, Trauger & Ney
Anne Sumpter Arney, Esq., Doramus, Trauger & Ney
J.C. Bradford & Co., L.L.C.
<PAGE> 2
TABLE OF CONTENTS
Report of the Special Transaction Committee
of the Board of Directors of United Foods, Inc.........................1
Form of Merger Agreement, draft of March 9, 1999............................2
Opinion, with Report, of J.C. Bradford & Co., L.L.C.,
dated January 20, 1999, to be updated as of May 10, 1999...............3
Minutes ....................................................................4
September 16, 1998...............................................(A)
September 21, 1998...............................................(B)
September 23, 1998...............................................(C)
September 25, 1998...............................................(D)
October 5, 1998..................................................(E)
October 14, 1998.................................................(F)
November 23, 1998................................................(G)
December 8, 1998.................................................(H)
December 14, 1998................................................(I)
December 21, 1998................................................(J)
December 29, 1998................................................(K)
January 20, 1999.................................................(L)
January 21, 1999.................................................(M)
January 22, 1999.................................................(N)
January 27, 1999.................................................(O)
February 4, 1999.................................................(P)
February 18, 1999................................................(Q)
March 5, 1999....................................................(R)
March 18, 1999...................................................(S)
April 5, 1999....................................................(T)
<PAGE> 3
REPORT OF THE
SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
May 10, 1999
The Special Transaction Committee (the "Committee") of the Board of
Directors of United Foods, Inc., a Delaware corporation (the "Company") met on
September 16, 1998, September 21, 1998, September 23, 1998, September 25, 1998,
October 5, 1998, October 14, 1998, November 23, 1998, December 8, 1998, December
14, 1998, December 21, 1998, December 29, 1998, January 20, 1999, January 21,
1999, January 22, 1999, January 27, 1999, February 4, 1999, February 18, 1999,
March 5, 1999, March 18, 1999, and April 5, 1999. At each meeting, the Committee
discussed the proposal (the "Proposed Transaction") by James I. Tankersley,
Chief Executive Officer of the Company, and his wife and children (the "Jim
Tankersley Group") to acquire all of the outstanding shares of the Company's
Class A and Class B Common Stock (collectively "Shares") and whether or not the
Proposed Transaction is fair to the disinterested minority shareholders (the
"Shareholders") in the Proposed Transaction. The Committee engaged Doramus,
Trauger & Ney as counsel to the Special Committee and J.C. Bradford & Co.,
L.L.C. as financial advisor to the Committee. The Committee, from September 1998
to March 1999, carried on extensive negotiations with the Jim Tankersley Group
and their counsel.
Based upon the information obtained by the Committee, including the
fact that the Jim Tankersley Group is unwilling to sell its shares in the
Company, and upon the advice of its financial advisor, together with the
financial advisor's Opinion, dated January 20, 1999, and as updated as of May
10, 1999, and upon full discussion and consideration of the Proposed
Transaction, the Committee concludes as follows:
1. The sale of the Shares is in the best interest of the
Shareholders;
2. The best price that can be negotiated by the Committee with
the Jim Tankersley Group is $3.50 per share.
3. The proposed purchase price of $3.50 per share is a fair price
for the Shares.
4. The terms of the Agreement and Plan of Merger on substantially
the terms of the draft of March 9, 1999, including, without
limitation, the nature of the parties representations,
warranties, covenants and agreements and the conditions and
obligations of PictSweet L.L.C. and UF Acquisition Corp. (the
"Agreement"), are reasonable.
5. The Proposed Transaction is fair to the Shareholders.
<PAGE> 4
6. The Committee recommends that the Board approve the Proposed
Transaction on the terms described in the Agreement including
a price per share of $3.50.
The Committee resolves that the Proposed Transaction is fair to the
Shareholders and recommends to the Board that they approve the Proposed
Transaction on the terms described in the Agreement including a price per share
of $3.50.
2
<PAGE> 5
Draft Date: March 9, 1999
4:42 PM
AGREEMENT AND PLAN OF MERGER
DATED AS OF
MARCH [___], 1999
AMONG
UNITED FOODS, INC.,
PICTSWEET LLC,
AND
UF ACQUISITION CORP.
<PAGE> 6
TABLE OF CONTENTS
<TABLE>
<S> <C>
ARTICLE 1--THE MERGER..............................................................................................1
Section 1.1 Company Actions..............................................................................1
Section 1.2 The Merger...................................................................................1
Section 1.3 Effective Time...............................................................................2
Section 1.4 Closing......................................................................................2
Section 1.5 Directors and Officers of Surviving Corporation..............................................2
Section 1.6 Certificate of Incorporation.................................................................2
Section 1.7 Bylaws.......................................................................................2
ARTICLE 2--CONVERSION OF SECURITIES................................................................................2
Section 2.1 Conversion of Capital Stock..................................................................2
(a) Purchaser Common Stock......................................................................2
(b) No Effect on Parent-Owned Stock.............................................................3
(c) Cancellation of Treasury Stock..............................................................3
(d) Conversion of Shares and Dissenting Shares..................................................3
Section 2.2 Surrender of Certificates....................................................................3
(a) Paying Agent................................................................................3
(b) Surrender Procedures........................................................................3
(c) Transfer Books; No Further Ownership Rights in the Shares...................................4
(d) Termination of Fund; No Liability...........................................................4
(e) Lost, Stolen or Destroyed Certificates......................................................4
Section 2.3 Dissenting Shares............................................................................5
Section 2.4. Withholding Taxes............................................................................5
ARTICLE 3--REPRESENTATIONS AND WARRANTIES OF COMPANY...............................................................5
Section 3.1 Corporate Existence and Power................................................................5
Section 3.2 Corporate Authorization......................................................................6
Section 3.3 Governmental Authorization...................................................................6
Section 3.4 Non-Contravention............................................................................6
Section 3.5 Capitalization...............................................................................6
Section 3.6 Company Subsidiaries and Other Equity Interests..............................................7
Section 3.7 Disclosure Documents.........................................................................7
ARTICLE 4--REPRESENTATIONS AND WARRANTIES OF PARENT AND PURCHASER..................................................8
Section 4.1 Corporate Existence and Power................................................................8
Section 4.2 Capitalization...............................................................................8
Section 4.3 Corporate Authorization......................................................................8
Section 4.4 Governmental Authorization...................................................................8
Section 4.5 Non-Contravention............................................................................8
Section 4.6 Disclosure Documents.........................................................................9
Section 4.7 Finders' and Bankers' Fees...................................................................9
</TABLE>
<PAGE> 7
<TABLE>
<S> <C>
Section 4.8 Solvency Matters.............................................................................9
Section 4.9 Litigation....................................................................................9
Section 4.10 Other Agreements............................................................................9
Section 4.11 No Resale...................................................................................9
ARTICLE 5--COVENANTS..............................................................................................10
Section 5.1 Interim Operations of Company...............................................................10
Section 5.2 Access to Information.......................................................................12
Section 5.3 Other Potential Bidders.....................................................................12
Section 5.4 Notices of Certain Events...................................................................12
Section 5.5 Voting of Shares............................................................................12
Section 5.6 Director and Officer Liability..............................................................13
Section 5.7 Best Efforts................................................................................13
Section 5.8 Certain Filings.............................................................................13
Section 5.9 Public Announcements........................................................................13
Section 5.10 Financing..................................................................................13
Section 5.11 Stockholders' Meeting......................................................................14
Section 5.12 Further Assurances.........................................................................15
Section 5.13 Resignations of Directors..................................................................15
ARTICLE 6--CONDITIONS TO THE MERGER...............................................................................15
Section 6.1 Conditions to the Obligations of Each Party.................................................15
Section 6.2 Additional Conditions to the Obligations of Parent and Purchaser............................16
Section 6.3 Additional Conditions to the Obligations of Company.........................................17
ARTICLE 7--TERMINATION............................................................................................18
Section 7.1 Termination.................................................................................18
Section 7.2 Effect of Termination.......................................................................19
ARTICLE 8 -- MISCELLANEOUS........................................................................................19
Section 8.1 Definitions.................................................................................19
"Affiliate".....................................................................................19
"Agreement".....................................................................................19
"Business Combinations Act".....................................................................19
"Certificate of Merger".........................................................................19
"Class A Common Stock"..........................................................................19
"Class B Common Stock"..........................................................................19
"Code"..........................................................................................19
"Company Common Stock"..........................................................................19
"DGCL"..........................................................................................19
"Exchange Act"..................................................................................20
"Expenses"......................................................................................20
"GAAP"..........................................................................................20
"Governmental Authority"........................................................................20
"Law"...........................................................................................20
</TABLE>
<PAGE> 8
<TABLE>
<S> <C>
"Lien"..........................................................................................20
"Material Adverse Effect".......................................................................20
"Order".........................................................................................20
"Permitted Financing Terms".....................................................................20
"Person"........................................................................................20
"Preferred Stock"...............................................................................20
"Purchaser Common Stock"........................................................................21
"SEC"...........................................................................................21
"Special Committee".............................................................................21
"Surviving Corporation".........................................................................21
"Jim Tankersley Family".........................................................................21
"Tankersley Group"..............................................................................21
Section 8.2 Notices.....................................................................................22
Section 8.3 Survival of Representations and Warranties..................................................23
Section 8.4 Enforcement of Agreement....................................................................23
Section 8.5 Amendments; Written Waivers...............................................................23
Section 8.6 Expenses....................................................................................24
Section 8.7 Successors and Assigns......................................................................24
Section 8.8 Governing Law...............................................................................24
Section 8.9 Severability................................................................................24
Section 8.10 Captions...................................................................................24
Section 8.11 Interpretations............................................................................24
Section 8.12 Counterparts; Effectiveness................................................................25
Section 8.13 Gender and Number..........................................................................25
</TABLE>
<PAGE> 9
AGREEMENT AND PLAN OF MERGER
THIS AGREEMENT AND PLAN OF MERGER (this "Agreement") is made as of
March [____] , 1999, by and among UNITED FOODS, INC., a Delaware corporation
("Company"), PICTSWEET LLC, a Delaware limited liability company ("Parent"), and
UF ACQUISITION CORP., a Delaware corporation and a wholly owned subsidiary of
Parent ("Purchaser").
RECITALS:
A. The Board of Directors of the Company has approved and deemed it fair,
advisable and in the best interests of the Company's Stockholders other than the
Jim Tankersley Family, Parent, Purchaser or any of their affiliates (the "Public
Stockholders") to adopt and approve this Agreement and the transactions
contemplated hereby, including the Merger (collectively, the "Transactions").
B. The Board of Directors of the Company has determined to recommend the
Agreement and the Transactions for approval and adoption by Company's
stockholders ("Stockholders") at a duly called meeting of the Stockholders.
C. The Board of Directors of Purchaser, and the Board of Directors of Parent,
have approved, and deem it fair, advisable and in the best interests of their
respective stockholders and members, to consummate the acquisition of Company by
Parent upon the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants, agreements,
representations and warranties contained herein, the parties hereto agree as
follows:
ARTICLE 1--THE MERGER
Section 1.1 Company Actions. The recommendation referred to in Recital
B may be withdrawn, modified or amended by the Board of Directors of Company if
the Board deems such withdrawal, modification or amendment necessary in light of
its fiduciary duties to Stockholders after consultation with counsel and the
Special Committee and its counsel.
Section 1.2 The Merger. Subject to the terms and conditions of this
Agreement, and in accordance with the DGCL, at the Effective Time, (a) Purchaser
shall be merged with and into Company (the "Merger") and the separate corporate
existence of Purchaser shall thereupon cease; and (b) Company shall be the
surviving corporation in the Merger (the "Surviving Corporation") and shall
continue to be governed by the laws of the State of Delaware. The Merger shall
have the effects specified in the DGCL and as provided herein. Without limiting
the foregoing, and subject thereto, at the Effective Time, all of the property,
rights, privileges, powers and franchises of Company and Purchaser shall vest in
Surviving Corporation, and all debts, liabilities, and duties of Company and
Purchaser shall become debts, liabilities and duties of Surviving Corporation.
1
<PAGE> 10
Section 1.3 Effective Time. Subject to the terms and conditions of this
Agreement, as soon as practicable after satisfaction or waiver of the conditions
set forth in Article 6, Parent, Purchaser and Company will cause a Certificate
of Merger to be executed and filed on the Closing Date (or on such other date as
Parent and Company may agree) with the Secretary of State of Delaware as
provided in the DGCL. The Merger shall become effective at the time when the
Certificate of Merger is duly filed with the Secretary of State of Delaware, or
such later time as is agreed upon by the parties and specified in the
Certificate of Merger (such time, the "Effective Time").
Section 1.4 Closing. The closing of the Merger (the "Closing") shall
take place at 10:00 a.m. on a date to be specified by the parties, which shall
be no later than the fifth business day after satisfaction or waiver of all of
the conditions set forth in Article 6 hereof (the "Closing Date"), at the
corporate offices of Company, unless another date or place is agreed to in
writing by the parties hereto.
Section 1.5 Directors and Officers of Surviving Corporation. The
directors and the officers of Company at the Effective Time shall, from and
after the Effective Time, be the directors and officers, respectively, of
Surviving Corporation, until their successors shall have been duly elected or
appointed or qualified or until their earlier death, resignation (including that
provided herein), or removal in accordance with applicable law, the Certificate
of Incorporation and the Bylaws of Company.
Section 1.6 Certificate of Incorporation. The Certificate of
Incorporation of Company in effect at the Effective Time shall be the
Certificate of Incorporation of Surviving Corporation, until amended, in
accordance with applicable law.
Section 1.7 Bylaws. The Bylaws of Company in effect at the Effective
Time shall be the Bylaws of Surviving Corporation, until amended, in accordance
with applicable law.
ARTICLE 2--CONVERSION OF SECURITIES
Section 2.1 Conversion of Capital Stock. At and as of the Effective
Time, by virtue of the Merger and without any action on the part of the holders
of any shares of Company Common Stock (including shares of Class A Common Stock
and Class B Common Stock, and any share of the Company's Class A Common Stock
issuable as a result of any conversion of Class B Common Stock into Class A
Common Stock, the "Shares") or holders of any shares of Purchaser Common Stock:
(a) Purchaser Common Stock. Each issued and outstanding share of
Purchaser Common Stock (including all Shares that are owned by Parent
("Parent-Owned Shares")) shall be converted into and become one fully
paid and non-assessable share of Class B Common Stock of Surviving
Corporation.
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(b) No Effect on Parent-Owned Stock. All Parent-Owned Shares shall
continue to remain issued and outstanding and shall not be converted
into the right to receive the Merger Consideration.
(c) Cancellation of Treasury Stock. All Shares that are owned by the
Company as treasury stock immediately prior to the Effective Time
("Treasury Shares") shall be canceled and retired and shall cease to
exist and no consideration shall be delivered in exchange therefor.
(d) Conversion of Shares and Dissenting Shares. Each issued and
outstanding Share (other than Parent-Owned Shares, the Treasury Shares,
and the Dissenting Shares) shall be converted into the right to receive
$3.50 in cash, payable by Surviving Corporation to the holder thereof,
without interest (the "Merger Consideration"), upon surrender of the
Certificate formerly representing such Share in the manner provided in
Section 2.2. Subject to and in accordance with Section 2.3, each issued
and outstanding Dissenting Share shall be converted into the right to
receive payment of the fair value of such Dissenting Share as
determined in accordance with the DGCL, from Surviving Corporation to
the holder thereof. From and after the Effective Time, all of such
Shares and Dissenting Shares shall no longer be outstanding and shall
automatically be canceled and retired and shall cease to exist in all
respects, and each holder of a Certificate formerly representing any
such Share or Dissenting Share shall cease to have any rights with
respect thereto, except for the rights to receive the foregoing
payments.
Section 2.2 Surrender of Certificates.
(a) Paying Agent. At or prior to the Effective Time, Parent shall
designate a bank reasonably acceptable to Company to act as agent for
the holders of the Shares in connection with the Merger (the "Paying
Agent"), and Parent shall, or Parent shall cause Surviving Corporation
to, make available to the Paying Agent funds sufficient in the
aggregate for the Paying Agent to make full payment of the Merger
Consideration to the holders of the Shares entitled to payment of the
Merger Consideration pursuant to Section 2.1(d). Such funds shall be
invested by the Paying Agent as directed by Parent or Surviving
Corporation, and interest thereon shall be paid to Surviving
Corporation.
(b) Surrender Procedures. As used herein, the term "Certificate" means
a stock certificate which immediately prior to the Effective Time
represented outstanding Shares. As soon as reasonably practicable after
the Effective Time, the Paying Agent shall mail to each holder of
record of a Certificate formerly representing Shares that were
converted pursuant to Section 2.1(d) into the right to receive the
Merger Consideration : (i) a letter of transmittal (which shall specify
that delivery shall be effected, and risk of loss and title to the
Certificates shall pass, only upon delivery of the Certificates to the
Paying Agent and shall be in such form and have such other provisions
as Parent and Company may reasonably specify), and (ii) instructions
for use in effecting the surrender of the Certificates in exchange for
payment of the Merger Consideration. Upon surrender of a Certificate
for cancellation to the Paying
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Agent, together with such letter of transmittal, duly executed, the
holder of such Certificate shall be entitled to receive in exchange
therefor the Merger Consideration for each Share formerly represented
by such Certificate and the Certificate so surrendered shall forthwith
be canceled. No interest will be paid or accrued to the holder of the
Certificate with respect to the cash payable upon the surrender of the
Certificate. If payment of the Merger Consideration is to be made to a
Person other than the Person in whose name the surrendered Certificate
is registered, it shall be a condition of payment that the Certificate
so surrendered shall be properly endorsed or shall be otherwise in
proper form for transfer and that the Person requesting such payment
shall have paid any transfer and other taxes required by reason of the
payment of the Merger Consideration to a Person other than the
registered holder of the Certificate surrendered or shall have
established to the satisfaction of Surviving Corporation that such tax
either has been paid or is not applicable. Until surrendered as
contemplated by this Section 2.2, each Certificate shall be deemed at
any time after the Effective Time to represent only the right to
receive the Merger Consideration in cash as contemplated by this
Section 2.2. The right of any Stockholder to receive the Merger
Consideration shall be subject to Section 2.4.
(c) Transfer Books; No Further Ownership Rights in the Shares. At the
Effective Time, the stock transfer books of Company shall be closed and
thereafter there shall be no further registration of transfers of the
Shares on the records of Company (except for those owned by Parent or
Purchaser). From and after the Effective Time, the holders of
Certificates evidencing ownership of the Shares (other than
Parent-Owned Shares) outstanding immediately prior to the Effective
Time shall cease to have any rights with respect to such Shares, except
as otherwise provided for herein or by applicable Law.
(d) Termination of Fund; No Liability. At any time following twelve
months after the Effective Time, Surviving Corporation shall be
entitled to require the Paying Agent to deliver to it any funds
(including any interest received with respect thereto) which had been
made available to the Paying Agent and which have not been disbursed to
holders of Certificates, and thereafter such holders shall be entitled
to look to Surviving Corporation (subject to abandoned property,
escheat or other similar Laws) only as general creditors thereof, with
respect to the Merger Consideration payable upon due surrender of their
Certificates, without any interest thereon. Notwithstanding the
foregoing, neither Surviving Corporation nor the Paying Agent shall be
liable to any holder of a Certificate for Merger Consideration
delivered to a public official pursuant to any applicable abandoned
property, escheat or similar Law. Subject to such Laws (i.e., the
Surviving Corporation shall be obligated to pay the Merger
consideration for particular Shares only once), even after the delivery
by the Paying Agent to the Surviving Corporation of any funds not
previously disbursed to Stockholders, the Surviving Corporation shall
continue to be obligated to pay the Merger Consideration to any
Stockholder surrendering a Share certificate, and the certificate shall
then be canceled.
(e) Lost, Stolen or Destroyed Certificates. In the event any
Certificate for Shares (other than Dissenting Shares and Parent-Owned
Shares) shall have been lost, stolen or destroyed, upon
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the making of an affidavit of that fact by the Person claiming such
Certificate to be lost, stolen or destroyed (in form and substance
satisfactory to Parent) and, if required by Parent, the posting by such
Person of a bond (in form, substance and amount satisfactory to Parent)
as indemnity against any claim that may be made against it with respect
to such Certificate, the Paying Agent will issue in exchange for such
lost, stolen or destroyed Certificate the Merger Consideration pursuant
to Section 2.2(b).
Section 2.3 Dissenting Shares. Notwithstanding any other provision of
this Agreement to the contrary, Shares held by a holder who has not voted such
Shares in favor of the Merger and with respect to which appraisal rights shall
have been exercised and perfected in accordance with Section 262 of the DGCL and
as of the Effective Time not withdrawn ("Dissenting Shares"), shall be converted
at and as of the Effective Time into the right to receive payment from Surviving
Corporation of the fair value of such Shares as determined in accordance with
Section 262 of the DGCL, unless and until the holder of such Shares withdraws
his demand for such appraisal or becomes ineligible for such appraisal (through
failure to perfect or otherwise), in which case, such right to receive payment
shall then be converted, as of the Effective Time, into the right to receive
payment from Surviving Corporation of the Merger Consideration for such Shares,
without interest. Any Dissenting Stockholder who has withdrawn his demand for
appraisal shall be treated in the same manner as a non-dissenting Stockholder
and have the same rights under Section 2.2 of this Agreement. Company shall give
Parent (i) prompt notice of any demands for appraisal of Shares received by
Company and (ii) the opportunity to participate in and direct all negotiations
and proceedings with respect to any such demands. Company shall not, without the
prior written consent of Parent, voluntarily make any payment with respect to,
settle or offer to settle, any such demands.
Section 2.4. Withholding Taxes. Surviving Corporation shall be entitled
to deduct and withhold from the consideration otherwise payable to a holder of
Shares pursuant to the Merger, such amounts as are required to be withheld under
the Code, or any applicable Laws or Orders. To the extent that amounts are so
withheld by Surviving Corporation, such withheld amounts shall be treated for
all purposes of this Agreement as having been paid to the holder of the Shares
in respect of which such deduction and withholding was made by Surviving
Corporation.
ARTICLE 3--REPRESENTATIONS AND WARRANTIES OF COMPANY
Company represents and warrants to Parent and Purchaser that:
Section 3.1 Corporate Existence and Power. Company is a corporation
duly incorporated, validly existing and in good standing under the Laws of the
state of its incorporation, and has the requisite corporate power and authority
necessary to own, operate and lease its properties and assets, and to carry on
its business as now being conducted. Company is duly qualified as a foreign
entity to do business, and is in good standing, in each jurisdiction where the
character of its properties owned, operated or leased, or the nature of its
activities, makes such qualification necessary except for any such failure
which, taken together with any other such failures, would not reasonably be
expected to have a Material Adverse Effect. A correct and complete copy of the
Certificate of
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Incorporation and the Bylaws of Company, each as amended through the date
hereof, have been made available by Company to Parent.
Section 3.2 Corporate Authorization. The execution, delivery and
performance by Company of this Agreement and the consummation by Company of the
Transactions: (i) are within Company's corporate powers, and (ii) except for the
Required Stockholder Approval, have been deemed advisable and have been duly
authorized by all necessary corporate action on behalf of Company. This
Agreement and the Transactions have been duly approved by the Board of Directors
of Company, and at least three-quarters of such Board consisted of continuing
directors (as defined in the Certificate of Incorporation of Company), and
accordingly the provisions of Article FOURTEENTH, Section A of the Certificate
of Incorporation of the Company are not applicable to this Agreement or the
Transactions. Company is not governed by, and this Agreement and the
Transactions are not subject to, the restrictions on business combinations set
forth in the Business Combinations Act. This Agreement constitutes a legal,
valid and binding obligation of Company, enforceable against it in accordance
with its terms, subject to the effect of bankruptcy, insolvency, reorganization
and other similar laws relating to creditors' rights generally and to general
principles of equity.
Section 3.3 Governmental Authorization. The execution, delivery and
performance by Company of this Agreement and the consummation of the
Transactions by Company require no action by or in respect of, or filing with,
any Governmental Authority other than (i) the filing of Certificate of Merger in
accordance with the DGCL, and (ii) compliance with applicable requirements of
the Exchange Act and of applicable state securities laws.
Section 3.4 Non-Contravention. The execution, delivery and performance
by Company of this Agreement and the consummation by Company of the Transactions
do not and will not (i) contravene or conflict with the Certificate of
Incorporation or Bylaws of Company, and (ii) assuming compliance with the
matters referred to in Section 3.3 and procurement of the Required Stockholder
Approval, contravene or conflict with or constitute a violation of any provision
of any Law or Order binding upon or applicable to Company or its respective
properties or assets, and (iii) except as set forth in EXHIBIT 3.4, do not
constitute a breach, violation or default of or under, or give rise to a right
to terminate or accelerate, or require a consent under, or create any lien,
encumbrance or restriction upon any assets or properties of Company pursuant to,
any document, instrument, certificate, agreement, or other arrangement, to which
Company is a party, or by which any of its respective properties or assets are
bound, which would reasonably be expected to have a Material Adverse Effect.
Section 3.5 Capitalization. The authorized capital stock of Company
consists of 18,000,000 authorized Shares of Company Common Stock (of which
12,000,000 are Class A Common Stock and 6,000,000 are Class B Common Stock), and
10,000,000 authorized shares of Preferred Stock. With respect to Company, (a)
2,617,243 Shares of Class A Common Stock were issued and outstanding as of
February 11, 1999, (b) 4,192,686 Shares of Class B Common Stock were issued and
outstanding as of February 11, 1999, (c) no Shares of Company Common Stock are
held in the
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treasury of Company, (d) no Shares of Company Common Stock are reserved for
future issuance pursuant to any stock options, stock incentive, or other stock
arrangements or plans , (e) no shares of Preferred Stock are issued and
outstanding, (f) no shares of Preferred Stock are held in the treasury of
Company, and (g) no shares of Preferred Stock are reserved for future issuance
pursuant to any stock options, stock incentive, or other stock arrangements or
plans. All outstanding Shares of Company Common Stock are duly authorized,
validly issued, fully paid and nonassessable. There are no bonds, debentures,
notes or other indebtedness having general voting rights (or convertible into
securities having such rights) ("Voting Debt") of Company outstanding. Except as
set forth above in this Section (and except for any Shares of Class B Common
Stock which may have been converted since February 11, 1999 into to an equal
number of Shares of Class A Common Stock in accordance with the Certificate of
Incorporation of the Company), there are (i) no shares of capital stock or other
voting securities of Company authorized, issued or outstanding, (ii) no existing
options, warrants, calls, preemptive rights, subscriptions or other rights,
agreements, arrangements or commitments of any character relating to the issued
or unissued capital stock of Company, or obligating Company to issue, transfer
or sell or cause to be issued, transferred or sold any shares of capital stock
or Voting Debt of, or other equity interest in, Company or securities
convertible into or exchangeable for such shares or equity interests, or
obligating Company to grant, extend or enter into any such option, warrant,
call, subscription or other right, agreement, arrangement or commitment, and
(iii) no outstanding contractual obligations of Company to repurchase, redeem or
otherwise acquire any Shares, or the capital stock of Company, or to provide
funds to make any investment (in the form of a loan, capital contribution or
otherwise) in any other Person.
Section 3.6 Company Subsidiaries and Other Equity Interests. Company
does not own any material equity interest in any corporation or other Person.
Section 3.7 Disclosure Documents.
(a) Each document required to be filed by Company with the SEC in
connection with the Transactions contemplated by this Agreement (the
"Company Disclosure Documents"), including, without limitation the
Proxy Statement, will, when filed, comply as to form in all material
respects with the applicable requirements of the Exchange Act.
(b) At the time the Proxy Statement or any amendment or supplement
thereto is first mailed to Stockholders, at the time such Stockholders
vote on adoption of this Agreement, and at the Effective Time, the
Proxy Statement, as supplemented or amended, if applicable, will not
contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein,
in the light of the circumstances under which they were made, not
misleading. At the time of the filing of any Company Disclosure
Document other than the Proxy Statement and at the time of any
distribution thereof, such Company Disclosure Document will not contain
any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements made therein, in the
light of the circumstances under which they were made, not misleading.
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(c) The representations and warranties contained in this Section 3.7
will not apply to statements or omissions included in any Company
Disclosure Documents (including, without limitation, the Proxy
Statement) based upon information furnished to Company by Parent or
Purchaser specifically for use therein.
ARTICLE 4--REPRESENTATIONS AND WARRANTIES OF PARENT AND PURCHASER
Parent and Purchaser, jointly and severally, represent and warrant to
Company that:
Section 4.1 Corporate Existence and Power. Parent is a limited
liability company, and Purchaser is a corporation, and each is duly organized,
validly existing and in good standing under the laws of the State of Delaware,
and each has all limited liability company or corporate powers and all
governmental licenses, authorizations, consents and approvals required to
consummate the transactions contemplated by this Agreement. Since the date of
its formation or incorporation, neither Parent nor Purchaser has engaged in any
activities other than in connection with or as contemplated by this Agreement.
Section 4.2 Capitalization. The authorized capital stock of Purchaser
consists of 10,000 shares of common stock, par value $1.00 per share, of which
one hundred (100) shares are outstanding as of the Effective Time and are owned,
beneficially and of record, by Parent. All of the issued and outstanding shares
of capital stock of Purchaser are validly issued, fully paid, non-assessable and
free of preemptive rights and all liens. All of the members' interests in Parent
are owned by the Jim Tankersley Family.
Section 4.3 Corporate Authorization. The execution, delivery and
performance by Parent and Purchaser of this Agreement and the consummation by
Parent and Purchaser of the Transactions contemplated hereby are within the
respective corporate (or limited liability company) powers of Parent and
Purchaser, and have been duly authorized respectively by all necessary corporate
(or limited liability company) action. This Agreement constitutes a legal, valid
and binding agreement of Parent and Purchaser, enforceable against each of them
in accordance with its terms.
Section 4.4 Governmental Authorization. The execution, delivery and
performance by Parent and Purchaser of this Agreement and the consummation by
Parent and Purchaser of the Transactions contemplated by this Agreement require
no action by or in respect of, or filing with, any Governmental Authority other
than (i) the filing of Certificate of Merger in accordance with the DGCL, and
(ii) compliance with any applicable requirements of the Exchange Act.
Section 4.5 Non-Contravention. The execution, delivery and performance
by Parent and Purchaser of this Agreement and the consummation by Parent and
Purchaser of the Transactions contemplated hereby do not and will not (i)
contravene or conflict with the respective certificates of formation,
certificates of incorporation, bylaws, operating agreements, or other
organizational documents of Parent or Purchaser, and (ii) assuming compliance
with the matters referred to in Section 4.3, contravene or conflict with or
constitute a violation of any provision of any Law or
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Order binding upon or applicable to Parent or Purchaser or any of their
respective properties or assets, and (iii) do not constitute a breach, violation
or default of or under, or give rise to a right to terminate or accelerate, or
require a consent under, or create any lien, encumbrance or restriction upon any
of the respective assets or properties of Parent or Purchaser pursuant to, any
document, instrument, certificate, agreement, or other arrangement, to which
Parent or Purchaser is a party, or by which any of their respective properties
or assets are bound.
Section 4.6 Disclosure Documents. The information with respect to
Parent, Purchaser and their Affiliates that is filed with the SEC or is
furnished to Company for use in any Company Disclosure Document will not contain
any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading (i) in the case of the
Proxy Statement at the time the Proxy Statement or any amendment or supplement
thereto is first mailed to Stockholders, at the time Stockholders vote on
adoption of this Agreement and at the Effective Time, and (ii) in the case of
any Company Disclosure Document other than the Proxy Statement, at the time of
the filing thereof and at the time of any distribution thereof.
Section 4.7 Finders' and Bankers' Fees. There is no investment banker,
broker, finder or other intermediary which has been retained by or is authorized
to act on behalf of Parent or Purchaser or their affiliates who might be
entitled to any fee or commission from Parent and/or Purchaser or their
affiliates in connection with the Transactions or the financing thereof.
Section 4.8 Solvency Matters. Upon consummation of the Transactions,
(i) the fair value of Surviving Corporation's assets will exceed Surviving
Corporation's stated liabilities and identified contingent liabilities, (ii)
Surviving Corporation will be able to pay its debts as they become absolute and
become due in the usual course of business, and (iii) the capital remaining in
Surviving Corporation after consummation of the Transactions will not be
unreasonably small for the business in which Surviving Corporation is engaged
and is proposed to be engaged following consummation of the Transactions.
Section 4.9 Litigation. Except as set forth on EXHIBIT 4.9, there are
no claims, actions, suits, proceedings or investigations pending or threatened,
against Parent or Purchaser or their affiliates, before any Governmental
Authority, that seek to prevent or delay the performance of this Agreement or
the Transaction.
Section 4.10 Other Agreements. Neither Parent nor Purchaser nor any of
their affiliates has any agreement or understanding with any other Stockholder
of Company regarding the payment of any consideration of any kind to or for the
benefit of any Stockholder in connection with the Transactions, except pursuant
to the terms of this Agreement.
Section 4.11 No Resale. Parent, Purchaser and their Affiliates are
acquiring the Shares without any intent to resell the Shares or to sell all or
substantially all of the assets of Surviving Corporation, and neither Parent,
Purchaser nor any Affiliate of Parent or Purchaser, has received an
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offer to purchase any or all of the Shares or all or substantially all of the
assets of Surviving Corporation. The members of the Jim Tankersley Family will
not sell their Shares to a third party prior to, or tender their Shares in, the
Transactions; rather, all of the Shares held by the Jim Tankersley Family will
be transferred to and held by Parent as of the Effective Date.
ARTICLE 5--COVENANTS
Section 5.1 Interim Operations of Company. From the date hereof until
the Effective Time, except as agreed to in writing by Parent, Company shall
conduct its business in the ordinary course consistent with past practice and
shall use all commercially reasonable efforts to preserve intact their business
organizations and relationships with third parties and to keep available the
services of their present officers and employees. Without limiting the
generality of the foregoing, from the date hereof until the Effective Time,
without the prior written consent of Parent:
(a) Company shall not, directly or indirectly, (i) issue, sell,
transfer or pledge or agree to sell, transfer or pledge any treasury
stock of Company or any capital stock or equity interests in any Person
owned by it; (ii) amend its Certificate of Incorporation or Bylaws or
similar organizational documents; or (iii) split, combine or reclassify
(except for the issuance of Class A Shares upon conversion of Class B
Shares in accordance with the Certificate of Incorporation) the
outstanding Shares or Preferred Stock;
(b) Company shall not: (i) declare, set aside or pay any dividend or
other distribution payable in cash, stock or property with respect to
its capital stock; (ii) issue, sell, pledge, dispose of or encumber any
additional shares of, or securities convertible into or exchangeable
for, or options, warrants, calls, commitments or rights of any kind to
acquire any shares of, capital stock of any class of Company (except
for issuance of Class A Shares resulting from conversions of Class B
Shares into Class A Shares in accordance with the Certificate of
Incorporation); (iii) transfer, lease, license, sell, mortgage, pledge,
dispose of, or encumber any assets other than in the ordinary and usual
course of business and consistent with past practice; (iv) except for
the Financing pursuant to the Permitted Financing Terms, incur or
modify any indebtedness or other liability, other than in the ordinary
and usual course of business and consistent with past practice; or (v)
redeem, purchase or otherwise acquire directly or indirectly any of its
capital stock;
(c) Company shall not, other than in the ordinary course of business:
(i) grant any increase in the compensation payable or to become payable
by Company to any of its executive officers; or (ii) adopt any new, or
amend or otherwise increase, or accelerate the payment or vesting of
the amounts payable or to become payable under, any existing bonus,
incentive compensation, deferred compensation, severance, profit
sharing, stock option, stock purchase, insurance, pension, retirement
or other employee benefit plan, agreement or arrangement; or (iii)
enter into any employment or severance agreement with or, except in
accordance with the existing written policies of Company, grant any
severance or termination pay to any officer, director or employee of
Company;
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(d) Company shall not permit any insurance policy naming it as a
beneficiary or a loss payable payee to be canceled or terminated
without notice to Parent, except in the ordinary course of business and
consistent with past practice;
(e) Company shall not enter into any contract or transaction relating
to the purchase of assets other than in the ordinary course of business
and consistent with prior practice;
(f) Company shall not, other than in the ordinary course of business:
(i) change any of the accounting methods used by it unless required by
GAAP; (ii) make any material tax election; (iii) change any material
tax election already made; (iv) adopt any material tax accounting
method; (v) change any material tax accounting method unless required
by GAAP; or (vi) enter into any closing agreement, settle any tax claim
or assessment or consent to any tax claim or assessment or any waiver
of the statute of limitations for any such claim or assessment;
(g) except for the Financing pursuant to the Permitted Financing Terms
and other than in the ordinary course of business, Company shall not:
(i) incur or assume any long-term debt; (ii) except in the ordinary
course of business and consistent with past practice, incur or assume
any short-term indebtedness; (iii) assume, guarantee, endorse or
otherwise become liable or responsible (whether directly, contingently
or otherwise) for the obligations of any other Person; (iv) make any
loans, advances or capital contributions to, or investment in, any
other Person (other than customary loans or advances to employees in
accordance with past practice); or (v) enter into any material
commitment or transaction (including, but not limited to, any
borrowing, capital expenditure or purchase, sale or lease of assets);
(h) Company shall not: (i) settle or compromise any material claim,
lawsuit, liability or obligation; or (ii) pay, discharge or satisfy any
claims, liabilities or obligations (absolute, accrued, asserted or
unasserted, contingent or otherwise), other than the payment, discharge
or satisfaction of any such claims, liabilities or obligation, (x) to
the extent reflected or reserved against in, or contemplated by, the
consolidated financial statements (or the notes thereto) of Company on
a consolidated basis, (y) incurred in the ordinary course of business
and consistent with past practice or (z) which are legally required to
be paid, discharged or satisfied;
(i) Company shall not take, or agree to commit to take, any action that
would make any representation or warranty of Company contained herein
inaccurate in any respect at, or as of any time prior to, the Effective
Time; and
(j) Company shall not enter into an agreement, contract, commitment or
arrangement to do any of the foregoing, or to authorize, recommend,
propose or announce an intention to do any of the foregoing.
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Section 5.2 Access to Information. From the date hereof until the
Effective Time, Company will give Parent and Purchaser, and their respective
counsel, financial advisors, prospective lenders, auditors and other authorized
representatives (pursuant to appropriate confidentiality agreements) full access
to the offices, properties, books and records of Company, will furnish to Parent
and Purchaser and their respective counsel, financial advisors, prospective
lenders, auditors and other authorized representatives such financial and
operating data and other information as such Persons may reasonably request and
will instruct Company's employees, counsel, financial advisors and auditors to
cooperate with Parent and Purchaser in their investigation of the business of
Company.
Section 5.3 Other Potential Bidders. Company shall, directly or
indirectly, furnish information and access, in each case in response to
unsolicited requests therefor, received prior to or after the date of this
Agreement, to the same extent permitted by Section 5.2 hereof, to any Person
pursuant to appropriate confidentiality agreements, and may participate in
discussions and negotiate with any such Person concerning any merger, sale of
assets, sale of shares of capital stock or similar transaction involving Company
or any division of Company (any such transaction being referred to herein as a
"Competing Transaction"), only if the Special Committee determines, after
consultation with counsel and its independent financial advisor, that such
action is necessary in light of the fiduciary duties of the Board of Directors
to the Public Stockholders. In the event a potential Competing Transaction
exists, Company shall direct its officers and other appropriate personnel to
cooperate with and be reasonably available to consult with any such Person.
Except as set forth above, Company shall not solicit, participate in or initiate
discussions or negotiations with, or provide any information to, any Person
(other than Parent or Purchaser) concerning any merger, sale of assets, sale of
shares of capital stock or similar transaction involving Company.
Section 5.4 Notices of Certain Events. Each party shall promptly notify
the other parties of:
(a) any notice or other communication received by such party from any
Person alleging that the consent of such Person is or may be required
in connection with the Transactions;
(b) any occurrence or non-occurrence of any event that would cause any
representation or warranty of such party contained in this Agreement to
be untrue or inaccurate in any material respect at or prior to the
Effective Time;
(c) any material failure of such party to comply with or satisfy any
covenant, condition or agreement to be complied with or satisfied by it
hereunder; and
(d) any notice or other communication from any Governmental Authority
in connection with the Transactions; provided, however, that the
delivery of any notice pursuant to this Section 5.4 shall not limit or
otherwise affect the remedies available hereunder to the party
receiving such notice.
Section 5.5 Voting of Shares. In any vote of Stockholders with respect
to this Agreement
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and the Transactions, Parent and Purchaser shall vote or cause to be voted all
of the shares of Company Common Stock beneficially owned by each such party in
favor of the approval and adoption of this Agreement and the Transactions.
Section 5.6 Director and Officer Liability. For six (6) years, or for
the period provided for in the applicable statute of limitations, whichever is
longer, from and after the Effective Time, Parent will or will cause Surviving
Corporation to indemnify and hold harmless the present and former officers and
directors of Company ("Indemnified Persons") in respect of acts or omissions
occurring at or prior to the Effective Time to the fullest extent provided under
the DGCL or under Company's Certificate of Incorporation and Bylaws in effect on
the date hereof. Notwithstanding any provision herein to the contrary, the
covenants contained in this Section 5.6 shall survive the Effective Time and the
consummation of the Transactions, are intended to benefit the Indemnified
Persons, and shall be binding on all successors and assigns of Parent and
Surviving Corporation.
Section 5.7 Best Efforts. Subject to the terms and conditions of this
Agreement, each party will use its reasonable best efforts to take, or cause to
be taken, all actions and to do, or cause to be done, all things necessary,
proper or advisable under applicable Laws to consummate the Transactions
contemplated by this Agreement.
Section 5.8 Certain Filings. Company, Parent and Purchaser shall
cooperate with each other (a) in connection with the preparation of Company
Disclosure Documents, (b) in determining whether any action by or in respect of,
or filing with, any Governmental Authority is required, or any actions,
consents, approvals or waivers are required to be obtained from parties to any
material contracts, in connection with the consummation of the transactions
contemplated by this Agreement, and (c) in seeking any such actions, consents,
approvals or waivers or making any such filings, furnishing information required
in connection therewith or with Company Disclosure Documents and seeking timely
to obtain any such actions, consents, approvals or waivers.
Section 5.9 Public Announcements. Parent and Company will consult with
each other before issuing any press release or making any public statement with
respect to this Agreement or the Transactions and, except as may be required by
applicable Law or any listing agreement with any national securities exchange,
will not issue any such press release or make any such public statement prior to
such consultation.
Section 5.10 Financing
(a) Parent shall use its best efforts to obtain all financing that is
necessary or desirable both to consummate the Transactions and to fund
the working capital needs of Surviving Corporation after the Closing
(the "Financing"), on terms and conditions substantially in accordance
with the Permitted Financing Terms.
(b) Company shall use its reasonable best efforts to provide assistance
to Parent and Purchaser in obtaining the Financing in accordance with
the Permitted Financing Terms.
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(c) Parent and Purchaser shall deliver to the Special Committee and
Company within fifteen (15) days of the date of this Agreement copies
of a written commitment for the Financing on terms substantially in
accordance with the Permitted Financing Terms.
(d) The funds provided by the written commitment(s) delivered by Parent
and Purchaser pursuant to subparagraph (c) above will be sufficient to
complete the Transactions contemplated hereby. Parent and Purchaser
shall use their best efforts to close the financing reflected in any
such written commitment(s). Any material change in the commitment(s) so
delivered or any new commitment(s) delivered must be approved by the
Special Committee, Company and Parent, which approval will not be
unreasonably withheld by any party.
Section 5.11 Stockholders' Meeting. In accordance with applicable Law:
(a) Company shall duly call, give notice of, convene and hold a special
meeting of Stockholders (the "Special Meeting") as soon as reasonably
practicable for the purpose of considering and voting upon the approval
and adoption of this Agreement and the Transactions, and comply with
all legal requirements applicable to such meeting, in order to procure
the Required Stockholder Approval;
(b) Company shall in connection with such meeting, promptly prepare and
file (in consultation with Parent) with the SEC a preliminary proxy or
information statement, and a Schedule 13E-3 Transaction Statement
required pursuant to Section 13(e) of the Exchange Act (a "Schedule
13E-3"), relating to the Transactions and this Agreement and use its
reasonable best efforts (x) to obtain and furnish the information
required to be included by the SEC in such preliminary proxy statement
and Schedule 13E-3 and, after consultation with Parent, the Special
Committee, and their respective counsel, to respond promptly to any
comments made by the SEC with respect to the preliminary proxy or
Schedule 13E-3 and cause a definitive proxy or information statement,
including any amendment or supplement thereto (the "Proxy Statement")
to be mailed to Stockholders, provided that no material amendment or
supplement to either the Proxy Statement or Schedule 13E-3 will be made
by Company without consultation with Parent, the Special Committee, and
their respective counsel, and (y) to obtain the necessary approvals of
the Transactions and this Agreement by Stockholders;
(c) Company shall include in the Proxy Statement the recommendation of
the Board of Directors of Company that Stockholders vote in favor of
the approval and the adoption of this Agreement and the transactions;
and
(d) Parent and Purchaser shall, in connection with such meeting,
promptly prepare and file (in consultation with Company) with the SEC a
Schedule 13E-3 relating to the Transactions and this Agreement and use
its reasonable best efforts (x) to obtain and furnish the information
required to be included by the SEC in such Schedule 13E-3 and, after
consultation with Company, the Special Committee, and their respective
counsel, to respond
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promptly to any comments made by the SEC with respect to the Schedule
13E-3, provided that no material amendment or supplement to the
Schedule 13E-3 will be made by Parent or Purchaser without consultation
with Company, the Special Committee, and their respective counsel, and
(y) to obtain the necessary approvals of the Transactions and this
Agreement by the Jim Tankersley Family;
Section 5.12 Further Assurances. At and after the Effective Time, the
officers and directors of Surviving Corporation will be authorized to execute
and deliver, in the name and on behalf of Company or Purchaser, any deeds, bills
of sale, assignments or assurances and to take and do, in the name and on behalf
of Company or Purchaser, any other actions and things they may deem desirable to
vest, perfect or confirm of record or otherwise in Surviving Corporation any and
all right, title and interest in, to and under any of the rights, properties or
assets of Company acquired or to be acquired by Surviving Corporation as a
result of, or in connection with, the Merger.
Section 5.13 Resignations of Directors. Each director of Company
personally agrees to promptly execute and deliver to Parent, at Parent's
request, his resignation as a director of Surviving Corporation as provided
herein.
ARTICLE 6--CONDITIONS TO THE MERGER
Section 6.1 Conditions to the Obligations of Each Party. The
obligations of Company, Parent and Purchaser to consummate the Merger are
subject to the satisfaction at or prior to the Effective Time of the following
conditions, any or all of which may be waived, in whole or in part, by each of
the parties intended to benefit therefrom, to the extent permitted by applicable
Law:
(a) this Agreement and the Transactions shall have been approved and
adopted at the Special Meeting by (i) a majority of all votes of the
outstanding Shares of Company Common Stock entitled to vote thereon,
such votes determined in accordance with Article FOURTH, Section C(2)
of the Certificate of Incorporation of Company and Section 251(c) of
the DGCL, and (ii) a majority of all Shares of Company Common Stock
entitled to vote thereon which are actually voted either "for" or
"against" such approval and adoption (in item (ii), (x) excluding from
such computation all Shares held by any of the Jim Tankersley Family or
Parent and (y) counting each Share actually voted as one full vote,
regardless of class) (the foregoing two approvals being collectively
referred to herein as the "Required Stockholder Approval");
(b) there are no claims, actions, suits, proceedings or investigations
pending or threatened, against Company, Parent or Purchaser, before any
Governmental Authority, that seek to prevent or delay the performance
of this Agreement or the Transactions, or that would result in a
Material Adverse Effect, and no Governmental Authority shall have
enacted, issued, promulgated, enforced or entered any Law or Order
(whether temporary, preliminary or permanent) which is in effect and
which has the effect of making the Transactions illegal or otherwise
prohibiting consummation of the Transactions;
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(c) all actions by or in respect of, or filings with, any Governmental
Authority required to permit the consummation of the Transactions shall
have been made or obtained;
(d) at the time of mailing of the Proxy Statement, at the time of the
Special Meeting, and at the Effective Time, J.C. Bradford & Co. (i)
shall have delivered and reaffirmed in writing (to the Special
Committee and the Board of Directors of Company, with a copy to Parent)
its opinion, originally dated as of March [____], 1999, to the effect
that the consideration to be received by the Public Stockholders
pursuant to the Merger is fair to such Stockholders from a financial
point of view, and (ii) shall not have withdrawn such opinion;
(e) Parent or Purchaser shall have received and caused the Financing to
be closed in accordance with the Permitted Financing Terms, and the
proceeds of the Financing shall have been made available for the
consummation of the Transactions;
(f) Parent shall have received all documents it may reasonably request
relating to the existence of Company and the authority of Company to
enter into this Agreement, all in form and substance reasonably
satisfactory to Parent; and
(g) Parent and Company shall have received or be satisfied that each of
them will receive all consents, amendments and approvals contemplated
by Sections 3.3 and 3.4, and any other consents of third parties
necessary in connection with the consummation of the Merger, if failure
to obtain any such consent would have a Material Adverse Effect or
violate any Law or Order, and Parent shall have received a certificate
signed by an executive officer of Company certifying as to Company's
receipt of and satisfaction with the items referred to in this
subsection (g).
Section 6.2 Additional Conditions to the Obligations of Parent and
Purchaser. The obligations of Parent and Purchaser to consummate the Merger are
also subject to the satisfaction, at or prior to the time of obtaining the
Required Stockholder Approval, of the following further conditions, any or all
of which may be waived, in whole or in part, by each of the parties intended to
benefit therefrom, to the extent permitted by applicable Law:
(a) the number of Dissenting Shares shall not equal or exceed 250,000
Shares;
(b) Company shall have performed in all material respects all of its
obligations hereunder required to be performed by it at or prior to
such time, the representations and warranties of Company contained in
this Agreement and in any certificate delivered by Company pursuant
hereto shall be true and correct in all material respects, at and as of
such time as if made at and as of such time, except that those
representations and warranties which address matters only as of a
particular date shall remain true and correct as of such date, and
Parent shall have received a certificate signed by an executive officer
of Company (who may be the principal financial officer) to the effect
of all of the foregoing matters in this subsection (b) and by the
principal financial officer of Company to the effect of the matters in
the exception clause of this subsection (b);
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(c) no Material Adverse Effect shall have occurred or shall be pending;
(d) no reasonable basis (including, but not limited to, information
from a customer(s) or information available from public or reliable
industry sources) exists for Company, Purchaser or Parent to believe
that any significant customer(s) for products sold by either division
of Company, representing individually ten percent (10%) or more (or
representing one of the top three customers [measured by gross sales of
that division during the fiscal year ending February 28, 1999 ("fiscal
1998")]), or in the aggregate representing twenty-five percent (25%) or
more, of the gross sales of that division during fiscal 1998, will
reduce its annual purchases from Company after consummation of the
Transactions to a level less than eighty percent (80%) of the amount it
purchased from Company during fiscal 1998 (provided, however, that such
reasonable basis must be materially different from the state of facts
known to Parent and Purchaser at the date of execution of this
Agreement;
(e) Parent shall have received a certificate signed by an executive
officer of Company, certifying the foregoing items (a) and (c);
(f) all of the directors of Company shall have delivered to Parent in
writing their resignations as directors of Surviving Corporation, in
form attached hereto as EXHIBIT 6.2(g), with such resignations to
become effective immediately at 12:01 A.M. of the day next after the
Closing Date of the Merger;
(g) all actions to be taken by Company in connection with consummation
of the Transactions, and all certificates, instruments, and other
documents required to effectuate the Transactions, shall be reasonably
satisfactory in form and substance to Parent and Purchaser; and
(h) The fees to be paid J.C. Bradford & Co. by Company shall not exceed
$185,000.00 plus (i) out-of-pocket expenses and (ii) legal fees not to
exceed $10,000.00, for its services rendered to the Special Committee.
Section 6.3 Additional Conditions to the Obligations of Company. The
obligations of Company to consummate the Merger are also subject to the
satisfaction at or prior to the Effective Time of the following further
conditions, any or all of which may be waived, in whole or in part, by Company
to the extent permitted by applicable Law:
(a) Parent and Purchaser shall have performed in all material respects
all of their respective obligations hereunder required to be performed
by them at or prior to the Effective Time, the representations and
warranties of Parent and Purchaser contained in this Agreement and in
any certificate delivered by Parent or Purchaser pursuant hereto shall
be true and correct in all material respects at and as of the Effective
Time as if made at and as of such time, except
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that those representations and warranties which address matters only as
of a particular date shall remain true and correct as of such date, and
Company shall have received a certificate signed by the President or
any Vice President of each of Parent and Purchaser to the foregoing
effect;
(b) Company shall have received all documents it may reasonably request
relating to the existence of Parent or Purchaser and the authority of
Parent or Purchaser to enter into this Agreement, all in form and
substance reasonably satisfactory to Company; and
(c) all actions to be taken by Parent or Purchaser in connection with
consummation of the Transactions, and all certificates, instruments,
and other documents required to effectuate the Transactions, shall be
satisfactory in form and substance to Company.
ARTICLE 7--TERMINATION
Section 7.1 Termination. This Agreement may be terminated and the
Transactions may be abandoned at any time prior to the Effective Time
(notwithstanding any adoption and approval of this Agreement by Stockholders):
(a) by mutual written consent of Company and Parent;
(b) by either Parent or Company, if the Merger has not been consummated
by June 30, 1999; provided, however, that the right to terminate this
Agreement under this Section 7.1(b) shall not be available to any party
whose failure to fulfill any obligation under this Agreement has been
the cause of, or resulted in, the failure of the Effective Time to
occur on or before such date;
(c) by either Parent or Company, if there shall be any Law that makes
consummation of the Transactions illegal or otherwise prohibited or if
any Order enjoining Parent or Company from consummating the
Transactions is entered and such Order shall become final and
nonappealable;
(d) by either Parent or Company if this Agreement and the Transactions
shall fail to be approved and adopted by the Required Stockholder
Approval at the Special Meeting called for such purpose, as set forth
in Section 6.1(a) above;
(e) by either Parent or Company, if, consistent with the terms of this
Agreement, the Board of Directors of Company withdraws, modifies or
changes its recommendation of this Agreement or the Transactions in a
manner adverse to Parent or Purchaser or shall have resolved to do any
of the foregoing or the Board of Directors of Company shall have
recommended to Stockholders of Company any Competing Transaction or
resolved to do so; or
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(f) by Company, if Parent and Purchaser have not delivered to Company
within fifteen (15) days of the date of this Agreement copies of a
written commitment(s) from a lending institution(s) (which institution
the Company determines to be acceptable to it), pursuant to which
Financing will be received on terms substantially in accordance with
the Permitted Financing Terms.
Section 7.2 Effect of Termination. If this Agreement is terminated
pursuant to Section 7.1, this Agreement shall become void and of no effect with
no liability on the part of any party hereto, except that the agreements
contained in Section 8.6 shall survive the termination hereof; provided,
however, that, except as specifically provided herein, nothing herein shall
relieve any party hereto of liability for any breach of this Agreement.
ARTICLE 8 -- MISCELLANEOUS
Section 8.1 Definitions. As used herein, the following terms have the
following respective meanings (such meanings to be equally applicable to both
the singular and plural forms of the terms defined):
"Affiliate" means, with respect to a Person, any other Person that,
directly or indirectly through one or more intermediaries, controls, or
is controlled by, or is under common control with, such given Person.
"Agreement" means this Agreement and Plan of Merger, as the same may be
supplemented, modified or amended from time to time.
"Business Combinations Act" means Section 203 of the DGCL, as amended.
"Certificate of Merger" means a certificate of merger with respect to
the Merger, in compliance with the DGCL.
"Class A Common Stock" means the Class A common stock, $1.00 par value
per share, of Company
"Class B Common Stock" means the Class B common stock, $1.00 par value
per share, of Company.
"Code" means the Internal Revenue Code of 1986, as amended.
"Company Common Stock" means the common stock, $1.00 par value per
share, of Company, including both Class A Common Stock and Class B
Common Stock.
"DGCL" means the Delaware General Corporation Law, as amended.
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"Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.
"Expenses" means all reasonable out-of-pocket expenses (including,
without limitation, all fees and expenses of counsel, accountants,
investment bankers, experts and consultants and commitment fees and
other financing fees and expenses) incurred by Parent, Purchaser or
Company or on behalf of any such party in connection with or related to
the authorization, preparation, negotiation, execution and performance
of this Agreement, the preparation, printing, filing and mailing of the
Proxy Statement and Schedule 13E-3, the solicitation of the shareholder
approvals and all other matters related to the consummation of the
transactions contemplated hereby.
"GAAP" means United States generally accepted accounting principles
consistently applied.
"Governmental Authority" means any federal, state, county, local,
foreign or other governmental or public agency, instrumentality,
commission, authority, board or body, and any court, arbitrator,
mediator or tribunal.
"Law" means any code, law, ordinance, regulation, rule or statute of
any Governmental Authority.
"Lien" means any security interest, lien, mortgage, deed to secure
debt, deed of trust, pledge, charge, conditional sale or other title
retention agreement, or other encumbrance of any kind.
"Material Adverse Effect" means any matter that would reasonably be
expected to affect materially and adversely the business, condition
(financial or otherwise), prospects, or results of operations of
Company considered as a whole (excluding, however, any matter that is
the result of any action of any member of the Jim Tankersley Family
which could reasonably be construed as intended to provide a basis for
termination of the Transactions or of this Agreement).
"Order" means any administrative decision or award, decree, injunction,
judgment, order, quasi-judicial decision or award, ruling, or writ of
any federal, state, local or foreign or other court, arbitrator,
mediator, tribunal, administrative agency or other Governmental
Authority.
"Permitted Financing Terms" means the obtaining of Financing by Company
upon the general terms and conditions set forth in EXHIBIT 8.1 hereto.
"Person" means an individual, a corporation, a partnership, an
association, a trust, a limited liability company or any other entity
or organization, including a government or political subdivision or any
agency or instrumentality thereof.
"Preferred Stock" means the preferred stock, $1.00 par value per share,
of Company.
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"Purchaser Common Stock" means the common stock, $1.00 par value per
share, of Purchaser.
"SEC" means the Securities and Exchange Commission.
"Special Committee" means the committee of the Board of Directors
appointed on September 16, 1998 and comprised entirely of directors who
are neither members of management of Company nor affiliated with the
Tankersley Group, Parent or Purchaser or any Affiliate thereof.
"Surviving Corporation" means Company as surviving corporation
resulting from the Merger.
"Jim Tankersley Family" means James I. Tankersley, Edna W. Tankersley,
Darla T. Darnall, Kelle T. Northern and James W. Tankersley.
"Tankersley Group" means James I. Tankersley, Edna W. Tankersley, Darla
T. Darnall, Kelle T. Northern, James W. Tankersley, Julia T. Wells and
Daniel B. Tankersley.
The following terms are defined in the following Sections of this Agreement:
TERM SECTION
---- -------
"Certificate" 2.2(b)
"Closing" 1.4
"Closing Date" 1.4
"Company" Opening Paragraph
"Company Disclosure Documents" 3.7
"Competing Transaction" 5.3
"Dissenting Shares" 2.3
"Effective Time" 1.3
"Financing" 5.10(a)
"Merger" 1.2
"Merger Consideration" 2.1(d)
"Parent" Opening Paragraph
"Parent-Owned Shares" 2.1(a)
"Paying Agent" 2.2(a)
"Proxy Statement" 5.11(b)
"Purchaser" Opening Paragraph
"Public Stockholders" Recitals
"Required Stockholder Approval" 6.1(a)
"Schedule 13E-3" 5.11(b)
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"Shares" 2.1
"Stockholders" Recitals
"Special Meeting" 5.11(a)
"Surviving Corporation" 1.2
"Transactions" Recitals
"Voting Debt" 3.5
Section 8.2 Notices. Unless otherwise specifically provided herein, all
notices, demands or other communications to be given or delivered under or by
reason of the provisions of this Agreement shall be in writing and shall be
deemed to have been given (a) when delivered personally to the recipient, (b)
when sent to the recipient by telecopy (receipt electronically confirmed by
sender's telecopy machine) if during normal business hours of the recipient,
otherwise on the next business day, (c) one business day after the date when
sent to the recipient by reputable express courier service (charges prepaid), or
(d) seven business days after the date when mailed to the recipient by certified
or registered mail, return receipt requested and postage prepaid. Such notices,
demands and other communications shall be sent to the parties at the following
addresses (or at such other address for a party as shall be specified by like
notice):
If to Company:
United Foods, Inc.
Ten Pictsweet Drive
Bells, Tennessee 38006-0119
Attn: B.M. Ennis, President
Telephone: (901) 422-7600
Telecopy: (800) 561-8810
With a copy (which shall not constitute notice) to:
Bass, Berry & Sims PLC
2700 First American Center
Nashville, Tennessee 37238-2700
Attn: James H. Cheek, III
Telephone: (615) 742-6200
Telecopy: (615) 742-6293
If to Parent or Purchaser:
Pictsweet LLC
Ten Pictsweet Drive
Bells, Tennessee 38006-0119
Attn: James I. Tankersley
Telephone: (901) 422-7600
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Telecopy: (800) 561-8810
With a copy (which shall not constitute notice) to:
Sam D. Chafetz
Waring Cox, PLC
50 North Front Street
Suite 1300
Memphis, Tennessee 38103-1190
Telephone: (901) 543-8000
Telecopy: (901) 543-8036
Section 8.3 Survival of Representations and Warranties. The
representations and warranties contained herein and in any certificate delivered
pursuant hereto shall not survive the Effective Time or the termination of this
Agreement; provided, however, (i) that nothing in this Section 8.3 shall relieve
any party from any liability for any breach of any representation, warranty or
agreement in this Agreement occurring prior to termination, (ii) the agreements
contained in Article 2, in Section 5.6, and in this Section 8.3 hereof shall
survive the Effective Time indefinitely, and (iii) the agreements set forth in
Section 8.6 hereof shall survive termination indefinitely.
Section 8.4 Enforcement of Agreement. Until the Effective Time, the
Special Committee shall continue in existence and shall have the right to cause
Company to take any action necessary or appropriate to enforce the rights of
Company and the obligations of Parent and Purchaser under this Agreement.
Section 8.5 Amendments; Written Waivers.
(a) Any provision of this Agreement may be amended or waived prior to
the Effective Time if, and only if, such amendment or waiver is in
writing and signed by all parties hereto, or in the case of a waiver,
by the party against whom the waiver is to be effective; provided that
any such amendment and any such waiver by Company shall have been
approved by the Board of Directors of Company, acting on the
recommendation of the Special Committee; and provided, further, that
after obtaining the adoption and approval of this Agreement by the
Required Stockholder Approval, no such amendment or waiver shall,
without further approval in the form of the Required Stockholder
Approval, alter or change (i) the amount or kind of consideration to be
received in exchange for any shares of capital stock of Company or (ii)
any of the terms or conditions of this Agreement if such alteration or
change would adversely affect the Public Stockholders.
(b) No failure or delay by any party in exercising any right, power or
privilege hereunder shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or
privilege. The rights and remedies herein provided shall be cumulative
and not exclusive of any rights or remedies provided by law.
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Section 8.6 Expenses. All reasonable Expenses incurred by all parties
in connection with this Agreement and the consummation of the Transactions shall
be paid by Company if the Merger is consummated. If the Merger is not
consummated, Company shall likewise pay all reasonable Expenses incurred by all
parties in connection with this Agreement or the Transactions; provided,
however, that Company may refuse to pay any expenses incurred by Parent or
Purchaser if the failure to consummate the Merger arose from (i) a breach of the
terms hereof by either Parent or Purchaser, (ii) a failure to obtain the
Required Stockholder Approval or (iii) the number of Dissenting Shares equals or
exceeds 250,000 Shares.
Section 8.7 Successors and Assigns. The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, provided that no party may assign, delegate
or otherwise transfer any of its rights or obligations under this Agreement
without the consent of the other parties hereto except that Parent may transfer
or assign, in whole or from time to time in part, to one or more of its
Affiliates, its rights under this Agreement, but any such transfer or assignment
will not relieve Parent of its obligations under this Agreement or prejudice the
rights of Stockholders to receive the Merger Consideration for Shares properly
surrendered in accordance with Section 2.2. This Agreement shall not be
construed so as to confer any right or benefit upon any Person other than the
parties to this Agreement, and their respective successors and assigns.
Section 8.8 Governing Law. Regardless of the place or places where this
Agreement may be executed, delivered or consummated, this Agreement shall be
governed by and construed in accordance with the Laws of the State of Delaware,
without regard to any applicable conflicts of Laws.
Section 8.9 Severability. Any term or provision of this Agreement which
is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction,
be ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction. If any provision of this
Agreement is so broad as to be unenforceable, the provision shall be interpreted
to be only so broad as is enforceable.
Section 8.10 Captions. The captions contained in this Agreement are for
reference purposes only and are not part of this Agreement.
Section 8.11 Interpretations. Neither this Agreement nor any
uncertainty or ambiguity herein shall be construed or resolved against any
party, whether under any rule of construction or otherwise. No party to this
Agreement shall be considered the draftsman. The parties acknowledge and agree
that this Agreement has been reviewed, negotiated and accepted by all parties
and their attorneys, as well as the Special Committee and its counsel, and shall
be construed and interpreted according to the ordinary meaning of the words used
so as fairly to accomplish the purposes and intentions of all
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parties hereto. References to Sections herein shall mean Sections of this
Agreement unless otherwise indicated.
Section 8.12 Counterparts; Effectiveness. This Agreement may be signed
in any number of counterparts, each of which shall be an original, with the same
effect as if the signatures were upon the same instrument. This Agreement shall
become effective when each party hereto shall have received counterparts hereof
signed by all of the other parties hereto.
Section 8.13 Gender and Number. As herein, words of any gender shall
include all other genders, and words in the singular shall include the plural,
and vice versa, unless the context otherwise requires.
IN WITNESS WHEREOF, each of the parties has caused this Agreement to be
executed on its behalf as of the day and year first above written.
UNITED FOODS, INC.
By: ____________________________________
Name: B.M. Ennis
Title: President
PICTSWEET LLC
By: ____________________________________
Name: James I. Tankersley
Title: President
UF ACQUISITION CORP.
By: ____________________________________
Name: James I. Tankersley
Title: President
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EXHIBIT 3.4
Conflicts
Company's execution, delivery and performance of this Agreement will, in certain
respects, be inconsistent with Company's obligations pursuant to the following
other agreements:
1. Loan Agreement date April 7, 1993, as amended, with First American
National Bank.
2. Master Security Agreements dated March 18, 1998 and related agreements
with The CIT Group/Equipment Financing, Inc.
3. Loan Agreement dated January 7, 1997 with Metropolitan Life Insurance
Company.
4. Consolidation, Renewal and Restatement of Deed of Trust and Security
Agreement dated January 30, 1997 with Northwestern National Life
Insurance Company.
26
<PAGE> 35
EXHIBIT 4.9
Litigation Pending or Threatened
None, other than a letter dated November 30, 1998, addressed to the Board of
Directors from an attorney located in New York, New York. The attorney purports
to be "a longstanding shareholder and represent several thousand shares", and he
threatens to commence litigation in connection with the Transactions if the
price per Share is not deemed adequate by the holder(s) of those Shares, while
suggesting that the proposed price per Share which now appears in the Merger
Agreement would not be deemed adequate.
27
<PAGE> 36
EXHIBIT 6.2(g)
Resignation of Directors
_________ ___, 1999
United Foods, Inc.
Ten Pictsweet Drive
Bells, Tennessee 39006-0119
Attn: James I. Tankersley
Re: Agreement and Plan of Merger, made as of March [___], 1999
(together with any amendments or supplements thereto, the "Merger
Agreement"), by and among UNITED FOODS, INC., a Delaware corporation
("Company"), PICTSWEET LLC, a Delaware limited liability company
("Parent"), and UF ACQUISITION CORP., a Delaware corporation and a
wholly owned subsidiary of Parent ("Purchaser").
Dear Sirs:
Pursuant to the Merger Agreement, the undersigned persons (the
"Directors") do each hereby irrevocably resign their positions as directors of
the Company, effective immediately at 12:01 A.M. of the day next after the
Closing Date (as defined in the Merger Agreement).
This instrument may be executed in one or more counterparts, each of
which shall be deemed an original, and all of which shall be deemed to be one
and the same instrument. It shall not be necessary that any single counterpart
bear the signature of all parties hereto. This instrument shall be separately
enforceable against each Director when he signs this instrument, and it shall
not be necessary for such enforcement that all Directors shall have signed it.
Facsimile signatures hereon shall be deemed to be as fully enforceable as
original signatures hereon.
Sincerely,
-----------------------------------
-----------------------------------
-----------------------------------
-----------------------------------
28
<PAGE> 37
EXHIBIT 8.1
Permitted Financing Terms
BORROWER: United Foods, Inc. ("United Foods" or "Borrower")
LENDER: Unknown ("Lender(s)")
FACILITY: $35,000,000 Revolving Line of Credit
(Outstanding tied to a borrowing base: 85%
of eligible accounts receivable, 60% of
eligible inventory.)
MATURITY: 3 years with the ability to extend the maturity by
one year beginning one year from closing.
COLLATERAL: Facility is secured by a perfected first priority
interest in all of Borrower's accounts receivable
and inventory (excluding the accounts receivable
and inventory associated with Pictsweet Mushroom
Farms.)
INTEREST RATES: Lender's Index Rate minus .5%.
LIBOR + 1.50%.
FEES:
Commitment Fee: Payable quarterly in arrears, 0.125% per annum
charged on the average unused portion of the
Revolving Line of Credit. Standby Letters of
Credit will count as "usage".
STANDBY LETTERS OF CREDIT:
Terms and Fees: All new Standby Letters of Credit (i) will be
issued by the Lender as the Issuing Bank, (ii)
will have Maturities equal to the lesser of either
364 days or the minimum maturity required by the
beneficiary, provided that all new Standby Letter
of Credits mature prior to the Maturity of the
Revolving Credit Facility, and (iii) will bear a
fee equal to 1.25%.
CONDITIONS PRECEDENT: As customary for facilities of this nature,
including but not limited to:
- No material adverse change in Borrower's
prospects or financial condition at any
time prior to closing.
29
<PAGE> 38
- Receipt of documentation listing all
material assets belonging to Borrower, and
describing all liens and all material
litigation.
- Receipt of satisfactory opinion from
Borrower's counsel.
- Receipt of documents certifying that
Borrower has the appropriate insurance
coverage and appropriate government
authorizations (permits, licenses, etc.),
and is in compliance with all government
laws and regulations, including those
specifically relating to environmental
issues and to ERISA.
- Receipt of corporate resolutions and
incumbency certificates for Borrowers, and
certifications as to the accuracy of all
representations and warranties and absence
of any event of default or situation which,
with the passage of time, could constitute
an event of default.
- Completion of satisfactory loan
documentation and approval by the Lender's
credit approval authorities as to the final
structure of the transaction which has been
approved by United Food, Inc.'s Board of
Directors.
REPRESENTATIONS AND
WARRANTIES: As customary for facilities of this nature,
including but not limited to affirmations
concerning corporate existence, corporate and
governmental authorization, financial information,
compliance with laws, including environmental,
compliance with ERISA, no material litigation,
payment of taxes, full disclosure, ownership and
maintenance of assets, including permits,
licenses, patents and trademarks, validity of loan
documents, and no liens except as acceptable to
the Lenders and except those required in the
ordinary course of business.
COVENANTS: As customary for facilities of this nature,
including but not limited to requirements
concerning:
30
<PAGE> 39
Affirmative Covenants:
- Maintenance of corporate existence,
government authorization (licenses,
permits, etc.), business conduct, property
and insurance.
- Payment of taxes and compliance with laws.
- Maintenance of warehouse agreements and
collateral, right of inspection.
- Notice of defaults, adverse changes.
- Notice of covenant compliance immediately
preceding and immediately following any
acquisition.
Financial Reporting:
- Annual audited consolidated and reconciled
consolidating balance sheets and income
statements and statements of cash flows for
Borrower due within 90 days of fiscal
year-end complete with confirming letter
from accountant and officer's compliance
certificate.
- Monthly consolidated financial statements
for Borrower due within 20 days of each
month end.
- Borrowing Base Certificate due within 15
days of month end.
- Quarterly Certificate of Compliance with
all financial covenants, due within 45 days
of quarter end.
- Annual forecast to include balance sheet,
income statement and statement of cash
flows, due within 90 days of fiscal
year-end.
Negative Covenants:
- Prohibitions on any change in business.
- Prohibitions against any change in the
charter documents or in fiscal year-end.
- Limitations on mergers, investments,
consolidations, transactions with
affiliates, and the sale of assets or
collateral.
Financial Covenants:
- Working Capital Floor: Minimum $25,000,000
Calculation:
31
<PAGE> 40
Calculated annually, Current Assets
minus Current Liabilities
- Tangible Net Worth: Minimum $27,500,000
Calculation:
Calculated quarterly, Tangible Net
Worth at Closing plus 50% of Net
Income or 50% of a Net Loss. Under
no circumstances should TNW fall
below $27,500,000.
- Debt to Equity Ratio: Maximum 3.5:1.0.
Calculation:
Calculated annually, Total
Liabilities divided by Tangible Net
Worth.
EVENTS OF DEFAULT: As customary for facilities of this nature,
including but not limited to requirements
concerning:
- Nonpayment of any principal or interest
when due.
- Nonpayment of any other obligations owed to
the Lenders within 10 days of the due date.
- Default by Borrower under any other
agreements for funded debt with a principal
amount in excess of $500,000.
- Misleading, false or incomplete
representations or warranties.
- Breach or failure to observe or perform any
covenant or undertaking contained in the
credit agreement, subject to 30 day cure
period.
- Any judgment in excess of $500,000 against
Borrower not cured, waived or dismissed
within 30 days.
- Any bankruptcy filing or other insolvency
proceeding of Borrower.
- Occurrence of any liability, or reasonable
threat of such liability, under any
employee benefit plan which may have a
material adverse effect on Borrower.
EXPENSES: Borrower will pay all reasonable fees and expenses
of the Lender and its counsel associated with the
negotiation and documentation.
32
<PAGE> 41
MINUTES OF THE MEETINGS
OF THE
SPECIAL TRANSACTION COMMITTEE
OF THE
BOARD OF DIRECTORS
OF
UNITED FOODS, INC.
<PAGE> 42
MINUTES OF THE SPECIAL MEETING OF
THE SPECIAL TRANSACTION COMMITTEE
OF UNITED FOODS, INC.
SEPTEMBER 16, 1998
Pursuant to waiver of notice, the Special Transaction Committee of the
Board of Directors of United Foods, Inc. (the "Company") held a meeting at the
Company's headquarters in Bells, Tennessee beginning at 3:30 p.m. on September
16, 1998. Both members of the Committee, John S. Wilder and Dr. Joseph A. Geary,
were present at the meeting. James H. Cheek, III of Bass, Berry & Sims PLC was
also present at the invitation of the Committee members. Mr. Wilder and Dr.
Geary called the meeting to order and asked Mr. Cheek to act as secretary of the
meeting.
Mr. Wilder asked Mr. Cheek to discuss the matters raised by the
proposal submitted by James I. Tankersley during the meeting of the Board of
Directors earlier in the day. Mr. Cheek reviewed the matters raised by the
proposal and the related designation of the Special Transaction Committee, and
discussed certain actions the Special Transactions Committee may wish to
consider in light of those matters. Following discussion, a motion to adopt the
following resolutions was duly made and seconded, and the resolutions were
unanimously adopted:
RESOLVED, that John S. Wilder is hereby elected to serve as Chairman of
the Special Transaction Committee;
FURTHER RESOLVED, that John S. Wilder, in his capacity as Chairman, is
hereby authorized to request information with respect to, and to arrange
interviews with, law firms which would be candidates to serve as counsel to the
Special Transaction Committee; and
FURTHER RESOLVED, that John S. Wilder, in his capacity as Chairman, is
hereby authorized to request information with respect to, and to arrange
interviews with, financial advisors which would be candidates to serve as
financial advisor to the Special Transaction Committee.
Upon due motion, and second, the meeting was adjourned.
/s/ James H. Cheek, III
---------------------------------------------
James H. Cheek, III, Acting Secretary
<PAGE> 43
BASS, BERRY & SIMS PLC
A PROFESSIONAL LIMITED LIABILITY COMPANY
ATTORNEYS AT LAW
2700 FIRST AMERICAN CENTER
NASHVILLE, TENNESSEE 37238-2700
(615) 742-6200
Fax Cover Sheet
To: Byron Trauger Fax Number: 256-7444
Company: Client Number:
CC: CC: Fax Number:
From: J. Cheek No of Pages: 3
(including Cover)
Date/Time: Attorney Number:
RE:
These are resolutions which will be incorporated in the Board minutes
of 9/16.
To confirm receipt of this telecopy, or report any problems, please
phone ___________________ at (615) __________________.
Note: This facsimile contains PRIVILEGED and CONFIDENTIAL information intended
only for the use of the specific individual or entity named above. If you or
your employer is not the intended recipient of this facsimile or an employee or
agent responsible for delivering it to the intended recipient, you are hereby
notified that any unauthorized dissemination or copying of this facsimile or the
information contained in it is strictly prohibited. If you have received this
facsimile in error, please immediately notify the person named above at once by
telephone and return the original facsimile to us at the above address via the
U.S. Postal Service. Thank you.
<PAGE> 44
UNITED FOODS, INC.
PROPOSED RESOLUTIONS
WHEREAS, James I. Tankersley, Chairman of the Board of Directors and
Chief Executive Officer of United Foods Inc. (the "Company"), along with his
wife and children (the "Jim Tankersley Group"), together are the beneficial
owners of approximately 61% of the Company's Class B common stock, and have
proposed a transaction pursuant to which the Jim Tankersley Group would acquire
the total ownership of the Company, including all of the outstanding shares of
the Company's Class B common stock and the Company's Class A common stock;
WHEREAS, Mr. Tankersley has indicated that the members of the Jim
Tankersley Group would not sell the shares of common stock of the Company
currently owned by them to any third party;
WHEREAS, the Board of Directors of the Company believes it should
consider the proposal of the Jim Tankersley Group; and
WHEREAS, the Board of Directors has determined that it is in the best
interests of the Company and its stockholders for the Board to form a special
committee of the Board of Directors to make certain that the directors
considering the proposal of the Jim Tankersley Group on behalf of the Company
have no material business relationships or interests with the Jim Tankersley
Group or any affiliated entity thereof.
NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the
Company does hereby create and designate a special committee (the "Special
Transaction Committee") of the Board of Directors for the purpose of evaluating
and making recommendations with respect to the proposal made by the Jim
Tankersley Group to acquire through a merger transaction all of the shares of
the Company's Class A and Class B common stock not owned by the Jim Tankersley
Group, as follows:
1. The persons appointed to the Special Transaction Committee are the
following persons:
(a) John S. Wilder and
(b) Joseph A. Geary.
2. The Special Transaction Committee shall follow the same procedures
that are applicable to the Board of Directors in holding meetings
and otherwise taking action.
1
<PAGE> 45
3. The Special Transaction Committee shall have the following powers
and authority:
(a) The Special Transaction Committee has the power and authority
to engage and to compensate on such terms as it deems
appropriate counsel.
(b) The Special Transaction Committee has the power and authority
to engage and to compensate on such terms as it deems
appropriate a financial advisor.
(c) The Special Transaction Committee has the power and authority
to engage and to compensate on such terms as it deems
appropriate such additional experts or advisors as deemed
necessary or appropriate by the Special Transaction Committee.
(d) If it believes such action to be in the best interest of the
Company and the stockholders other than the Jim Tankersley
Group, the Special Transaction Committee has the power and
authority to negotiate and recommend to the Board of Directors
the approval of the terms and conditions of a transaction
pursuant to which the Jim Tankersley Group will acquire the
shares of Class A and Class B common stock of the Company not
owned by such party.
(e) The Special Transaction Committee has the power and authority
to request and receive from the Company all information which it
deems necessary or appropriate for it or its advisors to review
in connection with the consideration of the proposal made by the
Jim Tankersley Group and the officers of the Company and its
counsel are directed and authorized to provide such information
and otherwise to cooperate with and assist the Special
Transaction Committee and its legal and financial advisors as
it considers such proposal.
(f) The Special Transaction Committee has such further powers and
authority to act on behalf of the Company and the Board of
Directors as may be necessary or appropriate to permit the
Special Transaction Committee to exercise the foregoing powers
and authority on behalf of the Board of Directors.
2
<PAGE> 46
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
September 21, 1998
A meeting of the Special Transaction Committee of the Board of
Directors (the "Committee") of United Foods, Inc., a Delaware corporation (the
"Company"), was held at the offices of Doramus, Trauger & Ney, 222 Fourth Avenue
North, Nashville, Tennessee, at 1:00 p.m.
John S. Wilder, Sr., a director of the Company and Chairman of the
Committee, and Dr. Joseph A. Geary, a director of the Company and the other
member of the Committee were present.
Byron R. Trauger and Anne Sumpter Arney of Doramus, Trauger & Ney,
counsel to the Committee, were also present.
Mr. Wilder called the meeting to order pursuant to a waiver of notice.
The Committee deferred approval of the Minutes of September 16, 1998, until the
next meeting. In addition, Mr. Trauger told the Committee that Doramus, Trauger
& Ney has never represented the Company, Mr. Jim Tankersley or his family. The
first item on the agenda was the engagement of counsel. The Committee discussed
the responsibilities of the Committee and the role of its counsel. It was
proposed that Doramus, Trauger & Ney be engaged as counsel to the Committee. Mr.
Trauger and Ms. Arney would be the attorneys from Doramus, Trauger & Ney
principally involved in representing the Committee. Mr. Trauger introduced Ms.
Arney and discussed his background as a member and chairman of the board of
directors of Coventry Corporation as well as experience in securities
litigation. Mr. Trauger also described Ms. Arney's qualifications and experience
in representing boards of directors and her experience in a variety of
securities transactions. After a thorough discussion, the Committee resolved to
engage Doramus, Trauger & Ney to act as counsel to the Committee.
The Committee and their counsel discussed the role and responsibilities
of the Committee. The Committee also discussed the reasons that the Committee
had been created, namely to evaluate and make a recommendation on the fairness
of a proposal from James I. Tankersley, Chief Executive Officer of the Company,
along with his wife and children (the "Jim Tankersley Group") to acquire total
ownership of the Company
1
<PAGE> 47
(the "Tankersley Proposal"), and to negotiate with Mr. Tankersley on behalf of
the minority shareholders. Mr. Trauger advised the Committee that in making
their recommendations they could rely on the advice and opinions of experts,
such as the investment bankers, attorneys and others.
The Committee next invited James H. Cheek, III and Allen J. Overby, II,
of Bass, Berry, & Sims, counsel to the Company, into the meeting. Mr. Cheek
described the history of the Company and the context of the proposal from the
Jim Tankersley Group to the Company. Mr. Cheek described a number of potential
issues the Company had encountered in connection with balancing the needs of
business development with the needs of a public company. In addition, Mr. Cheek
discussed with the Committee the fact that the shareholders of the Company did
not have any liquidity for their shares. The need for liquidity was recently
highlighted by Daniel B. Tankersley's and Julia T. Wells' desire to liquidate
some of their ownership in the Company. Mr. Wilder asked Mr. Cheek to describe
for the Committee what he believed the role for the Company's counsel was in
this process. Mr. Cheek described the various duties of counsel to the Company
in connection with responding to the Tankersley Proposal, which description was
consistent with that given by Mr. Trauger and Ms. Arney.
After a complete discussion of the history of the Tankersley Proposal,
Mr. Cheek and Mr. Overby left the meeting. The next item on the agenda was for
the Committee to engage the services of a financial advisor to the Committee.
J.C. Bradford & Co., L.L.C. ("J.C. Bradford") and Morgan Keegan & Co., Inc.
("Morgan Keegan") were each invited to make presentations to the Committee.
Prior to introducing the representatives from J.C. Bradford and Morgan Keegan,
Ms. Arney led the Committee in a discussion of the various criteria the
Committee should consider in deciding which financial advisor to engage,
including their experience, independence, and price.
After a thorough discussion of the role of the financial advisor in
assisting the Committee, D. Breck Walker, Managing Director of the Investment
Banking Group of J.C. Bradford and the other representatives from J.C. Bradford
were invited into the meeting to make a presentation of their qualifications to
advise the Committee in connection with the Tankersley Proposal. Mr. Walker and
N. B. Forrest Shoaf, Senior Vice President of Mergers and Acquisitions of the
Investment Banking Group of J.C. Bradford, distributed materials which described
J.C. Bradford's experience and qualifications to act as financial advisor to the
Committee. Mr. Wilder asked the J.C. Bradford representatives to describe what
they believed their responsibilities to the Committee were and what its task
would be. The J.C. Bradford representatives thoroughly discussed how they would
assist the Committee in the evaluation of the Tankersley Proposal including
delivering an opinion as to "fair price." Dr. Geary asked
2
<PAGE> 48
the J.C. Bradford representatives to describe other transactions in which J.C.
Bradford provided services that involved a cyclical industry. The J.C. Bradford
representatives described a number of transactions which involved similar
industries and companies. The J.C. Bradford representatives were asked if they
were involved in any transactions with the Jim Tankersley Group, the Company, or
any other individual or entity that could effect their independence. J.C.
Bradford confirmed that they had checked for potential conflicts and had none.
In addition, J.C. Bradford agreed to send the Committee their form of engagement
letter. Mr. Wilder thanked the J.C. Bradford representatives for their
presentation and the Committee took a short break.
After returning from a short break, the Committee invited Kenton E.
Novotny, a representative of Morgan Keegan, to make a presentation of Morgan
Keegan's qualifications to act as financial advisor to the Committee in
connection with the Tankersley Proposal. Mr. Novotny distributed materials
describing Morgan Keegan and its qualifications. Mr. Wilder asked Mr. Novotny to
describe other transactions similar to the Tankersley Proposal in which Morgan
Keegan had acted as financial advisor. Mr. Novotny discussed what he thought
were the key issues involved in the Tankersley Proposal and described other
transactions in which Morgan Keegan acted as the financial advisor which
involved the same or similar issues. The Committee asked Mr. Novotny whether
Morgan Keegan had represented the Jim Tankersley Group, the Company, or any
other individual or entity that could affect the independence of its advice to
the Committee. Mr. Novotny stated that they did not. The Committee requested Mr.
Novotny forward a form of Morgan Keegan's engagement letter for their review.
The Committee determined to adjourn until Wednesday at 1:30 p.m. when
the Committee would discuss further the engagement of a financial advisor, and
asked at this point if there were any other items which should come before the
Committee. Mr. Trauger reminded the Committee that any activity of the Committee
in connection with this transaction was to be held in the utmost confidence. The
meeting adjourned at 3:30 p.m.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
3
<PAGE> 49
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
September 23, 1998
The Special Transaction Committee of the Board of Directors of United
Foods, Inc., (the "Special Transaction Committee" or the "Committee" met on
September 23, 1998. Present in the offices of Committee Chairman John S. Wilder,
Sr., were Mr. Wilder and the Committee's counsel, Byron R. Trauger. Present by
telephone was Committee Member Dr. Joseph A. Geary.
Chairman Wilder called the meeting to order at 1:30 p.m. pursuant to a
waiver of notice. The Committee formally approved a waiver of notice form for
each of its meetings of September 16, 1998, September 21, 1998 and September 23,
1998.
The Committee next considered the minutes of its September 16, 1998
meeting. Upon motion of Dr. Geary, duly seconded, the Committee unanimously
approved those minutes.
The Committee next considered the minutes of its September 21, 1998
meeting and deferred action on those minutes until its next meeting.
The Committee next considered the retainer agreement between the
Committee and its counsel, Doramus, Trauger & Ney. Upon motion of Dr. Geary,
duly seconded, and after a full discussion, the Committee unanimously approved
the agreement.
The Committee next considered the proposals of J.C. Bradford & Co.,
L.L.C. ("J.C. Bradford") and of Morgan Keegan & Company, Inc. ("Morgan Keegan")
to serve as financial advisors to the Committee. Mr. Trauger reported upon the
work that he had done at the Committee's request to follow up the presentations
made by each firm. Following an extensive discussion of the qualifications and
presentations of the two firms, the Committee determined that it was impressed
with the experience and qualifications of both firms but that it had questions
about the form of engagement letters submitted by both. The Committee asked Mr.
Trauger to pursue those questions with both J.C. Bradford and with Morgan
Keegan.
The Committee tentatively scheduled its next meetings as follows: (1)
by telephone either September 24 at 3:00 p.m. (if the investment banking firms'
responses can be distributed by that time) or September 25 at 8:00 a.m. and (2)
in Mr. Trauger's offices on October 5, 1998 at 8:30 a.m.
<PAGE> 50
There being no further business to come before the Committee, the
meeting was adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
<PAGE> 51
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
September 25, 1998
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met on
September 25, 1998 by telephone conference. Present by telephone were Chairman
John S. Wilder, Sr., and Committee Member Dr. Joseph A. Geary. Also present by
telephone were the Committee's Counsel, Byron R. Trauger and Anne Sumpter Arney.
Chairman Wilder called the meeting to order at 8:00 a.m. pursuant to a
waiver of notice.
The Committee next considered the minutes of its September 21, 1998
meeting. Upon motion of Dr. Geary, duly seconded, the Committee unanimously
approved those minutes.
The Committee next considered the minutes of its September 23, 1998
meeting. Upon motion of Dr. Geary, duly seconded, the Committee unanimously
approved those minutes.
The Committee next considered the proposals of J.C. Bradford & Co.,
L.L.C. ("J.C. Bradford") and of Morgan Keegan & Company, Inc. ("Morgan Keegan")
to serve as financial advisors to the Committee. The Committee discussed the
responses of both J.C. Bradford and Morgan Keegan to questions posed by the
Committee. The Committee determined that J.C. Bradford's responses showed more
commitment to working with the Committee. Dr. Geary moved that the Committee
retain J.C. Bradford to act as the Committee's financial advisor. The motion was
seconded and approved. Dr. Geary suggested that the Committee authorize Chairman
Wilder to execute an engagement letter with J.C. Bradford, in a form as shall be
negotiated by Counsel. The motion was seconded and unanimously approved.
There being no further business to come before the Committee, the
meeting was adjourned until 8:30 a.m. on October 5, 1998.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
1
<PAGE> 52
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
October 5, 1998
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met on
October 5, 1998 in the offices of the Committee's counsel, Doramus Trauger &
Ney, 222 Fourth Avenue North, Nashville Tennessee. Present were Chairman John S.
Wilder, Sr., and Committee Member Dr. Joseph A. Geary, and Byron R. Trauger,
Esquire, counsel to the Special Committee.
Chairman Wilder called the meeting to order at 8:30 a.m. pursuant to a
waiver of notice.
The Committee next considered the minutes of its September 25, 1998
meeting. Upon motion of Dr. Geary, duly seconded, the Committee unanimously
approved those minutes.
Mr. Trauger suggested that the Committee review again at its next
meeting the role and responsibilities of the Special Transaction Committee.
The Committee next invited representatives of J.C. Bradford & Co.,
L.L.C. ("J.C. Bradford") to join the meeting. Joining the meeting were Forrest
Shoaf, Breck Walker, Edward LeMaster, Melinda Menzel and Mark Trushel.
There followed a presentation of the preliminary findings of J.C.
Bradford on the Tankersley Proposal which had been presented to the Company. The
J.C. Bradford representatives distributed materials which analyzed the price of
the Company's Class A and Class B Stock (the "Shares") through various economic
models. The J.C. Bradford representatives first discussed various issues that
they had identified in connection with the fairness of the proposal by the Jim
Tankersley Group. The representatives from J.C. Bradford then discussed the
factors that affect the value of the Company's stock. Among those factors, were
the Company's historically low earnings, the illiquidity of the shares, the
difficult competitive position of the Company, the consolidating nature of the
frozen food industry (both competitors and customers), the lack of growth of the
industry, and the lack of growth in the stock price. They also noted that in the
Company's 1997 tender offer, a large number of the Company's shareholders had
tendered their Shares for repurchase at a price of $2.50 per share. The
representatives from J.C. Bradford then
1
<PAGE> 53
presented their preliminary analysis of the Company according to a comparable
company analysis, a comparable transaction analysis, a discounted cash flow
analysis, and a trading and equity analysis. An extensive discussion ensued at
each stage of the presentation.
The Committee then requested that J.C. Bradford continue its work and
report to the Committee at its October 14, 1998 meeting in the offices of
Doramus, Trauger & Ney.
There being no further business to come before the Committee, the
meeting was adjourned until 8:30 a.m. on October 14, 1998.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
2
<PAGE> 54
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
October 14, 1998
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met on
October 14, 1998 in the offices of the Committee's counsel, Doramus, Trauger &
Ney, 222 Fourth Avenue North, Nashville Tennessee. Present were Chairman John S.
Wilder, Sr., and Committee Member Dr. Joseph A. Geary, and Byron R. Trauger and
Anne Sumpter Arney, counsel to the Special Committee.
Chairman Wilder called the meeting to order at 8:30 a.m. pursuant to a
waiver of notice.
The Committee next considered the minutes of its October 5, 1998
meeting. Upon motion of Dr. Geary, duly seconded, the Committee unanimously
approved those minutes.
Ms. Arney led the Committee in a discussion of the role and
responsibilities of the Special Committee. The Special Committee discussed that
they, as a Special Committee, had been formed to evaluate and make a
recommendation on the fairness of the proposal made by Mr. Tankersley and
certain members of his family (the "Jim Tankersley Group") to acquire total
ownership of the Company (the "Tankersley Proposal") and to protect the
interests of the minority shareholders. Ms. Arney advised the Special Committee
that in making their recommendations, they could rely on the advice and opinions
of experts, such as the investment bankers, attorneys and others. Ms. Arney
discussed the responsibilities of the directors and the Special Committee in the
context of the Tankersley Proposal. She stated that the Special Committee had
been created because of the potential conflict of interest created because the
Jim Tankersley Group owns a controlling number of shares of the Company. She
observed that the members of the Special Committee were chosen because they did
not have a conflict of interest in evaluating and making a recommendation with
regard to the Tankersley Proposal.
Ms. Arney also reminded Mr. Wilder and Dr. Geary of their
consideration, at previous meetings of the Special Committee, of the importance
of their being able to act independently. There followed a discussion of each
Committee Member's ability to act independently and in the best interests of the
minority shareholders at the conclusion
1
<PAGE> 55
of which Mr. Wilder and Dr. Geary reiterated their confidence that each was able
so to act.
Ms. Arney advised the Committee Members, that in performing their work,
they must seek information, evaluate the information, and consider alternatives
to the proposed transaction. She advised that they must also act impartially and
ensure that the negotiations are arms-length. She emphasized that the Special
Committee should make its best judgment after careful review of the facts and
the advice of its financial advisor. She noted that as part of its work the
Committee could attempt to negotiate a more favorable proposal from the Jim
Tankersley Group. She also emphasized that the Committee has the power to
recommend or not to recommend the Tankersley Proposal, even after any
modifications to the Tankersley Proposal may have been made. Mr. Wilder and Dr.
Geary thanked Ms. Arney for her presentation.
The Committee next invited representatives of J.C. Bradford & Co.,
L.L.C. ("J.C. Bradford") to join the meeting. Joining the meeting were Forrest
Shoaf, Edward LeMaster, Melinda Menzel and Mark Trushel.
There followed a presentation of additional findings of J.C. Bradford.
The J.C. Bradford representatives discussed various issues that they have
identified in connection with the fairness of the proposal by the Jim Tankersley
Group. They then distributed printed information and presented their
supplemental analysis of the proposal according to a comparable company
analysis, a comparable transaction analysis, a discounted cash flow analysis,
and a trading and equity analysis. An extensive discussion ensued at each stage
of the presentation. The representatives of J.C. Bradford concluded that based
on the three indices of (1) discounted cash flow, (2) a multiple of EBITDA, and
(3) equity book value, the price of $3.00 per share is inadequate.
The Committee then requested that J.C. Bradford, together with Doramus,
Trauger & Ney, contact Mr. Tankersley and his counsel, and attempt to negotiate,
on behalf of the Special Committee, a price for the stock of more than $3.00 per
share.
There being no further business to come before the Committee, the
meeting was adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
2
<PAGE> 56
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
November 23, 1998
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met on
October 14, 1998 in the offices of the Committee's counsel, Doramus, Trauger &
Ney, 222 Fourth Avenue North, Nashville Tennessee. Present were Chairman John S.
Wilder, Sr., and Committee Member Dr. Joseph A. Geary, and Byron R. Trauger and
Anne Sumpter Arney, counsel to the Special Committee. Forrest Shoaf, Eb
LeMaster, Breck Walker, Mark Trushel and Jeremy Gunther of J. C. Bradford & Co.,
L.L.C., ("J.C. Bradford") financial advisors to the Special Committee, were also
present.
Chairman Wilder called the meeting to order at 1:30 p.m. pursuant to a
waiver of notice.
The Committee next considered the Minutes of its October 14, 1998
meeting. Upon motion of Dr. Geary, duly seconded, the Committee unanimously
approved those Minutes.
Mr. Wilder asked for a report on the negotiations with the Jim
Tankersley Group. Mr. Trauger reported to the Committee on the structure,
general discussions and issues of the negotiations with the Jim Tankersley
Group. Mr. Trauger advised the Committee that counsel to the Committee and J.C.
Bradford had met with Mr. Tankersley and Sam D. Chafetz, Esq. of Waring Cox,
counsel to the Jim Tankersley Group, in three separate meetings; first in Bells,
Tennessee, on October 20, 1998, and on October 27, 1998, and November 3, 1998,
in Nashville, Tennessee. At each of the meetings, counsel to the Committee and
J.C. Bradford had told Mr. Tankersley and Mr. Chafetz the Committee's positions
that Mr. Tankersley's proposed price of $3.00 per share was not acceptable to
the Committee.
The representatives of J.C. Bradford distributed a written report of
the negotiations with Mr. Tankersley. Mr. Shoaf reported and thoroughly
discussed each of the Jim Tankersley Group's arguments supporting the position
that $3.00 per share is an adequate price for the shares of United Foods, Inc.
Mr. Shoaf explained the Jim Tankersley Group's arguments, as he understood them,
included a lengthy explanation of the method for calculating discounted cash
flow and its sensitivity to the amount of capital expenditure. After Mr. Shoaf's
presentation, there was a complete discussion of each of the arguments made by
the Jim Tankersley Group.
1
<PAGE> 57
Mr. Shoaf next led a presentation of arguments made by J. C. Bradford
and Doramus, Trauger & Ney, as special representatives of the Special Committee,
in negotiating for a price higher than $3.00 per share. Mr. Shoaf reported that,
after the last negotiation, Mr. Tankersley had requested that the Special
Committee make a specific proposal to him and his counsel including a price per
share.
Mr. Trauger reported that Mr. Chafetz and Mr. Tankersley had suggested
that the Jim Tankersley Group could not increase its offer from the $3.00 per
share in its original proposal because the Jim Tankersley Group was in what they
termed a "family box." As the Committee understood the issue, it resulted from
the fact that before the Jim Tankersley Group offered to purchase all of the
shares of the Company that it did not already own, Jim Tankersley's brother,
Daniel B. Tankersley, and his sister, Julia T. Wells, had offered to sell their
shares to the Company for a price of $3.00 per share. Mr. Tankersley said that
he feared that if he offered more than $3.00 per share for all the minority
shares and the transaction was not ultimately consummated, the Company would be
obligated to offer the higher price to Daniel B. Tankersley and Julia T. Wells.
Therefore, Mr. Tankersley suggested that the Committee present another counter-
proposal to him.
Mr. Wilder led the discussion of what price the Committee should
propose to the Jim Tankersley Group. Mr. Shoaf and the Committee discussed the
Committee's view, supported by J.C. Bradford, that it is very unlikely that
there would be a potential financial buyer for the Company because, according to
J.C. Bradford's leveraged buyout analysis, a financial buyer could not likely
achieve private market returns while undertaking a reasonable amount of debt in
the process. Further, Mr. Shoaf noted that the Company's historically low growth
and increasingly competitive market would also make it unattractive to a
financial buyer. The Committee noted that no potential buyer had come forward
since the public announcement of the Jim Tankersley Group's offer. J. C.
Bradford advised the Committee that a range of prices would be fair and the
Committee discussed at length what prices would be fair prices. The Committee
decided to propose a price of $3.85 per share.
The Committee also discussed the possibility of permitting the minority
shareholders (those not within the Jim Tankersley Group) to vote on whether or
not to approve the transaction. The Committee also discussed the option of
requiring that minority shareholders be given appraisal rights.
The Committee then requested that J. C. Bradford, together with
Doramus, Trauger & Ney, contact Mr. Tankersley and his counsel, and attempt to
negotiate, on
2
<PAGE> 58
behalf of the Special Committee, a price for the stock of more than $3.00 per
share together with a requirement that the transaction be approved by a majority
of the minority shareholders, and with appraisal rights for the minority
shareholders.
There being no further business to come before the Committee, the
meeting was adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
3
<PAGE> 59
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
December 8, 1998
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met on
December 8, 1998 in the offices of the Committee's financial advisor, J.C.
Bradford & Co., L.L.C. ("J.C. Bradford"), Nashville, Tennessee. Present were
Chairman John S. Wilder, Sr., and Byron R. Trauger and Anne Sumpter Arney,
counsel to the Special Committee, and Committee Member Dr. Joseph A. Geary was
present via telephone. Eb LeMaster, Breck Walker, and Mark Trushel of J.C.
Bradford & Co., L.L.C. ("J.C. Bradford") were also present.
Chairman Wilder called the meeting to order at 3:00 p.m. pursuant to a
waiver of notice.
The Committee next considered the Minutes of its November 23, 1998
meeting. Upon motion of Dr. Geary, duly seconded, the Committee unanimously
approved those Minutes.
Mr. Wilder asked for a report on the continued negotiations with the
Jim Tankersley Group. Mr. Trauger reported to the Committee that there had been
repeated discussions with Sam Chafetz, counsel to the Jim Tankersley Group. The
Jim Tankersley Group had not accepted the Committee's counter-offer of $3.85 per
share with the additional requirements of approval by a majority of the minority
shareholders and appraisal rights for the minority shareholders. Mr. Trauger
reported that Mr. Chafetz had indicated that the Jim Tankersley Group would
accept an offer of the following terms: (1) a price of $3.50 per share; (2)
appraisal rights, in addition to those provided by statute, with the limitation
that the Jim Tankersley Group would have a right to withdraw from the
transaction if more than 250,000 shares enter the appraisal process; (3) any
vote of the minority shareholders must include Daniel B. Tankersley and Julia T.
Wells in the voting group; (4) the Company would pay the expenses of the Jim
Tankersley Group if the transaction does not close; and (5) the Jim Tankersley
Group would have a right to withdraw if there is a material adverse change in
the Company. Mr. Trauger explained, and the Committee discussed, each of the
items in the counter-proposal.
1
<PAGE> 60
The representatives from J.C. Bradford distributed written materials
and Mr. Walker reported that J.C. Bradford could render an opinion that $3.50
per share is a fair price, from an economic point of view, for the shares of the
Company.
Mr. Wilder asked Mr. Trauger to discuss the importance of the vote of
the "disinterested" minority shareholders and the appraisal rights. Mr. Trauger
discussed the procedure and legal rights involved in an appraisal procedure. He
also explained the impact of the participation of the members of Jim
Tankersley's family in a vote of the minority shareholders.
The Committee discussed at length the value of the appraisal rights to
the minority shareholders. Mr. Walker pointed out that the Jim Tankersley Group
may not be able to obtain financing without some limit on the number of shares
which may enter the appraisal process.
The Committee discussed the requirement of allowing withdrawal of the
offer if there is a material adverse change in the Company. The Committee
determined that this right must be limited to changes outside the control of the
Jim Tankersley Group. Mr. Trauger suggested that this could be resolved through
further discussions with Mr. Chafetz.
The Committee discussed the request to pay the Jim Tankersley Group's
transaction costs. After some discussion, the Committee agreed to pay these
costs only if the transaction did not close because the Special Committee
aborted the process.
The Committee determined to consider the current proposal and to
reconvene to further discuss whether or not to make another counter-proposal.
There being no further business to come before the Committee, the
meeting was adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
2
<PAGE> 61
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
December 14, 1998
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met on
December 14, 1998 in the offices of Doramus, Trauger & Ney, Nashville Tennessee.
Present were Chairman John S. Wilder, Sr., and Committee Member Dr. Joseph A.
Geary, and Byron R. Trauger and Anne Sumpter Arney, counsel to the Special
Committee. Jeremy Gunter, Eb LeMaster, Forrest Shoaf, and Mark Trushel of J. C.
Bradford and Co., L.L.C. ("J.C. Bradford") were also present.
Chairman Wilder called the meeting to order at 10:00 a.m. pursuant to a
waiver of notice.
The Committee next considered the Minutes of its December 8, 1998
meeting. Upon motion of Dr. Geary, duly seconded, the Committee unanimously
approved those Minutes.
Mr. Wilder asked for Mr. Trauger to review the discussion from the last
meeting on the negotiations with the Jim Tankersley Group. Mr. Trauger reviewed
with the Committee that the Jim Tankersley Group had not accepted the
Committee's counter-offer of $3.85 per share with the requirement of (1) a vote
by minority shareholders to approve the transaction; and (2) appraisal rights
for the minority shareholders. Mr. Trauger indicated that the Jim Tankersley
Group would accept an offer of the following terms: (1) a price of $3.50 per
share; (2) appraisal rights, in addition to those provided by statute, with the
limitation that the Jim Tankersley Group would have a right to withdraw from the
transaction if more than 250,000 shares enter the appraisal process; (3) any
vote approving the transaction by the minority shareholders must include all
minority shareholders including Daniel B. Tankersley and Julia T. Wells in the
voting group; (4) the Company would pay the expenses of the Jim Tankersley Group
if the transaction does not close; and (5) the Jim Tankersley Group would have a
right to withdraw if there is a material adverse change in the Company.
Mr. Shoaf next discussed the position of J.C. Bradford that a price of
$3.50 per share would be a "fair" price to the minority shareholders.
Chairman Wilder asked Mr. Shoaf if he believed that there was another
buyer for
1
<PAGE> 62
the Company that might be willing to offer a higher price per share. Mr. Shoaf
stated that the current proposal had been public since September and no other
proposal had been submitted. Mr. Shoaf said that, based on his experience and
review of the market and of the Company, he did not believe that there would be
another offer for the Company.
Mr. Wilder asked Mr. Trauger to discuss again the importance of the
vote of the "disinterested" minority shareholders and the appraisal rights. Mr.
Trauger discussed the procedure and legal rights involved in an appraisal
procedure. Next, the Committee discussed whether the Jim Tankersley Group might
be willing to pay more than $3.50 per share and affirmed their desire to obtain
the highest possible price and the best terms from the Jim Tankersley Group. The
Committee instructed Mr. Trauger to contact Mr. Tankersley's counsel and try to
obtain an offer of $3.60 per share.
The Committee adjourned briefly while Mr. Trauger contacted Mr.
Chafetz.
The Committee reconvened and Mr. Trauger reported that Mr. Chafetz was
going to contact Mr. Tankersley with the Committee's offer.
After a brief recess, Mr. Chafetz telephoned Mr. Trauger and stated
that Mr. Tankersley was firm that $3.50 per share was his final offer.
The Committee discussed the proposal and the fact that this offer was
higher than the price the shares traded at for most of the time over the last
year. In addition, the Committee noted that the shares are thinly traded thus
resulting in very limited liquidity for the shares. After full discussion, the
Committee determined that it was in the best interest of the minority
shareholders to accept $3.50 per share.
There being no further business to come before the Committee, the
meeting was adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
2
<PAGE> 63
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
December 21, 1998
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met on
December 21, 1998 in the offices of Doramus, Trauger & Ney, Nashville,
Tennessee. Present were Chairman John S. Wilder, Sr., and Committee Member Dr.
Joseph A. Geary, and Byron R. Trauger and Anne Sumpter Arney, counsel to the
Special Committee. Jeremy Gunter, Eb LeMaster, Forrest Shoaf, and Mark Trushel
of J. C. Bradford and Co., L.L.C. ("J.C. Bradford") were also present.
Chairman Wilder called the meeting to order at 9:30 a.m. pursuant to a
waiver of notice.
The Committee next considered the Minutes of its December 14, 1998
meeting. Upon motion of Dr. Geary, duly seconded, the Committee unanimously
approved those Minutes.
The Committee discussed a letter which the Company received from Robert
I. Strourgo, an attorney from New York. The letter stated Mr. Strourgo's concern
about the potential acquisition of the Company by the Jim Tankersley Group. The
Committee discussed the issues raised in the letter and the proposed response to
Mr. Strourgo from the Company.
Mr. Shoaf stated that J.C. Bradford was prepared to render a written
fairness opinion. The Committee asked that J.C. Bradford wait to deliver the
opinion until after the Committee discussed certain issues in the proposed
transaction further. The representatives of J.C. Bradford distributed additional
written material which they believed supported the fairness of a purchase price
of $3.50 per share.
Mr. Shoaf discussed at length an overview of J.C. Bradford's analysis.
Mr. Shoaf set forth the financial strengths of the $3.50 per share offer and the
potential weaknesses of the offer. Mr. Shoaf next discussed in detail the three
principal methods which J. C. Bradford used to evaluate the price offered; the
comparable company analysis; the comparable transaction analysis; and discounted
cash flow analysis. Mr. Shoaf led the Committee through a thorough review of the
J.C. Bradford materials. In addition, the representatives of J.C. Bradford
discussed at length with the Committee the potential
1
<PAGE> 64
add-backs they had reviewed under the discounted cash flow analysis including
the discount rate and the level of capital expenditures. Mr. Shoaf concluded
that applying the financial analysis, and the methods used in valuation, a
valuation of the Company's common stock under reasonable assumptions could be as
low as $1.80 per share. The Committee discussed that they believed that Jim
Tankersley's offer of $3.50 per share was the most that would be offered by the
Jim Tankersley Group. The investment bankers were then excused from the meeting.
The next item on the agenda was a discussion of the draft Agreement and
Plan of Merger (the "Agreement") prepared by Sam Chafetz, Esq., counsel to the
Jim Tankersley Group. The Committee reviewed the previously distributed draft of
the Agreement and Ms. Arney led the Committee in a discussion of its principal
terms. After a lengthy discussion of each of the principal terms of the
Agreement set forth in the Summary Term Sheet, the Committee asked Ms. Arney to
convey the initial comments of the Committee to Mr. Chafetz.
Next, the Committee discussed the shareholders' approval of the
proposed transaction and determined that any transaction should be approved by a
vote of the majority of minority shareholders excluding members of the Jim
Tankersley Group, Dan Tankersley and Julia Wells. Mr. Wilder led the Committee
in a discussion of whether a shareholder vote on the proposed transaction should
include Daniel B. Tankersley and Julia T. Wells. The Committee discussed the
potential that Daniel B. Tankersley and Julia T. Wells would be influenced by
Jim Tankersley to vote in favor of the transaction. As a result, the approval of
the disinterested shareholders could be controlled by the Tankersley Group. In
the alternative, the Committee noted that it was impossible to predict how the
disinterested shareholders would vote and that, even assuming Daniel B.
Tankersley and Julia T. Wells vote "for" the transaction, they would control the
outcome. In addition, the Committee considered whether disenfranchising specific
minority shareholders based on their relationships would be arbitrary at best.
There being no further business to come before the Committee, the
meeting was adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
2
<PAGE> 65
MINUTES OF THE TELEPHONIC MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
December 29, 1998
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met by
telephone on December 29, 1998. Present by telephone were Chairman John S.
Wilder, Sr., and Committee Member Dr. Joseph A. Geary, and Byron R. Trauger,
counsel to the Special Transaction Committee.
Chairman Wilder called the meeting to order at approximately 10:00 a.m.
pursuant to a waiver of notice and the Committee deferred approval of the
Minutes of the December 21, 1998 meeting. Mr. Wilder asked Mr. Trauger to report
on the status of negotiations with Mr. Sam Chafetz, counsel to the Jim
Tankersley Group. Mr. Trauger reported that negotiations were proceeding
regarding the language of the proposed Agreement and Plan of Merger (the
"Agreement") that Mr. Chafetz had presented to counsel for the Special Committee
and which contemplated the accomplishment of the acquisition of the Company
through a merger of the Company with an entity owned by the Jim Tankersley Group
(the "Merger"). Mr. Trauger expressed the view that the technical issues
regarding the language of the Agreement could be resolved by January 7, 1999.
Mr. Trauger also reported that there had been no agreement reached on the issue
of whether or not members of the Tankersley family who were not also part of the
Jim Tankersley Group (Daniel B. Tankersley and Julia T. Wells) would be
permitted to vote with the minority shareholders on whether to approve the
Merger.
Mr. Wilder expressed his eagerness for the Special Committee to
complete its work, provided it could do so consistent with its obligations to
the minority shareholders of the Company. Mr. Wilder and Dr. Geary discussed
whether the exclusion of Daniel B. Tankersley or Julia T. Wells from the vote of
the minority shareholders was of any benefit to the minority shareholders. The
Committee agreed that it was likely that Daniel B. Tankersley and Julia T. Wells
would vote in favor of the Merger. The Committee concluded that the vote of the
minority shareholders should include Daniel B. Tankersley and Julia T. Wells.
Mr. Wilder and Dr. Geary then engaged in a discussion of the total
fairness of the Merger. The Committee discussed whether there was a possibility
that the Company might be sold to a competitor or another company. The Committee
also discussed their understanding of Mr. Jim Tankersley's continuing and
resolute unwillingness to vote his shares in favor of any sale of the Company.
<PAGE> 66
There being no further business to come before the Committee, the
meeting was adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
<PAGE> 67
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
January 20, 1999
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met on
January 20, 1999, in the offices of J.C. Bradford & Co., LLC ("J.C. Bradford),
Nashville, Tennessee. Present were Chairman John S. Wilder, Sr., and Committee
Member Dr. Joseph A. Geary, and Byron R. Trauger and Anne Sumpter Arney, counsel
to the Special Committee. Jeremy Gunter, Eb LeMaster, Forrest Shoaf, and Mark
Trushel of J. C. Bradford were also present.
Chairman Wilder called the meeting to order at 9:00 a.m. pursuant to a
waiver of notice.
The Committee next considered the Minutes of its December 21, 1998
meeting. Upon motion of Dr. Geary, duly seconded, the Committee unanimously
approved those Minutes.
The first item to be discussed was an update of the financial analysis
by J.C. Bradford. Mr. Shoaf and the representatives from J. C. Bradford
distributed updated materials discussing the financial analysis of J. C.
Bradford. Mr. Shoaf led J.C. Bradford's discussion of the materials. Mr. Shoaf
stated that J.C. Bradford was prepared to render a written fairness opinion that
$3.50 per share was a fair price for the Class A and Class B Common Stock of the
Company.
Mr. Shoaf discussed at length the J.C. Bradford analysis. Mr. Shoaf set
forth the financial strengths of the $3.50 per share offer and the potential
weaknesses of the offer. Mr. Shoaf discussed the updated results of the
financial analysis which J. C. Bradford used to evaluate the price offered. Mr.
Shoaf advised the Committee that the Company had a very good fourth quarter and
therefore some of the financial results were stronger than previously shown.
Mr. Shoaf stated that under the comparable company analysis, J.C.
Bradford believed the only true comparable company was Hanover Foods
Corporation. Using the comparable company multiples with respect to Hanover
Foods Corporation, the valuation would be significantly below J.C. Bradford's
price of $3.50 per share. Mr. Shoaf stated that J.C. Bradford believed that the
comparable transaction analysis was
1
<PAGE> 68
the least reliable analysis used in this transaction since there appeared to be
no comparable transaction. The most nearly comparable transaction was the
Agrilink acquisition of the Dean Foods Vegetable Division (the "Dean Foods
Transaction"); however, in the Dean Foods Transaction a large portion of
consideration was for the "Birds Eye" label. Since, in J.C. Bradford's opinion,
the Company did not have a comparable "label", the comparison of the proposed
transaction to the Dean Food's transaction was not a significant indication of
fair price. Mr. Shoaf stated that J.C. Bradford believed that the "discounted
cash flow" was the best method to analyze the fairness of the proposed price of
$3.50 per share. He observed that the "discounted cash flow" analysis of $3.50
per share was clearly within the range of fairness.
Mr. Shoaf stated one of the strongest arguments that $3.50 per share is
a fair price is the price at which the shares have traded over the past three
years. Mr. Shoaf stated that three of the four indices used to calculate the
price showed that $3.50 per share was within the range.
The Committee asked J.C. Bradford to address why the fourth quarter of
1998 was so strong, and more specifically, why the fourth quarter of 1999 was
projected to be weaker than the fourth quarter of 1998. Mr. LeMaster stated that
there were a number of reasons why the fourth quarter of 1998 had been
particularly strong for the Company. The principal reason was an accounting
adjustment which resulted from an overestimate of costs for the fourth quarter
that heavily boosted the fourth quarter numbers. In addition, there had been an
increase in the profits in the frozen foods side of the business, and mushroom
prices had rebounded from weakness in the prior year. Mr. LeMaster further
stated that J.C. Bradford believed that the third quarter of 1998 was not a
typical example of results of the Company and believed that the fourth quarter
of 1999 would be more like 1997 than 1998.
The Committee asked whether comparable companies had a similarly strong
fourth quarter. Mr. LeMaster advised the Committee that this was a difficult
comparison to make since the other companies had a calendar year fiscal year for
the most part.
Chairman Wilder asked whether or not any potential buyer other than the
Jim Tankersley Group was known to J.C. Bradford. Mr. Shoaf advised the Committee
that he did not believe there was another buyer for the Company.
After a full discussion of the various issues raised by the updated
financial analysis, the representatives of J.C. Bradford advised the Committee
that they believed that the offer of $3.50 per share was a fair purchase price.
Mr. Shoaf then delivered the written fairness opinion of J.C. Bradford to each
of the members of the Committee with a copy to the counsel of the Special
Committee.
2
<PAGE> 69
The next item on the agenda was whether the Committee should require
that the Jim Tankersley Group obtain a financial opinion on the Company's
solvency assuming the financing for the proposed transaction. Ms. Arney advised
the Committee that if the payment for the shares by the Jim Tankersley Group
resulted in the Company becoming insolvent the transaction could be deemed a
fraudulent conveyance and result in the entire transaction being unwound. The
Committee asked J.C. Bradford to discuss whether they believed financing the
proposed transaction would render the Company financially unstable. J.C.
Bradford said that they did not see any indication that the Company would not be
able to support the funding of this transaction. The Committee discussed ways to
protect the shareholders against this issue by obtaining certain representations
in the Merger Agreement. After a full discussion, the Committee determined not
to require the delivery of an opinion on the solvency of the Company after
completion of the proposed transaction.
There were no further discussions of J.C. Bradford's financial analysis
and the investment bankers were excused from the meeting.
Next, the Committee discussed the Committee's proposal to the Jim
Tankersley Group requiring a vote of the disinterested shareholders to approve
the proposed transaction. Mr. Trauger reported that the Jim Tankersley Group had
not agreed to approval of the Transaction by a vote of the majority of minority
shareholders excluding Dan Tankersley and Julia Wells. Mr. Trauger reported that
Mr. Chafetz had emphasized that Dan Tankersley and Julia Wells were not members
of the Jim Tankersley Group and that they would be selling shareholders in the
proposed transaction. In addition, Mr. Chafetz also proposed that the vote only
require a majority of the shareholders who actually vote. After a full
discussion, the Committee determined that to exclude Dan Tankersley and Julia
Wells would be to deprive them of some of their rights as shareholders and that
they should not be excluded from a shareholder vote.
The Committee discussed at length its desire that the proposed
transaction be approved by a vote of the minority shareholders that would be
fair. The Committee discussed its concern that the votes of the shareholders who
actually vote should not be outweighed by the failure of other shareholders to
vote. Thus, the Committee concluded that it would be unfair to the minority
shareholders to require approval of the transaction by more than that a majority
of the minority shareholders who actually vote.
3
<PAGE> 70
There being no further business to come before the Committee, the
meeting was adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
4
<PAGE> 71
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
(via conference call)
January 21, 1999
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met on
January 21, 1999 via telephone call. Present, via telephone call, were Chairman
John S. Wilder, Sr., and Committee Member Dr. Joseph A. Geary, and Byron R.
Trauger and Anne Sumpter Arney, counsel to the Special Committee.
Chairman Wilder called the meeting to order at 1:00 p.m. pursuant to a
waiver of notice.
The Committee deferred approval of the Minutes of the meeting of
January 20, 1999. Chairman Wilder asked what percentage of the shareholders'
vote was required to approve a merger under Delaware law. Ms. Arney advised the
Committee that Delaware law required that a merger be approved by the Company's
board of directors and a vote of the majority of the shareholders entitled to
vote. Ms. Arney further advised the Committee that, in the event the Board of
Directors were not to approve the proposed transaction, the Certificate of
Incorporation would require that 75% of each class of shares entitled to be
voted in the election of directors, actually be voted in favor of the proposed
transaction.
Chairman Wilder led another discussion of the fiduciary duties of the
Special Committee. The Committee then discussed the vote of the disinterested
shareholders. Mr. Trauger advised the Committee that the requirement that the
transaction be approved by a vote of the disinterested shareholder gives the
minority shareholders a chance to vote on the proposed transaction. Chairman
Wilder stated that he believed that the outcome of the vote should not be
controlled by those shareholders who fail to vote. He observed that to require
that the transaction be approved by a majority of the shares entitled to vote
would result in any non-voting share being counted as a "no" vote. The Committee
discussed the possibility of requiring a vote different from a majority but
ultimately rejected any such possibility as being arbitrary and as not being a
good way to determine the will of the minority shareholders.
<PAGE> 72
The Committee members voted to adjourn until 11:00 a.m. the next day.
There being no further business to come before the Committee, the meeting was
adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
<PAGE> 73
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
(via conference call)
January 22, 1999
11:00 a.m.
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met on
January 22, 1999 via telephone call. Present, via telephone call, were Chairman
John S. Wilder, Sr., and Committee Member Dr. Joseph A. Geary, and Byron R.
Trauger and Anne Sumpter Arney, counsel to the Special Committee.
Chairman Wilder called the meeting to order at 11:10 a.m. pursuant to a
waiver of notice. The Committee deferred approval of the Minutes of the January
21, 1999 meeting and continued to discuss the requirement that the proposed
acquisition of the Company by the Jim Tankersley Group (the "Transaction") be
approved by a vote of the disinterested shareholders. Mr. Trauger and Ms. Arney
discussed the various provisions in the Company's Certificate of Incorporation
which require certain actions to be approved by a vote of 75% of the holders of
shares entitled to vote in each class of the Company's common stock. Ms. Arney
discussed the provisions of Article Fourth of the Company's Certificate of
Incorporation.
The Committee discussed at length the various reasons for the voting
requirements in the Company's Certificate of Incorporation. Chairman Wilder
stated that he felt that the Transaction, on the terms negotiated by the
Committee, was in the best interest of the minority shareholders and that he did
not want to require a percentage of votes to approve the Transaction which would
result in the inaction of the shareholders defeating the Transaction. The
Committee discussed the various numbers required to approve the Transaction
under various potential "voting" numbers. The Committee asked Mr. Trauger and
Ms. Arney to continue to discuss the vote of the disinterested shareholders with
counsel to the Jim Tankersley Group.
There being no further business to come before the Committee, the
meeting was adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
1
<PAGE> 74
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
(via conference call)
January 27, 1999
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met on
January 27, 1999 via telephone call. Present, via telephone call, were Chairman
John S. Wilder, Sr., and Committee Member Dr. Joseph A. Geary, and Byron R.
Trauger and Anne Sumpter Arney, counsel to the Special Committee.
Chairman Wilder called the meeting to order at 2:10 p.m. pursuant to a
waiver of notice. The Committee deferred approval of the Minutes of the January
22, 1999 meeting and asked Mr. Trauger to report to the Committee on his
conversations with Mr. Chafetz concerning the Committee's proposal to require a
majority vote of the disinterested shareholders. Mr. Trauger reported that Mr.
Chafetz had indicated that the Jim Tankersley Group would not agree to a
requirement that the transaction be approved by a vote of the disinterested
shareholders unless Julia T. Wells and Daniel B. Tankersley are included in the
vote. In addition, Mr. Trauger reported that the Jim Tankersley Group was
unwilling to require a vote of a majority of all shares entitled to vote.
Instead, Mr. Tankersley's counsel proposed that the approval be by a majority
vote of the shares actually voted. Mr. Trauger distributed a memorandum from Mr.
Chafetz in which Mr. Chafetz set forth his arguments to support Mr. Tankersley's
position that the approval of the disinterested shareholders should only require
a majority of shares actually voted.
The Committee discussed each of Mr. Chafetz' arguments. Mr. Trauger
advised the Committee that a vote of the disinterested shareholders was not
required by Delaware law but was a condition on approval of the transaction that
the Committee had proposed. The Committee discussed at length whether the vote
of the disinterested shareholders added any value to the proposed transaction
for the minority shareholders.
The Committee discussed their belief that the transaction was in the
best interest of the minority shareholders. Dr. Geary expressed his concern that
if the transaction was not completed, it was unlikely that the minority
shareholders would have an opportunity to sell their shares since there was a
limited market for the Company's shares.
Chairman Wilder stated that he believed that the price of $3.50 per
share was the best price that could be negotiated by the Committee from the Jim
Tankersley Group. Chairman Wilder further stated that he believed that Mr. Jim
Tankersley would not sell to another
1
<PAGE> 75
buyer. Dr. Geary agreed that Mr. Jim Tankersley had said repeatedly that he was
not willing to sell his shares. The Committee directed Mr. Trauger to discuss
with the Company's counsel whether there was any chance that Mr. Tankersley
would sell his shares if a third party came forward at any price.
The Committee determined to adjourn until Mr. Trauger had spoken to
Counsel to the Company.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
2
<PAGE> 76
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
February 4, 1999
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met on
February 4, 1999. Present were Chairman John S. Wilder, Sr., and Committee
Member Dr. Joseph A. Geary (via telephone call), and Byron R. Trauger and Anne
Sumpter Arney, counsel to the Special Committee.
Chairman Wilder called the meeting to order at 10:10 a.m. pursuant to a
waiver of notice. A motion was made, seconded, and carried, to defer the
approval of the Minutes of the meeting of the Committee of January 27, 1999
until the next meeting.
Next, the Committee resumed their discussions concerning the
Committee's proposal to require that the acquisition of the Company by the Jim
Tankersley Group be approved by a majority vote of the disinterested
shareholders. Mr. Trauger reported to the Committee that he had discussed with
the Company's counsel whether Jim Tankersley would be willing to sell his shares
to a third party. James H. Cheek, III, counsel to the Committee, confirmed what
the Jim Tankersley Group's own counsel had reported, namely that he did not
believe Jim Tankersley would sell his shares at any price.
The Committee discussed the significant positive response to the
Company's tender offer in 1997 (at a price of $2.50) and the current illiquidity
of the Company's stock.
Mr. Wilder reiterated his view that the price of $3.50 per share was
the best price that could be negotiated with the Jim Tankersley Group. The
Committee discussed Jim Tankersley's position not to sell his shares. Both
Chairman Wilder and Dr. Geary expressed their opinion that Jim Tankersley would
not accept an offer to purchase his shares at any price.
Mr. Trauger and Ms. Arney described again the legal concept of a
"control premium" in the context of an acquisition of a Company's shares. The
Committee discussed that the Tankersley Proposal involved the purchase of a
non-controlling group of shares. Therefore, even if Jim Tankersley was willing
to sell at an extremely high price, such a price would probably involve payment
of a control premium. Such a premium was not applicable to the offer which the
Committee was considering. In addition, the Committee discussed that J.C.
Bradford & Co., L.L.C. ("J.C. Bradford") had rendered an opinion that the price
was fair.
1
<PAGE> 77
Chairman Wilder noted that no third party buyer had indicated any interest and
even if a third party buyer offered a higher price, it was of no value to the
minority shareholders since such an offer would not be accepted by the Jim
Tankersley Group.
The Committee discussed their conclusion that the proposed transaction
was in the best interest of the minority shareholders. The Committee observed
that one significant benefit to the Company's minority shareholders is the
creation of a market for their shares. The Committee also discussed that this
might be the only opportunity for the minority shareholders to receive any value
for their shares because of the illiquidity of the Company's shares. After
extensive discussion, the Committee affirmed its prior tentative conclusion that
it should require that the proposed transaction be approved by a majority of the
shares of stock (not held by the Jim Tankersley Group) that are actually voted.
At the conclusion of the discussion concerning the vote of the
disinterested shareholders, Dr. Geary moved that the Committee recommend to the
Board that the Company accept the proposal of the Jim Tankersley Group at a
purchase price of $3.50 per share subject to (1) appraisal rights; (2) approval
by a majority of the shares voted by disinterested shareholders; and (3) the
negotiation of an agreement acceptable to the Committee and their counsel.
Chairman Wilder seconded the motion and it carried unanimously.
Next, Ms. Arney asked the Committee to consider the January 15, 1999
draft of the Agreement and Plan of Merger dated January ___, 1999 among United
Foods, Inc., PictSweet LLC, and UF Acquisition Corp. (the "Agreement") which had
been previously distributed. Mr. Wilder and Dr. Geary reported that they had
reviewed the Agreement and were generally in agreement with its terms, subject
to advice by counsel to the Committee. Ms. Arney called the Committee's
attention to the fact that the Jim Tankersley Group's counsel had requested that
the Agreement include the following condition to closing for the Jim Tankersley
Group:
i. There has been no loss or prospective loss by Company
of any customer(s) which individually accounted for
ten percent (10%) or more (or represented one of the
top three customers [measured by gross sales]), or in
the aggregate accounted for twenty-five percent (25%)
or more, of the gross sales of either the frozen
vegetable division or of the mushroom division of
Company, based on its last complete fiscal year,
whether or not resulting from a Customer Change in
Control Transaction.
2
<PAGE> 78
Chairman Wilder said that he did not believe that the Jim Tankersley Group
should have any right to withdraw from the transaction after it has been
approved by the minority shareholders. However, he believed it was reasonable to
include such a condition to closing, provided that the condition would expire
upon approval of the transaction by the shareholders. The Committee discussed
various changes occurring in the industry and how they might result in the loss
of a substantial customer. The Committee directed Ms. Arney to negotiate this
provision in the Agreement and obtain the following terms for any such condition
to closing:
1. Any condition to closing based on a change or loss of
the Company's customers cannot be exercised by the
Jim Tankersley Group after the transaction has been
approved by shareholders; and
2. No such condition can be exercised based on
information which Jim Tankersley had a reasonable
basis to know at the time the Agreement is signed.
There being no further business to come before the Committee, the
meeting was adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
3
<PAGE> 79
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
February 18, 1999
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met on
February 18, 1999. Present were Chairman John S. Wilder, Sr., and Committee
Member Dr. Joseph A. Geary, and Byron R. Trauger and Anne Sumpter Arney, counsel
to the Special Committee.
Chairman Wilder called the meeting to order at 10:00 a.m. pursuant to a
waiver of notice. Dr. Geary and Mr. Wilder agreed that they were prepared to
report their conclusions and recommendations to the Board of Directors with
respect to the proposal made by the Jim Tankersley Group to acquire total
ownership of the Company (the "Transaction"). Chairman Wilder asked Mr. Trauger
and Ms. Arney to prepare a written presentation to be made to the Board
including the following factors:
Based upon the information obtained by the Committee, and upon the advice of its
financial advisor, together with the financial advisor's Opinion, dated January
20, 1999, and upon full discussion and consideration of the Proposed
Transaction, the Committee concludes as follows:
1. The sale of the Shares is in the best interest of the
Shareholders;
2. The best price that can be negotiated by the Committee with
the Jim Tankersley Group is $3.50 per share.
3. The proposed purchase price of $3.50 per share is a fair price
for the Shares.
4. The terms of the Agreement and Plan of Merger on substantially
the terms of the draft of __________________, 1999, including,
without limitation, the nature of the parties representations,
warranties, covenants and agreements and the conditions and
obligations of PictSweet L.L.C. and UF Acquisition Corp. (the
"Agreement"), are reasonable.
5. The Proposed Transaction is fair to the Shareholders.
6. The Committee recommends that the Board approve the Proposed
Transaction on the terms described in the Agreement including
a price per share of $3.50.
1
<PAGE> 80
Next, Ms. Arney asked the Committee to consider the February 11, 1999
draft of the Agreement and Plan of Merger, dated February ____, 1999, among
United Foods, Inc., PictSweet LLC, and UF Acquisition Corp. (the "Agreement")
which had been previously distributed. Ms. Arney advised the Committee that
conditions to closing had been revised as proposed by the Committee. Ms. Arney
asked the Committee if they had had an opportunity to review the February 11
draft of the Agreement. Chairman Wilder and Dr. Geary both had had an
opportunity to review the February 11 draft. The Committee discussed the
Agreement at length. Next, Ms. Arney asked whether the Committee had any
additional changes to the Agreement. Chairman Wilder said he did not want any
contingencies to closing if the minority shareholders approve the Transaction.
Ms. Arney said that this would require some changes to Article 6 of the
Agreement which she would discuss with Mr. Chafetz. Dr. Geary said he thought
the Committee had been able to negotiate a number of changes to the Agreement
which would be beneficial to the minority shareholders including Sections 4.7,
5.11 and 7.1(f). The Committee directed Ms. Arney to continue to negotiate the
changes proposed by the Committee.
The Committee adjourned at 12:00.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
2
<PAGE> 81
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
March 5, 1999
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met, via
telephone conference call, on March 5, 1999. Present, via telephone conference
call, were Chairman John S. Wilder, Sr., Committee Member Dr. Joseph A. Geary,
and Byron R. Trauger and Anne Sumpter Arney, counsel to the Special Committee.
Chairman Wilder called the meeting to order at 10:00 a.m. pursuant to a
waiver of notice. A motion was made, seconded, and carried to approve the
Minutes of all of the meetings of the Committee which the Committee had received
and which included certain Minutes which had been previously approved but which
had been revised to include a more detailed record of the Committee's
discussions.
Next, the Committee resumed their discussions of their recommendation
to the Board of Directors in the form adopted at the previous meeting. The
Committee discussed each of the conclusions set forth in their recommendation
and decided to continue the discussion at the next meeting of the Committee.
Ms. Arney then asked the Committee to consider two issues still being
negotiated in the Agreement and Plan of Merger among United Foods, Inc.,
PictSweet LLC, and UF Acquisition Corp. (the "Agreement"). Ms. Arney advised the
Committee that Mr. Tankersley's counsel was proposing that the Company reimburse
Mr. Tankersley for his expenses in the transaction in all circumstances other
than one in which the Agreement is terminated as a result of a breach by the Jim
Tankersley Group. The Committee resolved to reimburse the Jim Tankersley Group's
expenses except in the following circumstances:
1. The Agreement is terminated as a result by the Jim Tankersley
Group's breach of the Agreement;
2. The Merger is not approved by the shareholders; or
3. The Agreement is terminated because holders of more than
250,000 shares seek appraisal rights.
1
<PAGE> 82
Next, Ms. Arney discussed with the Committee their position that the
Jim Tankersley Group should not have any right to withdraw from the transaction
after it has been approved by the minority shareholders. Ms. Arney told the
Committee that Mr. Chafetz argued that this could result in:
1. Additional expenses in connection with the financing of the
transaction; and
2. A delay in closing if a material adverse change or other
condition to closing arises between the time of the
preparation and mailing of the proxy statements and the
shareholder vote.
According to Mr. Chafetz, in such a situation, the Jim Tankersley Group would
have to exercise its option not to close and adjourn the shareholder meeting and
the vote would be postponed. If the meeting is postponed, and the conditions to
closing were met at a later time, the shareholder meeting would have to be
called again and could require (depending on the timing) a new proxy statement.
It is Mr. Chafetz's position that the preparation and mailing of another proxy
statement would require additional time and money, and potentially delay the
time when the shareholders receive their money.
After discussion, the Committee determined that despite Mr. Chafetz's
argument, there should be no contingencies which the Jim Tankersley Group could
assert as a reason not to close once the shareholders approve the transaction.
There being no further business to come before the Committee, the
meeting was adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
2
<PAGE> 83
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
March 18, 1999
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met, via
telephone conference call, on March 18, 1999. Present, via telephone conference
call, were Chairman John S. Wilder, Sr., Committee Member Dr. Joseph A. Geary,
and Byron R. Trauger and Anne Sumpter Arney, counsel to the Special Committee.
Chairman Wilder called the meeting to order at 10:00 a.m. pursuant to a
waiver of notice.
The Committee discussed the fact that a lawsuit against the Company and
the directors had been filed by Rolfe Glover. Mr. Trauger advised the Committee
that any questions about the lawsuit should be referred to James H. Cheek, III,
Esq. at Bass Berry & Sims, counsel to the Company. The Committee asked Mr.
Trauger and Ms. Arney to obtain an update on the lawsuit.
Next, the Committee resumed their discussions of their recommendation
to the Board of Directors with respect to the proposal by the Jim Tankersley
Group to acquire all of the shares of capital stock of the Company. The
Committee discussed the conclusions set forth in their proposed recommendation
discussed at the Committee's meeting on February 18, 1999, and concluded that
the recommendation should clearly identify that the recommendation was based on
the information obtained by the Committee.
There being no further business to come before the Committee, the
meeting was adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
1
<PAGE> 84
MINUTES OF THE MEETING
OF THE SPECIAL TRANSACTION COMMITTEE
OF THE BOARD OF DIRECTORS
OF UNITED FOODS, INC.
April 5, 1999
The Special Transaction Committee of the Board of Directors of United
Foods, Inc. (the "Special Transaction Committee" or the "Committee") met, via
telephone conference call, on April 5, 1999. Present, via telephone conference
call, were Chairman John S. Wilder, Sr., Committee Member Dr. Joseph A. Geary,
and Byron R. Trauger and Anne Sumpter Arney, counsel to the Special Committee.
Chairman Wilder called the meeting to order at 1:00 p.m. pursuant to a
waiver of notice. The Committee asked Ms. Arney to report to the Committee on
any developments in the lawsuit styled Glover v. United Foods, Inc., et al.
(Chancery Court of Delaware, New Castle County, C.A. No. 17006NC, filed March 8,
1999). Ms. Arney reported that she had spoken to R. Franklin Balotti, Esq., of
Richards, Layton & Finger, PA. Mr. Balotti is Delaware counsel to the Company
and to certain other defendants, including Mr. Wilder and Dr. Geary. Mr. Balotti
reported that no action was being taken at this time and that the Company was
waiting to see what the plaintiff's next move would be.
Ms. Arney also reported that she had discussed with Mr. Balotti and Mr.
Cheek whether the Committee should obtain Delaware counsel. The Committee
concluded that at this time, separate Delaware counsel for the Committee was
probably not necessary.
Next, the Committee resumed their discussions of their conclusions of
February 18, 1999. The Committee discussed each of the factors set forth in
their conclusions.
There being no further business to come before the Committee, the
meeting was adjourned.
/s/ John S. Wilder, Sr.
--------------------------------------
John S. Wilder, Sr.
Chairman of the Committee
<PAGE> 1
EXHIBIT 17(b)(3)
Information for:
Special Committee of the Board of Directors of
--------------------------------------------------------
UNITED FOODS
--------------------------------------------------------
May 10, 1999
-------------------
J.C. Bradford & Co.
-------------------
330 Commerce Street
Nashville, TN 37201
(800)522-4750
<PAGE> 2
Table of Contents
United Foods, Inc. Fairness Opinion
I. Transaction Overview
II. Summary of Analysis
III. Comparable Company Analysis
IV. Comparable Transaction Analysis
V. Discounted Cash Flow Analysis
VI. Premium Analysis
VII. Stock Price Analysis
VIII. Trading and Equity Analysis
IX. Liquidation Analysis
J.C. Bradford & Co.
<PAGE> 3
TRANSACTION OVERVIEW
- --------------------------------------------------------------------------------
- - Going Private Transaction - Led by CEO/Chairman Jim Tankersley
- - Tankersley Group (Including Jim Tankersley, his wife and his children) to
Acquire the Remaining Shares of the Company
- - $3.50 per Share Represents a 16% Increase Over Initial Offer of $3.00 per
Share and Premiums of 30% and 40% Over Last Trade Price for the Class A
Shares ($2.688 on 4/30/99) and Class B Shares ($2.50 on 5/6/99),
respectively.
- - Tankersley Group Acquiring Approximately 4.3 million shares
1
J.C. Bradford & Co.
<PAGE> 4
TRANSACTION OVERVIEW
- --------------------------------------------------------------------------------
- - Appraisal Rights - Up to 250,000 Shares
- - Cleansing Vote - All Shareholders Not Part of Tankersley Group
- - Financing Contingency
- - Deal Contingent Upon No Material Adverse Change in the Business
- - Company Pays Transaction Expenses if Deal Does Not Close Unless Tankersley
Group Backs Out for Reasons Unrelated to Financing and Material Adverse
Changes
2
J.C. Bradford & Co.
<PAGE> 5
TRANSACTION OVERVIEW
- --------------------------------------------------------------------------------
TRANSACTION MULTIPLES:
<TABLE>
<CAPTION>
UNITED FOODS VALUATION
<S> <C>
Purchase Price for United Foods Equity $ 3.50
Fully Diluted Shares Outstanding 6,810
Total Equity Consideration $23,835
-------
Plus: Net Debt as of 2/28/99 $48,771
Total Enterprise Valuation $72,606
=======
</TABLE>
<TABLE>
<CAPTION>
MULTIPLE OF UF
2/28/99 TOTAL ENTERPRISE VALUE
------- ----------------------
<S> <C> <C>
Revenue $206,760 0.4x
EBITDA $ 12,338 5.9x
</TABLE>
<TABLE>
<CAPTION>
MULTIPLE OF UF
TOTAL EQUITY CONSIDERATION
--------------------------
<S> <C> <C>
LTM EPS $ 0.08 43.8x
1999 Est. Cal. EPS 0.06 55.4x
2000 Est. Cal. EPS 0.07 47.0x
</TABLE>
3
<PAGE> 6
TRANSACTION OVERVIEW - PROCESS AND DEVELOPMENT
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Date Location Attendees Purpose
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
9/25/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Special Committee hires J.C. Bradford & Co.
Doramus, Trauger, & Ney to render fairness opinion.
J.C. Bradford & Co.
9/29/98 United Foods, Inc. - Bells, TN Jim Tankersley Due diligence with Company management
United Foods, Inc.
J.C. Bradford & Co.
10/2/98 J.C. Bradford & Co. - Nashville, TN United Foods, Inc. Due diligence with Company management
Doramus, Trauger, & Ney
J.C. Bradford & Co.
10/5/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Presentation of initial findings, preliminary
Doramus, Trauger, & Ney valuation
J.C. Bradford & Co.
10/14/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Special Committee authorizes J.C. Bradford &
Doramus, Trauger, & Ney Co. to negotiate for higher price for
J.C. Bradford & Co. minority shareholders.
10/20/98 United Foods, Inc. - Bells, TN Jim Tankersley Negotiation Meeting I
Doramus, Trauger, & Ney
J.C. Bradford & Co.
10/27/98 J.C. Bradford & Co. - Nashville, TN Jim Tankersley Negotiation Meeting II
Doramus, Trauger, & Ney
J.C. Bradford & Co.
11/3/98 J.C. Bradford & Co. - Nashville, TN Jim Tankersley Negotiation Meeting III
Doramus, Trauger, & Ney
J.C. Bradford & Co.
11/18/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Presentation of negotiations
Doramus, Trauger, & Ney
J.C. Bradford & Co.
12/8/98 J.C. Bradford & Co. - Nashville, TN Special Committee Update of negotiations
Doramus, Trauger, & Ney
J.C. Bradford & Co.
12/15/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Special Committee authorizes deal @ $3.50 per
Doramus, Trauger, & Ney share, with cleansing vote, appraisal rights
J.C. Bradford & Co. and other contingencies.
12/21/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee J.C. Bradford & Co. updates analysis
Doramus, Trauger, & Ney
J.C. Bradford & Co.
1/20/99 J.C. Bradford & Co. - Nashville, TN Special Committee J.C. Bradford & Co. delivers opinion
Doramus, Trauger, & Ney
J.C. Bradford & Co.
</TABLE>
4
<PAGE> 7
TRANSACTION OVERVIEW - ORIGIN OF TRANSACTION
- --------------------------------------------------------------------------------
SEPTEMBER 16, 1998
The chairman and chief executive officer of United Foods, Inc., James I.
Tankersley, and his family announced that they were going to acquire the
remaining shares of the Company's common stock that are not already owned by Mr.
Tankersley, his wife or his children (The Tankersley Group) for $3.00 per share.
On receiving the proposal, the Board of Directors of the Company appointed two
outside directors, John Wilder and Joe Geary, to a Special Committee. The Board
charged the committee with evaluating whether the proposal is in the best
interests of the Company and its shareholders other than the Tankersley Group.
The Special Committee employed J.C. Bradford to assist in evaluation of the
fairness of the proposed transaction.
5
<PAGE> 8
TRANSACTION OVERVIEW - PROCESS AND DEVELOPMENT
- --------------------------------------------------------------------------------
PRICE NEGOTIATIONS
On three separate occasions, J.C. Bradford & Co and the Counsel for the Special
Committee met with Tankersley Group to negotiate the offer price up from $3.00
per share.
J.C. Bradford & Co. presented its findings to the Tankersley Group and argued
that based upon its analysis a higher price was in order.
The Tankersley Group proposed that the Special Committee and its representatives
present a price that would be fair from a financial point of view.
The Special Committee and J.C. Bradford & Co. initially proposed $3.85 per
share. In subsequent negotiations, the Tankersley Group and the Special
Committee agreed to $3.50 per share (a 16% premium to original offer).
NEGOTIATION OF OTHER TERMS
Original deal did not specifically state other terms and conditions.
J.C. Bradford & Special Committee proposed a cleansing vote that would not
include members of the Tankersley family and appraisal rights.
The final terms include a cleansing vote that includes all minority shareholders
and appraisal rights limited to 250,000 shares.
6
<PAGE> 9
TRANSACTION OVERVIEW - REASONS FOR TRANSACTION
- --------------------------------------------------------------------------------
- - Overcapacity, consolidation of competitors and customers , slotting
pressures and the prominence of farmer cooperatives have created severe
margin and market share pressures in the industry. These circumstances
prevent public investors from placing an attractive multiple on the
Company's earnings. With inadequate return on investment for a public
company, and with little prospect for better stock prices, the Company
knows of only one other public company still primarily in the frozen
vegetable packaging business (i.e., Hanover Foods).
- - There is no liquidity for shares of the Company's common stock. Sale of
any significant number of shares has the effect of driving the price down
even further. Therefore, a "non-market" transaction would be best for the
public shareholders.
7
<PAGE> 10
TRANSACTION OVERVIEW - REASONS FOR TRANSACTION
- --------------------------------------------------------------------------------
The Company has no current need for additional equity funds in order to
continue its operations. Therefore, it derives no advantage from remaining
a public company in terms of access to capital.
- - There is a cost to the Company of remaining registered and reporting under
the Securities Exchange Act of 1934, which cost would be avoided were the
Company to go private.
- - The Jim Tankersley Family does not wish to cause the Company to be sold to
or merged with an entity not controlled by them, and would not vote in
favor of such a transaction. Moreover, the Jim Tankersley Family believes
that the Merger Price is fair, from a financial point of view, to all of
the shareholders of the Company (other than the Jim Tankersley Family).
8
<PAGE> 11
TRANSACTION OVERVIEW - PROJECTIONS
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH AFTER FY 2000)
PROJECTED INCOME STATEMENTS
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Historical Projected
5/9/99 5:49 PM 1999 2000 2001 2002 2003 2004
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $206,760 $212,370 $212,370 $212,370 $212,370 $212,370
Cost of sales 167,408 172,978 172,978 172,978 172,978 172,978
-------- -------- -------- -------- -------- --------
Gross profit 39,352 39,392 39,392 39,392 39,392 39,392
General and administrative, net dep 11,172 10,129 10,129 10,129 10,129 10,129
Direct selling expenses 15,842 15,041 15,041 15,041 15,041 15,041
-------- -------- -------- -------- -------- --------
Total operating expenses 27,014 25,170 25,170 25,170 25,170 25,170
EBITDA 12,338 14,222 14,222 14,222 14,222 14,222
Depreciation 7,119 8,348 8,348 8,348 8,348 8,348
-------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,119 8,348 8,348 8,348 8,348 8,348
Total operating income 5,219 5,874 5,874 5,874 5,874 5,874
Interest expense 4,138 5,190 5,030 4,666 4,604 4,540
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense 10 -- -- -- -- --
Other (income) 145 -- -- -- -- --
-------- -------- -------- -------- -------- --------
Other expenses (income) 4,293 5,190 5,030 4,666 4,604 4,540
Pre-tax income 926 684 844 1,208 1,270 1,334
Provision for income taxes 406 260 321 459 482 507
-------- -------- -------- -------- -------- --------
Net income $ 520 $ 424 $ 523 $ 749 $ 787 $ 827
======== ======== ======== ======== ======== ========
</TABLE>
9
<PAGE> 12
SUMMARY OF ANALYSIS - STRENGTHS OF $3.50 OFFER
- --------------------------------------------------------------------------------
- - Poor industry dynamics imply little future growth and increasing
competition
- - 40% and 44% premiums to the last trade stock prices for the Class A and
Class B shares, respectively, before announcement
- - Premiums of 30% and 40% over last trade prices for the Class A Shares
($2.688 on 4/30/99) and Class B Shares ($2.50 on 5/6/99), respectively
- - Comparable company earnings multiples imply valuation significantly below
$3.50 (offer represents nearly 44x LTM EPS), especially with regard to the
most comparable company
- - EBITDA multiples for comparable companies with total market capitalization
under $100 MM imply a valuation below $3.50
10
<PAGE> 13
SUMMARY OF ANALYSIS - STRENGTHS OF $3.50 OFFER
- --------------------------------------------------------------------------------
- - Owing to Tankersley control, no likelihood of other buyers
- - Discounted cash flow analysis using management projections for 2000 and
most likely growth rates yields values below $3.50
- - Only 17% of days during 1998 and 1999 when the stock traded did the price
reach $3.50
- - Company completed a $2.50/share tender offer in July 1997 for 4.0 million
aggregate Class A & B Shares (original offer was for 2.0 million shares)
11
<PAGE> 14
SUMMARY OF ANALYSIS - WEAKNESSES OF $3.50 OFFER
- --------------------------------------------------------------------------------
- - Offer is roughly half of book value
- - Enterprise Value/LTM EBITDA is 5.9x, which, is below average of comparable
group
- - Comparable transaction analysis yields valuations above $3.50 per share
12
<PAGE> 15
SUMMARY OF ANALYSIS - COMPARABLE COMPANY ANALYSIS
COMPARABLE COMPANY ANALYSIS (SMALL CAP) examines the consideration to be
paid for United Foods compared to market valuations of publicly held food
distribution companies with total market capitalization under $100 Million.
<TABLE>
<CAPTION>
AVERAGE TRANSACTION % PREMIUM/
MULTIPLE BASIS MULTIPLE MULTIPLE (DISCOUNT)
-------------- -------- -------- ----------
<S> <C> <C> <C>
LTM Earnings 9.4x 43.8x 366.5%
LTM EBITDA 4.7x 5.9x 26.3%
Book Value 1.1x 0.5x (52.4%)
</TABLE>
Financial and operating data were reviewed in connection with this analysis
for the following companies in the food distribution industry:
Hanover Foods Corp. Smithfield Companies, Inc. Sylvan, Inc.
[J.C. Bradford & Co.]
13
<PAGE> 16
SUMMARY OF ANALYSIS - COMPARABLE COMPANY ANALYSIS
COMPARABLE COMPANY ANALYSIS examines the consideration to be paid for United
Foods compared to market valuations of publicly held food distribution
companies.
<TABLE>
<CAPTION>
ADJUSTED AVERAGE
COMPARABLE COMPANY TRANSACTION % PREMIUM/
MULTIPLE BASIS MULTIPLE MULTIPLE (DISCOUNT)
-------------- -------- -------- ----------
<S> <C> <C> <C>
LTM Earnings 16.3x 43.8x 168.7%
1999 Earnings Multiple 13.4x 55.4x 313.7%
2000 Earnings Multiple 11.7x 47.0x 302.4%
LTM EBITDA 7.4x 5.9x (20.6%)
Book Value 1.7x 0.5x (69.4%)
</TABLE>
Financial and operating data were reviewed in connection with this analysis
for the following companies in the food distribution industry:
<TABLE>
<S> <C> <C>
Chiquita Brands Intl. Michael Foods, Inc. Sylvan, Inc.
Dean Foods Co. Performance Food Group Co. Tyson Foods, Inc.
Fresh America Corp. Seneca Foods Corp. Vlasic Foods International
Hanover Foods Corp. Smithfield Companies, Inc.
Mccormick & Co. Smucker (Jm) Co.
</TABLE>
[J.C. Bradford & Co.]
14
<PAGE> 17
SUMMARY OF ANALYSIS - COMPARABLE TRANSACTION ANALYSIS
COMPARABLE TRANSACTION ANALYSIS examines the consideration to be paid for
United Foods, Inc. compared to multiples at which food distribution
companies have been acquired.
<TABLE>
<CAPTION>
AVERAGE
COMPARABLE
TRANSACTION TRANSACTION % PREMIUM/
MULTIPLE BASIS MULTIPLE MULTIPLE (DISCOUNT)
-------------- -------- -------- ----------
<S> <C> <C> <C>
Book Value Multiple 3.6x 0.5x (85.5%)
LTM Net Income Multiple 23.9x 43.8x 83.4%
LTM EBITDA Multiple 12.4x 5.9x (52.6%)
</TABLE>
[J.C. Bradford & Co.]
15
<PAGE> 18
SUMMARY OF ANALYSIS - DISCOUNTED CASH FLOW ANALYSIS
DISCOUNTED CASH FLOW ANALYSIS examines the cash flows of United Foods, Inc.
for the next five years.
The following chart compares the results of this methodology to the price per
share being paid in the transaction:
UNITED FOODS, INC.
SUMMARY OF DISCOUNTED CASH FLOW METHODOLOGY
<TABLE>
<CAPTION>
PREMIUM/
ACQUISITION (DISCOUNT) TO
CASH FLOW EBITDA EXIT MULTIPLE METHOD VALUATION PRICE THE AVERAGE
------------------------------------- --------- ----- -----------
<S> <C> <C> <C>
Discount Range: 10%
Multiple: 6.0x
Add back: $750,000
Current Per Share Value - 0% Growth Case(1) $ 2.13 $ 3.50 64.3%
Current Per Share Value - 2.5% Growth Case(1) $ 2.77 $ 3.50 26.5%
</TABLE>
(1) Based on 6,809,929 shares outstanding.
[J.C. Bradford & Co.]
16
<PAGE> 19
SUMMARY OF ANALYSIS - PREMIUMS ANALYSIS
PREMIUMS ANALYSIS. The premium paid to United Food's current and recent
trading prices compares favorably to premiums paid in similar public cash
transactions.
<TABLE>
<CAPTION>
PREMIUMS PAID % PREMIUM/
TRANSACTION (DISCOUNT)
1996 - 1999 PREMIUM TO AVERAGE
----------- ------- ----------
<S> <C> <C> <C>
PURCHASE FOR CASH
1 Week Prior 37.5% 30.2% (7.2%)
1 Month Prior 44.0% 33.3% (10.6%)
</TABLE>
Source: Securities Data Company
(1) Premium period is relative to the close on the day of announcement.
[J.C. Bradford & Co.]
17
<PAGE> 20
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY (TOTAL MARKET CAPITALIZATION LESS THAN $100 MM)
COMPARABLE COMPANY SUMMARY VALUATION
AVERAGE MULTIPLES (IN THOUSANDS)
<TABLE>
<CAPTION>
PRICE TO TRAILING EARNINGS MULTIPLE BASIS: LTM EBITDA MULTIPLE BASIS:
<S> <C> <C> <C>
LTM EARNINGS ENDED 2/28/99 $ 520 LTM EBITDA ENDED 2/28/99 $ 12,338
AVERAGE MULTIPLE 9.38 X AVERAGE MULTIPLE 4.66 X
_________ __________
VALUATION $ 4,877 57,474
VALUATION PER SHARE (1) $ 0.72 LESS TOTAL DEBT, NET OF CASH ON 2/28/99 48,771
__________
VALUATION $ 8,703
VALUATION PER SHARE (1) $ 1.28
</TABLE>
<TABLE>
<CAPTION>
BOOK VALUE MULTIPLE BASIS:
<S> <C>
BOOK VALUE AS OF 2/28/99 $ 46,268
AVERAGE MULTIPLE 1.08 X
__________
VALUATION 50,074
VALUATION PER SHARE (1) $ 7.35
</TABLE>
(1) Based on 6.8 million shares outstanding.
18
<PAGE> 21
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
COMPARABLE COMPANY SUMMARY VALUATION
OVERALL ADJUSTED AVERAGE MULTIPLES
(In thousands)
<TABLE>
<CAPTION>
PRICE TO TRAILING EARNINGS MULTIPLE BASIS: PRICE TO CALENDAR 1999 EARNINGS MULTIPLE BASIS:
<S> <C> <C> <C>
LTM EARNINGS ENDED 2/28/99 $ 520 ESTIMATED EARNINGS ENDED 12/31/99 $ 430
ADJUSTED AVERAGE MULTIPLE 16.28 X ADJUSTED AVERAGE MULTIPLE 13.39 X
--------- --------
VALUATION $ 8,467 VALUATION $ 5,761
--------- --------
VALUATION PER SHARE (1) $ 1.24 VALUATION PER SHARE (1) $ 0.85
--------- --------
LTM EBITDA MULTIPLE BASIS:
LTM EBITDA ENDED 2/28/99 $ 12,338
ADJUSTED AVERAGE MULTIPLE 7.41 X
---------
91,418
LESS TOTAL DEBT, NET OF CASH 2/28/99 48,771
---------
VALUATION $ 42,647
---------
VALUATION PER SHARE (1) $ 6.26
---------
</TABLE>
<TABLE>
<CAPTION>
PRICE TO CALENDAR 2000 EARNINGS MULTIPLE BASIS:(2)
<S> <C>
ESTIMATED EARNINGS ENDED 12/31/00 $ 507
ADJUSTED AVERAGE MULTIPLE 11.69 X
--------
VALUATION $ 5,923
--------
VALUATION PER SHARE (1) $ 0.87
--------
EQUITY TO BOOK VALUE MULTIPLE BASIS:
BOOK VALUE 2/28/99 $ 46,268
ADJUSTED AVERAGE MULTIPLE 1.68 X
--------
VALUATION $ 77,859
--------
VALUATION PER SHARE (1) $ 11.43
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(2) Based on 0% growth, base case projection.
19
<PAGE> 22
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY (TOTAL MARKET CAPITALIZATION LESS THAN $100 MM)
COMPARABLE COMPANY MARKET MULTIPLES
<TABLE>
<CAPTION>
5-YEAR
LTM LTM CAL. 1999 CAL. 2000 PROJECTED 52 WEEK
COMPANY TICKER END EPS EST. EPS EST. EPS(1) GROWTH RATE HIGH LOW
- ------- ------ --- --- -------- ----------- ----------- ---- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods-Cl A UFD.A Feb 99 0.08 0.06 0.07 NA 3.69 2.13
Hanover Foods Corp/Pa 3HNFSA Feb 99 12.27 NA NA NA 100.00 50.00
Smithfield Companies Inc HAMS Dec 98 0.62 NA NA NA 8.63 6.25
Sylvan Inc SYLN Mar 99 0.97 1.05 1.15 NA 18.75 9.50
</TABLE>
<TABLE>
<CAPTION>
BASED ON CLOSING STOCK PRICE AS OF 5/7/99
PRICE/ PRICE/ CAL. 1999 CAL. 2000
PRICE PRICE/ CAL. 1999 CAL. 2000 PE / PE /
COMPANY PER SHARE LTM EPS EST. EPS EST. EPS GROWTH RATE GROWTH RATE
- ------- --------- ------- -------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
United Foods-Cl A 3.50 43.8 x NM x NM x NM NM
Hanover Foods Corp/Pa 59.38 4.8 NA NA NM NM
Smithfield Companies Inc 7.81 12.6 NA NA NM NM
Sylvan Inc 10.38 10.7 NM NM NM NM
----------------------------------------------------
Median: 10.7 x NM x NM x NM NM
Average: 9.4 NM NM NM NM
----------------------------------------------------
</TABLE>
(1) When calendar 2000 EPS Multiple is not available it is approximated using
company's 5-year projected growth rate.
20
<PAGE> 23
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY (TOTAL MARKET CAPITALIZATION LESS THAN $100 MM)
COMPARABLE COMPANY MARKET CAPITALIZATION MULTIPLES
<TABLE>
<CAPTION>
(IN THOUSANDS)
TOTAL TOTAL
5/7/99 NUMBER OF TOTAL DEBT, MARKET BOOK LTM
COMPANY TICKER PRICE SHARES EQUITY NET OF CASH CAPITAL VALUE EBIT
- ------- ------ ----- ------ ------ ----------- ------- ----- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods-Cl A UFD.A 3.50 6,810 23,835 48,771 72,606 46,268 5,443
Hanover Foods Corp/Pa 3HNFSA 59.38 716 42,533 45,157 87,690 61,654 0
Smithfield Companies Inc HAMS 7.81 2,341 18,289 (7,259) 11,030 15,738 4
Sylvan Inc SYLN 10.38 6,497 67,406 29,095 96,501 48,325 872
</TABLE>
<TABLE>
<CAPTION>
(IN THOUSANDS)
MARKET EQUITY/
LTM CAP./ BOOK
COMPANY EBITDA EBITDA VALUE
- ------- ------ ------ -----
<S> <S> <C> <C>
United Foods-Cl A 12,338 5.9 x 0.52 x
Hanover Foods Corp/Pa 24,129 3.6 0.69
Smithfield Companies Inc 2,325 4.7 1.16
Sylvan Inc 17,242 5.6 1.39
-----------------
Median: 4.7 x 1.16 x
Average: 4.7 1.08
-----------------
</TABLE>
21
<PAGE> 24
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
COMPARABLE COMPANY MARKET MULTIPLES
<TABLE>
<CAPTION>
5-YEAR
LTM LTM CAL. 1999 CAL. 2000 PROJECTED 52 WEEK
COMPANY TICKER END EPS EST. EPS EST. EPS(1) GROWTH RATE HIGH LOW
- ------- ------ --- --- -------- ----------- ----------- ---- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods-Cl A UFD.A Feb 99 0.08 0.06 0.07 NA 3.69 2.13
Chiquita Brands Intl CQB Mar 98 $0.54 $0.95 $1.17 11.0% $14.69 $7.94
Dean Foods Co DF Feb 99 1.94 2.42 2.81 15.9% 57.44 32.94
Fresh America Corp FRES Dec 98 1.36 1.76 2.08 21.7% 23.50 9.50
Hanover Foods Corp/Pa 3HNFSA Feb 99 12.27 NA NA NA 100.00 50.00
Mccormick & Co MCCRK Feb 99 1.46 1.61 1.77 10.4% 36.44 26.63
Michael Foods Inc MIKL Mar 99 1.86 2.04 2.35 14.7% 31.13 16.69
Performance Food Group Co PFGC Dec 98 1.24 1.48 1.77 20.4% 30.50 17.63
Seneca Foods Corp -Cl B SENEB Dec 98 (1.18) NA NA NA 16.75 10.00
Smithfield Companies Inc HAMS Dec 98 0.62 NA NA NA 8.63 6.25
Smucker (Jm) Co-Cl A SJM.A Jan 99 1.29 1.40 1.51 8.0% 25.69 20.50
Sylvan Inc SYLN Mar 99 0.97 1.05 1.15 NA 18.75 9.50
Tyson Foods Inc-Cl A TSN Dec 98 0.82 1.30 1.50 15.6% 26.00 16.31
Vlasic Foods International VL Jan 99 0.44 0.76 0.84 11.0% 24.81 7.75
Median:
Average:
Adjusted Average (excludes high and low):
</TABLE>
<TABLE>
<CAPTION>
BASED ON CLOSING STOCK PRICE AS OF 5/7/99
PRICE/ PRICE/ CAL. 1999 CAL. 2000
PRICE PRICE/ CAL. 1999 CAL. 2000 PE / PE /
COMPANY PER SHARE LTM EPS EST. EPS EST. EPS GROWTH RATE GROWTH RATE
- ------- --------- ------- -------- -------- ----------- -----------
<S> <C> <S> <C> <C> <C> <C>
United Foods-Cl A 3.50 43.8 x 55.4 x 47.0 x NM NM
Chiquita Brands Intl $9.31 17.2 9.8 8.0 89.1% 72.4%
Dean Foods Co 38.00 19.6 15.7 13.5 98.6% 85.1%
Fresh America Corp 15.94 11.7 9.1 7.7 41.8% 35.4%
Hanover Foods Corp/Pa 59.38 4.8 NA NA NM NM
Mccormick & Co 30.50 20.9 19.0 17.2 182.0% 164.8%
Michael Foods Inc 22.63 12.2 11.1 9.6 75.6% 65.8%
Performance Food Group Co 25.50 20.6 17.2 14.4 84.5% 70.5%
Seneca Foods Corp-Cl B 14.25 NM NA NA NM NM
Smithfield Companies Inc 7.81 12.6 NA NA NM NM
Smucker (Jm) Co-Cl A 22.00 17.1 15.8 14.6 196.9% 182.4%
Sylvan Inc 10.38 10.7 9.9 9.0 NM NM
Tyson Foods Inc-Cl A 20.56 25.1 15.9 13.7 101.7% 87.9%
Vlasic Foods International 8.94 20.3 11.8 10.6 107.4% 96.8%
--------------------------------------------------------------
Median: 17.1 x 13.7 x 12.1 x 98.6% 85.1%
Average: 16.1 13.5 11.8 108.6% 95.7%
Adjusted Average (excludes high and low): 16.3 13.4 11.7 105.6% 91.9%
--------------------------------------------------------------
</TABLE>
(1) When calendar 2000 EPS Multiple is not available it is approximated using
company's 5-year projected growth rate.
22
<PAGE> 25
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
COMPARABLE COMPANY MARKET CAPITALIZATION MULTIPLES
<TABLE>
<CAPTION>
(IN THOUSANDS)
TOTAL TOTAL
5/7/99 NUMBER OF TOTAL DEBT, MARKET BOOK
COMPANY TICKER PRICE SHARES EQUITY NET OF CASH CAPITAL VALUE
- ------- ------ ----- ------ ------ ----------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
United Foods-Cl A UFD.A 3.50 6,810 23,835 48,771 72,606 46,268
Chiquita Brands Intl CQB $9.31 65,723 $611,880 1,082,979 $1,694,859 793,980
Dean Foods Co DF 38.00 39,417 1,497,846 520,662 2,018,508 723,186
Fresh America Corp FRES 15.94 5,203 82,923 49,621 132,544 50,562
Hanover Foods Corp/Pa 3HNFSA 59.38 716 42,533 45,157 87,690 61,654
Mccormick & Co MCCRK 30.50 71,448 2,179,166 422,649 2,601,815 367,586
Michael Foods Inc MIKL 22.63 20,937 473,701 164,060 637,761 244,149
Performance Food Group Co PFGC 25.50 13,507 344,437 89,889 434,326 152,416
Seneca Foods Corp-Cl B SENEB 14.25 6,154 87,695 216,655 304,350 137,422
Smithfield Companies Inc HAMS 7.81 2,341 18,289 (7,259) 11,030 15,738
Smucker (Jm) Co-Cl A SJM.A 22.00 29,150 641,297 (5,824) 635,473 315,416
Sylvan Inc SYLN 10.38 6,497 67,406 29,095 96,501 48,325
Tyson Foods Inc-Cl A TSN 20.56 230,702 4,743,810 1,963,700 6,707,510 2,016,200
Vlasic Foods International VL 8.94 45,502 406,674 539,074 945,748 125,498
</TABLE>
<TABLE>
<CAPTION>
(IN THOUSANDS)
MARKET EQUITY/
LTM LTM CAP./ BOOK
COMPANY EBIT EBITDA EBITDA VALUE
- ------- ---- ------ ------ -----
<S> <S> <C> <C> <C>
United Foods-Cl A 5,443 12,338 5.9 x 0.52 x
Chiquita Brands Intl $4,703 $265,000 6.4 0.77
Dean Foods Co 3,142 241,880 8.3 2.07
Fresh America Corp 908 18,345 7.2 1.64
Hanover Foods Corp/Pa 0 24,129 3.6 0.69
Mccormick & Co 3,662 243,066 10.7 5.93
Michael Foods Inc 12,750 116,237 5.5 1.94
Performance Food Group Co 1,988 40,282 10.8 2.26
Seneca Foods Corp-Cl B (4) 43,198 7.0 0.64
Smithfield Companies Inc 4 2,325 4.7 1.16
Smucker (Jm) Co-Cl A 683 80,288 7.9 2.03
Sylvan Inc 872 17,242 5.6 1.39
Tyson Foods Inc-Cl A (20,500) 658,600 10.2 2.35
Vlasic Foods International (25,827) 100,752 9.4 3.24
-----------------
Median: 7.2 x 1.94 x
Average: 7.5 2.01
Adjusted Average (excludes high and low): 7.4 1.68
-----------------
</TABLE>
23
<PAGE> 26
COMPARABLE COMPANY ANALYSIS
UNITED FOODS, INC. grows, processes, markets and distributes food products.
The Company's products include frozen asparagus, black-eyed peas,
broccoli, Brussel sprouts, carrots, cauliflower, corn, green beans, green
peas, green peppers, lima beans, various vegetable mixes and other
vegetables. United's products are sold to large national grocery chains
and independent food stores.
24
<PAGE> 27
COMPARABLE COMPANY ANALYSIS
- DESCRIPTION OF COMPARABLE COMPANIES
CHIQUITA BRANDS INTERNATIONAL, INC. produces, markets and distributes
bananas and other fresh and processed food products sold under the
"Chiquita" brand name. The Company's fresh products include mangoes, kiwi
and citrus and other tropical fruit. Chiquita also produces private-label
and branded canned vegetable and related products, fruit and vegetable
juices and other products.
DEAN FOODS COMPANY processes, distributes and sell dairy, pickle, specialty
and vegetable products. Many of the Company's products are sold under
private labels. Dean's products include milk, ice cream and extended
shelf-life dairy products; salad dressings, dips and puddings; and
pickles, relishes and canned vegetables. The Company also operates a
trucking business.
FRESH AMERICA CORPORATION is an integrated food distribution management
company for fresh produce and other perishable refrigerated products. The
Company operates in 43 states and Canada through 22 distribution centers.
Fresh America operates produce departments in 342 "Sam's Club" stores.
"Sam's" is a division of Wal-Mart Stores, Inc.
HANOVER FOODS CORPORATION processes vegetable products. The Company grows,
processes, cans, freezes, freeze-dries, packages, markets and distributes
its products under its own trademarks, as well as other branded, customer
and private labels. Hanover operates in the United States.
25
<PAGE> 28
COMPARABLE COMPANY ANALYSIS
- DESCRIPTION OF COMPARABLE COMPANIES
MCCORMICK & COMPANY INCORPORATED is a specialty food company. The Company
manufactures spices, seasonings, flavorings, and other specialty food
products and sells such products to the retail food market, the food
service market and to industrial food processors throughout the world.
McCormick, through its subsidiaries, also manufactures and markets
plastic and packaging products.
MICHAEL FOODS, INC. is a diversified food processor and distributor with
interests in eggs and egg products, refrigerated case products, frozen
and refrigerated potato products and dairy products. The Company sells
these items to supermarkets, food service distributors, manufacturers and
fast food operators in Minnesota and surrounding states.
PERFORMANCE FOOD GROUP CO. markets and distributes food and food-related
products to restaurants, hotels, cafeterias, schools and hospitals in the
United States. The Company's items include private label food products,
canned and dry groceries, poultry, meats, seafood, fresh produce, paper
and cleaning supplies and restaurant equipment.
SENECA FOODS CORPORATION is primarily a fruit and vegetable processing
company with manufacturing facilities located throughout the United
States. The Company's products are sold under the "Seneca," "Libby's,"
and "TreeSweet" labels, as well as through the private label and
industrial markets. Seneca also, under alliance with The Pillsbury
Company, produces canned and frozen vegetables.
26
<PAGE> 29
COMPARABLE COMPANY ANALYSIS
- DESCRIPTION OF COMPARABLE COMPANIES
THE SMITHFIELD COMPANIES, INC. produces and markets a wide range of branded
food products to the retail grocery and food service industries. The
Company's products include frozen barbecues and chilies, cured hams and
other pork products, peanuts and cashews. Smithfield's products are sold
on a wholesale basis, through catalogs and through its retail stores.
THE J.M. SMUCKER COMPANY manufactures and markets food products on a
worldwide basis. The Company's principal products include fruit spreads,
dessert toppings, peanut butter, industrial fruit products, fruit and
vegetable juices, juice beverages, syrups, condiments and gift packages.
Smucker's products are marketed under trademarks such as "Smucker's,"
"Simply Fruit" and "Goober."
SYLVAN INC. produces and distributes mushroom spawn and fresh mushrooms. The
Company also distributes a variety of other value-added products and
services for use by mushroom growers and produces fresh mushrooms for
sale to retailers, distributors and processors of mushroom products in
the United States. Sylvan operates in the United States, Europe and
Australia.
TYSON FOODS, INC. produces, markets and distributes a variety of food
products. The Company's products include value-enhanced poultry, fresh
and frozen poultry, value-enhanced seafood products, fresh and frozen
seafood products, prepared foods and other products such as flour and
corn tortillas and chips. Tyson also has live swine, animal feed and pet
food ingredient operations.
27
<PAGE> 30
COMPARABLE COMPANY ANALYSIS
- DESCRIPTION OF COMPARABLE COMPANIES
VLASIC FOODS INTERNATIONAL manufactures and markets branded convenience food
products in the frozen food, grocery product, and agricultural product
segments. The Company's products include "Swanson" and "Freshbake" frozen
foods, "Vlasic" pickles and condiments, "Open Pit" barbecue sauce, and
other brands. Vlasic's products are sold in the United States and other
countries.
28
<PAGE> 31
COMPARABLE TRANSACTION ANALYSIS
UNITED FOODS, INC.
COMPARABLE TRANSACTION SUMMARY VALUATION
FOOD DISTRIBUTION COMPANIES(*)
<TABLE>
<CAPTION>
(IN 000S, EXCEPT PER SHARE)
PRICE TO TRAILING EARNINGS MULTIPLE BASIS: LTM EBIT MULTIPLE BASIS:
<S> <C> <C> <C>
LTM EARNINGS ENDED 2/28/99 $520 LTM EBIT ENDED 2/28/99 $5,219
ADJUSTED AVERAGE MULTIPLE 23.9 X ADJUSTED AVERAGE MULTIPLE 16.4 X
------- -------
VALUATION $12,406
85,396
VALUATION PER SHARE (1) $1.82
LESS TOTAL DEBT, NET OF CASH ON 2/28/99 48,771
-------
VALUATION $36,625
VALUATION PER SHARE (1) $5.38
LTM EBITDA MULTIPLE BASIS: LTM REVENUES MULTIPLE BASIS:
LTM EBITDA ENDED 2/28/99 $12,338 LTM REVENUES ENDED 2/28/99 $206,760
ADJUSTED AVERAGE MULTIPLE 12.4 X ADJUSTED AVERAGE MULTIPLE 1.1 X
-------- --------
153,308 221,045
LESS TOTAL DEBT, NET OF CASH ON 2/28/99 48,771 LESS TOTAL DEBT, NET OF CASH ON 2/28/99 48,771
-------- --------
VALUATION $104,537 VALUATION $172,274
VALUATION PER SHARE (1) $15.35 VALUATION PER SHARE (1) $25.30
BOOK VALUE MULTIPLE BASIS:
BOOK VALUE AT 2/28/98 $46,268
ADJUSTED AVERAGE MULTIPLE 3.6 X
--------
VALUATION $164,677
VALUATION PER SHARE $24.18
</TABLE>
(1) Based on 6.8 million shares outstanding.
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/10/99.
29
<PAGE> 32
COMPARABLE TRANSACTION ANALYSIS
UNITED FOODS, INC.
COMPARABLE TRANSACTION SUMMARY VALUATION
MULTIPLES BASED ON AGRILINK ACQUISITION OF DEAN FOODS VEGETABLE DIVISION
<TABLE>
<CAPTION>
(IN 000S, EXCEPT PER SHARE)
LTM REVENUES MULTIPLE BASIS: LTM EBIT MULTIPLE BASIS:
<S> <C> <C> <C>
LTM REVENUES ENDED 2/28/99 $206,760 LTM EBIT ENDED 2/28/99 $5,219
TRANSACTION MULTIPLE 0.8 X TRANSACTION MULTIPLE 11.4 X
-------- ------
160,584 59,329
LESS TOTAL DEBT, NET OF CASH ON 2/28/99 48,771 LESS TOTAL DEBT, NET OF CASH ON 2/28/99 48,771
-------- ------
VALUATION $111,813 VALUATION $10,558
VALUATION PER SHARE $16.42 VALUATION PER SHARE $1.55
</TABLE>
<TABLE>
<CAPTION>
BOOK VALUE MULTIPLE BASIS:
<S> <C>
BOOK VALUE AT 2/28/98 $46,268
TRANSACTION MULTIPLE 1.7 X
-------
VALUATION 77,113
VALUATION PER SHARE $11.32
</TABLE>
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/10/99.
30
<PAGE> 33
COMPARABLE TRANSACTION ANALYSIS
UNITED FOODS, INC.
COMPARABLE TRANSACTION SUMMARY VALUATION
MULTIPLES BASED ON AGRILINK ACQUISITION OF DEAN FOODS VEGETABLE DIVISION
<TABLE>
<CAPTION>
(IN 000S, EXCEPT PER SHARE)
LTM EBIT MULTIPLE BASIS: LTM EBIT MULTIPLE BASIS:
<S> <C> <C> <C>
LTM EBIT ENDED 2/28/99 $5,219 LTM EBIT ENDED 2/28/99 $5,219
PLUS $500,000 COST SAVINGS $500 PLUS $750,000 COST SAVINGS $750
------ ------
$5,719 $5,969
TRANSACTION MULTIPLE 11.4 X TRANSACTION MULTIPLE 11.4 X
------ ------
65,013 67,855
LESS TOTAL DEBT, NET OF CASH ON 2/28/99 48,771 LESS TOTAL DEBT, NET OF CASH ON 2/28/99 48,771
------ ------
VALUATION $16,242 VALUATION $19,084
VALUATION PER SHARE $2.39 VALUATION PER SHARE $2.80
</TABLE>
<TABLE>
<CAPTION>
LTM EBIT MULTIPLE BASIS:
<S> <C>
LTM EBIT ENDED 2/28/99 $5,219
PLUS $1,000,000 COST SAVINGS $1,000
------
$6,219
TRANSACTION MULTIPLE 11.4 X
------
70,697
LESS TOTAL DEBT, NET OF CASH ON 2/28/99 48,771
-------
VALUATION $21,926
VALUATION PER SHARE $3.22
</TABLE>
31
<PAGE> 34
COMPARABLE TRANSACTION ANALYSIS
FOOD DISTRIBUTION COMPANIES(*)
ANALYSIS OF M&A TRANSACTION MULTIPLES SINCE 1/1/90
<TABLE>
<CAPTION>
(DOLLARS IN MILLIONS)
AGGREG. EQUITY CONSID.
AGGREGATE LEVERED AS A MULTIPLE OF:
DATE EQUITY AGGREGATE LTM NET BOOK
ANNOUNCED ACQUIROR / TARGET CONSIDERATION CONSIDERATION(2) INCOME VALUE
--------- ----------------- ------------- ---------------- ------ -----
<S> <C> <C> <C> <C> <C>
06/07/90 ConAgra Inc $1,336.0 $3,294.0 NM 1.5
Beatrice Co
09/28/90 Shareholders $1,607.0 $1,607.0 73.4 2.0
Pet Inc(Whitman Corp)
10/19/90 MANO Holdings $42.5 $42.5 17.0 3.0
B Manischewitz Co
04/19/91 ConAgra Inc $408.4 $408.4 20.8 3.8
Golden Valley Microwave Foods
07/18/91 HJ Heinz Co $500.0 $500.0 NA NA
JL Foods Inc(John Labatt Ltd)
12/20/91 CPC International Inc $115.0 $115.0 NA NA
Fearn Intl(Kellogg Co)
01/24/92 Burns Philp Inc $85.0 $85.0 NA NA
Durkee-French Foods(Burns)
04/09/92 Ben Hill Griffin Inc $31.0 $31.0 NM 0.7
Orange-co(Stoneridge Res Inc)
04/22/92 Shareholders $181.1 $181.1 9.2 2.4
Ralston-Continental Baking
10/12/92 Dean Foods Co $15.0 $15.0 NM 1.2
WB Roddenbery Co
08/12/93 Pro-Fac Cooperative Inc $164.2 $431.2 NM 2.0
Curtice-Burns Foods(Pro-Fac)
08/16/93 Shareholders $528.0 $528.0 NA NA
Ralcorp Holdings Inc(Ralston)
11/01/93 Dean Foods Co $140.0 $140.0 23.3 NA
Kraft General Foods-Birds Eye
</TABLE>
<TABLE>
<CAPTION>
LEVERED AGGREGATE CONSIDERATION
AS A MULTIPLE OF:
LTM LTM LTM PERCENT
REVENUE EBITDA EBIT ACQUIRED
------- ------ ---- --------
<S> <C> <C> <C>
0.8 6.9 9.6 100.0%
0.9 5.5 6.7 100.0%
1.2 8.5 10.1 100.0%
2.3 19.1 30.0 100.0%
1.1 NA NA 100.0%
1.2 NA NA 100.0%
0.4 NA NA 100.0%
0.5 NM NM 52.3%
0.2 NA 3.5 55.0%
0.3 NM NM 100.0%
0.5 20.5 NM 100.0%
0.7 NA NA 100.0%
0.6 NA NA 100.0%
</TABLE>
32
<PAGE> 35
COMPARABLE TRANSACTION ANALYSIS
FOOD DISTRIBUTION COMPANIES(*)
ANALYSIS OF M&A TRANSACTION MULTIPLES SINCE 1/1/90
<TABLE>
<CAPTION>
(DOLLARS IN MILLIONS)
AGGREG. EQUITY CONSID.
AGGREGATE LEVERED AS A MULTIPLE OF:
DATE EQUITY AGGREGATE LTM NET BOOK
ANNOUNCED ACQUIROR / TARGET CONSIDERATION CONSIDERATION(2) INCOME VALUE
--------- ----------------- ------------- ---------------- ------ -----
<S> <C> <C> <C> <C> <C>
03/18/94 Doskocil Cos Inc $135.0 $135.0 NA NA
Intl Multifoods-Prepared Foods
04/18/94 ConAgra Inc $202.0 $202.0 NA NA
Universal Foods-Frozen Foods
04/20/94 Schreiber Foods Inc $11.8 $11.8 16.9 2.8
Arden International Kitchens
05/23/94 Sandoz AG $3,685.7 $3,685.7 32.3 10.1
Gerber Products Co
09/12/94 Kohlberg Kravis Roberts & Co $2,222.9 $4,622.9 NM 8.6
Borden Inc
11/28/94 Campbell Soup Co $1,115.0 $1,115.0 24.8 18.3
Pace Foods
01/09/95 Pillsbury Co(Grand Met PLC) $2,636.5 $2,636.5 23.4 7.3
Pet Inc(Pillsbury/Grand Met)
07/26/95 Shareholders $309.8 $309.8 NM 0.5
Earthgrains Co(Anheuser-Busch)
03/15/96 ConAgra Inc $132.0 $132.0 NA NA
Gilroy Foods Inc
06/30/97 JP Foodservice Inc $770.6 $1,510.6 NM 2.3
Rykoff-Sexton Inc
09/09/97 Shareholders $1,004.8 $1,004.8 NA NA
Campbell Soup-Noncore Bus(7)
09/18/97 Chiquita Brands International $10.9 $42.9 NM 1.8
Stokely USA Inc
09/29/97 Suiza Foods Corp $855.9 $1,035.9 47.0 8.6
Morningstar Group Inc
</TABLE>
<TABLE>
<CAPTION>
LEVERED AGGREGATE CONSIDERATION
AS A MULTIPLE OF:
LTM LTM LTM PERCENT
REVENUE EBITDA EBIT ACQUIRED
------- ------ ---- --------
<S> <C> <C> <C>
0.7 NA NA 100.0%
NA NA NA NA
0.6 5.6 10.7 100.0%
3.1 16.3 20.0 100.0%
0.8 NA 40.1 100.0%
4.8 23.7 26.3 100.0%
1.7 10.0 12.2 100.0%
0.2 NA NM 100.0%
0.7 NA NA 100.0%
2.9 NM NM 100.0%
0.7 NA NA 100.0%
0.2 NM NM 100.0%
2.1 NA 26.6 100.0%
</TABLE>
33
<PAGE> 36
COMPARABLE TRANSACTION ANALYSIS
FOOD DISTRIBUTION COMPANIES(*)
ANALYSIS OF M&A TRANSACTION MULTIPLES SINCE 1/1/90
<TABLE>
<CAPTION>
(DOLLARS IN MILLIONS)
AGGREG. EQUITY CONSID.
AGGREGATE LEVERED AS A MULTIPLE OF:
DATE EQUITY AGGREGATE LTM NET BOOK
ANNOUNCED ACQUIROR / TARGET CONSIDERATION CONSIDERATION(2) INCOME VALUE
--------- ----------------- ------------- ---------------- ------ -----
<S> <C> <C> <C> <C> <C>
10/01/97 Chiquita Brands International $27.0 $29.0 7.5 1.1
American Fine Foods Inc
02/18/98 Agrilink Foods(Pro-Fac) $6.9 $6.9 NA NA
Delagra Corp
05/08/98 Agrobios(Desc SA de CV) $141.9 $141.9 NM 3.2
Authentic Specialty Foods Inc
07/21/98 Agrilink Foods(Pro-Fac) NA NA NA NA
JA Hopay Distributing Co
07/27/98 Agrilink Foods(Pro-Fac) $480.0 $482.0 NA 1.7
Dean Foods Co-Vegetable Ops
Average: 26.9 4.1
Adjusted Average 23.9 3.6
</TABLE>
<TABLE>
<CAPTION>
(DOLLARS IN MILLIONS)
LEVERED AGGREGATE CONSIDERATION
AS A MULTIPLE OF:
LTM LTM LTM PERCENT
REVENUE EBITDA EBIT ACQUIRED
------- ------ ---- --------
<S> <C> <C> <C>
0.4 NA NA 100.0%
NA NA NA 100.0%
2.7 NM NM 100.0%
NA NA NA 100.0%
0.8 NA 11.4 100.0%
1.2 12.9 17.3
1.1 12.4 16.4
</TABLE>
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/7/99.
(2) Levered aggregate consideration is defined as aggregate equity consideration
plus total debt, net of cash and equivalents.
34
<PAGE> 37
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------ -------- -------- ----- --------- ------ -------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/7/90 8/14/90 ConAgra Inc Beatrice Co $1,336.0 $3,294.0 -- -- $864.0 $4,310.0 $11.0 $343.0 $478.0
Advisor Gleacher & Co Salomon Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- ------ --------------
<S> <C> <C> <C> <C>
6/7/90 $1,016.0 $3,472.0 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Beatrice from Kohlberg Kravis Roberts (KKR) for $3.294
bil in cash, common stock, preferred stock, and the assumption of
Beatrice's liabilities. The consideration consisted of $626 mil in
cash, $355 mil in common stock and $355 mil in 2 series of preferred
stock plus the assumption of $1.958 bil of Beatrice's liabilities. The
deal had been subject to governmental approval due to antitrust issues.
Gleacher acted as financial advisor to ConAgra.
Target Business Description
---------------------------
Produce food, consumer prod
Acquiror Business Description
-----------------------------
Produce meats,eggs,cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/28/90 4/4/91 Shareholders Pet Inc(Whitman Corp) $1,607.0 $1,607.0 $15.63 102.8 $801.6 $1,863.2 $21.9 $241.5 $291.5
Advisor -- First Boston Corp.
-------
Company Status Priv. Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C>
9/28/90 $130.0 $1,531.4 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Whitman completed the spinoff of Pet for $1.607 bil, based on Pet's
closing share price of $15.625 on April 4, its first day of trading.
First Boston was retained to study a possible restructure plan and
recommended the spinoff. The transaction was conducted by means of a
stock dividend in which shareholders received one share of Pet for
every Whitman share held. In anticipation of the spinoff, Whitman
restructured its major food operations, splitting them into three
divisions. In 1989, Pet generated $1.755 bil in sales and $280 mil in
pre-tax operating profit.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 38
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------- ------ -------- ------- --------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/19/90 1/18/91 MANO Holdings B Manischewitz Co $42.5 $42.5 $800.00 0.1 $14.2 $34.2 $2.5 $4.2 $5.0
Advisor TGV Partners Lehman Brothers
-------
Company Status Priv. Public
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- -------------- --------
<S> <C> <C> <C> <C>
10/19/90 -- $18.4 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
MANO Holdings, an investor group led by Kohlberg and including TGV
Partners and management, acquired B Manischewitz in a leveraged buyout
transaction valued at $800 in cash per share, or $42.5 mil. MANO
accepted 81% of B Manischewitz' shares (42,975 shares) that were
tendered in the offer and acquired the rest for $800 in cash per share.
Under the terms of the agreement, senior management was to retain an
equity interest in MANO Holdings.
Target Business Description
---------------------------
Produce, whl, ret matzos
Acquiror Business Description
-----------------------------
Investor group; holding co
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/19/91 7/11/91 ConAgra Inc Golden Valley Microwave Foods $408.4 $408.4 $26.39 17.6 $108.0 $177.6 $19.6 $13.6 $21.4
Advisor Gleacher & Co Goldman, Sachs & Co.
-------
Company Status Public Public
--------------
<CAPTION>
<S> <C> <C> <C> <C>
4/19/91 $52.7 $180.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Golden Valley Microwave Foods (GV) in a stock
transaction valued at $464.5 mil. GV shareholders received .5676 shares
of ConAgra for each of GV's 18.8 mil fully diluted common shares. Based
on ConAgra's closing stock price of $47.375 on Apr 18, the last full
trading day prior to the announcement, each share of GV had an
indicated value of $26.39. ConAgra also agreed to convert 600,000 GV
warrants, held by an affiliate of Chase Manhattan Bank, for 340,560
rights to buy ConAgra stock at $60.48.
Target Business Description
---------------------------
Produce microwave food prod
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 39
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/18/91 8/23/91 HJ Heinz Co JL Foods Inc (John Labatt Ltd) $500.0 $500.0 -- -- -- $475.0 -- --
Advisor Dillon, Read James D. Wolfensohn Inc.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
7/18/91 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
HJ Heinz acquired the JL Foods unit of John Labatt for $500 mil in
cash. John Labatt had disclosed in May 1991 that it was seeking a buyer
for its JL Foods unit. Officials said the planned divestiture was
consistent with John Labatt's stated strategy to focus on its core
brewing, entertainment and dairy operations. The transaction had been
subject to US and Canadian regulatory approval.
Target Business Description
---------------------------
Produce, whl frozen foods
Acquiror Business Description
-----------------------------
Canned food preparations
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/20/91 1/31/92 CPC International Inc Fearn Intl (Kellogg Co) $115.0 $115.0 -- -- -- $100.0 -- --
Advisor Salomon Brothers Lehman Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
12/20/91 -- -- -- 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
CPC International acquired all the outstanding common stock of Fearn
International, a subsidiary of Kellogg, including the Le Gout product
line for a $115 mil in cash. Lehman Brothers acted as financial advisor
to Kellogg while Salomon Brothers advised CPC International.
Target Business Description
---------------------------
Produce soups and desserts
Acquiror Business Description
-----------------------------
Produce soups, sauces, food prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 40
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/24/92 8/3/92 Burns Philp Inc Durkee-French Foods (Burns) $85.0 $85.0 -- -- -- $200.0 -- --
Advisor -- --
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
1/24/92 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Burns Philp Inc, a unit of Burns Philp & Co, acquired Durkee-French
Foods from Reckitt & Coleman for $85 mil in cash, including $7 mil to
be held in escrow pending finalization of certain accounts.
Target Business Description
---------------------------
Produce mustard, sauces
Acquiror Business Description
-----------------------------
Produce yeast, vinegar, spices
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/9/92 5/28/92 Ben Hill Griffin Inc Orange-co (Stoneridge Res Inc)$31.0 $31.0 -- -- $85.6 $126.5 ($8.7) ($9.0)
Advisor -- Donaldson, Lufkin & Jenrette
-------
Company Status Priv. Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/9/92 ($4.2) $45.9 $149.8 52.3 Completed
Acq. Maj. Int.
Friendly
</TABLE>
Deal Description
----------------
Ben Hill Griffin acquired a 52.3% interest in Orange-co held by
Stoneridge Resources for $31 mil. Stonebridge Resources said in October
1990 that it was seeking a buyer for all of its assets for the purpose
of raising cash to distribute a liquidation dividend to shareholders.
Stonebridge retained Donaldson Lufkin & Jenrette Securities as a
financial advisor.
Target Business Description
---------------------------
Prod oranges, juices, plastics
Acquiror Business Description
-----------------------------
Frozen fruits, juices, vegetable
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 41
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/22/92 8/2/93 Shareholders Ralston-Continental Baking $181.1 $181.1 $8.75 37.6 $137.4 $2,014.5 $35.8 $92.9
Advisor - Lehman Brothers
-------
Company Status Priv. Sub.
- ----------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/22/92 -- -- $844.9 55 Completed
Acq. Maj. Int.
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina (RP) completed the spinoff of 20.7 mil new common
shares, or a 55% interest, in its newly created Ralston-Continental
Baking Group (CBG) to shareholders in a targeted stock recapitalization
valued at $181.12 mil. Shareholders of record as of Jul 30 received 1
CBG share for every 5 RP share held. Ralston Purina had originally
planned to spinoff the entire unit in April 1992. CBG was created in
order to separate the performance of RP's baking and non-baking
interests.
Target Business Description
---------------------------
Produce bakery products
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/12/92 2/1/93 Dean Foods Co WB Roddenbery Co $15.0 $15.0 -- -- $12.8 $54.8 ($1.7) ($1.4)
Advisor -- KPMG Peat Marwick
-------
Company Status Public Priv.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
10/12/92 ($0.5) $0.8 $19.1 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired all the outstanding stock of WB Roddenbery in
exchange for 535,000 of its common shares valued at $14.2 mil. The
value of the shares was based on Dean's closing stock price of $26.5
per share on Oct 9, the last full trading day prior to the
announcement. The transaction had been subject to Federal Trade
Commission approval.
Target Business Description
---------------------------
Produce pickles, vinegar, syrup
Acquiror Business Description
-----------------------------
Produce milk, dairy products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 42
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/12/93 11/3/94 Pro-Fac Cooperative Inc Curtice-Burns Foods(Pro-Fac) $164.2 $431.2 $19.00 8.6 $81.3 $854.8 ($18.5)
Advisor Dillon, Read Donaldson, Lufkin & Jenrette
------- Priv. Public
Company Status
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
8/12/93 ($5.2) $21.0 $257.5 $463.6 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative (PFC) acquired Curtice-Burns (CBF) for a total of
$19 in cash per share, or a total value of $424.25 mil, by accepting
8,276,439 common shares, or 96% of the outstanding shares. Included in
the value was PFC's assumption of $267 mil of CBF's debt. PFC had
originally offered $16.87 in cash per share held. The tender offer was
contingent upon at least 90% of CBF's Class A and B shares being
tendered. Dean Foods withdrew its offer to acquire CBF.
Target Business Description
---------------------------
Produce soft drinks, foods
Acquiror Business Description
-----------------------------
Provide food marketing service
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/16/93 3/31/94 Shareholders Ralcorp Holdings Inc (Ralston) $528.0 $528.0 $16.00 33.0 -- $808.6 --
Advisor -- Wasserstein, Perella
------- Priv. Sub.
Company Status
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
8/16/93 -- -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina Group, a unit of Ralston Purina, spun off its newly
formed Ralcorp Holdings (RH) unit, consisting of its cereal, Beech-Nut
baby food, cracker, cookie, resort, and coupon redemption businesses to
shareholders in a transaction valued of $528 mil based on RH's closing
stock price of $16 per share on Apr 1, the first full trading day of
newly issued RH shares. The shares in the spinoff would be distributed
at a ratio of 1 RH share for every 3 shares of Ralston Purina Group.
The unit included its Keystone and Breckenridge ski resorts.
Target Business Description
---------------------------
Produce cereal, baby food
Acquiror Business Description
-----------------------------
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 43
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/1/93 12/27/93 Dean Foods Co Kraft General Foods-Birds Eye $140.0 $140.0 -- -- -- $250.0
Advisor JP Morgan Securities, Inc. Morgan Stanley
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
11/1/93 $6.0 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired the BirdsEye frozen vegetable business of Kraft
General Foods, a unit of Philip Morris, for $140 mil. The transaction
had been subject to regulatory approval.
Target Business Description
---------------------------
Prod frozen vegetables
Acquiror Business Description
-----------------------------
Produce milk, dairy products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/18/94 6/1/94 Doskocil Cos Inc Intl Multifoods-Prepared Foods $135.0 $135.0 -- -- -- $185.0
Advisor -- Lehman Brothers
-------
Company Status Public Sub
- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
3/18/94 -- -- -- -- -- 100 Completed
Acq. of
Assets
Friendly
</TABLE>
Deal Description
----------------
Doskocil acquired the prepared foods division of International
Multifoods (IM) for $135 mil in cash. In September 1993, IM's board had
announced that it was seeking to divest its prepared foods division.
The division included its frozen specialty foods and meats businesses.
Later IBP acquired the meats business.
Target Business Description
---------------------------
Produce prepared foods
Acquiror Business Description
-----------------------------
Produce sausages, prepared meat
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 44
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ----------- ----------------------------- ------ ------ ------ --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/18/94 -- ConAgra Inc Universal Foods-Frozen Foods $202.0 $202.0 -- -- -- -- -- --
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------ --------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/18/94 -- -- -- -- Pending
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra agreed to acquire the frozen foods business of Universal Foods
for an amended $202 mil in cash. The initial value was $220 mil,
including $57 mil in performance-related payments. The transaction was
subject to regulatory approval.
Target Business Description
---------------------------
Produce frozen foods
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/20/94 11/30/94 Schreiber Foods Inc Arden International Kitchens $11.8 $11.8 $3.90 3.0 $4.2 $19.5 $0.7 $1.1
Advisor -- --
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/20/94 $2.1 $0.9 $6.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Schreiber Foods (SF) acquired Arden International Kitchens (AIK) for an
amended $11.8 mil in cash, or $3.90 per common share. SF had originally
agreed to acquire AIK for $4 per share, or a total value of $12.1 mil.
Target Business Description
---------------------------
Produce frozen foods for
Acquiror Business Description
-----------------------------
Produce meat and food products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 45
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- -------- -------- ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/23/94 12/19/94 Sandoz AG Gerber Products Co $3,685.7 $3,685.7 $53.00 69.5 $364.7 $1,202.5 $114.2 $184.0
Advisor Morgan Stanley Wasserstein, Perella
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ ---------
<S> <C> <C> <C> <C> <C>
5/23/94 $226.0 $84.7 $1,013.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Sandoz completed its merger with Gerber Products (GP) in a transaction
valued at $3.68 bil. Earlier, Sandoz had completed its tender offer for
all the common shares of GP for $53 in cash per share, by accepting
69.08 mil shares, or about 99.2% of GP's shares outstanding. The offer
had been conditioned upon Sandoz receiving at least a majority of GP's
stock. The transaction had been subject to regulatory approval,
including the approval of the Federal Trade Commission under the
Hart-Scott-Rodino Act, and the Superintendent of Insurance of New York.
Target Business Description
-----------------------------
Manfr baby foods and products
Acquiror Business Description
-----------------------------
Manufacture dyestuffs
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/12/94 3/14/95 Kohlberg Kravis Roberts & Co Borden Inc $2,222.9 $4,622.9 $13.61 170.3 $257.5 $5,498.2 ($114.2) $115.4
Advisor Morgan Stanley Credit Suisse First Boston
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
9/12/94 -- $1,682.7 $4,055.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Kohlberg Kravis Roberts (KKR) merged with Borden (BN) in an amended
stock swap valued at $4.643 bil, including $2.4 bil in the assumption
of liabilities. The value included a 16.5% stake KKR acquired in Borden
through a lockup agreement valued at $309.518 mil. Earlier, KKR had
completed a tender offer to acquire all the shares of BN in exchange
for 2.29146 RJR shares, valued at $13.606, per BN share held, by
accepting 90 mil shares, or about 63.5% of BN's total shares
outstanding. The offer had been conditioned upon a minimum of 41% of
BN's shares being tendered.
Target Business Description
---------------------------
Produce dairy prods, snacks
Acquiror Business Description
-----------------------------
Leverage buyout firm
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 46
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- ------ -------- ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/28/94 1/30/95 Campbell Soup Co Pace Foods $1,115.0 $1,115.0 -- -- $61.0 $230.0 $45.0
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ -------- -------- ------ --------- --------------
<S> <C> <C> <C> <C> <C> <C>
11/28/94 $42.4 $47.0 -- $112.7 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Campbell Soup acquired Pace Foods for $1.115 bil in cash.
Target Business Description
---------------------------
Produce pickled vegetables
Acquiror Business Description
-----------------------------
Produce soups, food products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/9/95 5/12/95 Pillsbury Co (Grand Met PLC) Pet Inc (Pillsbury/Grand Met) $2,636.5 $2,636.5 $26.00 100.4 $362.2 $1,576.3 $112.6
Advisor Morgan Stanley Lazard Freres & Co.
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1/9/95 $216.7 $262.5 $528.1 $1,175.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pillsbury, a unit of Grand Metropolitan (GM), completed its merger with
Pet in a transaction valued at $2.636 bil. Earlier, Pillsbury completed
its tender offer for all the outstanding common shares of Pet for $26
in cash per share, by accepting 95,364,543 shares, or 95% of Pet's
common stock outstanding. The offer had been conditioned upon GM
receiving at least 50% of Pet's shares outstanding, and had been
subject to regulatory approval.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Produce flour, grain mill prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 47
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------ ------------------------------ ------ ------ ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/26/95 3/27/96 Shareholders Earthgrains Co (Anheuser-Busch)$309.8 $309.8 $30.38 10.2 $573.8 $1,664.6 ($25.7) ($31.2)
Advisor -- Dillon, Read
-------
Company Status Priv. Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
7/26/95 -- $56.2 $1,130.1 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Anheuser-Busch (AB) completed the spin off its Earthgrains (EA) unit to
shareholders in a transaction valued at $309.83 mil. Each AB common
shareholder received 1 EA common share for every 25 AB shares held.
EA's shares were valued based on EA's closing stock price of $30.375 on
Mar 27, the first full trading day on a non-when issued basis. Earlier,
EA was known as as Cambell Taggart.
Target Business Description
---------------------------
Baked goods, frozen foods
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/29/96 ConAgra Inc Gilroy Foods Inc $132.0 $132.0 -- -- -- $200.0 -- --
Advisor -- --
- -------
Company Status Public Sub.
- --------------
<S> <C> <C> <C> <C> <C>
3/15/96 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Gilroy Foods, a unit of McCormick, for $132 mil in
cash.
Target Business Description
---------------------------
Produce dried fruits
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 48
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------ --------------------- ------ ------ ------ --------- ------ ------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/30/97 12/23/97 JP Foodservice Inc Rykoff-Sexton Inc $770.6 $1,510 $24.41 28.0 $336.0 $519.9 ($60.2) ($79.5)
Advisor PaineWebber Merrill Lynch & Co.
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
6/30/97 ($73.0) $483.2 $1,217.2 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
JP Foodservice (JP) merged with Rykoff-Sexton (RS) in a
merger-of-equals stock swap transaction valued at an amended $1.436
bil, including the assumption of $740 mil in liabilities. JP offered an
amended .775 common shares per RS share. Originally, JP offered .82
common shares per RS share. Based on JP's closing stock price of $31.5
on June 27, the last full trading day prior to the announcement of
amended terms, each RS share was valued at $24.4125. The transaction
was accounted for as a pooling of interests and had been subject to
regulatory approval.
Target Business Description
---------------------------
Wholesale grocery products
Acquiror Business Description
-----------------------------
Wholesale groceries
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/9/97 3/11/98 Shareholders Campbell Soup-Noncore Bus(7) $1,004 $1,004.8 $22.13 45.4 -- $1,400 -- --
Advisor -- Goldman, Sachs & Co.
-------
Company Status Priv. Sub.
- --------------
<S> <C> <C> <C> <C> <C>
9/9/97 -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Campbell Soup (CS) spun off its 7 noncore businesses including the
Swanson frozen dinner and Vlasic pickle brands into a new company named
Vlasic Foods (VF) to its shareholders in a transaction valued at $1.004
bil. CS shareholders received 1VF common share for every 10 CS shares
held. The shares were valued based on VF's closing stock price of
$22.125 on March 11, the first full trading day on which the shares
were distributed.
Target Business Description
---------------------------
Produce, whl soups, food prods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 49
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------------ ------ ------ ------ --------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/18/97 1/16/98 Chiquita Brands International Stokely USA Inc $10.9 $42.9 $1.00 11.4 $6.1 $178.9
Advisor No Investment Bank Retained Donaldson, Lufkin & Jenrette
-------
Company Status Public Public
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
9/18/97 ($19.4) ($8.9) ($2.9) $74.7 $116.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International (CBI) acquired all the outstanding common
stock of Stokely USA (SU) in exchange for $1 in common stock per share,
or a total value of approximately $43.389 mil, including the assumption
of about $32 mil in liabilities.
Target Business Description
------------------------------
Prod canned fruits, vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/29/97 12/1/97 Suiza Foods Corp Morningstar Group Inc $855.9 $1,035.9 $45.85 15.4 $99.4 $497.6
Advisor Donaldson, Lufkin & Jenrette Goldman, Sachs & Co.
-------
Company Status Public Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
9/29/97 $18.2 $38.9 -- 178.5 $352.3 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Suiza Foods (SF) acquired Morningstar Group (MG) in a stock swap
transaction valued at approximately $971.957 mil, including the
assumption of $180 mil in liabilities. SF offered .85 SF common shares
per MG share. Based on SF's closing stock price of $53.9375 on Sep 26,
the last full trading day prior to the announcement, each MG share was
valued at $45.85. The transaction was accounted for as a pooling of
interests and had been subject to regulatory approval.
Target Business Description
---------------------------
Produce dairy products
Acquiror Business Description
-----------------------------
Produce milk, related prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 50
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/1/97 12/9/97 Chiquita Brands International American Fine Foods Inc $27.0 $29.0 -- -- $25.6 $79.8 $3.6
Advisor -- JP Morgan & Co. Inc.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
10/1/97 -- -- -- $52.0 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International acquired all the outstanding stock of
American Fine Foods for $29 mil. The consideration consisted of $27 mil
in common stock and the assumption of $2 mil in liabilities. The
transaction was subject to regulatory approval.
Target Business Description
---------------------------
Produce canned vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/98 Agrilink Foods (Pro-Fac) Delagra Corp $6.9 $6.9 -- -- -- --
Advisor -- --
-------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C>
-- -- -- 100 Completed
2/18/98 Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative Inc, acquired Delagra Corp (DE). Terms were not
disclosed. Upon completion, DE was to be incorporated to AF's Curtice
Burns Foods subsidiary.
Target Business Description
---------------------------
Produce frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 51
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ------------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/8/98 6/15/98 Agrobios (Desc SA de CV) Authentic Specialty Foods Inc $141.9 $141.9 $17.00 8.0 $40.5 $37.2 ($0.6)
Advisor JP Morgan & Co. Inc. Donaldson, Lufkin & Jenrette
-------
Company Status Sub. Public
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
5/8/98 ($0.4) $0.8 $10.2 $58.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Agrobios (AB), a unit of Desc SA de CV, acquired all the outstanding
common stock of Authentic Specialty Foods Inc (ASF) for $17 in cash per
share, or a total value of $141.876 mil. Earlier, AB completed its
tender offer for ASF by accepting 7.8 million shares, or 89% of ASF's
shares outstanding. The offer had been conditioned upon at least 66.67%
of ASF's shares being tendered on a fully-diluted basis.
Target Business Description
---------------------------
Whl, mnfr Mexican foods
Acquiror Business Description
-----------------------------
Mnfr, whl foods products
<TABLE>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/21/98 Agrilink Foods (Pro-Fac) JA Hopay Distributing Co -- -- -- -- -- $8.0 --
Advisor -- --
- -------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C> <C>
7/21/98 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods, a unit of Pro-Fac Cooperative Inc, acquired JA Hopay
Distributing Co.
Target Business Description
---------------------------
Distribution of snack foods
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 52
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ---------------------------- ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/27/98 9/24/98 Agrilink Foods (Pro-Fac) Dean Foods Co-Vegetable Ops $480.0 $482.0 -- -- -- $620.6 --
Advisor - Merrill Lynch & Co.
-------
Company Status Sub. Sub.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
7/27/98 $42.4 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods (AF), a unit of Pro-Fac Cooperative Inc, acquired the
vegetable operations of Dean Foods Co for an estimated $370 mil in
cash, a $30 mil note and AF's aseptic foods business. Included in the
acquisition were the Birds Eye, Freshlike and VegAll brand names.
Target Business Description
---------------------------
Mnfr frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
*Covers industries with SIC Codes in the 2030s. Source: Securities Data Company,
Inc. (201) 622-3100. As of 5/9/99.
<PAGE> 53
Discounted Cash Flow Analysis
- -----------------------------
United Foods - Discounted Cash Flow Analysis
0% Growth After FY 2000 Scenario - Per Share Valuation
<TABLE>
<CAPTION>
Cost Savings (000's)
-----------------------------------------
Discount
Rate - $500 $750 $1,000
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
5.0x $ 0.87 $ 1.31 $ 1.52 $ 1.74
8% 6.0x $ 2.29 $ 2.78 $ 3.02 $ 3.26
7.0x $ 3.72 $ 4.25 $ 4.51 $ 4.78
5.0x $ 0.16 $ 0.56 $ 0.77 $ 0.97
10% 6.0x $ 1.46 $ 1.91 $ 2.13 $ 2.35
7.0x $ 2.76 $ 3.25 $ 3.50 $ 3.74
5.0x $ (0.47) $ (0.10) $ 0.09 $ 0.27
12% 6.0x $ 0.71 $ 1.13 $ 1.33 $ 1.54
7.0x $ 1.90 $ 2.35 $ 2.58 $ 2.81
</TABLE>
35
<PAGE> 54
Discounted Cash Flow Analysis
- -----------------------------
United Foods - Discounted Cash Flow Analysis
2.5% Growth After FY 2000 Scenario - Per Share Valuation
<TABLE>
<CAPTION>
Cost Savings (000's)
-------------------------------------
Discount
Rate - $500 $750 $1,000
-------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
5.0x $ 1.43 $ 1.86 $ 2.08 $ 2.30
8% 6.0x $ 3.00 $ 3.48 $ 3.72 $ 3.96
7.0x $ 4.57 $ 5.10 $ 5.37 $ 5.63
5.0x $ 0.67 $ 1.07 $ 1.27 $ 1.47
10% 6.0x $ 2.10 $ 2.54 $ 2.77 $ 2.99
7.0x $ 3.53 $ 4.02 $ 4.27 $ 4.51
5.0x $ (0.02) $ 0.35 $ 0.54 $ 0.73
12% 6.0x $ 1.29 $ 1.70 $ 1.91 $ 2.12
7.0x $ 2.60 $ 3.05 $ 3.28 $ 3.51
</TABLE>
36
<PAGE> 55
Discounted Cash Flow Analysis
United Foods, Inc.
<TABLE>
<CAPTION>
EBITDA Growth
Historical
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8,965 10,851 11,764 15,698 13,341 12,776 7,142 5,487 251 9,340 19,876 14,835
21.0% 8.4% 33.4% (15.0%) (4.2%) (44.1%) (23.2%) (95.4%) 3621.1% 112.8% (25.4%)
Smoothed (3-Year)
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
- ----------------------------------------------------------------------------------------------------------------------------
10,527 12,771 13,601 13,938 11,086 8,468 4,293 5,026 9,822 14,684
21.3% 6.5% 2.5% (20.5%) (23.6%) (49.3%) 17.1% 95.4% 49.5%
Depreciation
Historical
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
- ----------------------------------------------------------------------------------------------------------------------------
2,832 2,578 2,565 3,391 3,445 3,415 3,354 3,402 4,059 5,352 5,777 6,086
(9.0%) (0.5%) 32.2% 1.6% (0.9%) (1.8%) 1.4% 19.3% 31.9% 7.9% 5.3%
Smoothed (3-Year)
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
- ----------------------------------------------------------------------------------------------------------------------------
2,658 2,845 3,134 3,417 3,405 3,390 3,605 4,271 5,063 5,738
7.0% 10.2% 9.0% (0.4%) (0.4%) 6.3% 18.5% 18.5% 13.3%
Cap Ex
Historical
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
- ----------------------------------------------------------------------------------------------------------------------------
1,914 1,686 3,220 16,276 3,982 5,127 5,979 11,455 22,795 5,957 6,794 9,940
(11.9%) 91.0% 405.5% (75.5%) 28.8% 16.6% 91.6% 99.0% (73.9%) 14.1% 46.3%
Smoothed (3-Year)
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
- ----------------------------------------------------------------------------------------------------------------------------
2,273 7,061 7,826 8,462 5,029 7,520 13,410 13,402 11,849 7,564
210.6% 10.8% 8.1% (40.6%) 49.5% 78.3% (0.1%) (11.6%) (36.2%)
</TABLE>
<TABLE>
<CAPTION>
EBITDA Growth
Historical
1992 1993 1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- -------------------------------------------------------------------------------- --------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10,918 9,018 9,291 13,621 10,276 12,531 12,127 12,338 Avg. 12,332 12,179 12,483
(26.4%) (17.4%) 3.0% 46.6% (24.6%) 21.9% (3.2%) 1.7% CAGR (0.8%) (2.4%) (5.2%)
Smoothed (3-Year)
1992 1993 1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- -------------------------------------------------------------------------------- --------------------------------
15,210 11,590 9,742 10,643 11,063 12,143 11,645 12,332 Avg. 12,040 11,565 11,887
3.6% (23.8%) (15.9%) 9.2% 3.9% 9.8% (4.1%) 5.9% CAGR 0.8% 3.8% 2.6%
Depreciation
Historical
1992 1993 1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- -------------------------------------------------------------------------------- --------------------------------
6,249 6,104 6,005 6,637 7,362 7,859 7,285 7,119 Avg. 7,421 7,252 6,648
2.7% (2.3%) (1.6%) 10.5% 10.9% 6.8% (7.3%) (2.3%) CAGR (4.8%) 1.8% 2.3%
Smoothed (3-Year)
1992 1993 1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- -------------------------------------------------------------------------------- --------------------------------
6,037 6,146 6,119 6,249 6,668 7,286 7,502 7,421 Avg. 7,403 7,025 6,423
5.2% 1.8% (0.4%) 2.1% 6.7% 9.3% 3.0% (1.1%) CAGR 0.9% 4.4% 4.3%
Cap Ex
Historical
1992 1993 1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- -------------------------------------------------------------------------------- --------------------------------
2,363 4,948 9,133 9,874 11,914 533 4,774 12,538 Avg. 5,948 7,927 7,281
(76.2%) 109.4% 84.6% 8.1% 20.7% (95.5%) 795.7% 162.6% CAGR 385.0% 6.2% 7.0%
Smoothed (3-Year)
1992 1993 1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- -------------------------------------------------------------------------------- --------------------------------
6,366 5,750 5,481 7,985 10,307 7,440 5,740 5,948 Avg. 6,376 7,484 7,443
(15.8%) (9.7%) (4.7%) 45.7% 29.1% (27.8%) (22.8%) 3.6% CAGR (10.6%) (7.1%) (7.4%)
</TABLE>
37
<PAGE> 56
Discounted Cash Flow Analysis
United Foods, Inc.
Calculation of Weighted Average Cost of Capital
(in thousands except per share)
Weighted Average Cost of Capital (WACC) = (Equity % of Capitalization)(Cost of
Equity) + (Debt % of Capitalization)
(Cost of Debt)
33.0% Equity (14.85%) + 67.0% Debt (4.88%)
8.2%
<TABLE>
<CAPTION>
Cost of Equity Data Used
- ------------------------------------------------ --------------------------------------
<S> <C>
Cost of Equity = R(f) + B (R(m) - R(f)) Capital Asset Pricing Model (a)
Risk Free Rate = R(f) 10 Year Treasury Yield = 5.51% (b)
Beta of Common Stock = B UFD Beta = 0.7 (c)
Market Risk Premium = (R(m) - R(f)) Common Stock Returns
over Int.-term Gov't Bonds = 8.9% (d)
Cost of Equity = 5.5% + .7(*)(8.9%) + 3.5% Micro-Cap Stock Premium 3.5%
Cost of Debt = (1-T)(*)R(i) (e)
Cost of Equity = 14.8% Cost of Debt = 4.9%
</TABLE>
Capitalization(f) = $23,835 of Market Equity + $48,302 of
Long Term Debt = $72,137
=33.0% Equity + 67.0% Debt
(a) The Capital Asset Pricing Model states that the return on an asset or
security is equal to the risk free return (i.e., Treasury Bonds) plus a
risk premium.
(b) 10 Year Treasury as of 4/30/99.
(c) Beta estimate taken from Value Line Investment Survey.
(d) Intermediate horizon risk premium of 8.9%, as calculated by Ibbotson &
Sinquefield, 1996. Includes an additional Micro-Cap Stock Premium of
3.5%.
(e) Interest cost of 8.00%, tax adjusted at 39.0%.
(f) Assumes UFD has a targeted capital structure of 33.0% equity and 67.0%
debt.
38
<PAGE> 57
Discounted Cash Flow Analysis
United Foods, Inc.
Calculation of Weighted Average Cost of Capital
(in thousands except per share)
Weighted Average Cost of Capital (WACC) = (Equity % of Capitalization)(Cost of
Equity) + (Debt % of Capitalization)
(Cost of Debt)
33.0% Equity (20.05%) + 67.0% Debt (4.88%)
9.9%
<TABLE>
<CAPTION>
Cost of Equity Data Used
- ------------------------------------------------ --------------------------------------
<S> <C>
Cost of Equity = R(f)+ B (R(m)- R(f)) Capital Asset Pricing Model (a)
Risk Free Rate = R(f) 10 Year Treasury Yield = 5.51% (b)
Beta of Common Stock = B UFD Beta = 1.2 (c)
Market Risk Premium = (R(m)- R(f)) Common Stock Returns
over Int.-term Gov't Bonds = 8.9% (d)
Cost of Equity = 5.5% + 1.2 * (8.9%) + 3.5% Micro-Cap Stock Premium 3.5%
Cost of Debt = (1-T) * R(i) (e)
Cost of Equity = 20.0% Cost of Debt = 4.9%
</TABLE>
Capitalization(f)=$23,835 of Market Equity + $48,302 of Long Term Debt = $72,137
=33.0% Equity + 67.0% Debt
(a) The Capital Asset Pricing Model states that the return on an asset or
security is equal to the risk free return (i.e., Treasury Bonds) plus a
risk premium.
(b) 10 Year Treasury as of 4/30/99.
(c) Beta estimate taken from Value Line Investment Survey.
(d) Intermediate horizon risk premium of 8.9%, as calculated by Ibbotson &
Sinquefield, 1996. Includes an additional Micro-Cap Stock Premium of
3.5%.
(e) Interest cost of 8.00%, tax adjusted at 39.0%.
(f) Assumes UFD has a targeted capital structure of 33.0% equity and 67.0%
debt.
39
<PAGE> 58
DISCOUNTED CASH FLOW ANALYSIS
UNITED FOODS, INC.
CALCULATION OF WEIGHTED AVERAGE COST OF CAPITAL
(IN THOUSANDS EXCEPT PER SHARE)
WEIGHTED AVERAGE COST OF CAPITAL (WACC)=(EQUITY % OF CAPITALIZATION)(COST OF
EQUITY) + (DEBT % OF CAPITALIZATION)(COST OF DEBT)
33.0% Equity (26.02%) + 67.0% Debt (4.88%)
11.9%
<TABLE>
<CAPTION>
COST OF EQUITY DATA USED
- ---------------------------------------------------- ----------------------------------------------
<S> <C> <C>
(a)
Cost of Equity = R(f)+ B (R(m)- R(f)) Capital Asset Pricing Model
Risk Free Rate = R(f) 10 Year Treasury Yield = 5.51% (b)
Beta of Common Stock = B UFD Beta = 1.9 (c)
Market Risk Premium = (R(m)- R(f)) Common Stock Returns
over Int.-term Gov't Bonds = 8.9% (d)
Cost of Equity = 5.5% + 1.9 * (8.9%) + 3.5% Micro-Cap Stock Premium 3.5%
Cost of Debt = (1-T) * R(i)(e)
Cost of Equity = 26.0% Cost of Debt = 4.9%
</TABLE>
Capitalization (f)=$23,835 of Market Equity + $48,302 of Long Term
Debt = $72,137
=33.0% Equity + 67.0% Debt
(a) The Capital Asset Pricing Model states that the return on an asset or
security is equal to the risk free return (i.e., Treasury Bonds) plus a
risk premium.
(b) 10 Year Treasury as of 4/30/99.
(c) Beta estimate taken from Value Line Investment Survey.
(d) Intermediate horizon risk premium of 8.9%, as calculated by Ibbotson &
Sinquefield, 1996. Includes an additional Micro-Cap Stock Premium of
3.5%.
(e) Interest cost of 8.00%, tax adjusted at 39.0%.
(f) Assumes UFD has a targeted capital structure of 33.0% equity and 67.0%
debt.
40
<PAGE> 59
DISCOUNTED CASH FLOW ANALYSIS
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH AFTER FY 2000)
DISCOUNTED CASH FLOW ANALYSIS -- OPERATING CASH FLOW EBITDA EXIT MULTIPLE METHOD
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
5/9/99 6:21 PM 2000 2001 2002 2003 2004
-----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EBITDA $ 14,222 $ 14,222 $ 14,222 $ 14,222 $ 14,222
Depreciation and amortization 8,348 8,348 8,348 8,348 8,348
Interest expense 5,190 5,030 4,666 4,604 4,540
-----------------------------------------------------------
Pre-tax income 684 844 1,208 1,270 1,334
Provision for income taxes 260 321 459 482 507
-----------------------------------------------------------
Net income 424 523 749 787 827
-----------------------------------------------------------
Add: Depreciation & amortization 8,348 8,348 8,348 8,348 8,348
Add: After-tax interest expense 3,218 3,118 2,893 2,855 2,815
Less: Net additions to working capital (1) 157 -- -- -- --
Less: Capital expenditures (17,380) (8,348) (8,348) (8,348) (8,348)
-----------------------------------------------------------
Operating cash flow $ (5,233) $ 3,642 $ 3,642 $ 3,642 $ 3,642
===========================================================
Cash flow growth -169.6% 0.0% 0.0% 0.0%
</TABLE>
<TABLE>
<CAPTION>
EQUITY VALUATION MATRIX(2)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $ 5,949 $ 15,628 $ 25,307 $ 34,986
10.0% 1,120 9,951 18,782 27,612
12.0% (3,217) 4,853 12,923 20,993
Average Valuation of Equity $ 14,574
</TABLE>
<TABLE>
<CAPTION>
PER SHARE EQUITY VALUATION MATRIX(2) (4)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $ 0.87 $ 2.29 $ 3.72 $ 5.14
10.0% $ 0.16 $ 1.46 $ 2.76 $ 4.05
12.0% $(0.47) $ 0.71 $ 1.90 $ 3.08
Average Per Share Valuation of Equity $ 2.14
</TABLE>
(1) Excluding cash and short-term debt.
(2) Less total capital liab. (net of cash) of $48,771
(3) Discount rates are near estimates of WACC.
(4) Based on 6.8 million shares outstanding.
41
<PAGE> 60
UNITED FOODS, INC. -- Projection Model (0% Growth After FY 2000)
Projected Income Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Revenues $206,760 $212,370 $212,370 $212,370 $212,370 $212,370
Cost of sales 167,408 172,978 172,978 172,978 172,978 172,978
---------------------------------------------------------------
Gross profit 39,352 39,392 39,392 39,392 39,392 39,392
General and administrative, net dep. 11,172 10,129 10,129 10,129 10,129 10,129
Direct selling expenses 15,842 15,041 15,041 15,041 15,041 15,041
---------------------------------------------------------------
Total operating expenses 27,014 25,170 25,170 25,170 25,170 25,170
EBITDA 12,338 14,222 14,222 14,222 14,222 14,222
Depreciation 7,119 8,348 8,348 8,348 8,348 8,348
---------------------------------------------------------------
Total depreciation & amortization 7,119 8,348 8,348 8,348 8,348 8,348
Total operating income 5,219 5,874 5,874 5,874 5,874 5,874
Interest expense 4,138 5,190 5,030 4,666 4,604 4,540
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense 10 -- -- -- -- --
Other (income) 145 -- -- -- -- --
---------------------------------------------------------------
Other expenses (income) 4,293 5,190 5,030 4,666 4,604 4,540
Pre-tax income 926 684 844 1,208 1,270 1,334
Provision for income taxes 406 260 321 459 482 507
---------------------------------------------------------------
Net income $ 520 $ 424 $ 523 $ 749 $ 787 $ 827
===============================================================
</TABLE>
<PAGE> 61
UNITED FOODS, INC. -- Projection Model (0% Growth After FY 2000)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 2,027 $ 9,825 $ 2,000 $ 2,000 $ 2,000 $ 2,000
Accounts receivable 19,154 19,122 19,122 19,122 19,122 19,122
Inventory 37,785 33,886 33,886 33,886 33,886 33,886
Prepaid expenses 3,296 3,156 3,156 3,156 3,156 3,156
Deferred income taxes 1,641 1,632 1,632 1,632 1,632 1,632
--------------------------------------------------------------------------
Total current assets 63,903 67,621 59,796 59,796 59,796 59,796
Land 13,814 13,814 13,814 13,814 13,814 13,814
Gross plant and equip 125,615 142,995 151,343 159,691 168,039 176,387
Accumulated depreciation (80,876) (89,224) (97,572) (105,920) (114,268) (122,616)
--------------------------------------------------------------------------
Net P, P&E 58,553 67,585 67,585 67,585 67,585 67,585
Fixed assets held for disposal 893 458 458 458 458 458
Notes & accounts receivable 51 50 50 50 50 50
Deferred charges & other assets -- -- -- -- -- --
Other long term assets 3 -- -- -- -- -- --
--------------------------------------------------------------------------
Total assets $ 123,400 $ 135,714 $ 127,889 $ 127,889 $ 127,889 $ 127,889
==========================================================================
</TABLE>
<PAGE> 62
UNITED FOODS, INC. -- Projection Model (0% Growth After FY 2000)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 2,496 $ -- $ -- $ -- $ -- $ --
Accounts payable 13,638 10,199 10,199 10,199 10,199 10,199
Accrued liabilities 7,670 7,152 7,152 7,152 7,152 7,152
Income taxes payable 514 189 189 189 189 189
----------------------------------------------------------------------
Total current liabilities 24,318 17,540 17,540 17,540 17,540 17,540
Long term debt
Revolver -- 301 -- -- -- --
Long term debt 50,798 66,746 58,698 57,949 57,162 56,335
Line of credit -- -- -- -- -- --
----------------------------------------------------------------------
Total debt 50,798 67,047 58,698 57,949 57,162 56,335
Less current portion (2,496) -- -- -- -- --
----------------------------------------------------------------------
Total long-term debt 48,302 67,047 58,698 57,949 57,162 56,335
Deferred income taxes 4,512 4,435 4,435 4,435 4,435 4,435
----------------------------------------------------------------------
Total liabilities 77,132 89,022 80,673 79,924 79,137 78,310
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,465 35,889 36,413 37,162 37,949 38,776
----------------------------------------------------------------------
Total stockholders' equity 46,268 46,692 47,216 47,965 48,752 49,579
----------------------------------------------------------------------
Total liabilities & equity $ 123,400 $ 135,714 $ 127,889 $ 127,889 $ 127,889 $ 127,889
======================================================================
</TABLE>
<PAGE> 63
UNITED FOODS, INC. -- Projection Model (0% Growth After FY 2000)
Projected Cash Flow Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Projected
2000 2001 2002 2003 2004
--------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 424 $ 523 $ 749 $ 787 $ 827
Depreciation 8,348 8,348 8,348 8,348 8,348
--------------------------------------------------------
Net cash provided by operating activities 8,570 8,871 9,097 9,135 9,175
Cash flows from investing activities
Capital expenditures (net of dispositions) (17,380) (8,348) (8,348) (8,348) (8,348)
--------------------------------------------------------
Net cash provided by investing activities (17,021) (8,348) (8,348) (8,348) (8,348)
Cash flows from financing activities
Repayment of debt -- (8,348) (749) (787) (827)
Drawdown on revolver 301 -- -- -- --
--------------------------------------------------------
Net cash provided by financing activities 16,249 (8,348) (749) (787) (827)
--------------------------------------------------------
Net additions to cash $ 7,798 $ (7,825) $ -- $ -- $ --
========================================================
Beginning cash balance 2,027 9,825 2,000 2,000 2,000
Ending cash balance 9,825 2,000 2,000 2,000 2,000
</TABLE>
<PAGE> 64
PREMIUM ANALYSIS
UNITED FOODS, INC.
M & A PREMIUM ANALYSIS
BASED ON ADJUSTED AVERAGE PREMIUM (1 WEEK BEFORE ANNOUNCEMENT)
<TABLE>
<CAPTION>
IMPLIED
CLASS DATE PREMIUM PRICE OFFER PRICE
- -------------------------------------------------------------
<S> <C> <C> <C> <C>
A 9/9/98 37.46% $2.63 $3.62
B 9/9/98 37.46% $2.81 $3.86
</TABLE>
Percentage of transactions with premiums below 20% is 30.4%.
BASED ON ADJUSTED AVERAGE PREMIUM (4 WEEKS BEFORE ANNOUNCEMENT)
<TABLE>
<CAPTION>
IMPLIED
CLASS DATE PREMIUM PRICE OFFER PRICE
- -------------------------------------------------------------
<S> <C> <C> <C> <C>
A 8/17/98 43.97% $2.94 $4.23
B 8/17/98 43.97% $3.00 $4.32
</TABLE>
Percentage of transactions with premiums below 20% is 20.3%.
42
<PAGE> 65
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
08/28/96 01/03/96 Recoton Corp International Jensen Inc 109.1
04/30/96 01/08/96 Lockheed Martin Corp Loral Corp 8762.4
04/30/96 01/09/96 CompuWare Corp Technalysis Corp 32.6
07/30/96 01/11/96 National Golf Properties Inc Golf Enterprises Inc 82.9
02/26/96 01/16/96 Multicare Cos Inc Concord Health Group 126.9
04/10/96 01/16/96 Depuy Inc(Corange Ltd) Orthopedic Technology Inc 45.2
04/11/96 01/22/96 Farnell Electronics PLC Premier Industrial Corp 2722.7
05/09/96 01/23/96 Spartech Corp Portage Industries Corp 15.8
07/16/96 01/24/96 First Maryland Bancorp, MD 1st Washington Bancorp Inc 81.9
03/29/96 01/24/96 Cisco Systems Inc TGV Software Inc 92.4
04/08/96 01/29/96 WH Brady Co Varitronic Systems Inc 42.5
03/04/96 01/31/96 IBM Corp Tivoli Systems Inc 709.8
06/19/96 02/05/96 Bay View Capital, San Mateo, CA CTL Credit Inc 65.0
05/01/96 02/12/96 Honeywell Inc Duracraft Corp 286.7
09/18/96 02/13/96 Jacor Communications Inc Citicasters(American Finl Grp) 767.6
07/12/96 02/13/96 Horizon/CMS Healthcare Corp Medical Innovations Inc 30.3
07/01/96 02/13/96 LBO Enterprises S-K-I Ltd 135.3
03/20/96 02/14/96 Unilever NV Helene Curtis Industries Inc 737.4
05/14/96 02/15/96 Genstar Capital Partners II LP Andros Inc 92.6
04/29/96 02/15/96 NationsBank Corp, Charlotte, NC LDI Corp 28.1
05/30/96 02/16/96 Tosco Corp Circle K Corp 983.0
06/13/96 02/16/96 Marriott International Inc Forum Group Inc 622.3
07/01/96 02/23/96 Silicon Graphics Inc Cray Research Inc 770.0
09/16/96 02/26/96 Maxxim Medical Inc Sterile Concepts Inc 140.2
06/18/96 02/26/96 HS Resources Inc Tide West Oil Co 201.3
07/10/96 02/29/96 TBC Corp Big O Tires Inc 56.6
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
11.00 57.14 49.15
38.00 7.42 8.19
14.00 16.67 16.67
12.00 45.46 45.46
7.35 43.42 58.92
10.43 43.89 49.03
32.92 35.75 34.37
6.60 78.98 78.98
8.13 51.16 44.44
15.57 70.63 73.00
17.50 79.49 62.79
47.50 25.00 41.79
18.00 82.28 69.41
43.50 50.00 68.12
29.50 15.69 28.26
1.85 18.40 5.71
18.00 44.00 39.81
70.00 30.23 71.78
18.00 24.14 35.85
4.10 21.48 49.09
30.81 42.47 68.82
13.00 8.33 44.44
30.00 21.21 20.60
20.00 60.00 55.34
15.91 44.64 51.52
16.50 7.32 12.82
</TABLE>
<PAGE> 66
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
04/08/96 03/04/96 Lilly Industries Inc Guardsman Products Inc 227.8
09/27/96 03/13/96 Keystone Consolidated Inds Inc DeSoto Inc 36.1
10/31/96 03/20/96 Mercantile Bancorp, St Louis, MO Todays Bancorp Inc 88.8
10/04/96 03/26/96 Camco Financial, Cambridge, OH First Ashland Financial Corp 29.0
08/01/96 03/28/96 Koninklijke Ahold NV Stop & Shop Cos 2870.8
07/02/96 03/29/96 Motor Wheel Corp Hayes Wheels International Inc 563.8
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
23.00 32.37 57.27
7.65 53.00 80.00
31.81 23.53 31.18
20.58 28.61 34.93
33.50 27.01 45.65
32.00 33.33 43.02
</TABLE>
<PAGE> 67
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
10/21/96 03/29/96 ISB Financial, New Iberia, LA Jefferson Bancorp, Gretna, LA 52.0
08/07/96 03/29/96 Abbott Laboratories MediSense Inc 821.6
07/19/96 04/01/96 Aetna Life & Casualty Co US Healthcare Inc 8939.0
10/15/96 04/10/96 Toronto-Dominion Bank Waterhouse Investor Services 526.0
06/04/96 04/22/96 El Paso Field Svcs(El Paso) Cornerstone Natural Gas Co 96.6
07/18/96 04/22/96 Reynolds & Reynolds Co Duplex Products Inc 90.1
09/30/96 04/22/96 Pinnacle Banc Grp, Oak Brook, IL Financial Security, Chicago, IL 42.6
07/10/96 04/22/96 Cisco Systems Inc StrataCom Inc 4833.5
06/03/96 04/22/96 K-III Communications Corp Westcott Communications Inc 438.9
10/21/96 04/23/96 Security Banc Corp, OH Third Financial Corp,Piqua,OH 43.9
10/01/96 04/25/96 Investor Group Sterling Chemicals Inc 798.4
10/14/96 04/29/96 Fidelity Financial of Ohio Inc Circle Finl, Sharonville, Ohio 27.8
09/03/96 04/29/96 Hubco Inc, Mahwah, New Jersey Hometown Bancorporation Inc,CT 31.9
03/27/97 04/29/96 Provident Cos Paul Revere Corp(Textron Inc) 1171.1
08/14/96 05/07/96 Tiger Real Estate Fund LP Kahler Realty Corp 222.7
10/01/96 05/10/96 HF Bancorp Inc, Hemet, CA Palm Springs Savings Bank, CA 17.3
08/30/96 05/13/96 Getinge Industrier AB MDT Corp 70.3
11/15/96 05/16/96 Metrocall Inc A+ Network Inc 345.1
07/23/96 05/20/96 General Electric Capital Svcs AmeriData Technologies Inc 454.8
08/29/96 05/20/96 Finova Group Inc Financing for Science Intl Inc 39.2
09/30/96 05/23/96 Luther Burbank Savings, CA NHS Financial, San Rafael, CA 29.6
09/04/96 05/24/96 Joint Energy Dvlp Investments Clinton Gas Systems Inc 38.4
07/02/96 05/24/96 Lear Corp Masland Corp 413.5
01/28/97 05/29/96 Regions Finl, Birmingham, AL Florida First Bancorp Inc, FL 40.9
10/01/96 06/06/96 Investor Group AT&T Capital Corp(AT&T Corp) 2128.6
12/09/96 06/06/96 Greater Bay Bancorp Cupertino National Bancorp, CA 27.7
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
23.00 16.46 18.71
45.00 48.76 39.00
57.00 21.28 18.75
38.00 19.69 65.22
6.00 29.73 100.00
12.00 28.86 36.17
28.50 15.15 10.15
57.50 59.72 79.69
21.50 57.80 56.36
33.41 13.74 14.22
12.00 47.69 47.69
38.00 38.18 43.40
17.75 29.09 29.09
26.00 5.58 8.90
17.00 13.33 9.68
14.38 43.75 43.75
5.50 22.22 4.76
21.10 40.67 63.88
16.00 25.49 47.13
6.40 6.67 12.53
11.50 17.95 21.05
6.75 14.89 31.71
26.00 18.18 30.00
11.65 19.49 33.14
45.00 38.46 42.29
13.79 20.83 23.03
</TABLE>
<PAGE> 68
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
08/23/96 06/10/96 Vemco Acquisition Corp Bailey Corp 47.8
07/22/96 06/10/96 Merck-Medco Managed Care Inc SysteMed Inc 64.8
07/23/96 06/11/96 Forstmann Little & Co Community Health Systems Inc 1080.0
11/07/96 06/13/96 Citizens Financial Group, RI Farmers & Mechanics Bank,CT 52.9
11/14/96 06/14/96 Western Ohio Financial Corp Seven Hills Financial 11.0
09/16/96 06/20/96 Public Storage Inc Public Storage Properties X 50.2
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
8.75 6.06 11.11
3.00 4.35 9.09
52.00 19.89 18.86
32.00 62.03 62.03
19.70 19.38 19.38
20.92 13.08 10.83
</TABLE>
<PAGE> 69
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
09/16/96 06/20/96 Public Storage Inc Public Storage Properties XII 55.2
08/23/96 06/21/96 United Communications Group Computer Petroleum Corp 12.0
12/05/96 06/24/96 Renaissance Cosmetics Inc MEM Co Inc 38.2
11/01/96 06/24/96 First Banks America Inc Sunrise Bancorp, Roseville, CA 18.7
02/21/97 06/27/96 Northwest Svgs Bk, Warren, PA Bridgeville Savings Bank 18.3
10/02/96 06/28/96 General Re Corp National Re Corp 904.6
09/27/96 06/28/96 Investor Group Salem Corp 46.6
09/25/96 07/01/96 Rockwell International Corp Brooktree Corp 261.8
03/25/97 07/01/96 Tribune Co Renaissance Commun Corp 1094.4
08/08/96 07/02/96 Beacon Group Energy Investment Ambar Inc 66.6
10/10/96 07/12/96 Astor Chemicals ADCO Technologies Inc 53.8
03/01/97 07/15/96 FBOP Corp,Oak Park, Illinois SDNB Finl Corp, San Diego, CA 25.8
08/27/97 07/19/96 Huntsman Corp Rexene Corp 606.8
10/25/96 07/22/96 Cisco Systems Inc Telebit Corp 196.3
02/19/97 07/23/96 Capstar Broadcasting Partners Osborn Communications Corp 89.9
01/03/97 07/29/96 First Nationwide Bank, CA Cal Fed Bancorp, Los Angeles, CA 1287.8
11/29/96 08/02/96 General Electric Capital Corp First Colony Corp 1799.2
04/07/97 08/05/96 American Radio Systems Corp EZ Communications Inc 687.3
02/14/97 08/05/96 PacifiCare Health Systems Inc FHP International Corp 2000.1
10/03/96 08/07/96 Magna International Inc Douglas & Lomason Co 134.6
08/06/97 08/09/96 Houston Industries Inc NorAm Energy Corp 3648.8
11/25/96 08/14/96 Muenchener Rueckversicherungs American Re Corp 3967.8
11/07/96 08/14/96 OSI Holdings Corp Payco American Corp 161.9
09/26/96 08/15/96 Sears Roebuck & Co Orchard Supply Hardware Stores 423.7
09/20/96 08/19/96 Commonwealth Aluminum Corp CasTech Aluminum Group Inc 328.7
12/17/96 08/26/96 Conseco Inc American Travellers Corp 868.3
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
22.34 14.56 15.30
3.85 46.67 71.11
7.50 81.82 90.48
4.00 52.38 45.46
16.00 10.35 8.48
53.00 65.63 60.61
25.00 23.46 11.73
15.00 64.38 16.51
36.00 19.01 20.50
18.00 17.07 50.00
10.25 51.85 57.69
8.00 16.36 18.52
16.00 60.00 56.10
13.35 22.76 4.71
15.38 50.00 38.20
23.50 32.39 31.47
36.15 32.66 39.04
47.30 56.36 89.20
33.27 27.37 19.10
31.00 90.77 103.28
16.12 46.52 41.69
65.00 41.69 44.04
14.00 17.90 60.00
35.00 25.56 28.44
20.50 57.69 45.13
36.91 37.35 81.17
</TABLE>
<PAGE> 70
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
03/04/97 08/26/96 Conseco Inc Capitol American Financial 715.5
01/09/97 08/26/96 Columbus McKinnon Corp Spreckels Industries Inc 259.4
11/08/96 08/28/96 Doubletree Corp Red Lions Hotels(Red Lion Inn) 1174.1
11/14/96 08/29/96 Cypress Group LLC Amtrol Inc 227.2
01/06/97 08/30/96 NationsBank Corp, Charlotte, NC Boatmen's Bancshares,St Louis 9667.1
03/06/97 09/02/96 Potash Corp of Saskatchewan Arcadian Corp 1723.3
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
37.71 51.60 56.31
24.00 24.68 29.73
30.38 33.55 31.38
28.25 56.94 56.94
60.27 48.36 48.36
25.71 20.99 26.96
</TABLE>
<PAGE> 71
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
12/23/96 09/09/96 Revco DS Inc Big B Inc(Revco DS Inc) 335.4
01/03/97 09/10/96 Louisiana-Pacific Corp GreenStone Industries Inc 29.2
03/04/97 09/11/96 American Eco Corp Chempower Inc 50.0
06/30/97 09/12/96 Temple-Inland Financial Svcs California Financial Hldg, CA 146.5
03/31/97 09/16/96 Mutual Savings Bk, Milwaukee, WI First Fed Bancshares of Eau Cl 132.7
12/06/96 09/16/96 Schnitzer Steel Industries Inc Proler International Corp 42.5
04/03/97 09/16/96 PennFirst Bancorp, Ellwood, PA Troy Hill Bancorp, Pennsylvania 22.4
01/27/97 09/16/96 City National Bk, Beverly Hills Ventura County Natl Bancorp, CA 46.7
02/28/97 09/26/96 AH Belo Corp Providence Journal Co 1429.6
06/27/97 09/30/96 Texas Pacific Group Inc Belden & Blake Corp 405.7
02/28/97 09/30/96 Cullen/Frost Bankers Inc, Texas Corpus Christi Bancshares, TX 32.4
04/25/97 10/01/96 Prestige Fragrance & Cosmetics Cosmetic Center Inc 32.8
12/02/96 10/07/96 Computer Associates Intl Inc Cheyenne Software Inc 1247.6
11/22/96 10/08/96 Nash Finch Co Super Food Services Inc 164.2
06/03/97 10/15/96 Investor Group Conrail Inc 10435.9
12/23/96 10/15/96 Berkshire Hathaway Inc FlightSafety International 1518.1
01/27/97 10/16/96 City National Bk, Beverly Hills Riverside Natl Bk, Riverside, CA 42.8
02/27/97 10/17/96 Investor Group Triad Systems Corp 193.1
03/31/97 10/21/96 Investor Group Detroit & Canada Tunnel Corp 36.5
04/16/97 10/23/96 Thomas H Lee Equity Fund III Syratech Corp 304.4
07/01/97 10/31/96 Patriot American Hospitality California Jockey Club/Bay 199.7
12/18/96 10/31/96 Food Lion Inc Kash N' Karry Food Stores Inc 347.1
02/27/97 11/04/96 JC Penney Co Eckerd Corp 3298.5
03/05/97 11/04/96 Citizens Bank of Massachusetts Grove Banks, Chesnut Hill, MA 78.7
05/19/97 11/04/96 Glendale Fed Bk, Glendale, CA TransWorld Bancorp, California 63.2
03/14/97 11/05/96 Harbour Group Ltd Panatech Research & Development 29.2
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- ------------------------------------
<S> <C> <C>
17.25 66.27 58.62
5.25 52.73 58.49
6.20 48.06 45.88
30.00 31.87 31.15
18.85 25.67 25.67
9.00 125.00 148.28
21.15 55.23 52.43
5.03 43.71 38.76
32.27 64.43 65.49
27.00 27.81 31.71
18.84 17.75 17.75
7.63 45.33 103.47
30.50 34.81 30.48
15.50 36.26 29.17
115.00 60.28 60.28
50.00 10.80 10.80
18.00 2.86 29.73
9.25 60.87 89.74
54.00 74.19 54.29
32.00 28.00 29.29
33.00 88.57 103.08
26.00 33.33 6.67
35.00 28.44 29.63
51.00 46.76 50.00
18.25 12.31 30.36
7.00 55.56 51.35
</TABLE>
<PAGE> 72
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
06/13/97 11/07/96 Shoreline Financial Corp, MI SJS Bancorp Inc, St Joseph, MI 26.5
06/12/97 11/12/96 Investor Group Leslie's Poolmart 112.8
12/17/96 11/13/96 IBM Corp Edmark Corp 123.8
01/20/97 11/13/96 FCY Inc Medex Inc 150.6
06/27/97 11/14/96 Vermont Financial Services, VT Eastern Bancorp, Williston, VT 91.9
01/15/97 11/15/96 Mountasia Entertainment Mountasia Entertainment 98.2
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
27.00 13.68 24.14
14.50 31.82 31.82
15.50 63.16 31.92
23.50 57.98 66.74
24.23 4.22 16.77
3.50 12.00 40.00
</TABLE>
<PAGE> 73
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
01/02/97 11/18/96 Intermet Corp Sudbury Inc 155.4
05/01/97 11/22/96 ABN-AMRO Holding NV Standard Fed Bancorp, Troy, MI 1971.1
02/28/97 11/25/96 PCA International Inc American Studios Inc 66.3
01/09/97 11/25/96 Applied Materials Inc Opal Inc 189.6
12/30/96 11/26/96 Clorox Co Armor All Products(McKesson) 410.1
01/16/97 11/27/96 Bell Industries Inc Milgray Electronics Inc 100.0
04/30/97 11/29/96 CityFront Center LLC Chicago Dock and Canal Trust 177.9
01/06/97 11/29/96 Tyco International Ltd ElectroStar Inc 111.0
01/30/97 12/02/96 Venator Group Inc Eastbay Inc 146.0
05/01/97 12/03/96 Dime Bancorp Inc, New York, NY BFS Bankorp Inc, New York, NY 91.5
02/26/97 12/05/96 ServiceMaster LP Barefoot Inc 230.9
04/11/97 12/05/96 Public Storage Inc Public Storage Properties XIV 82.4
04/11/97 12/05/96 Public Storage Inc Public Storage Properties XV 79.1
01/10/97 12/05/96 Hadco Corp Zycon Corp 211.7
02/21/97 12/11/96 Aon Corp Alexander & Alexander Services 1227.4
01/27/97 12/16/96 Zurn Industries Inc Eljer Industries Inc 175.6
01/27/97 12/16/96 Millipore Corp Tylan General Inc 147.7
03/25/97 12/19/96 NIPSCO Industries Inc IWC Resources Corp 290.6
07/01/97 12/23/96 Mercantile Bancorp, St Louis, MO Roosevelt Finl Group,Missouri 1187.1
04/16/97 12/24/96 American General Corp Home Beneficial Corp 665.1
06/09/97 12/26/96 Commerce Security Bancorp, CA Eldorado Bancorp, Tustin, CA 91.7
05/01/97 12/27/96 US Bancorp, Portland, Oregon Business & Professional Bk, CA 33.5
02/25/97 01/07/97 MedTrans Inc(Laidlaw Inc) American Medical Response Inc 1011.1
02/10/97 01/07/97 DLB Oil & Gas Inc Bonray Drilling Corp 12.7
04/24/97 01/17/97 AMF Bowling Centers(AMF Group) American Recreation Centers 70.7
07/08/97 01/21/97 First Maryland Bancorp, MD Dauphin Deposit Corp, PA 1343.4
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
12.50 25.00 9.89
59.00 6.79 15.40
2.50 110.53 166.67
18.50 64.44 105.56
19.09 13.97 13.97
14.77 16.99 20.57
25.00 22.70 22.70
14.00 27.27 16.67
24.00 28.00 23.08
52.00 16.85 22.35
16.00 28.00 42.22
26.00 30.82 31.65
26.00 28.40 32.48
18.00 46.94 94.60
17.50 8.53 9.38
24.00 84.62 90.10
16.00 26.73 26.73
32.00 39.13 45.46
24.43 32.05 26.09
39.00 39.29 50.00
23.00 14.29 12.88
18.00 20.00 30.91
40.00 23.08 36.75
30.00 11.11 30.44
8.50 33.33 70.00
46.93 43.28 48.97
</TABLE>
<PAGE> 74
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
03/05/97 01/22/97 Western Atlas Inc Norand Corp 320.8
07/02/97 01/24/97 American Standard Inc INCSTAR Corp(Sorin Biomedical) 106.3
07/24/97 01/27/97 EndoSonics Corp Cardiometrics Inc 56.8
03/07/97 01/27/97 Honeywell Inc Measurex Corp 597.0
03/10/97 02/03/97 Scotsman Industries Inc Kysor Industrial Corp 359.2
03/31/97 02/10/97 Vencor Inc TheraTx Inc 378.2
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
33.50 87.41 94.20
6.32 53.21 68.53
7.54 13.81 47.12
35.00 42.13 45.83
43.00 17.01 24.64
17.10 35.45 59.07
</TABLE>
<PAGE> 75
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
03/24/97 02/11/97 Johnson & Johnson Innotech Inc 135.6
09/17/97 02/14/97 Greenwich Air Services Inc UNC Inc 442.7
06/27/97 02/18/97 NGC Corp Destec Energy Inc 1222.4
08/06/97 02/19/97 United Bankshares Inc, WV First Patriot Bankshares, VA 35.4
07/07/97 02/25/97 Pacific Century Financial Corp CU Bancorp, Encino, California 178.4
07/21/97 02/26/97 MassBank Corp, Reading, MA Glendale Co-Operative Bank, MA 6.9
08/01/97 02/28/97 CIGNA Corp Healthsource Inc 1652.7
06/27/97 03/04/97 Ultimate Electronics Inc Audio King Corp 6.0
08/13/97 03/06/97 Fireman's Fund Insurance Co Crop Growers Corp 82.1
09/02/97 03/10/97 General Electric Co Greenwich Air Services Inc 519.2
04/15/97 03/11/97 PacifiCorp Holdings Inc TPC Corp 408.5
10/01/97 03/14/97 Marshall & Ilsley, Milwaukee, WI Security Capital, Milwaukee, WI 1115.8
09/04/97 03/17/97 TCF Finl Corp, Minneapolis, MN Standard Financial, Chicago, IL 428.0
06/17/97 03/20/97 InvestCorp Falcon Building Products Inc 584.5
06/12/97 03/21/97 Olicom A/S CrossComm Corp 84.6
04/28/97 03/24/97 Elsevier Science MDL Information Systems 310.7
05/07/97 03/25/97 IBP Inc (Occidental Petroleum) Foodbrands America Inc 657.5
09/03/97 03/26/97 Hearst Broadcasting Group Argyle Television Inc 322.2
08/01/97 03/26/97 Deposit Guaranty, Jackson, MS CitiSave Finl, Baton Rouge, LA 20.3
10/01/97 03/31/97 Astoria Finl, Lake Success, NY Greater NY Svgs Bk, New York, NY 318.1
06/03/97 03/31/97 Moore Corp Ltd Peak Technologies Group Inc 169.8
08/28/97 04/08/97 Citizens Financial Group, RI BNH Bancshares, New Haven, CT 58.0
06/12/97 04/08/97 Jacor Communications Inc Premiere Radio Networks Inc 208.9
06/24/97 04/09/97 Public Storage Inc Public Storage Properties XVI 84.2
06/24/97 04/09/97 Public Storage Inc Public Storage Ppties XVIII 78.6
06/24/97 04/09/97 Public Storage Inc Public Storage Properties XIX 67.9
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- ------------------------------------
<S> <C> <C>
13.75 64.18 54.93
15.00 41.18 36.36
21.65 80.42 63.40
17.00 9.68 4.62
15.34 18.00 25.22
28.00 33.33 40.00
21.75 32.82 64.15
2.10 68.00 68.00
10.25 15.49 41.38
31.00 33.33 34.78
13.41 65.05 55.48
111.06 32.61 39.92
25.81 28.25 24.76
17.75 49.47 52.69
8.93 70.17 70.17
32.00 43.82 54.22
23.40 50.97 61.38
26.50 16.48 14.60
20.50 50.46 46.43
25.16 56.01 62.30
18.00 97.26 65.52
15.50 26.53 19.23
18.78 19.23 19.23
20.01 5.32 2.62
19.55 7.12 2.90
16.52 3.25 3.25
</TABLE>
<PAGE> 76
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
05/13/97 04/09/97 Tomkins PLC Stant Corp 574.0
07/21/97 04/09/97 Procter & Gamble Co Tambrands Inc 2003.9
06/13/97 04/10/97 Hedstrom Corp(Hedstrom Hldgs) ERO Inc 203.6
06/26/97 04/10/97 Compaq Computer Corp Microcom Inc 267.6
11/12/97 04/14/97 Neptune Orient Lines Ltd APL Ltd 878.5
01/05/98 04/14/97 Patriot Amer Hosp/Wyndham Intl Wyndham Hotel Corp 773.1
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
21.50 48.28 49.57
50.00 14.94 14.94
11.25 16.88 30.44
16.25 91.18 35.42
33.50 65.43 42.55
30.53 44.52 48.93
</TABLE>
<PAGE> 77
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
06/30/97 04/15/97 Lernout & Hauspie Speech Kurzweil Applied Intelligence 51.3
07/10/97 04/18/97 Investor Group LIVE Entertainment Inc 53.1
05/28/97 04/21/97 ITT Industries Inc Goulds Pumps Inc 922.1
06/10/97 04/21/97 Harcourt General Inc National Education Corp 776.1
09/04/97 04/22/97 Fox Kids Worldwide Inc International Family Ent Inc 1862.9
12/12/97 04/25/97 Peoples Bancorp, Marietta, OH Gateway Bancorp, KY 20.6
10/01/97 05/01/97 Area Bancshares Corp, Kentucky Cardinal Bancshares, Kentucky 96.0
08/01/97 05/01/97 Chart Industries Inc Cryenco Sciences Inc 19.2
07/30/97 05/01/97 Choucroute Partners David White Inc 5.9
08/19/97 05/05/97 Giant Eagle Inc Riser Foods Inc 468.5
06/13/97 05/05/97 Incentive AB Vivra Inc 1660.5
08/15/97 05/06/97 GTE Corp BBN Corp 713.8
01/05/98 05/06/97 Foundation Health Systems Inc Physicians Health Services Inc 268.2
07/25/97 05/06/97 Riddell Sports Inc Varsity Spirit 91.0
06/03/98 05/07/97 Unitrin Inc Reliable Life Insurance Co 261.1
09/10/97 05/08/97 Nicolet Biomedical Inc Imex Medical Systems Inc 9.3
11/04/97 05/08/97 Apollo Management LP Living Centers of America Inc 1048.2
10/16/97 05/12/97 CTS Corp Dynamics Corp of America 244.6
08/14/97 05/21/97 Oxford Automotive Inc Howell Industries Inc 23.0
10/06/97 05/23/97 Price Communications Corp Palmer Wireless Inc 870.4
08/08/97 05/27/97 Columbia Natural Resources Inc Alamco Inc 102.8
07/03/97 05/28/97 Owens Corning Fibreboard Corp 631.2
07/09/97 05/30/97 Whitehall Street Real Estate Integrated Living Communities 79.7
10/16/97 05/30/97 Colonnade Capital LLC National Picture and Frame Co 60.3
09/08/97 06/03/97 Humana Inc Physician Corp of America 405.1
07/14/97 06/05/97 Intermedia Communications Inc DIGEX Inc 171.6
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- ------------------------------------
<S> <C> <C>
5.52 69.69 66.49
6.00 6.67 50.00
37.00 57.45 60.87
21.00 54.13 40.00
35.00 95.80 107.41
18.75 15.39 25.00
60.26 33.91 31.00
2.75 76.00 72.55
12.00 14.29 18.52
42.00 29.23 26.79
35.62 41.77 35.70
29.00 32.57 64.54
28.25 26.97 51.68
18.90 28.14 23.93
120.13 51.11 52.06
1.35 2.76 2.76
40.50 22.73 41.49
64.08 94.17 112.70
37.00 30.40 32.14
17.50 55.56 64.71
15.75 11.50 16.67
55.00 22.22 49.66
11.50 21.05 50.82
12.00 28.00 28.00
7.00 12.00 23.08
13.00 35.95 31.65
</TABLE>
<PAGE> 78
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
10/14/97 06/06/97 Excel Communications Inc Telco Communications Group Inc 1046.5
10/01/97 06/09/97 SAFECO Corp American States Financial Corp 3127.1
07/15/97 06/09/97 Atlas Copco North America Inc Prime Service Inc 1112.0
10/01/97 06/12/97 Thyssen AG Giddings & Lewis Inc 703.0
08/29/97 06/16/97 United Dominion Industries Ltd Core Industries Inc 275.2
09/30/97 06/16/97 Investor Group Frederick's of Hollywood, Inc. 69.4
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
29.24 23.77 26.44
47.00 48.62 57.32
32.00 29.95 31.28
21.00 9.80 0.60
25.00 37.93 49.25
7.75 44.47 25.95
</TABLE>
<PAGE> 79
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
10/10/97 06/16/97 Genesis Eldercare Multicare Cos Inc 1249.1
07/24/97 06/17/97 Monterey Resources Inc McFarland Energy Inc 111.2
07/25/97 06/17/97 CCL Industries Inc Seda Specialty Packaging Corp 182.6
08/15/97 06/19/97 Gateway 2000 Inc Advanced Logic Research Inc 206.8
11/13/97 06/23/97 Crestar Finl Corp, Richmond, VA American National Bancorp, MD 75.2
10/17/97 06/23/97 General Motors Acceptance(GM) Integon Corp 517.1
10/14/97 06/24/97 Louis Dreyfus Natural Gas American Exploration Co 275.5
07/25/97 06/24/97 JW Childs Equity Partners LP Jillians Entertainment Corp 4.7
09/29/97 06/24/97 Three Rivers Holding Corp SMT Health Services Inc 75.6
10/09/97 06/30/97 Eaton Corp Fusion Systems Corp 308.6
12/18/97 07/01/97 HMN Financial, Spring Valley, MN Marshalltown Financial Corp, IA 25.9
09/23/97 07/02/97 Bunzl PLC American Filtrona Corp 183.5
10/28/97 07/02/97 Summa Industries Inc Calnetics Corp 23.4
09/26/97 07/03/97 Port Royal Holdings Inc Krystal Co 145.4
08/06/97 07/03/97 Raab Karcher AG(VEBA AG) Wyle Electronics 633.0
10/24/97 07/08/97 ING Groep NV Equitable of Iowa Cos 2626.4
09/23/97 07/09/97 CDSI Holding Corp Control Data Systems Inc 273.9
10/28/97 07/14/97 Investor Group Katz Media Group 371.9
09/04/97 07/15/97 Nortek Inc Ply-Gem Industries Inc 476.3
09/29/97 07/17/97 Lucent Technologies Inc Octel Communications Corp 1824.8
12/02/97 07/23/97 Benihana Inc Rudy's Restaurant Group 18.8
09/15/97 07/24/97 Mallinckrodt Inc Nellcor Puritan-Bennett 1858.4
02/02/98 07/28/97 Intel Corp Chips and Technologies Inc 422.9
10/08/97 07/28/97 Sun Healthcare Group Inc Regency Health Services Inc 587.9
09/24/97 07/31/97 American Industrial Partners Bucyrus International Inc 193.3
01/27/98 07/31/97 Western Bancorp,California Santa Monica Bank 198.2
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
28.00 13.71 34.94
18.55 41.33 44.78
29.00 36.47 52.63
15.50 30.53 34.78
20.32 33.21 36.57
26.00 92.59 74.79
15.96 15.03 21.60
0.50 77.78 45.46
11.75 2.17 8.05
39.00 9.86 24.30
17.51 12.97 16.73
46.52 2.24 3.38
7.35 33.64 25.11
14.50 169.77 176.19
50.00 38.41 35.14
68.00 20.35 21.70
20.25 30.65 35.00
11.00 69.23 93.41
19.50 16.42 19.08
31.00 37.40 41.31
5.00 70.21 72.04
28.50 43.40 57.24
17.50 32.08 68.68
22.00 50.43 43.09
18.00 46.94 71.43
28.00 17.59 28.74
</TABLE>
<PAGE> 80
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
09/26/97 08/01/97 Integrated Health Services Inc Community Care of America Inc 94.0
12/02/97 08/07/97 SPS Technologies Inc Magnetic Technologies Corp 16.8
12/22/97 08/08/97 USF&G Corp Titan Holdings Inc 278.1
12/19/97 08/11/97 Confetti Acquisition Inc Amscan Holdings Inc 334.9
09/17/97 08/12/97 Steris Corp Isomedix Inc 139.8
03/03/98 08/12/97 Hicks Muse Tate & Furst Inc LIN Television Corp 1960.6
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
4.00 18.52 88.24
5.00 25.00 33.33
22.47 19.06 24.85
16.50 37.50 46.67
20.50 15.49 13.89
55.00 18.75 18.01
</TABLE>
<PAGE> 81
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
09/24/97 08/14/97 MedPartners Inc Talbert Medical Management 189.0
12/29/97 08/14/97 Madison Dearborn Partners Tuesday Morning Corp 298.6
12/05/97 08/14/97 Comforce Corp Uniforce Services Inc 140.7
10/21/97 08/25/97 Household International Inc ACC Consumer Finance Corp 186.9
10/03/97 08/25/97 Cambrex Corp BioWhittaker Inc 130.5
12/22/97 08/26/97 Imperial Holly Corp Savannah Foods & Industries 582.9
02/25/98 08/28/97 Wellsford Real Properties Inc Value Property Trust 186.6
10/10/97 08/28/97 Applied Power Inc Versa Technologies Inc 141.9
01/09/98 09/04/97 Tyson Foods Inc Hudson Foods Inc 648.4
11/26/97 09/05/97 Misys PLC Medic Computer Systems Inc 915.8
12/22/97 09/11/97 Pillowtex Corp Fieldcrest Cannon Inc 768.2
12/09/97 09/12/97 Tivoli Systems Inc(IBM Corp) Unison Software Inc 183.0
02/06/98 09/15/97 Star Banc Corp, Cincinnati, OH Great Financial Corp,Kentucky 663.5
01/16/98 09/19/97 Marshall Industries Sterling Electronics Corp 217.6
12/05/97 09/22/97 Conseco Inc Washington National Corp 424.0
01/22/98 09/23/97 Investor Group El Chico Restaurants Inc 49.2
01/12/98 09/23/97 Shell Oil(Royal Dutch Petro) Tejas Gas Corp 2165.6
11/24/97 09/24/97 Ligand Pharmaceuticals Inc Allergan Ligand Retinoid 71.4
02/19/98 09/25/97 Carpenter Technology Corp Talley Industries Inc 309.4
12/22/97 09/29/97 Wallace Computer Services Inc Graphic Industries Inc 424.5
11/26/97 09/30/97 AHC Acquisition Corp Arbor Health Care Co 424.2
12/05/97 10/01/97 Land O' Lakes Inc Alpine Lace Brands Inc 48.4
12/23/97 10/09/97 Borden Chemical Inc(Borden) Melamine Chemicals Inc 119.7
11/19/97 10/10/97 Kennametal Inc Greenfield Industries Inc 957.0
11/21/97 10/15/97 FinishMaster Inc(Lacey Distn) Thompson PBE Inc 69.3
02/12/98 10/16/97 Hartford Financial Services Omni Insurance Group Inc 184.7
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
63.00 18.87 36.96
25.00 25.79 11.11
32.24 37.56 52.62
21.39 34.75 29.64
11.63 38.87 47.68
20.25 14.89 17.39
16.17 20.90 18.68
24.63 33.11 31.33
21.23 31.63 28.64
35.00 12.00 25.00
34.00 8.58 31.72
15.00 25.00 22.45
44.00 23.51 33.84
21.00 30.23 57.01
33.25 4.11 12.24
12.75 75.86 104.00
61.50 22.39 33.70
21.97 11.59 7.83
12.00 10.98 34.27
21.75 19.18 34.88
45.00 19.60 26.76
9.13 48.98 46.00
20.50 72.63 70.83
38.00 26.67 44.08
8.00 33.33 42.22
31.75 75.78 130.91
</TABLE>
<PAGE> 82
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
12/29/97 10/17/97 Emerson Electric Co Computational Systems Inc 158.6
11/19/97 10/17/97 BTR PLC Exide Electronics Group Inc 583.2
03/31/98 10/17/97 First Federal Savings, Iowa GFS Bancorp Inc, Grinnell, IA 17.9
02/24/98 10/20/97 Starwood Hotels & Resorts ITT Corp 13748.2
03/06/98 10/20/97 Kinder Morgan Energy Partners Santa Fe Pacific Pipeline 1473.0
01/07/98 10/21/97 Berkshire Hathaway Inc International Dairy Queen Inc 596.9
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
29.65 48.25 62.47
29.00 133.17 149.46
17.65 7.38 13.87
85.00 98.25 95.40
54.21 33.24 38.56
27.00 9.09 9.37
</TABLE>
<PAGE> 83
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
02/27/98 10/23/97 Eastern Bank Corp, Lynn, MA Emerald Isle Bancorp, Quincy, MA 76.6
02/10/98 10/27/97 National Australia Bank Ltd HomeSide Inc 1230.1
04/01/98 10/28/97 First Empire State Corp, NY ONBANCorp Inc, Syracuse, NY 893.0
05/22/98 11/03/97 FirstMerit Corp CoBancorp Inc 157.3
03/03/98 11/12/97 Tekni-Plex Inc PureTec Corp 324.6
03/25/98 11/13/97 Investor Group Chartwell Leisure Inc 240.8
01/08/98 11/18/97 Cendant Corp Jackson Hewitt 468.2
02/27/98 11/19/97 Texas Instruments Inc Amati Communications Corp 459.8
01/28/98 11/21/97 TRW Inc BDM International Inc 888.0
01/20/98 11/21/97 Co-Steel Inc New Jersey Steel(Von Roll) 173.5
02/03/98 11/24/97 Davel Communications Group Inc Communications Central Inc 102.4
01/07/98 11/24/97 Cypress Group LLC General Host Corp 326.2
02/25/98 11/26/97 Investor Group Universal Hospital Services 133.0
12/30/97 11/28/97 Lund International Holdings Deflecta-Shield Corp 89.8
06/02/98 12/02/97 Patriot Amer Hosp/Wyndham Intl Interstate Hotels Co 2055.9
02/13/98 12/12/97 Voith Sulzer Paper Technology Impact Systems Inc 28.6
05/29/98 12/12/97 Bethlehem Steel Corp Lukens Inc 700.2
05/01/98 12/15/97 US Bancorp, Minneapolis, MN Piper Jaffray Cos 767.8
01/30/98 12/16/97 SulzerMedica(Gebrueder Sulzer) Spine-Tech Inc 621.1
01/23/98 12/17/97 InvaCare Corporation Suburban Ostomy Supply Co Inc 130.8
06/17/98 12/19/97 Harsco Corp Chemi-Trol Chemical Co 46.1
05/20/98 12/22/97 MDC Communications Corp Artistic Greetings Inc 33.6
04/01/98 12/23/97 Outsourcing Solutions Inc Union Corp 193.0
07/06/98 12/30/97 Pacific Bank NA, CA Sterling West Bancorp, CA 12.2
07/17/98 01/05/98 Meditrust Acquisition Co La Quinta Inns Inc 2907.5
04/01/98 01/06/98 Oakwood Homes Corp Schult Homes Corp 101.4
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
33.00 28.78 33.33
27.83 12.14 7.28
69.50 12.89 21.40
44.50 30.88 52.14
3.50 34.94 31.77
17.25 4.55 11.29
68.00 21.70 47.83
20.00 44.14 13.48
29.50 43.47 38.01
23.00 170.59 166.67
10.50 25.37 12.00
5.50 62.96 79.59
15.50 29.17 25.25
16.00 33.33 77.78
37.50 8.70 27.39
2.75 49.15 44.26
30.00 94.33 69.61
37.25 24.17 54.01
52.00 52.94 55.81
11.75 13.25 13.25
23.00 61.40 64.29
5.70 47.10 52.00
31.50 13.51 23.53
7.11 35.43 23.65
26.00 35.95 35.95
22.50 10.43 19.21
</TABLE>
<PAGE> 84
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
02/19/98 01/12/98 Research Institute of America Computer Language Research Inc 325.4
07/31/98 01/13/98 CertainTeed Corp Bird Corp 39.2
06/02/98 01/14/98 EastGroup Properties Meridian Point Realty Trust 51.7
10/05/98 01/20/98 Albertson's Inc Buttrey Food and Drug Stores 139.2
05/27/98 01/20/98 Investor Group Regal Cinemas Inc 1462.7
05/15/98 01/21/98 Microsemi Corp BKC Semiconductors Inc 13.3
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- ------------------------------------
<S> <C> <C>
22.50 62.16 69.81
5.50 18.92 29.41
8.50 65.85 88.89
15.50 44.19 47.62
31.00 10.71 34.78
9.17 59.48 66.73
</TABLE>
<PAGE> 85
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
06/11/98 01/26/98 Compaq Computer Corp Digital Equipment Corp 9123.7
03/03/98 01/27/98 Sage Group PLC State of the Art Inc 245.2
03/05/98 01/28/98 Kerr Group Inc Sun Coast Industries Inc 45.5
06/05/98 01/29/98 US Aggregates Inc Monroc Inc 50.3
05/21/98 01/29/98 AmeriServe Food Distn Inc ProSource Inc(Onex Corp) 343.3
06/18/98 02/09/98 USA Waste Services Inc American Waste Services 122.1
06/30/98 02/09/98 Banco Bilbao Vizcaya SA PonceBank 164.5
04/16/98 02/09/98 Fountain View(Heritage) Summit Care Corp 275.1
06/04/98 02/10/98 Canadian National Railway Co Illinois Central Corp 2931.0
06/10/98 02/11/98 Sombrero Acquisition Corp MTL Inc 250.1
05/20/98 02/11/98 Wolters Kluwer NV Waverly Inc 375.6
08/17/98 02/17/98 HB Acquisition Corp Bell Sports Corp 165.7
05/27/98 02/17/98 Applied Graphics Technologies Devon Group Inc 474.4
10/15/98 02/19/98 Hollywood Park Inc Casino Magic Corp 344.8
04/06/98 02/24/98 Siebe PLC Wonderware Corp 362.7
08/17/98 03/02/98 El Paso Natural Gas Co DeepTech International 375.4
04/30/98 03/02/98 Sunbeam Corp First Alert Inc 129.2
04/30/98 03/02/98 Sunbeam Corp Signature Brands USA Inc 81.7
05/20/98 03/05/98 Xerox Corp Intelligent Electronics Inc 341.6
07/31/98 03/06/98 Aluminum Co of America{Alcoa} Alumax Inc 3944.2
04/30/98 03/06/98 ASK AS Proxima Corp 82.9
06/25/98 03/09/98 American Cellular Corp PriCellular Corp 1385.2
06/19/98 03/10/98 Communications Instruments Inc Corcom Inc 51.7
04/20/98 03/12/98 Great Universal Stores PLC Metromail Corp 837.9
07/31/98 03/13/98 Investor Group MedCath Inc 227.8
07/10/98 03/16/98 Abbott Laboratories International Murex Tech Corp 232.7
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
60.00 50.25 62.45
22.00 35.39 35.39
10.75 62.26 84.95
10.77 10.46 6.37
15.00 106.90 100.00
4.00 156.00 166.67
26.10 14.10 25.78
21.00 31.25 37.71
39.00 20.00 18.86
40.00 38.53 56.10
39.00 50.73 50.73
10.25 13.10 8.61
60.08 32.03 37.91
2.27 32.07 32.07
24.00 59.34 79.44
14.00 9.80 15.46
5.25 90.91 110.00
8.25 60.98 106.25
7.60 19.22 34.37
49.39 33.26 36.25
11.00 25.71 23.94
14.00 16.67 16.06
13.00 31.65 36.84
34.50 28.37 30.19
19.00 10.95 34.51
13.00 38.21 50.73
</TABLE>
<PAGE> 86
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
05/11/98 03/30/98 Knowledge Beginnings Inc Children's Discovery Centers 89.1
07/21/98 04/03/98 NE Restaurant Co Inc Bertucci's Inc 96.5
05/19/98 04/08/98 Huntsman Packaging Corp Blessings Corp 269.7
05/15/98 04/09/98 Richfood Holdings Inc Dart Group Corp 193.3
07/29/98 04/09/98 Camelot Music Holdings Spec's Music Inc 26.8
06/26/98 04/10/98 CompuCom SystemsInc(Safeguard) Dataflex Corp 25.2
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
12.25 16.67 25.64
10.50 35.48 35.48
21.00 18.31 34.94
160.00 11.89 19.40
3.30 65.00 65.00
4.10 9.33 23.77
</TABLE>
<PAGE> 87
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
05/29/98 04/15/98 Siebe PLC Simulation Sciences Inc 146.5
07/21/98 04/17/98 Sterling Commerce Inc XcelleNet Inc 214.3
08/25/98 04/21/98 Investor Group PCA International Inc 232.5
06/24/98 04/21/98 General Electric Co PLC Tracor Inc 1323.5
06/29/98 04/22/98 Evans & Sutherland Computer AccelGraphics Inc 55.9
07/31/98 04/23/98 Piccadilly Cafeterias Inc Morrison Restaurants Inc 46.2
08/30/98 04/27/98 Genesis Health Ventures Inc Vitalink Pharmacy Services Inc 678.4
06/01/98 04/27/98 Lucent Technologies Inc Yurie Systems Inc 1044.1
07/20/98 04/28/98 Snap-On Inc Hein-Werner Corp 37.5
06/10/98 05/04/98 Tropical Sportswear Intl Corp Farah Inc 93.6
06/29/98 05/04/98 ARCO Union Texas Petroleum Holdings 2741.4
09/25/98 05/05/98 Investor Group Allied Digital Technologies Co 69.2
08/06/98 05/06/98 Fidelity & Deposit Co of MD Mountbatten Inc 43.4
06/15/98 05/08/98 Agrobios(Desc SA de CV) Authentic Specialty Foods Inc 141.9
07/14/98 05/11/98 Diamond Multimedia Systems Inc Micronics Computers Inc 31.7
06/26/98 05/13/98 Filtronic Comtek PLC Sage Laboratories Inc 20.2
08/19/98 05/18/98 Dillard's Inc Mercantile Stores Co Inc 2943.1
09/15/98 05/20/98 GE Medical Systems InnoServ Technologies 13.1
10/22/98 05/20/98 Licking Rural Electrification National Gas & Oil Co 93.0
07/22/98 05/22/98 Gambrinus Co Pete's Brewing Co 69.4
07/07/98 05/28/98 Bowne & Co Inc Donnelley Enterprise Solutions 105.2
08/28/98 06/01/98 US Xpress Enterprises Inc PST Vans Inc 83.9
07/21/98 06/12/98 Armstrong World Industries Inc Triangle Pacific Corp 1124.3
08/31/98 06/16/98 Linsalata Capital Partners Personnel Management Inc 34.9
09/08/98 06/17/98 Carlton Communications PLC Nimbus CD International Inc 264.9
07/28/98 06/18/98 Lyondell Petrochemical Co ARCO Chemical Co(ARCO) 5645.7
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- ------------------------------------
<S> <C> <C>
10.00 16.79 11.11
22.02 12.55 7.73
26.50 17.78 20.46
40.00 16.79 25.00
5.75 22.67 21.05
5.00 73.91 81.82
22.50 12.15 6.51
35.00 17.40 49.73
12.60 65.25 80.00
9.00 44.00 39.81
29.00 46.84 36.47
5.00 14.29 37.93
14.60 6.18 4.29
17.00 13.33 37.37
2.45 15.29 50.77
17.50 34.62 35.92
80.00 9.59 15.42
4.25 32.04 41.67
13.00 18.18 26.06
6.38 39.73 42.66
21.00 61.54 83.61
7.47 35.82 10.67
55.50 26.50 24.02
16.00 23.08 23.08
11.50 5.75 10.84
57.75 12.27 3.36
</TABLE>
<PAGE> 88
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
09/22/98 06/29/98 Key Energy Group Inc Dawson Production Services Inc 348.8
09/21/98 07/07/98 Investor Group Republic Engineered Steels 417.8
09/18/98 07/14/98 Henkel KGaA DEP Corp 89.7
09/02/98 07/17/98 DLJ Merchant Banking Inc DeCrane Aircraft Holdings Inc 181.5
10/06/98 07/20/98 SPX Corp General Signal Corp 2318.7
09/10/98 07/28/98 Network Associates Inc CyberMedia Inc 130.1
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- ------------------------------------
<S> <C> <C>
17.50 50.54 66.67
7.25 68.12 45.00
5.25 95.35 78.72
23.00 28.67 33.82
45.00 22.66 19.40
9.50 38.18 117.14
</TABLE>
<PAGE> 89
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
09/11/98 07/29/98 EBC Texas Acquisition Corp E-Z Serve Corp 43.2
10/15/98 07/30/98 Hercules Inc BetzDearborn Inc 3090.3
11/13/98 09/23/98 USFreightways Corp Golden Eagle Group Inc 30.2
11/30/98 10/21/98 Union Planters Bk Nat Assoc Capital Factors Holdings Inc 22.2
12/14/98 10/27/98 Allmerica Financial Corp Citizens Corp(Hanover Ins Co) 212.4
12/10/98 11/02/98 Danone Group AquaPenn Spring Water Co Inc 110.3
12/22/98 11/09/98 Stonington Partners Inc Global Motorsport Group Inc 109.0
12/22/98 11/10/98 Select Medical Corp Intensiva Healthcare Corp 115.2
12/16/98 11/10/98 Roanoke Electric Steel Steel of West Virginia Inc 116.8
01/06/99 11/16/98 Vulcan Materials Co CalMat Co 886.6
03/30/99 11/17/98 Prologis Trust Meridian Industrial Trust Inc 1456.8
04/23/99 11/18/98 Foilmark Inc HoloPak Technologies Inc 12.9
02/22/99 11/19/98 American Airlines Inc(AMR) Reno Air Inc 141.3
01/08/99 11/20/98 Maxxim Medical Inc Circon Corp 243.7
01/13/99 11/23/98 GE Fanuc Automation N America Total Control Products Inc 99.6
03/24/99 11/24/98 BGI Acquisition LLC Besicorp Group Inc 111.8
04/23/99 12/02/98 Pinault-Printemps Redoute Brylane Inc 230.6
04/05/99 12/03/98 Investor Group Back Bay Restaurants Group Inc 38.9
01/22/99 12/03/98 L-3 Communications Holdings Microdyne Corp 90.0
04/13/99 12/03/98 Fairfax Financial Holdings Ltd TIG Holdings Inc 846.8
02/11/99 12/07/98 GKN PLC Interlake Corp 466.7
01/27/99 12/11/98 Misys PLC C-ATS Software Inc 59.0
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- -----------------------------------
<S> <C> <C>
0.60 20.00 20.00
72.00 94.60 73.49
4.45 184.80 223.64
17.50 8.95 2.94
33.25 17.18 20.91
13.00 100.00 160.00
19.50 33.76 31.09
9.63 60.42 92.50
10.75 100.00 79.17
31.00 16.71 32.98
25.00 14.94 8.99
3.64 66.40 104.35
7.75 15.89 44.19
15.00 13.21 0.00
11.00 12.82 18.92
36.97 11.59 6.37
24.50 88.46 44.12
10.25 13.89 28.13
5.00 60.00 44.14
16.50 29.41 15.28
7.25 110.91 100.00
7.50 66.67 90.48
</TABLE>
<PAGE> 90
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
02/16/99 12/11/98 Cracker Barrel Old Country Str Logans Roadhouse Inc 178.3
03/24/99 12/13/98 Kensington Acquisition Sub Inc Cellular Communications Intl 1687.9
01/21/99 12/15/98 EMAP PLC Petersen Companies Inc 1494.8
01/25/99 12/16/98 Seita Consolidated Cigar Holdings 730.4
01/25/99 12/16/98 CustomerOne Holding Corp LCS Industries Inc 89.1
03/15/99 12/17/98 Phar-Mor Inc Pharmhouse Corp 34.4
02/04/99 12/17/98 Moriarty Acquisition Corp Rival Co 129.4
03/01/99 12/18/98 Borg-Warner Automotive Inc Kuhlman Corp 789.9
01/26/99 12/18/98 Rohm and Haas Co LeaRonal Inc 449.2
03/04/99 12/24/98 Investor Group COHR Inc 21.7
04/20/99 12/27/98 Fairchild Corp Kaynar Technologies Inc 388.7
03/01/99 01/06/99 Marriott International Inc ExecuStay Corp 64.8
02/24/99 01/07/99 General Chemical Group Inc Defiance Inc 57.8
02/22/99 01/11/99 ADT Inc(ADT Group PLC) Alarmguard Holdings Inc 53.4
02/25/99 01/19/99 Louisiana-Pacific Corp ABT Building Products Corp 222.0
04/09/99 01/19/99 Steag AG(Ruhrkohle AG) AG Associates Inc 34.6
03/24/99 01/19/99 United Information Group Audits & Surveys Worldwide Inc 43.2
03/23/99 01/19/99 Dura Automotive Systems(Onex) Excel Industries Inc 482.1
04/09/99 02/01/99 Eaton Corp Aeroquip-Vickers Inc 1633.9
03/24/99 02/08/99 Computer Associates Intl Inc Computer Management Sciences 425.1
03/22/99 02/11/99 Federated Department Stores Fingerhut Cos Inc 1544.1
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- ------------------------------------
<S> <C> <C>
24.00 10.35 33.80
80.00 25.49 26.98
34.00 43.92 39.85
17.85 33.46 86.67
17.50 21.74 52.17
3.25 188.89 181.08
13.75 25.00 92.98
39.00 43.12 38.36
34.00 37.37 59.06
6.50 89.09 116.67
28.75 27.78 38.55
14.00 7.18 9.80
9.50 43.40 46.15
9.25 12.98 21.31
15.00 29.03 50.00
5.50 33.33 49.15
3.24 36.42 29.60
26.18 41.01 55.11
58.00 68.12 91.74
28.00 64.71 72.31
25.00 22.70 40.85
</TABLE>
<PAGE> 91
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF
DATE DATE TRANSACTION
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
04/15/99 03/01/99 General Electric Co PLC Reltec Corp 2101.8
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
PRICE 1 WEEK 4 WEEKS
PER PRIOR TO PRIOR TO
SHARE ANN. DATE ANN. DATE
- --------------------------------------------
<S> <C> <C>
29.50 47.96 55.26
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------
<S> <C> <C>
Median 31.84 37.54
Average 37.73 44.29
Adj. Avg. 37.46 43.97
------------------------------------------
Below 20% 130 87
% Below 20% 30.4% 20.3%
</TABLE>
<PAGE> 92
STOCK PRICE ANALYSIS
UNITED FOODS - CLASS A
SHARES TRADED AT VARIOUS PRICES FROM 1/1/98 TO 5/5/99
<TABLE>
<CAPTION>
CUMULATIVE
------------------------------------------------
DAYS % OF TOTAL % OF TOTAL DAYS % OF TOTAL % OF TOTAL
TRADING DAILY AVG. DAYS TRADING TRADING DAILY AVG. DAYS TRADING TRADING
RANGE (1) IN RANGE TRADED VOLUME VOLUME IN RANGE TRADED VOLUME VOLUME
--------- -------- ------ ------ ------ -------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LESS THAN $2.30 0 0.0% - 0.0% 0 0.0% - 0.0%
$2.30 - $2.45 29 8.6% 44,500 6.6% 29 8.6% 44,500 6.6%
$2.45 - $2.60 73 21.6% 160,500 24.0% 102 30.2% 205,000 30.6%
$2.60 - $2.75 66 19.5% 99,200 14.8% 168 49.7% 304,200 45.5%
$2.75 - $2.90 36 10.7% 92,200 13.8% 204 60.4% 396,400 59.2%
$2.90 - $3.05 15 4.4% 21,700 3.2% 219 64.8% 418,100 62.5%
$3.05 - $3.20 24 7.1% 32,700 4.9% 243 71.9% 450,800 67.4%
$3.20 - $3.35 41 12.1% 62,800 9.4% 284 84.0% 513,600 76.7%
$3.35 - $3.50 33 9.8% 55,400 8.3% 317 93.8% 569,000 85.0%
$3.50 - $3.65 11 3.3% 30,200 4.5% 328 97.0% 599,200 89.5%
$3.65 - $3.80 8 2.4% 33,900 5.1% 336 99.4% 633,100 94.6%
$3.80 - $3.95 2 0.6% 36,200 5.4% 338 100.0% 669,300 100.0%
GREATER THAN $3.95 0 0.0% - 0.0% 338 100.0% 669,300 100.0%
Total: 338 100.0% 669,300 100.0%
</TABLE>
[CHART]
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 1,980 shares or $5,845.64 and
the average daily close has been $2.90.
43
<PAGE> 93
STOCK PRICE ANALYSIS
UNITED FOODS INC - CLASS B
SHARES TRADED AT VARIOUS PRICES FROM 1/1/98 TO 5/5/99
<TABLE>
<CAPTION>
CUMULATIVE
---------------------------------------------------
DAYS % OF TOTAL % OF TOTAL DAYS % OF TOTAL % OF TOTAL
TRADING DAILY AVG. DAYS TRADING TRADING DAILY AVG. DAYS TRADING TRADING
RANGE (1) IN RANGE TRADED VOLUME VOLUME IN RANGE TRADED VOLUME VOLUME
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LESS THAN $2.30 0 0.0% - 0.0% 0 0.0% - 0.0%
$2.30 - $2.45 17 5.0% 24,400 7.1% 17 5.0% 24,400 7.1%
$2.45 - $2.60 48 14.2% 47,000 13.7% 65 19.2% 71,400 20.8%
$2.60 - $2.75 70 20.7% 71,500 20.9% 135 39.9% 142,900 41.7%
$2.75 - $2.90 47 13.9% 36,100 10.5% 182 53.8% 179,000 52.2%
$2.90 - $3.05 31 9.2% 25,800 7.5% 213 63.0% 204,800 59.7%
$3.05 - $3.20 26 7.7% 28,600 8.3% 239 70.7% 233,400 68.1%
$3.20 - $3.35 16 4.7% 27,000 7.9% 255 75.4% 260,400 76.0%
$3.35 - $3.50 49 14.5% 44,300 12.9% 304 89.9% 304,700 88.9%
$3.50 - $3.65 27 8.0% 28,000 8.2% 331 97.9% 332,700 97.1%
$3.65 - $3.80 7 2.1% 10,100 2.9% 338 100.0% 342,800 100.0%
$3.80 - $3.95 0 0.0% - 0.0% 338 100.0% 342,800 100.0%
GREATER THAN $3.95 0 0.0% - 0.0% 338 100.0% 342,800 100.0%
Total: 338 100.0% 342,800 100.0%
</TABLE>
[CHART]
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 1,014 shares or $3,011.90 and
the average daily close has been $2.97.
44
<PAGE> 94
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
5-May-99 0 $2.75 $2.44 $2.59
4-May-99 0 $2.69 $2.44 $2.56
3-May-99 0 $2.69 $2.44 $2.56
30-Apr-99 4,400 $2.69 $2.63 $2.63
29-Apr-99 0 $2.69 $2.31 $2.50
28-Apr-99 0 $2.69 $2.31 $2.50
27-Apr-99 0 $2.69 $2.31 $2.50
26-Apr-99 1,500 $2.50 $2.50 $2.50
23-Apr-99 0 $2.56 $2.19 $2.38
22-Apr-99 200 $2.38 $2.38 $2.38
21-Apr-99 1,000 $2.50 $2.38 $2.50
20-Apr-99 300 $2.50 $2.38 $2.50
19-Apr-99 500 $2.50 $2.50 $2.50
16-Apr-99 1,500 $2.38 $2.38 $2.38
15-Apr-99 0 $2.69 $2.31 $2.50
14-Apr-99 1,000 $2.50 $2.50 $2.50
13-Apr-99 6,400 $2.50 $2.50 $2.50
12-Apr-99 0 $2.63 $2.13 $2.38
9-Apr-99 6,000 $2.50 $2.50 $2.50
8-Apr-99 0 $2.75 $2.44 $2.59
7-Apr-99 0 $2.75 $2.44 $2.59
6-Apr-99 2,400 $2.56 $2.50 $2.56
5-Apr-99 0 $2.75 $2.44 $2.59
1-Apr-99 300 $2.63 $2.63 $2.63
31-Mar-99 6,800 $2.75 $2.63 $2.75
30-Mar-99 0 $2.63 $2.44 $2.53
29-Mar-99 2,100 $2.63 $2.63 $2.63
</TABLE>
<PAGE> 95
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
21-Jan-98 1,800 2.63 2.50 2.50
20-Jan-98 0 2.69 2.38 2.53
16-Jan-98 300 2.56 2.56 2.56
15-Jan-98 9,300 2.63 2.50 2.50
14-Jan-98 0 2.69 2.31 2.50
13-Jan-98 0 2.56 2.31 2.44
12-Jan-98 0 2.69 2.31 2.50
9-Jan-98 700 2.50 2.44 2.44
8-Jan-98 0 2.69 2.44 2.56
7-Jan-98 0 2.69 2.31 2.50
6-Jan-98 5,600 2.63 2.63 2.63
5-Jan-98 3,400 2.75 2.63 2.63
2-Jan-98 0 2.75 2.44 2.59
</TABLE>
<TABLE>
<S> <C>
Number of days with positive volume: 187
Number of days at $3.50 or above: 27
Percentage of days at $3.50 or above: 14%
</TABLE>
<PAGE> 96
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- --------- ------ ---- --- -----
<S> <C> <C> <C> <C>
5-May-99 0 2.75 2.38 2.56
4-May-99 500 2.50 2.50 2.50
3-May-99 1,300 2.50 2.38 2.38
30-Apr-99 5,000 2.63 2.50 2.63
29-Apr-99 4,000 2.50 2.44 2.50
28-Apr-99 2,000 2.44 2.44 2.44
27-Apr-99 5,000 2.50 2.38 2.38
26-Apr-99 4,500 2.56 2.38 2.38
23-Apr-99 800 2.50 2.50 2.50
22-Apr-99 100 2.38 2.38 2.38
21-Apr-99 1,500 2.50 2.31 2.50
20-Apr-99 700 2.56 2.44 2.50
19-Apr-99 100 2.56 2.56 2.56
16-Apr-99 1,000 2.44 2.44 2.44
15-Apr-99 0 2.63 2.38 2.50
14-Apr-99 800 2.44 2.44 2.44
13-Apr-99 0 2.88 2.44 2.66
12-Apr-99 0 2.75 2.44 2.59
9-Apr-99 4,000 2.56 2.50 2.56
8-Apr-99 2,000 2.63 2.63 2.63
7-Apr-99 1,800 2.56 2.50 2.50
6-Apr-99 0 2.75 2.44 2.59
5-Apr-99 200 2.63 2.63 2.63
1-Apr-99 500 2.75 2.75 2.75
31-Mar-99 2,000 2.75 2.75 2.75
30-Mar-99 2,000 2.75 2.75 2.75
29-Mar-99 1,800 2.63 2.63 2.63
26-Mar-99 500 2.63 2.63 2.63
</TABLE>
<PAGE> 97
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
27-Nov-98 0 2.94 2.25 2.59
25-Nov-98 10,300 2.63 2.63 2.63
24-Nov-98 10,800 2.50 2.38 2.38
23-Nov-98 200 2.63 2.63 2.63
20-Nov-98 0 2.75 2.44 2.59
19-Nov-98 9,000 2.63 2.63 2.63
18-Nov-98 3,500 2.63 2.63 2.63
17-Nov-98 500 2.69 2.63 2.63
16-Nov-98 1,200 2.69 2.69 2.69
13-Nov-98 0 2.94 2.63 2.78
12-Nov-98 0 2.94 2.69 2.81
11-Nov-98 2,300 2.81 2.81 2.81
10-Nov-98 0 2.94 2.69 2.81
9-Nov-98 0 3.00 2.69 2.84
6-Nov-98 0 2.94 2.63 2.78
5-Nov-98 500 2.81 2.81 2.81
4-Nov-98 0 3.00 2.50 2.75
3-Nov-98 0 3.00 2.75 2.88
2-Nov-98 0 3.06 2.75 2.91
30-Oct-98 6,000 2.94 2.75 2.94
29-Oct-98 0 3.00 2.69 2.84
28-Oct-98 0 3.00 2.69 2.84
27-Oct-98 5,900 2.88 2.81 2.88
26-Oct-98 1,000 2.69 2.69 2.69
23-Oct-98 0 2.81 2.56 2.69
22-Oct-98 0 2.88 2.56 2.72
21-Oct-98 0 2.88 2.63 2.75
</TABLE>
<PAGE> 98
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
20-Oct-98 0 2.94 2.56 2.75
19-Oct-98 200 2.69 2.69 2.69
16-Oct-98 0 2.81 2.56 2.69
15-Oct-98 1,000 2.75 2.69 2.69
14-Oct-98 0 3.00 2.63 2.81
13-Oct-98 0 2.94 2.63 2.78
12-Oct-98 0 2.94 2.69 2.81
9-Oct-98 0 3.00 2.69 2.84
8-Oct-98 0 2.88 2.56 2.72
7-Oct-98 1,400 2.88 2.88 2.88
6-Oct-98 700 2.88 2.88 2.88
5-Oct-98 0 3.06 2.81 2.94
2-Oct-98 300 2.81 2.81 2.81
1-Oct-98 0 3.06 2.63 2.84
30-Sep-98 2,000 2.94 2.94 2.94
29-Sep-98 200 2.88 2.88 2.88
28-Sep-98 0 2.94 2.56 2.75
25-Sep-98 500 2.81 2.81 2.81
24-Sep-98 0 2.94 2.56 2.75
23-Sep-98 0 2.81 2.56 2.69
22-Sep-98 500 2.63 2.63 2.63
21-Sep-98 0 2.81 2.56 2.69
18-Sep-98 0 2.88 2.56 2.72
17-Sep-98 6,000 2.63 2.38 2.63
16-Sep-98 100 2.38 2.38 2.38
15-Sep-98 0 2.50 2.31 2.41
14-Sep-98 5,000 2.44 2.44 2.44
</TABLE>
<PAGE> 99
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
11-Sep-98 1,600 2.63 2.38 2.44
10-Sep-98 2,400 2.50 2.50 2.50
9-Sep-98 0 2.81 2.44 2.63
8-Sep-98 0 2.94 2.56 2.75
4-Sep-98 0 2.75 2.44 2.59
3-Sep-98 0 2.88 2.56 2.72
2-Sep-98 800 2.63 2.63 2.63
1-Sep-98 800 2.81 2.75 2.75
31-Aug-98 6,700 2.88 2.50 2.88
28-Aug-98 0 2.69 2.44 2.56
27-Aug-98 4,000 2.63 2.56 2.63
26-Aug-98 5,000 2.75 2.75 2.75
25-Aug-98 5,400 2.81 2.75 2.81
24-Aug-98 0 2.94 2.75 2.84
21-Aug-98 0 2.88 2.69 2.78
20-Aug-98 2,000 2.81 2.81 2.81
19-Aug-98 300 2.94 2.88 2.88
18-Aug-98 100 2.94 2.94 2.94
17-Aug-98 8,000 2.94 2.94 2.94
14-Aug-98 0 3.13 2.88 3.00
13-Aug-98 0 3.13 2.88 3.00
12-Aug-98 300 3.00 3.00 3.00
11-Aug-98 1,200 3.25 2.94 2.94
10-Aug-98 0 3.25 2.94 3.09
7-Aug-98 0 3.19 2.63 2.91
6-Aug-98 0 3.25 2.75 3.00
5-Aug-98 600 3.25 3.06 3.06
</TABLE>
<PAGE> 100
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
4-Aug-98 0 3.38 2.88 3.13
3-Aug-98 1,800 3.38 3.25 3.25
31-Jul-98 9,900 3.38 3.00 3.38
30-Jul-98 0 3.31 3.13 3.22
29-Jul-98 200 3.19 3.19 3.19
28-Jul-98 0 3.25 3.06 3.16
27-Jul-98 0 3.38 3.06 3.22
24-Jul-98 0 3.38 3.06 3.22
23-Jul-98 0 3.25 2.88 3.06
22-Jul-98 2,100 3.25 3.25 3.25
21-Jul-98 0 3.38 3.06 3.22
20-Jul-98 0 3.38 2.88 3.13
17-Jul-98 0 3.38 3.13 3.25
16-Jul-98 0 3.38 3.06 3.22
15-Jul-98 0 3.38 3.06 3.22
14-Jul-98 0 3.31 3.13 3.22
13-Jul-98 0 3.38 3.13 3.25
10-Jul-98 0 3.31 2.88 3.09
9-Jul-98 0 3.38 3.13 3.25
8-Jul-98 0 3.38 3.13 3.25
7-Jul-98 1,000 3.19 3.19 3.19
6-Jul-98 1,600 3.25 3.19 3.19
2-Jul-98 0 3.50 3.19 3.34
1-Jul-98 400 3.38 3.38 3.38
30-Jun-98 7,000 3.44 3.38 3.38
29-Jun-98 0 3.44 3.06 3.25
26-Jun-98 0 3.50 2.88 3.19
</TABLE>
<PAGE> 101
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
25-Jun-98 1,000 3.25 3.25 3.25
24-Jun-98 0 3.56 3.06 3.31
23-Jun-98 200 3.25 3.25 3.25
22-Jun-98 5,000 3.31 3.31 3.31
19-Jun-98 0 3.38 3.19 3.28
18-Jun-98 600 3.19 3.19 3.19
17-Jun-98 0 3.38 3.13 3.25
16-Jun-98 5,200 3.31 3.19 3.19
15-Jun-98 100 3.31 3.31 3.31
12-Jun-98 0 3.56 3.25 3.41
11-Jun-98 2,200 3.38 3.31 3.31
10-Jun-98 100 3.31 3.31 3.31
9-Jun-98 600 3.38 3.38 3.38
8-Jun-98 0 3.69 3.19 3.44
5-Jun-98 500 3.50 3.50 3.50
4-Jun-98 0 3.69 3.44 3.56
3-Jun-98 0 3.69 3.44 3.56
2-Jun-98 0 3.69 3.44 3.56
1-Jun-98 0 3.63 3.25 3.44
29-May-98 15,300 3.63 3.44 3.63
28-May-98 1,100 3.50 3.31 3.50
27-May-98 0 3.50 3.19 3.34
26-May-98 3,200 3.38 3.38 3.38
22-May-98 0 3.44 3.19 3.31
21-May-98 0 3.63 3.13 3.38
20-May-98 0 3.56 3.19 3.38
19-May-98 7,300 3.25 3.25 3.25
</TABLE>
<PAGE> 102
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
18-May-98 3,700 3.31 3.31 3.31
15-May-98 200 3.38 3.38 3.38
14-May-98 0 3.50 3.25 3.38
13-May-98 200 3.31 3.31 3.31
12-May-98 1,000 3.38 3.38 3.38
11-May-98 0 3.56 3.25 3.41
8-May-98 900 3.38 3.38 3.38
7-May-98 0 3.63 3.38 3.50
6-May-98 400 3.44 3.44 3.44
5-May-98 500 3.50 3.50 3.50
4-May-98 2,300 3.88 3.63 3.75
1-May-98 29,700 3.94 3.81 3.81
30-Apr-98 5,200 3.56 3.06 3.56
29-Apr-98 0 3.25 2.94 3.09
28-Apr-98 5,000 3.13 3.00 3.13
27-Apr-98 100 2.88 2.88 2.88
24-Apr-98 0 3.00 2.69 2.84
23-Apr-98 1,000 2.88 2.88 2.88
22-Apr-98 7,400 3.00 2.75 3.00
21-Apr-98 16,700 2.69 2.50 2.63
20-Apr-98 4,100 2.75 2.69 2.75
17-Apr-98 41,300 3.00 2.69 2.69
16-Apr-98 1,000 3.06 3.06 3.06
15-Apr-98 11,000 3.13 3.06 3.06
14-Apr-98 10,700 3.50 3.06 3.38
13-Apr-98 2,500 3.00 3.00 3.00
9-Apr-98 500 3.06 3.00 3.00
</TABLE>
<PAGE> 103
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
8-Apr-98 0 3.31 2.88 3.09
7-Apr-98 700 3.13 3.13 3.13
6-Apr-98 0 3.44 2.94 3.19
3-Apr-98 0 3.56 3.06 3.31
2-Apr-98 3,600 3.38 3.25 3.25
1-Apr-98 0 3.69 3.31 3.50
31-Mar-98 9,400 3.50 3.00 3.50
30-Mar-98 4,000 3.06 2.94 2.94
27-Mar-98 700 3.19 3.19 3.19
26-Mar-98 0 3.31 2.94 3.13
25-Mar-98 800 3.19 3.19 3.19
24-Mar-98 200 3.31 3.31 3.31
23-Mar-98 1,100 3.38 3.38 3.38
20-Mar-98 0 3.50 2.88 3.19
19-Mar-98 0 3.50 3.13 3.31
18-Mar-98 1,900 3.31 3.19 3.31
17-Mar-98 0 3.50 3.13 3.31
16-Mar-98 0 3.50 3.25 3.38
13-Mar-98 1,300 3.31 3.31 3.31
12-Mar-98 0 3.56 3.19 3.38
11-Mar-98 1,000 3.50 3.38 3.38
10-Mar-98 0 3.69 3.38 3.53
9-Mar-98 400 3.50 3.50 3.50
6-Mar-98 2,500 3.63 3.63 3.63
5-Mar-98 3,700 3.63 3.50 3.50
4-Mar-98 600 3.50 3.50 3.50
3-Mar-98 0 3.81 3.50 3.66
</TABLE>
<PAGE> 104
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
2-Mar-98 1,000 3.56 3.56 3.56
27-Feb-98 10,300 3.69 3.25 3.63
26-Feb-98 300 3.38 3.38 3.38
25-Feb-98 800 3.44 3.44 3.44
24-Feb-98 0 3.56 3.31 3.44
23-Feb-98 600 3.50 3.44 3.44
20-Feb-98 0 3.63 3.13 3.38
19-Feb-98 7,500 3.63 3.50 3.50
18-Feb-98 2,200 3.75 3.75 3.75
17-Feb-98 0 3.75 3.44 3.59
13-Feb-98 200 3.63 3.63 3.63
12-Feb-98 1,000 3.75 3.75 3.75
11-Feb-98 2,200 3.75 3.63 3.63
10-Feb-98 6,500 4.00 3.75 3.75
9-Feb-98 3,100 3.88 3.63 3.88
6-Feb-98 3,000 3.88 3.63 3.63
5-Feb-98 20,100 3.88 3.56 3.88
4-Feb-98 24,500 3.75 3.00 3.75
3-Feb-98 4,000 3.00 2.94 2.94
2-Feb-98 0 3.00 2.69 2.84
30-Jan-98 12,400 2.88 2.75 2.88
29-Jan-98 6,200 2.63 2.50 2.63
28-Jan-98 0 2.75 2.44 2.59
27-Jan-98 10,000 2.63 2.63 2.63
26-Jan-98 300 2.50 2.50 2.50
23-Jan-98 200 2.63 2.63 2.63
22-Jan-98 0 2.81 2.44 2.63
</TABLE>
<PAGE> 105
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
5-May-99 0 $2.75 $2.44 $2.59
4-May-99 0 $2.69 $2.44 $2.56
3-May-99 0 $2.69 $2.44 $2.56
30-Apr-99 4,400 $2.69 $2.63 $2.63
29-Apr-99 0 $2.69 $2.31 $2.50
28-Apr-99 0 $2.69 $2.31 $2.50
27-Apr-99 0 $2.69 $2.31 $2.50
26-Apr-99 1,500 $2.50 $2.50 $2.50
23-Apr-99 0 $2.56 $2.19 $2.38
22-Apr-99 200 $2.38 $2.38 $2.38
21-Apr-99 1,000 $2.50 $2.38 $2.50
20-Apr-99 300 $2.50 $2.38 $2.50
19-Apr-99 500 $2.50 $2.50 $2.50
16-Apr-99 1,500 $2.38 $2.38 $2.38
15-Apr-99 0 $2.69 $2.31 $2.50
14-Apr-99 1,000 $2.50 $2.50 $2.50
13-Apr-99 6,400 $2.50 $2.50 $2.50
12-Apr-99 0 $2.63 $2.13 $2.38
9-Apr-99 6,000 $2.50 $2.50 $2.50
8-Apr-99 0 $2.75 $2.44 $2.59
7-Apr-99 0 $2.75 $2.44 $2.59
6-Apr-99 2,400 $2.56 $2.50 $2.56
5-Apr-99 0 $2.75 $2.44 $2.59
1-Apr-99 300 $2.63 $2.63 $2.63
31-Mar-99 6,800 $2.75 $2.63 $2.75
30-Mar-99 0 $2.63 $2.44 $2.53
29-Mar-99 2,100 $2.63 $2.63 $2.63
</TABLE>
<PAGE> 106
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
26-Mar-99 500 $2.63 $2.63 $2.63
25-Mar-99 2,000 $2.50 $2.44 $2.44
24-Mar-99 0 $3.00 $2.25 $2.63
23-Mar-99 0 $2.81 $2.44 $2.63
22-Mar-99 0 $2.75 $2.44 $2.59
19-Mar-99 0 $2.81 $2.44 $2.63
18-Mar-99 0 $2.75 $2.50 $2.63
17-Mar-99 0 $2.75 $2.44 $2.59
16-Mar-99 400 $2.56 $2.56 $2.56
15-Mar-99 1,600 $2.63 $2.63 $2.63
12-Mar-99 200 $2.63 $2.63 $2.63
11-Mar-99 0 $2.81 $2.56 $2.69
10-Mar-99 0 $2.94 $2.50 $2.72
9-Mar-99 0 $2.75 $2.44 $2.59
8-Mar-99 0 $2.75 $2.50 $2.63
5-Mar-99 0 $2.75 $2.50 $2.63
4-Mar-99 0 $2.75 $2.50 $2.63
3-Mar-99 0 $2.75 $2.50 $2.63
2-Mar-99 1,600 $2.75 $2.69 $2.75
1-Mar-99 4,000 $2.88 $2.88 $2.88
26-Feb-99 8,000 $2.81 $2.56 $2.81
25-Feb-99 4,100 $2.50 $2.50 $2.50
24-Feb-99 2,000 $2.50 $2.50 $2.50
23-Feb-99 0 $2.69 $2.44 $2.56
22-Feb-99 5,000 $2.50 $2.50 $2.50
19-Feb-99 0 $2.63 $2.44 $2.53
18-Feb-99 1,700 $2.56 $2.56 $2.56
</TABLE>
<PAGE> 107
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
17-Feb-99 1,800 $2.50 $2.50 $2.50
16-Feb-99 0 $2.56 $2.31 $2.44
12-Feb-99 5,700 $2.50 $2.38 $2.50
11-Feb-99 0 $2.81 $2.13 $2.47
10-Feb-99 1,700 $2.50 $2.50 $2.50
9-Feb-99 3,200 $2.50 $2.38 $2.38
8-Feb-99 1,100 $2.38 $2.38 $2.38
5-Feb-99 0 $2.50 $2.25 $2.38
4-Feb-99 0 $2.56 $2.31 $2.44
3-Feb-99 400 $2.44 $2.44 $2.44
2-Feb-99 7,000 $2.50 $2.50 $2.50
1-Feb-99 4,000 $2.50 $2.50 $2.50
29-Jan-99 8,000 $2.63 $2.50 $2.63
28-Jan-99 5,000 $2.50 $2.50 $2.50
27-Jan-99 0 $2.50 $2.31 $2.41
26-Jan-99 0 $2.56 $2.31 $2.44
25-Jan-99 1,000 $2.44 $2.44 $2.44
22-Jan-99 0 $2.50 $2.31 $2.41
21-Jan-99 4,500 $2.50 $2.38 $2.50
20-Jan-99 2,700 $2.50 $2.50 $2.50
19-Jan-99 2,900 $2.50 $2.50 $2.50
15-Jan-99 600 $2.38 $2.38 $2.38
14-Jan-99 6,800 $2.50 $2.44 $2.44
13-Jan-99 0 $2.50 $2.31 $2.41
12-Jan-99 500 $2.44 $2.38 $2.38
11-Jan-99 5,000 $2.50 $2.38 $2.38
8-Jan-99 0 $2.69 $2.38 $2.53
</TABLE>
<PAGE> 108
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---- ------ ---- --- -----
<S> <C> <C> <C> <C>
7-Jan-99 0 $2.75 $2.44 $2.59
6-Jan-99 2,800 $2.63 $2.56 $2.56
5-Jan-99 1,000 $2.56 $2.56 $2.56
4-Jan-99 13,500 $2.69 $2.50 $2.69
31-Dec-98 3,500 $2.50 $2.50 $2.50
30-Dec-98 5,100 $2.63 $2.50 $2.50
29-Dec-98 0 $2.69 $2.31 $2.50
28-Dec-98 1,000 $2.38 $2.38 $2.38
24-Dec-98 400 $2.50 $2.50 $2.50
23-Dec-98 2,600 $2.50 $2.38 $2.50
22-Dec-98 6,000 $2.50 $2.50 $2.50
21-Dec-98 200 $2.56 $2.56 $2.56
18-Dec-98 200 $2.56 $2.56 $2.56
17-Dec-98 0 $2.75 $2.50 $2.63
16-Dec-98 0 2.81 2.44 2.63
15-Dec-98 0 2.75 2.50 2.63
14-Dec-98 0 2.81 2.50 2.66
11-Dec-98 1,000 2.63 2.63 2.63
10-Dec-98 600 2.69 2.69 2.69
9-Dec-98 400 2.69 2.69 2.69
8-Dec-98 0 3.00 2.50 2.75
7-Dec-98 300 2.69 2.69 2.69
4-Dec-98 0 2.88 2.50 2.69
3-Dec-98 400 2.69 2.69 2.69
2-Dec-98 300 2.75 2.75 2.75
1-Dec-98 0 2.94 2.63 2.78
30-Nov-98 7,500 2.81 2.50 2.81
</TABLE>
<PAGE> 109
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- --------- ------ ---- --- -----
<S> <C> <C> <C> <C>
25-Mar-99 1,500 2.63 2.50 2.50
24-Mar-99 0 2.94 2.25 2.59
23-Mar-99 0 2.94 2.44 2.69
22-Mar-99 0 2.88 2.56 2.72
19-Mar-99 800 2.75 2.75 2.75
18-Mar-99 0 2.88 2.50 2.69
17-Mar-99 300 2.63 2.63 2.63
16-Mar-99 0 2.94 2.50 2.72
15-Mar-99 0 2.94 2.56 2.75
12-Mar-99 5,000 2.75 2.75 2.75
11-Mar-99 0 2.81 2.50 2.66
10-Mar-99 0 2.81 2.44 2.63
9-Mar-99 0 2.75 2.44 2.59
8-Mar-99 2,000 2.50 2.50 2.50
5-Mar-99 2,400 2.50 2.44 2.50
4-Mar-99 0 2.75 2.50 2.63
3-Mar-99 1,100 2.63 2.56 2.56
2-Mar-99 0 2.88 2.63 2.75
1-Mar-99 4,200 2.88 2.81 2.81
26-Feb-99 9,300 2.94 2.63 2.94
25-Feb-99 700 2.63 2.44 2.63
24-Feb-99 0 2.69 2.44 2.56
23-Feb-99 0 2.69 2.38 2.53
22-Feb-99 4,000 2.44 2.44 2.44
19-Feb-99 0 2.69 2.31 2.50
18-Feb-99 2,500 2.50 2.50 2.50
17-Feb-99 500 2.50 2.50 2.50
16-Feb-99 100 2.38 2.38 2.38
12-Feb-99 7,200 2.50 2.38 2.50
11-Feb-99 0 2.75 2.13 2.44
10-Feb-99 0 3.00 2.13 2.56
9-Feb-99 100 2.50 2.50 2.50
</TABLE>
<PAGE> 110
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- --------- ------ ---- --- -----
<S> <C> <C> <C> <C>
8-Feb-99 0 2.63 2.44 2.53
5-Feb-99 2,000 2.56 2.50 2.50
4-Feb-99 0 2.81 2.44 2.63
3-Feb-99 0 2.88 2.44 2.66
2-Feb-99 800 2.75 2.69 2.75
1-Feb-99 0 2.75 2.44 2.59
29-Jan-99 3,000 2.69 2.69 2.69
28-Jan-99 100 2.44 2.44 2.44
27-Jan-99 0 2.63 2.31 2.47
26-Jan-99 0 2.56 2.38 2.47
25-Jan-99 0 2.69 2.31 2.50
22-Jan-99 100 2.38 2.38 2.38
21-Jan-99 0 2.56 2.31 2.44
20-Jan-99 1,200 2.50 2.50 2.50
19-Jan-99 0 2.56 2.44 2.50
15-Jan-99 300 2.44 2.44 2.44
14-Jan-99 2,900 2.50 2.44 2.50
13-Jan-99 0 2.56 2.38 2.47
12-Jan-99 100 2.44 2.44 2.44
11-Jan-99 800 2.50 2.38 2.38
8-Jan-99 2,500 2.50 2.50 2.50
7-Jan-99 400 2.50 2.50 2.50
6-Jan-99 1,000 2.69 2.56 2.56
5-Jan-99 0 2.94 2.31 2.63
4-Jan-99 0 2.81 2.50 2.66
31-Dec-98 3,000 2.75 2.75 2.75
30-Dec-98 3,000 2.75 2.75 2.75
29-Dec-98 0 2.81 2.44 2.63
28-Dec-98 600 2.63 2.63 2.63
24-Dec-98 0 2.81 2.44 2.63
23-Dec-98 100 2.69 2.69 2.69
22-Dec-98 0 2.75 2.44 2.59
21-Dec-98 200 2.56 2.56 2.56
</TABLE>
<PAGE> 111
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- --------- ------ ---- --- -----
<S> <C> <C> <C> <C>
18-Dec-98 200 2.56 2.56 2.56
17-Dec-98 3,000 2.69 2.69 2.69
16-Dec-98 0 2.75 2.38 2.56
15-Dec-98 13,100 2.75 2.56 2.56
14-Dec-98 1,500 2.88 2.88 2.88
11-Dec-98 0 3.00 2.63 2.81
10-Dec-98 0 3.00 2.69 2.84
9-Dec-98 0 3.06 2.69 2.88
8-Dec-98 0 3.38 2.38 2.88
7-Dec-98 100 2.88 2.88 2.88
4-Dec-98 0 3.13 2.75 2.94
3-Dec-98 0 3.00 2.81 2.91
2-Dec-98 1,200 2.88 2.88 2.88
1-Dec-98 0 3.13 2.75 2.94
30-Nov-98 3,500 3.00 2.88 3.00
27-Nov-98 0 3.06 2.63 2.84
25-Nov-98 800 2.69 2.69 2.69
24-Nov-98 100 2.75 2.75 2.75
23-Nov-98 0 2.88 2.56 2.72
20-Nov-98 0 2.94 2.69 2.81
19-Nov-98 800 2.88 2.81 2.88
18-Nov-98 0 2.88 2.69 2.78
17-Nov-98 700 2.88 2.88 2.88
16-Nov-98 0 3.00 2.69 2.84
13-Nov-98 0 2.94 2.75 2.84
12-Nov-98 0 2.94 2.69 2.81
11-Nov-98 0 3.00 2.75 2.88
10-Nov-98 0 3.00 2.69 2.84
9-Nov-98 0 3.13 2.81 2.97
6-Nov-98 0 3.00 2.69 2.84
5-Nov-98 0 3.00 2.81 2.91
4-Nov-98 0 3.00 2.50 2.75
3-Nov-98 0 2.94 2.69 2.81
</TABLE>
<PAGE> 112
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- --------- ------ ---- --- -----
<S> <C> <C> <C> <C>
2-Nov-98 1,000 3.00 2.88 2.88
30-Oct-98 3,400 3.00 2.88 3.00
29-Oct-98 0 3.06 2.81 2.94
28-Oct-98 0 3.00 2.81 2.91
27-Oct-98 2,700 2.88 2.88 2.88
26-Oct-98 0 2.94 2.69 2.81
23-Oct-98 0 2.88 2.56 2.72
22-Oct-98 0 2.94 2.56 2.75
21-Oct-98 0 2.94 2.63 2.78
20-Oct-98 0 2.94 2.56 2.75
19-Oct-98 0 3.06 2.63 2.84
16-Oct-98 3,000 2.75 2.56 2.75
15-Oct-98 1,000 2.63 2.63 2.63
14-Oct-98 0 2.88 2.50 2.69
13-Oct-98 0 2.81 2.56 2.69
12-Oct-98 0 2.81 2.56 2.69
9-Oct-98 1,000 2.69 2.69 2.69
8-Oct-98 2,500 2.81 2.81 2.81
7-Oct-98 500 2.88 2.88 2.88
6-Oct-98 100 2.88 2.88 2.88
5-Oct-98 0 3.00 2.75 2.88
2-Oct-98 2,000 2.88 2.88 2.88
1-Oct-98 0 3.13 2.63 2.88
30-Sep-98 1,000 3.00 3.00 3.00
29-Sep-98 0 3.06 2.81 2.94
28-Sep-98 0 3.00 2.75 2.88
25-Sep-98 4,500 3.00 2.94 3.00
24-Sep-98 3,400 2.88 2.81 2.88
23-Sep-98 0 2.88 2.63 2.75
22-Sep-98 0 2.94 2.69 2.81
21-Sep-98 0 2.75 2.56 2.66
18-Sep-98 0 2.88 2.56 2.72
17-Sep-98 4,600 2.69 2.44 2.69
</TABLE>
<PAGE> 113
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- --------- ------ ---- --- -----
<S> <C> <C> <C> <C>
16-Sep-98 0 2.56 2.38 2.47
15-Sep-98 0 2.63 2.31 2.47
14-Sep-98 0 2.69 2.38 2.53
11-Sep-98 800 2.50 2.50 2.50
10-Sep-98 5,900 2.75 2.63 2.75
9-Sep-98 0 2.94 2.69 2.81
8-Sep-98 200 2.75 2.75 2.75
4-Sep-98 700 2.88 2.75 2.75
3-Sep-98 500 2.69 2.69 2.69
2-Sep-98 0 3.00 2.63 2.81
1-Sep-98 600 2.88 2.81 2.81
31-Aug-98 3,100 2.94 2.88 2.94
28-Aug-98 3,000 2.75 2.75 2.75
27-Aug-98 500 2.81 2.81 2.81
26-Aug-98 0 2.94 2.50 2.72
25-Aug-98 0 3.19 2.56 2.88
24-Aug-98 0 3.06 2.75 2.91
21-Aug-98 3,000 2.81 2.81 2.81
20-Aug-98 0 3.13 2.75 2.94
19-Aug-98 3,500 2.94 2.94 2.94
18-Aug-98 1,000 3.00 3.00 3.00
17-Aug-98 0 3.13 2.88 3.00
14-Aug-98 0 3.25 2.94 3.09
13-Aug-98 0 3.13 2.94 3.03
12-Aug-98 0 3.25 2.88 3.06
11-Aug-98 0 3.25 2.94 3.09
10-Aug-98 0 3.31 2.94 3.13
7-Aug-98 0 3.19 2.75 2.97
6-Aug-98 0 3.25 2.75 3.00
5-Aug-98 100 3.13 3.13 3.13
4-Aug-98 0 3.38 2.88 3.13
3-Aug-98 0 3.38 3.06 3.22
31-Jul-98 13,000 3.25 3.00 3.25
</TABLE>
<PAGE> 114
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- --------- ------ ---- --- -----
<S> <C> <C> <C> <C>
30-Jul-98 900 3.06 3.06 3.06
29-Jul-98 300 3.13 3.13 3.13
28-Jul-98 0 3.19 2.94 3.06
27-Jul-98 0 3.25 3.06 3.16
24-Jul-98 0 3.38 3.06 3.22
23-Jul-98 0 3.38 2.88 3.13
22-Jul-98 3,900 3.25 3.13 3.13
21-Jul-98 0 3.56 3.06 3.31
20-Jul-98 500 3.25 3.13 3.25
17-Jul-98 0 3.31 3.06 3.19
16-Jul-98 0 3.31 2.94 3.13
15-Jul-98 800 3.13 3.13 3.13
14-Jul-98 300 3.13 3.13 3.13
13-Jul-98 0 3.44 3.06 3.25
10-Jul-98 300 3.13 3.13 3.13
9-Jul-98 0 3.38 3.13 3.25
8-Jul-98 100 3.19 3.19 3.19
7-Jul-98 0 3.44 3.13 3.28
6-Jul-98 1,400 3.25 3.25 3.25
2-Jul-98 0 3.63 3.31 3.47
1-Jul-98 0 3.69 3.31 3.50
30-Jun-98 6,300 3.50 3.31 3.50
29-Jun-98 100 3.38 3.38 3.38
26-Jun-98 0 3.75 3.38 3.56
25-Jun-98 0 3.56 3.31 3.44
24-Jun-98 300 3.44 3.44 3.44
23-Jun-98 0 3.56 3.19 3.38
22-Jun-98 800 3.50 3.44 3.44
19-Jun-98 100 3.38 3.38 3.38
18-Jun-98 600 3.50 3.50 3.50
17-Jun-98 0 3.69 3.31 3.50
16-Jun-98 0 3.63 3.31 3.47
15-Jun-98 700 3.50 3.50 3.50
</TABLE>
<PAGE> 115
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- --------- ------ ---- --- -----
<S> <C> <C> <C> <C>
12-Jun-98 2,600 3.63 3.63 3.63
11-Jun-98 5,400 3.50 3.44 3.50
10-Jun-98 0 3.88 3.19 3.53
9-Jun-98 500 3.56 3.56 3.56
8-Jun-98 300 3.38 3.38 3.38
5-Jun-98 100 3.44 3.44 3.44
4-Jun-98 2,000 3.50 3.50 3.50
3-Jun-98 100 3.63 3.63 3.63
2-Jun-98 0 3.81 3.44 3.63
1-Jun-98 0 3.75 3.25 3.50
29-May-98 2,000 3.63 3.56 3.63
28-May-98 100 3.44 3.44 3.44
27-May-98 0 3.63 3.31 3.47
26-May-98 0 3.56 3.31 3.44
22-May-98 0 3.56 3.25 3.41
21-May-98 0 3.50 3.06 3.28
20-May-98 0 3.50 3.06 3.28
19-May-98 100 3.44 3.44 3.44
18-May-98 1,100 3.50 3.38 3.38
15-May-98 0 3.75 3.44 3.59
14-May-98 0 3.75 3.44 3.59
13-May-98 0 3.81 3.44 3.63
12-May-98 700 3.63 3.63 3.63
11-May-98 0 3.69 3.38 3.53
8-May-98 0 3.75 3.38 3.56
7-May-98 0 3.63 3.38 3.50
6-May-98 600 3.50 3.50 3.50
5-May-98 0 3.69 3.44 3.56
4-May-98 100 3.56 3.56 3.56
1-May-98 2,500 3.63 3.50 3.63
30-Apr-98 4,200 3.44 3.38 3.44
29-Apr-98 2,700 3.38 3.25 3.38
28-Apr-98 600 3.13 3.13 3.13
</TABLE>
<PAGE> 116
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- --------- ------ ---- --- -----
<S> <C> <C> <C> <C>
27-Apr-98 0 3.13 2.81 2.97
24-Apr-98 100 3.00 3.00 3.00
23-Apr-98 0 3.19 2.81 3.00
22-Apr-98 0 3.19 2.81 3.00
21-Apr-98 0 3.13 2.69 2.91
20-Apr-98 0 3.19 2.81 3.00
17-Apr-98 200 3.00 3.00 3.00
16-Apr-98 100 3.31 3.31 3.31
15-Apr-98 100 3.38 3.38 3.38
14-Apr-98 4,800 3.38 3.00 3.25
13-Apr-98 2,500 3.00 3.00 3.00
9-Apr-98 100 3.13 3.13 3.13
8-Apr-98 0 3.44 2.94 3.19
7-Apr-98 400 3.31 3.25 3.25
6-Apr-98 0 3.44 3.06 3.25
3-Apr-98 0 3.50 3.25 3.38
2-Apr-98 500 3.44 3.31 3.31
1-Apr-98 800 3.44 3.31 3.44
31-Mar-98 11,400 3.44 3.19 3.44
30-Mar-98 2,500 3.19 2.94 3.06
27-Mar-98 0 3.56 3.19 3.38
26-Mar-98 0 3.56 3.19 3.38
25-Mar-98 300 3.38 3.38 3.38
24-Mar-98 0 3.88 3.13 3.50
23-Mar-98 1,800 3.50 3.38 3.50
20-Mar-98 3,300 3.44 3.31 3.44
19-Mar-98 0 3.50 3.25 3.38
18-Mar-98 0 3.56 3.25 3.41
17-Mar-98 9,000 3.50 3.31 3.31
16-Mar-98 0 3.81 3.44 3.63
13-Mar-98 200 3.50 3.50 3.50
12-Mar-98 2,000 3.50 3.50 3.50
11-Mar-98 900 3.50 3.50 3.50
</TABLE>
<PAGE> 117
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- --------- ------ ---- --- -----
<S> <C> <C> <C> <C>
10-Mar-98 700 3.50 3.50 3.50
9-Mar-98 0 3.81 3.44 3.63
6-Mar-98 0 3.81 3.44 3.63
5-Mar-98 100 3.63 3.63 3.63
4-Mar-98 400 3.69 3.69 3.69
3-Mar-98 0 3.94 3.63 3.78
2-Mar-98 0 3.94 3.56 3.75
27-Feb-98 5,700 3.75 3.50 3.63
26-Feb-98 0 3.69 3.31 3.50
25-Feb-98 300 3.50 3.50 3.50
24-Feb-98 0 3.69 3.38 3.53
23-Feb-98 600 3.56 3.50 3.56
20-Feb-98 0 3.63 3.25 3.44
19-Feb-98 0 3.69 3.44 3.56
18-Feb-98 3,300 3.63 3.50 3.56
17-Feb-98 3,500 3.63 3.63 3.63
13-Feb-98 4,400 3.69 3.63 3.69
12-Feb-98 0 3.63 3.13 3.38
11-Feb-98 1,600 3.50 3.50 3.50
10-Feb-98 2,600 3.81 3.63 3.63
9-Feb-98 800 3.75 3.75 3.75
6-Feb-98 1,900 3.81 3.75 3.75
5-Feb-98 6,300 3.88 3.38 3.88
4-Feb-98 8,000 3.38 3.25 3.38
3-Feb-98 3,000 3.25 3.25 3.25
2-Feb-98 400 3.13 3.13 3.13
30-Jan-98 2,000 3.00 2.88 3.00
29-Jan-98 1,000 2.69 2.69 2.69
28-Jan-98 0 3.06 2.69 2.88
27-Jan-98 0 3.00 2.50 2.75
26-Jan-98 400 2.75 2.75 2.75
23-Jan-98 0 2.94 2.56 2.75
22-Jan-98 1,600 2.75 2.75 2.75
</TABLE>
<PAGE> 118
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/98
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- --------- ------ ---- --- -----
<S> <C> <C> <C> <C>
21-Jan-98 100 2.75 2.75 2.75
20-Jan-98 300 2.88 2.88 2.88
16-Jan-98 100 2.88 2.88 2.88
15-Jan-98 0 3.06 2.69 2.88
14-Jan-98 600 2.88 2.88 2.88
13-Jan-98 1,300 2.88 2.75 2.75
12-Jan-98 500 2.63 2.63 2.63
9-Jan-98 0 2.94 2.56 2.75
8-Jan-98 0 2.88 2.56 2.72
7-Jan-98 100 2.75 2.75 2.75
6-Jan-98 4,100 2.88 2.63 2.75
5-Jan-98 0 2.81 2.44 2.63
2-Jan-98 500 2.63 2.63 2.63
</TABLE>
<TABLE>
<S> <C>
Number of days with positive volume: 179
Number of days at $3.50 or above: 34
Percentage of days at $3.50 or above: 19%
</TABLE>
<PAGE> 119
TRADING AND EQUITY ANALYSIS
MARKET VALUE OF EQUITY AS A PERCENTAGE OF BOOK VALUE OF EQUITY
QUARTERLY SINCE FEBRUARY 1996
[GRAPH]
45 J.C. Bradford & Co.
<PAGE> 120
TRADING AND EQUITY ANALYSIS
TOTAL CAPITALIZATION TO EBIT
QUARTERLY SINCE FEBRUARY 1996
[GRAPH]
46 J.C. Bradford & Co.
<PAGE> 121
TRADING AND EQUITY ANALYSIS
TOTAL CAPITALIZATION TO EBITDA
QUARTERLY SINCE FEBRUARY 1996
[GRAPH]
47 J.C. Bradford & Co.
<PAGE> 122
LIQUIDATION ANALYSIS
LIQUIDATION VALUE
BASED ON FEBRUARY 28, 1999 BALANCE SHEET
<TABLE>
<CAPTION>
ACTUAL MANAGEMENT THEORETICAL
------ ---------- -----------
<S> <C> <C> <C>
ASSETS
Cash $ 2,027 $ 2,027 $ 2,027
Accounts Receivable 19,154 18,196 18,196
Inventories
Finished Product 32,675 16,338 21,239
Raw Material 1,096 274 712
Growing Crops 2,342 -- --
Packaging Materials 1,127 -- --
Sundry Supplies 545 -- --
Prepaid Expenses 3,296 -- --
Refundable Taxes -- -- --
Deferred Income Taxes 1,641 -- --
Net PP&E 58,553 47,485 47,485
Other assets
Notes & Accounts Receivable 51 51 51
Deferred Charges & Other Assets 893 -- --
Property & Equipment Held For
Disposal, Est. Realiz. Value -- -- --
Total Assets 123,400 84,370 89,710
======= ====== ======
LIABILITIES
Current Liabilities
Notes Payable to Banks and Others -- -- --
Accounts Payable 13,638 13,638 13,638
Accrued Liabilities 7,670 7,670 7,670
Accrued (Prepaid) Burden -- -- --
Income Taxes Payable 514 514 514
Deferred Income Taxes - Current -- -- --
Current Maturities of L-T-D 2,496 2,496 2,496
Long-term Debt Less Current Maturities 48,302 48,302 48,302
Long-term Revolving Loan -- -- --
Deferred Income Taxes - Long-term 4,512 -- --
Total Liabilities 77,132 72,620 72,620
------ ------ ------
Equity 46,268 11,750 17,090
------ ------ ------
Total Liabilities and Equity 123,400 84,370 89,710
======= ====== ======
Shares Outstanding 6,810 6,810 6,810
-------------------------------
Book Value Per Share $ 6.79 $ 1.73 $ 2.51
--------------------------------
</TABLE>
48 J.C. Bradford & Co.
<PAGE> 1
EXHIBIT 17(b)(4)
[J.C. BRADFORD LOGO]
January 20, 1999
Special Transaction Committee of the
Board of Directors
United Foods, Inc.
Ten Pictsweet Drive
Bells, TN 39006
Gentlemen:
You have requested our opinion as to the fairness, from a financial
point of view, to the stockholders of United Foods, Inc. (the "Company") other
than James I. Tankersley, the Chief Executive Officer of the Company, and his
wife and children (the "Tankersley Group") of $3.50 in cash, which is the
consideration to be received by such stockholders in the proposed merger (the
"Merger") in accordance with that certain draft Agreement and Plan of Merger
dated December 14, 1998 by and among the Company and two affiliates of the
Tankersley Group (the "Draft Merger Agreement"). No opinion is rendered hereby,
nor should one be implied, with regard to the fairness to the Tankersley Group
of the consideration to be received by them in the Merger.
J.C. Bradford & Co., LLC, as part of its investment banking business,
engages in the valuation of businesses and securities in connection with mergers
and acquisitions, negotiated underwritings, secondary distributions of listed
and unlisted securities, private placements, and valuations for estate,
corporate, and other purposes. We have been engaged by the Special Transaction
Committee of the Board of Directors of the Company to render this opinion in
connection with the Merger pursuant to an engagement letter dated September 29,
1998 and will receive a fee from the Company for our services as set forth in
the engagement letter.
In conducting our analysis and arriving at our opinion, we have
considered such financial and other information as we deemed appropriate
including, among other things, the following: (i) the Draft Merger Agreement;
(ii) the historical and current financial position and results of operations of
the Company, as set forth in its periodic reports and proxy materials filed with
the Securities and Exchange Commission; (iii) certain internal operating data
and financial analyses and forecasts of years beginning March 1, 1998 and ending
February 28, 1999, prepared by the Company's senior management; (iv) certain
internal operating data of the Company for the year beginning March 1, 1980 and
ending February 28, 1997; (v) reported securities trading data of the Company;
(vi) certain financial and securities trading data of certain other companies,
the securities of which are publicly traded, that we believed to be comparable
to the Company or relevant to the Merger; (vii) the financial terms of certain
other transactions that we believed to be comparable to the Merger or otherwise
relevant; (viii) the results of certain stock repurchase programs carried out by
the Company in the recent past; and (ix) such other financial studies,
<PAGE> 2
Special Transaction Committee of the Board of Directors
United Foods, Inc.
January 20, 1999
Page 2
analyses, and investigations as we deemed appropriate for purposes of our
opinion. We also have held discussions with members of the senior management of
the Company regarding the Company's past and current business operations,
financial condition, and its future prospects.
We have taken into account our assessment of general economic, market,
and financial and other conditions and our experience in other transactions, as
well as our experience in securities valuation and our knowledge of the industry
in which the Company operates. Our opinion is necessarily based upon the
information made available to us and conditions as they exist and can be
evaluated as of the date hereof.
We have relied upon the accuracy and completeness of all of the
financial and other information reviewed by us for purposes of our opinion and
have not assumed any responsibility for, nor undertaken an independent
verification of, such information. Without limiting the generality of the
foregoing, we have assumed, without independent investigation, that (i) the
reserves reflected in the Company's balance sheets with respect to environmental
liabilities, taxes, and litigation are adequate and that no additional reserves
with respect to such matters have been recorded since the latest balance sheet
date except in the ordinary course of business consistent with past practice;
(ii) the Company is not contemplating a material acquisition or disposition of
its assets; (iii) the Company has not repurchased any of its respective common
stock in the open market except as disclosed to us; and (iv) no disclosure by
the Company or the Tankersley Group to us misstates a material fact or omits to
state a material fact necessary to make the statements therein, in light of the
circumstances in which such disclosure is made, not misleading. We have also
assumed that the funds necessary to pay the Merger consideration to the
stockholders of the Company (other than the Tankersley Group) will be available
at the closing of the Merger and that the definitive Merger Agreement will not
differ in any material respect from the Draft Merger Agreement. With respect to
the internal operating data and financial analyses and forecasts supplied to us,
we have assumed that such data, analyses, and forecasts were reasonably prepared
on bases reflecting the best currently available estimates and judgments of the
Company's senior management as to the recent and likely future performance of
the Company. Accordingly, we express no opinion with respect to such analyses or
forecasts or the assumptions on which they are based.
We were not asked to consider and our opinion does not address the
relative merits of the Merger as compared to any alternative business strategies
that might exist for the Company or the effect of any other transactions in
which the Company might engage. Furthermore, we have not made an independent
evaluation or appraisal of the assets and liabilities of the Company or its
affiliates and have not been furnished with any such evaluation or appraisal.
We were engaged by the Special Transaction Committee of the Board of
Directors of the Company to render this opinion in connection with the Special
Transaction Committee's discharge of its fiduciary obligations. We have advised
the Special Transaction Committee that we do not believe that any person
(including a stockholder of the Company) other than the
<PAGE> 3
Special Transaction Committee of the Board of Directors
United Foods, Inc.
January 20, 1999
Page 3
Special Transaction Committee has the legal right to rely on this opinion for
any claim arising under state law and that, should any such claim be brought
against us, this assertion will be raised as a defense.
Based upon and subject to the foregoing, and based upon such other
matters as we consider relevant, it is our opinion that, as of the date hereof
and based on conditions as they currently exist, $3.50 in cash, which is the
consideration to be received in the Merger by the stockholders of the Company
(other than the Tankersley Group) is fair to such stockholders from a financial
point of view.
Very truly yours,
J. C. BRADFORD & CO., LLC
BY: /s/ N. B. FORREST SHOAF
-----------------------------------
N. B. FORREST SHOAF
SENIOR VICE PRESIDENT
<PAGE> 1
EXHIBIT 17(b)(5)
- --------------------------------------------------------------------------------
Information for:
Special Committee of the Board of Directors of
UNITED - FOODS
January 20, 1999
J.C. BRADFORD & CO.
330 Commerce Street
Nashville, TN 37201
(800)522-4750
- --------------------------------------------------------------------------------
<PAGE> 2
Table of Contents
- --------------------------------------------------------------------------------
UNITED FOODS VALUATION
I. TRANSACTION OVERVIEW
II. SUMMARY OF ANALYSIS
III. COMPARABLE COMPANY ANALYSIS
IV. COMPARABLE TRANSACTION ANALYSIS
V. DISCOUNTED CASH FLOW ANALYSIS
VI. PREMIUM ANALYSIS
VII. STOCK PRICE ANALYSIS
VIII. TRADING AND EQUITY ANALYSIS
IX. LIQUIDATION ANALYSIS
<PAGE> 3
Transaction Overview
- --------------------------------------------------------------------------------
- Going Private Transaction - Led by CEO/Chairman Jim Tankersley
- Tankersley Group (Including Jim Tankersley, his wife and his children) to
Acquire the Remaining Shares of the Company
- $3.50 per Share (16% Increase Over Initial Offer of $3.00 per Share)
- Tankersley Group Acquiring Approximately 4.3 million shares
- Appraisal Rights - Up to 250,000 Shares
- Cleansing Vote - All Shareholders Not Part of Tankersley Group
- Financing Contingency
- Deal Contingent Upon No Material Adverse Change in the Business
- Company Pays Transaction Expenses if Deal Does Not Close Unless Tankersley
Group Backs Out for Reasons Unrelated to Financing and Material Adverse
Changes
1
<PAGE> 4
Transaction Overview
- --------------------------------------------------------------------------------
TRANSACTION MULTIPLES:
<TABLE>
<CAPTION>
United Foods Valuation
<S> <C>
Purchase Price for United Foods Equity $ 3.50
Fully Diluted Shares Outstanding 6,810
Total Equity Consideration $ 23,835
---------
Plus: Net Debt as of 11/30/98 $ 43,354
Total Enterprise Valuation $ 67,189
=========
<CAPTION>
Multiple of UF
11/30/98 Total Enterprise Value
-------- ----------------------
<S> <C> <C>
Revenue $ 205,575 0.3x
EBITDA $ 13,258 5.1x
<CAPTION>
Multiple of UF
Total Equity Consideration
--------------------------
<S> <C> <C>
LTM EPS $ 0.17 20.6x
1998 Est. Cal. EPS 0.10 34.5x
1999 Est. Cal. EPS 0.11 31.8x
</TABLE>
2
<PAGE> 5
Transaction Overview - Origin of Transaction
- --------------------------------------------------------------------------------
SEPTEMBER 16, 1998
The chairman and chief executive officer of United Foods, Inc., James I.
Tankersley, and his family announced that they were going to acquire the
remaining shares of the Company's common stock that are not already owned by Mr.
Tankersley, his wife or his children (The Tankersley Group) for $3.00 per share.
On receiving the proposal, the Board of Directors of the Company appointed two
outside directors, John Wilder and Joe Geary, to a Special Committee. The Board
charged the committee with evaluating whether the proposal is in the best
interests of the Company and its shareholders other than the Tankersley Group.
The Special Committee employed J.C. Bradford to assist in evaluation of the
fairness of the proposed transaction.
3
<PAGE> 6
Transaction Overview - Process and Development
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DATE LOCATION ATTENDEES PURPOSE
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
9/25/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Special Committee hires J.C. Bradford
Doramus, Trauger, & Ney & Co. to render fairness opinion.
J.C. Bradford & Co.
9/29/98 United Foods, Inc. - Bells, TN Jim Tankersley Due diligence with Company management
United Foods, Inc.
J.C. Bradford & Co.
10/2/98 J.C. Bradford & Co. - Nashville, TN United Foods, Inc. Due diligence with Company management
Doramus, Trauger, & Ney
J.C. Bradford & Co.
10/5/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Presentation of initial findings,
Doramus, Trauger, & Ney preliminary valuation
J.C. Bradford & Co.
10/14/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Special Committee authorizes
Doramus, Trauger, & Ney J.C. Bradford & Co. to negotiate for
J.C. Bradford & Co. higher price for minority shareholders.
10/20/98 United Foods, Inc. - Bells, TN Jim Tankersley Negotiation Meeting I
Doramus, Trauger, & Ney
J.C. Bradford & Co.
10/27/98 J.C. Bradford & Co. - Nashville, TN Jim Tankersley Negotiation Meeting II
Doramus, Trauger, & Ney
J.C. Bradford & Co.
11/3/98 J.C. Bradford & Co. - Nashville, TN Jim Tankersley Negotiation Meeting III
Doramus, Trauger, & Ney
J.C. Bradford & Co.
11/18/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Presentation of negotiations
Doramus, Trauger, & Ney
J.C. Bradford & Co.
12/8/98 J.C. Bradford & Co. - Nashville, TN Special Committee Update of negotiations
Doramus, Trauger, & Ney
J.C. Bradford & Co.
12/15/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Special Committee authorizes deal @
Doramus, Trauger, & Ney $3.50 per share, with cleansing vote,
J.C. Bradford & Co. appraisal rights and other
contingencies.
12/21/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee J.C. Bradford & Co. updates analysis
Doramus, Trauger, & Ney
J.C. Bradford & Co.
</TABLE>
4
<PAGE> 7
Transaction Overview - Process and Development
- --------------------------------------------------------------------------------
PRICE NEGOTIATIONS
On three separate occasions, J.C. Bradford & Co and the Counsel for the
Special Committee met with Tankersley Group to negotiate the offer price up
from $3.00 per share.
J.C. Bradford & Co. presented its findings to the Tankersley Group and argued
that based upon its analysis a higher price was in order.
The Tankersley Group proposed that the Special Committee and its
representatives present a price that would be fair from a financial point of
view.
The Special Committee and J.C. Bradford & Co. initially proposed $3.85 per
share. In subsequent negotiations, the Tankersley Group and the Special
Committee agreed to $3.50 per share (a 16% premium to original offer).
NEGOTIATION OF OTHER TERMS
Original deal did not specifically state other terms and conditions.
J.C. Bradford & Special Committee proposed a cleansing vote that would not
include members of the Tankersley family and appraisal rights.
The final terms include a cleansing vote that includes all minority
shareholders and appraisal rights limited to 250,000 shares.
5
<PAGE> 8
Transaction Overview - Reasons for Transaction
- --------------------------------------------------------------------------------
- - Overcapacity, consolidation of competitors and customers , slotting pressures
and the prominence of farmer cooperatives have created severe margin and
market share pressures in the industry. These circumstances prevent public
investors from placing an attractive multiple on the Company's earnings. With
inadequate return on investment for a public company, and with little prospect
for better stock prices, the Company knows of only one other public company
still primarily in the frozen vegetable packaging business (i.e., Hanover
Foods).
- - There is no liquidity for shares of the Company's common stock. Sale of any
significant number of shares has the effect of driving the price down even
further. Therefore, a "non-market" transaction would be best for the public
shareholders.
6
<PAGE> 9
Transaction Overview - Reasons for Transaction
- --------------------------------------------------------------------------------
- - The Company has no current need for additional equity funds in order to
continue its operations. Therefore, it derives no advantage from remaining a
public company in terms of access to capital.
- - There is a cost to the Company of remaining registered and reporting under the
Securities Exchange Act of 1934, which cost would be avoided were the Company
to go private.
- - The Jim Tankersley Family does not wish to cause the Company to be sold to or
merged with an entity not controlled by them, and would not vote in favor of
such a transaction. Moreover, the Jim Tankersley Family believes that the
Merger Price is fair, from a financial point of view, to all of the
shareholders of the Company (other than the Jim Tankersley Family).
7
<PAGE> 10
Transaction Overview - Projections
- --------------------------------------------------------------------------------
UNITED FOODS, INC. -- Projection Model (0% Growth)
Projected Income Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) HISTORICAL PROJECTED
1/19/99 12:04 PM 1999 2000 2001 2002 2003 2004
---------- -------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 209,107 $ 209,107 $ 209,107 $ 209,107 $ 209,107 $ 209,107
Cost of sales 169,667 169,667 169,667 169,667 169,667 169,667
--------- --------- --------- --------- --------- ---------
Gross profit 39,440 39,440 39,440 39,440 39,440 39,440
General and administrative, net dep. 10,387 10,387 10,387 10,387 10,387 10,387
Direct selling expenses 16,704 16,704 16,704 16,704 16,704 16,704
--------- --------- --------- --------- --------- ---------
Total operating expenses 27,091 27,091 27,091 27,091 27,091 27,091
EBITDA 12,349 12,349 12,349 12,349 12,349 12,349
Depreciation 7,004 7,004 7,004 7,004 7,004 7,004
--------- --------- --------- --------- --------- ---------
Total depreciation & amortization 7,004 7,004 7,004 7,004 7,004 7,004
Total operating income 5,345 5,345 5,345 5,345 5,345 5,345
Interest expense 4,130 4,299 4,105 3,964 3,887 3,813
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense 10 10 10 10 10 10
Other (income) (15) -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Other expenses (income) 4,125 4,309 4,115 3,974 3,897 3,823
Pre-tax income 1,220 1,036 1,230 1,371 1,448 1,522
Provision for income taxes 469 394 467 521 550 578
--------- --------- --------- --------- --------- ---------
Net income $ 751 $ 642 $ 762 $ 850 $ 898 $ 943
========= ========= ========= ========= ========= =========
</TABLE>
8
<PAGE> 11
Summary of Analysis - Strengths of $3.50 Offer
- --------------------------------------------------------------------------------
- Poor industry dynamics imply little future growth and increasing
competition
- 40% premium to stock price the day before the announcement
- Comparable company earnings multiples imply valuation significantly below
$3.50 (offer represents over 34x 1998 Calendar EPS), especially with
regard to the most comparable company.
- DCF under reasonable assumptions yields a price range of $1.80 to $2.75
- Due to Tankersley control, no possibility of other buyers
- Only 25-30% of days during 1998 when the stock traded did the price reach
$3.50
- Company completed a $2.50/share tender offer in July 1997 for 4.0 million
aggregate Class A & B Shares (original offer was for 2.0 million shares)
9
<PAGE> 12
Summary of Analysis - Weaknesses of $3.50 Offer
- --------------------------------------------------------------------------------
- Offer is roughly half of book value
- Enterprise Value/ LTM EBITDA is 5.1x, which, except for Hanover Foods, is
below average of comparable group.
- Comparable transaction analysis yields valuations above $3.50 per share
10
<PAGE> 13
Summary of Analysis - Comparable Company Analysis
- --------------------------------------------------------------------------------
Comparable company analysis examines the consideration to be paid for United
Foods compared to market valuations of publicly held food distribution
companies.
<TABLE>
<CAPTION>
ADJUSTED AVERAGE
COMPARABLE COMPANY TRANSACTION % PREMIUM/
MULTIPLE BASIS MULTIPLE MULTIPLE (DISCOUNT)
-------------------------------------------------------------------
<S> <C> <C> <C>
LTM Earnings 18.3x 20.6x 12.5%
1998 Earnings Multiple 18.2x 34.5x 89.6%
1999 Earnings Multiple 14.7x 31.8x 117.0%
LTM EBITDA 8.3x 5.1x (38.9%)
Book Value 2.1x 0.5x (75.0%)
</TABLE>
Financial and operating data were reviewed in connection with this analysis
for the following companies in the food distribution industry:
<TABLE>
<S> <C> <C>
Chiquita Brands Intl. Michael Foods, Inc. Sylvan, Inc.
Dean Foods Co. Performance Food Group Co. Tyson Foods, Inc.
Fresh America Corp. Seneca Foods Corp. Vlasic Foods International
Hanover Foods Corp. Smithfield Companies, Inc.
Mccormick & Co. Smucker (Jm) Co.
</TABLE>
11
<PAGE> 14
Summary of Analysis - Comparable Transaction Analysis
- --------------------------------------------------------------------------------
Comparable transaction analysis examines the consideration to be paid for
United Foods, Inc. compared to multiples at which food distribution companies
have been acquired.
<TABLE>
<CAPTION>
AVERAGE
COMPARABLE
TRANSACTION TRANSACTION % PREMIUM/
MULTIPLE BASIS MULTIPLE MULTIPLE (DISCOUNT)
----------------------- ------------ ------------ ------------
<S> <C> <C> <C>
Book Value Multiple 3.6x 0.5x (85.5%)
LTM Net Income Multiple 23.9x 20.6x (13.7%)
LTM EBITDA Multiple 12.4x 5.1x (59.2%)
</TABLE>
12
<PAGE> 15
Summary of Analysis - Discounted Cash Flow Analysis
- --------------------------------------------------------------------------------
Discounted cash flow analysis examines the cash flows of United Foods, Inc.
for the next five years.
The following chart compares the results of this methodology to the price per
share being paid in the transaction:
UNITED FOODS, INC.
SUMMARY OF DISCOUNTED CASH FLOW METHODOLOGY
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
CAPITAL EXPENDITURES - 100% of Management's Projections
Implied Current Equity Valuation Premium/
---------------------------------- Acquisition (Discount) to
Minimum Maximum Average Price the Average
------- ------- ------- ----- -----------
<S> <C> <C> <C> <C> <C>
Cash Flow EBITDA Exit Multiple Method
-------------------------------------------------
Discount Range 8% and 10%
Multiple Range 5.0x - 7.0x
Current Per Share Value - 0% Growth Case(1) $ (0.05) $ 4.12 $ 1.98 $ 3.50 77.2%
Current Per Share Value - 2.5% Growth Case(1) $ 0.44 $ 5.00 $ 2.65 $ 3.50 32.0%
--------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Based on 6,809,929 shares outstanding.
13
<PAGE> 16
Summary of Analysis - Premiums Analysis
- --------------------------------------------------------------------------------
Premiums analysis. The premium paid to United Food's current and recent
trading prices compares favorably to premiums paid in similar public cash
transactions.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------
PREMIUMS PAID % PREMIUM/
--------------- TRANSACTION (DISCOUNT)
1996 - 1998 PREMIUM TO AVERAGE
----------- ------- ----------
<S> <C> <C> <C>
PURCHASE FOR CASH
1 Week Prior 36.8% 30.2% (6.6%)
1 Month Prior 43.0% 33.3% (9.7%)
----------------------------------------------------------------------------
Source: Securities Data Company
(1) Premium period is relative to the close on the day of
announcement.
</TABLE>
14
<PAGE> 17
Comparable Company Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION INDUSTRY
Comparable Company Summary Valuation
Overall Adjusted Average Multiples
(In thousands)
<TABLE>
<CAPTION>
Price to Trailing Earnings Multiple Basis: Price to Calendar 1998 Earnings Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM earnings ended 11/30/98 $ 1,332 Estimated earnings ended 12/31/98 $ 843
Adjusted Average Multiple 18.29 x Adjusted Average Multiple 18.18 x
-------- --------
Valuation $ 24,367 Valuation $ 15,335
-------- --------
Valuation per Share (1) $ 3.58 Valuation per Share (1) $ 2.25
-------- --------
<CAPTION>
Price to Calendar 1999 Earnings Multiple Basis:(2)
<S> <C> <C>
Estimated earnings ended 12/31/99 $ 752
Adjusted Average Multiple 14.66 x
---------
Valuation $ 11,026
---------
Valuation per Share (1) $ 1.62
---------
<CAPTION>
LTM EBITDA Multiple Basis: Equity to Book Value Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM EBITDA ended 11/30/98 $ 13,258 Estimated book value 11/30/98 $ 46,179
Adjusted Average Multiple 8.30 x Adjusted Average Multiple 2.07 x
--------- --------
110,045 Valuation $ 95,521
--------
Less total debt, net of cash 11/30/98 43,354 Valuation per Share (1) $ 14.03
--------- --------
Valuation $ 66,691
---------
Valuation per Share (1) $ 9.79
---------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(2) Based on 0% growth, base case projection.
- --------------------------------------------------------------------------------
At an offer price of $3.50, United Foods is valued above all comparable
companies as a multiple of Calendar 1998 EPS and Calendar 1999 EPS.
- --------------------------------------------------------------------------------
15
<PAGE> 18
Comparable Company Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION INDUSTRY
Comparable Company Summary Valuation
Hanover Foods Multiples
(In thousands)
<TABLE>
<CAPTION>
Price to Trailing Earnings Multiple Basis: LTM EBITDA Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM earnings ended 11/30/98 $ 1,332 LTM EBITDA ended 11/30/98 $ 13,258
Hanover Foods Multiple 4.69 x Hanover Foods Multiple 3.80 x
-------- ---------
Valuation $ 6,240 50,324
--------
Valuation per Share (1) $ 0.92 Less total debt, net of cash on 11/30/98 43,354
-------- ---------
Valuation $ 6,970
---------
Valuation per Share (1) $ 1.02
---------
<CAPTION>
Book Value Multiple Basis:
<S> <C> <C>
Book Value as of 11/30/98 $ 46,179
Hanover Foods Multiple 0.71 x
Less total debt net of cash on 11/30/98 43,354
--------
Valuation $ 32,858
--------
(10,496)
Valuation per Share (1) $ (1.54)
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
16
<PAGE> 19
Comparable Company Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION INDUSTRY
Comparable Company Summary Valuation
Overall Adjusted Average Multiples - $500 of Cost Savings
(In thousands)
<TABLE>
<CAPTION>
Price to Trailing Earnings Multiple Basis: Price to Calendar 1998 Earnings Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM earnings ended 11/30/98 $ 1,332 Estimated earnings ended 12/31/98 $ 843
Plus: Cost Savings of $500 (Taxed at 39%) 305 Plus: Cost Savings of $500 (Taxed at 39%) 305
Adjusted Earnings 1,637 Adjusted Earnings 1,148
Adjusted Average Multiple 18.29 x Adjusted Average Multiple 18.18 x
-------- --------
Valuation $ 29,946 Valuation $ 20,881
-------- --------
Valuation per Share (1) $ 4.40 Valuation per Share (1) $ 3.07
-------- --------
<CAPTION>
Price to Calendar 1999 Earnings Multiple Basis:(2)
<S> <C> <C>
Estimated earnings ended 12/31/99 $ 752
Plus: Cost Savings of $500 (Taxed at 39%) 305
Adjusted Earnings 1,057
Adjusted Average Multiple 14.66 x
--------
Valuation $ 15,498
--------
Valuation per Share (1) $ 2.28
--------
<CAPTION>
LTM EBITDA Multiple Basis: Equity to Book Value Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM EBITDA ended 11/30/98 $ 13,258 Estimated book value 11/30/98 $ 46,179
Plus: Cost Savings of $500 500 Adjusted Average Multiple 2.07 x
--------
Adjusted EBITDA 13,758 Valuation $ 95,521
--------
Adjusted Average Multiple 8.30 x Valuation per Share (1) $ 14.03
--------- --------
114,195
Less total debt, net of cash 11/30/98 43,354
--------
Valuation $ 70,841
--------
Valuation per Share (1) $ 10.40
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(2) Based on 0% growth, base case projection.
- --------------------------------------------------------------------------------
At an offer price of $3.50, United Foods is valued above all comparable
companies as a multiple of Calendar 1998 EPS and Calendar 1999 EPS even with an
addback of $500,000 for cost savings.
- --------------------------------------------------------------------------------
17
<PAGE> 20
Comparable Company Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION INDUSTRY
Comparable Company Summary Valuation
Hanover Foods Multiples - $500 of Cost Savings
(In thousands)
<TABLE>
<CAPTION>
Price to Trailing Earnings Multiple Basis: LTM EBITDA Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM earnings ended 11/30/98 $ 1,332 LTM EBITDA ended 11/30/98 $ 13,258
Plus: Cost Savings of $500 (Taxed at 39%) 305 Plus: Cost Savings of $500 500
Adjusted Earnings 1,637 Adjusted Earnings 13,758
Hanover Foods Multiple 4.69 x Hanover Foods Multiple 3.80 x
-------- ---------
Valuation $ 7,669 52,222
--------
Valuation per Share (1) $ 1.13 Less total debt, net of cash on 11/30/98 43,354
-------- ---------
Valuation $ 8,868
---------
Valuation per Share (1) $ 1.30
---------
<CAPTION>
Book Value Multiple Basis:
<S> <C> <C>
Book Value as of 11/30/98 $ 46,179
Hanover Foods Multiple 0.71
--------
$ 32,858 x
Less total debt, net of cash on 11/30/98 43,354
Valuation $(10,496)
---------
Valuation per Share (1) $ (1.54)
---------
</TABLE>
(1) Based on 6.8 million shares outstanding.
18
<PAGE> 21
Comparable Company Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION INDUSTRY
Comparable Company Summary Valuation
Overall Adjusted Average Multiples - $750 of Cost Savings
(In thousands)
<TABLE>
<CAPTION>
Price to Trailing Earnings Multiple Basis: Price to Calendar 1998 Earnings Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM earnings ended 11/30/98 $ 1,332 Estimated earnings ended 12/31/98 $ 843
Plus: Cost Savings of $750 (Taxed at 39%) 458 Plus: Cost Savings of $750 (Taxed at 39%) 458
Adjusted Earnings 1,790 Adjusted Earnings 1,301
Adjusted Average Multiple 18.29 x Adjusted Average Multiple 18.18 x
-------- --------
Valuation $ 32,736 Valuation $ 23,654
-------- --------
Valuation per Share (1) $ 4.81 Valuation per Share (1) $ 3.47
-------- --------
<CAPTION>
Price to Calendar 1999 Earnings Multiple Basis:(2)
<S> <C> <C>
Estimated earnings ended 12/31/99 $ 752
Plus: Cost Savings of $750 (Taxed at 39%) 458
Adjusted Earnings 1,210
Adjusted Average Multiple 14.66 x
--------
Valuation $ 17,734
--------
Valuation per Share (1) $ 2.60
--------
<CAPTION>
LTM EBITDA Multiple Basis: Equity to Book Value Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM EBITDA ended 11/30/98 $ 13,258 Estimated book value 11/30/98 $ 46,179
Plus: Cost Savings of $750 750 Adjusted Average Multiple 2.07 x
--------
Adjusted EBITDA 14,008 Valuation $ 95,521
--------
Adjusted Average Multiple 8.30 x Valuation per Share (1) $ 14.03
-------- --------
116,270
Less total debt, net of cash 11/30/98 43,354
--------
Valuation $ 72,916
--------
Valuation per Share (1) $ 10.71
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(2) Based on 0% growth, base case projection.
- --------------------------------------------------------------------------------
At an offer price of $3.50, United Foods is valued above all comparable
companies as a multiple of Calendar 1998 EPS and Calendar 1999 EPS even with an
addback of $750,000 for cost savings.
- --------------------------------------------------------------------------------
19
<PAGE> 22
Comparable Company Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION INDUSTRY
Comparable Company Summary Valuation
Hanover Foods Multiples - $750 of Cost Savings
<TABLE>
<CAPTION>
(In thousands)
Price to Trailing Earnings Multiple Basis: LTM EBITDA Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM earnings ended 11/30/98 $ 1,332 LTM EBITDA ended 11/30/98 $ 13,258
Plus: Cost Savings of $750 (Taxed at 39%) 458 Plus: Cost Savings of $750 750
Adjusted Earnings 1,790 Adjusted Earnings 14,008
Hanover Foods Multiple 4.69 x Hanover Foods Multiple 3.80 x
-------- ---------
Valuation $ 8,384 53,171
--------
Valuation per Share (1) $ 1.23 Less total debt, net of cash on 11/30/98 43,354
-------- --------
Valuation $ 9,817
--------
Valuation per Share (1) $ 1.44
--------
<CAPTION>
Book Value Multiple Basis:
<S> <C> <C>
Book Value as of 11/30/98 $ 46,179
Hanover Foods Multiple 0.71
Less total debt, net of cash on 11/30/98 $ 43,354
--------
Valuation $(10,496)
--------
Valuation per Share (1) $ (1.54)
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
20
<PAGE> 23
Comparable Company Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION INDUSTRY
Comparable Company Market Multiples
<TABLE>
<CAPTION>
5-Year
LTM LTM Cal. 1998 Cal. 1999 Projected 52 Week
Company Ticker End EPS Est. EPS Est. EPS(1) Growth Rate High Low
- ------- ------ --- --- -------- ----------- ----------- ---- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods UFD.A Nov 98 0.17 0.10 0.11 NA 4.00 2.25
Chiquita Brands Intl. CQB Sep 98 ($0.06) $0.62 $1.02 10.0% $14.69 $9.31
Dean Foods Co. DF Nov 98 2.55 2.50 2.77 13.8% 60.69 37.94
Fresh America Corp. FRES Sep 98 1.06 1.33 1.89 22.5% 24.25 9.50
Hanover Foods Corp. 3HNFSA Nov 98 12.70 NA NA NA 100.00 43.50
Mccormick & Co. MCCRK Aug 98 1.38 1.44 1.61 10.0% 36.44 27.06
Michael Foods, Inc. MIKL (2) Sep 98 1.78 1.83 2.05 14.5% 31.13 20.25
Performance Food Group Co. PFGC Sep 98 1.15 1.23 1.47 18.8% 29.13 15.63
Seneca Foods Corp. SENEB Sep 98 (1.33) NA NA NA 17.25 11.25
Smithfield Companies, Inc. HAMS Sep 98 0.56 NA NA NA 8.63 5.38
Smucker (Jm) Co. SJM.A Oct 98 1.28 1.28 1.36 NA 28.19 20.63
Sylvan, Inc. SYLN Sep 98 1.03 1.05 1.30 15.0% 18.75 11.75
Tyson Foods, Inc. TSN Sep 98 0.79 0.89 1.28 14.7% 26.00 16.31
Vlasic Foods International VL Oct 98 0.44 0.78 1.19 12.0% 27.00 13.69
<CAPTION>
Based on closing stock price as of 1/15/99
-----------------------------------------------
Price/ Price/ Cal. 1998 Cal. 1999
Price Price/ Cal. 1998 Cal. 1999 PE/ PE/
Company Ticker per Share LTM EPS Est. EPS Est. EPS Growth Rate Growth Rate
- ------- ------ --------- ------- -------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
United Foods UFD.A 3.50 20.6 x 34.5 x 31.8 x NM NM
Chiquita Brands Intl. CQB $10.06 NM 16.2 9.9 162.3% 98.7%
Dean Foods Co. DF 39.25 15.4 15.7 14.2 113.8% 102.7%
Fresh America Corp. FRES 17.50 16.5 13.2 9.3 58.5% 41.2%
Hanover Foods Corp. 3HNFSA 59.50 4.7 NA NA NM NM
Mccormick & Co. MCCRK 31.63 22.9 21.9 19.6 219.0% 196.3%
Michael Foods, Inc. MIKL (2) 23.59 13.3 12.9 11.5 88.9% 79.4%
Performance Food Group Co. PFGC 28.25 24.6 23.0 19.3 122.2% 102.4%
Seneca Foods Corp. SENEB 12.00 NM NA NA NM NM
Smithfield Companies, Inc. HAMS 7.50 13.4 NA NA NM NM
Smucker (Jm) Co. SJM.A 25.06 19.6 19.6 18.4 NM NM
Sylvan, Inc. SYLN 14.13 13.7 13.5 10.9 89.7% 72.4%
Tyson Foods, Inc. TSN 20.00 25.3 22.5 15.6 152.9% 106.1%
Vlasic Foods International VL 21.06 47.9 27.1 17.7 225.5% 147.2%
Median: 16.5 x 17.9 x 14.9 x 122.2% 102.4%
Average: 19.7 18.5 14.6 137.0% 105.1%
Adjusted Average
(excludes high and low): 18.3 18.2 14.7 135.5% 101.3%
</TABLE>
(1) When calendar 1999 EPS Multiple is not available it is approximated using
company's 5-year projected growth rate.
(2) MIKL LTM EPS excludes $0.11/sh losses from extraordinary items.
21
<PAGE> 24
Comparable Company Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION INDUSTRY
Comparable Company Market Capitalization Multiples
<TABLE>
<CAPTION>
(In thousands)
Total Total
1/15/99 Number of Total Debt, Market Book
Company Ticker Price Shares Equity Net of Cash Capital Value
- ------- ------ ----- ------ ------ ----------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
United Foods UFD.A 3.50 6,810 23,835 43,354 67,189 46,179
Chiquita Brands Intl. CQB $10.06 65,418 $ 658,103 1,018,733 $1,676,836 903,254
Dean Foods Co. DF (1) 39.25 40,300 1,581,767 465,206 2,046,973 741,698
Fresh America Corp. FRES 17.50 5,322 93,128 28,696 121,824 46,712
Hanover Foods Corp. 3HNFSA 59.50 717 42,648 48,446 91,094 59,938
Mccormick & Co. MCCRK 31.63 73,404 2,321,402 503,410 2,824,811 360,637
Michael Foods, Inc. MIKL (2) 23.59 21,210 500,420 159,876 660,296 237,705
Performance Food Group Co. PFGC 28.25 12,581 355,415 68,509 423,924 146,964
Seneca Foods Corp. SENEB 12.00 5,985 71,814 253,292 325,106 136,852
Smithfield Companies, Inc. HAMS 7.50 2,343 17,573 (6,038) 11,535 15,095
Smucker (Jm) Co. SJM.A (3) 25.06 29,121 729,835 (5,129) 724,706 310,840
Sylvan, Inc. SYLN 14.13 6,392 90,293 28,875 119,168 49,694
Tyson Foods, Inc. TSN 20.00 240,500 4,810,000 2,082,400 6,892,400 1,970,400
Vlasic Foods International VL 21.06 45,498 958,303 591,909 1,550,212 114,955
<CAPTION>
Market Equity/
LTM LTM Cap./ Book
Company Ticker EBIT EBITDA EBITDA Value
- ------- ------ ---- ------ ------ -----
<S> <C> <C> <C> <C> <C>
United Foods UFD.A 5,443 13,258 5.1 x 0.52 x
Chiquita Brands Intl. CQB $4,703 $221,465 7.6 0.73
Dean Foods Co. DF (1) 3,142 248,153 8.2 2.13
Fresh America Corp. FRES 908 13,248 9.2 1.99
Hanover Foods Corp. 3HNFSA 0 23,999 3.8 0.71
Mccormick & Co. MCCRK 3,662 242,604 11.6 6.44
Michael Foods, Inc. MIKL (2) 12,750 107,638 6.1 2.11
Performance Food Group Co. PFGC 1,988 36,818 11.5 2.42
Seneca Foods Corp. SENEB (4) 42,758 7.6 0.52
Smithfield Companies, Inc. HAMS 4 2,121 5.4 1.16
Smucker (Jm) Co. SJM.A (3) 683 78,908 9.2 2.35
Sylvan, Inc. SYLN 872 17,213 6.9 1.82
Tyson Foods, Inc. TSN (20,500) 622,200 11.1 2.44
Vlasic Foods International VL (25,827) 104,665 14.8 8.34
Median: 8.2 x 2.11 x
Average: 8.7 2.55
Adjusted Average (excludes high and low): 8.3 2.07
</TABLE>
22
<PAGE> 25
Comparable Company Analysis
- --------------------------------------------------------------------------------
United Foods, Inc. grows, processes, markets and distributes food products.
The Company's products include frozen asparagus, black-eyed peas,
broccoli, Brussel sprouts, carrots, cauliflower, corn, green beans, green
peas, green peppers, lima beans, various vegetable mixes and other
vegetables. United's products are sold to large national grocery chains
and independent food stores.
United Foods, Inc.
Daily Price & Volume Trading Statistics Since 12/31/97
UNITED FOODS, INC. - CLASS A UNITED FOODS, INC. - CLASS B
CHART CHART
23
<PAGE> 26
Comparable Company Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
CHIQUITA BRANDS INTL DEAN FOODS CO.
CHART CHART
FRESH AMERICA CORP. HANOVER FOODS CORP./PA
CHART CHART
24
<PAGE> 27
Comparable Company Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
MCCORMICK & CO. MICHAEL FOODS, INC
CHART CHART
PERFORMANCE FOOD GROUP CO. SENECA FOODS CORP. -CI B
CHART CHART
25
<PAGE> 28
Comparable Company Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
SMITHFIELD COMPANIES, INC. SMUCKER (JM) CO. -CI A
CHART CHART
SYLVAN, INC. TYSON FOODS, INC. -CI A
CHART CHART
26
<PAGE> 29
Comparable Company Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
VLASIC FOODS INTERNATIONAL
CHART
27
<PAGE> 30
Comparable Company Analysis
- --------------------------------------------------------------------------------
[ ] Description of Comparable Companies
Chiquita Brands International, Inc. produces, markets and distributes
bananas and other fresh and processed food products sold under the
"Chiquita" brand name. The Company's fresh products include mangoes, kiwi
and citrus and other tropical fruit. Chiquita also produces private-label
and branded canned vegetable and related products, fruit and vegetable
juices and other products.
Dean Foods Company processes, distributes and sell dairy, pickle, specialty
and vegetable products. Many of the Company's products are sold under
private labels. Dean's products include milk, ice cream and extended
shelf-life dairy products; salad dressings, dips and puddings; and
pickles, relishes and canned vegetables. The Company also operates a
trucking business.
Fresh America Corporation is an integrated food distribution management
company for fresh produce and other perishable refrigerated products. The
Company operates in 43 states and Canada through 22 distribution centers.
Fresh America operates produce departments in 342 "Sam's Club" stores.
"Sam's" is a division of Wal-Mart Stores, Inc.
Hanover Foods Corporation processes vegetable products. The Company grows,
processes, cans, freezes, freeze-dries, packages, markets and distributes
its products under its own trademarks, as well as other branded, customer
and private labels. Hanover operates in the United States.
28
<PAGE> 31
Comparable Company Analysis
- --------------------------------------------------------------------------------
[ ] Description of Comparable Companies
McCormick & Company Incorporated is a specialty food company. The Company
manufactures spices, seasonings, flavorings, and other specialty food
products and sells such products to the retail food market, the food
service market and to industrial food processors throughout the world.
McCormick, through its subsidiaries, also manufactures and markets
plastic and packaging products.
Michael Foods, Inc. is a diversified food processor and distributor with
interests in eggs and egg products, refrigerated case products, frozen
and refrigerated potato products and dairy products. The Company sells
these items to supermarkets, food service distributors, manufacturers and
fast food operators in Minnesota and surrounding states.
Performance Food Group Co. markets and distributes food and food-related
products to restaurants, hotels, cafeterias, schools and hospitals in the
United States. The Company's items include private label food products,
canned and dry groceries, poultry, meats, seafood, fresh produce, paper
and cleaning supplies and restaurant equipment.
Seneca Foods Corporation is primarily a fruit and vegetable processing
company with manufacturing facilities located throughout the United
States. The Company's products are sold under the "Seneca," "Libby's,"
and "TreeSweet" labels, as well as through the private label and
industrial markets. Seneca also, under alliance with The Pillsbury
Company, produces canned and frozen vegetables.
29
<PAGE> 32
Comparable Company Analysis
- --------------------------------------------------------------------------------
[ ] Description of Comparable Companies
The Smithfield Companies, Inc. produces and markets a wide range of branded
food products to the retail grocery and food service industries. The
Company's products include frozen barbecues and chilies, cured hams and
other pork products, peanuts and cashews. Smithfield's products are sold
on a wholesale basis, through catalogs and through its retail stores.
The J.M. Smucker Company manufactures and markets food products on a
worldwide basis. The Company's principal products include fruit spreads,
dessert toppings, peanut butter, industrial fruit products, fruit and
vegetable juices, juice beverages, syrups, condiments and gift packages.
Smucker's products are marketed under trademarks such as "Smucker's,"
"Simply Fruit" and "Goober."
Sylvan Inc. produces and distributes mushroom spawn and fresh mushrooms.
The Company also distributes a variety of other value-added products and
services for use by mushroom growers and produces fresh mushrooms for
sale to retailers, distributors and processors of mushroom products in
the United States. Sylvan operates in the United States, Europe and
Australia.
Tyson Foods, Inc. produces, markets and distributes a variety of food
products. The Company's products include value-enhanced poultry, fresh
and frozen poultry, value-enhanced seafood products, fresh and frozen
seafood products, prepared foods and other products such as flour and
corn tortillas and chips. Tyson also has live swine, animal feed and pet
food ingredient operations.
30
<PAGE> 33
Comparable Company Analysis
- --------------------------------------------------------------------------------
[ ] Description of Comparable Companies
Vlasic Foods International manufactures and markets branded convenience food
products in the frozen food, grocery product, and agricultural product
segments. The Company's products include "Swanson" and "Freshbake" frozen
foods, "Vlasic" pickles and condiments, "Open Pit" barbecue sauce, and
other brands. Vlasic's products are sold in the United States and other
countries.
31
<PAGE> 34
Comparable Transaction Analysis
- --------------------------------------------------------------------------------
UNITED FOODS, INC.
Comparable Transaction Summary Valuation
Food Distribution Companies(*)
<TABLE>
<CAPTION>
(In 000s, except per share)
Price to Trailing Earnings Multiple Basis: LTM EBIT Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM earnings ended 11/30/98 $ 1,332 LTM EBIT ended 11/30/98 $ 6,290
Adjusted Average Multiple 23.9 x Adjusted Average Multiple 16.4 x
-------- --------
Valuation $ 31,780 102,921
--------
Valuation Per Share (1) $ 4.67
-------- Less total debt, net of cash on 11/30/98 43,354
--------
Valuation $ 59,567
--------
Valuation Per Share (1) $ 8.75
--------
<CAPTION>
LTM EBITDA Multiple Basis: LTM Revenues Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM EBITDA ended 11/30/98 $ 13,258 LTM Revenues ended 11/30/98 $205,575
Adjusted Average Multiple 12.4 x Adjusted Average Multiple 1.1 x
-------- --------
164,740 219,778
Less total debt, net of cash on 11/30/98 43,354 Less total debt, net of cash on 11/30/98 43,354
-------- --------
Valuation $121,386 Valuation $176,424
-------- --------
Valuation Per Share (1) $ 17.82 Valuation Per Share (1) $ 25.91
-------- --------
<CAPTION>
Book Value Multiple Basis:
<C> <C> <C>
Book Value at 11/30/98 $45,518
Adjusted Average Multiple 3.6 x
--------
Valuation $162,008
--------
Valuation Per Share $ 23.79
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(*) Covers industries with SIC Codes in the 2030s. Source: Securities
Data Company, Inc. (201) 622-3100. As of 1/19/99.
32
<PAGE> 35
Comparable Transaction Analysis
- --------------------------------------------------------------------------------
UNITED FOODS, INC.
Comparable Transaction Summary Valuation
Aggregate Equity Consideration Less Than $100 Million
<TABLE>
<CAPTION>
(In 000s, except per share)
LTM EBITDA Multiple Basis: LTM Revenues Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM EBITDA ended 11/30/98 $13,258 LTM Revenues ended 11/30/98 $205,575
Adjusted Average Multiple 7.1 x Adjusted Average Multiple 0.4 x
------- --------
93,595 87,814
Less total debt, net of cash on 11/30/98 43,354 Less total debt, net of cash on 11/30/98 43,354
------- --------
Valuation $50,241 Valuation $ 44,460
------- --------
Valuation Per Share (1) $ 7.38 Valuation Per Share (1) $ 6.53
------- --------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
33
<PAGE> 36
Comparable Transaction Analysis
- --------------------------------------------------------------------------------
UNITED FOODS, INC.
Comparable Transaction Summary Valuation
Multiples Based on Agrilink Acquisition of Dean Foods Vegetable Division
<TABLE>
<CAPTION>
(In 000s, except per share)
LTM Revenues Multiple Basis: LTM EBIT Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM Revenues ended 11/30/98 $205,575 LTM EBIT ended 11/30/98 $ 6,290
Transaction Multiple 0.8 x Transaction Multiple 11.4 x
-------- -------
159,663 71,504
Less total debt, net of cash on 11/30/98 43,354 Less total debt, net of cash on 11/30/98 43,354
-------- -------
Valuation $116,309 Valuation $28,150
-------- -------
Valuation Per Share $ 17.08 Valuation Per Share $ 4.13
-------- -------
<CAPTION>
Book Value Multiple Basis:
<S> <C> <C>
Book Value at 11/30/98 $ 45,518
Transaction Multiple 1.7 x
--------
Valuation 75,863
--------
Valuation Per Share $ 11.14
--------
</TABLE>
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
34
<PAGE> 37
Comparable Transaction Analysis
- --------------------------------------------------------------------------------
UNITED FOODS, INC.
Comparable Transaction Summary Valuation
Multiples Based on Agrilink Acquisition of Dean Foods Vegetable Division
<TABLE>
<CAPTION>
(In 000s, except per share)
LTM EBIT Multiple Basis: LTM EBIT Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM EBIT ended 11/30/98 $ 6,290 LTM EBIT ended 11/30/98 $ 6,290
Plus $500,000 Cost Savings $ 500 Plus $750,000 Cost Savings $ 750
------- -------
$ 6,790 $ 7,040
Transaction Multiple 11.4 x Transaction Multiple 11.4 x
------- -------
77,188 80,030
Less total debt, net of cash on 11/30/98 43,354 Less total debt, net of cash on 11/30/98 43,354
------- -------
Valuation $33,834 Valuation $36,676
------- -------
Valuation Per Share $ 4.97 Valuation Per Share $ 5.39
------- -------
<CAPTION>
LTM EBIT Multiple Basis:
<S> <C> <C>
LTM EBIT ended 11/30/98 $ 6,290
Plus $1,000,000 Cost Savings $ 1,000
-------
$ 7,290
Transaction Multiple 11.4 x
-------
82,872
Less total debt, net of cash on 11/30/98 43,354
-------
Valuation $39,518
-------
Valuation Per Share $ 5.80
-------
</TABLE>
35
<PAGE> 38
Comparable Transaction Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION COMPANIES(*)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
(Dollars in millions)
Aggreg. Equity Consid.
as a Multiple of:
Aggregate Levered ----------------------
Date Equity Aggregate LTM Net Book
Announced Acquiror/Target Consideration Consideration(2) Income Value
--------- ----------------------------- ------------- ---------------- ------ -----
<S> <C> <C> <C> <C> <C>
06/07/90 ConAgra Inc $1,336.0 $3,294.0 NM 1.5
Beatrice Co
09/28/90 Shareholders $1,607.0 $1,607.0 73.4 2.0
Pet Inc(Whitman Corp)
10/19/90 MANO Holdings $ 42.5 $ 42.5 17.0 3.0
B Manischewitz Co
04/19/91 ConAgra Inc $ 408.4 $ 408.4 20.8 3.8
Golden Valley Microwave Foods
07/18/91 HJ Heinz Co $ 500.0 $ 500.0 NA NA
JL Foods Inc(John Labatt Ltd)
12/20/91 CPC International Inc $ 115.0 $ 115.0 NA NA
Fearn Intl(Kellogg Co)
01/24/92 Burns Philp Inc $ 85.0 $ 85.0 NA NA
Durkee-French Foods(Burns)
04/09/92 Ben Hill Griffin Inc $ 31.0 $ 31.0 NM 0.7
Orange-co(Stoneridge Res Inc)
04/22/92 Shareholders $ 181.1 $ 181.1 9.2 2.4
Ralston-Continental Baking
10/12/92 Dean Foods Co $ 15.0 $ 15.0 NM 1.2
WB Roddenbery Co
08/12/93 Pro-Fac Cooperative Inc $ 164.2 $ 431.2 NM 2.0
Curtice-Burns Foods(Pro-Fac)
08/16/93 Shareholders $ 528.0 $ 528.0 NA NA
Ralcorp Holdings Inc(Ralston)
11/01/93 Dean Foods Co $ 140.0 $ 140.0 23.3 NA
Kraft General Foods-Birds Eye
<CAPTION>
Levered Aggregate Consideration
as a Multiple of:
-------------------------------
Date LTM LTM LTM Percent
Announced Acquiror/Target Revenue EBITDA EBIT Acquired
--------- ----------------------------- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C>
06/07/90 ConAgra Inc 0.8 6.9 9.6 100.0%
Beatrice Co
09/28/90 Shareholders 0.9 5.5 6.7 100.0%
Pet Inc(Whitman Corp)
10/19/90 MANO Holdings 1.2 8.5 10.1 100.0%
B Manischewitz Co
04/19/91 ConAgra Inc 2.3 19.1 30.0 100.0%
Golden Valley Microwave Foods
07/18/91 HJ Heinz Co 1.1 NA NA 100.0%
JL Foods Inc(John Labatt Ltd)
12/20/91 CPC International Inc 1.2 NA NA 100.0%
Fearn Intl(Kellogg Co)
01/24/92 Burns Philp Inc 0.4 NA NA 100.0%
Durkee-French Foods(Burns)
04/09/92 Ben Hill Griffin Inc 0.5 NM NM 52.3%
Orange-co(Stoneridge Res Inc)
04/22/92 Shareholders 0.2 NA 3.5 55.0%
Ralston-Continental Baking
10/12/92 Dean Foods Co 0.3 NM NM 100.0%
WB Roddenbery Co
08/12/93 Pro-Fac Cooperative Inc 0.5 20.5 NM 100.0%
Curtice-Burns Foods(Pro-Fac)
08/16/93 Shareholders 0.7 NA NA 100.0%
Ralcorp Holdings Inc(Ralston)
11/01/93 Dean Foods Co 0.6 NA NA 100.0%
Kraft General Foods-Birds Eye
</TABLE>
36
<PAGE> 39
Comparable Transaction Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION COMPANIES(*)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
(Dollars in millions)
Aggreg. Equity Consid.
as a Multiple of:
Aggregate Levered ----------------------
Date Equity Aggregate LTM Net Book
Announced Acquiror/Target Consideration Consideration(2) Income Value
--------- --------------------------- ------------- ---------------- ------ -----
<S> <C> <C> <C> <C> <C>
03/18/94 Doskocil Cos Inc $ 135.0 $ 135.0 NA NA
Intl Multifoods-Prepared Foods
04/18/94 ConAgra Inc $ 202.0 $ 202.0 NA NA
Universal Foods-Frozen Foods
04/20/94 Schreiber Foods Inc $ 11.8 $ 11.8 16.9 2.8
Arden International Kitchens
05/23/94 Sandoz AG $3,685.7 $3,685.7 32.3 10.1
Gerber Products Co
09/12/94 Kohlberg Kravis Roberts & Co $2,222.9 $4,622.9 NM 8.6
Borden Inc
11/28/94 Campbell Soup Co $1,115.0 $1,115.0 24.8 18.3
Pace Foods
01/09/95 Pillsbury Co(Grand Met PLC) $2,636.5 $2,636.5 23.4 7.3
Pet Inc(Pillsbury/Grand Met)
07/26/95 Shareholders $ 309.8 $ 309.8 NM 0.5
Earthgrains Co(Anheuser-Busch)
03/15/96 ConAgra Inc $ 132.0 $ 132.0 NA NA
Gilroy Foods Inc
06/30/97 JP Foodservice Inc $ 770.6 $1,510.6 NM 2.3
Rykoff-Sexton Inc
09/09/97 Shareholders $1,004.8 $1,004.8 NA NA
Campbell Soup-Noncore Bus(7)
09/18/97 Chiquita Brands International $ 10.9 $ 42.9 NM 1.8
Stokely USA Inc
09/29/97 Suiza Foods Corp $ 855.9 $1,035.9 47.0 8.6
Morningstar Group Inc
<CAPTION>
Levered Aggregate Consideration
as a Multiple of:
-------------------------------
Date LTM LTM LTM Percent
Announced Acquiror / Target Revenue EBITDA EBIT Acquired
--------- --------------------------- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C>
03/18/94 Doskocil Cos Inc 0.7 NA NA 100.0%
Intl Multifoods-Prepared Foods
04/18/94 ConAgra Inc NA NA NA NA
Universal Foods-Frozen Foods
04/20/94 Schreiber Foods Inc 0.6 5.6 10.7 100.0%
Arden International Kitchens
05/23/94 Sandoz AG 3.1 16.3 20.0 100.0%
Gerber Products Co
09/12/94 Kohlberg Kravis Roberts & Co 0.8 NA 40.1 100.0%
Borden Inc
11/28/94 Campbell Soup Co 4.8 23.7 26.3 100.0%
Pace Foods
01/09/95 Pillsbury Co(Grand Met PLC) 1.7 10.0 12.2 100.0%
Pet Inc(Pillsbury/Grand Met)
07/26/95 Shareholders 0.2 NA NM 100.0%
Earthgrains Co(Anheuser-Busch)
03/15/96 ConAgra Inc 0.7 NA NA 100.0%
Gilroy Foods Inc
06/30/97 JP Foodservice Inc 2.9 NM NM 100.0%
Rykoff-Sexton Inc
09/09/97 Shareholders 0.7 NA NA 100.0%
Campbell Soup-Noncore Bus(7)
09/18/97 Chiquita Brands International 0.2 NM NM 100.0%
Stokely USA Inc
09/29/97 Suiza Foods Corp 2.1 NA 26.6 100.0%
Morningstar Group Inc
</TABLE>
37
<PAGE> 40
Comparable Transaction Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION COMPANIES(*)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
(Dollars in millions)
Aggreg. Equity Consid.
as a Multiple of:
Aggregate Levered ----------------------
Date Equity Aggregate LTM Net Book
Announced Acquiror/Target Consideration Consideration(2) Income Value
- --------- --------------------------- ------------- ---------------- ------ -----
<S> <C> <C> <C> <C> <C>
10/01/97 Chiquita Brands International $ 27.0 $ 29.0 7.5 1.1
American Fine Foods Inc
02/18/98 Agrilink Foods(Pro-Fac) $ 6.9 $ 6.9 NA NA
Delagra Corp
05/08/98 Agrobios(Desc SA de CV) $141.9 $141.9 NM 3.2
Authentic Specialty Foods Inc
07/21/98 Agrilink Foods(Pro-Fac) NA NA NA NA
JA Hopay Distributing Co
07/27/98 Agrilink Foods(Pro-Fac) $480.0 $482.0 NA 1.7
Dean Foods Co-Vegetable Ops
Average: 26.9 4.1
Adjusted Average 23.9 3.6
<CAPTION>
Levered Aggregate Consideration
as a Multiple of:
--------------------------------
Date LTM LTM LTM Percent
Announced Acquiror/Target Revenue EBITDA EBIT Acquired
- --------- --------------------------- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C>
10/01/97 Chiquita Brands International 0.4 NA NA 100.0%
American Fine Foods Inc
02/18/98 Agrilink Foods(Pro-Fac) NA NA NA 100.0%
Delagra Corp
05/08/98 Agrobios(Desc SA de CV) 2.7 NM NM 100.0%
Authentic Specialty Foods Inc
07/21/98 Agrilink Foods(Pro-Fac) NA NA NA 100.0%
JA Hopay Distributing Co
07/27/98 Agrilink Foods(Pro-Fac) 0.8 NA 11.4 100.0%
Dean Foods Co-Vegetable Ops
Average: 1.2 12.9 17.3
Adjusted
Average 1.1 12.4 16.4
</TABLE>
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
(2) Levered aggregate consideration is defined as aggregate equity
consideration plus total debt, net of cash and equivalents.
38
<PAGE> 41
Comparable Transaction Analysis
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION COMPANIES(*)
Analysis of M&A Transaction Multiples Since 1/1/90
Aggregate Equity Consideration Less Than $100 Million
<TABLE>
<CAPTION>
(Dollars in millions)
Aggreg. Equity Consid.
as a Multiple of:
Aggregate Levered -----------------------
Date Equity Aggregate LTM Net Book
Announced Acquiror/Target Consideration Consideration(2) Income Value
--------- --------------- ------------- ---------------- ------- -----
<S> <C> <C> <C> <C> <C>
10/19/90 MANO Holdings $42.5 $42.5 NM NM
B Manischewitz Co
01/24/92 Burns Philp Inc $85.0 $85.0 NA NA
Durkee-French Foods(Burns)
04/09/92 Ben Hill Griffin Inc $31.0 $31.0 NM NM
Orange-co(Stoneridge Res Inc)
10/12/92 Dean Foods Co $15.0 $15.0 NM NM
WB Roddenbery Co
04/20/94 Schreiber Foods Inc $11.8 $11.8 NM NM
Arden International Kitchens
09/18/97 Chiquita Brands International $10.9 $42.9 NM NM
Stokely USA Inc
10/01/97 Chiquita Brands International $27.0 $29.0 NM NM
American Fine Foods Inc
02/18/98 Agrilink Foods(Pro-Fac) $ 6.9 $ 6.9 NA NA
Delagra Corp
Average: NA NA
Adjusted Average NA NA
<CAPTION>
Levered Aggregate Consideration
as a Multiple of:
-------------------------------
Date LTM LTM LTM Percent
Announced Acquiror/Target Revenue EBITDA EBIT Acquired
--------- --------------------------- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C>
10/19/90 MANO Holdings 1.2 8.5 NM 100.0%
B Manischewitz Co
01/24/92 Burns Philp Inc 0.4 NA NA 100.0%
Durkee-French Foods(Burns)
04/09/92 Ben Hill Griffin Inc 0.5 NM NM 52.3%
Orange-co(Stoneridge Res Inc)
10/12/92 Dean Foods Co 0.3 NM NM 100.0%
WB Roddenbery Co
04/20/94 Schreiber Foods Inc 0.6 5.6 NM 100.0%
Arden International Kitchens
09/18/97 Chiquita Brands International 0.2 NM NM 100.0%
Stokely USA Inc
10/01/97 Chiquita Brands International 0.4 NA NA 100.0%
American Fine Foods Inc
02/18/98 Agrilink Foods(Pro-Fac) NA NA NA 100.0%
Delagra Corp
Average: 0.5 7.1 NA
Adjusted
Average 0.4 7.1 NA
</TABLE>
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
(2) Levered aggregate consideration is defined as aggregate equity
consideration plus total debt, net of cash and equivalents.
39
<PAGE> 42
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------ -------- -------- ----- --------- ------ -------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/7/90 8/14/90 ConAgra Inc Beatrice Co $1,336.0 $3,294.0 -- -- $864.0 $4,310.0 $11.0 $343.0 $478.0
Advisor Gleacher & Co Salomon Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- ------ --------------
<S> <C> <C> <C> <C>
6/7/90 $1,016.0 $3,472.0 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Beatrice from Kohlberg Kravis Roberts (KKR) for $3.294
bil in cash, common stock, preferred stock, and the assumption of
Beatrice's liabilities. The consideration consisted of $626 mil in
cash, $355 mil in common stock and $355 mil in 2 series of preferred
stock plus the assumption of $1.958 bil of Beatrice's liabilities. The
deal had been subject to governmental approval due to antitrust issues.
Gleacher acted as financial advisor to ConAgra.
Target Business Description
---------------------------
Produce food, consumer prod
Acquiror Business Description
-----------------------------
Produce meats,eggs,cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/28/90 4/4/91 Shareholders Pet Inc(Whitman Corp) $1,607.0 $1,607.0 $15.63 102.8 $801.6 $1,863.2 $21.9 $241.5 $291.5
Advisor -- First Boston Corp.
-------
Company Status Priv. Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C>
9/28/90 $130.0 $1,531.4 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Whitman completed the spinoff of Pet for $1.607 bil, based on Pet's
closing share price of $15.625 on April 4, its first day of trading.
First Boston was retained to study a possible restructure plan and
recommended the spinoff. The transaction was conducted by means of a
stock dividend in which shareholders received one share of Pet for
every Whitman share held. In anticipation of the spinoff, Whitman
restructured its major food operations, splitting them into three
divisions. In 1989, Pet generated $1.755 bil in sales and $280 mil in
pre-tax operating profit.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 43
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------- ------ -------- ------- --------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/19/90 1/18/91 MANO Holdings B Manischewitz Co $42.5 $42.5 $800.00 0.1 $14.2 $34.2 $2.5 $4.2 $5.0
Advisor TGV Partners Lehman Brothers
-------
Company Status Priv. Public
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- -------------- --------
<S> <C> <C> <C> <C>
10/19/90 -- $18.4 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
MANO Holdings, an investor group led by Kohlberg and including TGV
Partners and management, acquired B Manischewitz in a leveraged buyout
transaction valued at $800 in cash per share, or $42.5 mil. MANO
accepted 81% of B Manischewitz' shares (42,975 shares) that were
tendered in the offer and acquired the rest for $800 in cash per share.
Under the terms of the agreement, senior management was to retain an
equity interest in MANO Holdings.
Target Business Description
---------------------------
Produce, whl, ret matzos
Acquiror Business Description
-----------------------------
Investor group; holding co
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/19/91 7/11/91 ConAgra Inc Golden Valley Microwave Foods $408.4 $408.4 $26.39 17.6 $108.0 $177.6 $19.6 $13.6 $21.4
Advisor Gleacher & Co Goldman, Sachs & Co.
-------
Company Status Public Public
--------------
<CAPTION>
<S> <C> <C> <C> <C>
4/19/91 $52.7 $180.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Golden Valley Microwave Foods (GV) in a stock
transaction valued at $464.5 mil. GV shareholders received .5676 shares
of ConAgra for each of GV's 18.8 mil fully diluted common shares. Based
on ConAgra's closing stock price of $47.375 on Apr 18, the last full
trading day prior to the announcement, each share of GV had an
indicated value of $26.39. ConAgra also agreed to convert 600,000 GV
warrants, held by an affiliate of Chase Manhattan Bank, for 340,560
rights to buy ConAgra stock at $60.48.
Target Business Description
---------------------------
Produce microwave food prod
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 44
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/18/91 8/23/91 HJ Heinz Co JL Foods Inc (John Labatt Ltd) $500.0 $500.0 -- -- -- $475.0 -- --
Advisor Dillon, Read James D. Wolfensohn Inc.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
7/18/91 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
HJ Heinz acquired the JL Foods unit of John Labatt for $500 mil in
cash. John Labatt had disclosed in May 1991 that it was seeking a buyer
for its JL Foods unit. Officials said the planned divestiture was
consistent with John Labatt's stated strategy to focus on its core
brewing, entertainment and dairy operations. The transaction had been
subject to US and Canadian regulatory approval.
Target Business Description
---------------------------
Produce, whl frozen foods
Acquiror Business Description
-----------------------------
Canned food preparations
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/20/91 1/31/92 CPC International Inc Fearn Intl (Kellogg Co) $115.0 $115.0 -- -- -- $100.0 -- --
Advisor Salomon Brothers Lehman Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
12/20/91 -- -- -- 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
CPC International acquired all the outstanding common stock of Fearn
International, a subsidiary of Kellogg, including the Le Gout product
line for a $115 mil in cash. Lehman Brothers acted as financial advisor
to Kellogg while Salomon Brothers advised CPC International.
Target Business Description
---------------------------
Produce soups and desserts
Acquiror Business Description
-----------------------------
Produce soups, sauces, food prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 45
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/24/92 8/3/92 Burns Philp Inc Durkee-French Foods (Burns) $85.0 $85.0 -- -- -- $200.0 -- --
Advisor -- --
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
1/24/92 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Burns Philp Inc, a unit of Burns Philp & Co, acquired Durkee-French
Foods from Reckitt & Coleman for $85 mil in cash, including $7 mil to
be held in escrow pending finalization of certain accounts.
Target Business Description
---------------------------
Produce mustard, sauces
Acquiror Business Description
-----------------------------
Produce yeast, vinegar, spices
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/9/92 5/28/92 Ben Hill Griffin Inc Orange-co (Stoneridge Res Inc)$31.0 $31.0 -- -- $85.6 $126.5 ($8.7) ($9.0)
Advisor -- Donaldson, Lufkin & Jenrette
-------
Company Status Priv. Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/9/92 ($4.2) $45.9 $149.8 52.3 Completed
Acq. Maj. Int.
Friendly
</TABLE>
Deal Description
----------------
Ben Hill Griffin acquired a 52.3% interest in Orange-co held by
Stoneridge Resources for $31 mil. Stonebridge Resources said in October
1990 that it was seeking a buyer for all of its assets for the purpose
of raising cash to distribute a liquidation dividend to shareholders.
Stonebridge retained Donaldson Lufkin & Jenrette Securities as a
financial advisor.
Target Business Description
---------------------------
Prod oranges, juices, plastics
Acquiror Business Description
-----------------------------
Frozen fruits, juices, vegetable
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 46
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/22/92 8/2/93 Shareholders Ralston-Continental Baking $181.1 $181.1 $8.75 37.6 $137.4 $2,014.5 $35.8 $92.9
Advisor - Lehman Brothers
-------
Company Status Priv. Sub.
- ----------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/22/92 -- -- $844.9 55 Completed
Acq. Maj. Int.
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina (RP) completed the spinoff of 20.7 mil new common
shares, or a 55% interest, in its newly created Ralston-Continental
Baking Group (CBG) to shareholders in a targeted stock recapitalization
valued at $181.12 mil. Shareholders of record as of Jul 30 received 1
CBG share for every 5 RP share held. Ralston Purina had originally
planned to spinoff the entire unit in April 1992. CBG was created in
order to separate the performance of RP's baking and non-baking
interests.
Target Business Description
---------------------------
Produce bakery products
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/12/92 2/1/93 Dean Foods Co WB Roddenbery Co $15.0 $15.0 -- -- $12.8 $54.8 ($1.7) ($1.4)
Advisor -- KPMG Peat Marwick
-------
Company Status Public Priv.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
10/12/92 ($0.5) $0.8 $19.1 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired all the outstanding stock of WB Roddenbery in
exchange for 535,000 of its common shares valued at $14.2 mil. The
value of the shares was based on Dean's closing stock price of $26.5
per share on Oct 9, the last full trading day prior to the
announcement. The transaction had been subject to Federal Trade
Commission approval.
Target Business Description
---------------------------
Produce pickles, vinegar, syrup
Acquiror Business Description
-----------------------------
Produce milk, dairy products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 47
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/12/93 11/3/94 Pro-Fac Cooperative Inc Curtice-Burns Foods(Pro-Fac) $164.2 $431.2 $19.00 8.6 $81.3 $854.8 ($18.5)
Advisor Dillon, Read Donaldson, Lufkin & Jenrette
------- Priv. Public
Company Status
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
8/12/93 ($5.2) $21.0 $257.5 $463.6 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative (PFC) acquired Curtice-Burns (CBF) for a total of
$19 in cash per share, or a total value of $424.25 mil, by accepting
8,276,439 common shares, or 96% of the outstanding shares. Included in
the value was PFC's assumption of $267 mil of CBF's debt. PFC had
originally offered $16.87 in cash per share held. The tender offer was
contingent upon at least 90% of CBF's Class A and B shares being
tendered. Dean Foods withdrew its offer to acquire CBF.
Target Business Description
---------------------------
Produce soft drinks, foods
Acquiror Business Description
-----------------------------
Provide food marketing service
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/16/93 3/31/94 Shareholders Ralcorp Holdings Inc (Ralston) $528.0 $528.0 $16.00 33.0 -- $808.6 --
Advisor -- Wasserstein, Perella
------- Priv. Sub.
Company Status
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
8/16/93 -- -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina Group, a unit of Ralston Purina, spun off its newly
formed Ralcorp Holdings (RH) unit, consisting of its cereal, Beech-Nut
baby food, cracker, cookie, resort, and coupon redemption businesses to
shareholders in a transaction valued of $528 mil based on RH's closing
stock price of $16 per share on Apr 1, the first full trading day of
newly issued RH shares. The shares in the spinoff would be distributed
at a ratio of 1 RH share for every 3 shares of Ralston Purina Group.
The unit included its Keystone and Breckenridge ski resorts.
Target Business Description
---------------------------
Produce cereal, baby food
Acquiror Business Description
-----------------------------
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 48
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/1/93 12/27/93 Dean Foods Co Kraft General Foods-Birds Eye $140.0 $140.0 -- -- -- $250.0
Advisor JP Morgan Securities, Inc. Morgan Stanley
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
11/1/93 $6.0 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired the BirdsEye frozen vegetable business of Kraft
General Foods, a unit of Philip Morris, for $140 mil. The transaction
had been subject to regulatory approval.
Target Business Description
---------------------------
Prod frozen vegetables
Acquiror Business Description
-----------------------------
Produce milk, dairy products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/18/94 6/1/94 Doskocil Cos Inc Intl Multifoods-Prepared Foods $135.0 $135.0 -- -- -- $185.0
Advisor -- Lehman Brothers
-------
Company Status Public Sub
- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
3/18/94 -- -- -- -- -- 100 Completed
Acq. of
Assets
Friendly
</TABLE>
Deal Description
----------------
Doskocil acquired the prepared foods division of International
Multifoods (IM) for $135 mil in cash. In September 1993, IM's board had
announced that it was seeking to divest its prepared foods division.
The division included its frozen specialty foods and meats businesses.
Later IBP acquired the meats business.
Target Business Description
---------------------------
Produce prepared foods
Acquiror Business Description
-----------------------------
Produce sausages, prepared meat
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 49
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ----------- ----------------------------- ------ ------ ------ --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/18/94 -- ConAgra Inc Universal Foods-Frozen Foods $202.0 $202.0 -- -- -- -- -- --
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------ --------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/18/94 -- -- -- -- Pending
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra agreed to acquire the frozen foods business of Universal Foods
for an amended $202 mil in cash. The initial value was $220 mil,
including $57 mil in performance-related payments. The transaction was
subject to regulatory approval.
Target Business Description
---------------------------
Produce frozen foods
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/20/94 11/30/94 Schreiber Foods Inc Arden International Kitchens $11.8 $11.8 $3.90 3.0 $4.2 $19.5 $0.7 $1.1
Advisor -- --
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/20/94 $2.1 $0.9 $6.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Schreiber Foods (SF) acquired Arden International Kitchens (AIK) for an
amended $11.8 mil in cash, or $3.90 per common share. SF had originally
agreed to acquire AIK for $4 per share, or a total value of $12.1 mil.
Target Business Description
---------------------------
Produce frozen foods for
Acquiror Business Description
-----------------------------
Produce meat and food products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 50
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- -------- -------- ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/23/94 12/19/94 Sandoz AG Gerber Products Co $3,685.7 $3,685.7 $53.00 69.5 $364.7 $1,202.5 $114.2 $184.0
Advisor Morgan Stanley Wasserstein, Perella
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ ---------
<S> <C> <C> <C> <C> <C>
5/23/94 $226.0 $84.7 $1,013.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Sandoz completed its merger with Gerber Products (GP) in a transaction
valued at $3.68 bil. Earlier, Sandoz had completed its tender offer for
all the common shares of GP for $53 in cash per share, by accepting
69.08 mil shares, or about 99.2% of GP's shares outstanding. The offer
had been conditioned upon Sandoz receiving at least a majority of GP's
stock. The transaction had been subject to regulatory approval,
including the approval of the Federal Trade Commission under the
Hart-Scott-Rodino Act, and the Superintendent of Insurance of New York.
Target Business Description
-----------------------------
Manfr baby foods and products
Acquiror Business Description
-----------------------------
Manufacture dyestuffs
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/12/94 3/14/95 Kohlberg Kravis Roberts & Co Borden Inc $2,222.9 $4,622.9 $13.61 170.3 $257.5 $5,498.2 ($114.2) $115.4
Advisor Morgan Stanley Credit Suisse First Boston
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
9/12/94 -- $1,682.7 $4,055.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Kohlberg Kravis Roberts (KKR) merged with Borden (BN) in an amended
stock swap valued at $4.643 bil, including $2.4 bil in the assumption
of liabilities. The value included a 16.5% stake KKR acquired in Borden
through a lockup agreement valued at $309.518 mil. Earlier, KKR had
completed a tender offer to acquire all the shares of BN in exchange
for 2.29146 RJR shares, valued at $13.606, per BN share held, by
accepting 90 mil shares, or about 63.5% of BN's total shares
outstanding. The offer had been conditioned upon a minimum of 41% of
BN's shares being tendered.
Target Business Description
---------------------------
Produce dairy prods, snacks
Acquiror Business Description
-----------------------------
Leverage buyout firm
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 51
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- ------ -------- ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/28/94 1/30/95 Campbell Soup Co Pace Foods $1,115.0 $1,115.0 -- -- $61.0 $230.0 $45.0
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ -------- -------- ------ --------- --------------
<S> <C> <C> <C> <C> <C> <C>
11/28/94 $42.4 $47.0 -- $112.7 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Campbell Soup acquired Pace Foods for $1.115 bil in cash.
Target Business Description
---------------------------
Produce pickled vegetables
Acquiror Business Description
-----------------------------
Produce soups, food products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/9/95 5/12/95 Pillsbury Co (Grand Met PLC) Pet Inc (Pillsbury/Grand Met) $2,636.5 $2,636.5 $26.00 100.4 $362.2 $1,576.3 $112.6
Advisor Morgan Stanley Lazard Freres & Co.
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1/9/95 $216.7 $262.5 $528.1 $1,175.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pillsbury, a unit of Grand Metropolitan (GM), completed its merger with
Pet in a transaction valued at $2.636 bil. Earlier, Pillsbury completed
its tender offer for all the outstanding common shares of Pet for $26
in cash per share, by accepting 95,364,543 shares, or 95% of Pet's
common stock outstanding. The offer had been conditioned upon GM
receiving at least 50% of Pet's shares outstanding, and had been
subject to regulatory approval.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Produce flour, grain mill prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 52
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------ ------------------------------ ------ ------ ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/26/95 3/27/96 Shareholders Earthgrains Co (Anheuser-Busch)$309.8 $309.8 $30.38 10.2 $573.8 $1,664.6 ($25.7) ($31.2)
Advisor -- Dillon, Read
-------
Company Status Priv. Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
7/26/95 -- $56.2 $1,130.1 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Anheuser-Busch (AB) completed the spin off its Earthgrains (EA) unit to
shareholders in a transaction valued at $309.83 mil. Each AB common
shareholder received 1 EA common share for every 25 AB shares held.
EA's shares were valued based on EA's closing stock price of $30.375 on
Mar 27, the first full trading day on a non-when issued basis. Earlier,
EA was known as as Cambell Taggart.
Target Business Description
---------------------------
Baked goods, frozen foods
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/29/96 ConAgra Inc Gilroy Foods Inc $132.0 $132.0 -- -- -- $200.0 -- --
Advisor -- --
- -------
Company Status Public Sub.
- --------------
<S> <C> <C> <C> <C> <C>
3/15/96 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Gilroy Foods, a unit of McCormick, for $132 mil in
cash.
Target Business Description
---------------------------
Produce dried fruits
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 53
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------ --------------------- ------ ------ ------ --------- ------ ------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/30/97 12/23/97 JP Foodservice Inc Rykoff-Sexton Inc $770.6 $1,510 $24.41 28.0 $336.0 $519.9 ($60.2) ($79.5)
Advisor PaineWebber Merrill Lynch & Co.
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
6/30/97 ($73.0) $483.2 $1,217.2 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
JP Foodservice (JP) merged with Rykoff-Sexton (RS) in a
merger-of-equals stock swap transaction valued at an amended $1.436
bil, including the assumption of $740 mil in liabilities. JP offered an
amended .775 common shares per RS share. Originally, JP offered .82
common shares per RS share. Based on JP's closing stock price of $31.5
on June 27, the last full trading day prior to the announcement of
amended terms, each RS share was valued at $24.4125. The transaction
was accounted for as a pooling of interests and had been subject to
regulatory approval.
Target Business Description
---------------------------
Wholesale grocery products
Acquiror Business Description
-----------------------------
Wholesale groceries
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/9/97 3/11/98 Shareholders Campbell Soup-Noncore Bus(7) $1,004 $1,004.8 $22.13 45.4 -- $1,400 -- --
Advisor -- Goldman, Sachs & Co.
-------
Company Status Priv. Sub.
- --------------
<S> <C> <C> <C> <C> <C>
9/9/97 -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Campbell Soup (CS) spun off its 7 noncore businesses including the
Swanson frozen dinner and Vlasic pickle brands into a new company named
Vlasic Foods (VF) to its shareholders in a transaction valued at $1.004
bil. CS shareholders received 1VF common share for every 10 CS shares
held. The shares were valued based on VF's closing stock price of
$22.125 on March 11, the first full trading day on which the shares
were distributed.
Target Business Description
---------------------------
Produce, whl soups, food prods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 54
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------------ ------ ------ ------ --------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/18/97 1/16/98 Chiquita Brands International Stokely USA Inc $10.9 $42.9 $1.00 11.4 $6.1 $178.9
Advisor No Investment Bank Retained Donaldson, Lufkin & Jenrette
-------
Company Status Public Public
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
9/18/97 ($19.4) ($8.9) ($2.9) $74.7 $116.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International (CBI) acquired all the outstanding common
stock of Stokely USA (SU) in exchange for $1 in common stock per share,
or a total value of approximately $43.389 mil, including the assumption
of about $32 mil in liabilities.
Target Business Description
------------------------------
Prod canned fruits, vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/29/97 12/1/97 Suiza Foods Corp Morningstar Group Inc $855.9 $1,035.9 $45.85 15.4 $99.4 $497.6
Advisor Donaldson, Lufkin & Jenrette Goldman, Sachs & Co.
-------
Company Status Public Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
9/29/97 $18.2 $38.9 -- 178.5 $352.3 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Suiza Foods (SF) acquired Morningstar Group (MG) in a stock swap
transaction valued at approximately $971.957 mil, including the
assumption of $180 mil in liabilities. SF offered .85 SF common shares
per MG share. Based on SF's closing stock price of $53.9375 on Sep 26,
the last full trading day prior to the announcement, each MG share was
valued at $45.85. The transaction was accounted for as a pooling of
interests and had been subject to regulatory approval.
Target Business Description
---------------------------
Produce dairy products
Acquiror Business Description
-----------------------------
Produce milk, related prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 55
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/1/97 12/9/97 Chiquita Brands International American Fine Foods Inc $27.0 $29.0 -- -- $25.6 $79.8 $3.6
Advisor -- JP Morgan & Co. Inc.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
10/1/97 -- -- -- $52.0 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International acquired all the outstanding stock of
American Fine Foods for $29 mil. The consideration consisted of $27 mil
in common stock and the assumption of $2 mil in liabilities. The
transaction was subject to regulatory approval.
Target Business Description
---------------------------
Produce canned vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/98 Agrilink Foods (Pro-Fac) Delagra Corp $6.9 $6.9 -- -- -- --
Advisor -- --
-------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C>
-- -- -- 100 Completed
2/18/98 Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative Inc, acquired Delagra Corp (DE). Terms were not
disclosed. Upon completion, DE was to be incorporated to AF's Curtice
Burns Foods subsidiary.
Target Business Description
---------------------------
Produce frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 56
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ------------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/8/98 6/15/98 Agrobios (Desc SA de CV) Authentic Specialty Foods Inc $141.9 $141.9 $17.00 8.0 $40.5 $37.2 ($0.6)
Advisor JP Morgan & Co. Inc. Donaldson, Lufkin & Jenrette
-------
Company Status Sub. Public
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
5/8/98 ($0.4) $0.8 $10.2 $58.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Agrobios (AB), a unit of Desc SA de CV, acquired all the outstanding
common stock of Authentic Specialty Foods Inc (ASF) for $17 in cash per
share, or a total value of $141.876 mil. Earlier, AB completed its
tender offer for ASF by accepting 7.8 million shares, or 89% of ASF's
shares outstanding. The offer had been conditioned upon at least 66.67%
of ASF's shares being tendered on a fully-diluted basis.
Target Business Description
---------------------------
Whl, mnfr Mexican foods
Acquiror Business Description
-----------------------------
Mnfr, whl foods products
<TABLE>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/21/98 Agrilink Foods (Pro-Fac) JA Hopay Distributing Co -- -- -- -- -- $8.0 --
Advisor -- --
- -------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C> <C>
7/21/98 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods, a unit of Pro-Fac Cooperative Inc, acquired JA Hopay
Distributing Co.
Target Business Description
---------------------------
Distribution of snack foods
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 57
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ---------------------------- ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/27/98 9/24/98 Agrilink Foods (Pro-Fac) Dean Foods Co-Vegetable Ops $480.0 $482.0 -- -- -- $620.6 --
Advisor - Merrill Lynch & Co.
-------
Company Status Sub. Sub.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
7/27/98 $42.4 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods (AF), a unit of Pro-Fac Cooperative Inc, acquired the
vegetable operations of Dean Foods Co for an estimated $370 mil in
cash, a $30 mil note and AF's aseptic foods business. Included in the
acquisition were the Birds Eye, Freshlike and VegAll brand names.
Target Business Description
---------------------------
Mnfr frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
*Covers industries with SIC Codes in the 2030s. Source: Securities Data Company,
Inc. (201) 622-3100. As of 1/19/99.
<PAGE> 58
Discounted Cash Flow Analysis
- --------------------------------------------------------------------------------
United Foods - Discounted Cash Flow Analysis
0% Growth Scenario - Per Share Valuation
Capital Expenditures at 100% of Management's Projections
<TABLE>
<CAPTION>
DISCOUNT RATE
COST SAVINGS (000'S)
----------------------------------------
-- $500 $750 $1,000
----------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $ 0.59 $ 1.02 $ 1.24 $ 1.46
8% 6.0x $ 1.83 $ 2.31 $ 2.55 $ 2.79
7.0x $ 3.06 $ 3.59 $ 3.86 $ 4.12
5.0x $ (0.05) $ 0.35 $ 0.55 $ 0.76
10% 6.0x $ 1.08 $ 1.53 $ 1.75 $ 1.97
7.0x $ 2.21 $ 2.70 $ 2.94 $ 3.19
</TABLE>
Capital Expenditures at 75% of Management's Projections
<TABLE>
<CAPTION>
DISCOUNT RATE
COST SAVINGS (000'S)
----------------------------------------
-- $500 $750 $1,000
----------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $ 1.62 $ 2.05 $ 2.27 $ 2.48
8% 6.0x $ 2.85 $ 3.34 $ 3.58 $ 3.82
7.0x $ 4.09 $ 4.62 $ 4.89 $ 5.15
5.0x $ 0.93 $ 1.33 $ 1.53 $ 1.73
10% 6.0x $ 2.05 $ 2.50 $ 2.72 $ 2.95
7.0x $ 3.18 $ 3.67 $ 3.92 $ 4.16
</TABLE>
Capital Expenditures at 50% of Management's Projections
<TABLE>
<CAPTION>
DISCOUNT RATE
COST SAVINGS (000'S)
----------------------------------------
-- $500 $750 $1,000
----------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $ 2.65 $ 3.08 $ 3.29 $ 3.51
8% 6.0x $ 3.88 $ 4.36 $ 4.60 $ 4.84
7.0x $ 5.11 $ 5.65 $ 5.91 $ 6.18
5.0x $ 1.90 $ 2.30 $ 2.50 $ 2.70
10% 6.0x $ 3.03 $ 3.48 $ 3.70 $ 3.92
7.0x $ 4.16 $ 4.65 $ 4.89 $ 5.14
</TABLE>
40
<PAGE> 59
Discounted Cash Flow Analysis
- --------------------------------------------------------------------------------
United Foods - Discounted Cash Flow Analysis
2.5% Growth Scenario - Per Share Valuation
Capital Expenditures at 100% of Management's Projections
<TABLE>
<CAPTION>
DISCOUNT RATE
COST SAVINGS (000'S)
-----------------------------------------
-- $500 $750 $1,000
-----------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $ 1.14 $ 1.58 $ 1.79 $ 2.01
8% 6.0x $ 2.54 $ 3.02 $ 3.26 $ 3.50
7.0x $ 3.94 $ 4.47 $ 4.73 $ 5.00
5.0x $ 0.44 $ 0.84 $ 1.04 $ 1.24
10% 6.0x $ 1.72 $ 2.16 $ 2.39 $ 2.61
7.0x $ 2.99 $ 3.48 $ 3.73 $ 3.97
</TABLE>
Capital Expenditures at 75% of Management's Projections
<TABLE>
<CAPTION>
DISCOUNT RATE
COST SAVINGS (000's)
-----------------------------------------
-- $500 $750 $1,000
-----------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $ 2.17 $ 2.60 $ 2.82 $ 3.03
8% 6.0x $ 3.57 $ 4.05 $ 4.29 $ 4.53
7.0x $ 4.96 $ 5.49 $ 5.76 $ 6.03
5.0x $ 1.42 $ 1.82 $ 2.02 $ 2.22
10% 6.0x $ 2.69 $ 3.14 $ 3.36 $ 3.58
7.0x $ 3.97 $ 4.46 $ 4.70 $ 4.95
</TABLE>
Capital Expenditures at 50% of Management's Projections
<TABLE>
<CAPTION>
DISCOUNT RATE
COST SAVINGS (000'S)
-----------------------------------------
-- $500 $750 $1,000
-----------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $ 3.20 $ 3.63 $ 3.84 $ 4.06
8% 6.0x $ 4.59 $ 5.08 $ 5.32 $ 5.56
7.0x $ 5.99 $ 6.52 $ 6.79 $ 7.05
5.0x $ 2.39 $ 2.79 $ 2.99 $ 3.19
10% 6.0x $ 3.67 $ 4.11 $ 4.34 $ 4.56
7.0x $ 4.94 $ 5.43 $ 5.68 $ 5.92
</TABLE>
41
<PAGE> 60
Discounted Cash Flow Analysis
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
UNITED FOODS, INC.
EBITDA Growth
Historical
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8,965 10,851 11,764 15,698 13,341 12,776 7,142 5,487 251 9,340 19,876 14,835 10,918
21.0% 8.4% 33.4% (15.0%) (4.2%) (44.1%) (23.2%) (95.4%) 3621.1% 112.8% (25.4%) (26.4%)
<CAPTION>
UNITED FOODS, INC.
EBITDA Growth
Historical
1993 1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- ------------------------------------------------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9,018 9,291 13,621 10,276 12,531 12,127 12,349 Avg. 12,336 12,181 12,484
(17.4%) 3.0% 46.6% (24.6%) 21.9% (3.2%) 1.8% CAGR (0.7%) (2.4%) (5.2%)
Smoothed (3-Year)
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10,527 12,771 13,601 13,938 11,086 8,468 4,293 5,026 9,822 14,684 15,210
21.3% 6.5% 2.5% (20.5%) (23.6%) (49.3%) 17.1% 95.4% 49.5% 3.6%
<CAPTION>
Smoothed (3-Year)
1993 1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- ------------------------------------------------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11,590 9,742 10,643 11,063 12,143 11,645 12,336 Avg. 12,041 11,566 11,888
(23.8%) (15.9%) 9.2% 3.9% 9.8% (4.1%) 5.9% CAGR 0.8% 3.8% 2.6%
Depreciation
Historical
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2,832 2,578 2,565 3,391 3,445 3,415 3,354 3,402 4,059 5,352 5,777 6,086 6,249 6,104
(9.0%) (0.5%) 32.2% 1.6% (0.9%) (1.8%) 1.4% 19.3% 31.9% 7.9% 5.3% 2.7% (2.3%)
<CAPTION>
Depreciation
Historical
1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- --------------------------------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6,005 6,637 7,362 7,859 7,285 7,004 Avg. 7,383 7,229 6,637
(1.6%) 10.5% 10.9% 6.8% (7.3%) (3.9%) CAGR (5.6%) 1.4% 2.2%
Smoothed (3-Year)
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2,658 2,845 3,134 3,417 3,405 3,390 3,605 4,271 5,063 5,738 6,037 6,146
7.0% 10.2% 9.0% (0.4%) (0.4%) 6.3% 18.5% 18.5% 13.3% 5.2% 1.8%
<CAPTION>
Smoothed (3-Year)
1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- --------------------------------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6,119 6,249 6,668 7,286 7,502 7,383 Avg. 7,390 7,017 6,419
(0.4%) 2.1% 6.7% 9.3% 3.0% (1.6%) CAGR 0.7% 4.3% 4.3%
Cap Ex
Historical
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1,914 1,686 3,220 16,276 3,982 5,127 5,979 11,455 22,795 5,957 6,794 9,940 2,363
(11.9%) 91.0% 405.5% (75.5%) 28.8% 16.6% 91.6% 99.0% (73.9%) 14.1% 46.3% (76.2%)
<CAPTION>
Cap Ex
Historical
1993 1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- -------------------------------------------------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4,948 9,133 9,874 11,914 533 4,774 14,410 Avg. 6,572 8,301 7,468
109.4% 84.6% 8.1% 20.7% (95.5%) 795.7% 201.8% CAGR 420.0% 9.9% 8.7%
Smoothed (3-Year)
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2,273 7,061 7,826 8,462 5,029 7,520 13,410 13,402 11,849 7,564 6,366
210.6% 10.8% 8.1% (40.6%) 49.5% 78.3% (0.1%) (11.6%) (36.2%) (15.8%)
Smoothed (3-Year)
1993 1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- --------------------------------------------------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5,750 5,481 7,985 10,307 7,440 5,740 6,572 Avg. 6,584 7,609 7,505
(9.7%) (4.7%) 45.7% 29.1% (27.8%) (22.8%) 14.5% CAGR (6.0%) (4.8%) (6.3%)
</TABLE>
42
<PAGE> 61
Discounted Cash Flow Analysis
- --------------------------------------------------------------------------------
UNITED FOODS, INC.
CALCULATION OF WEIGHTED AVERAGE COST OF CAPITAL
<TABLE>
<CAPTION>
(in thousands except per share)
Weighted Average Cost of Capital (WACC) = (Equity % of Capitalization)(Cost of Equity) + (Debt % of Capitalization)(Cost of Debt)
28.6% Equity (13.83%) + 71.4% Debt (5.58%)
---------
7.9%
---------
Cost of Equity Data Used
----------------------------------------------- ---------------------------------------------
<S> <C> <C> <C>
Cost of Equity = R(f) + B (R(m) - R)(f)) Capital Asset Pricing Model (a)
Risk Free Rate = R(f) 10 Year Treasury Yield = 4.49% (b)
Beta of Common Stock = B UFD Beta = 0.7 (c)
Market Risk Premium = (R(m) - R(f)) Common Stock Returns
over Int.-term Gov't Bonds = 8.9% (d)
Cost of Equity = 4.5% + .7*(8.9%) + 3.5% Micro-Cap Stock Premium 3.5%
Cost of Debt = (1-T)*R(i)(e)
-------- -------
Cost of Equity = 13.8% Cost of Debt = 5.6%
-------- -------
Capitalization (f) = $20,430 of Market Equity + $50,909 of Long Term Debt = $71,339
= 28.6% Equity + 71.4% Debt
</TABLE>
(a) The Capital Asset Pricing Model states that the return on an asset or
security is equal to the risk free return (i.e., Treasury Bonds) plus a risk
premium.
(b) 10 Year Treasury as of 9/30/98.
(c) Beta estimate taken from Value Line Investment Survey.
(d) Intermediate horizon risk premium of 8.9%, as calculated by Ibbotson &
Sinquefield, 1996. Includes an additional Micro-Cap Stock Premium of 3.5%.
(e) Interest cost of 9.00%, tax adjusted at 38.0%.
(f) Assumes UFD has a targeted capital structure of 28.6% equity and 71.4%
debt.
43
<PAGE> 62
Discounted Cash Flow Analysis
- --------------------------------------------------------------------------------
UNITED FOODS, INC.
CALCULATION OF WEIGHTED AVERAGE COST OF CAPITAL
<TABLE>
<CAPTION>
(in thousands except per share)
Weighted Average Cost of Capital (WACC) = (Equity % of Capitalization)(Cost of Equity) + (Debt % of Capitalization)(Cost of Debt)
32.1% Equity (19.98%) + 67.9% Debt (5.58%)
---------
10.2%
---------
Cost of Equity Data Used
----------------------------------------------------- ---------------------------------------------
<S> <C> <C> <C>
Cost of Equity = R(f) + B (R(m) - R(f)) Capital Asset Pricing Model (a)
Risk Free Rate = R(f) 10 Year Treasury Yield = 4.49% (b)
Beta of Common Stock = B UFD Beta = 1.3 (c)
Market Risk Premium = (R(m) - R(f)) Common Stock Returns
over Int.-term Gov't Bonds = 8.9% (d)
Cost of Equity = 4.5% + 1.3*(8.9%) + 3.5% Micro-Cap Stock Premium 3.5%
Cost of Debt = (1-T)*R(i)(e)
-------- -------
Cost of Equity = 20.0% Cost of Debt = 5.6%
-------- -------
Capitalization (f) = $20,430 of Market Equity + $43,249 of Long Term Debt = $63,679
= 32.1% Equity + 67.9% Debt
</TABLE>
(a) The Capital Asset Pricing Model states that the return on an asset or
security is equal to the risk free return (i.e., Treasury Bonds) plus a risk
premium.
(b) 10 Year Treasury as of 9/30/98.
(c) Beta estimate taken from Value Line Investment Survey.
(d) Intermediate horizon risk premium of 8.9%, as calculated by Ibbotson &
Sinquefield, 1996. Includes an additional Micro-Cap Stock Premium of 3.5%.
(e) Interest cost of 9.00%, tax adjusted at 38.0%.
(f) Assumes UFD has a targeted capital structure of 32.1% equity and 67.9%
debt.
44
<PAGE> 63
Discounted Cash Flow Analysis
- --------------------------------------------------------------------------------
UNITED FOODS, INC. -- Projection Model (0% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit
Multiple Method
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
1/19/99 12:54 PM 2000 2001 2002 2003 2004
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
EBITDA $ 12,349 $ 12,349 $ 12,349 $ 12,349 $ 12,349
Depreciation and amortization 7,004 7,004 7,004 7,004 7,004
Interest expense 4,299 4,105 3,964 3,887 3,813
--------- --------- --------- --------- --------
Pre-tax income 1,036 1,230 1,371 1,448 1,522
Provision for income taxes 394 467 521 550 578
--------- --------- --------- --------- --------
Net income 642 762 850 898 943
========= ========= ========= ========= ========
Add: Depreciation & amortization 7,004 7,004 7,004 7,004 7,004
Add: After-tax interest expense 2,666 2,545 2,458 2,410 2,364
Less: Net additions to working capital (1) -- -- -- -- --
Less: Capital expenditures (7,004) (7,004) (7,004) (7,004) (7,004)
--------- --------- --------- --------- --------
Operating cash flow $ 3,308 $ 3,308 $ 3,308 $ 3,308 $ 3,308
========= ========= ========= ========= ========
Cash flow growth 0.0% 0.0% 0.0% 0.0%
</TABLE>
<TABLE>
<CAPTION>
EQUITY VALUATION MATRIX(2)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $ 4,039 $ 12,444 $ 20,848 $ 29,253
10.0% (312) 7,355 15,023 22,691
12.0% (4,231) 2,776 9,784 16,791
---------
Average Valuation of Equity $ 11,372
---------
<CAPTION>
PER SHARE EQUITY VALUATION MATRIX(2)(4)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $ 0.59 $ 1.83 $ 3.06 $ 4.30
10.0% $ (0.05) $ 1.08 $ 2.21 $ 3.33
12.0% $ (0.62) $ 0.41 $ 1.44 $ 2.47
--------
Average Per Share Valuation of Equity $ 1.67
--------
</TABLE>
- ------------------------------------------------
<TABLE>
<S> <C>
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $51,190 (4) Based on 6.8 million shares outstanding.
</TABLE>
45
<PAGE> 64
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH)
PROJECTED INCOME STATEMENTS
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) HISTORICAL PROJECTED
5/26/99 3:49 PM 1999 2000 2001 2002 2003 2004
---------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $209,107 $209,107 $209,107 $209,107 $209,107 $209,107
Cost of sales 169,667 169,667 169,667 169,667 169,667 169,667
-------- -------- -------- -------- -------- --------
Gross profit 39,440 39,440 39,440 39,440 39,440 39,440
General and administrative, net dep. 10,387 10,387 10,387 10,387 10,387 10,387
Direct selling expenses 16,704 16,704 16,704 16,704 16,704 16,704
-------- -------- -------- -------- -------- --------
Total operating expenses 27,091 27,091 27,091 27,091 27,091 27,091
EBITDA 12,349 12,349 12,349 12,349 12,349 12,349
Depreciation 7,004 7,004 7,004 7,004 7,004 7,004
-------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,004 7,004 7,004 7,004 7,004 7,004
Total operating income 5,345 5,345 5,345 5,345 5,345 5,345
Interest expense 4,130 4,299 4,105 3,964 3,887 3,813
Interest (income) - - - - - -
Minority interest expense (income) - - - - - -
Other expense 10 10 10 10 10 10
Other (income) (15) - - - - -
-------- -------- -------- -------- -------- --------
Other expenses (income) 4,125 4,309 4,115 3,974 3,897 3,823
Pre-tax income 1,220 1,036 1,230 1,371 1,448 1,522
Provision for income taxes 469 394 467 521 550 578
-------- -------- -------- -------- -------- --------
Net income $ 751 $ 642 $ 762 $ 850 $ 898 $ 943
======== ======== ======== ======== ======== ========
</TABLE>
<PAGE> 65
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH)
PROJECTED BALANCE SHEETS
(Numbers in Thousands)
(Fiscal Year Ended February)
5/26/99 3:49 PM
<TABLE>
<CAPTION>
HISTORICAL PROJECTED
1999 2000 2001 2002 2003 2004
---------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,721 $ 2,025 $ 278 $ 100 $ 100 $ 100
Accounts receivable 19,579 19,579 19,579 19,579 19,579 19,579
Inventory 35,364 35,364 35,364 35,364 35,364 35,364
Prepaid expenses 3,023 3,023 3,023 3,023 3,023 3,023
Deferred income taxes 1,238 1,238 1,238 1,238 1,238 1,238
-------- -------- -------- -------- -------- --------
Total current assets 62,925 61,229 59,482 59,304 59,304 59,304
Land 12,860 12,860 12,860 12,860 12,860 12,860
Gross plant and equip. 127,481 134,485 141,489 148,493 155,497 162,501
Accumulated depreciation (81,079) (88,083) (95,087) (102,091) (109,095) (116,099)
-------- -------- -------- -------- -------- --------
Net P,P&E 59,262 59,262 59,262 59,262 59,262 59,262
Fixed assets held for disposal 804 804 804 804 804 804
Notes & accounts receivable 50 50 50 50 50 50
Deferred charges & other assets 1,027 1,027 1,027 1,027 1,027 1,027
-------- -------- -------- -------- -------- --------
Total assets $124,068 $122,372 $120,625 $120,447 $120,447 $120,447
======== ======== ======== ======== ======== ========
LIABILITIES & EQUITY
Current maturities & short-term debt $ 2,338 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,636 10,636 10,636 10,636 10,636 10,636
Accrued liabilities 7,261 7,261 7,261 7,261 7,261 7,261
Income taxes payable 176 176 176 176 176 176
-------- -------- -------- -------- -------- --------
Total current liabilities 20,411 20,582 28,854 19,528 19,657 43,912
Long term debt
Revolver - - - 9,753 10,310 10,950
Long term debt 54,911 52,573 50,064 39,283 37,828 36,244
Line of credit - - - - - -
-------- -------- -------- -------- -------- --------
Total debt 54,911 52,573 50,064 49,036 48,138 47,194
Less current portion (2,338) (2,509) (10,781) (1,455) (1,584) (25,839)
-------- -------- -------- -------- -------- --------
Total long-term debt 52,573 50,064 39,283 47,581 46,554 21,355
Deferred income taxes 4,585 4,585 4,585 4,585 4,585 4,585
-------- -------- -------- -------- -------- --------
Total liabilities 77,569 75,231 72,722 71,694 70,796 69,852
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,696 36,338 37,100 37,950 38,848 39,792
-------- -------- -------- -------- -------- --------
Total stockholders' equity 46,499 47,141 47,903 48,753 49,651 50,595
-------- -------- -------- -------- -------- --------
Total liabilities & equity $124,068 $122,372 $120,625 $120,447 $120,447 $120,447
======== ======== ======== ======== ======== ========
</TABLE>
<PAGE> 66
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH)
PROJECTED CASH FLOW STATEMENTS
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) PROJECTED
5/26/99 3:32 PM 2000 2001 2002 2003 2004
-------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 642 $ 762 $ 850 $ 898 $ 943
Depreciation 7,004 7,004 7,004 7,004 7,004
-------- -------- ------- ------- -------
Net cash provided by operating activities 7,646 7,766 7,854 7,902 7,947
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,004) (7,004) (7,004) (7,004) (7,004)
-------- -------- ------- ------- -------
Net cash provided by investing activities (7,004) (7,004) (7,004) (7,004) (7,004)
Cash flows from financing activities
Repayment of debt (2,338) (2,509) (10,781) (2,353) (2,527)
Drawdown on revolver - - 9,753 1,455 1,584
-------- -------- ------- ------- -------
Net cash provided by financing activities (2,338) (2,509) (1,028) (898) (943)
-------- -------- ------- ------- -------
Net additions to cash $ (1,696) $ (1,747) $ (178) $ (0) $ -
======== ======== ======= ======= =======
Beginning cash balance 3,721 2,025 278 100 100
Ending cash balance 2,025 278 100 100 100
</TABLE>
<PAGE> 67
Premium Analysis
- --------------------------------------------------------------------------------
United Foods, Inc.
M&A Premium Analysis
<TABLE>
<CAPTION>
BASED ON ADJUSTED AVERAGE PREMIUM (1 WEEK BEFORE ANNOUNCEMENT)
IMPLIED
CLASS DATE PREMIUM PRICE OFFER PRICE
------------------------------------------------------------
<S> <C> <C> <C> <C>
A 9/9/98 36.83% $2.63 $3.60
B 9/9/98 36.83% $2.81 $3.84
Percentage of transactions with premiums below 20% is 30.7%.
<CAPTION>
BASED ON ADJUSTED AVERAGE PREMIUM (4 WEEKS BEFORE ANNOUNCEMENT)
IMPLIED
CLASS DATE PREMIUM PRICE OFFER PRICE
------------------------------------------------------------
<S> <C> <C> <C> <C>
A 8/17/98 43.01% $2.94 $4.20
B 8/17/98 43.01% $3.00 $4.29
Percentage of transactions with premiums below 20% is 20.7%.
</TABLE>
46
<PAGE> 68
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
VALUE OF PRICE PRIOR TO PRIOR TO
DATE DATE TRANSACTION PER ANN. ANN.
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE DATE DATE
- -------- -------- ------------ ------------------------ ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
08/28/96 01/03/96 Recoton Corp International Jensen Inc 109.1 11.00 57.14 49.15
04/30/96 01/08/96 Lockheed Martin Corp Loral Corp 8762.4 38.00 7.42 8.19
04/30/96 01/09/96 CompuWare Corp Technalysis Corp 32.6 14.00 16.67 16.67
07/30/96 01/11/96 National Golf Properties Inc Golf Enterprises Inc 82.9 12.00 45.46 45.46
02/26/96 01/16/96 Multicare Cos Inc Concord Health Group 126.9 7.35 43.42 58.92
04/10/96 01/16/96 Depuy Inc(Corange Ltd) Orthopedic Technology Inc 45.2 10.43 43.89 49.03
04/11/96 01/22/96 Farnell Electronics PLC Premier Industrial Corp 2722.7 32.92 35.75 34.37
05/09/96 01/23/96 Spartech Corp Portage Industries Corp 15.8 6.60 78.98 78.98
07/16/96 01/24/96 First Maryland Bancorp,MD 1st Washington Bancorp Inc 81.9 8.13 51.16 44.44
03/29/96 01/24/96 Cisco Systems Inc TGV Software Inc 92.4 15.57 70.63 73.00
04/08/96 01/29/96 WH Brady Co Varitronic Systems Inc 42.5 17.50 79.49 62.79
03/04/96 01/31/96 IBM Corp Tivoli Systems Inc 709.8 47.50 25.00 41.79
06/19/96 02/05/96 Bay View Capital,San Mateo,CA CTL Credit Inc 65.0 18.00 82.28 69.41
05/01/96 02/12/96 Honeywell Inc Duracraft Corp 286.7 43.50 50.00 68.12
09/18/96 02/13/96 Jacor Communications Inc Citicasters(American Finl Grp) 767.6 29.50 15.69 28.26
07/12/96 02/13/96 Horizon/CMS Healthcare Corp Medical Innovations Inc 30.3 1.85 18.40 5.71
07/01/96 02/13/96 LBO Enterprises S-K-I Ltd 135.3 18.00 44.00 39.81
03/20/96 02/14/96 Unilever NV Helene Curtis Industries Inc 737.4 70.00 30.23 71.78
05/14/96 02/15/96 Genstar Capital Partners II LP Andros Inc 92.6 18.00 24.14 35.85
04/29/96 02/15/96 NationsBank Corp,Charlotte,NC LDI Corp 28.1 4.10 21.48 49.09
05/30/96 02/16/96 Tosco Corp Circle K Corp 983.0 30.81 42.47 68.82
06/13/96 02/16/96 Marriott International Inc Forum Group Inc 622.3 13.00 8.33 44.44
07/01/96 02/23/96 Silicon Graphics Inc Cray Research Inc 770.0 30.00 21.21 20.60
09/16/96 02/26/96 Maxxim Medical Inc Sterile Concepts Inc 140.2 20.00 60.00 55.34
06/18/96 02/26/96 HS Resources Inc Tide West Oil Co 201.3 15.91 44.64 51.52
07/10/96 02/29/96 TBC Corp Big O Tires Inc 56.6 16.50 7.32 12.82
04/08/96 03/04/96 Lilly Industries Inc Guardsman Products Inc 227.8 23.00 32.37 57.27
09/27/96 03/13/96 Keystone Consolidated Inds Inc DeSoto Inc 36.1 7.65 53.00 80.00
10/31/96 03/20/96 Mercantile Bancorp,St Louis,MO Todays Bancorp Inc 88.8 31.81 23.53 31.18
10/04/96 03/26/96 Camco Financial,Cambridge,OH First Ashland Financial Corp 29.0 20.58 28.61 34.93
08/01/96 03/28/96 Koninklijke Ahold NV Stop & Shop Cos 2870.8 33.50 27.01 45.65
07/02/96 03/29/96 Motor Wheel Corp Hayes Wheels International Inc 563.8 32.00 33.33 43.02
</TABLE>
<PAGE> 69
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
VALUE OF PRICE PRIOR TO PRIOR TO
DATE DATE TRANSACTION PER ANN. ANN.
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE DATE DATE
- -------- -------- ------------ ------------------------ ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
10/21/96 03/29/96 ISB Financial,New Iberia,LA Jefferson Bancorp,Gretna,LA 52.0 23.00 16.46 18.71
08/07/96 03/29/96 Abbott Laboratories MediSense Inc 821.6 45.00 48.76 39.00
07/19/96 04/01/96 Aetna Life & Casualty Co US Healthcare Inc 8939.0 57.00 21.28 18.75
10/15/96 04/10/96 Toronto-Dominion Bank Waterhouse Investor Services 526.0 38.00 19.69 65.22
06/04/96 04/22/96 El Paso Field Svcs(El Paso) Cornerstone Natural Gas Co 96.6 6.00 29.73 100.00
07/18/96 04/22/96 Reynolds & Reynolds Co Duplex Products Inc 90.1 12.00 28.86 36.17
09/30/96 04/22/96 Pinnacle Banc Grp,Oak Brook,IL Financial Security,Chicago,IL 42.6 28.50 15.15 10.15
07/10/96 04/22/96 Cisco Systems Inc StrataCom Inc 4833.5 57.50 59.72 79.69
06/03/96 04/22/96 K-III Communications Corp Westcott Communications Inc 438.9 21.50 57.80 56.36
10/21/96 04/23/96 Security Banc Corp,OH Third Financial Corp,Piqua,OH 43.9 33.41 13.74 14.22
10/01/96 04/25/96 Investor Group Sterling Chemicals Inc 798.4 12.00 47.69 47.69
10/14/96 04/29/96 Fidelity Financial of Ohio Inc Circle Finl,Sharonville,Ohio 27.8 38.00 38.18 43.40
09/03/96 04/29/96 Hubco Inc,Mahwah,New Jersey Hometown Bancorporation Inc,CT 31.9 17.75 29.09 29.09
03/27/97 04/29/96 Provident Cos Paul Revere Corp(Textron Inc) 1171.1 26.00 5.58 8.90
08/14/96 05/07/96 Tiger Real Estate Fund LP Kahler Realty Corp 222.7 17.00 13.33 9.68
10/01/96 05/10/96 HF Bancorp Inc,Hemet,CA Palm Springs Savings Bank, CA 17.3 14.38 43.75 43.75
08/30/96 05/13/96 Getinge Industrier AB MDT Corp 70.3 5.50 22.22 4.76
11/15/96 05/16/96 Metrocall Inc A+ Network Inc 345.1 21.10 40.67 63.88
07/23/96 05/20/96 General Electric Capital Svcs AmeriData Technologies Inc 454.8 16.00 25.49 47.13
08/29/96 05/20/96 Finova Group Inc Financing for Science Intl Inc 39.2 6.40 6.67 12.53
09/30/96 05/23/96 Luther Burbank Savings,CA NHS Financial,San Rafael,CA 29.6 11.50 17.95 21.05
09/04/96 05/24/96 Joint Energy Dvlp Investments Clinton Gas Systems Inc 38.4 6.75 14.89 31.71
07/02/96 05/24/96 Lear Corp Masland Corp 413.5 26.00 18.18 30.00
01/28/97 05/29/96 Regions Finl,Birmingham,AL Florida First Bancorp Inc,FL 40.9 11.65 19.49 33.14
10/01/96 06/06/96 Investor Group AT&T Capital Corp(AT&T Corp) 2128.6 45.00 38.46 42.29
12/09/96 06/06/96 Greater Bay Bancorp Cupertino National Bancorp,CA 27.7 13.79 20.83 23.03
08/23/96 06/10/96 Vemco Acquisition Corp Bailey Corp 47.8 8.75 6.06 11.11
07/22/96 06/10/96 Merck-Medco Managed Care Inc SysteMed Inc 64.8 3.00 4.35 9.09
07/23/96 06/11/96 Forstmann Little & Co Community Health Systems Inc 1080.0 52.00 19.89 18.86
11/07/96 06/13/96 Citizens Financial Group,RI Farmers & Mechanics Bank,CT 52.9 32.00 62.03 62.03
11/14/96 06/14/96 Western Ohio Financial Corp Seven Hills Financial 11.0 19.70 19.38 19.38
09/16/96 06/20/96 Public Storage Inc Public Storage Properties X 50.2 20.92 13.08 10.83
</TABLE>
<PAGE> 70
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
VALUE OF PRICE PRIOR TO PRIOR TO
DATE DATE TRANSACTION PER ANN. ANN.
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE DATE DATE
- -------- -------- ------------ ------------------------ ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
09/16/96 06/20/96 Public Storage Inc Public Storage Properties XII 55.2 22.34 14.56 15.30
08/23/96 06/21/96 United Communications Group Computer Petroleum Corp 12.0 3.85 46.67 71.11
12/05/96 06/24/96 Renaissance Cosmetics Inc MEM Co Inc 38.2 7.50 81.82 90.48
11/01/96 06/24/96 First Banks America Inc Sunrise Bancorp,Roseville,CA 18.7 4.00 52.38 45.46
02/21/97 06/27/96 Northwest Svgs Bk,Warren,PA Bridgeville Savings Bank 18.3 16.00 10.35 8.48
10/02/96 06/28/96 General Re Corp National Re Corp 904.6 53.00 65.63 60.61
09/27/96 06/28/96 Investor Group Salem Corp 46.6 25.00 23.46 11.73
09/25/96 07/01/96 Rockwell International Corp Brooktree Corp 261.8 15.00 64.38 16.51
03/25/97 07/01/96 Tribune Co Renaissance Commun Corp 1094.4 36.00 19.01 20.50
08/08/96 07/02/96 Beacon Group Energy Investment Ambar Inc 66.6 18.00 17.07 50.00
10/10/96 07/12/96 Astor Chemicals ADCO Technologies Inc 53.8 10.25 51.85 57.69
03/01/97 07/15/96 FBOP Corp,Oak Park,Illinois SDNB Finl Corp, San Diego,CA 25.8 8.00 16.36 18.52
08/27/97 07/19/96 Huntsman Corp Rexene Corp 606.8 16.00 60.00 56.10
10/25/96 07/22/96 Cisco Systems Inc Telebit Corp 196.3 13.35 22.76 4.71
02/19/97 07/23/96 Capstar Broadcasting Partners Osborn Communications Corp 89.9 15.38 50.00 38.20
01/03/97 07/29/96 First Nationwide Bank,CA Cal Fed Bancorp,Los Angeles,CA 1287.8 23.50 32.39 31.47
11/29/96 08/02/96 General Electric Capital Corp First Colony Corp 1799.2 36.15 32.66 39.04
04/07/97 08/05/96 American Radio Systems Corp EZ Communications Inc 687.3 47.30 56.36 89.20
02/14/97 08/05/96 PacifiCare Health Systems Inc FHP International Corp 2000.1 33.27 27.37 19.10
10/03/96 08/07/96 Magna International Inc Douglas & Lomason Co 134.6 31.00 90.77 103.28
08/06/97 08/09/96 Houston Industries Inc NorAm Energy Corp 3648.8 16.12 46.52 41.69
11/25/96 08/14/96 Muenchener Rueckversicherungs American Re Corp 3967.8 65.00 41.69 44.04
11/07/96 08/14/96 OSI Holdings Corp Payco American Corp 161.9 14.00 17.90 60.00
09/26/96 08/15/96 Sears Roebuck & Co Orchard Supply Hardware Stores 423.7 35.00 25.56 28.44
09/20/96 08/19/96 Commonwealth Aluminum Corp CasTech Aluminum Group Inc 328.7 20.50 57.69 45.13
12/17/96 08/26/96 Conseco Inc American Travellers Corp 868.3 36.91 37.35 81.17
03/04/97 08/26/96 Conseco Inc Capitol American Financial 715.5 37.71 51.60 56.31
01/09/97 08/26/96 Columbus McKinnon Corp Spreckels Industries Inc 259.4 24.00 24.68 29.73
11/08/96 08/28/96 Doubletree Corp Red Lions Hotels(Red Lion Inn) 1174.1 30.38 33.55 31.38
11/14/96 08/29/96 Cypress Group LLC Amtrol Inc 227.2 28.25 56.94 56.94
01/06/97 08/30/96 NationsBank Corp,Charlotte,NC Boatmen's Bancshares,St Louis 9667.1 60.27 48.36 48.36
03/06/97 09/02/96 Potash Corp of Saskatchewan Arcadian Corp 1723.3 25.71 20.99 26.96
</TABLE>
<PAGE> 71
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
VALUE OF PRICE PRIOR TO PRIOR TO
DATE DATE TRANSACTION PER ANN. ANN.
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE DATE DATE
- -------- -------- ------------ ------------------------ ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
12/23/96 09/09/96 Revco DS Inc Big B Inc(Revco DS Inc) 335.4 17.25 66.27 58.62
01/03/97 09/10/96 Louisiana-Pacific Corp GreenStone Industries Inc 29.2 5.25 52.73 58.49
03/04/97 09/11/96 American Eco Corp Chempower Inc 50.0 6.20 48.06 45.88
06/30/97 09/12/96 Temple-Inland Financial Svcs California Financial Hldg,CA 146.5 30.00 31.87 31.15
03/31/97 09/16/96 Mutual Savings Bk,Milwaukee,WI First Fed Bancshares of Eau Cl 132.7 18.85 25.67 25.67
12/06/96 09/16/96 Schnitzer Steel Industries Inc Proler International Corp 42.5 9.00 125.00 148.28
04/03/97 09/16/96 PennFirst Bancorp,Ellwood,PA Troy Hill Bancorp,Pennsylvania 22.4 21.15 55.23 52.43
01/27/97 09/16/96 City National Bk,Beverly Hills Ventura County Natl Bancorp,CA 46.7 5.03 43.71 38.76
02/28/97 09/26/96 AH Belo Corp Providence Journal Co 1429.6 32.27 64.43 65.49
06/27/97 09/30/96 Texas Pacific Group Inc Belden & Blake Corp 405.7 27.00 27.81 31.71
02/28/97 09/30/96 Cullen/Frost Bankers Inc,Texas Corpus Christi Bancshares,TX 32.4 18.84 17.75 17.75
04/25/97 10/01/96 Prestige Fragrance & Cosmetics Cosmetic Center Inc 32.8 7.63 45.33 103.47
12/02/96 10/07/96 Computer Associates Intl Inc Cheyenne Software Inc 1247.6 30.50 34.81 30.48
11/22/96 10/08/96 Nash Finch Co Super Food Services Inc 164.2 15.50 36.26 29.17
06/03/97 10/15/96 Investor Group Conrail Inc 10435.9 115.00 60.28 60.28
12/23/96 10/15/96 Berkshire Hathaway Inc FlightSafety International 1518.1 50.00 10.80 10.80
01/27/97 10/16/96 City National Bk,Beverly Hills Riverside Natl Bk,Riverside,CA 42.8 18.00 2.86 29.73
02/27/97 10/17/96 Investor Group Triad Systems Corp 193.1 9.25 60.87 89.74
03/31/97 10/21/96 Investor Group Detroit & Canada Tunnel Corp 36.5 54.00 74.19 54.29
04/16/97 10/23/96 Thomas H Lee Equity Fund III Syratech Corp 304.4 32.00 28.00 29.29
07/01/97 10/31/96 Patriot American Hospitality California Jockey Club/Bay 199.7 33.00 88.57 103.08
12/18/96 10/31/96 Food Lion Inc Kash N' Karry Food Stores Inc 347.1 26.00 33.33 6.67
02/27/97 11/04/96 JC Penney Co Eckerd Corp 3298.5 35.00 28.44 29.63
03/05/97 11/04/96 Citizens Bank of Massachusetts Grove Banks,Chesnut Hill,MA 78.7 51.00 46.76 50.00
05/19/97 11/04/96 Glendale Fed Bk,Glendale,CA TransWorld Bancorp,California 63.2 18.25 12.31 30.36
03/14/97 11/05/96 Harbour Group Ltd Panatech Research&Development 29.2 7.00 55.56 51.35
06/13/97 11/07/96 Shoreline Financial Corp,MI SJS Bancorp Inc,St Joseph,MI 26.5 27.00 13.68 24.14
06/12/97 11/12/96 Investor Group Leslie's Poolmart 112.8 14.50 31.82 31.82
12/17/96 11/13/96 IBM Corp Edmark Corp 123.8 15.50 63.16 31.92
01/20/97 11/13/96 FCY Inc Medex Inc 150.6 23.50 57.98 66.74
06/27/97 11/14/96 Vermont Financial Services,VT Eastern Bancorp,Williston,VT 91.9 24.23 4.22 16.77
01/15/97 11/15/96 Mountasia Entertainment Mountasia Entertainment 98.2 3.50 12.00 40.00
</TABLE>
<PAGE> 72
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
VALUE OF PRICE PRIOR TO PRIOR TO
DATE DATE TRANSACTION PER ANN. ANN.
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE DATE DATE
- -------- -------- ------------ ------------------------ ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
01/02/97 11/18/96 Intermet Corp Sudbury Inc 155.4 12.50 25.00 9.89
05/01/97 11/22/96 ABN-AMRO Holding NV Standard Fed Bancorp,Troy,MI 1971.1 59.00 6.79 15.40
02/28/97 11/25/96 PCA International Inc American Studios Inc 66.3 2.50 110.53 166.67
01/09/97 11/25/96 Applied Materials Inc Opal Inc 189.6 18.50 64.44 105.56
12/30/96 11/26/96 Clorox Co Armor All Products(McKesson) 410.1 19.09 13.97 13.97
01/16/97 11/27/96 Bell Industries Inc Milgray Electronics Inc 100.0 14.77 16.99 20.57
04/30/97 11/29/96 CityFront Center LLC Chicago Dock and Canal Trust 177.9 25.00 22.70 22.70
01/06/97 11/29/96 Tyco International Ltd ElectroStar Inc 111.0 14.00 27.27 16.67
01/30/97 12/02/96 Venator Group Inc Eastbay Inc 146.0 24.00 28.00 23.08
05/01/97 12/03/96 Dime Bancorp Inc,New York,NY BFS Bankorp Inc,New York,NY 91.5 52.00 16.85 22.35
02/26/97 12/05/96 ServiceMaster LP Barefoot Inc 230.9 16.00 28.00 42.22
04/11/97 12/05/96 Public Storage Inc Public Storage Properties XIV 82.4 26.00 30.82 31.65
04/11/97 12/05/96 Public Storage Inc Public Storage Properties XV 79.1 26.00 28.40 32.48
01/10/97 12/05/96 Hadco Corp Zycon Corp 211.7 18.00 46.94 94.60
02/21/97 12/11/96 Aon Corp Alexander & Alexander Services 1227.4 17.50 8.53 9.38
01/27/97 12/16/96 Zurn Industries Inc Eljer Industries Inc 175.6 24.00 84.62 90.10
01/27/97 12/16/96 Millipore Corp Tylan General Inc 147.7 16.00 26.73 26.73
03/25/97 12/19/96 NIPSCO Industries Inc IWC Resources Corp 290.6 32.00 39.13 45.46
07/01/97 12/23/96 Mercantile Bancorp,St Louis,MO Roosevelt Finl Group,Missouri 1187.1 24.43 32.05 26.09
04/16/97 12/24/96 American General Corp Home Beneficial Corp 665.1 39.00 39.29 50.00
06/09/97 12/26/96 Commerce Security Bancorp,CA Eldorado Bancorp,Tustin,CA 91.7 23.00 14.29 12.88
05/01/97 12/27/96 US Bancorp,Portland,Oregon Business & Professional Bk,CA 33.5 18.00 20.00 30.91
02/25/97 01/07/97 MedTrans Inc(Laidlaw Inc) American Medical Response Inc 1011.1 40.00 23.08 36.75
02/10/97 01/07/97 DLB Oil & Gas Inc Bonray Drilling Corp 12.7 30.00 11.11 30.44
04/24/97 01/17/97 AMF Bowling Centers(AMF Group) American Recreation Centers 70.7 8.50 33.33 70.00
07/08/97 01/21/97 First Maryland Bancorp,MD Dauphin Deposit Corp,PA 1343.4 46.93 43.28 48.97
03/05/97 01/22/97 Western Atlas Inc Norand Corp 320.8 33.50 87.41 94.20
07/02/97 01/24/97 American Standard Inc INCSTAR Corp(Sorin Biomedical) 106.3 6.32 53.21 68.53
07/24/97 01/27/97 EndoSonics Corp Cardiometrics Inc 56.8 7.54 13.81 47.12
03/07/97 01/27/97 Honeywell Inc Measurex Corp 597.0 35.00 42.13 45.83
03/10/97 02/03/97 Scotsman Industries Inc Kysor Industrial Corp 359.2 43.00 17.01 24.64
03/31/97 02/10/97 Vencor Inc TheraTx Inc 378.2 17.10 35.45 59.07
</TABLE>
<PAGE> 73
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
VALUE OF PRICE PRIOR TO PRIOR TO
DATE DATE TRANSACTION PER ANN. ANN.
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE DATE DATE
- -------- -------- ------------ ------------------------ ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
03/24/97 02/11/97 Johnson & Johnson Innotech Inc 135.6 13.75 64.18 54.93
09/17/97 02/14/97 Greenwich Air Services Inc UNC Inc 442.7 15.00 41.18 36.36
06/27/97 02/18/97 NGC Corp Destec Energy Inc 1222.4 21.65 80.42 63.40
08/06/97 02/19/97 United Bankshares Inc,WV First Patriot Bankshares,VA 35.4 17.00 9.68 4.62
07/07/97 02/25/97 Pacific Century Financial Corp CU Bancorp,Encino,California 178.4 15.34 18.00 25.22
07/21/97 02/26/97 MassBank Corp,Reading,MA Glendale Co-Operative Bank,MA 6.9 28.00 33.33 40.00
08/01/97 02/28/97 CIGNA Corp Healthsource Inc 1652.7 21.75 32.82 64.15
06/27/97 03/04/97 Ultimate Electronics Inc Audio King Corp 6.0 2.10 68.00 68.00
08/13/97 03/06/97 Fireman's Fund Insurance Co Crop Growers Corp 82.1 10.25 15.49 41.38
09/02/97 03/10/97 General Electric Co Greenwich Air Services Inc 519.2 31.00 33.33 34.78
04/15/97 03/11/97 PacifiCorp Holdings Inc TPC Corp 408.5 13.41 65.05 55.48
10/01/97 03/14/97 Marshall & Ilsley,Milwaukee,WI Security Capital,Milwaukee,WI 1115.8 111.06 32.61 39.92
09/04/97 03/17/97 TCF Finl Corp,Minneapolis,MN Standard Financial,Chicago,IL 428.0 25.81 28.25 24.76
06/17/97 03/20/97 InvestCorp Falcon Building Products Inc 584.5 17.75 49.47 52.69
06/12/97 03/21/97 Olicom A/S CrossComm Corp 84.6 8.93 70.17 70.17
04/28/97 03/24/97 Elsevier Science MDL Information Systems 310.7 32.00 43.82 54.22
05/07/97 03/25/97 IBP Inc (Occidental Petroleum) Foodbrands America Inc 657.5 23.40 50.97 61.38
09/03/97 03/26/97 Hearst Broadcasting Group Argyle Television Inc 322.2 26.50 16.48 14.60
08/01/97 03/26/97 Deposit Guaranty,Jackson,MS CitiSave Finl,Baton Rouge,LA 20.3 20.50 50.46 46.43
10/01/97 03/31/97 Astoria Finl,Lake Success,NY Greater NY Svgs Bk,New York,NY 318.1 25.16 56.01 62.30
06/03/97 03/31/97 Moore Corp Ltd Peak Technologies Group Inc 169.8 18.00 97.26 65.52
08/28/97 04/08/97 Citizens Financial Group,RI BNH Bancshares,New Haven,CT 58.0 15.50 26.53 19.23
06/12/97 04/08/97 Jacor Communications Inc Premiere Radio Networks Inc 208.9 18.78 19.23 19.23
06/24/97 04/09/97 Public Storage Inc Public Storage Properties XVI 84.2 20.01 5.32 2.62
06/24/97 04/09/97 Public Storage Inc Public Storage Ppties XVIII 78.6 19.55 7.12 2.90
06/24/97 04/09/97 Public Storage Inc Public Storage Properties XIX 67.9 16.52 3.25 3.25
05/13/97 04/09/97 Tomkins PLC Stant Corp 574.0 21.50 48.28 49.57
07/21/97 04/09/97 Procter & Gamble Co Tambrands Inc 2003.9 50.00 14.94 14.94
06/13/97 04/10/97 Hedstrom Corp(Hedstrom Hldgs) ERO Inc 203.6 11.25 16.88 30.44
06/26/97 04/10/97 Compaq Computer Corp Microcom Inc 267.6 16.25 91.18 35.42
11/12/97 04/14/97 Neptune Orient Lines Ltd APL Ltd 878.5 33.50 65.43 42.55
01/05/98 04/14/97 Patriot Amer Hosp/Wyndham Intl Wyndham Hotel Corp 773.1 30.53 44.52 48.93
</TABLE>
<PAGE> 74
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
VALUE OF PRICE PRIOR TO PRIOR TO
DATE DATE TRANSACTION PER ANN. ANN.
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE DATE DATE
- -------- -------- ------------ ------------------------ ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
06/30/97 04/15/97 Lernout & Hauspie Speech Kurzweil Applied Intelligence 51.3 5.52 69.69 66.49
07/10/97 04/18/97 Investor Group LIVE Entertainment Inc 53.1 6.00 6.67 50.00
05/28/97 04/21/97 ITT Industries Inc Goulds Pumps Inc 922.1 37.00 57.45 60.87
06/10/97 04/21/97 Harcourt General Inc National Education Corp 776.1 21.00 54.13 40.00
09/04/97 04/22/97 Fox Kids Worldwide Inc International Family Ent Inc 1862.9 35.00 95.80 107.41
12/12/97 04/25/97 Peoples Bancorp,Marietta,OH Gateway Bancorp,KY 20.6 18.75 15.39 25.00
10/01/97 05/01/97 Area Bancshares Corp,Kentucky Cardinal Bancshares,Kentucky 96.0 60.26 33.91 31.00
08/01/97 05/01/97 Chart Industries Inc Cryenco Sciences Inc 19.2 2.75 76.00 72.55
07/30/97 05/01/97 Choucroute Partners David White Inc 5.9 12.00 14.29 18.52
08/19/97 05/05/97 Giant Eagle Inc Riser Foods Inc 468.5 42.00 29.23 26.79
06/13/97 05/05/97 Incentive AB Vivra Inc 1660.5 35.62 41.77 35.70
08/15/97 05/06/97 GTE Corp BBN Corp 713.8 29.00 32.57 64.54
01/05/98 05/06/97 Foundation Health Systems Inc Physicians Health Services Inc 268.2 28.25 26.97 51.68
07/25/97 05/06/97 Riddell Sports Inc Varsity Spirit 91.0 18.90 28.14 23.93
06/03/98 05/07/97 Unitrin Inc Reliable Life Insurance Co 261.1 120.13 51.11 52.06
09/10/97 05/08/97 Nicolet Biomedical Inc Imex Medical Systems Inc 9.3 1.35 2.76 2.76
11/04/97 05/08/97 Apollo Management LP Living Centers of America Inc 1048.2 40.50 22.73 41.49
10/16/97 05/12/97 CTS Corp Dynamics Corp of America 244.6 64.08 94.17 112.70
08/14/97 05/21/97 Oxford Automotive Inc Howell Industries Inc 23.0 37.00 30.40 32.14
10/06/97 05/23/97 Price Communications Corp Palmer Wireless Inc 870.4 17.50 55.56 64.71
08/08/97 05/27/97 Columbia Natural Resources Inc Alamco Inc 102.8 15.75 11.50 16.67
07/03/97 05/28/97 Owens Corning Fibreboard Corp 631.2 55.00 22.22 49.66
07/09/97 05/30/97 Whitehall Street Real Estate Integrated Living Communities 79.7 11.50 21.05 50.82
10/16/97 05/30/97 Colonnade Capital LLC National Picture and Frame Co 60.3 12.00 28.00 28.00
09/08/97 06/03/97 Humana Inc Physician Corp of America 405.1 7.00 12.00 23.08
07/14/97 06/05/97 Intermedia Communications Inc DIGEX Inc 171.6 13.00 35.95 31.65
10/14/97 06/06/97 Excel Communications Inc Telco Communications Group Inc 1046.5 29.24 23.77 26.44
10/01/97 06/09/97 SAFECO Corp American States Financial Corp 3127.1 47.00 48.62 57.32
07/15/97 06/09/97 Atlas Copco North America Inc Prime Service Inc 1112.0 32.00 29.95 31.28
10/01/97 06/12/97 Thyssen AG Giddings & Lewis Inc 703.0 21.00 9.80 0.60
08/29/97 06/16/97 United Dominion Industries Ltd Core Industries Inc 275.2 25.00 37.93 49.25
09/30/97 06/16/97 Investor Group Frederick's of Hollywood, Inc. 69.4 7.75 44.47 25.95
</TABLE>
<PAGE> 75
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
VALUE OF PRICE PRIOR TO PRIOR TO
DATE DATE TRANSACTION PER ANN. ANN.
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE DATE DATE
- -------- -------- ------------ ------------------------ ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
10/10/97 06/16/97 Genesis Eldercare Multicare Cos Inc 1249.1 28.00 13.71 34.94
07/24/97 06/17/97 Monterey Resources Inc McFarland Energy Inc 111.2 18.55 41.33 44.78
07/25/97 06/17/97 CCL Industries Inc Seda Specialty Packaging Corp 182.6 29.00 36.47 52.63
08/15/97 06/19/97 Gateway 2000 Inc Advanced Logic Research Inc 206.8 15.50 30.53 34.78
11/13/97 06/23/97 Crestar Finl Corp,Richmond,VA American National Bancorp,MD 75.2 20.32 33.21 36.57
10/17/97 06/23/97 General Motors Acceptance(GM) Integon Corp 517.1 26.00 92.59 74.79
10/14/97 06/24/97 Louis Dreyfus Natural Gas American Exploration Co 275.5 15.96 15.03 21.60
07/25/97 06/24/97 JW Childs Equity Partners LP Jillians Entertainment Corp 4.7 0.50 77.78 45.46
09/29/97 06/24/97 Three Rivers Holding Corp SMT Health Services Inc 75.6 11.75 2.17 8.05
10/09/97 06/30/97 Eaton Corp Fusion Systems Corp 308.6 39.00 9.86 24.30
12/18/97 07/01/97 HMN Financial,Spring Valley,MN Marshalltown Financial Corp,IA 25.9 17.51 12.97 16.73
09/23/97 07/02/97 Bunzl PLC American Filtrona Corp 183.5 46.52 2.24 3.38
10/28/97 07/02/97 Summa Industries Inc Calnetics Corp 23.4 7.35 33.64 25.11
09/26/97 07/03/97 Port Royal Holdings Inc Krystal Co 145.4 14.50 169.77 176.19
08/06/97 07/03/97 Raab Karcher AG(VEBA AG) Wyle Electronics 633.0 50.00 38.41 35.14
10/24/97 07/08/97 ING Groep NV Equitable of Iowa Cos 2626.4 68.00 20.35 21.70
09/23/97 07/09/97 CDSI Holding Corp Control Data Systems Inc 273.9 20.25 30.65 35.00
10/28/97 07/14/97 Investor Group Katz Media Group 371.9 11.00 69.23 93.41
09/04/97 07/15/97 Nortek Inc Ply-Gem Industries Inc 476.3 19.50 16.42 19.08
09/29/97 07/17/97 Lucent Technologies Inc Octel Communications Corp 1824.8 31.00 37.40 41.31
12/02/97 07/23/97 Benihana Inc Rudy's Restaurant Group 18.8 5.00 70.21 72.04
09/15/97 07/24/97 Mallinckrodt Inc Nellcor Puritan-Bennett 1858.4 28.50 43.40 57.24
02/02/98 07/28/97 Intel Corp Chips and Technologies Inc 422.9 17.50 32.08 68.68
10/08/97 07/28/97 Sun Healthcare Group Inc Regency Health Services Inc 587.9 22.00 50.43 43.09
09/24/97 07/31/97 American Industrial Partners Bucyrus International Inc 193.3 18.00 46.94 71.43
01/27/98 07/31/97 Western Bancorp,California Santa Monica Bank 198.2 28.00 17.59 28.74
09/26/97 08/01/97 Integrated Health Services Inc Community Care of America Inc 94.0 4.00 18.52 88.24
12/02/97 08/07/97 SPS Technologies Inc Magnetic Technologies Corp 16.8 5.00 25.00 33.33
12/22/97 08/08/97 USF&G Corp Titan Holdings Inc 278.1 22.47 19.06 24.85
12/19/97 08/11/97 Confetti Acquisition Inc Amscan Holdings Inc 334.9 16.50 37.50 46.67
09/17/97 08/12/97 Steris Corp Isomedix Inc 139.8 20.50 15.49 13.89
03/03/98 08/12/97 Hicks Muse Tate & Furst Inc LIN Television Corp 1960.6 55.00 18.75 18.01
</TABLE>
<PAGE> 76
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
VALUE OF PRICE PRIOR TO PRIOR TO
DATE DATE TRANSACTION PER ANN. ANN.
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE DATE DATE
- -------- -------- ------------ ------------------------ ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
09/24/97 08/14/97 MedPartners Inc Talbert Medical Management 189.0 63.00 18.87 36.96
12/29/97 08/14/97 Madison Dearborn Partners Tuesday Morning Corp 298.6 25.00 25.79 11.11
12/05/97 08/14/97 Comforce Corp Uniforce Services Inc 140.7 32.24 37.56 52.62
10/21/97 08/25/97 Household International Inc ACC Consumer Finance Corp 186.9 21.39 34.75 29.64
10/03/97 08/25/97 Cambrex Corp BioWhittaker Inc 130.5 11.63 38.87 47.68
12/22/97 08/26/97 Imperial Holly Corp Savannah Foods & Industries 582.9 20.25 14.89 17.39
02/25/98 08/28/97 Wellsford Real Properties Inc Value Property Trust 186.6 16.17 20.90 18.68
10/10/97 08/28/97 Applied Power Inc Versa Technologies Inc 141.9 24.63 33.11 31.33
01/09/98 09/04/97 Tyson Foods Inc Hudson Foods Inc 648.4 21.23 31.63 28.64
11/26/97 09/05/97 Misys PLC Medic Computer Systems Inc 915.8 35.00 12.00 25.00
12/22/97 09/11/97 Pillowtex Corp Fieldcrest Cannon Inc 768.2 34.00 8.58 31.72
12/09/97 09/12/97 Tivoli Systems Inc(IBM Corp) Unison Software Inc 183.0 15.00 25.00 22.45
02/06/98 09/15/97 Star Banc Corp,Cincinnati,OH Great Financial Corp,Kentucky 663.5 44.00 23.51 33.84
01/16/98 09/19/97 Marshall Industries Sterling Electronics Corp 217.6 21.00 30.23 57.01
12/05/97 09/22/97 Conseco Inc Washington National Corp 424.0 33.25 4.11 12.24
01/22/98 09/23/97 Investor Group El Chico Restaurants Inc 49.2 12.75 75.86 104.00
01/12/98 09/23/97 Shell Oil(Royal Dutch Petro) Tejas Gas Corp 2165.6 61.50 22.39 33.70
11/24/97 09/24/97 Ligand Pharmaceuticals Inc Allergan Ligand Retinoid 71.4 21.97 11.59 7.83
02/19/98 09/25/97 Carpenter Technology Corp Talley Industries Inc 309.4 12.00 10.98 34.27
12/22/97 09/29/97 Wallace Computer Services Inc Graphic Industries Inc 424.5 21.75 19.18 34.88
11/26/97 09/30/97 AHC Acquisition Corp Arbor Health Care Co 424.2 45.00 19.60 26.76
12/05/97 10/01/97 Land O' Lakes Inc Alpine Lace Brands Inc 48.4 9.13 48.98 46.00
12/23/97 10/09/97 Borden Chemical Inc(Borden) Melamine Chemicals Inc 119.7 20.50 72.63 70.83
11/19/97 10/10/97 Kennametal Inc Greenfield Industries Inc 957.0 38.00 26.67 44.08
11/21/97 10/15/97 FinishMaster Inc(Lacey Distn) Thompson PBE Inc 69.3 8.00 33.33 42.22
02/12/98 10/16/97 Hartford Financial Services Omni Insurance Group Inc 184.7 31.75 75.78 130.91
12/29/97 10/17/97 Emerson Electric Co Computational Systems Inc 158.6 29.65 48.25 62.47
11/19/97 10/17/97 BTR PLC Exide Electronics Group Inc 583.2 29.00 133.17 149.46
03/31/98 10/17/97 First Federal Savings,Iowa GFS Bancorp Inc,Grinnell,IA 17.9 17.65 7.38 13.87
02/24/98 10/20/97 Starwood Hotels & Resorts ITT Corp 13748.2 85.00 98.25 95.40
03/06/98 10/20/97 Kinder Morgan Energy Partners Santa Fe Pacific Pipeline 1473.0 54.21 33.24 38.56
01/07/98 10/21/97 Berkshire Hathaway Inc International Dairy Queen Inc 596.9 27.00 9.09 9.37
</TABLE>
<PAGE> 77
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
VALUE OF PRICE PRIOR TO PRIOR TO
DATE DATE TRANSACTION PER ANN. ANN.
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE DATE DATE
- -------- -------- ------------ ------------------------ ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
02/27/98 10/23/97 Eastern Bank Corp,Lynn,MA Emerald Isle Bancorp,Quincy,MA 76.6 33.00 28.78 33.33
02/10/98 10/27/97 National Australia Bank Ltd HomeSide Inc 1230.1 27.83 12.14 7.28
04/01/98 10/28/97 First Empire State Corp,NY ONBANCorp Inc,Syracuse,NY 893.0 69.50 12.89 21.40
05/22/98 11/03/97 FirstMerit Corp CoBancorp Inc 157.3 44.50 30.88 52.14
03/03/98 11/12/97 Tekni-Plex Inc PureTec Corp 324.6 3.50 34.94 31.77
03/25/98 11/13/97 Investor Group Chartwell Leisure Inc 240.8 17.25 4.55 11.29
01/08/98 11/18/97 Cendant Corp Jackson Hewitt 468.2 68.00 21.70 47.83
02/27/98 11/19/97 Texas Instruments Inc Amati Communications Corp 459.8 20.00 44.14 13.48
01/28/98 11/21/97 TRW Inc BDM International Inc 888.0 29.50 43.47 38.01
01/20/98 11/21/97 Co-Steel Inc New Jersey Steel(Von Roll) 173.5 23.00 170.59 166.67
02/03/98 11/24/97 Davel Communications Group Inc Communications Central Inc 102.4 10.50 25.37 12.00
01/07/98 11/24/97 Cypress Group LLC General Host Corp 326.2 5.50 62.96 79.59
02/25/98 11/26/97 Investor Group Universal Hospital Services 133.0 15.50 29.17 25.25
12/30/97 11/28/97 Lund International Holdings Deflecta-Shield Corp 89.8 16.00 33.33 77.78
06/02/98 12/02/97 Patriot Amer Hosp/Wyndham Intl Interstate Hotels Co 2055.9 37.50 8.70 27.39
02/13/98 12/12/97 Voith Sulzer Paper Technology Impact Systems Inc 28.6 2.75 49.15 44.26
05/29/98 12/12/97 Bethlehem Steel Corp Lukens Inc 700.2 30.00 94.33 69.61
05/01/98 12/15/97 US Bancorp,Minneapolis,MN Piper Jaffray Cos 767.8 37.25 24.17 54.01
01/30/98 12/16/97 SulzerMedica(Gebrueder Sulzer) Spine-Tech Inc 621.1 52.00 52.94 55.81
01/23/98 12/17/97 InvaCare Corporation Suburban Ostomy Supply Co Inc 130.8 11.75 13.25 13.25
06/17/98 12/19/97 Harsco Corp Chemi-Trol Chemical Co 46.1 23.00 61.40 64.29
05/20/98 12/22/97 MDC Communications Corp Artistic Greetings Inc 33.6 5.70 47.10 52.00
04/01/98 12/23/97 Outsourcing Solutions Inc Union Corp 193.0 31.50 13.51 23.53
07/06/98 12/30/97 Pacific Bank NA,CA Sterling West Bancorp,CA 12.2 7.11 35.43 23.65
07/17/98 01/05/98 Meditrust Acquisition Co La Quinta Inns Inc 2907.5 26.00 35.95 35.95
04/01/98 01/06/98 Oakwood Homes Corp Schult Homes Corp 101.4 22.50 10.43 19.21
02/19/98 01/12/98 Research Institute of America Computer Language Research Inc 325.4 22.50 62.16 69.81
07/31/98 01/13/98 CertainTeed Corp Bird Corp 39.2 5.50 18.92 29.41
06/02/98 01/14/98 EastGroup Properties Meridian Point Realty Trust 51.7 8.50 65.85 88.89
10/05/98 01/20/98 Albertson's Inc Buttrey Food and Drug Stores 139.2 15.50 44.19 47.62
05/27/98 01/20/98 Investor Group Regal Cinemas Inc 1462.7 31.00 10.71 34.78
05/15/98 01/21/98 Microsemi Corp BKC Semiconductors Inc 13.3 9.17 59.48 66.73
</TABLE>
<PAGE> 78
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
VALUE OF PRICE PRIOR TO PRIOR TO
DATE DATE TRANSACTION PER ANN. ANN.
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE DATE DATE
- -------- -------- ------------ ------------------------ ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
06/11/98 01/26/98 Compaq Computer Corp Digital Equipment Corp 9123.7 60.00 50.25 62.45
03/03/98 01/27/98 Sage Group PLC State of the Art Inc 245.2 22.00 35.39 35.39
03/05/98 01/28/98 Kerr Group Inc Sun Coast Industries Inc 45.5 10.75 62.26 84.95
06/05/98 01/29/98 US Aggregates Inc Monroc Inc 50.3 10.77 10.46 6.37
05/21/98 01/29/98 AmeriServe Food Distn Inc ProSource Inc(Onex Corp) 343.3 15.00 106.90 100.00
06/18/98 02/09/98 USA Waste Services Inc American Waste Services 122.1 4.00 156.00 166.67
06/30/98 02/09/98 Banco Bilbao Vizcaya SA PonceBank 164.5 26.10 14.10 25.78
04/16/98 02/09/98 Fountain View(Heritage) Summit Care Corp 275.1 21.00 31.25 37.71
06/04/98 02/10/98 Canadian National Railway Co Illinois Central Corp 2931.0 39.00 20.00 18.86
06/10/98 02/11/98 Sombrero Acquisition Corp MTL Inc 250.1 40.00 38.53 56.10
05/20/98 02/11/98 Wolters Kluwer NV Waverly Inc 375.6 39.00 50.73 50.73
08/17/98 02/17/98 HB Acquisition Corp Bell Sports Corp 165.7 10.25 13.10 8.61
05/27/98 02/17/98 Applied Graphics Technologies Devon Group Inc 474.4 60.08 32.03 37.91
10/15/98 02/19/98 Hollywood Park Inc Casino Magic Corp 344.8 2.27 32.07 32.07
04/06/98 02/24/98 Siebe PLC Wonderware Corp 362.7 24.00 59.34 79.44
08/17/98 03/02/98 El Paso Natural Gas Co DeepTech International 375.4 14.00 9.80 15.46
04/30/98 03/02/98 Sunbeam Corp First Alert Inc 129.2 5.25 90.91 110.00
04/30/98 03/02/98 Sunbeam Corp Signature Brands USA Inc 81.7 8.25 60.98 106.25
05/20/98 03/05/98 Xerox Corp Intelligent Electronics Inc 341.6 7.60 19.22 34.37
07/31/98 03/06/98 Aluminum Co of America{Alcoa} Alumax Inc 3944.2 49.39 33.26 36.25
04/30/98 03/06/98 ASK AS Proxima Corp 82.9 11.00 25.71 23.94
06/25/98 03/09/98 American Cellular Corp PriCellular Corp 1385.2 14.00 16.67 16.06
06/19/98 03/10/98 Communications Instruments Inc Corcom Inc 51.7 13.00 31.65 36.84
04/20/98 03/12/98 Great Universal Stores PLC Metromail Corp 837.9 34.50 28.37 30.19
07/31/98 03/13/98 Investor Group MedCath Inc 227.8 19.00 10.95 34.51
07/10/98 03/16/98 Abbott Laboratories International Murex Tech Corp 232.7 13.00 38.21 50.73
05/11/98 03/30/98 Knowledge Beginnings Inc Children's Discovery Centers 89.1 12.25 16.67 25.64
07/21/98 04/03/98 NE Restaurant Co Inc Bertucci's Inc 96.5 10.50 35.48 35.48
05/19/98 04/08/98 Huntsman Packaging Corp Blessings Corp 269.7 21.00 18.31 34.94
05/15/98 04/09/98 Richfood Holdings Inc Dart Group Corp 193.3 160.00 11.89 19.40
07/29/98 04/09/98 Camelot Music Holdings Spec's Music Inc 26.8 3.30 65.00 65.00
06/26/98 04/10/98 CompuCom SystemsInc(Safeguard) Dataflex Corp 25.2 4.10 9.33 23.77
</TABLE>
<PAGE> 79
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
VALUE OF PRICE PRIOR TO PRIOR TO
DATE DATE TRANSACTION PER ANN. ANN.
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE DATE DATE
- -------- -------- ------------ ------------------------ ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
05/29/98 04/15/98 Siebe PLC Simulation Sciences Inc 146.5 10.00 16.79 11.11
07/21/98 04/17/98 Sterling Commerce Inc XcelleNet Inc 214.3 22.02 12.55 7.73
08/25/98 04/21/98 Investor Group PCA International Inc 232.5 26.50 17.78 20.46
06/24/98 04/21/98 General Electric Co PLC Tracor Inc 1323.5 40.00 16.79 25.00
06/29/98 04/22/98 Evans & Sutherland Computer AccelGraphics Inc 55.9 5.75 22.67 21.05
07/31/98 04/23/98 Piccadilly Cafeterias Inc Morrison Restaurants Inc 46.2 5.00 73.91 81.82
08/30/98 04/27/98 Genesis Health Ventures Inc Vitalink Pharmacy Services Inc 678.4 22.50 12.15 6.51
06/01/98 04/27/98 Lucent Technologies Inc Yurie Systems Inc 1044.1 35.00 17.40 49.73
07/20/98 04/28/98 Snap-On Inc Hein-Werner Corp 37.5 12.60 65.25 80.00
06/10/98 05/04/98 Tropical Sportswear Intl Corp Farah Inc 93.6 9.00 44.00 39.81
06/29/98 05/04/98 ARCO Union Texas Petroleum Holdings 2741.4 29.00 46.84 36.47
09/25/98 05/05/98 Investor Group Allied Digital Technologies Co 69.2 5.00 14.29 37.93
08/06/98 05/06/98 Fidelity & Deposit Co of MD Mountbatten Inc 43.4 14.60 6.18 4.29
06/15/98 05/08/98 Agrobios(Desc SA de CV) Authentic Specialty Foods Inc 141.9 17.00 13.33 37.37
07/14/98 05/11/98 Diamond Multimedia Systems Inc Micronics Computers Inc 31.7 2.45 15.29 50.77
06/26/98 05/13/98 Filtronic Comtek PLC Sage Laboratories Inc 20.2 17.50 34.62 35.92
08/19/98 05/18/98 Dillard's Inc Mercantile Stores Co Inc 2943.1 80.00 9.59 15.42
09/15/98 05/20/98 GE Medical Systems InnoServ Technologies 13.1 4.25 32.04 41.67
10/22/98 05/20/98 Licking Rural Electrification National Gas & Oil Co 93.0 13.00 18.18 26.06
07/22/98 05/22/98 Gambrinus Co Pete's Brewing Co 69.4 6.38 39.73 42.66
07/07/98 05/28/98 Bowne & Co Inc Donnelley Enterprise Solutions 105.2 21.00 61.54 83.61
08/28/98 06/01/98 US Xpress Enterprises Inc PST Vans Inc 83.9 7.47 35.82 10.67
07/21/98 06/12/98 Armstrong World Industries Inc Triangle Pacific Corp 1124.3 55.50 26.50 24.02
08/31/98 06/16/98 Linsalata Capital Partners Personnel Management Inc 34.9 16.00 23.08 23.08
09/08/98 06/17/98 Carlton Communications PLC Nimbus CD International Inc 264.9 11.50 5.75 10.84
07/28/98 06/18/98 Lyondell Petrochemical Co ARCO Chemical Co(ARCO) 5645.7 57.75 12.27 3.36
09/22/98 06/29/98 Key Energy Group Inc Dawson Production Services Inc 348.8 17.50 50.54 66.67
09/21/98 07/07/98 Investor Group Republic Engineered Steels 417.8 7.25 68.12 45.00
09/18/98 07/14/98 Henkel KGaA DEP Corp 89.7 5.25 95.35 78.72
09/02/98 07/17/98 DLJ Merchant Banking Inc DeCrane Aircraft Holdings Inc 181.5 23.00 28.67 33.82
10/06/98 07/20/98 SPX Corp General Signal Corp 2318.7 45.00 22.66 19.40
09/10/98 07/28/98 Network Associates Inc CyberMedia Inc 130.1 9.50 38.18 117.14
</TABLE>
<PAGE> 80
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
VALUE OF PRICE PRIOR TO PRIOR TO
DATE DATE TRANSACTION PER ANN. ANN.
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE DATE DATE
- -------- -------- ------------ ------------------------ ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
09/11/98 07/29/98 EBC Texas Acquisition Corp E-Z Serve Corp 43.2 0.60 20.00 20.00
10/15/98 07/30/98 Hercules Inc BetzDearborn Inc 3090.3 72.00 94.60 73.49
11/13/98 09/23/98 USFreightways Corp Golden Eagle Group Inc 30.2 4.45 184.80 223.64
11/30/98 10/21/98 Union Planters Bk Nat Assoc Capital Factors Holdings Inc 22.2 17.50 8.95 2.94
12/14/98 10/27/98 Allmerica Financial Corp Citizens Corp(Hanover Ins Co) 212.4 33.25 17.18 20.91
12/10/98 11/02/98 Danone Group AquaPenn Spring Water Co Inc 110.3 13.00 100.00 160.00
12/22/98 11/09/98 Stonington Partners Inc Global Motorsport Group Inc 109.0 19.50 33.76 31.09
--------------------------------------
Median 31.65 36.36
Average 37.12 43.37
Adj. Avg. 36.83 43.01
--------------------------------------
Below 20% 120 81
% Below 20% 30.7% 20.7%
</TABLE>
<PAGE> 81
Stock Price Analysis
- --------------------------------------------------------------------------------
United Foods, Inc.
Daily Price & Volume Trading Statistics Since 12/31/97
UNITED FOODS, INC. - CLASS A UNITED FOODS, INC. - CLASS B
CHART CHART
47
<PAGE> 82
Stock Price Analysis
- --------------------------------------------------------------------------------
UNITED FOODS - CLASS A
Shares Traded at Various Prices From 1/16/98 to 1/18/99
<TABLE>
<CAPTION>
CUMULATIVE
------------------------------------------------
DAYS % OF TOTAL % OF TOTAL DAYS % OF TOTAL % OF TOTAL
TRADING DAILY AVG. DAYS TRADING TRADING DAILY AVG. DAYS TRADING TRADING
RANGE (1) IN RANGE TRADED VOLUME VOLUME IN RANGE TRADED VOLUME VOLUME
<S> <C> <C> <C> <C> <C> <C> <C> <C>
< $2.30 0 0.0% -- 0.0% 0 0.0% -- 0.0%
$2.30 - $2.45 10 4.0% 25,600 4.8% 10 4.0% 25,600 4.8%
$2.45 - $2.60 28 11.1% 78,800 14.9% 38 15.1% 104,400 19.7%
$2.60 - $2.75 45 17.9% 64,700 12.2% 83 32.9% 169,100 31.9%
$2.75 - $2.90 35 13.9% 88,200 16.6% 118 46.8% 257,300 48.5%
$2.90 - $3.05 15 6.0% 21,700 4.1% 133 52.8% 279,000 52.6%
$3.05 - $3.20 24 9.5% 32,700 6.2% 157 62.3% 311,700 58.8%
$3.20 - $3.35 41 16.3% 62,800 11.8% 198 78.6% 374,500 70.6%
$3.35 - $3.50 33 13.1% 55,400 10.4% 231 91.7% 429,900 81.1%
$3.50 - $3.65 11 4.4% 30,200 5.7% 242 96.0% 460,100 86.8%
$3.65 - $3.80 8 3.2% 33,900 6.4% 250 99.2% 494,000 93.2%
$3.80 - $3.95 2 0.8% 36,200 6.8% 252 100.0% 530,200 100.0%
> $3.95 0 0.0% -- 0.0% 252 100.0% 530,200 100.0%
TOTAL: 252 100.0% 530,200 100.0%
</TABLE>
SHARES TRADED
CHART
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 2,104 shares or $6,431.11 and the
average daily close has been $3.02.
48
<PAGE> 83
Stock Price Analysis
- --------------------------------------------------------------------------------
UNITED FOODS - CLASS B
Shares Traded at Various Prices From 1/16/98 to 1/18/99
<TABLE>
<CAPTION>
CUMULATIVE
------------------------------------------------
DAYS % OF TOTAL % OF TOTAL DAYS % OF TOTAL % OF TOTAL
TRADING DAILY AVG. DAYS TRADING TRADING DAILY AVG. DAYS TRADING TRADING
RANGE (1) IN RANGE TRADED VOLUME VOLUME IN RANGE TRADED VOLUME VOLUME
<S> <C> <C> <C> <C> <C> <C> <C> <C>
< $2.30 0 0.0% -- 0.0% 0 0.0% -- 0.0%
$2.30 - $2.45 3 1.2% 1,200 0.5% 3 1.2% 1,200 0.5%
$2.45 - $2.60 13 5.2% 11,600 4.8% 16 6.3% 12,800 5.3%
$2.60 - $2.75 38 15.1% 42,400 17.7% 54 21.4% 55,200 23.0%
$2.75 - $2.90 42 16.7% 20,700 8.6% 96 38.1% 75,900 31.7%
$2.90 - $3.05 31 12.3% 25,800 10.8% 127 50.4% 101,700 42.4%
$3.05 - $3.20 26 10.3% 28,600 11.9% 153 60.7% 130,300 54.4%
$3.20 - $3.35 16 6.3% 27,000 11.3% 169 67.1% 157,300 65.6%
$3.35 - $3.50 49 19.4% 44,300 18.5% 218 86.5% 201,600 84.1%
$3.50 - $3.65 27 10.7% 28,000 11.7% 245 97.2% 229,600 95.8%
$3.65 - $3.80 7 2.8% 10,100 4.2% 252 100.0% 239,700 100.0%
>= $3.80 0 0.0% -- 0.0% 252 100.0% 239,700 100.0%
TOTAL: 252 100.0% 239,700 100.0%
</TABLE>
CHART
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 951 shares or $2,978.70 and the
average daily close has been $3.10.
49
<PAGE> 84
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
19-Jan-99 2,900 $ 2.50 $ 2.50 $ 2.50
15-Jan-99 600 2.38 2.38 2.38
14-Jan-99 6,800 2.50 2.44 2.44
13-Jan-99 NA 2.50 2.31 2.41
12-Jan-99 500 2.44 2.38 2.38
11-Jan-99 5,000 2.50 2.38 2.38
08-Jan-99 NA 2.69 2.38 2.53
07-Jan-99 NA 2.75 2.44 2.59
06-Jan-99 2,800 2.63 2.56 2.56
05-Jan-99 1,000 2.56 2.56 2.56
04-Jan-99 13,500 2.69 2.50 2.69
31-Dec-98 3,500 2.50 2.50 2.50
30-Dec-98 5,100 2.63 2.50 2.50
29-Dec-98 NA 2.69 2.31 2.50
28-Dec-98 1,000 2.38 2.38 2.38
24-Dec-98 400 2.50 2.50 2.50
23-Dec-98 2,600 2.50 2.38 2.50
22-Dec-98 6,000 2.50 2.50 2.50
21-Dec-98 200 2.56 2.56 2.56
18-Dec-98 200 2.56 2.56 2.56
17-Dec-98 NA 2.75 2.50 2.63
16-Dec-98 NA 2.81 2.44 2.63
15-Dec-98 NA 2.75 2.50 2.63
14-Dec-98 NA 2.81 2.50 2.66
11-Dec-98 1,000 2.63 2.63 2.63
10-Dec-98 600 2.69 2.69 2.69
09-Dec-98 400 2.69 2.69 2.69
08-Dec-98 NA 3.00 2.50 2.75
07-Dec-98 300 2.69 2.69 2.69
</TABLE>
<PAGE> 85
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
04-Dec-98 NA 2.88 2.50 2.69
03-Dec-98 400 2.69 2.69 2.69
02-Dec-98 300 2.75 2.75 2.75
01-Dec-98 NA 2.94 2.63 2.78
30-Nov-98 7,500 2.81 2.50 2.81
27-Nov-98 NA 2.94 2.25 2.59
25-Nov-98 10,300 2.63 2.63 2.63
24-Nov-98 10,800 2.50 2.38 2.38
23-Nov-98 200 2.63 2.63 2.63
20-Nov-98 NA 2.75 2.44 2.59
19-Nov-98 9,000 2.63 2.63 2.63
18-Nov-98 3,500 2.63 2.63 2.63
17-Nov-98 500 2.69 2.63 2.63
16-Nov-98 1,200 2.69 2.69 2.69
13-Nov-98 NA 2.94 2.63 2.78
12-Nov-98 NA 2.94 2.69 2.81
11-Nov-98 2,300 2.81 2.81 2.81
10-Nov-98 NA 2.94 2.69 2.81
09-Nov-98 NA 3.00 2.69 2.84
06-Nov-98 NA 2.94 2.63 2.78
05-Nov-98 500 2.81 2.81 2.81
04-Nov-98 NA 3.00 2.50 2.75
03-Nov-98 NA 3.00 2.75 2.88
02-Nov-98 NA 3.06 2.75 2.91
30-Oct-98 6,000 2.94 2.75 2.94
29-Oct-98 NA 3.00 2.69 2.84
28-Oct-98 NA 3.00 2.69 2.84
27-Oct-98 5,900 2.88 2.81 2.88
26-Oct-98 1,000 2.69 2.69 2.69
</TABLE>
<PAGE> 86
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
23-Oct-98 NA 2.81 2.56 2.69
22-Oct-98 NA 2.88 2.56 2.72
21-Oct-98 NA 2.88 2.63 2.75
20-Oct-98 NA 2.94 2.56 2.75
19-Oct-98 200 2.69 2.69 2.69
16-Oct-98 NA 2.81 2.56 2.69
15-Oct-98 1,000 2.75 2.69 2.69
14-Oct-98 NA 3.00 2.63 2.81
13-Oct-98 NA 2.94 2.63 2.78
12-Oct-98 NA 2.94 2.69 2.81
09-Oct-98 NA 3.00 2.69 2.84
08-Oct-98 NA 2.88 2.56 2.72
07-Oct-98 1,400 2.88 2.88 2.88
06-Oct-98 700 2.88 2.88 2.88
05-Oct-98 NA 3.06 2.81 2.94
02-Oct-98 300 2.81 2.81 2.81
01-Oct-98 0 3.06 2.63 2.84
30-Sep-98 2,000 2.94 2.94 2.94
29-Sep-98 200 2.88 2.88 2.88
28-Sep-98 0 2.94 2.56 2.75
25-Sep-98 500 2.81 2.81 2.81
24-Sep-98 0 2.94 2.56 2.75
23-Sep-98 0 2.81 2.56 2.69
22-Sep-98 500 2.63 2.63 2.63
21-Sep-98 0 2.81 2.56 2.69
18-Sep-98 0 2.88 2.56 2.72
17-Sep-98 6,000 2.63 2.38 2.63
16-Sep-98 100 2.38 2.38 2.38
15-Sep-98 0 2.50 2.31 2.41
</TABLE>
<PAGE> 87
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
14-Sep-98 5,000 2.44 2.44 2.44
11-Sep-98 1,600 2.63 2.38 2.44
10-Sep-98 2,400 2.50 2.50 2.50
09-Sep-98 0 2.81 2.44 2.63
08-Sep-98 0 2.94 2.56 2.75
04-Sep-98 0 2.75 2.44 2.59
03-Sep-98 0 2.88 2.56 2.72
02-Sep-98 800 2.63 2.63 2.63
01-Sep-98 800 2.81 2.75 2.75
31-Aug-98 6,700 2.88 2.50 2.88
28-Aug-98 0 2.69 2.44 2.56
27-Aug-98 4,000 2.63 2.56 2.63
26-Aug-98 5,000 2.75 2.75 2.75
25-Aug-98 5,400 2.81 2.75 2.81
24-Aug-98 0 2.94 2.75 2.84
21-Aug-98 0 2.88 2.69 2.78
20-Aug-98 2,000 2.81 2.81 2.81
19-Aug-98 300 2.94 2.88 2.88
18-Aug-98 100 2.94 2.94 2.94
17-Aug-98 8,000 2.94 2.94 2.94
14-Aug-98 0 3.13 2.88 3.00
13-Aug-98 0 3.13 2.88 3.00
12-Aug-98 300 3.00 3.00 3.00
11-Aug-98 1,200 3.25 2.94 2.94
10-Aug-98 0 3.25 2.94 3.09
07-Aug-98 0 3.19 2.63 2.91
06-Aug-98 0 3.25 2.75 3.00
05-Aug-98 600 3.25 3.06 3.06
04-Aug-98 0 3.38 2.88 3.13
</TABLE>
<PAGE> 88
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
03-Aug-98 1,800 3.38 3.25 3.25
31-Jul-98 9,900 3.38 3.00 3.38
30-Jul-98 0 3.31 3.13 3.22
29-Jul-98 200 3.19 3.19 3.19
28-Jul-98 0 3.25 3.06 3.16
27-Jul-98 0 3.38 3.06 3.22
24-Jul-98 0 3.38 3.06 3.22
23-Jul-98 0 3.25 2.88 3.06
22-Jul-98 2,100 3.25 3.25 3.25
21-Jul-98 0 3.38 3.06 3.22
20-Jul-98 0 3.38 2.88 3.13
17-Jul-98 0 3.38 3.13 3.25
16-Jul-98 0 3.38 3.06 3.22
15-Jul-98 0 3.38 3.06 3.22
14-Jul-98 0 3.31 3.13 3.22
13-Jul-98 0 3.38 3.13 3.25
10-Jul-98 0 3.31 2.88 3.09
09-Jul-98 0 3.38 3.13 3.25
08-Jul-98 0 3.38 3.13 3.25
07-Jul-98 1,000 3.19 3.19 3.19
06-Jul-98 1,600 3.25 3.19 3.19
02-Jul-98 0 3.50 3.19 3.34
01-Jul-98 400 3.38 3.38 3.38
30-Jun-98 7,000 3.44 3.38 3.38
29-Jun-98 0 3.44 3.06 3.25
26-Jun-98 0 3.50 2.88 3.19
25-Jun-98 1,000 3.25 3.25 3.25
24-Jun-98 0 3.56 3.06 3.31
23-Jun-98 200 3.25 3.25 3.25
</TABLE>
<PAGE> 89
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
22-Jun-98 5,000 3.31 3.31 3.31
19-Jun-98 0 3.38 3.19 3.28
18-Jun-98 600 3.19 3.19 3.19
17-Jun-98 0 3.38 3.13 3.25
16-Jun-98 5,200 3.31 3.19 3.19
15-Jun-98 100 3.31 3.31 3.31
12-Jun-98 0 3.56 3.25 3.41
11-Jun-98 2,200 3.38 3.31 3.31
10-Jun-98 100 3.31 3.31 3.31
09-Jun-98 600 3.38 3.38 3.38
08-Jun-98 0 3.69 3.19 3.44
05-Jun-98 500 3.50 3.50 3.50
04-Jun-98 0 3.69 3.44 3.56
03-Jun-98 0 3.69 3.44 3.56
02-Jun-98 0 3.69 3.44 3.56
01-Jun-98 0 3.63 3.25 3.44
29-May-98 15,300 3.63 3.44 3.63
28-May-98 1,100 3.50 3.31 3.50
27-May-98 0 3.50 3.19 3.34
26-May-98 3,200 3.38 3.38 3.38
22-May-98 0 3.44 3.19 3.31
21-May-98 0 3.63 3.13 3.38
20-May-98 0 3.56 3.19 3.38
19-May-98 7,300 3.25 3.25 3.25
18-May-98 3,700 3.31 3.31 3.31
15-May-98 200 3.38 3.38 3.38
14-May-98 0 3.50 3.25 3.38
13-May-98 200 3.31 3.31 3.31
12-May-98 1,000 3.38 3.38 3.38
</TABLE>
<PAGE> 90
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
11-May-98 0 3.56 3.25 3.41
08-May-98 900 3.38 3.38 3.38
07-May-98 0 3.63 3.38 3.50
06-May-98 400 3.44 3.44 3.44
05-May-98 500 3.50 3.50 3.50
04-May-98 2,300 3.88 3.63 3.75
01-May-98 29,700 3.94 3.81 3.81
30-Apr-98 5,200 3.56 3.06 3.56
29-Apr-98 0 3.25 2.94 3.09
28-Apr-98 5,000 3.13 3.00 3.13
27-Apr-98 100 2.88 2.88 2.88
24-Apr-98 0 3.00 2.69 2.84
23-Apr-98 1,000 2.88 2.88 2.88
22-Apr-98 7,400 3.00 2.75 3.00
21-Apr-98 16,700 2.69 2.50 2.63
20-Apr-98 4,100 2.75 2.69 2.75
17-Apr-98 41,300 3.00 2.69 2.69
16-Apr-98 1,000 3.06 3.06 3.06
15-Apr-98 11,000 3.13 3.06 3.06
14-Apr-98 10,700 3.50 3.06 3.38
13-Apr-98 2,500 3.00 3.00 3.00
09-Apr-98 500 3.06 3.00 3.00
08-Apr-98 0 3.31 2.88 3.09
07-Apr-98 700 3.13 3.13 3.13
06-Apr-98 0 3.44 2.94 3.19
03-Apr-98 0 3.56 3.06 3.31
02-Apr-98 3,600 3.38 3.25 3.25
01-Apr-98 0 3.69 3.31 3.50
31-Mar-98 9,400 3.50 3.00 3.50
</TABLE>
<PAGE> 91
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
30-Mar-98 4,000 3.06 2.94 2.94
27-Mar-98 700 3.19 3.19 3.19
26-Mar-98 0 3.31 2.94 3.13
25-Mar-98 800 3.19 3.19 3.19
24-Mar-98 200 3.31 3.31 3.31
23-Mar-98 1,100 3.38 3.38 3.38
20-Mar-98 0 3.50 2.88 3.19
19-Mar-98 0 3.50 3.13 3.31
18-Mar-98 1,900 3.31 3.19 3.31
17-Mar-98 0 3.50 3.13 3.31
16-Mar-98 0 3.50 3.25 3.38
13-Mar-98 1,300 3.31 3.31 3.31
12-Mar-98 0 3.56 3.19 3.38
11-Mar-98 1,000 3.50 3.38 3.38
10-Mar-98 0 3.69 3.38 3.53
09-Mar-98 400 3.50 3.50 3.50
06-Mar-98 2,500 3.63 3.63 3.63
05-Mar-98 3,700 3.63 3.50 3.50
04-Mar-98 600 3.50 3.50 3.50
03-Mar-98 0 3.81 3.50 3.66
02-Mar-98 1,000 3.56 3.56 3.56
27-Feb-98 10,300 3.69 3.25 3.63
26-Feb-98 300 3.38 3.38 3.38
25-Feb-98 800 3.44 3.44 3.44
24-Feb-98 0 3.56 3.31 3.44
23-Feb-98 600 3.50 3.44 3.44
20-Feb-98 0 3.63 3.13 3.38
19-Feb-98 7,500 3.63 3.50 3.50
18-Feb-98 2,200 3.75 3.75 3.75
</TABLE>
<PAGE> 92
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
17-Feb-98 0 3.75 3.44 3.59
13-Feb-98 200 3.63 3.63 3.63
12-Feb-98 1,000 3.75 3.75 3.75
11-Feb-98 2,200 3.75 3.63 3.63
10-Feb-98 6,500 4.00 3.75 3.75
09-Feb-98 3,100 3.88 3.63 3.88
06-Feb-98 3,000 3.88 3.63 3.63
05-Feb-98 20,100 3.88 3.56 3.88
04-Feb-98 24,500 3.75 3.00 3.75
03-Feb-98 4,000 3.00 2.94 2.94
02-Feb-98 0 3.00 2.69 2.84
30-Jan-98 12,400 2.88 2.75 2.88
29-Jan-98 6,200 2.63 2.50 2.63
28-Jan-98 0 2.75 2.44 2.59
27-Jan-98 10,000 2.63 2.63 2.63
26-Jan-98 300 2.50 2.50 2.50
23-Jan-98 200 2.63 2.63 2.63
22-Jan-98 0 2.81 2.44 2.63
21-Jan-98 1,800 2.63 2.50 2.50
20-Jan-98 0 2.69 2.38 2.53
16-Jan-98 300 2.56 2.56 2.56
15-Jan-98 9,300 2.63 2.50 2.50
14-Jan-98 0 2.69 2.31 2.50
13-Jan-98 0 2.56 2.31 2.44
12-Jan-98 0 2.69 2.31 2.50
09-Jan-98 700 2.50 2.44 2.44
08-Jan-98 0 2.69 2.44 2.56
07-Jan-98 0 2.69 2.31 2.50
06-Jan-98 5,600 2.63 2.63 2.63
</TABLE>
<PAGE> 93
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
05-Jan-98 3,400 2.75 2.63 2.63
02-Jan-98 0 2.75 2.44 2.59
31-Dec-97 5,600 2.75 2.38 2.63
30-Dec-97 200 2.38 2.38 2.38
29-Dec-97 1,000 2.38 2.38 2.38
26-Dec-97 0 2.69 2.31 2.50
24-Dec-97 1,700 2.38 2.38 2.38
23-Dec-97 200 2.50 2.50 2.50
22-Dec-97 0 2.56 2.31 2.44
19-Dec-97 0 2.63 2.25 2.44
18-Dec-97 0 2.63 2.31 2.47
17-Dec-97 700 2.50 2.50 2.50
16-Dec-97 0 2.56 2.19 2.38
15-Dec-97 4,000 2.38 2.38 2.38
12-Dec-97 0 2.56 2.25 2.41
11-Dec-97 1,300 2.44 2.44 2.44
10-Dec-97 0 2.50 2.31 2.41
09-Dec-97 0 2.50 2.31 2.41
08-Dec-97 2,000 2.44 2.44 2.44
05-Dec-97 0 2.69 2.31 2.50
04-Dec-97 0 2.69 2.31 2.50
03-Dec-97 0 2.75 2.44 2.59
02-Dec-97 400 2.50 2.50 2.50
01-Dec-97 0 2.75 2.44 2.59
28-Nov-97 6,700 2.63 2.38 2.63
26-Nov-97 0 2.69 2.38 2.53
25-Nov-97 0 2.81 2.38 2.59
24-Nov-97 0 2.69 2.38 2.53
21-Nov-97 0 2.69 2.38 2.53
</TABLE>
<PAGE> 94
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
20-Nov-97 0 2.81 2.31 2.56
19-Nov-97 0 2.75 2.31 2.53
18-Nov-97 0 2.69 2.38 2.53
17-Nov-97 200 2.44 2.44 2.44
14-Nov-97 0 2.69 2.31 2.50
13-Nov-97 0 2.56 2.31 2.44
12-Nov-97 0 2.63 2.25 2.44
11-Nov-97 2,000 2.50 2.38 2.50
10-Nov-97 100 2.25 2.25 2.25
07-Nov-97 0 2.44 2.06 2.25
06-Nov-97 1,300 2.25 2.25 2.25
05-Nov-97 2,000 2.38 2.38 2.38
04-Nov-97 800 2.50 2.50 2.50
03-Nov-97 0 2.75 2.44 2.59
31-Oct-97 5,500 2.63 2.44 2.63
30-Oct-97 6,000 2.50 2.50 2.50
29-Oct-97 0 2.50 2.25 2.38
28-Oct-97 1,500 2.50 2.50 2.50
27-Oct-97 0 2.63 2.25 2.44
24-Oct-97 200 2.50 2.50 2.50
23-Oct-97 0 2.81 2.38 2.59
22-Oct-97 2,900 2.50 2.44 2.50
21-Oct-97 0 2.63 2.50 2.56
20-Oct-97 0 2.69 2.44 2.56
17-Oct-97 0 2.63 2.50 2.56
16-Oct-97 800 2.50 2.50 2.50
15-Oct-97 200 2.50 2.50 2.50
14-Oct-97 0 2.69 2.50 2.59
13-Oct-97 200 2.50 2.50 2.50
</TABLE>
<PAGE> 95
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
10-Oct-97 0 2.75 2.50 2.63
09-Oct-97 0 2.75 2.50 2.63
08-Oct-97 1,000 2.56 2.56 2.56
07-Oct-97 0 2.75 2.56 2.66
06-Oct-97 0 2.75 2.50 2.63
03-Oct-97 0 2.75 2.56 2.66
02-Oct-97 300 2.63 2.63 2.63
01-Oct-97 0 2.81 2.44 2.63
30-Sep-97 8,700 2.75 2.50 2.75
29-Sep-97 0 2.69 2.50 2.59
26-Sep-97 0 2.75 2.56 2.66
25-Sep-97 1,300 2.63 2.50 2.63
24-Sep-97 0 2.75 2.56 2.66
23-Sep-97 600 2.75 2.56 2.75
22-Sep-97 1,300 2.63 2.63 2.63
19-Sep-97 0 2.69 2.31 2.50
18-Sep-97 200 2.50 2.50 2.50
17-Sep-97 14,500 2.75 2.63 2.63
16-Sep-97 600 2.75 2.75 2.75
15-Sep-97 0 2.81 2.56 2.69
12-Sep-97 2,500 2.69 2.63 2.63
11-Sep-97 0 2.69 2.25 2.47
10-Sep-97 0 2.63 2.38 2.50
09-Sep-97 400 2.44 2.44 2.44
08-Sep-97 13,700 2.56 2.50 2.56
05-Sep-97 600 2.38 2.38 2.38
04-Sep-97 1,000 2.50 2.50 2.50
03-Sep-97 0 2.75 2.44 2.59
02-Sep-97 0 2.81 2.50 2.66
</TABLE>
<PAGE> 96
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
29-Aug-97 7,600 2.63 2.50 2.56
28-Aug-97 600 2.56 2.44 2.56
27-Aug-97 20,700 2.50 2.50 2.50
26-Aug-97 300 2.44 2.44 2.44
25-Aug-97 1,000 2.50 2.50 2.50
22-Aug-97 0 2.50 2.31 2.41
21-Aug-97 1,000 2.38 2.38 2.38
20-Aug-97 0 2.56 2.38 2.47
19-Aug-97 0 2.56 2.38 2.47
18-Aug-97 300 2.50 2.50 2.50
15-Aug-97 2,000 2.56 2.56 2.56
14-Aug-97 0 2.75 2.56 2.66
13-Aug-97 0 2.81 2.56 2.69
12-Aug-97 300 2.63 2.63 2.63
11-Aug-97 0 2.75 2.56 2.66
08-Aug-97 0 2.75 2.56 2.66
07-Aug-97 2,700 2.63 2.63 2.63
06-Aug-97 3,300 2.75 2.63 2.75
05-Aug-97 0 3.00 2.63 2.81
04-Aug-97 0 2.88 2.63 2.75
01-Aug-97 0 2.88 2.56 2.72
31-Jul-97 0 2.88 2.63 2.75
30-Jul-97 0 2.88 2.50 2.69
29-Jul-97 1,500 2.75 2.63 2.75
28-Jul-97 700 2.81 2.81 2.81
25-Jul-97 1,300 2.88 2.81 2.81
24-Jul-97 8,400 2.94 2.81 2.94
23-Jul-97 15,100 2.94 2.13 2.81
22-Jul-97 200 2.19 2.19 2.19
</TABLE>
<PAGE> 97
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
21-Jul-97 0 2.38 2.13 2.25
18-Jul-97 500 2.19 2.19 2.19
17-Jul-97 0 2.44 2.00 2.22
16-Jul-97 0 2.38 2.13 2.25
15-Jul-97 2,700 2.25 2.25 2.25
14-Jul-97 400 2.38 2.25 2.25
11-Jul-97 0 2.50 2.13 2.31
10-Jul-97 0 2.50 2.13 2.31
09-Jul-97 5,600 2.25 2.13 2.25
08-Jul-97 0 2.44 2.00 2.22
07-Jul-97 500 2.38 2.31 2.31
03-Jul-97 0 2.50 2.13 2.31
02-Jul-97 10,700 2.44 2.38 2.38
01-Jul-97 0 2.44 2.31 2.38
30-Jun-97 1,300 2.38 2.38 2.38
27-Jun-97 0 2.44 2.06 2.25
26-Jun-97 0 2.56 2.31 2.44
25-Jun-97 4,400 2.31 2.31 2.31
24-Jun-97 0 2.38 2.31 2.34
23-Jun-97 100 2.31 2.31 2.31
20-Jun-97 200 2.38 2.38 2.38
19-Jun-97 2,200 2.44 2.44 2.44
18-Jun-97 100 2.19 2.19 2.19
17-Jun-97 0 2.38 2.13 2.25
16-Jun-97 200 2.25 2.25 2.25
13-Jun-97 1,700 2.25 2.25 2.25
12-Jun-97 0 2.50 2.13 2.31
11-Jun-97 200 2.13 2.13 2.13
10-Jun-97 0 2.38 2.13 2.25
</TABLE>
<PAGE> 98
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
09-Jun-97 0 2.38 2.13 2.25
06-Jun-97 8,400 2.13 2.13 2.13
05-Jun-97 0 2.38 2.13 2.25
04-Jun-97 10,100 2.19 2.19 2.19
03-Jun-97 13,700 2.13 2.06 2.13
02-Jun-97 11,100 2.13 2.00 2.13
30-May-97 200 2.06 2.06 2.06
29-May-97 7,600 2.13 2.13 2.13
28-May-97 0 2.13 1.88 2.00
27-May-97 4,100 2.06 2.06 2.06
23-May-97 3,300 2.06 2.06 2.06
22-May-97 5,000 2.06 2.06 2.06
21-May-97 14,500 2.13 2.06 2.06
20-May-97 42,400 2.06 2.00 2.06
19-May-97 2,400 1.75 1.63 1.75
16-May-97 700 1.63 1.56 1.63
15-May-97 100 1.56 1.56 1.56
14-May-97 0 1.69 1.56 1.63
13-May-97 4,000 1.56 1.56 1.56
12-May-97 400 1.56 1.56 1.56
09-May-97 600 1.63 1.63 1.63
08-May-97 400 1.56 1.56 1.56
07-May-97 1,000 1.63 1.63 1.63
06-May-97 0 1.75 1.38 1.56
05-May-97 100 1.63 1.63 1.63
02-May-97 0 1.81 1.38 1.59
01-May-97 5,000 1.75 1.63 1.63
30-Apr-97 8,500 1.69 1.50 1.69
29-Apr-97 0 1.69 1.50 1.59
</TABLE>
<PAGE> 99
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
28-Apr-97 2,000 1.56 1.56 1.56
25-Apr-97 5,000 1.69 1.56 1.56
24-Apr-97 500 1.56 1.56 1.56
23-Apr-97 3,000 1.69 1.69 1.69
22-Apr-97 0 1.69 1.50 1.59
21-Apr-97 5,800 1.63 1.56 1.63
18-Apr-97 1,200 1.63 1.63 1.63
17-Apr-97 3,000 1.63 1.63 1.63
16-Apr-97 3,000 1.63 1.63 1.63
15-Apr-97 0 1.69 1.50 1.59
14-Apr-97 12,600 1.56 1.44 1.50
11-Apr-97 24,200 1.63 1.50 1.50
10-Apr-97 0 1.81 1.63 1.72
09-Apr-97 0 1.81 1.63 1.72
08-Apr-97 200 1.69 1.69 1.69
07-Apr-97 800 1.69 1.69 1.69
04-Apr-97 300 1.69 1.69 1.69
03-Apr-97 8,900 1.81 1.69 1.69
02-Apr-97 2,200 1.81 1.69 1.81
01-Apr-97 0 1.81 1.56 1.69
31-Mar-97 3,500 1.81 1.63 1.81
27-Mar-97 0 1.75 1.63 1.69
26-Mar-97 0 1.75 1.56 1.66
25-Mar-97 1,400 1.63 1.63 1.63
24-Mar-97 1,000 1.69 1.69 1.69
21-Mar-97 0 1.75 1.63 1.69
20-Mar-97 600 1.63 1.63 1.63
19-Mar-97 1,000 1.69 1.69 1.69
18-Mar-97 300 1.69 1.69 1.69
</TABLE>
<PAGE> 100
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
17-Mar-97 1,200 1.69 1.69 1.69
14-Mar-97 0 1.81 1.63 1.72
13-Mar-97 6,200 1.69 1.69 1.69
12-Mar-97 0 1.81 1.69 1.75
11-Mar-97 0 1.81 1.69 1.75
10-Mar-97 2,700 1.81 1.69 1.69
07-Mar-97 0 1.94 1.81 1.88
06-Mar-97 1,100 1.94 1.88 1.94
05-Mar-97 0 1.94 1.75 1.84
04-Mar-97 1,000 1.94 1.88 1.94
03-Mar-97 0 2.00 1.63 1.81
28-Feb-97 21,900 1.88 1.75 1.88
27-Feb-97 600 1.81 1.81 1.81
26-Feb-97 0 1.81 1.44 1.63
25-Feb-97 2,500 1.69 1.69 1.69
24-Feb-97 800 1.69 1.69 1.69
21-Feb-97 2,300 1.75 1.75 1.75
20-Feb-97 200 1.69 1.69 1.69
19-Feb-97 0 1.75 1.63 1.69
18-Feb-97 5,100 1.69 1.69 1.69
14-Feb-97 300 1.75 1.75 1.75
13-Feb-97 0 1.94 1.69 1.81
12-Feb-97 0 1.81 1.69 1.75
11-Feb-97 100 1.81 1.81 1.81
10-Feb-97 13,200 1.88 1.81 1.81
07-Feb-97 12,900 1.81 1.63 1.81
06-Feb-97 0 1.75 1.63 1.69
05-Feb-97 11,000 1.63 1.56 1.63
04-Feb-97 2,000 1.63 1.63 1.63
</TABLE>
<PAGE> 101
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
03-Feb-97 1,200 1.56 1.56 1.56
31-Jan-97 8,000 1.69 1.56 1.56
30-Jan-97 25,900 1.63 1.56 1.63
29-Jan-97 3,100 1.63 1.63 1.63
28-Jan-97 6,100 1.69 1.63 1.63
27-Jan-97 0 1.75 1.63 1.69
24-Jan-97 0 1.75 1.63 1.69
23-Jan-97 500 1.69 1.69 1.69
22-Jan-97 0 1.81 1.56 1.69
21-Jan-97 800 1.69 1.69 1.69
20-Jan-97 1,600 1.69 1.69 1.69
17-Jan-97 0 1.81 1.56 1.69
16-Jan-97 0 1.81 1.63 1.72
15-Jan-97 100 1.63 1.63 1.63
14-Jan-97 3,000 1.75 1.63 1.63
13-Jan-97 1,100 1.69 1.63 1.63
10-Jan-97 400 1.75 1.69 1.75
09-Jan-97 7,000 1.69 1.69 1.69
08-Jan-97 12,500 1.75 1.69 1.69
07-Jan-97 12,500 1.75 1.75 1.75
06-Jan-97 400 1.63 1.63 1.63
03-Jan-97 1,300 1.69 1.63 1.69
02-Jan-97 2,000 1.63 1.56 1.56
----------------------------------------------------------------
AVERAGE 2,367 2.66 2.50 2.59
================================================================
</TABLE>
<PAGE> 102
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
15-Jan-99 300 2.44 2.44 2.44
14-Jan-99 2,900 2.50 2.44 2.50
13-Jan-99 NA 2.56 2.38 2.47
12-Jan-99 100 2.44 2.44 2.44
11-Jan-99 800 2.50 2.38 2.38
08-Jan-99 2,500 2.50 2.50 2.50
07-Jan-99 400 2.50 2.50 2.50
06-Jan-99 1,000 2.69 2.56 2.56
05-Jan-99 NA 2.94 2.31 2.63
04-Jan-99 NA 2.81 2.50 2.66
31-Dec-98 3,000 2.75 2.75 2.75
30-Dec-98 3,000 2.75 2.75 2.75
29-Dec-98 NA 2.81 2.44 2.63
28-Dec-98 600 2.63 2.63 2.63
24-Dec-98 NA 2.81 2.44 2.63
23-Dec-98 100 2.69 2.69 2.69
22-Dec-98 NA 2.75 2.44 2.59
21-Dec-98 200 2.56 2.56 2.56
18-Dec-98 200 2.56 2.56 2.56
17-Dec-98 3,000 2.69 2.69 2.69
16-Dec-98 NA 2.75 2.38 2.56
15-Dec-98 13,100 2.75 2.56 2.56
14-Dec-98 1,500 2.88 2.88 2.88
11-Dec-98 NA 3.00 2.63 2.81
10-Dec-98 NA 3.00 2.69 2.84
09-Dec-98 NA 3.06 2.69 2.88
08-Dec-98 NA 3.38 2.38 2.88
07-Dec-98 100 2.88 2.88 2.88
04-Dec-98 NA 3.13 2.75 2.94
</TABLE>
<PAGE> 103
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
03-Dec-98 NA 3.00 2.81 2.91
02-Dec-98 1,200 2.88 2.88 2.88
01-Dec-98 NA 3.13 2.75 2.94
30-Nov-98 3,500 3.00 2.88 3.00
27-Nov-98 NA 3.06 2.63 2.84
25-Nov-98 800 2.69 2.69 2.69
24-Nov-98 100 2.75 2.75 2.75
23-Nov-98 NA 2.88 2.56 2.72
20-Nov-98 NA 2.94 2.69 2.81
19-Nov-98 800 2.88 2.81 2.88
18-Nov-98 NA 2.88 2.69 2.78
17-Nov-98 700 2.88 2.88 2.88
16-Nov-98 NA 3.00 2.69 2.84
13-Nov-98 NA 2.94 2.75 2.84
12-Nov-98 NA 2.94 2.69 2.81
11-Nov-98 NA 3.00 2.75 2.88
10-Nov-98 NA 3.00 2.69 2.84
09-Nov-98 NA 3.13 2.81 2.97
06-Nov-98 NA 3.00 2.69 2.84
05-Nov-98 NA 3.00 2.81 2.91
04-Nov-98 NA 3.00 2.50 2.75
03-Nov-98 NA 2.94 2.69 2.81
02-Nov-98 1,000 3.00 2.88 2.88
30-Oct-98 3,400 3.00 2.88 3.00
29-Oct-98 NA 3.06 2.81 2.94
28-Oct-98 NA 3.00 2.81 2.91
27-Oct-98 2,700 2.88 2.88 2.88
26-Oct-98 NA 2.94 2.69 2.81
23-Oct-98 NA 2.88 2.56 2.72
</TABLE>
<PAGE> 104
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
22-Oct-98 NA 2.94 2.56 2.75
21-Oct-98 NA 2.94 2.63 2.78
20-Oct-98 NA 2.94 2.56 2.75
19-Oct-98 NA 3.06 2.63 2.84
16-Oct-98 3,000 2.75 2.56 2.75
15-Oct-98 1,000 2.63 2.63 2.63
14-Oct-98 NA 2.88 2.50 2.69
13-Oct-98 NA 2.81 2.56 2.69
12-Oct-98 NA 2.81 2.56 2.69
09-Oct-98 1,000 2.69 2.69 2.69
08-Oct-98 2,500 2.81 2.81 2.81
07-Oct-98 500 2.88 2.88 2.88
06-Oct-98 100 2.88 2.88 2.88
05-Oct-98 NA 3.00 2.75 2.88
02-Oct-98 2,000 2.88 2.88 2.88
01-Oct-98 0 3.13 2.63 2.88
30-Sep-98 1,000 3.00 3.00 3.00
29-Sep-98 0 3.06 2.81 2.94
28-Sep-98 0 3.00 2.75 2.88
25-Sep-98 4,500 3.00 2.94 3.00
24-Sep-98 3,400 2.88 2.81 2.88
23-Sep-98 0 2.88 2.63 2.75
22-Sep-98 0 2.94 2.69 2.81
21-Sep-98 0 2.75 2.56 2.66
18-Sep-98 0 2.88 2.56 2.72
17-Sep-98 4,600 2.69 2.44 2.69
16-Sep-98 0 2.56 2.38 2.47
15-Sep-98 0 2.63 2.31 2.47
14-Sep-98 0 2.69 2.38 2.53
</TABLE>
<PAGE> 105
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
11-Sep-98 800 2.50 2.50 2.50
10-Sep-98 5,900 2.75 2.63 2.75
09-Sep-98 0 2.94 2.69 2.81
08-Sep-98 200 2.75 2.75 2.75
04-Sep-98 700 2.88 2.75 2.75
03-Sep-98 500 2.69 2.69 2.69
02-Sep-98 0 3.00 2.63 2.81
01-Sep-98 600 2.88 2.81 2.81
31-Aug-98 3,100 2.94 2.88 2.94
28-Aug-98 3,000 2.75 2.75 2.75
27-Aug-98 500 2.81 2.81 2.81
26-Aug-98 0 2.94 2.50 2.72
25-Aug-98 0 3.19 2.56 2.88
24-Aug-98 0 3.06 2.75 2.91
21-Aug-98 3,000 2.81 2.81 2.81
20-Aug-98 0 3.13 2.75 2.94
19-Aug-98 3,500 2.94 2.94 2.94
18-Aug-98 1,000 3.00 3.00 3.00
17-Aug-98 0 3.13 2.88 3.00
14-Aug-98 0 3.25 2.94 3.09
13-Aug-98 0 3.13 2.94 3.03
12-Aug-98 0 3.25 2.88 3.06
11-Aug-98 0 3.25 2.94 3.09
10-Aug-98 0 3.31 2.94 3.13
07-Aug-98 0 3.19 2.75 2.97
06-Aug-98 0 3.25 2.75 3.00
05-Aug-98 100 3.13 3.13 3.13
04-Aug-98 0 3.38 2.88 3.13
03-Aug-98 0 3.38 3.06 3.22
</TABLE>
<PAGE> 106
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
31-Jul-98 13,000 3.25 3.00 3.25
30-Jul-98 900 3.06 3.06 3.06
29-Jul-98 300 3.13 3.13 3.13
28-Jul-98 0 3.19 2.94 3.06
27-Jul-98 0 3.25 3.06 3.16
24-Jul-98 0 3.38 3.06 3.22
23-Jul-98 0 3.38 2.88 3.13
22-Jul-98 3,900 3.25 3.13 3.13
21-Jul-98 0 3.56 3.06 3.31
20-Jul-98 500 3.25 3.13 3.25
17-Jul-98 0 3.31 3.06 3.19
16-Jul-98 0 3.31 2.94 3.13
15-Jul-98 800 3.13 3.13 3.13
14-Jul-98 300 3.13 3.13 3.13
13-Jul-98 0 3.44 3.06 3.25
10-Jul-98 300 3.13 3.13 3.13
09-Jul-98 0 3.38 3.13 3.25
08-Jul-98 100 3.19 3.19 3.19
07-Jul-98 0 3.44 3.13 3.28
06-Jul-98 1,400 3.25 3.25 3.25
02-Jul-98 0 3.63 3.31 3.47
01-Jul-98 0 3.69 3.31 3.50
30-Jun-98 6,300 3.50 3.31 3.50
29-Jun-98 100 3.38 3.38 3.38
26-Jun-98 0 3.75 3.38 3.56
25-Jun-98 0 3.56 3.31 3.44
24-Jun-98 300 3.44 3.44 3.44
23-Jun-98 0 3.56 3.19 3.38
22-Jun-98 800 3.50 3.44 3.44
</TABLE>
<PAGE> 107
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
19-Jun-98 100 3.38 3.38 3.38
18-Jun-98 600 3.50 3.50 3.50
17-Jun-98 0 3.69 3.31 3.50
16-Jun-98 0 3.63 3.31 3.47
15-Jun-98 700 3.50 3.50 3.50
12-Jun-98 2,600 3.63 3.63 3.63
11-Jun-98 5,400 3.50 3.44 3.50
10-Jun-98 0 3.88 3.19 3.53
09-Jun-98 500 3.56 3.56 3.56
08-Jun-98 300 3.38 3.38 3.38
05-Jun-98 100 3.44 3.44 3.44
04-Jun-98 2,000 3.50 3.50 3.50
03-Jun-98 100 3.63 3.63 3.63
02-Jun-98 0 3.81 3.44 3.63
01-Jun-98 0 3.75 3.25 3.50
29-May-98 2,000 3.63 3.56 3.63
28-May-98 100 3.44 3.44 3.44
27-May-98 0 3.63 3.31 3.47
26-May-98 0 3.56 3.31 3.44
22-May-98 0 3.56 3.25 3.41
21-May-98 0 3.50 3.06 3.28
20-May-98 0 3.50 3.06 3.28
19-May-98 100 3.44 3.44 3.44
18-May-98 1,100 3.50 3.38 3.38
15-May-98 0 3.75 3.44 3.59
14-May-98 0 3.75 3.44 3.59
13-May-98 0 3.81 3.44 3.63
12-May-98 700 3.63 3.63 3.63
11-May-98 0 3.69 3.38 3.53
</TABLE>
<PAGE> 108
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
08-May-98 0 3.75 3.38 3.56
07-May-98 0 3.63 3.38 3.50
06-May-98 600 3.50 3.50 3.50
05-May-98 0 3.69 3.44 3.56
04-May-98 100 3.56 3.56 3.56
01-May-98 2,500 3.63 3.50 3.63
30-Apr-98 4,200 3.44 3.38 3.44
29-Apr-98 2,700 3.38 3.25 3.38
28-Apr-98 600 3.13 3.13 3.13
27-Apr-98 0 3.13 2.81 2.97
24-Apr-98 100 3.00 3.00 3.00
23-Apr-98 0 3.19 2.81 3.00
22-Apr-98 0 3.19 2.81 3.00
21-Apr-98 0 3.13 2.69 2.91
20-Apr-98 0 3.19 2.81 3.00
17-Apr-98 200 3.00 3.00 3.00
16-Apr-98 100 3.31 3.31 3.31
15-Apr-98 100 3.38 3.38 3.38
14-Apr-98 4,800 3.38 3.00 3.25
13-Apr-98 2,500 3.00 3.00 3.00
09-Apr-98 100 3.13 3.13 3.13
08-Apr-98 0 3.44 2.94 3.19
07-Apr-98 400 3.31 3.25 3.25
06-Apr-98 0 3.44 3.06 3.25
03-Apr-98 0 3.50 3.25 3.38
02-Apr-98 500 3.44 3.31 3.31
01-Apr-98 800 3.44 3.31 3.44
31-Mar-98 11,400 3.44 3.19 3.44
30-Mar-98 2,500 3.19 2.94 3.06
</TABLE>
<PAGE> 109
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
27-Mar-98 0 3.56 3.19 3.38
26-Mar-98 0 3.56 3.19 3.38
25-Mar-98 300 3.38 3.38 3.38
24-Mar-98 0 3.88 3.13 3.50
23-Mar-98 1,800 3.50 3.38 3.50
20-Mar-98 3,300 3.44 3.31 3.44
19-Mar-98 0 3.50 3.25 3.38
18-Mar-98 0 3.56 3.25 3.41
17-Mar-98 9,000 3.50 3.31 3.31
16-Mar-98 0 3.81 3.44 3.63
13-Mar-98 200 3.50 3.50 3.50
12-Mar-98 2,000 3.50 3.50 3.50
11-Mar-98 900 3.50 3.50 3.50
10-Mar-98 700 3.50 3.50 3.50
09-Mar-98 0 3.81 3.44 3.63
06-Mar-98 0 3.81 3.44 3.63
05-Mar-98 100 3.63 3.63 3.63
04-Mar-98 400 3.69 3.69 3.69
03-Mar-98 0 3.94 3.63 3.78
02-Mar-98 0 3.94 3.56 3.75
27-Feb-98 5,700 3.75 3.50 3.63
26-Feb-98 0 3.69 3.31 3.50
25-Feb-98 300 3.50 3.50 3.50
24-Feb-98 0 3.69 3.38 3.53
23-Feb-98 600 3.56 3.50 3.56
20-Feb-98 0 3.63 3.25 3.44
19-Feb-98 0 3.69 3.44 3.56
18-Feb-98 3,300 3.63 3.50 3.56
17-Feb-98 3,500 3.63 3.63 3.63
</TABLE>
<PAGE> 110
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
13-Feb-98 4,400 3.69 3.63 3.69
12-Feb-98 0 3.63 3.13 3.38
11-Feb-98 1,600 3.50 3.50 3.50
10-Feb-98 2,600 3.81 3.63 3.63
09-Feb-98 800 3.75 3.75 3.75
06-Feb-98 1,900 3.81 3.75 3.75
05-Feb-98 6,300 3.88 3.38 3.88
04-Feb-98 8,000 3.38 3.25 3.38
03-Feb-98 3,000 3.25 3.25 3.25
02-Feb-98 400 3.13 3.13 3.13
30-Jan-98 2,000 3.00 2.88 3.00
29-Jan-98 1,000 2.69 2.69 2.69
28-Jan-98 0 3.06 2.69 2.88
27-Jan-98 0 3.00 2.50 2.75
26-Jan-98 400 2.75 2.75 2.75
23-Jan-98 0 2.94 2.56 2.75
22-Jan-98 1,600 2.75 2.75 2.75
21-Jan-98 100 2.75 2.75 2.75
20-Jan-98 300 2.88 2.88 2.88
16-Jan-98 100 2.88 2.88 2.88
15-Jan-98 0 3.06 2.69 2.88
14-Jan-98 600 2.88 2.88 2.88
13-Jan-98 1,300 2.88 2.75 2.75
12-Jan-98 500 2.63 2.63 2.63
09-Jan-98 0 2.94 2.56 2.75
08-Jan-98 0 2.88 2.56 2.72
07-Jan-98 100 2.75 2.75 2.75
06-Jan-98 4,100 2.88 2.63 2.75
05-Jan-98 0 2.81 2.44 2.63
</TABLE>
<PAGE> 111
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
02-Jan-98 500 2.63 2.63 2.63
31-Dec-97 5,000 2.75 2.63 2.75
30-Dec-97 0 2.63 2.19 2.41
29-Dec-97 1,900 2.38 2.38 2.38
26-Dec-97 0 2.69 2.31 2.50
24-Dec-97 100 2.38 2.38 2.38
23-Dec-97 300 2.38 2.38 2.38
22-Dec-97 10,100 2.38 2.38 2.38
19-Dec-97 0 2.63 2.31 2.47
18-Dec-97 200 2.38 2.38 2.38
17-Dec-97 0 2.69 2.38 2.53
16-Dec-97 0 2.69 2.31 2.50
15-Dec-97 0 2.75 2.31 2.53
12-Dec-97 100 2.44 2.44 2.44
11-Dec-97 0 2.69 2.31 2.50
10-Dec-97 0 2.56 2.38 2.47
09-Dec-97 0 2.69 2.38 2.53
08-Dec-97 3,300 2.50 2.44 2.44
05-Dec-97 0 2.81 2.44 2.63
04-Dec-97 0 2.81 2.44 2.63
03-Dec-97 2,000 2.50 2.50 2.50
02-Dec-97 3,500 2.63 2.63 2.63
01-Dec-97 0 2.75 2.50 2.63
28-Nov-97 9,000 2.75 2.38 2.75
26-Nov-97 3,500 2.50 2.38 2.50
25-Nov-97 1,500 2.44 2.44 2.44
24-Nov-97 200 2.44 2.44 2.44
21-Nov-97 0 2.69 2.44 2.56
20-Nov-97 2,000 2.44 2.44 2.44
</TABLE>
<PAGE> 112
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
19-Nov-97 100 2.44 2.44 2.44
18-Nov-97 0 2.69 2.38 2.53
17-Nov-97 1,400 2.44 2.44 2.44
14-Nov-97 1,700 2.38 2.38 2.38
13-Nov-97 0 2.56 2.31 2.44
12-Nov-97 500 2.38 2.38 2.38
11-Nov-97 1,500 2.38 2.38 2.38
10-Nov-97 0 2.56 2.38 2.47
07-Nov-97 500 2.50 2.50 2.50
06-Nov-97 0 2.75 2.44 2.59
05-Nov-97 0 2.75 2.44 2.59
04-Nov-97 100 2.63 2.63 2.63
03-Nov-97 0 2.81 2.38 2.59
31-Oct-97 5,000 2.69 2.63 2.69
30-Oct-97 100 2.38 2.38 2.38
29-Oct-97 0 2.63 2.38 2.50
28-Oct-97 5,600 2.38 2.13 2.38
27-Oct-97 0 2.63 2.13 2.38
24-Oct-97 0 2.69 2.25 2.47
23-Oct-97 100 2.38 2.38 2.38
22-Oct-97 0 2.69 2.38 2.53
21-Oct-97 0 2.75 2.50 2.63
20-Oct-97 0 2.63 2.38 2.50
17-Oct-97 0 2.63 2.38 2.50
16-Oct-97 500 2.50 2.50 2.50
15-Oct-97 1,200 2.50 2.50 2.50
14-Oct-97 0 2.75 2.50 2.63
13-Oct-97 0 2.75 2.50 2.63
10-Oct-97 0 2.75 2.44 2.59
</TABLE>
<PAGE> 113
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
09-Oct-97 0 2.75 2.44 2.59
08-Oct-97 5,600 2.69 2.63 2.63
07-Oct-97 200 2.56 2.56 2.56
06-Oct-97 0 2.75 2.50 2.63
03-Oct-97 0 2.75 2.50 2.63
02-Oct-97 0 2.81 2.44 2.63
01-Oct-97 200 2.63 2.63 2.63
30-Sep-97 4,100 2.75 2.50 2.75
29-Sep-97 0 2.63 2.38 2.50
26-Sep-97 8,900 2.50 2.50 2.50
25-Sep-97 0 2.69 2.50 2.59
24-Sep-97 0 2.75 2.50 2.63
23-Sep-97 200 2.50 2.50 2.50
22-Sep-97 0 2.75 2.50 2.63
19-Sep-97 0 2.81 2.44 2.63
18-Sep-97 0 2.75 2.50 2.63
17-Sep-97 1,300 2.75 2.63 2.63
16-Sep-97 0 2.81 2.63 2.72
15-Sep-97 0 2.75 2.56 2.66
12-Sep-97 0 2.94 2.56 2.75
11-Sep-97 20,000 2.69 2.63 2.69
10-Sep-97 2,800 2.63 2.44 2.63
09-Sep-97 0 2.69 2.50 2.59
08-Sep-97 1,000 2.63 2.63 2.63
05-Sep-97 300 2.50 2.50 2.50
04-Sep-97 2,000 2.56 2.56 2.56
03-Sep-97 2,200 2.69 2.69 2.69
02-Sep-97 0 2.75 2.50 2.63
29-Aug-97 2,300 2.63 2.38 2.63
</TABLE>
<PAGE> 114
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
28-Aug-97 0 2.63 2.31 2.47
27-Aug-97 0 2.69 2.13 2.41
26-Aug-97 0 2.63 2.38 2.50
25-Aug-97 0 2.63 2.31 2.47
22-Aug-97 900 2.50 2.50 2.50
21-Aug-97 0 2.69 2.44 2.56
20-Aug-97 0 2.69 2.44 2.56
19-Aug-97 0 2.69 2.50 2.59
18-Aug-97 0 2.75 2.50 2.63
15-Aug-97 0 2.75 2.44 2.59
14-Aug-97 0 2.69 2.50 2.59
13-Aug-97 0 2.69 2.44 2.56
12-Aug-97 100 2.63 2.63 2.63
11-Aug-97 0 2.69 2.50 2.59
08-Aug-97 0 2.75 2.50 2.63
07-Aug-97 500 2.63 2.63 2.63
06-Aug-97 14,100 2.63 2.63 2.63
05-Aug-97 0 2.94 2.56 2.75
04-Aug-97 0 2.75 2.50 2.63
01-Aug-97 600 2.63 2.63 2.63
31-Jul-97 1,400 2.63 2.63 2.63
30-Jul-97 0 2.81 2.50 2.66
29-Jul-97 600 2.69 2.69 2.69
28-Jul-97 500 2.75 2.75 2.75
25-Jul-97 900 2.81 2.81 2.81
24-Jul-97 5,800 2.94 2.94 2.94
23-Jul-97 900 2.69 2.63 2.69
22-Jul-97 400 2.31 2.31 2.31
21-Jul-97 0 2.50 2.25 2.38
</TABLE>
<PAGE> 115
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
18-Jul-97 100 2.31 2.31 2.31
17-Jul-97 100 2.31 2.31 2.31
16-Jul-97 0 2.50 2.31 2.41
15-Jul-97 10,700 2.31 2.13 2.25
14-Jul-97 500 2.19 2.19 2.19
11-Jul-97 100 2.31 2.31 2.31
10-Jul-97 0 2.44 2.06 2.25
09-Jul-97 0 2.50 2.00 2.25
08-Jul-97 0 2.44 2.13 2.28
07-Jul-97 500 2.38 2.31 2.31
03-Jul-97 0 2.63 2.13 2.38
02-Jul-97 4,000 2.44 2.44 2.44
01-Jul-97 2,000 2.31 2.31 2.31
30-Jun-97 200 2.31 2.31 2.31
27-Jun-97 0 2.69 2.31 2.50
26-Jun-97 0 2.56 2.31 2.44
25-Jun-97 1,600 2.31 2.31 2.31
24-Jun-97 1,600 2.44 2.31 2.31
23-Jun-97 300 2.44 2.38 2.38
20-Jun-97 1,100 2.44 2.38 2.44
19-Jun-97 0 2.44 2.19 2.31
18-Jun-97 0 2.50 2.19 2.34
17-Jun-97 100 2.13 2.13 2.13
16-Jun-97 0 2.63 2.13 2.38
13-Jun-97 5,400 2.25 2.25 2.25
12-Jun-97 0 2.44 2.13 2.28
11-Jun-97 0 2.44 2.13 2.28
10-Jun-97 0 2.50 2.13 2.31
09-Jun-97 15,000 2.25 2.25 2.25
</TABLE>
<PAGE> 116
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
06-Jun-97 10,000 2.13 2.13 2.13
05-Jun-97 0 2.31 2.13 2.22
04-Jun-97 100 2.13 2.13 2.13
03-Jun-97 3,100 2.13 2.13 2.13
02-Jun-97 0 2.25 2.06 2.16
30-May-97 0 2.25 2.06 2.16
29-May-97 15,800 2.19 2.19 2.19
28-May-97 3,500 2.06 2.00 2.06
27-May-97 1,400 2.06 2.06 2.06
23-May-97 2,200 2.13 2.06 2.06
22-May-97 200 2.19 2.19 2.19
21-May-97 23,900 2.19 2.13 2.19
20-May-97 25,500 2.13 2.00 2.13
19-May-97 1,500 1.75 1.56 1.75
16-May-97 0 1.75 1.50 1.63
15-May-97 400 1.56 1.56 1.56
14-May-97 100 1.56 1.56 1.56
13-May-97 0 1.69 1.56 1.63
12-May-97 100 1.56 1.56 1.56
09-May-97 500 1.56 1.56 1.56
08-May-97 200 1.63 1.63 1.63
07-May-97 100 1.63 1.63 1.63
06-May-97 100 1.63 1.63 1.63
05-May-97 0 1.75 1.31 1.53
02-May-97 0 1.75 1.31 1.53
01-May-97 1,000 1.69 1.63 1.69
30-Apr-97 3,400 1.69 1.63 1.69
29-Apr-97 1,700 1.69 1.56 1.69
28-Apr-97 0 1.69 1.50 1.59
</TABLE>
<PAGE> 117
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
25-Apr-97 0 1.75 1.50 1.63
24-Apr-97 500 1.56 1.56 1.56
23-Apr-97 0 1.88 1.56 1.72
22-Apr-97 0 1.69 1.56 1.63
21-Apr-97 0 1.69 1.50 1.59
18-Apr-97 1,200 1.56 1.56 1.56
17-Apr-97 3,500 1.81 1.63 1.63
16-Apr-97 0 1.81 1.69 1.75
15-Apr-97 0 1.81 1.69 1.75
14-Apr-97 200 1.69 1.69 1.69
11-Apr-97 0 1.81 1.56 1.69
10-Apr-97 0 1.81 1.69 1.75
09-Apr-97 0 1.88 1.56 1.72
08-Apr-97 0 1.81 1.63 1.72
07-Apr-97 800 1.75 1.75 1.75
04-Apr-97 200 1.75 1.75 1.75
03-Apr-97 2,000 1.75 1.75 1.75
02-Apr-97 1,000 1.81 1.75 1.75
01-Apr-97 0 1.81 1.69 1.75
31-Mar-97 3,000 1.81 1.81 1.81
27-Mar-97 800 1.69 1.69 1.69
26-Mar-97 0 1.81 1.69 1.75
25-Mar-97 700 1.75 1.69 1.69
24-Mar-97 0 1.94 1.75 1.84
21-Mar-97 500 1.69 1.69 1.69
20-Mar-97 0 1.88 1.69 1.78
19-Mar-97 0 1.94 1.69 1.81
18-Mar-97 1,100 1.69 1.69 1.69
17-Mar-97 400 1.75 1.69 1.75
</TABLE>
<PAGE> 118
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
14-Mar-97 2,300 1.75 1.75 1.75
13-Mar-97 0 1.88 1.69 1.78
12-Mar-97 500 1.75 1.75 1.75
11-Mar-97 0 1.94 1.69 1.81
10-Mar-97 1,500 1.88 1.81 1.81
07-Mar-97 0 2.06 1.88 1.97
06-Mar-97 1,800 2.00 2.00 2.00
05-Mar-97 200 1.88 1.88 1.88
04-Mar-97 13,200 1.94 1.75 1.94
03-Mar-97 3,000 1.94 1.94 1.94
28-Feb-97 17,500 1.88 1.81 1.88
27-Feb-97 1,400 1.88 1.81 1.81
26-Feb-97 0 1.88 1.69 1.78
25-Feb-97 300 1.75 1.75 1.75
24-Feb-97 5,000 1.88 1.75 1.88
21-Feb-97 0 1.88 1.69 1.78
20-Feb-97 5,200 1.81 1.75 1.75
19-Feb-97 0 1.88 1.69 1.78
18-Feb-97 5,500 1.81 1.75 1.75
14-Feb-97 0 1.94 1.69 1.81
13-Feb-97 5,000 1.88 1.88 1.88
12-Feb-97 0 1.88 1.69 1.78
11-Feb-97 1,400 1.75 1.75 1.75
10-Feb-97 1,300 1.81 1.75 1.75
07-Feb-97 1,400 1.69 1.69 1.69
06-Feb-97 0 1.75 1.56 1.66
05-Feb-97 10,200 1.63 1.56 1.63
04-Feb-97 0 1.75 1.50 1.63
03-Feb-97 900 1.63 1.63 1.63
</TABLE>
<PAGE> 119
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
31-Jan-97 3,500 1.75 1.63 1.75
30-Jan-97 4,200 1.69 1.56 1.69
29-Jan-97 1,100 1.69 1.69 1.69
28-Jan-97 100 1.69 1.69 1.69
27-Jan-97 0 1.75 1.63 1.69
24-Jan-97 0 1.75 1.63 1.69
23-Jan-97 0 1.75 1.56 1.66
22-Jan-97 2,500 1.75 1.75 1.75
21-Jan-97 2,400 1.63 1.63 1.63
20-Jan-97 100 1.69 1.69 1.69
17-Jan-97 0 1.81 1.63 1.72
16-Jan-97 0 1.88 1.63 1.75
15-Jan-97 3,000 1.75 1.75 1.75
14-Jan-97 2,200 1.63 1.63 1.63
13-Jan-97 7,900 1.69 1.63 1.69
10-Jan-97 500 1.63 1.63 1.63
09-Jan-97 0 1.69 1.56 1.63
08-Jan-97 4,100 1.69 1.69 1.69
07-Jan-97 0 1.88 1.75 1.81
06-Jan-97 0 1.94 1.75 1.84
03-Jan-97 2,100 1.88 1.75 1.88
02-Jan-97 0 1.94 1.69 1.81
---------------------------------------------------------------------
AVERAGE 1,370 2.72 2.56 2.64
=====================================================================
</TABLE>
<PAGE> 120
Trading and Equity Analysis
- --------------------------------------------------------------------------------
Market Value of Equity as a Percentage of Book Value of Equity
Quarterly Since February 1996
CHART
50
<PAGE> 121
Trading and Equity Analysis
- --------------------------------------------------------------------------------
Total Capitalization to EBIT
Quarterly Since February 1996
CHART
51
<PAGE> 122
Trading and Equity Analysis
- --------------------------------------------------------------------------------
Total Capitalization to EBITDA
Quarterly Since February 1996
CHART
52
<PAGE> 123
Trading and Equity Analysis
- --------------------------------------------------------------------------------
UNITED FOODS CLASS A AND CLASS B VS. S&P 500 AND RUSSELL 2000 INDEX
CHART
53
<PAGE> 124
Trading and Equity Analysis
- --------------------------------------------------------------------------------
Selected Financial Data
Since 1989
(in 000s, except per share data and ratios)
<TABLE>
<CAPTION>
1989 1990 1991 (3) 1992 1993 1994
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Combined Sales (Adjusted) $157,286 $168,935 $171,145 $154,368 $156,318 $175,796
Sales (Frozen Foods) 115,222 123,919 125,540 113,941 116,399 133,617
Sales (Mushrooms) 34,569 36,855 37,337 40,347 40,207 42,559
Combined EBITDA (1) 9,340 19,818 16,599 10,918 9,018 9,291
% of Sales 5.94% 11.73% 9.70% 7.07% 5.77% 5.29%
EBITDA (Frozen Foods) 11,988 17,532 17,761 16,120 4,629 10,799
% of Sales 10.40% 14.15% 14.15% 14.15% 3.98% 8.08%
EBITDA (Mushrooms) 4,261 4,171 4,226 4,566 4,120 4,670
% of Sales 12.33% 11.32% 11.32% 11.32% 10.25% 10.97%
Net Income (1,153) 8,411 5,799 35 (2,116) 90
EPS (0.09) 0.63 0.44 -- (0.16) 0.01
Shares Outstanding 12,724 12,755 12,855 12,871 12,871 12,871
Book Value 44,776 53,225 56,417 59,645 57,529 57,619
Highest Stock Price During LTM 3.75 3.25 2.38 2.00 1.94 2.50
Lowest Stock Price During LTM 1.25 1.50 1.25 1.38 1.50 1.50
Equity Value (Highest Price) 47,715 41,454 30,531 25,742 24,938 32,178
Equity Value (Lowest Price) 15,905 19,133 16,069 17,698 19,307 19,307
Highest Price/Earnings - LTM NM x 5.16 x 5.40 x NM x NM x 250.00 x
Lowest Price/Earnings - LTM NM 2.38 2.84 NM NM 150.00
Highest Price/Earnings - Forward 5.95 7.39 NM NM 193.75 13.16
Lowest Price/Earnings - Forward 1.98 3.41 NM NM 150.00 7.89
Equity Value (Highest Price)/Book Value - LTM 1.07 0.78 0.54 0.43 0.43 0.56
Equity Value (Lowest Price)/Book Value - LTM 0.36 0.36 0.28 0.30 0.34 0.34
<CAPTION>
1995 1996 1997 1998
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Combined Sales (Adjusted) $190,256 $191,714 $195,820 $195,087
Sales (Frozen Foods) 139,988 145,288 152,494 152,076
Sales (Mushrooms) 50,669 48,174 44,242 44,684
Combined EBITDA (1) 13,621 10,276 12,531 12,127
% of Sales 7.16% 5.36% 6.40% 6.22%
EBITDA (Frozen Foods) 10,849 12,272 16,740 18,185
% of Sales 7.75% 8.45% 10.98% 11.96%
EBITDA (Mushrooms) 8,945 9,553 2,224 5,927
% of Sales 17.65% 19.83% 5.03% 13.26%
Net Income 2,402 (660) 922 460
EPS 0.19 (0.06) 0.08 0.06
Shares Outstanding 11,798 10,810 10,810 6,810
Book Value 57,440 54,534 55,456 45,748
Highest Stock Price During LTM 2.63 2.25 3.00 4.00
Lowest Stock Price During LTM 1.50 1.38 1.38 2.31
Equity Value (Highest Price) 30,970 24,323 32,430 27,240
Equity Value (Lowest Price) 17,697 14,864 14,864 15,748
Highest Price/Earnings - LTM 13.82 x NM x 37.50 x 66.67 x
Lowest Price/Earnings - LTM 7.89 NM 17.19 38.54
Highest Price/Earnings - Forward NM 28.13 50.00 NM
Lowest Price/Earnings - Forward NM 17.19 22.92 NM
Equity Value (Highest Price)/Book Value - LTM 0.54 0.45 0.58 0.60
Equity Value (Lowest Price)/Book Value - LTM 0.31 0.27 0.27 0.34
</TABLE>
(1) Combined EBITDA includes Corporate Loss
(2) Includes reduction of income taxes from carryforward of prior year operating
losses.
(3) 1991 Sales and EBITDA are estimated as a percent of sales because company
financials do not break out mushrooms and frozen foods.
54
<PAGE> 125
Liquidation Analysis
- --------------------------------------------------------------------------------
Liquidation Value
Based on November 30, 1998 Balance Sheet
<TABLE>
<CAPTION>
Actual Management Theoretical
------ ---------- -----------
<S> <C> <C> <C>
ASSETS
Cash $ 861 $ 861 $ 861
Accounts Receivable 21,121 20,065 20,065
Inventories
Finished Product 38,210 19,105 24,837
Raw Material 1,425 356 926
Growing Crops 1,973 -- --
Packaging Materials 1,246 -- --
Sundry Supplies 354 -- --
Prepaid Expenses 2,041 -- --
Refundable Taxes -- -- --
Deferred Income Taxes 1,249 -- --
Net PP&E 53,186 43,132 43,132
Other assets
Notes & Accounts Receivable 55 55 55
Deferred Charges & Other Assets 1,197 -- --
Property & Equipment Held For 804 804 804
Disposal, Est. Realiz. Value
Total Assets 123,722 84,378 90,680
========= ========= =========
LIABILITIES
Current Liabilities
Notes Payable to Banks and Others -- -- --
Accounts Payable 18,159 18,159 18,159
Accrued Liabilities 9,106 9,106 9,106
Accrued (Prepaid) Burden 1,398 1,398 1,398
Income Taxes Payable (45) (45) (45)
Deferred Income Taxes - Current -- -- --
Current Maturities of L-T-D 3,503 3,503 3,503
Long-term Debt Less Current Maturities 31,722 31,722 31,722
Long-term Revolving Loan 8,990 8,990 8,990
Deferred Income Taxes - Long-term 4,710 -- --
Total Liabilities 77,543 72,833 72,833
--------- --------- ---------
Equity 46,179 11,545 17,847
--------- --------- ---------
Total Liabilities and Equity 123,722 84,378 90,680
========= ========= =========
Shares Outstanding 6,810 6,810 6,810
------------------------------------------
Book Value Per Share $ 6.78 $ 1.70 $ 2.62
------------------------------------------
</TABLE>
55
<PAGE> 1
Exhibit 17(b)(6)
Information for:
Special Committee of the Board of Directors of
UNITED FOODS
December 21, 1998
J.C. Bradford & Co.
330 Commerce Street
Nashville, TN 37201
(800)522-4750
<PAGE> 2
Table of Contents
United Foods Valuation
I. Transaction Overview
II. Summary of Analysis
III. Comparable Company Analysis
IV. Comparable Transaction Analysis
V. Discounted Cash Flow Analysis
VI. Premium Analysis
VII. Stock Price Analysis
VIII. Trading and Equity Analysis
IX. Liquidation Analysis
J.C. Bradford & Co.
<PAGE> 3
Transaction Overview
- Going Private Transaction - Led by CEO/Chairman Jim Tankersley
- Tankersley Group (Including Jim Tankersley, his wife and his
children) to Acquire the Remaining Shares of the Company
- $3.50 per Share (16% Increase Over Initial Offer of $3.00 per Share)
- Tankersley Group Acquiring Approximately 4.3 million shares
- Appraisal Rights - Up to 250,000 Shares
- Cleansing Vote - All Shareholders Not Part of Tankersley Group
- Financing Contingency
- Deal Contingent Upon No Material Adverse Change in the Business
- Company Pays Transaction Expenses if Deal Does Not Close Unless
Tankersley Group Backs Out for Reasons Unrelated to Financing and
Material Adverse Changes
J.C. Bradford & Co.
1
<PAGE> 4
Transaction Overview
TRANSACTION MULTIPLES:
<TABLE>
<CAPTION>
UNITED FOODS VALUATION
<S> <C>
Purchase Price for United Foods Equity $ 3.50
Fully Diluted Shares Outstanding 6,810
Total Equity Consideration $ 23,835
--------
Plus: Net Debt as of 8/30/98 $ 42,622
Total Enterprise Valuation $ 66,457
========
</TABLE>
<TABLE>
<CAPTION>
MULTIPLE OF UF
8/30/98 TOTAL ENTERPRISE VALUE
--------- ----------------------
<S> <C> <C>
Revenue $ 201,367 0.3x
EBITDA $ 12,842 5.2x
</TABLE>
<TABLE>
<CAPTION>
Multiple of UF
Total Equity Consideration
--------------------------
<S> <C> <C>
LTM EPS $ 0.11 30.6x
1998 Est. Cal. EPS 0.11 33.1x
1999 Est. Cal. EPS 0.09 38.9x
</TABLE>
J.C. Bradford & Co.
2
<PAGE> 5
TRANSACTION OVERVIEW - ORIGIN OF TRANSACTION
SEPTEMBER 16, 1998
The chairman and chief executive officer of United Foods, Inc., James I.
Tankersley, and his family announced that they were going to acquire the
remaining shares of the Company's common stock that are not already owned by Mr.
Tankersley, his wife or his children (The Tankersley Group) for $3.00 per share.
On receiving the proposal, the Board of Directors of the Company appointed two
outside directors, John Wilder and Joe Geary, to a Special Committee. The Board
charged the committee with evaluating whether the proposal is in the best
interests of the Company and its shareholders other than the Tankersley Group.
The Special Committee employed J.C. Bradford to assist in evaluation of the
fairness of the proposed transaction.
J.C. Bradford & Co.
3
<PAGE> 6
TRANSACTION OVERVIEW - PROCESS AND DEVELOPMENT
<TABLE>
<CAPTION>
Date Location Attendees Purpose
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
9/25/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Special Committee hires J.C. Bradford & Co. to
Doramus, Trauger, & Ney render fairness opinion.
J.C. Bradford & Co.
9/29/98 United Foods, Inc. - Bells, TN Jim Tankersley Due diligence with Company management
United Foods, Inc.
J.C. Bradford & Co.
10/2/98 J.C. Bradford & Co. - Nashville, TN United Foods, Inc. Due diligence with Company management
Doramus, Trauger, & Ney
J.C. Bradford & Co.
10/5/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Presentation of initial findings, preliminary
Doramus, Trauger, & Ney valuation
J.C. Bradford & Co.
10/14/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Special Committee authorizes J.C. Bradford
Doramus, Trauger, & Ney & Co. to negotiate for higher price for
J.C. Bradford & Co. minority shareholders.
10/20/98 United Foods, Inc. - Bells, TN Jim Tankersley Negotiation Meeting I
Doramus, Trauger, & Ney
J.C. Bradford & Co.
10/27/98 J.C. Bradford & Co. - Nashville, TN Jim Tankersley Negotiation Meeting II
Doramus, Trauger, & Ney
J.C. Bradford & Co.
11/3/98 J.C. Bradford & Co. - Nashville, TN Jim Tankersley Negotiation Meeting III
Doramus, Trauger, & Ney
J.C. Bradford & Co.
11/18/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Presentation of negotiations
Doramus, Trauger, & Ney
J.C. Bradford & Co.
12/8/98 J.C. Bradford & Co. - Nashville, TN Special Committee Update of negotiations
Doramus, Trauger, & Ney
J.C. Bradford & Co.
12/15/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee Special Committee authorizes deal @ $3.50 per
Doramus, Trauger, & Ney share, with cleansing vote, appraisal rights
J.C. Bradford & Co. and other contingencies.
12/21/98 Doramus, Trauger, & Ney - Nashville, TN Special Committee J.C. Bradford & Co. delivers fairness opinion
Doramus, Trauger, & Ney
J.C. Bradford & Co.
</TABLE>
4 J.C. Bradford & Co.
<PAGE> 7
TRANSACTION OVERVIEW - PROCESS AND DEVELOPMENT
PRICE NEGOTIATIONS
On three separate occasions, J.C. Bradford & Co and the Counsel for the Special
Committee met with Tankersley Group to negotiate the offer price up from $3.00
per share.
J.C. Bradford & Co. presented its findings to the Tankersley Group and argued
that based upon its analysis a higher price was in order.
The Tankersley Group proposed that the Special Committee and its representatives
present a price that would be fair from a financial point of view.
The Special Committee and J.C. Bradford & Co. initially proposed $3.85 per
share. In subsequent negotiations, the Tankersley Group and the Special
Committee agreed to $3.50 per share (a 16% premium to original offer).
NEGOTIATION OF OTHER TERMS
Original deal did not specifically state other terms and conditions.
J.C. Bradford & Special Committee proposed a cleansing vote that would not
include members of the Tankersley family and appraisal rights.
The final terms include a cleansing vote that includes all minority shareholders
and appraisal rights limited to 250,000 shares.
5 J.C. Bradford & Co.
<PAGE> 8
TRANSACTION OVERVIEW - REASONS FOR TRANSACTION
- - Overcapacity, consolidation of competitors and customers , slotting
pressures and the prominence of farmer cooperatives have created severe
margin and market share pressures in the industry. These circumstances
prevent public investors from placing an attractive multiple on the
Company's earnings. With inadequate return on investment for a public
company, and with little prospect for better stock prices, the Company
knows of only one other public company still primarily in the frozen
vegetable packaging business (i.e., Hanover Foods).
- - There is no liquidity for shares of the Company's common stock. Sale of
any significant number of shares has the effect of driving the price down
even further. Therefore, a "non-market" transaction would be best for the
public shareholders.
6 J.C. Bradford & Co.
<PAGE> 9
TRANSACTION OVERVIEW - REASONS FOR TRANSACTION
- - The Company has no current need for additional equity funds in order to
continue its operations. Therefore, it derives no advantage from remaining
a public company in terms of access to capital.
- - There is a cost to the Company of remaining registered and reporting under
the Securities Exchange Act of 1934, which cost would be avoided were the
Company to go private.
- - The Jim Tankersley Family does not wish to cause the Company to be sold to
or merged with an entity not controlled by them, and would not vote in
favor of such a transaction. Moreover, the Jim Tankersley Family believes
that the Merger Price is fair, from a financial point of view, to all of
the shareholders of the Company (other than the Jim Tankersley Family).
7 J.C. Bradford & Co.
<PAGE> 10
TRANSACTION OVERVIEW - PROJECTIONS
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH) PROJECTED INCOME STATEMENTS
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Historical Projected
12/16/98 2:47 PM 1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $ 211,839 $ 211,839 $ 211,839 $ 211,839 $ 211,839
Cost of sales 172,486 172,486 172,486 172,486 172,486 172,486
--------- --------- --------- --------- --------- ---------
Gross profit 39,353 39,353 39,353 39,353 39,353 39,353
General and administrative, net dep 10,093 10,093 10,093 10,093 10,093 10,093
Direct selling expenses 16,322 16,322 16,322 16,322 16,322 16,322
--------- --------- --------- --------- --------- ---------
Total operating expenses 26,415 26,415 26,415 26,415 26,415 26,415
EBITDA 12,938 12,938 12,938 12,938 12,938 12,938
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- --------- --------- --------- --------- ---------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 5,670 5,670 5,670 5,670 5,670
Interest expense 4,179 4,511 4,304 4,186 4,110 4,031
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense -- -- -- -- -- --
Other (income) (4) -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Other expenses (income) 4,175 4,511 4,304 4,186 4,110 4,031
Pre-tax income 1,495 1,159 1,366 1,484 1,560 1,639
Provision for income taxes 575 440 519 564 593 623
--------- --------- --------- --------- --------- ---------
Net income $ 920 $ 718 $ 847 $ 920 $ 967 $ 1,016
========= ========= ========= ========= ========= =========
</TABLE>
8 J.C. Bradford & Co.
<PAGE> 11
SUMMARY OF ANALYSIS - STRENGTHS OF $3.50 OFFER
- Poor industry dynamics imply little future growth and increasing
competition
- 40% premium to stock price the day before the announcement
- Comparable company earnings multiples imply valuation significantly
below $3.50 (offer represents over 30x 1998 Calendar EPS)
- DCF under reasonable assumptions yields a price range of $1.80 to
$2.75
- Due to Tankersley control, no possibility of other buyers
- Only 25-30% of days during 1998 when the stock traded did the price
reach $3.50
- Company completed a $2.50/share tender offer in July 1997 for 4.0
million aggregate Class A & B Shares (original offer was for 2.0
million shares)
9 J.C. Bradford & Co.
<PAGE> 12
SUMMARY OF ANALYSIS - WEAKNESSES OF $3.50 OFFER
- Offer is roughly half of book value
- Enterprise Value/ LTM EBITDA is 5.2x, low for typical public and
private company valuations
- Comparable transaction analysis yields valuations above $3.50 per
share
10 J.C. Bradford & Co.
<PAGE> 13
SUMMARY OF ANALYSIS - COMPARABLE COMPANY ANALYSIS
COMPARABLE COMPANY ANALYSIS examines the consideration to be paid for United
Foods compared to market valuations of publicly held food distribution
companies.
<TABLE>
<CAPTION>
Adjusted Average
Comparable Company Transaction % Premium/
Multiple Basis Multiple Multiple (Discount)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
LTM Earnings 17.5x 30.6x 74.6%
1998 Earnings Multiple 17.3x 33.1x 91.6%
1999 Earnings Multiple 14.3x 38.9x 172.7%
LTM EBITDA 8.1x 5.2x (35.9%)
Book Value 2.0x 0.5x (74.4%)
</TABLE>
Financial and operating data were reviewed in connection with this analysis for
the following companies in the food distribution industry :
Chiquita Brands Intl. Michael Foods, Inc. Sylvan, Inc.
Dean Foods Co. Performance Food Group Co. Tyson Foods, Inc.
Fresh America Corp. Seneca Foods Corp. Vlasic Foods International
Hanover Foods Corp. Smithfield Companies, Inc.
Mccormick & Co. Smucker (Jm) Co.
11 J.C. Bradford & Co.
<PAGE> 14
SUMMARY OF ANALYSIS - COMPARABLE TRANSACTION ANALYSIS
COMPARABLE TRANSACTION ANALYSIS examines the consideration to be paid for United
Foods, Inc. compared to multiples at which food distribution companies have been
acquired.
<TABLE>
<CAPTION>
Average
Comparable
Transaction Transaction % Premium/
Multiple Basis Multiple Multiple (Discount)
- ----------------------- ----------- ----------- ----------
<S> <C> <C> <C>
Book Value Multiple 3.6x 2.0x (44.6%)
LTM Net Income Multiple 23.9x 15.6x (34.8%)
LTM EBITDA Multiple 12.4x 8.0x (35.7%)
</TABLE>
12 J.C. Bradford & Co.
<PAGE> 15
SUMMARY OF ANALYSIS - DISCOUNTED CASH FLOW ANALYSIS
DISCOUNTED CASH FLOW ANALYSIS examines the cash flows of United Foods, Inc. for
the next five years.
The following chart compares the results of this methodology to the price per
share being paid in the transaction:
UNITED FOODS, INC.
SUMMARY OF DISCOUNTED CASH FLOW METHODOLOGY
CAPITAL EXPENDITURES - 100% OF MANAGEMENT'S PROJECTIONS
<TABLE>
<CAPTION>
IMPLIED CURRENT EQUITY VALUATION PREMIUM/
-------------------------------- ACQUISITION (DISCOUNT) TO
MINIMUM MAXIMUM AVERAGE PRICE THE AVERAGE
------- ------- ------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Cash Flow EBITDA Exit Multiple Method
Discount Range 8% and 10%
Multiple Range 5.0x - 7.0x
CURRENT PER SHARE VALUE - 0% GROWTH CASE(1) $ (0.11) $ 4.21 $ 1.84 $ 3.50 90.1%
CURRENT PER SHARE VALUE - 2.5% GROWTH CASE(1) $ 0.42 $ 5.15 $ 2.56 $ 3.50 36.9%
</TABLE>
(1) Based on 6,809,929 shares outstanding.
13 J.C. Bradford & Co.
<PAGE> 16
SUMMARY OF ANALYSIS - PREMIUMS ANALYSIS
PREMIUMS ANALYSIS. The premium paid to United Food's current and recent trading
prices compares favorably to premiums paid in similar public cash transactions.
<TABLE>
<CAPTION>
PREMIUMS PAID % PREMIUM/
TRANSACTION (DISCOUNT)
1996 - 1998 PREMIUM(2) TO AVERAGE
----------- ----------- ----------
<S> <C> <C> <C> <C>
PURCHASE FOR CASH
1 Week Prior 36.7% 30.2% (6.5%)
1 Month Prior 42.8% 33.3% (9.5%)
</TABLE>
Source: Securities Data Company
(1) Premium period is relative to the close on the day of announcement.
(2) Assumes a closing date of 12/16/98. Price is for Class A.
14 J.C. Bradford & Co.
<PAGE> 17
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
COMPARABLE COMPANY SUMMARY VALUATION
OVERALL ADJUSTED AVERAGE MULTIPLES
(In thousands)
PRICE TO TRAILING EARNINGS MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM earnings ended 8/31/98 $ 779
Adjusted Average Multiple 17.52 x
-------
Valuation $13,650
-------
Valuation per Share (1) $ 2.00
-------
</TABLE>
PRICE TO CALENDAR 1998 EARNINGS MULTIPLE BASIS:
<TABLE>
<S> <C>
Estimated earnings ended 12/31/98 $ 843
Adjusted Average Multiple 17.25 x
-------
Valuation $14,552
-------
Valuation per Share (1) $ 2.14
-------
</TABLE>
PRICE TO CALENDAR 1999 EARNINGS MULTIPLE BASIS:(2)
<TABLE>
<S> <C>
Estimated earnings ended 12/31/99 $ 752
Adjusted Average Multiple 14.28 x
-------
Valuation $10,738
-------
Valuation per Share (1) $ 1.58
-------
</TABLE>
LTM EBITDA MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM EBITDA ended 8/31/98 $ 12,842
Adjusted Average Multiple 8.07 x
--------
103,692
Less total debt, net of cash 8/31/98 42,622
--------
Valuation $ 61,070
--------
Valuation per Share (1) $ 8.97
--------
</TABLE>
EQUITY TO BOOK VALUE MULTIPLE BASIS:
<TABLE>
<S> <C>
Estimated book value 8/31/98 $ 45,518
Adjusted Average Multiple 2.05 x
--------
Valuation $ 93,243
--------
Valuation per Share (1) $ 13.69
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(2) Based on 0% growth, base case projection.
At an offer price of $3.50, United Foods is valued above all comparable
companies as a multiple of Calendar 1998 EPS and Calendar 1999 EPS.
15 J.C. Bradford & Co.
<PAGE> 18
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
COMPARABLE COMPANY SUMMARY VALUATION
HANOVER FOODS MULTIPLES
(In thousands)
PRICE TO TRAILING EARNINGS MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM earnings ended 11/30/98 $ 1,332
Hanover Foods Multiple 4.69 x
-------
Valuation $ 6,240
-------
Valuation per Share (1) $ 0.92
-------
</TABLE>
LTM EBITDA MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM EBITDA ended 11/30/98 $ 13,258
Hanover Foods Multiple 3.80 x
---------
50,324
Less total debt, net of cash on 11/30/98 43,354
---------
Valuation $ 6,970
---------
Valuation per Share (1) $ 1.02
---------
</TABLE>
BOOK VALUE MULTIPLE BASIS:
<TABLE>
<S> <C>
Book Value as of 11/30/98 $ 46,179
Hanover Foods Multiple 0.71 x
---------
Valuation 32,858
Valuation per Share (1) $ 4.82
---------
</TABLE>
(1) Based on 6.8 million shares outstanding.
16 J.C. Bradford & Co.
<PAGE> 19
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
COMPARABLE COMPANY SUMMARY VALUATION
OVERALL ADJUSTED AVERAGE MULTIPLES - $500 OF COST SAVINGS
(In thousands)
PRICE TO TRAILING EARNINGS MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM earnings ended 8/31/98 $ 779
Plus: Cost Savings of $500 (Taxed at 39%) 305
Adjusted Earnings 1,084
Adjusted Average Multiple 17.52 x
--------
Valuation $ 18,995
--------
Valuation per Share (1) $ 2.79
--------
</TABLE>
PRICE TO CALENDAR 1998 EARNINGS MULTIPLE BASIS:
<TABLE>
<S> <C>
Estimated earnings ended 12/31/98 $ 843
Plus: Cost Savings of $500 (Taxed at 39%) 305
Adjusted Earnings 1,148
Adjusted Average Multiple 17.25 x
--------
Valuation $ 19,814
--------
Valuation per Share (1) $ 2.91
--------
</TABLE>
PRICE TO CALENDAR 1999 EARNINGS MULTIPLE BASIS:(2)
<TABLE>
<S> <C>
Estimated earnings ended 12/31/99 $ 752
Plus: Cost Savings of $500 (Taxed at 39%) 305
Adjusted Earnings 1,057
Adjusted Average Multiple 14.28 x
--------
Valuation $ 15,093
--------
Valuation per Share (1) $ 2.22
--------
</TABLE>
LTM EBITDA MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM EBITDA ended 8/31/98 $ 12,842
Plus: Cost Savings of $500 500
Adjusted EBITDA 13,342
Adjusted Average Multiple 8.07 x
---------
107,730
Less total debt, net of cash 8/31/98 42,622
Valuation $ 65,108
---------
Valuation per Share (1) $ 9.56
---------
</TABLE>
EQUITY TO BOOK VALUE MULTIPLE BASIS:
<TABLE>
<S> <C>
Estimated book value 8/31/98 $ 45,518
Adjusted Average Multiple 2.05 x
--------
Valuation $ 93,243
--------
Valuation per Share (1) $ 13.69
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(2) Based on 0% growth, base case projection.
At an offer price of $3.50, United Foods is valued above all comparable
companies as a multiple of Calendar 1998 EPS and Calendar 1999 EPS even with an
addback of $500,000 for cost savings.
17 J.C. Bradford & Co.
<PAGE> 20
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
COMPARABLE COMPANY SUMMARY VALUATION
HANOVER FOODS MULTIPLES - $500 OF COST SAVINGS
(In thousands)
PRICE TO TRAILING EARNINGS MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM earnings ended 11/30/98 $ 1,332
Plus: Cost Savings of $500 (Taxed at 39%) 305
Adjusted Earnings 1,637
Hanover Foods Multiple 4.69 x
-------
Valuation $ 7,669
-------
Valuation per Share (1) $ 1.13
-------
</TABLE>
LTM EBITDA MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM EBITDA ended 11/30/98 $ 13,258
Plus: Cost Savings of $500 500
Adjusted Earnings 13,758
Hanover Foods Multiple 3.80 x
--------
52,222
Less total debt, net of cash on 11/30/98 43,354
--------
Valuation $ 8,868
--------
Valuation per Share (1) $ 1.30
--------
</TABLE>
BOOK VALUE MULTIPLE BASIS:
<TABLE>
<S> <C>
Book Value as of 11/30/98 $ 46,179
Hanover Foods Multiple 0.71 x
--------
Valuation 32,858
--------
Valuation per Share (1) $ 4.82
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
18 J.C. Bradford & Co.
<PAGE> 21
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
COMPARABLE COMPANY SUMMARY VALUATION
OVERALL ADJUSTED AVERAGE MULTIPLES - $750 OF COST SAVINGS
(In thousands)
PRICE TO TRAILING EARNINGS MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM earnings ended 8/31/98 $ 779
Plus: Cost Savings of $750 (Taxed at 39%) 458
Adjusted Earnings 1,237
Adjusted Average Multiple 17.52 x
--------
Valuation $ 21,667
Valuation per Share (1) $ 3.18
--------
</TABLE>
PRICE TO CALENDAR 1998 EARNINGS MULTIPLE BASIS:
<TABLE>
<S> <C>
Estimated earnings ended 12/31/98 $ 843
Plus: Cost Savings of $750 (Taxed at 39%) 458
Adjusted Earnings 1,301
Adjusted Average Multiple 17.25 x
--------
Valuation $ 22,446
Valuation per Share (1) $ 3.30
--------
</TABLE>
PRICE TO CALENDAR 1999 EARNINGS MULTIPLE BASIS:(2)
<TABLE>
<S> <C>
Estimated earnings ended 12/31/99 $ 752
Plus: Cost Savings of $750 (Taxed at 39%) 458
Adjusted Earnings 1,210
Adjusted Average Multiple 14.28 x
--------
Valuation $ 17,271
Valuation per Share (1) $ 2.54
--------
</TABLE>
LTM EBITDA MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM EBITDA ended 8/31/98 $ 12,842
Plus: Cost Savings of $750 750
Adjusted EBITDA 13,592
Adjusted Average Multiple 8.07 x
---------
109,748
Less total debt, net of cash 8/31/98 42,622
---------
Valuation $ 67,126
Valuation per Share (1) $ 9.86
--------
</TABLE>
EQUITY TO BOOK VALUE MULTIPLE BASIS:
<TABLE>
<S> <C>
Estimated book value 8/31/98 $ 45,518
Adjusted Average Multiple 2.05 x
--------
Valuation $ 93,243
Valuation per Share (1) $ 13.69
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(2) Based on 0% growth, base case projection.
At an offer price of $3.50, United Foods is valued above all comparable
companies as a multiple of Calendar 1998 EPS and Calendar 1999 EPS even with an
addback of $750,000 for cost savings.
19 J.C. Bradford & Co.
<PAGE> 22
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
COMPARABLE COMPANY SUMMARY VALUATION
HANOVER FOODS MULTIPLES - $750 OF COST SAVINGS
(In thousands)
PRICE TO TRAILING EARNINGS MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM earnings ended 11/30/98 $ 1,332
Plus: Cost Savings of $750 (Taxed at 39%) 458
Adjusted Earnings 1,790
Hanover Foods Multiple 4.69 x
-------
Valuation $ 8,384
Valuation per Share (1) $ 1.23
-------
</TABLE>
LTM EBITDA MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM EBITDA ended 11/30/98 $ 13,258
Plus: Cost Savings of $750 750
Adjusted Earnings 14,008
Hanover Foods Multiple 3.80 x
--------
53,171
Less total debt, net of cash on 11/30/98 43,354
--------
Valuation $ 9,817
Valuation per Share (1) $ 1.44
-------
</TABLE>
BOOK VALUE MULTIPLE BASIS:
<TABLE>
<S> <C>
Book Value as of 11/30/98 $ 46,179
Hanover Foods Multiple 0.71 x
--------
32,858
Valuation per Share (1) $ 4.82
-------
</TABLE>
(1) Based on 6.8 million shares outstanding.
20 J.C. Bradford & Co.
<PAGE> 23
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
COMPARABLE COMPANY MARKET MULTIPLES
<TABLE>
<CAPTION>
5-Year
LTM LTM Cal. 1998 Cal. 1999 Projected 52 Week
Company Ticker End EPS Est. EPS Est. EPS(1) Growth Rate High Low
<S> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods UFD.A Aug 98 0.11 0.11 0.09 NA 4.00 2.25
Chiquita Brands Intl. CQB Sep 98 ($0.06) $0.81 $1.10 10.0% $ 16.38 $ 9.50
Dean Foods Co. DF Aug 98 2.63 2.58 2.86 13.8% 60.69 39.50
Fresh America Corp. FRES Sep 98 1.06 1.34 1.88 25.0% 27.88 9.50
Hanover Foods Corp. 3HNFSA Aug 98 11.74 NA NA NA 100.00 43.50
Mccormick & Co. MCCRK Aug 98 1.38 1.47 1.64 9.5% 36.44 26.63
Michael Foods, Inc. MIKL(2) Sep 98 1.78 1.82 2.05 12.0% 31.13 20.25
Performance Food Group Co. PFGC Sep 98 1.15 1.23 1.47 20.0% 25.50 15.63
Seneca Foods Corp. SENEB Sep 98 (1.33) NA NA NA 18.00 11.50
Smithfield Companies, Inc. HAMS Sep 98 0.56 NA NA NA 8.25 5.38
Smucker (Jm) Co. SJM.A Oct 98 1.28 1.28 1.36 NA 28.19 20.63
Sylvan, Inc. SYLN Sep 98 1.03 1.04 1.25 15.0% 18.75 11.75
Tyson Foods, Inc. TSN Sep 98 0.79 0.90 1.33 12.0% 26.00 16.31
Vlasic Foods International VL Oct 98 0.39 0.73 1.18 12.0% 27.00 13.69
</TABLE>
<TABLE>
<CAPTION>
Based on closing stock price as of 12/18/98
Price/ Price/ Cal. 1998 Cal. 1999
Company Price Price/ Cal. 1998 Cal. 1999 PE / PE /
per Share LTM EPS Est. EPS Est. EPS Growth Rate Growth Rate
<S> <C> <C> <C> <C> <C> <C>
United Foods 3.50 30.6 33.1 38.9 NM NM
Chiquita Brands Intl. $ 9.94 NM x 12.3 x 9.0 x 122.7% 90.3%
Dean Foods Co. 41.81 15.9 16.2 14.6 117.4% 106.0%
Fresh America Corp. 14.00 13.2 10.4 7.4 41.8% 29.8%
Hanover Foods Corp. 57.00 4.9 NA NA NM NM
Mccormick & Co. 33.81 24.5 22.9 20.6 241.5% 216.5%
Michael Foods, Inc. 24.81 13.9 13.6 12.1 113.6% 100.9%
Performance Food Group Co. 24.44 21.3 19.9 16.7 99.3% 83.3%
Seneca Foods Corp. 11.50 NM NA NA NM NM
Smithfield Companies, Inc. 7.00 12.5 NA NA NM NM
Smucker (Jm) Co. 22.88 17.9 17.9 16.8 NM NM
Sylvan, Inc. 14.19 13.8 13.6 11.4 90.9% 75.7%
Tyson Foods, Inc. 19.56 24.8 21.6 14.7 180.2% 122.8%
Vlasic Foods International 22.38 57.4 30.7 18.9 255.7% 157.9%
Median: 15.9 x 17.0 x 14.7 x 117.4% 100.9%
Average: 20.0 17.9 14.2 140.3% 109.2%
Adjusted Average (excludes high and low): 17.5 17.3 14.3 137.9% 105.3%
</TABLE>
(1) When calendar 1999 EPS Multiple is not available it is approximated using
company's 5-year projected growth rate.
(2) MIKL LTM EPS excludes $0.11/sh losses from extraordinary items.
21 J.C. Bradford & Co.
<PAGE> 24
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
COMPARABLE COMPANY MARKET CAPITALIZATION MULTIPLES
(In thousands)
<TABLE>
<CAPTION>
TOTAL TOTAL
12/18/98 NUMBER OF TOTAL DEBT, MARKET BOOK LTM LTM
COMPANY TICKER PRICE SHARES EQUITY NET OF CASH CAPITAL VALUE EBIT EBITDA
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods UFD.A 3.50 6,810 23,835 42,622 66,457 45,518 5,443 12,842
Chiquita Brands Intl. CQB $ 9.94 65,369 $ 649,768 987,630 $1,637,398 921,147 $ 4,703 $ 227,954
Dean Foods Co. DF 41.81 39,970 1,671,246 544,060 2,215,306 687,639 3,142 239,662
Fresh America Corp. FRES 14.00 5,322 74,502 28,696 103,198 46,712 908 13,248
Hanover Foods Corp. 3HNFSA 57.00 717 40,875 41,653 82,528 56,687 0 22,080
Mccormick & Co. MCCRK 33.81 73,404 2,481,973 503,410 2,985,383 360,637 3,662 242,604
Michael Foods, Inc. MIKL 24.81 21,963 544,957 136,808 681,765 248,840 12,750 107,638
Performance Food Group Co. PFGC 24.44 12,581 307,450 68,509 375,959 146,964 1,988 36,818
Seneca Foods Corp. SENEB 11.50 5,985 68,822 253,292 322,114 136,852 (4) 42,758
Smithfield Companies, Inc. HAMS 7.00 2,343 16,401 (6,038) 10,363 15,095 4 2,121
Smucker (Jm) Co. SJM.A 22.88 29,121 666,134 (5,129) 661,005 310,840 683 78,908
Sylvan, Inc. SYLN 14.19 6,392 90,693 28,875 119,568 49,694 872 17,213
Tyson Foods, Inc. TSN 19.56 240,500 4,704,781 2,082,400 6,787,181 1,970,400 (20,500) 622,200
Vlasic Foods International VL 22.38 45,498 1,018,019 591,909 1,609,928 114,955 (25,827) 104,665
</TABLE>
<TABLE>
<CAPTION>
MARKET EQUITY/
CAP./ BOOK
COMPANY EBITDA VALUE
<S> <C> <C>
United Foods 5.2 0.52
Chiquita Brands Intl. 7.2 x 0.71 x
Dean Foods Co. 9.2 2.43
Fresh America Corp. 7.8 1.59
Hanover Foods Corp. 3.7 0.72
Mccormick & Co. 12.3 6.88
Michael Foods, Inc. 6.3 2.19
Performance Food Group Co. 10.2 2.09
Seneca Foods Corp. 7.5 0.50
Smithfield Companies, Inc. 4.9 1.09
Smucker (Jm) Co. 8.4 2.14
Sylvan, Inc. 6.9 1.83
Tyson Foods, Inc. 10.9 2.39
Vlasic Foods International 15.4 8.86
Median: 7.8 x 2.09 x
Average: 8.5 2.57
Adjusted Average (excludes high and low): 8.1 2.05
</TABLE>
22 J.C. Bradford & Co.
<PAGE> 25
COMPARABLE COMPANY ANALYSIS
UNITED FOODS, INC. grows, processes, markets and distributes food products. The
Company's products include frozen asparagus, black-eyed peas, broccoli,
Brussel sprouts, carrots, cauliflower, corn, green beans, green peas,
green peppers, lima beans, various vegetable mixes and other vegetables.
United's products are sold to large national grocery chains and
independent food stores.
UNITED FOODS, INC.
DAILY PRICE & VOLUME TRADING STATISTICS SINCE 12/31/97
UNITED FOODS, INC. - CLASS A
[GRAPH]
UNITED FOODS, INC. - CLASS B
[GRAPH]
23 J.C. Bradford & Co.
<PAGE> 26
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
DAILY PRICE & VOLUME TRADING STATISTICS SINCE 12/31/97
CHIQUITA BRANDS INTL
[GRAPH]
DEAN FOODS CO.
[GRAPH]
FRESH AMERICA CORP.
[GRAPH]
HANOVER FOODS CORP./PA
[GRAPH]
24 J.C. Bradford & Co.
<PAGE> 27
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
DAILY PRICE & VOLUME TRADING STATISTICS SINCE 12/31/97
MCCORMICK & CO.
[GRAPH]
MICHAEL FOODS, INC.
[GRAPH]
PERFORMANCE FOOD GROUP CO.
[GRAPH]
SENECA FOODS CORP. -CL B
[GRAPH]
25 J.C. Bradford & Co.
<PAGE> 28
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
DAILY PRICE & VOLUME TRADING STATISTICS SINCE 12/31/97
SMITHFIELD COMPANIES, INC.
[GRAPH]
SMUCKER (JM) CO. -CL A
[GRAPH]
SYLVAN, INC.
[GRAPH]
TYSON FOODS, INC. -CL A
[GRAPH]
26 J.C. Bradford & Co.
<PAGE> 29
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
DAILY PRICE & VOLUME TRADING STATISTICS SINCE 12/31/97
VLASIC FOODS INTERNATIONAL
[GRAPH]
27 J.C. Bradford & Co.
<PAGE> 30
COMPARABLE COMPANY ANALYSIS
- DESCRIPTION OF COMPARABLE COMPANIES
CHIQUITA BRANDS INTERNATIONAL, INC. produces, markets and distributes
bananas and other fresh and processed food products sold under the
"Chiquita" brand name. The Company's fresh products include mangoes,
kiwi and citrus and other tropical fruit. Chiquita also produces
private-label and branded canned vegetable and related products,
fruit and vegetable juices and other products.
DEAN FOODS COMPANY processes, distributes and sell dairy, pickle,
specialty and vegetable products. Many of the Company's products are
sold under private labels. Dean's products include milk, ice cream
and extended shelf-life dairy products; salad dressings, dips and
puddings; and pickles, relishes and canned vegetables. The Company
also operates a trucking business.
FRESH AMERICA CORPORATION is an integrated food distribution management
company for fresh produce and other perishable refrigerated
products. The Company operates in 43 states and Canada through 22
distribution centers. Fresh America operates produce departments in
342 "Sam's Club" stores. "Sam's" is a division of Wal-Mart Stores,
Inc.
HANOVER FOODS CORPORATION processes vegetable products. The Company grows,
processes, cans, freezes, freeze-dries, packages, markets and
distributes its products under its own trademarks, as well as other
branded, customer and private labels. Hanover operates in the United
States.
28 J.C. Bradford & Co.
<PAGE> 31
COMPARABLE COMPANY ANALYSIS
- DESCRIPTION OF COMPARABLE COMPANIES
MCCORMICK & COMPANY INCORPORATED is a specialty food company. The Company
manufactures spices, seasonings, flavorings, and other specialty
food products and sells such products to the retail food market, the
food service market and to industrial food processors throughout the
world. McCormick, through its subsidiaries, also manufactures and
markets plastic and packaging products.
MICHAEL FOODS, INC. is a diversified food processor and distributor with
interests in eggs and egg products, refrigerated case products,
frozen and refrigerated potato products and dairy products. The
Company sells these items to supermarkets, food service
distributors, manufacturers and fast food operators in Minnesota and
surrounding states.
PERFORMANCE FOOD GROUP CO. markets and distributes food and food-related
products to restaurants, hotels, cafeterias, schools and hospitals
in the United States. The Company's items include private label food
products, canned and dry groceries, poultry, meats, seafood, fresh
produce, paper and cleaning supplies and restaurant equipment.
SENECA FOODS CORPORATION is primarily a fruit and vegetable processing
company with manufacturing facilities located throughout the United
States. The Company's products are sold under the "Seneca,"
"Libby's," and "TreeSweet" labels, as well as through the private
label and industrial markets. Seneca also, under alliance with The
Pillsbury Company, produces canned and frozen vegetables.
29 J.C. Bradford & Co.
<PAGE> 32
COMPARABLE COMPANY ANALYSIS
- DESCRIPTION OF COMPARABLE COMPANIES
THE SMITHFIELD COMPANIES, INC. produces and markets a wide range of
branded food products to the retail grocery and food service
industries. The Company's products include frozen barbecues and
chilies, cured hams and other pork products, peanuts and cashews.
Smithfield's products are sold on a wholesale basis, through
catalogs and through its retail stores.
THE J.M. SMUCKER COMPANY manufactures and markets food products on a
worldwide basis. The Company's principal products include fruit
spreads, dessert toppings, peanut butter, industrial fruit products,
fruit and vegetable juices, juice beverages, syrups, condiments and
gift packages. Smucker's products are marketed under trademarks such
as "Smucker's," "Simply Fruit" and "Goober."
SYLVAN INC. produces and distributes mushroom spawn and fresh mushrooms.
The Company also distributes a variety of other value-added products
and services for use by mushroom growers and produces fresh
mushrooms for sale to retailers, distributors and processors of
mushroom products in the United States. Sylvan operates in the
United States, Europe and Australia.
TYSON FOODS, INC. produces, markets and distributes a variety of food
products. The Company's products include value-enhanced poultry,
fresh and frozen poultry, value-enhanced seafood products, fresh and
frozen seafood products, prepared foods and other products such as
flour and corn tortillas and chips. Tyson also has live swine,
animal feed and pet food ingredient operations.
30 J.C. Bradford & Co.
<PAGE> 33
COMPARABLE COMPANY ANALYSIS
- DESCRIPTION OF COMPARABLE COMPANIES
VLASIC FOODS INTERNATIONAL manufactures and markets branded convenience
food products in the frozen food, grocery product, and agricultural
product segments. The Company's products include "Swanson" and
"Freshbake" frozen foods, "Vlasic" pickles and condiments, "Open
Pit" barbecue sauce, and other brands. Vlasic's products are sold in
the United States and other countries.
31 J.C. Bradford & Co.
<PAGE> 34
COMPARABLE TRANSACTION ANALYSIS
UNITED FOODS, INC.
COMPARABLE TRANSACTION SUMMARY VALUATION
FOOD DISTRIBUTION COMPANIES *
(In 000s, except per share)
PRICE TO TRAILING EARNINGS MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM earnings ended 8/31/98 $ 779
Adjusted Average Multiple 23.9 x
--------
Valuation $ 18,586
Valuation Per Share (1) $ 2.73
--------
</TABLE>
LTM EBIT MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM EBIT ended 8/31/98 $ 5,443
Adjusted Average Multiple 16.4 x
--------
89,062
Less total debt, net of cash on 8/31/98 42,622
--------
Valuation $ 46,440
Valuation Per Share (1) $ 6.82
--------
</TABLE>
LTM EBITDA MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM EBITDA ended 8/31/98 $ 12,842
Adjusted Average Multiple 12.4 x
---------
159,571
Less total debt, net of cash on 8/31/98 42,622
---------
Valuation $ 116,949
Valuation Per Share (1) $ 17.17
---------
</TABLE>
LTM REVENUES MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM Revenues ended 8/31/98 $ 201,367
Adjusted Average Multiple 1.1 x
---------
215,279
Less total debt, net of cash on 8/31/98 42,622
---------
Valuation $ 172,657
Valuation Per Share (1) $ 25.35
---------
</TABLE>
BOOK VALUE MULTIPLE BASIS:
<TABLE>
<S> <C>
Book Value at 8/31/98 $ 45,518
Adjusted Average Multiple 3.6 x
---------
Valuation $ 162,008
Valuation Per Share $ 23.79
---------
</TABLE>
(1) Based on 6.8 million shares outstanding.
* Covers industries with SIC Codes in the 2030s.
Source: Securities Data Company, Inc. (201) 622-3100. As of 10/13/98.
32 J.C. Bradford & Co.
<PAGE> 35
COMPARABLE TRANSACTION ANALYSIS
UNITED FOODS, INC.
COMPARABLE TRANSACTION SUMMARY VALUATION
MULTIPLES BASED ON AGRILINK ACQUISITION OF DEAN FOODS VEGETABLE DIVISION
(In 000s, except per share)
LTM REVENUES MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM Revenues ended 8/31/98 $ 201,367
Transaction Multiple 0.8 x
---------
156,395
Less total debt, net of cash on 8/31/98 42,622
---------
Valuation $ 113,773
Valuation Per Share $ 16.71
---------
</TABLE>
LTM EBIT MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM EBIT ended 8/31/98 $ 5,443
Transaction Multiple 11.4 x
--------
61,876
Less total debt, net of cash on 8/31/98 42,622
--------
Valuation $ 19,254
Valuation Per Share $ 2.83
---------
</TABLE>
BOOK VALUE MULTIPLE BASIS:
<TABLE>
<S> <C>
Book Value at 8/31/98 $ 45,518
Transaction Multiple 1.7 x
--------
Valuation 75,863
Valuation Per Share $ 11.14
--------
</TABLE>
* Covers industries with SIC Codes in the 2030s.
Source: Securities Data Company, Inc. (201) 622-3100. As of 10/13/98.
33 J.C. Bradford & Co.
<PAGE> 36
COMPARABLE TRANSACTION ANALYSIS
UNITED FOODS, INC.
COMPARABLE TRANSACTION SUMMARY VALUATION
MULTIPLES BASED ON AGRILINK ACQUISITION OF DEAN FOODS VEGETABLE DIVISION
(In 000s, except per share)
LTM EBIT MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM EBIT ended 8/31/98 $ 5,443
Plus $500,000 Cost Savings $ 500
--------
$ 5,943
Transaction Multiple 11.4 x
--------
67,560
Less total debt, net of cash on 8/31/98 42,622
--------
Valuation $ 24,938
Valuation Per Share $ 3.66
--------
</TABLE>
LTM EBIT MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM EBIT ended 8/31/98 $ 5,443
Plus $750,000 Cost Savings $ 750
--------
$ 6,193
Transaction Multiple 11.4 x
--------
70,402
Less total debt, net of cash on 8/31/98 42,622
--------
Valuation $ 27,780
Valuation Per Share $ 4.08
--------
</TABLE>
LTM EBIT MULTIPLE BASIS:
<TABLE>
<S> <C>
LTM EBIT ended 8/31/98 $ 5,443
Plus $1,000,000 Cost Savings $ 1,000
--------
$ 6,443
Transaction Multiple 11.4 x
--------
73,244
Less total debt, net of cash on 8/31/98 42,622
--------
Valuation $ 30,622
Valuation Per Share $ 4.50
--------
</TABLE>
34 J.C. Bradford & Co.
<PAGE> 37
COMPARABLE TRANSACTION ANALYSIS
FOOD DISTRIBUTION COMPANIES(*) (DOLLARS IN MILLIONS)
ANALYSIS OF M&A TRANSACTION MULTIPLES SINCE 1/1/90
<TABLE>
<CAPTION>
Levered Aggregate
Aggreg. Equity Consid. Consideration
as a Multiple of: as a Multiple of:
Aggregate Levered ---------------------- ---------------------
Date Equity Aggregate LTM Net Book LTM LTM LTM Percent
Announced Acquiror / Target Consideration Consideration(2) Income Value Revenue EBITDA EBIT Acquired
- --------- ----------------- ------------- ---------------- ------- ----- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
06/07/90 ConAgra Inc $1,336.0 $3,294.0 NM 1.5 0.8 6.9 9.6 100.0%
Beatrice Co
09/28/90 Shareholders $1,607.0 $1,607.0 73.4 2.0 0.9 5.5 6.7 100.0%
Pet Inc(Whitman Corp)
10/19/90 MANO Holdings $ 42.5 $ 42.5 17.0 3.0 1.2 8.5 10.1 100.0%
B Manischewitz Co
04/19/91 ConAgra Inc $ 408.4 $ 408.4 20.8 3.8 2.3 19.1 30.0 100.0%
Golden Valley Microwave Foods
07/18/91 HJ Heinz Co $ 500.0 $ 500.0 NA NA 1.1 NA NA 100.0%
JL Foods Inc(John Labatt Ltd)
12/20/91 CPC International Inc $ 115.0 $ 115.0 NA NA 1.2 NA NA 100.0%
Fearn Intl(Kellogg Co)
01/24/92 Burns Philp Inc $ 85.0 $ 85.0 NA NA 0.4 NA NA 100.0%
Durkee-French Foods(Burns)
04/09/92 Ben Hill Griffin Inc $ 31.0 $ 31.0 NM 0.7 0.5 NM NM 52.3%
Orange-co(Stoneridge Res Inc)
04/22/92 Shareholders $ 181.1 $ 181.1 9.2 2.4 0.2 NA 3.5 55.0%
Ralston-Continental Baking
10/12/92 Dean Foods Co $ 15.0 $ 15.0 NM 1.2 0.3 NM NM 100.0%
WB Roddenbery Co
08/12/93 Pro-Fac Cooperative Inc $ 164.2 $ 431.2 NM 2.0 0.5 20.5 NM 100.0%
Curtice-Burns Foods(Pro-Fac)
08/16/93 Shareholders $ 528.0 $ 528.0 NA NA 0.7 NA NA 100.0%
Ralcorp Holdings Inc(Ralston)
11/01/93 Dean Foods Co $ 140.0 $ 140.0 23.3 NA 0.6 NA NA 100.0%
Kraft General Foods-Birds Eye
</TABLE>
35 J.C. Bradford & Co.
<PAGE> 38
COMPARABLE TRANSACTION ANALYSIS
FOOD DISTRIBUTION COMPANIES(*) (DOLLARS IN MILLIONS)
ANALYSIS OF M&A TRANSACTION MULTIPLES SINCE 1/1/90
<TABLE>
<CAPTION>
Levered Aggregate
Aggreg. Equity Consid. Consideration
as a Multiple of: as a Multiple of:
Aggregate Levered ---------------------- ---------------------
Date Equity Aggregate LTM Net Book LTM LTM LTM Percent
Announced Acquiror / Target Consideration Consideration(2) Income Value Revenue EBITDA EBIT Acquired
- --------- ----------------- ------------- ---------------- ------- ----- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
03/18/94 Doskocil Cos Inc $ 135.0 $ 135.0 NA NA 0.7 NA NA 100.0%
Intl Multifoods-Prepared
Foods
04/18/94 ConAgra Inc $ 202.0 $ 202.0 NA NA NA NA NA NA
Universal Foods-Frozen Foods
04/20/94 Schreiber Foods Inc $ 11.8 $ 11.8 16.9 2.8 0.6 5.6 10.7 100.0%
Arden International Kitchens
05/23/94 Sandoz AG $3,685.7 $3,685.7 32.3 10.1 3.1 16.3 20.0 100.0%
Gerber Products Co
09/12/94 Kohlberg Kravis Roberts & Co $2,222.9 $4,622.9 NM 8.6 0.8 NA 40.1 100.0%
Borden Inc
11/28/94 Campbell Soup Co $1,115.0 $1,115.0 24.8 18.3 4.8 23.7 26.3 100.0%
Pace Foods
01/09/95 Pillsbury Co(Grand Met PLC) $2,636.5 $2,636.5 23.4 7.3 1.7 10.0 12.2 100.0%
Pet Inc(Pillsbury/Grand Met)
07/26/95 Shareholders $ 309.8 $ 309.8 NM 0.5 0.2 NA NM 100.0%
Earthgrains Co
(Anheuser-Busch)
03/15/96 ConAgra Inc $ 132.0 $ 132.0 NA NA 0.7 NA NA 100.0%
Gilroy Foods Inc
06/30/97 JP Foodservice Inc $ 770.6 $1,510.6 NM 2.3 2.9 NM NM 100.0%
Rykoff-Sexton Inc
09/09/97 Shareholders $1,004.8 $1,004.8 NA NA 0.7 NA NA 100.0%
Campbell Soup-Noncore Bus(7)
09/18/97 Chiquita Brands International $ 10.9 $ 42.9 NM 1.8 0.2 NM NM 100.0%
Stokely USA Inc
09/29/97 Suiza Foods Corp $ 855.9 $1,035.9 47.0 8.6 2.1 NA 26.6 100.0%
Morningstar Group Inc
</TABLE>
36 J.C. Bradford & Co.
<PAGE> 39
COMPARABLE TRANSACTION ANALYSIS
FOOD DISTRIBUTION COMPANIES* (DOLLARS IN MILLIONS)
ANALYSIS OF M&A TRANSACTION MULTIPLES SINCE 1/1/90
<TABLE>
<CAPTION>
Levered Aggregate
Aggreg. Equity Consid. Consideration
as a Multiple of: as a Multiple of:
Aggregate Levered ---------------------- ---------------------
Date Equity Aggregate LTM Net Book LTM LTM LTM Percent
Announced Acquiror / Target Consideration Consideration(2) Income Value Revenue EBITDA EBIT Acquired
- --------- ----------------- ------------- ---------------- ------- ----- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/01/97 Chiquita Brands International $ 27.0 $ 29.0 7.5 1.1 0.4 NA NA 100.0%
American Fine Foods Inc
02/18/98 Agrilink Foods(Pro-Fac) $ 6.9 $ 6.9 NA NA NA NA NA 100.0%
Delagra Corp
05/08/98 Agrobios(Desc SA de CV) $ 141.9 $ 141.9 NM 3.2 2.7 NM NM 100.0%
Authentic Specialty Foods Inc
07/21/98 Agrilink Foods(Pro-Fac) NA NA NA NA NA NA NA 100.0%
JA Hopay Distributing Co
07/27/98 Agrilink Foods(Pro-Fac) $ 480.0 $ 482.0 NA 1.7 0.8 NA 11.4 100.0%
Dean Foods Co-Vegetable Ops
--------------------------------------------
Average: 26.9 4.1 1.2 12.9 17.3
Adjusted Average 23.9 3.6 1.1 12.4 16.4
--------------------------------------------
</TABLE>
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
(2) Levered aggregate consideration is defined as aggregate equity
consideration plus total debt, net of cash and equivalents.
37 J.C. Bradford & Co.
<PAGE> 40
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------ -------- -------- ----- --------- ------ -------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/7/90 8/14/90 ConAgra Inc Beatrice Co $1,336.0 $3,294.0 -- -- $864.0 $4,310.0 $11.0 $343.0 $478.0
Advisor Gleacher & Co Salomon Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- ------ --------------
<S> <C> <C> <C> <C>
6/7/90 $1,016.0 $3,472.0 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Beatrice from Kohlberg Kravis Roberts (KKR) for $3.294
bil in cash, common stock, preferred stock, and the assumption of
Beatrice's liabilities. The consideration consisted of $626 mil in
cash, $355 mil in common stock and $355 mil in 2 series of preferred
stock plus the assumption of $1.958 bil of Beatrice's liabilities. The
deal had been subject to governmental approval due to antitrust issues.
Gleacher acted as financial advisor to ConAgra.
Target Business Description
---------------------------
Produce food, consumer prod
Acquiror Business Description
-----------------------------
Produce meats,eggs,cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/28/90 4/4/91 Shareholders Pet Inc(Whitman Corp) $1,607.0 $1,607.0 $15.63 102.8 $801.6 $1,863.2 $21.9 $241.5 $291.5
Advisor -- First Boston Corp.
-------
Company Status Priv. Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C>
9/28/90 $130.0 $1,531.4 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Whitman completed the spinoff of Pet for $1.607 bil, based on Pet's
closing share price of $15.625 on April 4, its first day of trading.
First Boston was retained to study a possible restructure plan and
recommended the spinoff. The transaction was conducted by means of a
stock dividend in which shareholders received one share of Pet for
every Whitman share held. In anticipation of the spinoff, Whitman
restructured its major food operations, splitting them into three
divisions. In 1989, Pet generated $1.755 bil in sales and $280 mil in
pre-tax operating profit.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 41
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------- ------ -------- ------- --------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/19/90 1/18/91 MANO Holdings B Manischewitz Co $42.5 $42.5 $800.00 0.1 $14.2 $34.2 $2.5 $4.2 $5.0
Advisor TGV Partners Lehman Brothers
-------
Company Status Priv. Public
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- -------------- --------
<S> <C> <C> <C> <C>
10/19/90 -- $18.4 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
MANO Holdings, an investor group led by Kohlberg and including TGV
Partners and management, acquired B Manischewitz in a leveraged buyout
transaction valued at $800 in cash per share, or $42.5 mil. MANO
accepted 81% of B Manischewitz' shares (42,975 shares) that were
tendered in the offer and acquired the rest for $800 in cash per share.
Under the terms of the agreement, senior management was to retain an
equity interest in MANO Holdings.
Target Business Description
---------------------------
Produce, whl, ret matzos
Acquiror Business Description
-----------------------------
Investor group; holding co
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/19/91 7/11/91 ConAgra Inc Golden Valley Microwave Foods $408.4 $408.4 $26.39 17.6 $108.0 $177.6 $19.6 $13.6 $21.4
Advisor Gleacher & Co Goldman, Sachs & Co.
-------
Company Status Public Public
--------------
<CAPTION>
<S> <C> <C> <C> <C>
4/19/91 $52.7 $180.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Golden Valley Microwave Foods (GV) in a stock
transaction valued at $464.5 mil. GV shareholders received .5676 shares
of ConAgra for each of GV's 18.8 mil fully diluted common shares. Based
on ConAgra's closing stock price of $47.375 on Apr 18, the last full
trading day prior to the announcement, each share of GV had an
indicated value of $26.39. ConAgra also agreed to convert 600,000 GV
warrants, held by an affiliate of Chase Manhattan Bank, for 340,560
rights to buy ConAgra stock at $60.48.
Target Business Description
---------------------------
Produce microwave food prod
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 42
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/18/91 8/23/91 HJ Heinz Co JL Foods Inc (John Labatt Ltd) $500.0 $500.0 -- -- -- $475.0 -- --
Advisor Dillon, Read James D. Wolfensohn Inc.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
7/18/91 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
HJ Heinz acquired the JL Foods unit of John Labatt for $500 mil in
cash. John Labatt had disclosed in May 1991 that it was seeking a buyer
for its JL Foods unit. Officials said the planned divestiture was
consistent with John Labatt's stated strategy to focus on its core
brewing, entertainment and dairy operations. The transaction had been
subject to US and Canadian regulatory approval.
Target Business Description
---------------------------
Produce, whl frozen foods
Acquiror Business Description
-----------------------------
Canned food preparations
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/20/91 1/31/92 CPC International Inc Fearn Intl (Kellogg Co) $115.0 $115.0 -- -- -- $100.0 -- --
Advisor Salomon Brothers Lehman Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
12/20/91 -- -- -- 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
CPC International acquired all the outstanding common stock of Fearn
International, a subsidiary of Kellogg, including the Le Gout product
line for a $115 mil in cash. Lehman Brothers acted as financial advisor
to Kellogg while Salomon Brothers advised CPC International.
Target Business Description
---------------------------
Produce soups and desserts
Acquiror Business Description
-----------------------------
Produce soups, sauces, food prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 43
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/24/92 8/3/92 Burns Philp Inc Durkee-French Foods (Burns) $85.0 $85.0 -- -- -- $200.0 -- --
Advisor -- --
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
1/24/92 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Burns Philp Inc, a unit of Burns Philp & Co, acquired Durkee-French
Foods from Reckitt & Coleman for $85 mil in cash, including $7 mil to
be held in escrow pending finalization of certain accounts.
Target Business Description
---------------------------
Produce mustard, sauces
Acquiror Business Description
-----------------------------
Produce yeast, vinegar, spices
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/9/92 5/28/92 Ben Hill Griffin Inc Orange-co (Stoneridge Res Inc)$31.0 $31.0 -- -- $85.6 $126.5 ($8.7) ($9.0)
Advisor -- Donaldson, Lufkin & Jenrette
-------
Company Status Priv. Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/9/92 ($4.2) $45.9 $149.8 52.3 Completed
Acq. Maj. Int.
Friendly
</TABLE>
Deal Description
----------------
Ben Hill Griffin acquired a 52.3% interest in Orange-co held by
Stoneridge Resources for $31 mil. Stonebridge Resources said in October
1990 that it was seeking a buyer for all of its assets for the purpose
of raising cash to distribute a liquidation dividend to shareholders.
Stonebridge retained Donaldson Lufkin & Jenrette Securities as a
financial advisor.
Target Business Description
---------------------------
Prod oranges, juices, plastics
Acquiror Business Description
-----------------------------
Frozen fruits, juices, vegetable
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 44
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/22/92 8/2/93 Shareholders Ralston-Continental Baking $181.1 $181.1 $8.75 37.6 $137.4 $2,014.5 $35.8 $92.9
Advisor - Lehman Brothers
-------
Company Status Priv. Sub.
- ----------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/22/92 -- -- $844.9 55 Completed
Acq. Maj. Int.
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina (RP) completed the spinoff of 20.7 mil new common
shares, or a 55% interest, in its newly created Ralston-Continental
Baking Group (CBG) to shareholders in a targeted stock recapitalization
valued at $181.12 mil. Shareholders of record as of Jul 30 received 1
CBG share for every 5 RP share held. Ralston Purina had originally
planned to spinoff the entire unit in April 1992. CBG was created in
order to separate the performance of RP's baking and non-baking
interests.
Target Business Description
---------------------------
Produce bakery products
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/12/92 2/1/93 Dean Foods Co WB Roddenbery Co $15.0 $15.0 -- -- $12.8 $54.8 ($1.7) ($1.4)
Advisor -- KPMG Peat Marwick
-------
Company Status Public Priv.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
10/12/92 ($0.5) $0.8 $19.1 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired all the outstanding stock of WB Roddenbery in
exchange for 535,000 of its common shares valued at $14.2 mil. The
value of the shares was based on Dean's closing stock price of $26.5
per share on Oct 9, the last full trading day prior to the
announcement. The transaction had been subject to Federal Trade
Commission approval.
Target Business Description
---------------------------
Produce pickles, vinegar, syrup
Acquiror Business Description
-----------------------------
Produce milk, dairy products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 45
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/12/93 11/3/94 Pro-Fac Cooperative Inc Curtice-Burns Foods(Pro-Fac) $164.2 $431.2 $19.00 8.6 $81.3 $854.8 ($18.5)
Advisor Dillon, Read Donaldson, Lufkin & Jenrette
------- Priv. Public
Company Status
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
8/12/93 ($5.2) $21.0 $257.5 $463.6 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative (PFC) acquired Curtice-Burns (CBF) for a total of
$19 in cash per share, or a total value of $424.25 mil, by accepting
8,276,439 common shares, or 96% of the outstanding shares. Included in
the value was PFC's assumption of $267 mil of CBF's debt. PFC had
originally offered $16.87 in cash per share held. The tender offer was
contingent upon at least 90% of CBF's Class A and B shares being
tendered. Dean Foods withdrew its offer to acquire CBF.
Target Business Description
---------------------------
Produce soft drinks, foods
Acquiror Business Description
-----------------------------
Provide food marketing service
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/16/93 3/31/94 Shareholders Ralcorp Holdings Inc (Ralston) $528.0 $528.0 $16.00 33.0 -- $808.6 --
Advisor -- Wasserstein, Perella
------- Priv. Sub.
Company Status
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
8/16/93 -- -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina Group, a unit of Ralston Purina, spun off its newly
formed Ralcorp Holdings (RH) unit, consisting of its cereal, Beech-Nut
baby food, cracker, cookie, resort, and coupon redemption businesses to
shareholders in a transaction valued of $528 mil based on RH's closing
stock price of $16 per share on Apr 1, the first full trading day of
newly issued RH shares. The shares in the spinoff would be distributed
at a ratio of 1 RH share for every 3 shares of Ralston Purina Group.
The unit included its Keystone and Breckenridge ski resorts.
Target Business Description
---------------------------
Produce cereal, baby food
Acquiror Business Description
-----------------------------
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 46
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/1/93 12/27/93 Dean Foods Co Kraft General Foods-Birds Eye $140.0 $140.0 -- -- -- $250.0
Advisor JP Morgan Securities, Inc. Morgan Stanley
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
11/1/93 $6.0 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired the BirdsEye frozen vegetable business of Kraft
General Foods, a unit of Philip Morris, for $140 mil. The transaction
had been subject to regulatory approval.
Target Business Description
---------------------------
Prod frozen vegetables
Acquiror Business Description
-----------------------------
Produce milk, dairy products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/18/94 6/1/94 Doskocil Cos Inc Intl Multifoods-Prepared Foods $135.0 $135.0 -- -- -- $185.0
Advisor -- Lehman Brothers
-------
Company Status Public Sub
- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
3/18/94 -- -- -- -- -- 100 Completed
Acq. of
Assets
Friendly
</TABLE>
Deal Description
----------------
Doskocil acquired the prepared foods division of International
Multifoods (IM) for $135 mil in cash. In September 1993, IM's board had
announced that it was seeking to divest its prepared foods division.
The division included its frozen specialty foods and meats businesses.
Later IBP acquired the meats business.
Target Business Description
---------------------------
Produce prepared foods
Acquiror Business Description
-----------------------------
Produce sausages, prepared meat
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 47
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ----------- ----------------------------- ------ ------ ------ --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/18/94 -- ConAgra Inc Universal Foods-Frozen Foods $202.0 $202.0 -- -- -- -- -- --
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------ --------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/18/94 -- -- -- -- Pending
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra agreed to acquire the frozen foods business of Universal Foods
for an amended $202 mil in cash. The initial value was $220 mil,
including $57 mil in performance-related payments. The transaction was
subject to regulatory approval.
Target Business Description
---------------------------
Produce frozen foods
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/20/94 11/30/94 Schreiber Foods Inc Arden International Kitchens $11.8 $11.8 $3.90 3.0 $4.2 $19.5 $0.7 $1.1
Advisor -- --
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/20/94 $2.1 $0.9 $6.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Schreiber Foods (SF) acquired Arden International Kitchens (AIK) for an
amended $11.8 mil in cash, or $3.90 per common share. SF had originally
agreed to acquire AIK for $4 per share, or a total value of $12.1 mil.
Target Business Description
---------------------------
Produce frozen foods for
Acquiror Business Description
-----------------------------
Produce meat and food products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 48
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- -------- -------- ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/23/94 12/19/94 Sandoz AG Gerber Products Co $3,685.7 $3,685.7 $53.00 69.5 $364.7 $1,202.5 $114.2 $184.0
Advisor Morgan Stanley Wasserstein, Perella
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ ---------
<S> <C> <C> <C> <C> <C>
5/23/94 $226.0 $84.7 $1,013.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Sandoz completed its merger with Gerber Products (GP) in a transaction
valued at $3.68 bil. Earlier, Sandoz had completed its tender offer for
all the common shares of GP for $53 in cash per share, by accepting
69.08 mil shares, or about 99.2% of GP's shares outstanding. The offer
had been conditioned upon Sandoz receiving at least a majority of GP's
stock. The transaction had been subject to regulatory approval,
including the approval of the Federal Trade Commission under the
Hart-Scott-Rodino Act, and the Superintendent of Insurance of New York.
Target Business Description
-----------------------------
Manfr baby foods and products
Acquiror Business Description
-----------------------------
Manufacture dyestuffs
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/12/94 3/14/95 Kohlberg Kravis Roberts & Co Borden Inc $2,222.9 $4,622.9 $13.61 170.3 $257.5 $5,498.2 ($114.2) $115.4
Advisor Morgan Stanley Credit Suisse First Boston
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
9/12/94 -- $1,682.7 $4,055.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Kohlberg Kravis Roberts (KKR) merged with Borden (BN) in an amended
stock swap valued at $4.643 bil, including $2.4 bil in the assumption
of liabilities. The value included a 16.5% stake KKR acquired in Borden
through a lockup agreement valued at $309.518 mil. Earlier, KKR had
completed a tender offer to acquire all the shares of BN in exchange
for 2.29146 RJR shares, valued at $13.606, per BN share held, by
accepting 90 mil shares, or about 63.5% of BN's total shares
outstanding. The offer had been conditioned upon a minimum of 41% of
BN's shares being tendered.
Target Business Description
---------------------------
Produce dairy prods, snacks
Acquiror Business Description
-----------------------------
Leverage buyout firm
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 49
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- ------ -------- ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/28/94 1/30/95 Campbell Soup Co Pace Foods $1,115.0 $1,115.0 -- -- $61.0 $230.0 $45.0
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ -------- -------- ------ --------- --------------
<S> <C> <C> <C> <C> <C> <C>
11/28/94 $42.4 $47.0 -- $112.7 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Campbell Soup acquired Pace Foods for $1.115 bil in cash.
Target Business Description
---------------------------
Produce pickled vegetables
Acquiror Business Description
-----------------------------
Produce soups, food products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/9/95 5/12/95 Pillsbury Co (Grand Met PLC) Pet Inc (Pillsbury/Grand Met) $2,636.5 $2,636.5 $26.00 100.4 $362.2 $1,576.3 $112.6
Advisor Morgan Stanley Lazard Freres & Co.
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1/9/95 $216.7 $262.5 $528.1 $1,175.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pillsbury, a unit of Grand Metropolitan (GM), completed its merger with
Pet in a transaction valued at $2.636 bil. Earlier, Pillsbury completed
its tender offer for all the outstanding common shares of Pet for $26
in cash per share, by accepting 95,364,543 shares, or 95% of Pet's
common stock outstanding. The offer had been conditioned upon GM
receiving at least 50% of Pet's shares outstanding, and had been
subject to regulatory approval.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Produce flour, grain mill prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 50
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------ ------------------------------ ------ ------ ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/26/95 3/27/96 Shareholders Earthgrains Co (Anheuser-Busch)$309.8 $309.8 $30.38 10.2 $573.8 $1,664.6 ($25.7) ($31.2)
Advisor -- Dillon, Read
-------
Company Status Priv. Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
7/26/95 -- $56.2 $1,130.1 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Anheuser-Busch (AB) completed the spin off its Earthgrains (EA) unit to
shareholders in a transaction valued at $309.83 mil. Each AB common
shareholder received 1 EA common share for every 25 AB shares held.
EA's shares were valued based on EA's closing stock price of $30.375 on
Mar 27, the first full trading day on a non-when issued basis. Earlier,
EA was known as as Cambell Taggart.
Target Business Description
---------------------------
Baked goods, frozen foods
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/29/96 ConAgra Inc Gilroy Foods Inc $132.0 $132.0 -- -- -- $200.0 -- --
Advisor -- --
- -------
Company Status Public Sub.
- --------------
<S> <C> <C> <C> <C> <C>
3/15/96 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Gilroy Foods, a unit of McCormick, for $132 mil in
cash.
Target Business Description
---------------------------
Produce dried fruits
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 51
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------ --------------------- ------ ------ ------ --------- ------ ------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/30/97 12/23/97 JP Foodservice Inc Rykoff-Sexton Inc $770.6 $1,510 $24.41 28.0 $336.0 $519.9 ($60.2) ($79.5)
Advisor PaineWebber Merrill Lynch & Co.
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
6/30/97 ($73.0) $483.2 $1,217.2 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
JP Foodservice (JP) merged with Rykoff-Sexton (RS) in a
merger-of-equals stock swap transaction valued at an amended $1.436
bil, including the assumption of $740 mil in liabilities. JP offered an
amended .775 common shares per RS share. Originally, JP offered .82
common shares per RS share. Based on JP's closing stock price of $31.5
on June 27, the last full trading day prior to the announcement of
amended terms, each RS share was valued at $24.4125. The transaction
was accounted for as a pooling of interests and had been subject to
regulatory approval.
Target Business Description
---------------------------
Wholesale grocery products
Acquiror Business Description
-----------------------------
Wholesale groceries
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/9/97 3/11/98 Shareholders Campbell Soup-Noncore Bus(7) $1,004 $1,004.8 $22.13 45.4 -- $1,400 -- --
Advisor -- Goldman, Sachs & Co.
-------
Company Status Priv. Sub.
--------------
<S> <C> <C> <C> <C> <C>
9/9/97 -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Campbell Soup (CS) spun off its 7 noncore businesses including the
Swanson frozen dinner and Vlasic pickle brands into a new company named
Vlasic Foods (VF) to its shareholders in a transaction valued at $1.004
bil. CS shareholders received 1VF common share for every 10 CS shares
held. The shares were valued based on VF's closing stock price of
$22.125 on March 11, the first full trading day on which the shares
were distributed.
Target Business Description
---------------------------
Produce, whl soups, food prods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 52
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------------ ------ ------ ------ --------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/18/97 1/16/98 Chiquita Brands International Stokely USA Inc $10.9 $42.9 $1.00 11.4 $6.1 $178.9
Advisor No Investment Bank Retained Donaldson, Lufkin & Jenrette
-------
Company Status Public Public
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
9/18/97 ($19.4) ($8.9) ($2.9) $74.7 $116.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International (CBI) acquired all the outstanding common
stock of Stokely USA (SU) in exchange for $1 in common stock per share,
or a total value of approximately $43.389 mil, including the assumption
of about $32 mil in liabilities.
Target Business Description
------------------------------
Prod canned fruits, vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/29/97 12/1/97 Suiza Foods Corp Morningstar Group Inc $855.9 $1,035.9 $45.85 15.4 $99.4 $497.6
Advisor Donaldson, Lufkin & Jenrette Goldman, Sachs & Co.
-------
Company Status Public Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
9/29/97 $18.2 $38.9 -- 178.5 $352.3 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Suiza Foods (SF) acquired Morningstar Group (MG) in a stock swap
transaction valued at approximately $971.957 mil, including the
assumption of $180 mil in liabilities. SF offered .85 SF common shares
per MG share. Based on SF's closing stock price of $53.9375 on Sep 26,
the last full trading day prior to the announcement, each MG share was
valued at $45.85. The transaction was accounted for as a pooling of
interests and had been subject to regulatory approval.
Target Business Description
---------------------------
Produce dairy products
Acquiror Business Description
-----------------------------
Produce milk, related prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 53
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/1/97 12/9/97 Chiquita Brands International American Fine Foods Inc $27.0 $29.0 -- -- $25.6 $79.8 $3.6
Advisor -- JP Morgan & Co. Inc.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
10/1/97 -- -- -- $52.0 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International acquired all the outstanding stock of
American Fine Foods for $29 mil. The consideration consisted of $27 mil
in common stock and the assumption of $2 mil in liabilities. The
transaction was subject to regulatory approval.
Target Business Description
---------------------------
Produce canned vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/98 Agrilink Foods (Pro-Fac) Delagra Corp $6.9 $6.9 -- -- -- --
Advisor -- --
-------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C>
-- -- -- 100 Completed
2/18/98 Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative Inc, acquired Delagra Corp (DE). Terms were not
disclosed. Upon completion, DE was to be incorporated to AF's Curtice
Burns Foods subsidiary.
Target Business Description
---------------------------
Produce frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 54
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ------------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/8/98 6/15/98 Agrobios (Desc SA de CV) Authentic Specialty Foods Inc $141.9 $141.9 $17.00 8.0 $40.5 $37.2 ($0.6)
Advisor JP Morgan & Co. Inc. Donaldson, Lufkin & Jenrette
-------
Company Status Sub. Public
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
5/8/98 ($0.4) $0.8 $10.2 $58.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Agrobios (AB), a unit of Desc SA de CV, acquired all the outstanding
common stock of Authentic Specialty Foods Inc (ASF) for $17 in cash per
share, or a total value of $141.876 mil. Earlier, AB completed its
tender offer for ASF by accepting 7.8 million shares, or 89% of ASF's
shares outstanding. The offer had been conditioned upon at least 66.67%
of ASF's shares being tendered on a fully-diluted basis.
Target Business Description
---------------------------
Whl, mnfr Mexican foods
Acquiror Business Description
-----------------------------
Mnfr, whl foods products
<TABLE>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/21/98 Agrilink Foods (Pro-Fac) JA Hopay Distributing Co -- -- -- -- -- $8.0 --
Advisor -- --
- -------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C> <C>
7/21/98 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods, a unit of Pro-Fac Cooperative Inc, acquired JA Hopay
Distributing Co.
Target Business Description
---------------------------
Distribution of snack foods
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 55
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ---------------------------- ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/27/98 9/24/98 Agrilink Foods (Pro-Fac) Dean Foods Co-Vegetable Ops $480.0 $482.0 -- -- -- $620.6 --
Advisor - Merrill Lynch & Co.
-------
Company Status Sub. Sub.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
7/27/98 $42.4 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods (AF), a unit of Pro-Fac Cooperative Inc, acquired the
vegetable operations of Dean Foods Co for an estimated $370 mil in
cash, a $30 mil note and AF's aseptic foods business. Included in the
acquisition were the Birds Eye, Freshlike and VegAll brand names.
Target Business Description
---------------------------
Mnfr frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
*Covers industries with SIC Codes in the 2030s. Source: Securities Data Company,
Inc. (201) 622-3100. As of 12/20/98.
<PAGE> 56
DISCOUNTED CASH FLOW ANALYSIS
UNITED FOODS - DISCOUNTED CASH FLOW ANALYSIS
0% GROWTH SCENARIO - PER SHARE VALUATION
CAPITAL EXPENDITURES AT 100% OF MANAGEMENT'S PROJECTIONS
<TABLE>
<CAPTION>
COST SAVINGS (000'S)
------------------------------------------------
DISCOUNT RATE - $500 $750 $1,000
------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $0.56 $0.99 $1.21 $1.42
8% 6.0x $1.85 $2.33 $2.58 $2.82
7.0x $3.15 $3.68 $3.94 $4.21
5.0x $(0.11) $0.29 $0.49 $0.69
10% 6.0x $1.07 $1.51 $1.74 $1.96
7.0x $1.44 $1.90 $2.12 $2.35
</TABLE>
CAPITAL EXPENDITURES AT 75% OF MANAGEMENT'S PROJECTIONS
<TABLE>
<CAPTION>
COST SAVINGS (000'S)
------------------------------------------------
DISCOUNT RATE - $500 $750 $1,000
------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $1.63 $2.06 $2.27 $2.49
8% 6.0x $2.92 $3.40 $3.64 $3.88
7.0x $4.21 $4.74 $5.01 $5.27
5.0x $0.90 $1.30 $1.50 $1.70
10% 6.0x $2.08 $2.53 $2.75 $2.97
7.0x $2.40 $2.86 $3.09 $3.31
</TABLE>
CAPITAL EXPENDITURES AT 50% OF MANAGEMENT'S PROJECTIONS
<TABLE>
<CAPTION>
COST SAVINGS (000'S)
------------------------------------------------
DISCOUNT RATE - $500 $750 $1,000
------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $2.69 $3.12 $3.34 $3.55
8% 6.0x $3.98 $4.47 $4.71 $4.95
7.0x $5.28 $5.81 $6.07 $6.34
5.0x $1.91 $2.31 $2.51 $2.71
10% 6.0x $3.09 $3.54 $3.76 $3.98
7.0x $3.36 $3.82 $4.05 $4.28
</TABLE>
J.C. Bradford & Co.
38
<PAGE> 57
DISCOUNTED CASH FLOW ANALYSIS
UNITED FOODS - DISCOUNTED CASH FLOW ANALYSIS
2.5% GROWTH SCENARIO - PER SHARE VALUATION
CAPITAL EXPENDITURES AT 100% OF MANAGEMENT'S PROJECTIONS
<TABLE>
<CAPTION>
COST SAVINGS (000'S)
------------------------------------------------
DISCOUNT RATE - $500 $750 $1,000
------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $1.16 $1.59 $1.81 $2.02
8% 6.0x $2.62 $3.10 $3.34 $3.59
7.0x $4.09 $4.62 $4.88 $5.15
5.0x $0.42 $0.82 $1.02 $1.22
10% 6.0x $1.76 $2.20 $2.43 $2.65
7.0x $2.20 $2.66 $2.88 $3.11
</TABLE>
CAPITAL EXPENDITURES AT 75% OF MANAGEMENT'S PROJECTIONS
<TABLE>
<CAPTION>
COST SAVINGS (000'S)
------------------------------------------------
DISCOUNT RATE - $500 $750 $1,000
------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $2.22 $2.66 $2.87 $3.09
8% 6.0x $3.69 $4.17 $4.41 $4.65
7.0x $5.15 $5.68 $5.95 $6.21
5.0x $1.43 $1.83 $2.03 $2.24
10% 6.0x $2.77 $3.21 $3.44 $3.66
7.0x $3.16 $3.62 $3.84 $4.07
</TABLE>
CAPITAL EXPENDITURES AT 50% OF MANAGEMENT'S PROJECTIONS
<TABLE>
<CAPTION>
COST SAVINGS (000'S)
------------------------------------------------
DISCOUNT RATE - $500 $750 $1,000
------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $3.29 $3.72 $3.94 $4.15
8% 6.0x $4.75 $5.23 $5.48 $5.72
7.0x $6.22 $6.75 $7.01 $7.28
5.0x $2.45 $2.85 $3.05 $3.25
10% 6.0x $3.78 $4.23 $4.45 $4.67
7.0x $4.12 $4.58 $4.81 $5.03
</TABLE>
J.C. Bradford & Co.
39
<PAGE> 58
DISCOUNTED CASH FLOW ANALYSIS
UNITED FOODS, INC.
EBITDA (1980-1999)
HISTORICAL
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8,965 10,851 11,764 15,698 13,341 12,776 7,142 5,487 251 9,340 19,876 14,835
21.0% 8.4% 33.4% (15.0%) (4.2%) (44.1%) (23.2%) (95.4%) 3621.1% 112.8% (25.4%)
</TABLE>
<TABLE>
<CAPTION>
1992 1993 1994 1995 1996 1997 1998 1999 3 YEAR 5 YEAR 10 YEAR
---- ---- ---- ---- ---- ---- ---- ---- ------ ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10,918 9,018 9,291 13,621 10,276 12,531 12,127 12,936 Avg. 12,531 12,298 12,543
(26.4%) (17.4%) 3.0% 46.6% (24.6%) 21.9% (3.2%) 6.7% CAGR 1.6% (1.3%) (4.7%)
</TABLE>
SMOOTHED (3-YEAR)
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10,527 12,771 13,601 13,938 11,086 8,468 4,293 5,026 9,822 14,684
21.3% 6.5% 2.5% (20.5%) (23.6%) (49.3%) 17.1% 95.4% 49.5%
</TABLE>
<TABLE>
<CAPTION>
1992 1993 1994 1995 1996 1997 1998 1999 3 YEAR 5 YEAR 10 YEAR
---- ---- ---- ---- ---- ---- ---- ---- ------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15,210 11,590 9,742 10,643 11,063 12,143 11,645 12,531 Avg. 12,106 11,605 11,907
3.6% (23.8%) (15.9%) 9.2% 3.9% 9.8% (4.1%) 7.6% CAGR 1.6% 4.2% 2.7%
</TABLE>
DEPRECIATION
HISTORICAL
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2,832 2,578 2,565 3,391 3,445 3,415 3,354 3,402 4,059 5,352 5,777 6,086 6,249
(9.0%) (0.5%) 32.2% 1.6% (0.9%) (1.8%) 1.4% 19.3% 31.9% 7.9% 5.3% 2.7%
</TABLE>
<TABLE>
<CAPTION>
1993 1994 1995 1996 1997 1998 1999 3 YEAR 5 YEAR 10 YEAR
---- ---- ---- ---- ---- ---- ---- ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6,104 6,005 6,637 7,362 7,859 7,285 7,266 Avg. 7,470 7,282 6,663
(2.3%) (1.6%) 10.5% 10.9% 6.8% (7.3%) (0.3%) CAGR (3.8%) 2.3% 2.6%
</TABLE>
SMOOTHED (3-YEAR)
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2,658 2,845 3,134 3,417 3,405 3,390 3,605 4,271 5,063 5,738
7.0% 10.2% 9.0% (0.4%) (0.4%) 6.3% 18.5% 18.5% 13.3%
</TABLE>
<TABLE>
<CAPTION>
1992 1993 1994 1995 1996 1997 1998 1999 3 YEAR 5 YEAR 10 YEAR
---- ---- ---- ---- ---- ---- ---- ---- ------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6,037 6,146 6,119 6,249 6,668 7,286 7,502 7,470 Avg. 7,419 7,035 6,428
5.2% 1.8% (0.4%) 2.1% 6.7% 9.3% 3.0% (0.4%) CAGR 1.3% 4.6% 4.4%
</TABLE>
CAP EX
HISTORICAL
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1,914 1,686 3,220 16,276 3,982 5,127 5,979 11,455 22,795 5,957 6,794 9,940 2,363
(11.9%) 91.0% 405.5% (75.5%) 28.8% 16.6% 91.6% 99.0% (73.9%) 14.1% 46.3% (76.2%)
</TABLE>
<TABLE>
<CAPTION>
1993 1994 1995 1996 1997 1998 1999 3 YEAR 5 YEAR 10 YEAR
---- ---- ---- ---- ---- ---- ---- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4,948 9,133 9,874 11,914 533 4,774 17,500 Avg. 7,602 8,919 7,777
109.4% 84.6% 8.1% 20.7% (95.5%) 795.7% 266.6% CAGR 473.0% 15.4% 11.1%
</TABLE>
SMOOTHED (3-YEAR)
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2,273 7,061 7,826 8,462 5,029 7,520 13,410 13,402 11,849 7,564 6,366
210.6% 10.8% 8.1% (40.6%) 49.5% 78.3% (0.1%) (11.6%) (36.2%) (15.8%)
</TABLE>
<TABLE>
<CAPTION>
1993 1994 1995 1996 1997 1998 1999 3 YEAR 5 YEAR 10 YEAR
---- ---- ---- ---- ---- ---- ---- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5,750 5,481 7,985 10,307 7,440 5,740 7,602 Avg. 6,928 7,815 7,608
(9.7%) (4.7%) 45.7% 29.1% (27.8% (22.8%) 32.4% CAGR 1.1% (1.2%) (4.8%)
</TABLE>
J.C. Bradford & Co.
40
<PAGE> 59
DISCOUNTED CASH FLOW ANALYSIS
UNITED FOODS, INC.
CALCULATION OF WEIGHTED AVERAGE COST OF CAPITAL
(in thousands except per share)
Weighted Average Cost of Capital (WACC) = (Equity % of Capitalization)(Cost of
Equity) + (Debt % of Capitalization)(Cost of Debt)
28.6% Equity (13.83%) + 71.4% Debt (5.58%)
7.9%
-------------
COST OF EQUITY
----------------------------------------------------------
Cost of Equity = R(f)+ B (R(m)-R(f))
Risk Free Rate = R(f)
Beta of Common Stock = B
Market Risk Premium = (R(m)-R(f))
Cost of Equity = 4.5% + .7(*)(8.9%) + 3.5%
Cost of Equity = 13.8%
-----------
DATA USED
----------------------------------------------------------
Capital Asset Pricing Model (a)
10 Year Treasury Yield = 4.49% (b)
UFD Beta = 0.7 (c)
Common Stock Returns
over Int.-term Gov't Bonds = 8.9% (d)
Micro-Cap Stock Premium 3.5%
Cost of Debt = (1-T)(*)R(i) (e)
Cost of Debt = 5.6%
--------------
Capitalization (f)=$20,430 of Market Equity + $50,909
of Long Term Debt = $71,339
=28.6% Equity + 71.4% Debt
(a) The Capital Asset Pricing Model states that the return on an asset or
security is equal to the risk free return (i.e., Treasury Bonds) plus a
risk premium.
(b) 10 Year Treasury as of 9/30/98.
(c) Beta estimate taken from Value Line Investment Survey.
(d) Intermediate horizon risk premium of 8.9%, as calculated by Ibbotson &
Sinquefield, 1996. Includes an additional Micro-Cap Stock Premium of
3.5%.
(e) Interest cost of 9.00%, tax adjusted at 38.0%.
(f) Assumes UFD has a targeted capital structure of 28.6% equity and 71.4%
debt.
J.C. Bradford & Co.
41
<PAGE> 60
DISCOUNTED CASH FLOW ANALYSIS
UNITED FOODS, INC.
CALCULATION OF WEIGHTED AVERAGE COST OF CAPITAL
(in thousands except per share)
Weighted Average Cost of Capital (WACC) = (Equity % of Capitalization)(Cost of
Equity) + (Debt % of Capitalization)(Cost of Debt)
32.1% Equity (19.98%) + 67.9% Debt (5.58%)
10.2%
------------
COST OF EQUITY
--------------------------------------------
Cost of Equity = R(f)+ B (R(m)-R(f))
Risk Free Rate = R(f)
Beta of Common Stock = B
Market Risk Premium = (R(m)-R(f))
Cost of Equity = 4.5% + 1.3(*)(8.9%) + 3.5%
Cost of Equity = 20.0%
--------------
DATA USED
----------------------------------------------
Capital Asset Pricing Model (a)
10 Year Treasury Yield = 4.49% (b)
UFD Beta = 1.3 (c)
Common Stock Returns
over Int.-term Gov't Bonds = 8.9% (d)
Micro-Cap Stock Premium 3.5%
Cost of Debt = (1-T)(*)R(i) (e)
Cost of Debt = 5.6%
-------------
Capitalization (f)=$20,430 of Market Equity + $43,249 of
Long Term Debt = $63,679
=32.1% Equity + 67.9% Debt
(a) The Capital Asset Pricing Model states that the return on an asset or
security is equal to the risk free return (i.e., Treasury Bonds) plus a
risk premium.
(b) 10 Year Treasury as of 9/30/98.
(c) Beta estimate taken from Value Line Investment Survey.
(d) Intermediate horizon risk premium of 8.9%, as calculated by Ibbotson &
Sinquefield, 1996. Includes an additional Micro-Cap Stock Premium of
3.5%.
(e) Interest cost of 9.00%, tax adjusted at 38.0%.
(f) Assumes UFD has a targeted capital structure of 32.1% equity and 67.9%
debt.
J.C. Bradford & Co.
42
<PAGE> 61
DISCOUNTED CASH FLOW ANALYSIS
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH)
DISCOUNTED CASH FLOW ANALYSIS -- OPERATING CASH FLOW EBITDA
EXIT MULTIPLE METHOD
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
11/12/98 11:17 AM 2000 2001 2002 2003 2004
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
EBITDA $ 12,938 $ 12,938 $ 12,938 $ 12,938 $ 12,938
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,511 4,304 4,186 4,110 4,031
-------- -------- -------- -------- --------
Pre-tax income 1,159 1,366 1,484 1,560 1,639
Provision for income taxes 440 519 564 593 623
======== ======== ======== ======== ========
Net income 718 847 920 967 1,016
-------- -------- -------- -------- --------
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,797 2,668 2,595 2,548 2,499
Less: Net additions to working capital (1) -- -- -- -- --
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
-------- -------- -------- -------- --------
Operating cash flow $ 3,515 $ 3,515 $ 3,515 $ 3,515 $ 3,515
======== ======== ======== ======== ========
Cash flow growth 0.0% 0.0% 0.0% 0.0%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
DISCOUNT YEAR 2004 EBITDA EXIT MULTIPLE
RATE(3) 5.0X 6.0X 7.0X 8.0X
------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $ 3,815 $12,620 $21,426 $30,231
10.0% (754) 7,279 15,312 23,346
12.0% (4,869) 2,472 9,814 17,155
</TABLE>
Average Valuation of Equity $ 11,487
-----------
PER SHARE EQUITY VALUATION MATRIX(2) (4)
<TABLE>
<CAPTION>
DISCOUNT YEAR 2004 EBITDA EXIT MULTIPLE
RATE(3) 5.0X 6.0X 7.0X 8.0X
------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $0.56 $1.85 $3.15 $4.44
10.0% $(0.11) $1.07 $2.25 $3.43
12.0% $(0.71) $0.36 $1.44 $2.52
</TABLE>
Average Per Share Valuation of Equity $1.69
-------
(1) Excluding cash and short-term debt.
(2) Less total capital liab. (net of cash) of $54,248
(3) Discount rates are near estimates of WACC.
(4) Based on 6.8 million shares outstanding.
J.C. Bradford & Co.
43
<PAGE> 62
INVESTMENT BANKING GROUP
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH)
PROJECTED INCOME STATEMENTS
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) HISTORICAL PROJECTED
1999 2000 2001 2002 2003 2004
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $211,839 $211,839 $211,839 $211,839 $211,839
Cost of sales 172,486 172,486 172,486 172,486 172,486 172,486
--------- -------- -------- -------- -------- --------
Gross profit 39,353 39,353 39,353 39,353 39,353 39,353
General and administrative, net dep 10,093 10,093 10,093 10,093 10,093 10,093
Direct selling expenses 16,322 16,322 16,322 16,322 16,322 16,322
--------- -------- -------- -------- -------- --------
Total operating expenses 26,415 26,415 26,415 26,415 26,415 26,415
EBITDA 12,938 12,938 12,938 12,938 12,938 12,938
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 5,670 5,670 5,670 5,670 5,670
Interest expense 4,179 4,511 4,304 4,186 4,110 4,031
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense -- -- -- -- -- --
Other (income) (4) -- -- -- -- --
--------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,511 4,304 4,186 4,110 4,031
Pre-tax income 1,495 1,159 1,366 1,484 1,560 1,639
Provision for income taxes 575 440 519 564 593 623
--------- -------- -------- -------- -------- --------
Net income $ 920 $ 718 $ 847 $ 920 $ 967 $ 1,016
========= ======== ======== ======== ======== ========
</TABLE>
J.C. Bradford & Co.
<PAGE> 63
INVESTMENT BANKING GROUP
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH)
PROJECTED BALANCE SHEETS
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
HISTORICAL PROJECTED
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 1,281 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,771 18,771 18,771 18,771 18,771 18,771
Inventory 36,217 36,217 36,217 36,217 36,217 36,217
Prepaid expenses 3,508 3,508 3,508 3,508 3,508 3,508
Deferred income taxes 1,238 1,238 1,238 1,238 1,238 1,238
--------- --------- --------- --------- --------- ---------
Total current assets 63,457 61,015 59,834 59,834 59,834 59,834
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 804 804 804 804 804
Notes & accounts receivable 50 50 50 50 50 50
Deferred charges & other assets 723 723 723 723 723 723
--------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 124,678 $ 123,497 $ 123,497 $ 123,497 $ 123,497
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
HISTORICAL PROJECTED
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 10,850 10,850 10,850 10,850 10,850
Accrued liabilities 6,911 6,911 6,911 6,911 6,911 6,911
Income taxes payable 135 135 135 135 135 135
--------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 20,405 28,677 19,351 19,480 43,735
Long term debt
Revolver -- -- 481 10,341 10,829 11,397
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 57,971 54,811 52,783 51,862 50,895 49,879
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 52,302 42,002 50,407 49,311 24,040
Deferred income taxes 4,585 4,585 4,585 4,585 4,585 4,585
--------- --------- --------- --------- --------- ---------
Total liabilities 80,452 77,292 75,264 74,343 73,376 72,360
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 36,583 37,430 38,351 39,318 40,334
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 47,386 48,233 49,154 50,121 51,137
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $ 124,678 $ 123,497 $ 123,497 $ 123,497 $ 123,497
========= ========= ========= ========= ========= =========
</TABLE>
J.C. Bradford & Co.
<PAGE> 64
INVESTMENT BANKING GROUP
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH)
PROJECTED CASH FLOW STATEMENTS
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) PROJECTED
2000 2001 2002 2003 2004
------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 718 $ 847 $ 920 $ 967 $ 1,016
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 7,986 8,115 8,188 8,235 8,284
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,268) (7,268) (7,268) (7,268) (7,268)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (11,262) (2,422) (2,600)
Drawdown on revolver -- 481 10,341 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (3,160) (2,028) (920) (967) (1,016)
------- ------- -------- ------- -------
Net additions to cash $(2,442) $(1,181) $ 0 $ 0 $ --
======= ======= ======== ======= =======
Beginning cash balance 3,723 1,281 100 100 100
Ending cash balance 1,281 100 100 100 100
</TABLE>
J.C. Bradford & Co.
<PAGE> 65
PREMIUM ANALYSIS
UNITED FOODS, INC.
M&A PREMIUM ANALYSIS
BASED ON ADJUSTED AVERAGE PREMIUM (1 WEEK BEFORE ANNOUNCEMENT)
<TABLE>
<CAPTION>
IMPLIED
CLASS DATE PREMIUM PRICE OFFER PRICE
---------------------------------------------------------------
<S> <C> <C> <C> <C>
A 9/9/98 36.73% $2.63 $3.60
B 9/9/98 36.73% $2.81 $3.84
</TABLE>
Percentage of transactions with premiums below 20% is 30.7%.
BASED ON ADJUSTED AVERAGE PREMIUM (4 WEEKS BEFORE ANNOUNCEMENT)
<TABLE>
<CAPTION>
IMPLIED
CLASS DATE PREMIUM PRICE OFFER PRICE
---------------------------------------------------------------
<S> <C> <C> <C> <C>
A 8/17/98 42.80% $2.94 $4.20
B 8/17/98 42.80% $3.00 $4.28
</TABLE>
Percentage of transactions with premiums below 20% is 20.9%.
J.C. Bradford & Co.
44
<PAGE> 66
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
VALUE OF PRICE 1 WEEK 4 WEEKS
DATE DATE TRANSACTION PER PRIOR TO PRIOR TO
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE ANN. DATE ANN. DATE
- --------- --------- ------------------------------ ------------------------------ ----------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
08/28/96 01/03/96 Recoton Corp International Jensen Inc 109.1 11.00 57.14 49.15
04/30/96 01/08/96 Lockheed Martin Corp Loral Corp 8762.4 38.00 7.42 8.19
04/30/96 01/09/96 CompuWare Corp Technalysis Corp 32.6 14.00 16.67 16.67
07/30/96 01/11/96 National Golf Properties Inc Golf Enterprises Inc 82.9 12.00 45.46 45.46
02/26/96 01/16/96 Multicare Cos Inc Concord Health Group 126.9 7.35 43.42 58.92
04/10/96 01/16/96 Depuy Inc(Corange Ltd) Orthopedic Technology Inc 45.2 10.43 43.89 49.03
04/11/96 01/22/96 Farnell Electronics PLC Premier Industrial Corp 2722.7 32.92 35.75 34.37
05/09/96 01/23/96 Spartech Corp Portage Industries Corp 15.8 6.60 78.98 78.98
07/16/96 01/24/96 First Maryland Bancorp,MD 1st Washington Bancorp Inc 81.9 8.13 51.16 44.44
03/29/96 01/24/96 Cisco Systems Inc TGV Software Inc 92.4 15.57 70.63 73.00
04/08/96 01/29/96 WH Brady Co Varitronic Systems Inc 42.5 17.50 79.49 62.79
03/04/96 01/31/96 IBM Corp Tivoli Systems Inc 709.8 47.50 25.00 41.79
06/19/96 02/05/96 Bay View Capital,San Mateo,CA CTL Credit Inc 65.0 18.00 82.28 69.41
05/01/96 02/12/96 Honeywell Inc Duracraft Corp 286.7 43.50 50.00 68.12
09/18/96 02/13/96 Jacor Communications Inc Citicasters(American Finl Grp) 767.6 29.50 15.69 28.26
07/12/96 02/13/96 Horizon/CMS Healthcare Corp Medical Innovations Inc 30.3 1.85 18.40 5.71
07/01/96 02/13/96 LBO Enterprises S-K-I Ltd 135.3 18.00 44.00 39.81
03/20/96 02/14/96 Unilever NV Helene Curtis Industries Inc 737.4 70.00 30.23 71.78
05/14/96 02/15/96 Genstar Capital Partners II LP Andros Inc 92.6 18.00 24.14 35.85
04/29/96 02/15/96 NationsBank Corp,Charlotte,NC LDI Corp 28.1 4.10 21.48 49.09
05/30/96 02/16/96 Tosco Corp Circle K Corp 983.0 30.81 42.47 68.82
06/13/96 02/16/96 Marriott International Inc Forum Group Inc 622.3 13.00 8.33 44.44
07/01/96 02/23/96 Silicon Graphics Inc Cray Research Inc 770.0 30.00 21.21 20.60
09/16/96 02/26/96 Maxxim Medical Inc Sterile Concepts Inc 140.2 20.00 60.00 55.34
06/18/96 02/26/96 HS Resources Inc Tide West Oil Co 201.3 15.91 44.64 51.52
07/10/96 02/29/96 TBC Corp Big O Tires Inc 56.6 16.50 7.32 12.82
04/08/96 03/04/96 Lilly Industries Inc Guardsman Products Inc 227.8 23.00 32.37 57.27
09/27/96 03/13/96 Keystone Consolidated Inds Inc DeSoto Inc 36.1 7.65 53.00 80.00
10/31/96 03/20/96 Mercantile Bancorp,St Louis,MO Todays Bancorp Inc 88.8 31.81 23.53 31.18
10/04/96 03/26/96 Camco Financial,Cambridge,OH First Ashland Financial Corp 29.0 20.58 28.61 34.93
08/01/96 03/28/96 Koninklijke Ahold NV Stop & Shop Cos 2870.8 33.50 27.01 45.65
07/02/96 03/29/96 Motor Wheel Corp Hayes Wheels International Inc 563.8 32.00 33.33 43.02
</TABLE>
J.C. Bradford & Co.
<PAGE> 67
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
VALUE OF PRICE 1 WEEK 4 WEEKS
DATE DATE TRANSACTION PER PRIOR TO PRIOR TO
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE ANN. DATE ANN. DATE
- --------- --------- ------------------------------ ------------------------------ ----------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
10/21/96 03/29/96 ISB Financial,New Iberia,LA Jefferson Bancorp,Gretna,LA 52.0 23.00 16.46 18.71
08/07/96 03/29/96 Abbott Laboratories MediSense Inc 821.6 45.00 48.76 39.00
07/19/96 04/01/96 Aetna Life & Casualty Co US Healthcare Inc 8939.0 57.00 21.28 18.75
10/15/96 04/10/96 Toronto-Dominion Bank Waterhouse Investor Services 526.0 38.00 19.69 65.22
06/04/96 04/22/96 El Paso Field Svcs(El Paso) Cornerstone Natural Gas Co 96.6 6.00 29.73 100.00
07/18/96 04/22/96 Reynolds & Reynolds Co Duplex Products Inc 90.1 12.00 28.86 36.17
09/30/96 04/22/96 Pinnacle Banc Grp,Oak Brook,IL Financial Security,Chicago,IL 42.6 28.50 15.15 10.15
07/10/96 04/22/96 Cisco Systems Inc StrataCom Inc 4833.5 57.50 59.72 79.69
06/03/96 04/22/96 K-III Communications Corp Westcott Communications Inc 438.9 21.50 57.80 56.36
10/21/96 04/23/96 Security Banc Corp,OH Third Financial Corp,Piqua,OH 43.9 33.41 13.74 14.22
10/01/96 04/25/96 Investor Group Sterling Chemicals Inc 798.4 12.00 47.69 47.69
10/14/96 04/29/96 Fidelity Financial of Ohio Inc Circle Finl,Sharonville,Ohio 27.8 38.00 38.18 43.40
09/03/96 04/29/96 Hubco Inc,Mahwah,New Jersey Hometown Bancorporation Inc,CT 31.9 17.75 29.09 29.09
03/27/97 04/29/96 Provident Cos Paul Revere Corp(Textron Inc) 1171.1 26.00 5.58 8.90
08/14/96 05/07/96 Tiger Real Estate Fund LP Kahler Realty Corp 222.7 17.00 13.33 9.68
10/01/96 05/10/96 HF Bancorp Inc,Hemet,CA Palm Springs Savings Bank, CA 17.3 14.38 43.75 43.75
08/30/96 05/13/96 Getinge Industrier AB MDT Corp 70.3 5.50 22.22 4.76
11/15/96 05/16/96 Metrocall Inc A+ Network Inc 345.1 21.10 40.67 63.88
07/23/96 05/20/96 General Electric Capital Svcs AmeriData Technologies Inc 454.8 16.00 25.49 47.13
08/29/96 05/20/96 Finova Group Inc Financing for Science Intl Inc 39.2 6.40 6.67 12.53
09/30/96 05/23/96 Luther Burbank Savings,CA NHS Financial,San Rafael,CA 29.6 11.50 17.95 21.05
09/04/96 05/24/96 Joint Energy Dvlp Investments Clinton Gas Systems Inc 38.4 6.75 14.89 31.71
07/02/96 05/24/96 Lear Corp Masland Corp 413.5 26.00 18.18 30.00
01/28/97 05/29/96 Regions Finl,Birmingham,AL Florida First Bancorp Inc,FL 40.9 11.65 19.49 33.14
10/01/96 06/06/96 Investor Group AT&T Capital Corp(AT&T Corp) 2128.6 45.00 38.46 42.29
12/09/96 06/06/96 Greater Bay Bancorp Cupertino National Bancorp,CA 27.7 13.79 20.83 23.03
08/23/96 06/10/96 Vemco Acquisition Corp Bailey Corp 47.8 8.75 6.06 11.11
07/22/96 06/10/96 Merck-Medco Managed Care Inc SysteMed Inc 64.8 3.00 4.35 9.09
07/23/96 06/11/96 Forstmann Little & Co Community Health Systems Inc 1080.0 52.00 19.89 18.86
11/07/96 06/13/96 Citizens Financial Group,RI Farmers & Mechanics Bank,CT 52.9 32.00 62.03 62.03
11/14/96 06/14/96 Western Ohio Financial Corp Seven Hills Financial 11.0 19.70 19.38 19.38
09/16/96 06/20/96 Public Storage Inc Public Storage Properties X 50.2 20.92 13.08 10.83
</TABLE>
J.C. Bradford & Co.
<PAGE> 68
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
VALUE OF PRICE 1 WEEK 4 WEEKS
DATE DATE TRANSACTION PER PRIOR TO PRIOR TO
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE ANN. DATE ANN. DATE
- --------- --------- ------------------------------ ------------------------------ ----------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
09/16/96 06/20/96 Public Storage Inc Public Storage Properties XII 55.2 22.34 14.56 15.30
08/23/96 06/21/96 United Communications Group Computer Petroleum Corp 12.0 3.85 46.67 71.11
12/05/96 06/24/96 Renaissance Cosmetics Inc MEM Co Inc 38.2 7.50 81.82 90.48
11/01/96 06/24/96 First Banks America Inc Sunrise Bancorp,Roseville,CA 18.7 4.00 52.38 45.46
02/21/97 06/27/96 Northwest Svgs Bk,Warren,PA Bridgeville Savings Bank 18.3 16.00 10.35 8.48
10/02/96 06/28/96 General Re Corp National Re Corp 904.6 53.00 65.63 60.61
09/27/96 06/28/96 Investor Group Salem Corp 46.6 25.00 23.46 11.73
09/25/96 07/01/96 Rockwell International Corp Brooktree Corp 261.8 15.00 64.38 16.51
03/25/97 07/01/96 Tribune Co Renaissance Commun Corp 1094.4 36.00 19.01 20.50
08/08/96 07/02/96 Beacon Group Energy Investment Ambar Inc 66.6 18.00 17.07 50.00
10/10/96 07/12/96 Astor Chemicals ADCO Technologies Inc 53.8 10.25 51.85 57.69
03/01/97 07/15/96 FBOP Corp,Oak Park,Illinois SDNB Finl Corp, San Diego,CA 25.8 8.00 16.36 18.52
08/27/97 07/19/96 Huntsman Corp Rexene Corp 606.8 16.00 60.00 56.10
10/25/96 07/22/96 Cisco Systems Inc Telebit Corp 196.3 13.35 22.76 4.71
02/19/97 07/23/96 Capstar Broadcasting Partners Osborn Communications Corp 89.9 15.38 50.00 38.20
01/03/97 07/29/96 First Nationwide Bank,CA Cal Fed Bancorp,Los Angeles,CA 1287.8 23.50 32.39 31.47
11/29/96 08/02/96 General Electric Capital Corp First Colony Corp 1799.2 36.15 32.66 39.04
04/07/97 08/05/96 American Radio Systems Corp EZ Communications Inc 687.3 47.30 56.36 89.20
02/14/97 08/05/96 PacifiCare Health Systems Inc FHP International Corp 2000.1 33.27 27.37 19.10
10/03/96 08/07/96 Magna International Inc Douglas & Lomason Co 134.6 31.00 90.77 103.28
08/06/97 08/09/96 Houston Industries Inc NorAm Energy Corp 3648.8 16.12 46.52 41.69
11/25/96 08/14/96 Muenchener Rueckversicherungs American Re Corp 3967.8 65.00 41.69 44.04
11/07/96 08/14/96 OSI Holdings Corp Payco American Corp 161.9 14.00 17.90 60.00
09/26/96 08/15/96 Sears Roebuck & Co Orchard Supply Hardware Stores 423.7 35.00 25.56 28.44
09/20/96 08/19/96 Commonwealth Aluminum Corp CasTech Aluminum Group Inc 328.7 20.50 57.69 45.13
12/17/96 08/26/96 Conseco Inc American Travellers Corp 868.3 36.91 37.35 81.17
03/04/97 08/26/96 Conseco Inc Capitol American Financial 715.5 37.71 51.60 56.31
01/09/97 08/26/96 Columbus McKinnon Corp Spreckels Industries Inc 259.4 24.00 24.68 29.73
11/08/96 08/28/96 Doubletree Corp Red Lions Hotels(Red Lion Inn) 1174.1 30.38 33.55 31.38
11/14/96 08/29/96 Cypress Group LLC Amtrol Inc 227.2 28.25 56.94 56.94
01/06/97 08/30/96 NationsBank Corp,Charlotte,NC Boatmen's Bancshares,St Louis 9667.1 60.27 48.36 48.36
03/06/97 09/02/96 Potash Corp of Saskatchewan Arcadian Corp 1723.3 25.71 20.99 26.96
</TABLE>
J.C. Bradford & Co.
<PAGE> 69
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
VALUE OF PRICE 1 WEEK 4 WEEKS
DATE DATE TRANSACTION PER PRIOR TO PRIOR TO
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE ANN. DATE ANN. DATE
- --------- --------- ------------------------------ ------------------------------ ----------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
12/23/96 09/09/96 Revco DS Inc Big B Inc(Revco DS Inc) 335.4 17.25 66.27 58.62
01/03/97 09/10/96 Louisiana-Pacific Corp GreenStone Industries Inc 29.2 5.25 52.73 58.49
03/04/97 09/11/96 American Eco Corp Chempower Inc 50.0 6.20 48.06 45.88
06/30/97 09/12/96 Temple-Inland Financial Svcs California Financial Hldg,CA 146.5 30.00 31.87 31.15
03/31/97 09/16/96 Mutual Savings Bk,Milwaukee,WI First Fed Bancshares of Eau Cl 132.7 18.85 25.67 25.67
12/06/96 09/16/96 Schnitzer Steel Industries Inc Proler International Corp 42.5 9.00 125.00 148.28
04/03/97 09/16/96 PennFirst Bancorp,Ellwood,PA Troy Hill Bancorp,Pennsylvania 22.4 21.15 55.23 52.43
01/27/97 09/16/96 City National Bk,Beverly Hills Ventura County Natl Bancorp,CA 46.7 5.03 43.71 38.76
02/28/97 09/26/96 AH Belo Corp Providence Journal Co 1429.6 32.27 64.43 65.49
06/27/97 09/30/96 Texas Pacific Group Inc Belden & Blake Corp 405.7 27.00 27.81 31.71
02/28/97 09/30/96 Cullen/Frost Bankers Inc,Texas Corpus Christi Bancshares,TX 32.4 18.84 17.75 17.75
04/25/97 10/01/96 Prestige Fragrance & Cosmetics Cosmetic Center Inc 32.8 7.63 45.33 103.47
12/02/96 10/07/96 Computer Associates Intl Inc Cheyenne Software Inc 1247.6 30.50 34.81 30.48
11/22/96 10/08/96 Nash Finch Co Super Food Services Inc 164.2 15.50 36.26 29.17
06/03/97 10/15/96 Investor Group Conrail Inc 10435.9 115.00 60.28 60.28
12/23/96 10/15/96 Berkshire Hathaway Inc FlightSafety International 1518.1 50.00 10.80 10.80
01/27/97 10/16/96 City National Bk,Beverly Hills Riverside Natl Bk,Riverside,CA 42.8 18.00 2.86 29.73
02/27/97 10/17/96 Investor Group Triad Systems Corp 193.1 9.25 60.87 89.74
03/31/97 10/21/96 Investor Group Detroit & Canada Tunnel Corp 36.5 54.00 74.19 54.29
04/16/97 10/23/96 Thomas H Lee Equity Fund III Syratech Corp 304.4 32.00 28.00 29.29
07/01/97 10/31/96 Patriot American Hospitality California Jockey Club/Bay 199.7 33.00 88.57 103.08
12/18/96 10/31/96 Food Lion Inc Kash N' Karry Food Stores Inc 347.1 26.00 33.33 6.67
02/27/97 11/04/96 JC Penney Co Eckerd Corp 3298.5 35.00 28.44 29.63
03/05/97 11/04/96 Citizens Bank of Massachusetts Grove Banks,Chesnut Hill,MA 78.7 51.00 46.76 50.00
05/19/97 11/04/96 Glendale Fed Bk,Glendale,CA TransWorld Bancorp,California 63.2 18.25 12.31 30.36
03/14/97 11/05/96 Harbour Group Ltd Panatech Research&Development 29.2 7.00 55.56 51.35
06/13/97 11/07/96 Shoreline Financial Corp,MI SJS Bancorp Inc,St Joseph,MI 26.5 27.00 13.68 24.14
06/12/97 11/12/96 Investor Group Leslie's Poolmart 112.8 14.50 31.82 31.82
12/17/96 11/13/96 IBM Corp Edmark Corp 123.8 15.50 63.16 31.92
01/20/97 11/13/96 FCY Inc Medex Inc 150.6 23.50 57.98 66.74
06/27/97 11/14/96 Vermont Financial Services,VT Eastern Bancorp,Williston,VT 91.9 24.23 4.22 16.77
01/15/97 11/15/96 Mountasia Entertainment Mountasia Entertainment 98.2 3.50 12.00 40.00
</TABLE>
J.C. Bradford & Co.
<PAGE> 70
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
VALUE OF PRICE 1 WEEK 4 WEEKS
DATE DATE TRANSACTION PER PRIOR TO PRIOR TO
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE ANN. DATE ANN. DATE
- --------- --------- ------------------------------ ------------------------------ ----------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
01/02/97 11/18/96 Intermet Corp Sudbury Inc 155.4 12.50 25.00 9.89
05/01/97 11/22/96 ABN-AMRO Holding NV Standard Fed Bancorp,Troy,MI 1971.1 59.00 6.79 15.40
02/28/97 11/25/96 PCA International Inc American Studios Inc 66.3 2.50 110.53 166.67
01/09/97 11/25/96 Applied Materials Inc Opal Inc 189.6 18.50 64.44 105.56
12/30/96 11/26/96 Clorox Co Armor All Products(McKesson) 410.1 19.09 13.97 13.97
01/16/97 11/27/96 Bell Industries Inc Milgray Electronics Inc 100.0 14.77 16.99 20.57
04/30/97 11/29/96 CityFront Center LLC Chicago Dock and Canal Trust 177.9 25.00 22.70 22.70
01/06/97 11/29/96 Tyco International Ltd ElectroStar Inc 111.0 14.00 27.27 16.67
01/30/97 12/02/96 Venator Group Inc Eastbay Inc 146.0 24.00 28.00 23.08
05/01/97 12/03/96 Dime Bancorp Inc,New York,NY BFS Bankorp Inc,New York,NY 91.5 52.00 16.85 22.35
02/26/97 12/05/96 ServiceMaster LP Barefoot Inc 230.9 16.00 28.00 42.22
04/11/97 12/05/96 Public Storage Inc Public Storage Properties XIV 82.4 26.00 30.82 31.65
04/11/97 12/05/96 Public Storage Inc Public Storage Properties XV 79.1 26.00 28.40 32.48
01/10/97 12/05/96 Hadco Corp Zycon Corp 211.7 18.00 46.94 94.60
02/21/97 12/11/96 Aon Corp Alexander & Alexander Services 1227.4 17.50 8.53 9.38
01/27/97 12/16/96 Zurn Industries Inc Eljer Industries Inc 175.6 24.00 84.62 90.10
01/27/97 12/16/96 Millipore Corp Tylan General Inc 147.7 16.00 26.73 26.73
03/25/97 12/19/96 NIPSCO Industries Inc IWC Resources Corp 290.6 32.00 39.13 45.46
07/01/97 12/23/96 Mercantile Bancorp,St Louis,MO Roosevelt Finl Group,Missouri 1187.1 24.43 32.05 26.09
04/16/97 12/24/96 American General Corp Home Beneficial Corp 665.1 39.00 39.29 50.00
06/09/97 12/26/96 Commerce Security Bancorp,CA Eldorado Bancorp,Tustin,CA 91.7 23.00 14.29 12.88
05/01/97 12/27/96 US Bancorp,Portland,Oregon Business & Professional Bk,CA 33.5 18.00 20.00 30.91
02/25/97 01/07/97 MedTrans Inc(Laidlaw Inc) American Medical Response Inc 1011.1 40.00 23.08 36.75
02/10/97 01/07/97 DLB Oil & Gas Inc Bonray Drilling Corp 12.7 30.00 11.11 30.44
04/24/97 01/17/97 AMF Bowling Centers(AMF Group) American Recreation Centers 70.7 8.50 33.33 70.00
07/08/97 01/21/97 First Maryland Bancorp,MD Dauphin Deposit Corp,PA 1343.4 46.93 43.28 48.97
03/05/97 01/22/97 Western Atlas Inc Norand Corp 320.8 33.50 87.41 94.20
07/02/97 01/24/97 American Standard Inc INCSTAR Corp(Sorin Biomedical) 106.3 6.32 53.21 68.53
07/24/97 01/27/97 EndoSonics Corp Cardiometrics Inc 56.8 7.54 13.81 47.12
03/07/97 01/27/97 Honeywell Inc Measurex Corp 597.0 35.00 42.13 45.83
03/10/97 02/03/97 Scotsman Industries Inc Kysor Industrial Corp 359.2 43.00 17.01 24.64
03/31/97 02/10/97 Vencor Inc TheraTx Inc 378.2 17.10 35.45 59.07
</TABLE>
J.C. Bradford & Co.
<PAGE> 71
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
VALUE OF PRICE 1 WEEK 4 WEEKS
DATE DATE TRANSACTION PER PRIOR TO PRIOR TO
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE ANN. DATE ANN. DATE
- --------- --------- ------------------------------ ------------------------------ ----------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
03/24/97 02/11/97 Johnson & Johnson Innotech Inc 135.6 13.75 64.18 54.93
09/17/97 02/14/97 Greenwich Air Services Inc UNC Inc 442.7 15.00 41.18 36.36
06/27/97 02/18/97 NGC Corp Destec Energy Inc 1222.4 21.65 80.42 63.40
08/06/97 02/19/97 United Bankshares Inc,WV First Patriot Bankshares,VA 35.4 17.00 9.68 4.62
07/07/97 02/25/97 Pacific Century Financial Corp CU Bancorp,Encino,California 178.4 15.34 18.00 25.22
07/21/97 02/26/97 MassBank Corp,Reading,MA Glendale Co-Operative Bank,MA 6.9 28.00 33.33 40.00
08/01/97 02/28/97 CIGNA Corp Healthsource Inc 1652.7 21.75 32.82 64.15
06/27/97 03/04/97 Ultimate Electronics Inc Audio King Corp 6.0 2.10 68.00 68.00
08/13/97 03/06/97 Fireman's Fund Insurance Co Crop Growers Corp 82.1 10.25 15.49 41.38
09/02/97 03/10/97 General Electric Co Greenwich Air Services Inc 519.2 31.00 33.33 34.78
04/15/97 03/11/97 PacifiCorp Holdings Inc TPC Corp 408.5 13.41 65.05 55.48
10/01/97 03/14/97 Marshall & Ilsley,Milwaukee,WI Security Capital,Milwaukee,WI 1115.8 111.06 32.61 39.92
09/04/97 03/17/97 TCF Finl Corp,Minneapolis,MN Standard Financial,Chicago,IL 428.0 25.81 28.25 24.76
06/17/97 03/20/97 InvestCorp Falcon Building Products Inc 584.5 17.75 49.47 52.69
06/12/97 03/21/97 Olicom A/S CrossComm Corp 84.6 8.93 70.17 70.17
04/28/97 03/24/97 Elsevier Science MDL Information Systems 310.7 32.00 43.82 54.22
05/07/97 03/25/97 IBP Inc (Occidental Petroleum) Foodbrands America Inc 657.5 23.40 50.97 61.38
09/03/97 03/26/97 Hearst Broadcasting Group Argyle Television Inc 322.2 26.50 16.48 14.60
08/01/97 03/26/97 Deposit Guaranty,Jackson,MS CitiSave Finl,Baton Rouge,LA 20.3 20.50 50.46 46.43
10/01/97 03/31/97 Astoria Finl,Lake Success,NY Greater NY Svgs Bk,New York,NY 318.1 25.16 56.01 62.30
06/03/97 03/31/97 Moore Corp Ltd Peak Technologies Group Inc 169.8 18.00 97.26 65.52
08/28/97 04/08/97 Citizens Financial Group,RI BNH Bancshares,New Haven,CT 58.0 15.50 26.53 19.23
06/12/97 04/08/97 Jacor Communications Inc Premiere Radio Networks Inc 208.9 18.78 19.23 19.23
06/24/97 04/09/97 Public Storage Inc Public Storage Properties XVI 84.2 20.01 5.32 2.62
06/24/97 04/09/97 Public Storage Inc Public Storage Ppties XVIII 78.6 19.55 7.12 2.90
06/24/97 04/09/97 Public Storage Inc Public Storage Properties XIX 67.9 16.52 3.25 3.25
05/13/97 04/09/97 Tomkins PLC Stant Corp 574.0 21.50 48.28 49.57
07/21/97 04/09/97 Procter & Gamble Co Tambrands Inc 2003.9 50.00 14.94 14.94
06/13/97 04/10/97 Hedstrom Corp(Hedstrom Hldgs) ERO Inc 203.6 11.25 16.88 30.44
06/26/97 04/10/97 Compaq Computer Corp Microcom Inc 267.6 16.25 91.18 35.42
11/12/97 04/14/97 Neptune Orient Lines Ltd APL Ltd 878.5 33.50 65.43 42.55
01/05/98 04/14/97 Patriot Amer Hosp/Wyndham Intl Wyndham Hotel Corp 773.1 30.53 44.52 48.93
</TABLE>
J.C. Bradford & Co.
<PAGE> 72
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
VALUE OF PRICE 1 WEEK 4 WEEKS
DATE DATE TRANSACTION PER PRIOR TO PRIOR TO
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE ANN. DATE ANN. DATE
- --------- --------- ------------------------------ ------------------------------ ----------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
06/30/97 04/15/97 Lernout & Hauspie Speech Kurzweil Applied Intelligence 51.3 5.52 69.69 66.49
07/10/97 04/18/97 Investor Group LIVE Entertainment Inc 53.1 6.00 6.67 50.00
05/28/97 04/21/97 ITT Industries Inc Goulds Pumps Inc 922.1 37.00 57.45 60.87
06/10/97 04/21/97 Harcourt General Inc National Education Corp 776.1 21.00 54.13 40.00
09/04/97 04/22/97 Fox Kids Worldwide Inc International Family Ent Inc 1862.9 35.00 95.80 107.41
12/12/97 04/25/97 Peoples Bancorp,Marietta,OH Gateway Bancorp,KY 20.6 18.75 15.39 25.00
10/01/97 05/01/97 Area Bancshares Corp,Kentucky Cardinal Bancshares,Kentucky 96.0 60.26 33.91 31.00
08/01/97 05/01/97 Chart Industries Inc Cryenco Sciences Inc 19.2 2.75 76.00 72.55
07/30/97 05/01/97 Choucroute Partners David White Inc 5.9 12.00 14.29 18.52
08/19/97 05/05/97 Giant Eagle Inc Riser Foods Inc 468.5 42.00 29.23 26.79
06/13/97 05/05/97 Incentive AB Vivra Inc 1660.5 35.62 41.77 35.70
08/15/97 05/06/97 GTE Corp BBN Corp 713.8 29.00 32.57 64.54
01/05/98 05/06/97 Foundation Health Systems Inc Physicians Health Services Inc 268.2 28.25 26.97 51.68
07/25/97 05/06/97 Riddell Sports Inc Varsity Spirit 91.0 18.90 28.14 23.93
06/03/98 05/07/97 Unitrin Inc Reliable Life Insurance Co 261.1 120.13 51.11 52.06
09/10/97 05/08/97 Nicolet Biomedical Inc Imex Medical Systems Inc 9.3 1.35 2.76 2.76
11/04/97 05/08/97 Apollo Management LP Living Centers of America Inc 1048.2 40.50 22.73 41.49
10/16/97 05/12/97 CTS Corp Dynamics Corp of America 244.6 64.08 94.17 112.70
08/14/97 05/21/97 Oxford Automotive Inc Howell Industries Inc 23.0 37.00 30.40 32.14
10/06/97 05/23/97 Price Communications Corp Palmer Wireless Inc 870.4 17.50 55.56 64.71
08/08/97 05/27/97 Columbia Natural Resources Inc Alamco Inc 102.8 15.75 11.50 16.67
07/03/97 05/28/97 Owens Corning Fibreboard Corp 631.2 55.00 22.22 49.66
07/09/97 05/30/97 Whitehall Street Real Estate Integrated Living Communities 79.7 11.50 21.05 50.82
10/16/97 05/30/97 Colonnade Capital LLC National Picture and Frame Co 60.3 12.00 28.00 28.00
09/08/97 06/03/97 Humana Inc Physician Corp of America 405.1 7.00 12.00 23.08
07/14/97 06/05/97 Intermedia Communications Inc DIGEX Inc 171.6 13.00 35.95 31.65
10/14/97 06/06/97 Excel Communications Inc Telco Communications Group Inc 1046.5 29.24 23.77 26.44
10/01/97 06/09/97 SAFECO Corp American States Financial Corp 3127.1 47.00 48.62 57.32
07/15/97 06/09/97 Atlas Copco North America Inc Prime Service Inc 1112.0 32.00 29.95 31.28
10/01/97 06/12/97 Thyssen AG Giddings & Lewis Inc 703.0 21.00 9.80 0.60
08/29/97 06/16/97 United Dominion Industries Ltd Core Industries Inc 275.2 25.00 37.93 49.25
09/30/97 06/16/97 Investor Group Frederick's of Hollywood, Inc. 69.4 7.75 44.47 25.95
</TABLE>
J.C. Bradford & Co.
<PAGE> 73
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
VALUE OF PRICE 1 WEEK 4 WEEKS
DATE DATE TRANSACTION PER PRIOR TO PRIOR TO
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE ANN. DATE ANN. DATE
- --------- --------- ------------------------------ ------------------------------ ----------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
10/10/97 06/16/97 Genesis Eldercare Multicare Cos Inc 1249.1 28.00 13.71 34.94
07/24/97 06/17/97 Monterey Resources Inc McFarland Energy Inc 111.2 18.55 41.33 44.78
07/25/97 06/17/97 CCL Industries Inc Seda Specialty Packaging Corp 182.6 29.00 36.47 52.63
08/15/97 06/19/97 Gateway 2000 Inc Advanced Logic Research Inc 206.8 15.50 30.53 34.78
11/13/97 06/23/97 Crestar Finl Corp,Richmond,VA American National Bancorp,MD 75.2 20.32 33.21 36.57
10/17/97 06/23/97 General Motors Acceptance(GM) Integon Corp 517.1 26.00 92.59 74.79
10/14/97 06/24/97 Louis Dreyfus Natural Gas American Exploration Co 275.5 15.96 15.03 21.60
07/25/97 06/24/97 JW Childs Equity Partners LP Jillians Entertainment Corp 4.7 0.50 77.78 45.46
09/29/97 06/24/97 Three Rivers Holding Corp SMT Health Services Inc 75.6 11.75 2.17 8.05
10/09/97 06/30/97 Eaton Corp Fusion Systems Corp 308.6 39.00 9.86 24.30
12/18/97 07/01/97 HMN Financial,Spring Valley,MN Marshalltown Financial Corp,IA 25.9 17.51 12.97 16.73
09/23/97 07/02/97 Bunzl PLC American Filtrona Corp 183.5 46.52 2.24 3.38
10/28/97 07/02/97 Summa Industries Inc Calnetics Corp 23.4 7.35 33.64 25.11
09/26/97 07/03/97 Port Royal Holdings Inc Krystal Co 145.4 14.50 169.77 176.19
08/06/97 07/03/97 Raab Karcher AG(VEBA AG) Wyle Electronics 633.0 50.00 38.41 35.14
10/24/97 07/08/97 ING Groep NV Equitable of Iowa Cos 2626.4 68.00 20.35 21.70
09/23/97 07/09/97 CDSI Holding Corp Control Data Systems Inc 273.9 20.25 30.65 35.00
10/28/97 07/14/97 Investor Group Katz Media Group 371.9 11.00 69.23 93.41
09/04/97 07/15/97 Nortek Inc Ply-Gem Industries Inc 476.3 19.50 16.42 19.08
09/29/97 07/17/97 Lucent Technologies Inc Octel Communications Corp 1824.8 31.00 37.40 41.31
12/02/97 07/23/97 Benihana Inc Rudy's Restaurant Group 18.8 5.00 70.21 72.04
09/15/97 07/24/97 Mallinckrodt Inc Nellcor Puritan-Bennett 1858.4 28.50 43.40 57.24
02/02/98 07/28/97 Intel Corp Chips and Technologies Inc 422.9 17.50 32.08 68.68
10/08/97 07/28/97 Sun Healthcare Group Inc Regency Health Services Inc 587.9 22.00 50.43 43.09
09/24/97 07/31/97 American Industrial Partners Bucyrus International Inc 193.3 18.00 46.94 71.43
01/27/98 07/31/97 Western Bancorp,California Santa Monica Bank 198.2 28.00 17.59 28.74
09/26/97 08/01/97 Integrated Health Services Inc Community Care of America Inc 94.0 4.00 18.52 88.24
12/02/97 08/07/97 SPS Technologies Inc Magnetic Technologies Corp 16.8 5.00 25.00 33.33
12/22/97 08/08/97 USF&G Corp Titan Holdings Inc 278.1 22.47 19.06 24.85
12/19/97 08/11/97 Confetti Acquisition Inc Amscan Holdings Inc 334.9 16.50 37.50 46.67
09/17/97 08/12/97 Steris Corp Isomedix Inc 139.8 20.50 15.49 13.89
03/03/98 08/12/97 Hicks Muse Tate & Furst Inc LIN Television Corp 1960.6 55.00 18.75 18.01
</TABLE>
J.C. Bradford & Co.
<PAGE> 74
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
VALUE OF PRICE 1 WEEK 4 WEEKS
DATE DATE TRANSACTION PER PRIOR TO PRIOR TO
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE ANN. DATE ANN. DATE
- --------- --------- ------------------------------ ------------------------------ ----------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
09/24/97 08/14/97 MedPartners Inc Talbert Medical Management 189.0 63.00 18.87 36.96
12/29/97 08/14/97 Madison Dearborn Partners Tuesday Morning Corp 298.6 25.00 25.79 11.11
12/05/97 08/14/97 Comforce Corp Uniforce Services Inc 140.7 32.24 37.56 52.62
10/21/97 08/25/97 Household International Inc ACC Consumer Finance Corp 186.9 21.39 34.75 29.64
10/03/97 08/25/97 Cambrex Corp BioWhittaker Inc 130.5 11.63 38.87 47.68
12/22/97 08/26/97 Imperial Holly Corp Savannah Foods & Industries 582.9 20.25 14.89 17.39
02/25/98 08/28/97 Wellsford Real Properties Inc Value Property Trust 186.6 16.17 20.90 18.68
10/10/97 08/28/97 Applied Power Inc Versa Technologies Inc 141.9 24.63 33.11 31.33
01/09/98 09/04/97 Tyson Foods Inc Hudson Foods Inc 648.4 21.23 31.63 28.64
11/26/97 09/05/97 Misys PLC Medic Computer Systems Inc 915.8 35.00 12.00 25.00
12/22/97 09/11/97 Pillowtex Corp Fieldcrest Cannon Inc 768.2 34.00 8.58 31.72
12/09/97 09/12/97 Tivoli Systems Inc(IBM Corp) Unison Software Inc 183.0 15.00 25.00 22.45
02/06/98 09/15/97 Star Banc Corp,Cincinnati,OH Great Financial Corp,Kentucky 663.5 44.00 23.51 33.84
01/16/98 09/19/97 Marshall Industries Sterling Electronics Corp 217.6 21.00 30.23 57.01
12/05/97 09/22/97 Conseco Inc Washington National Corp 424.0 33.25 4.11 12.24
01/22/98 09/23/97 Investor Group El Chico Restaurants Inc 49.2 12.75 75.86 104.00
01/12/98 09/23/97 Shell Oil(Royal Dutch Petro) Tejas Gas Corp 2165.6 61.50 22.39 33.70
11/24/97 09/24/97 Ligand Pharmaceuticals Inc Allergan Ligand Retinoid 71.4 21.97 11.59 7.83
02/19/98 09/25/97 Carpenter Technology Corp Talley Industries Inc 309.4 12.00 10.98 34.27
12/22/97 09/29/97 Wallace Computer Services Inc Graphic Industries Inc 424.5 21.75 19.18 34.88
11/26/97 09/30/97 AHC Acquisition Corp Arbor Health Care Co 424.2 45.00 19.60 26.76
12/05/97 10/01/97 Land O' Lakes Inc Alpine Lace Brands Inc 48.4 9.13 48.98 46.00
12/23/97 10/09/97 Borden Chemical Inc(Borden) Melamine Chemicals Inc 119.7 20.50 72.63 70.83
11/19/97 10/10/97 Kennametal Inc Greenfield Industries Inc 957.0 38.00 26.67 44.08
11/21/97 10/15/97 FinishMaster Inc(Lacey Distn) Thompson PBE Inc 69.3 8.00 33.33 42.22
02/12/98 10/16/97 Hartford Financial Services Omni Insurance Group Inc 184.7 31.75 75.78 130.91
12/29/97 10/17/97 Emerson Electric Co Computational Systems Inc 158.6 29.65 48.25 62.47
11/19/97 10/17/97 BTR PLC Exide Electronics Group Inc 583.2 29.00 133.17 149.46
03/31/98 10/17/97 First Federal Savings,Iowa GFS Bancorp Inc,Grinnell,IA 17.9 17.65 7.38 13.87
02/24/98 10/20/97 Starwood Hotels & Resorts ITT Corp 13748.2 85.00 98.25 95.40
03/06/98 10/20/97 Kinder Morgan Energy Partners Santa Fe Pacific Pipeline 1473.0 54.21 33.24 38.56
01/07/98 10/21/97 Berkshire Hathaway Inc International Dairy Queen Inc 596.9 27.00 9.09 9.37
</TABLE>
J.C. Bradford & Co.
<PAGE> 75
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
VALUE OF PRICE 1 WEEK 4 WEEKS
DATE DATE TRANSACTION PER PRIOR TO PRIOR TO
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE ANN. DATE ANN. DATE
- --------- --------- ------------------------------ ------------------------------ ----------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
02/27/98 10/23/97 Eastern Bank Corp,Lynn,MA Emerald Isle Bancorp,Quincy,MA 76.6 33.00 28.78 33.33
02/10/98 10/27/97 National Australia Bank Ltd HomeSide Inc 1230.1 27.83 12.14 7.28
04/01/98 10/28/97 First Empire State Corp,NY ONBANCorp Inc,Syracuse,NY 893.0 69.50 12.89 21.40
05/22/98 11/03/97 FirstMerit Corp CoBancorp Inc 157.3 44.50 30.88 52.14
03/03/98 11/12/97 Tekni-Plex Inc PureTec Corp 324.6 3.50 34.94 31.77
03/25/98 11/13/97 Investor Group Chartwell Leisure Inc 240.8 17.25 4.55 11.29
01/08/98 11/18/97 Cendant Corp Jackson Hewitt 468.2 68.00 21.70 47.83
02/27/98 11/19/97 Texas Instruments Inc Amati Communications Corp 459.8 20.00 44.14 13.48
01/28/98 11/21/97 TRW Inc BDM International Inc 888.0 29.50 43.47 38.01
01/20/98 11/21/97 Co-Steel Inc New Jersey Steel(Von Roll) 173.5 23.00 170.59 166.67
02/03/98 11/24/97 Davel Communications Group Inc Communications Central Inc 102.4 10.50 25.37 12.00
01/07/98 11/24/97 Cypress Group LLC General Host Corp 326.2 5.50 62.96 79.59
02/25/98 11/26/97 Investor Group Universal Hospital Services 133.0 15.50 29.17 25.25
12/30/97 11/28/97 Lund International Holdings Deflecta-Shield Corp 89.8 16.00 33.33 77.78
06/02/98 12/02/97 Patriot Amer Hosp/Wyndham Intl Interstate Hotels Co 2055.9 37.50 8.70 27.39
02/13/98 12/12/97 Voith Sulzer Paper Technology Impact Systems Inc 28.6 2.75 49.15 44.26
05/29/98 12/12/97 Bethlehem Steel Corp Lukens Inc 700.2 30.00 94.33 69.61
05/01/98 12/15/97 US Bancorp,Minneapolis,MN Piper Jaffray Cos 767.8 37.25 24.17 54.01
01/30/98 12/16/97 SulzerMedica(Gebrueder Sulzer) Spine-Tech Inc 621.1 52.00 52.94 55.81
01/23/98 12/17/97 InvaCare Corporation Suburban Ostomy Supply Co Inc 130.8 11.75 13.25 13.25
06/17/98 12/19/97 Harsco Corp Chemi-Trol Chemical Co 46.1 23.00 61.40 64.29
05/20/98 12/22/97 MDC Communications Corp Artistic Greetings Inc 33.6 5.70 47.10 52.00
04/01/98 12/23/97 Outsourcing Solutions Inc Union Corp 193.0 31.50 13.51 23.53
07/06/98 12/30/97 Pacific Bank NA,CA Sterling West Bancorp,CA 12.2 7.11 35.43 23.65
07/17/98 01/05/98 Meditrust Acquisition Co La Quinta Inns Inc 2907.5 26.00 35.95 35.95
04/01/98 01/06/98 Oakwood Homes Corp Schult Homes Corp 101.4 22.50 10.43 19.21
02/19/98 01/12/98 Research Institute of America Computer Language Research Inc 325.4 22.50 62.16 69.81
07/31/98 01/13/98 CertainTeed Corp Bird Corp 39.2 5.50 18.92 29.41
06/02/98 01/14/98 EastGroup Properties Meridian Point Realty Trust 51.7 8.50 65.85 88.89
10/05/98 01/20/98 Albertson's Inc Buttrey Food and Drug Stores 139.2 15.50 44.19 47.62
05/27/98 01/20/98 Investor Group Regal Cinemas Inc 1462.7 31.00 10.71 34.78
05/15/98 01/21/98 Microsemi Corp BKC Semiconductors Inc 13.3 9.17 59.48 66.73
</TABLE>
J.C. Bradford & Co.
<PAGE> 76
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
VALUE OF PRICE 1 WEEK 4 WEEKS
DATE DATE TRANSACTION PER PRIOR TO PRIOR TO
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE ANN. DATE ANN. DATE
- --------- --------- ------------------------------ ------------------------------ ----------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
06/11/98 01/26/98 Compaq Computer Corp Digital Equipment Corp 9123.7 60.00 50.25 62.45
03/03/98 01/27/98 Sage Group PLC State of the Art Inc 245.2 22.00 35.39 35.39
03/05/98 01/28/98 Kerr Group Inc Sun Coast Industries Inc 45.5 10.75 62.26 84.95
06/05/98 01/29/98 US Aggregates Inc Monroc Inc 50.3 10.77 10.46 6.37
05/21/98 01/29/98 AmeriServe Food Distn Inc ProSource Inc(Onex Corp) 343.3 15.00 106.90 100.00
06/18/98 02/09/98 USA Waste Services Inc American Waste Services 122.1 4.00 156.00 166.67
06/30/98 02/09/98 Banco Bilbao Vizcaya SA PonceBank 164.5 26.10 14.10 25.78
04/16/98 02/09/98 Fountain View(Heritage) Summit Care Corp 275.1 21.00 31.25 37.71
06/04/98 02/10/98 Canadian National Railway Co Illinois Central Corp 2931.0 39.00 20.00 18.86
06/10/98 02/11/98 Sombrero Acquisition Corp MTL Inc 250.1 40.00 38.53 56.10
05/20/98 02/11/98 Wolters Kluwer NV Waverly Inc 375.6 39.00 50.73 50.73
08/17/98 02/17/98 HB Acquisition Corp Bell Sports Corp 165.7 10.25 13.10 8.61
05/27/98 02/17/98 Applied Graphics Technologies Devon Group Inc 474.4 60.08 32.03 37.91
10/15/98 02/19/98 Hollywood Park Inc Casino Magic Corp 344.8 2.27 32.07 32.07
04/06/98 02/24/98 Siebe PLC Wonderware Corp 362.7 24.00 59.34 79.44
08/17/98 03/02/98 El Paso Natural Gas Co DeepTech International 375.4 14.00 9.80 15.46
04/30/98 03/02/98 Sunbeam Corp First Alert Inc 129.2 5.25 90.91 110.00
04/30/98 03/02/98 Sunbeam Corp Signature Brands USA Inc 81.7 8.25 60.98 106.25
05/20/98 03/05/98 Xerox Corp Intelligent Electronics Inc 341.6 7.60 19.22 34.37
07/31/98 03/06/98 Aluminum Co of America{Alcoa} Alumax Inc 3944.2 49.39 33.26 36.25
04/30/98 03/06/98 ASK AS Proxima Corp 82.9 11.00 25.71 23.94
06/25/98 03/09/98 American Cellular Corp PriCellular Corp 1385.2 14.00 16.67 16.06
06/19/98 03/10/98 Communications Instruments Inc Corcom Inc 51.7 13.00 31.65 36.84
04/20/98 03/12/98 Great Universal Stores PLC Metromail Corp 837.9 34.50 28.37 30.19
07/31/98 03/13/98 Investor Group MedCath Inc 227.8 19.00 10.95 34.51
07/10/98 03/16/98 Abbott Laboratories International Murex Tech Corp 232.7 13.00 38.21 50.73
05/11/98 03/30/98 Knowledge Beginnings Inc Children's Discovery Centers 89.1 12.25 16.67 25.64
07/21/98 04/03/98 NE Restaurant Co Inc Bertucci's Inc 96.5 10.50 35.48 35.48
05/19/98 04/08/98 Huntsman Packaging Corp Blessings Corp 269.7 21.00 18.31 34.94
05/15/98 04/09/98 Richfood Holdings Inc Dart Group Corp 193.3 160.00 11.89 19.40
07/29/98 04/09/98 Camelot Music Holdings Spec's Music Inc 26.8 3.30 65.00 65.00
06/26/98 04/10/98 CompuCom SystemsInc(Safeguard) Dataflex Corp 25.2 4.10 9.33 23.77
</TABLE>
J.C. Bradford & Co.
<PAGE> 77
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
VALUE OF PRICE 1 WEEK 4 WEEKS
DATE DATE TRANSACTION PER PRIOR TO PRIOR TO
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE ANN. DATE ANN. DATE
- --------- --------- ------------------------------ ------------------------------ ----------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
05/29/98 04/15/98 Siebe PLC Simulation Sciences Inc 146.5 10.00 16.79 11.11
07/21/98 04/17/98 Sterling Commerce Inc XcelleNet Inc 214.3 22.02 12.55 7.73
08/25/98 04/21/98 Investor Group PCA International Inc 232.5 26.50 17.78 20.46
06/24/98 04/21/98 General Electric Co PLC Tracor Inc 1323.5 40.00 16.79 25.00
06/29/98 04/22/98 Evans & Sutherland Computer AccelGraphics Inc 55.9 5.75 22.67 21.05
07/31/98 04/23/98 Piccadilly Cafeterias Inc Morrison Restaurants Inc 46.2 5.00 73.91 81.82
08/30/98 04/27/98 Genesis Health Ventures Inc Vitalink Pharmacy Services Inc 678.4 22.50 12.15 6.51
06/01/98 04/27/98 Lucent Technologies Inc Yurie Systems Inc 1044.1 35.00 17.40 49.73
07/20/98 04/28/98 Snap-On Inc Hein-Werner Corp 37.5 12.60 65.25 80.00
06/10/98 05/04/98 Tropical Sportswear Intl Corp Farah Inc 93.6 9.00 44.00 39.81
06/29/98 05/04/98 ARCO Union Texas Petroleum Holdings 2741.4 29.00 46.84 36.47
09/25/98 05/05/98 Investor Group Allied Digital Technologies Co 69.2 5.00 14.29 37.93
08/06/98 05/06/98 Fidelity & Deposit Co of MD Mountbatten Inc 43.4 14.60 6.18 4.29
06/15/98 05/08/98 Agrobios(Desc SA de CV) Authentic Specialty Foods Inc 141.9 17.00 13.33 37.37
07/14/98 05/11/98 Diamond Multimedia Systems Inc Micronics Computers Inc 31.7 2.45 15.29 50.77
06/26/98 05/13/98 Filtronic Comtek PLC Sage Laboratories Inc 20.2 17.50 34.62 35.92
08/19/98 05/18/98 Dillard's Inc Mercantile Stores Co Inc 2943.1 80.00 9.59 15.42
09/15/98 05/20/98 GE Medical Systems InnoServ Technologies 13.1 4.25 32.04 41.67
10/22/98 05/20/98 Licking Rural Electrification National Gas & Oil Co 93.0 13.00 18.18 26.06
07/22/98 05/22/98 Gambrinus Co Pete's Brewing Co 69.4 6.38 39.73 42.66
07/07/98 05/28/98 Bowne & Co Inc Donnelley Enterprise Solutions 105.2 21.00 61.54 83.61
08/28/98 06/01/98 US Xpress Enterprises Inc PST Vans Inc 83.9 7.47 35.82 10.67
07/21/98 06/12/98 Armstrong World Industries Inc Triangle Pacific Corp 1124.3 55.50 26.50 24.02
08/31/98 06/16/98 Linsalata Capital Partners Personnel Management Inc 34.9 16.00 23.08 23.08
09/08/98 06/17/98 Carlton Communications PLC Nimbus CD International Inc 264.9 11.50 5.75 10.84
07/28/98 06/18/98 Lyondell Petrochemical Co ARCO Chemical Co(ARCO) 5645.7 57.75 12.27 3.36
09/22/98 06/29/98 Key Energy Group Inc Dawson Production Services Inc 348.8 17.50 50.54 66.67
09/21/98 07/07/98 Investor Group Republic Engineered Steels 417.8 7.25 68.12 45.00
09/18/98 07/14/98 Henkel KGaA DEP Corp 89.7 5.25 95.35 78.72
09/02/98 07/17/98 DLJ Merchant Banking Inc DeCrane Aircraft Holdings Inc 181.5 23.00 28.67 33.82
10/06/98 07/20/98 SPX Corp General Signal Corp 2318.7 45.00 22.66 19.40
09/10/98 07/28/98 Network Associates Inc CyberMedia Inc 130.1 9.50 38.18 117.14
</TABLE>
J.C. Bradford & Co.
<PAGE> 78
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
PREMIUM PREMIUM
VALUE OF PRICE 1 WEEK 4 WEEKS
DATE DATE TRANSACTION PER PRIOR TO PRIOR TO
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE ANN. DATE ANN. DATE
- --------- --------- ------------------------------ ------------------------------ ----------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
09/11/98 07/29/98 EBC Texas Acquisition Corp E-Z Serve Corp 43.2 0.60 20.00 20.00
10/15/98 07/30/98 Hercules Inc BetzDearborn Inc 3090.3 72.00 94.60 73.49
11/13/98 09/23/98 USFreightways Corp Golden Eagle Group Inc 30.2 4.45 184.80 223.64
11/30/98 10/21/98 Union Planters Bk Nat Assoc Capital Factors Holdings Inc 22.2 17.50 8.95 2.94
----------------------------
Median 31.64 36.42
Average 37.02 43.16
Adj. Avg. 36.73 42.80
----------------------------
Below 20% 119 81
% Below 20% 30.7% 20.9%
</TABLE>
<PAGE> 79
STOCK PRICE ANALYSIS
UNITED FOODS, INC.
DAILY PRICE & VOLUME TRADING STATISTICS SINCE 12/31/97
UNITED FOODS, INC. - CLASS A
[GRAPH]
UNITED FOODS, INC. - CLASS B
[GRAPH]
45 J.C. Bradford & Co.
<PAGE> 80
STOCK PRICE ANALYSIS
UNITED FOODS - CLASS A
SHARES TRADED AT VARIOUS PRICES FROM 12/18/97 TO 12/18/98
<TABLE>
<CAPTION>
CUMULATIVE
-----------------------------------------------
DAYS % OF TOTAL % OF TOTAL DAYS % OF TOTAL % OF TOTAL
TRADING DAILY AVG. DAYS TRADING TRADING DAILY AVG. DAYS TRADING TRADING
RANGE (1) IN RANGE TRADED VOLUME VOLUME IN RANGE TRADED VOLUME VOLUME
- ------------------ ---------- ---------- ------- ---------- ---------- ---------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
< $2.30 0 0.0% -- 0.0% 0 0.0% -- 0.0%
$2.30 - $2.45 11 4.2% 18,800 3.7% 11 4.2% 18,800 3.7%
$2.45 - $2.60 30 11.5% 55,300 10.9% 41 15.6% 74,100 14.6%
$2.60 - $2.75 48 18.3% 73,700 14.5% 89 34.0% 147,800 29.0%
$2.75 - $2.90 35 13.4% 88,200 17.3% 124 47.3% 236,000 46.4%
$2.90 - $3.05 16 6.1% 21,700 4.3% 140 53.4% 257,700 50.6%
$3.05 - $3.20 24 9.2% 32,700 6.4% 164 62.6% 290,400 57.1%
$3.20 - $3.35 43 16.4% 62,800 12.3% 207 79.0% 353,200 69.4%
$3.35 - $3.50 33 12.6% 55,400 10.9% 240 91.6% 408,600 80.3%
$3.50 - $3.65 12 4.6% 30,200 5.9% 252 96.2% 438,800 86.2%
$3.65 - $3.80 8 3.1% 33,900 6.7% 260 99.2% 472,700 92.9%
$3.80 - $3.95 2 0.8% 36,200 7.1% 262 100.0% 508,900 100.0%
> $3.95 0 0.0% -- 0.0% 262 100.0% 508,900 100.0%
TOTAL: 262 100.0% 508,900 100.0%
</TABLE>
[GRAPH]
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 1,942 shares or $5,985.83 and the
average daily close has been $3.01.
46 J.C. Bradford & Co.
<PAGE> 81
STOCK PRICE ANALYSIS
UNITED FOODS - CLASS B
SHARES TRADED AT VARIOUS PRICES FROM 12/18/97 TO 12/18/98
<TABLE>
<CAPTION>
CUMULATIVE
----------------------------------------------
DAYS % OF TOTAL % OF TOTAL DAYS % OF TOTAL % OF TOTAL
TRADING DAILY AVG. DAYS TRADING TRADING DAILY AVG. DAYS TRADING TRADING
RANGE (1) IN RANGE TRADED VOLUME VOLUME IN RANGE TRADED VOLUME VOLUME
- ------------------- ---------- ---------- ------- ---------- ---------- ---------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
< $2.30 0 0.0% -- 0.0% 0 0.0% -- 0.0%
$2.30 - $2.45 6 2.4% 12,600 5.1% 6 2.4% 12,600 5.1%
$2.45 - $2.60 9 3.6% 5,600 2.2% 15 5.9% 18,200 7.3%
$2.60 - $2.75 37 14.6% 44,900 18.0% 52 20.6% 63,100 25.3%
$2.75 - $2.90 45 17.8% 22,600 9.1% 97 38.3% 85,700 34.3%
$2.90 - $3.05 31 12.3% 25,800 10.3% 128 50.6% 111,500 44.7%
$3.05 - $3.20 26 10.3% 28,600 11.5% 154 60.9% 140,100 56.2%
$3.20 - $3.35 16 6.3% 27,000 10.8% 170 67.2% 167,100 67.0%
$3.35 - $3.50 49 19.4% 44,300 17.8% 219 86.6% 211,400 84.7%
$3.50 - $3.65 27 10.7% 28,000 11.2% 246 97.2% 239,400 96.0%
$3.65 - $3.80 7 2.8% 10,100 4.0% 253 100.0% 249,500 100.0%
> $3.80 0 0.0% -- 0.0% 253 100.0% 249,500 100.0%
TOTAL: 253 100.0% 249,500 100.0%
</TABLE>
[BAR CHART]
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 986 shares or $3,062.19 and the
average daily close has been $3.10.
47 J.C. Bradford & Co.
<PAGE> 82
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
18-Dec-98 200 $ 2.56 $ 2.56 $ 2.56
17-Dec-98 0 2.75 2.50 2.63
16-Dec-98 0 2.81 2.44 2.63
15-Dec-98 0 2.75 2.50 2.63
14-Dec-98 0 2.81 2.50 2.66
11-Dec-98 1,000 2.63 2.63 2.63
10-Dec-98 600 2.69 2.69 2.69
09-Dec-98 400 2.69 2.69 2.69
08-Dec-98 0 3.00 2.50 2.75
07-Dec-98 300 2.69 2.69 2.69
04-Dec-98 0 2.88 2.50 2.69
03-Dec-98 400 2.69 2.69 2.69
02-Dec-98 300 2.75 2.75 2.75
01-Dec-98 0 2.94 2.63 2.78
30-Nov-98 7,500 2.81 2.50 2.81
27-Nov-98 0 2.94 2.25 2.59
25-Nov-98 10,300 2.63 2.63 2.63
24-Nov-98 10,800 2.50 2.38 2.38
23-Nov-98 200 2.63 2.63 2.63
20-Nov-98 0 2.75 2.44 2.59
19-Nov-98 9,000 2.63 2.63 2.63
18-Nov-98 3,500 2.63 2.63 2.63
17-Nov-98 500 2.69 2.63 2.63
16-Nov-98 1,200 2.69 2.69 2.69
13-Nov-98 0 2.94 2.63 2.78
12-Nov-98 0 2.94 2.69 2.81
11-Nov-98 2,300 2.81 2.81 2.81
10-Nov-98 0 2.94 2.69 2.81
09-Nov-98 0 3.00 2.69 2.84
06-Nov-98 0 2.94 2.63 2.78
05-Nov-98 500 2.81 2.81 2.81
</TABLE>
J.C. Bradford & Co.
<PAGE> 83
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
04-Nov-98 0 3.00 2.50 2.75
03-Nov-98 0 3.00 2.75 2.88
02-Nov-98 0 3.06 2.75 2.91
30-Oct-98 6,000 2.94 2.75 2.94
29-Oct-98 0 3.00 2.69 2.84
28-Oct-98 0 3.00 2.69 2.84
27-Oct-98 5,900 2.88 2.81 2.88
26-Oct-98 1,000 2.69 2.69 2.69
23-Oct-98 0 2.81 2.56 2.69
22-Oct-98 0 2.88 2.56 2.72
21-Oct-98 0 2.88 2.63 2.75
20-Oct-98 0 2.94 2.56 2.75
19-Oct-98 200 2.69 2.69 2.69
16-Oct-98 0 2.81 2.56 2.69
15-Oct-98 1,000 2.75 2.69 2.69
14-Oct-98 0 3.00 2.63 2.81
13-Oct-98 0 2.94 2.63 2.78
12-Oct-98 0 2.94 2.69 2.81
09-Oct-98 0 3.00 2.69 2.84
08-Oct-98 0 2.88 2.56 2.72
07-Oct-98 1,400 2.88 2.88 2.88
06-Oct-98 700 2.88 2.88 2.88
05-Oct-98 0 3.06 2.81 2.94
02-Oct-98 300 2.81 2.81 2.81
01-Oct-98 0 3.06 2.63 2.84
30-Sep-98 2,000 2.94 2.94 2.94
29-Sep-98 200 2.88 2.88 2.88
28-Sep-98 0 2.94 2.56 2.75
25-Sep-98 500 2.81 2.81 2.81
24-Sep-98 0 2.94 2.56 2.75
23-Sep-98 0 2.81 2.56 2.69
</TABLE>
J.C. Bradford & Co.
<PAGE> 84
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
22-Sep-98 500 2.63 2.63 2.63
21-Sep-98 0 2.81 2.56 2.69
18-Sep-98 0 2.88 2.56 2.72
17-Sep-98 6,000 2.63 2.38 2.63
16-Sep-98 100 2.38 2.38 2.38
15-Sep-98 0 2.50 2.31 2.41
14-Sep-98 5,000 2.44 2.44 2.44
11-Sep-98 1,600 2.63 2.38 2.44
10-Sep-98 2,400 2.50 2.50 2.50
09-Sep-98 0 2.81 2.44 2.63
08-Sep-98 0 2.94 2.56 2.75
04-Sep-98 0 2.75 2.44 2.59
03-Sep-98 0 2.88 2.56 2.72
02-Sep-98 800 2.63 2.63 2.63
01-Sep-98 800 2.81 2.75 2.75
31-Aug-98 6,700 2.88 2.50 2.88
28-Aug-98 0 2.69 2.44 2.56
27-Aug-98 4,000 2.63 2.56 2.63
26-Aug-98 5,000 2.75 2.75 2.75
25-Aug-98 5,400 2.81 2.75 2.81
24-Aug-98 0 2.94 2.75 2.84
21-Aug-98 0 2.88 2.69 2.78
20-Aug-98 2,000 2.81 2.81 2.81
19-Aug-98 300 2.94 2.88 2.88
18-Aug-98 100 2.94 2.94 2.94
17-Aug-98 8,000 2.94 2.94 2.94
14-Aug-98 0 3.13 2.88 3.00
13-Aug-98 0 3.13 2.88 3.00
12-Aug-98 300 3.00 3.00 3.00
11-Aug-98 1,200 3.25 2.94 2.94
10-Aug-98 0 3.25 2.94 3.09
</TABLE>
J.C. Bradford & Co.
<PAGE> 85
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Aug-98 0 3.19 2.63 2.91
06-Aug-98 0 3.25 2.75 3.00
05-Aug-98 600 3.25 3.06 3.06
04-Aug-98 0 3.38 2.88 3.13
03-Aug-98 1,800 3.38 3.25 3.25
31-Jul-98 9,900 3.38 3.00 3.38
30-Jul-98 0 3.31 3.13 3.22
29-Jul-98 200 3.19 3.19 3.19
28-Jul-98 0 3.25 3.06 3.16
27-Jul-98 0 3.38 3.06 3.22
24-Jul-98 0 3.38 3.06 3.22
23-Jul-98 0 3.25 2.88 3.06
22-Jul-98 2,100 3.25 3.25 3.25
21-Jul-98 0 3.38 3.06 3.22
20-Jul-98 0 3.38 2.88 3.13
17-Jul-98 0 3.38 3.13 3.25
16-Jul-98 0 3.38 3.06 3.22
15-Jul-98 0 3.38 3.06 3.22
14-Jul-98 0 3.31 3.13 3.22
13-Jul-98 0 3.38 3.13 3.25
10-Jul-98 0 3.31 2.88 3.09
09-Jul-98 0 3.38 3.13 3.25
08-Jul-98 0 3.38 3.13 3.25
07-Jul-98 1,000 3.19 3.19 3.19
06-Jul-98 1,600 3.25 3.19 3.19
02-Jul-98 0 3.50 3.19 3.34
01-Jul-98 400 3.38 3.38 3.38
30-Jun-98 7,000 3.44 3.38 3.38
29-Jun-98 0 3.44 3.06 3.25
26-Jun-98 0 3.50 2.88 3.19
25-Jun-98 1,000 3.25 3.25 3.25
</TABLE>
J.C. Bradford & Co.
<PAGE> 86
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
24-Jun-98 0 3.56 3.06 3.31
23-Jun-98 200 3.25 3.25 3.25
22-Jun-98 5,000 3.31 3.31 3.31
19-Jun-98 0 3.38 3.19 3.28
18-Jun-98 600 3.19 3.19 3.19
17-Jun-98 0 3.38 3.13 3.25
16-Jun-98 5,200 3.31 3.19 3.19
15-Jun-98 100 3.31 3.31 3.31
12-Jun-98 0 3.56 3.25 3.41
11-Jun-98 2,200 3.38 3.31 3.31
10-Jun-98 100 3.31 3.31 3.31
09-Jun-98 600 3.38 3.38 3.38
08-Jun-98 0 3.69 3.19 3.44
05-Jun-98 500 3.50 3.50 3.50
04-Jun-98 0 3.69 3.44 3.56
03-Jun-98 0 3.69 3.44 3.56
02-Jun-98 0 3.69 3.44 3.56
01-Jun-98 0 3.63 3.25 3.44
29-May-98 15,300 3.63 3.44 3.63
28-May-98 1,100 3.50 3.31 3.50
27-May-98 0 3.50 3.19 3.34
26-May-98 3,200 3.38 3.38 3.38
22-May-98 0 3.44 3.19 3.31
21-May-98 0 3.63 3.13 3.38
20-May-98 0 3.56 3.19 3.38
19-May-98 7,300 3.25 3.25 3.25
18-May-98 3,700 3.31 3.31 3.31
15-May-98 200 3.38 3.38 3.38
14-May-98 0 3.50 3.25 3.38
13-May-98 200 3.31 3.31 3.31
12-May-98 1,000 3.38 3.38 3.38
</TABLE>
J.C. Bradford & Co.
<PAGE> 87
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
11-May-98 0 3.56 3.25 3.41
08-May-98 900 3.38 3.38 3.38
07-May-98 0 3.63 3.38 3.50
06-May-98 400 3.44 3.44 3.44
05-May-98 500 3.50 3.50 3.50
04-May-98 2,300 3.88 3.63 3.75
01-May-98 29,700 3.94 3.81 3.81
30-Apr-98 5,200 3.56 3.06 3.56
29-Apr-98 0 3.25 2.94 3.09
28-Apr-98 5,000 3.13 3.00 3.13
27-Apr-98 100 2.88 2.88 2.88
24-Apr-98 0 3.00 2.69 2.84
23-Apr-98 1,000 2.88 2.88 2.88
22-Apr-98 7,400 3.00 2.75 3.00
21-Apr-98 16,700 2.69 2.50 2.63
20-Apr-98 4,100 2.75 2.69 2.75
17-Apr-98 41,300 3.00 2.69 2.69
16-Apr-98 1,000 3.06 3.06 3.06
15-Apr-98 11,000 3.13 3.06 3.06
14-Apr-98 10,700 3.50 3.06 3.38
13-Apr-98 2,500 3.00 3.00 3.00
09-Apr-98 500 3.06 3.00 3.00
08-Apr-98 0 3.31 2.88 3.09
07-Apr-98 700 3.13 3.13 3.13
06-Apr-98 0 3.44 2.94 3.19
03-Apr-98 0 3.56 3.06 3.31
02-Apr-98 3,600 3.38 3.25 3.25
01-Apr-98 0 3.69 3.31 3.50
31-Mar-98 9,400 3.50 3.00 3.50
30-Mar-98 4,000 3.06 2.94 2.94
27-Mar-98 700 3.19 3.19 3.19
</TABLE>
J.C. Bradford & Co.
<PAGE> 88
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
26-Mar-98 0 3.31 2.94 3.13
25-Mar-98 800 3.19 3.19 3.19
24-Mar-98 200 3.31 3.31 3.31
23-Mar-98 1,100 3.38 3.38 3.38
20-Mar-98 0 3.50 2.88 3.19
19-Mar-98 0 3.50 3.13 3.31
18-Mar-98 1,900 3.31 3.19 3.31
17-Mar-98 0 3.50 3.13 3.31
16-Mar-98 0 3.50 3.25 3.38
13-Mar-98 1,300 3.31 3.31 3.31
12-Mar-98 0 3.56 3.19 3.38
11-Mar-98 1,000 3.50 3.38 3.38
10-Mar-98 0 3.69 3.38 3.53
09-Mar-98 400 3.50 3.50 3.50
06-Mar-98 2,500 3.63 3.63 3.63
05-Mar-98 3,700 3.63 3.50 3.50
04-Mar-98 600 3.50 3.50 3.50
03-Mar-98 0 3.81 3.50 3.66
02-Mar-98 1,000 3.56 3.56 3.56
27-Feb-98 10,300 3.69 3.25 3.63
26-Feb-98 300 3.38 3.38 3.38
25-Feb-98 800 3.44 3.44 3.44
24-Feb-98 0 3.56 3.31 3.44
23-Feb-98 600 3.50 3.44 3.44
20-Feb-98 0 3.63 3.13 3.38
19-Feb-98 7,500 3.63 3.50 3.50
18-Feb-98 2,200 3.75 3.75 3.75
17-Feb-98 0 3.75 3.44 3.59
13-Feb-98 200 3.63 3.63 3.63
12-Feb-98 1,000 3.75 3.75 3.75
11-Feb-98 2,200 3.75 3.63 3.63
</TABLE>
J.C. Bradford & Co.
<PAGE> 89
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
10-Feb-98 6,500 4.00 3.75 3.75
09-Feb-98 3,100 3.88 3.63 3.88
06-Feb-98 3,000 3.88 3.63 3.63
05-Feb-98 20,100 3.88 3.56 3.88
04-Feb-98 24,500 3.75 3.00 3.75
03-Feb-98 4,000 3.00 2.94 2.94
02-Feb-98 0 3.00 2.69 2.84
30-Jan-98 12,400 2.88 2.75 2.88
29-Jan-98 6,200 2.63 2.50 2.63
28-Jan-98 0 2.75 2.44 2.59
27-Jan-98 10,000 2.63 2.63 2.63
26-Jan-98 300 2.50 2.50 2.50
23-Jan-98 200 2.63 2.63 2.63
22-Jan-98 0 2.81 2.44 2.63
21-Jan-98 1,800 2.63 2.50 2.50
20-Jan-98 0 2.69 2.38 2.53
16-Jan-98 300 2.56 2.56 2.56
15-Jan-98 9,300 2.63 2.50 2.50
14-Jan-98 0 2.69 2.31 2.50
13-Jan-98 0 2.56 2.31 2.44
12-Jan-98 0 2.69 2.31 2.50
09-Jan-98 700 2.50 2.44 2.44
08-Jan-98 0 2.69 2.44 2.56
07-Jan-98 0 2.69 2.31 2.50
06-Jan-98 5,600 2.63 2.63 2.63
05-Jan-98 3,400 2.75 2.63 2.63
02-Jan-98 0 2.75 2.44 2.59
31-Dec-97 5,600 2.75 2.38 2.63
30-Dec-97 200 2.38 2.38 2.38
29-Dec-97 1,000 2.38 2.38 2.38
26-Dec-97 0 2.69 2.31 2.50
</TABLE>
J.C. Bradford & Co.
<PAGE> 90
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
24-Dec-97 1,700 2.38 2.38 2.38
23-Dec-97 200 2.50 2.50 2.50
22-Dec-97 0 2.56 2.31 2.44
19-Dec-97 0 2.63 2.25 2.44
18-Dec-97 0 2.63 2.31 2.47
17-Dec-97 700 2.50 2.50 2.50
16-Dec-97 0 2.56 2.19 2.38
15-Dec-97 4,000 2.38 2.38 2.38
12-Dec-97 0 2.56 2.25 2.41
11-Dec-97 1,300 2.44 2.44 2.44
10-Dec-97 0 2.50 2.31 2.41
09-Dec-97 0 2.50 2.31 2.41
08-Dec-97 2,000 2.44 2.44 2.44
05-Dec-97 0 2.69 2.31 2.50
04-Dec-97 0 2.69 2.31 2.50
03-Dec-97 0 2.75 2.44 2.59
02-Dec-97 400 2.50 2.50 2.50
01-Dec-97 0 2.75 2.44 2.59
28-Nov-97 6,700 2.63 2.38 2.63
26-Nov-97 0 2.69 2.38 2.53
25-Nov-97 0 2.81 2.38 2.59
24-Nov-97 0 2.69 2.38 2.53
21-Nov-97 0 2.69 2.38 2.53
20-Nov-97 0 2.81 2.31 2.56
19-Nov-97 0 2.75 2.31 2.53
18-Nov-97 0 2.69 2.38 2.53
17-Nov-97 200 2.44 2.44 2.44
14-Nov-97 0 2.69 2.31 2.50
13-Nov-97 0 2.56 2.31 2.44
12-Nov-97 0 2.63 2.25 2.44
11-Nov-97 2,000 2.50 2.38 2.50
</TABLE>
J.C. Bradford & Co.
<PAGE> 91
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
10-Nov-97 100 2.25 2.25 2.25
07-Nov-97 0 2.44 2.06 2.25
06-Nov-97 1,300 2.25 2.25 2.25
05-Nov-97 2,000 2.38 2.38 2.38
04-Nov-97 800 2.50 2.50 2.50
03-Nov-97 0 2.75 2.44 2.59
31-Oct-97 5,500 2.63 2.44 2.63
30-Oct-97 6,000 2.50 2.50 2.50
29-Oct-97 0 2.50 2.25 2.38
28-Oct-97 1,500 2.50 2.50 2.50
27-Oct-97 0 2.63 2.25 2.44
24-Oct-97 200 2.50 2.50 2.50
23-Oct-97 0 2.81 2.38 2.59
22-Oct-97 2,900 2.50 2.44 2.50
21-Oct-97 0 2.63 2.50 2.56
20-Oct-97 0 2.69 2.44 2.56
17-Oct-97 0 2.63 2.50 2.56
16-Oct-97 800 2.50 2.50 2.50
15-Oct-97 200 2.50 2.50 2.50
14-Oct-97 0 2.69 2.50 2.59
13-Oct-97 200 2.50 2.50 2.50
10-Oct-97 0 2.75 2.50 2.63
09-Oct-97 0 2.75 2.50 2.63
08-Oct-97 1,000 2.56 2.56 2.56
07-Oct-97 0 2.75 2.56 2.66
06-Oct-97 0 2.75 2.50 2.63
03-Oct-97 0 2.75 2.56 2.66
02-Oct-97 300 2.63 2.63 2.63
01-Oct-97 0 2.81 2.44 2.63
30-Sep-97 8,700 2.75 2.50 2.75
29-Sep-97 0 2.69 2.50 2.59
</TABLE>
J.C. Bradford & Co.
<PAGE> 92
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
26-Sep-97 0 2.75 2.56 2.66
25-Sep-97 1,300 2.63 2.50 2.63
24-Sep-97 0 2.75 2.56 2.66
23-Sep-97 600 2.75 2.56 2.75
22-Sep-97 1,300 2.63 2.63 2.63
19-Sep-97 0 2.69 2.31 2.50
18-Sep-97 200 2.50 2.50 2.50
17-Sep-97 14,500 2.75 2.63 2.63
16-Sep-97 600 2.75 2.75 2.75
15-Sep-97 0 2.81 2.56 2.69
12-Sep-97 2,500 2.69 2.63 2.63
11-Sep-97 0 2.69 2.25 2.47
10-Sep-97 0 2.63 2.38 2.50
09-Sep-97 400 2.44 2.44 2.44
08-Sep-97 13,700 2.56 2.50 2.56
05-Sep-97 600 2.38 2.38 2.38
04-Sep-97 1,000 2.50 2.50 2.50
03-Sep-97 0 2.75 2.44 2.59
02-Sep-97 0 2.81 2.50 2.66
29-Aug-97 7,600 2.63 2.50 2.56
28-Aug-97 600 2.56 2.44 2.56
27-Aug-97 20,700 2.50 2.50 2.50
26-Aug-97 300 2.44 2.44 2.44
25-Aug-97 1,000 2.50 2.50 2.50
22-Aug-97 0 2.50 2.31 2.41
21-Aug-97 1,000 2.38 2.38 2.38
20-Aug-97 0 2.56 2.38 2.47
19-Aug-97 0 2.56 2.38 2.47
18-Aug-97 300 2.50 2.50 2.50
15-Aug-97 2,000 2.56 2.56 2.56
14-Aug-97 0 2.75 2.56 2.66
</TABLE>
J.C. Bradford & Co.
<PAGE> 93
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
13-Aug-97 0 2.81 2.56 2.69
12-Aug-97 300 2.63 2.63 2.63
11-Aug-97 0 2.75 2.56 2.66
08-Aug-97 0 2.75 2.56 2.66
07-Aug-97 2,700 2.63 2.63 2.63
06-Aug-97 3,300 2.75 2.63 2.75
05-Aug-97 0 3.00 2.63 2.81
04-Aug-97 0 2.88 2.63 2.75
01-Aug-97 0 2.88 2.56 2.72
31-Jul-97 0 2.88 2.63 2.75
30-Jul-97 0 2.88 2.50 2.69
29-Jul-97 1,500 2.75 2.63 2.75
28-Jul-97 700 2.81 2.81 2.81
25-Jul-97 1,300 2.88 2.81 2.81
24-Jul-97 8,400 2.94 2.81 2.94
23-Jul-97 15,100 2.94 2.13 2.81
22-Jul-97 200 2.19 2.19 2.19
21-Jul-97 0 2.38 2.13 2.25
18-Jul-97 500 2.19 2.19 2.19
17-Jul-97 0 2.44 2.00 2.22
16-Jul-97 0 2.38 2.13 2.25
15-Jul-97 2,700 2.25 2.25 2.25
14-Jul-97 400 2.38 2.25 2.25
11-Jul-97 0 2.50 2.13 2.31
10-Jul-97 0 2.50 2.13 2.31
09-Jul-97 5,600 2.25 2.13 2.25
08-Jul-97 0 2.44 2.00 2.22
07-Jul-97 500 2.38 2.31 2.31
03-Jul-97 0 2.50 2.13 2.31
02-Jul-97 10,700 2.44 2.38 2.38
01-Jul-97 0 2.44 2.31 2.38
</TABLE>
J.C. Bradford & Co.
<PAGE> 94
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
30-Jun-97 1,300 2.38 2.38 2.38
27-Jun-97 0 2.44 2.06 2.25
26-Jun-97 0 2.56 2.31 2.44
25-Jun-97 4,400 2.31 2.31 2.31
24-Jun-97 0 2.38 2.31 2.34
23-Jun-97 100 2.31 2.31 2.31
20-Jun-97 200 2.38 2.38 2.38
19-Jun-97 2,200 2.44 2.44 2.44
18-Jun-97 100 2.19 2.19 2.19
17-Jun-97 0 2.38 2.13 2.25
16-Jun-97 200 2.25 2.25 2.25
13-Jun-97 1,700 2.25 2.25 2.25
12-Jun-97 0 2.50 2.13 2.31
11-Jun-97 200 2.13 2.13 2.13
10-Jun-97 0 2.38 2.13 2.25
09-Jun-97 0 2.38 2.13 2.25
06-Jun-97 8,400 2.13 2.13 2.13
05-Jun-97 0 2.38 2.13 2.25
04-Jun-97 10,100 2.19 2.19 2.19
03-Jun-97 13,700 2.13 2.06 2.13
02-Jun-97 11,100 2.13 2.00 2.13
30-May-97 200 2.06 2.06 2.06
29-May-97 7,600 2.13 2.13 2.13
28-May-97 0 2.13 1.88 2.00
27-May-97 4,100 2.06 2.06 2.06
23-May-97 3,300 2.06 2.06 2.06
22-May-97 5,000 2.06 2.06 2.06
21-May-97 14,500 2.13 2.06 2.06
20-May-97 42,400 2.06 2.00 2.06
19-May-97 2,400 1.75 1.63 1.75
16-May-97 700 1.63 1.56 1.63
</TABLE>
J.C. Bradford & Co.
<PAGE> 95
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
15-May-97 100 1.56 1.56 1.56
14-May-97 0 1.69 1.56 1.63
13-May-97 4,000 1.56 1.56 1.56
12-May-97 400 1.56 1.56 1.56
09-May-97 600 1.63 1.63 1.63
08-May-97 400 1.56 1.56 1.56
07-May-97 1,000 1.63 1.63 1.63
06-May-97 0 1.75 1.38 1.56
05-May-97 100 1.63 1.63 1.63
02-May-97 0 1.81 1.38 1.59
01-May-97 5,000 1.75 1.63 1.63
30-Apr-97 8,500 1.69 1.50 1.69
29-Apr-97 0 1.69 1.50 1.59
28-Apr-97 2,000 1.56 1.56 1.56
25-Apr-97 5,000 1.69 1.56 1.56
24-Apr-97 500 1.56 1.56 1.56
23-Apr-97 3,000 1.69 1.69 1.69
22-Apr-97 0 1.69 1.50 1.59
21-Apr-97 5,800 1.63 1.56 1.63
18-Apr-97 1,200 1.63 1.63 1.63
17-Apr-97 3,000 1.63 1.63 1.63
16-Apr-97 3,000 1.63 1.63 1.63
15-Apr-97 0 1.69 1.50 1.59
14-Apr-97 12,600 1.56 1.44 1.50
11-Apr-97 24,200 1.63 1.50 1.50
10-Apr-97 0 1.81 1.63 1.72
09-Apr-97 0 1.81 1.63 1.72
08-Apr-97 200 1.69 1.69 1.69
07-Apr-97 800 1.69 1.69 1.69
04-Apr-97 300 1.69 1.69 1.69
03-Apr-97 8,900 1.81 1.69 1.69
</TABLE>
J.C. Bradford & Co.
<PAGE> 96
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
02-Apr-97 2,200 1.81 1.69 1.81
01-Apr-97 0 1.81 1.56 1.69
31-Mar-97 3,500 1.81 1.63 1.81
27-Mar-97 0 1.75 1.63 1.69
26-Mar-97 0 1.75 1.56 1.66
25-Mar-97 1,400 1.63 1.63 1.63
24-Mar-97 1,000 1.69 1.69 1.69
21-Mar-97 0 1.75 1.63 1.69
20-Mar-97 600 1.63 1.63 1.63
19-Mar-97 1,000 1.69 1.69 1.69
18-Mar-97 300 1.69 1.69 1.69
17-Mar-97 1,200 1.69 1.69 1.69
14-Mar-97 0 1.81 1.63 1.72
13-Mar-97 6,200 1.69 1.69 1.69
12-Mar-97 0 1.81 1.69 1.75
11-Mar-97 0 1.81 1.69 1.75
10-Mar-97 2,700 1.81 1.69 1.69
07-Mar-97 0 1.94 1.81 1.88
06-Mar-97 1,100 1.94 1.88 1.94
05-Mar-97 0 1.94 1.75 1.84
04-Mar-97 1,000 1.94 1.88 1.94
03-Mar-97 0 2.00 1.63 1.81
28-Feb-97 21,900 1.88 1.75 1.88
27-Feb-97 600 1.81 1.81 1.81
26-Feb-97 0 1.81 1.44 1.63
25-Feb-97 2,500 1.69 1.69 1.69
24-Feb-97 800 1.69 1.69 1.69
21-Feb-97 2,300 1.75 1.75 1.75
20-Feb-97 200 1.69 1.69 1.69
19-Feb-97 0 1.75 1.63 1.69
18-Feb-97 5,100 1.69 1.69 1.69
</TABLE>
J.C. Bradford & Co.
<PAGE> 97
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
14-Feb-97 300 1.75 1.75 1.75
13-Feb-97 0 1.94 1.69 1.81
12-Feb-97 0 1.81 1.69 1.75
11-Feb-97 100 1.81 1.81 1.81
10-Feb-97 13,200 1.88 1.81 1.81
07-Feb-97 12,900 1.81 1.63 1.81
06-Feb-97 0 1.75 1.63 1.69
05-Feb-97 11,000 1.63 1.56 1.63
04-Feb-97 2,000 1.63 1.63 1.63
03-Feb-97 1,200 1.56 1.56 1.56
31-Jan-97 8,000 1.69 1.56 1.56
30-Jan-97 25,900 1.63 1.56 1.63
29-Jan-97 3,100 1.63 1.63 1.63
28-Jan-97 6,100 1.69 1.63 1.63
27-Jan-97 0 1.75 1.63 1.69
24-Jan-97 0 1.75 1.63 1.69
23-Jan-97 500 1.69 1.69 1.69
22-Jan-97 0 1.81 1.56 1.69
21-Jan-97 800 1.69 1.69 1.69
20-Jan-97 1,600 1.69 1.69 1.69
17-Jan-97 0 1.81 1.56 1.69
16-Jan-97 0 1.81 1.63 1.72
15-Jan-97 100 1.63 1.63 1.63
14-Jan-97 3,000 1.75 1.63 1.63
13-Jan-97 1,100 1.69 1.63 1.63
10-Jan-97 400 1.75 1.69 1.75
09-Jan-97 7,000 1.69 1.69 1.69
08-Jan-97 12,500 1.75 1.69 1.69
07-Jan-97 12,500 1.75 1.75 1.75
06-Jan-97 400 1.63 1.63 1.63
03-Jan-97 1,300 1.69 1.63 1.69
</TABLE>
J.C. Bradford & Co.
<PAGE> 98
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
02-Jan-97 2,000 1.63 1.56 1.56
-------------------------------------------------------------
AVERAGE 2,191 $ 2.67 $ 2.50 $ 2.59
=============================================================
</TABLE>
J.C. Bradford & Co.
<PAGE> 99
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
18-Dec-98 200 $ 2.56 $ 2.56 $ 2.56
17-Dec-98 3,000 2.69 2.69 2.69
16-Dec-98 0 2.75 2.38 2.56
15-Dec-98 13,100 2.75 2.56 2.56
14-Dec-98 1,500 2.88 2.88 2.88
11-Dec-98 0 3.00 2.63 2.81
10-Dec-98 0 3.00 2.69 2.84
09-Dec-98 0 3.06 2.69 2.88
08-Dec-98 0 3.38 2.38 2.88
07-Dec-98 100 2.88 2.88 2.88
04-Dec-98 0 3.13 2.75 2.94
03-Dec-98 0 3.00 2.81 2.91
02-Dec-98 1,200 2.88 2.88 2.88
01-Dec-98 0 3.13 2.75 2.94
30-Nov-98 3,500 3.00 2.88 3.00
27-Nov-98 0 3.06 2.63 2.84
25-Nov-98 800 2.69 2.69 2.69
24-Nov-98 100 2.75 2.75 2.75
23-Nov-98 0 2.88 2.56 2.72
20-Nov-98 0 2.94 2.69 2.81
19-Nov-98 800 2.88 2.81 2.88
18-Nov-98 0 2.88 2.69 2.78
17-Nov-98 700 2.88 2.88 2.88
16-Nov-98 0 3.00 2.69 2.84
13-Nov-98 0 2.94 2.75 2.84
12-Nov-98 0 2.94 2.69 2.81
11-Nov-98 0 3.00 2.75 2.88
10-Nov-98 0 3.00 2.69 2.84
09-Nov-98 0 3.13 2.81 2.97
06-Nov-98 0 3.00 2.69 2.84
05-Nov-98 0 3.00 2.81 2.91
</TABLE>
J.C. Bradford & Co.
<PAGE> 100
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
04-Nov-98 0 3.00 2.50 2.75
03-Nov-98 0 2.94 2.69 2.81
02-Nov-98 1,000 3.00 2.88 2.88
30-Oct-98 3,400 3.00 2.88 3.00
29-Oct-98 0 3.06 2.81 2.94
28-Oct-98 0 3.00 2.81 2.91
27-Oct-98 2,700 2.88 2.88 2.88
26-Oct-98 0 2.94 2.69 2.81
23-Oct-98 0 2.88 2.56 2.72
22-Oct-98 0 2.94 2.56 2.75
21-Oct-98 0 2.94 2.63 2.78
20-Oct-98 0 2.94 2.56 2.75
19-Oct-98 0 3.06 2.63 2.84
16-Oct-98 3,000 2.75 2.56 2.75
15-Oct-98 1,000 2.63 2.63 2.63
14-Oct-98 0 2.88 2.50 2.69
13-Oct-98 0 2.81 2.56 2.69
12-Oct-98 0 2.81 2.56 2.69
09-Oct-98 1,000 2.69 2.69 2.69
08-Oct-98 2,500 2.81 2.81 2.81
07-Oct-98 500 2.88 2.88 2.88
06-Oct-98 100 2.88 2.88 2.88
05-Oct-98 0 3.00 2.75 2.88
02-Oct-98 2,000 2.88 2.88 2.88
01-Oct-98 0 3.13 2.63 2.88
30-Sep-98 1,000 3.00 3.00 3.00
29-Sep-98 0 3.06 2.81 2.94
28-Sep-98 0 3.00 2.75 2.88
25-Sep-98 4,500 3.00 2.94 3.00
24-Sep-98 3,400 2.88 2.81 2.88
23-Sep-98 0 2.88 2.63 2.75
</TABLE>
J.C. Bradford & Co.
<PAGE> 101
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
22-Sep-98 0 2.94 2.69 2.81
21-Sep-98 0 2.75 2.56 2.66
18-Sep-98 0 2.88 2.56 2.72
17-Sep-98 4,600 2.69 2.44 2.69
16-Sep-98 0 2.56 2.38 2.47
15-Sep-98 0 2.63 2.31 2.47
14-Sep-98 0 2.69 2.38 2.53
11-Sep-98 800 2.50 2.50 2.50
10-Sep-98 5,900 2.75 2.63 2.75
09-Sep-98 0 2.94 2.69 2.81
08-Sep-98 200 2.75 2.75 2.75
04-Sep-98 700 2.88 2.75 2.75
03-Sep-98 500 2.69 2.69 2.69
02-Sep-98 0 3.00 2.63 2.81
01-Sep-98 600 2.88 2.81 2.81
31-Aug-98 3,100 2.94 2.88 2.94
28-Aug-98 3,000 2.75 2.75 2.75
27-Aug-98 500 2.81 2.81 2.81
26-Aug-98 0 2.94 2.50 2.72
25-Aug-98 0 3.19 2.56 2.88
24-Aug-98 0 3.06 2.75 2.91
21-Aug-98 3,000 2.81 2.81 2.81
20-Aug-98 0 3.13 2.75 2.94
19-Aug-98 3,500 2.94 2.94 2.94
18-Aug-98 1,000 3.00 3.00 3.00
17-Aug-98 0 3.13 2.88 3.00
14-Aug-98 0 3.25 2.94 3.09
13-Aug-98 0 3.13 2.94 3.03
12-Aug-98 0 3.25 2.88 3.06
11-Aug-98 0 3.25 2.94 3.09
10-Aug-98 0 3.31 2.94 3.13
</TABLE>
J.C. Bradford & Co.
<PAGE> 102
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Aug-98 0 3.19 2.75 2.97
06-Aug-98 0 3.25 2.75 3.00
05-Aug-98 100 3.13 3.13 3.13
04-Aug-98 0 3.38 2.88 3.13
03-Aug-98 0 3.38 3.06 3.22
31-Jul-98 13,000 3.25 3.00 3.25
30-Jul-98 900 3.06 3.06 3.06
29-Jul-98 300 3.13 3.13 3.13
28-Jul-98 0 3.19 2.94 3.06
27-Jul-98 0 3.25 3.06 3.16
24-Jul-98 0 3.38 3.06 3.22
23-Jul-98 0 3.38 2.88 3.13
22-Jul-98 3,900 3.25 3.13 3.13
21-Jul-98 0 3.56 3.06 3.31
20-Jul-98 500 3.25 3.13 3.25
17-Jul-98 0 3.31 3.06 3.19
16-Jul-98 0 3.31 2.94 3.13
15-Jul-98 800 3.13 3.13 3.13
14-Jul-98 300 3.13 3.13 3.13
13-Jul-98 0 3.44 3.06 3.25
10-Jul-98 300 3.13 3.13 3.13
09-Jul-98 0 3.38 3.13 3.25
08-Jul-98 100 3.19 3.19 3.19
07-Jul-98 0 3.44 3.13 3.28
06-Jul-98 1,400 3.25 3.25 3.25
02-Jul-98 0 3.63 3.31 3.47
01-Jul-98 0 3.69 3.31 3.50
30-Jun-98 6,300 3.50 3.31 3.50
29-Jun-98 100 3.38 3.38 3.38
26-Jun-98 0 3.75 3.38 3.56
25-Jun-98 0 3.56 3.31 3.44
</TABLE>
J.C. Bradford & Co.
<PAGE> 103
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
24-Jun-98 300 3.44 3.44 3.44
23-Jun-98 0 3.56 3.19 3.38
22-Jun-98 800 3.50 3.44 3.44
19-Jun-98 100 3.38 3.38 3.38
18-Jun-98 600 3.50 3.50 3.50
17-Jun-98 0 3.69 3.31 3.50
16-Jun-98 0 3.63 3.31 3.47
15-Jun-98 700 3.50 3.50 3.50
12-Jun-98 2,600 3.63 3.63 3.63
11-Jun-98 5,400 3.50 3.44 3.50
10-Jun-98 0 3.88 3.19 3.53
09-Jun-98 500 3.56 3.56 3.56
08-Jun-98 300 3.38 3.38 3.38
05-Jun-98 100 3.44 3.44 3.44
04-Jun-98 2,000 3.50 3.50 3.50
03-Jun-98 100 3.63 3.63 3.63
02-Jun-98 0 3.81 3.44 3.63
01-Jun-98 0 3.75 3.25 3.50
29-May-98 2,000 3.63 3.56 3.63
28-May-98 100 3.44 3.44 3.44
27-May-98 0 3.63 3.31 3.47
26-May-98 0 3.56 3.31 3.44
22-May-98 0 3.56 3.25 3.41
21-May-98 0 3.50 3.06 3.28
20-May-98 0 3.50 3.06 3.28
19-May-98 100 3.44 3.44 3.44
18-May-98 1,100 3.50 3.38 3.38
15-May-98 0 3.75 3.44 3.59
14-May-98 0 3.75 3.44 3.59
13-May-98 0 3.81 3.44 3.63
12-May-98 700 3.63 3.63 3.63
</TABLE>
J.C. Bradford & Co.
<PAGE> 104
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
11-May-98 0 3.69 3.38 3.53
08-May-98 0 3.75 3.38 3.56
07-May-98 0 3.63 3.38 3.50
06-May-98 600 3.50 3.50 3.50
05-May-98 0 3.69 3.44 3.56
04-May-98 100 3.56 3.56 3.56
01-May-98 2,500 3.63 3.50 3.63
30-Apr-98 4,200 3.44 3.38 3.44
29-Apr-98 2,700 3.38 3.25 3.38
28-Apr-98 600 3.13 3.13 3.13
27-Apr-98 0 3.13 2.81 2.97
24-Apr-98 100 3.00 3.00 3.00
23-Apr-98 0 3.19 2.81 3.00
22-Apr-98 0 3.19 2.81 3.00
21-Apr-98 0 3.13 2.69 2.91
20-Apr-98 0 3.19 2.81 3.00
17-Apr-98 200 3.00 3.00 3.00
16-Apr-98 100 3.31 3.31 3.31
15-Apr-98 100 3.38 3.38 3.38
14-Apr-98 4,800 3.38 3.00 3.25
13-Apr-98 2,500 3.00 3.00 3.00
09-Apr-98 100 3.13 3.13 3.13
08-Apr-98 0 3.44 2.94 3.19
07-Apr-98 400 3.31 3.25 3.25
06-Apr-98 0 3.44 3.06 3.25
03-Apr-98 0 3.50 3.25 3.38
02-Apr-98 500 3.44 3.31 3.31
01-Apr-98 800 3.44 3.31 3.44
31-Mar-98 11,400 3.44 3.19 3.44
30-Mar-98 2,500 3.19 2.94 3.06
27-Mar-98 0 3.56 3.19 3.38
</TABLE>
J.C. Bradford & Co.
<PAGE> 105
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
26-Mar-98 0 3.56 3.19 3.38
25-Mar-98 300 3.38 3.38 3.38
24-Mar-98 0 3.88 3.13 3.50
23-Mar-98 1,800 3.50 3.38 3.50
20-Mar-98 3,300 3.44 3.31 3.44
19-Mar-98 0 3.50 3.25 3.38
18-Mar-98 0 3.56 3.25 3.41
17-Mar-98 9,000 3.50 3.31 3.31
16-Mar-98 0 3.81 3.44 3.63
13-Mar-98 200 3.50 3.50 3.50
12-Mar-98 2,000 3.50 3.50 3.50
11-Mar-98 900 3.50 3.50 3.50
10-Mar-98 700 3.50 3.50 3.50
09-Mar-98 0 3.81 3.44 3.63
06-Mar-98 0 3.81 3.44 3.63
05-Mar-98 100 3.63 3.63 3.63
04-Mar-98 400 3.69 3.69 3.69
03-Mar-98 0 3.94 3.63 3.78
02-Mar-98 0 3.94 3.56 3.75
27-Feb-98 5,700 3.75 3.50 3.63
26-Feb-98 0 3.69 3.31 3.50
25-Feb-98 300 3.50 3.50 3.50
24-Feb-98 0 3.69 3.38 3.53
23-Feb-98 600 3.56 3.50 3.56
20-Feb-98 0 3.63 3.25 3.44
19-Feb-98 0 3.69 3.44 3.56
18-Feb-98 3,300 3.63 3.50 3.56
17-Feb-98 3,500 3.63 3.63 3.63
13-Feb-98 4,400 3.69 3.63 3.69
12-Feb-98 0 3.63 3.13 3.38
11-Feb-98 1,600 3.50 3.50 3.50
</TABLE>
J.C. Bradford & Co.
<PAGE> 106
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
10-Feb-98 2,600 3.81 3.63 3.63
09-Feb-98 800 3.75 3.75 3.75
06-Feb-98 1,900 3.81 3.75 3.75
05-Feb-98 6,300 3.88 3.38 3.88
04-Feb-98 8,000 3.38 3.25 3.38
03-Feb-98 3,000 3.25 3.25 3.25
02-Feb-98 400 3.13 3.13 3.13
30-Jan-98 2,000 3.00 2.88 3.00
29-Jan-98 1,000 2.69 2.69 2.69
28-Jan-98 0 3.06 2.69 2.88
27-Jan-98 0 3.00 2.50 2.75
26-Jan-98 400 2.75 2.75 2.75
23-Jan-98 0 2.94 2.56 2.75
22-Jan-98 1,600 2.75 2.75 2.75
21-Jan-98 100 2.75 2.75 2.75
20-Jan-98 300 2.88 2.88 2.88
16-Jan-98 100 2.88 2.88 2.88
15-Jan-98 0 3.06 2.69 2.88
14-Jan-98 600 2.88 2.88 2.88
13-Jan-98 1,300 2.88 2.75 2.75
12-Jan-98 500 2.63 2.63 2.63
09-Jan-98 0 2.94 2.56 2.75
08-Jan-98 0 2.88 2.56 2.72
07-Jan-98 100 2.75 2.75 2.75
06-Jan-98 4,100 2.88 2.63 2.75
05-Jan-98 0 2.81 2.44 2.63
02-Jan-98 500 2.63 2.63 2.63
31-Dec-97 5,000 2.75 2.63 2.75
30-Dec-97 0 2.63 2.19 2.41
29-Dec-97 1,900 2.38 2.38 2.38
26-Dec-97 0 2.69 2.31 2.50
</TABLE>
J.C. Bradford & Co.
<PAGE> 107
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
24-Dec-97 100 2.38 2.38 2.38
23-Dec-97 300 2.38 2.38 2.38
22-Dec-97 10,100 2.38 2.38 2.38
19-Dec-97 0 2.63 2.31 2.47
18-Dec-97 200 2.38 2.38 2.38
17-Dec-97 0 2.69 2.38 2.53
16-Dec-97 0 2.69 2.31 2.50
15-Dec-97 0 2.75 2.31 2.53
12-Dec-97 100 2.44 2.44 2.44
11-Dec-97 0 2.69 2.31 2.50
10-Dec-97 0 2.56 2.38 2.47
09-Dec-97 0 2.69 2.38 2.53
08-Dec-97 3,300 2.50 2.44 2.44
05-Dec-97 0 2.81 2.44 2.63
04-Dec-97 0 2.81 2.44 2.63
03-Dec-97 2,000 2.50 2.50 2.50
02-Dec-97 3,500 2.63 2.63 2.63
01-Dec-97 0 2.75 2.50 2.63
28-Nov-97 9,000 2.75 2.38 2.75
26-Nov-97 3,500 2.50 2.38 2.50
25-Nov-97 1,500 2.44 2.44 2.44
24-Nov-97 200 2.44 2.44 2.44
21-Nov-97 0 2.69 2.44 2.56
20-Nov-97 2,000 2.44 2.44 2.44
19-Nov-97 100 2.44 2.44 2.44
18-Nov-97 0 2.69 2.38 2.53
17-Nov-97 1,400 2.44 2.44 2.44
14-Nov-97 1,700 2.38 2.38 2.38
13-Nov-97 0 2.56 2.31 2.44
12-Nov-97 500 2.38 2.38 2.38
11-Nov-97 1,500 2.38 2.38 2.38
</TABLE>
J.C. Bradford & Co.
<PAGE> 108
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
10-Nov-97 0 2.56 2.38 2.47
07-Nov-97 500 2.50 2.50 2.50
06-Nov-97 0 2.75 2.44 2.59
05-Nov-97 0 2.75 2.44 2.59
04-Nov-97 100 2.63 2.63 2.63
03-Nov-97 0 2.81 2.38 2.59
31-Oct-97 5,000 2.69 2.63 2.69
30-Oct-97 100 2.38 2.38 2.38
29-Oct-97 0 2.63 2.38 2.50
28-Oct-97 5,600 2.38 2.13 2.38
27-Oct-97 0 2.63 2.13 2.38
24-Oct-97 0 2.69 2.25 2.47
23-Oct-97 100 2.38 2.38 2.38
22-Oct-97 0 2.69 2.38 2.53
21-Oct-97 0 2.75 2.50 2.63
20-Oct-97 0 2.63 2.38 2.50
17-Oct-97 0 2.63 2.38 2.50
16-Oct-97 500 2.50 2.50 2.50
15-Oct-97 1,200 2.50 2.50 2.50
14-Oct-97 0 2.75 2.50 2.63
13-Oct-97 0 2.75 2.50 2.63
10-Oct-97 0 2.75 2.44 2.59
09-Oct-97 0 2.75 2.44 2.59
08-Oct-97 5,600 2.69 2.63 2.63
07-Oct-97 200 2.56 2.56 2.56
06-Oct-97 0 2.75 2.50 2.63
03-Oct-97 0 2.75 2.50 2.63
02-Oct-97 0 2.81 2.44 2.63
01-Oct-97 200 2.63 2.63 2.63
30-Sep-97 4,100 2.75 2.50 2.75
29-Sep-97 0 2.63 2.38 2.50
</TABLE>
J.C. Bradford & Co.
<PAGE> 109
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
26-Sep-97 8,900 2.50 2.50 2.50
25-Sep-97 0 2.69 2.50 2.59
24-Sep-97 0 2.75 2.50 2.63
23-Sep-97 200 2.50 2.50 2.50
22-Sep-97 0 2.75 2.50 2.63
19-Sep-97 0 2.81 2.44 2.63
18-Sep-97 0 2.75 2.50 2.63
17-Sep-97 1,300 2.75 2.63 2.63
16-Sep-97 0 2.81 2.63 2.72
15-Sep-97 0 2.75 2.56 2.66
12-Sep-97 0 2.94 2.56 2.75
11-Sep-97 20,000 2.69 2.63 2.69
10-Sep-97 2,800 2.63 2.44 2.63
09-Sep-97 0 2.69 2.50 2.59
08-Sep-97 1,000 2.63 2.63 2.63
05-Sep-97 300 2.50 2.50 2.50
04-Sep-97 2,000 2.56 2.56 2.56
03-Sep-97 2,200 2.69 2.69 2.69
02-Sep-97 0 2.75 2.50 2.63
29-Aug-97 2,300 2.63 2.38 2.63
28-Aug-97 0 2.63 2.31 2.47
27-Aug-97 0 2.69 2.13 2.41
26-Aug-97 0 2.63 2.38 2.50
25-Aug-97 0 2.63 2.31 2.47
22-Aug-97 900 2.50 2.50 2.50
21-Aug-97 0 2.69 2.44 2.56
20-Aug-97 0 2.69 2.44 2.56
19-Aug-97 0 2.69 2.50 2.59
18-Aug-97 0 2.75 2.50 2.63
15-Aug-97 0 2.75 2.44 2.59
14-Aug-97 0 2.69 2.50 2.59
</TABLE>
J.C. Bradford & Co.
<PAGE> 110
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
13-Aug-97 0 2.69 2.44 2.56
12-Aug-97 100 2.63 2.63 2.63
11-Aug-97 0 2.69 2.50 2.59
08-Aug-97 0 2.75 2.50 2.63
07-Aug-97 500 2.63 2.63 2.63
06-Aug-97 14,100 2.63 2.63 2.63
05-Aug-97 0 2.94 2.56 2.75
04-Aug-97 0 2.75 2.50 2.63
01-Aug-97 600 2.63 2.63 2.63
31-Jul-97 1,400 2.63 2.63 2.63
30-Jul-97 0 2.81 2.50 2.66
29-Jul-97 600 2.69 2.69 2.69
28-Jul-97 500 2.75 2.75 2.75
25-Jul-97 900 2.81 2.81 2.81
24-Jul-97 5,800 2.94 2.94 2.94
23-Jul-97 900 2.69 2.63 2.69
22-Jul-97 400 2.31 2.31 2.31
21-Jul-97 0 2.50 2.25 2.38
18-Jul-97 100 2.31 2.31 2.31
17-Jul-97 100 2.31 2.31 2.31
16-Jul-97 0 2.50 2.31 2.41
15-Jul-97 10,700 2.31 2.13 2.25
14-Jul-97 500 2.19 2.19 2.19
11-Jul-97 100 2.31 2.31 2.31
10-Jul-97 0 2.44 2.06 2.25
09-Jul-97 0 2.50 2.00 2.25
08-Jul-97 0 2.44 2.13 2.28
07-Jul-97 500 2.38 2.31 2.31
03-Jul-97 0 2.63 2.13 2.38
02-Jul-97 4,000 2.44 2.44 2.44
01-Jul-97 2,000 2.31 2.31 2.31
</TABLE>
J.C. Bradford & Co.
<PAGE> 111
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
30-Jun-97 200 2.31 2.31 2.31
27-Jun-97 0 2.69 2.31 2.50
26-Jun-97 0 2.56 2.31 2.44
25-Jun-97 1,600 2.31 2.31 2.31
24-Jun-97 1,600 2.44 2.31 2.31
23-Jun-97 300 2.44 2.38 2.38
20-Jun-97 1,100 2.44 2.38 2.44
19-Jun-97 0 2.44 2.19 2.31
18-Jun-97 0 2.50 2.19 2.34
17-Jun-97 100 2.13 2.13 2.13
16-Jun-97 0 2.63 2.13 2.38
13-Jun-97 5,400 2.25 2.25 2.25
12-Jun-97 0 2.44 2.13 2.28
11-Jun-97 0 2.44 2.13 2.28
10-Jun-97 0 2.50 2.13 2.31
09-Jun-97 15,000 2.25 2.25 2.25
06-Jun-97 10,000 2.13 2.13 2.13
05-Jun-97 0 2.31 2.13 2.22
04-Jun-97 100 2.13 2.13 2.13
03-Jun-97 3,100 2.13 2.13 2.13
02-Jun-97 0 2.25 2.06 2.16
30-May-97 0 2.25 2.06 2.16
29-May-97 15,800 2.19 2.19 2.19
28-May-97 3,500 2.06 2.00 2.06
27-May-97 1,400 2.06 2.06 2.06
23-May-97 2,200 2.13 2.06 2.06
22-May-97 200 2.19 2.19 2.19
21-May-97 23,900 2.19 2.13 2.19
20-May-97 25,500 2.13 2.00 2.13
19-May-97 1,500 1.75 1.56 1.75
16-May-97 0 1.75 1.50 1.63
</TABLE>
J.C. Bradford & Co.
<PAGE> 112
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
15-May-97 400 1.56 1.56 1.56
14-May-97 100 1.56 1.56 1.56
13-May-97 0 1.69 1.56 1.63
12-May-97 100 1.56 1.56 1.56
09-May-97 500 1.56 1.56 1.56
08-May-97 200 1.63 1.63 1.63
07-May-97 100 1.63 1.63 1.63
06-May-97 100 1.63 1.63 1.63
05-May-97 0 1.75 1.31 1.53
02-May-97 0 1.75 1.31 1.53
01-May-97 1,000 1.69 1.63 1.69
30-Apr-97 3,400 1.69 1.63 1.69
29-Apr-97 1,700 1.69 1.56 1.69
28-Apr-97 0 1.69 1.50 1.59
25-Apr-97 0 1.75 1.50 1.63
24-Apr-97 500 1.56 1.56 1.56
23-Apr-97 0 1.88 1.56 1.72
22-Apr-97 0 1.69 1.56 1.63
21-Apr-97 0 1.69 1.50 1.59
18-Apr-97 1,200 1.56 1.56 1.56
17-Apr-97 3,500 1.81 1.63 1.63
16-Apr-97 0 1.81 1.69 1.75
15-Apr-97 0 1.81 1.69 1.75
14-Apr-97 200 1.69 1.69 1.69
11-Apr-97 0 1.81 1.56 1.69
10-Apr-97 0 1.81 1.69 1.75
09-Apr-97 0 1.88 1.56 1.72
08-Apr-97 0 1.81 1.63 1.72
07-Apr-97 800 1.75 1.75 1.75
04-Apr-97 200 1.75 1.75 1.75
03-Apr-97 2,000 1.75 1.75 1.75
</TABLE>
J.C. Bradford & Co.
<PAGE> 113
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
02-Apr-97 1,000 1.81 1.75 1.75
01-Apr-97 0 1.81 1.69 1.75
31-Mar-97 3,000 1.81 1.81 1.81
27-Mar-97 800 1.69 1.69 1.69
26-Mar-97 0 1.81 1.69 1.75
25-Mar-97 700 1.75 1.69 1.69
24-Mar-97 0 1.94 1.75 1.84
21-Mar-97 500 1.69 1.69 1.69
20-Mar-97 0 1.88 1.69 1.78
19-Mar-97 0 1.94 1.69 1.81
18-Mar-97 1,100 1.69 1.69 1.69
17-Mar-97 400 1.75 1.69 1.75
14-Mar-97 2,300 1.75 1.75 1.75
13-Mar-97 0 1.88 1.69 1.78
12-Mar-97 500 1.75 1.75 1.75
11-Mar-97 0 1.94 1.69 1.81
10-Mar-97 1,500 1.88 1.81 1.81
07-Mar-97 0 2.06 1.88 1.97
06-Mar-97 1,800 2.00 2.00 2.00
05-Mar-97 200 1.88 1.88 1.88
04-Mar-97 13,200 1.94 1.75 1.94
03-Mar-97 3,000 1.94 1.94 1.94
28-Feb-97 17,500 1.88 1.81 1.88
27-Feb-97 1,400 1.88 1.81 1.81
26-Feb-97 0 1.88 1.69 1.78
25-Feb-97 300 1.75 1.75 1.75
24-Feb-97 5,000 1.88 1.75 1.88
21-Feb-97 0 1.88 1.69 1.78
20-Feb-97 5,200 1.81 1.75 1.75
19-Feb-97 0 1.88 1.69 1.78
18-Feb-97 5,500 1.81 1.75 1.75
</TABLE>
J.C. Bradford & Co.
<PAGE> 114
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
14-Feb-97 0 1.94 1.69 1.81
13-Feb-97 5,000 1.88 1.88 1.88
12-Feb-97 0 1.88 1.69 1.78
11-Feb-97 1,400 1.75 1.75 1.75
10-Feb-97 1,300 1.81 1.75 1.75
07-Feb-97 1,400 1.69 1.69 1.69
06-Feb-97 0 1.75 1.56 1.66
05-Feb-97 10,200 1.63 1.56 1.63
04-Feb-97 0 1.75 1.50 1.63
03-Feb-97 900 1.63 1.63 1.63
31-Jan-97 3,500 1.75 1.63 1.75
30-Jan-97 4,200 1.69 1.56 1.69
29-Jan-97 1,100 1.69 1.69 1.69
28-Jan-97 100 1.69 1.69 1.69
27-Jan-97 0 1.75 1.63 1.69
24-Jan-97 0 1.75 1.63 1.69
23-Jan-97 0 1.75 1.56 1.66
22-Jan-97 2,500 1.75 1.75 1.75
21-Jan-97 2,400 1.63 1.63 1.63
20-Jan-97 100 1.69 1.69 1.69
17-Jan-97 0 1.81 1.63 1.72
16-Jan-97 0 1.88 1.63 1.75
15-Jan-97 3,000 1.75 1.75 1.75
14-Jan-97 2,200 1.63 1.63 1.63
13-Jan-97 7,900 1.69 1.63 1.69
10-Jan-97 500 1.63 1.63 1.63
09-Jan-97 0 1.69 1.56 1.63
08-Jan-97 4,100 1.69 1.69 1.69
07-Jan-97 0 1.88 1.75 1.81
06-Jan-97 0 1.94 1.75 1.84
03-Jan-97 2,100 1.88 1.75 1.88
</TABLE>
J.C. Bradford & Co.
<PAGE> 115
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
02-Jan-97 0 1.94 1.69 1.81
-------------------------------------------------------------------
AVERAGE 1,280 $ 2.73 $ 2.56 $ 2.65
===================================================================
</TABLE>
J.C. Bradford & Co.
<PAGE> 116
TRADING AND EQUITY ANALYSIS
MARKET VALUE OF EQUITY AS A PERCENTAGE OF BOOK VALUE OF EQUITY
QUARTERLY SINCE FEBRUARY 1996
[GRAPH]
48 J.C. Bradford & Co.
<PAGE> 117
TRADING AND EQUITY ANALYSIS
TOTAL CAPITALIZATION TO EBIT
QUARTERLY SINCE FEBRUARY 1996
[GRAPH]
49 J.C. Bradford & Co.
<PAGE> 118
TRADING AND EQUITY ANALYSIS
TOTAL CAPITALIZATION TO EBITDA
QUARTERLY SINCE FEBRUARY 1996
[GRAPH]
50 J.C. Bradford & Co.
<PAGE> 119
TRADING AND EQUITY ANALYSIS
MONTHLY CHANGE IN PRICE
SINCE 12/1/97
<TABLE>
<CAPTION>
DEC-97 JAN-98 FEB-98 MAR-98 APR-98 MAY-98 JUN-98 JUL-98 AUG-98 SEP-98 OCT-98 NOV-98
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods - Class A 1.20% 9.52% 26.09% (3.45%) 1.79% (4.92%) (1.82%) 0.00% (14.81%) 6.82% (3.19%) 3.30%
United Foods - Class B 4.76% 9.09% 20.83% (5.17%) 0.00% 0.00% 0.00% (7.14%) (9.62%) 6.67% (4.17%) 4.35%
S&P 500 (0.45%) 1.02% 7.04% 4.99% 0.32% (2.69%) 3.93% (2.43%) (14.58%) 2.29% (3.01%) 11.38%
Russell 2000 0.66% (1.59%) 7.39% 4.08% (0.42%) (5.84%) 1.38% (8.72%) (19.49%) 4.45% (3.73%) 8.03%
</TABLE>
<TABLE>
<CAPTION>
AVERAGE
-------
<S> <C>
United Foods - Class A 1.71%
United Foods - Class B 1.63%
S&P 500 0.65%
Russell 2000 (1.15%)
</TABLE>
UNITED FOODS CLASS A AND CLASS B VS. S&P 500 AND RUSSELL 2000 INDEX
[GRAPH]
51 J.C. Bradford & Co.
<PAGE> 120
TRADING AND EQUITY ANALYSIS
SELECTED FINANCIAL DATA
SINCE 1989
(in 000s, except per share data and ratios)
<TABLE>
<CAPTION>
1989 1990 1991 (3) 1992 1993 1994 1995
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Combined Sales (Adjusted) $157,286 $168,935 $171,145 $154,368 $156,318 $175,796 $190,256
Sales (Frozen Foods) 115,222 123,919 125,540 113,941 116,399 133,617 139,988
Sales (Mushrooms) 34,569 36,855 37,337 40,347 40,207 42,559 50,669
Combined EBITDA (1) 9,340 19,818 16,599 10,918 9,018 9,291 13,621
% of Sales 5.94% 11.73% 9.70% 7.07% 5.77% 5.29% 7.16%
EBITDA (Frozen Foods) 11,988 17,532 17,761 16,120 4,629 10,799 10,849
% of Sales 10.40% 14.15% 14.15% 14.15% 3.98% 8.08% 7.75%
EBITDA (Mushrooms) 4,261 4,171 4,226 4,566 4,120 4,670 8,945
% of Sales 12.33% 11.32% 11.32% 11.32% 10.25% 10.97% 17.65%
Net Income (1,153) 8,411 5,799 35 (2,116) 90 2,402
EPS (0.09) 0.63 0.44 -- (0.16) 0.01 0.19
Shares Outstanding 12,724 12,755 12,855 12,871 12,871 12,871 11,798
Book Value 44,776 53,225 56,417 59,645 57,529 57,619 57,440
Highest Stock Price During LTM 3.75 3.25 2.38 2.00 1.94 2.50 2.63
Lowest Stock Price During LTM 1.25 1.50 1.25 1.38 1.50 1.50 1.50
Equity Value (Highest Price) 47,715 41,454 30,531 25,742 24,938 32,178 30,970
Equity Value (Lowest Price) 15,905 19,133 16,069 17,698 19,307 19,307 17,697
Highest Price/Earnings - LTM NM x 5.16 x 5.40 x NM x NM x 250.00 x 13.82 x
Lowest Price/Earnings - LTM NM 2.38 2.84 NM NM 150.00 7.89
Highest Price/Earnings - Forward 5.95 7.39 NM NM 193.75 13.16 NM
Lowest Price/Earnings - Forward 1.98 3.41 NM NM 150.00 7.89 NM
Equity Value (Highest Price)/Book Value - LTM 1.07 0.78 0.54 0.43 0.43 0.56 0.54
Equity Value (Lowest Price)/Book Value - LTM 0.36 0.36 0.28 0.30 0.34 0.34 0.31
</TABLE>
<TABLE>
<CAPTION>
1996 1997 1998
---------------------------------
<S> <C> <C> <C>
Combined Sales (Adjusted) $191,714 $195,820 $195,087
Sales (Frozen Foods) 145,288 152,494 152,076
Sales (Mushrooms) 48,174 44,242 44,684
Combined EBITDA (1) 10,276 12,531 12,127
% of Sales 5.36% 6.40% 6.22%
EBITDA (Frozen Foods) 12,272 16,740 18,185
% of Sales 8.45% 10.98% 11.96%
EBITDA (Mushrooms) 9,553 2,224 5,927
% of Sales 19.83% 5.03% 13.26%
Net Income (660) 922 460
EPS (0.06) 0.08 0.06
Shares Outstanding 10,810 10,810 6,810
Book Value 54,534 55,456 45,748
Highest Stock Price During LTM 2.25 3.00 4.00
Lowest Stock Price During LTM 1.38 1.38 2.31
Equity Value (Highest Price) 24,323 32,430 27,240
Equity Value (Lowest Price) 14,864 14,864 15,748
Highest Price/Earnings - LTM NM x 37.50 x 66.67 x
Lowest Price/Earnings - LTM NM 17.19 38.54
Highest Price/Earnings - Forward 28.13 50.00 NM
Lowest Price/Earnings - Forward 17.19 22.92 NM
Equity Value (Highest Price)/Book Value - LTM 0.45 0.58 0.60
Equity Value (Lowest Price)/Book Value - LTM 0.27 0.27 0.34
</TABLE>
(1) Combined EBITDA includes Corporate Loss
(2) Includes reduction of income taxes from carryforward of prior year
operating losses.
(3) 1991 Sales and EBITDA are estimated as a percent of sales because company
financials do not break out mushrooms and frozen foods.
52 J.C. Bradford & Co.
<PAGE> 121
LIQUIDATION ANALYSIS
LIQUIDATION VALUE
BASED ON AUGUST 31, 1998 BALANCE SHEET
<TABLE>
<CAPTION>
ACTUAL MANAGEMENT THEORETICAL
------ ---------- -----------
<S> <C> <C> <C>
ASSETS
Cash $ 627 $ 627 $ 627
Accounts Receivable 15,185 14,426 14,426
Inventories
Finished Product 34,388 17,194 22,352
Raw Material 1,168 292 759
Growing Crops 3,105 -- --
Packaging Materials 1,517 -- --
Sundry Supplies 722 -- --
Prepaid Expenses 3,002 -- --
Refundable Taxes 594 594 594
Deferred Income Taxes 1,249 -- --
Net PP&E 53,023 43,000 43,000
Other assets
Notes & Accounts Receivable 53 53 53
Deferred Charges & Other Assets 656 -- --
Property & Equipment Held For 804 804 804
Disposal, Est. Realiz. Value
Total Assets 116,093 76,990 82,615
======== ======= =======
LIABILITIES
Current Liabilities
Notes Payable to Banks and Others -- -- --
Accounts Payable 15,083 15,083 15,083
Accrued Liabilities 7,246 7,246 7,246
Accrued (Prepaid) Burden 178 178 178
Income Taxes Payable 109 109 109
Deferred Income Taxes - Current -- -- --
Current Maturities of L-T-D 4,300 4,300 4,300
Long-term Debt Less Current Maturities 31,924 31,924 31,924
Long-term Revolving Loan 7,025 7,025 7,025
Deferred Income Taxes - Long-term 4,710 -- --
Total Liabilities 70,575 65,865 65,865
-------- ------- -------
Equity 45,518 11,125 16,750
======== ======= =======
Shares Outstanding 6,810 6,810 6,810
------------------------------------
Book Value Per Share $ 6.68 $ 1.63 $ 2.46
------------------------------------
</TABLE>
53 J.C. Bradford & Co.
<PAGE> 1
Exhibit 17(b)(7)
Information for:
Special Committee of the Board of Directors of
[UNITED FOODS LOGO]
December 8, 1998
[J.C. BRADFORD & CO. LOGO]
330 Commerce Street
Nashville, TN 37201
(800)522-4750
J.C.Bradford & Co.
<PAGE> 2
Table of Contents
United Foods Valuation
I. Comparable Company Analysis
II. Comparable Transaction Analysis
III. Discounted Cash Flow Analysis
IV. Premium Analysis
V. Stock Price Analysis
VI. Trading and Equity Analysis
VII. Liquidation Analysis
J.C.Bradford & Co.
<PAGE> 3
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Comparable Company Summary Valuation
Overall Adjusted Average Multiples
(In thousands)
Price to Trailing Earnings Multiple Basis:
<TABLE>
<S> <C> <C>
LTM earnings ended 8/31/98 $ 779
Adjusted Average Multiple 17.69 x
-------
Valuation $13,782
Valuation per Share (1) $ 2.02
-------
</TABLE>
LTM EBITDA Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBITDA ended 8/31/98 $ 12,842
Adjusted Average Multiple 8.15 x
--------
104,643
Less total debt, net of cash 8/31/98 42,622
--------
Valuation $ 62,021
Valuation per Share (1) $ 9.11
--------
</TABLE>
Price to Calendar 1998 Earnings Multiple Basis:
<TABLE>
<S> <C> <C>
Estimated earnings ended 12/31/98 $ 843
Adjusted Average Multiple 17.48 x
-------
Valuation $14,744
Valuation per Share (1) $ 2.17
-------
</TABLE>
Price to Calendar 1999 Earnings Multiple Basis:(2)
<TABLE>
<S> <C> <C>
Estimated earnings ended 12/31/99 $ 752
Adjusted Average Multiple 14.53 x
--------
Valuation $ 10,930
Valuation per Share (1) $ 1.61
--------
</TABLE>
Equity to Book Value Multiple Basis:
<TABLE>
<S> <C> <C>
Estimated book value 8/31/98 $45,518
Adjusted Average Multiple 2.06 x
--------
Valuation $93,693
Valuation per Share (1) $ 13.76
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(2) Based on 0% growth, base case projection.
At an offer price of $3.50, United Foods is valued above all comparable
companies as a multiple of LTM EPS, Calendar 1998 EPS, and Calendar 1999 EPS.
J.C.Bradford & Co.
1
<PAGE> 4
Comparable Company Analysis
Price to Calendar 1999 Earnings Multiple Basis:
Valuation Per Share (1)
Adjusted Average Multiple 14.53x
<TABLE>
<CAPTION>
PROJECTED NO EXPENSES $500,000 OF $750,000 OF $1,000,000 OF
GROWTH RATE ADDED BACK COST SAVINGS COST SAVINGS COST SAVINGS
- ----------- ---------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
0.0% $ 1.61 $ 2.16 $ 2.43 $ 2.71
2.5% $ 1.96 $ 2.51 $ 2.79 $ 3.06
5.0% $ 2.30 $ 2.87 $ 3.15 $ 3.42
</TABLE>
(1) Based on 6.8 million shares outstanding.
J.C.Bradford & Co.
2
<PAGE> 5
Comparable Company Analysis
LTM EBITDA Multiple Basis:
Valuation Per Share (1)
Current Offer EBITDA Multiple 5.2x
<TABLE>
<CAPTION>
NO EXPENSES $500,000 OF $750,000 OF $1,000,000 OF
ADDED BACK COST SAVINGS COST SAVINGS COST SAVINGS
- ---------- ------------ ------------ ------------
<S> <C> <C> <C>
$ 3.50 $ 3.88 $ 4.07 $ 4.26
</TABLE>
(1) Based on 6.8 million shares outstanding.
J.C.Bradford & Co.
3
<PAGE> 6
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Comparable Company Market Multiples
<TABLE>
<CAPTION>
5-YEAR
LTM LTM CAL. 1998 CAL. 1999 PROJECTED 52 WEEK
COMPANY TICKER END EPS EST. EPS EST. EPS(1) GROWTH RATE HIGH LOW
<S> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods UFD.A Aug 98 0.09 0.09 0.09 NA 4.00 2.19
Chiquita Brands Intl. CQB Sep 98 ($0.06) $0.81 $1.10 10.0% $ 17.38 $ 9.50
Dean Foods Co. DF Aug 98 2.63 2.58 2.86 13.8% 60.69 41.00
Fresh America Corp. FRES Sep 98 1.06 1.34 1.88 25.0% 27.88 9.50
Hanover Foods Corp. 3HNFSA Aug 98 11.74 NA NA NA 100.00 43.50
Mccormick & Co. MCCRK Aug 98 1.38 1.47 1.64 9.5% 36.44 25.75
Michael Foods, Inc. MIKL(2) Sep 98 1.78 1.82 2.05 12.0% 31.13 20.25
Performance Food Group Co. PFGC Sep 98 1.15 1.23 1.47 20.0% 25.50 15.63
Seneca Foods Corp. SENEB Sep 98 (1.33) NA NA NA 18.38 11.50
Smithfield Companies, Inc. HAMS Sep 98 0.56 NA NA NA 8.25 5.38
Smucker (Jm) Co. SJM.A Jul 98 1.28 1.28 1.36 NA 28.19 20.63
Sylvan, Inc. SYLN Sep 98 1.03 1.04 1.25 15.0% 18.75 11.75
Tyson Foods, Inc. TSN Sep 98 0.79 0.90 1.33 12.0% 26.00 16.31
Vlasic Foods International VL Jul 98 0.44 0.73 1.19 12.0% 27.00 13.69
</TABLE>
<TABLE>
<CAPTION>
BASED ON CLOSING STOCK PRICE AS OF 12/4/98
--------------------------------------------------
PRICE/ PRICE/ CAL. 1998 CAL. 1999
PRICE PRICE/ CAL. 1998 CAL. 1999 PE / PE /
COMPANY PER SHARE LTM EPS EST. EPS EST. EPS GROWTH RATE GROWTH RATE
<S> <C> <C> <C> <C> <C> <C>
United Foods 3.50 38.9 38.9 39.0 NM NM
Chiquita Brands Intl. $ 10.38 NM x 12.8 x 9.4 x 128.1% 94.3%
Dean Foods Co. 44.75 17.0 17.3 15.7 125.6% 113.5%
Fresh America Corp. 13.88 13.1 10.4 7.4 41.4% 29.5%
Hanover Foods Corp. 57.00 4.9 NA NA NM NM
Mccormick & Co. 33.31 24.1 22.6 20.3 237.9% 213.3%
Michael Foods, Inc. 22.63 12.7 12.4 11.0 103.6% 92.0%
Performance Food Group Co. 24.13 21.0 19.6 16.4 98.1% 82.2%
Seneca Foods Corp. 12.25 NM NA NA NM NM
Smithfield Companies, Inc. 7.06 12.6 NA NA NM NM
Smucker (Jm) Co. 23.81 18.6 18.6 17.5 NM NM
Sylvan, Inc. 13.00 12.6 12.5 10.4 83.3% 69.3%
Tyson Foods, Inc. 21.69 27.5 24.0 16.3 199.8% 136.1%
Vlasic Foods International 23.19 52.7 31.6 19.5 263.5% 162.5%
Median: 17.0 x 18.0 x 16.0 x 125.6% 94.3%
Average: 19.7 18.2 14.4 142.4% 110.3%
Adjusted Average
(excludes high and low): 17.7 17.5 14.5 139.5% 107.1%
</TABLE>
(1) When calendar 1999 EPS Multiple is not available it is approximated
using company's 5-year projected growth rate.
(2) MIKL LTM EPS excludes $0.11/sh losses from extraordinary items.
J.C.Bradford & Co.
4
<PAGE> 7
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Comparable Company Market Capitalization Multiples
<TABLE>
<CAPTION>
TOTAL TOTAL
12/4/98 NUMBER OF TOTAL DEBT, MARKET
COMPANY TICKER PRICE SHARES EQUITY NET OF CASH CAPITAL
<S> <C> <C> <C> <C> <C> <C>
United Foods UFD.A 3.50 6,810 23,835 42,622 66,457
Chiquita Brands Intl. CQB $10.38 65,369 $ 678,530 987,630 $ 1,666,160
Dean Foods Co. DF (1) 44.75 39,970 1,788,658 544,060 2,332,717
Fresh America Corp. FRES 13.88 5,322 73,837 28,696 102,533
Hanover Foods Corp. 3HNFSA 57.00 717 40,875 41,653 82,528
Mccormick & Co. MCCRK 33.31 73,404 2,445,271 503,410 2,948,681
Michael Foods, Inc. MIKL (2) 22.63 21,963 496,913 136,808 633,721
Performance Food Group Co. PFGC 24.13 12,581 303,518 68,509 372,027
Seneca Foods Corp. SENEB 12.25 5,985 73,310 253,292 326,602
Smithfield Companies, Inc. HAMS 7.06 2,343 16,547 (6,038) 10,510
Smucker (Jm) Co. SJM.A (3) 23.81 29,127 693,587 (7,052) 686,535
Sylvan, Inc. SYLN 13.00 6,392 83,102 28,875 111,977
Tyson Foods, Inc. TSN 21.69 240,500 5,215,844 2,082,400 7,298,244
Vlasic Foods International VL 23.19 45,455 1,053,988 561,747 1,615,735
</TABLE>
<TABLE>
<CAPTION>
(In thousands)
MARKET EQUITY/
BOOK LTM LTM CAP./ BOOK
COMPANY VALUE EBIT EBITDA EBITDA VALUE
<S> <C> <C> <C> <C> <C>
United Foods 45,518 5,443 12,842 5.2 0.52
Chiquita Brands Intl. 921,147 $ 4,703 $ 227,954 7.3 x 0.74 x
Dean Foods Co. 687,639 3,142 239,662 9.7 2.60
Fresh America Corp. 46,712 908 13,248 7.7 1.58
Hanover Foods Corp. 56,687 0 22,080 3.7 0.72
Mccormick & Co. 360,637 3,662 242,604 12.2 6.78
Michael Foods, Inc. 248,840 12,750 107,638 5.9 2.00
Performance Food Group Co. 146,964 1,988 36,818 10.1 2.07
Seneca Foods Corp. 136,852 (4) 42,758 7.6 0.54
Smithfield Companies, Inc. 15,095 4 2,121 5.0 1.10
Smucker (Jm) Co. 305,945 683 77,583 8.8 2.27
Sylvan, Inc. 49,694 872 17,213 6.5 1.67
Tyson Foods, Inc. 1,970,400 (20,500) 622,200 11.7 2.65
Vlasic Foods International 106,604 (25,827) 111,355 14.5 9.89
Median: 7.7 x 2.00 x
Average: 8.5 2.66
Adjusted Average
(excludes high and low): 8.1 2.06
</TABLE>
J.C.Bradford & Co.
5
<PAGE> 8
Comparable Company Analysis
UNITED FOODS, INC. grows, processes, markets and distributes food products.
The Company's products include frozen asparagus, black-eyed peas,
broccoli, Brussel sprouts, carrots, cauliflower, corn, green beans, green
peas, green peppers, lima beans, various vegetable mixes and other
vegetables. United's products are sold to large national grocery chains
and independent food stores.
UNITED FOODS, INC.
DAILY PRICE & VOLUME TRADING STATISTICS SINCE 12/31/97
United Foods, Inc. - Class A United Foods, Inc. - Class B
[GRAPH] [GRAPH]
J.C.Bradford & Co.
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<PAGE> 9
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
DAILY PRICE & VOLUME TRADING STATISTICS SINCE 12/31/97
Chiquita Brands Intl Dean Foods Co.
[GRAPH] [GRAPH]
Fresh America Corp. Hanover Foods Corp./Pa
[GRAPH] [GRAPH]
J.C.Bradford & Co.
7
<PAGE> 10
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
DAILY PRICE & VOLUME TRADING STATISTICS SINCE 12/31/97
Mccormick & Co. Michael Foods, Inc.
[GRAPH] [GRAPH]
Performance Food Group Co. Seneca Foods Corp. -Cl B
[GRAPH] [GRAPH]
J.C.Bradford & Co.
8
<PAGE> 11
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
DAILY PRICE & VOLUME TRADING STATISTICS SINCE 12/31/97
Smithfield Companies, Inc. Smucker (Jm) Co. -Cl A
[GRAPH] [GRAPH]
Sylvan, Inc. Tyson Foods, Inc. -Cl A
[GRAPH] [GRAPH]
J.C.Bradford & Co.
9
<PAGE> 12
COMPARABLE COMPANY ANALYSIS
FOOD DISTRIBUTION INDUSTRY
DAILY PRICE & VOLUME TRADING STATISTICS SINCE 12/31/97
Vlasic Foods International
[GRAPH]
J.C.Bradford & Co.
10
<PAGE> 13
COMPARABLE COMPANY ANALYSIS
- Description of Comparable Companies
CHIQUITA BRANDS INTERNATIONAL, INC. produces, markets and distributes
bananas and other fresh and processed food products sold under the
"Chiquita" brand name. The Company's fresh products include mangoes,
kiwi and citrus and other tropical fruit. Chiquita also produces
private-label and branded canned vegetable and related products, fruit
and vegetable juices and other products.
DEAN FOODS COMPANY processes, distributes and sell dairy, pickle,
specialty and vegetable products. Many of the Company's products are
sold under private labels. Dean's products include milk, ice cream and
extended shelf-life dairy products; salad dressings, dips and puddings;
and pickles, relishes and canned vegetables. The Company also operates
a trucking business.
FRESH AMERICA CORPORATION is an integrated food distribution management
company for fresh produce and other perishable refrigerated products.
The Company operates in 43 states and Canada through 22 distribution
centers. Fresh America operates produce departments in 342 "Sam's Club"
stores. "Sam's" is a division of Wal-Mart Stores, Inc.
HANOVER FOODS CORPORATION processes vegetable products. The Company
grows, processes, cans, freezes, freeze-dries, packages, markets and
distributes its products under its own trademarks, as well as other
branded, customer and private labels. Hanover operates in the United
States.
J.C.Bradford & Co.
11
<PAGE> 14
COMPARABLE COMPANY ANALYSIS
- Description of Comparable Companies
MCCORMICK & COMPANY INCORPORATED is a specialty food company. The
Company manufactures spices, seasonings, flavorings, and other
specialty food products and sells such products to the retail food
market, the food service market and to industrial food processors
throughout the world. McCormick, through its subsidiaries, also
manufactures and markets plastic and packaging products.
MICHAEL FOODS, INC. is a diversified food processor and distributor
with interests in eggs and egg products, refrigerated case products,
frozen and refrigerated potato products and dairy products. The Company
sells these items to supermarkets, food service distributors,
manufacturers and fast food operators in Minnesota and surrounding
states.
PERFORMANCE FOOD GROUP CO. markets and distributes food and
food-related products to restaurants, hotels, cafeterias, schools and
hospitals in the United States. The Company's items include private
label food products, canned and dry groceries, poultry, meats, seafood,
fresh produce, paper and cleaning supplies and restaurant equipment.
SENECA FOODS CORPORATION is primarily a fruit and vegetable processing
company with manufacturing facilities located throughout the United
States. The Company's products are sold under the "Seneca," "Libby's,"
and "TreeSweet" labels, as well as through the private label and
industrial markets. Seneca also, under alliance with The Pillsbury
Company, produces canned and frozen vegetables.
J.C.Bradford & Co.
12
<PAGE> 15
COMPARABLE COMPANY ANALYSIS
- Description of Comparable Companies
THE SMITHFIELD COMPANIES, INC. produces and markets a wide range of
branded food products to the retail grocery and food service
industries. The Company's products include frozen barbecues and
chilies, cured hams and other pork products, peanuts and cashews.
Smithfield's products are sold on a wholesale basis, through catalogs
and through its retail stores.
THE J.M. SMUCKER COMPANY manufactures and markets food products on a
worldwide basis. The Company's principal products include fruit
spreads, dessert toppings, peanut butter, industrial fruit products,
fruit and vegetable juices, juice beverages, syrups, condiments and
gift packages. Smucker's products are marketed under trademarks such as
"Smucker's," "Simply Fruit" and "Goober."
SYLVAN INC. produces and distributes mushroom spawn and fresh mushrooms.
The Company also distributes a variety of other value-added products
and services for use by mushroom growers and produces fresh mushrooms
for sale to retailers, distributors and processors of mushroom products
in the United States. Sylvan operates in the United States, Europe and
Australia.
TYSON FOODS, INC. produces, markets and distributes a variety of food
products. The Company's products include value-enhanced poultry, fresh
and frozen poultry, value-enhanced seafood products, fresh and frozen
seafood products, prepared foods and other products such as flour and
corn tortillas and chips. Tyson also has live swine, animal feed and
pet food ingredient operations.
J.C.Bradford & Co.
13
<PAGE> 16
COMPARABLE COMPANY ANALYSIS
- Description of Comparable Companies
VLASIC FOODS INTERNATIONAL manufactures and markets branded convenience
food products in the frozen food, grocery product, and agricultural
product segments. The Company's products include "Swanson" and
"Freshbake" frozen foods, "Vlasic" pickles and condiments, "Open Pit"
barbecue sauce, and other brands. Vlasic's products are sold in the
United States and other countries.
J.C.Bradford & Co.
14
<PAGE> 17
COMPARABLE TRANSACTION ANALYSIS
UNITED FOODS, INC.
Comparable Transaction Summary Valuation
Food Distribution Companies(*)
(In 000s, except per share)
Price to Trailing Earnings Multiple Basis:
<TABLE>
<S> <C> <C>
LTM earnings ended 8/31/98 $ 779
Adjusted Average Multiple 23.9 x
--------
Valuation $ 18,586
--------
Valuation Per Share (1) $ 2.73
--------
</TABLE>
LTM EBITDA Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBITDA ended 8/31/98 $ 12,842
Adjusted Average Multiple 12.4 x
--------
159,571
Less total debt, net of cash on 8/31/98 42,622
--------
Valuation $116,949
--------
Valuation Per Share (1) $ 17.17
--------
</TABLE>
LTM EBIT Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBIT ended 8/31/98 $ 5,443
Adjusted Average Multiple 16.4 x
--------
89,062
Less total debt, net of cash on 8/31/98 42,622
--------
Valuation $ 46,440
--------
Valuation Per Share (1) $ 6.82
--------
</TABLE>
LTM Revenues Multiple Basis:
<TABLE>
<S> <C> <C>
LTM Revenues ended 8/31/98 $201,367
Adjusted Average Multiple 1.1 x
--------
215,279
Less total debt, net of cash on 8/31/98 42,622
--------
Valuation $172,657
--------
Valuation Per Share (1) $ 25.35
--------
</TABLE>
Book Value Multiple Basis:
<TABLE>
<S> <C> <C>
Book Value at 8/31/98 $ 45,518
Adjusted Average Multiple 3.6 x
--------
Valuation $162,008
--------
Valuation Per Share $ 23.79
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
J.C.Bradford & Co.
15
<PAGE> 18
COMPARABLE TRANSACTION ANALYSIS
UNITED FOODS, INC.
COMPARABLE TRANSACTION SUMMARY VALUATION
MULTIPLES BASED ON AGRILINK ACQUISITION OF DEAN FOODS VEGETABLE DIVISION
(In 000s, except per share)
LTM Revenues Multiple Basis:
<TABLE>
<S> <C> <C>
LTM Revenues ended 8/31/98 $201,367
Transaction Multiple 0.8 x
--------
156,395
Less total debt, net of cash on 8/31/98 42,622
--------
Valuation $113,773
--------
Valuation Per Share $ 16.71
--------
</TABLE>
LTM EBIT Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBIT ended 8/31/98 $ 5,443
Transaction Multiple 11.4 x
--------
61,876
Less total debt, net of cash on 8/31/98 42,622
--------
Valuation $ 19,254
--------
Valuation Per Share $ 2.83
--------
</TABLE>
Book Value Multiple Basis:
<TABLE>
<S> <C> <C>
Book Value at 8/31/98 $ 45,518
Transaction Multiple 1.7 x
--------
Valuation 75,863
--------
Valuation Per Share $ 11.14
--------
</TABLE>
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
J.C.Bradford & Co.
16
<PAGE> 19
COMPARABLE TRANSACTION ANALYSIS
UNITED FOODS, INC.
COMPARABLE TRANSACTION SUMMARY VALUATION
MULTIPLES BASED ON AGRILINK ACQUISITION OF DEAN FOODS VEGETABLE DIVISION
(In 000s, except per share)
LTM EBIT Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBIT ended 8/31/98 $ 5,443
Plus $500,000 Cost Savings $ 500
-------
$ 5,943
Transaction Multiple 11.4 x
-------
67,560
Less total debt, net of cash on 8/31/98 42,622
-------
Valuation $24,938
-------
Valuation Per Share $ 3.66
-------
</TABLE>
LTM EBIT Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBIT ended 8/31/98 $ 5,443
Plus $750,000 Cost Savings $ 750
-------
$ 6,193
Transaction Multiple 11.4 x
-------
70,402
Less total debt, net of cash on 8/31/98 42,622
-------
Valuation $27,780
-------
Valuation Per Share $ 4.08
-------
</TABLE>
LTM EBIT Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBIT ended 8/31/98 $ 5,443
Plus $1,000,000 Cost Savings $ 1,000
-------
$ 6,443
Transaction Multiple 11.4 x
-------
73,244
Less total debt, net of cash on 8/31/98 42,622
-------
Valuation $30,622
-------
Valuation Per Share $ 4.50
-------
</TABLE>
J.C.Bradford & Co.
17
<PAGE> 20
COMPARABLE TRANSACTION ANALYSIS
FOOD DISTRIBUTION COMPANIES(*) (Dollars in millions)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
AGGREG. EQUITY CONSID.
AS A MULTIPLE OF:
AGGREGATE LEVERED --------------------
DATE EQUITY AGGREGATE LTM NET BOOK
ANNOUNCED ACQUIROR / TARGET CONSIDERATION CONSIDERATION(2) INCOME VALUE
- --------- ----------------- ------------- ---------------- ------ -----
<S> <C> <C> <C> <C> <C>
06/07/90 ConAgra Inc $1,336.0 $3,294.0 NM 1.5
Beatrice Co
09/28/90 Shareholders $1,607.0 $1,607.0 73.4 2.0
Pet Inc(Whitman Corp)
10/19/90 MANO Holdings $ 42.5 $ 42.5 17.0 3.0
B Manischewitz Co
04/19/91 ConAgra Inc $ 408.4 $ 408.4 20.8 3.8
Golden Valley Microwave Foods
07/18/91 HJ Heinz Co $ 500.0 $ 500.0 NA NA
JL Foods Inc(John Labatt Ltd)
12/20/91 CPC International Inc $ 115.0 $ 115.0 NA NA
Fearn Intl(Kellogg Co)
01/24/92 Burns Philp Inc $ 85.0 $ 85.0 NA NA
Durkee-French Foods(Burns)
04/09/92 Ben Hill Griffin Inc $ 31.0 $ 31.0 NM 0.7
Orange-co(Stoneridge Res Inc)
04/22/92 Shareholders $ 181.1 $ 181.1 9.2 2.4
Ralston-Continental Baking
10/12/92 Dean Foods Co $ 15.0 $ 15.0 NM 1.2
WB Roddenbery Co
08/12/93 Pro-Fac Cooperative Inc $ 164.2 $ 431.2 NM 2.0
Curtice-Burns Foods(Pro-Fac)
08/16/93 Shareholders $ 528.0 $ 528.0 NA NA
Ralcorp Holdings Inc(Ralston)
11/01/93 Dean Foods Co $ 140.0 $ 140.0 23.3 NA
Kraft General Foods-Birds Eye
</TABLE>
<TABLE>
<CAPTION>
LEVERED AGGREGATE CONSIDERATION
AS A MULTIPLE OF:
-------------------------------
DATE LTM LTM LTM PERCENT
ANNOUNCED ACQUIROR / TARGET REVENUE EBITDA EBIT ACQUIRED
- --------- ----------------- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C>
06/07/90 ConAgra Inc 0.8 6.9 9.6 100.0%
Beatrice Co
09/28/90 Shareholders 0.9 5.5 6.7 100.0%
Pet Inc(Whitman Corp)
10/19/90 MANO Holdings 1.2 8.5 10.1 100.0%
B Manischewitz Co
04/19/91 ConAgra Inc 2.3 19.1 30.0 100.0%
Golden Valley Microwave Foods
07/18/91 HJ Heinz Co 1.1 NA NA 100.0%
JL Foods Inc(John Labatt Ltd)
12/20/91 CPC International Inc 1.2 NA NA 100.0%
Fearn Intl(Kellogg Co)
01/24/92 Burns Philp Inc 0.4 NA NA 100.0%
Durkee-French Foods(Burns)
04/09/92 Ben Hill Griffin Inc 0.5 NM NM 52.3%
Orange-co(Stoneridge Res Inc)
04/22/92 Shareholders 0.2 NA 3.5 55.0%
Ralston-Continental Baking
10/12/92 Dean Foods Co 0.3 NM NM 100.0%
WB Roddenbery Co
08/12/93 Pro-Fac Cooperative Inc 0.5 20.5 NM 100.0%
Curtice-Burns Foods(Pro-Fac)
08/16/93 Shareholders 0.7 NA NA 100.0%
Ralcorp Holdings Inc(Ralston)
11/01/93 Dean Foods Co 0.6 NA NA 100.0%
Kraft General Foods-Birds Eye
</TABLE>
J.C.Bradford & Co.
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<PAGE> 21
COMPARABLE TRANSACTION ANALYSIS
FOOD DISTRIBUTION COMPANIES(*) (Dollars in millions)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
AGGREG. EQUITY CONSID.
AS A MULTIPLE OF:
AGGREGATE LEVERED -----------------------
DATE EQUITY AGGREGATE LTM NET BOOK
ANNOUNCED ACQUIROR / TARGET CONSIDERATION CONSIDERATION(2) INCOME VALUE
- --------- ----------------- ------------- ---------------- ------ -----
<S> <C> <C> <C> <C> <C>
03/18/94 Doskocil Cos Inc $ 135.0 $ 135.0 NA NA
Intl Multifoods-Prepared Foods
04/18/94 ConAgra Inc $ 202.0 $ 202.0 NA NA
Universal Foods-Frozen Foods
04/20/94 Schreiber Foods Inc $ 11.8 $ 11.8 16.9 2.8
Arden International Kitchens
05/23/94 Sandoz AG $3,685.7 $3,685.7 32.3 10.1
Gerber Products Co
09/12/94 Kohlberg Kravis Roberts & Co $2,222.9 $4,622.9 NM 8.6
Borden Inc
11/28/94 Campbell Soup Co $1,115.0 $1,115.0 24.8 18.3
Pace Foods
01/09/95 Pillsbury Co(Grand Met PLC) $2,636.5 $2,636.5 23.4 7.3
Pet Inc(Pillsbury/Grand Met)
07/26/95 Shareholders $ 309.8 $ 309.8 NM 0.5
Earthgrains Co(Anheuser-Busch)
03/15/96 ConAgra Inc $ 132.0 $ 132.0 NA NA
Gilroy Foods Inc
06/30/97 JP Foodservice Inc $ 770.6 $1,510.6 NM 2.3
Rykoff-Sexton Inc
09/09/97 Shareholders $1,004.8 $1,004.8 NA NA
Campbell Soup-Noncore Bus(7)
09/18/97 Chiquita Brands International $ 10.9 $ 42.9 NM 1.8
Stokely USA Inc
09/29/97 Suiza Foods Corp $ 855.9 $1,035.9 47.0 8.6
Morningstar Group Inc
</TABLE>
<TABLE>
<CAPTION>
LEVERED AGGREGATE CONSIDERATION
AS A MULTIPLE OF:
-------------------------------
DATE LTM LTM LTM PERCENT
ANNOUNCED ACQUIROR / TARGET REVENUE EBITDA EBIT ACQUIRED
- --------- ----------------- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C>
03/18/94 Doskocil Cos Inc 0.7 NA NA 100.0%
Intl Multifoods-Prepared Foods
04/18/94 ConAgra Inc NA NA NA NA
Universal Foods-Frozen Foods
04/20/94 Schreiber Foods Inc 0.6 5.6 10.7 100.0%
Arden International Kitchens
05/23/94 Sandoz AG 3.1 16.3 20.0 100.0%
Gerber Products Co
09/12/94 Kohlberg Kravis Roberts & Co 0.8 NA 40.1 100.0%
Borden Inc
11/28/94 Campbell Soup Co 4.8 23.7 26.3 100.0%
Pace Foods
01/09/95 Pillsbury Co(Grand Met PLC) 1.7 10.0 12.2 100.0%
Pet Inc(Pillsbury/Grand Met)
07/26/95 Shareholders 0.2 NA NM 100.0%
Earthgrains Co(Anheuser-Busch)
03/15/96 ConAgra Inc 0.7 NA NA 100.0%
Gilroy Foods Inc
06/30/97 JP Foodservice Inc 2.9 NM NM 100.0%
Rykoff-Sexton Inc
09/09/97 Shareholders 0.7 NA NA 100.0%
Campbell Soup-Noncore Bus(7)
09/18/97 Chiquita Brands International 0.2 NM NM 100.0%
Stokely USA Inc
09/29/97 Suiza Foods Corp 2.1 NA 26.6 100.0%
Morningstar Group Inc
</TABLE>
J.C.Bradford & Co.
19
<PAGE> 22
COMPARABLE TRANSACTION ANALYSIS
FOOD DISTRIBUTION COMPANIES(*) (Dollars in millions)
ANALYSIS OF M&A TRANSACTION MULTIPLES SINCE 1/1/90
<TABLE>
<CAPTION>
AGGREG. EQUITY CONSID.
AS A MULTIPLE OF:
AGGREGATE LEVERED --------------------
DATE EQUITY AGGREGATE LTM NET BOOK
ANNOUNCED ACQUIROR / TARGET CONSIDERATION CONSIDERATION(2) INCOME VALUE
- --------- ----------------- ------------- ---------------- ------ -----
<S> <C> <C> <C> <C> <C>
10/01/97 Chiquita Brands International $ 27.0 $ 29.0 7.5 1.1
American Fine Foods Inc
02/18/98 Agrilink Foods(Pro-Fac) $ 6.9 $ 6.9 NA NA
Delagra Corp
05/08/98 Agrobios(Desc SA de CV) $141.9 $141.9 NM 3.2
Authentic Specialty Foods Inc
07/21/98 Agrilink Foods(Pro-Fac) NA NA NA NA
JA Hopay Distributing Co
07/27/98 Agrilink Foods(Pro-Fac) $480.0 $482.0 NA 1.7
Dean Foods Co-Vegetable Ops
AVERAGE: 26.9 4.1
ADJUSTED AVERAGE 23.9 3.6
</TABLE>
<TABLE>
<CAPTION>
LEVERED AGGREGATE CONSIDERATION
AS A MULTIPLE OF:
--------------------------------
DATE LTM LTM LTM PERCENT
ANNOUNCED ACQUIROR / TARGET REVENUE EBITDA EBIT ACQUIRED
- --------- ----------------- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C>
10/01/97 Chiquita Brands International 0.4 NA NA 100.0%
American Fine Foods Inc
02/18/98 Agrilink Foods(Pro-Fac) NA NA NA 100.0%
Delagra Corp
05/08/98 Agrobios(Desc SA de CV) 2.7 NM NM 100.0%
Authentic Specialty Foods Inc
07/21/98 Agrilink Foods(Pro-Fac) NA NA NA 100.0%
JA Hopay Distributing Co
07/27/98 Agrilink Foods(Pro-Fac) 0.8 NA 11.4 100.0%
Dean Foods Co-Vegetable Ops
AVERAGE: 1.2 12.9 17.3
ADJUSTED AVERAGE 1.1 12.4 16.4
</TABLE>
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
(2) Levered aggregate consideration is defined as aggregate equity
consideration plus total debt, net of cash and equivalents.
J.C.Bradford & Co.
20
<PAGE> 23
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------ -------- -------- ----- --------- ------ -------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/7/90 8/14/90 ConAgra Inc Beatrice Co $1,336.0 $3,294.0 -- -- $864.0 $4,310.0 $11.0 $343.0 $478.0
Advisor Gleacher & Co Salomon Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- ------ --------------
<S> <C> <C> <C> <C>
6/7/90 $1,016.0 $3,472.0 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Beatrice from Kohlberg Kravis Roberts (KKR) for $3.294
bil in cash, common stock, preferred stock, and the assumption of
Beatrice's liabilities. The consideration consisted of $626 mil in
cash, $355 mil in common stock and $355 mil in 2 series of preferred
stock plus the assumption of $1.958 bil of Beatrice's liabilities. The
deal had been subject to governmental approval due to antitrust issues.
Gleacher acted as financial advisor to ConAgra.
Target Business Description
---------------------------
Produce food, consumer prod
Acquiror Business Description
-----------------------------
Produce meats,eggs,cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/28/90 4/4/91 Shareholders Pet Inc(Whitman Corp) $1,607.0 $1,607.0 $15.63 102.8 $801.6 $1,863.2 $21.9 $241.5 $291.5
Advisor -- First Boston Corp.
-------
Company Status Priv. Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C>
9/28/90 $130.0 $1,531.4 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Whitman completed the spinoff of Pet for $1.607 bil, based on Pet's
closing share price of $15.625 on April 4, its first day of trading.
First Boston was retained to study a possible restructure plan and
recommended the spinoff. The transaction was conducted by means of a
stock dividend in which shareholders received one share of Pet for
every Whitman share held. In anticipation of the spinoff, Whitman
restructured its major food operations, splitting them into three
divisions. In 1989, Pet generated $1.755 bil in sales and $280 mil in
pre-tax operating profit.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 24
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------- ------ -------- ------- --------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/19/90 1/18/91 MANO Holdings B Manischewitz Co $42.5 $42.5 $800.00 0.1 $14.2 $34.2 $2.5 $4.2 $5.0
Advisor TGV Partners Lehman Brothers
-------
Company Status Priv. Public
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- -------------- --------
<S> <C> <C> <C> <C>
10/19/90 -- $18.4 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
MANO Holdings, an investor group led by Kohlberg and including TGV
Partners and management, acquired B Manischewitz in a leveraged buyout
transaction valued at $800 in cash per share, or $42.5 mil. MANO
accepted 81% of B Manischewitz' shares (42,975 shares) that were
tendered in the offer and acquired the rest for $800 in cash per share.
Under the terms of the agreement, senior management was to retain an
equity interest in MANO Holdings.
Target Business Description
---------------------------
Produce, whl, ret matzos
Acquiror Business Description
-----------------------------
Investor group; holding co
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/19/91 7/11/91 ConAgra Inc Golden Valley Microwave Foods $408.4 $408.4 $26.39 17.6 $108.0 $177.6 $19.6 $13.6 $21.4
Advisor Gleacher & Co Goldman, Sachs & Co.
-------
Company Status Public Public
--------------
<CAPTION>
<S> <C> <C> <C> <C>
4/19/91 $52.7 $180.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Golden Valley Microwave Foods (GV) in a stock
transaction valued at $464.5 mil. GV shareholders received .5676 shares
of ConAgra for each of GV's 18.8 mil fully diluted common shares. Based
on ConAgra's closing stock price of $47.375 on Apr 18, the last full
trading day prior to the announcement, each share of GV had an
indicated value of $26.39. ConAgra also agreed to convert 600,000 GV
warrants, held by an affiliate of Chase Manhattan Bank, for 340,560
rights to buy ConAgra stock at $60.48.
Target Business Description
---------------------------
Produce microwave food prod
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 25
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/18/91 8/23/91 HJ Heinz Co JL Foods Inc (John Labatt Ltd) $500.0 $500.0 -- -- -- $475.0 -- --
Advisor Dillon, Read James D. Wolfensohn Inc.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
7/18/91 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
HJ Heinz acquired the JL Foods unit of John Labatt for $500 mil in
cash. John Labatt had disclosed in May 1991 that it was seeking a buyer
for its JL Foods unit. Officials said the planned divestiture was
consistent with John Labatt's stated strategy to focus on its core
brewing, entertainment and dairy operations. The transaction had been
subject to US and Canadian regulatory approval.
Target Business Description
---------------------------
Produce, whl frozen foods
Acquiror Business Description
-----------------------------
Canned food preparations
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/20/91 1/31/92 CPC International Inc Fearn Intl (Kellogg Co) $115.0 $115.0 -- -- -- $100.0 -- --
Advisor Salomon Brothers Lehman Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
12/20/91 -- -- -- 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
CPC International acquired all the outstanding common stock of Fearn
International, a subsidiary of Kellogg, including the Le Gout product
line for a $115 mil in cash. Lehman Brothers acted as financial advisor
to Kellogg while Salomon Brothers advised CPC International.
Target Business Description
---------------------------
Produce soups and desserts
Acquiror Business Description
-----------------------------
Produce soups, sauces, food prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 26
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/24/92 8/3/92 Burns Philp Inc Durkee-French Foods (Burns) $85.0 $85.0 -- -- -- $200.0 -- --
Advisor -- --
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
1/24/92 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Burns Philp Inc, a unit of Burns Philp & Co, acquired Durkee-French
Foods from Reckitt & Coleman for $85 mil in cash, including $7 mil to
be held in escrow pending finalization of certain accounts.
Target Business Description
---------------------------
Produce mustard, sauces
Acquiror Business Description
-----------------------------
Produce yeast, vinegar, spices
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/9/92 5/28/92 Ben Hill Griffin Inc Orange-co (Stoneridge Res Inc)$31.0 $31.0 -- -- $85.6 $126.5 ($8.7) ($9.0)
Advisor -- Donaldson, Lufkin & Jenrette
-------
Company Status Priv. Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/9/92 ($4.2) $45.9 $149.8 52.3 Completed
Acq. Maj. Int.
Friendly
</TABLE>
Deal Description
----------------
Ben Hill Griffin acquired a 52.3% interest in Orange-co held by
Stoneridge Resources for $31 mil. Stonebridge Resources said in October
1990 that it was seeking a buyer for all of its assets for the purpose
of raising cash to distribute a liquidation dividend to shareholders.
Stonebridge retained Donaldson Lufkin & Jenrette Securities as a
financial advisor.
Target Business Description
---------------------------
Prod oranges, juices, plastics
Acquiror Business Description
-----------------------------
Frozen fruits, juices, vegetable
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 27
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/22/92 8/2/93 Shareholders Ralston-Continental Baking $181.1 $181.1 $8.75 37.6 $137.4 $2,014.5 $35.8 $92.9
Advisor - Lehman Brothers
-------
Company Status Priv. Sub.
- ----------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/22/92 -- -- $844.9 55 Completed
Acq. Maj. Int.
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina (RP) completed the spinoff of 20.7 mil new common
shares, or a 55% interest, in its newly created Ralston-Continental
Baking Group (CBG) to shareholders in a targeted stock recapitalization
valued at $181.12 mil. Shareholders of record as of Jul 30 received 1
CBG share for every 5 RP share held. Ralston Purina had originally
planned to spinoff the entire unit in April 1992. CBG was created in
order to separate the performance of RP's baking and non-baking
interests.
Target Business Description
---------------------------
Produce bakery products
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/12/92 2/1/93 Dean Foods Co WB Roddenbery Co $15.0 $15.0 -- -- $12.8 $54.8 ($1.7) ($1.4)
Advisor -- KPMG Peat Marwick
-------
Company Status Public Priv.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
10/12/92 ($0.5) $0.8 $19.1 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired all the outstanding stock of WB Roddenbery in
exchange for 535,000 of its common shares valued at $14.2 mil. The
value of the shares was based on Dean's closing stock price of $26.5
per share on Oct 9, the last full trading day prior to the
announcement. The transaction had been subject to Federal Trade
Commission approval.
Target Business Description
---------------------------
Produce pickles, vinegar, syrup
Acquiror Business Description
-----------------------------
Produce milk, dairy products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 28
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/12/93 11/3/94 Pro-Fac Cooperative Inc Curtice-Burns Foods(Pro-Fac) $164.2 $431.2 $19.00 8.6 $81.3 $854.8 ($18.5)
Advisor Dillon, Read Donaldson, Lufkin & Jenrette
------- Priv. Public
Company Status
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
8/12/93 ($5.2) $21.0 $257.5 $463.6 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative (PFC) acquired Curtice-Burns (CBF) for a total of
$19 in cash per share, or a total value of $424.25 mil, by accepting
8,276,439 common shares, or 96% of the outstanding shares. Included in
the value was PFC's assumption of $267 mil of CBF's debt. PFC had
originally offered $16.87 in cash per share held. The tender offer was
contingent upon at least 90% of CBF's Class A and B shares being
tendered. Dean Foods withdrew its offer to acquire CBF.
Target Business Description
---------------------------
Produce soft drinks, foods
Acquiror Business Description
-----------------------------
Provide food marketing service
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/16/93 3/31/94 Shareholders Ralcorp Holdings Inc (Ralston) $528.0 $528.0 $16.00 33.0 -- $808.6 --
Advisor -- Wasserstein, Perella
------- Priv. Sub.
Company Status
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
8/16/93 -- -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina Group, a unit of Ralston Purina, spun off its newly
formed Ralcorp Holdings (RH) unit, consisting of its cereal, Beech-Nut
baby food, cracker, cookie, resort, and coupon redemption businesses to
shareholders in a transaction valued of $528 mil based on RH's closing
stock price of $16 per share on Apr 1, the first full trading day of
newly issued RH shares. The shares in the spinoff would be distributed
at a ratio of 1 RH share for every 3 shares of Ralston Purina Group.
The unit included its Keystone and Breckenridge ski resorts.
Target Business Description
---------------------------
Produce cereal, baby food
Acquiror Business Description
-----------------------------
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 29
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/1/93 12/27/93 Dean Foods Co Kraft General Foods-Birds Eye $140.0 $140.0 -- -- -- $250.0
Advisor JP Morgan Securities, Inc. Morgan Stanley
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
11/1/93 $6.0 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired the BirdsEye frozen vegetable business of Kraft
General Foods, a unit of Philip Morris, for $140 mil. The transaction
had been subject to regulatory approval.
Target Business Description
---------------------------
Prod frozen vegetables
Acquiror Business Description
-----------------------------
Produce milk, dairy products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/18/94 6/1/94 Doskocil Cos Inc Intl Multifoods-Prepared Foods $135.0 $135.0 -- -- -- $185.0
Advisor -- Lehman Brothers
-------
Company Status Public Sub
- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
3/18/94 -- -- -- -- -- 100 Completed
Acq. of
Assets
Friendly
</TABLE>
Deal Description
----------------
Doskocil acquired the prepared foods division of International
Multifoods (IM) for $135 mil in cash. In September 1993, IM's board had
announced that it was seeking to divest its prepared foods division.
The division included its frozen specialty foods and meats businesses.
Later IBP acquired the meats business.
Target Business Description
---------------------------
Produce prepared foods
Acquiror Business Description
-----------------------------
Produce sausages, prepared meat
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 30
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ----------- ----------------------------- ------ ------ ------ --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/18/94 -- ConAgra Inc Universal Foods-Frozen Foods $202.0 $202.0 -- -- -- -- -- --
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------ --------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/18/94 -- -- -- -- Pending
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra agreed to acquire the frozen foods business of Universal Foods
for an amended $202 mil in cash. The initial value was $220 mil,
including $57 mil in performance-related payments. The transaction was
subject to regulatory approval.
Target Business Description
---------------------------
Produce frozen foods
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/20/94 11/30/94 Schreiber Foods Inc Arden International Kitchens $11.8 $11.8 $3.90 3.0 $4.2 $19.5 $0.7 $1.1
Advisor -- --
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/20/94 $2.1 $0.9 $6.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Schreiber Foods (SF) acquired Arden International Kitchens (AIK) for an
amended $11.8 mil in cash, or $3.90 per common share. SF had originally
agreed to acquire AIK for $4 per share, or a total value of $12.1 mil.
Target Business Description
---------------------------
Produce frozen foods for
Acquiror Business Description
-----------------------------
Produce meat and food products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 31
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- -------- -------- ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/23/94 12/19/94 Sandoz AG Gerber Products Co $3,685.7 $3,685.7 $53.00 69.5 $364.7 $1,202.5 $114.2 $184.0
Advisor Morgan Stanley Wasserstein, Perella
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ ---------
<S> <C> <C> <C> <C> <C>
5/23/94 $226.0 $84.7 $1,013.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Sandoz completed its merger with Gerber Products (GP) in a transaction
valued at $3.68 bil. Earlier, Sandoz had completed its tender offer for
all the common shares of GP for $53 in cash per share, by accepting
69.08 mil shares, or about 99.2% of GP's shares outstanding. The offer
had been conditioned upon Sandoz receiving at least a majority of GP's
stock. The transaction had been subject to regulatory approval,
including the approval of the Federal Trade Commission under the
Hart-Scott-Rodino Act, and the Superintendent of Insurance of New York.
Target Business Description
-----------------------------
Manfr baby foods and products
Acquiror Business Description
-----------------------------
Manufacture dyestuffs
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/12/94 3/14/95 Kohlberg Kravis Roberts & Co Borden Inc $2,222.9 $4,622.9 $13.61 170.3 $257.5 $5,498.2 ($114.2) $115.4
Advisor Morgan Stanley Credit Suisse First Boston
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
9/12/94 -- $1,682.7 $4,055.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Kohlberg Kravis Roberts (KKR) merged with Borden (BN) in an amended
stock swap valued at $4.643 bil, including $2.4 bil in the assumption
of liabilities. The value included a 16.5% stake KKR acquired in Borden
through a lockup agreement valued at $309.518 mil. Earlier, KKR had
completed a tender offer to acquire all the shares of BN in exchange
for 2.29146 RJR shares, valued at $13.606, per BN share held, by
accepting 90 mil shares, or about 63.5% of BN's total shares
outstanding. The offer had been conditioned upon a minimum of 41% of
BN's shares being tendered.
Target Business Description
---------------------------
Produce dairy prods, snacks
Acquiror Business Description
-----------------------------
Leverage buyout firm
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 32
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- ------ -------- ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/28/94 1/30/95 Campbell Soup Co Pace Foods $1,115.0 $1,115.0 -- -- $61.0 $230.0 $45.0
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ -------- -------- ------ --------- --------------
<S> <C> <C> <C> <C> <C> <C>
11/28/94 $42.4 $47.0 -- $112.7 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Campbell Soup acquired Pace Foods for $1.115 bil in cash.
Target Business Description
---------------------------
Produce pickled vegetables
Acquiror Business Description
-----------------------------
Produce soups, food products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/9/95 5/12/95 Pillsbury Co (Grand Met PLC) Pet Inc (Pillsbury/Grand Met) $2,636.5 $2,636.5 $26.00 100.4 $362.2 $1,576.3 $112.6
Advisor Morgan Stanley Lazard Freres & Co.
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1/9/95 $216.7 $262.5 $528.1 $1,175.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pillsbury, a unit of Grand Metropolitan (GM), completed its merger with
Pet in a transaction valued at $2.636 bil. Earlier, Pillsbury completed
its tender offer for all the outstanding common shares of Pet for $26
in cash per share, by accepting 95,364,543 shares, or 95% of Pet's
common stock outstanding. The offer had been conditioned upon GM
receiving at least 50% of Pet's shares outstanding, and had been
subject to regulatory approval.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Produce flour, grain mill prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 33
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------ ------------------------------ ------ ------ ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/26/95 3/27/96 Shareholders Earthgrains Co (Anheuser-Busch)$309.8 $309.8 $30.38 10.2 $573.8 $1,664.6 ($25.7) ($31.2)
Advisor -- Dillon, Read
-------
Company Status Priv. Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
7/26/95 -- $56.2 $1,130.1 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Anheuser-Busch (AB) completed the spin off its Earthgrains (EA) unit to
shareholders in a transaction valued at $309.83 mil. Each AB common
shareholder received 1 EA common share for every 25 AB shares held.
EA's shares were valued based on EA's closing stock price of $30.375 on
Mar 27, the first full trading day on a non-when issued basis. Earlier,
EA was known as as Cambell Taggart.
Target Business Description
---------------------------
Baked goods, frozen foods
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/29/96 ConAgra Inc Gilroy Foods Inc $132.0 $132.0 -- -- -- $200.0 -- --
Advisor -- --
- -------
Company Status Public Sub.
- --------------
<S> <C> <C> <C> <C> <C>
3/15/96 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Gilroy Foods, a unit of McCormick, for $132 mil in
cash.
Target Business Description
---------------------------
Produce dried fruits
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 34
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------ --------------------- ------ ------ ------ --------- ------ ------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/30/97 12/23/97 JP Foodservice Inc Rykoff-Sexton Inc $770.6 $1,510 $24.41 28.0 $336.0 $519.9 ($60.2) ($79.5)
Advisor PaineWebber Merrill Lynch & Co.
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
6/30/97 ($73.0) $483.2 $1,217.2 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
JP Foodservice (JP) merged with Rykoff-Sexton (RS) in a
merger-of-equals stock swap transaction valued at an amended $1.436
bil, including the assumption of $740 mil in liabilities. JP offered an
amended .775 common shares per RS share. Originally, JP offered .82
common shares per RS share. Based on JP's closing stock price of $31.5
on June 27, the last full trading day prior to the announcement of
amended terms, each RS share was valued at $24.4125. The transaction
was accounted for as a pooling of interests and had been subject to
regulatory approval.
Target Business Description
---------------------------
Wholesale grocery products
Acquiror Business Description
-----------------------------
Wholesale groceries
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/11/98 Shareholders Campbell Soup-Noncore Bus(7) $1,004 $1,004.8 $22.13 45.4 -- $1,400 -- --
9/9/97
Advisor -- Goldman, Sachs & Co.
- -------
Company Status Priv. Sub.
- --------------
<S> <C> <C> <C> <C> <C>
9/9/97 -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Campbell Soup (CS) spun off its 7 noncore businesses including the
Swanson frozen dinner and Vlasic pickle brands into a new company named
Vlasic Foods (VF) to its shareholders in a transaction valued at $1.004
bil. CS shareholders received 1VF common share for every 10 CS shares
held. The shares were valued based on VF's closing stock price of
$22.125 on March 11, the first full trading day on which the shares
were distributed.
Target Business Description
---------------------------
Produce, whl soups, food prods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 35
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------------ ------ ------ ------ --------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/18/97 1/16/98 Chiquita Brands International Stokely USA Inc $10.9 $42.9 $1.00 11.4 $6.1 $178.9
Advisor No Investment Bank Retained Donaldson, Lufkin & Jenrette
-------
Company Status Public Public
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
9/18/97 ($19.4) ($8.9) ($2.9) $74.7 $116.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International (CBI) acquired all the outstanding common
stock of Stokely USA (SU) in exchange for $1 in common stock per share,
or a total value of approximately $43.389 mil, including the assumption
of about $32 mil in liabilities.
Target Business Description
------------------------------
Prod canned fruits, vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/29/97 12/1/97 Suiza Foods Corp Morningstar Group Inc $855.9 $1,035.9 $45.85 15.4 $99.4 $497.6
Advisor Donaldson, Lufkin & Jenrette Goldman, Sachs & Co.
-------
Company Status Public Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
9/29/97 $18.2 $38.9 -- 178.5 $352.3 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Suiza Foods (SF) acquired Morningstar Group (MG) in a stock swap
transaction valued at approximately $971.957 mil, including the
assumption of $180 mil in liabilities. SF offered .85 SF common shares
per MG share. Based on SF's closing stock price of $53.9375 on Sep 26,
the last full trading day prior to the announcement, each MG share was
valued at $45.85. The transaction was accounted for as a pooling of
interests and had been subject to regulatory approval.
Target Business Description
---------------------------
Produce dairy products
Acquiror Business Description
-----------------------------
Produce milk, related prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 36
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/1/97 12/9/97 Chiquita Brands International American Fine Foods Inc $27.0 $29.0 -- -- $25.6 $79.8 $3.6
Advisor -- JP Morgan & Co. Inc.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
10/1/97 -- -- -- $52.0 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International acquired all the outstanding stock of
American Fine Foods for $29 mil. The consideration consisted of $27 mil
in common stock and the assumption of $2 mil in liabilities. The
transaction was subject to regulatory approval.
Target Business Description
---------------------------
Produce canned vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/98 Agrilink Foods (Pro-Fac) Delagra Corp $6.9 $6.9 -- -- -- --
Advisor -- --
-------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C>
-- -- -- 100 Completed
2/18/98 Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative Inc, acquired Delagra Corp (DE). Terms were not
disclosed. Upon completion, DE was to be incorporated to AF's Curtice
Burns Foods subsidiary.
Target Business Description
---------------------------
Produce frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 37
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ------------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/8/98 6/15/98 Agrobios (Desc SA de CV) Authentic Specialty Foods Inc $141.9 $141.9 $17.00 8.0 $40.5 $37.2 ($0.6)
Advisor JP Morgan & Co. Inc. Donaldson, Lufkin & Jenrette
-------
Company Status Sub. Public
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
5/8/98 ($0.4) $0.8 $10.2 $58.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Agrobios (AB), a unit of Desc SA de CV, acquired all the outstanding
common stock of Authentic Specialty Foods Inc (ASF) for $17 in cash per
share, or a total value of $141.876 mil. Earlier, AB completed its
tender offer for ASF by accepting 7.8 million shares, or 89% of ASF's
shares outstanding. The offer had been conditioned upon at least 66.67%
of ASF's shares being tendered on a fully-diluted basis.
Target Business Description
---------------------------
Whl, mnfr Mexican foods
Acquiror Business Description
-----------------------------
Mnfr, whl foods products
<TABLE>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/21/98 Agrilink Foods (Pro-Fac) JA Hopay Distributing Co -- -- -- -- -- $8.0 --
Advisor -- --
- -------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C> <C>
7/21/98 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods, a unit of Pro-Fac Cooperative Inc, acquired JA Hopay
Distributing Co.
Target Business Description
---------------------------
Distribution of snack foods
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 38
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ---------------------------- ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/27/98 9/24/98 Agrilink Foods (Pro-Fac) Dean Foods Co-Vegetable Ops $480.0 $482.0 -- -- -- $620.6 --
Advisor - Merrill Lynch & Co.
-------
Company Status Sub. Sub.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
7/27/98 $42.4 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods (AF), a unit of Pro-Fac Cooperative Inc, acquired the
vegetable operations of Dean Foods Co for an estimated $370 mil in
cash, a $30 mil note and AF's aseptic foods business. Included in the
acquisition were the Birds Eye, Freshlike and VegAll brand names.
Target Business Description
---------------------------
Mnfr frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
*Covers industries with SIC Codes in the 2030s. Source: Securities Data Company,
Inc. (201) 622-3100. As of 12/8/98.
<PAGE> 39
DISCOUNTED CASH FLOW ANALYSIS
UNITED FOODS - DISCOUNTED CASH FLOW ANALYSIS
0% GROWTH SCENARIO - PER SHARE VALUATION
CAPITAL EXPENDITURES AT 100% OF MANAGEMENT'S PROJECTIONS
<TABLE>
<CAPTION>
COST SAVINGS (000'S)
-------------------------------------------------
- $500 $750 $1,000
-------------------------------------------------
DISCOUNT RATE
<S> <C> <C> <C> <C> <C>
5.0x $0.56 $0.99 $1.21 $1.42
8% 6.0x $1.85 $2.33 $2.58 $2.82
7.0x $3.15 $3.68 $3.94 $4.21
5.0x $(0.11) $0.29 $0.49 $0.69
10% 6.0x $1.07 $1.51 $1.74 $1.96
7.0x $1.44 $1.90 $2.12 $2.35
</TABLE>
CAPITAL EXPENDITURES AT 75% OF MANAGEMENT'S PROJECTIONS
<TABLE>
<CAPTION>
COST SAVINGS (000'S)
-------------------------------------------------
- $500 $750 $1,000
-------------------------------------------------
DISCOUNT RATE
<S> <C> <C> <C> <C> <C>
5.0x $1.63 $2.06 $2.27 $2.49
8% 6.0x $2.92 $3.40 $3.64 $3.88
7.0x $4.21 $4.74 $5.01 $5.27
5.0x $0.90 $1.30 $1.50 $1.70
10% 6.0x $2.08 $2.53 $2.75 $2.97
7.0x $2.40 $2.86 $3.09 $3.31
</TABLE>
CAPITAL EXPENDITURES AT 50% OF MANAGEMENT'S PROJECTIONS
<TABLE>
<CAPTION>
COST SAVINGS (000'S)
-------------------------------------------------
- $500 $750 $1,000
-------------------------------------------------
DISCOUNT RATE
<S> <C> <C> <C> <C> <C>
5.0x $2.69 $3.12 $3.34 $3.55
8% 6.0x $3.98 $4.47 $4.71 $4.95
7.0x $5.28 $5.81 $6.07 $6.34
5.0x $1.91 $2.31 $2.51 $2.71
10% 6.0x $3.09 $3.54 $3.76 $3.98
7.0x $3.36 $3.82 $4.05 $4.28
</TABLE>
J.C.Bradford & Co.
21
<PAGE> 40
DISCOUNTED CASH FLOW ANALYSIS
UNITED FOODS - DISCOUNTED CASH FLOW ANALYSIS
2.5% GROWTH SCENARIO - PER SHARE VALUATION
CAPITAL EXPENDITURES AT 100% OF MANAGEMENT'S PROJECTIONS
<TABLE>
<CAPTION>
COST SAVINGS (000'S)
-------------------------------------------------
- $500 $750 $1,000
-------------------------------------------------
DISCOUNT RATE
<S> <C> <C> <C> <C> <C>
5.0x $1.16 $1.59 $1.81 $2.02
8% 6.0x $2.62 $3.10 $3.34 $3.59
7.0x $4.09 $4.62 $4.88 $5.15
5.0x $0.42 $0.82 $1.02 $1.22
10% 6.0x $1.76 $2.20 $2.43 $2.65
7.0x $2.20 $2.66 $2.88 $3.11
</TABLE>
CAPITAL EXPENDITURES AT 75% OF MANAGEMENT'S PROJECTIONS
<TABLE>
<CAPTION>
COST SAVINGS (000'S)
-------------------------------------------------
- $500 $750 $1,000
-------------------------------------------------
DISCOUNT RATE
<S> <C> <C> <C> <C> <C>
5.0x $2.22 $2.66 $2.87 $3.09
8% 6.0x $3.69 $4.17 $4.41 $4.65
7.0x $5.15 $5.68 $5.95 $6.21
5.0x $1.43 $1.83 $2.03 $2.24
10% 6.0x $2.77 $3.21 $3.44 $3.66
7.0x $3.16 $3.62 $3.84 $4.07
</TABLE>
CAPITAL EXPENDITURES AT 50% OF MANAGEMENT'S PROJECTIONS
<TABLE>
<CAPTION>
COST SAVINGS (000'S)
-------------------------------------------------
- $500 $750 $1,000
-------------------------------------------------
DISCOUNT RATE
<S> <C> <C> <C> <C> <C>
5.0x $3.29 $3.72 $3.94 $4.15
8% 6.0x $4.75 $5.23 $5.48 $5.72
7.0x $6.22 $6.75 $7.01 $7.28
5.0x $2.45 $2.85 $3.05 $3.25
10% 6.0x $3.78 $4.23 $4.45 $4.67
7.0x $4.12 $4.58 $4.81 $5.03
</TABLE>
J.C.Bradford & Co.
22
<PAGE> 41
DISCOUNTED CASH FLOW ANALYSIS
UNITED FOODS, INC.
EBITDA (1980-1999)
HISTORICAL
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8,965 10,851 11,764 15,698 13,341 12,776 7,142 5,487 251 9,340 19,876 14,835 10,918
21.0% 8.4% 33.4% (15.0%) (4.2%) (44.1%) (23.2%) (95.4%) 3621.1% 112.8% (25.4%) (26.4%)
</TABLE>
<TABLE>
<CAPTION>
1993 1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9,018 9,291 13,621 10,276 12,531 12,127 12,936 Avg. 12,531 12,298 12,543
(17.4%) 3.0% 46.6% (24.6%) 21.9% (3.2%) 6.7% CAGR 1.6% (1.3%) (4.7%)
</TABLE>
SMOOTHED (3-YEAR)
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10,527 12,771 13,601 13,938 11,086 8,468 4,293 5,026 9,822 14,684 15,210
21.3% 6.5% 2.5% (20.5%) (23.6%) (49.3%) 17.1% 95.4% 49.5% 3.6%
</TABLE>
<TABLE>
<CAPTION>
1993 1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11,590 9,742 10,643 11,063 12,143 11,645 12,531 Avg. 12,106 11,605 11,907
(23.8%) (15.9%) 9.2% 3.9% 9.8% (4.1%) 7.6% CAGR 1.6% 4.2% 2.7%
</TABLE>
DEPRECIATION
HISTORICAL
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2,832 2,578 2,565 3,391 3,445 3,415 3,354 3,402 4,059 5,352 5,777 6,086 6,249 6,104 6,005 6,637
(9.0%) (0.5%) 32.2% 1.6% (0.9%) (1.8%) 1.4% 19.3% 31.9% 7.9% 5.3% 2.7% (2.3%) (1.6%) 10.5%
</TABLE>
<TABLE>
<CAPTION>
1996 1997 1998 1999 3 Year 5 year 10 Year
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
7,362 7,859 7,285 7,266 Avg. 7,470 7,282 6,663
10.9% 6.8% (7.3%) (0.3%) CAGR (3.8%) 2.3% 2.6%
</TABLE>
SMOOTHED (3-YEAR)
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2,658 2,845 3,134 3,417 3,405 3,390 3,605 4,271 5,063 5,738 6,037 6,146 6,119 6,249
7.0% 10.2% 9.0% (0.4%) (0.4%) 6.3% 18.5% 18.5% 13.3% 5.2% 1.8% (0.4%) 2.1%
</TABLE>
<TABLE>
<CAPTION>
1996 1997 1998 1999 3 Year 5 year 10 Year
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
6,668 7,286 7,502 7,470 Avg. 7,419 7,035 6,428
6.7% 9.3% 3.0% (0.4%) CAGR 1.3% 4.6% 4.4%
</TABLE>
CAP EX
HISTORICAL
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1,914 1,686 3,220 16,276 3,982 5,127 5,979 11,455 22,795 5,957 6,794 9,940 2,363 4,948
(11.9%) 91.0% 405.5% (75.5%) 28.8% 16.6% 91.6% 99.0% (73.9%) 14.1% 46.3% (76.2%) 109.4%
</TABLE>
<TABLE>
<CAPTION>
1994 1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9,133 9,874 11,914 533 4,774 17,500 Avg. 7,602 8,919 7,777
84.6% 8.1% 20.7% (95.5%) 795.7% 266.6% CAGR 473.0% 15.4% 11.1%
</TABLE>
SMOOTHED (3-YEAR)
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2,273 7,061 7,826 8,462 5,029 7,520 13,410 13,402 11,849 7,564 6,366 5,750 5,481
210.6% 10.8% 8.1% (40.6%) 49.5% 78.3% (0.1%) (11.6%) (36.2%) (15.8%) (9.7%) (4.7%)
</TABLE>
<TABLE>
<CAPTION>
1995 1996 1997 1998 1999 3 Year 5 year 10 Year
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
7,985 10,307 7,440 5,740 7,602 Avg. 6,928 7,815 7,608
45.7% 29.1% (27.8%) (22.8%) 32.4% CAGR 1.1% (1.2%) (4.8%)
</TABLE>
-23-
J.C. BRADFORD & CO.
<PAGE> 42
DISCOUNTED CASH FLOW ANALYSIS
UNITED FOODS, INC.
CALCULATION OF WEIGHTED AVERAGE COST OF CAPITAL
(in thousands except per share)
Weighted Average Cost of Capital (WACC) = (Equity % of Capitalization)
(Cost of Equity) + (Debt % of Capitalization)(Cost of Debt)
32.1% Equity (19.98%) + 67.9% Debt (5.58%)
10.2%
<TABLE>
<CAPTION>
Cost of Equity Data Used
-------------- ---------
<S> <C>
Cost of Equity = R(f)+ B (R(m)- R(f)) Capital Asset Pricing Model (a)
Risk Free Rate = R(f) 10 Year Treasury Yield = 4.49% (b)
Beta of Common Stock = B UFD Beta = 1.3 (c)
Market Risk Premium = (R(m)- R(f)) Common Stock Returns
over Int.-term Gov't Bonds = 8.9% (d)
Cost of Equity =4.5% + 1.3(*)(8.9%) + 3.5% Micro-Cap Stock Premium 3.5%
Cost of Debt = (1-T)(*)Ri (e)
Cost of Equity = 20.0% Cost of Debt = 5.6%
</TABLE>
Capitalization (f)=$20,430 of Market Equity + $43,249
of Long Term Debt = $63,679
=32.1% Equity + 67.9% Debt
(a) The Capital Asset Pricing Model states that the return on an asset or
security is equal to the risk free return (i.e., Treasury Bonds) plus a
risk premium.
(b) 10 Year Treasury as of 9/30/98.
(c) Beta estimate taken from Value Line Investment Survey.
(d) Intermediate horizon risk premium of 8.9%, as calculated by Ibbotson &
Sinquefield, 1996. Includes an additional Micro-Cap Stock Premium of 3.5%.
(e) Interest cost of 9.00%, tax adjusted at 38.0%.
(f) Assumes UFD has a targeted capital structure of 32.1% equity and 67.9%
debt.
J.C. BRADFORD & CO.
-24-
<PAGE> 43
DISCOUNTED CASH FLOW ANALYSIS
UNITED FOODS, INC. -- Projection Model (0% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
(Numbers in Thousands)
<TABLE>
<CAPTION>
(Fiscal Year Ended February)
11/12/98 11:17 AM 2000 2001 2002 2003 2004
<S> <C> <C> <C> <C> <C>
EBITDA $ 12,938 $ 12,938 $ 12,938 $ 12,938 $ 12,938
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,511 4,304 4,186 4,110 4,031
--------- --------- -------- -------- --------
Pre-tax income 1,159 1,366 1,484 1,560 1,639
Provision for income taxes 440 519 564 593 623
--------- --------- -------- -------- --------
Net income 718 847 920 967 1,016
========= ========= ======== ======== ========
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,797 2,668 2,595 2,548 2,499
Less: Net additions to working capital (1) - - - - -
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
--------- --------- -------- -------- --------
Operating cash flow $ 3,515 $ 3,515 $ 3,515 $ 3,515 $ 3,515
========= ========= ======== ======== ========
Cash flow growth 0.0% 0.0% 0.0% 0.0%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
<S> <C> <C> <C> <C>
8.0% $ 3,815 $ 12,620 $ 21,426 $ 30,231
10.0% (754) 7,279 15,312 23,346
12.0% (4,869) 2,472 9,814 17,155
--------
Average Valuation of Equity $ 11,487
--------
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2) (4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
<S> <C> <C> <C> <C> <C>
8.0% $ 0.56 $ 1.85 $ 3.15 $ 4.44
10.0% $ (0.11) $ 1.07 $ 2.25 $ 3.43
12.0% $ (0.71) $ 0.36 $ 1.44 $ 2.52
--------
Average Per Share Valuation of Equity $ 1.69
--------
</TABLE>
(1) Excluding cash and short-term debt.
(2) Less total capital liab. (net of cash) of $54,248
(3) Discount rates are near estimates of WACC.
(4) Based on 6.8 million shares outstanding.
J.C. BRADFORD & CO.
-25-
<PAGE> 44
INVESTMENT BANKING GROUP
UNITED FOODS, INC. -- Projection Model (0% Growth)
Projected Income Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Historical Projected
1999 2000 2001 2002 2003 2004
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $ 211,839 $ 211,839 $ 211,839 $ 211,839 $ 211,839
Cost of sales 172,486 172,486 172,486 172,486 172,486 172,486
------- ------- ------- ------- ------- -------
Gross profit 39,353 39,353 39,353 39,353 39,353 39,353
General and administrative, net dep 10,093 10,093 10,093 10,093 10,093 10,093
Direct selling expenses 16,322 16,322 16,322 16,322 16,322 16,322
------ ------ ------ ------ ------ ------
Total operating expenses 26,415 26,415 26,415 26,415 26,415 26,415
EBITDA 12,938 12,938 12,938 12,938 12,938 12,938
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
------- ------- ------- ------- ------- -------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 5,670 5,670 5,670 5,670 5,670
Interest expense 4,179 4,511 4,304 4,186 4,110 4,031
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense -- -- -- -- -- --
Other (income) (4) -- -- -- -- --
------ ------ ------ ------ ------ ------
Other expenses (income) 4,175 4,511 4,304 4,186 4,110 4,031
Pre-tax income 1,495 1,159 1,366 1,484 1,560 1,639
Provision for income taxes 575 440 519 564 593 623
------ ------ ------ ------ ------ ------
Net income $ 920 $ 718 $ 847 $ 920 $ 967 $1,016
====== ====== ====== ====== ====== ======
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 45
INVESTMENT BANKING GROUP
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH)
PROJECTED BALANCE SHEETS
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
HISTORICAL PROJECTED
1999 2000 2001 2002 2003 2004
---- ---- ---- ---- ---- ----
ASSETS
<S> <C> <C> <C> <C> <C> <C>
Cash $ 3,723 $ 1,281 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,771 18,771 18,771 18,771 18,771 18,771
Inventory 36,217 36,217 36,217 36,217 36,217 36,217
Prepaid expenses 3,508 3,508 3,508 3,508 3,508 3,508
Deferred income taxes 1,238 1,238 1,238 1,238 1,238 1,238
--------- --------- --------- --------- --------- ---------
Total current assets 63,457 61,015 59,834 59,834 59,834 59,834
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 804 804 804 804 804
Notes & accounts receivable 50 50 50 50 50 50
Deferred charges & other assets 723 723 723 723 723 723
--------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 124,678 $ 123,497 $ 123,497 $ 123,497 $ 123,497
========= ========= ========= ========= ========= =========
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 46
INVESTMENT BANKING GROUP
UNITED FOODS, INC.--PROJECTION MODEL (0% GROWTH)
PROJECTED BALANCE SHEETS
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
HISTORICAL PROJECTED
1999 2000 2001 2002 2003 2004
---- ---- ---- ---- ---- ----
LIABILITIES & EQUITY
<S> <C> <C> <C> <C> <C> <C>
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 10,850 10,850 10,850 10,850 10,850
Accrued liabilities 6,911 6,911 6,911 6,911 6,911 6,911
Income taxes payable 135 135 135 135 135 135
------ ------ ------ ------ ------ ------
Total current liabilities 21,056 20,405 28,677 19,351 19,480 43,735
Long term debt
Revolver - - 481 10,341 10,829 11,397
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit - - - - - -
------ ------ ------ ------ ------ ------
Total debt 57,971 54,811 52,783 51,862 50,895 49,879
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
------ ------ ------ ------ ------ ------
Total long-term debt 54,811 52,302 42,002 50,407 49,311 24,040
Deferred income taxes 4,585 4,585 4,585 4,585 4,585 4,585
------ ------ ------ ------ ------ ------
Total liabilities 80,452 77,292 75,264 74,343 73,376 72,360
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 36,583 37,430 38,351 39,318 40,334
------ ------ ------ ------ ------ ------
Total stockholders' equity 46,668 47,386 48,233 49,154 50,121 51,137
------ ------ ------ ------ ------ ------
Total liabilities & equity $ 127,120 $ 124,678 $ 123,497 $ 123,497 $ 123,497 $ 123,497
========= ========= ========= ========= ========= =========
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 47
INVESTMENT BANKING DISCOUNT
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH)
PROJECTED CASH FLOW STATEMENTS
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
PROJECTED
2000 2001 2002 2003 2004
----------------------------------------------------
Cash flows from operating activities:
<S> <C> <C> <C> <C> <C>
Net income $ 718 $ 847 $ 920 $ 967 $ 1,016
Depreciation 7,268 7,268 7,268 7,268 7,268
------------------------------------------------------
Net cash provided by operating activities 7,986 8,115 8,188 8,235 8,284
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------------------------------------------------------
Net cash provided by investing activities (7,268) (7,268) (7,268) (7,268) (7,268)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (11,262) (2,422) (2,600)
Drawdown on revolver -- 481 10,341 1,455 1,584
------------------------------------------------------
Net cash provided by financing activities (3,160) (2,028) (920) (967) (1,016)
------------------------------------------------------
Net additions to cash $ (2,442) $ (1,181) $ 0 $ 0 $ 0
======================================================
Beginning cash balance 3,723 1,281 100 100 100
Ending cash balance 1,281 100 100 100 100
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 48
PREMIUM ANALYSIS
United Foods, Inc.
M&A Premium Analysis
BASED ON ADJUSTED AVERAGE PREMIUM (1 WEEK BEFORE ANNOUNCEMENT)
<TABLE>
<CAPTION>
IMPLIED
CLASS DATE PREMIUM PRICE OFFER PRICE
-------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
A 9/9/98 36.73% $2.63 $3.60
B 9/9/98 36.73% $2.81 $3.84
</TABLE>
Percentage of transactions with premiums below 20% is
30.7%.
BASED ON ADJUSTED AVERAGE PREMIUM (4 WEEKS BEFORE
ANNOUNCEMENT)
<TABLE>
<CAPTION>
IMPLIED
CLASS DATE PREMIUM PRICE OFFER PRICE
-------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
A 8/17/98 42.80% $2.94 $4.20
B 8/17/98 42.80% $3.00 $4.28
</TABLE>
Percentage of transactions with premiums below 20%
is 20.9%.
J.C. BRADFORD & CO.
26
<PAGE> 49
INVESTMENT BANKING GROUP
PREMIUM ANALYSIS
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF PRICE
DATE DATE TRANSACTION PER
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE
--------- --------- ------------------------------ ------------------------------ -------- ------
<S> <C> <C> <C> <C> <C>
08/28/96 01/03/96 Recoton Corp International Jensen Inc 109.1 11.00
04/30/96 01/08/96 Lockheed Martin Corp Loral Corp 8762.4 38.00
04/30/96 01/09/96 CompuWare Corp Technalysis Corp 32.6 14.00
07/30/96 01/11/96 National Golf Properties Inc Golf Enterprises Inc 82.9 12.00
02/26/96 01/16/96 Multicare Cos Inc Concord Health Group 126.9 7.35
04/10/96 01/16/96 Depuy Inc(Corange Ltd) Orthopedic Technology Inc 45.2 10.43
04/11/96 01/22/96 Farnell Electronics PLC Premier Industrial Corp 2722.7 32.92
05/09/96 01/23/96 Spartech Corp Portage Industries Corp 15.8 6.60
07/16/96 01/24/96 First Maryland Bancorp,MD 1st Washington Bancorp Inc 81.9 8.13
03/29/96 01/24/96 Cisco Systems Inc TGV Software Inc 92.4 15.57
04/08/96 01/29/96 WH Brady Co Varitronic Systems Inc 42.5 17.50
03/04/96 01/31/96 IBM Corp Tivoli Systems Inc 709.8 47.50
06/19/96 02/05/96 Bay View Capital,San Mateo,CA CTL Credit Inc 65.0 18.00
05/01/96 02/12/96 Honeywell Inc Duracraft Corp 286.7 43.50
09/18/96 02/13/96 Jacor Communications Inc Citicasters(American Finl Grp) 767.6 29.50
07/12/96 02/13/96 Horizon/CMS Healthcare Corp Medical Innovations Inc 30.3 1.85
07/01/96 02/13/96 LBO Enterprises S-K-I Ltd 135.3 18.00
03/20/96 02/14/96 Unilever NV Helene Curtis Industries Inc 737.4 70.00
05/14/96 02/15/96 Genstar Capital Partners II LP Andros Inc 92.6 18.00
04/29/96 02/15/96 NationsBank Corp,Charlotte,NC LDI Corp 28.1 4.10
05/30/96 02/16/96 Tosco Corp Circle K Corp 983.0 30.81
06/13/96 02/16/96 Marriott International Inc Forum Group Inc 622.3 13.00
07/01/96 02/23/96 Silicon Graphics Inc Cray Research Inc 770.0 30.00
09/16/96 02/26/96 Maxxim Medical Inc Sterile Concepts Inc 140.2 20.00
06/18/96 02/26/96 HS Resources Inc Tide West Oil Co 201.3 15.91
07/10/96 02/29/96 TBC Corp Big O Tires Inc 56.6 16.50
04/08/96 03/04/96 Lilly Industries Inc Guardsman Products Inc 227.8 23.00
09/27/96 03/13/96 Keystone Consolidated Inds Inc DeSoto Inc 36.1 7.65
10/31/96 03/20/96 Mercantile Bancorp,St Louis,MO Todays Bancorp Inc 88.8 31.81
10/04/96 03/26/96 Camco Financial,Cambridge,OH First Ashland Financial Corp 29.0 20.58
08/01/96 03/28/96 Koninklijke Ahold NV Stop & Shop Cos 2870.8 33.50
07/02/96 03/29/96 Motor Wheel Corp Hayes Wheels International Inc 563.8 32.00
10/21/96 03/29/96 ISB Financial,New Iberia,LA Jefferson Bancorp,Gretna,LA 52.0 23.00
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
PRIOR TO PRIOR TO
ANN. DATE ANN. DATE
--------- ---------
<S> <C>
57.14 49.15
7.42 8.19
16.67 16.67
45.46 45.46
43.42 58.92
43.89 49.03
35.75 34.37
78.98 78.98
51.16 44.44
70.63 73.00
79.49 62.79
25.00 41.79
82.28 69.41
50.00 68.12
15.69 28.26
18.40 5.71
44.00 39.81
30.23 71.78
24.14 35.85
21.48 49.09
42.47 68.82
8.33 44.44
21.21 20.60
60.00 55.34
44.64 51.52
7.32 12.82
32.37 57.27
53.00 80.00
23.53 31.18
28.61 34.93
27.01 45.65
33.33 43.02
16.46 18.71
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 50
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF PRICE
DATE DATE TRANSACTION PER
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE
--------- --------- ------------------------------ ------------------------------ -------- ------
<S> <C> <C> <C> <C> <C>
08/07/96 03/29/96 Abbott Laboratories MediSense Inc 821.6 45.00
07/19/96 04/01/96 Aetna Life & Casualty Co US Healthcare Inc 8939.0 57.00
10/15/96 04/10/96 Toronto-Dominion Bank Waterhouse Investor Services 526.0 38.00
06/04/96 04/22/96 El Paso Field Svcs(El Paso) Cornerstone Natural Gas Co 96.6 6.00
07/18/96 04/22/96 Reynolds & Reynolds Co Duplex Products Inc 90.1 12.00
09/30/96 04/22/96 Pinnacle Banc Grp,Oak Brook,IL Financial Security,Chicago,IL 42.6 28.50
07/10/96 04/22/96 Cisco Systems Inc StrataCom Inc 4833.5 57.50
06/03/96 04/22/96 K-III Communications Corp Westcott Communications Inc 438.9 21.50
10/21/96 04/23/96 Security Banc Corp,OH Third Financial Corp,Piqua,OH 43.9 33.41
10/01/96 04/25/96 Investor Group Sterling Chemicals Inc 798.4 12.00
10/14/96 04/29/96 Fidelity Financial of Ohio Inc Circle Finl,Sharonville,Ohio 27.8 38.00
09/03/96 04/29/96 Hubco Inc,Mahwah,New Jersey Hometown Bancorporation Inc,CT 31.9 17.75
03/27/97 04/29/96 Provident Cos Paul Revere Corp(Textron Inc) 1171.1 26.00
08/14/96 05/07/96 Tiger Real Estate Fund LP Kahler Realty Corp 222.7 17.00
10/01/96 05/10/96 HF Bancorp Inc,Hemet,CA Palm Springs Savings Bank, CA 17.3 14.38
08/30/96 05/13/96 Getinge Industrier AB MDT Corp 70.3 5.50
11/15/96 05/16/96 Metrocall Inc A+ Network Inc 345.1 21.10
07/23/96 05/20/96 General Electric Capital Svcs AmeriData Technologies Inc 454.8 16.00
08/29/96 05/20/96 Finova Group Inc Financing for Science Intl Inc 39.2 6.40
09/30/96 05/23/96 Luther Burbank Savings,CA NHS Financial,San Rafael,CA 29.6 11.50
09/04/96 05/24/96 Joint Energy Dvlp Investments Clinton Gas Systems Inc 38.4 6.75
07/02/96 05/24/96 Lear Corp Masland Corp 413.5 26.00
01/28/97 05/29/96 Regions Finl,Birmingham,AL Florida First Bancorp Inc,FL 40.9 11.65
10/01/96 06/06/96 Investor Group AT&T Capital Corp(AT&T Corp) 2128.6 45.00
12/09/96 06/06/96 Greater Bay Bancorp Cupertino National Bancorp,CA 27.7 13.79
08/23/96 06/10/96 Vemco Acquisition Corp Bailey Corp 47.8 8.75
07/22/96 06/10/96 Merck-Medco Managed Care Inc SysteMed Inc 64.8 3.00
07/23/96 06/11/96 Forstmann Little & Co Community Health Systems Inc 1080.0 52.00
11/07/96 06/13/96 Citizens Financial Group,RI Farmers & Mechanics Bank,CT 52.9 32.00
11/14/96 06/14/96 Western Ohio Financial Corp Seven Hills Financial 11.0 19.70
09/16/96 06/20/96 Public Storage Inc Public Storage Properties X 50.2 20.92
09/16/96 06/20/96 Public Storage Inc Public Storage Properties XII 55.2 22.34
08/23/96 06/21/96 United Communications Group Computer Petroleum Corp 12.0 3.85
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
PRIOR TO PRIOR TO
ANN. DATE ANN. DATE
--------- ---------
<S> <C>
48.76 39.00
21.28 18.75
19.69 65.22
29.73 100.00
28.86 36.17
15.15 10.15
59.72 79.69
57.80 56.36
13.74 14.22
47.69 47.69
38.18 43.40
29.09 29.09
5.58 8.90
13.33 9.68
43.75 43.75
22.22 4.76
40.67 63.88
25.49 47.13
6.67 12.53
17.95 21.05
14.89 31.71
18.18 30.00
19.49 33.14
38.46 42.29
20.83 23.03
6.06 11.11
4.35 9.09
19.89 18.86
62.03 62.03
19.38 19.38
13.08 10.83
14.56 15.30
46.67 71.11
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 51
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF PRICE
DATE DATE TRANSACTION PER
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE
--------- --------- ------------------------------ ------------------------------ -------- ------
<S> <C> <C> <C> <C> <C>
12/05/96 06/24/96 Renaissance Cosmetics Inc MEM Co Inc 38.2 7.50
11/01/96 06/24/96 First Banks America Inc Sunrise Bancorp,Roseville,CA 18.7 4.00
02/21/97 06/27/96 Northwest Svgs Bk,Warren,PA Bridgeville Savings Bank 18.3 16.00
10/02/96 06/28/96 General Re Corp National Re Corp 904.6 53.00
09/27/96 06/28/96 Investor Group Salem Corp 46.6 25.00
09/25/96 07/01/96 Rockwell International Corp Brooktree Corp 261.8 15.00
03/25/97 07/01/96 Tribune Co Renaissance Commun Corp 1094.4 36.00
08/08/96 07/02/96 Beacon Group Energy Investment Ambar Inc 66.6 18.00
10/10/96 07/12/96 Astor Chemicals ADCO Technologies Inc 53.8 10.25
03/01/97 07/15/96 FBOP Corp,Oak Park,Illinois SDNB Finl Corp, San Diego,CA 25.8 8.00
08/27/97 07/19/96 Huntsman Corp Rexene Corp 606.8 16.00
10/25/96 07/22/96 Cisco Systems Inc Telebit Corp 196.3 13.35
02/19/97 07/23/96 Capstar Broadcasting Partners Osborn Communications Corp 89.9 15.38
01/03/97 07/29/96 First Nationwide Bank,CA Cal Fed Bancorp,Los Angeles,CA 1287.8 23.50
11/29/96 08/02/96 General Electric Capital Corp First Colony Corp 1799.2 36.15
04/07/97 08/05/96 American Radio Systems Corp EZ Communications Inc 687.3 47.30
02/14/97 08/05/96 PacifiCare Health Systems Inc FHP International Corp 2000.1 33.27
10/03/96 08/07/96 Magna International Inc Douglas & Lomason Co 134.6 31.00
08/06/97 08/09/96 Houston Industries Inc NorAm Energy Corp 3648.8 16.12
11/25/96 08/14/96 Muenchener Rueckversicherungs American Re Corp 3967.8 65.00
11/07/96 08/14/96 OSI Holdings Corp Payco American Corp 161.9 14.00
09/26/96 08/15/96 Sears Roebuck & Co Orchard Supply Hardware Stores 423.7 35.00
09/20/96 08/19/96 Commonwealth Aluminum Corp CasTech Aluminum Group Inc 328.7 20.50
12/17/96 08/26/96 Conseco Inc American Travellers Corp 868.3 36.91
03/04/97 08/26/96 Conseco Inc Capitol American Financial 715.5 37.71
01/09/97 08/26/96 Columbus McKinnon Corp Spreckels Industries Inc 259.4 24.00
11/08/96 08/28/96 Doubletree Corp Red Lions Hotels(Red Lion Inn) 1174.1 30.38
11/14/96 08/29/96 Cypress Group LLC Amtrol Inc 227.2 28.25
01/06/97 08/30/96 NationsBank Corp,Charlotte,NC Boatmen's Bancshares,St Louis 9667.1 60.27
03/06/97 09/02/96 Potash Corp of Saskatchewan Arcadian Corp 1723.3 25.71
12/23/96 09/09/96 Revco DS Inc Big B Inc(Revco DS Inc) 335.4 17.25
01/03/97 09/10/96 Louisiana-Pacific Corp GreenStone Industries Inc 29.2 5.25
03/04/97 09/11/96 American Eco Corp Chempower Inc 50.0 6.20
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
PRIOR TO PRIOR TO
ANN. DATE ANN. DATE
--------- ---------
<S> <C>
81.82 90.48
52.38 45.46
10.35 8.48
65.63 60.61
23.46 11.73
64.38 16.51
19.01 20.50
17.07 50.00
51.85 57.69
16.36 18.52
60.00 56.10
22.76 4.71
50.00 38.20
32.39 31.47
32.66 39.04
56.36 89.20
27.37 19.10
90.77 103.28
46.52 41.69
41.69 44.04
17.90 60.00
25.56 28.44
57.69 45.13
37.35 81.17
51.60 56.31
24.68 29.73
33.55 31.38
56.94 56.94
48.36 48.36
20.99 26.96
66.27 58.62
52.73 58.49
48.06 45.88
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 52
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF PRICE
DATE DATE TRANSACTION PER
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE
--------- --------- ------------------------------ ------------------------------ -------- ------
<S> <C> <C> <C> <C> <C>
06/30/97 09/12/96 Temple-Inland Financial Svcs California Financial Hldg,CA 146.5 30.00
03/31/97 09/16/96 Mutual Savings Bk,Milwaukee,WI First Fed Bancshares of Eau Cl 132.7 18.85
12/06/96 09/16/96 Schnitzer Steel Industries Inc Proler International Corp 42.5 9.00
04/03/97 09/16/96 PennFirst Bancorp,Ellwood,PA Troy Hill Bancorp,Pennsylvania 22.4 21.15
01/27/97 09/16/96 City National Bk,Beverly Hills Ventura County Natl Bancorp,CA 46.7 5.03
02/28/97 09/26/96 AH Belo Corp Providence Journal Co 1429.6 32.27
06/27/97 09/30/96 Texas Pacific Group Inc Belden & Blake Corp 405.7 27.00
02/28/97 09/30/96 Cullen/Frost Bankers Inc,Texas Corpus Christi Bancshares,TX 32.4 18.84
04/25/97 10/01/96 Prestige Fragrance & Cosmetics Cosmetic Center Inc 32.8 7.63
12/02/96 10/07/96 Computer Associates Intl Inc Cheyenne Software Inc 1247.6 30.50
11/22/96 10/08/96 Nash Finch Co Super Food Services Inc 164.2 15.50
06/03/97 10/15/96 Investor Group Conrail Inc 10435.9 115.00
12/23/96 10/15/96 Berkshire Hathaway Inc FlightSafety International 1518.1 50.00
01/27/97 10/16/96 City National Bk,Beverly Hills Riverside Natl Bk,Riverside,CA 42.8 18.00
02/27/97 10/17/96 Investor Group Triad Systems Corp 193.1 9.25
03/31/97 10/21/96 Investor Group Detroit & Canada Tunnel Corp 36.5 54.00
04/16/97 10/23/96 Thomas H Lee Equity Fund III Syratech Corp 304.4 32.00
07/01/97 10/31/96 Patriot American Hospitality California Jockey Club/Bay 199.7 33.00
12/18/96 10/31/96 Food Lion Inc Kash N' Karry Food Stores Inc 347.1 26.00
02/27/97 11/04/96 JC Penney Co Eckerd Corp 3298.5 35.00
03/05/97 11/04/96 Citizens Bank of Massachusetts Grove Banks,Chesnut Hill,MA 78.7 51.00
05/19/97 11/04/96 Glendale Fed Bk,Glendale,CA TransWorld Bancorp,California 63.2 18.25
03/14/97 11/05/96 Harbour Group Ltd Panatech Research&Development 29.2 7.00
06/13/97 11/07/96 Shoreline Financial Corp,MI SJS Bancorp Inc,St Joseph,MI 26.5 27.00
06/12/97 11/12/96 Investor Group Leslie's Poolmart 112.8 14.50
12/17/96 11/13/96 IBM Corp Edmark Corp 123.8 15.50
01/20/97 11/13/96 FCY Inc Medex Inc 150.6 23.50
06/27/97 11/14/96 Vermont Financial Services,VT Eastern Bancorp,Williston,VT 91.9 24.23
01/15/97 11/15/96 Mountasia Entertainment Mountasia Entertainment 98.2 3.50
01/02/97 11/18/96 Intermet Corp Sudbury Inc 155.4 12.50
05/01/97 11/22/96 ABN-AMRO Holding NV Standard Fed Bancorp,Troy,MI 1971.1 59.00
02/28/97 11/25/96 PCA International Inc American Studios Inc 66.3 2.50
01/09/97 11/25/96 Applied Materials Inc Opal Inc 189.6 18.50
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
PRIOR TO PRIOR TO
ANN. DATE ANN. DATE
--------- ---------
<S> <C>
31.87 31.15
25.67 25.67
125.00 148.28
55.23 52.43
43.71 38.76
64.43 65.49
27.81 31.71
17.75 17.75
45.33 103.47
34.81 30.48
36.26 29.17
60.28 60.28
10.80 10.80
2.86 29.73
60.87 89.74
74.19 54.29
28.00 29.29
88.57 103.08
33.33 6.67
28.44 29.63
46.76 50.00
12.31 30.36
55.56 51.35
13.68 24.14
31.82 31.82
63.16 31.92
57.98 66.74
4.22 16.77
12.00 40.00
25.00 9.89
6.79 15.40
110.53 166.67
64.44 105.56
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 53
INVESTMENT BANKING GROUP
UNITED, FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF PRICE
DATE DATE TRANSACTION PER
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE
--------- --------- ------------------------------ ------------------------------ -------- ------
<S> <C> <C> <C> <C> <C>
12/30/96 11/26/96 Clorox Co Armor All Products(McKesson) 410.1 19.09
01/16/97 11/27/96 Bell Industries Inc Milgray Electronics Inc 100.0 14.77
04/30/97 11/29/96 CityFront Center LLC Chicago Dock and Canal Trust 177.9 25.00
01/06/97 11/29/96 Tyco International Ltd ElectroStar Inc 111.0 14.00
01/30/97 12/02/96 Venator Group Inc Eastbay Inc 146.0 24.00
05/01/97 12/03/96 Dime Bancorp Inc,New York,NY BFS Bankorp Inc,New York,NY 91.5 52.00
02/26/97 12/05/96 ServiceMaster LP Barefoot Inc 230.9 16.00
04/11/97 12/05/96 Public Storage Inc Public Storage Properties XIV 82.4 26.00
04/11/97 12/05/96 Public Storage Inc Public Storage Properties XV 79.1 26.00
01/10/97 12/05/96 Hadco Corp Zycon Corp 211.7 18.00
02/21/97 12/11/96 Aon Corp Alexander & Alexander Services 1227.4 17.50
01/27/97 12/16/96 Zurn Industries Inc Eljer Industries Inc 175.6 24.00
01/27/97 12/16/96 Millipore Corp Tylan General Inc 147.7 16.00
03/25/97 12/19/96 NIPSCO Industries Inc IWC Resources Corp 290.6 32.00
07/01/97 12/23/96 Mercantile Bancorp,St Louis,MO Roosevelt Finl Group,Missouri 1187.1 24.43
04/16/97 12/24/96 American General Corp Home Beneficial Corp 665.1 39.00
06/09/97 12/26/96 Commerce Security Bancorp,CA Eldorado Bancorp,Tustin,CA 91.7 23.00
05/01/97 12/27/96 US Bancorp,Portland,Oregon Business & Professional Bk,CA 33.5 18.00
02/25/97 01/07/97 MedTrans Inc(Laidlaw Inc) American Medical Response Inc 1011.1 40.00
02/10/97 01/07/97 DLB Oil & Gas Inc Bonray Drilling Corp 12.7 30.00
04/24/97 01/17/97 AMF Bowling Centers(AMF Group) American Recreation Centers 70.7 8.50
07/08/97 01/21/97 First Maryland Bancorp,MD Dauphin Deposit Corp,PA 1343.4 46.93
03/05/97 01/22/97 Western Atlas Inc Norand Corp 320.8 33.50
07/02/97 01/24/97 American Standard Inc INCSTAR Corp(Sorin Biomedical) 106.3 6.32
07/24/97 01/27/97 EndoSonics Corp Cardiometrics Inc 56.8 7.54
03/07/97 01/27/97 Honeywell Inc Measurex Corp 597.0 35.00
03/10/97 02/03/97 Scotsman Industries Inc Kysor Industrial Corp 359.2 43.00
03/31/97 02/10/97 Vencor Inc TheraTx Inc 378.2 17.10
03/24/97 02/11/97 Johnson & Johnson Innotech Inc 135.6 13.75
09/17/97 02/14/97 Greenwich Air Services Inc UNC Inc 442.7 15.00
06/27/97 02/18/97 NGC Corp Destec Energy Inc 1222.4 21.65
08/06/97 02/19/97 United Bankshares Inc,WV First Patriot Bankshares,VA 35.4 17.00
07/07/97 02/25/97 Pacific Century Financial Corp CU Bancorp,Encino,California 178.4 15.34
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
PRIOR TO PRIOR TO
ANN. DATE ANN. DATE
--------- ---------
<S> <C>
13.97 13.97
16.99 20.57
22.70 22.70
27.27 16.67
28.00 23.08
16.85 22.35
28.00 42.22
30.82 31.65
28.40 32.48
46.94 94.60
8.53 9.38
84.62 90.10
26.73 26.73
39.13 45.46
32.05 26.09
39.29 50.00
14.29 12.88
20.00 30.91
23.08 36.75
11.11 30.44
33.33 70.00
43.28 48.97
87.41 94.20
53.21 68.53
13.81 47.12
42.13 45.83
17.01 24.64
35.45 59.07
64.18 54.93
41.18 36.36
80.42 63.40
9.68 4.62
18.00 25.22
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 54
<TABLE>
<CAPTION>
VALUE OF PRICE
DATE DATE TRANSACTION PER
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE
--------- --------- ------------------------------ ------------------------------ -------- ------
<S> <C> <C> <C> <C> <C>
07/21/97 02/26/97 MassBank Corp,Reading,MA Glendale Co-Operative Bank,MA 6.9 28.00
08/01/97 02/28/97 CIGNA Corp Healthsource Inc 1652.7 21.75
06/27/97 03/04/97 Ultimate Electronics Inc Audio King Corp 6.0 2.10
08/13/97 03/06/97 Fireman's Fund Insurance Co Crop Growers Corp 82.1 10.25
09/02/97 03/10/97 General Electric Co Greenwich Air Services Inc 519.2 31.00
04/15/97 03/11/97 PacifiCorp Holdings Inc TPC Corp 408.5 13.41
10/01/97 03/14/97 Marshall & Ilsley,Milwaukee,WI Security Capital,Milwaukee,WI 1115.8 111.06
09/04/97 03/17/97 TCF Finl Corp,Minneapolis,MN Standard Financial,Chicago,IL 428.0 25.81
06/17/97 03/20/97 InvestCorp Falcon Building Products Inc 584.5 17.75
06/12/97 03/21/97 Olicom A/S CrossComm Corp 84.6 8.93
04/28/97 03/24/97 Elsevier Science MDL Information Systems 310.7 32.00
05/07/97 03/25/97 IBP Inc (Occidental Petroleum) Foodbrands America Inc 657.5 23.40
09/03/97 03/26/97 Hearst Broadcasting Group Argyle Television Inc 322.2 26.50
08/01/97 03/26/97 Deposit Guaranty,Jackson,MS CitiSave Finl,Baton Rouge,LA 20.3 20.50
10/01/97 03/31/97 Astoria Finl,Lake Success,NY Greater NY Svgs Bk,New York,NY 318.1 25.16
06/03/97 03/31/97 Moore Corp Ltd Peak Technologies Group Inc 169.8 18.00
08/28/97 04/08/97 Citizens Financial Group,RI BNH Bancshares,New Haven,CT 58.0 15.50
06/12/97 04/08/97 Jacor Communications Inc Premiere Radio Networks Inc 208.9 18.78
06/24/97 04/09/97 Public Storage Inc Public Storage Properties XVI 84.2 20.01
06/24/97 04/09/97 Public Storage Inc Public Storage Ppties XVIII 78.6 19.55
06/24/97 04/09/97 Public Storage Inc Public Storage Properties XIX 67.9 16.52
05/13/97 04/09/97 Tomkins PLC Stant Corp 574.0 21.50
07/21/97 04/09/97 Procter & Gamble Co Tambrands Inc 2003.9 50.00
06/13/97 04/10/97 Hedstrom Corp(Hedstrom Hldgs) ERO Inc 203.6 11.25
06/26/97 04/10/97 Compaq Computer Corp Microcom Inc 267.6 16.25
11/12/97 04/14/97 Neptune Orient Lines Ltd APL Ltd 878.5 33.50
01/05/98 04/14/97 Patriot Amer Hosp/Wyndham Intl Wyndham Hotel Corp 773.1 30.53
06/30/97 04/15/97 Lernout & Hauspie Speech Kurzweil Applied Intelligence 51.3 5.52
07/10/97 04/18/97 Investor Group LIVE Entertainment Inc 53.1 6.00
05/28/97 04/21/97 ITT Industries Inc Goulds Pumps Inc 922.1 37.00
06/10/97 04/21/97 Harcourt General Inc National Education Corp 776.1 21.00
09/04/97 04/22/97 Fox Kids Worldwide Inc International Family Ent Inc 1862.9 35.00
12/12/97 04/25/97 Peoples Bancorp,Marietta,OH Gateway Bancorp,KY 20.6 18.75
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
PRIOR TO PRIOR TO
ANN. DATE ANN. DATE
- --------- ---------
<S> <C>
33.33 40.00
32.82 64.15
68.00 68.00
15.49 41.38
33.33 34.78
65.05 55.48
32.61 39.92
28.25 24.76
49.47 52.69
70.17 70.17
43.82 54.22
50.97 61.38
16.48 14.60
50.46 46.43
56.01 62.30
97.26 65.52
26.53 19.23
19.23 19.23
5.32 2.62
7.12 2.90
3.25 3.25
48.28 49.57
14.94 14.94
16.88 30.44
91.18 35.42
65.43 42.55
44.52 48.93
69.69 66.49
6.67 50.00
57.45 60.87
54.13 40.00
95.80 107.41
15.39 25.00
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 55
<TABLE>
<CAPTION>
VALUE OF PRICE
DATE DATE TRANSACTION PER
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE
--------- --------- ------------------------------ ------------------------------ -------- ------
<S> <C> <C> <C> <C> <C>
10/01/97 05/01/97 Area Bancshares Corp,Kentucky Cardinal Bancshares,Kentucky 96.0 60.26
08/01/97 05/01/97 Chart Industries Inc Cryenco Sciences Inc 19.2 2.75
07/30/97 05/01/97 Choucroute Partners David White Inc 5.9 12.00
08/19/97 05/05/97 Giant Eagle Inc Riser Foods Inc 468.5 42.00
06/13/97 05/05/97 Incentive AB Vivra Inc 1660.5 35.62
08/15/97 05/06/97 GTE Corp BBN Corp 713.8 29.00
01/05/98 05/06/97 Foundation Health Systems Inc Physicians Health Services Inc 268.2 28.25
07/25/97 05/06/97 Riddell Sports Inc Varsity Spirit 91.0 18.90
06/03/98 05/07/97 Unitrin Inc Reliable Life Insurance Co 261.1 120.13
09/10/97 05/08/97 Nicolet Biomedical Inc Imex Medical Systems Inc 9.3 1.35
11/04/97 05/08/97 Apollo Management LP Living Centers of America Inc 1048.2 40.50
10/16/97 05/12/97 CTS Corp Dynamics Corp of America 244.6 64.08
08/14/97 05/21/97 Oxford Automotive Inc Howell Industries Inc 23.0 37.00
10/06/97 05/23/97 Price Communications Corp Palmer Wireless Inc 870.4 17.50
08/08/97 05/27/97 Columbia Natural Resources Inc Alamco Inc 102.8 15.75
07/03/97 05/28/97 Owens Corning Fibreboard Corp 631.2 55.00
07/09/97 05/30/97 Whitehall Street Real Estate Integrated Living Communities 79.7 11.50
10/16/97 05/30/97 Colonnade Capital LLC National Picture and Frame Co 60.3 12.00
09/08/97 06/03/97 Humana Inc Physician Corp of America 405.1 7.00
07/14/97 06/05/97 Intermedia Communications Inc DIGEX Inc 171.6 13.00
10/14/97 06/06/97 Excel Communications Inc Telco Communications Group Inc 1046.5 29.24
10/01/97 06/09/97 SAFECO Corp American States Financial Corp 3127.1 47.00
07/15/97 06/09/97 Atlas Copco North America Inc Prime Service Inc 1112.0 32.00
10/01/97 06/12/97 Thyssen AG Giddings & Lewis Inc 703.0 21.00
08/29/97 06/16/97 United Dominion Industries Ltd Core Industries Inc 275.2 25.00
09/30/97 06/16/97 Investor Group Frederick's of Hollywood, Inc. 69.4 7.75
10/10/97 06/16/97 Genesis Eldercare Multicare Cos Inc 1249.1 28.00
07/24/97 06/17/97 Monterey Resources Inc McFarland Energy Inc 111.2 18.55
07/25/97 06/17/97 CCL Industries Inc Seda Specialty Packaging Corp 182.6 29.00
08/15/97 06/19/97 Gateway 2000 Inc Advanced Logic Research Inc 206.8 15.50
11/13/97 06/23/97 Crestar Finl Corp,Richmond,VA American National Bancorp,MD 75.2 20.32
10/17/97 06/23/97 General Motors Acceptance(GM) Integon Corp 517.1 26.00
10/14/97 06/24/97 Louis Dreyfus Natural Gas American Exploration Co 275.5 15.96
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
PRIOR TO PRIOR TO
ANN. DATE ANN. DATE
--------- ---------
<S> <C>
33.91 31.00
76.00 72.55
14.29 18.52
29.23 26.79
41.77 35.70
32.57 64.54
26.97 51.68
28.14 23.93
51.11 52.06
2.76 2.76
22.73 41.49
94.17 112.70
30.40 32.14
55.56 64.71
11.50 16.67
22.22 49.66
21.05 50.82
28.00 28.00
12.00 23.08
35.95 31.65
23.77 26.44
48.62 57.32
29.95 31.28
9.80 0.60
37.93 49.25
44.47 25.95
13.71 34.94
41.33 44.78
36.47 52.63
30.53 34.78
33.21 36.57
92.59 74.79
15.03 21.60
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 56
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF PRICE
DATE DATE TRANSACTION PER
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE
--------- --------- ------------------------------ ------------------------------ -------- ------
<S> <C> <C> <C> <C> <C>
07/25/97 06/24/97 JW Childs Equity Partners LP Jillians Entertainment Corp 4.7 0.50
09/29/97 06/24/97 Three Rivers Holding Corp SMT Health Services Inc 75.6 11.75
10/09/97 06/30/97 Eaton Corp Fusion Systems Corp 308.6 39.00
12/18/97 07/01/97 HMN Financial,Spring Valley,MN Marshalltown Financial Corp,IA 25.9 17.51
09/23/97 07/02/97 Bunzl PLC American Filtrona Corp 183.5 46.52
10/28/97 07/02/97 Summa Industries Inc Calnetics Corp 23.4 7.35
09/26/97 07/03/97 Port Royal Holdings Inc Krystal Co 145.4 14.50
08/06/97 07/03/97 Raab Karcher AG(VEBA AG) Wyle Electronics 633.0 50.00
10/24/97 07/08/97 ING Groep NV Equitable of Iowa Cos 2626.4 68.00
09/23/97 07/09/97 CDSI Holding Corp Control Data Systems Inc 273.9 20.25
10/28/97 07/14/97 Investor Group Katz Media Group 371.9 11.00
09/04/97 07/15/97 Nortek Inc Ply-Gem Industries Inc 476.3 19.50
09/29/97 07/17/97 Lucent Technologies Inc Octel Communications Corp 1824.8 31.00
12/02/97 07/23/97 Benihana Inc Rudy's Restaurant Group 18.8 5.00
09/15/97 07/24/97 Mallinckrodt Inc Nellcor Puritan-Bennett 1858.4 28.50
02/02/98 07/28/97 Intel Corp Chips and Technologies Inc 422.9 17.50
10/08/97 07/28/97 Sun Healthcare Group Inc Regency Health Services Inc 587.9 22.00
09/24/97 07/31/97 American Industrial Partners Bucyrus International Inc 193.3 18.00
01/27/98 07/31/97 Western Bancorp,California Santa Monica Bank 198.2 28.00
09/26/97 08/01/97 Integrated Health Services Inc Community Care of America Inc 94.0 4.00
12/02/97 08/07/97 SPS Technologies Inc Magnetic Technologies Corp 16.8 5.00
12/22/97 08/08/97 USF&G Corp Titan Holdings Inc 278.1 22.47
12/19/97 08/11/97 Confetti Acquisition Inc Amscan Holdings Inc 334.9 16.50
09/17/97 08/12/97 Steris Corp Isomedix Inc 139.8 20.50
03/03/98 08/12/97 Hicks Muse Tate & Furst Inc LIN Television Corp 1960.6 55.00
09/24/97 08/14/97 MedPartners Inc Talbert Medical Management 189.0 63.00
12/29/97 08/14/97 Madison Dearborn Partners Tuesday Morning Corp 298.6 25.00
12/05/97 08/14/97 Comforce Corp Uniforce Services Inc 140.7 32.24
10/21/97 08/25/97 Household International Inc ACC Consumer Finance Corp 186.9 21.39
10/03/97 08/25/97 Cambrex Corp BioWhittaker Inc 130.5 11.63
12/22/97 08/26/97 Imperial Holly Corp Savannah Foods & Industries 582.9 20.25
02/25/98 08/28/97 Wellsford Real Properties Inc Value Property Trust 186.6 16.17
10/10/97 08/28/97 Applied Power Inc Versa Technologies Inc 141.9 24.63
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
PRIOR TO PRIOR TO
ANN. DATE ANN. DATE
--------- ---------
<S> <C>
77.78 45.46
2.17 8.05
9.86 24.30
12.97 16.73
2.24 3.38
33.64 25.11
169.77 176.19
38.41 35.14
20.35 21.70
30.65 35.00
69.23 93.41
16.42 19.08
37.40 41.31
70.21 72.04
43.40 57.24
32.08 68.68
50.43 43.09
46.94 71.43
17.59 28.74
18.52 88.24
25.00 33.33
19.06 24.85
37.50 46.67
15.49 13.89
18.75 18.01
18.87 36.96
25.79 11.11
37.56 52.62
34.75 29.64
38.87 47.68
14.89 17.39
20.90 18.68
33.11 31.33
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 57
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF PRICE
DATE DATE TRANSACTION PER
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE
--------- --------- ------------------------------ ------------------------------ -------- ------
<S> <C> <C> <C> <C> <C>
01/09/98 09/04/97 Tyson Foods Inc Hudson Foods Inc 648.4 21.23
11/26/97 09/05/97 Misys PLC Medic Computer Systems Inc 915.8 35.00
12/22/97 09/11/97 Pillowtex Corp Fieldcrest Cannon Inc 768.2 34.00
12/09/97 09/12/97 Tivoli Systems Inc(IBM Corp) Unison Software Inc 183.0 15.00
02/06/98 09/15/97 Star Banc Corp,Cincinnati,OH Great Financial Corp,Kentucky 663.5 44.00
01/16/98 09/19/97 Marshall Industries Sterling Electronics Corp 217.6 21.00
12/05/97 09/22/97 Conseco Inc Washington National Corp 424.0 33.25
01/22/98 09/23/97 Investor Group El Chico Restaurants Inc 49.2 12.75
01/12/98 09/23/97 Shell Oil(Royal Dutch Petro) Tejas Gas Corp 2165.6 61.50
11/24/97 09/24/97 Ligand Pharmaceuticals Inc Allergan Ligand Retinoid 71.4 21.97
02/19/98 09/25/97 Carpenter Technology Corp Talley Industries Inc 309.4 12.00
12/22/97 09/29/97 Wallace Computer Services Inc Graphic Industries Inc 424.5 21.75
11/26/97 09/30/97 AHC Acquisition Corp Arbor Health Care Co 424.2 45.00
12/05/97 10/01/97 Land O' Lakes Inc Alpine Lace Brands Inc 48.4 9.13
12/23/97 10/09/97 Borden Chemical Inc(Borden) Melamine Chemicals Inc 119.7 20.50
11/19/97 10/10/97 Kennametal Inc Greenfield Industries Inc 957.0 38.00
11/21/97 10/15/97 FinishMaster Inc(Lacey Distn) Thompson PBE Inc 69.3 8.00
02/12/98 10/16/97 Hartford Financial Services Omni Insurance Group Inc 184.7 31.75
12/29/97 10/17/97 Emerson Electric Co Computational Systems Inc 158.6 29.65
11/19/97 10/17/97 BTR PLC Exide Electronics Group Inc 583.2 29.00
03/31/98 10/17/97 First Federal Savings,Iowa GFS Bancorp Inc,Grinnell,IA 17.9 17.65
02/24/98 10/20/97 Starwood Hotels & Resorts ITT Corp 13748.2 85.00
03/06/98 10/20/97 Kinder Morgan Energy Partners Santa Fe Pacific Pipeline 1473.0 54.21
01/07/98 10/21/97 Berkshire Hathaway Inc International Dairy Queen Inc 596.9 27.00
02/27/98 10/23/97 Eastern Bank Corp,Lynn,MA Emerald Isle Bancorp,Quincy,MA 76.6 33.00
02/10/98 10/27/97 National Australia Bank Ltd HomeSide Inc 1230.1 27.83
04/01/98 10/28/97 First Empire State Corp,NY ONBANCorp Inc,Syracuse,NY 893.0 69.50
05/22/98 11/03/97 FirstMerit Corp CoBancorp Inc 157.3 44.50
03/03/98 11/12/97 Tekni-Plex Inc PureTec Corp 324.6 3.50
03/25/98 11/13/97 Investor Group Chartwell Leisure Inc 240.8 17.25
01/08/98 11/18/97 Cendant Corp Jackson Hewitt 468.2 68.00
02/27/98 11/19/97 Texas Instruments Inc Amati Communications Corp 459.8 20.00
01/28/98 11/21/97 TRW Inc BDM International Inc 888.0 29.50
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
PRIOR TO PRIOR TO
ANN. DATE ANN. DATE
--------- ---------
<S> <C>
31.63 28.64
12.00 25.00
8.58 31.72
25.00 22.45
23.51 33.84
30.23 57.01
4.11 12.24
75.86 104.00
22.39 33.70
11.59 7.83
10.98 34.27
19.18 34.88
19.60 26.76
48.98 46.00
72.63 70.83
26.67 44.08
33.33 42.22
75.78 130.91
48.25 62.47
133.17 149.46
7.38 13.87
98.25 95.40
33.24 38.56
9.09 9.37
28.78 33.33
12.14 7.28
12.89 21.40
30.88 52.14
34.94 31.77
4.55 11.29
21.70 47.83
44.14 13.48
43.47 38.01
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 58
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF PRICE
DATE DATE TRANSACTION PER
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE
--------- --------- ------------------------------ ------------------------------ -------- ------
<S> <C> <C> <C> <C> <C>
01/20/98 11/21/97 Co-Steel Inc New Jersey Steel(Von Roll) 173.5 23.00
02/03/98 11/24/97 Davel Communications Group Inc Communications Central Inc 102.4 10.50
01/07/98 11/24/97 Cypress Group LLC General Host Corp 326.2 5.50
02/25/98 11/26/97 Investor Group Universal Hospital Services 133.0 15.50
12/30/97 11/28/97 Lund International Holdings Deflecta-Shield Corp 89.8 16.00
06/02/98 12/02/97 Patriot Amer Hosp/Wyndham Intl Interstate Hotels Co 2055.9 37.50
02/13/98 12/12/97 Voith Sulzer Paper Technology Impact Systems Inc 28.6 2.75
05/29/98 12/12/97 Bethlehem Steel Corp Lukens Inc 700.2 30.00
05/01/98 12/15/97 US Bancorp,Minneapolis,MN Piper Jaffray Cos 767.8 37.25
01/30/98 12/16/97 SulzerMedica(Gebrueder Sulzer) Spine-Tech Inc 621.1 52.00
01/23/98 12/17/97 InvaCare Corporation Suburban Ostomy Supply Co Inc 130.8 11.75
06/17/98 12/19/97 Harsco Corp Chemi-Trol Chemical Co 46.1 23.00
05/20/98 12/22/97 MDC Communications Corp Artistic Greetings Inc 33.6 5.70
04/01/98 12/23/97 Outsourcing Solutions Inc Union Corp 193.0 31.50
07/06/98 12/30/97 Pacific Bank NA,CA Sterling West Bancorp,CA 12.2 7.11
07/17/98 01/05/98 Meditrust Acquisition Co La Quinta Inns Inc 2907.5 26.00
04/01/98 01/06/98 Oakwood Homes Corp Schult Homes Corp 101.4 22.50
02/19/98 01/12/98 Research Institute of America Computer Language Research Inc 325.4 22.50
07/31/98 01/13/98 CertainTeed Corp Bird Corp 39.2 5.50
06/02/98 01/14/98 EastGroup Properties Meridian Point Realty Trust 51.7 8.50
10/05/98 01/20/98 Albertson's Inc Buttrey Food and Drug Stores 139.2 15.50
05/27/98 01/20/98 Investor Group Regal Cinemas Inc 1462.7 31.00
05/15/98 01/21/98 Microsemi Corp BKC Semiconductors Inc 13.3 9.17
06/11/98 01/26/98 Compaq Computer Corp Digital Equipment Corp 9123.7 60.00
03/03/98 01/27/98 Sage Group PLC State of the Art Inc 245.2 22.00
03/05/98 01/28/98 Kerr Group Inc Sun Coast Industries Inc 45.5 10.75
06/05/98 01/29/98 US Aggregates Inc Monroc Inc 50.3 10.77
05/21/98 01/29/98 AmeriServe Food Distn Inc ProSource Inc(Onex Corp) 343.3 15.00
06/18/98 02/09/98 USA Waste Services Inc American Waste Services 122.1 4.00
06/30/98 02/09/98 Banco Bilbao Vizcaya SA PonceBank 164.5 26.10
04/16/98 02/09/98 Fountain View(Heritage) Summit Care Corp 275.1 21.00
06/04/98 02/10/98 Canadian National Railway Co Illinois Central Corp 2931.0 39.00
06/10/98 02/11/98 Sombrero Acquisition Corp MTL Inc 250.1 40.00
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
PRIOR TO PRIOR TO
ANN. DATE ANN. DATE
--------- ---------
<S> <C>
170.59 166.67
25.37 12.00
62.96 79.59
29.17 25.25
33.33 77.78
8.70 27.39
49.15 44.26
94.33 69.61
24.17 54.01
52.94 55.81
13.25 13.25
61.40 64.29
47.10 52.00
13.51 23.53
35.43 23.65
35.95 35.95
10.43 19.21
62.16 69.81
18.92 29.41
65.85 88.89
44.19 47.62
10.71 34.78
59.48 66.73
50.25 62.45
35.39 35.39
62.26 84.95
10.46 6.37
106.90 100.00
156.00 166.67
14.10 25.78
31.25 37.71
20.00 18.86
38.53 56.10
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 59
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF PRICE
DATE DATE TRANSACTION PER
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE
--------- --------- ------------------------------ ------------------------------ -------- ------
<S> <C> <C> <C> <C> <C>
05/20/98 02/11/98 Wolters Kluwer NV Waverly Inc 375.6 39.00
08/17/98 02/17/98 HB Acquisition Corp Bell Sports Corp 165.7 10.25
05/27/98 02/17/98 Applied Graphics Technologies Devon Group Inc 474.4 60.08
10/15/98 02/19/98 Hollywood Park Inc Casino Magic Corp 344.8 2.27
04/06/98 02/24/98 Siebe PLC Wonderware Corp 362.7 24.00
08/17/98 03/02/98 El Paso Natural Gas Co DeepTech International 375.4 14.00
04/30/98 03/02/98 Sunbeam Corp First Alert Inc 129.2 5.25
04/30/98 03/02/98 Sunbeam Corp Signature Brands USA Inc 81.7 8.25
05/20/98 03/05/98 Xerox Corp Intelligent Electronics Inc 341.6 7.60
07/31/98 03/06/98 Aluminum Co of America{Alcoa} Alumax Inc 3944.2 49.39
04/30/98 03/06/98 ASK AS Proxima Corp 82.9 11.00
06/25/98 03/09/98 American Cellular Corp PriCellular Corp 1385.2 14.00
06/19/98 03/10/98 Communications Instruments Inc Corcom Inc 51.7 13.00
04/20/98 03/12/98 Great Universal Stores PLC Metromail Corp 837.9 34.50
07/31/98 03/13/98 Investor Group MedCath Inc 227.8 19.00
07/10/98 03/16/98 Abbott Laboratories International Murex Tech Corp 232.7 13.00
05/11/98 03/30/98 Knowledge Beginnings Inc Children's Discovery Centers 89.1 12.25
07/21/98 04/03/98 NE Restaurant Co Inc Bertucci's Inc 96.5 10.50
05/19/98 04/08/98 Huntsman Packaging Corp Blessings Corp 269.7 21.00
05/15/98 04/09/98 Richfood Holdings Inc Dart Group Corp 193.3 160.00
07/29/98 04/09/98 Camelot Music Holdings Spec's Music Inc 26.8 3.30
06/26/98 04/10/98 CompuCom SystemsInc(Safeguard) Dataflex Corp 25.2 4.10
05/29/98 04/15/98 Siebe PLC Simulation Sciences Inc 146.5 10.00
07/21/98 04/17/98 Sterling Commerce Inc XcelleNet Inc 214.3 22.02
08/25/98 04/21/98 Investor Group PCA International Inc 232.5 26.50
06/24/98 04/21/98 General Electric Co PLC Tracor Inc 1323.5 40.00
06/29/98 04/22/98 Evans & Sutherland Computer AccelGraphics Inc 55.9 5.75
07/31/98 04/23/98 Piccadilly Cafeterias Inc Morrison Restaurants Inc 46.2 5.00
08/30/98 04/27/98 Genesis Health Ventures Inc Vitalink Pharmacy Services Inc 678.4 22.50
06/01/98 04/27/98 Lucent Technologies Inc Yurie Systems Inc 1044.1 35.00
07/20/98 04/28/98 Snap-On Inc Hein-Werner Corp 37.5 12.60
06/10/98 05/04/98 Tropical Sportswear Intl Corp Farah Inc 93.6 9.00
06/29/98 05/04/98 ARCO Union Texas Petroleum Holdings 2741.4 29.00
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
PRIOR TO PRIOR TO
ANN. DATE ANN. DATE
--------- ---------
<S> <C>
50.73 50.73
13.10 8.61
32.03 37.91
32.07 32.07
59.34 79.44
9.80 15.46
90.91 110.00
60.98 106.25
19.22 34.37
33.26 36.25
25.71 23.94
16.67 16.06
31.65 36.84
28.37 30.19
10.95 34.51
38.21 50.73
16.67 25.64
35.48 35.48
18.31 34.94
11.89 19.40
65.00 65.00
9.33 23.77
16.79 11.11
12.55 7.73
17.78 20.46
16.79 25.00
22.67 21.05
73.91 81.82
12.15 6.51
17.40 49.73
65.25 80.00
44.00 39.81
46.84 36.47
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 60
INVESTMENT BANKING GROUP
UNITED FOODS, INC.
PREMIUM ANALYSIS
CASH PURCHASES ANNOUNCED SINCE 1/1/96
<TABLE>
<CAPTION>
VALUE OF PRICE
DATE DATE TRANSACTION PER
EFFECTIVE ANNOUNCED ACQUIROR NAME TARGET NAME ($ MIL) SHARE
--------- --------- ------------------------------ ------------------------------ -------- ------
<S> <C> <C> <C> <C> <C>
09/25/98 05/05/98 Investor Group Allied Digital Technologies Co 69.2 5.00
08/06/98 05/06/98 Fidelity & Deposit Co of MD Mountbatten Inc 43.4 14.60
06/15/98 05/08/98 Agrobios(Desc SA de CV) Authentic Specialty Foods Inc 141.9 17.00
07/14/98 05/11/98 Diamond Multimedia Systems Inc Micronics Computers Inc 31.7 2.45
06/26/98 05/13/98 Filtronic Comtek PLC Sage Laboratories Inc 20.2 17.50
08/19/98 05/18/98 Dillard's Inc Mercantile Stores Co Inc 2943.1 80.00
09/15/98 05/20/98 GE Medical Systems InnoServ Technologies 13.1 4.25
10/22/98 05/20/98 Licking Rural Electrification National Gas & Oil Co 93.0 13.00
07/22/98 05/22/98 Gambrinus Co Pete's Brewing Co 69.4 6.38
07/07/98 05/28/98 Bowne & Co Inc Donnelley Enterprise Solutions 105.2 21.00
08/28/98 06/01/98 US Xpress Enterprises Inc PST Vans Inc 83.9 7.47
07/21/98 06/12/98 Armstrong World Industries Inc Triangle Pacific Corp 1124.3 55.50
08/31/98 06/16/98 Linsalata Capital Partners Personnel Management Inc 34.9 16.00
09/08/98 06/17/98 Carlton Communications PLC Nimbus CD International Inc 264.9 11.50
07/28/98 06/18/98 Lyondell Petrochemical Co ARCO Chemical Co(ARCO) 5645.7 57.75
09/22/98 06/29/98 Key Energy Group Inc Dawson Production Services Inc 348.8 17.50
09/21/98 07/07/98 Investor Group Republic Engineered Steels 417.8 7.25
09/18/98 07/14/98 Henkel KGaA DEP Corp 89.7 5.25
09/02/98 07/17/98 DLJ Merchant Banking Inc DeCrane Aircraft Holdings Inc 181.5 23.00
10/06/98 07/20/98 SPX Corp General Signal Corp 2318.7 45.00
09/10/98 07/28/98 Network Associates Inc CyberMedia Inc 130.1 9.50
09/11/98 07/29/98 EBC Texas Acquisition Corp E-Z Serve Corp 43.2 0.60
10/15/98 07/30/98 Hercules Inc BetzDearborn Inc 3090.3 72.00
11/13/98 09/23/98 USFreightways Corp Golden Eagle Group Inc 30.2 4.45
11/30/98 10/21/98 Union Planters Bk Nat Assoc Capital Factors Holdings Inc 22.2 17.50
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PREMIUM
1 WEEK 4 WEEKS
PRIOR TO PRIOR TO
ANN. DATE ANN. DATE
--------- ---------
<S> <C>
14.29 37.93
6.18 4.29
13.33 37.37
15.29 50.77
34.62 35.92
9.59 15.42
32.04 41.67
18.18 26.06
39.73 42.66
61.54 83.61
35.82 10.67
26.50 24.02
23.08 23.08
5.75 10.84
12.27 3.36
50.54 66.67
68.12 45.00
95.35 78.72
28.67 33.82
22.66 19.40
38.18 117.14
20.00 20.00
94.60 73.49
184.80 223.64
8.95 2.94
</TABLE>
<TABLE>
<S> <C> <C>
- ------------------------------------------
Median 31.64 36.42
Average 37.02 43.16
Adj. Avg. 36.73 42.80
- ------------------------------------------
Below 20% 119 81
% Below 20% 30.7% 20.9%
</TABLE>
J.C. BRADFORD & CO.
<PAGE> 61
STOCK PRICE ANALYSIS
UNITED FOODS, INC.
DAILY PRICE & VOLUME TRADING STATISTICS SINCE 12/31/97
[GRAPHS]
27
<PAGE> 62
STOCK PRICE ANALYSIS
UNITED FOODS, INC. - CLASS A
Shares Traded at Various Prices From 12/5/97 to 12/7/98
<TABLE>
<CAPTION>
CUMULATIVE
-----------------------------------------------
DAYS % OF TOTAL % OF TOTAL DAYS % OF TOTAL % OF TOTAL
TRADING DAILY AVG. DAYS TRADING TRADING DAILY AVG. DAYS TRADING TRADING
RANGE (1) IN RANGE TRADED VOLUME VOLUME IN RANGE TRADED VOLUME VOLUME
- -------------------------------- ---------- ---------- ------- ---------- ---------- ---------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Less Than $2.25 0 0.0% -- 0.0% 0 0.0% -- 0.0%
$2.25 - $2.40 6 2.4% 7,000 1.4% 6 2.4% 7,000 1.4%
$2.40 - $2.55 25 9.9% 31,000 6.0% 31 12.3% 38,000 7.4%
$2.55 - $2.70 39 15.4% 105,200 20.4% 70 27.7% 143,200 27.8%
$2.70 - $2.85 42 16.6% 87,800 17.1% 112 44.3% 231,000 44.9%
$2.85 - $3.00 21 8.3% 32,000 6.2% 133 52.6% 263,000 51.1%
$3.00 - $3.15 14 5.5% 19,400 3.8% 147 58.1% 282,400 54.9%
$3.15 - $3.30 34 13.4% 53,200 10.3% 181 71.5% 335,600 65.2%
$3.30 - $3.45 43 17.0% 65,900 12.8% 224 88.5% 401,500 78.0%
$3.45 - $3.60 17 6.7% 40,400 7.8% 241 95.3% 441,900 85.9%
$3.60 - $3.75 10 4.0% 36,600 7.1% 251 99.2% 478,500 93.0%
$3.75 - $3.90 2 0.8% 36,200 7.0% 253 100.0% 514,700 100.0%
Greater Than or Equal To - $3.90 0 0.0% -- 0.0% 253 100.0% 514,700 100.0%
TOTAL: 253 100.0% 514,700 100.0%
</TABLE>
UNITED FOODS, INC. - CLASS A
Shares Traded at Various Prices From 12/5/97 to 12/7/98
[GRAPH]
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 2,034 shares or $6,252.00 and the
average daily close has been $3.01.
J.C. Bradford & Co.
28
<PAGE> 63
STOCK PRICE ANALYSIS
UNITED FOODS, INC. - CLASS B
Shares Traded at Various Prices From 12/5/97 to 12/7/98
<TABLE>
<CAPTION>
CUMULATIVE
---------------------------------------------
DAYS % OF TOTAL % OF TOTAL DAYS % OF TOTAL % OF TOTAL
TRADING DAILY AVG. DAYS TRADING TRADING DAILY AVG. DAYS TRADING TRADING
RANGE (1) IN RANGE TRADED VOLUME VOLUME IN RANGE TRADED VOLUME VOLUME
- --------------------------------- ---------- ---------- ------- ---------- ---------- ---------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Less Than $2.25 0 0.0% -- 0.0% 0 0.0% -- 0.0%
$2.25 - $2.40 6 2.3% 12,600 5.4% 6 2.3% 12,600 5.4%
$2.40 - $2.55 15 5.7% 4,200 1.8% 21 8.0% 16,800 7.1%
$2.55 - $2.70 19 7.3% 23,800 10.1% 40 15.3% 40,600 17.3%
$2.70 - $2.85 44 16.8% 22,400 9.5% 84 32.1% 63,000 26.8%
$2.85 - $3.00 48 18.3% 34,100 14.5% 132 50.4% 97,100 41.3%
$3.00 - $3.15 21 8.0% 19,300 8.2% 153 58.4% 116,400 49.5%
$3.15 - $3.30 18 6.9% 14,100 6.0% 171 65.3% 130,500 55.5%
$3.30 - $3.45 34 13.0% 50,700 21.6% 205 78.2% 181,200 77.1%
$3.45 - $3.60 37 14.1% 24,800 10.5% 242 92.4% 206,000 87.6%
$3.60 - $3.75 18 6.9% 27,200 11.6% 260 99.2% 233,200 99.2%
$3.75 - $3.90 2 0.8% 1,900 0.8% 262 100.0% 235,100 100.0%
Greater Than or Equal To - $3.90 0 0.0% -- 0.0% 262 100.0% 235,100 100.0%
TOTAL: 262 100.0% 235,100 100.0%
</TABLE>
UNITED FOODS, INC. - CLASS B
Shares Traded at Various Prices From 12/5/97 to 12/7/98
[GRAPH]
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 897 shares or $2,807.03 and the
average daily close has been $3.09.
J.C. Bradford & Co.
29
<PAGE> 64
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Dec-98 300 2.69 2.69 2.69
04-Dec-98 0 2.88 2.50 2.69
03-Dec-98 400 2.69 2.69 2.69
02-Dec-98 300 2.75 2.75 2.75
01-Dec-98 0 2.94 2.63 2.78
30-Nov-98 7,500 2.81 2.50 2.81
27-Nov-98 0 2.94 2.25 2.59
25-Nov-98 10,300 2.63 2.63 2.63
24-Nov-98 10,800 2.50 2.38 2.38
23-Nov-98 200 2.63 2.63 2.63
20-Nov-98 0 2.75 2.44 2.59
19-Nov-98 9,000 2.63 2.63 2.63
18-Nov-98 3,500 2.63 2.63 2.63
17-Nov-98 500 2.69 2.63 2.63
16-Nov-98 1,200 2.69 2.69 2.69
13-Nov-98 0 2.94 2.63 2.78
12-Nov-98 0 2.94 2.69 2.81
11-Nov-98 2,300 2.81 2.81 2.81
10-Nov-98 0 2.94 2.69 2.81
09-Nov-98 0 3.00 2.69 2.84
06-Nov-98 0 2.94 2.63 2.78
05-Nov-98 500 2.81 2.81 2.81
04-Nov-98 0 3.00 2.50 2.75
03-Nov-98 0 3.00 2.75 2.88
02-Nov-98 0 3.06 2.75 2.91
30-Oct-98 6,000 2.94 2.75 2.94
29-Oct-98 0 3.00 2.69 2.84
28-Oct-98 0 3.00 2.69 2.84
27-Oct-98 5,900 2.88 2.81 2.88
26-Oct-98 1,000 2.69 2.69 2.69
23-Oct-98 0 2.81 2.56 2.69
</TABLE>
J.C. Bradford & Co.
<PAGE> 65
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
22-Oct-98 0 2.88 2.56 2.72
21-Oct-98 0 2.88 2.63 2.75
20-Oct-98 0 2.94 2.56 2.75
19-Oct-98 200 2.69 2.69 2.69
16-Oct-98 0 2.81 2.56 2.69
15-Oct-98 1,000 2.75 2.69 2.69
14-Oct-98 0 3.00 2.63 2.81
13-Oct-98 0 2.94 2.63 2.78
12-Oct-98 0 2.94 2.69 2.81
09-Oct-98 0 3.00 2.69 2.84
08-Oct-98 0 2.88 2.56 2.72
07-Oct-98 1,400 2.88 2.88 2.88
06-Oct-98 700 2.88 2.88 2.88
05-Oct-98 0 3.06 2.81 2.94
02-Oct-98 300 2.81 2.81 2.81
01-Oct-98 0 3.06 2.63 2.84
30-Sep-98 2,000 2.94 2.94 2.94
29-Sep-98 200 2.88 2.88 2.88
28-Sep-98 0 2.94 2.56 2.75
25-Sep-98 500 2.81 2.81 2.81
24-Sep-98 0 2.94 2.56 2.75
23-Sep-98 0 2.81 2.56 2.69
22-Sep-98 500 2.63 2.63 2.63
21-Sep-98 0 2.81 2.56 2.69
18-Sep-98 0 2.88 2.56 2.72
17-Sep-98 6,000 2.63 2.38 2.63
16-Sep-98 100 2.38 2.38 2.38
15-Sep-98 0 2.50 2.31 2.41
14-Sep-98 5,000 2.44 2.44 2.44
11-Sep-98 1,600 2.63 2.38 2.44
10-Sep-98 2,400 2.50 2.50 2.50
</TABLE>
J.C. Bradford & Co.
<PAGE> 66
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
09-Sep-98 0 2.81 2.44 2.63
08-Sep-98 0 2.94 2.56 2.75
04-Sep-98 0 2.75 2.44 2.59
03-Sep-98 0 2.88 2.56 2.72
02-Sep-98 800 2.63 2.63 2.63
01-Sep-98 800 2.81 2.75 2.75
31-Aug-98 6,700 2.88 2.50 2.88
28-Aug-98 0 2.69 2.44 2.56
27-Aug-98 4,000 2.63 2.56 2.63
26-Aug-98 5,000 2.75 2.75 2.75
25-Aug-98 5,400 2.81 2.75 2.81
24-Aug-98 0 2.94 2.75 2.84
21-Aug-98 0 2.88 2.69 2.78
20-Aug-98 2,000 2.81 2.81 2.81
19-Aug-98 300 2.94 2.88 2.88
18-Aug-98 100 2.94 2.94 2.94
17-Aug-98 8,000 2.94 2.94 2.94
14-Aug-98 0 3.13 2.88 3.00
13-Aug-98 0 3.13 2.88 3.00
12-Aug-98 300 3.00 3.00 3.00
11-Aug-98 1,200 3.25 2.94 2.94
10-Aug-98 0 3.25 2.94 3.09
07-Aug-98 0 3.19 2.63 2.91
06-Aug-98 0 3.25 2.75 3.00
05-Aug-98 600 3.25 3.06 3.06
04-Aug-98 0 3.38 2.88 3.13
03-Aug-98 1,800 3.38 3.25 3.25
31-Jul-98 9,900 3.38 3.00 3.38
30-Jul-98 0 3.31 3.13 3.22
29-Jul-98 200 3.19 3.19 3.19
28-Jul-98 0 3.25 3.06 3.16
</TABLE>
J.C. Bradford & Co.
<PAGE> 67
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
27-Jul-98 0 3.38 3.06 3.22
24-Jul-98 0 3.38 3.06 3.22
23-Jul-98 0 3.25 2.88 3.06
22-Jul-98 2,100 3.25 3.25 3.25
21-Jul-98 0 3.38 3.06 3.22
20-Jul-98 0 3.38 2.88 3.13
17-Jul-98 0 3.38 3.13 3.25
16-Jul-98 0 3.38 3.06 3.22
15-Jul-98 0 3.38 3.06 3.22
14-Jul-98 0 3.31 3.13 3.22
13-Jul-98 0 3.38 3.13 3.25
10-Jul-98 0 3.31 2.88 3.09
09-Jul-98 0 3.38 3.13 3.25
08-Jul-98 0 3.38 3.13 3.25
07-Jul-98 1,000 3.19 3.19 3.19
06-Jul-98 1,600 3.25 3.19 3.19
02-Jul-98 0 3.50 3.19 3.34
01-Jul-98 400 3.38 3.38 3.38
30-Jun-98 7,000 3.44 3.38 3.38
29-Jun-98 0 3.44 3.06 3.25
26-Jun-98 0 3.50 2.88 3.19
25-Jun-98 1,000 3.25 3.25 3.25
24-Jun-98 0 3.56 3.06 3.31
23-Jun-98 200 3.25 3.25 3.25
22-Jun-98 5,000 3.31 3.31 3.31
19-Jun-98 0 3.38 3.19 3.28
18-Jun-98 600 3.19 3.19 3.19
17-Jun-98 0 3.38 3.13 3.25
16-Jun-98 5,200 3.31 3.19 3.19
15-Jun-98 100 3.31 3.31 3.31
12-Jun-98 0 3.56 3.25 3.41
</TABLE>
J.C. Bradford & Co.
<PAGE> 68
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
11-Jun-98 2,200 3.38 3.31 3.31
10-Jun-98 100 3.31 3.31 3.31
09-Jun-98 600 3.38 3.38 3.38
08-Jun-98 0 3.69 3.19 3.44
05-Jun-98 500 3.50 3.50 3.50
04-Jun-98 0 3.69 3.44 3.56
03-Jun-98 0 3.69 3.44 3.56
02-Jun-98 0 3.69 3.44 3.56
01-Jun-98 0 3.63 3.25 3.44
29-May-98 15,300 3.63 3.44 3.63
28-May-98 1,100 3.50 3.31 3.50
27-May-98 0 3.50 3.19 3.34
26-May-98 3,200 3.38 3.38 3.38
22-May-98 0 3.44 3.19 3.31
21-May-98 0 3.63 3.13 3.38
20-May-98 0 3.56 3.19 3.38
19-May-98 7,300 3.25 3.25 3.25
18-May-98 3,700 3.31 3.31 3.31
15-May-98 200 3.38 3.38 3.38
14-May-98 0 3.50 3.25 3.38
13-May-98 200 3.31 3.31 3.31
12-May-98 1,000 3.38 3.38 3.38
11-May-98 0 3.56 3.25 3.41
08-May-98 900 3.38 3.38 3.38
07-May-98 0 3.63 3.38 3.50
06-May-98 400 3.44 3.44 3.44
05-May-98 500 3.50 3.50 3.50
04-May-98 2,300 3.88 3.63 3.75
01-May-98 29,700 3.94 3.81 3.81
30-Apr-98 5,200 3.56 3.06 3.56
29-Apr-98 0 3.25 2.94 3.09
</TABLE>
J.C. Bradford & Co.
<PAGE> 69
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
28-Apr-98 5,000 3.13 3.00 3.13
27-Apr-98 100 2.88 2.88 2.88
24-Apr-98 0 3.00 2.69 2.84
23-Apr-98 1,000 2.88 2.88 2.88
22-Apr-98 7,400 3.00 2.75 3.00
21-Apr-98 16,700 2.69 2.50 2.63
20-Apr-98 4,100 2.75 2.69 2.75
17-Apr-98 41,300 3.00 2.69 2.69
16-Apr-98 1,000 3.06 3.06 3.06
15-Apr-98 11,000 3.13 3.06 3.06
14-Apr-98 10,700 3.50 3.06 3.38
13-Apr-98 2,500 3.00 3.00 3.00
09-Apr-98 500 3.06 3.00 3.00
08-Apr-98 0 3.31 2.88 3.09
07-Apr-98 700 3.13 3.13 3.13
06-Apr-98 0 3.44 2.94 3.19
03-Apr-98 0 3.56 3.06 3.31
02-Apr-98 3,600 3.38 3.25 3.25
01-Apr-98 0 3.69 3.31 3.50
31-Mar-98 9,400 3.50 3.00 3.50
30-Mar-98 4,000 3.06 2.94 2.94
27-Mar-98 700 3.19 3.19 3.19
26-Mar-98 0 3.31 2.94 3.13
25-Mar-98 800 3.19 3.19 3.19
24-Mar-98 200 3.31 3.31 3.31
23-Mar-98 1,100 3.38 3.38 3.38
20-Mar-98 0 3.50 2.88 3.19
19-Mar-98 0 3.50 3.13 3.31
18-Mar-98 1,900 3.31 3.19 3.31
17-Mar-98 0 3.50 3.13 3.31
16-Mar-98 0 3.50 3.25 3.38
</TABLE>
J.C. Bradford & Co.
<PAGE> 70
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
13-Mar-98 1,300 3.31 3.31 3.31
12-Mar-98 0 3.56 3.19 3.38
11-Mar-98 1,000 3.50 3.38 3.38
10-Mar-98 0 3.69 3.38 3.53
09-Mar-98 400 3.50 3.50 3.50
06-Mar-98 2,500 3.63 3.63 3.63
05-Mar-98 3,700 3.63 3.50 3.50
04-Mar-98 600 3.50 3.50 3.50
03-Mar-98 0 3.81 3.50 3.66
02-Mar-98 1,000 3.56 3.56 3.56
27-Feb-98 10,300 3.69 3.25 3.63
26-Feb-98 300 3.38 3.38 3.38
25-Feb-98 800 3.44 3.44 3.44
24-Feb-98 0 3.56 3.31 3.44
23-Feb-98 600 3.50 3.44 3.44
20-Feb-98 0 3.63 3.13 3.38
19-Feb-98 7,500 3.63 3.50 3.50
18-Feb-98 2,200 3.75 3.75 3.75
17-Feb-98 0 3.75 3.44 3.59
13-Feb-98 200 3.63 3.63 3.63
12-Feb-98 1,000 3.75 3.75 3.75
11-Feb-98 2,200 3.75 3.63 3.63
10-Feb-98 6,500 4.00 3.75 3.75
09-Feb-98 3,100 3.88 3.63 3.88
06-Feb-98 3,000 3.88 3.63 3.63
05-Feb-98 20,100 3.88 3.56 3.88
04-Feb-98 24,500 3.75 3.00 3.75
03-Feb-98 4,000 3.00 2.94 2.94
02-Feb-98 0 3.00 2.69 2.84
30-Jan-98 12,400 2.88 2.75 2.88
29-Jan-98 6,200 2.63 2.50 2.63
</TABLE>
J.C. Bradford & Co.
<PAGE> 71
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
28-Jan-98 0 2.75 2.44 2.59
27-Jan-98 10,000 2.63 2.63 2.63
26-Jan-98 300 2.50 2.50 2.50
23-Jan-98 200 2.63 2.63 2.63
22-Jan-98 0 2.81 2.44 2.63
21-Jan-98 1,800 2.63 2.50 2.50
20-Jan-98 0 2.69 2.38 2.53
16-Jan-98 300 2.56 2.56 2.56
15-Jan-98 9,300 2.63 2.50 2.50
14-Jan-98 0 2.69 2.31 2.50
13-Jan-98 0 2.56 2.31 2.44
12-Jan-98 0 2.69 2.31 2.50
09-Jan-98 700 2.50 2.44 2.44
08-Jan-98 0 2.69 2.44 2.56
07-Jan-98 0 2.69 2.31 2.50
06-Jan-98 5,600 2.63 2.63 2.63
05-Jan-98 3,400 2.75 2.63 2.63
02-Jan-98 0 2.75 2.44 2.59
31-Dec-97 5,600 2.75 2.38 2.63
30-Dec-97 200 2.38 2.38 2.38
29-Dec-97 1,000 2.38 2.38 2.38
26-Dec-97 0 2.69 2.31 2.50
24-Dec-97 1,700 2.38 2.38 2.38
23-Dec-97 200 2.50 2.50 2.50
22-Dec-97 0 2.56 2.31 2.44
19-Dec-97 0 2.63 2.25 2.44
18-Dec-97 0 2.63 2.31 2.47
17-Dec-97 700 2.50 2.50 2.50
16-Dec-97 0 2.56 2.19 2.38
15-Dec-97 4,000 2.38 2.38 2.38
12-Dec-97 0 2.56 2.25 2.41
</TABLE>
J.C. Bradford & Co.
<PAGE> 72
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
11-Dec-97 1,300 2.44 2.44 2.44
10-Dec-97 0 2.50 2.31 2.41
09-Dec-97 0 2.50 2.31 2.41
08-Dec-97 2,000 2.44 2.44 2.44
05-Dec-97 0 2.69 2.31 2.50
04-Dec-97 0 2.69 2.31 2.50
03-Dec-97 0 2.75 2.44 2.59
02-Dec-97 400 2.50 2.50 2.50
01-Dec-97 0 2.75 2.44 2.59
28-Nov-97 6,700 2.63 2.38 2.63
26-Nov-97 0 2.69 2.38 2.53
25-Nov-97 0 2.81 2.38 2.59
24-Nov-97 0 2.69 2.38 2.53
21-Nov-97 0 2.69 2.38 2.53
20-Nov-97 0 2.81 2.31 2.56
19-Nov-97 0 2.75 2.31 2.53
18-Nov-97 0 2.69 2.38 2.53
17-Nov-97 200 2.44 2.44 2.44
14-Nov-97 0 2.69 2.31 2.50
13-Nov-97 0 2.56 2.31 2.44
12-Nov-97 0 2.63 2.25 2.44
11-Nov-97 2,000 2.50 2.38 2.50
10-Nov-97 100 2.25 2.25 2.25
07-Nov-97 0 2.44 2.06 2.25
06-Nov-97 1,300 2.25 2.25 2.25
05-Nov-97 2,000 2.38 2.38 2.38
04-Nov-97 800 2.50 2.50 2.50
03-Nov-97 0 2.75 2.44 2.59
31-Oct-97 5,500 2.63 2.44 2.63
30-Oct-97 6,000 2.50 2.50 2.50
29-Oct-97 0 2.50 2.25 2.38
</TABLE>
J.C. Bradford & Co.
<PAGE> 73
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
28-Oct-97 1,500 2.50 2.50 2.50
27-Oct-97 0 2.63 2.25 2.44
24-Oct-97 200 2.50 2.50 2.50
23-Oct-97 0 2.81 2.38 2.59
22-Oct-97 2,900 2.50 2.44 2.50
21-Oct-97 0 2.63 2.50 2.56
20-Oct-97 0 2.69 2.44 2.56
17-Oct-97 0 2.63 2.50 2.56
16-Oct-97 800 2.50 2.50 2.50
15-Oct-97 200 2.50 2.50 2.50
14-Oct-97 0 2.69 2.50 2.59
13-Oct-97 200 2.50 2.50 2.50
10-Oct-97 0 2.75 2.50 2.63
09-Oct-97 0 2.75 2.50 2.63
08-Oct-97 1,000 2.56 2.56 2.56
07-Oct-97 0 2.75 2.56 2.66
06-Oct-97 0 2.75 2.50 2.63
03-Oct-97 0 2.75 2.56 2.66
02-Oct-97 300 2.63 2.63 2.63
01-Oct-97 0 2.81 2.44 2.63
30-Sep-97 8,700 2.75 2.50 2.75
29-Sep-97 0 2.69 2.50 2.59
26-Sep-97 0 2.75 2.56 2.66
25-Sep-97 1,300 2.63 2.50 2.63
24-Sep-97 0 2.75 2.56 2.66
23-Sep-97 600 2.75 2.56 2.75
22-Sep-97 1,300 2.63 2.63 2.63
19-Sep-97 0 2.69 2.31 2.50
18-Sep-97 200 2.50 2.50 2.50
17-Sep-97 14,500 2.75 2.63 2.63
16-Sep-97 600 2.75 2.75 2.75
</TABLE>
J.C. Bradford & Co.
<PAGE> 74
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
15-Sep-97 0 2.81 2.56 2.69
12-Sep-97 2,500 2.69 2.63 2.63
11-Sep-97 0 2.69 2.25 2.47
10-Sep-97 0 2.63 2.38 2.50
09-Sep-97 400 2.44 2.44 2.44
08-Sep-97 13,700 2.56 2.50 2.56
05-Sep-97 600 2.38 2.38 2.38
04-Sep-97 1,000 2.50 2.50 2.50
03-Sep-97 0 2.75 2.44 2.59
02-Sep-97 0 2.81 2.50 2.66
29-Aug-97 7,600 2.63 2.50 2.56
28-Aug-97 600 2.56 2.44 2.56
27-Aug-97 20,700 2.50 2.50 2.50
26-Aug-97 300 2.44 2.44 2.44
25-Aug-97 1,000 2.50 2.50 2.50
22-Aug-97 0 2.50 2.31 2.41
21-Aug-97 1,000 2.38 2.38 2.38
20-Aug-97 0 2.56 2.38 2.47
19-Aug-97 0 2.56 2.38 2.47
18-Aug-97 300 2.50 2.50 2.50
15-Aug-97 2,000 2.56 2.56 2.56
14-Aug-97 0 2.75 2.56 2.66
13-Aug-97 0 2.81 2.56 2.69
12-Aug-97 300 2.63 2.63 2.63
11-Aug-97 0 2.75 2.56 2.66
08-Aug-97 0 2.75 2.56 2.66
07-Aug-97 2,700 2.63 2.63 2.63
06-Aug-97 3,300 2.75 2.63 2.75
05-Aug-97 0 3.00 2.63 2.81
04-Aug-97 0 2.88 2.63 2.75
01-Aug-97 0 2.88 2.56 2.72
</TABLE>
J.C. Bradford & Co.
<PAGE> 75
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
31-Jul-97 0 2.88 2.63 2.75
30-Jul-97 0 2.88 2.50 2.69
29-Jul-97 1,500 2.75 2.63 2.75
28-Jul-97 700 2.81 2.81 2.81
25-Jul-97 1,300 2.88 2.81 2.81
24-Jul-97 8,400 2.94 2.81 2.94
23-Jul-97 15,100 2.94 2.13 2.81
22-Jul-97 200 2.19 2.19 2.19
21-Jul-97 0 2.38 2.13 2.25
18-Jul-97 500 2.19 2.19 2.19
17-Jul-97 0 2.44 2.00 2.22
16-Jul-97 0 2.38 2.13 2.25
15-Jul-97 2,700 2.25 2.25 2.25
14-Jul-97 400 2.38 2.25 2.25
11-Jul-97 0 2.50 2.13 2.31
10-Jul-97 0 2.50 2.13 2.31
09-Jul-97 5,600 2.25 2.13 2.25
08-Jul-97 0 2.44 2.00 2.22
07-Jul-97 500 2.38 2.31 2.31
03-Jul-97 0 2.50 2.13 2.31
02-Jul-97 10,700 2.44 2.38 2.38
01-Jul-97 0 2.44 2.31 2.38
30-Jun-97 1,300 2.38 2.38 2.38
27-Jun-97 0 2.44 2.06 2.25
26-Jun-97 0 2.56 2.31 2.44
25-Jun-97 4,400 2.31 2.31 2.31
24-Jun-97 0 2.38 2.31 2.34
23-Jun-97 100 2.31 2.31 2.31
20-Jun-97 200 2.38 2.38 2.38
19-Jun-97 2,200 2.44 2.44 2.44
18-Jun-97 100 2.19 2.19 2.19
</TABLE>
J.C. Bradford & Co.
<PAGE> 76
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
17-Jun-97 0 2.38 2.13 2.25
16-Jun-97 200 2.25 2.25 2.25
13-Jun-97 1,700 2.25 2.25 2.25
12-Jun-97 0 2.50 2.13 2.31
11-Jun-97 200 2.13 2.13 2.13
10-Jun-97 0 2.38 2.13 2.25
09-Jun-97 0 2.38 2.13 2.25
06-Jun-97 8,400 2.13 2.13 2.13
05-Jun-97 0 2.38 2.13 2.25
04-Jun-97 10,100 2.19 2.19 2.19
03-Jun-97 13,700 2.13 2.06 2.13
02-Jun-97 11,100 2.13 2.00 2.13
30-May-97 200 2.06 2.06 2.06
29-May-97 7,600 2.13 2.13 2.13
28-May-97 0 2.13 1.88 2.00
27-May-97 4,100 2.06 2.06 2.06
23-May-97 3,300 2.06 2.06 2.06
22-May-97 5,000 2.06 2.06 2.06
21-May-97 14,500 2.13 2.06 2.06
20-May-97 42,400 2.06 2.00 2.06
19-May-97 2,400 1.75 1.63 1.75
16-May-97 700 1.63 1.56 1.63
15-May-97 100 1.56 1.56 1.56
14-May-97 0 1.69 1.56 1.63
13-May-97 4,000 1.56 1.56 1.56
12-May-97 400 1.56 1.56 1.56
09-May-97 600 1.63 1.63 1.63
08-May-97 400 1.56 1.56 1.56
07-May-97 1,000 1.63 1.63 1.63
06-May-97 0 1.75 1.38 1.56
05-May-97 100 1.63 1.63 1.63
</TABLE>
J.C. Bradford & Co.
<PAGE> 77
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
02-May-97 0 1.81 1.38 1.59
01-May-97 5,000 1.75 1.63 1.63
30-Apr-97 8,500 1.69 1.50 1.69
29-Apr-97 0 1.69 1.50 1.59
28-Apr-97 2,000 1.56 1.56 1.56
25-Apr-97 5,000 1.69 1.56 1.56
24-Apr-97 500 1.56 1.56 1.56
23-Apr-97 3,000 1.69 1.69 1.69
22-Apr-97 0 1.69 1.50 1.59
21-Apr-97 5,800 1.63 1.56 1.63
18-Apr-97 1,200 1.63 1.63 1.63
17-Apr-97 3,000 1.63 1.63 1.63
16-Apr-97 3,000 1.63 1.63 1.63
15-Apr-97 0 1.69 1.50 1.59
14-Apr-97 12,600 1.56 1.44 1.50
11-Apr-97 24,200 1.63 1.50 1.50
10-Apr-97 0 1.81 1.63 1.72
09-Apr-97 0 1.81 1.63 1.72
08-Apr-97 200 1.69 1.69 1.69
07-Apr-97 800 1.69 1.69 1.69
04-Apr-97 300 1.69 1.69 1.69
03-Apr-97 8,900 1.81 1.69 1.69
02-Apr-97 2,200 1.81 1.69 1.81
01-Apr-97 0 1.81 1.56 1.69
31-Mar-97 3,500 1.81 1.63 1.81
27-Mar-97 0 1.75 1.63 1.69
26-Mar-97 0 1.75 1.56 1.66
25-Mar-97 1,400 1.63 1.63 1.63
24-Mar-97 1,000 1.69 1.69 1.69
21-Mar-97 0 1.75 1.63 1.69
20-Mar-97 600 1.63 1.63 1.63
</TABLE>
J.C. Bradford & Co.
<PAGE> 78
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
19-Mar-97 1,000 1.69 1.69 1.69
18-Mar-97 300 1.69 1.69 1.69
17-Mar-97 1,200 1.69 1.69 1.69
14-Mar-97 0 1.81 1.63 1.72
13-Mar-97 6,200 1.69 1.69 1.69
12-Mar-97 0 1.81 1.69 1.75
11-Mar-97 0 1.81 1.69 1.75
10-Mar-97 2,700 1.81 1.69 1.69
07-Mar-97 0 1.94 1.81 1.88
06-Mar-97 1,100 1.94 1.88 1.94
05-Mar-97 0 1.94 1.75 1.84
04-Mar-97 1,000 1.94 1.88 1.94
03-Mar-97 0 2.00 1.63 1.81
28-Feb-97 21,900 1.88 1.75 1.88
27-Feb-97 600 1.81 1.81 1.81
26-Feb-97 0 1.81 1.44 1.63
25-Feb-97 2,500 1.69 1.69 1.69
24-Feb-97 800 1.69 1.69 1.69
21-Feb-97 2,300 1.75 1.75 1.75
20-Feb-97 200 1.69 1.69 1.69
19-Feb-97 0 1.75 1.63 1.69
18-Feb-97 5,100 1.69 1.69 1.69
14-Feb-97 300 1.75 1.75 1.75
13-Feb-97 0 1.94 1.69 1.81
12-Feb-97 0 1.81 1.69 1.75
11-Feb-97 100 1.81 1.81 1.81
10-Feb-97 13,200 1.88 1.81 1.81
07-Feb-97 12,900 1.81 1.63 1.81
06-Feb-97 0 1.75 1.63 1.69
05-Feb-97 11,000 1.63 1.56 1.63
04-Feb-97 2,000 1.63 1.63 1.63
</TABLE>
J.C. Bradford & Co.
<PAGE> 79
INVESTMENT BANKING GROUP
CLASS A
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
03-Feb-97 1,200 1.56 1.56 1.56
31-Jan-97 8,000 1.69 1.56 1.56
30-Jan-97 25,900 1.63 1.56 1.63
29-Jan-97 3,100 1.63 1.63 1.63
28-Jan-97 6,100 1.69 1.63 1.63
27-Jan-97 0 1.75 1.63 1.69
24-Jan-97 0 1.75 1.63 1.69
23-Jan-97 500 1.69 1.69 1.69
22-Jan-97 0 1.81 1.56 1.69
21-Jan-97 800 1.69 1.69 1.69
20-Jan-97 1,600 1.69 1.69 1.69
17-Jan-97 0 1.81 1.56 1.69
16-Jan-97 0 1.81 1.63 1.72
15-Jan-97 100 1.63 1.63 1.63
14-Jan-97 3,000 1.75 1.63 1.63
13-Jan-97 1,100 1.69 1.63 1.63
10-Jan-97 400 1.75 1.69 1.75
09-Jan-97 7,000 1.69 1.69 1.69
08-Jan-97 12,500 1.75 1.69 1.69
07-Jan-97 12,500 1.75 1.75 1.75
06-Jan-97 400 1.63 1.63 1.63
03-Jan-97 1,300 1.69 1.63 1.69
02-Jan-97 2,000 1.63 1.56 1.56
-------------------------------------------------------------
AVERAGE 2,227 2.67 2.50 2.59
=============================================================
</TABLE>
J.C. Bradford & Co.
<PAGE> 80
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Dec-98 100 2.88 2.88 2.88
04-Dec-98 0 3.13 2.75 2.94
03-Dec-98 0 3.00 2.81 2.91
02-Dec-98 1,200 2.88 2.88 2.88
01-Dec-98 0 3.13 2.75 2.94
30-Nov-98 3,500 3.00 2.88 3.00
27-Nov-98 0 3.06 2.63 2.84
25-Nov-98 800 2.69 2.69 2.69
24-Nov-98 100 2.75 2.75 2.75
23-Nov-98 0 2.88 2.56 2.72
20-Nov-98 0 2.94 2.69 2.81
19-Nov-98 800 2.88 2.81 2.88
18-Nov-98 0 2.88 2.69 2.78
17-Nov-98 700 2.88 2.88 2.88
16-Nov-98 0 3.00 2.69 2.84
13-Nov-98 0 2.94 2.75 2.84
12-Nov-98 0 2.94 2.69 2.81
11-Nov-98 0 3.00 2.75 2.88
10-Nov-98 0 3.00 2.69 2.84
09-Nov-98 0 3.13 2.81 2.97
06-Nov-98 0 3.00 2.69 2.84
05-Nov-98 0 3.00 2.81 2.91
04-Nov-98 0 3.00 2.50 2.75
03-Nov-98 0 2.94 2.69 2.81
02-Nov-98 1,000 3.00 2.88 2.88
30-Oct-98 3,400 3.00 2.88 3.00
29-Oct-98 0 3.06 2.81 2.94
28-Oct-98 0 3.00 2.81 2.91
27-Oct-98 2,700 2.88 2.88 2.88
26-Oct-98 0 2.94 2.69 2.81
23-Oct-98 0 2.88 2.56 2.72
</TABLE>
J.C. Bradford & Co.
<PAGE> 81
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
22-Oct-98 0 2.94 2.56 2.75
21-Oct-98 0 2.94 2.63 2.78
20-Oct-98 0 2.94 2.56 2.75
19-Oct-98 0 3.06 2.63 2.84
16-Oct-98 3,000 2.75 2.56 2.75
15-Oct-98 1,000 2.63 2.63 2.63
14-Oct-98 0 2.88 2.50 2.69
13-Oct-98 0 2.81 2.56 2.69
12-Oct-98 0 2.81 2.56 2.69
09-Oct-98 1,000 2.69 2.69 2.69
08-Oct-98 2,500 2.81 2.81 2.81
07-Oct-98 500 2.88 2.88 2.88
06-Oct-98 100 2.88 2.88 2.88
05-Oct-98 0 3.00 2.75 2.88
02-Oct-98 2,000 2.88 2.88 2.88
01-Oct-98 0 3.13 2.63 2.88
30-Sep-98 1,000 3.00 3.00 3.00
29-Sep-98 0 3.06 2.81 2.94
28-Sep-98 0 3.00 2.75 2.88
25-Sep-98 4,500 3.00 2.94 3.00
24-Sep-98 3,400 2.88 2.81 2.88
23-Sep-98 0 2.88 2.63 2.75
22-Sep-98 0 2.94 2.69 2.81
21-Sep-98 0 2.75 2.56 2.66
18-Sep-98 0 2.88 2.56 2.72
17-Sep-98 4,600 2.69 2.44 2.69
16-Sep-98 0 2.56 2.38 2.47
15-Sep-98 0 2.63 2.31 2.47
14-Sep-98 0 2.69 2.38 2.53
11-Sep-98 800 2.50 2.50 2.50
10-Sep-98 5,900 2.75 2.63 2.75
</TABLE>
J.C. Bradford & Co.
<PAGE> 82
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
09-Sep-98 0 2.94 2.69 2.81
08-Sep-98 200 2.75 2.75 2.75
04-Sep-98 700 2.88 2.75 2.75
03-Sep-98 500 2.69 2.69 2.69
02-Sep-98 0 3.00 2.63 2.81
01-Sep-98 600 2.88 2.81 2.81
31-Aug-98 3,100 2.94 2.88 2.94
28-Aug-98 3,000 2.75 2.75 2.75
27-Aug-98 500 2.81 2.81 2.81
26-Aug-98 0 2.94 2.50 2.72
25-Aug-98 0 3.19 2.56 2.88
24-Aug-98 0 3.06 2.75 2.91
21-Aug-98 3,000 2.81 2.81 2.81
20-Aug-98 0 3.13 2.75 2.94
19-Aug-98 3,500 2.94 2.94 2.94
18-Aug-98 1,000 3.00 3.00 3.00
17-Aug-98 0 3.13 2.88 3.00
14-Aug-98 0 3.25 2.94 3.09
13-Aug-98 0 3.13 2.94 3.03
12-Aug-98 0 3.25 2.88 3.06
11-Aug-98 0 3.25 2.94 3.09
10-Aug-98 0 3.31 2.94 3.13
07-Aug-98 0 3.19 2.75 2.97
06-Aug-98 0 3.25 2.75 3.00
05-Aug-98 100 3.13 3.13 3.13
04-Aug-98 0 3.38 2.88 3.13
03-Aug-98 0 3.38 3.06 3.22
31-Jul-98 13,000 3.25 3.00 3.25
30-Jul-98 900 3.06 3.06 3.06
29-Jul-98 300 3.13 3.13 3.13
28-Jul-98 0 3.19 2.94 3.06
</TABLE>
J.C. Bradford & Co.
<PAGE> 83
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
27-Jul-98 0 3.25 3.06 3.16
24-Jul-98 0 3.38 3.06 3.22
23-Jul-98 0 3.38 2.88 3.13
22-Jul-98 3,900 3.25 3.13 3.13
21-Jul-98 0 3.56 3.06 3.31
20-Jul-98 500 3.25 3.13 3.25
17-Jul-98 0 3.31 3.06 3.19
16-Jul-98 0 3.31 2.94 3.13
15-Jul-98 800 3.13 3.13 3.13
14-Jul-98 300 3.13 3.13 3.13
13-Jul-98 0 3.44 3.06 3.25
10-Jul-98 300 3.13 3.13 3.13
09-Jul-98 0 3.38 3.13 3.25
08-Jul-98 100 3.19 3.19 3.19
07-Jul-98 0 3.44 3.13 3.28
06-Jul-98 1,400 3.25 3.25 3.25
02-Jul-98 0 3.63 3.31 3.47
01-Jul-98 0 3.69 3.31 3.50
30-Jun-98 6,300 3.50 3.31 3.50
29-Jun-98 100 3.38 3.38 3.38
26-Jun-98 0 3.75 3.38 3.56
25-Jun-98 0 3.56 3.31 3.44
24-Jun-98 300 3.44 3.44 3.44
23-Jun-98 0 3.56 3.19 3.38
22-Jun-98 800 3.50 3.44 3.44
19-Jun-98 100 3.38 3.38 3.38
18-Jun-98 600 3.50 3.50 3.50
17-Jun-98 0 3.69 3.31 3.50
16-Jun-98 0 3.63 3.31 3.47
15-Jun-98 700 3.50 3.50 3.50
12-Jun-98 2,600 3.63 3.63 3.63
</TABLE>
J.C. Bradford & Co.
<PAGE> 84
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
11-Jun-98 5,400 3.50 3.44 3.50
10-Jun-98 0 3.88 3.19 3.53
09-Jun-98 500 3.56 3.56 3.56
08-Jun-98 300 3.38 3.38 3.38
05-Jun-98 100 3.44 3.44 3.44
04-Jun-98 2,000 3.50 3.50 3.50
03-Jun-98 100 3.63 3.63 3.63
02-Jun-98 0 3.81 3.44 3.63
01-Jun-98 0 3.75 3.25 3.50
29-May-98 2,000 3.63 3.56 3.63
28-May-98 100 3.44 3.44 3.44
27-May-98 0 3.63 3.31 3.47
26-May-98 0 3.56 3.31 3.44
22-May-98 0 3.56 3.25 3.41
21-May-98 0 3.50 3.06 3.28
20-May-98 0 3.50 3.06 3.28
19-May-98 100 3.44 3.44 3.44
18-May-98 1,100 3.50 3.38 3.38
15-May-98 0 3.75 3.44 3.59
14-May-98 0 3.75 3.44 3.59
13-May-98 0 3.81 3.44 3.63
12-May-98 700 3.63 3.63 3.63
11-May-98 0 3.69 3.38 3.53
08-May-98 0 3.75 3.38 3.56
07-May-98 0 3.63 3.38 3.50
06-May-98 600 3.50 3.50 3.50
05-May-98 0 3.69 3.44 3.56
04-May-98 100 3.56 3.56 3.56
01-May-98 2,500 3.63 3.50 3.63
30-Apr-98 4,200 3.44 3.38 3.44
29-Apr-98 2,700 3.38 3.25 3.38
</TABLE>
J.C. Bradford & Co.
<PAGE> 85
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
28-Apr-98 600 3.13 3.13 3.13
27-Apr-98 0 3.13 2.81 2.97
24-Apr-98 100 3.00 3.00 3.00
23-Apr-98 0 3.19 2.81 3.00
22-Apr-98 0 3.19 2.81 3.00
21-Apr-98 0 3.13 2.69 2.91
20-Apr-98 0 3.19 2.81 3.00
17-Apr-98 200 3.00 3.00 3.00
16-Apr-98 100 3.31 3.31 3.31
15-Apr-98 100 3.38 3.38 3.38
14-Apr-98 4,800 3.38 3.00 3.25
13-Apr-98 2,500 3.00 3.00 3.00
09-Apr-98 100 3.13 3.13 3.13
08-Apr-98 0 3.44 2.94 3.19
07-Apr-98 400 3.31 3.25 3.25
06-Apr-98 0 3.44 3.06 3.25
03-Apr-98 0 3.50 3.25 3.38
02-Apr-98 500 3.44 3.31 3.31
01-Apr-98 800 3.44 3.31 3.44
31-Mar-98 11,400 3.44 3.19 3.44
30-Mar-98 2,500 3.19 2.94 3.06
27-Mar-98 0 3.56 3.19 3.38
26-Mar-98 0 3.56 3.19 3.38
25-Mar-98 300 3.38 3.38 3.38
24-Mar-98 0 3.88 3.13 3.50
23-Mar-98 1,800 3.50 3.38 3.50
20-Mar-98 3,300 3.44 3.31 3.44
19-Mar-98 0 3.50 3.25 3.38
18-Mar-98 0 3.56 3.25 3.41
17-Mar-98 9,000 3.50 3.31 3.31
16-Mar-98 0 3.81 3.44 3.63
</TABLE>
J.C. Bradford & Co.
<PAGE> 86
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
13-Mar-98 200 3.50 3.50 3.50
12-Mar-98 2,000 3.50 3.50 3.50
11-Mar-98 900 3.50 3.50 3.50
10-Mar-98 700 3.50 3.50 3.50
09-Mar-98 0 3.81 3.44 3.63
06-Mar-98 0 3.81 3.44 3.63
05-Mar-98 100 3.63 3.63 3.63
04-Mar-98 400 3.69 3.69 3.69
03-Mar-98 0 3.94 3.63 3.78
02-Mar-98 0 3.94 3.56 3.75
27-Feb-98 5,700 3.75 3.50 3.63
26-Feb-98 0 3.69 3.31 3.50
25-Feb-98 300 3.50 3.50 3.50
24-Feb-98 0 3.69 3.38 3.53
23-Feb-98 600 3.56 3.50 3.56
20-Feb-98 0 3.63 3.25 3.44
19-Feb-98 0 3.69 3.44 3.56
18-Feb-98 3,300 3.63 3.50 3.56
17-Feb-98 3,500 3.63 3.63 3.63
13-Feb-98 4,400 3.69 3.63 3.69
12-Feb-98 0 3.63 3.13 3.38
11-Feb-98 1,600 3.50 3.50 3.50
10-Feb-98 2,600 3.81 3.63 3.63
09-Feb-98 800 3.75 3.75 3.75
06-Feb-98 1,900 3.81 3.75 3.75
05-Feb-98 6,300 3.88 3.38 3.88
04-Feb-98 8,000 3.38 3.25 3.38
03-Feb-98 3,000 3.25 3.25 3.25
02-Feb-98 400 3.13 3.13 3.13
30-Jan-98 2,000 3.00 2.88 3.00
29-Jan-98 1,000 2.69 2.69 2.69
</TABLE>
J.C. Bradford & Co.
<PAGE> 87
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
28-Jan-98 0 3.06 2.69 2.88
27-Jan-98 0 3.00 2.50 2.75
26-Jan-98 400 2.75 2.75 2.75
23-Jan-98 0 2.94 2.56 2.75
22-Jan-98 1,600 2.75 2.75 2.75
21-Jan-98 100 2.75 2.75 2.75
20-Jan-98 300 2.88 2.88 2.88
16-Jan-98 100 2.88 2.88 2.88
15-Jan-98 0 3.06 2.69 2.88
14-Jan-98 600 2.88 2.88 2.88
13-Jan-98 1,300 2.88 2.75 2.75
12-Jan-98 500 2.63 2.63 2.63
09-Jan-98 0 2.94 2.56 2.75
08-Jan-98 0 2.88 2.56 2.72
07-Jan-98 100 2.75 2.75 2.75
06-Jan-98 4,100 2.88 2.63 2.75
05-Jan-98 0 2.81 2.44 2.63
02-Jan-98 500 2.63 2.63 2.63
31-Dec-97 5,000 2.75 2.63 2.75
30-Dec-97 0 2.63 2.19 2.41
29-Dec-97 1,900 2.38 2.38 2.38
26-Dec-97 0 2.69 2.31 2.50
24-Dec-97 100 2.38 2.38 2.38
23-Dec-97 300 2.38 2.38 2.38
22-Dec-97 10,100 2.38 2.38 2.38
19-Dec-97 0 2.63 2.31 2.47
18-Dec-97 200 2.38 2.38 2.38
17-Dec-97 0 2.69 2.38 2.53
16-Dec-97 0 2.69 2.31 2.50
15-Dec-97 0 2.75 2.31 2.53
12-Dec-97 100 2.44 2.44 2.44
</TABLE>
J.C. Bradford & Co.
<PAGE> 88
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
11-Dec-97 0 2.69 2.31 2.50
10-Dec-97 0 2.56 2.38 2.47
09-Dec-97 0 2.69 2.38 2.53
08-Dec-97 3,300 2.50 2.44 2.44
05-Dec-97 0 2.81 2.44 2.63
04-Dec-97 0 2.81 2.44 2.63
03-Dec-97 2,000 2.50 2.50 2.50
02-Dec-97 3,500 2.63 2.63 2.63
01-Dec-97 0 2.75 2.50 2.63
28-Nov-97 9,000 2.75 2.38 2.75
26-Nov-97 3,500 2.50 2.38 2.50
25-Nov-97 1,500 2.44 2.44 2.44
24-Nov-97 200 2.44 2.44 2.44
21-Nov-97 0 2.69 2.44 2.56
20-Nov-97 2,000 2.44 2.44 2.44
19-Nov-97 100 2.44 2.44 2.44
18-Nov-97 0 2.69 2.38 2.53
17-Nov-97 1,400 2.44 2.44 2.44
14-Nov-97 1,700 2.38 2.38 2.38
13-Nov-97 0 2.56 2.31 2.44
12-Nov-97 500 2.38 2.38 2.38
11-Nov-97 1,500 2.38 2.38 2.38
10-Nov-97 0 2.56 2.38 2.47
07-Nov-97 500 2.50 2.50 2.50
06-Nov-97 0 2.75 2.44 2.59
05-Nov-97 0 2.75 2.44 2.59
04-Nov-97 100 2.63 2.63 2.63
03-Nov-97 0 2.81 2.38 2.59
31-Oct-97 5,000 2.69 2.63 2.69
30-Oct-97 100 2.38 2.38 2.38
29-Oct-97 0 2.63 2.38 2.50
</TABLE>
J.C. Bradford & Co.
<PAGE> 89
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
28-Oct-97 5,600 2.38 2.13 2.38
27-Oct-97 0 2.63 2.13 2.38
24-Oct-97 0 2.69 2.25 2.47
23-Oct-97 100 2.38 2.38 2.38
22-Oct-97 0 2.69 2.38 2.53
21-Oct-97 0 2.75 2.50 2.63
20-Oct-97 0 2.63 2.38 2.50
17-Oct-97 0 2.63 2.38 2.50
16-Oct-97 500 2.50 2.50 2.50
15-Oct-97 1,200 2.50 2.50 2.50
14-Oct-97 0 2.75 2.50 2.63
13-Oct-97 0 2.75 2.50 2.63
10-Oct-97 0 2.75 2.44 2.59
09-Oct-97 0 2.75 2.44 2.59
08-Oct-97 5,600 2.69 2.63 2.63
07-Oct-97 200 2.56 2.56 2.56
06-Oct-97 0 2.75 2.50 2.63
03-Oct-97 0 2.75 2.50 2.63
02-Oct-97 0 2.81 2.44 2.63
01-Oct-97 200 2.63 2.63 2.63
30-Sep-97 4,100 2.75 2.50 2.75
29-Sep-97 0 2.63 2.38 2.50
26-Sep-97 8,900 2.50 2.50 2.50
25-Sep-97 0 2.69 2.50 2.59
24-Sep-97 0 2.75 2.50 2.63
23-Sep-97 200 2.50 2.50 2.50
22-Sep-97 0 2.75 2.50 2.63
19-Sep-97 0 2.81 2.44 2.63
18-Sep-97 0 2.75 2.50 2.63
17-Sep-97 1,300 2.75 2.63 2.63
16-Sep-97 0 2.81 2.63 2.72
</TABLE>
J.C. Bradford & Co.
<PAGE> 90
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
15-Sep-97 0 2.75 2.56 2.66
12-Sep-97 0 2.94 2.56 2.75
11-Sep-97 20,000 2.69 2.63 2.69
10-Sep-97 2,800 2.63 2.44 2.63
09-Sep-97 0 2.69 2.50 2.59
08-Sep-97 1,000 2.63 2.63 2.63
05-Sep-97 300 2.50 2.50 2.50
04-Sep-97 2,000 2.56 2.56 2.56
03-Sep-97 2,200 2.69 2.69 2.69
02-Sep-97 0 2.75 2.50 2.63
29-Aug-97 2,300 2.63 2.38 2.63
28-Aug-97 0 2.63 2.31 2.47
27-Aug-97 0 2.69 2.13 2.41
26-Aug-97 0 2.63 2.38 2.50
25-Aug-97 0 2.63 2.31 2.47
22-Aug-97 900 2.50 2.50 2.50
21-Aug-97 0 2.69 2.44 2.56
20-Aug-97 0 2.69 2.44 2.56
19-Aug-97 0 2.69 2.50 2.59
18-Aug-97 0 2.75 2.50 2.63
15-Aug-97 0 2.75 2.44 2.59
14-Aug-97 0 2.69 2.50 2.59
13-Aug-97 0 2.69 2.44 2.56
12-Aug-97 100 2.63 2.63 2.63
11-Aug-97 0 2.69 2.50 2.59
08-Aug-97 0 2.75 2.50 2.63
07-Aug-97 500 2.63 2.63 2.63
06-Aug-97 14,100 2.63 2.63 2.63
05-Aug-97 0 2.94 2.56 2.75
04-Aug-97 0 2.75 2.50 2.63
01-Aug-97 600 2.63 2.63 2.63
</TABLE>
J.C. Bradford & Co.
<PAGE> 91
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
31-Jul-97 1,400 2.63 2.63 2.63
30-Jul-97 0 2.81 2.50 2.66
29-Jul-97 600 2.69 2.69 2.69
28-Jul-97 500 2.75 2.75 2.75
25-Jul-97 900 2.81 2.81 2.81
24-Jul-97 5,800 2.94 2.94 2.94
23-Jul-97 900 2.69 2.63 2.69
22-Jul-97 400 2.31 2.31 2.31
21-Jul-97 0 2.50 2.25 2.38
18-Jul-97 100 2.31 2.31 2.31
17-Jul-97 100 2.31 2.31 2.31
16-Jul-97 0 2.50 2.31 2.41
15-Jul-97 10,700 2.31 2.13 2.25
14-Jul-97 500 2.19 2.19 2.19
11-Jul-97 100 2.31 2.31 2.31
10-Jul-97 0 2.44 2.06 2.25
09-Jul-97 0 2.50 2.00 2.25
08-Jul-97 0 2.44 2.13 2.28
07-Jul-97 500 2.38 2.31 2.31
03-Jul-97 0 2.63 2.13 2.38
02-Jul-97 4,000 2.44 2.44 2.44
01-Jul-97 2,000 2.31 2.31 2.31
30-Jun-97 200 2.31 2.31 2.31
27-Jun-97 0 2.69 2.31 2.50
26-Jun-97 0 2.56 2.31 2.44
25-Jun-97 1,600 2.31 2.31 2.31
24-Jun-97 1,600 2.44 2.31 2.31
23-Jun-97 300 2.44 2.38 2.38
20-Jun-97 1,100 2.44 2.38 2.44
19-Jun-97 0 2.44 2.19 2.31
18-Jun-97 0 2.50 2.19 2.34
</TABLE>
J.C. Bradford & Co.
<PAGE> 92
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
17-Jun-97 100 2.13 2.13 2.13
16-Jun-97 0 2.63 2.13 2.38
13-Jun-97 5,400 2.25 2.25 2.25
12-Jun-97 0 2.44 2.13 2.28
11-Jun-97 0 2.44 2.13 2.28
10-Jun-97 0 2.50 2.13 2.31
09-Jun-97 15,000 2.25 2.25 2.25
06-Jun-97 10,000 2.13 2.13 2.13
05-Jun-97 0 2.31 2.13 2.22
04-Jun-97 100 2.13 2.13 2.13
03-Jun-97 3,100 2.13 2.13 2.13
02-Jun-97 0 2.25 2.06 2.16
30-May-97 0 2.25 2.06 2.16
29-May-97 15,800 2.19 2.19 2.19
28-May-97 3,500 2.06 2.00 2.06
27-May-97 1,400 2.06 2.06 2.06
23-May-97 2,200 2.13 2.06 2.06
22-May-97 200 2.19 2.19 2.19
21-May-97 23,900 2.19 2.13 2.19
20-May-97 25,500 2.13 2.00 2.13
19-May-97 1,500 1.75 1.56 1.75
16-May-97 0 1.75 1.50 1.63
15-May-97 400 1.56 1.56 1.56
14-May-97 100 1.56 1.56 1.56
13-May-97 0 1.69 1.56 1.63
12-May-97 100 1.56 1.56 1.56
09-May-97 500 1.56 1.56 1.56
08-May-97 200 1.63 1.63 1.63
07-May-97 100 1.63 1.63 1.63
06-May-97 100 1.63 1.63 1.63
05-May-97 0 1.75 1.31 1.53
</TABLE>
J.C. Bradford & Co.
<PAGE> 93
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
02-May-97 0 1.75 1.31 1.53
01-May-97 1,000 1.69 1.63 1.69
30-Apr-97 3,400 1.69 1.63 1.69
29-Apr-97 1,700 1.69 1.56 1.69
28-Apr-97 0 1.69 1.50 1.59
25-Apr-97 0 1.75 1.50 1.63
24-Apr-97 500 1.56 1.56 1.56
23-Apr-97 0 1.88 1.56 1.72
22-Apr-97 0 1.69 1.56 1.63
21-Apr-97 0 1.69 1.50 1.59
18-Apr-97 1,200 1.56 1.56 1.56
17-Apr-97 3,500 1.81 1.63 1.63
16-Apr-97 0 1.81 1.69 1.75
15-Apr-97 0 1.81 1.69 1.75
14-Apr-97 200 1.69 1.69 1.69
11-Apr-97 0 1.81 1.56 1.69
10-Apr-97 0 1.81 1.69 1.75
09-Apr-97 0 1.88 1.56 1.72
08-Apr-97 0 1.81 1.63 1.72
07-Apr-97 800 1.75 1.75 1.75
04-Apr-97 200 1.75 1.75 1.75
03-Apr-97 2,000 1.75 1.75 1.75
02-Apr-97 1,000 1.81 1.75 1.75
01-Apr-97 0 1.81 1.69 1.75
31-Mar-97 3,000 1.81 1.81 1.81
27-Mar-97 800 1.69 1.69 1.69
26-Mar-97 0 1.81 1.69 1.75
25-Mar-97 700 1.75 1.69 1.69
24-Mar-97 0 1.94 1.75 1.84
21-Mar-97 500 1.69 1.69 1.69
20-Mar-97 0 1.88 1.69 1.78
</TABLE>
J.C. Bradford & Co.
<PAGE> 94
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
19-Mar-97 0 1.94 1.69 1.81
18-Mar-97 1,100 1.69 1.69 1.69
17-Mar-97 400 1.75 1.69 1.75
14-Mar-97 2,300 1.75 1.75 1.75
13-Mar-97 0 1.88 1.69 1.78
12-Mar-97 500 1.75 1.75 1.75
11-Mar-97 0 1.94 1.69 1.81
10-Mar-97 1,500 1.88 1.81 1.81
07-Mar-97 0 2.06 1.88 1.97
06-Mar-97 1,800 2.00 2.00 2.00
05-Mar-97 200 1.88 1.88 1.88
04-Mar-97 13,200 1.94 1.75 1.94
03-Mar-97 3,000 1.94 1.94 1.94
28-Feb-97 17,500 1.88 1.81 1.88
27-Feb-97 1,400 1.88 1.81 1.81
26-Feb-97 0 1.88 1.69 1.78
25-Feb-97 300 1.75 1.75 1.75
24-Feb-97 5,000 1.88 1.75 1.88
21-Feb-97 0 1.88 1.69 1.78
20-Feb-97 5,200 1.81 1.75 1.75
19-Feb-97 0 1.88 1.69 1.78
18-Feb-97 5,500 1.81 1.75 1.75
14-Feb-97 0 1.94 1.69 1.81
13-Feb-97 5,000 1.88 1.88 1.88
12-Feb-97 0 1.88 1.69 1.78
11-Feb-97 1,400 1.75 1.75 1.75
10-Feb-97 1,300 1.81 1.75 1.75
07-Feb-97 1,400 1.69 1.69 1.69
06-Feb-97 0 1.75 1.56 1.66
05-Feb-97 10,200 1.63 1.56 1.63
04-Feb-97 0 1.75 1.50 1.63
</TABLE>
J.C. Bradford & Co.
<PAGE> 95
INVESTMENT BANKING GROUP
CLASS B
DAILY PRICE AND VOLUME SINCE 1/1/97
<TABLE>
<CAPTION>
DATE VOLUME HIGH LOW CLOSE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
03-Feb-97 900 1.63 1.63 1.63
31-Jan-97 3,500 1.75 1.63 1.75
30-Jan-97 4,200 1.69 1.56 1.69
29-Jan-97 1,100 1.69 1.69 1.69
28-Jan-97 100 1.69 1.69 1.69
27-Jan-97 0 1.75 1.63 1.69
24-Jan-97 0 1.75 1.63 1.69
23-Jan-97 0 1.75 1.56 1.66
22-Jan-97 2,500 1.75 1.75 1.75
21-Jan-97 2,400 1.63 1.63 1.63
20-Jan-97 100 1.69 1.69 1.69
17-Jan-97 0 1.81 1.63 1.72
16-Jan-97 0 1.88 1.63 1.75
15-Jan-97 3,000 1.75 1.75 1.75
14-Jan-97 2,200 1.63 1.63 1.63
13-Jan-97 7,900 1.69 1.63 1.69
10-Jan-97 500 1.63 1.63 1.63
09-Jan-97 0 1.69 1.56 1.63
08-Jan-97 4,100 1.69 1.69 1.69
07-Jan-97 0 1.88 1.75 1.81
06-Jan-97 0 1.94 1.75 1.84
03-Jan-97 2,100 1.88 1.75 1.88
02-Jan-97 0 1.94 1.69 1.81
------------------------------------------------------------------
AVERAGE 1,267 $2.72 $2.56 $2.64
==================================================================
</TABLE>
J.C. Bradford & Co.
<PAGE> 96
TRADING AND EQUITY ANALYSIS
MARKET VALUE OF EQUITY AS A PERCENTAGE OF BOOK VALUE OF EQUITY
QUARTERLY SINCE FEBRUARY 1996
[GRAPH]
30 J.C. Bradford & Co.
<PAGE> 97
TRADING AND EQUITY ANALYSIS
TOTAL CAPITALIZATION TO EBIT
QUARTERLY SINCE FEBRUARY 1996
[GRAPH]
31 J.C. Bradford & Co.
<PAGE> 98
TRADING AND EQUITY ANALYSIS
TOTAL CAPITALIZATION TO EBITDA
QUARTERLY SINCE FEBRUARY 1996
[GRAPH]
32 J.C. Bradford & Co.
<PAGE> 99
TRADING AND EQUITY ANALYSIS
MONTHLY CHANGE IN PRICE
SINCE 12/1/97
<TABLE>
<CAPTION>
DEC-97 JAN-98 FEB-98 MAR-98 APR-98 MAY-98 JUN-98 JUL-98 AUG-98 SEP-98 OCT-98 NOV-98
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods - Class A 1.20% 9.52% 26.09% (3.45%) 1.79% (4.92%) (1.82%) 0.00% (14.81%) 6.82% (3.19%) 3.30%
United Foods - Class B 4.76% 9.09% 20.83% (5.17%) 0.00% 0.00% 0.00% (7.14%) (9.62%) 6.67% (4.17%) 4.35%
S&P 500 (0.45%) 1.02% 7.04% 4.99% 0.32% (2.69%) 3.93% (2.43%) (14.58%) 2.29% (3.01%) 11.38%
Russell 2000 0.66% (1.59%) 7.39% 4.08% (0.42%) (5.84%) 1.38% (8.72%) (19.49%) 4.45% (3.73%) 8.03%
</TABLE>
<TABLE>
<CAPTION>
AVERAGE
-------
<S> <C>
United Foods - Class A 1.71%
United Foods - Class B 1.63%
S&P 500 0.65%
Russell 2000 (1.15%)
</TABLE>
UNITED FOODS CLASS A AND CLASS B VS. S&P 500 AND RUSSELL 2000 INDEX
[GRAPH]
33 J.C. Bradford & Co.
<PAGE> 100
TRADING AND EQUITY ANALYSIS
SELECTED FINANCIAL DATA
SINCE 1989
(in 000s, except per share data and ratios)
<TABLE>
<CAPTION>
1989 1990 1991 (3) 1992 1993 1994 1995
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Combined Sales (Adjusted) $157,286 $168,935 $171,145 $154,368 $156,318 $175,796 $190,256
Sales (Frozen Foods) 115,222 123,919 125,540 113,941 116,399 133,617 139,988
Sales (Mushrooms) 34,569 36,855 37,337 40,347 40,207 42,559 50,669
Combined EBITDA (1) 9,340 19,818 16,599 10,918 9,018 9,291 13,621
% of Sales 5.94% 11.73% 9.70% 7.07% 5.77% 5.29% 7.16%
EBITDA (Frozen Foods) 11,988 17,532 17,761 16,120 4,629 10,799 10,849
% of Sales 10.40% 14.15% 14.15% 14.15% 3.98% 8.08% 7.75%
EBITDA (Mushrooms) 4,261 4,171 4,226 4,566 4,120 4,670 8,945
% of Sales 12.33% 11.32% 11.32% 11.32% 10.25% 10.97% 17.65%
Net Income (1,153) 8,411 5,799 35 (2,116) 90 2,402
EPS (0.09) 0.63 0.44 -- (0.16) 0.01 0.19
Shares Outstanding 12,724 12,755 12,855 12,871 12,871 12,871 11,798
Book Value 44,776 53,225 56,417 59,645 57,529 57,619 57,440
Highest Stock Price During LTM 3.75 3.25 2.38 2.00 1.94 2.50 2.63
Lowest Stock Price During LTM 1.25 1.50 1.25 1.38 1.50 1.50 1.50
Equity Value (Highest Price) 47,715 41,454 30,531 25,742 24,938 32,178 30,970
Equity Value (Lowest Price) 15,905 19,133 16,069 17,698 19,307 19,307 17,697
Highest Price/Earnings - LTM NM x 5.16 x 5.40 x NM x NM x 250.00 x 13.82 x
Lowest Price/Earnings - LTM NM 2.38 2.84 NM NM 150.00 7.89
Highest Price/Earnings - Forward 5.95 7.39 NM NM 193.75 13.16 NM
Lowest Price/Earnings - Forward 1.98 3.41 NM NM 150.00 7.89 NM
Equity Value (Highest Price)/Book Value - LTM 1.07 0.78 0.54 0.43 0.43 0.56 0.54
Equity Value (Lowest Price)/Book Value - LTM 0.36 0.36 0.28 0.30 0.34 0.34 0.31
</TABLE>
<TABLE>
<CAPTION>
1996 1997 1998
--------------------------------------
<S> <C> <C> <C>
Combined Sales (Adjusted) $191,714 $195,820 $195,087
Sales (Frozen Foods) 145,288 152,494 152,076
Sales (Mushrooms) 48,174 44,242 44,684
Combined EBITDA (1) 10,276 12,531 12,127
% of Sales 5.36% 6.40% 6.22%
EBITDA (Frozen Foods) 12,272 16,740 18,185
% of Sales 8.45% 10.98% 11.96%
EBITDA (Mushrooms) 9,553 2,224 5,927
% of Sales 19.83% 5.03% 13.26%
Net Income (660) 922 460
EPS (0.06) 0.08 0.06
Shares Outstanding 10,810 10,810 6,810
Book Value 54,534 55,456 45,748
Highest Stock Price During LTM 2.25 3.00 4.00
Lowest Stock Price During LTM 1.38 1.38 2.31
Equity Value (Highest Price) 24,323 32,430 27,240
Equity Value (Lowest Price) 14,864 14,864 15,748
Highest Price/Earnings - LTM NM x 37.50 x 66.67 x
Lowest Price/Earnings - LTM NM 17.19 38.54
Highest Price/Earnings - Forward 28.13 50.00 NM
Lowest Price/Earnings - Forward 17.19 22.92 NM
Equity Value (Highest Price)/Book Value - LTM 0.45 0.58 0.60
Equity Value (Lowest Price)/Book Value - LTM 0.27 0.27 0.34
</TABLE>
(1) Combined EBITDA includes Corporate Loss
(2) Includes reduction of income taxes from carryforward of prior year
operating losses.
(3) 1991 Sales and EBITDA are estimated as a percent of sales because company
financials do not break out mushrooms and frozen foods.
34 J.C. Bradford & Co.
<PAGE> 101
LIQUIDATION ANALYSIS
LIQUIDATION VALUE
BASED ON AUGUST 31, 1998 BALANCE SHEET
<TABLE>
<CAPTION>
Actual Management Theoretical
------ ---------- -----------
<S> <C> <C> <C>
ASSETS
Cash $ 627 $ 627 $ 627
Accounts Receivable 15,185 14,426 14,426
Inventories
Finished Product 34,388 17,194 22,352
Raw Material 1,168 292 759
Growing Crops 3,105 -- --
Packaging Materials 1,517 -- --
Sundry Supplies 722 -- --
Prepaid Expenses 3,002 -- --
Refundable Taxes 594 594 594
Deferred Income Taxes 1,249 -- --
Net PP&E 53,023 43,000 43,000
Other assets
Notes & Accounts Receivable 53 53 53
Deferred Charges & Other Assets 656 -- --
Property & Equipment Held For 804 804 804
Disposal, Est. Realiz. Value
Total Assets 116,093 76,990 82,615
======== ======= =======
LIABILITIES
Current Liabilities
Notes Payable to Banks and Others -- -- --
Accounts Payable 15,083 15,083 15,083
Accrued Liabilities 7,246 7,246 7,246
Accrued (Prepaid) Burden 178 178 178
Income Taxes Payable 109 109 109
Deferred Income Taxes - Current -- -- --
Current Maturities of L-T-D 4,300 4,300 4,300
Long-term Debt Less Current Maturities 31,924 31,924 31,924
Long-term Revolving Loan 7,025 7,025 7,025
Deferred Income Taxes - Long-term 4,710 -- --
Total Liabilities 70,575 65,865 65,865
-------- ------- -------
Equity 45,518 11,125 16,750
======== ======= =======
Shares Outstanding 6,810 6,810 6,810
------------------------------
Book Value Per Share $ 6.68 $ 1.63 $ 2.46
------------------------------
</TABLE>
35 J.C. Bradford & Co.
<PAGE> 1
Exhibit 17(b)(8)
Information for:
Special Committee of the Board of Directors of
[UNITED FOODS LOGO]
November 18, 1998
[J.C. Bradford & Co. LOGO]
330 Commerce Street
Nashville, TN 37201
(800)522-4750
<PAGE> 2
Table of Contents
I. Chronology of Negotiations
II. Tankersley Group's Arguments Supporting Fairness of $3.00 per
Share Offer
III. Counter Arguments
<PAGE> 3
Chronology of Negotiations
Outline of Meetings with James Tankersley
Negotiation Meeting I with James Tankersley
Date: October 20, 1998
Location: United Foods, Inc. (Bells, TN)
Attendees: United Foods, Inc. - James Tankersley
Waring Cox - Sam Chafetz
Doramus, Trauger & Ney - Byron Trauger
Anne Arney
J.C. Bradford & Co. - Breck Walker
Forrest Shoaf
Eb LeMaster
Mark Trushel
1
<PAGE> 4
Chronology of Negotiations
Negotiation Meeting II with James Tankersley
Date: October 27, 1998
Location: J.C. Bradford & Co. (Nashville, TN)
Attendees: United Foods, Inc. - James Tankersley
Waring Cox - Sam Chafetz
Doramus, Trauger & Ney - Byron Trauger
Anne Arney
J.C. Bradford & Co. - Breck Walker
Forrest Shoaf
Mindy Menzel
Eb LeMaster
Mark Trushel
2
<PAGE> 5
Chronology of Negotiations
Negotiation Meeting III with James Tankersley
Date: November 3, 1998
Location: J.C. Bradford & Co. (Nashville, TN)
Attendees: United Foods, Inc. - James Tankersley
Waring Cox - Sam Chafetz
Doramus, Trauger & Ney - Byron Trauger
Anne Arney
J.C. Bradford & Co. - Breck Walker
Forrest Shoaf
Eb LeMaster
Mark Trushel
Jeremy Gunther
3
<PAGE> 6
Arguments for Fairness of $3.00 Per Share Offer
Tankersley Group's Arguments Supporting Fairness of the $3.00/share offer
- - Poor Industry Dynamics Imply Little Future Growth and Increasing
Competition
The frozen food processing segment is hampered by overcapacity. In
addition, the Company's customers continue to consolidate and gain
additional leverage in terms of negotiating prices and services
demanded. At the same time, the Company's competitors are consolidating
and potentially have greater economies of scale, broader geographic
coverage and a broader range of products. The net result of these
trends is that a no growth scenario is reasonable, and capital
expenditures need to remain at historically high levels in order to
remain competitive. A discounted cash flow analysis based on these
assumptions yields a share price well below $3.00 per share.
- - Willing Seller and Buyer
Daniel Tankersley, who is very familiar with the Company, its
operations, competitive position and future potential, is willing to
sell his shares to the Company at $3.00 per share. He has no reason to
accept a sub-market price, and his acceptance validates the price.
4
<PAGE> 7
Arguments for Fairness of $3.00 Per Share Offer
Tankersley Group's Arguments Supporting Fairness of the $3.00/share offer
- - 20% Premium to Market at Time of Offer
$3.00 per share represented a 20% premium to the closing stock price
for the prior day.
- - Current Market Price Supports $3.00 Offer
Although the stock is thinly traded, arbitrageurs and other speculators
have not moved the stock price up despite the offer.
- - Significant Stock Transactions in the Recent Past
In July of 1997, the Company completed a tender offer for 2.5 million
shares of the Class A stock and 1.5 million shares of the Class B
stock, each priced at $2.50 per share. The original cash tender offer
was for one million Class A and one million Class B shares, but due to
demand, the size was increased. In addition, the BouPost Group, an
institutional investor, sold one million shares to the Company at $2.25
per share three years ago.
5
<PAGE> 8
Arguments for Fairness of $3.00 Per Share Offer
Tankersley Group's Arguments Supporting Fairness of the $3.00/share offer
- - AgriLink Transaction Supports Implied United Foods Multiples
AgriLink paid a total consideration of $473 million for the Dean Foods
Vegetable Company from Dean Foods (transaction closed September 24,
1998), implying an EBITDA/enterprise value of 8.0 times. However, the
Birds Eye brand and Dean's Freshlike and VegAll brands are worth
considerably more than United Foods' brands. In fact, based on one
source's appraisal of the Birds Eye brand at $235 million, the
enterprise value of the Dean Foods transaction, less the value of the
Birds Eye brand, is actually 3.8 times trailing EBITDA, without
considering any synergies. Also, Agrilink's aseptic foods business that
was part of the consideration paid was valued at 4.7 times EBITDA. Both
of these multiples are lower than the 4.9 times EBITDA being offered by
the Tankersley group, and regardless of brand value, applying the
transaction's EBIT multiple yields a price for United Food's stock
below $3.00. Furthermore, no other transactions are even arguably
comparable.
6
<PAGE> 9
Arguments for Fairness of $3.00 Per Share Offer
Tankersley Group's Arguments Supporting Fairness of the $3.00/share offer
- - No Financial Buyers for the Company / Liquidation Analysis
The Tankersley group believes that there are no potential financial
buyers for the Company, and if the assets were liquidated, the Company
would be worth less than $3.00 per share based on reasonable discounts
on inventory, receivables, fixed assets and other assets.
- - Illiquidity Discount
An illiquidity discount should be taken into account in assessing
fairness and in that sense the comparable companies are not comparable
and the analysis is not relevant.
- - The Market
The market at the present time represents the best indication of fair
value. Recent higher prices and multiples should not be taken into
account.
- - Litigation risk
Litigation risk is minimal, and potential damages are inconsequential.
7
<PAGE> 10
Counter Arguments
Counter Arguments
- - Stock Price Levels during 1998
During calendar 1998, United Foods' Class A and Class B shares have
traded at or above $3.00 per share 63% and 70%, respectively, of the
days when there was trading volume. In addition, the stock traded as
high as $3.875 per share in February of 1998.
- - Traditional Mergers and Acquisitions Premiums
Since January 1, 1996, all-cash acquisitions of public companies have
typically been completed at premiums of 36%-42% relative to the
targets' stock prices prior to the announcement of the offers. The
$3.00 offer represents a 20% premium based on the stock's price one day
before announcement. Based on the 36-42% range and prices one week and
one month before the offer, the implied valuation ranges from $3.59 to
$4.19 per share for the Class A shares and from $3.83 to $4.28 per
share for the Class B shares.
8
<PAGE> 11
Counter Arguments
Counter Arguments
- - Book Value Considerations
Based on the current offer, the company is valued at below 50% of its
book value. Companies are rarely sold for such a discount to book
value; furthermore, the comparable company group trades at 2.1 times
book value.
- - Historical and Comparable Company EBITDA Multiples
For the most recent 6 quarters, the Company's total market
capitalization has traded on average at 5.2 times LTM earnings before
interest, taxes, depreciation and amortization (EBITDA). Based on the
current offer, the total capitalization of the Company represents 4.9
times LTM EBITDA, and is well below the comparable company average of
8.6 times LTM EBITDA
9
<PAGE> 12
Counter Arguments
Counter Arguments
- - Market Conditions
The offer was made on September 16, 1998 when small capitalization
stock prices were very weak relative to levels earlier in the calendar
year. As of market close on the day the offer was announced, the
Russell 2000 was down 27% from its 1998 high, and United Foods shares
were down 35% from 1998 highs for both classes of stock.
- - Discounted Cash Flow Analysis
A discounted cash flow based on the following yields a price in excess
of $3.00:
- Modest growth in EBITDA in the future (2.5% annually)
- Reduced capital expenditures
and/or
Add backs related to costs that could be potentially be
reduced by an outside acquirer
10
<PAGE> 13
Information for:
Special Committee of the Board of Directors of
[UNITED FOODS Logo]
November 18, 1998
[J.C. BRADFORD & CO. Logo]
330 Commerce Street
Nashville, TN 37201
(800)522-4750
<PAGE> 14
Table of Contents
United Foods Valuation
I. Comparable Company Analysis
II. Comparable Transaction Analysis
III. Discounted Cash Flow Analysis
IV. Premium Analysis
V. Stock Price Analysis
VI. Trading and Equity Analysis
VII. Liquidation Analysis
<PAGE> 15
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Comparable Company Summary Valuation
Overall Adjusted Average Multiples
(In thousands)
Price to Trailing Earnings Multiple Basis:
<TABLE>
<S> <C> <C>
LTM earnings ended 8/31/98 $ 779
Adjusted Average Multiple 18.49 x
--------
Valuation $ 14,402
Valuation per Share(1) $ 2.11
</TABLE>
LTM EBITDA Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBITDA ended 8/31/98 $ 12,842
Adjusted Average Multiple 8.22 x
--------
105,548
Less total debt, net of cash 8/31/98 42,622
--------
Valuation $ 62,926
Valuation per Share(1) $ 9.24
</TABLE>
Price to Calendar 1998 Earnings Multiple Basis:
<TABLE>
<S> <C> <C>
Estimated earnings ended 12/31/98 $ 843
Adjusted Average Multiple 17.80 x
--------
Valuation $ 15,011
Valuation per Share(1) $ 2.20
</TABLE>
Price to Calendar 1999 Earnings Multiple Basis:(2)
<TABLE>
<S> <C> <C>
Estimated earnings ended 12/31/99 $ 752
Adjusted Average Multiple 14.49 x
--------
Valuation $ 10,900
Valuation per Share(1) $ 1.60
</TABLE>
Equity to Book Value Multiple Basis:
<TABLE>
<S> <C> <C>
Estimated book value 8/31/98 $ 45,518
Adjusted Average Multiple 2.10 x
--------
Valuation $ 95,660
Valuation per Share(1) $ 14.05
</TABLE>
(1) Based on 6.8 million shares outstanding.
(2) Based on 0% growth, base case projection.
At an offer price of $3.00, United Foods is trading below 92% of companies in
comparable group as a multiple of EBITDA and is trading below all comparable
companies as a multiple of book value.
United Foods is trading above all comparable companies as a multiple of LTM EPS,
Calendar 1998 EPS, and Calendar 1999 EPS.
1
<PAGE> 16
Comparable Company Analysis
Price to Calendar 1999 Earnings Multiple Basis:
Valuation Per Share (1)
Adjusted Average Multiple 14.49x
<TABLE>
<CAPTION>
Projected No Expenses $500,000 of $750,000 of $1,000,000 of
Growth Rate Added Back Cost Savings Cost Savings Cost Savings
<S> <C> <C> <C> <C>
0.0% $1.60 $2.15 $2.43 $2.70
2.5% $1.96 $2.51 $2.78 $3.06
5.0% $2.30 $2.86 $3.14 $3.41
</TABLE>
(1) Based on 6.8 million shares outstanding.
2
<PAGE> 17
Comparable Company Analysis
LTM EBITDA Multiple Basis:
Valuation Per Share (1)
Current Offer EBITDA Multiple 4.9x
<TABLE>
<CAPTION>
No Expenses $500,000 of $750,000 of $1,000,000 of
Added Back Cost Savings Cost Savings Cost Savings
----------- ------------ ------------ -------------
<S> <C> <C> <C>
$3.00 $3.36 $3.54 $3.72
</TABLE>
(1) Based on 6.8 million shares outstanding.
3
<PAGE> 18
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Comparable Company Market Multiples
<TABLE>
<CAPTION>
5-Year
LTM LTM Cal. 1998 Cal. 1999 Projected 52 Week
Company Ticker End EPS Est. EPS Est. EPS(1) Growth Rate High Low
<S> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods UFD.A Aug 98 0.09 0.09 0.09 NA 4.00 2.19
Chiquita Brands Intl CQB Sep 98 $(0.06) $0.81 $1.10 10.0% $ 17.88 $ 9.50
Dean Foods Co. DF Aug 98 2.62 2.64 2.92 13.8% 60.69 41.00
Fresh America Corp. FRES Jul 98 1.24 1.59 1.96 25.0% 27.88 9.50
Hanover Foods Corp. 3HNFSA Aug 98 11.74 NA NA NA 100.00 43.50
Mccormick & Co. MCCRK Aug 98 1.37 1.47 1.64 9.5% 36.44 24.50
Michael Foods, Inc. MIKL(2) Sep 98 1.78 1.83 2.05 12.0% 31.13 19.75
Performance Food Group Co. PFGC Sep 98 1.15 1.23 1.47 20.0% 25.50 15.63
Seneca Foods Corp. SENEB Sep 98 (1.33) NA NA NA 18.50 11.88
Smithfield Companies, Inc. HAMS Jun 98 0.46 NA NA NA 8.25 5.38
Smucker (Jm) Co. SJM.A Jul 98 1.26 1.30 1.44 NA 28.19 20.63
Sylvan, Inc. SYLN Sep 98 1.03 1.04 1.25 15.0% 18.75 11.75
Tyson Foods, Inc. TSN Jun 98 0.73 0.93 1.41 12.0% 26.00 16.31
Vlasic Foods International VL Jul 98 0.51 0.74 1.14 12.0% 27.00 13.69
<CAPTION>
Based on closing stock price as of 11/13/98
--------------------------------------------------
Price/ Price/ Cal. 1998 Cal. 1999
Price Price/ Cal. 1998 Cal. 1999 PE / PE /
Company per Share LTM EPS Est. EPS Est. EPS Growth Rate Growth Rate
<S> <C> <C> <C> <C> <C> <C>
United Foods 3.00 33.3 33.3 33.4 NM NM
Chiquita Brands Intl $11.50 NM x 14.2 x 10.5 x 142.0% 104.5%
Dean Foods Co. 45.75 17.5 17.3 15.7 125.6% 113.5%
Fresh America Corp. 14.38 11.6 9.1 7.3 36.2% 29.3%
Hanover Foods Corp. 57.00 4.9 NA NA NM NM
Mccormick & Co. 33.94 24.8 23.0 20.6 242.4% 217.3%
Michael Foods, Inc. 24.88 14.0 13.6 12.1 113.3% 101.1%
Performance Food Group Co. 24.63 21.4 20.0 16.8 100.1% 83.9%
Seneca Foods Corp. 13.00 NM NA NA NM NM
Smithfield Companies, Inc. 7.13 15.5 NA NA NM NM
Smucker (Jm) Co. 22.88 18.2 17.6 15.9 NM NM
Sylvan, Inc. 13.00 12.6 12.5 10.4 83.3% 69.3%
Tyson Foods, Inc. 22.56 30.9 24.1 16.0 201.2% 133.6%
Vlasic Foods International 21.31 41.8 28.7 18.6 239.2% 155.1%
Median: 17.5 x 17.5 x 15.8 x 125.6% 104.5%
Average: 19.4 18.0 14.4 142.6% 112.0%
Adjusted Average (excludes high and low): 18.5 17.8 14.5 143.5% 108.7%
</TABLE>
(1) When calendar 1999 EPS Multiple is not available it is approximated using
company's 5-year projected growth rate.
(2) MIKL LTM EPS excludes $0.11/sh losses from extraordinary items.
4
<PAGE> 19
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Comparable Company Market Capitalization Multiples
<TABLE>
<CAPTION>
Total Total
11/13/98 Number of Total Debt, Market
Company Ticker Price Shares Equity Net of Cash Capital
<S> <C> <C> <C> <C> <C> <C>
United Foods UFD.A 3.00 6,810 20,430 42,622 63,052
Chiquita Brands Intl CQB $11.50 65,369 $ 751,744 987,630 $1,739,374
Dean Foods Co. DF(1) 45.75 39,970 1,828,628 544,060 2,372,687
Fresh America Corp. FRES 14.38 4,864 69,920 20,480 90,400
Hanover Foods Corp. 3HNFSA 57.00 717 40,875 41,653 82,528
Mccormick & Co. MCCRK 33.94 73,404 2,491,148 503,410 2,994,558
Michael Foods, Inc. MIKL(2) 24.88 21,963 546,330 136,808 683,138
Performance Food Group Co. PFGC 24.63 12,581 309,808 68,509 378,317
Seneca Foods Corp. SENEB 13.00 5,985 77,799 253,292 331,091
Smithfield Companies, Inc. HAMS 7.13 2,343 16,694 (6,820) 9,874
Smucker (Jm) Co. SJM.A(3) 22.88 29,127 666,280 (7,052) 659,228
Sylvan, Inc. SYLN 13.00 6,392 83,102 28,875 111,977
Tyson Foods, Inc. TSN 22.56 231,154 5,215,412 2,066,600 7,282,012
Vlasic Foods International VL 21.31 45,455 968,760 561,747 1,530,506
<CAPTION>
(In thousands)
Market Equity/
Book LTM LTM Cap./ Book
Company Value EBIT EBITDA EBITDA Value
<S> <C> <C> <C> <C> <C>
United Foods 45,518 5,443 12,842 4.9 0.45
Chiquita Brands Intl 921,147 $ 4,703 $227,954 7.6 x 0.82 x
Dean Foods Co. 687,639 3,142 239,662 9.9 2.66
Fresh America Corp. 40,191 908 12,153 7.4 1.74
Hanover Foods Corp. 56,687 0 22,080 3.7 0.72
Mccormick & Co. 360,637 3,662 242,604 12.3 6.91
Michael Foods, Inc. 248,840 12,750 107,638 6.3 2.20
Performance Food Group Co. 146,964 1,988 36,818 10.3 2.11
Seneca Foods Corp. 136,852 (4) 42,758 7.7 0.57
Smithfield Companies, Inc. 14,739 4 1,771 5.6 1.13
Smucker (Jm) Co. 305,945 683 77,583 8.5 2.18
Sylvan, Inc. 49,694 872 17,213 6.5 1.67
Tyson Foods, Inc. 2,069,200 (20,500) 635,300 11.5 2.52
Vlasic Foods International 106,604 (25,827) 111,355 13.7 9.09
Median: 7.7 x 2.11 x
Average: 8.6 2.64
Adjusted Average (excludes high and low): 8.2 2.10
</TABLE>
5
<PAGE> 20
Comparable Company Analysis
United Foods, Inc. grows, processes, markets and distributes food products.
The Company's products include frozen asparagus, black-eyed peas,
broccoli, Brussel sprouts, carrots, cauliflower, corn, green beans, green
peas, green peppers, lima beans, various vegetable mixes and other
vegetables. United's products are sold to large national grocery chains
and independent food stores.
United Foods, Inc.
Daily Price & Volume Trading Statistics Since 12/31/97
United Foods, Inc. - Class A
(CHART)
United Foods, Inc. - Class B
(CHART)
6
<PAGE> 21
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
Chiquita Brands Intl Dean Foods Co.
(CHART) (CHART)
Fresh America Corp. Hanover Foods Corp./Pa
(CHART) (CHART)
7
<PAGE> 22
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
Mccormick & Co. Michael Foods, Inc.
(CHART) (CHART)
Performance Food Group Co. Seneca Foods Corp. -Cl B
(CHART) (CHART)
8
<PAGE> 23
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
Smithfield Companies, Inc. Smucker (Jm) Co. -Cl A
(CHART) (CHART)
Sylvan, Inc. Tyson Foods, Inc. -Cl A
(CHART) (CHART)
9
<PAGE> 24
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
Vlasic Foods International
(CHART)
10
<PAGE> 25
Comparable Company Analysis
- - Description of Comparable Companies
Chiquita Brands International, Inc. produces, markets and distributes
bananas and other fresh and processed food products sold under the
"Chiquita" brand name. The Company's fresh products include mangoes,
kiwi and citrus and other tropical fruit. Chiquita also produces
private-label and branded canned vegetable and related products,
fruit and vegetable juices and other products.
Dean Foods Company processes, distributes and sell dairy, pickle,
specialty and vegetable products. Many of the Company's products are
sold under private labels. Dean's products include milk, ice cream
and extended shelf-life dairy products; salad dressings, dips and
puddings; and pickles, relishes and canned vegetables. The Company
also operates a trucking business.
Fresh America Corporation is an integrated food distribution management
company for fresh produce and other perishable refrigerated products.
The Company operates in 43 states and Canada through 22 distribution
centers. Fresh America operates produce departments in 342 "Sam's
Club" stores. "Sam's" is a division of Wal-Mart Stores, Inc.
Hanover Foods Corporation processes vegetable products. The Company
grows, processes, cans, freezes, freeze-dries, packages, markets and
distributes its products under its own trademarks, as well as other
branded, customer and private labels. Hanover operates in the United
States.
11
<PAGE> 26
Comparable Company Analysis
- - Description of Comparable Companies
McCormick & Company Incorporated is a specialty food company. The
Company manufactures spices, seasonings, flavorings, and other
specialty food products and sells such products to the retail food
market, the food service market and to industrial food processors
throughout the world. McCormick, through its subsidiaries, also
manufactures and markets plastic and packaging products.
Michael Foods, Inc. is a diversified food processor and distributor
with interests in eggs and egg products, refrigerated case products,
frozen and refrigerated potato products and dairy products. The
Company sells these items to supermarkets, food service distributors,
manufacturers and fast food operators in Minnesota and surrounding
states.
Performance Food Group Co. markets and distributes food and
food-related products to restaurants, hotels, cafeterias, schools and
hospitals in the United States. The Company's items include private
label food products, canned and dry groceries, poultry, meats,
seafood, fresh produce, paper and cleaning supplies and restaurant
equipment.
Seneca Foods Corporation is primarily a fruit and vegetable processing
company with manufacturing facilities located throughout the United
States. The Company's products are sold under the "Seneca,"
"Libby's," and "TreeSweet" labels, as well as through the private
label and industrial markets. Seneca also, under alliance with The
Pillsbury Company, produces canned and frozen vegetables.
12
<PAGE> 27
Comparable Company Analysis
- - Description of Comparable Companies
The Smithfield Companies, Inc. produces and markets a wide range of
branded food products to the retail grocery and food service
industries. The Company's products include frozen barbecues and
chilies, cured hams and other pork products, peanuts and cashews.
Smithfield's products are sold on a wholesale basis, through catalogs
and through its retail stores.
The J.M. Smucker Company manufactures and markets food products on a
worldwide basis. The Company's principal products include fruit
spreads, dessert toppings, peanut butter, industrial fruit products,
fruit and vegetable juices, juice beverages, syrups, condiments and
gift packages. Smucker's products are marketed under trademarks such
as "Smucker's," "Simply Fruit" and "Goober."
Sylvan Inc. produces and distributes mushroom spawn and fresh
mushrooms. The Company also distributes a variety of other
value-added products and services for use by mushroom growers and
produces fresh mushrooms for sale to retailers, distributors and
processors of mushroom products in the United States. Sylvan operates
in the United States, Europe and Australia.
Tyson Foods, Inc. produces, markets and distributes a variety of food
products. The Company's products include value-enhanced poultry,
fresh and frozen poultry, value-enhanced seafood products, fresh and
frozen seafood products, prepared foods and other products such as
flour and corn tortillas and chips. Tyson also has live swine, animal
feed and pet food ingredient operations.
13
<PAGE> 28
Comparable Company Analysis
- - Description of Comparable Companies
Vlasic Foods International manufactures and markets branded convenience
food products in the frozen food, grocery product, and agricultural
product segments. The Company's products include "Swanson" and
"Freshbake" frozen foods, "Vlasic" pickles and condiments, "Open Pit"
barbecue sauce, and other brands. Vlasic's products are sold in the
United States and other countries.
14
<PAGE> 29
Comparable Transaction Analysis
UNITED FOODS, INC.
Comparable Transaction Summary Valuation
Food Distribution Companies(*)
(In 000s, except per share)
<TABLE>
<CAPTION>
Price to Trailing Earnings Multiple Basis: LTM EBIT Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM earnings ended 8/31/98 $ 779 LTM EBIT ended 8/31/98 $ 5,443
Adjusted Average Multiple 23.9 x Adjusted Average Multiple 16.4 x
------- -------
Valuation $18,586 89,062
Valuation Per Share (1) $ 2.73 Less total debt, net of cash on 8/31/98 42,622
-------
Valuation $46,440
Valuation Per Share (1) $ 6.82
<CAPTION>
LTM EBITDA Multiple Basis: LTM Revenues Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM EBITDA ended 8/31/98 $ 12,842 LTM Revenues ended 8/31/98 $201,367
Adjusted Average Multiple 12.4 x Adjusted Average Multiple 1.1 x
-------- --------
159,571 215,279
Less total debt, net of cash on 8/31/98 42,622 Less total debt, net of cash on 8/31/98 42,622
-------- --------
Valuation $116,949 Valuation $172,657
Valuation Per Share (1) $ 17.17 Valuation Per Share (1) $ 25.35
</TABLE>
<TABLE>
<CAPTION>
Book Value Multiple Basis:
<S> <C>
Book Value at 8/31/98 $ 45,518
Adjusted Average Multiple 3.6 x
--------
Valuation $162,008
Valuation Per Share $ 23.79
</TABLE>
(1) Based on 6.8 million shares outstanding.
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
15
<PAGE> 30
Comparable Transaction Analysis
UNITED FOODS, INC.
Comparable Transaction Summary Valuation
Multiples Based on Agrilink Acquisition of Dean Foods Vegetable Division
(In 000s, except per share)
LTM Revenues Multiple Basis:
<TABLE>
<S> <C> <C>
LTM Revenues ended 8/31/98 $201,367
Transaction Multiple 0.8 x
--------
156,395
Less total debt, net of cash on 8/31/98 42,622
--------
Valuation $113,773
Valuation Per Share $ 16.71
</TABLE>
LTM EBIT Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBIT ended 8/31/98 $ 5,443
Transaction Multiple 11.4 x
--------
61,876
Less total debt, net of cash on 8/31/98 42,622
--------
Valuation $ 19,254
Valuation Per Share $ 2.83
</TABLE>
Book Value Multiple Basis:
<TABLE>
<S> <C> <C>
Book Value at 8/31/98 $ 45,518
Transaction Multiple 1.7 x
--------
Valuation 75,863
Valuation Per Share $ 11.14
</TABLE>
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
16
<PAGE> 31
Comparable Transaction Analysis
UNITED FOODS, INC.
Comparable Transaction Summary Valuation
Multiples Based on Agrilink Acquisition of Dean Foods Vegetable Division
(In 000s, except per share)
LTM EBIT Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBIT ended 8/31/98 $ 5,443
Plus $500,000 Cost Savings $ 500
-------
$ 5,943
Transaction Multiple 11.4 x
-------
67,560
Less total debt, net of cash on 8/31/98 42,622
-------
Valuation $24,938
Valuation Per Share $ 3.66
</TABLE>
LTM EBIT Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBIT ended 8/31/98 $ 5,443
Plus $750,000 Cost Savings $ 750
-------
$ 6,193
Transaction Multiple 11.4 x
-------
70,402
Less total debt, net of cash on 8/31/98 42,622
-------
Valuation $27,780
Valuation Per Share $ 4.08
</TABLE>
LTM EBIT Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBIT ended 8/31/98 $ 5,443
Plus $1,000,000 Cost Savings $ 1,000
-------
$ 6,443
Transaction Multiple 11.4 x
-------
73,244
Less total debt, net of cash on 8/31/98 42,622
-------
Valuation $30,622
Valuation Per Share $ 4.50
</TABLE>
17
<PAGE> 32
Comparable Transaction Analysis
FOOD DISTRIBUTION COMPANIES(*) (Dollars in millions)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
Aggreg. Levered
Equity Consid. Aggregate Consideration
Aggregate Levered as a Multiple of: as a Multiple of:
Equity Aggregate ----------------- --------------------------
Date Consider- Consider- LTM Net Book LTM LTM LTM Percent
Announced Acquiror / Target ation ation(2) Income Value Revenue EBITDA EBIT Acquired
- --------- ----------------- ----- -------- ------ ----- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
06/07/90 ConAgra Inc $1,336.0 $3,294.0 NM 1.5 0.8 6.9 9.6 100.0%
Beatrice Co
09/28/90 Shareholders $1,607.0 $1,607.0 73.4 2.0 0.9 5.5 6.7 100.0%
Pet Inc (Whitman Corp)
10/19/90 MANO Holdings $ 42.5 $ 42.5 17.0 3.0 1.2 8.5 10.1 100.0%
B Manischewitz Co
04/19/91 ConAgra Inc $ 408.4 $ 408.4 20.8 3.8 2.3 19.1 30.0 100.0%
Golden Valley Microwave Foods
07/18/91 HJ Heinz Co $ 500.0 $ 500.0 NA NA 1.1 NA NA 100.0%
JL Foods Inc (John Labatt Ltd)
12/20/91 CPC International Inc $ 115.0 $ 115.0 NA NA 1.2 NA NA 100.0%
Fearn Intl (Kellogg Co)
01/24/92 Burns Philp Inc $ 85.0 $ 85.0 NA NA 0.4 NA NA 100.0%
Durkee-French Foods (Burns)
04/09/92 Ben Hill Griffin Inc $ 31.0 $ 31.0 NM 0.7 0.5 NM NM 52.3%
Orange-co (Stoneridge Res Inc)
04/22/92 Shareholders $ 181.1 $ 181.1 9.2 2.4 0.2 NA 3.5 55.0%
Ralston-Continental Baking
10/12/92 Dean Foods Co $ 15.0 $ 15.0 NM 1.2 0.3 NM NM 100.0%
WB Roddenbery Co
08/12/93 Pro-Fac Cooperative Inc $ 164.2 $ 431.2 NM 2.0 0.5 20.5 NM 100.0%
Curtice-Burns Foods (Pro-Fac)
08/16/93 Shareholders $ 528.0 $ 528.0 NA NA 0.7 NA NA 100.0%
Ralcorp Holdings Inc (Ralston)
11/01/93 Dean Foods Co $ 140.0 $ 140.0 23.3 NA 0.6 NA NA 100.0%
Kraft General Foods-Birds Eye
</TABLE>
18
<PAGE> 33
Comparable Transaction Analysis
- --------------------------------------------------------------------------------
Food Distribution Companies* (Dollars in millions)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
Aggreg. Levered
Equity Consid. Aggregate Consideration
Aggregate Levered as a Multiple of: as a Multiple of:
Equity Aggregate ----------------- --------------------------
Date Consider- Consider- LTM Net Book LTM LTM LTM Percent
Announced Acquiror / Target ation ation(2) Income Value Revenue EBITDA EBIT Acquired
- --------- ----------------- ----- -------- ------ ----- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
03/18/94 Doskocil Cos Inc $ 135.0 $ 135.0 NA NA 0.7 NA NA 100.0%
Intl Multifoods-Prepared Foods
04/18/94 ConAgra Inc $ 202.0 $ 202.0 NA NA NA NA NA NA
Universal Foods-Frozen Foods
04/20/94 Schreiber Foods Inc $ 11.8 $ 11.8 16.9 2.8 0.6 5.6 10.7 100.0%
Arden International Kitchens
05/23/94 Sandoz AG $3,685.7 $3,685.7 32.3 10.1 3.1 16.3 20.0 100.0%
Gerber Products Co
09/12/94 Kohlberg Kravis Roberts & Co $2,222.9 $4,622.9 NM 8.6 0.8 NA 40.1 100.0%
Borden Inc
11/28/94 Campbell Soup Co $1,115.0 $1,115.0 24.8 18.3 4.8 23.7 26.3 100.0%
Pace Foods
01/09/95 Pillsbury Co (Grand Met PLC) $2,636.5 $2,636.5 23.4 7.3 1.7 10.0 12.2 100.0%
Pet Inc (Pillsbury/Grand Met)
07/26/95 Shareholders $ 309.8 $ 309.8 NM 0.5 0.2 NA NM 100.0%
Earthgrains Co (Anheuser-Busch)
03/15/96 ConAgra Inc $ 132.0 $ 132.0 NA NA 0.7 NA NA 100.0%
Gilroy Foods Inc
06/30/97 JP Foodservice Inc $ 770.6 $1,510.6 NM 2.3 2.9 NM NM 100.0%
Rykoff-Sexton Inc
09/09/97 Shareholders $1,004.8 $1,004.8 NA NA 0.7 NA NA 100.0%
Campbell Soup-Noncore Bus(7)
09/18/97 Chiquita Brands International $ 10.9 $ 42.9 NM 1.8 0.2 NM NM 100.0%
Stokely USA Inc
09/29/97 Suiza Foods Corp $ 855.9 $1,035.9 47.0 8.6 2.1 NA 26.6 100.0%
Morningstar Group Inc
</TABLE>
19
<PAGE> 34
COMPARABLE TRANSACTION ANALYSIS
- --------------------------------------------------------------------------------
FOOD DISTRIBUTION COMPANIES*
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
(Dollars in millions)
Aggreg. Levered
Equity Consid. Aggregate Consideration
Aggregate Levered as a Multiple of: as a Multiple of:
Equity Aggregate ----------------- ------------------------
Date Consider- Consider- LTM Net Book LTM LTM LTM Percent
Announced Acquiror / Target ation ation(2) Income Value Revenue EBITDA EBIT Acquired
- --------- ----------------- ----- -------- ------ ----- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/01/97 Chiquita Brands International $ 27.0 $ 29.0 7.5 1.1 0.4 NA NA 100.0%
American Fine Foods Inc
02/18/98 Agrilink Foods (Pro-Fac) $ 6.9 $ 6.9 NA NA NA NA NA 100.0%
Delagra Corp
05/08/98 Agrobios (Desc SA de CV) $141.9 $141.9 NM 3.2 2.7 NM NM 100.0%
Authentic Specialty Foods Inc
07/21/98 Agrilink Foods (Pro-Fac) NA NA NA NA NA NA NA 100.0%
JA Hopay Distributing Co
07/27/98 Agrilink Foods (Pro-Fac) $480.0 $482.0 NA 1.7 0.8 NA 11.4 100.0%
Dean Foods Co-Vegetable Ops
Average: 26.9 4.1 1.2 12.9 17.3
Adjusted Average 23.9 3.6 1.1 12.4 16.4
</TABLE>
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
(2) Levered aggregate consideration is defined as aggregate equity consideration
plus total debt, net of cash and equivalents.
20
<PAGE> 35
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------ -------- -------- ----- --------- ------ -------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/7/90 8/14/90 ConAgra Inc Beatrice Co $1,336.0 $3,294.0 -- -- $864.0 $4,310.0 $11.0 $343.0 $478.0
Advisor Gleacher & Co Salomon Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- ------ --------------
<S> <C> <C> <C> <C>
6/7/90 $1,016.0 $3,472.0 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Beatrice from Kohlberg Kravis Roberts (KKR) for $3.294
bil in cash, common stock, preferred stock, and the assumption of
Beatrice's liabilities. The consideration consisted of $626 mil in
cash, $355 mil in common stock and $355 mil in 2 series of preferred
stock plus the assumption of $1.958 bil of Beatrice's liabilities. The
deal had been subject to governmental approval due to antitrust issues.
Gleacher acted as financial advisor to ConAgra.
Target Business Description
---------------------------
Produce food, consumer prod
Acquiror Business Description
-----------------------------
Produce meats,eggs,cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/28/90 4/4/91 Shareholders Pet Inc(Whitman Corp) $1,607.0 $1,607.0 $15.63 102.8 $801.6 $1,863.2 $21.9 $241.5 $291.5
Advisor -- First Boston Corp.
-------
Company Status Priv. Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C>
9/28/90 $130.0 $1,531.4 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Whitman completed the spinoff of Pet for $1.607 bil, based on Pet's
closing share price of $15.625 on April 4, its first day of trading.
First Boston was retained to study a possible restructure plan and
recommended the spinoff. The transaction was conducted by means of a
stock dividend in which shareholders received one share of Pet for
every Whitman share held. In anticipation of the spinoff, Whitman
restructured its major food operations, splitting them into three
divisions. In 1989, Pet generated $1.755 bil in sales and $280 mil in
pre-tax operating profit.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 36
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------- ------ -------- ------- --------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/19/90 1/18/91 MANO Holdings B Manischewitz Co $42.5 $42.5 $800.00 0.1 $14.2 $34.2 $2.5 $4.2 $5.0
Advisor TGV Partners Lehman Brothers
-------
Company Status Priv. Public
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- -------------- --------
<S> <C> <C> <C> <C>
10/19/90 -- $18.4 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
MANO Holdings, an investor group led by Kohlberg and including TGV
Partners and management, acquired B Manischewitz in a leveraged buyout
transaction valued at $800 in cash per share, or $42.5 mil. MANO
accepted 81% of B Manischewitz' shares (42,975 shares) that were
tendered in the offer and acquired the rest for $800 in cash per share.
Under the terms of the agreement, senior management was to retain an
equity interest in MANO Holdings.
Target Business Description
---------------------------
Produce, whl, ret matzos
Acquiror Business Description
-----------------------------
Investor group; holding co
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/19/91 7/11/91 ConAgra Inc Golden Valley Microwave Foods $408.4 $408.4 $26.39 17.6 $108.0 $177.6 $19.6 $13.6 $21.4
Advisor Gleacher & Co Goldman, Sachs & Co.
-------
Company Status Public Public
--------------
<CAPTION>
<S> <C> <C> <C> <C>
4/19/91 $52.7 $180.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Golden Valley Microwave Foods (GV) in a stock
transaction valued at $464.5 mil. GV shareholders received .5676 shares
of ConAgra for each of GV's 18.8 mil fully diluted common shares. Based
on ConAgra's closing stock price of $47.375 on Apr 18, the last full
trading day prior to the announcement, each share of GV had an
indicated value of $26.39. ConAgra also agreed to convert 600,000 GV
warrants, held by an affiliate of Chase Manhattan Bank, for 340,560
rights to buy ConAgra stock at $60.48.
Target Business Description
---------------------------
Produce microwave food prod
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 37
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/18/91 8/23/91 HJ Heinz Co JL Foods Inc (John Labatt Ltd) $500.0 $500.0 -- -- -- $475.0 -- --
Advisor Dillon, Read James D. Wolfensohn Inc.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
7/18/91 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
HJ Heinz acquired the JL Foods unit of John Labatt for $500 mil in
cash. John Labatt had disclosed in May 1991 that it was seeking a buyer
for its JL Foods unit. Officials said the planned divestiture was
consistent with John Labatt's stated strategy to focus on its core
brewing, entertainment and dairy operations. The transaction had been
subject to US and Canadian regulatory approval.
Target Business Description
---------------------------
Produce, whl frozen foods
Acquiror Business Description
-----------------------------
Canned food preparations
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/20/91 1/31/92 CPC International Inc Fearn Intl (Kellogg Co) $115.0 $115.0 -- -- -- $100.0 -- --
Advisor Salomon Brothers Lehman Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
12/20/91 -- -- -- 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
CPC International acquired all the outstanding common stock of Fearn
International, a subsidiary of Kellogg, including the Le Gout product
line for a $115 mil in cash. Lehman Brothers acted as financial advisor
to Kellogg while Salomon Brothers advised CPC International.
Target Business Description
---------------------------
Produce soups and desserts
Acquiror Business Description
-----------------------------
Produce soups, sauces, food prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 38
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/24/92 8/3/92 Burns Philp Inc Durkee-French Foods (Burns) $85.0 $85.0 -- -- -- $200.0 -- --
Advisor -- --
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
1/24/92 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Burns Philp Inc, a unit of Burns Philp & Co, acquired Durkee-French
Foods from Reckitt & Coleman for $85 mil in cash, including $7 mil to
be held in escrow pending finalization of certain accounts.
Target Business Description
---------------------------
Produce mustard, sauces
Acquiror Business Description
-----------------------------
Produce yeast, vinegar, spices
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/9/92 5/28/92 Ben Hill Griffin Inc Orange-co (Stoneridge Res Inc)$31.0 $31.0 -- -- $85.6 $126.5 ($8.7) ($9.0)
Advisor -- Donaldson, Lufkin & Jenrette
-------
Company Status Priv. Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/9/92 ($4.2) $45.9 $149.8 52.3 Completed
Acq. Maj. Int.
Friendly
</TABLE>
Deal Description
----------------
Ben Hill Griffin acquired a 52.3% interest in Orange-co held by
Stoneridge Resources for $31 mil. Stonebridge Resources said in October
1990 that it was seeking a buyer for all of its assets for the purpose
of raising cash to distribute a liquidation dividend to shareholders.
Stonebridge retained Donaldson Lufkin & Jenrette Securities as a
financial advisor.
Target Business Description
---------------------------
Prod oranges, juices, plastics
Acquiror Business Description
-----------------------------
Frozen fruits, juices, vegetable
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 39
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/22/92 8/2/93 Shareholders Ralston-Continental Baking $181.1 $181.1 $8.75 37.6 $137.4 $2,014.5 $35.8 $92.9
Advisor - Lehman Brothers
-------
Company Status Priv. Sub.
- ----------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/22/92 -- -- $844.9 55 Completed
Acq. Maj. Int.
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina (RP) completed the spinoff of 20.7 mil new common
shares, or a 55% interest, in its newly created Ralston-Continental
Baking Group (CBG) to shareholders in a targeted stock recapitalization
valued at $181.12 mil. Shareholders of record as of Jul 30 received 1
CBG share for every 5 RP share held. Ralston Purina had originally
planned to spinoff the entire unit in April 1992. CBG was created in
order to separate the performance of RP's baking and non-baking
interests.
Target Business Description
---------------------------
Produce bakery products
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/12/92 2/1/93 Dean Foods Co WB Roddenbery Co $15.0 $15.0 -- -- $12.8 $54.8 ($1.7) ($1.4)
Advisor -- KPMG Peat Marwick
-------
Company Status Public Priv.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
10/12/92 ($0.5) $0.8 $19.1 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired all the outstanding stock of WB Roddenbery in
exchange for 535,000 of its common shares valued at $14.2 mil. The
value of the shares was based on Dean's closing stock price of $26.5
per share on Oct 9, the last full trading day prior to the
announcement. The transaction had been subject to Federal Trade
Commission approval.
Target Business Description
---------------------------
Produce pickles, vinegar, syrup
Acquiror Business Description
-----------------------------
Produce milk, dairy products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 40
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/12/93 11/3/94 Pro-Fac Cooperative Inc Curtice-Burns Foods(Pro-Fac) $164.2 $431.2 $19.00 8.6 $81.3 $854.8 ($18.5)
Advisor Dillon, Read Donaldson, Lufkin & Jenrette
------- Priv. Public
Company Status
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
8/12/93 ($5.2) $21.0 $257.5 $463.6 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative (PFC) acquired Curtice-Burns (CBF) for a total of
$19 in cash per share, or a total value of $424.25 mil, by accepting
8,276,439 common shares, or 96% of the outstanding shares. Included in
the value was PFC's assumption of $267 mil of CBF's debt. PFC had
originally offered $16.87 in cash per share held. The tender offer was
contingent upon at least 90% of CBF's Class A and B shares being
tendered. Dean Foods withdrew its offer to acquire CBF.
Target Business Description
---------------------------
Produce soft drinks, foods
Acquiror Business Description
-----------------------------
Provide food marketing service
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/16/93 3/31/94 Shareholders Ralcorp Holdings Inc (Ralston) $528.0 $528.0 $16.00 33.0 -- $808.6 --
Advisor -- Wasserstein, Perella
------- Priv. Sub.
Company Status
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
8/16/93 -- -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina Group, a unit of Ralston Purina, spun off its newly
formed Ralcorp Holdings (RH) unit, consisting of its cereal, Beech-Nut
baby food, cracker, cookie, resort, and coupon redemption businesses to
shareholders in a transaction valued of $528 mil based on RH's closing
stock price of $16 per share on Apr 1, the first full trading day of
newly issued RH shares. The shares in the spinoff would be distributed
at a ratio of 1 RH share for every 3 shares of Ralston Purina Group.
The unit included its Keystone and Breckenridge ski resorts.
Target Business Description
---------------------------
Produce cereal, baby food
Acquiror Business Description
-----------------------------
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 41
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/1/93 12/27/93 Dean Foods Co Kraft General Foods-Birds Eye $140.0 $140.0 -- -- -- $250.0
Advisor JP Morgan Securities, Inc. Morgan Stanley
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
11/1/93 $6.0 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired the BirdsEye frozen vegetable business of Kraft
General Foods, a unit of Philip Morris, for $140 mil. The transaction
had been subject to regulatory approval.
Target Business Description
---------------------------
Prod frozen vegetables
Acquiror Business Description
-----------------------------
Produce milk, dairy products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/18/94 6/1/94 Doskocil Cos Inc Intl Multifoods-Prepared Foods $135.0 $135.0 -- -- -- $185.0
Advisor -- Lehman Brothers
-------
Company Status Public Sub
- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
3/18/94 -- -- -- -- -- 100 Completed
Acq. of
Assets
Friendly
</TABLE>
Deal Description
----------------
Doskocil acquired the prepared foods division of International
Multifoods (IM) for $135 mil in cash. In September 1993, IM's board had
announced that it was seeking to divest its prepared foods division.
The division included its frozen specialty foods and meats businesses.
Later IBP acquired the meats business.
Target Business Description
---------------------------
Produce prepared foods
Acquiror Business Description
-----------------------------
Produce sausages, prepared meat
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 42
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ----------- ----------------------------- ------ ------ ------ --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/18/94 -- ConAgra Inc Universal Foods-Frozen Foods $202.0 $202.0 -- -- -- -- -- --
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------ --------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/18/94 -- -- -- -- Pending
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra agreed to acquire the frozen foods business of Universal Foods
for an amended $202 mil in cash. The initial value was $220 mil,
including $57 mil in performance-related payments. The transaction was
subject to regulatory approval.
Target Business Description
---------------------------
Produce frozen foods
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/20/94 11/30/94 Schreiber Foods Inc Arden International Kitchens $11.8 $11.8 $3.90 3.0 $4.2 $19.5 $0.7 $1.1
Advisor -- --
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/20/94 $2.1 $0.9 $6.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Schreiber Foods (SF) acquired Arden International Kitchens (AIK) for an
amended $11.8 mil in cash, or $3.90 per common share. SF had originally
agreed to acquire AIK for $4 per share, or a total value of $12.1 mil.
Target Business Description
---------------------------
Produce frozen foods for
Acquiror Business Description
-----------------------------
Produce meat and food products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 43
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- -------- -------- ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/23/94 12/19/94 Sandoz AG Gerber Products Co $3,685.7 $3,685.7 $53.00 69.5 $364.7 $1,202.5 $114.2 $184.0
Advisor Morgan Stanley Wasserstein, Perella
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ ---------
<S> <C> <C> <C> <C> <C>
5/23/94 $226.0 $84.7 $1,013.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Sandoz completed its merger with Gerber Products (GP) in a transaction
valued at $3.68 bil. Earlier, Sandoz had completed its tender offer for
all the common shares of GP for $53 in cash per share, by accepting
69.08 mil shares, or about 99.2% of GP's shares outstanding. The offer
had been conditioned upon Sandoz receiving at least a majority of GP's
stock. The transaction had been subject to regulatory approval,
including the approval of the Federal Trade Commission under the
Hart-Scott-Rodino Act, and the Superintendent of Insurance of New York.
Target Business Description
-----------------------------
Manfr baby foods and products
Acquiror Business Description
-----------------------------
Manufacture dyestuffs
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/12/94 3/14/95 Kohlberg Kravis Roberts & Co Borden Inc $2,222.9 $4,622.9 $13.61 170.3 $257.5 $5,498.2 ($114.2) $115.4
Advisor Morgan Stanley Credit Suisse First Boston
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
9/12/94 -- $1,682.7 $4,055.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Kohlberg Kravis Roberts (KKR) merged with Borden (BN) in an amended
stock swap valued at $4.643 bil, including $2.4 bil in the assumption
of liabilities. The value included a 16.5% stake KKR acquired in Borden
through a lockup agreement valued at $309.518 mil. Earlier, KKR had
completed a tender offer to acquire all the shares of BN in exchange
for 2.29146 RJR shares, valued at $13.606, per BN share held, by
accepting 90 mil shares, or about 63.5% of BN's total shares
outstanding. The offer had been conditioned upon a minimum of 41% of
BN's shares being tendered.
Target Business Description
---------------------------
Produce dairy prods, snacks
Acquiror Business Description
-----------------------------
Leverage buyout firm
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 44
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- ------ -------- ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/28/94 1/30/95 Campbell Soup Co Pace Foods $1,115.0 $1,115.0 -- -- $61.0 $230.0 $45.0
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ -------- -------- ------ --------- --------------
<S> <C> <C> <C> <C> <C> <C>
11/28/94 $42.4 $47.0 -- $112.7 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Campbell Soup acquired Pace Foods for $1.115 bil in cash.
Target Business Description
---------------------------
Produce pickled vegetables
Acquiror Business Description
-----------------------------
Produce soups, food products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/9/95 5/12/95 Pillsbury Co (Grand Met PLC) Pet Inc (Pillsbury/Grand Met) $2,636.5 $2,636.5 $26.00 100.4 $362.2 $1,576.3 $112.6
Advisor Morgan Stanley Lazard Freres & Co.
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1/9/95 $216.7 $262.5 $528.1 $1,175.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pillsbury, a unit of Grand Metropolitan (GM), completed its merger with
Pet in a transaction valued at $2.636 bil. Earlier, Pillsbury completed
its tender offer for all the outstanding common shares of Pet for $26
in cash per share, by accepting 95,364,543 shares, or 95% of Pet's
common stock outstanding. The offer had been conditioned upon GM
receiving at least 50% of Pet's shares outstanding, and had been
subject to regulatory approval.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Produce flour, grain mill prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 45
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------ ------------------------------ ------ ------ ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/26/95 3/27/96 Shareholders Earthgrains Co (Anheuser-Busch)$309.8 $309.8 $30.38 10.2 $573.8 $1,664.6 ($25.7) ($31.2)
Advisor -- Dillon, Read
-------
Company Status Priv. Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
7/26/95 -- $56.2 $1,130.1 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Anheuser-Busch (AB) completed the spin off its Earthgrains (EA) unit to
shareholders in a transaction valued at $309.83 mil. Each AB common
shareholder received 1 EA common share for every 25 AB shares held.
EA's shares were valued based on EA's closing stock price of $30.375 on
Mar 27, the first full trading day on a non-when issued basis. Earlier,
EA was known as as Cambell Taggart.
Target Business Description
---------------------------
Baked goods, frozen foods
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/29/96 ConAgra Inc Gilroy Foods Inc $132.0 $132.0 -- -- -- $200.0 -- --
Advisor -- --
- -------
Company Status Public Sub.
- --------------
<S> <C> <C> <C> <C> <C>
3/15/96 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Gilroy Foods, a unit of McCormick, for $132 mil in
cash.
Target Business Description
---------------------------
Produce dried fruits
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 46
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------ --------------------- ------ ------ ------ --------- ------ ------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/30/97 12/23/97 JP Foodservice Inc Rykoff-Sexton Inc $770.6 $1,510 $24.41 28.0 $336.0 $519.9 ($60.2) ($79.5)
Advisor PaineWebber Merrill Lynch & Co.
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
6/30/97 ($73.0) $483.2 $1,217.2 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
JP Foodservice (JP) merged with Rykoff-Sexton (RS) in a
merger-of-equals stock swap transaction valued at an amended $1.436
bil, including the assumption of $740 mil in liabilities. JP offered an
amended .775 common shares per RS share. Originally, JP offered .82
common shares per RS share. Based on JP's closing stock price of $31.5
on June 27, the last full trading day prior to the announcement of
amended terms, each RS share was valued at $24.4125. The transaction
was accounted for as a pooling of interests and had been subject to
regulatory approval.
Target Business Description
---------------------------
Wholesale grocery products
Acquiror Business Description
-----------------------------
Wholesale groceries
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/9/97 3/11/98 Shareholders Campbell Soup-Noncore Bus(7) $1,004 $1,004.8 $22.13 45.4 -- $1,400 -- --
Advisor -- Goldman, Sachs & Co.
-------
Company Status Priv. Sub.
- --------------
<S> <C> <C> <C> <C> <C>
9/9/97 -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Campbell Soup (CS) spun off its 7 noncore businesses including the
Swanson frozen dinner and Vlasic pickle brands into a new company named
Vlasic Foods (VF) to its shareholders in a transaction valued at $1.004
bil. CS shareholders received 1VF common share for every 10 CS shares
held. The shares were valued based on VF's closing stock price of
$22.125 on March 11, the first full trading day on which the shares
were distributed.
Target Business Description
---------------------------
Produce, whl soups, food prods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 47
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------------ ------ ------ ------ --------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/18/97 1/16/98 Chiquita Brands International Stokely USA Inc $10.9 $42.9 $1.00 11.4 $6.1 $178.9
Advisor No Investment Bank Retained Donaldson, Lufkin & Jenrette
-------
Company Status Public Public
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
9/18/97 ($19.4) ($8.9) ($2.9) $74.7 $116.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International (CBI) acquired all the outstanding common
stock of Stokely USA (SU) in exchange for $1 in common stock per share,
or a total value of approximately $43.389 mil, including the assumption
of about $32 mil in liabilities.
Target Business Description
------------------------------
Prod canned fruits, vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/29/97 12/1/97 Suiza Foods Corp Morningstar Group Inc $855.9 $1,035.9 $45.85 15.4 $99.4 $497.6
Advisor Donaldson, Lufkin & Jenrette Goldman, Sachs & Co.
-------
Company Status Public Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
9/29/97 $18.2 $38.9 -- 178.5 $352.3 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Suiza Foods (SF) acquired Morningstar Group (MG) in a stock swap
transaction valued at approximately $971.957 mil, including the
assumption of $180 mil in liabilities. SF offered .85 SF common shares
per MG share. Based on SF's closing stock price of $53.9375 on Sep 26,
the last full trading day prior to the announcement, each MG share was
valued at $45.85. The transaction was accounted for as a pooling of
interests and had been subject to regulatory approval.
Target Business Description
---------------------------
Produce dairy products
Acquiror Business Description
-----------------------------
Produce milk, related prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 48
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/1/97 12/9/97 Chiquita Brands International American Fine Foods Inc $27.0 $29.0 -- -- $25.6 $79.8 $3.6
Advisor -- JP Morgan & Co. Inc.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
10/1/97 -- -- -- $52.0 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International acquired all the outstanding stock of
American Fine Foods for $29 mil. The consideration consisted of $27 mil
in common stock and the assumption of $2 mil in liabilities. The
transaction was subject to regulatory approval.
Target Business Description
---------------------------
Produce canned vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/98 Agrilink Foods (Pro-Fac) Delagra Corp $6.9 $6.9 -- -- -- --
Advisor -- --
-------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C>
2/18/98 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative Inc, acquired Delagra Corp (DE). Terms were not
disclosed. Upon completion, DE was to be incorporated to AF's Curtice
Burns Foods subsidiary.
Target Business Description
---------------------------
Produce frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 49
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ------------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/8/98 6/15/98 Agrobios (Desc SA de CV) Authentic Specialty Foods Inc $141.9 $141.9 $17.00 8.0 $40.5 $37.2 ($0.6)
Advisor JP Morgan & Co. Inc. Donaldson, Lufkin & Jenrette
-------
Company Status Sub. Public
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
5/8/98 ($0.4) $0.8 $10.2 $58.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Agrobios (AB), a unit of Desc SA de CV, acquired all the outstanding
common stock of Authentic Specialty Foods Inc (ASF) for $17 in cash per
share, or a total value of $141.876 mil. Earlier, AB completed its
tender offer for ASF by accepting 7.8 million shares, or 89% of ASF's
shares outstanding. The offer had been conditioned upon at least 66.67%
of ASF's shares being tendered on a fully-diluted basis.
Target Business Description
---------------------------
Whl, mnfr Mexican foods
Acquiror Business Description
-----------------------------
Mnfr, whl foods products
<TABLE>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/21/98 Agrilink Foods (Pro-Fac) JA Hopay Distributing Co -- -- -- -- -- $8.0 --
Advisor -- --
- -------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C> <C>
7/21/98 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods, a unit of Pro-Fac Cooperative Inc, acquired JA Hopay
Distributing Co.
Target Business Description
---------------------------
Distribution of snack foods
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 50
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ---------------------------- ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/27/98 9/24/98 Agrilink Foods (Pro-Fac) Dean Foods Co-Vegetable Ops $480.0 $482.0 -- -- -- $620.6 --
Advisor - Merrill Lynch & Co.
-------
Company Status Sub. Sub.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
7/27/98 $42.4 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods (AF), a unit of Pro-Fac Cooperative Inc, acquired the
vegetable operations of Dean Foods Co for an estimated $370 mil in
cash, a $30 mil note and AF's aseptic foods business. Included in the
acquisition were the Birds Eye, Freshlike and VegAll brand names.
Target Business Description
---------------------------
Mnfr frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
*Covers industries with SIC Codes in the 2030s. Source: Securities Data Company,
Inc. (201) 622-3100. As of 11/16/98.
<PAGE> 51
Discounted Cash Flow Analysis
United Foods - Discounted Cash Flow Analysis
0% Growth Scenario - Per Share Valuation
Capital Expenditures at 100% of Management's Projections
<TABLE>
<CAPTION>
Cost Savings (000's)
----------------------------------------------------
Discount Rate - $500 $750 $1,000
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $ 0.56 $0.99 $1.21 $1.42
8% 6.0x $ 1.85 $2.33 $2.58 $2.82
7.0x $ 3.15 $3.68 $3.94 $4.21
5.0x $(0.11) $0.29 $0.49 $0.69
10% 6.0x $ 1.07 $1.51 $1.74 $1.96
7.0x $ 1.44 $1.90 $2.12 $2.35
</TABLE>
Capital Expenditures at 75% of Management's Projections
<TABLE>
<CAPTION>
Cost Savings (000's)
----------------------------------------------------
Discount Rate - $500 $750 $1,000
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $1.63 $2.06 $2.27 $2.49
8% 6.0x $2.92 $3.40 $3.64 $3.88
7.0x $4.21 $4.74 $5.01 $5.27
5.0x $0.90 $1.30 $1.50 $1.70
10% 6.0x $2.08 $2.53 $2.75 $2.97
7.0x $2.40 $2.86 $3.09 $3.31
</TABLE>
Capital Expenditures at 50% of Management's Projections
<TABLE>
<CAPTION>
Cost Savings (000's)
----------------------------------------------------
Discount Rate - $500 $750 $1,000
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $2.69 $3.12 $3.34 $3.55
8% 6.0x $3.98 $4.47 $4.71 $4.95
7.0x $5.28 $5.81 $6.07 $6.34
5.0x $1.91 $2.31 $2.51 $2.71
10% 6.0x $3.09 $3.54 $3.76 $3.98
7.0x $3.36 $3.82 $4.05 $4.28
</TABLE>
21
<PAGE> 52
Discounted Cash Flow Analysis
United Foods - Discounted Cash Flow Analysis
2.5% Growth Scenario - Per Share Valuation
Capital Expenditures at 100% of Management's Projections
<TABLE>
<CAPTION>
Cost Savings (000's)
----------------------------------------------------
Discount Rate - $500 $750 $1,000
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $1.16 $1.59 $1.81 $2.02
8% 6.0x $2.62 $3.10 $3.34 $3.59
7.0x $4.09 $4.62 $4.88 $5.15
5.0x $0.42 $0.82 $1.02 $1.22
10% 6.0x $1.76 $2.20 $2.43 $2.65
7.0x $2.20 $2.66 $2.88 $3.11
</TABLE>
Capital Expenditures at 75% of Management's Projections
<TABLE>
<CAPTION>
Cost Savings (000's)
----------------------------------------------------
Discount Rate - $500 $750 $1,000
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $2.22 $2.66 $2.87 $3.09
8% 6.0x $3.69 $4.17 $4.41 $4.65
7.0x $5.15 $5.68 $5.95 $6.21
5.0x $1.43 $1.83 $2.03 $2.24
10% 6.0x $2.77 $3.21 $3.44 $3.66
7.0x $3.16 $3.62 $3.84 $4.07
</TABLE>
Capital Expenditures at 50% of Management's Projections
<TABLE>
<CAPTION>
Cost Savings (000's)
----------------------------------------------------
Discount Rate - $500 $750 $1,000
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.0x $3.29 $3.72 $3.94 $4.15
8% 6.0x $4.75 $5.23 $5.48 $5.72
7.0x $6.22 $6.75 $7.01 $7.28
5.0x $2.45 $2.85 $3.05 $3.25
10% 6.0x $3.78 $4.23 $4.45 $4.67
7.0x $4.12 $4.58 $4.81 $5.03
</TABLE>
22
<PAGE> 53
Discounted Cash Flow Analysis
United Foods, Inc.
EBITDA (1980-1999)
Historical
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8,965 10,851 11,764 15,698 13,341 12,776 7,142 5,487 251 9,340
21.0% 8.4% 33.4% (15.0)% (4.2)% (44.1)% (23.2)% (95.4)% 3621.1%
<CAPTION>
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
19,876 14,835 10,918 9,018 9,291 13,621 10,276 12,531 12,127 12,936
112.8% (25.4)% (26.4)% (17.4)% 3.0% 46.6% (24.6)% 21.9% (3.2)% 6.7%
<CAPTION>
3 Year 5 year 10 Year
---------------------------
<S> <C> <C> <C>
Avg. 12,531 12,298 12,543
CAGR 1.6% (1.3)% (4.7)%
</TABLE>
Smoothed (3-Year)
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10,527 12,771 13,601 13,938 11,086 8,468 4,293 5,026
21.3% 6.5% 2.5% (20.5)% (23.6)% (49.3)% 17.1%
<CAPTION>
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9,822 14,684 15,210 11,590 9,742 10,643 11,063 12,143 11,645 12,531
95.4% 49.5% 3.6% (23.8)% (15.9)% 9.2% 3.9% 9.8% (4.1)% 7.6%
<CAPTION>
3 Year 5 year 10 Year
---------------------------
<S> <C> <C> <C>
Avg. 12,106 11,605 11,907
CAGR 1.6% 4.2% 2.7%
</TABLE>
Depreciation (1980-1999)
Historical
<TABLE>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2,832 2,578 2,565 3,391 3,445 3,415 3,354 3,402 4,059 5,352
(9.0)% (0.5)% 32.2% 1.6% (0.9)% (1.8)% 1.4% 19.3% 31.9%
<CAPTION>
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5,777 6,086 6,249 6,104 6,005 6,637 7,362 7,859 7,285 7,266
7.9% 5.3% 2.7% (2.3)% (1.6)% 10.5% 10.9% 6.8% (7.3)% (0.3)%
<CAPTION>
3 Year 5 year 10 Year 20 Year
------------------------------------
<S> <C> <C> <C> <C>
Avg. 7,470 7,282 6,663 5,051
CAGR (3.8)% 2.3% 2.6% 5.1%
</TABLE>
Smoothed (3-Year)
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2,658 2,845 3,134 3,417 3,405 3,390 3,605 4,271
7.0% 10.2% 9.0% (0.4)% (0.4)% 6.3% 18.5%
<CAPTION>
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5,063 5,738 6,037 6,146 6,119 6,249 6,668 7,286 7,502 7,470
18.5% 13.3% 5.2% 1.8% (0.4)% 2.1% 6.7% 9.3% 3.0% (0.4)%
<CAPTION>
3 Year 5 year 10 Year 18 Year
-------------------------------------
<S> <C> <C> <C> <C>
Avg. 7,419 7,035 6,428 5,056
CAGR 1.3% 4.6% 4.4% 6.3%
</TABLE>
Capital Expenditures (1980-1999)
Historical
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1,914 1,686 3,220 16,276 3,982 5,127 5,979 11,455 22,795 5,957
(11.9)% 91.0% 405.5% (75.5)% 28.8% 16.6% 91.6% 99.0% (73.9)%
<CAPTION>
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6,794 9,940 2,363 4,948 9,133 9,874 11,914 533 4,774 17,500
14.1% 46.3% (76.2)% 109.4% 84.6% 8.1% 20.7% (95.5)% 795.7% 266.6%
<CAPTION>
3 Year 5 year 10 Year 20 Year
--------------------------------------
<S> <C> <C> <C> <C>
Avg. 7,602 8,919 7,777 7,808
CAGR 473.0% 15.4% 11.1% 12.4%
</TABLE>
Smoothed (3-Year)
<TABLE>
<CAPTION>
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2,273 7,061 7,826 8,462 5,029 7,520 13,410 13,402
210.6% 10.8% 8.1% (40.6)% 49.5% 78.3% (0.1)%
<CAPTION>
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11,849 7,564 6,366 5,750 5,481 7,985 10,307 7,440 5,740 7,602
(11.6%) (36.2)% (15.8)% (9.7)% (4.7)% 45.7% 29.1% (27.8)% (22.8)% 32.4%
<CAPTION>
3 Year 5 year 10 Year 18 Year
-------------------------------------
<S> <C> <C> <C> <C>
Avg. 6,928 7,815 7,608 7,837
CAGR 1.1% (1.2)% (4.8)% 7.4%
</TABLE>
23
<PAGE> 54
Discounted Cash Flow Analysis
United Foods, Inc.
Calculation of Weighted Average Cost of Capital
(in thousands except per share)
<TABLE>
<S> <C>
Weighted Average Cost of Capital (WACC) = (Equity % of Capitalization)(Cost of Equity) + (Debt % of Capitalization)(Cost of Debt)
32.1% Equity (19.98%) + 67.9% Debt (5.58%)
</TABLE>
10.2%
<TABLE>
<CAPTION>
Cost of Equity Data Used
<S> <C>
Cost of Equity = Rf+ B (Rm - Rf) Capital Asset Pricing Model (a)
Risk Free Rate = Rf 10 Year Treasury Yield = 4.49% (b)
Beta of Common Stock = B UFD Beta = 1.3 (c)
Market Risk Premium = (Rm - Rf) Common Stock Returns
over Int.-term Gov't Bonds = 8.9% (d)
Cost of Equity = 4.5% + 1.3(*)(8.9%) + 3.5% Micro-Cap Stock Premium 3.5%
Cost of Debt = (1-T)*Ri (e)
Cost of Equity = 20.0% Cost of Debt = 5.6%
Capitalization (f) = $20,430 of Market Equity + $43,249 of Long Term Debt = $63,679
= 32.1% Equity + 67.9% Debt
</TABLE>
(a) The Capital Asset Pricing Model states that the return on an asset or
security is equal to the risk free return (i.e., Treasury Bonds) plus a risk
premium.
(b) 10 Year Treasury as of 9/30/98.
(c) Beta estimate taken from Value Line Investment Survey.
(d) Intermediate horizon risk premium of 8.9%, as calculated by Ibbotson &
Sinquefield, 1996. Includes an additional Micro-Cap Stock Premium of 3.5%.
(e) Interest cost of 9.00%, tax adjusted at 38.0%.
(f) Assumes UFD has a targeted capital structure of 32.1% equity and 67.9% debt.
24
<PAGE> 55
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model (0% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 12,938 $ 12,938 $ 12,938 $ 12,938 $ 12,938
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,511 4,304 4,186 4,110 4,031
-------- -------- -------- -------- --------
Pre-tax income 1,159 1,366 1,484 1,560 1,639
Provision for income taxes 440 519 564 593 623
-------- -------- -------- -------- --------
Net income 718 847 920 967 1,016
======== ======== ======== ======== ========
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,797 2,668 2,595 2,548 2,499
Less: Net additions to working capital (1) -- -- -- -- --
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
-------- -------- -------- -------- --------
Operating cash flow $ 3,515 $ 3,515 $ 3,515 $ 3,515 $ 3,515
======== ======== ======== ======== ========
Cash flow growth 0.0% 0.0% 0.0% 0.0%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $ 3,815 $12,620 $21,426 $30,231
10.0% (754) 7,279 15,312 23,346
12.0% (4,869) 2,472 9,814 17,155
Average Valuation of Equity $11,487
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2) (4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $ 0.56 $1.85 $3.15 $4.44
10.0% $(0.11) $1.07 $2.25 $3.43
12.0% $(0.71) $0.36 $1.44 $2.52
Average Per Share Valuation of Equity $1.69
</TABLE>
- ----------
(1) Excluding cash and short-term debt.
(2) Less total capital liab. (net of cash) of $54,248
(3) Discount rates are near estimates of WACC.
(4) Based on 6.8 million shares outstanding.
25
<PAGE> 56
United Foods, Inc. -- Projection Model (0% Growth)
Projected Income Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
---------- -------- -------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $211,839 $211,839 $211,839 $211,839 $211,839
Cost of sales 172,486 172,486 172,486 172,486 172,486 172,486
--------- -------- -------- -------- -------- --------
Gross profit 39,353 39,353 39,353 39,353 39,353 39,353
General and administrative, net dep. 10,093 10,093 10,093 10,093 10,093 10,093
Direct selling expenses 16,322 16,322 16,322 16,322 16,322 16,322
--------- -------- -------- -------- -------- --------
Total operating expenses 26,415 26,415 26,415 26,415 26,415 26,415
EBITDA 12,938 12,938 12,938 12,938 12,938 12,938
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 5,670 5,670 5,670 5,670 5,670
Interest expense 4,179 4,511 4,304 4,186 4,110 4,031
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense -- -- -- -- -- --
Other (income) (4) -- -- -- -- --
--------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,511 4,304 4,186 4,110 4,031
Pre-tax income 1,495 1,159 1,366 1,484 1,560 1,639
Provision for income taxes 575 440 519 564 593 623
--------- -------- -------- -------- -------- --------
Net income $ 920 $ 718 $ 847 $ 920 $ 967 $ 1,016
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 57
United Foods, Inc. -- Projection Model (0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 1,281 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,771 18,771 18,771 18,771 18,771 18,771
Inventory 36,217 36,217 36,217 36,217 36,217 36,217
Prepaid expenses 3,508 3,508 3,508 3,508 3,508 3,508
Deferred income taxes 1,238 1,238 1,238 1,238 1,238 1,238
--------- --------- --------- --------- --------- ---------
Total current assets 63,457 61,015 59,834 59,834 59,834 59,834
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip. 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 804 804 804 804 804
Notes & accounts receivable 50 50 50 50 50 50
Deferred charges & other assets 723 723 723 723 723 723
--------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 124,678 $ 123,497 $ 123,497 $ 123,497 $ 123,497
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 58
United Foods, Inc. -- Projection Model (0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
---------- --------- --------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 10,850 10,850 10,850 10,850 10,850
Accrued liabilities 6,911 6,911 6,911 6,911 6,911 6,911
Income taxes payable 135 135 135 135 135 135
--------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 20,405 28,677 19,351 19,480 43,735
Long term debt
Revolver -- -- 481 10,341 10,829 11,397
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 57,971 54,811 52,783 51,862 50,895 49,879
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 52,302 42,002 50,407 49,311 24,040
Deferred income taxes 4,585 4,585 4,585 4,585 4,585 4,585
--------- --------- --------- --------- --------- ---------
Total liabilities 80,452 77,292 75,264 74,343 73,376 72,360
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 36,583 37,430 38,351 39,318 40,334
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 47,386 48,233 49,154 50,121 51,137
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $ 124,678 $ 123,497 $ 123,497 $ 123,497 $ 123,497
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 59
United Foods, Inc. -- Projection Model (0% Growth)
Projected Cash Flow Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Projected
2000 2001 2002 2003 2004
------- ------- -------- ------- ---------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 718 $ 847 $ 920 $ 967 $ 1,016
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 7,986 8,115 8,188 8,235 8,284
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,268) (7,268) (7,268) (7,268) (7,268)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (11,262) (2,422) (2,600)
Drawdown on revolver -- 481 10,341 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (3,160) (2,028) (920) (967) (1,016)
------- ------- -------- ------- -------
Net additions to cash $(2,442) $(1,181) $ (0) $ 0 $ -
======= ======= ======== ======= =======
Beginning cash balance 3,723 1,281 100 100 100
Ending cash balance 1,281 100 100 100 100
</TABLE>
<PAGE> 60
Premium Analysis
United Foods, Inc.
M&A Premium Analysis
Based on Adjusted Average Premium (1 Week Before Announcement)
<TABLE>
<CAPTION>
Implied
Class Date Premium Price Offer Price
----- ---- ------- ----- -----------
<S> <C> <C> <C> <C>
A 9/9/98 36.45% $2.63 $3.59
B 9/9/98 36.45% $2.81 $3.83
</TABLE>
Percentage of transactions with premiums below 20% is 30.6%
Based on Adjusted Average Premium (4 Weeks Before Announcement)
<TABLE>
<CAPTION>
Implied
Class Date Premium Price Offer Price
----- ---- ------- ----- -----------
<S> <C> <C> <C> <C>
A 8/17/98 42.56% $2.94 $4.19
B 8/17/98 42.56% $3.00 $4.28
</TABLE>
Percentage of transactions with premiums below 20% is 20.7%
26
<PAGE> 61
United Foods, Inc.
Premium Analysis
Cash Purchases Announced Since 1/1/96
<TABLE>
<CAPTION>
Premium Premium
Value of Price 1 week 4 weeks
Date Date Transaction Per prior to prior to
Effective Announced Acquiror Name Target Name ($ mil) Share ann. Date ann. date
- --------- --------- ------------------------------ ------------------------------ -------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
08/28/96 01/03/96 Recoton Corp International Jensen Inc 109.1 11.00 57.14 49.15
04/30/96 01/08/96 Lockheed Martin Corp Loral Corp 8762.4 38.00 7.42 8.19
04/30/96 01/09/96 CompuWare Corp Technalysis Corp 32.6 14.00 16.67 16.67
07/30/96 01/11/96 National Golf Properties Inc Golf Enterprises Inc 82.9 12.00 45.46 45.46
02/26/96 01/16/96 Multicare Cos Inc Concord Health Group 126.9 7.35 43.42 58.92
04/10/96 01/16/96 Depuy Inc(Corange Ltd) Orthopedic Technology Inc 45.2 10.43 43.89 49.03
04/11/96 01/22/96 Farnell Electronics PLC Premier Industrial Corp 2722.7 32.92 35.75 34.37
05/09/96 01/23/96 Spartech Corp Portage Industries Corp 15.8 6.60 78.98 78.98
07/16/96 01/24/96 First Maryland Bancorp,MD 1st Washington Bancorp Inc 81.9 8.13 51.16 44.44
03/29/96 01/24/96 Cisco Systems Inc TGV Software Inc 92.4 15.57 70.63 73.00
04/08/96 01/29/96 WH Brady Co Varitronic Systems Inc 42.5 17.50 79.49 62.79
03/04/96 01/31/96 IBM Corp Tivoli Systems Inc 709.8 47.50 25.00 41.79
06/19/96 02/05/96 Bay View Capital,San Mateo,CA CTL Credit Inc 65.0 18.00 82.28 69.41
05/01/96 02/12/96 Honeywell Inc Duracraft Corp 286.7 43.50 50.00 68.12
09/18/96 02/13/96 Jacor Communications Inc Citicasters(American Finl Grp) 767.6 29.50 15.69 28.26
07/12/96 02/13/96 Horizon/CMS Healthcare Corp Medical Innovations Inc 30.3 1.85 18.40 5.71
07/01/96 02/13/96 LBO Enterprises S-K-I Ltd 135.3 18.00 44.00 39.81
03/20/96 02/14/96 Unilever NV Helene Curtis Industries Inc 737.4 70.00 30.23 71.78
05/14/96 02/15/96 Genstar Capital Partners II LP Andros Inc 92.6 18.00 24.14 35.85
04/29/96 02/15/96 NationsBank Corp,Charlotte,NC LDI Corp 28.1 4.10 21.48 49.09
05/30/96 02/16/96 Tosco Corp Circle K Corp 983.0 30.81 42.47 68.82
06/13/96 02/16/96 Marriott International Inc Forum Group Inc 622.3 13.00 8.33 44.44
07/01/96 02/23/96 Silicon Graphics Inc Cray Research Inc 770.0 30.00 21.21 20.60
09/16/96 02/26/96 Maxxim Medical Inc Sterile Concepts Inc 140.2 20.00 60.00 55.34
06/18/96 02/26/96 HS Resources Inc Tide West Oil Co 201.3 15.91 44.64 51.52
07/10/96 02/29/96 TBC Corp Big O Tires Inc 56.6 16.50 7.32 12.82
04/08/96 03/04/96 Lilly Industries Inc Guardsman Products Inc 227.8 23.00 32.37 57.27
09/27/96 03/13/96 Keystone Consolidated Inds Inc DeSoto Inc 36.1 7.65 53.00 80.00
10/31/96 03/20/96 Mercantile Bancorp,St Louis,MO Todays Bancorp Inc 88.8 31.81 23.53 31.18
10/04/96 03/26/96 Camco Financial,Cambridge,OH First Ashland Financial Corp 29.0 20.58 28.61 34.93
08/01/96 03/28/96 Koninklijke Ahold NV Stop & Shop Cos 2870.8 33.50 27.01 45.65
07/02/96 03/29/96 Motor Wheel Corp Hayes Wheels International Inc 563.8 32.00 33.33 43.02
10/21/96 03/29/96 ISB Financial,New Iberia,LA Jefferson Bancorp,Gretna,LA 52.0 23.00 16.46 18.71
08/07/96 03/29/96 Abbott Laboratories MediSense Inc 821.6 45.00 48.76 39.00
07/19/96 04/01/96 Aetna Life & Casualty Co US Healthcare Inc 8939.0 57.00 21.28 18.75
10/15/96 04/10/96 Toronto-Dominion Bank Waterhouse Investor Services 526.0 38.00 19.69 65.22
06/04/96 04/22/96 El Paso Field Svcs(El Paso) Cornerstone Natural Gas Co 96.6 6.00 29.73 100.00
07/18/96 04/22/96 Reynolds & Reynolds Co Duplex Products Inc 90.1 12.00 28.86 36.17
09/30/96 04/22/96 Pinnacle Banc Grp,Oak Brook,IL Financial Security,Chicago,IL 42.6 28.50 15.15 10.15
07/10/96 04/22/96 Cisco Systems Inc StrataCom Inc 4833.5 57.50 59.72 79.69
06/03/96 04/22/96 K-III Communications Corp Westcott Communications Inc 438.9 21.50 57.80 56.36
</TABLE>
<PAGE> 62
<TABLE>
<CAPTION>
Premium Premium
Value of Price 1 week 4 weeks
Date Date Transaction Per prior to prior to
Effective Announced Acquiror Name Target Name ($ mil) Share ann. Date ann. date
- --------- --------- ------------------------------ ------------------------------ -------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
10/21/96 04/23/96 Security Banc Corp,OH Third Financial Corp,Piqua,OH 43.9 33.41 13.74 14.22
10/01/96 04/25/96 Investor Group Sterling Chemicals Inc 798.4 12.00 47.69 47.69
10/14/96 04/29/96 Fidelity Financial of Ohio Inc Circle Finl,Sharonville,Ohio 27.8 38.00 38.18 43.40
09/03/96 04/29/96 Hubco Inc,Mahwah,New Jersey Hometown Bancorporation Inc,CT 31.9 17.75 29.09 29.09
03/27/97 04/29/96 Provident Cos Paul Revere Corp(Textron Inc) 1171.1 26.00 5.58 8.90
08/14/96 05/07/96 Tiger Real Estate Fund LP Kahler Realty Corp 222.7 17.00 13.33 9.68
10/01/96 05/10/96 HF Bancorp Inc,Hemet,CA Palm Springs Savings Bank, CA 17.3 14.38 43.75 43.75
08/30/96 05/13/96 Getinge Industrier AB MDT Corp 70.3 5.50 22.22 4.76
11/15/96 05/16/96 Metrocall Inc A+ Network Inc 345.1 21.10 40.67 63.88
07/23/96 05/20/96 General Electric Capital Svcs AmeriData Technologies Inc 454.8 16.00 25.49 47.13
08/29/96 05/20/96 Finova Group Inc Financing for Science Intl Inc 39.2 6.40 6.67 12.53
09/30/96 05/23/96 Luther Burbank Savings,CA NHS Financial,San Rafael,CA 29.6 11.50 17.95 21.05
09/04/96 05/24/96 Joint Energy Dvlp Investments Clinton Gas Systems Inc 38.4 6.75 14.89 31.71
07/02/96 05/24/96 Lear Corp Masland Corp 413.5 26.00 18.18 30.00
01/28/97 05/29/96 Regions Finl,Birmingham,AL Florida First Bancorp Inc,FL 40.9 11.65 19.49 33.14
10/01/96 06/06/96 Investor Group AT&T Capital Corp(AT&T Corp) 2128.6 45.00 38.46 42.29
12/09/96 06/06/96 Greater Bay Bancorp Cupertino National Bancorp,CA 27.7 13.79 20.83 23.03
08/23/96 06/10/96 Vemco Acquisition Corp Bailey Corp 47.8 8.75 6.06 11.11
07/22/96 06/10/96 Merck-Medco Managed Care Inc SysteMed Inc 64.8 3.00 4.35 9.09
07/23/96 06/11/96 Forstmann Little & Co Community Health Systems Inc 1080.0 52.00 19.89 18.86
11/07/96 06/13/96 Citizens Financial Group,RI Farmers & Mechanics Bank,CT 52.9 32.00 62.03 62.03
11/14/96 06/14/96 Western Ohio Financial Corp Seven Hills Financial 11.0 19.70 19.38 19.38
09/16/96 06/20/96 Public Storage Inc Public Storage Properties X 50.2 20.92 13.08 10.83
09/16/96 06/20/96 Public Storage Inc Public Storage Properties XII 55.2 22.34 14.56 15.30
08/23/96 06/21/96 United Communications Group Computer Petroleum Corp 12.0 3.85 46.67 71.11
12/05/96 06/24/96 Renaissance Cosmetics Inc MEM Co Inc 38.2 7.50 81.82 90.48
11/01/96 06/24/96 First Banks America Inc Sunrise Bancorp,Roseville,CA 18.7 4.00 52.38 45.46
02/21/97 06/27/96 Northwest Svgs Bk,Warren,PA Bridgeville Savings Bank 18.3 16.00 10.35 8.48
10/02/96 06/28/96 General Re Corp National Re Corp 904.6 53.00 65.63 60.61
09/27/96 06/28/96 Investor Group Salem Corp 46.6 25.00 23.46 11.73
09/25/96 07/01/96 Rockwell International Corp Brooktree Corp 261.8 15.00 64.38 16.51
03/25/97 07/01/96 Tribune Co Renaissance Commun Corp 1094.4 36.00 19.01 20.50
08/08/96 07/02/96 Beacon Group Energy Investment Ambar Inc 66.6 18.00 17.07 50.00
10/10/96 07/12/96 Astor Chemicals ADCO Technologies Inc 53.8 10.25 51.85 57.69
03/01/97 07/15/96 FBOP Corp,Oak Park,Illinois SDNB Finl Corp, San Diego,CA 25.8 8.00 16.36 18.52
08/27/97 07/19/96 Huntsman Corp Rexene Corp 606.8 16.00 60.00 56.10
10/25/96 07/22/96 Cisco Systems Inc Telebit Corp 196.3 13.35 22.76 4.71
02/19/97 07/23/96 Capstar Broadcasting Partners Osborn Communications Corp 89.9 15.38 50.00 38.20
01/03/97 07/29/96 First Nationwide Bank,CA Cal Fed Bancorp,Los Angeles,CA 1287.8 23.50 32.39 31.47
11/29/96 08/02/96 General Electric Capital Corp First Colony Corp 1799.2 36.15 32.66 39.04
04/07/97 08/05/96 American Radio Systems Corp EZ Communications Inc 687.3 47.30 56.36 89.20
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Premium Premium
Value of Price 1 week 4 weeks
Date Date Transaction Per prior to prior to
Effective Announced Acquiror Name Target Name ($ mil) Share ann. Date ann. date
- --------- --------- ------------------------------ ------------------------------ -------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
02/14/97 08/05/96 PacifiCare Health Systems Inc FHP International Corp 2000.1 33.27 27.37 19.10
10/03/96 08/07/96 Magna International Inc Douglas & Lomason Co 134.6 31.00 90.77 103.28
08/06/97 08/09/96 Houston Industries Inc NorAm Energy Corp 3648.8 16.12 46.52 41.69
11/25/96 08/14/96 Muenchener Rueckversicherungs American Re Corp 3967.8 65.00 41.69 44.04
11/07/96 08/14/96 OSI Holdings Corp Payco American Corp 161.9 14.00 17.90 60.00
09/26/96 08/15/96 Sears Roebuck & Co Orchard Supply Hardware Stores 423.7 35.00 25.56 28.44
09/20/96 08/19/96 Commonwealth Aluminum Corp CasTech Aluminum Group Inc 328.7 20.50 57.69 45.13
12/17/96 08/26/96 Conseco Inc American Travellers Corp 868.3 36.91 37.35 81.17
03/04/97 08/26/96 Conseco Inc Capitol American Financial 715.5 37.71 51.60 56.31
01/09/97 08/26/96 Columbus McKinnon Corp Spreckels Industries Inc 259.4 24.00 24.68 29.73
11/08/96 08/28/96 Doubletree Corp Red Lions Hotels(Red Lion Inn) 1174.1 30.38 33.55 31.38
11/14/96 08/29/96 Cypress Group LLC Amtrol Inc 227.2 28.25 56.94 56.94
01/06/97 08/30/96 NationsBank Corp,Charlotte,NC Boatmen's Bancshares,St Louis 9667.1 60.27 48.36 48.36
03/06/97 09/02/96 Potash Corp of Saskatchewan Arcadian Corp 1723.3 25.71 20.99 26.96
12/23/96 09/09/96 Revco DS Inc Big B Inc(Revco DS Inc) 335.4 17.25 66.27 58.62
01/03/97 09/10/96 Louisiana-Pacific Corp GreenStone Industries Inc 29.2 5.25 52.73 58.49
03/04/97 09/11/96 American Eco Corp Chempower Inc 50.0 6.20 48.06 45.88
06/30/97 09/12/96 Temple-Inland Financial Svcs California Financial Hldg,CA 146.5 30.00 31.87 31.15
03/31/97 09/16/96 Mutual Savings Bk,Milwaukee,WI First Fed Bancshares of Eau Cl 132.7 18.85 25.67 25.67
12/06/96 09/16/96 Schnitzer Steel Industries Inc Proler International Corp 42.5 9.00 125.00 148.28
04/03/97 09/16/96 PennFirst Bancorp,Ellwood,PA Troy Hill Bancorp,Pennsylvania 22.4 21.15 55.23 52.43
01/27/97 09/16/96 City National Bk,Beverly Hills Ventura County Natl Bancorp,CA 46.7 5.03 43.71 38.76
02/28/97 09/26/96 AH Belo Corp Providence Journal Co 1429.6 32.27 64.43 65.49
06/27/97 09/30/96 Texas Pacific Group Inc Belden & Blake Corp 405.7 27.00 27.81 31.71
02/28/97 09/30/96 Cullen/Frost Bankers Inc,Texas Corpus Christi Bancshares,TX 32.4 18.84 17.75 17.75
04/25/97 10/01/96 Prestige Fragrance & Cosmetics Cosmetic Center Inc 32.8 7.63 45.33 103.47
12/02/96 10/07/96 Computer Associates Intl Inc Cheyenne Software Inc 1247.6 30.50 34.81 30.48
11/22/96 10/08/96 Nash Finch Co Super Food Services Inc 164.2 15.50 36.26 29.17
06/03/97 10/15/96 Investor Group Conrail Inc 10435.9 115.00 60.28 60.28
12/23/96 10/15/96 Berkshire Hathaway Inc FlightSafety International 1518.1 50.00 10.80 10.80
01/27/97 10/16/96 City National Bk,Beverly Hills Riverside Natl Bk,Riverside,CA 42.8 18.00 2.86 29.73
02/27/97 10/17/96 Investor Group Triad Systems Corp 193.1 9.25 60.87 89.74
03/31/97 10/21/96 Investor Group Detroit & Canada Tunnel Corp 36.5 54.00 74.19 54.29
04/16/97 10/23/96 Thomas H Lee Equity Fund III Syratech Corp 304.4 32.00 28.00 29.29
07/01/97 10/31/96 Patriot American Hospitality California Jockey Club/Bay 199.7 33.00 88.57 103.08
12/18/96 10/31/96 Food Lion Inc Kash N' Karry Food Stores Inc 347.1 26.00 33.33 6.67
02/27/97 11/04/96 JC Penney Co Eckerd Corp 3298.5 35.00 28.44 29.63
03/05/97 11/04/96 Citizens Bank of Massachusetts Grove Banks,Chesnut Hill,MA 78.7 51.00 46.76 50.00
05/19/97 11/04/96 Glendale Fed Bk,Glendale,CA TransWorld Bancorp,California 63.2 18.25 12.31 30.36
03/14/97 11/05/96 Harbour Group Ltd Panatech Research&Development 29.2 7.00 55.56 51.35
06/13/97 11/07/96 Shoreline Financial Corp,MI SJS Bancorp Inc,St Joseph,MI 26.5 27.00 13.68 24.14
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Value of Price 1 week 4 weeks
Date Date Transaction Per prior to prior to
Effective Announced Acquiror Name Target Name ($ mil) Share ann. Date ann. date
- --------- --------- ------------------------------ ------------------------------ -------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
06/12/97 11/12/96 Investor Group Leslie's Poolmart 112.8 14.50 31.82 31.82
12/17/96 11/13/96 IBM Corp Edmark Corp 123.8 15.50 63.16 31.92
01/20/97 11/13/96 FCY Inc Medex Inc 150.6 23.50 57.98 66.74
06/27/97 11/14/96 Vermont Financial Services,VT Eastern Bancorp,Williston,VT 91.9 24.23 4.22 16.77
01/15/97 11/15/96 Mountasia Entertainment Mountasia Entertainment 98.2 3.50 12.00 40.00
01/02/97 11/18/96 Intermet Corp Sudbury Inc 155.4 12.50 25.00 9.89
05/01/97 11/22/96 ABN-AMRO Holding NV Standard Fed Bancorp,Troy,MI 1971.1 59.00 6.79 15.40
02/28/97 11/25/96 PCA International Inc American Studios Inc 66.3 2.50 110.53 166.67
01/09/97 11/25/96 Applied Materials Inc Opal Inc 189.6 18.50 64.44 105.56
12/30/96 11/26/96 Clorox Co Armor All Products(McKesson) 410.1 19.09 13.97 13.97
01/16/97 11/27/96 Bell Industries Inc Milgray Electronics Inc 100.0 14.77 16.99 20.57
04/30/97 11/29/96 CityFront Center LLC Chicago Dock and Canal Trust 177.9 25.00 22.70 22.70
01/06/97 11/29/96 Tyco International Ltd ElectroStar Inc 111.0 14.00 27.27 16.67
01/30/97 12/02/96 Venator Group Inc Eastbay Inc 146.0 24.00 28.00 23.08
05/01/97 12/03/96 Dime Bancorp Inc,New York,NY BFS Bankorp Inc,New York,NY 91.5 52.00 16.85 22.35
02/26/97 12/05/96 ServiceMaster LP Barefoot Inc 230.9 16.00 28.00 42.22
04/11/97 12/05/96 Public Storage Inc Public Storage Properties XIV 82.4 26.00 30.82 31.65
04/11/97 12/05/96 Public Storage Inc Public Storage Properties XV 79.1 26.00 28.40 32.48
01/10/97 12/05/96 Hadco Corp Zycon Corp 211.7 18.00 46.94 94.60
02/21/97 12/11/96 Aon Corp Alexander & Alexander Services 1227.4 17.50 8.53 9.38
01/27/97 12/16/96 Zurn Industries Inc Eljer Industries Inc 175.6 24.00 84.62 90.10
01/27/97 12/16/96 Millipore Corp Tylan General Inc 147.7 16.00 26.73 26.73
03/25/97 12/19/96 NIPSCO Industries Inc IWC Resources Corp 290.6 32.00 39.13 45.46
07/01/97 12/23/96 Mercantile Bancorp,St Louis,MO Roosevelt Finl Group,Missouri 1187.1 24.43 32.05 26.09
04/16/97 12/24/96 American General Corp Home Beneficial Corp 665.1 39.00 39.29 50.00
06/09/97 12/26/96 Commerce Security Bancorp,CA Eldorado Bancorp,Tustin,CA 91.7 23.00 14.29 12.88
05/01/97 12/27/96 US Bancorp,Portland,Oregon Business & Professional Bk,CA 33.5 18.00 20.00 30.91
02/25/97 01/07/97 MedTrans Inc(Laidlaw Inc) American Medical Response Inc 1011.1 40.00 23.08 36.75
02/10/97 01/07/97 DLB Oil & Gas Inc Bonray Drilling Corp 12.7 30.00 11.11 30.44
04/24/97 01/17/97 AMF Bowling Centers(AMF Group) American Recreation Centers 70.7 8.50 33.33 70.00
07/08/97 01/21/97 First Maryland Bancorp,MD Dauphin Deposit Corp,PA 1343.4 46.93 43.28 48.97
03/05/97 01/22/97 Western Atlas Inc Norand Corp 320.8 33.50 87.41 94.20
07/02/97 01/24/97 American Standard Inc INCSTAR Corp(Sorin Biomedical) 106.3 6.32 53.21 68.53
07/24/97 01/27/97 EndoSonics Corp Cardiometrics Inc 56.8 7.54 13.81 47.12
03/07/97 01/27/97 Honeywell Inc Measurex Corp 597.0 35.00 42.13 45.83
03/10/97 02/03/97 Scotsman Industries Inc Kysor Industrial Corp 359.2 43.00 17.01 24.64
03/31/97 02/10/97 Vencor Inc TheraTx Inc 378.2 17.10 35.45 59.07
03/24/97 02/11/97 Johnson & Johnson Innotech Inc 135.6 13.75 64.18 54.93
09/17/97 02/14/97 Greenwich Air Services Inc UNC Inc 442.7 15.00 41.18 36.36
06/27/97 02/18/97 NGC Corp Destec Energy Inc 1222.4 21.65 80.42 63.40
08/06/97 02/19/97 United Bankshares Inc,WV First Patriot Bankshares,VA 35.4 17.00 9.68 4.62
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Value of Price 1 week 4 weeks
Date Date Transaction Per prior to prior to
Effective Announced Acquiror Name Target Name ($ mil) Share ann. Date ann. date
- --------- --------- ------------------------------ ------------------------------ -------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
07/07/97 02/25/97 Pacific Century Financial Corp CU Bancorp,Encino,California 178.4 15.34 18.00 25.22
07/21/97 02/26/97 MassBank Corp,Reading,MA Glendale Co-Operative Bank,MA 6.9 28.00 33.33 40.00
08/01/97 02/28/97 CIGNA Corp Healthsource Inc 1652.7 21.75 32.82 64.15
06/27/97 03/04/97 Ultimate Electronics Inc Audio King Corp 6.0 2.10 68.00 68.00
08/13/97 03/06/97 Fireman's Fund Insurance Co Crop Growers Corp 82.1 10.25 15.49 41.38
09/02/97 03/10/97 General Electric Co Greenwich Air Services Inc 519.2 31.00 33.33 34.78
04/15/97 03/11/97 PacifiCorp Holdings Inc TPC Corp 408.5 13.41 65.05 55.48
10/01/97 03/14/97 Marshall & Ilsley,Milwaukee,WI Security Capital,Milwaukee,WI 1115.8 111.06 32.61 39.92
09/04/97 03/17/97 TCF Finl Corp,Minneapolis,MN Standard Financial,Chicago,IL 428.0 25.81 28.25 24.76
06/17/97 03/20/97 InvestCorp Falcon Building Products Inc 584.5 17.75 49.47 52.69
06/12/97 03/21/97 Olicom A/S CrossComm Corp 84.6 8.93 70.17 70.17
04/28/97 03/24/97 Elsevier Science MDL Information Systems 310.7 32.00 43.82 54.22
05/07/97 03/25/97 IBP Inc (Occidental Petroleum) Foodbrands America Inc 657.5 23.40 50.97 61.38
09/03/97 03/26/97 Hearst Broadcasting Group Argyle Television Inc 322.2 26.50 16.48 14.60
08/01/97 03/26/97 Deposit Guaranty,Jackson,MS CitiSave Finl,Baton Rouge,LA 20.3 20.50 50.46 46.43
10/01/97 03/31/97 Astoria Finl,Lake Success,NY Greater NY Svgs Bk,New York,NY 318.1 25.16 56.01 62.30
06/03/97 03/31/97 Moore Corp Ltd Peak Technologies Group Inc 169.8 18.00 97.26 65.52
08/28/97 04/08/97 Citizens Financial Group,RI BNH Bancshares,New Haven,CT 58.0 15.50 26.53 19.23
06/12/97 04/08/97 Jacor Communications Inc Premiere Radio Networks Inc 208.9 18.78 19.23 19.23
06/24/97 04/09/97 Public Storage Inc Public Storage Properties XVI 84.2 20.01 5.32 2.62
06/24/97 04/09/97 Public Storage Inc Public Storage Ppties XVIII 78.6 19.55 7.12 2.90
06/24/97 04/09/97 Public Storage Inc Public Storage Properties XIX 67.9 16.52 3.25 3.25
05/13/97 04/09/97 Tomkins PLC Stant Corp 574.0 21.50 48.28 49.57
07/21/97 04/09/97 Procter & Gamble Co Tambrands Inc 2003.9 50.00 14.94 14.94
06/13/97 04/10/97 Hedstrom Corp(Hedstrom Hldgs) ERO Inc 203.6 11.25 16.88 30.44
06/26/97 04/10/97 Compaq Computer Corp Microcom Inc 267.6 16.25 91.18 35.42
11/12/97 04/14/97 Neptune Orient Lines Ltd APL Ltd 878.5 33.50 65.43 42.55
01/05/98 04/14/97 Patriot Amer Hosp/Wyndham Intl Wyndham Hotel Corp 773.1 30.53 44.52 48.93
06/30/97 04/15/97 Lernout & Hauspie Speech Kurzweil Applied Intelligence 51.3 5.52 69.69 66.49
07/10/97 04/18/97 Investor Group LIVE Entertainment Inc 53.1 6.00 6.67 50.00
05/28/97 04/21/97 ITT Industries Inc Goulds Pumps Inc 922.1 37.00 57.45 60.87
06/10/97 04/21/97 Harcourt General Inc National Education Corp 776.1 21.00 54.13 40.00
09/04/97 04/22/97 Fox Kids Worldwide Inc International Family Ent Inc 1862.9 35.00 95.80 107.41
12/12/97 04/25/97 Peoples Bancorp,Marietta,OH Gateway Bancorp,KY 20.6 18.75 15.39 25.00
10/01/97 05/01/97 Area Bancshares Corp,Kentucky Cardinal Bancshares,Kentucky 96.0 60.26 33.91 31.00
08/01/97 05/01/97 Chart Industries Inc Cryenco Sciences Inc 19.2 2.75 76.00 72.55
07/30/97 05/01/97 Choucroute Partners David White Inc 5.9 12.00 14.29 18.52
08/19/97 05/05/97 Giant Eagle Inc Riser Foods Inc 468.5 42.00 29.23 26.79
06/13/97 05/05/97 Incentive AB Vivra Inc 1660.5 35.62 41.77 35.70
08/15/97 05/06/97 GTE Corp BBN Corp 713.8 29.00 32.57 64.54
01/05/98 05/06/97 Foundation Health Systems Inc Physicians Health Services Inc 268.2 28.25 26.97 51.68
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Value of Price 1 week 4 weeks
Date Date Transaction Per prior to prior to
Effective Announced Acquiror Name Target Name ($ mil) Share ann. Date ann. date
- --------- --------- ------------------------------ ------------------------------ -------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
07/25/97 05/06/97 Riddell Sports Inc Varsity Spirit 91.0 18.90 28.14 23.93
06/03/98 05/07/97 Unitrin Inc Reliable Life Insurance Co 261.1 120.13 51.11 52.06
09/10/97 05/08/97 Nicolet Biomedical Inc Imex Medical Systems Inc 9.3 1.35 2.76 2.76
11/04/97 05/08/97 Apollo Management LP Living Centers of America Inc 1048.2 40.50 22.73 41.49
10/16/97 05/12/97 CTS Corp Dynamics Corp of America 244.6 64.08 94.17 112.70
08/14/97 05/21/97 Oxford Automotive Inc Howell Industries Inc 23.0 37.00 30.40 32.14
10/06/97 05/23/97 Price Communications Corp Palmer Wireless Inc 870.4 17.50 55.56 64.71
08/08/97 05/27/97 Columbia Natural Resources Inc Alamco Inc 102.8 15.75 11.50 16.67
07/03/97 05/28/97 Owens Corning Fibreboard Corp 631.2 55.00 22.22 49.66
07/09/97 05/30/97 Whitehall Street Real Estate Integrated Living Communities 79.7 11.50 21.05 50.82
10/16/97 05/30/97 Colonnade Capital LLC National Picture and Frame Co 60.3 12.00 28.00 28.00
09/08/97 06/03/97 Humana Inc Physician Corp of America 405.1 7.00 12.00 23.08
07/14/97 06/05/97 Intermedia Communications Inc DIGEX Inc 171.6 13.00 35.95 31.65
10/14/97 06/06/97 Excel Communications Inc Telco Communications Group Inc 1046.5 29.24 23.77 26.44
10/01/97 06/09/97 SAFECO Corp American States Financial Corp 3127.1 47.00 48.62 57.32
07/15/97 06/09/97 Atlas Copco North America Inc Prime Service Inc 1112.0 32.00 29.95 31.28
10/01/97 06/12/97 Thyssen AG Giddings & Lewis Inc 703.0 21.00 9.80 0.60
08/29/97 06/16/97 United Dominion Industries Ltd Core Industries Inc 275.2 25.00 37.93 49.25
09/30/97 06/16/97 Investor Group Frederick's of Hollywood, Inc. 69.4 7.75 44.47 25.95
10/10/97 06/16/97 Genesis Eldercare Multicare Cos Inc 1249.1 28.00 13.71 34.94
07/24/97 06/17/97 Monterey Resources Inc McFarland Energy Inc 111.2 18.55 41.33 44.78
07/25/97 06/17/97 CCL Industries Inc Seda Specialty Packaging Corp 182.6 29.00 36.47 52.63
08/15/97 06/19/97 Gateway 2000 Inc Advanced Logic Research Inc 206.8 15.50 30.53 34.78
11/13/97 06/23/97 Crestar Finl Corp,Richmond,VA American National Bancorp,MD 75.2 20.32 33.21 36.57
10/17/97 06/23/97 General Motors Acceptance(GM) Integon Corp 517.1 26.00 92.59 74.79
10/14/97 06/24/97 Louis Dreyfus Natural Gas American Exploration Co 275.5 15.96 15.03 21.60
07/25/97 06/24/97 JW Childs Equity Partners LP Jillians Entertainment Corp 4.7 0.50 77.78 45.46
09/29/97 06/24/97 Three Rivers Holding Corp SMT Health Services Inc 75.6 11.75 2.17 8.05
10/09/97 06/30/97 Eaton Corp Fusion Systems Corp 308.6 39.00 9.86 24.30
12/18/97 07/01/97 HMN Financial,Spring Valley,MN Marshalltown Financial Corp,IA 25.9 17.51 12.97 16.73
09/23/97 07/02/97 Bunzl PLC American Filtrona Corp 183.5 46.52 2.24 3.38
10/28/97 07/02/97 Summa Industries Inc Calnetics Corp 23.4 7.35 33.64 25.11
09/26/97 07/03/97 Port Royal Holdings Inc Krystal Co 145.4 14.50 169.77 176.19
08/06/97 07/03/97 Raab Karcher AG(VEBA AG) Wyle Electronics 633.0 50.00 38.41 35.14
10/24/97 07/08/97 ING Groep NV Equitable of Iowa Cos 2626.4 68.00 20.35 21.70
09/23/97 07/09/97 CDSI Holding Corp Control Data Systems Inc 273.9 20.25 30.65 35.00
10/28/97 07/14/97 Investor Group Katz Media Group 371.9 11.00 69.23 93.41
09/04/97 07/15/97 Nortek Inc Ply-Gem Industries Inc 476.3 19.50 16.42 19.08
09/29/97 07/17/97 Lucent Technologies Inc Octel Communications Corp 1824.8 31.00 37.40 41.31
12/02/97 07/23/97 Benihana Inc Rudy's Restaurant Group 18.8 5.00 70.21 72.04
09/15/97 07/24/97 Mallinckrodt Inc Nellcor Puritan-Bennett 1858.4 28.50 43.40 57.24
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Value of Price 1 week 4 weeks
Date Date Transaction Per prior to prior to
Effective Announced Acquiror Name Target Name ($ mil) Share ann. Date ann. date
- --------- --------- ------------------------------ ------------------------------ -------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
02/02/98 07/28/97 Intel Corp Chips and Technologies Inc 422.9 17.50 32.08 68.68
10/08/97 07/28/97 Sun Healthcare Group Inc Regency Health Services Inc 587.9 22.00 50.43 43.09
09/24/97 07/31/97 American Industrial Partners Bucyrus International Inc 193.3 18.00 46.94 71.43
01/27/98 07/31/97 Western Bancorp,California Santa Monica Bank 198.2 28.00 17.59 28.74
09/26/97 08/01/97 Integrated Health Services Inc Community Care of America Inc 94.0 4.00 18.52 88.24
12/02/97 08/07/97 SPS Technologies Inc Magnetic Technologies Corp 16.8 5.00 25.00 33.33
12/22/97 08/08/97 USF&G Corp Titan Holdings Inc 278.1 22.47 19.06 24.85
12/19/97 08/11/97 Confetti Acquisition Inc Amscan Holdings Inc 334.9 16.50 37.50 46.67
09/17/97 08/12/97 Steris Corp Isomedix Inc 139.8 20.50 15.49 13.89
03/03/98 08/12/97 Hicks Muse Tate & Furst Inc LIN Television Corp 1960.6 55.00 18.75 18.01
09/24/97 08/14/97 MedPartners Inc Talbert Medical Management 189.0 63.00 18.87 36.96
12/29/97 08/14/97 Madison Dearborn Partners Tuesday Morning Corp 298.6 25.00 25.79 11.11
12/05/97 08/14/97 Comforce Corp Uniforce Services Inc 140.7 32.24 37.56 52.62
10/21/97 08/25/97 Household International Inc ACC Consumer Finance Corp 186.9 21.39 34.75 29.64
10/03/97 08/25/97 Cambrex Corp BioWhittaker Inc 130.5 11.63 38.87 47.68
12/22/97 08/26/97 Imperial Holly Corp Savannah Foods & Industries 582.9 20.25 14.89 17.39
02/25/98 08/28/97 Wellsford Real Properties Inc Value Property Trust 186.6 16.17 20.90 18.68
10/10/97 08/28/97 Applied Power Inc Versa Technologies Inc 141.9 24.63 33.11 31.33
01/09/98 09/04/97 Tyson Foods Inc Hudson Foods Inc 648.4 21.23 31.63 28.64
11/26/97 09/05/97 Misys PLC Medic Computer Systems Inc 915.8 35.00 12.00 25.00
12/22/97 09/11/97 Pillowtex Corp Fieldcrest Cannon Inc 768.2 34.00 8.58 31.72
12/09/97 09/12/97 Tivoli Systems Inc(IBM Corp) Unison Software Inc 183.0 15.00 25.00 22.45
02/06/98 09/15/97 Star Banc Corp,Cincinnati,OH Great Financial Corp,Kentucky 663.5 44.00 23.51 33.84
01/16/98 09/19/97 Marshall Industries Sterling Electronics Corp 217.6 21.00 30.23 57.01
12/05/97 09/22/97 Conseco Inc Washington National Corp 424.0 33.25 4.11 12.24
01/22/98 09/23/97 Investor Group El Chico Restaurants Inc 49.2 12.75 75.86 104.00
01/12/98 09/23/97 Shell Oil(Royal Dutch Petro) Tejas Gas Corp 2165.6 61.50 22.39 33.70
11/24/97 09/24/97 Ligand Pharmaceuticals Inc Allergan Ligand Retinoid 71.4 21.97 11.59 7.83
02/19/98 09/25/97 Carpenter Technology Corp Talley Industries Inc 309.4 12.00 10.98 34.27
12/22/97 09/29/97 Wallace Computer Services Inc Graphic Industries Inc 424.5 21.75 19.18 34.88
11/26/97 09/30/97 AHC Acquisition Corp Arbor Health Care Co 424.2 45.00 19.60 26.76
12/05/97 10/01/97 Land O' Lakes Inc Alpine Lace Brands Inc 48.4 9.13 48.98 46.00
12/23/97 10/09/97 Borden Chemical Inc(Borden) Melamine Chemicals Inc 119.7 20.50 72.63 70.83
11/19/97 10/10/97 Kennametal Inc Greenfield Industries Inc 957.0 38.00 26.67 44.08
11/21/97 10/15/97 FinishMaster Inc(Lacey Distn) Thompson PBE Inc 69.3 8.00 33.33 42.22
02/12/98 10/16/97 Hartford Financial Services Omni Insurance Group Inc 184.7 31.75 75.78 130.91
12/29/97 10/17/97 Emerson Electric Co Computational Systems Inc 158.6 29.65 48.25 62.47
11/19/97 10/17/97 BTR PLC Exide Electronics Group Inc 583.2 29.00 133.17 149.46
03/31/98 10/17/97 First Federal Savings,Iowa GFS Bancorp Inc,Grinnell,IA 17.9 17.65 7.38 13.87
02/24/98 10/20/97 Starwood Hotels & Resorts ITT Corp 13748.2 85.00 98.25 95.40
03/06/98 10/20/97 Kinder Morgan Energy Partners Santa Fe Pacific Pipeline 1473.0 54.21 33.24 38.56
</TABLE>
<PAGE> 68
<TABLE>
<CAPTION>
Premium Premium
Value of Price 1 week 4 weeks
Date Date Transaction Per prior to prior to
Effective Announced Acquiror Name Target Name ($ mil) Share ann. Date ann. date
- --------- --------- ------------------------------ ------------------------------ -------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
01/07/98 10/21/97 Berkshire Hathaway Inc International Dairy Queen Inc 596.9 27.00 9.09 9.37
02/27/98 10/23/97 Eastern Bank Corp,Lynn,MA Emerald Isle Bancorp,Quincy,MA 76.6 33.00 28.78 33.33
02/10/98 10/27/97 National Australia Bank Ltd HomeSide Inc 1230.1 27.83 12.14 7.28
04/01/98 10/28/97 First Empire State Corp,NY ONBANCorp Inc,Syracuse,NY 893.0 69.50 12.89 21.40
05/22/98 11/03/97 FirstMerit Corp CoBancorp Inc 157.3 44.50 30.88 52.14
03/03/98 11/12/97 Tekni-Plex Inc PureTec Corp 324.6 3.50 34.94 31.77
03/25/98 11/13/97 Investor Group Chartwell Leisure Inc 240.8 17.25 4.55 11.29
01/08/98 11/18/97 Cendant Corp Jackson Hewitt 468.2 68.00 21.70 47.83
02/27/98 11/19/97 Texas Instruments Inc Amati Communications Corp 459.8 20.00 44.14 13.48
01/28/98 11/21/97 TRW Inc BDM International Inc 888.0 29.50 43.47 38.01
01/20/98 11/21/97 Co-Steel Inc New Jersey Steel(Von Roll) 173.5 23.00 170.59 166.67
02/03/98 11/24/97 Davel Communications Group Inc Communications Central Inc 102.4 10.50 25.37 12.00
01/07/98 11/24/97 Cypress Group LLC General Host Corp 326.2 5.50 62.96 79.59
02/25/98 11/26/97 Investor Group Universal Hospital Services 133.0 15.50 29.17 25.25
12/30/97 11/28/97 Lund International Holdings Deflecta-Shield Corp 89.8 16.00 33.33 77.78
06/02/98 12/02/97 Patriot Amer Hosp/Wyndham Intl Interstate Hotels Co 2055.9 37.50 8.70 27.39
02/13/98 12/12/97 Voith Sulzer Paper Technology Impact Systems Inc 28.6 2.75 49.15 44.26
05/29/98 12/12/97 Bethlehem Steel Corp Lukens Inc 700.2 30.00 94.33 69.61
05/01/98 12/15/97 US Bancorp,Minneapolis,MN Piper Jaffray Cos 767.8 37.25 24.17 54.01
01/30/98 12/16/97 SulzerMedica(Gebrueder Sulzer) Spine-Tech Inc 621.1 52.00 52.94 55.81
01/23/98 12/17/97 InvaCare Corporation Suburban Ostomy Supply Co Inc 130.8 11.75 13.25 13.25
06/17/98 12/19/97 Harsco Corp Chemi-Trol Chemical Co 46.1 23.00 61.40 64.29
05/20/98 12/22/97 MDC Communications Corp Artistic Greetings Inc 33.6 5.70 47.10 52.00
04/01/98 12/23/97 Outsourcing Solutions Inc Union Corp 193.0 31.50 13.51 23.53
07/06/98 12/30/97 Pacific Bank NA,CA Sterling West Bancorp,CA 12.2 7.11 35.43 23.65
07/17/98 01/05/98 Meditrust Acquisition Co La Quinta Inns Inc 2907.5 26.00 35.95 35.95
04/01/98 01/06/98 Oakwood Homes Corp Schult Homes Corp 101.4 22.50 10.43 19.21
02/19/98 01/12/98 Research Institute of America Computer Language Research Inc 325.4 22.50 62.16 69.81
07/31/98 01/13/98 CertainTeed Corp Bird Corp 39.2 5.50 18.92 29.41
06/02/98 01/14/98 EastGroup Properties Meridian Point Realty Trust 51.7 8.50 65.85 88.89
10/05/98 01/20/98 Albertson's Inc Buttrey Food and Drug Stores 139.2 15.50 44.19 47.62
05/27/98 01/20/98 Investor Group Regal Cinemas Inc 1462.7 31.00 10.71 34.78
05/15/98 01/21/98 Microsemi Corp BKC Semiconductors Inc 13.3 9.17 59.48 66.73
06/11/98 01/26/98 Compaq Computer Corp Digital Equipment Corp 9123.7 60.00 50.25 62.45
03/03/98 01/27/98 Sage Group PLC State of the Art Inc 245.2 22.00 35.39 35.39
03/05/98 01/28/98 Kerr Group Inc Sun Coast Industries Inc 45.5 10.75 62.26 84.95
06/05/98 01/29/98 US Aggregates Inc Monroc Inc 50.3 10.77 10.46 6.37
05/21/98 01/29/98 AmeriServe Food Distn Inc ProSource Inc(Onex Corp) 343.3 15.00 106.90 100.00
06/18/98 02/09/98 USA Waste Services Inc American Waste Services 122.1 4.00 156.00 166.67
06/30/98 02/09/98 Banco Bilbao Vizcaya SA PonceBank 164.5 26.10 14.10 25.78
04/16/98 02/09/98 Fountain View(Heritage) Summit Care Corp 275.1 21.00 31.25 37.71
</TABLE>
<PAGE> 69
<TABLE>
<CAPTION>
Premium Premium
Value of Price 1 week 4 weeks
Date Date Transaction Per prior to prior to
Effective Announced Acquiror Name Target Name ($ mil) Share ann. Date ann. date
- --------- --------- ------------------------------ ------------------------------ -------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
06/04/98 02/10/98 Canadian National Railway Co Illinois Central Corp 2931.0 39.00 20.00 18.86
06/10/98 02/11/98 Sombrero Acquisition Corp MTL Inc 250.1 40.00 38.53 56.10
05/20/98 02/11/98 Wolters Kluwer NV Waverly Inc 375.6 39.00 50.73 50.73
08/17/98 02/17/98 HB Acquisition Corp Bell Sports Corp 165.7 10.25 13.10 8.61
05/27/98 02/17/98 Applied Graphics Technologies Devon Group Inc 474.4 60.08 32.03 37.91
10/15/98 02/19/98 Hollywood Park Inc Casino Magic Corp 344.8 2.27 32.07 32.07
04/06/98 02/24/98 Siebe PLC Wonderware Corp 362.7 24.00 59.34 79.44
08/17/98 03/02/98 El Paso Natural Gas Co DeepTech International 375.4 14.00 9.80 15.46
04/30/98 03/02/98 Sunbeam Corp First Alert Inc 129.2 5.25 90.91 110.00
04/30/98 03/02/98 Sunbeam Corp Signature Brands USA Inc 81.7 8.25 60.98 106.25
05/20/98 03/05/98 Xerox Corp Intelligent Electronics Inc 341.6 7.60 19.22 34.37
07/31/98 03/06/98 Aluminum Co of America{Alcoa} Alumax Inc 3944.2 49.39 33.26 36.25
04/30/98 03/06/98 ASK AS Proxima Corp 82.9 11.00 25.71 23.94
06/25/98 03/09/98 American Cellular Corp PriCellular Corp 1385.2 14.00 16.67 16.06
06/19/98 03/10/98 Communications Instruments Inc Corcom Inc 51.7 13.00 31.65 36.84
04/20/98 03/12/98 Great Universal Stores PLC Metromail Corp 837.9 34.50 28.37 30.19
07/31/98 03/13/98 Investor Group MedCath Inc 227.8 19.00 10.95 34.51
07/10/98 03/16/98 Abbott Laboratories International Murex Tech Corp 232.7 13.00 38.21 50.73
05/11/98 03/30/98 Knowledge Beginnings Inc Children's Discovery Centers 89.1 12.25 16.67 25.64
07/21/98 04/03/98 NE Restaurant Co Inc Bertucci's Inc 96.5 10.50 35.48 35.48
05/19/98 04/08/98 Huntsman Packaging Corp Blessings Corp 269.7 21.00 18.31 34.94
05/15/98 04/09/98 Richfood Holdings Inc Dart Group Corp 193.3 160.00 11.89 19.40
07/29/98 04/09/98 Camelot Music Holdings Spec's Music Inc 26.8 3.30 65.00 65.00
06/26/98 04/10/98 CompuCom SystemsInc(Safeguard) Dataflex Corp 25.2 4.10 9.33 23.77
05/29/98 04/15/98 Siebe PLC Simulation Sciences Inc 146.5 10.00 16.79 11.11
07/21/98 04/17/98 Sterling Commerce Inc XcelleNet Inc 214.3 22.02 12.55 7.73
08/25/98 04/21/98 Investor Group PCA International Inc 232.5 26.50 17.78 20.46
06/24/98 04/21/98 General Electric Co PLC Tracor Inc 1323.5 40.00 16.79 25.00
06/29/98 04/22/98 Evans & Sutherland Computer AccelGraphics Inc 55.9 5.75 22.67 21.05
07/31/98 04/23/98 Piccadilly Cafeterias Inc Morrison Restaurants Inc 46.2 5.00 73.91 81.82
08/30/98 04/27/98 Genesis Health Ventures Inc Vitalink Pharmacy Services Inc 678.4 22.50 12.15 6.51
06/01/98 04/27/98 Lucent Technologies Inc Yurie Systems Inc 1044.1 35.00 17.40 49.73
07/20/98 04/28/98 Snap-On Inc Hein-Werner Corp 37.5 12.60 65.25 80.00
06/10/98 05/04/98 Tropical Sportswear Intl Corp Farah Inc 93.6 9.00 44.00 39.81
06/29/98 05/04/98 ARCO Union Texas Petroleum Holdings 2741.4 29.00 46.84 36.47
09/25/98 05/05/98 Investor Group Allied Digital Technologies Co 69.2 5.00 14.29 37.93
08/06/98 05/06/98 Fidelity & Deposit Co of MD Mountbatten Inc 43.4 14.60 6.18 4.29
06/15/98 05/08/98 Agrobios(Desc SA de CV) Authentic Specialty Foods Inc 141.9 17.00 13.33 37.37
07/14/98 05/11/98 Diamond Multimedia Systems Inc Micronics Computers Inc 31.7 2.45 15.29 50.77
06/26/98 05/13/98 Filtronic Comtek PLC Sage Laboratories Inc 20.2 17.50 34.62 35.92
08/19/98 05/18/98 Dillard's Inc Mercantile Stores Co Inc 2943.1 80.00 9.59 15.42
</TABLE>
<PAGE> 70
<TABLE>
<CAPTION>
Premium Premium
Value of Price 1 week 4 weeks
Date Date Transaction Per prior to prior to
Effective Announced Acquiror Name Target Name ($ mil) Share ann. Date ann. date
- --------- --------- ------------------------------ ------------------------------ -------- ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
09/15/98 05/20/98 GE Medical Systems InnoServ Technologies 13.1 4.25 32.04 41.67
10/22/98 05/20/98 Licking Rural Electrification National Gas & Oil Co 93.0 13.00 18.18 26.06
07/22/98 05/22/98 Gambrinus Co Pete's Brewing Co 69.4 6.38 39.73 42.66
07/07/98 05/28/98 Bowne & Co Inc Donnelley Enterprise Solutions 105.2 21.00 61.54 83.61
08/28/98 06/01/98 US Xpress Enterprises Inc PST Vans Inc 83.9 7.47 35.82 10.67
07/21/98 06/12/98 Armstrong World Industries Inc Triangle Pacific Corp 1124.3 55.50 26.50 24.02
08/31/98 06/16/98 Linsalata Capital Partners Personnel Management Inc 34.9 16.00 23.08 23.08
09/08/98 06/17/98 Carlton Communications PLC Nimbus CD International Inc 264.9 11.50 5.75 10.84
07/28/98 06/18/98 Lyondell Petrochemical Co ARCO Chemical Co(ARCO) 5645.7 57.75 12.27 3.36
09/22/98 06/29/98 Key Energy Group Inc Dawson Production Services Inc 348.8 17.50 50.54 66.67
09/21/98 07/07/98 Investor Group Republic Engineered Steels 417.8 7.25 68.12 45.00
09/18/98 07/14/98 Henkel KGaA DEP Corp 89.7 5.25 95.35 78.72
09/02/98 07/17/98 DLJ Merchant Banking Inc DeCrane Aircraft Holdings Inc 181.5 23.00 28.67 33.82
10/06/98 07/20/98 SPX Corp General Signal Corp 2318.7 45.00 22.66 19.40
09/10/98 07/28/98 Network Associates Inc CyberMedia Inc 130.1 9.50 38.18 117.14
09/11/98 07/29/98 EBC Texas Acquisition Corp E-Z Serve Corp 43.2 0.60 20.00 20.00
10/15/98 07/30/98 Hercules Inc BetzDearborn Inc 3090.3 72.00 94.60 73.49
Median 31.64 36.42
Average 36.71 42.79
Adj. Avg. 36.45 42.56
Below 20% 118 80
% Below 20% 30.6% 20.7%
</TABLE>
<PAGE> 71
Stock Price Analysis
United Foods, Inc.
Daily Price & Volume Trading Statistics Since 12/31/97
United Foods, Inc. - Class A United Foods, Inc. - Class B
(GRAPH) (GRAPH)
27
<PAGE> 72
Stock Price Analysis
UNITED FOODS CLASS A
Shares Traded at Various Prices From 11/13/97 to 11/13/98
<TABLE>
<CAPTION>
Cumulative
---------------------------------------------
Days % of Total % of Total Days % of Total % of Total
Trading Daily Avg. Days Trading Trading Daily Avg. Days Trading Trading
Range (1) In Range Traded Volume Volume In Range Traded Volume Volume
------------- ---------- ---------- ------- ---------- ---------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
< $2.25 0 0.0% -- 0.0% 0 0.0% -- 0.0%
$2.25 - $2.40 7 2.7% 7,000 1.5% 7 2.7% 7,000 1.5%
$2.40 - $2.55 36 13.7% 27,500 5.8% 43 16.4% 34,500 7.2%
$2.55 - $2.70 34 13.0% 72,300 15.1% 77 29.4% 106,800 22.3%
$2.70 - $2.85 40 15.3% 87,500 18.3% 117 44.7% 194,300 40.6%
$2.85 - $3.00 21 8.0% 32,000 6.7% 138 52.7% 226,300 47.3%
$3.00 - $3.15 15 5.7% 19,400 4.1% 153 58.4% 245,700 51.4%
$3.15 - $3.30 34 13.0% 53,200 11.1% 187 71.4% 298,900 62.5%
$3.30 - $3.45 45 17.2% 65,900 13.8% 232 88.5% 364,800 76.3%
$3.45 - $3.60 17 6.5% 40,400 8.5% 249 95.0% 405,200 84.8%
$3.60 - $3.75 11 4.2% 36,600 7.7% 260 99.2% 441,800 92.4%
$3.75 - $3.90 2 0.8% 36,200 7.6% 262 100.0% 478,000 100.0%
>= - $3.90 0 0.0% -- 0.0% 262 100.0% 478,000 100.0%
Total: 262 100.0% 478,000 100.0%
</TABLE>
UNITED FOODS CLASS A
Shares Traded at Various Prices From 11/13/97 to 11/13/98
(GRAPH)
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 1,824 shares or $5,672.19 and the
average daily close has been $3.00.
28
<PAGE> 73
Stock Price Analysis
UNITED FOODS CLASS B
Shares Traded at Various Prices From 11/13/97 to 11/13/98
<TABLE>
<CAPTION>
Cumulative
---------------------------------------------------
Days % of Total % of Total Days % of Total % of Total
Trading Daily Avg. Days Trading Trading Daily Avg. Days Trading Trading
Range (1) In Range Traded Volume Volume In Range Traded Volume Volume
------------- ---------- ---------- ------- ---------- ---------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
< $2.25 0 0.0% -- 0.0% 0 0.0% -- 0.0%
$2.25 - $2.40 6 2.4% 14,300 5.7% 6 2.4% 14,300 5.7%
$2.40 - $2.55 24 9.5% 14,900 5.9% 30 11.9% 29,200 11.6%
$2.55 - $2.70 21 8.3% 35,500 14.0% 51 20.2% 64,700 25.6%
$2.70 - $2.85 36 14.2% 21,500 8.5% 87 34.4% 86,200 34.1%
$2.85 - $3.00 40 15.8% 28,600 11.3% 127 50.2% 114,800 45.4%
$3.00 - $3.15 20 7.9% 19,300 7.6% 147 58.1% 134,100 53.0%
$3.15 - $3.30 18 7.1% 14,100 5.6% 165 65.2% 148,200 58.6%
$3.30 - $3.45 33 13.0% 50,700 20.1% 198 78.3% 198,900 78.7%
$3.45 - $3.60 36 14.2% 24,800 9.8% 234 92.5% 223,700 88.5%
$3.60 - $3.75 17 6.7% 27,200 10.8% 251 99.2% 250,900 99.2%
$3.75 - $3.90 2 0.8% 1,900 0.8% 253 100.0% 252,800 100.0%
>= - $3.90 0 0.0% -- 0.0% 253 100.0% 252,800 100.0%
Total: 253 100.0% 252,800 100.0%
</TABLE>
UNITED FOODS CLASS B
Shares Traded at Various Prices From 11/13/97 to 11/13/98
(GRAPH)
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 999 shares or $3,071.95 and the
average daily close has been $3.07.
29
<PAGE> 74
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
16-Nov-98 1,200 $2.69 $2.69 $2.69
13-Nov-98 0 2.94 2.63 2.78
12-Nov-98 0 2.94 2.69 2.81
11-Nov-98 2,300 2.81 2.81 2.81
10-Nov-98 0 2.94 2.69 2.81
09-Nov-98 0 3.00 2.69 2.84
06-Nov-98 0 2.94 2.63 2.78
05-Nov-98 500 2.81 2.81 2.81
04-Nov-98 0 3.00 2.50 2.75
03-Nov-98 0 3.00 2.75 2.88
02-Nov-98 0 3.06 2.75 2.91
30-Oct-98 6,000 2.94 2.75 2.94
29-Oct-98 0 3.00 2.69 2.84
28-Oct-98 0 3.00 2.69 2.84
27-Oct-98 5,900 2.88 2.81 2.88
26-Oct-98 1,000 2.69 2.69 2.69
23-Oct-98 0 2.81 2.56 2.69
22-Oct-98 0 2.88 2.56 2.72
21-Oct-98 0 2.88 2.63 2.75
20-Oct-98 0 2.94 2.56 2.75
19-Oct-98 200 2.69 2.69 2.69
16-Oct-98 0 2.81 2.56 2.69
15-Oct-98 1,000 2.75 2.69 2.69
14-Oct-98 0 3.00 2.63 2.81
13-Oct-98 0 2.94 2.63 2.78
12-Oct-98 0 2.94 2.69 2.81
09-Oct-98 0 3.00 2.69 2.84
08-Oct-98 0 2.88 2.56 2.72
07-Oct-98 1,400 2.88 2.88 2.88
06-Oct-98 700 2.88 2.88 2.88
05-Oct-98 0 3.06 2.81 2.94
</TABLE>
<PAGE> 75
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
02-Oct-98 300 2.81 2.81 2.81
01-Oct-98 0 3.06 2.63 2.84
30-Sep-98 2,000 2.94 2.94 2.94
29-Sep-98 200 2.88 2.88 2.88
28-Sep-98 0 2.94 2.56 2.75
25-Sep-98 500 2.81 2.81 2.81
24-Sep-98 0 2.94 2.56 2.75
23-Sep-98 0 2.81 2.56 2.69
22-Sep-98 500 2.63 2.63 2.63
21-Sep-98 0 2.81 2.56 2.69
18-Sep-98 0 2.88 2.56 2.72
17-Sep-98 6,000 2.63 2.38 2.63
16-Sep-98 100 2.38 2.38 2.38
15-Sep-98 0 2.50 2.31 2.41
14-Sep-98 5,000 2.44 2.44 2.44
11-Sep-98 1,600 2.63 2.38 2.44
10-Sep-98 2,400 2.50 2.50 2.50
09-Sep-98 0 2.81 2.44 2.63
08-Sep-98 0 2.94 2.56 2.75
04-Sep-98 0 2.75 2.44 2.59
03-Sep-98 0 2.88 2.56 2.72
02-Sep-98 800 2.63 2.63 2.63
01-Sep-98 800 2.81 2.75 2.75
31-Aug-98 6,700 2.88 2.50 2.88
28-Aug-98 0 2.69 2.44 2.56
27-Aug-98 4,000 2.63 2.56 2.63
26-Aug-98 5,000 2.75 2.75 2.75
25-Aug-98 5,400 2.81 2.75 2.81
24-Aug-98 0 2.94 2.75 2.84
21-Aug-98 0 2.88 2.69 2.78
20-Aug-98 2,000 2.81 2.81 2.81
</TABLE>
<PAGE> 76
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
19-Aug-98 300 2.94 2.88 2.88
18-Aug-98 100 2.94 2.94 2.94
17-Aug-98 8,000 2.94 2.94 2.94
14-Aug-98 0 3.13 2.88 3.00
13-Aug-98 0 3.13 2.88 3.00
12-Aug-98 300 3.00 3.00 3.00
11-Aug-98 1,200 3.25 2.94 2.94
10-Aug-98 0 3.25 2.94 3.09
07-Aug-98 0 3.19 2.63 2.91
06-Aug-98 0 3.25 2.75 3.00
05-Aug-98 600 3.25 3.06 3.06
04-Aug-98 0 3.38 2.88 3.13
03-Aug-98 1,800 3.38 3.25 3.25
31-Jul-98 9,900 3.38 3.00 3.38
30-Jul-98 0 3.31 3.13 3.22
29-Jul-98 200 3.19 3.19 3.19
28-Jul-98 0 3.25 3.06 3.16
27-Jul-98 0 3.38 3.06 3.22
24-Jul-98 0 3.38 3.06 3.22
23-Jul-98 0 3.25 2.88 3.06
22-Jul-98 2,100 3.25 3.25 3.25
21-Jul-98 0 3.38 3.06 3.22
20-Jul-98 0 3.38 2.88 3.13
17-Jul-98 0 3.38 3.13 3.25
16-Jul-98 0 3.38 3.06 3.22
15-Jul-98 0 3.38 3.06 3.22
14-Jul-98 0 3.31 3.13 3.22
13-Jul-98 0 3.38 3.13 3.25
10-Jul-98 0 3.31 2.88 3.09
09-Jul-98 0 3.38 3.13 3.25
08-Jul-98 0 3.38 3.13 3.25
</TABLE>
<PAGE> 77
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Jul-98 1,000 3.19 3.19 3.19
06-Jul-98 1,600 3.25 3.19 3.19
02-Jul-98 0 3.50 3.19 3.34
01-Jul-98 400 3.38 3.38 3.38
30-Jun-98 7,000 3.44 3.38 3.38
29-Jun-98 0 3.44 3.06 3.25
26-Jun-98 0 3.50 2.88 3.19
25-Jun-98 1,000 3.25 3.25 3.25
24-Jun-98 0 3.56 3.06 3.31
23-Jun-98 200 3.25 3.25 3.25
22-Jun-98 5,000 3.31 3.31 3.31
19-Jun-98 0 3.38 3.19 3.28
18-Jun-98 600 3.19 3.19 3.19
17-Jun-98 0 3.38 3.13 3.25
16-Jun-98 5,200 3.31 3.19 3.19
15-Jun-98 100 3.31 3.31 3.31
12-Jun-98 0 3.56 3.25 3.41
11-Jun-98 2,200 3.38 3.31 3.31
10-Jun-98 100 3.31 3.31 3.31
09-Jun-98 600 3.38 3.38 3.38
08-Jun-98 0 3.69 3.19 3.44
05-Jun-98 500 3.50 3.50 3.50
04-Jun-98 0 3.69 3.44 3.56
03-Jun-98 0 3.69 3.44 3.56
02-Jun-98 0 3.69 3.44 3.56
01-Jun-98 0 3.63 3.25 3.44
29-May-98 15,300 3.63 3.44 3.63
28-May-98 1,100 3.50 3.31 3.50
27-May-98 0 3.50 3.19 3.34
26-May-98 3,200 3.38 3.38 3.38
22-May-98 0 3.44 3.19 3.31
</TABLE>
<PAGE> 78
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
21-May-98 0 3.63 3.13 3.38
20-May-98 0 3.56 3.19 3.38
19-May-98 7,300 3.25 3.25 3.25
18-May-98 3,700 3.31 3.31 3.31
15-May-98 200 3.38 3.38 3.38
14-May-98 0 3.50 3.25 3.38
13-May-98 200 3.31 3.31 3.31
12-May-98 1,000 3.38 3.38 3.38
11-May-98 0 3.56 3.25 3.41
08-May-98 900 3.38 3.38 3.38
07-May-98 0 3.63 3.38 3.50
06-May-98 400 3.44 3.44 3.44
05-May-98 500 3.50 3.50 3.50
04-May-98 2,300 3.88 3.63 3.75
01-May-98 29,700 3.94 3.81 3.81
30-Apr-98 5,200 3.56 3.06 3.56
29-Apr-98 0 3.25 2.94 3.09
28-Apr-98 5,000 3.13 3.00 3.13
27-Apr-98 100 2.88 2.88 2.88
24-Apr-98 0 3.00 2.69 2.84
23-Apr-98 1,000 2.88 2.88 2.88
22-Apr-98 7,400 3.00 2.75 3.00
21-Apr-98 16,700 2.69 2.50 2.63
20-Apr-98 4,100 2.75 2.69 2.75
17-Apr-98 41,300 3.00 2.69 2.69
16-Apr-98 1,000 3.06 3.06 3.06
15-Apr-98 11,000 3.13 3.06 3.06
14-Apr-98 10,700 3.50 3.06 3.38
13-Apr-98 2,500 3.00 3.00 3.00
09-Apr-98 500 3.06 3.00 3.00
08-Apr-98 0 3.31 2.88 3.09
</TABLE>
<PAGE> 79
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Apr-98 700 3.13 3.13 3.13
06-Apr-98 0 3.44 2.94 3.19
03-Apr-98 0 3.56 3.06 3.31
02-Apr-98 3,600 3.38 3.25 3.25
01-Apr-98 0 3.69 3.31 3.50
31-Mar-98 9,400 3.50 3.00 3.50
30-Mar-98 4,000 3.06 2.94 2.94
27-Mar-98 700 3.19 3.19 3.19
26-Mar-98 0 3.31 2.94 3.13
25-Mar-98 800 3.19 3.19 3.19
24-Mar-98 200 3.31 3.31 3.31
23-Mar-98 1,100 3.38 3.38 3.38
20-Mar-98 0 3.50 2.88 3.19
19-Mar-98 0 3.50 3.13 3.31
18-Mar-98 1,900 3.31 3.19 3.31
17-Mar-98 0 3.50 3.13 3.31
16-Mar-98 0 3.50 3.25 3.38
13-Mar-98 1,300 3.31 3.31 3.31
12-Mar-98 0 3.56 3.19 3.38
11-Mar-98 1,000 3.50 3.38 3.38
10-Mar-98 0 3.69 3.38 3.53
09-Mar-98 400 3.50 3.50 3.50
06-Mar-98 2,500 3.63 3.63 3.63
05-Mar-98 3,700 3.63 3.50 3.50
04-Mar-98 600 3.50 3.50 3.50
03-Mar-98 0 3.81 3.50 3.66
02-Mar-98 1,000 3.56 3.56 3.56
27-Feb-98 10,300 3.69 3.25 3.63
26-Feb-98 300 3.38 3.38 3.38
25-Feb-98 800 3.44 3.44 3.44
24-Feb-98 0 3.56 3.31 3.44
</TABLE>
<PAGE> 80
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
23-Feb-98 600 3.50 3.44 3.44
20-Feb-98 0 3.63 3.13 3.38
19-Feb-98 7,500 3.63 3.50 3.50
18-Feb-98 2,200 3.75 3.75 3.75
17-Feb-98 0 3.75 3.44 3.59
13-Feb-98 200 3.63 3.63 3.63
12-Feb-98 1,000 3.75 3.75 3.75
11-Feb-98 2,200 3.75 3.63 3.63
10-Feb-98 6,500 4.00 3.75 3.75
09-Feb-98 3,100 3.88 3.63 3.88
06-Feb-98 3,000 3.88 3.63 3.63
05-Feb-98 20,100 3.88 3.56 3.88
04-Feb-98 24,500 3.75 3.00 3.75
03-Feb-98 4,000 3.00 2.94 2.94
02-Feb-98 0 3.00 2.69 2.84
30-Jan-98 12,400 2.88 2.75 2.88
29-Jan-98 6,200 2.63 2.50 2.63
28-Jan-98 0 2.75 2.44 2.59
27-Jan-98 10,000 2.63 2.63 2.63
26-Jan-98 300 2.50 2.50 2.50
23-Jan-98 200 2.63 2.63 2.63
22-Jan-98 0 2.81 2.44 2.63
21-Jan-98 1,800 2.63 2.50 2.50
20-Jan-98 0 2.69 2.38 2.53
16-Jan-98 300 2.56 2.56 2.56
15-Jan-98 9,300 2.63 2.50 2.50
14-Jan-98 0 2.69 2.31 2.50
13-Jan-98 0 2.56 2.31 2.44
12-Jan-98 0 2.69 2.31 2.50
09-Jan-98 700 2.50 2.44 2.44
08-Jan-98 0 2.69 2.44 2.56
</TABLE>
<PAGE> 81
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Jan-98 0 2.69 2.31 2.50
06-Jan-98 5,600 2.63 2.63 2.63
05-Jan-98 3,400 2.75 2.63 2.63
02-Jan-98 0 2.75 2.44 2.59
31-Dec-97 5,600 2.75 2.38 2.63
30-Dec-97 200 2.38 2.38 2.38
29-Dec-97 1,000 2.38 2.38 2.38
26-Dec-97 0 2.69 2.31 2.50
24-Dec-97 1,700 2.38 2.38 2.38
23-Dec-97 200 2.50 2.50 2.50
22-Dec-97 0 2.56 2.31 2.44
19-Dec-97 0 2.63 2.25 2.44
18-Dec-97 0 2.63 2.31 2.47
17-Dec-97 700 2.50 2.50 2.50
16-Dec-97 0 2.56 2.19 2.38
15-Dec-97 4,000 2.38 2.38 2.38
12-Dec-97 0 2.56 2.25 2.41
11-Dec-97 1,300 2.44 2.44 2.44
10-Dec-97 0 2.50 2.31 2.41
09-Dec-97 0 2.50 2.31 2.41
08-Dec-97 2,000 2.44 2.44 2.44
05-Dec-97 0 2.69 2.31 2.50
04-Dec-97 0 2.69 2.31 2.50
03-Dec-97 0 2.75 2.44 2.59
02-Dec-97 400 2.50 2.50 2.50
01-Dec-97 0 2.75 2.44 2.59
28-Nov-97 6,700 2.63 2.38 2.63
26-Nov-97 0 2.69 2.38 2.53
25-Nov-97 0 2.81 2.38 2.59
24-Nov-97 0 2.69 2.38 2.53
21-Nov-97 0 2.69 2.38 2.53
</TABLE>
<PAGE> 82
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
20-Nov-97 0 2.81 2.31 2.56
19-Nov-97 0 2.75 2.31 2.53
18-Nov-97 0 2.69 2.38 2.53
17-Nov-97 200 2.44 2.44 2.44
14-Nov-97 0 2.69 2.31 2.50
13-Nov-97 0 2.56 2.31 2.44
12-Nov-97 0 2.63 2.25 2.44
11-Nov-97 2,000 2.50 2.38 2.50
10-Nov-97 100 2.25 2.25 2.25
07-Nov-97 0 2.44 2.06 2.25
06-Nov-97 1,300 2.25 2.25 2.25
05-Nov-97 2,000 2.38 2.38 2.38
04-Nov-97 800 2.50 2.50 2.50
03-Nov-97 0 2.75 2.44 2.59
31-Oct-97 5,500 2.63 2.44 2.63
30-Oct-97 6,000 2.50 2.50 2.50
29-Oct-97 0 2.50 2.25 2.38
28-Oct-97 1,500 2.50 2.50 2.50
27-Oct-97 0 2.63 2.25 2.44
24-Oct-97 200 2.50 2.50 2.50
23-Oct-97 0 2.81 2.38 2.59
22-Oct-97 2,900 2.50 2.44 2.50
21-Oct-97 0 2.63 2.50 2.56
20-Oct-97 0 2.69 2.44 2.56
17-Oct-97 0 2.63 2.50 2.56
16-Oct-97 800 2.50 2.50 2.50
15-Oct-97 200 2.50 2.50 2.50
14-Oct-97 0 2.69 2.50 2.59
13-Oct-97 200 2.50 2.50 2.50
10-Oct-97 0 2.75 2.50 2.63
09-Oct-97 0 2.75 2.50 2.63
</TABLE>
<PAGE> 83
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
08-Oct-97 1,000 2.56 2.56 2.56
07-Oct-97 0 2.75 2.56 2.66
06-Oct-97 0 2.75 2.50 2.63
03-Oct-97 0 2.75 2.56 2.66
02-Oct-97 300 2.63 2.63 2.63
01-Oct-97 0 2.81 2.44 2.63
30-Sep-97 8,700 2.75 2.50 2.75
29-Sep-97 0 2.69 2.50 2.59
26-Sep-97 0 2.75 2.56 2.66
25-Sep-97 1,300 2.63 2.50 2.63
24-Sep-97 0 2.75 2.56 2.66
23-Sep-97 600 2.75 2.56 2.75
22-Sep-97 1,300 2.63 2.63 2.63
19-Sep-97 0 2.69 2.31 2.50
18-Sep-97 200 2.50 2.50 2.50
17-Sep-97 14,500 2.75 2.63 2.63
16-Sep-97 600 2.75 2.75 2.75
15-Sep-97 0 2.81 2.56 2.69
12-Sep-97 2,500 2.69 2.63 2.63
11-Sep-97 0 2.69 2.25 2.47
10-Sep-97 0 2.63 2.38 2.50
09-Sep-97 400 2.44 2.44 2.44
08-Sep-97 13,700 2.56 2.50 2.56
05-Sep-97 600 2.38 2.38 2.38
04-Sep-97 1,000 2.50 2.50 2.50
03-Sep-97 0 2.75 2.44 2.59
02-Sep-97 0 2.81 2.50 2.66
29-Aug-97 7,600 2.63 2.50 2.56
28-Aug-97 600 2.56 2.44 2.56
27-Aug-97 20,700 2.50 2.50 2.50
26-Aug-97 300 2.44 2.44 2.44
</TABLE>
<PAGE> 84
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
25-Aug-97 1,000 2.50 2.50 2.50
22-Aug-97 0 2.50 2.31 2.41
21-Aug-97 1,000 2.38 2.38 2.38
20-Aug-97 0 2.56 2.38 2.47
19-Aug-97 0 2.56 2.38 2.47
18-Aug-97 300 2.50 2.50 2.50
15-Aug-97 2,000 2.56 2.56 2.56
14-Aug-97 0 2.75 2.56 2.66
13-Aug-97 0 2.81 2.56 2.69
12-Aug-97 300 2.63 2.63 2.63
11-Aug-97 0 2.75 2.56 2.66
08-Aug-97 0 2.75 2.56 2.66
07-Aug-97 2,700 2.63 2.63 2.63
06-Aug-97 3,300 2.75 2.63 2.75
05-Aug-97 0 3.00 2.63 2.81
04-Aug-97 0 2.88 2.63 2.75
01-Aug-97 0 2.88 2.56 2.72
31-Jul-97 0 2.88 2.63 2.75
30-Jul-97 0 2.88 2.50 2.69
29-Jul-97 1,500 2.75 2.63 2.75
28-Jul-97 700 2.81 2.81 2.81
25-Jul-97 1,300 2.88 2.81 2.81
24-Jul-97 8,400 2.94 2.81 2.94
23-Jul-97 15,100 2.94 2.13 2.81
22-Jul-97 200 2.19 2.19 2.19
21-Jul-97 0 2.38 2.13 2.25
18-Jul-97 500 2.19 2.19 2.19
17-Jul-97 0 2.44 2.00 2.22
16-Jul-97 0 2.38 2.13 2.25
15-Jul-97 2,700 2.25 2.25 2.25
14-Jul-97 400 2.38 2.25 2.25
</TABLE>
<PAGE> 85
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
11-Jul-97 0 2.50 2.13 2.31
10-Jul-97 0 2.50 2.13 2.31
09-Jul-97 5,600 2.25 2.13 2.25
08-Jul-97 0 2.44 2.00 2.22
07-Jul-97 500 2.38 2.31 2.31
03-Jul-97 0 2.50 2.13 2.31
02-Jul-97 10,700 2.44 2.38 2.38
01-Jul-97 0 2.44 2.31 2.38
30-Jun-97 1,300 2.38 2.38 2.38
27-Jun-97 0 2.44 2.06 2.25
26-Jun-97 0 2.56 2.31 2.44
25-Jun-97 4,400 2.31 2.31 2.31
24-Jun-97 0 2.38 2.31 2.34
23-Jun-97 100 2.31 2.31 2.31
20-Jun-97 200 2.38 2.38 2.38
19-Jun-97 2,200 2.44 2.44 2.44
18-Jun-97 100 2.19 2.19 2.19
17-Jun-97 0 2.38 2.13 2.25
16-Jun-97 200 2.25 2.25 2.25
13-Jun-97 1,700 2.25 2.25 2.25
12-Jun-97 0 2.50 2.13 2.31
11-Jun-97 200 2.13 2.13 2.13
10-Jun-97 0 2.38 2.13 2.25
09-Jun-97 0 2.38 2.13 2.25
06-Jun-97 8,400 2.13 2.13 2.13
05-Jun-97 0 2.38 2.13 2.25
04-Jun-97 10,100 2.19 2.19 2.19
03-Jun-97 13,700 2.13 2.06 2.13
02-Jun-97 11,100 2.13 2.00 2.13
30-May-97 200 2.06 2.06 2.06
29-May-97 7,600 2.13 2.13 2.13
</TABLE>
<PAGE> 86
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
28-May-97 0 2.13 1.88 2.00
27-May-97 4,100 2.06 2.06 2.06
23-May-97 3,300 2.06 2.06 2.06
22-May-97 5,000 2.06 2.06 2.06
21-May-97 14,500 2.13 2.06 2.06
20-May-97 42,400 2.06 2.00 2.06
19-May-97 2,400 1.75 1.63 1.75
16-May-97 700 1.63 1.56 1.63
15-May-97 100 1.56 1.56 1.56
14-May-97 0 1.69 1.56 1.63
13-May-97 4,000 1.56 1.56 1.56
12-May-97 400 1.56 1.56 1.56
09-May-97 600 1.63 1.63 1.63
08-May-97 400 1.56 1.56 1.56
07-May-97 1,000 1.63 1.63 1.63
06-May-97 0 1.75 1.38 1.56
05-May-97 100 1.63 1.63 1.63
02-May-97 0 1.81 1.38 1.59
01-May-97 5,000 1.75 1.63 1.63
30-Apr-97 8,500 1.69 1.50 1.69
29-Apr-97 0 1.69 1.50 1.59
28-Apr-97 2,000 1.56 1.56 1.56
25-Apr-97 5,000 1.69 1.56 1.56
24-Apr-97 500 1.56 1.56 1.56
23-Apr-97 3,000 1.69 1.69 1.69
22-Apr-97 0 1.69 1.50 1.59
21-Apr-97 5,800 1.63 1.56 1.63
18-Apr-97 1,200 1.63 1.63 1.63
17-Apr-97 3,000 1.63 1.63 1.63
16-Apr-97 3,000 1.63 1.63 1.63
15-Apr-97 0 1.69 1.50 1.59
</TABLE>
<PAGE> 87
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
14-Apr-97 12,600 1.56 1.44 1.50
11-Apr-97 24,200 1.63 1.50 1.50
10-Apr-97 0 1.81 1.63 1.72
09-Apr-97 0 1.81 1.63 1.72
08-Apr-97 200 1.69 1.69 1.69
07-Apr-97 800 1.69 1.69 1.69
04-Apr-97 300 1.69 1.69 1.69
03-Apr-97 8,900 1.81 1.69 1.69
02-Apr-97 2,200 1.81 1.69 1.81
01-Apr-97 0 1.81 1.56 1.69
31-Mar-97 3,500 1.81 1.63 1.81
27-Mar-97 0 1.75 1.63 1.69
26-Mar-97 0 1.75 1.56 1.66
25-Mar-97 1,400 1.63 1.63 1.63
24-Mar-97 1,000 1.69 1.69 1.69
21-Mar-97 0 1.75 1.63 1.69
20-Mar-97 600 1.63 1.63 1.63
19-Mar-97 1,000 1.69 1.69 1.69
18-Mar-97 300 1.69 1.69 1.69
17-Mar-97 1,200 1.69 1.69 1.69
14-Mar-97 0 1.81 1.63 1.72
13-Mar-97 6,200 1.69 1.69 1.69
12-Mar-97 0 1.81 1.69 1.75
11-Mar-97 0 1.81 1.69 1.75
10-Mar-97 2,700 1.81 1.69 1.69
07-Mar-97 0 1.94 1.81 1.88
06-Mar-97 1,100 1.94 1.88 1.94
05-Mar-97 0 1.94 1.75 1.84
04-Mar-97 1,000 1.94 1.88 1.94
03-Mar-97 0 2.00 1.63 1.81
28-Feb-97 21,900 1.88 1.75 1.88
</TABLE>
<PAGE> 88
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
27-Feb-97 600 1.81 1.81 1.81
26-Feb-97 0 1.81 1.44 1.63
25-Feb-97 2,500 1.69 1.69 1.69
24-Feb-97 800 1.69 1.69 1.69
21-Feb-97 2,300 1.75 1.75 1.75
20-Feb-97 200 1.69 1.69 1.69
19-Feb-97 0 1.75 1.63 1.69
18-Feb-97 5,100 1.69 1.69 1.69
14-Feb-97 300 1.75 1.75 1.75
13-Feb-97 0 1.94 1.69 1.81
12-Feb-97 0 1.81 1.69 1.75
11-Feb-97 100 1.81 1.81 1.81
10-Feb-97 13,200 1.88 1.81 1.81
07-Feb-97 12,900 1.81 1.63 1.81
06-Feb-97 0 1.75 1.63 1.69
05-Feb-97 11,000 1.63 1.56 1.63
04-Feb-97 2,000 1.63 1.63 1.63
03-Feb-97 1,200 1.56 1.56 1.56
31-Jan-97 8,000 1.69 1.56 1.56
30-Jan-97 25,900 1.63 1.56 1.63
29-Jan-97 3,100 1.63 1.63 1.63
28-Jan-97 6,100 1.69 1.63 1.63
27-Jan-97 0 1.75 1.63 1.69
24-Jan-97 0 1.75 1.63 1.69
23-Jan-97 500 1.69 1.69 1.69
22-Jan-97 0 1.81 1.56 1.69
21-Jan-97 800 1.69 1.69 1.69
20-Jan-97 1,600 1.69 1.69 1.69
17-Jan-97 0 1.81 1.56 1.69
16-Jan-97 0 1.81 1.63 1.72
15-Jan-97 100 1.63 1.63 1.63
</TABLE>
<PAGE> 89
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
-------------------------------------------------------------
<S> <C> <C> <C> <C>
14-Jan-97 3,000 1.75 1.63 1.63
13-Jan-97 1,100 1.69 1.63 1.63
10-Jan-97 400 1.75 1.69 1.75
09-Jan-97 7,000 1.69 1.69 1.69
08-Jan-97 12,500 1.75 1.69 1.69
07-Jan-97 12,500 1.75 1.75 1.75
06-Jan-97 400 1.63 1.63 1.63
03-Jan-97 1,300 1.69 1.63 1.69
02-Jan-97 2,000 1.63 1.56 1.56
-------------------------------------------------------------
AVERAGE 2,202 $2.67 $2.50 $2.59
-------------------------------------------------------------
</TABLE>
<PAGE> 90
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
13-Nov-98 0 2.94 2.75 2.84
12-Nov-98 0 2.94 2.69 2.81
11-Nov-98 0 3.00 2.75 2.88
10-Nov-98 0 3.00 2.69 2.84
09-Nov-98 0 3.13 2.81 2.97
06-Nov-98 0 3.00 2.69 2.84
05-Nov-98 0 3.00 2.81 2.91
04-Nov-98 0 3.00 2.50 2.75
03-Nov-98 0 2.94 2.69 2.81
02-Nov-98 1,000 3.00 2.88 2.88
30-Oct-98 3,400 3.00 2.88 3.00
29-Oct-98 0 3.06 2.81 2.94
28-Oct-98 0 3.00 2.81 2.91
27-Oct-98 2,700 2.88 2.88 2.88
26-Oct-98 0 2.94 2.69 2.81
23-Oct-98 0 2.88 2.56 2.72
22-Oct-98 0 2.94 2.56 2.75
21-Oct-98 0 2.94 2.63 2.78
20-Oct-98 0 2.94 2.56 2.75
19-Oct-98 0 3.06 2.63 2.84
16-Oct-98 3,000 2.75 2.56 2.75
15-Oct-98 1,000 2.63 2.63 2.63
14-Oct-98 0 2.88 2.50 2.69
13-Oct-98 0 2.81 2.56 2.69
12-Oct-98 0 2.81 2.56 2.69
09-Oct-98 1,000 2.69 2.69 2.69
08-Oct-98 2,500 2.81 2.81 2.81
07-Oct-98 500 2.88 2.88 2.88
06-Oct-98 100 2.88 2.88 2.88
05-Oct-98 0 3.00 2.75 2.88
02-Oct-98 2,000 2.88 2.88 2.88
</TABLE>
<PAGE> 91
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
01-Oct-98 0 3.13 2.63 2.88
30-Sep-98 1,000 3.00 3.00 3.00
29-Sep-98 0 3.06 2.81 2.94
28-Sep-98 0 3.00 2.75 2.88
25-Sep-98 4,500 3.00 2.94 3.00
24-Sep-98 3,400 2.88 2.81 2.88
23-Sep-98 0 2.88 2.63 2.75
22-Sep-98 0 2.94 2.69 2.81
21-Sep-98 0 2.75 2.56 2.66
18-Sep-98 0 2.88 2.56 2.72
17-Sep-98 4,600 2.69 2.44 2.69
16-Sep-98 0 2.56 2.38 2.47
15-Sep-98 0 2.63 2.31 2.47
14-Sep-98 0 2.69 2.38 2.53
11-Sep-98 800 2.50 2.50 2.50
10-Sep-98 5,900 2.75 2.63 2.75
09-Sep-98 0 2.94 2.69 2.81
08-Sep-98 200 2.75 2.75 2.75
04-Sep-98 700 2.88 2.75 2.75
03-Sep-98 500 2.69 2.69 2.69
02-Sep-98 0 3.00 2.63 2.81
01-Sep-98 600 2.88 2.81 2.81
31-Aug-98 3,100 2.94 2.88 2.94
28-Aug-98 3,000 2.75 2.75 2.75
27-Aug-98 500 2.81 2.81 2.81
26-Aug-98 0 2.94 2.50 2.72
25-Aug-98 0 3.19 2.56 2.88
24-Aug-98 0 3.06 2.75 2.91
21-Aug-98 3,000 2.81 2.81 2.81
20-Aug-98 0 3.13 2.75 2.94
19-Aug-98 3,500 2.94 2.94 2.94
</TABLE>
<PAGE> 92
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
18-Aug-98 1,000 3.00 3.00 3.00
17-Aug-98 0 3.13 2.88 3.00
14-Aug-98 0 3.25 2.94 3.09
13-Aug-98 0 3.13 2.94 3.03
12-Aug-98 0 3.25 2.88 3.06
11-Aug-98 0 3.25 2.94 3.09
10-Aug-98 0 3.31 2.94 3.13
07-Aug-98 0 3.19 2.75 2.97
06-Aug-98 0 3.25 2.75 3.00
05-Aug-98 100 3.13 3.13 3.13
04-Aug-98 0 3.38 2.88 3.13
03-Aug-98 0 3.38 3.06 3.22
31-Jul-98 13,000 3.25 3.00 3.25
30-Jul-98 900 3.06 3.06 3.06
29-Jul-98 300 3.13 3.13 3.13
28-Jul-98 0 3.19 2.94 3.06
27-Jul-98 0 3.25 3.06 3.16
24-Jul-98 0 3.38 3.06 3.22
23-Jul-98 0 3.38 2.88 3.13
22-Jul-98 3,900 3.25 3.13 3.13
21-Jul-98 0 3.56 3.06 3.31
20-Jul-98 500 3.25 3.13 3.25
17-Jul-98 0 3.31 3.06 3.19
16-Jul-98 0 3.31 2.94 3.13
15-Jul-98 800 3.13 3.13 3.13
14-Jul-98 300 3.13 3.13 3.13
13-Jul-98 0 3.44 3.06 3.25
10-Jul-98 300 3.13 3.13 3.13
09-Jul-98 0 3.38 3.13 3.25
08-Jul-98 100 3.19 3.19 3.19
07-Jul-98 0 3.44 3.13 3.28
</TABLE>
<PAGE> 93
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
06-Jul-98 1,400 3.25 3.25 3.25
02-Jul-98 0 3.63 3.31 3.47
01-Jul-98 0 3.69 3.31 3.50
30-Jun-98 6,300 3.50 3.31 3.50
29-Jun-98 100 3.38 3.38 3.38
26-Jun-98 0 3.75 3.38 3.56
25-Jun-98 0 3.56 3.31 3.44
24-Jun-98 300 3.44 3.44 3.44
23-Jun-98 0 3.56 3.19 3.38
22-Jun-98 800 3.50 3.44 3.44
19-Jun-98 100 3.38 3.38 3.38
18-Jun-98 600 3.50 3.50 3.50
17-Jun-98 0 3.69 3.31 3.50
16-Jun-98 0 3.63 3.31 3.47
15-Jun-98 700 3.50 3.50 3.50
12-Jun-98 2,600 3.63 3.63 3.63
11-Jun-98 5,400 3.50 3.44 3.50
10-Jun-98 0 3.88 3.19 3.53
09-Jun-98 500 3.56 3.56 3.56
08-Jun-98 300 3.38 3.38 3.38
05-Jun-98 100 3.44 3.44 3.44
04-Jun-98 2,000 3.50 3.50 3.50
03-Jun-98 100 3.63 3.63 3.63
02-Jun-98 0 3.81 3.44 3.63
01-Jun-98 0 3.75 3.25 3.50
29-May-98 2,000 3.63 3.56 3.63
28-May-98 100 3.44 3.44 3.44
27-May-98 0 3.63 3.31 3.47
26-May-98 0 3.56 3.31 3.44
22-May-98 0 3.56 3.25 3.41
21-May-98 0 3.50 3.06 3.28
</TABLE>
<PAGE> 94
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
20-May-98 0 3.50 3.06 3.28
19-May-98 100 3.44 3.44 3.44
18-May-98 1,100 3.50 3.38 3.38
15-May-98 0 3.75 3.44 3.59
14-May-98 0 3.75 3.44 3.59
13-May-98 0 3.81 3.44 3.63
12-May-98 700 3.63 3.63 3.63
11-May-98 0 3.69 3.38 3.53
08-May-98 0 3.75 3.38 3.56
07-May-98 0 3.63 3.38 3.50
06-May-98 600 3.50 3.50 3.50
05-May-98 0 3.69 3.44 3.56
04-May-98 100 3.56 3.56 3.56
01-May-98 2,500 3.63 3.50 3.63
30-Apr-98 4,200 3.44 3.38 3.44
29-Apr-98 2,700 3.38 3.25 3.38
28-Apr-98 600 3.13 3.13 3.13
27-Apr-98 0 3.13 2.81 2.97
24-Apr-98 100 3.00 3.00 3.00
23-Apr-98 0 3.19 2.81 3.00
22-Apr-98 0 3.19 2.81 3.00
21-Apr-98 0 3.13 2.69 2.91
20-Apr-98 0 3.19 2.81 3.00
17-Apr-98 200 3.00 3.00 3.00
16-Apr-98 100 3.31 3.31 3.31
15-Apr-98 100 3.38 3.38 3.38
14-Apr-98 4,800 3.38 3.00 3.25
13-Apr-98 2,500 3.00 3.00 3.00
09-Apr-98 100 3.13 3.13 3.13
08-Apr-98 0 3.44 2.94 3.19
07-Apr-98 400 3.31 3.25 3.25
</TABLE>
<PAGE> 95
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
06-Apr-98 0 3.44 3.06 3.25
03-Apr-98 0 3.50 3.25 3.38
02-Apr-98 500 3.44 3.31 3.31
01-Apr-98 800 3.44 3.31 3.44
31-Mar-98 11,400 3.44 3.19 3.44
30-Mar-98 2,500 3.19 2.94 3.06
27-Mar-98 0 3.56 3.19 3.38
26-Mar-98 0 3.56 3.19 3.38
25-Mar-98 300 3.38 3.38 3.38
24-Mar-98 0 3.88 3.13 3.50
23-Mar-98 1,800 3.50 3.38 3.50
20-Mar-98 3,300 3.44 3.31 3.44
19-Mar-98 0 3.50 3.25 3.38
18-Mar-98 0 3.56 3.25 3.41
17-Mar-98 9,000 3.50 3.31 3.31
16-Mar-98 0 3.81 3.44 3.63
13-Mar-98 200 3.50 3.50 3.50
12-Mar-98 2,000 3.50 3.50 3.50
11-Mar-98 900 3.50 3.50 3.50
10-Mar-98 700 3.50 3.50 3.50
09-Mar-98 0 3.81 3.44 3.63
06-Mar-98 0 3.81 3.44 3.63
05-Mar-98 100 3.63 3.63 3.63
04-Mar-98 400 3.69 3.69 3.69
03-Mar-98 0 3.94 3.63 3.78
02-Mar-98 0 3.94 3.56 3.75
27-Feb-98 5,700 3.75 3.50 3.63
26-Feb-98 0 3.69 3.31 3.50
25-Feb-98 300 3.50 3.50 3.50
24-Feb-98 0 3.69 3.38 3.53
23-Feb-98 600 3.56 3.50 3.56
</TABLE>
<PAGE> 96
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
20-Feb-98 0 3.63 3.25 3.44
19-Feb-98 0 3.69 3.44 3.56
18-Feb-98 3,300 3.63 3.50 3.56
17-Feb-98 3,500 3.63 3.63 3.63
13-Feb-98 4,400 3.69 3.63 3.69
12-Feb-98 0 3.63 3.13 3.38
11-Feb-98 1,600 3.50 3.50 3.50
10-Feb-98 2,600 3.81 3.63 3.63
09-Feb-98 800 3.75 3.75 3.75
06-Feb-98 1,900 3.81 3.75 3.75
05-Feb-98 6,300 3.88 3.38 3.88
04-Feb-98 8,000 3.38 3.25 3.38
03-Feb-98 3,000 3.25 3.25 3.25
02-Feb-98 400 3.13 3.13 3.13
30-Jan-98 2,000 3.00 2.88 3.00
29-Jan-98 1,000 2.69 2.69 2.69
28-Jan-98 0 3.06 2.69 2.88
27-Jan-98 0 3.00 2.50 2.75
26-Jan-98 400 2.75 2.75 2.75
23-Jan-98 0 2.94 2.56 2.75
22-Jan-98 1,600 2.75 2.75 2.75
21-Jan-98 100 2.75 2.75 2.75
20-Jan-98 300 2.88 2.88 2.88
16-Jan-98 100 2.88 2.88 2.88
15-Jan-98 0 3.06 2.69 2.88
14-Jan-98 600 2.88 2.88 2.88
13-Jan-98 1,300 2.88 2.75 2.75
12-Jan-98 500 2.63 2.63 2.63
09-Jan-98 0 2.94 2.56 2.75
08-Jan-98 0 2.88 2.56 2.72
07-Jan-98 100 2.75 2.75 2.75
</TABLE>
<PAGE> 97
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
06-Jan-98 4,100 2.88 2.63 2.75
05-Jan-98 0 2.81 2.44 2.63
02-Jan-98 500 2.63 2.63 2.63
31-Dec-97 5,000 2.75 2.63 2.75
30-Dec-97 0 2.63 2.19 2.41
29-Dec-97 1,900 2.38 2.38 2.38
26-Dec-97 0 2.69 2.31 2.50
24-Dec-97 100 2.38 2.38 2.38
23-Dec-97 300 2.38 2.38 2.38
22-Dec-97 10,100 2.38 2.38 2.38
19-Dec-97 0 2.63 2.31 2.47
18-Dec-97 200 2.38 2.38 2.38
17-Dec-97 0 2.69 2.38 2.53
16-Dec-97 0 2.69 2.31 2.50
15-Dec-97 0 2.75 2.31 2.53
12-Dec-97 100 2.44 2.44 2.44
11-Dec-97 0 2.69 2.31 2.50
10-Dec-97 0 2.56 2.38 2.47
09-Dec-97 0 2.69 2.38 2.53
08-Dec-97 3,300 2.50 2.44 2.44
05-Dec-97 0 2.81 2.44 2.63
04-Dec-97 0 2.81 2.44 2.63
03-Dec-97 2,000 2.50 2.50 2.50
02-Dec-97 3,500 2.63 2.63 2.63
01-Dec-97 0 2.75 2.50 2.63
28-Nov-97 9,000 2.75 2.38 2.75
26-Nov-97 3,500 2.50 2.38 2.50
25-Nov-97 1,500 2.44 2.44 2.44
24-Nov-97 200 2.44 2.44 2.44
21-Nov-97 0 2.69 2.44 2.56
20-Nov-97 2,000 2.44 2.44 2.44
</TABLE>
<PAGE> 98
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
19-Nov-97 100 2.44 2.44 2.44
18-Nov-97 0 2.69 2.38 2.53
17-Nov-97 1,400 2.44 2.44 2.44
14-Nov-97 1,700 2.38 2.38 2.38
13-Nov-97 0 2.56 2.31 2.44
12-Nov-97 500 2.38 2.38 2.38
11-Nov-97 1,500 2.38 2.38 2.38
10-Nov-97 0 2.56 2.38 2.47
07-Nov-97 500 2.50 2.50 2.50
06-Nov-97 0 2.75 2.44 2.59
05-Nov-97 0 2.75 2.44 2.59
04-Nov-97 100 2.63 2.63 2.63
03-Nov-97 0 2.81 2.38 2.59
31-Oct-97 5,000 2.69 2.63 2.69
30-Oct-97 100 2.38 2.38 2.38
29-Oct-97 0 2.63 2.38 2.50
28-Oct-97 5,600 2.38 2.13 2.38
27-Oct-97 0 2.63 2.13 2.38
24-Oct-97 0 2.69 2.25 2.47
23-Oct-97 100 2.38 2.38 2.38
22-Oct-97 0 2.69 2.38 2.53
21-Oct-97 0 2.75 2.50 2.63
20-Oct-97 0 2.63 2.38 2.50
17-Oct-97 0 2.63 2.38 2.50
16-Oct-97 500 2.50 2.50 2.50
15-Oct-97 1,200 2.50 2.50 2.50
14-Oct-97 0 2.75 2.50 2.63
13-Oct-97 0 2.75 2.50 2.63
10-Oct-97 0 2.75 2.44 2.59
09-Oct-97 0 2.75 2.44 2.59
08-Oct-97 5,600 2.69 2.63 2.63
</TABLE>
<PAGE> 99
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Oct-97 200 2.56 2.56 2.56
06-Oct-97 0 2.75 2.50 2.63
03-Oct-97 0 2.75 2.50 2.63
02-Oct-97 0 2.81 2.44 2.63
01-Oct-97 200 2.63 2.63 2.63
30-Sep-97 4,100 2.75 2.50 2.75
29-Sep-97 0 2.63 2.38 2.50
26-Sep-97 8,900 2.50 2.50 2.50
25-Sep-97 0 2.69 2.50 2.59
24-Sep-97 0 2.75 2.50 2.63
23-Sep-97 200 2.50 2.50 2.50
22-Sep-97 0 2.75 2.50 2.63
19-Sep-97 0 2.81 2.44 2.63
18-Sep-97 0 2.75 2.50 2.63
17-Sep-97 1,300 2.75 2.63 2.63
16-Sep-97 0 2.81 2.63 2.72
15-Sep-97 0 2.75 2.56 2.66
12-Sep-97 0 2.94 2.56 2.75
11-Sep-97 20,000 2.69 2.63 2.69
10-Sep-97 2,800 2.63 2.44 2.63
09-Sep-97 0 2.69 2.50 2.59
08-Sep-97 1,000 2.63 2.63 2.63
05-Sep-97 300 2.50 2.50 2.50
04-Sep-97 2,000 2.56 2.56 2.56
03-Sep-97 2,200 2.69 2.69 2.69
02-Sep-97 0 2.75 2.50 2.63
29-Aug-97 2,300 2.63 2.38 2.63
28-Aug-97 0 2.63 2.31 2.47
27-Aug-97 0 2.69 2.13 2.41
26-Aug-97 0 2.63 2.38 2.50
25-Aug-97 0 2.63 2.31 2.47
</TABLE>
<PAGE> 100
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
22-Aug-97 900 2.50 2.50 2.50
21-Aug-97 0 2.69 2.44 2.56
20-Aug-97 0 2.69 2.44 2.56
19-Aug-97 0 2.69 2.50 2.59
18-Aug-97 0 2.75 2.50 2.63
15-Aug-97 0 2.75 2.44 2.59
14-Aug-97 0 2.69 2.50 2.59
13-Aug-97 0 2.69 2.44 2.56
12-Aug-97 100 2.63 2.63 2.63
11-Aug-97 0 2.69 2.50 2.59
08-Aug-97 0 2.75 2.50 2.63
07-Aug-97 500 2.63 2.63 2.63
06-Aug-97 14,100 2.63 2.63 2.63
05-Aug-97 0 2.94 2.56 2.75
04-Aug-97 0 2.75 2.50 2.63
01-Aug-97 600 2.63 2.63 2.63
31-Jul-97 1,400 2.63 2.63 2.63
30-Jul-97 0 2.81 2.50 2.66
29-Jul-97 600 2.69 2.69 2.69
28-Jul-97 500 2.75 2.75 2.75
25-Jul-97 900 2.81 2.81 2.81
24-Jul-97 5,800 2.94 2.94 2.94
23-Jul-97 900 2.69 2.63 2.69
22-Jul-97 400 2.31 2.31 2.31
21-Jul-97 0 2.50 2.25 2.38
18-Jul-97 100 2.31 2.31 2.31
17-Jul-97 100 2.31 2.31 2.31
16-Jul-97 0 2.50 2.31 2.41
15-Jul-97 10,700 2.31 2.13 2.25
14-Jul-97 500 2.19 2.19 2.19
11-Jul-97 100 2.31 2.31 2.31
</TABLE>
<PAGE> 101
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
10-Jul-97 0 2.44 2.06 2.25
09-Jul-97 0 2.50 2.00 2.25
08-Jul-97 0 2.44 2.13 2.28
07-Jul-97 500 2.38 2.31 2.31
03-Jul-97 0 2.63 2.13 2.38
02-Jul-97 4,000 2.44 2.44 2.44
01-Jul-97 2,000 2.31 2.31 2.31
30-Jun-97 200 2.31 2.31 2.31
27-Jun-97 0 2.69 2.31 2.50
26-Jun-97 0 2.56 2.31 2.44
25-Jun-97 1,600 2.31 2.31 2.31
24-Jun-97 1,600 2.44 2.31 2.31
23-Jun-97 300 2.44 2.38 2.38
20-Jun-97 1,100 2.44 2.38 2.44
19-Jun-97 0 2.44 2.19 2.31
18-Jun-97 0 2.50 2.19 2.34
17-Jun-97 100 2.13 2.13 2.13
16-Jun-97 0 2.63 2.13 2.38
13-Jun-97 5,400 2.25 2.25 2.25
12-Jun-97 0 2.44 2.13 2.28
11-Jun-97 0 2.44 2.13 2.28
10-Jun-97 0 2.50 2.13 2.31
09-Jun-97 15,000 2.25 2.25 2.25
06-Jun-97 10,000 2.13 2.13 2.13
05-Jun-97 0 2.31 2.13 2.22
04-Jun-97 100 2.13 2.13 2.13
03-Jun-97 3,100 2.13 2.13 2.13
02-Jun-97 0 2.25 2.06 2.16
30-May-97 0 2.25 2.06 2.16
29-May-97 15,800 2.19 2.19 2.19
28-May-97 3,500 2.06 2.00 2.06
</TABLE>
<PAGE> 102
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
27-May-97 1,400 2.06 2.06 2.06
23-May-97 2,200 2.13 2.06 2.06
22-May-97 200 2.19 2.19 2.19
21-May-97 23,900 2.19 2.13 2.19
20-May-97 25,500 2.13 2.00 2.13
19-May-97 1,500 1.75 1.56 1.75
16-May-97 0 1.75 1.50 1.63
15-May-97 400 1.56 1.56 1.56
14-May-97 100 1.56 1.56 1.56
13-May-97 0 1.69 1.56 1.63
12-May-97 100 1.56 1.56 1.56
09-May-97 500 1.56 1.56 1.56
08-May-97 200 1.63 1.63 1.63
07-May-97 100 1.63 1.63 1.63
06-May-97 100 1.63 1.63 1.63
05-May-97 0 1.75 1.31 1.53
02-May-97 0 1.75 1.31 1.53
01-May-97 1,000 1.69 1.63 1.69
30-Apr-97 3,400 1.69 1.63 1.69
29-Apr-97 1,700 1.69 1.56 1.69
28-Apr-97 0 1.69 1.50 1.59
25-Apr-97 0 1.75 1.50 1.63
24-Apr-97 500 1.56 1.56 1.56
23-Apr-97 0 1.88 1.56 1.72
22-Apr-97 0 1.69 1.56 1.63
21-Apr-97 0 1.69 1.50 1.59
18-Apr-97 1,200 1.56 1.56 1.56
17-Apr-97 3,500 1.81 1.63 1.63
16-Apr-97 0 1.81 1.69 1.75
15-Apr-97 0 1.81 1.69 1.75
14-Apr-97 200 1.69 1.69 1.69
</TABLE>
<PAGE> 103
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
11-Apr-97 0 1.81 1.56 1.69
10-Apr-97 0 1.81 1.69 1.75
09-Apr-97 0 1.88 1.56 1.72
08-Apr-97 0 1.81 1.63 1.72
07-Apr-97 800 1.75 1.75 1.75
04-Apr-97 200 1.75 1.75 1.75
03-Apr-97 2,000 1.75 1.75 1.75
02-Apr-97 1,000 1.81 1.75 1.75
01-Apr-97 0 1.81 1.69 1.75
31-Mar-97 3,000 1.81 1.81 1.81
27-Mar-97 800 1.69 1.69 1.69
26-Mar-97 0 1.81 1.69 1.75
25-Mar-97 700 1.75 1.69 1.69
24-Mar-97 0 1.94 1.75 1.84
21-Mar-97 500 1.69 1.69 1.69
20-Mar-97 0 1.88 1.69 1.78
19-Mar-97 0 1.94 1.69 1.81
18-Mar-97 1,100 1.69 1.69 1.69
17-Mar-97 400 1.75 1.69 1.75
14-Mar-97 2,300 1.75 1.75 1.75
13-Mar-97 0 1.88 1.69 1.78
12-Mar-97 500 1.75 1.75 1.75
11-Mar-97 0 1.94 1.69 1.81
10-Mar-97 1,500 1.88 1.81 1.81
07-Mar-97 0 2.06 1.88 1.97
06-Mar-97 1,800 2.00 2.00 2.00
05-Mar-97 200 1.88 1.88 1.88
04-Mar-97 13,200 1.94 1.75 1.94
03-Mar-97 3,000 1.94 1.94 1.94
28-Feb-97 17,500 1.88 1.81 1.88
27-Feb-97 1,400 1.88 1.81 1.81
</TABLE>
<PAGE> 104
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
26-Feb-97 0 1.88 1.69 1.78
25-Feb-97 300 1.75 1.75 1.75
24-Feb-97 5,000 1.88 1.75 1.88
21-Feb-97 0 1.88 1.69 1.78
20-Feb-97 5,200 1.81 1.75 1.75
19-Feb-97 0 1.88 1.69 1.78
18-Feb-97 5,500 1.81 1.75 1.75
14-Feb-97 0 1.94 1.69 1.81
13-Feb-97 5,000 1.88 1.88 1.88
12-Feb-97 0 1.88 1.69 1.78
11-Feb-97 1,400 1.75 1.75 1.75
10-Feb-97 1,300 1.81 1.75 1.75
07-Feb-97 1,400 1.69 1.69 1.69
06-Feb-97 0 1.75 1.56 1.66
05-Feb-97 10,200 1.63 1.56 1.63
04-Feb-97 0 1.75 1.50 1.63
03-Feb-97 900 1.63 1.63 1.63
31-Jan-97 3,500 1.75 1.63 1.75
30-Jan-97 4,200 1.69 1.56 1.69
29-Jan-97 1,100 1.69 1.69 1.69
28-Jan-97 100 1.69 1.69 1.69
27-Jan-97 0 1.75 1.63 1.69
24-Jan-97 0 1.75 1.63 1.69
23-Jan-97 0 1.75 1.56 1.66
22-Jan-97 2,500 1.75 1.75 1.75
21-Jan-97 2,400 1.63 1.63 1.63
20-Jan-97 100 1.69 1.69 1.69
17-Jan-97 0 1.81 1.63 1.72
16-Jan-97 0 1.88 1.63 1.75
15-Jan-97 3,000 1.75 1.75 1.75
14-Jan-97 2,200 1.63 1.63 1.63
</TABLE>
<PAGE> 105
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
------------------------------------------------------------------
<S> <C> <C> <C> <C>
13-Jan-97 7,900 1.69 1.63 1.69
10-Jan-97 500 1.63 1.63 1.63
09-Jan-97 0 1.69 1.56 1.63
08-Jan-97 4,100 1.69 1.69 1.69
07-Jan-97 0 1.88 1.75 1.81
06-Jan-97 0 1.94 1.75 1.84
03-Jan-97 2,100 1.88 1.75 1.88
02-Jan-97 0 1.94 1.69 1.81
------------------------------------------------------------------
AVERAGE 1,292 $2.72 $2.55 $2.64
------------------------------------------------------------------
</TABLE>
<PAGE> 106
Trading and Equity Analysis
Market Value of Equity as a Percentage of Book Value of Equity
Quarterly Since February 1996
[GRAPH]
30
<PAGE> 107
Trading and Equity Analysis
Total Capitalization to EBIT
Quarterly Since February 1996
[GRAPH]
31
<PAGE> 108
Trading and Equity Analysis
Total Capitalization to EBITDA
Quarterly Since February 1996
[GRAPH]
32
<PAGE> 109
Trading and Equity Analysis
Monthly Change in Price
Since 12/1/97
<TABLE>
<CAPTION>
Dec-97 Jan-98 Feb-98 Mar-98 Apr-98 May-98 Jun-98 Jul-98 Aug-98 Sep-98 Average
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods - Class A 1.20% 9.52% 26.09% (3.45%) 1.79% (4.92%) (1.82%) 0.00% (14.81%) 6.82% 2.04%
United Foods - Class B 4.76% 9.09% 20.83% (5.17%) 0.00% 0.00% 0.00% (7.14%) (9.62%) 6.67% 1.94%
S&P 500 (0.45%) 1.02% 7.04% 4.99% 0.32% (2.69%) 3.93% (2.43%) (14.58%) 2.29% (0.05%)
Russell 2000 0.66% (1.59%) 7.39% 4.08% (0.42%) (5.84%) 1.38% (8.72%) (19.49%) 4.45% (1.81%)
</TABLE>
United Foods Class A and Class B Vs. S&P 500 and Russell 2000 Index
[GRAPH]
33
<PAGE> 110
Trading and Equity Analysis
Selected Financial Data
Since 1989
(in 000s, except per share data and ratios)
<TABLE>
<CAPTION>
1989 1990 1991 (3) 1992 1993 1994 1995
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Combined Sales (Adjusted) $ 157,286 $168,935 $171,145 $154,368 $ 156,318 $175,796 $190,256
Sales (Frozen Foods) 115,222 123,919 125,540 113,941 116,399 133,617 139,988
Sales (Mushrooms) 34,569 36,855 37,337 40,347 40,207 42,559 50,669
Combined EBITDA (1) 9,340 19,818 16,599 10,918 9,018 9,291 13,621
% of Sales 5.94% 11.73% 9.70% 7.07% 5.77% 5.29% 7.16%
EBITDA (Frozen Foods) 11,988 17,532 17,761 16,120 4,629 10,799 10,849
% of Sales 10.40% 14.15% 14.15% 14.15% 3.98% 8.08% 7.75%
EBITDA (Mushrooms) 4,261 4,171 4,226 4,566 4,120 4,670 8,945
% of Sales 12.33% 11.32% 11.32% 11.32% 10.25% 10.97% 17.65%
Net Income (1,153) 8,411 5,799 35 (2,116) 90 2,402
EPS (0.09) 0.63 0.44 -- (0.16) 0.01 0.19
Shares Outstanding 12,724 12,755 12,855 12,871 12,871 12,871 11,798
Book Value 44,776 53,225 56,417 59,645 57,529 57,619 57,440
Highest Stock Price During LTM 3.75 3.25 2.38 2.00 1.94 2.50 2.63
Lowest Stock Price During LTM 1.25 1.50 1.25 1.38 1.50 1.50 1.50
Equity Value (Highest Price) 47,715 41,454 30,531 25,742 24,938 32,178 30,970
Equity Value (Lowest Price) 15,905 19,133 16,069 17,698 19,307 19,307 17,697
Highest Price/Earnings - LTM NM x 5.16 x 5.40 x NM x NM x 250.00 x 13.82 x
Lowest Price/Earnings - LTM NM 2.38 2.84 NM NM 150.00 7.89
Highest Price/Earnings - Forward 5.95 7.39 NM NM 193.75 13.16 NM
Lowest Price/Earnings - Forward 1.98 3.41 NM NM 150.00 7.89 NM
Equity Value (Highest Price)/Book Value - LTM 1.07 0.78 0.54 0.43 0.43 0.56 0.54
Equity Value (Lowest Price)/Book Value - LTM 0.36 0.36 0.28 0.30 0.34 0.34 0.31
<CAPTION>
1996 1997 1998
--------------------------------
<S> <C> <C> <C>
Combined Sales (Adjusted) $ 191,714 $195,820 $195,087
Sales (Frozen Foods) 145,288 152,494 152,076
Sales (Mushrooms) 48,174 44,242 44,684
Combined EBITDA (1) 10,276 12,531 12,127
% of Sales 5.36% 6.40% 6.22%
EBITDA (Frozen Foods) 12,272 16,740 18,185
% of Sales 8.45% 10.98% 11.96%
EBITDA (Mushrooms) 9,553 2,224 5,927
% of Sales 19.83% 5.03% 13.26%
Net Income (660) 922 460
EPS (0.06) 0.08 0.06
Shares Outstanding 10,810 10,810 6,810
Book Value 54,534 55,456 45,748
Highest Stock Price During LTM 2.25 3.00 4.00
Lowest Stock Price During LTM 1.38 1.38 2.31
Equity Value (Highest Price) 24,323 32,430 27,240
Equity Value (Lowest Price) 14,864 14,864 15,748
Highest Price/Earnings - LTM NM x 37.50 x 66.67 x
Lowest Price/Earnings - LTM NM 17.19 38.54
Highest Price/Earnings - Forward 28.13 50.00 NM
Lowest Price/Earnings - Forward 17.19 22.92 NM
Equity Value (Highest Price)/Book Value - LTM 0.45 0.58 0.60
Equity Value (Lowest Price)/Book Value - LTM 0.27 0.27 0.34
</TABLE>
(1) Combined EBITDA includes Corporate Loss
(2) Includes reduction of income taxes from carryforward of prior year
operating losses.
(3) 1991 Sales and EBITDA are estimated as a percent of sales because
company financials do not break out mushrooms and frozen foods.
34
<PAGE> 111
Liquidation Analysis
Liquidation Value
Based on August 31, 1998 Balance Sheet
<TABLE>
<CAPTION>
Actual Management Theoretical
-------- ----------- -----------
<S> <C> <C> <C>
ASSETS
Cash $ 627 $ 627 $ 627
Accounts Receivable 15,185 14,426 14,426
Inventories
Finished Product 34,388 17,194 22,352
Raw Material 1,168 292 759
Growing Crops 3,105 -- --
Packaging Materials 1,517 -- --
Sundry Supplies 722 -- --
Prepaid Expenses 3,002 -- --
Refundable Taxes 594 594 594
Deferred Income Taxes 1,249 -- --
Net PP&E 53,023 43,000 43,000
Other assets
Notes & Accounts Receivable 53 53 53
Deferred Charges & Other Assets 656 -- --
Property & Equipment Held For 804 804 804
Disposal, Est. Realiz. Value
Total Assets 116,093 76,990 82,615
======== =========== ===========
LIABILITIES
Current Liabilities
Notes Payable to Banks and Others -- -- --
Accounts Payable 15,083 15,083 15,083
Accrued Liabilities 7,246 7,246 7,246
Accrued (Prepaid) Burden 178 178 178
Income Taxes Payable 109 109 109
Deferred Income Taxes - Current -- -- --
Current Maturities of L-T-D 4,300 4,300 4,300
Long-term Debt Less Current Maturities 31,924 31,924 31,924
Long-term Revolving Loan 7,025 7,025 7,025
Deferred Income Taxes - Long-term 4,710 -- --
Total Liabilities 70,575 65,865 65,865
-------- ----------- -----------
Equity 45,518 11,125 16,750
======== =========== ===========
Shares Outstanding 6,810 6,810 6,810
-------- ----------- -----------
Book Value Per Share $ 6.68 $ 1.63 $ 2.46
-------- ----------- -----------
</TABLE>
35
<PAGE> 1
EXHIBIT 17(b)(9)
Information for:
Special Committee of the Board of Directors of
[UNITED FOODS LOGO]
October 14, 1998
J.C Bradford & Co.
330 Commerce Street
Nashville, TN 37201
(800)522-4750
<PAGE> 2
Table of Contents
I. Discussion Points
II. Comparable Company Analysis
III. Comparable Transaction Analysis
IV. Discounted Cash Flow Analysis
V. Liquidation Analysis
VI. Leveraged Buyout Analysis
VII. Trading and Equity Analysis
<PAGE> 3
Discussion Points
- Conclusions
- Valuation Overview
- Comparable Company Analysis
- Comparable Transaction Analysis
- Discounted Cash Flow Analysis
- Liquidation Analysis
- Leveraged Buyout Analysis
- Historical Trading Data
- Next Steps
1
<PAGE> 4
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Comparable Company Summary Valuation
Overall Adjusted Average Multiples
(In thousands)
<TABLE>
<CAPTION>
Price to Trailing Earnings Multiple Basis: Price to Calendar 1998 Earnings Multiple Basis:
<S> <C> <C> <C> <C>
LTM earnings ended 8/31/98 $ 799 Estimated earnings ended 12/31/98 $ 843
Adjusted Average Multiple 15.56 x Adjusted Average Multiple 16.39 x
--------- ---------
Valuation $ 12,123 Valuation $ 13,825
Valuation per Share (1) $ 1.78 Valuation per Share (1) $ 2.03
</TABLE>
<TABLE>
<CAPTION>
Price to Calendar 1999 Earnings Multiple Basis:(2)
<S> <C> <C>
Estimated earnings ended 12/31/99 $ 752
Adjusted Average Multiple 13.38 x
----------
Valuation $ 10,058
Valuation per Share (1) $ 1.48
</TABLE>
<TABLE>
<CAPTION>
LTM EBITDA Multiple Basis:
<S> <C> <C>
LTM EBITDA ended 8/31/98 $ 12,842
Adjusted Average Multiple 7.99 x
----------
102,652
Less total debt, net of cash
8/31/98 42,622
----------
Valuation $ 60,030
Valuation per Share (1) $ 8.82
</TABLE>
<TABLE>
<CAPTION>
Equity to Book Value Multiple Basis:
<S> <C> <C>
Estimated book value 8/31/98 $ 45,518
Adjusted Average Multiple 1.97 x
-----------
Valuation $ 89,827
Valuation per Share (1) $ 13.19
</TABLE>
(1) Based on 6.8 million shares outstanding.
(2) Based on 0% growth, base case projection.
At an offer price of $3.00, United Foods is trading below 92% of companies in
comparable group as a multiple of EBITDA and is trading below all comparable
companies as a multiple of book value.
United Foods is trading above all comparable companies as a multiple of LTM EPS,
Calendar 1998 EPS, and Calendar 1999 EPS.
2
<PAGE> 5
Comparable Company Analysis
Price to Calendar 1999 Earnings Multiple Basis:
Valuation Per Share (1)
Adjusted Average Multiple 13.38x
<TABLE>
<CAPTION>
Projected No Expenses $500,000 of $750,000 of $1,000,000 of
Growth Rate Added Back Cost Savings Cost Savings Cost Savings
- ----------- ---------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
0.0% $ 1.48 $ 1.98 $ 2.24 $ 2.49
2.5% $ 1.81 $ 2.31 $ 2.57 $ 2.82
5.0% $ 2.12 $ 2.64 $ 2.89 $ 3.15
</TABLE>
(1) Based on 6.8 million shares outstanding.
3
<PAGE> 6
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Comparable Company Market Multiples
<TABLE>
<CAPTION>
5-Year
LTM LTM Cal. 1998 Cal. 1999 Projected 52 Week
Company Ticker End EPS Est. EPS Est. EPS(1) Growth Rate High Low
<S> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods UFD.A Aug 98 0.09 0.09 0.09 NA 4.00 2.06
Chiquita Brands Intl. CQB Jun 98 ($ 0.40) $ 0.79 $ 1.10 10.0% $ 18.13 $ 9.63
Dean Foods Co. DF Aug 98 2.62 2.64 2.92 13.8% 60.69 40.50
Fresh America Corp. FRES Jul 98 1.24 1.59 1.96 25.0% 27.88 10.56
Hanover Foods Corp. 3HNFSA May 98 11.62 NA NA NA 100.00 36.75
Mccormick & Co. MCCRK Aug 98 1.37 1.47 1.64 9.5% 36.44 22.75
Michael Foods, Inc. MIKL (2) Jun 98 1.76 1.82 2.05 12.0% 31.13 19.75
Performance Food Group Co. PFGC Jun 98 1.08 1.22 1.47 17.5% 25.25 15.63
Seneca Foods Corp. SENEB Jun 98 (1.35) NA NA NA 18.50 12.00
Smithfield Companies, Inc. HAMS Jun 98 0.46 NA NA NA 8.25 5.38
Smucker (Jm) Co. SJM.A Jul 98 1.26 1.30 1.44 NA 28.19 21.06
Sylvan, Inc. SYLN Jun 98 1.08 1.13 1.30 15.0% 18.75 11.75
Tyson Foods, Inc. TSN Jun 98 0.73 0.93 1.41 12.0% 24.75 16.31
Vlasic Foods International VL Jul 97 1.27 0.74 1.14 12.0% 27.00 13.69
<CAPTION>
Based on closing stock price as of 10/12/98
------------------------------------------------
Price/ Price/ Cal. 1998 Cal. 1999
Price Price/ Cal. 1998 Cal. 1999 PE / PE /
Company per Share LTM EPS Est. EPS Est. EPS Growth Rate Growth Rate
<S> <C> <C> <C> <C> <C> <C>
United Foods 3.00 33.3 33.3 33.4 NM NM
Chiquita Brands Intl. $ 10.13 NM x 12.8 x 9.2 x 128.2% 92.0%
Dean Foods Co. 47.63 18.2 18.0 16.3 130.7% 118.1%
Fresh America Corp. 11.25 9.1 7.1 5.7 28.3% 23.0%
Hanover Foods Corp. 57.00 4.9 NA NA NM NM
Mccormick & Co. 29.88 21.8 20.3 18.2 213.3% 191.3%
Michael Foods, Inc. 22.75 12.9 12.5 11.1 104.2% 92.5%
Performance Food Group Co. 20.94 19.4 17.1 14.3 97.9% 81.5%
Seneca Foods Corp. 13.00 NM NA NA NM NM
Smithfield Companies, Inc. 6.88 14.9 NA NA NM NM
Smucker (Jm) Co. 21.50 17.1 16.5 14.9 NM NM
Sylvan, Inc. 12.88 11.9 11.4 9.9 76.0% 66.0%
Tyson Foods, Inc. 21.00 28.8 22.5 14.9 187.2% 124.3%
Vlasic Foods International 18.75 14.8 25.3 16.4 210.5% 136.5%
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C>
Median: 14.9 x 16.8 x 14.6 x 128.2% 92.5%
Average: 15.8 16.3 13.1 130.7% 102.8%
Adjusted Average (excludes high and low): 15.6 16.4 13.4 133.5% 101.6%
</TABLE>
(1) When calendar 1999 EPS Multiple is not available it is approximated
using company's 5-year projected growth rate.
(2) MIKL LTM EPS excludes $0.11/sh losses from extraordinary items.
4
<PAGE> 7
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Comparable Company Market Capitalization Multiples
<TABLE>
<CAPTION>
Total Total
10/12/98 Number of Total Debt, Market Book
Company Ticker Price Shares Equity Net of Cash Capital Value
<S> <C> <C> <C> <C> <C> <C> <C>
United Foods UFD.A 3.00 6,810 20,430 42,622 63,052 45,518
Chiquita Brands Intl. CQB $ 10.13 65,369 $ 662,188 987,630 $ 1,649,818 921,147
Dean Foods Co. DF (1) 47.63 39,970 1,903,571 544,060 2,447,631 687,639
Fresh America Corp. FRES 11.25 4,864 54,720 20,480 75,200 40,191
Hanover Foods Corp. 3HNFSA 57.00 717 40,869 33,755 74,624 55,470
Mccormick & Co. MCCRK 29.88 73,404 2,192,945 503,410 2,696,354 360,637
Michael Foods, Inc. MIKL (2) 22.75 21,963 499,658 136,808 636,466 248,840
Performance Food Group Co. PFGC 20.94 12,549 262,745 73,881 336,626 141,693
Seneca Foods Corp. SENEB 13.00 5,985 77,805 318,358 396,163 87,000
Smithfield Companies, Inc. HAMS 6.88 2,343 16,108 (6,820) 9,288 14,739
Smucker (Jm) Co. SJM.A (3) 21.50 29,127 626,231 (7,052) 619,179 305,945
Sylvan, Inc. SYLN 12.88 6,452 83,070 27,767 110,837 46,860
Tyson Foods, Inc. TSN 21.00 231,154 4,854,234 2,066,600 6,920,834 2,069,200
Vlasic Foods International VL 18.75 45,455 852,281 561,747 1,414,028 106,604
<CAPTION>
(In thousands)
Market Equity/
LTM LTM Cap./ Book
Company EBIT EBITDA EBITDA Value
<S> <C> <C> <C> <C>
United Foods 5,443 12,842 4.9 0.45
Chiquita Brands Intl. $ 4,703 $200,219 8.2 x 0.72 x
Dean Foods Co. 3,142 239,662 10.2 2.77
Fresh America Corp. 908 12,153 6.2 1.36
Hanover Foods Corp. 0 22,218 3.4 0.74
Mccormick & Co. 3,662 242,604 11.1 6.08
Michael Foods, Inc. 12,750 106,802 6.0 2.01
Performance Food Group Co. 1,988 34,725 9.7 1.85
Seneca Foods Corp. (4) 43,724 9.1 0.89
Smithfield Companies, Inc. 4 1,771 5.2 1.09
Smucker (Jm) Co. 683 77,583 8.0 2.05
Sylvan, Inc. 872 17,253 6.4 1.77
Tyson Foods, Inc. (20,500) 635,300 10.9 2.35
Vlasic Foods International (25,827) 111,355 12.7 7.99
</TABLE>
<TABLE>
<S> <C> <C>
Median: 8.2 x 1.85 x
Average: 8.2 2.44
Adjusted Average (excludes high and low): 8.0 1.97
</TABLE>
(1) DF LTM EBITDA is estimated as a percent of sales.
(2) MIKL LTM EBITDA is estimated as a percent of sales.
(3) SJM.A LTM EBITDA is estimated as a percent of sales.
5
<PAGE> 8
Comparable Company Analysis
United Foods, Inc. grows, processes, markets and distributes food products.
The Company's products include frozen asparagus, black-eyed peas,
broccoli, Brussel sprouts, carrots, cauliflower, corn, green beans,
green peas, green peppers, lima beans, various vegetable mixes and
other vegetables. United's products are sold to large national grocery
chains and independent food stores.
United Foods, Inc.
Daily Price & Volume Trading Statistics Since 10/2/97
United Foods Class A United Foods Class B
[GRAPH] [GRAPH]
6
<PAGE> 9
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
Chiquita Brands Intl. Dean Foods Co.
[GRAPH] [GRAPH]
Fresh America Corp. Hanover Foods Corp.
[GRAPH] [GRAPH]
7
<PAGE> 10
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
McCormick & Co. Michael Foods, Inc.
[GRAPH] [GRAPH]
Performance Food Group Co. Seneca Foods Corp.
[GRAPH] [GRAPH]
8
<PAGE> 11
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
Smithfield Companies, Inc. Smucker (JM) Co.
[GRAPH] [GRAPH]
Sylvan, Inc. Tyson Foods, Inc.
[GRAPH] [GRAPH]
9
<PAGE> 12
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
Vlasic Foods International
[GRAPH]
10
<PAGE> 13
Comparable Company Analysis
- Description of Comparable Companies
Chiquita Brands International, Inc. produces, markets and distributes bananas
and other fresh and processed food products sold under the "Chiquita"
brand name. The Company's fresh products include mangoes, kiwi and
citrus and other tropical fruit. Chiquita also produces private-label
and branded canned vegetable and related products, fruit and vegetable
juices and other products.
Dean Foods Company processes, distributes and sell dairy, pickle, specialty
and vegetable products. Many of the Company's products are sold under
private labels. Dean's products include milk, ice cream and extended
shelf-life dairy products; salad dressings, dips and puddings; and
pickles, relishes and canned vegetables. The Company also operates a
trucking business.
Fresh America Corporation is an integrated food distribution management
company for fresh produce and other perishable refrigerated products.
The Company operates in 43 states and Canada through 22 distribution
centers. Fresh America operates produce departments in 342 "Sam's Club"
stores. "Sam's" is a division of Wal-Mart Stores, Inc.
Hanover Foods Corporation processes vegetable products. The Company grows,
processes, cans, freezes, freeze-dries, packages, markets and
distributes its products under its own trademarks, as well as other
branded, customer and private labels. Hanover operates in the United
States.
11
<PAGE> 14
Comparable Company Analysis
- Description of Comparable Companies
McCormick & Company Incorporated is a specialty food company. The Company
manufactures spices, seasonings, flavorings, and other specialty food
products and sells such products to the retail food market, the food
service market and to industrial food processors throughout the world.
McCormick, through its subsidiaries, also manufactures and markets
plastic and packaging products.
Michael Foods, Inc. is a diversified food processor and distributor with
interests in eggs and egg products, refrigerated case products, frozen
and refrigerated potato products and dairy products. The Company sells
these items to supermarkets, food service distributors, manufacturers
and fast food operators in Minnesota and surrounding states.
Performance Food Group Co. markets and distributes food and food-related
products to restaurants, hotels, cafeterias, schools and hospitals in
the United States. The Company's items include private label food
products, canned and dry groceries, poultry, meats, seafood, fresh
produce, paper and cleaning supplies and restaurant equipment.
Seneca Foods Corporation is primarily a fruit and vegetable processing
company with manufacturing facilities located throughout the United
States. The Company's products are sold under the "Seneca," "Libby's,"
and "TreeSweet" labels, as well as through the private label and
industrial markets. Seneca also, under alliance with The Pillsbury
Company, produces canned and frozen vegetables.
12
<PAGE> 15
Comparable Company Analysis
- Description of Comparable Companies
The Smithfield Companies, Inc. produces and markets a wide range of branded
food products to the retail grocery and food service industries. The
Company's products include frozen barbecues and chilies, cured hams and
other pork products, peanuts and cashews. Smithfield's products are
sold on a wholesale basis, through catalogs and through its retail
stores.
The J.M. Smucker Company manufactures and markets food products on a
worldwide basis. The Company's principal products include fruit
spreads, dessert toppings, peanut butter, industrial fruit products,
fruit and vegetable juices, juice beverages, syrups, condiments and
gift packages. Smucker's products are marketed under trademarks such as
"Smucker's," "Simply Fruit" and "Goober."
Sylvan Inc. produces and distributes mushroom spawn and fresh mushrooms. The
Company also distributes a variety of other value-added products and
services for use by mushroom growers and produces fresh mushrooms for
sale to retailers, distributors and processors of mushroom products in
the United States. Sylvan operates in the United States, Europe and
Australia.
Tyson Foods, Inc. produces, markets and distributes a variety of food
products. The Company's products include value-enhanced poultry, fresh
and frozen poultry, value-enhanced seafood products, fresh and frozen
seafood products, prepared foods and other products such as flour and
corn tortillas and chips. Tyson also has live swine, animal feed and
pet food ingredient operations.
13
<PAGE> 16
Comparable Company Analysis
- Description of Comparable Companies
Vlasic Foods International manufactures and markets branded convenience food
products in the frozen food, grocery product, and agricultural product
segments. The Company's products include "Swanson" and "Freshbake"
frozen foods, "Vlasic" pickles and condiments, "Open Pit" barbecue
sauce, and other brands. Vlasic's products are sold in the United
States and other countries.
14
<PAGE> 17
Comparable Transaction Analysis
UNITED FOODS, INC.
Comparable Transaction Summary Valuation
Food Distribution Companies(*)
(In 000s, except per share)
<TABLE>
<CAPTION>
Price to Trailing Earnings Multiple Basis: LTM EBIT Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM earnings ended 8/31/98 $ 779 LTM EBIT ended 8/31/98 $ 5,443
Adjusted Average Multiple 23.9 x Adjusted Average Multiple 16.4 x
-------- --------
Valuation $ 18,586
89,062
Valuation Per Share (1) $ 2.73
Less total debt, net of cash on 8/31/98 42,622
---------
Valuation $ 46,440
Valuation Per Share (1) $ 6.82
</TABLE>
<TABLE>
<CAPTION>
LTM EBITDA Multiple Basis: LTM Revenues Multiple Basis:
<S> <C> <C> <C> <C> <C>
LTM EBITDA ended 8/31/98 $ 12,842 LTM Revenues ended 8/31/98 $201,367
Adjusted Average Multiple 12.4 x Adjusted Average Multiple 1.1 x
-------- --------
159,571 215,279
Less total debt, net of cash on 8/31/98 42,622 Less total debt, net of cash on 8/31/98 42,622
-------- --------
Valuation $116,949 Valuation $172,657
Valuation Per Share (1) $ 17.17 Valuation Per Share (1) $ 25.35
</TABLE>
Book Value Multiple Basis:
<TABLE>
<S> <C>
Book Value at 8/31/98 $ 45,518
Adjusted Average Multiple 3.6 x
--------
Valuation $162,008
Valuation Per Share $ 23.79
</TABLE>
(1) Based on 6.8 million shares outstanding.
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
15
<PAGE> 18
Comparable Transaction Analysis
UNITED FOODS, INC.
Comparable Transaction Summary Valuation
Multiples Based on Agrilink Acquisition of Dean Foods Vegetable Division
<TABLE>
<CAPTION>
(In 000s, except per share)
LTM Revenues Multiple Basis: LTM EBIT Multiple Basis: Book Value Multiple Basis:
<S> <C> <C> <C> <C> <C> <C> <C>
LTM Revenues ended 8/31/98 $201,367 LTM EBIT ended 8/31/98 $ 5,443 Book Value at 8/31/98 $45,518
Transaction Multiple 0.8 x Transaction Multiple 11.4 x Transaction Multiple 1.7 x
-------- ------- -------
56,395 61,876 Valuation 75,863
Less total debt, Less total debt,
net of cash on 8/31/98 42,622 net of cash on 8/31/98 42,622 Valuation Per Share $11.14
-------- -------
Valuation $113,773 Valuation $19,254
Valuation Per Share $ 16.71 Valuation Per Share $ 2.83
</TABLE>
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
16
<PAGE> 19
Comparable Transaction Analysis
FOOD DISTRIBUTION COMPANIES(*) (Dollars in millions)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
Aggreg. Equity
Consid. Levered Aggregate Consideration
as a Multiple of: as a Multiple of:
Aggregate Levered ----------------- ---------------------
Date Equity Aggregate LTM Net Book LTM LTM LTM Percent
Announced Acquiror / Target Consideration Consideration(2) Income Value Revenue EBITDA EBIT Acquired
- --------- ------------------------------ ------------- ---------------- ------ ------ ------- ------ ---- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
06/07/90 ConAgra Inc
Beatrice Co $1,336.0 $3,294.0 NM 1.5 0.8 6.9 9.6 100.0%
09/28/90 Shareholders
Pet Inc (Whitman Corp) $1,607.0 $1,607.0 73.4 2.0 0.9 5.5 6.7 100.0%
10/19/90 MANO Holdings
B Manischewitz Co $ 42.5 $ 42.5 17.0 3.0 1.2 8.5 10.1 100.0%
04/19/91 ConAgra Inc
Golden Valley Microwave Foods $ 408.4 $ 408.4 20.8 3.8 2.3 19.1 30.0 100.0%
07/18/91 HJ Heinz Co
JL Foods Inc (John Labatt Ltd) $ 500.0 $ 500.0 NA NA 1.1 NA NA 100.0%
12/20/91 CPC International Inc
Fearn Intl (Kellogg Co) $ 115.0 $ 115.0 NA NA 1.2 NA NA 100.0%
01/24/92 Burns Philp Inc
Durkee-French Foods (Burns) $ 85.0 $ 85.0 NA NA 0.4 NA NA 100.0%
04/09/92 Ben Hill Griffin Inc
Orange-co (Stoneridge Res Inc) $ 31.0 $ 31.0 NM 0.7 0.5 NM NM 52.3%
04/22/92 Shareholders
Ralston-Continental Baking $ 181.1 $ 181.1 9.2 2.4 0.2 NA 3.5 55.0%
10/12/92 Dean Foods Co
WB Roddenbery Co $ 15.0 $ 15.0 NM 1.2 0.3 NM NM 100.0%
08/12/93 Pro-Fac Cooperative Inc
Curtice-Burns Foods (Pro-Fac) $ 164.2 $ 431.2 NM 2.0 0.5 20.5 NM 100.0%
08/16/93 Shareholders
Ralcorp Holdings Inc (Ralston) $ 528.0 $ 528.0 NA NA 0.7 NA NA 100.0%
11/01/93 Dean Foods Co
Kraft General Foods-Birds Eye $ 140.0 $ 140.0 23.3 NA 0.6 NA NA 100.0%
</TABLE>
17
<PAGE> 20
Comparable Transaction Analysis
FOOD DISTRIBUTION COMPANIES(*) (Dollars in millions)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
Aggreg. Equity
Consid. Levered Aggregate Consideration
as a Multiple of: as a Multiple of:
Aggregate Levered ----------------- --------------------
Date Equity Aggregate LTM Net Book LTM LTM LTM Percent
Announced Acquiror / Target Consideration Consideration(2) Income Value Revenue EBITDA EBIT Acquired
- --------- ------------------------------ ------------- ---------------- ------ ------ ------- ------ ---- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
03/18/94 Doskocil Cos Inc $ 135.0 $ 135.0 NA NA 0.7 NA NA 100.0%
Intl Multifoods-Prepared Foods
04/18/94 ConAgra Inc $ 202.0 $ 202.0 NA NA NA NA NA NA
Universal Foods-Frozen Foods
04/20/94 Schreiber Foods Inc $ 11.8 $ 11.8 16.9 2.8 0.6 5.6 10.7 100.0%
Arden International Kitchens
05/23/94 Sandoz AG $3,685.7 $3,685.7 32.3 10.1 3.1 16.3 20.0 100.0%
Gerber Products Co
09/12/94 Kohlberg Kravis Roberts & Co $2,222.9 $4,622.9 NM 8.6 0.8 NA 40.1 100.0%
Borden Inc
11/28/94 Campbell Soup Co $1,115.0 $1,115.0 24.8 18.3 4.8 23.7 26.3 100.0%
Pace Foods
01/09/95 Pillsbury Co (Grand Met PLC) $2,636.5 $2,636.5 23.4 7.3 1.7 10.0 12.2 100.0%
Pet Inc (Pillsbury/Grand Met)
07/26/95 Shareholders $ 309.8 $ 309.8 NM 0.5 0.2 NA NM 100.0%
Earthgrains Co (Anheuser-Busch)
03/15/96 ConAgra Inc $ 132.0 $ 132.0 NA NA 0.7 NA NA 100.0%
Gilroy Foods Inc
06/30/97 JP Foodservice Inc $ 770.6 $1,510.6 NM 2.3 2.9 NM NM 100.0%
Rykoff-Sexton Inc
09/09/97 Shareholders $1,004.8 $1,004.8 NA NA 0.7 NA NA 100.0%
Campbell Soup-Noncore Bus(7)
09/18/97 Chiquita Brands International $ 10.9 $ 42.9 NM 1.8 0.2 NM NM 100.0%
Stokely USA Inc
09/29/97 Suiza Foods Corp $ 855.9 $1,035.9 47.0 8.6 2.1 NA 26.6 100.0%
Morningstar Group Inc
</TABLE>
18
<PAGE> 21
Comparable Transaction Analysis
FOOD DISTRIBUTION COMPANIES(*) (Dollars in millions)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
Aggreg. Equity
Consid. Levered Aggregate Consideration
as a Multiple of: as a Multiple of:
Aggregate Levered ---------------- ---------------------
Date Equity Aggregate LTM Net Book LTM LTM LTM Percent
Announced Acquiror / Target Consideration Consideration(2) Income Value Revenue EBITDA EBIT Acquired
- --------- ------------------------------ ------------- ---------------- ------ ------ ------- ------ ---- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/01/97 Chiquita Brands International $ 27.0 $ 29.0 7.5 1.1 0.4 NA NA 100.0%
American Fine Foods Inc
02/18/98 Agrilink Foods (Pro-Fac) $ 6.9 $ 6.9 NA NA NA NA NA 100.0%
Delagra Corp
05/08/98 Agrobios (Desc SA de CV) $141.9 $141.9 NM 3.2 2.7 NM NM 100.0%
Authentic Specialty Foods Inc
07/21/98 Agrilink Foods (Pro-Fac) NA NA NA NA NA NA NA 100.0%
JA Hopay Distributing Co
07/27/98 Agrilink Foods (Pro-Fac) $480.0 $482.0 NA 1.7 0.8 NA 11.4 100.0%
Dean Foods Co-Vegetable Ops
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C>
Average: 26.9 4.1 1.2 12.9 17.3
Adjusted Average 23.9 3.6 1.1 12.4 16.4
</TABLE>
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
(2) Levered aggregate consideration is defined as aggregate equity
consideration plus total debt, net of cash and equivalents.
19
<PAGE> 22
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------ -------- -------- ----- --------- ------ -------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/7/90 8/14/90 ConAgra Inc Beatrice Co $1,336.0 $3,294.0 -- -- $864.0 $4,310.0 $11.0 $343.0 $478.0
Advisor Gleacher & Co Salomon Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- ------ --------------
<S> <C> <C> <C> <C>
6/7/90 $1,016.0 $3,472.0 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Beatrice from Kohlberg Kravis Roberts (KKR) for $3.294
bil in cash, common stock, preferred stock, and the assumption of
Beatrice's liabilities. The consideration consisted of $626 mil in
cash, $355 mil in common stock and $355 mil in 2 series of preferred
stock plus the assumption of $1.958 bil of Beatrice's liabilities. The
deal had been subject to governmental approval due to antitrust issues.
Gleacher acted as financial advisor to ConAgra.
Target Business Description
---------------------------
Produce food, consumer prod
Acquiror Business Description
-----------------------------
Produce meats,eggs,cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/28/90 4/4/91 Shareholders Pet Inc(Whitman Corp) $1,607.0 $1,607.0 $15.63 102.8 $801.6 $1,863.2 $21.9 $241.5 $291.5
Advisor -- First Boston Corp.
-------
Company Status Priv. Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C>
9/28/90 $130.0 $1,531.4 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Whitman completed the spinoff of Pet for $1.607 bil, based on Pet's
closing share price of $15.625 on April 4, its first day of trading.
First Boston was retained to study a possible restructure plan and
recommended the spinoff. The transaction was conducted by means of a
stock dividend in which shareholders received one share of Pet for
every Whitman share held. In anticipation of the spinoff, Whitman
restructured its major food operations, splitting them into three
divisions. In 1989, Pet generated $1.755 bil in sales and $280 mil in
pre-tax operating profit.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 23
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------- ------ -------- ------- --------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/19/90 1/18/91 MANO Holdings B Manischewitz Co $42.5 $42.5 $800.00 0.1 $14.2 $34.2 $2.5 $4.2 $5.0
Advisor TGV Partners Lehman Brothers
-------
Company Status Priv. Public
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- -------------- --------
<S> <C> <C> <C> <C>
10/19/90 -- $18.4 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
MANO Holdings, an investor group led by Kohlberg and including TGV
Partners and management, acquired B Manischewitz in a leveraged buyout
transaction valued at $800 in cash per share, or $42.5 mil. MANO
accepted 81% of B Manischewitz' shares (42,975 shares) that were
tendered in the offer and acquired the rest for $800 in cash per share.
Under the terms of the agreement, senior management was to retain an
equity interest in MANO Holdings.
Target Business Description
---------------------------
Produce, whl, ret matzos
Acquiror Business Description
-----------------------------
Investor group; holding co
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/19/91 7/11/91 ConAgra Inc Golden Valley Microwave Foods $408.4 $408.4 $26.39 17.6 $108.0 $177.6 $19.6 $13.6 $21.4
Advisor Gleacher & Co Goldman, Sachs & Co.
-------
Company Status Public Public
--------------
<CAPTION>
<S> <C> <C> <C> <C>
4/19/91 $52.7 $180.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Golden Valley Microwave Foods (GV) in a stock
transaction valued at $464.5 mil. GV shareholders received .5676 shares
of ConAgra for each of GV's 18.8 mil fully diluted common shares. Based
on ConAgra's closing stock price of $47.375 on Apr 18, the last full
trading day prior to the announcement, each share of GV had an
indicated value of $26.39. ConAgra also agreed to convert 600,000 GV
warrants, held by an affiliate of Chase Manhattan Bank, for 340,560
rights to buy ConAgra stock at $60.48.
Target Business Description
---------------------------
Produce microwave food prod
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 24
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/18/91 8/23/91 HJ Heinz Co JL Foods Inc (John Labatt Ltd) $500.0 $500.0 -- -- -- $475.0 -- --
Advisor Dillon, Read James D. Wolfensohn Inc.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
7/18/91 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
HJ Heinz acquired the JL Foods unit of John Labatt for $500 mil in
cash. John Labatt had disclosed in May 1991 that it was seeking a buyer
for its JL Foods unit. Officials said the planned divestiture was
consistent with John Labatt's stated strategy to focus on its core
brewing, entertainment and dairy operations. The transaction had been
subject to US and Canadian regulatory approval.
Target Business Description
---------------------------
Produce, whl frozen foods
Acquiror Business Description
-----------------------------
Canned food preparations
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/20/91 1/31/92 CPC International Inc Fearn Intl (Kellogg Co) $115.0 $115.0 -- -- -- $100.0 -- --
Advisor Salomon Brothers Lehman Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
12/20/91 -- -- -- 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
CPC International acquired all the outstanding common stock of Fearn
International, a subsidiary of Kellogg, including the Le Gout product
line for a $115 mil in cash. Lehman Brothers acted as financial advisor
to Kellogg while Salomon Brothers advised CPC International.
Target Business Description
---------------------------
Produce soups and desserts
Acquiror Business Description
-----------------------------
Produce soups, sauces, food prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 25
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/24/92 8/3/92 Burns Philp Inc Durkee-French Foods (Burns) $85.0 $85.0 -- -- -- $200.0 -- --
Advisor -- --
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
1/24/92 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Burns Philp Inc, a unit of Burns Philp & Co, acquired Durkee-French
Foods from Reckitt & Coleman for $85 mil in cash, including $7 mil to
be held in escrow pending finalization of certain accounts.
Target Business Description
---------------------------
Produce mustard, sauces
Acquiror Business Description
-----------------------------
Produce yeast, vinegar, spices
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/9/92 5/28/92 Ben Hill Griffin Inc Orange-co (Stoneridge Res Inc)$31.0 $31.0 -- -- $85.6 $126.5 ($8.7) ($9.0)
Advisor -- Donaldson, Lufkin & Jenrette
-------
Company Status Priv. Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/9/92 ($4.2) $45.9 $149.8 52.3 Completed
Acq. Maj. Int.
Friendly
</TABLE>
Deal Description
----------------
Ben Hill Griffin acquired a 52.3% interest in Orange-co held by
Stoneridge Resources for $31 mil. Stonebridge Resources said in October
1990 that it was seeking a buyer for all of its assets for the purpose
of raising cash to distribute a liquidation dividend to shareholders.
Stonebridge retained Donaldson Lufkin & Jenrette Securities as a
financial advisor.
Target Business Description
---------------------------
Prod oranges, juices, plastics
Acquiror Business Description
-----------------------------
Frozen fruits, juices, vegetable
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 26
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/22/92 8/2/93 Shareholders Ralston-Continental Baking $181.1 $181.1 $8.75 37.6 $137.4 $2,014.5 $35.8 $92.9
Advisor - Lehman Brothers
-------
Company Status Priv. Sub.
- ----------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/22/92 -- -- $844.9 55 Completed
Acq. Maj. Int.
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina (RP) completed the spinoff of 20.7 mil new common
shares, or a 55% interest, in its newly created Ralston-Continental
Baking Group (CBG) to shareholders in a targeted stock recapitalization
valued at $181.12 mil. Shareholders of record as of Jul 30 received 1
CBG share for every 5 RP share held. Ralston Purina had originally
planned to spinoff the entire unit in April 1992. CBG was created in
order to separate the performance of RP's baking and non-baking
interests.
Target Business Description
---------------------------
Produce bakery products
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/12/92 2/1/93 Dean Foods Co WB Roddenbery Co $15.0 $15.0 -- -- $12.8 $54.8 ($1.7) ($1.4)
Advisor -- KPMG Peat Marwick
-------
Company Status Public Priv.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
10/12/92 ($0.5) $0.8 $19.1 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired all the outstanding stock of WB Roddenbery in
exchange for 535,000 of its common shares valued at $14.2 mil. The
value of the shares was based on Dean's closing stock price of $26.5
per share on Oct 9, the last full trading day prior to the
announcement. The transaction had been subject to Federal Trade
Commission approval.
Target Business Description
---------------------------
Produce pickles, vinegar, syrup
Acquiror Business Description
-----------------------------
Produce milk, dairy products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 27
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/12/93 11/3/94 Pro-Fac Cooperative Inc Curtice-Burns Foods(Pro-Fac) $164.2 $431.2 $19.00 8.6 $81.3 $854.8 ($18.5)
Advisor Dillon, Read Donaldson, Lufkin & Jenrette
------- Priv. Public
Company Status
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
8/12/93 ($5.2) $21.0 $257.5 $463.6 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative (PFC) acquired Curtice-Burns (CBF) for a total of
$19 in cash per share, or a total value of $424.25 mil, by accepting
8,276,439 common shares, or 96% of the outstanding shares. Included in
the value was PFC's assumption of $267 mil of CBF's debt. PFC had
originally offered $16.87 in cash per share held. The tender offer was
contingent upon at least 90% of CBF's Class A and B shares being
tendered. Dean Foods withdrew its offer to acquire CBF.
Target Business Description
---------------------------
Produce soft drinks, foods
Acquiror Business Description
-----------------------------
Provide food marketing service
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/16/93 3/31/94 Shareholders Ralcorp Holdings Inc (Ralston) $528.0 $528.0 $16.00 33.0 -- $808.6 --
Advisor -- Wasserstein, Perella
------- Priv. Sub.
Company Status
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
8/16/93 -- -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina Group, a unit of Ralston Purina, spun off its newly
formed Ralcorp Holdings (RH) unit, consisting of its cereal, Beech-Nut
baby food, cracker, cookie, resort, and coupon redemption businesses to
shareholders in a transaction valued of $528 mil based on RH's closing
stock price of $16 per share on Apr 1, the first full trading day of
newly issued RH shares. The shares in the spinoff would be distributed
at a ratio of 1 RH share for every 3 shares of Ralston Purina Group.
The unit included its Keystone and Breckenridge ski resorts.
Target Business Description
---------------------------
Produce cereal, baby food
Acquiror Business Description
-----------------------------
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 28
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/1/93 12/27/93 Dean Foods Co Kraft General Foods-Birds Eye $140.0 $140.0 -- -- -- $250.0
Advisor JP Morgan Securities, Inc. Morgan Stanley
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
11/1/93 $6.0 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired the BirdsEye frozen vegetable business of Kraft
General Foods, a unit of Philip Morris, for $140 mil. The transaction
had been subject to regulatory approval.
Target Business Description
---------------------------
Prod frozen vegetables
Acquiror Business Description
-----------------------------
Produce milk, dairy products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/18/94 6/1/94 Doskocil Cos Inc Intl Multifoods-Prepared Foods $135.0 $135.0 -- -- -- $185.0
Advisor -- Lehman Brothers
-------
Company Status Public Sub
- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
3/18/94 -- -- -- -- -- 100 Completed
Acq. of
Assets
Friendly
</TABLE>
Deal Description
----------------
Doskocil acquired the prepared foods division of International
Multifoods (IM) for $135 mil in cash. In September 1993, IM's board had
announced that it was seeking to divest its prepared foods division.
The division included its frozen specialty foods and meats businesses.
Later IBP acquired the meats business.
Target Business Description
---------------------------
Produce prepared foods
Acquiror Business Description
-----------------------------
Produce sausages, prepared meat
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 29
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ----------- ----------------------------- ------ ------ ------ --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/18/94 -- ConAgra Inc Universal Foods-Frozen Foods $202.0 $202.0 -- -- -- -- -- --
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------ --------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/18/94 -- -- -- -- Pending
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra agreed to acquire the frozen foods business of Universal Foods
for an amended $202 mil in cash. The initial value was $220 mil,
including $57 mil in performance-related payments. The transaction was
subject to regulatory approval.
Target Business Description
---------------------------
Produce frozen foods
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/20/94 11/30/94 Schreiber Foods Inc Arden International Kitchens $11.8 $11.8 $3.90 3.0 $4.2 $19.5 $0.7 $1.1
Advisor -- --
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/20/94 $2.1 $0.9 $6.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Schreiber Foods (SF) acquired Arden International Kitchens (AIK) for an
amended $11.8 mil in cash, or $3.90 per common share. SF had originally
agreed to acquire AIK for $4 per share, or a total value of $12.1 mil.
Target Business Description
---------------------------
Produce frozen foods for
Acquiror Business Description
-----------------------------
Produce meat and food products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 30
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- -------- -------- ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/23/94 12/19/94 Sandoz AG Gerber Products Co $3,685.7 $3,685.7 $53.00 69.5 $364.7 $1,202.5 $114.2 $184.0
Advisor Morgan Stanley Wasserstein, Perella
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ ---------
<S> <C> <C> <C> <C> <C>
5/23/94 $226.0 $84.7 $1,013.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Sandoz completed its merger with Gerber Products (GP) in a transaction
valued at $3.68 bil. Earlier, Sandoz had completed its tender offer for
all the common shares of GP for $53 in cash per share, by accepting
69.08 mil shares, or about 99.2% of GP's shares outstanding. The offer
had been conditioned upon Sandoz receiving at least a majority of GP's
stock. The transaction had been subject to regulatory approval,
including the approval of the Federal Trade Commission under the
Hart-Scott-Rodino Act, and the Superintendent of Insurance of New York.
Target Business Description
-----------------------------
Manfr baby foods and products
Acquiror Business Description
-----------------------------
Manufacture dyestuffs
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/12/94 3/14/95 Kohlberg Kravis Roberts & Co Borden Inc $2,222.9 $4,622.9 $13.61 170.3 $257.5 $5,498.2 ($114.2) $115.4
Advisor Morgan Stanley Credit Suisse First Boston
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
9/12/94 -- $1,682.7 $4,055.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Kohlberg Kravis Roberts (KKR) merged with Borden (BN) in an amended
stock swap valued at $4.643 bil, including $2.4 bil in the assumption
of liabilities. The value included a 16.5% stake KKR acquired in Borden
through a lockup agreement valued at $309.518 mil. Earlier, KKR had
completed a tender offer to acquire all the shares of BN in exchange
for 2.29146 RJR shares, valued at $13.606, per BN share held, by
accepting 90 mil shares, or about 63.5% of BN's total shares
outstanding. The offer had been conditioned upon a minimum of 41% of
BN's shares being tendered.
Target Business Description
---------------------------
Produce dairy prods, snacks
Acquiror Business Description
-----------------------------
Leverage buyout firm
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 31
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- ------ -------- ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/28/94 1/30/95 Campbell Soup Co Pace Foods $1,115.0 $1,115.0 -- -- $61.0 $230.0 $45.0
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ -------- -------- ------ --------- --------------
<S> <C> <C> <C> <C> <C> <C>
11/28/94 $42.4 $47.0 -- $112.7 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Campbell Soup acquired Pace Foods for $1.115 bil in cash.
Target Business Description
---------------------------
Produce pickled vegetables
Acquiror Business Description
-----------------------------
Produce soups, food products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/9/95 5/12/95 Pillsbury Co (Grand Met PLC) Pet Inc (Pillsbury/Grand Met) $2,636.5 $2,636.5 $26.00 100.4 $362.2 $1,576.3 $112.6
Advisor Morgan Stanley Lazard Freres & Co.
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1/9/95 $216.7 $262.5 $528.1 $1,175.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pillsbury, a unit of Grand Metropolitan (GM), completed its merger with
Pet in a transaction valued at $2.636 bil. Earlier, Pillsbury completed
its tender offer for all the outstanding common shares of Pet for $26
in cash per share, by accepting 95,364,543 shares, or 95% of Pet's
common stock outstanding. The offer had been conditioned upon GM
receiving at least 50% of Pet's shares outstanding, and had been
subject to regulatory approval.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Produce flour, grain mill prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 32
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------ ------------------------------ ------ ------ ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/26/95 3/27/96 Shareholders Earthgrains Co (Anheuser-Busch)$309.8 $309.8 $30.38 10.2 $573.8 $1,664.6 ($25.7) ($31.2)
Advisor -- Dillon, Read
-------
Company Status Priv. Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
7/26/95 -- $56.2 $1,130.1 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Anheuser-Busch (AB) completed the spin off its Earthgrains (EA) unit to
shareholders in a transaction valued at $309.83 mil. Each AB common
shareholder received 1 EA common share for every 25 AB shares held.
EA's shares were valued based on EA's closing stock price of $30.375 on
Mar 27, the first full trading day on a non-when issued basis. Earlier,
EA was known as as Cambell Taggart.
Target Business Description
---------------------------
Baked goods, frozen foods
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/29/96 ConAgra Inc Gilroy Foods Inc $132.0 $132.0 -- -- -- $200.0 -- --
Advisor -- --
- -------
Company Status Public Sub.
- --------------
<S> <C> <C> <C> <C> <C>
3/15/96 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Gilroy Foods, a unit of McCormick, for $132 mil in
cash.
Target Business Description
---------------------------
Produce dried fruits
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 33
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------ --------------------- ------ ------ ------ --------- ------ ------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/30/97 12/23/97 JP Foodservice Inc Rykoff-Sexton Inc $770.6 $1,510 $24.41 28.0 $336.0 $519.9 ($60.2) ($79.5)
Advisor PaineWebber Merrill Lynch & Co.
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
6/30/97 ($73.0) $483.2 $1,217.2 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
JP Foodservice (JP) merged with Rykoff-Sexton (RS) in a
merger-of-equals stock swap transaction valued at an amended $1.436
bil, including the assumption of $740 mil in liabilities. JP offered an
amended .775 common shares per RS share. Originally, JP offered .82
common shares per RS share. Based on JP's closing stock price of $31.5
on June 27, the last full trading day prior to the announcement of
amended terms, each RS share was valued at $24.4125. The transaction
was accounted for as a pooling of interests and had been subject to
regulatory approval.
Target Business Description
---------------------------
Wholesale grocery products
Acquiror Business Description
-----------------------------
Wholesale groceries
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/9/97 3/11/98 Shareholders Campbell Soup-Noncore Bus(7) $1,004 $1,004.8 $22.13 45.4 -- $1,400 -- --
Advisor -- Goldman, Sachs & Co.
-------
Company Status Priv. Sub.
- --------------
<S> <C> <C> <C> <C> <C>
9/9/97 -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Campbell Soup (CS) spun off its 7 noncore businesses including the
Swanson frozen dinner and Vlasic pickle brands into a new company named
Vlasic Foods (VF) to its shareholders in a transaction valued at $1.004
bil. CS shareholders received 1VF common share for every 10 CS shares
held. The shares were valued based on VF's closing stock price of
$22.125 on March 11, the first full trading day on which the shares
were distributed.
Target Business Description
---------------------------
Produce, whl soups, food prods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 34
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------------ ------ ------ ------ --------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/18/97 1/16/98 Chiquita Brands International Stokely USA Inc $10.9 $42.9 $1.00 11.4 $6.1 $178.9
Advisor No Investment Bank Retained Donaldson, Lufkin & Jenrette
-------
Company Status Public Public
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
9/18/97 ($19.4) ($8.9) ($2.9) $74.7 $116.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International (CBI) acquired all the outstanding common
stock of Stokely USA (SU) in exchange for $1 in common stock per share,
or a total value of approximately $43.389 mil, including the assumption
of about $32 mil in liabilities.
Target Business Description
------------------------------
Prod canned fruits, vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/29/97 12/1/97 Suiza Foods Corp Morningstar Group Inc $855.9 $1,035.9 $45.85 15.4 $99.4 $497.6
Advisor Donaldson, Lufkin & Jenrette Goldman, Sachs & Co.
-------
Company Status Public Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
9/29/97 $18.2 $38.9 -- 178.5 $352.3 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Suiza Foods (SF) acquired Morningstar Group (MG) in a stock swap
transaction valued at approximately $971.957 mil, including the
assumption of $180 mil in liabilities. SF offered .85 SF common shares
per MG share. Based on SF's closing stock price of $53.9375 on Sep 26,
the last full trading day prior to the announcement, each MG share was
valued at $45.85. The transaction was accounted for as a pooling of
interests and had been subject to regulatory approval.
Target Business Description
---------------------------
Produce dairy products
Acquiror Business Description
-----------------------------
Produce milk, related prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 35
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/1/97 12/9/97 Chiquita Brands International American Fine Foods Inc $27.0 $29.0 -- -- $25.6 $79.8 $3.6
Advisor -- JP Morgan & Co. Inc.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
10/1/97 -- -- -- $52.0 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International acquired all the outstanding stock of
American Fine Foods for $29 mil. The consideration consisted of $27 mil
in common stock and the assumption of $2 mil in liabilities. The
transaction was subject to regulatory approval.
Target Business Description
---------------------------
Produce canned vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/98 Agrilink Foods (Pro-Fac) Delagra Corp $6.9 $6.9 -- -- -- --
Advisor -- --
-------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C>
2/18/98 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative Inc, acquired Delagra Corp (DE). Terms were not
disclosed. Upon completion, DE was to be incorporated to AF's Curtice
Burns Foods subsidiary.
Target Business Description
---------------------------
Produce frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 36
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ------------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/8/98 6/15/98 Agrobios (Desc SA de CV) Authentic Specialty Foods Inc $141.9 $141.9 $17.00 8.0 $40.5 $37.2 ($0.6)
Advisor JP Morgan & Co. Inc. Donaldson, Lufkin & Jenrette
-------
Company Status Sub. Public
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
5/8/98 ($0.4) $0.8 $10.2 $58.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Agrobios (AB), a unit of Desc SA de CV, acquired all the outstanding
common stock of Authentic Specialty Foods Inc (ASF) for $17 in cash per
share, or a total value of $141.876 mil. Earlier, AB completed its
tender offer for ASF by accepting 7.8 million shares, or 89% of ASF's
shares outstanding. The offer had been conditioned upon at least 66.67%
of ASF's shares being tendered on a fully-diluted basis.
Target Business Description
---------------------------
Whl, mnfr Mexican foods
Acquiror Business Description
-----------------------------
Mnfr, whl foods products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/21/98 Agrilink Foods (Pro-Fac) JA Hopay Distributing Co -- -- -- -- -- $8.0 --
Advisor -- --
- -------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C> <C>
7/21/98 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods, a unit of Pro-Fac Cooperative Inc, acquired JA Hopay
Distributing Co.
Target Business Description
---------------------------
Distribution of snack foods
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 37
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ---------------------------- ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/27/98 9/24/98 Agrilink Foods (Pro-Fac) Dean Foods Co-Vegetable Ops $480.0 $482.0 -- -- -- $620.6 --
Advisor - Merrill Lynch & Co.
-------
Company Status Sub. Sub.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
7/27/98 $42.4 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods (AF), a unit of Pro-Fac Cooperative Inc, acquired the
vegetable operations of Dean Foods Co for an estimated $370 mil in
cash, a $30 mil note and AF's aseptic foods business. Included in the
acquisition were the Birds Eye, Freshlike and VegAll brand names.
Target Business Description
---------------------------
Mnfr frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
*Covers industries with SIC Codes in the 2030s. Source: Securities Data Company,
Inc. (201) 622-3100. As of 10/13/98.
<PAGE> 38
Discounted Cash Flow Analysis
Average Valuation Per Share (1)
<TABLE>
<CAPTION>
Projected No Expenses $500,000 of $750,000 of $1,000,000 of
Growth Rate Added Back Cost Savings Cost Savings Cost Savings
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
0.0% $ 2.08 $ 2.56 $ 2.81 $ 3.05
2.5% $ 2.88 $ 3.37 $ 3.62 $ 3.86
5.0% $ 3.77 $ 4.26 $ 4.50 $ 4.74
-----------------------------------------------------------------------------
</TABLE>
(1) Based on 6.8 million shares outstanding.
20
<PAGE> 39
Discounted Cash Flow Analysis
United Foods, Inc.
Calculation of Weighted Average Cost of Capital
(in thousands except per share)
Weighted Average Cost of Capital (WACC) = (Equity % of Capitalization)(Cost of
Equity) + (Debt % of Capitalization)(Cost of Debt)
28.6% Equity (13.83%) + 71.4% Debt (5.58%)
7.9%
<TABLE>
<CAPTION>
Cost of Equity Data Used
- ----------------------------------------------------- ----------------------------------------------
<S> <C>
Cost of Equity = Rf + B (Rm - Rf) Capital Asset Pricing Model (a)
Risk Free Rate = Rf 10 Year Treasury Yield = 4.49% (b)
Beta of Common Stock = B UFD Beta = 0.7 (c)
Market Risk Premium = (Rm - Rf) Common Stock Returns
over Int.-term Gov't Bonds = 8.9% (d)
Cost of Equity = 4.5% + .7*(8.9%) + 3.5% Micro-Cap Stock Premium 3.5%
Cost of Debt = (1-T)*Ri (e)
Cost of Equity = 13.8% Cost of Debt = 5.6%
------------ ---------
Capitalization (f)= $20,430 of Market Equity + $50,909 of Long Term Debt = $71,339
= 28.6% Equity + 71.4% Debt
</TABLE>
(a) The Capital Asset Pricing Model states that the return on an asset or
security is equal to the risk free return (i.e., Treasury Bonds) plus a
risk premium.
(b) 10 Year Treasury as of 9/30/98.
(c) Beta estimate taken from Value Line Investment Survey.
(d) Intermediate horizon risk premium of 8.9%, as calculated by Ibbotson &
Sinquefield, 1996. Includes an additional Micro-Cap Stock Premium of 3.5%.
(e) Interest cost of 9.00%, tax adjusted at 38.0%.
(f) Assumes UFD has a targeted capital structure of 28.6% equity and 71.4%
debt.
21
<PAGE> 40
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model (0% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit
Multiple Method
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 12,938 $ 12,938 $ 12,938 $ 12,938 $ 12,938
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,511 4,304 4,186 4,110 4,031
-------- -------- -------- -------- --------
Pre-tax income 1,159 1,366 1,484 1,560 1,639
Provision for income taxes 440 519 564 593 623
-------- -------- -------- -------- --------
Net income 718 847 920 967 1,016
======== ======== ======== ======== ========
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,797 2,668 2,595 2,548 2,499
Less: Net additions to working capital (1) -- -- -- -- --
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
-------- -------- -------- -------- --------
Operating cash flow $ 3,515 $ 3,515 $ 3,515 $ 3,515 $ 3,515
======== ======== ======== ======== ========
Cash flow growth 0.0% 0.0% 0.0% 0.0%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $ 3,815 $12,620 $21,426 $30,231
9.0% 1,470 9,879 18,287 26,696
10.0% (754) 7,279 15,312 23,346
Average Valuation of Equity $14,134
-------
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2) (4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $ 0.56 $ 1.85 $ 3.15 $ 4.44
9.0% $ 0.22 $ 1.45 $ 2.69 $ 3.92
10.0% $ (0.11) $ 1.07 $ 2.25 $ 3.43
Average Per Share Valuation of Equity $ 2.08
--------
- --------------------------------------
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $54,248 (4) Based on 6.8 million shares outstanding.
</TABLE>
22
<PAGE> 41
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 0% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple
Method
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 13,438 $ 13,438 $ 13,438 $ 13,438 $ 13,438
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,511 4,285 4,127 4,017 3,908
-------- -------- -------- -------- --------
Pre-tax income 1,659 1,885 2,043 2,153 2,262
Provision for income taxes 630 716 776 818 860
-------- -------- -------- -------- --------
Net income 1,028 1,169 1,266 1,335 1,403
======== ======== ======== ======== ========
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,797 2,656 2,559 2,491 2,423
Less: Net additions to working capital (1) -- -- -- -- --
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
-------- -------- -------- -------- --------
Operating cash flow $ 3,825 $ 3,825 $ 3,825 $ 3,825 $ 3,825
======== ======== ======== ======== ========
Cash flow growth 0.0% 0.0% 0.0% 0.0%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $6,754 $15,900 $25,045 $34,191
9.0% 4,300 13,034 21,768 30,502
10.0% 1,973 10,317 18,661 27,005
Average Valuation of Equity $17,454
-------
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2) (4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $ 0.99 $ 2.33 $ 3.68 $ 5.02
9.0% $ 0.63 $ 1.91 $ 3.20 $ 4.48
10.0% $ 0.29 $ 1.51 $ 2.74 $ 3.97
Average Per Share Valuation of Equity $ 2.56
--------
- -------------------------------
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $54,248 (4) Based on 6.8 million shares outstanding.
</TABLE>
23
<PAGE> 42
<TABLE>
<CAPTION>
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 0% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
(Numbers in Thousands)
(Fiscal Year Ended February)
2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 13,688 $ 13,688 $ 13,688 $ 13,688 $ 13,688
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,511 4,285 4,108 3,972 3,847
-------- -------- -------- -------- --------
Pre-tax income 1,909 2,135 2,312 2,448 2,573
Provision for income taxes 725 811 878 930 978
-------- -------- -------- -------- --------
Net income 1,183 1,324 1,433 1,518 1,595
======== ======== ======== ======== ========
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,797 2,656 2,547 2,463 2,385
Less: Net additions to working capital (1) -- -- -- -- --
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
-------- -------- -------- -------- --------
Operating cash flow $ 3,980 $ 3,980 $ 3,980 $ 3,980 $ 3,980
======== ======== ======== ======== ========
Cash flow growth 0.0% 0.0% 0.0% 0.0%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ------ ------- ------- -------
<S> <C> <C> <C> <C>
8.0% $8,224 $17,540 $26,855 $36,171
9.0% 5,716 14,612 23,508 32,404
10.0% 3,337 11,836 20,335 28,834
Average Valuation of Equity $19,114
-------
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2) (4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C>
8.0% $ 1.21 $ 2.58 $ 3.94 $ 5.31
9.0% $ 0.84 $ 2.15 $ 3.45 $ 4.76
10.0% $ 0.49 $ 1.74 $ 2.99 $ 4.23
Average Per Share Valuation of Equity $ 2.81
--------
- -----------------------------------------
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $54,248 (4) Based on 6.8 million shares outstanding.
</TABLE>
24
<PAGE> 43
<TABLE>
<CAPTION>
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model ($1 MM Cost Savings, 0% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
(Numbers in Thousands)
(Fiscal Year Ended February)
2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 13,938 $ 13,938 $ 13,938 $ 13,938 $ 13,938
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,511 4,285 4,089 3,926 3,787
-------- -------- -------- -------- --------
Pre-tax income 2,159 2,385 2,581 2,744 2,883
Provision for income taxes 820 906 981 1,043 1,096
-------- -------- -------- -------- --------
Net income 1,338 1,479 1,600 1,701 1,788
======== ======== ======== ======== ========
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,797 2,656 2,535 2,434 2,348
Less: Net additions to working capital (1) -- -- -- -- --
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
-------- -------- -------- -------- --------
Operating cash flow $ 4,135 $ 4,135 $ 4,135 $ 4,135 $ 4,135
======== ======== ======== ======== ========
Cash flow growth 0.0% 0.0% 0.0% 0.0%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ------ ------- ------- -------
<S> <C> <C> <C> <C>
8.0% $9,693 $19,179 $28,665 $38,151
9.0% 7,131 16,190 25,248 34,307
10.0% 4,700 13,355 22,009 30,664
Average Valuation of Equity $20,774
-------
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2) (4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C>
8.0% $ 1.42 $ 2.82 $ 4.21 $ 5.60
9.0% $ 1.05 $ 2.38 $ 3.71 $ 5.04
10.0% $ 0.69 $ 1.96 $ 3.23 $ 4.50
Average Per Share Valuation of Equity $ 3.05
--------
- --------------------------------------------
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC
(2) Less total capital liab. (net of cash) of $54,248 (4) Based on 6.8 million shares outstanding.
</TABLE>
25
<PAGE> 44
<TABLE>
<CAPTION>
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model (2.5% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
(Numbers in Thousands)
(Fiscal Year Ended February)
2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 13,261 $ 13,593 $ 13,933 $ 14,281 $ 14,638
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,511 4,359 4,317 4,273 4,211
-------- -------- -------- -------- --------
Pre-tax income 1,482 1,965 2,348 2,740 3,159
Provision for income taxes 563 747 892 1,041 1,200
-------- -------- -------- -------- --------
Net income 919 1,219 1,456 1,699 1,958
======== ======== ======== ======== ========
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,797 2,703 2,676 2,649 2,611
Less: Net additions to working capital (1) (971) (995) (1,020) (1,045) (1,072)
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
-------- -------- -------- -------- --------
Operating cash flow $ 2,745 $ 2,926 $ 3,112 $ 3,303 $ 3,498
======== ======== ======== ======== ========
Cash flow growth 6.6% 6.3% 6.1% 5.9%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $7,894 $17,857 $27,819 $37,782
9.0% 5,319 14,833 24,347 33,861
10.0% 2,878 11,967 21,056 30,145
Average Valuation of Equity $19,646
-------
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2) (4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $ 1.16 $ 2.62 $ 4.09 $ 5.55
9.0% $ 0.78 $ 2.18 $ 3.58 $ 4.97
10.0% $ 0.42 $ 1.76 $ 3.09 $ 4.43
Average Per Share Valuation of Equity $ 2.88
--------
- --------------------------------------------
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $54,248 (4) Based on 6.8 million shares outstanding.
</TABLE>
26
<PAGE> 45
<TABLE>
<CAPTION>
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 2.5% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
(Numbers in Thousands)
(Fiscal Year Ended February)
2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 13,761 $ 14,093 $ 14,433 $ 14,781 $ 15,138
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,511 4,334 4,252 4,179 4,088
-------- -------- -------- -------- --------
Pre-tax income 1,982 2,491 2,913 3,334 3,782
Provision for income taxes 753 947 1,107 1,267 1,437
-------- -------- -------- -------- --------
Net income 1,229 1,544 1,806 2,067 2,345
======== ======== ======== ======== ========
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,797 2,687 2,636 2,591 2,534
Less: Net additions to working capital (1) (971) (995) (1,020) (1,045) (1,072)
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
-------- -------- -------- -------- --------
Operating cash flow $ 3,055 $ 3,236 $ 3,422 $ 3,613 $ 3,808
======== ======== ======== ======== ========
Cash flow growth 5.9% 5.7% 5.6% 5.4%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $10,833 $21,136 $31,439 $41,742
9.0% 8,150 17,989 27,827 37,666
10.0% 5,605 15,005 24,405 33,804
Average Valuation of Equity $22,967
-------
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2) (4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ---- ----- ----- ----- -----
<S> <C> <C> <C> <C>
8.0% $ 1.59 $ 3.10 $ 4.62 $ 6.13
9.0% $ 1.20 $ 2.64 $ 4.09 $ 5.53
10.0% $ 0.82 $ 2.20 $ 3.58 $ 4.96
Average Per Share Valuation of Equity $ 3.37
--------
- -----------------------------------------
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC
(2) Less total capital liab. (net of cash) of $54,248 (4) Based on 6.8 million shares outstanding.
</TABLE>
27
<PAGE> 46
<TABLE>
<CAPTION>
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 2.5% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
(Numbers in Thousands)
(Fiscal Year Ended February)
2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 14,011 $ 14,343 $ 14,683 $ 15,031 $ 15,388
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,511 4,321 4,219 4,133 4,026
-------- -------- -------- -------- --------
Pre-tax income 2,232 2,754 3,195 3,630 4,094
Provision for income taxes 848 1,046 1,214 1,380 1,556
-------- -------- -------- -------- --------
Net income 1,384 1,707 1,981 2,251 2,539
======== ======== ======== ======== ========
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,797 2,679 2,616 2,562 2,496
Less: Net additions to working capital (1) (971) (995) (1,020) (1,045) (1,072)
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
-------- -------- -------- -------- --------
Operating cash flow $ 3,210 $ 3,391 $ 3,577 $ 3,768 $ 3,963
======== ======== ======== ======== ========
Cash flow growth 5.6% 5.5% 5.3% 5.2%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $12,303 $22,776 $33,249 $43,722
9.0% 9,565 19,566 29,568 39,569
10.0% 6,969 16,524 26,079 35,634
Average Valuation of Equity $24,627
-------
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2) (4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $ 1.81 $ 3.34 $ 4.88 $ 6.42
9.0% $ 1.40 $ 2.87 $ 4.34 $ 5.81
10.0% $ 1.02 $ 2.43 $ 3.83 $ 5.23
Average Per Share Valuation of Equity $ 3.62
--------
- ------------------------------------------------
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $54,248 (4) Based on 6.8 million shares outstanding.
</TABLE>
28
<PAGE> 47
<TABLE>
<CAPTION>
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model ($1 MM Cost Savings, 2.5% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
(Numbers in Thousands)
(Fiscal Year Ended February)
2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 14,261 $ 14,593 $ 14,933 $ 15,281 $ 15,638
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,511 4,309 4,187 4,086 3,964
-------- -------- -------- -------- --------
Pre-tax income 2,482 3,016 3,478 3,927 4,406
Provision for income taxes 943 1,146 1,322 1,492 1,674
-------- -------- -------- -------- --------
Net income 1,539 1,870 2,156 2,435 2,732
======== ======== ======== ======== ========
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,797 2,671 2,596 2,533 2,458
Less: Net additions to working capital (1) (971) (995) (1,020) (1,045) (1,072)
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
-------- -------- -------- -------- --------
Operating cash flow $ 3,365 $ 3,546 $ 3,732 $ 3,923 $ 4,118
======== ======== ======== ======== ========
Cash flow growth 5.4% 5.2% 5.1% 5.0%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $13,773 $24,416 $35,059 $45,702
9.0% 10,980 21,144 31,308 41,472
10.0% 8,333 18,043 27,753 37,463
Average Valuation of Equity $26,287
-------
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2) (4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ---- ----- ----- ----- -----
<S> <C> <C> <C> <C>
8.0% $ 2.02 $ 3.59 $ 5.15 $ 6.71
9.0% $ 1.61 $ 3.10 $ 4.60 $ 6.09
10.0% $ 1.22 $ 2.65 $ 4.08 $ 5.50
Average Per Share Valuation of Equity $ 3.86
--------
- ---------------------------------------------
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $54,248 (4) Based on 6.8 million shares outstanding.
</TABLE>
29
<PAGE> 48
<TABLE>
<CAPTION>
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model (5.0% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
(Numbers in Thousands)
(Fiscal Year Ended February)
2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 13,585 $ 14,264 $ 14,977 $ 15,726 $ 16,513
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,526 4,432 4,455 4,451 4,416
-------- -------- -------- -------- --------
Pre-tax income 1,791 2,564 3,254 4,008 4,829
Provision for income taxes 681 974 1,237 1,523 1,835
-------- -------- -------- -------- --------
Net income 1,110 1,590 2,018 2,485 2,994
======== ======== ======== ======== ========
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,806 2,748 2,762 2,759 2,738
Less: Net additions to working capital (1) (1,942) (2,039) (2,141) (2,248) (2,360)
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
-------- -------- -------- -------- --------
Operating cash flow $ 1,975 $ 2,299 $ 2,639 $ 2,997 $ 3,372
======== ======== ======== ======== ========
Cash flow growth 16.4% 14.8% 13.5% 12.5%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $12,335 $23,573 $34,811 $46,049
9.0% 9,511 20,243 30,975 41,707
10.0% 6,836 17,089 27,342 37,595
Average Valuation of Equity $25,672
-------
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2) (4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- ------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
8.0% $ 1.81 $ 3.46 $ 5.11 $ 6.76
9.0% $ 1.40 $ 2.97 $ 4.55 $ 6.12
10.0% $ 1.00 $ 2.51 $ 4.01 $ 5.52
Average Per Share Valuation of Equity $ 3.77
--------
- ---------------------------------------------
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $54,248 (4) Based on 6.8 million shares outstanding.
</TABLE>
30
<PAGE> 49
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 5.0% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
2000 2001 2002 2003 2004
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
EBITDA $14,085 $14,764 $15,477 $16,226 $17,013
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,513 4,393 4,389 4,356 4,290
------- ------- ------- ------- -------
Pre-tax income 2,304 3,103 3,820 4,603 5,454
Provision for income taxes 875 1,179 1,452 1,749 2,073
------- ------- ------- ------- -------
Net income 1,428 1,924 2,369 2,854 3,382
======= ======= ======= ======= =======
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,798 2,724 2,721 2,700 2,660
Less: Net additions to working capital(1) (1,942) (2,039) (2,141) (2,248) (2,360)
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- ------- ------- -------
Operating cash flow $ 2,285 $ 2,609 $ 2,949 $ 3,307 $ 3,682
======= ======= ======= ======= =======
Cash flow growth 14.2% 13.0% 12.1% 11.3%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
-------- -------- -------- -------- ---------
<S> <C> <C> <C> <C>
8.0% $ 15,274 $ 26,853 $ 38,431 $ 50,009
9.0% 12,342 23,399 34,456 45,513
10.0% 9,563 20,126 30,690 41,253
Average Valuation of Equity $ 28,992
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2)(4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
-------- ------- ------ ------ ------
<S> <C> <C> <C> <C>
8.0% $ 2.24 $ 3.94 $ 5.64 $ 7.34
9.0% $ 1.81 $ 3.44 $ 5.06 $ 6.68
10.0% $ 1.40 $ 2.96 $ 4.51 $ 6.06
Average Per Share Valuation of Equity $ 4.26
------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $54,248 (4) Based on 6.8 million shares outstanding.
</TABLE>
31
<PAGE> 50
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 5.0% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
2000 2001 2002 2003 2004
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
EBITDA $14,335 $15,014 $15,727 $16,476 $17,263
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,511 4,379 4,356 4,309 4,228
------- ------- ------- ------- -------
Pre-tax income 2,556 3,367 4,103 4,900 5,766
Provision for income taxes 971 1,280 1,559 1,862 2,191
------- ------- ------- ------- -------
Net income 1,584 2,088 2,544 3,038 3,575
------- ------- ------- ------- -------
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,797 2,715 2,701 2,671 2,622
Less: Net additions to working capital (1) (1,942) (2,039) (2,141) (2,248) (2,360)
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- ------- ------- -------
Operating cash flow $ 2,440 $ 2,764 $ 3,104 $ 3,462 $ 3,837
======= ======= ======= ======= =======
Cash flow growth 13.3% 12.3% 11.5% 10.8%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C>
8.0% $ 16,744 $ 28,492 $ 40,241 $ 51,990
9.0% 13,757 24,977 36,196 47,416
10.0% 10,927 21,645 32,364 43,083
Average Valuation of Equity $ 30,653
--------
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2)(4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- -------- ------ ------ ------ ------
<S> <C> <C> <C> <C>
8.0% $ 2.46 $ 4.18 $ 5.91 $ 7.63
9.0% $ 2.02 $ 3.67 $ 5.32 $ 6.96
10.0% $ 1.60 $ 3.18 $ 4.75 $ 6.33
Average Per Share Valuation of Equity $ 4.50
------
</TABLE>
- ------------------------------------------------------------------------------
<TABLE>
<S> <C>
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $54,248 (4) Based on 6.8 million shares outstanding.
</TABLE>
32
<PAGE> 51
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model ($1 MM Cost Savings, 5.0% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 14,585 $ 15,264 $ 15,977 $ 16,726 $ 17,513
Depreciation and amortization 7,268 7,268 7,268 7,268 7,268
Interest expense 4,511 4,366 4,324 4,262 4,166
-------- -------- -------- -------- --------
Pre-tax income 2,806 3,630 4,385 5,196 6,078
Provision for income taxes 1,066 1,379 1,666 1,975 2,310
-------- -------- -------- -------- --------
Net income 1,739 2,251 2,719 3,222 3,768
======== ======== ======== ======== ========
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: After-tax interest expense 2,797 2,707 2,681 2,642 2,583
Less: Net additions to working capital (1) (1,942) (2,039) (2,141) (2,248) (2,360)
Less: Capital expenditures (7,268) (7,268) (7,268) (7,268) (7,268)
-------- -------- -------- -------- --------
Operating cash flow $ 2,595 $ 2,919 $ 3,259 $ 3,617 $ 3,992
======== ======== ======== ======== ========
Cash flow growth 12.5% 11.7% 11.0% 10.4%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- -------- --------- -------- -------- --------
<S> <C> <C> <C> <C>
8.0% $ 18,213 $ 30,132 $ 42,051 $ 53,970
9.0% 15,172 26,554 37,936 49,318
10.0% 12,290 23,164 34,038 44,912
Average Valuation of Equity $ 32,313
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2)(4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- -------- ------ ------ ------ ------
<S> <C> <C> <C> <C>
8.0% $ 2.67 $ 4.42 $ 6.17 $ 7.93
9.0% $ 2.23 $ 3.90 $ 5.57 $ 7.24
10.0% $ 1.80 $ 3.40 $ 5.00 $ 6.60
Average Per Share Valuation of Equity $ 4.74
------
- --------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $54,248 (4) Based on 6.8 million shares outstanding.
</TABLE>
33
<PAGE> 52
United Foods, Inc. -- Projection Model (0% Growth)
Projected Income Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
---------- -------- -------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $211,839 $211,839 $211,839 $211,839 $211,839
Cost of sales 172,486 172,486 172,486 172,486 172,486 172,486
--------- -------- -------- -------- -------- --------
Gross profit 39,353 39,353 39,353 39,353 39,353 39,353
General and administrative, net dep. 10,093 10,093 10,093 10,093 10,093 10,093
Direct selling expenses 16,322 16,322 16,322 16,322 16,322 16,322
--------- -------- -------- -------- -------- --------
Total operating expenses 26,415 26,415 26,415 26,415 26,415 26,415
EBITDA 12,938 12,938 12,938 12,938 12,938 12,938
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 5,670 5,670 5,670 5,670 5,670
Interest expense 4,179 4,511 4,304 4,186 4,110 4,031
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense -- -- -- -- -- --
Other (income) (4) -- -- -- -- --
--------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,511 4,304 4,186 4,110 4,031
Pre-tax income 1,495 1,159 1,366 1,484 1,560 1,639
Provision for income taxes 575 440 519 564 593 623
--------- -------- -------- -------- -------- --------
Net income $ 920 $ 718 $ 847 $ 920 $ 967 $ 1,016
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 53
United Foods, Inc. -- Projection Model (0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 1,281 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,771 18,771 18,771 18,771 18,771 18,771
Inventory 36,217 36,217 36,217 36,217 36,217 36,217
Prepaid expenses 3,508 3,508 3,508 3,508 3,508 3,508
Deferred income taxes 1,238 1,238 1,238 1,238 1,238 1,238
--------- --------- --------- --------- --------- ---------
Total current assets 63,457 61,015 59,834 59,834 59,834 59,834
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 804 804 804 804 804
Notes & accounts receivable 50 50 50 50 50 50
Deferred charges & other assets 723 723 723 723 723 723
--------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 124,678 $ 123,497 $ 123,497 $ 123,497 $ 123,497
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 54
United Foods, Inc. -- Projection Model (0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
---------- --------- --------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 10,850 10,850 10,850 10,850 10,850
Accrued liabilities 6,911 6,911 6,911 6,911 6,911 6,911
Income taxes payable 135 135 135 135 135 135
--------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 20,405 28,677 19,351 19,480 43,735
Long term debt
Revolver -- -- 481 10,341 10,829 11,397
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 57,971 54,811 52,783 51,862 50,895 49,879
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 52,302 42,002 50,407 49,311 24,040
Deferred income taxes 4,585 4,585 4,585 4,585 4,585 4,585
--------- --------- --------- --------- --------- ---------
Total liabilities 80,452 77,292 75,264 74,343 73,376 72,360
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 36,583 37,430 38,351 39,318 40,334
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 47,386 48,233 49,154 50,121 51,137
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $ 124,678 $ 123,497 $ 123,497 $ 123,497 $ 123,497
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 55
United Foods, Inc. -- Projection Model (0% Growth)
Projected Cash Flow Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Projected
2000 2001 2002 2003 2004
------- ------- -------- ------- ---------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 718 $ 847 $ 920 $ 967 $ 1,016
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 7,986 8,115 8,188 8,235 8,284
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,268) (7,268) (7,268) (7,268) (7,268)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (11,262) (2,422) (2,600)
Drawdown on revolver -- 481 10,341 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (3,160) (2,028) (920) (967) (1,016)
------- ------- -------- ------- -------
Net additions to cash $(2,442) $(1,181) $ (0) $ 0 $ -
======= ======= ======== ======= =======
Beginning cash balance 3,723 1,281 100 100 100
Ending cash balance 1,281 100 100 100 100
</TABLE>
<PAGE> 56
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 0% Growth)
Projected Income Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Historical Projected
1999 2000 2001 2002 2003 2004
--------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $211,839 $211,839 $211,839 $211,839 $211,839
Cost of sales 172,486 172,486 172,486 172,486 172,486 172,486
--------- -------- -------- -------- -------- --------
Gross profit 39,353 39,353 39,353 39,353 39,353 39,353
General and administrative, net dep 10,093 9,593 9,593 9,593 9,593 9,593
Direct selling expenses 16,322 16,322 16,322 16,322 16,322 16,322
--------- -------- -------- -------- -------- --------
Total operating expenses 26,415 25,915 25,915 25,915 25,915 25,915
EBITDA 12,938 13,438 13,438 13,438 13,438 13,438
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 6,170 6,170 6,170 6,170 6,170
Interest expense 4,179 4,511 4,285 4,127 4,017 3,908
Interest (income) - - - - - -
Minority interest expense (income) - - - - - -
Other expense - - - - - -
Other (income) (4) - - - - -
--------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,511 4,285 4,127 4,017 3,908
Pre-tax income 1,495 1,659 1,885 2,043 2,153 2,262
Provision for income taxes 575 630 716 776 818 860
--------- -------- -------- -------- -------- --------
Net income $ 920 $ 1,028 $ 1,169 $ 1,266 $ 1,335 $ 1,403
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 57
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
---------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 1,591 $ 251 $ 100 $ 100 $ 100
Accounts receivable 18,771 18,771 18,771 18,771 18,771 18,771
Inventory 36,217 36,217 36,217 36,217 36,217 36,217
Prepaid expenses 3,508 3,508 3,508 3,508 3,508 3,508
Deferred income taxes 1,238 1,238 1,238 1,238 1,238 1,238
--------- -------- -------- -------- -------- --------
Total current assets 63,457 61,325 59,985 59,834 59,834 59,834
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- -------- -------- -------- -------- --------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 804 804 804 804 804
Notes & accounts receivable 50 50 50 50 50 50
Deferred charges & other assets 723 723 723 723 723 723
--------- -------- -------- -------- -------- --------
Total assets $ 127,120 $124,988 $123,648 $123,497 $123,497 $123,497
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 58
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 10,850 10,850 10,850 10,850 10,850
Accrued liabilities 6,911 6,911 6,911 6,911 6,911 6,911
Income taxes payable 135 135 135 135 135 135
--------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 20,405 28,677 19,351 19,480 43,735
Long term debt
Revolver - - - 9,363 9,484 9,665
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit - - - - - -
--------- --------- --------- --------- --------- ---------
Total debt 57,971 54,811 52,302 50,884 49,550 48,147
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 52,302 41,521 49,429 47,966 22,308
Deferred income taxes 4,585 4,585 4,585 4,585 4,585 4,585
--------- --------- --------- --------- --------- ---------
Total liabilities 80,452 77,292 74,783 73,365 72,031 70,628
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 36,893 38,062 39,329 40,663 42,066
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 47,696 48,865 50,132 51,466 52,869
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $ 124,988 $ 123,648 $ 123,497 $ 123,497 $ 123,497
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 59
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 0% Growth)
Projected Cash Flow Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Projected
2000 2001 2002 2003 2004
------- ------- --------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,028 $ 1,169 $ 1,266 $ 1,335 $ 1,403
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 8,296 8,437 8,534 8,603 8,671
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,268) (7,268) (7,268) (7,268) (7,268)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (10,781) (2,790) (2,987)
Drawdown on revolver - - 9,363 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (3,160) (2,509) (1,418) (1,335) (1,403)
------- ------- -------- ------- -------
Net additions to cash $(2,132) $(1,340) $ (151) $ - $ -
======= ======= ======== ======= =======
Beginning cash balance 3,723 1,591 251 100 100
Ending cash balance 1,591 251 100 100 100
</TABLE>
<PAGE> 60
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 0% Growth)
Projected Income Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Historical Projected
1999 2000 2001 2002 2003 2004
---------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $211,839 $211,839 $211,839 $211,839 $211,839
Cost of sales 172,486 172,486 172,486 172,486 172,486 172,486
--------- -------- -------- -------- -------- --------
Gross profit 39,353 39,353 39,353 39,353 39,353 39,353
General and administrative, net dep. 10,093 9,343 9,343 9,343 9,343 9,343
Direct selling expenses 16,322 16,322 16,322 16,322 16,322 16,322
--------- -------- -------- -------- -------- --------
Total operating expenses 26,415 25,665 25,665 25,665 25,665 25,665
EBITDA 12,938 13,688 13,688 13,688 13,688 13,688
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 6,420 6,420 6,420 6,420 6,420
Interest expense 4,179 4,511 4,285 4,108 3,972 3,847
Interest (income) - - - - - -
Minority interest expense (income) - - - - - -
Other expense - - - - - -
Other (income) (4) - - - - -
--------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,511 4,285 4,108 3,972 3,847
Pre-tax income 1,495 1,909 2,135 2,312 2,448 2,573
Provision for income taxes 575 725 811 878 930 978
--------- -------- -------- -------- -------- --------
Net income $ 920 $ 1,183 $ 1,324 $ 1,433 $ 1,518 $ 1,595
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 61
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 0% Growth)
Projected Balance Sheets
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
Historical Projected
1999 2000 2001 2002 2003 2004
---------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 1,746 $ 561 $ 100 $ 100 $ 100
Accounts receivable 18,771 18,771 18,771 18,771 18,771 18,771
Inventory 36,217 36,217 36,217 36,217 36,217 36,217
Prepaid expenses 3,508 3,508 3,508 3,508 3,508 3,508
Deferred income taxes 1,238 1,238 1,238 1,238 1,238 1,238
--------- -------- -------- -------- -------- --------
Total current assets 63,457 61,480 60,295 59,834 59,834 59,834
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip. 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- -------- -------- -------- -------- --------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 804 804 804 804 804
Notes & accounts receivable 50 50 50 50 50 50
Deferred charges & other assets 723 723 723 723 723 723
--------- -------- -------- -------- -------- --------
Total assets $ 127,120 $125,143 $123,958 $123,497 $123,497 $123,497
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 62
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 0% Growth)
Projected Balance Sheets
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
Historical Projected
1999 2000 2001 2002 2003 2004
---------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 10,850 10,850 10,850 10,850 10,850
Accrued liabilities 6,911 6,911 6,911 6,911 6,911 6,911
Income taxes payable 135 135 135 135 135 135
--------- -------- -------- -------- -------- --------
Total current liabilities 21,056 20,405 28,677 19,351 19,480 43,735
Long term debt
Revolver - - - 8,886 8,824 8,813
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit - - - - - -
--------- -------- -------- -------- -------- --------
Total debt 57,971 54,811 52,302 50,407 48,890 47,295
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- -------- -------- -------- -------- --------
Total long-term debt 54,811 52,302 41,521 48,952 47,306 21,456
Deferred income taxes 4,585 4,585 4,585 4,585 4,585 4,585
--------- -------- -------- -------- -------- --------
Total liabilities 80,452 77,292 74,783 72,888 71,371 69,776
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 37,048 38,372 39,806 41,323 42,918
--------- -------- -------- -------- -------- --------
Total stockholders' equity 46,668 47,851 49,175 50,609 52,126 53,721
--------- -------- -------- -------- -------- --------
Total liabilities & equity $ 127,120 $125,143 $123,958 $123,497 $123,497 $123,497
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 63
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 0% Growth)
Projected Cash Flow Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Projected
2000 2001 2002 2003 2004
------- ------- --------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,183 $ 1,324 $ 1,433 $ 1,518 $ 1,595
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 8,451 8,592 8,701 8,786 8,863
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,268) (7,268) (7,268) (7,268) (7,268)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (10,781) (2,973) (3,179)
Drawdown on revolver - - 8,886 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (3,160) (2,509) (1,895) (1,518) (1,595)
------- ------- -------- ------- -------
Net additions to cash $(1,977) $(1,185) $ (461) $ - $ -
======= ======= ======== ======= =======
Beginning cash balance 3,723 1,746 561 100 100
Ending cash balance 1,746 561 100 100 100
</TABLE>
<PAGE> 64
UNITED FOODS, INC. -- Projection Model ($1 MM Cost Savings, 0% Growth)
Projected Income Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Historical Projected
1999 2000 2001 2002 2003 2004
---------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $211,839 $211,839 $211,839 $211,839 $211,839
Cost of sales 172,486 172,486 172,486 172,486 172,486 172,486
--------- -------- -------- -------- -------- --------
Gross profit 39,353 39,353 39,353 39,353 39,353 39,353
General and administrative, net dep. 10,093 9,093 9,093 9,093 9,093 9,093
Direct selling expenses 16,322 16,322 16,322 16,322 16,322 16,322
--------- -------- -------- -------- -------- --------
Total operating expenses 26,415 25,415 25,415 25,415 25,415 25,415
EBITDA 12,938 13,938 13,938 13,938 13,938 13,938
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 6,670 6,670 6,670 6,670 6,670
Interest expense 4,179 4,511 4,285 4,089 3,926 3,787
Interest (income) - - - - - -
Minority interest expense (income) - - - - - -
Other expense - - - - - -
Other (income) (4) - - - - -
--------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,511 4,285 4,089 3,926 3,787
Pre-tax income 1,495 2,159 2,385 2,581 2,744 2,883
Provision for income taxes 575 820 906 981 1,043 1,096
--------- -------- -------- -------- -------- --------
Net income $ 920 $ 1,338 $ 1,479 $ 1,600 $ 1,701 $ 1,788
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 65
UNITED FOODS, INC. -- Projection Model ($1 MM Cost Savings, 0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 1,901 $ 871 $ 100 $ 100 $ 100
Accounts receivable 18,771 18,771 18,771 18,771 18,771 18,771
Inventory 36,217 36,217 36,217 36,217 36,217 36,217
Prepaid expenses 3,508 3,508 3,508 3,508 3,508 3,508
Deferred income taxes 1,238 1,238 1,238 1,238 1,238 1,238
--------- --------- --------- --------- --------- ---------
Total current assets 63,457 61,635 60,605 59,834 59,834 59,834
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip. 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 804 804 804 804 804
Notes & accounts receivable 50 50 50 50 50 50
Deferred charges & other assets 723 723 723 723 723 723
--------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 125,298 $ 124,268 $ 123,497 $ 123,497 $ 123,497
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 66
UNITED FOODS, INC. -- Projection Model ($1 MM Cost Savings, 0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
---------- --------- --------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 10,850 10,850 10,850 10,850 10,850
Accrued liabilities 6,911 6,911 6,911 6,911 6,911 6,911
Income taxes payable 135 135 135 135 135 135
--------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 20,405 28,677 19,351 19,480 43,735
Long term debt
Revolver - - - 8,410 8,164 7,960
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit - - - - - -
--------- --------- --------- --------- --------- ---------
Total debt 57,971 54,811 52,302 49,931 48,230 46,442
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 52,302 41,521 48,476 46,646 20,603
Deferred income taxes 4,585 4,585 4,585 4,585 4,585 4,585
--------- --------- --------- --------- --------- ---------
Total liabilities 80,452 77,292 74,783 72,412 70,711 68,923
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 37,203 38,682 40,282 41,983 43,771
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 48,006 49,485 51,085 52,786 54,574
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $ 125,298 $ 124,268 $ 123,497 $ 123,497 $ 123,497
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 67
UNITED FOODS, INC. -- Projection Model ($1 MM Cost Savings, 0% Growth)
Projected Cash Flow Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Projected
2000 2001 2002 2003 2004
------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,338 $ 1,479 $ 1,600 $ 1,701 $ 1,788
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 8,606 8,747 8,868 8,969 9,056
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,268) (7,268) (7,268) (7,268) (7,268)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (10,781) (3,156) (3,372)
Drawdown on revolver - - 8,410 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (3,160) (2,509) (2,371) (1,701) (1,788)
------- ------- -------- ------- -------
Net additions to cash $(1,822) $(1,030) $ (771) $ - $ -
======= ======= ======== ======= =======
Beginning cash balance 3,723 1,901 871 100 100
Ending cash balance 1,901 871 100 100 100
</TABLE>
<PAGE> 68
UNITED FOODS, INC. -- Projection Model (2.5% Growth)
Projected Income Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Historical Projected
1999 2000 2001 2002 2003 2004
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $217,135 $222,563 $228,127 $233,831 $239,676
Cost of sales 172,486 176,798 181,218 185,749 190,392 195,152
--------- -------- -------- -------- -------- --------
Gross profit 39,353 40,337 41,345 42,379 43,438 44,524
General and administrative, net dep 10,093 10,345 10,604 10,869 11,141 11,419
Direct selling expenses 16,322 16,730 17,148 17,577 18,016 18,467
--------- -------- -------- -------- -------- --------
Total operating expenses 26,415 27,075 27,752 28,446 29,157 29,886
EBITDA 12,938 13,261 13,593 13,933 14,281 14,638
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 5,993 6,325 6,665 7,013 7,370
Interest expense 4,179 4,511 4,359 4,317 4,273 4,211
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense -- -- -- -- -- --
Other (income) (4) -- -- -- -- --
--------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,511 4,359 4,317 4,273 4,211
Pre-tax income 1,495 1,482 1,965 2,348 2,740 3,159
Provision for income taxes 575 563 747 892 1,041 1,200
--------- -------- -------- -------- -------- --------
Net income $ 920 $ 919 $ 1,219 $ 1,456 $ 1,699 $ 1,958
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 69
UNITED FOODS, INC. -- Projection Model (2.5% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 511 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,771 19,240 19,721 20,214 20,720 21,238
Inventory 36,217 37,122 38,050 39,002 39,977 40,976
Prepaid expenses 3,508 3,596 3,686 3,778 3,872 3,969
Deferred income taxes 1,238 1,269 1,301 1,333 1,367 1,401
--------- --------- --------- --------- --------- ---------
Total current assets 63,457 61,739 62,858 64,427 66,035 67,684
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 824 845 866 887 910
Notes & accounts receivable 50 51 53 54 55 57
Deferred charges & other assets 723 741 760 779 798 818
--------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 125,441 $ 126,601 $ 128,211 $ 129,862 $ 131,554
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 70
UNITED FOODS, INC. -- Projection Model (2.5% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 11,121 11,399 11,684 11,976 12,276
Accrued liabilities 6,911 7,084 7,261 7,442 7,628 7,819
Income taxes payable 135 138 142 145 149 153
--------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 20,852 29,583 20,727 21,338 46,087
Long term debt
Revolver - - 1,874 12,219 13,021 13,718
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit - - - - - -
--------- --------- --------- --------- --------- ---------
Total debt 57,971 54,811 54,176 53,740 53,087 52,200
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 52,302 43,395 52,285 51,503 26,361
Deferred income taxes 4,585 4,700 4,817 4,938 5,061 5,188
--------- --------- --------- --------- --------- ---------
Total liabilities 80,452 77,854 77,795 77,950 77,902 77,635
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 36,784 38,003 39,458 41,157 43,116
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 47,587 48,806 50,261 51,960 53,919
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $ 125,441 $ 126,601 $ 128,211 $ 129,862 $ 131,554
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 71
UNITED FOODS, INC. -- Projection Model (2.5% Growth)
Projected Cash Flow Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Projected
2000 2001 2002 2003 2004
------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 919 $ 1,219 $ 1,456 $ 1,699 $ 1,958
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 7,141 7,415 7,625 7,840 8,072
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,193) (7,191) (7,189) (7,187) (7,185)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (11,217) (2,108) (2,471)
Drawdown on revolver -- 1,874 10,781 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (3,160) (635) (436) (653) (887)
------- ------- -------- ------- -------
Net additions to cash $(3,212) $ (411) $ -- $ -- $ --
======= ======= ======== ======= =======
Beginning cash balance 3,723 511 100 100 100
Ending cash balance 511 100 100 100 100
</TABLE>
<PAGE> 72
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 2.5% Growth)
Projected Income Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $211,839 $217,135 $222,563 $228,127 $233,831 $239,676
Cost of sales 172,486 176,798 181,218 185,749 190,392 195,152
-------- -------- -------- -------- -------- --------
Gross profit 39,353 40,337 41,345 42,379 43,438 44,524
General and administrative, net dep. 10,093 9,845 10,104 10,369 10,641 10,919
Direct selling expenses 16,322 16,730 17,148 17,577 18,016 18,467
-------- -------- -------- -------- -------- --------
Total operating expenses 26,415 26,575 27,252 27,946 28,657 29,386
EBITDA 12,938 13,761 14,093 14,433 14,781 15,138
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
-------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 6,493 6,825 7,165 7,513 7,870
Interest expense 4,179 4,511 4,334 4,252 4,179 4,088
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense -- -- -- -- -- --
Other (income) (4) -- -- -- -- --
-------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,511 4,334 4,252 4,179 4,088
Pre-tax income 1,495 1,982 2,491 2,913 3,334 3,782
Provision for income taxes 575 753 947 1,107 1,267 1,437
-------- -------- -------- -------- -------- --------
Net income $ 920 $ 1,229 $ 1,544 $ 1,806 $ 2,067 $ 2,345
======== ======== ======== ======== ======== ========
</TABLE>
<PAGE> 73
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 2.5% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 821 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,771 19,240 19,721 20,214 20,720 21,238
Inventory 36,217 37,122 38,050 39,002 39,977 40,976
Prepaid expenses 3,508 3,596 3,686 3,778 3,872 3,969
Deferred income taxes 1,238 1,269 1,301 1,333 1,367 1,401
--------- --------- --------- --------- --------- ---------
Total current assets 63,457 62,049 62,858 64,427 66,035 67,684
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip. 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 824 845 866 887 910
Notes & accounts receivable 50 51 53 54 55 57
Deferred charges & other assets 723 741 760 779 798 818
--------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 125,751 $ 126,601 $ 128,211 $ 129,862 $ 131,554
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 74
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 2.5% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 11,121 11,399 11,684 11,976 12,276
Accrued liabilities 6,911 7,084 7,261 7,442 7,628 7,819
Income taxes payable 135 138 142 145 149 153
--------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 20,852 29,583 20,727 21,338 46,087
Long term debt
Revolver -- -- 1,238 11,233 11,667 11,977
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 57,971 54,811 53,540 52,754 51,733 50,459
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 52,302 42,759 51,299 50,149 24,620
Deferred income taxes 4,585 4,700 4,817 4,938 5,061 5,188
--------- --------- --------- --------- --------- ---------
Total liabilities 80,452 77,854 77,160 76,964 76,548 75,894
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 37,094 38,638 40,444 42,511 44,856
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 47,897 49,441 51,247 53,314 55,659
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $ 125,751 $ 126,601 $ 128,211 $ 129,862 $ 131,554
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 75
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 2.5% Growth)
Projected Cash Flow Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Projected
2000 2001 2002 2003 2004
------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,229 $ 1,544 $ 1,806 $ 2,067 $ 2,345
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 7,451 7,740 7,975 8,208 8,459
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,193) (7,191) (7,189) (7,187) (7,185)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (11,567) (2,476) (2,858)
Drawdown on revolver -- 1,238 10,781 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (3,160) (1,271) (786) (1,021) (1,274)
------- ------- -------- ------- -------
Net additions to cash $(2,902) $ (721) $ -- $ -- $ --
======= ======= ======== ======= =======
Beginning cash balance 3,723 821 100 100 100
Ending cash balance 821 100 100 100 100
</TABLE>
<PAGE> 76
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 2.5% Growth)
Projected Income Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $217,135 $222,563 $228,127 $233,831 $239,676
Cost of sales 172,486 176,798 181,218 185,749 190,392 195,152
--------- -------- -------- -------- -------- --------
Gross profit 39,353 40,337 41,345 42,379 43,438 44,524
General and administrative, net dep. 10,093 9,595 9,854 10,119 10,391 10,669
Direct selling expenses 16,322 16,730 17,148 17,577 18,016 18,467
--------- -------- -------- -------- -------- --------
Total operating expenses 26,415 26,325 27,002 27,696 28,407 29,136
EBITDA 12,938 14,011 14,343 14,683 15,031 15,388
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 6,743 7,075 7,415 7,763 8,120
Interest expense 4,179 4,511 4,321 4,219 4,133 4,026
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense -- -- -- -- -- --
Other (income) (4) -- -- -- -- --
--------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,511 4,321 4,219 4,133 4,026
Pre-tax income 1,495 2,232 2,754 3,195 3,630 4,094
Provision for income taxes 575 848 1,046 1,214 1,380 1,556
--------- -------- -------- -------- -------- --------
Net income $ 920 $ 1,384 $ 1,707 $ 1,981 $ 2,251 $ 2,539
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 77
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 2.5% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 976 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,771 19,240 19,721 20,214 20,720 21,238
Inventory 36,217 37,122 38,050 39,002 39,977 40,976
Prepaid expenses 3,508 3,596 3,686 3,778 3,872 3,969
Deferred income taxes 1,238 1,269 1,301 1,333 1,367 1,401
--------- --------- --------- --------- --------- ---------
Total current assets 63,457 62,204 62,858 64,427 66,035 67,684
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip. 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 824 845 866 887 910
Notes & accounts receivable 50 51 53 54 55 57
Deferred charges & other assets 723 741 760 779 798 818
--------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 125,906 $ 126,601 $ 128,211 $ 129,862 $ 131,554
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 78
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 2.5% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 11,121 11,399 11,684 11,976 12,276
Accrued liabilities 6,911 7,084 7,261 7,442 7,628 7,819
Income taxes payable 135 138 142 145 149 153
--------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 20,852 29,583 20,727 21,338 46,087
Long term debt
Revolver -- -- 921 10,740 10,990 11,107
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 57,971 54,811 53,223 52,261 51,056 49,589
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 52,302 42,442 50,806 49,472 23,750
Deferred income taxes 4,585 4,700 4,817 4,938 5,061 5,188
--------- --------- --------- --------- --------- ---------
Total liabilities 80,452 77,854 76,842 76,471 75,871 75,024
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 37,249 38,956 40,937 43,188 45,727
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 48,052 49,759 51,740 53,991 56,530
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $ 125,906 $ 126,601 $ 128,211 $ 129,862 $ 131,554
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 79
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 2.5% Growth)
Projected Cash Flow Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Projected
2000 2001 2002 2003 2004
------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,384 $ 1,707 $ 1,981 $ 2,251 $ 2,539
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 7,606 7,903 8,150 8,393 8,652
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,193) (7,191) (7,189) (7,187) (7,185)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (11,702) (2,660) (3,051)
Drawdown on revolver -- 921 10,740 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (3,160) (1,588) (961) (1,205) (1,467)
------- ------- -------- ------- -------
Net additions to cash $(2,747) $ (876) $ -- $ -- $ --
======= ======= ======== ======= =======
Beginning cash balance 3,723 976 100 100 100
Ending cash balance 976 100 100 100 100
</TABLE>
<PAGE> 80
UNITED FOODS, INC. -- Projection Model ($1 Mm Cost Savings, 2.5% Growth)
Projected Income Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $217,135 $222,563 $228,127 $233,831 $239,676
Cost of sales 172,486 176,798 181,218 185,749 190,392 195,152
--------- -------- -------- -------- -------- --------
Gross profit 39,353 40,337 41,345 42,379 43,438 44,524
General and administrative, net dep 10,093 9,345 9,604 9,869 10,141 10,419
Direct selling expenses 16,322 16,730 17,148 17,577 18,016 18,467
--------- -------- -------- -------- -------- --------
Total operating expenses 26,415 26,075 26,752 27,446 28,157 28,886
EBITDA 12,938 14,261 14,593 14,933 15,281 15,638
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 6,993 7,325 7,665 8,013 8,370
Interest expense 4,179 4,511 4,309 4,187 4,086 3,964
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense -- -- -- -- -- --
Other (income) (4) -- -- -- -- --
--------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,511 4,309 4,187 4,086 3,964
Pre-tax income 1,495 2,482 3,016 3,478 3,927 4,406
Provision for income taxes 575 943 1,146 1,322 1,492 1,674
--------- -------- -------- -------- -------- --------
Net income $ 920 $ 1,539 $ 1,870 $ 2,156 $ 2,435 $ 2,732
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 81
UNITED FOODS, INC. -- Projection Model ($1 Mm Cost Savings, 2.5% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 1,131 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,771 19,240 19,721 20,214 20,720 21,238
Inventory 36,217 37,122 38,050 39,002 39,977 40,976
Prepaid expenses 3,508 3,596 3,686 3,778 3,872 3,969
Deferred income taxes 1,238 1,269 1,301 1,333 1,367 1,401
--------- --------- --------- --------- --------- ---------
Total current assets 63,457 62,359 62,858 64,427 66,035 67,684
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 824 845 866 887 910
Notes & accounts receivable 50 51 53 54 55 57
Deferred charges & other assets 723 741 760 779 798 818
--------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 126,061 $ 126,601 $ 128,211 $ 129,862 $ 131,554
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 82
UNITED FOODS, INC. -- Projection Model ($1 Mm Cost Savings, 2.5% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 11,121 11,399 11,684 11,976 12,276
Accrued liabilities 6,911 7,084 7,261 7,442 7,628 7,819
Income taxes payable 135 138 142 145 149 153
--------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 20,852 29,583 20,727 21,338 46,087
Long term debt
Revolver -- -- 603 10,247 10,313 10,236
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 57,971 54,811 52,905 51,768 50,379 48,718
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 52,302 42,124 50,313 48,795 22,879
Deferred income taxes 4,585 4,700 4,817 4,938 5,061 5,188
--------- --------- --------- --------- --------- ---------
Total liabilities 80,452 77,854 76,524 75,978 75,194 74,154
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 37,404 39,274 41,430 43,865 46,597
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 48,207 50,077 52,233 54,668 57,400
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $ 126,061 $ 126,601 $ 128,211 $ 129,862 $ 131,554
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 83
UNITED FOODS, INC. -- Projection Model ($1 Mm Cost Savings, 2.5% Growth)
Projected Cash Flow Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Projected
2000 2001 2002 2003 2004
------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,539 $ 1,870 $ 2,156 $ 2,435 $ 2,732
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 7,761 8,066 8,325 8,577 8,845
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,193) (7,191) (7,189) (7,187) (7,185)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (11,384) (2,845) (3,244)
Drawdown on revolver -- 603 10,247 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (3,160) (1,906) (1,136) (1,390) (1,660)
------- ------- -------- ------- -------
Net additions to cash $(2,592) $(1,031) $ -- $ -- $ --
======= ======= ======== ======= =======
Beginning cash balance 3,723 1,131 100 100 100
Ending cash balance 1,131 100 100 100 100
</TABLE>
<PAGE> 84
UNITED FOODS, INC. -- Projection Model (5.0% Growth)
Projected Income Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $222,431 $233,552 $245,230 $257,492 $270,366
Cost of sales 172,486 181,110 190,166 199,674 209,658 220,141
--------- -------- -------- -------- -------- --------
Gross profit 39,353 41,321 43,387 45,556 47,834 50,226
General and administrative, net dep. 10,093 10,598 11,128 11,684 12,268 12,882
Direct selling expenses 16,322 17,138 17,995 18,895 19,839 20,831
--------- -------- -------- -------- -------- --------
Total operating expenses 26,415 27,736 29,123 30,579 32,108 33,713
EBITDA 12,938 13,585 14,264 14,977 15,726 16,513
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 6,317 6,996 7,709 8,458 9,245
Interest expense 4,179 4,526 4,432 4,455 4,451 4,416
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense -- -- -- -- -- --
Other (income) (4) -- -- -- -- --
--------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,526 4,432 4,455 4,451 4,416
Pre-tax income 1,495 1,791 2,564 3,254 4,008 4,829
Provision for income taxes 575 681 974 1,237 1,523 1,835
--------- -------- -------- -------- -------- --------
Net income $ 920 $ 1,110 $ 1,590 $ 2,018 $ 2,485 $ 2,994
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 85
UNITED FOODS, INC. -- Projection Model (5.0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 100 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,771 19,710 20,695 21,730 22,816 23,957
Inventory 36,217 38,028 39,929 41,926 44,022 46,223
Prepaid expenses 3,508 3,683 3,868 4,061 4,264 4,477
Deferred income taxes 1,238 1,300 1,365 1,433 1,505 1,580
--------- --------- --------- --------- --------- ---------
Total current assets 63,457 62,821 65,957 69,250 72,707 76,337
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip. 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 844 886 931 977 1,026
Notes & accounts receivable 50 53 55 58 61 64
Deferred charges & other assets 723 759 797 837 879 923
--------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 126,563 $ 129,781 $ 133,161 $ 136,710 $ 140,436
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 86
UNITED FOODS, INC. -- Projection Model (5.0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 11,393 11,962 12,560 13,188 13,848
Accrued liabilities 6,911 7,257 7,619 8,000 8,400 8,820
Income taxes payable 135 142 149 156 164 172
--------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 21,300 30,511 22,172 23,337 48,679
Long term debt
Revolver -- 368 3,326 14,230 15,448 16,398
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 57,971 55,179 55,628 55,751 55,514 54,880
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 52,670 44,847 54,296 53,930 29,041
Deferred income taxes 4,585 4,814 5,055 5,308 5,573 5,852
--------- --------- --------- --------- --------- ---------
Total liabilities 80,452 78,784 80,413 81,776 82,840 83,572
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 36,975 38,565 40,583 43,067 46,061
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 47,778 49,368 51,386 53,870 56,864
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $ 126,563 $ 129,781 $ 133,161 $ 136,710 $ 140,436
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 87
UNITED FOODS, INC. -- Projection Model (5.0% Growth)
Projected Cash Flow Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Projected
2000 2001 2002 2003 2004
------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,110 $ 1,590 $ 2,018 $ 2,485 $ 2,994
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 6,286 6,661 6,979 7,331 7,719
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,118) (7,110) (7,102) (7,094) (7,085)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (10,781) (1,692) (2,218)
Drawdown on revolver 368 2,958 10,904 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (2,792) 449 123 (237) (634)
------- ------- -------- ------- -------
Net additions to cash $(3,623) $ -- $ (0) $ 0 $ --
======= ======= ======== ======= =======
Beginning cash balance 3,723 100 100 100 100
Ending cash balance 100 100 100 100 100
</TABLE>
<PAGE> 88
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 5.0% Growth)
Projected Income Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $222,431 $233,552 $245,230 $257,492 $270,366
Cost of sales 172,486 181,110 190,166 199,674 209,658 220,141
--------- -------- -------- -------- -------- --------
Gross profit 39,353 41,321 43,387 45,556 47,834 50,226
General and administrative, net dep. 10,093 10,098 10,628 11,184 11,768 12,382
Direct selling expenses 16,322 17,138 17,995 18,895 19,839 20,831
--------- -------- -------- -------- -------- --------
Total operating expenses 26,415 27,236 28,623 30,079 31,608 33,213
EBITDA 12,938 14,085 14,764 15,477 16,226 17,013
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 6,817 7,496 8,209 8,958 9,745
Interest expense 4,179 4,513 4,393 4,389 4,356 4,290
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense -- -- -- -- -- --
Other (income) (4) -- -- -- -- --
--------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,513 4,393 4,389 4,356 4,290
Pre-tax income 1,495 2,304 3,103 3,820 4,603 5,454
Provision for income taxes 575 875 1,179 1,452 1,749 2,073
--------- -------- -------- -------- -------- --------
Net income $ 920 $ 1,428 $ 1,924 $ 2,369 $ 2,854 $ 3,382
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 89
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 5.0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 100 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,771 19,710 20,695 21,730 22,816 23,957
Inventory 36,217 38,028 39,929 41,926 44,022 46,223
Prepaid expenses 3,508 3,683 3,868 4,061 4,264 4,477
Deferred income taxes 1,238 1,300 1,365 1,433 1,505 1,580
--------- --------- --------- --------- --------- ---------
Total current assets 63,457 62,821 65,957 69,250 72,707 76,337
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip. 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 844 886 931 977 1,026
Notes & accounts receivable 50 53 55 58 61 64
Deferred charges & other assets 723 759 797 837 879 923
--------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 126,563 $ 129,781 $ 133,161 $ 136,710 $ 140,436
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 90
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 5.0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 11,393 11,962 12,560 13,188 13,848
Accrued liabilities 6,911 7,257 7,619 8,000 8,400 8,820
Income taxes payable 135 142 149 156 164 172
--------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 21,300 30,511 22,172 23,337 48,679
Long term debt
Revolver -- 50 2,674 13,227 14,076 14,638
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 57,971 54,861 54,976 54,748 54,142 53,120
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 52,352 44,195 53,293 52,558 27,281
Deferred income taxes 4,585 4,814 5,055 5,308 5,573 5,852
--------- --------- --------- --------- --------- ---------
Total liabilities 80,452 78,466 79,761 80,773 81,468 81,812
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 37,293 39,217 41,586 44,439 47,821
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 48,096 50,020 52,389 55,242 58,624
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $ 126,563 $ 129,781 $ 133,161 $ 136,710 $ 140,436
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 91
UNITED FOODS, INC. -- Projection Model ($500,000 Cost Savings, 5.0% Growth)
Projected Cash Flow Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Projected
2000 2001 2002 2003 2004
------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,428 $ 1,924 $ 2,369 $ 2,854 $ 3,382
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 6,604 6,995 7,330 7,700 8,107
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,118) (7,110) (7,102) (7,094) (7,085)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (11,009) (2,061) (2,606)
Drawdown on revolver 50 2,624 10,781 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (3,110) 115 (228) (606) (1,022)
------- ------- -------- ------- -------
Net additions to cash $(3,623) $ -- $ 0 $ (0) $ --
======= ======= ======== ======= =======
Beginning cash balance 3,723 100 100 100 100
Ending cash balance 100 100 100 100 100
</TABLE>
<PAGE> 92
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 5.0% Growth)
Projected Income Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $222,431 $233,552 $245,230 $257,492 $270,366
Cost of sales 172,486 181,110 190,166 199,674 209,658 220,141
--------- -------- -------- -------- -------- --------
Gross profit 39,353 41,321 43,387 45,556 47,834 50,226
General and administrative, net dep. 10,093 9,848 10,378 10,934 11,518 12,132
Direct selling expenses 16,322 17,138 17,995 18,895 19,839 20,831
--------- -------- -------- -------- -------- --------
Total operating expenses 26,415 26,986 28,373 29,829 31,358 32,963
EBITDA 12,938 14,335 15,014 15,727 16,476 17,263
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 7,067 7,746 8,459 9,208 9,995
Interest expense 4,179 4,511 4,379 4,356 4,309 4,228
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense -- -- -- -- -- --
Other (income) (4) -- -- -- -- --
--------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,511 4,379 4,356 4,309 4,228
Pre-tax income 1,495 2,556 3,367 4,103 4,900 5,766
Provision for income taxes 575 971 1,280 1,559 1,862 2,191
--------- -------- -------- -------- -------- --------
Net income $ 920 $ 1,584 $ 2,088 $ 2,544 $ 3,038 $ 3,575
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 93
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 5.0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 206 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,771 19,710 20,695 21,730 22,816 23,957
Inventory 36,217 38,028 39,929 41,926 44,022 46,223
Prepaid expenses 3,508 3,683 3,868 4,061 4,264 4,477
Deferred income taxes 1,238 1,300 1,365 1,433 1,505 1,580
--------- --------- --------- --------- --------- ---------
Total current assets 63,457 62,927 65,957 69,250 72,707 76,337
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip. 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 844 886 931 977 1,026
Notes & accounts receivable 50 53 55 58 61 64
Deferred charges & other assets 723 759 797 837 879 923
--------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 126,669 $ 129,781 $ 133,161 $ 136,710 $ 140,436
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 94
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 5.0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 11,393 11,962 12,560 13,188 13,848
Accrued liabilities 6,911 7,257 7,619 8,000 8,400 8,820
Income taxes payable 135 142 149 156 164 172
--------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 21,300 30,511 22,172 23,337 48,679
Long term debt
Revolver -- -- 2,354 12,731 13,396 13,765
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 57,971 54,811 54,656 54,252 53,462 52,247
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 52,302 43,875 52,797 51,878 26,408
Deferred income taxes 4,585 4,814 5,055 5,308 5,573 5,852
--------- --------- --------- --------- --------- ---------
Total liabilities 80,452 78,416 79,441 80,277 80,788 80,939
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 37,449 39,537 42,081 45,119 48,694
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 48,252 50,340 52,884 55,922 59,497
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $ 126,669 $ 129,781 $ 133,161 $ 136,710 $ 140,436
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 95
UNITED FOODS, INC. -- Projection Model ($750,000 Cost Savings, 5.0% Growth)
Projected Cash Flow Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Projected
2000 2001 2002 2003 2004
------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,584 $ 2,088 $ 2,544 $ 3,038 $ 3,575
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 6,761 7,159 7,506 7,884 8,300
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,118) (7,110) (7,102) (7,094) (7,085)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (11,184) (2,245) (2,799)
Drawdown on revolver -- 2,354 10,781 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (3,160) (155) (403) (790) (1,215)
------- ------- -------- ------- -------
Net additions to cash $(3,517) $ (106) $ 0 $ (0) $ --
======= ======= ======== ======= =======
Beginning cash balance 3,723 206 100 100 100
Ending cash balance 206 100 100 100 100
</TABLE>
<PAGE> 96
UNITED FOODS, INC. -- Projection Model ($1 MM Cost Savings, 5.0% Growth)
Projected Income Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 211,839 $222,431 $233,552 $245,230 $257,492 $270,366
Cost of sales 172,486 181,110 190,166 199,674 209,658 220,141
--------- -------- -------- -------- -------- --------
Gross profit 39,353 41,321 43,387 45,556 47,834 50,226
General and administrative, net dep. 10,093 9,598 10,128 10,684 11,268 11,882
Direct selling expenses 16,322 17,138 17,995 18,895 19,839 20,831
--------- -------- -------- -------- -------- --------
Total operating expenses 26,415 26,736 28,123 29,579 31,108 32,713
EBITDA 12,938 14,585 15,264 15,977 16,726 17,513
Depreciation 7,268 7,268 7,268 7,268 7,268 7,268
--------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,268 7,268 7,268 7,268 7,268 7,268
Total operating income 5,670 7,317 7,996 8,709 9,458 10,245
Interest expense 4,179 4,511 4,366 4,324 4,262 4,166
Interest (income) -- -- -- -- -- --
Minority interest expense (income) -- -- -- -- -- --
Other expense -- -- -- -- -- --
Other (income) (4) -- -- -- -- --
--------- -------- -------- -------- -------- --------
Other expenses (income) 4,175 4,511 4,366 4,324 4,262 4,166
Pre-tax income 1,495 2,806 3,630 4,385 5,196 6,078
Provision for income taxes 575 1,066 1,379 1,666 1,975 2,310
--------- -------- -------- -------- -------- --------
Net income $ 920 $ 1,739 $ 2,251 $ 2,719 $ 3,222 $ 3,768
========= ======== ======== ======== ======== ========
</TABLE>
<PAGE> 97
UNITED FOODS, INC. -- Projection Model ($1 MM Cost Savings, 5.0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 3,723 $ 361 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,771 19,710 20,695 21,730 22,816 23,957
Inventory 36,217 38,028 39,929 41,926 44,022 46,223
Prepaid expenses 3,508 3,683 3,868 4,061 4,264 4,477
Deferred income taxes 1,238 1,300 1,365 1,433 1,505 1,580
--------- --------- --------- --------- --------- ---------
Total current assets 63,457 63,082 65,957 69,250 72,707 76,337
Land 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip. 130,878 138,146 145,414 152,682 159,950 167,218
Accumulated depreciation (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 62,086 62,086 62,086 62,086 62,086
Fixed assets held for disposal 804 844 886 931 977 1,026
Notes & accounts receivable 50 53 55 58 61 64
Deferred charges & other assets 723 759 797 837 879 923
--------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 126,824 $ 129,781 $ 133,161 $ 136,710 $ 140,436
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 98
UNITED FOODS, INC. -- Projection Model ($1 MM Cost Savings, 5.0% Growth)
Projected Balance Sheets
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 3,160 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 10,850 11,393 11,962 12,560 13,188 13,848
Accrued liabilities 6,911 7,257 7,619 8,000 8,400 8,820
Income taxes payable 135 142 149 156 164 172
--------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 21,300 30,511 22,172 23,337 48,679
Long term debt
Revolver -- -- 2,036 12,238 12,719 12,895
Long term debt 57,971 54,811 52,302 41,521 40,066 38,482
Line of credit -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 57,971 54,811 54,338 53,759 52,785 51,377
Less current portion (3,160) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 52,302 43,557 52,304 51,201 25,538
Deferred income taxes 4,585 4,814 5,055 5,308 5,573 5,852
--------- --------- --------- --------- --------- ---------
Total liabilities 80,452 78,416 79,123 79,784 80,111 80,069
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,993 3,993 3,993 3,993 3,993 3,993
Retained earnings 35,865 37,604 39,855 42,574 45,796 49,564
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 48,407 50,658 53,377 56,599 60,367
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $ 126,824 $ 129,781 $ 133,161 $ 136,710 $ 140,436
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 99
UNITED FOODS, INC. -- Projection Model ($1 MM Cost Savings, 5.0% Growth)
Projected Cash Flow Statements
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
Projected
2000 2001 2002 2003 2004
------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,739 $ 2,251 $ 2,719 $ 3,222 $ 3,768
Depreciation 7,268 7,268 7,268 7,268 7,268
------- ------- -------- ------- -------
Net cash provided by operating activities 6,916 7,322 7,681 8,068 8,494
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- -------- ------- -------
Net cash provided by investing activities (7,118) (7,110) (7,102) (7,094) (7,085)
Cash flows from financing activities
Repayment of debt (3,160) (2,509) (11,359) (2,429) (2,992)
Drawdown on revolver -- 2,036 10,781 1,455 1,584
------- ------- -------- ------- -------
Net cash provided by financing activities (3,160) (473) (578) (974) (1,408)
------- ------- -------- ------- -------
Net additions to cash $(3,362) $ (261) $ 0 $ (0) $ --
======= ======= ======== ======= =======
Beginning cash balance 3,723 361 100 100 100
Ending cash balance 361 100 100 100 100
</TABLE>
<PAGE> 100
Liquidation Analysis
Liquidation Value
Based on August 31, 1998 Balance Sheet
<TABLE>
<CAPTION>
Actual Management Theoretical
-------- ---------- -----------
<S> <C> <C> <C>
ASSETS
Cash $ 627 $ 627 $ 627
Accounts Receivable 15,185 14,426 $14,426
Inventories
Finished Product 34,388 17,194 $22,352
Raw Material 1,168 292 $ 759
Growing Crops 3,105 -- --
Packaging Materials 1,517 -- --
Sundry Supplies 722 -- --
Prepaid Expenses 3,002 -- --
Refundable Taxes 594 594 $ 594
Deferred Income Taxes 1,249 -- --
Net PP&E 53,023 43,000 $42,949
Other assets
Notes & Accounts Receivable 53 53 $ 53
Deferred Charges & Other Assets 656 -- --
Property & Equipment Held For 804 804 $ 804
Disposal, Est. Realiz. Value
Total Assets 116,093 76,990 82,564
======== ======= =======
LIABILITIES
Current Liabilities
Notes Payable to Banks and Others -- -- --
Accounts Payable 15,083 15,083 $15,083
Accrued Liabilities 7,246 7,246 $ 7,246
Accrued (Prepaid) Burden 178 178 $ 178
Income Taxes Payable 109 109 $ 109
Deferred Income Taxes - Current -- -- --
Current Maturities of L-T-D 4,300 4,300 $ 4,300
Long-term Debt Less Current Maturities 31,924 31,924 $31,924
Long-term Revolving Loan 7,025 7,025 $ 7,025
Deferred Income Taxes - Long-term 4,710 -- --
Total Liabilities 70,575 65,865 65,865
-------- ------- -------
Equity 45,518 11,125 16,699
======== ======= =======
Shares Outstanding 6,810 6,810 6,810
Book Value Per Share $ 6.68 $ 1.63 $ 2.45
</TABLE>
42
<PAGE> 101
UNITED FOODS - $1 MM COST SAVINGS -- Leveraged Buyout Analysis - 5% Growth
Transaction Summary
- -------------------------------------------------------------------------------
($s in 000s)
<TABLE>
<CAPTION>
% of
Uses of Funds: Amount Capital Proposed Offer Price
- ------------------------------------ ----------------- ---------- ----------------------------
<S> <C> <C> <C> $3.00
Offer for 100% equity $20,430 25.7%
Debt to be refinanced 57,971 73.0%
Cash 0 0.0%
Transaction fees & expenses 1,000 1.3% Shares Outstanding
---------------- -------- ----------------------------
Total Uses of Funds $79,401 100.0% 6,810
================ ========
<CAPTION>
Interest % of
Sources of Funds: Rate Amount Capital Proposed Consideration
- ------------------------------------ -------- ----------------- ---------- ----------------------------
<S> <C> <C> <C> <C>
Revolver 8.50% $0 0.0% $20,430
Senior debt 8.50% 45,283 57.0%
Sub-debt 12.00% 19,407 24.4%
Outside equity - Common Stock 14,711 18.5%
---------------- --------
Total Sources of Funds $79,401 100.0%
================ ========
</TABLE>
<TABLE>
<CAPTION>
Transaction Summary Statistics Goodwill Calculation
- -------------------------------------------------------- --------------------------------------
<S> <C> <C> <C> <C>
Purchase price of equity $20,430
Transaction value $79,401 Plus: Transaction fees 0
Less: Book value acquired 46,668
Fiscal Year End Feb.: 1999 2000 Less: Assumed asset write-up
--------------------- ---- ---- Less: Deferred income taxes 0
Transaction value/EBIT 14.0x 11.0x ---------------
Transaction value/EBITDA 6.14x 5.44x Book goodwill $(26,238)(a)
Transaction value/Sales .37x .36x ===============
</TABLE>
- ------------------------------------
(a) Transaction fees are amortized separately and therefore are excluded from
book goodwill.
<PAGE> 102
UNITED FOODS - $1 MM COST SAVINGS -- Leveraged Buyout Analysis - 5% Growth
Assumptions Summary, Key Ratios and Amortization Schedule
- -------------------------------------------------------------------------------
($s in 000s)
Transaction Assumptions
$ 79,401 Transaction value
<TABLE>
<CAPTION>
Projected Fiscal Year Ended Feb.
ProForma -----------------------------------------------------------------------------
1999 (1) 2000 2001 2002 2003 2004
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Key Ratios:
- -----------
EBIT / interest expense 0.9 x 1.2 x 1.3 x 1.4 x 1.5 x 1.7 x
(EBIT - cap ex)/interest expense 0.9 x (0.0)x 0.1 x 0.2 x 0.3 x 0.5 x
EBITDA / interest expense 2.1 x 2.4 x 2.5 x 2.6 x 2.8 x 2.9 x
(EBITDA - cap ex) / interest
expense 2.1 x 1.2 x 1.3 x 1.4 x 1.6 x 1.7 x
(EBITDA - change in working
cap-cap ex)/interest expense 0.9 x 1.0 x 1.1 x 1.2 x 1.3 x
Senior debt/ EBITDA 3.5 x 3.0 x 2.8 x 2.7 x 2.6 x 2.5 x
Total debt/ EBITDA 5.0 x 4.3 x 4.1 x 4.0 x 3.8 x 3.6 x
Capitalization:
Senior debt $45,283 57% $42,789 55% $43,548 55% $43,999 54% $44,108 53% $43,837 51%
Other debt 19,407 24% 19,407 25% 19,407 24% 19,407 24% 19,407 23% 19,407 23%
------- ------- --- ------- --- ------- --- ------- --- ------- ---
Total debt 64,690 81% 62,196 80% 62,955 79% 63,406 78% 63,515 76% 63,244 74%
Equity 14,711 19% 15,423 20% 16,602 21% 18,192 22% 20,231 24% 22,762 26%
------- ------- --- ------- --- ------- --- ------- --- ------- ---
Total capitalization $79,401 100% $77,619 100% $79,558 100% $81,598 100% $83,746 100% $86,006 100%
Amortization:
- -------------
Senior debt retired annually 9,057 9,057 9,057 9,057 9,057
Notes payable retired annually -- -- -- -- --
Sub-debt retired annually -- -- -- -- --
Other notes retired annually -- -- -- -- --
Goodwill amortization over 15
years
Fee amortization over 10 years $ 100 $ 100 $ 100 $ 100 $ 100
</TABLE>
(1) Adjusted to show historical operating results with proforma interest expense
and proforma capitalization.
<PAGE> 103
UNITED FOODS - $1 MM COST SAVINGS -- Leveraged Buyout Analysis - 5% Growth
Projected Income Statements
- --------------------------------------------------------------------------------
($s in 000s)
<TABLE>
<CAPTION>
Historical Projected Fiscal Year Ended Feb.
---------- --------------------------------------------------------
1999 2000 2001 2002 2003 2004
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $211,839 $222,431 $233,552 $245,230 $257,492 $270,366
% growth 5.0% 5.0% 5.0% 5.0% 5.0%
Cost of sales $172,486 $181,110 $190,166 $199,674 $209,658 $220,141
% of revenue 81.4% 81.4% 81.4% 81.4% 81.4% 81.4%
-------- -------- -------- -------- -------- --------
Gross profit $ 39,353 $ 41,321 $ 43,387 $ 45,556 $ 47,834 $ 50,226
gross margin 18.6% 18.6% 18.6% 18.6% 18.6% 18.6%
General and administrative, net dep. $ 10,093 $ 9,598 $ 10,128 $ 10,684 $ 11,268 $ 11,882
% of revenue 4.8% 4.3% 4.3% 4.4% 4.4% 4.4%
Direct selling expenses 16,322 17,138 17,995 18,895 19,839 20,831
% of revenue 7.7% 7.7% 7.7% 7.7% 7.7% 7.7%
-------- -------- -------- -------- -------- --------
Total operating expenses $ 26,415 $ 26,736 $ 28,123 $ 29,579 $ 31,108 $ 32,713
% of revenue 12.5% 12.0% 12.0% 12.1% 12.1% 12.1%
EBITDA $ 12,938 $ 14,585 $ 15,264 $ 15,977 $ 16,726 $ 17,513
% of revenue 6.1% 6.6% 6.5% 6.5% 6.5% 6.5%
Depreciation $ 7,268 $ 7,268 $ 7,268 $ 7,268 $ 7,268 $ 7,268
Transaction fee amortization -- 100 100 100 100 100
-------- -------- -------- -------- -------- --------
Total depreciation & amortization $ 7,268 $ 7,368 $ 7,368 $ 7,368 $ 7,368 $ 7,368
% of revenue 3.4% 3.3% 3.2% 3.0% 2.9% 2.7%
-------- -------- -------- -------- -------- --------
EBIT $ 5,670 $ 7,217 $ 7,896 $ 8,609 $ 9,358 $ 10,145
% of revenue 2.7% 3.2% 3.4% 3.5% 3.6% 3.8%
Capital expenditures $ 7,268 $ 7,268 $ 7,268 $ 7,268 $ 7,268
</TABLE>
<PAGE> 104
UNITED FOODS - $1 MM COST SAVINGS -- Leveraged Buyout Analysis - 5% Growth
Projected Income Statements
- --------------------------------------------------------------------------------
($s in 000s)
<TABLE>
<CAPTION>
Historical Projected Fiscal Year Ended Feb.
---------- --------------------------------------------------------
1999 2000 2001 2002 2003 2004
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
% of revenue 3.3% 3.1% 3.0% 2.8% 2.7%
EBIT $ 5,670 $ 7,217 $ 7,896 $ 8,609 $ 9,358 $ 10,145
Interest expense:
Revolver -- 279 975 1,796 2,590 3,353
Senior debt -- 3,464 2,694 1,925 1,155 385
Sub-debt -- 2,329 2,329 2,329 2,329 2,329
-------- -------- -------- -------- -------- --------
Total interest expense 4,179 6,072 5,998 6,050 6,073 6,066
Pre-tax income 1,495 1,149 1,902 2,564 3,289 4,082
Provision (benefit) for income taxes 575 437 723 974 1,250 1,551
-------- -------- -------- -------- -------- --------
Net income $ 920 $ 712 $ 1,179 $ 1,590 $ 2,039 $ 2,531
======== ======== ======== ======== ======== ========
</TABLE>
<PAGE> 105
UNITED FOODS - $1 MM COST SAVINGS -- Leveraged Buyout Analysis - 5% Growth
Projected Balance Sheets
- --------------------------------------------------------------------------------
($s in 000s)
<TABLE>
<CAPTION>
Projected Fiscal Year Ended Feb.
Historical Proforma ------------------------------------------------------
Feb. 1999 Adjustments Feb. 1999 2000 2001 2002 2003 2004
--------- ------------------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
Cash and equivalents $ 3,723 $ 0 $ 0 $ 3,723 $ 100 $ 100 $ 100 $ 100 $ 100
Short-term investments -- -- -- -- -- -- -- -- --
Accounts receivable 18,771 -- -- 18,771 19,710 20,695 21,730 22,816 23,957
Inventory 36,217 -- -- 36,217 38,028 39,929 41,926 44,022 46,223
Prepaid expenses 3,508 -- -- 3,508 3,683 3,868 4,061 4,264 4,477
Deferred income taxes 1,238 -- -- 1,238 1,300 1,365 1,433 1,505 1,580
--------- --------- -------- --------- --------- --------- --------- --------- ---------
Total current assets 63,457 -- -- 63,457 62,821 65,957 69,250 72,707 76,337
Land 12,562 -- -- 12,562 12,562 12,562 12,562 12,562 12,562
Gross plant and equip. 130,878 -- (26,238) 104,640 111,908 119,176 126,444 133,712 140,980
Accumulated depreciation (81,354) -- -- (81,354) (88,622) (95,890) (103,158) (110,426) (117,694)
--------- --------- -------- --------- --------- --------- --------- --------- ---------
Net P,P&E 62,086 -- (26,238) 35,848 35,848 35,848 35,848 35,848 35,848
Goodwill, net of
accumulated amortization -- -- -- -- -- -- -- -- --
Transaction fee & expenses -- -- 1,000 1,000 900 800 700 600 500
Fixed assets held for disposal 804 -- -- 804 844 886 931 977 1,026
Notes & accounts receivable 50 -- -- 50 53 55 58 61 64
Deferred charges and
other assets 723 -- -- 723 759 797 837 879 923
--------- --------- -------- --------- --------- --------- --------- --------- ---------
Total assets $ 127,120 $ 0 $(25,238) $ 101,882 $ 101,224 $ 104,343 $ 107,623 $ 111,072 $ 114,698
========= ========= ======== ========= ========= ========= ========= ========= =========
LIABILITIES & EQUITY
- --------------------
Current maturities &
short-term debt $ 3,160 $ (3,160) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Accounts payable 10,850 -- -- 10,850 11,393 11,962 12,560 13,188 13,848
Accrued liabilities 6,911 -- -- 6,911 7,257 7,619 8,000 8,400 8,820
Income taxes payable 135 -- -- 135 142 149 156 164 172
--------- --------- -------- --------- --------- --------- --------- --------- ---------
Total current liabilities 21,056 (3,160) -- 17,896 18,791 19,730 20,717 21,753 22,840
Long term debt
Revolver -- -- -- -- 6,563 16,379 25,886 35,051 43,837
Senior debt 57,971 (57,971) 45,283 45,283 36,226 27,170 18,113 9,057 --
Sub-debt -- -- 19,407 19,407 19,407 19,407 19,407 19,407 19,407
--------- --------- -------- --------- --------- --------- --------- --------- ---------
Total debt 57,971 (57,971) 64,690 64,690 62,196 62,955 63,406 63,515 63,244
Less current portion (3,160) 3,160 -- -- -- -- -- -- --
--------- --------- -------- --------- --------- --------- --------- --------- ---------
Total long-term debt 54,811 (54,811) 64,690 64,690 62,196 62,955 63,406 63,515 63,244
--------- --------- -------- --------- --------- --------- --------- --------- ---------
Deferred income taxes 4,585 -- -- 4,585 4,814 5,055 5,308 5,573 5,852
--------- --------- -------- --------- --------- --------- --------- --------- ---------
Total liabilities 80,452 (57,971) 64,690 87,171 85,801 87,741 89,431 90,841 91,936
Common stock 10,803 (10,803) 14,711 14,711 14,711 14,711 14,711 14,711 14,711
Retained earnings 35,865 (35,865) -- -- 712 1,892 3,481 5,520 8,051
--------- --------- -------- --------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,668 (46,668) 14,711 14,711 15,423 16,602 18,192 20,231 22,762
--------- --------- -------- --------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 127,120 $(104,639) $ 79,401 $ 101,882 $ 101,224 $ 104,343 $ 107,623 $ 111,072 $ 114,698
========= ========= ======== ========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 106
UNITED FOODS - $1 MM COST SAVINGS -- Leveraged Buyout Analysis - 5% Growth
Cash Flow
- --------------------------------------------------------------------------------
($s in 000s)
<TABLE>
<CAPTION>
Projected Fiscal Year Ended Feb.
---------------------------------------------------
2000 2001 2002 2003 2004
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Income $ 712 $ 1,179 $ 1,590 $ 2,039 $ 2,531
Add: Depreciation & amortization 7,268 7,268 7,268 7,268 7,268
Add: Fee amortization 100 100 100 100 100
------- ------- ------- ------- -------
Total Sources $ 8,080 $ 8,547 $ 8,958 $ 9,407 $ 9,899
Less: Changes in other long-term assets & liabilities 150 158 166 174 183
Less: Change in working capital (2,092) (2,196) (2,306) (2,422) (2,543)
Less: Capital expenditures (Net of dispos.) (7,268) (7,268) (7,268) (7,268) (7,268)
------- ------- ------- ------- -------
Total Uses $(9,210) $(9,307) $(9,409) $(9,516) $(9,628)
------- ------- ------- ------- -------
Total Free Cash Flow Before Financing $(1,129) $( 759) $( 451) $( 108) $ 271
Repayment/ Borrowing of Debt
- ----------------------------
Revolver 6,563 9,816 9,508 9,165 8,786
Senior debt (9,057) (9,057) (9,057) (9,057) (9,057)
------- ------- ------- ------- -------
Total Debt (Repayments)/ Borrowing $(2,494) $ 759 $ 451 $ 108 $( 271)
Change in Cash Balance $(3,623) $ 0 $ 0 $ 0 $ 0
</TABLE>
<PAGE> 107
UNITED FOODS - $1 MM COST SAVINGS -- Leveraged Buyout Analysis - 5% Growth
Working Capital Assumptions
- --------------------------------------------------------------------------------
($'s in 000s)
<TABLE>
<CAPTION>
Proforma Projected Fiscal Year Ended Feb.
------- Feb. ------------------------------------------------------
1999 Adjustments 1999 2000 2001 2002 2003 2004
------- --------------- ------- ------- --------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accounts receivable $18,771 -- -- $18,771 $19,710 $ 20,695 $ 21,730 $22,816 $23,957
% of sales 8.9% 8.9% 8.9% 8.9% 8.9% 8.9% 8.9%
Inventory $36,217 -- -- $36,217 $38,028 $ 39,929 $ 41,926 $44,022 $46,223
% of sales 17.1% 17.1% 17.1% 17.1% 17.1% 17.1% 17.1%
Prepaid expenses $ 3,508 -- -- $ 3,508 $ 3,683 $ 3,868 $ 4,061 $ 4,264 $ 4,477
% of sales 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7%
Deferred income taxes $ 1,238 -- -- $ 1,238 $ 1,300 $ 1,365 $ 1,433 $ 1,505 $ 1,580
% of sales 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6%
Other current assets 3 $ 0 -- -- $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
% of sales 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other current assets 4 $ 0 -- -- $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
% of sales 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
------- ----- ----- ------- ------- --------- --------- ------- -------
Total current assets,
excluding cash $59,734 -- -- $59,734 $62,721 $ 65,857 $ 69,150 $72,607 $76,237
% of sales 28.2% 28.2% 28.2% 28.2% 28.2% 28.2% 28.2%
Accounts payable $10,850 -- -- $10,850 $11,393 $ 11,962 $ 12,560 $13,188 $13,848
% of sales 5.1% 5.1% 5.1% 5.1% 5.1% 5.1% 5.1%
Accrued liabilities $ 6,911 -- -- $ 6,911 $ 7,257 $ 7,619 $ 8,000 $ 8,400 $ 8,820
% of sales 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3%
Income taxes payable $ 135 -- -- $ 135 $ 142 $ 149 $ 156 $ 164 $ 172
% of sales 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Other liabilities 3 $ 0 -- -- $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
% of sales 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other liabilities 4 $ 0 -- -- $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
% of sales 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
------- ----- ----- ------- ------- --------- --------- ------- -------
Total current liabilities
excluding S-T debt $17,896 -- -- $17,896 $18,791 $ 19,730 $ 20,717 $21,753 $22,840
% of sales 8.4% 8.4% 8.4% 8.4% 8.4% 8.4% 8.4%
Net non-cash working capital $41,838 $41,838 $43,930 $ 46,126 $ 48,433 $50,854 $53,397
% of sales 19.7% 19.7% 19.7% 19.7% 19.7% 19.7% 19.7%
Change in non-cash working capital $ 2,092 $ 2,196 $ 2,306 $ 2,422 $ 2,543
</TABLE>
<PAGE> 108
UNITED FOODS - $1 MM COST SAVINGS--LEVERAGED BUYOUT ANALYSIS - 5% GROWTH
Returns Analysis
- --------------------------------------------------------------------------------
($s in 000s)
<TABLE>
<CAPTION>
Projected Returns on Sub-Debt
-----------------------------
Year Ending Feb.
---------------------------------------------------------------------------
2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Total Capitalization as a
Multiple of EBITDA
5 x $ 72,925 $ 76,321 $ 79,887 $ 83,631 $ 87,563
6 x 87,509 91,585 95,864 100,357 105,075
7 x 102,094 106,849 111,841 117,084 122,588
8 x 116,679 122,113 127,819 133,810 140,100
Less: Total Debt (net of cash) $ 62,096 $ 62,855 $ 63,306 $ 63,415 $ 63,144
Value of Equity
5 x $ 10,828 $ 13,465 $ 16,580 $ 20,216 $ 24,419
6 x 25,413 28,729 32,558 36,942 41,931
7 x 39,998 43,994 48,535 53,669 59,444
8 x 54,583 59,258 64,512 70,395 76,956
Returns Analysis
19,407
Ownership Percentage (input) 35.0% 35.0% 35.0% 35.0% 35.0%
IRR Assuming EBITDA
Multiples of:
5 x 31.5% 22.9% 20.2% 18.9% 18.1%
6 x 57.8% 34.1% 27.1% 23.8% 21.8%
7 x 84.1% 44.5% 33.3% 28.1% 25.0%
8 x 110.4% 54.1% 38.9% 32.0% 28.0%
</TABLE>
<PAGE> 109
UNITED FOODS - $1 MM COST SAVINGS--LEVERAGED BUYOUT ANALYSIS - 5% GROWTH
Returns Analysis
- --------------------------------------------------------------------------------
($0s in 000s)
<TABLE>
<CAPTION>
Projected Returns on Outside Equity
-----------------------------------
Year Ending Feb.
-------------------------------------------------------------------------
2000 2001 2002 2003 2004
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Total Capitalization as a
Multiple of EBITDA
5 x $ 72,925 $ 76,321 $ 79,887 $ 83,631 $ 87,563
6 x 87,509 91,585 95,864 100,357 105,075
7 x 102,094 106,849 111,841 117,084 122,588
8 x 116,679 122,113 127,819 133,810 140,100
Less: Total Debt (net of cash) 62,096 62,855 63,306 63,415 63,144
Value of Equity
5 x $ 10,828 $ 13,465 $ 16,580 $ 20,216 $ 24,419
6 x 25,413 28,729 32,558 36,942 41,931
7 x 39,998 43,994 48,535 53,669 59,444
8 x 54,583 59,258 64,512 70,395 76,956
Returns Analysis
14,711
Ownership Percentage 65.0% 65.0% 65.0% 65.0% 65.0%
IRR Assuming EBITDA
Multiples of:
5 x #NUM! (22.9%) (9.9%) (2.8%) 1.5%
6 x 12.3% 12.7% 12.9% 13.0% 13.1%
7 x 76.7% 39.4% 29.0% 24.1% 21.3%
8 x 141.2% 61.8% 41.8% 32.8% 27.7%
</TABLE>
<PAGE> 110
Trading and Equity Analysis
Market Value of Equity as a Percentage of Book Value of Equity
Quarterly Since February 1996
(GRAPH)
34
<PAGE> 111
Trading and Equity Analysis
Total Capitalization to EBIT
Quarterly Since February 1996
(GRAPH)
35
<PAGE> 112
Trading and Equity Analysis
Total Capitalization to EBITDA
Quarterly Since February 1996
(GRAPH)
36
<PAGE> 113
Trading and Equity Analysis
United Foods, Inc.
Daily Price & Volume Trading Statistics Since 10/2/97
United Foods Class A United Foods Class B
(GRAPH) (GRAPH)
37
<PAGE> 114
Trading and Equity Analysis
Monthly Change in Price
Since 12/1/97
<TABLE>
<CAPTION>
Dec-97 Jan-98 Feb-98 Mar-98 Apr-98 May-98 Jun-98 Jul-98 Aug-98 Sep-98 Average
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods - Class A 1.20% 9.52% 26.09% (3.45)% 1.79% (4.92)% (1.82)% 0.00% (14.81)% 6.82% 2.04%
United Foods - Class B 4.76% 9.09% 20.83% (5.17)% 0.00% 0.00% 0.00% (7.14)% (9.62)% 6.67% 1.94%
S&P 500 (0.45)% 1.02% 7.04% 4.99% 0.32% (2.69)% 3.93% (2.43)% (14.58)% 2.29% (0.05)%
Russell 2000 0.66% (1.59)% 7.39% 4.08% (0.42)% (5.84)% 1.38% (8.72)% (19.49)% 4.45% (1.81)%
</TABLE>
United Foods Class A and Class B Vs. S&P 500 and Russell 2000 Index
(GRAPH)
38
<PAGE> 115
Trading and Equity Analysis
Selected Financial Data
Since 1989
(in 000s, except per share data and ratios)
<TABLE>
<CAPTION>
1989 1990 1991 (3) 1992 1993 1994 1995
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Combined Sales (Adjusted) $ 157,286 $168,935 $171,145 $154,368 $ 156,318 $175,796 $190,256
Sales (Frozen Foods) 115,222 123,919 125,540 113,941 116,399 133,617 139,988
Sales (Mushrooms) 34,569 36,855 37,337 40,347 40,207 42,559 50,669
Combined EBITDA (1) 9,340 19,818 16,599 10,918 9,018 9,291 13,621
% of Sales 5.94% 11.73% 9.70% 7.07% 5.77% 5.29% 7.16%
EBITDA (Frozen Foods) 11,988 17,532 17,761 16,120 4,629 10,799 10,849
% of Sales 10.40% 14.15% 14.15% 14.15% 3.98% 8.08% 7.75%
EBITDA (Mushrooms) 4,261 4,171 4,226 4,566 4,120 4,670 8,945
% of Sales 12.33% 11.32% 11.32% 11.32% 10.25% 10.97% 17.65%
Net Income (1,153) 8,411 5,799 35 (2,116) 90 2,402
EPS (0.09) 0.63 0.44 -- (0.16) 0.01 0.19
Shares Outstanding 12,724 12,755 12,855 12,871 12,871 12,871 11,798
Book Value 44,776 53,225 56,417 59,645 57,529 57,619 57,440
Highest Stock Price During LTM 3.75 3.25 2.38 2.00 1.94 2.50 2.63
Lowest Stock Price During LTM 1.25 1.50 1.25 1.38 1.50 1.50 1.50
Equity Value (Highest Price) 47,715 41,454 30,531 25,742 24,938 32,178 30,970
Equity Value (Lowest Price) 15,905 19,133 16,069 17,698 19,307 19,307 17,697
Highest Price/Earnings - LTM NM x 5.16 x 5.40 x NM x NM x 250.00 x 13.82 x
Lowest Price/Earnings - LTM NM 2.38 2.84 NM NM 150.00 7.89
Highest Price/Earnings
- Forward 5.95 7.39 NM NM 193.75 13.16 NM
Lowest Price/Earnings
- Forward 1.98 3.41 NM NM 150.00 7.89 NM
Equity Value (Highest
Price)/Book Value - LTM 1.07 0.78 0.54 0.43 0.43 0.56 0.54
Equity Value (Lowest
Price)/Book Value - LTM 0.36 0.36 0.28 0.30 0.34 0.34 0.31
<CAPTION>
1996 1997 1998
----------------------------------
<S> <C> <C> <C>
Combined Sales (Adjusted) $ 191,714 $195,820 $195,087
Sales (Frozen Foods) 145,288 152,494 152,076
Sales (Mushrooms) 48,174 44,242 44,684
Combined EBITDA (1) 10,276 12,531 12,127
% of Sales 5.36% 6.40% 6.22%
EBITDA (Frozen Foods) 12,272 16,740 18,185
% of Sales 8.45% 10.98% 11.96%
EBITDA (Mushrooms) 9,553 2,224 5,927
% of Sales 19.83% 5.03% 13.26%
Net Income (660) 922 460
EPS (0.06) 0.08 0.06
Shares Outstanding 10,810 10,810 6,810
Book Value 54,534 55,456 45,748
Highest Stock Price During LTM 2.25 3.00 4.00
Lowest Stock Price During LTM 1.38 1.38 2.31
Equity Value (Highest Price) 24,323 32,430 27,240
Equity Value (Lowest Price) 14,864 14,864 15,748
Highest Price/Earnings - LTM NM x 37.50 x 66.67 x
Lowest Price/Earnings - LTM NM 17.19 38.54
Highest Price/Earnings
- Forward 28.13 50.00 NM
Lowest Price/Earnings
- Forward 17.19 22.92 NM
Equity Value (Highest
Price)/Book Value - LTM 0.45 0.58 0.60
Equity Value (Lowest
Price)/Book Value - LTM 0.27 0.27 0.34
</TABLE>
(1) Combined EBITDA includes Corporate Loss
(2) Includes reduction of income taxes from carryforward of prior year operating
losses.
(3) 1991 Sales and EBITDA are estimated as a percent of sales because company
financials do not break out mushrooms and frozen foods.
39
<PAGE> 116
Trading and Equity Analysis
UNITED FOODS CLASS A
Shares Traded at Various Prices From 10/1/97 to 10/1/98
<TABLE>
<CAPTION>
Cumulative
----------------------------------------------------
Days % of Total % of Total Days % of Total % of Total
Trading Daily Avg. Days Trading Trading Daily Avg. Days Trading Trading
Range (1) In Range Traded Volume Volume In Range Traded Volume Volume
--------- ---------- ---------- ------- ---------- ---------- ---------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
< $2.20 0 0.0% -- 0.0% 0 0.0% -- 0.0%
$2.20 - $2.45 27 10.3% 20,900 4.3% 27 10.3% 20,900 4.3%
$2.45 - $2.70 77 29.4% 109,500 22.6% 104 39.7% 130,400 27.0%
$2.70 - $2.95 27 10.3% 90,600 18.7% 131 50.0% 221,000 45.7%
$2.95 - $3.20 33 12.6% 44,000 9.1% 164 62.6% 265,000 54.8%
$3.20 - $3.45 68 26.0% 105,300 21.8% 232 88.5% 370,300 76.6%
$3.45 - $3.70 22 8.4% 45,300 9.4% 254 96.9% 415,600 86.0%
$3.70 - $3.95 8 3.1% 67,900 14.0% 262 100.0% 483,500 100.0%
>= - $3.95 0 0.0% -- 0.0% 262 100.0% 483,500 100.0%
Total: 262 100.0% 483,500 100.0%
</TABLE>
UNITED FOODS CLASS A
Shares Traded at Various Prices From 10/1/97 to 10/1/98
(GRAPH)
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 1,845 shares or $5,698.58 and the
average daily close has been $2.96.
40
<PAGE> 117
Trading and Equity Analysis
UNITED FOODS CLASS B
Shares Traded at Various Prices From 10/1/97 to 10/1/98
<TABLE>
<CAPTION>
Cumulative
-----------------------------------------------------
Days % of Total % of Total Days % of Total % of Total
Trading Daily Avg. Days Trading Trading Daily Avg. Days Trading Trading
Range (1) In Range Traded Volume Volume In Range Traded Volume Volume
--------- ---------- ---------- ------- ---------- ---------- ----------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
< $2.25 0 0.0% -- 0.0% 0 0.0% -- 0.0%
$2.25 - $2.50 28 11.1% 34,200 13.3% 28 11.1% 34,200 13.3%
$2.50 - $2.75 51 20.2% 46,600 18.2% 79 31.2% 80,800 31.5%
$2.75 - $3.00 38 15.0% 33,100 12.9% 117 46.2% 113,900 44.4%
$3.00 - $3.25 39 15.4% 33,400 13.0% 156 61.7% 147,300 57.4%
$3.25 - $3.50 47 18.6% 61,700 24.0% 203 80.2% 209,000 81.4%
$3.50 - $3.75 46 18.2% 45,000 17.5% 249 98.4% 254,000 98.9%
$3.75 - $4.00 4 1.6% 2,700 1.1% 253 100.0% 256,700 100.0%
>= - $4.00 0 0.0% -- 0.0% 253 100.0% 256,700 100.0%
Total: 253 100.0% 256,700 100.0%
</TABLE>
UNITED FOODS CLASS B
Shares Traded at Various Prices From 10/1/97 to 10/1/98
(GRAPH)
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 1,015 shares or $3,088.97 and the
average daily close has been $3.03.
41
<PAGE> 118
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
02-Oct-98 300 2.81 2.81 2.81
01-Oct-98 0 3.06 2.63 2.84
30-Sep-98 2,000 2.94 2.94 2.94
29-Sep-98 200 2.88 2.88 2.88
28-Sep-98 0 2.94 2.56 2.75
25-Sep-98 500 2.81 2.81 2.81
24-Sep-98 0 2.94 2.56 2.75
23-Sep-98 0 2.81 2.56 2.69
22-Sep-98 500 2.63 2.63 2.63
21-Sep-98 0 2.81 2.56 2.69
18-Sep-98 0 2.88 2.56 2.72
17-Sep-98 6,000 2.63 2.38 2.63
16-Sep-98 100 2.38 2.38 2.38
15-Sep-98 0 2.50 2.31 2.41
14-Sep-98 5,000 2.44 2.44 2.44
11-Sep-98 1,600 2.63 2.38 2.44
10-Sep-98 2,400 2.50 2.50 2.50
09-Sep-98 0 2.81 2.44 2.63
08-Sep-98 0 2.94 2.56 2.75
04-Sep-98 0 2.75 2.44 2.59
03-Sep-98 0 2.88 2.56 2.72
02-Sep-98 800 2.63 2.63 2.63
01-Sep-98 800 2.81 2.75 2.75
31-Aug-98 6,700 2.88 2.50 2.88
28-Aug-98 0 2.69 2.44 2.56
27-Aug-98 4,000 2.63 2.56 2.63
26-Aug-98 5,000 2.75 2.75 2.75
25-Aug-98 5,400 2.81 2.75 2.81
24-Aug-98 0 2.94 2.75 2.84
21-Aug-98 0 2.88 2.69 2.78
20-Aug-98 2,000 2.81 2.81 2.81
</TABLE>
<PAGE> 119
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
19-Aug-98 300 2.94 2.88 2.88
18-Aug-98 100 2.94 2.94 2.94
17-Aug-98 8,000 2.94 2.94 2.94
14-Aug-98 0 3.13 2.88 3.00
13-Aug-98 0 3.13 2.88 3.00
12-Aug-98 300 3.00 3.00 3.00
11-Aug-98 1,200 3.25 2.94 2.94
10-Aug-98 0 3.25 2.94 3.09
07-Aug-98 0 3.19 2.63 2.91
06-Aug-98 0 3.25 2.75 3.00
05-Aug-98 600 3.25 3.06 3.06
04-Aug-98 0 3.38 2.88 3.13
03-Aug-98 1,800 3.38 3.25 3.25
31-Jul-98 9,900 3.38 3.00 3.38
30-Jul-98 0 3.31 3.13 3.22
29-Jul-98 200 3.19 3.19 3.19
28-Jul-98 0 3.25 3.06 3.16
27-Jul-98 0 3.38 3.06 3.22
24-Jul-98 0 3.38 3.06 3.22
23-Jul-98 0 3.25 2.88 3.06
22-Jul-98 2,100 3.25 3.25 3.25
21-Jul-98 0 3.38 3.06 3.22
20-Jul-98 0 3.38 2.88 3.13
17-Jul-98 0 3.38 3.13 3.25
16-Jul-98 0 3.38 3.06 3.22
15-Jul-98 0 3.38 3.06 3.22
14-Jul-98 0 3.31 3.13 3.22
13-Jul-98 0 3.38 3.13 3.25
10-Jul-98 0 3.31 2.88 3.09
09-Jul-98 0 3.38 3.13 3.25
08-Jul-98 0 3.38 3.13 3.25
</TABLE>
<PAGE> 120
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Jul-98 1,000 3.19 3.19 3.19
06-Jul-98 1,600 3.25 3.19 3.19
02-Jul-98 0 3.50 3.19 3.34
01-Jul-98 400 3.38 3.38 3.38
30-Jun-98 7,000 3.44 3.38 3.38
29-Jun-98 0 3.44 3.06 3.25
26-Jun-98 0 3.50 2.88 3.19
25-Jun-98 1,000 3.25 3.25 3.25
24-Jun-98 0 3.56 3.06 3.31
23-Jun-98 200 3.25 3.25 3.25
22-Jun-98 5,000 3.31 3.31 3.31
19-Jun-98 0 3.38 3.19 3.28
18-Jun-98 600 3.19 3.19 3.19
17-Jun-98 0 3.38 3.13 3.25
16-Jun-98 5,200 3.31 3.19 3.19
15-Jun-98 100 3.31 3.31 3.31
12-Jun-98 0 3.56 3.25 3.41
11-Jun-98 2,200 3.38 3.31 3.31
10-Jun-98 100 3.31 3.31 3.31
09-Jun-98 600 3.38 3.38 3.38
08-Jun-98 0 3.69 3.19 3.44
05-Jun-98 500 3.50 3.50 3.50
04-Jun-98 0 3.69 3.44 3.56
03-Jun-98 0 3.69 3.44 3.56
02-Jun-98 0 3.69 3.44 3.56
01-Jun-98 0 3.63 3.25 3.44
29-May-98 15,300 3.63 3.44 3.63
28-May-98 1,100 3.50 3.31 3.50
27-May-98 0 3.50 3.19 3.34
26-May-98 3,200 3.38 3.38 3.38
22-May-98 0 3.44 3.19 3.31
</TABLE>
<PAGE> 121
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
21-May-98 0 3.63 3.13 3.38
20-May-98 0 3.56 3.19 3.38
19-May-98 7,300 3.25 3.25 3.25
18-May-98 3,700 3.31 3.31 3.31
15-May-98 200 3.38 3.38 3.38
14-May-98 0 3.50 3.25 3.38
13-May-98 200 3.31 3.31 3.31
12-May-98 1,000 3.38 3.38 3.38
11-May-98 0 3.56 3.25 3.41
08-May-98 900 3.38 3.38 3.38
07-May-98 0 3.63 3.38 3.50
06-May-98 400 3.44 3.44 3.44
05-May-98 500 3.50 3.50 3.50
04-May-98 2,300 3.88 3.63 3.75
01-May-98 29,700 3.94 3.81 3.81
30-Apr-98 5,200 3.56 3.06 3.56
29-Apr-98 0 3.25 2.94 3.09
28-Apr-98 5,000 3.13 3.00 3.13
27-Apr-98 100 2.88 2.88 2.88
24-Apr-98 0 3.00 2.69 2.84
23-Apr-98 1,000 2.88 2.88 2.88
22-Apr-98 7,400 3.00 2.75 3.00
21-Apr-98 16,700 2.69 2.50 2.63
20-Apr-98 4,100 2.75 2.69 2.75
17-Apr-98 41,300 3.00 2.69 2.69
16-Apr-98 1,000 3.06 3.06 3.06
15-Apr-98 11,000 3.13 3.06 3.06
14-Apr-98 10,700 3.50 3.06 3.38
13-Apr-98 2,500 3.00 3.00 3.00
09-Apr-98 500 3.06 3.00 3.00
08-Apr-98 0 3.31 2.88 3.09
</TABLE>
<PAGE> 122
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Apr-98 700 3.13 3.13 3.13
06-Apr-98 0 3.44 2.94 3.19
03-Apr-98 0 3.56 3.06 3.31
02-Apr-98 3,600 3.38 3.25 3.25
01-Apr-98 0 3.69 3.31 3.50
31-Mar-98 9,400 3.50 3.00 3.50
30-Mar-98 4,000 3.06 2.94 2.94
27-Mar-98 700 3.19 3.19 3.19
26-Mar-98 0 3.31 2.94 3.13
25-Mar-98 800 3.19 3.19 3.19
24-Mar-98 200 3.31 3.31 3.31
23-Mar-98 1,100 3.38 3.38 3.38
20-Mar-98 0 3.50 2.88 3.19
19-Mar-98 0 3.50 3.13 3.31
18-Mar-98 1,900 3.31 3.19 3.31
17-Mar-98 0 3.50 3.13 3.31
16-Mar-98 0 3.50 3.25 3.38
13-Mar-98 1,300 3.31 3.31 3.31
12-Mar-98 0 3.56 3.19 3.38
11-Mar-98 1,000 3.50 3.38 3.38
10-Mar-98 0 3.69 3.38 3.53
09-Mar-98 400 3.50 3.50 3.50
06-Mar-98 2,500 3.63 3.63 3.63
05-Mar-98 3,700 3.63 3.50 3.50
04-Mar-98 600 3.50 3.50 3.50
03-Mar-98 0 3.81 3.50 3.66
02-Mar-98 1,000 3.56 3.56 3.56
27-Feb-98 10,300 3.69 3.25 3.63
26-Feb-98 300 3.38 3.38 3.38
25-Feb-98 800 3.44 3.44 3.44
24-Feb-98 0 3.56 3.31 3.44
</TABLE>
<PAGE> 123
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
23-Feb-98 600 3.50 3.44 3.44
20-Feb-98 0 3.63 3.13 3.38
19-Feb-98 7,500 3.63 3.50 3.50
18-Feb-98 2,200 3.75 3.75 3.75
17-Feb-98 0 3.75 3.44 3.59
13-Feb-98 200 3.63 3.63 3.63
12-Feb-98 1,000 3.75 3.75 3.75
11-Feb-98 2,200 3.75 3.63 3.63
10-Feb-98 6,500 4.00 3.75 3.75
09-Feb-98 3,100 3.88 3.63 3.88
06-Feb-98 3,000 3.88 3.63 3.63
05-Feb-98 20,100 3.88 3.56 3.88
04-Feb-98 24,500 3.75 3.00 3.75
03-Feb-98 4,000 3.00 2.94 2.94
02-Feb-98 0 3.00 2.69 2.84
30-Jan-98 12,400 2.88 2.75 2.88
29-Jan-98 6,200 2.63 2.50 2.63
28-Jan-98 0 2.75 2.44 2.59
27-Jan-98 10,000 2.63 2.63 2.63
26-Jan-98 300 2.50 2.50 2.50
23-Jan-98 200 2.63 2.63 2.63
22-Jan-98 0 2.81 2.44 2.63
21-Jan-98 1,800 2.63 2.50 2.50
20-Jan-98 0 2.69 2.38 2.53
16-Jan-98 300 2.56 2.56 2.56
15-Jan-98 9,300 2.63 2.50 2.50
14-Jan-98 0 2.69 2.31 2.50
13-Jan-98 0 2.56 2.31 2.44
12-Jan-98 0 2.69 2.31 2.50
09-Jan-98 700 2.50 2.44 2.44
08-Jan-98 0 2.69 2.44 2.56
</TABLE>
<PAGE> 124
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Jan-98 0 2.69 2.31 2.50
06-Jan-98 5,600 2.63 2.63 2.63
05-Jan-98 3,400 2.75 2.63 2.63
02-Jan-98 0 2.75 2.44 2.59
31-Dec-97 5,600 2.75 2.38 2.63
30-Dec-97 200 2.38 2.38 2.38
29-Dec-97 1,000 2.38 2.38 2.38
26-Dec-97 0 2.69 2.31 2.50
24-Dec-97 1,700 2.38 2.38 2.38
23-Dec-97 200 2.50 2.50 2.50
22-Dec-97 0 2.56 2.31 2.44
19-Dec-97 0 2.63 2.25 2.44
18-Dec-97 0 2.63 2.31 2.47
17-Dec-97 700 2.50 2.50 2.50
16-Dec-97 0 2.56 2.19 2.38
15-Dec-97 4,000 2.38 2.38 2.38
12-Dec-97 0 2.56 2.25 2.41
11-Dec-97 1,300 2.44 2.44 2.44
10-Dec-97 0 2.50 2.31 2.41
09-Dec-97 0 2.50 2.31 2.41
08-Dec-97 2,000 2.44 2.44 2.44
05-Dec-97 0 2.69 2.31 2.50
04-Dec-97 0 2.69 2.31 2.50
03-Dec-97 0 2.75 2.44 2.59
02-Dec-97 400 2.50 2.50 2.50
01-Dec-97 0 2.75 2.44 2.59
28-Nov-97 6,700 2.63 2.38 2.63
26-Nov-97 0 2.69 2.38 2.53
25-Nov-97 0 2.81 2.38 2.59
24-Nov-97 0 2.69 2.38 2.53
21-Nov-97 0 2.69 2.38 2.53
</TABLE>
<PAGE> 125
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
20-Nov-97 0 2.81 2.31 2.56
19-Nov-97 0 2.75 2.31 2.53
18-Nov-97 0 2.69 2.38 2.53
17-Nov-97 200 2.44 2.44 2.44
14-Nov-97 0 2.69 2.31 2.50
13-Nov-97 0 2.56 2.31 2.44
12-Nov-97 0 2.63 2.25 2.44
11-Nov-97 2,000 2.50 2.38 2.50
10-Nov-97 100 2.25 2.25 2.25
07-Nov-97 0 2.44 2.06 2.25
06-Nov-97 1,300 2.25 2.25 2.25
05-Nov-97 2,000 2.38 2.38 2.38
04-Nov-97 800 2.50 2.50 2.50
03-Nov-97 0 2.75 2.44 2.59
31-Oct-97 5,500 2.63 2.44 2.63
30-Oct-97 6,000 2.50 2.50 2.50
29-Oct-97 0 2.50 2.25 2.38
28-Oct-97 1,500 2.50 2.50 2.50
27-Oct-97 0 2.63 2.25 2.44
24-Oct-97 200 2.50 2.50 2.50
23-Oct-97 0 2.81 2.38 2.59
22-Oct-97 2,900 2.50 2.44 2.50
21-Oct-97 0 2.63 2.50 2.56
20-Oct-97 0 2.69 2.44 2.56
17-Oct-97 0 2.63 2.50 2.56
16-Oct-97 800 2.50 2.50 2.50
15-Oct-97 200 2.50 2.50 2.50
14-Oct-97 0 2.69 2.50 2.59
13-Oct-97 200 2.50 2.50 2.50
10-Oct-97 0 2.75 2.50 2.63
09-Oct-97 0 2.75 2.50 2.63
</TABLE>
<PAGE> 126
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
08-Oct-97 1,000 2.56 2.56 2.56
07-Oct-97 0 2.75 2.56 2.66
06-Oct-97 0 2.75 2.50 2.63
03-Oct-97 0 2.75 2.56 2.66
02-Oct-97 300 2.63 2.63 2.63
01-Oct-97 0 2.81 2.44 2.63
30-Sep-97 8,700 2.75 2.50 2.75
29-Sep-97 0 2.69 2.50 2.59
26-Sep-97 0 2.75 2.56 2.66
25-Sep-97 1,300 2.63 2.50 2.63
24-Sep-97 0 2.75 2.56 2.66
23-Sep-97 600 2.75 2.56 2.75
22-Sep-97 1,300 2.63 2.63 2.63
19-Sep-97 0 2.69 2.31 2.50
18-Sep-97 200 2.50 2.50 2.50
17-Sep-97 14,500 2.75 2.63 2.63
16-Sep-97 600 2.75 2.75 2.75
15-Sep-97 0 2.81 2.56 2.69
12-Sep-97 2,500 2.69 2.63 2.63
11-Sep-97 0 2.69 2.25 2.47
10-Sep-97 0 2.63 2.38 2.50
09-Sep-97 400 2.44 2.44 2.44
08-Sep-97 13,700 2.56 2.50 2.56
05-Sep-97 600 2.38 2.38 2.38
04-Sep-97 1,000 2.50 2.50 2.50
03-Sep-97 0 2.75 2.44 2.59
02-Sep-97 0 2.81 2.50 2.66
29-Aug-97 7,600 2.63 2.50 2.56
28-Aug-97 600 2.56 2.44 2.56
27-Aug-97 20,700 2.50 2.50 2.50
26-Aug-97 300 2.44 2.44 2.44
</TABLE>
<PAGE> 127
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
25-Aug-97 1,000 2.50 2.50 2.50
22-Aug-97 0 2.50 2.31 2.41
21-Aug-97 1,000 2.38 2.38 2.38
20-Aug-97 0 2.56 2.38 2.47
19-Aug-97 0 2.56 2.38 2.47
18-Aug-97 300 2.50 2.50 2.50
15-Aug-97 2,000 2.56 2.56 2.56
14-Aug-97 0 2.75 2.56 2.66
13-Aug-97 0 2.81 2.56 2.69
12-Aug-97 300 2.63 2.63 2.63
11-Aug-97 0 2.75 2.56 2.66
08-Aug-97 0 2.75 2.56 2.66
07-Aug-97 2,700 2.63 2.63 2.63
06-Aug-97 3,300 2.75 2.63 2.75
05-Aug-97 0 3.00 2.63 2.81
04-Aug-97 0 2.88 2.63 2.75
01-Aug-97 0 2.88 2.56 2.72
31-Jul-97 0 2.88 2.63 2.75
30-Jul-97 0 2.88 2.50 2.69
29-Jul-97 1,500 2.75 2.63 2.75
28-Jul-97 700 2.81 2.81 2.81
25-Jul-97 1,300 2.88 2.81 2.81
24-Jul-97 8,400 2.94 2.81 2.94
23-Jul-97 15,100 2.94 2.13 2.81
22-Jul-97 200 2.19 2.19 2.19
21-Jul-97 0 2.38 2.13 2.25
18-Jul-97 500 2.19 2.19 2.19
17-Jul-97 0 2.44 2.00 2.22
16-Jul-97 0 2.38 2.13 2.25
15-Jul-97 2,700 2.25 2.25 2.25
14-Jul-97 400 2.38 2.25 2.25
</TABLE>
<PAGE> 128
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
11-Jul-97 0 2.50 2.13 2.31
10-Jul-97 0 2.50 2.13 2.31
09-Jul-97 5,600 2.25 2.13 2.25
08-Jul-97 0 2.44 2.00 2.22
07-Jul-97 500 2.38 2.31 2.31
03-Jul-97 0 2.50 2.13 2.31
02-Jul-97 10,700 2.44 2.38 2.38
01-Jul-97 0 2.44 2.31 2.38
30-Jun-97 1,300 2.38 2.38 2.38
27-Jun-97 0 2.44 2.06 2.25
26-Jun-97 0 2.56 2.31 2.44
25-Jun-97 4,400 2.31 2.31 2.31
24-Jun-97 0 2.38 2.31 2.34
23-Jun-97 100 2.31 2.31 2.31
20-Jun-97 200 2.38 2.38 2.38
19-Jun-97 2,200 2.44 2.44 2.44
18-Jun-97 100 2.19 2.19 2.19
17-Jun-97 0 2.38 2.13 2.25
16-Jun-97 200 2.25 2.25 2.25
13-Jun-97 1,700 2.25 2.25 2.25
12-Jun-97 0 2.50 2.13 2.31
11-Jun-97 200 2.13 2.13 2.13
10-Jun-97 0 2.38 2.13 2.25
09-Jun-97 0 2.38 2.13 2.25
06-Jun-97 8,400 2.13 2.13 2.13
05-Jun-97 0 2.38 2.13 2.25
04-Jun-97 10,100 2.19 2.19 2.19
03-Jun-97 13,700 2.13 2.06 2.13
02-Jun-97 11,100 2.13 2.00 2.13
30-May-97 200 2.06 2.06 2.06
29-May-97 7,600 2.13 2.13 2.13
</TABLE>
<PAGE> 129
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
28-May-97 0 2.13 1.88 2.00
27-May-97 4,100 2.06 2.06 2.06
23-May-97 3,300 2.06 2.06 2.06
22-May-97 5,000 2.06 2.06 2.06
21-May-97 14,500 2.13 2.06 2.06
20-May-97 42,400 2.06 2.00 2.06
19-May-97 2,400 1.75 1.63 1.75
16-May-97 700 1.63 1.56 1.63
15-May-97 100 1.56 1.56 1.56
14-May-97 0 1.69 1.56 1.63
13-May-97 4,000 1.56 1.56 1.56
12-May-97 400 1.56 1.56 1.56
09-May-97 600 1.63 1.63 1.63
08-May-97 400 1.56 1.56 1.56
07-May-97 1,000 1.63 1.63 1.63
06-May-97 0 1.75 1.38 1.56
05-May-97 100 1.63 1.63 1.63
02-May-97 0 1.81 1.38 1.59
01-May-97 5,000 1.75 1.63 1.63
30-Apr-97 8,500 1.69 1.50 1.69
29-Apr-97 0 1.69 1.50 1.59
28-Apr-97 2,000 1.56 1.56 1.56
25-Apr-97 5,000 1.69 1.56 1.56
24-Apr-97 500 1.56 1.56 1.56
23-Apr-97 3,000 1.69 1.69 1.69
22-Apr-97 0 1.69 1.50 1.59
21-Apr-97 5,800 1.63 1.56 1.63
18-Apr-97 1,200 1.63 1.63 1.63
17-Apr-97 3,000 1.63 1.63 1.63
16-Apr-97 3,000 1.63 1.63 1.63
15-Apr-97 0 1.69 1.50 1.59
</TABLE>
<PAGE> 130
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
14-Apr-97 12,600 1.56 1.44 1.50
11-Apr-97 24,200 1.63 1.50 1.50
10-Apr-97 0 1.81 1.63 1.72
09-Apr-97 0 1.81 1.63 1.72
08-Apr-97 200 1.69 1.69 1.69
07-Apr-97 800 1.69 1.69 1.69
04-Apr-97 300 1.69 1.69 1.69
03-Apr-97 8,900 1.81 1.69 1.69
02-Apr-97 2,200 1.81 1.69 1.81
01-Apr-97 0 1.81 1.56 1.69
31-Mar-97 3,500 1.81 1.63 1.81
27-Mar-97 0 1.75 1.63 1.69
26-Mar-97 0 1.75 1.56 1.66
25-Mar-97 1,400 1.63 1.63 1.63
24-Mar-97 1,000 1.69 1.69 1.69
21-Mar-97 0 1.75 1.63 1.69
20-Mar-97 600 1.63 1.63 1.63
19-Mar-97 1,000 1.69 1.69 1.69
18-Mar-97 300 1.69 1.69 1.69
17-Mar-97 1,200 1.69 1.69 1.69
14-Mar-97 0 1.81 1.63 1.72
13-Mar-97 6,200 1.69 1.69 1.69
12-Mar-97 0 1.81 1.69 1.75
11-Mar-97 0 1.81 1.69 1.75
10-Mar-97 2,700 1.81 1.69 1.69
07-Mar-97 0 1.94 1.81 1.88
06-Mar-97 1,100 1.94 1.88 1.94
05-Mar-97 0 1.94 1.75 1.84
04-Mar-97 1,000 1.94 1.88 1.94
03-Mar-97 0 2.00 1.63 1.81
28-Feb-97 21,900 1.88 1.75 1.88
</TABLE>
<PAGE> 131
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
27-Feb-97 600 1.81 1.81 1.81
26-Feb-97 0 1.81 1.44 1.63
25-Feb-97 2,500 1.69 1.69 1.69
24-Feb-97 800 1.69 1.69 1.69
21-Feb-97 2,300 1.75 1.75 1.75
20-Feb-97 200 1.69 1.69 1.69
19-Feb-97 0 1.75 1.63 1.69
18-Feb-97 5,100 1.69 1.69 1.69
14-Feb-97 300 1.75 1.75 1.75
13-Feb-97 0 1.94 1.69 1.81
12-Feb-97 0 1.81 1.69 1.75
11-Feb-97 100 1.81 1.81 1.81
10-Feb-97 13,200 1.88 1.81 1.81
07-Feb-97 12,900 1.81 1.63 1.81
06-Feb-97 0 1.75 1.63 1.69
05-Feb-97 11,000 1.63 1.56 1.63
04-Feb-97 2,000 1.63 1.63 1.63
03-Feb-97 1,200 1.56 1.56 1.56
31-Jan-97 8,000 1.69 1.56 1.56
30-Jan-97 25,900 1.63 1.56 1.63
29-Jan-97 3,100 1.63 1.63 1.63
28-Jan-97 6,100 1.69 1.63 1.63
27-Jan-97 0 1.75 1.63 1.69
24-Jan-97 0 1.75 1.63 1.69
23-Jan-97 500 1.69 1.69 1.69
22-Jan-97 0 1.81 1.56 1.69
21-Jan-97 800 1.69 1.69 1.69
20-Jan-97 1,600 1.69 1.69 1.69
17-Jan-97 0 1.81 1.56 1.69
16-Jan-97 0 1.81 1.63 1.72
15-Jan-97 100 1.63 1.63 1.63
</TABLE>
<PAGE> 132
Class A
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
14-Jan-97 3,000 1.75 1.63 1.63
13-Jan-97 1,100 1.69 1.63 1.63
10-Jan-97 400 1.75 1.69 1.75
09-Jan-97 7,000 1.69 1.69 1.69
08-Jan-97 12,500 1.75 1.69 1.69
07-Jan-97 12,500 1.75 1.75 1.75
06-Jan-97 400 1.63 1.63 1.63
03-Jan-97 1,300 1.69 1.63 1.69
02-Jan-97 2,000 1.63 1.56 1.56
- --------------------------------------------------------------------
Average 2,311 $2.65 $2.49 $2.57
- --------------------------------------------------------------------
</TABLE>
<PAGE> 133
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
02-Oct-98 2,000 $ 2.88 $ 2.88 $ 2.88
01-Oct-98 0 3.13 2.63 2.88
30-Sep-98 1,000 3.00 3.00 3.00
29-Sep-98 0 3.06 2.81 2.94
28-Sep-98 0 3.00 2.75 2.88
25-Sep-98 4,500 3.00 2.94 3.00
24-Sep-98 3,400 2.88 2.81 2.88
23-Sep-98 0 2.88 2.63 2.75
22-Sep-98 0 2.94 2.69 2.81
21-Sep-98 0 2.75 2.56 2.66
18-Sep-98 0 2.88 2.56 2.72
17-Sep-98 4,600 2.69 2.44 2.69
16-Sep-98 0 2.56 2.38 2.47
15-Sep-98 0 2.63 2.31 2.47
14-Sep-98 0 2.69 2.38 2.53
11-Sep-98 800 2.50 2.50 2.50
10-Sep-98 5,900 2.75 2.63 2.75
09-Sep-98 0 2.94 2.69 2.81
08-Sep-98 200 2.75 2.75 2.75
04-Sep-98 700 2.88 2.75 2.75
03-Sep-98 500 2.69 2.69 2.69
02-Sep-98 0 3.00 2.63 2.81
01-Sep-98 600 2.88 2.81 2.81
31-Aug-98 3,100 2.94 2.88 2.94
28-Aug-98 3,000 2.75 2.75 2.75
27-Aug-98 500 2.81 2.81 2.81
26-Aug-98 0 2.94 2.50 2.72
25-Aug-98 0 3.19 2.56 2.88
24-Aug-98 0 3.06 2.75 2.91
21-Aug-98 3,000 2.81 2.81 2.81
20-Aug-98 0 3.13 2.75 2.94
</TABLE>
<PAGE> 134
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
19-Aug-98 3,500 2.94 2.94 2.94
18-Aug-98 1,000 3.00 3.00 3.00
17-Aug-98 0 3.13 2.88 3.00
14-Aug-98 0 3.25 2.94 3.09
13-Aug-98 0 3.13 2.94 3.03
12-Aug-98 0 3.25 2.88 3.06
11-Aug-98 0 3.25 2.94 3.09
10-Aug-98 0 3.31 2.94 3.13
07-Aug-98 0 3.19 2.75 2.97
06-Aug-98 0 3.25 2.75 3.00
05-Aug-98 100 3.13 3.13 3.13
04-Aug-98 0 3.38 2.88 3.13
03-Aug-98 0 3.38 3.06 3.22
31-Jul-98 13,000 3.25 3.00 3.25
30-Jul-98 900 3.06 3.06 3.06
29-Jul-98 300 3.13 3.13 3.13
28-Jul-98 0 3.19 2.94 3.06
27-Jul-98 0 3.25 3.06 3.16
24-Jul-98 0 3.38 3.06 3.22
23-Jul-98 0 3.38 2.88 3.13
22-Jul-98 3,900 3.25 3.13 3.13
21-Jul-98 0 3.56 3.06 3.31
20-Jul-98 500 3.25 3.13 3.25
17-Jul-98 0 3.31 3.06 3.19
16-Jul-98 0 3.31 2.94 3.13
15-Jul-98 800 3.13 3.13 3.13
14-Jul-98 300 3.13 3.13 3.13
13-Jul-98 0 3.44 3.06 3.25
10-Jul-98 300 3.13 3.13 3.13
09-Jul-98 0 3.38 3.13 3.25
08-Jul-98 100 3.19 3.19 3.19
</TABLE>
<PAGE> 135
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Jul-98 0 3.44 3.13 3.28
06-Jul-98 1,400 3.25 3.25 3.25
02-Jul-98 0 3.63 3.31 3.47
01-Jul-98 0 3.69 3.31 3.50
30-Jun-98 6,300 3.50 3.31 3.50
29-Jun-98 100 3.38 3.38 3.38
26-Jun-98 0 3.75 3.38 3.56
25-Jun-98 0 3.56 3.31 3.44
24-Jun-98 300 3.44 3.44 3.44
23-Jun-98 0 3.56 3.19 3.38
22-Jun-98 800 3.50 3.44 3.44
19-Jun-98 100 3.38 3.38 3.38
18-Jun-98 600 3.50 3.50 3.50
17-Jun-98 0 3.69 3.31 3.50
16-Jun-98 0 3.63 3.31 3.47
15-Jun-98 700 3.50 3.50 3.50
12-Jun-98 2,600 3.63 3.63 3.63
11-Jun-98 5,400 3.50 3.44 3.50
10-Jun-98 0 3.88 3.19 3.53
09-Jun-98 500 3.56 3.56 3.56
08-Jun-98 300 3.38 3.38 3.38
05-Jun-98 100 3.44 3.44 3.44
04-Jun-98 2,000 3.50 3.50 3.50
03-Jun-98 100 3.63 3.63 3.63
02-Jun-98 0 3.81 3.44 3.63
01-Jun-98 0 3.75 3.25 3.50
29-May-98 2,000 3.63 3.56 3.63
28-May-98 100 3.44 3.44 3.44
27-May-98 0 3.63 3.31 3.47
26-May-98 0 3.56 3.31 3.44
22-May-98 0 3.56 3.25 3.41
</TABLE>
<PAGE> 136
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
21-May-98 0 3.50 3.06 3.28
20-May-98 0 3.50 3.06 3.28
19-May-98 100 3.44 3.44 3.44
18-May-98 1,100 3.50 3.38 3.38
15-May-98 0 3.75 3.44 3.59
14-May-98 0 3.75 3.44 3.59
13-May-98 0 3.81 3.44 3.63
12-May-98 700 3.63 3.63 3.63
11-May-98 0 3.69 3.38 3.53
08-May-98 0 3.75 3.38 3.56
07-May-98 0 3.63 3.38 3.50
06-May-98 600 3.50 3.50 3.50
05-May-98 0 3.69 3.44 3.56
04-May-98 100 3.56 3.56 3.56
01-May-98 2,500 3.63 3.50 3.63
30-Apr-98 4,200 3.44 3.38 3.44
29-Apr-98 2,700 3.38 3.25 3.38
28-Apr-98 600 3.13 3.13 3.13
27-Apr-98 0 3.13 2.81 2.97
24-Apr-98 100 3.00 3.00 3.00
23-Apr-98 0 3.19 2.81 3.00
22-Apr-98 0 3.19 2.81 3.00
21-Apr-98 0 3.13 2.69 2.91
20-Apr-98 0 3.19 2.81 3.00
17-Apr-98 200 3.00 3.00 3.00
16-Apr-98 100 3.31 3.31 3.31
15-Apr-98 100 3.38 3.38 3.38
14-Apr-98 4,800 3.38 3.00 3.25
13-Apr-98 2,500 3.00 3.00 3.00
09-Apr-98 100 3.13 3.13 3.13
08-Apr-98 0 3.44 2.94 3.19
</TABLE>
<PAGE> 137
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Apr-98 400 3.31 3.25 3.25
06-Apr-98 0 3.44 3.06 3.25
03-Apr-98 0 3.50 3.25 3.38
02-Apr-98 500 3.44 3.31 3.31
01-Apr-98 800 3.44 3.31 3.44
31-Mar-98 11,400 3.44 3.19 3.44
30-Mar-98 2,500 3.19 2.94 3.06
27-Mar-98 0 3.56 3.19 3.38
26-Mar-98 0 3.56 3.19 3.38
25-Mar-98 300 3.38 3.38 3.38
24-Mar-98 0 3.88 3.13 3.50
23-Mar-98 1,800 3.50 3.38 3.50
20-Mar-98 3,300 3.44 3.31 3.44
19-Mar-98 0 3.50 3.25 3.38
18-Mar-98 0 3.56 3.25 3.41
17-Mar-98 9,000 3.50 3.31 3.31
16-Mar-98 0 3.81 3.44 3.63
13-Mar-98 200 3.50 3.50 3.50
12-Mar-98 2,000 3.50 3.50 3.50
11-Mar-98 900 3.50 3.50 3.50
10-Mar-98 700 3.50 3.50 3.50
09-Mar-98 0 3.81 3.44 3.63
06-Mar-98 0 3.81 3.44 3.63
05-Mar-98 100 3.63 3.63 3.63
04-Mar-98 400 3.69 3.69 3.69
03-Mar-98 0 3.94 3.63 3.78
02-Mar-98 0 3.94 3.56 3.75
27-Feb-98 5,700 3.75 3.50 3.63
26-Feb-98 0 3.69 3.31 3.50
25-Feb-98 300 3.50 3.50 3.50
24-Feb-98 0 3.69 3.38 3.53
</TABLE>
<PAGE> 138
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
23-Feb-98 600 3.56 3.50 3.56
20-Feb-98 0 3.63 3.25 3.44
19-Feb-98 0 3.69 3.44 3.56
18-Feb-98 3,300 3.63 3.50 3.56
17-Feb-98 3,500 3.63 3.63 3.63
13-Feb-98 4,400 3.69 3.63 3.69
12-Feb-98 0 3.63 3.13 3.38
11-Feb-98 1,600 3.50 3.50 3.50
10-Feb-98 2,600 3.81 3.63 3.63
09-Feb-98 800 3.75 3.75 3.75
06-Feb-98 1,900 3.81 3.75 3.75
05-Feb-98 6,300 3.88 3.38 3.88
04-Feb-98 8,000 3.38 3.25 3.38
03-Feb-98 3,000 3.25 3.25 3.25
02-Feb-98 400 3.13 3.13 3.13
30-Jan-98 2,000 3.00 2.88 3.00
29-Jan-98 1,000 2.69 2.69 2.69
28-Jan-98 0 3.06 2.69 2.88
27-Jan-98 0 3.00 2.50 2.75
26-Jan-98 400 2.75 2.75 2.75
23-Jan-98 0 2.94 2.56 2.75
22-Jan-98 1,600 2.75 2.75 2.75
21-Jan-98 100 2.75 2.75 2.75
20-Jan-98 300 2.88 2.88 2.88
16-Jan-98 100 2.88 2.88 2.88
15-Jan-98 0 3.06 2.69 2.88
14-Jan-98 600 2.88 2.88 2.88
13-Jan-98 1,300 2.88 2.75 2.75
12-Jan-98 500 2.63 2.63 2.63
09-Jan-98 0 2.94 2.56 2.75
08-Jan-98 0 2.88 2.56 2.72
</TABLE>
<PAGE> 139
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
07-Jan-98 100 2.75 2.75 2.75
06-Jan-98 4,100 2.88 2.63 2.75
05-Jan-98 0 2.81 2.44 2.63
02-Jan-98 500 2.63 2.63 2.63
31-Dec-97 5,000 2.75 2.63 2.75
30-Dec-97 0 2.63 2.19 2.41
29-Dec-97 1,900 2.38 2.38 2.38
26-Dec-97 0 2.69 2.31 2.50
24-Dec-97 100 2.38 2.38 2.38
23-Dec-97 300 2.38 2.38 2.38
22-Dec-97 10,100 2.38 2.38 2.38
19-Dec-97 0 2.63 2.31 2.47
18-Dec-97 200 2.38 2.38 2.38
17-Dec-97 0 2.69 2.38 2.53
16-Dec-97 0 2.69 2.31 2.50
15-Dec-97 0 2.75 2.31 2.53
12-Dec-97 100 2.44 2.44 2.44
11-Dec-97 0 2.69 2.31 2.50
10-Dec-97 0 2.56 2.38 2.47
09-Dec-97 0 2.69 2.38 2.53
08-Dec-97 3,300 2.50 2.44 2.44
05-Dec-97 0 2.81 2.44 2.63
04-Dec-97 0 2.81 2.44 2.63
03-Dec-97 2,000 2.50 2.50 2.50
02-Dec-97 3,500 2.63 2.63 2.63
01-Dec-97 0 2.75 2.50 2.63
28-Nov-97 9,000 2.75 2.38 2.75
26-Nov-97 3,500 2.50 2.38 2.50
25-Nov-97 1,500 2.44 2.44 2.44
24-Nov-97 200 2.44 2.44 2.44
21-Nov-97 0 2.69 2.44 2.56
</TABLE>
<PAGE> 140
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
20-Nov-97 2,000 2.44 2.44 2.44
19-Nov-97 100 2.44 2.44 2.44
18-Nov-97 0 2.69 2.38 2.53
17-Nov-97 1,400 2.44 2.44 2.44
14-Nov-97 1,700 2.38 2.38 2.38
13-Nov-97 0 2.56 2.31 2.44
12-Nov-97 500 2.38 2.38 2.38
11-Nov-97 1,500 2.38 2.38 2.38
10-Nov-97 0 2.56 2.38 2.47
07-Nov-97 500 2.50 2.50 2.50
06-Nov-97 0 2.75 2.44 2.59
05-Nov-97 0 2.75 2.44 2.59
04-Nov-97 100 2.63 2.63 2.63
03-Nov-97 0 2.81 2.38 2.59
31-Oct-97 5,000 2.69 2.63 2.69
30-Oct-97 100 2.38 2.38 2.38
29-Oct-97 0 2.63 2.38 2.50
28-Oct-97 5,600 2.38 2.13 2.38
27-Oct-97 0 2.63 2.13 2.38
24-Oct-97 0 2.69 2.25 2.47
23-Oct-97 100 2.38 2.38 2.38
22-Oct-97 0 2.69 2.38 2.53
21-Oct-97 0 2.75 2.50 2.63
20-Oct-97 0 2.63 2.38 2.50
17-Oct-97 0 2.63 2.38 2.50
16-Oct-97 500 2.50 2.50 2.50
15-Oct-97 1,200 2.50 2.50 2.50
14-Oct-97 0 2.75 2.50 2.63
13-Oct-97 0 2.75 2.50 2.63
10-Oct-97 0 2.75 2.44 2.59
09-Oct-97 0 2.75 2.44 2.59
</TABLE>
<PAGE> 141
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
08-Oct-97 5,600 2.69 2.63 2.63
07-Oct-97 200 2.56 2.56 2.56
06-Oct-97 0 2.75 2.50 2.63
03-Oct-97 0 2.75 2.50 2.63
02-Oct-97 0 2.81 2.44 2.63
01-Oct-97 200 2.63 2.63 2.63
30-Sep-97 4,100 2.75 2.50 2.75
29-Sep-97 0 2.63 2.38 2.50
26-Sep-97 8,900 2.50 2.50 2.50
25-Sep-97 0 2.69 2.50 2.59
24-Sep-97 0 2.75 2.50 2.63
23-Sep-97 200 2.50 2.50 2.50
22-Sep-97 0 2.75 2.50 2.63
19-Sep-97 0 2.81 2.44 2.63
18-Sep-97 0 2.75 2.50 2.63
17-Sep-97 1,300 2.75 2.63 2.63
16-Sep-97 0 2.81 2.63 2.72
15-Sep-97 0 2.75 2.56 2.66
12-Sep-97 0 2.94 2.56 2.75
11-Sep-97 20,000 2.69 2.63 2.69
10-Sep-97 2,800 2.63 2.44 2.63
09-Sep-97 0 2.69 2.50 2.59
08-Sep-97 1,000 2.63 2.63 2.63
05-Sep-97 300 2.50 2.50 2.50
04-Sep-97 2,000 2.56 2.56 2.56
03-Sep-97 2,200 2.69 2.69 2.69
02-Sep-97 0 2.75 2.50 2.63
29-Aug-97 2,300 2.63 2.38 2.63
28-Aug-97 0 2.63 2.31 2.47
27-Aug-97 0 2.69 2.13 2.41
26-Aug-97 0 2.63 2.38 2.50
</TABLE>
<PAGE> 142
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
25-Aug-97 0 2.63 2.31 2.47
22-Aug-97 900 2.50 2.50 2.50
21-Aug-97 0 2.69 2.44 2.56
20-Aug-97 0 2.69 2.44 2.56
19-Aug-97 0 2.69 2.50 2.59
18-Aug-97 0 2.75 2.50 2.63
15-Aug-97 0 2.75 2.44 2.59
14-Aug-97 0 2.69 2.50 2.59
13-Aug-97 0 2.69 2.44 2.56
12-Aug-97 100 2.63 2.63 2.63
11-Aug-97 0 2.69 2.50 2.59
08-Aug-97 0 2.75 2.50 2.63
07-Aug-97 500 2.63 2.63 2.63
06-Aug-97 14,100 2.63 2.63 2.63
05-Aug-97 0 2.94 2.56 2.75
04-Aug-97 0 2.75 2.50 2.63
01-Aug-97 600 2.63 2.63 2.63
31-Jul-97 1,400 2.63 2.63 2.63
30-Jul-97 0 2.81 2.50 2.66
29-Jul-97 600 2.69 2.69 2.69
28-Jul-97 500 2.75 2.75 2.75
25-Jul-97 900 2.81 2.81 2.81
24-Jul-97 5,800 2.94 2.94 2.94
23-Jul-97 900 2.69 2.63 2.69
22-Jul-97 400 2.31 2.31 2.31
21-Jul-97 0 2.50 2.25 2.38
18-Jul-97 100 2.31 2.31 2.31
17-Jul-97 100 2.31 2.31 2.31
16-Jul-97 0 2.50 2.31 2.41
15-Jul-97 10,700 2.31 2.13 2.25
14-Jul-97 500 2.19 2.19 2.19
</TABLE>
<PAGE> 143
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
11-Jul-97 100 2.31 2.31 2.31
10-Jul-97 0 2.44 2.06 2.25
09-Jul-97 0 2.50 2.00 2.25
08-Jul-97 0 2.44 2.13 2.28
07-Jul-97 500 2.38 2.31 2.31
03-Jul-97 0 2.63 2.13 2.38
02-Jul-97 4,000 2.44 2.44 2.44
01-Jul-97 2,000 2.31 2.31 2.31
30-Jun-97 200 2.31 2.31 2.31
27-Jun-97 0 2.69 2.31 2.50
26-Jun-97 0 2.56 2.31 2.44
25-Jun-97 1,600 2.31 2.31 2.31
24-Jun-97 1,600 2.44 2.31 2.31
23-Jun-97 300 2.44 2.38 2.38
20-Jun-97 1,100 2.44 2.38 2.44
19-Jun-97 0 2.44 2.19 2.31
18-Jun-97 0 2.50 2.19 2.34
17-Jun-97 100 2.13 2.13 2.13
16-Jun-97 0 2.63 2.13 2.38
13-Jun-97 5,400 2.25 2.25 2.25
12-Jun-97 0 2.44 2.13 2.28
11-Jun-97 0 2.44 2.13 2.28
10-Jun-97 0 2.50 2.13 2.31
09-Jun-97 15,000 2.25 2.25 2.25
06-Jun-97 10,000 2.13 2.13 2.13
05-Jun-97 0 2.31 2.13 2.22
04-Jun-97 100 2.13 2.13 2.13
03-Jun-97 3,100 2.13 2.13 2.13
02-Jun-97 0 2.25 2.06 2.16
30-May-97 0 2.25 2.06 2.16
29-May-97 15,800 2.19 2.19 2.19
</TABLE>
<PAGE> 144
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
28-May-97 3,500 2.06 2.00 2.06
27-May-97 1,400 2.06 2.06 2.06
23-May-97 2,200 2.13 2.06 2.06
22-May-97 200 2.19 2.19 2.19
21-May-97 23,900 2.19 2.13 2.19
20-May-97 25,500 2.13 2.00 2.13
19-May-97 1,500 1.75 1.56 1.75
16-May-97 0 1.75 1.50 1.63
15-May-97 400 1.56 1.56 1.56
14-May-97 100 1.56 1.56 1.56
13-May-97 0 1.69 1.56 1.63
12-May-97 100 1.56 1.56 1.56
09-May-97 500 1.56 1.56 1.56
08-May-97 200 1.63 1.63 1.63
07-May-97 100 1.63 1.63 1.63
06-May-97 100 1.63 1.63 1.63
05-May-97 0 1.75 1.31 1.53
02-May-97 0 1.75 1.31 1.53
01-May-97 1,000 1.69 1.63 1.69
30-Apr-97 3,400 1.69 1.63 1.69
29-Apr-97 1,700 1.69 1.56 1.69
28-Apr-97 0 1.69 1.50 1.59
25-Apr-97 0 1.75 1.50 1.63
24-Apr-97 500 1.56 1.56 1.56
23-Apr-97 0 1.88 1.56 1.72
22-Apr-97 0 1.69 1.56 1.63
21-Apr-97 0 1.69 1.50 1.59
18-Apr-97 1,200 1.56 1.56 1.56
17-Apr-97 3,500 1.81 1.63 1.63
16-Apr-97 0 1.81 1.69 1.75
15-Apr-97 0 1.81 1.69 1.75
</TABLE>
<PAGE> 145
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
14-Apr-97 200 1.69 1.69 1.69
11-Apr-97 0 1.81 1.56 1.69
10-Apr-97 0 1.81 1.69 1.75
09-Apr-97 0 1.88 1.56 1.72
08-Apr-97 0 1.81 1.63 1.72
07-Apr-97 800 1.75 1.75 1.75
04-Apr-97 200 1.75 1.75 1.75
03-Apr-97 2,000 1.75 1.75 1.75
02-Apr-97 1,000 1.81 1.75 1.75
01-Apr-97 0 1.81 1.69 1.75
31-Mar-97 3,000 1.81 1.81 1.81
27-Mar-97 800 1.69 1.69 1.69
26-Mar-97 0 1.81 1.69 1.75
25-Mar-97 700 1.75 1.69 1.69
24-Mar-97 0 1.94 1.75 1.84
21-Mar-97 500 1.69 1.69 1.69
20-Mar-97 0 1.88 1.69 1.78
19-Mar-97 0 1.94 1.69 1.81
18-Mar-97 1,100 1.69 1.69 1.69
17-Mar-97 400 1.75 1.69 1.75
14-Mar-97 2,300 1.75 1.75 1.75
13-Mar-97 0 1.88 1.69 1.78
12-Mar-97 500 1.75 1.75 1.75
11-Mar-97 0 1.94 1.69 1.81
10-Mar-97 1,500 1.88 1.81 1.81
07-Mar-97 0 2.06 1.88 1.97
06-Mar-97 1,800 2.00 2.00 2.00
05-Mar-97 200 1.88 1.88 1.88
04-Mar-97 13,200 1.94 1.75 1.94
03-Mar-97 3,000 1.94 1.94 1.94
28-Feb-97 17,500 1.88 1.81 1.88
</TABLE>
<PAGE> 146
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
27-Feb-97 1,400 1.88 1.81 1.81
26-Feb-97 0 1.88 1.69 1.78
25-Feb-97 300 1.75 1.75 1.75
24-Feb-97 5,000 1.88 1.75 1.88
21-Feb-97 0 1.88 1.69 1.78
20-Feb-97 5,200 1.81 1.75 1.75
19-Feb-97 0 1.88 1.69 1.78
18-Feb-97 5,500 1.81 1.75 1.75
14-Feb-97 0 1.94 1.69 1.81
13-Feb-97 5,000 1.88 1.88 1.88
12-Feb-97 0 1.88 1.69 1.78
11-Feb-97 1,400 1.75 1.75 1.75
10-Feb-97 1,300 1.81 1.75 1.75
07-Feb-97 1,400 1.69 1.69 1.69
06-Feb-97 0 1.75 1.56 1.66
05-Feb-97 10,200 1.63 1.56 1.63
04-Feb-97 0 1.75 1.50 1.63
03-Feb-97 900 1.63 1.63 1.63
31-Jan-97 3,500 1.75 1.63 1.75
30-Jan-97 4,200 1.69 1.56 1.69
29-Jan-97 1,100 1.69 1.69 1.69
28-Jan-97 100 1.69 1.69 1.69
27-Jan-97 0 1.75 1.63 1.69
24-Jan-97 0 1.75 1.63 1.69
23-Jan-97 0 1.75 1.56 1.66
22-Jan-97 2,500 1.75 1.75 1.75
21-Jan-97 2,400 1.63 1.63 1.63
20-Jan-97 100 1.69 1.69 1.69
17-Jan-97 0 1.81 1.63 1.72
16-Jan-97 0 1.88 1.63 1.75
15-Jan-97 3,000 1.75 1.75 1.75
</TABLE>
<PAGE> 147
Class B
Daily Price and Volume Since 1/1/97
<TABLE>
<CAPTION>
Date Volume High Low Close
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
14-Jan-97 2,200 1.63 1.63 1.63
13-Jan-97 7,900 1.69 1.63 1.69
10-Jan-97 500 1.63 1.63 1.63
09-Jan-97 0 1.69 1.56 1.63
08-Jan-97 4,100 1.69 1.69 1.69
07-Jan-97 0 1.88 1.75 1.81
06-Jan-97 0 1.94 1.75 1.84
03-Jan-97 2,100 1.88 1.75 1.88
02-Jan-97 0 1.94 1.69 1.81
Average 1,345 $2.70 $2.54 $2.63
</TABLE>
<PAGE> 1
EXHIBIT 17(b)(10)
- --------------------------------------------------------------------------------
Information for:
Special Committee of the Board of Directors of
[UNITED FOODS LOGO]
October 5, 1998
[J.C. BRADFORD & CO. LOGO]
330 Commerce Street
Nashville, TN 37201
(800)522-4750
- --------------------------------------------------------------------------------
<PAGE> 2
Table of Contents
- --------------------------------------------------------------------------------
I. Fairness Issues
II. Comparable Company Analysis
III. Comparable Transaction Analysis
IV. Discounted Cash Flow Analysis
V. Trading and Equity Analysis
<PAGE> 3
Fairness Issues
- Market value is below book value
- Comparable companies trade higher as a multiple of EBITDA
- Cash compensation is high compared to comparable companies,
and while there is a basis for this, add back analysis should
be considered
- Commodity-based business and inability to forecast
- Illiquidity of stock
- Limited growth opportunities, i.e. mature market
- Shrinking margins in frozen food business
- Lack of realistic alternatives to this deal
1
<PAGE> 4
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Comparable Company Summary Valuation
Overall Adjusted Average Multiples
(In thousands)
Price to Trailing Earnings Multiple Basis:
<TABLE>
<S> <C>
LTM earnings ended 8/31/98 $ 779
Adjusted Average Multiple 15.76 x
-------------
Valuation $ 12,281
-------------
Valuation per Share(1) $ 1.80
-------------
</TABLE>
Price to Calendar 1998 Earnings Multiple Basis:
<TABLE>
<S> <C>
Estimated earnings ended 12/31/98 $ 581
Adjusted Average Multiple 16.44 x
-------------
Valuation $ 9,549
-------------
Valuation per Share(1) $ 1.40
-------------
</TABLE>
Price to Calendar 1999 Earnings Multiple Basis:(2)
<TABLE>
<S> <C>
Estimated earnings ended 12/31/99 $ 627
Adjusted Average Multiple 13.47 x
-------------
Valuation $ 8,445
-------------
Valuation per Share(1) $ 1.24
-------------
</TABLE>
LTM EBITDA Multiple Basis:
<TABLE>
<S> <C>
LTM EBITDA ended 8/31/98 $ 12,842
Adjusted Average Multiple 8.07 x
-------------
103,654
Less total debt, net of cash on 8/31/98 42,622
-------------
Valuation $ 61,032
-------------
Valuation per Share(1) $ 8.96
-------------
</TABLE>
LTM Revenues Multiple Basis:
<TABLE>
<S> <C>
LTM Revenues ended 8/31/98 $ 201,367
Adjusted Average Multiple 0.71 x
-------------
142,697
Less total debt, net of cash on 8/31/98 42,622
-------------
Valuation $ 100,075
-------------
Valuation per Share(1) $ 14.70
-------------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(2) Based on 0% growth, base case projection.
2
<PAGE> 5
Comparable Company Analysis
Price to Calendar 1999 Earnings Multiple Basis:
Valuation Per Share (1)
Adjusted Average Multiple 13.47x
<TABLE>
<CAPTION>
Projected No Expenses $500,000 of Expenses
Growth Rate Added Back Added Back
----------- ---------- ----------
<S> <C> <C>
0.0% $ 1.24 $ 2.11
2.5% $ 1.55 $ 2.73
5.0% $ 1.86 $ 3.05
</TABLE>
(1) Based on 6.8 million shares outstanding.
3
<PAGE> 6
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Comparable Company Market Multiples
<TABLE>
<CAPTION>
5-Year
LTM LTM Cal. 1998 Cal. 1999 Projected 52 Week
Company Ticker End EPS Est. EPS Est. EPS (1) Growth Rate High Low
<S> <C> <C> <C> <C> <C> <C> <C> <C>
United Foods UFD.A Aug 98 0.09 0.09 0.09 NA 4.00 2.06
Chiquita Brands Intl. CQB Jun 98 $(0.40) $0.79 $1.10 10.0% $ 18.13 $10.25
Dean Foods Co. DF Aug 98 2.62 2.64 2.92 13.8% 60.69 40.50
Fresh America Corp. FRES Jul 98 1.24 1.59 1.96 25.0% 27.88 11.63
Hanover Foods Corp. 3HNFSA May 98 11.62 NA NA NA 100.00 36.25
Mccormick & Co. MCCRK Aug 98 1.37 1.47 1.64 9.5% 36.44 22.75
Michael Foods, Inc. MIKL (2) Jun 98 1.76 1.82 2.05 12.0% 31.13 19.75
Performance Food Group Co. PFGC Jun 98 1.08 1.22 1.47 17.5% 26.25 15.63
Seneca Foods Corp. SENEB Jun 98 (1.35) NA NA NA 18.50 12.00
Smithfield Companies, Inc. HAMS Jun 98 0.46 NA NA NA 8.25 5.38
Smucker (Jm) Co. SJM.A Jul 98 1.26 1.30 1.44 NA 30.00 21.06
Sylvan, Inc. SYLN Jun 98 1.08 1.13 1.30 15.0% 18.75 11.75
Tyson Foods, Inc. TSN Jun 98 0.73 0.93 1.41 12.0% 24.75 16.31
Vlasic Foods International VL Jul 97 1.27 0.74 1.14 12.0% 27.00 13.69
<CAPTION>
Based on closing stock price as of 10/1/98
----------------------------------------------------
Price/ Price/ Cal. 1998 Cal. 1999
Price Price/ Cal. 1998 Cal. 1999 PE/ PE/
Company per Share LTM EPS Est. EPS Est. EPS Growth Rate Growth Rate
<S> <C> <C> <C> <C> <C> <C>
United Foods 2.81 31.3 31.3 31.3 NM NM
Chiquita Brands Intl. $10.56 NM x 13.4 x 9.6 x 133.7% 96.0%
Dean Foods Co. 44.00 16.8 16.7 15.1 120.8% 109.1%
Fresh America Corp. 12.00 9.7 7.6 6.1 30.2% 24.5%
Hanover Foods Corp. 57.00 4.9 NA NA NM NM
Mccormick & Co. 29.00 21.2 19.7 17.6 207.1% 185.7%
Michael Foods, Inc. 23.25 13.2 12.8 11.3 106.5% 94.5%
Performance Food Group Co. 21.50 19.9 17.6 14.7 100.5% 83.7%
Seneca Foods Corp. 12.00 NM NA NA NM NM
Smithfield Companies, Inc. 7.50 16.3 NA NA NM NM
Smucker (Jm) Co. 22.06 17.5 17.0 15.3 NM NM
Sylvan, Inc. 13.50 12.5 11.9 10.4 79.6% 69.2%
Tyson Foods, Inc. 21.06 28.9 22.5 15.0 187.8% 124.7%
Vlasic Foods International 18.81 14.8 25.3 16.4 211.2% 136.9%
------------------------------------------------------------------
Median: 16.3 x 16.8 x 14.8 x 120.8% 96.0%
Average: 16.0 16.4 13.2 130.8% 102.7%
Adjusted Average (excludes high and low): 15.8 16.4 13.5 133.7% 102.0%
------------------------------------------------------------------
</TABLE>
(1) When calendar 1999 EPS Multiple is not available it is approximated using
company's 5-year projected growth rate.
(2) MIKL LTM EPS excludes $0.11/sh losses from extraordinary items.
4
<PAGE> 7
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Comparable Company Market Capitalization Multiples
<TABLE>
<CAPTION>
(In thousands)
Total Total
10/1/98 Number of Total Debt, Market
Company Ticker Price Shares Equity Net of Cash Capital
<S> <C> <C> <C> <C> <C> <C>
United Foods UFD.A 2.81 6,810 19,153 42,622 61,775
Chiquita Brands Intl. CQB $10.56 65,369 $ 690,297 987,630 $1,677,927
Dean Foods Co. DF (1) 44.00 39,970 1,758,680 544,060 2,302,740
Fresh America Corp. FRES 12.00 4,864 58,368 20,480 78,848
Hanover Foods Corp. 3HNFSA 57.00 717 40,869 33,755 74,624
Mccormick & Co. MCCRK 29.00 73,404 2,128,716 503,410 2,632,126
Michael Foods, Inc. MIKL (2) 23.25 21,963 510,640 136,808 647,448
Performance Food Group Co. PFGC 21.50 12,549 269,804 73,881 343,685
Seneca Foods Corp. SENEB 12.00 5,985 71,820 318,358 390,178
Smithfield Companies, Inc. HAMS 7.50 2,343 17,573 (6,820) 10,753
Smucker (Jm) Co. SJM.A (3) 22.06 29,127 642,614 (7,052) 635,562
Sylvan, Inc. SYLN 13.50 6,452 87,102 27,767 114,869
Tyson Foods, Inc. TSN 21.06 231,154 4,868,681 2,066,600 6,935,281
Vlasic Foods International VL 18.81 45,455 855,122 561,747 1,416,869
<CAPTION>
LTM Market Market
Total LTM Cap./ Cap./
Revenues EBITDA EBITDA Revenues
<S> <C> <C> <C> <C>
Company
United Foods 201,367 12,842 4.8 0.31
Chiquita Brands Intl. $2,617,491 $200,219 8.4 x 0.64 x
Dean Foods Co. 2,941,082 239,662 9.6 0.78
Fresh America Corp. 440,836 12,153 6.5 0.18
Hanover Foods Corp. 260,621 22,218 3.4 0.29
Mccormick & Co. 1,852,422 242,604 10.8 1.42
Michael Foods, Inc. 1,012,218 106,802 6.1 0.64
Performance Food Group Co. 1,410,929 34,725 9.9 0.24
Seneca Foods Corp. 701,636 43,724 8.9 0.56
Smithfield Companies, Inc. 19,725 1,771 6.1 0.55
Smucker (Jm) Co. 568,587 77,583 8.2 1.12
Sylvan, Inc. 85,041 17,253 6.7 1.35
Tyson Foods, Inc. 7,007,500 635,300 10.9 0.99
Vlasic Foods International 1,357,274 111,355 12.7 1.04
Median: 8.4 x 0.64 x
Average: 8.3 0.75
Adjusted Average (excludes high and low): 8.1 0.71
</TABLE>
(1) DF LTM EBITDA is estimated as a percent of sales.
(2) MIKL LTM EBITDA is estimated as a percent of sales.
(3) SJM.A LTM EBITDA is estimated as a percent of sales.
5
<PAGE> 8
Comparable Company Analysis
United Foods, Inc. grows, processes, markets and distributes food products. The
Company's products include frozen asparagus, black-eyed peas, broccoli,
Brussel sprouts, carrots, cauliflower, corn, green beans, green peas,
green peppers, lima beans, various vegetable mixes and other
vegetables. United's products are sold to large national grocery chains
and independent food stores.
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
[CHART]
6
<PAGE> 9
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
[CHART] [CHART]
[CHART] [CHART]
7
<PAGE> 10
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
[CHART] [CHART]
[CHART] [CHART]
8
<PAGE> 11
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
[CHART] [CHART]
[CHART] [CHART]
9
<PAGE> 12
Comparable Company Analysis
FOOD DISTRIBUTION INDUSTRY
Daily Price & Volume Trading Statistics Since 12/31/97
[CHART]
10
<PAGE> 13
Comparable Company Analysis
- Description of Comparable Companies
Chiquita Brands International, Inc. produces, markets and distributes
bananas and other fresh and processed food products sold under
the "Chiquita" brand name. The Company's fresh products
include mangoes, kiwi and citrus and other tropical fruit.
Chiquita also produces private-label and branded canned
vegetable and related products, fruit and vegetable juices and
other products.
Dean Foods Company processes, distributes and sell dairy, pickle,
specialty and vegetable products. Many of the Company's
products are sold under private labels. Dean's products
include milk, ice cream and extended shelf-life dairy
products; salad dressings, dips and puddings; and pickles,
relishes and canned vegetables. The Company also operates a
trucking business.
Fresh America Corporation is an integrated food distribution management
company for fresh produce and other perishable refrigerated
products. The Company operates in 43 states and Canada through
22 distribution centers. Fresh America operates produce
departments in 342 "Sam's Club" stores. "Sam's" is a division
of Wal-Mart Stores, Inc.
Hanover Foods Corporation processes vegetable products. The Company
grows, processes, cans, freezes, freeze-dries, packages,
markets and distributes its products under its own trademarks,
as well as other branded, customer and private labels. Hanover
operates in the United States.
11
<PAGE> 14
Comparable Company Analysis
- Description of Comparable Companies
McCormick & Company Incorporated is a specialty food company. The
Company manufactures spices, seasonings, flavorings, and other
specialty food products and sells such products to the retail
food market, the food service market and to industrial food
processors throughout the world. McCormick, through its
subsidiaries, also manufactures and markets plastic and
packaging products.
Michael Foods, Inc. is a diversified food processor and distributor
with interests in eggs and egg products, refrigerated case
products, frozen and refrigerated potato products and dairy
products. The Company sells these items to supermarkets, food
service distributors, manufacturers and fast food operators in
Minnesota and surrounding states.
Performance Food Group Co. markets and distributes food and
food-related products to restaurants, hotels, cafeterias,
schools and hospitals in the United States. The Company's
items include private label food products, canned and dry
groceries, poultry, meats, seafood, fresh produce, paper and
cleaning supplies and restaurant equipment.
Seneca Foods Corporation is primarily a fruit and vegetable processing
company with manufacturing facilities located throughout the
United States. The Company's products are sold under the
"Seneca," "Libby's," and "TreeSweet" labels, as well as
through the private label and industrial markets. Seneca also,
under alliance with The Pillsbury Company, produces canned and
frozen vegetables.
12
<PAGE> 15
Comparable Company Analysis
- Description of Comparable Companies
The Smithfield Companies, Inc. produces and markets a wide range of
branded food products to the retail grocery and food service
industries. The Company's products include frozen barbecues
and chilies, cured hams and other pork products, peanuts and
cashews. Smithfield's products are sold on a wholesale basis,
through catalogs and through its retail stores.
The J.M. Smucker Company manufactures and markets food products on a
worldwide basis. The Company's principal products include
fruit spreads, dessert toppings, peanut butter, industrial
fruit products, fruit and vegetable juices, juice beverages,
syrups, condiments and gift packages. Smucker's products are
marketed under trademarks such as "Smucker's," "Simply Fruit"
and "Goober."
Sylvan Inc. produces and distributes mushroom spawn and fresh
mushrooms. The Company also distributes a variety of other
value-added products and services for use by mushroom growers
and produces fresh mushrooms for sale to retailers,
distributors and processors of mushroom products in the United
States. Sylvan operates in the United States, Europe and
Australia.
Tyson Foods, Inc. produces, markets and distributes a variety of food
products. The Company's products include value-enhanced
poultry, fresh and frozen poultry, value-enhanced seafood
products, fresh and frozen seafood products, prepared foods
and other products such as flour and corn tortillas and chips.
Tyson also has live swine, animal feed and pet food ingredient
operations.
13
<PAGE> 16
Comparable Company Analysis
- Description of Comparable Companies
Vlasic Foods International manufactures and markets branded convenience
food products in the frozen food, grocery product, and
agricultural product segments. The Company's products include
"Swanson" and "Freshbake" frozen foods, "Vlasic" pickles and
condiments, "Open Pit" barbecue sauce, and other brands.
Vlasic's products are sold in the United States and other
countries.
14
<PAGE> 17
Comparable Transaction Analysis
UNITED FOODS, INC.
Comparable Transaction Summary Valuation
Food Distribution Companies*
(In 000s, except per share)
Price to Trailing Earnings Multiple Basis:
<TABLE>
<S> <C> <C>
LTM earnings ended 2/28/99 $ 779
Adjusted Average Multiple 23.9 x
-------
Valuation $18,586
-------
Valuation Per Share(1) $ 2.73
-------
</TABLE>
LTM EBIT Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBIT ended 2/28/99 $ 5,443
Adjusted Average Multiple 16.4 x
-------
89,062
Less total debt, net of cash on 2/28/99 42,622
-------
Valuation $46,440
-------
Valuation Per Share(1) $ 6.82
-------
</TABLE>
LTM EBITDA Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBITDA ended 2/28/99 $ 12,842
Adjusted Average Multiple 12.4 x
--------
159,571
Less total debt, net of cash on 2/28/99 42,622
--------
Valuation $116,949
--------
Valuation Per Share(1) $ 17.17
--------
</TABLE>
LTM Revenues Multiple Basis:
<TABLE>
<S> <C> <C>
LTM Revenues ended 2/28/99 $201,367
Adjusted Average Multiple 1.1 x
--------
223,945
Less total debt, net of cash on 2/28/99 42,622
--------
Valuation $181,323
--------
Valuation Per Share(1) $ 26.63
--------
</TABLE>
Book Value Multiple Basis:
<TABLE>
<S> <C> <C>
Book Value at 8/31/98 $ 45,518
Adjusted Average Multiple 3.7 x
--------
Valuation $167,835
Valuation Per Share $ 24.65
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
15
<PAGE> 18
Comparable Transaction Analysis
UNITED FOODS, INC.
Comparable Transaction Summary Valuation
Multiples Based on Agrilink Acquisition of Dean Foods Vegetable Division
(In 000s, except per share)
LTM Revenues Multiple Basis:
<TABLE>
<S> <C> <C>
LTM Revenues ended 2/28/99 $201,367
Transaction Multiple 0.8 x
--------
156,395
Less total debt, net of cash on 2/28/99 42,622
--------
Valuation $113,773
--------
Valuation Per Share $ 16.71
--------
</TABLE>
LTM EBIT Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBIT ended 2/28/99 $ 5,443
Transaction Multiple 11.4 x
--------
61,876
Less total debt, net of cash on 2/28/99 42,622
--------
Valuation $ 19,254
--------
Valuation Per Share $ 2.83
--------
</TABLE>
16
<PAGE> 19
Comparable Transaction Analysis
FOOD DISTRIBUTION COMPANIES* (Dollars in millions)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
Aggreg. Equity Consid.
as a Multiple of:
Aggregate Levered ----------------------
Date Equity Aggregate LTM Net Book
Announced Acquiror / Target Consideration Consideration(2) Income Value
- --------- -------------------------------- ------------- ---------------- ------ -----
<S> <C> <C> <C> <C> <C>
06/07/90 ConAgra Inc $1,336.0 $3,294.0 NM 1.5
Beatrice Co
09/28/90 Shareholders $1,607.0 $1,607.0 73.4 2.0
Pet Inc(Whitman Corp)
10/19/90 MANO Holdings $ 42.5 $ 42.5 17.0 3.0
B Manischewitz Co
04/19/91 ConAgra Inc $ 408.4 $ 408.4 20.8 3.8
Golden Valley Microwave Foods
07/18/91 HJ Heinz Co $ 500.0 $ 500.0 NA NA
JL Foods Inc(John Labatt Ltd)
12/20/91 CPC International Inc $ 115.0 $ 115.0 NA NA
Fearn Intl(Kellogg Co)
01/24/92 Burns Philp Inc $ 85.0 $ 85.0 NA NA
Durkee-French Foods(Burns)
04/09/92 Ben Hill Griffin Inc $ 31.0 $ 31.0 NM 0.7
Orange-co(Stoneridge Res Inc)
04/22/92 Shareholders $ 181.1 $ 181.1 9.2 2.4
Ralston-Continental Baking
10/12/92 Dean Foods Co $ 15.0 $ 15.0 NM 1.2
WB Roddenbery Co
08/12/93 Pro-Fac Cooperative Inc $ 164.2 $ 431.2 NM 2.0
Curtice-Burns Foods(Pro-Fac)
08/16/93 Shareholders $ 528.0 $ 528.0 NA NA
Ralcorp Holdings Inc(Ralston)
11/01/93 Dean Foods Co $ 140.0 $ 140.0 23.3 NA
Kraft General Foods-Birds Eye
<CAPTION>
Levered Aggregate Consideration
as a Multiple of:
-------------------------------
Date LTM LTM LTM Percent
Announced Acquiror / Target Revenue EBITDA EBIT Acquired
- --------- -------------------------------- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C>
06/07/90 ConAgra Inc 0.8 6.9 9.6 100.0%
Beatrice Co
09/28/90 Shareholders 0.9 5.5 6.7 100.0%
Pet Inc(Whitman Corp)
10/19/90 MANO Holdings 1.2 8.5 10.1 100.0%
B Manischewitz Co
04/19/91 ConAgra Inc 2.3 19.1 30.0 100.0%
Golden Valley Microwave Foods
07/18/91 HJ Heinz Co 1.1 NA NA 100.0%
JL Foods Inc(John Labatt Ltd)
12/20/91 CPC International Inc 1.2 NA NA 100.0%
Fearn Intl(Kellogg Co)
01/24/92 Burns Philp Inc 0.4 NA NA 100.0%
Durkee-French Foods(Burns)
04/09/92 Ben Hill Griffin Inc 0.5 NM NM 52.3%
Orange-co(Stoneridge Res Inc)
04/22/92 Shareholders 0.2 NA 3.5 55.0%
Ralston-Continental Baking
10/12/92 Dean Foods Co 0.3 NM NM 100.0%
WB Roddenbery Co
08/12/93 Pro-Fac Cooperative Inc 0.5 20.5 NM 100.0%
Curtice-Burns Foods(Pro-Fac)
08/16/93 Shareholders 0.7 NA NA 100.0%
Ralcorp Holdings Inc(Ralston)
11/01/93 Dean Foods Co 0.6 NA NA 100.0%
Kraft General Foods-Birds Eye
</TABLE>
17
<PAGE> 20
Comparable Transaction Analysis
FOOD DISTRIBUTION COMPANIES* (Dollars in millions)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
Aggreg. Equity Consid.
as a Multiple of:
Aggregate Levered ----------------------
Date Equity Aggregate LTM Net Book
Announced Acquiror / Target Consideration Consideration(2) Income Value
- --------- -------------------------------- ------------- --------------- -------- -----
<S> <C> <C> <C> <C> <C>
03/18/94 Doskocil Cos Inc $ 135.0 $ 135.0 NA NA
Intl Multifoods-Prepared Foods
04/18/94 ConAgra Inc $ 202.0 $ 202.0 NA NA
Universal Foods-Frozen Foods
04/20/94 Schreiber Foods Inc $ 11.8 $ 11.8 16.9 2.8
Arden International Kitchens
05/23/94 Sandoz AG $3,685.7 $3,685.7 32.3 10.1
Gerber Products Co
09/12/94 Kohlberg Kravis Roberts & Co $2,222.9 $4,622.9 NM 8.6
Borden Inc
11/28/94 Campbell Soup Co $1,115.0 $1,115.0 24.8 18.3
Pace Foods
01/09/95 Pillsbury Co(Grand Met PLC) $2,636.5 $2,636.5 23.4 7.3
Pet Inc(Pillsbury/Grand Met)
07/26/95 Shareholders $ 309.8 $ 309.8 NM 0.5
Earthgrains Co(Anheuser-Busch)
03/15/96 ConAgra Inc $ 132.0 $ 132.0 NA NA
Gilroy Foods Inc
06/30/97 JP Foodservice Inc $ 770.6 $1,510.6 NM 2.3
Rykoff-Sexton Inc
09/09/97 Shareholders $1,004.8 $1,004.8 NA NA
Campbell Soup-Noncore Bus(7)
09/18/97 Chiquita Brands International $ 10.9 $ 42.9 NM 1.8
Stokely USA Inc
09/29/97 Suiza Foods Corp $ 855.9 $1,035.9 47.0 8.6
Morningstar Group Inc
<CAPTION>
Levered Aggregate Consideration
as a Multiple of:
-------------------------------
Date LTM LTM LTM Percent
Announced Acquiror / Target Revenue EBITDA EBIT Acquired
- --------- -------------------------------- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C>
03/18/94 Doskocil Cos Inc 0.7 NA NA 100.0%
Intl Multifoods-Prepared Foods
04/18/94 ConAgra Inc NA NA NA NA
Universal Foods-Frozen Foods
04/20/94 Schreiber Foods Inc 0.6 5.6 10.7 100.0%
Arden International Kitchens
05/23/94 Sandoz AG 3.1 16.3 20.0 100.0%
Gerber Products Co
09/12/94 Kohlberg Kravis Roberts & Co 0.8 NA 40.1 100.0%
Borden Inc
11/28/94 Campbell Soup Co 4.8 23.7 26.3 100.0%
Pace Foods
01/09/95 Pillsbury Co(Grand Met PLC) 1.7 10.0 12.2 100.0%
Pet Inc(Pillsbury/Grand Met)
07/26/95 Shareholders 0.2 NA NM 100.0%
Earthgrains Co(Anheuser-Busch)
03/15/96 ConAgra Inc 0.7 NA NA 100.0%
Gilroy Foods Inc
06/30/97 JP Foodservice Inc 2.9 NM NM 100.0%
Rykoff-Sexton Inc
09/09/97 Shareholders 0.7 NA NA 100.0%
Campbell Soup-Noncore Bus(7)
09/18/97 Chiquita Brands International 0.2 NM NM 100.0%
Stokely USA Inc
09/29/97 Suiza Foods Corp 2.1 NA 26.6 100.0%
Morningstar Group Inc
</TABLE>
18
<PAGE> 21
Comparable Transaction Analysis
FOOD DISTRIBUTION COMPANIES* (Dollars in millions)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
Aggreg. Equity Consid.
as a Multiple of:
Aggregate Levered ----------------------
Date Equity Aggregate LTM Net Book
Announced Acquiror / Target Consideration Consideration (2) Income Value
- --------- ------------------------------ ------------- ----------------- ------- -----
<S> <C> <C> <C> <C> <C>
10/01/97 Chiquita Brands International $ 27.0 $ 29.0 7.5 1.1
American Fine Foods Inc
02/18/98 Agrilink Foods(Pro-Fac) $ 6.9 $ 6.9 NA NA
Delagra Corp
05/08/98 Agrobios(Desc SA de CV) $141.9 $141.9 NM 3.5
Authentic Specialty Foods Inc
07/21/98 Agrilink Foods(Pro-Fac) NA NA NA NA
JA Hopay Distributing Co
07/27/98 Agrilink Foods(Pro-Fac) $480.0 $482.0 NA NA
Dean Foods Co-Vegetable Ops
------------------
Average: 26.9 4.3
Adjusted Average 23.9 3.7
------------------
<CAPTION>
Levered Aggregate Consideration
as a Multiple of:
-------------------------------
Date LTM LTM LTM Percent
Announced Acquiror / Target Revenue EBITDA EBIT Acquired
- --------- ------------------------------ ------- ------ ---- --------
<S> <C> <C> <C> <C> <C>
10/01/97 Chiquita Brands International 0.4 NA NA 100.0%
American Fine Foods Inc
02/18/98 Agrilink Foods(Pro-Fac) NA NA NA 100.0%
Delagra Corp
05/08/98 Agrobios(Desc SA de CV) 3.8 NM NM 100.0%
Authentic Specialty Foods Inc
07/21/98 Agrilink Foods(Pro-Fac) NA NA NA 100.0%
JA Hopay Distributing Co
07/27/98 Agrilink Foods(Pro-Fac) 0.8 NA 11.4 100.0%
Dean Foods Co-Vegetable Ops
-------------------------
Average: 1.2 12.9 17.3
Adjusted Average 1.1 12.4 16.4
-------------------------
</TABLE>
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/1/98.
(2) Levered aggregate consideration is defined as aggregate equity consideration
plus total debt, net of cash and equivalents.
19
<PAGE> 22
Comparable Transaction Analysis
UNITED FOODS, INC.
Comparable Transaction Summary Valuation
Frozen Food Distribution Companies*
(In 000s, except per share)
Price to Trailing Earnings Multiple Basis:
<TABLE>
<S> <C> <C>
LTM earnings ended 2/28/99 $ 779
Adjusted Average Multiple 20.1 x
-------
Valuation $15,657
-------
Valuation Per Share(1) $ 2.30
-------
</TABLE>
LTM EBIT Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBIT ended 2/28/99 $ 5,443
Adjusted Average Multiple 11.0 x
-------
60,132
Less total debt, net of cash on 2/28/99 42,622
-------
Valuation $17,510
-------
Valuation Per Share(1) $ 2.57
-------
</TABLE>
LTM EBITDA Multiple Basis:
<TABLE>
<S> <C> <C>
LTM EBITDA ended 2/28/99 $12,842
Adjusted Average Multiple 5.6 x
-------
72,160
Less total debt, net of cash on 2/28/99 42,622
-------
Valuation $29,538
-------
Valuation Per Share(1) $ 4.34
-------
</TABLE>
LTM Revenues Multiple Basis:
<TABLE>
<S> <C> <C>
LTM Revenues ended 2/28/99 $201,367
Adjusted Average Multiple 0.7 x
--------
139,124
Less total debt, net of cash on 2/28/99 42,622
--------
Valuation $ 96,502
--------
Valuation Per Share(1) $ 14.17
--------
</TABLE>
Book Value Multiple Basis:
<TABLE>
<S> <C> <C>
Book Value at 8/31/98 $ 45,518
Adjusted Average Multiple 2.8 x
--------
Valuation $127,884
Valuation Per Share(1) $ 18.78
--------
</TABLE>
(1) Based on 6.8 million shares outstanding.
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
20
<PAGE> 23
Comparable Transaction Analysis
FROZEN FOOD DISTRIBUTION COMPANIES* (Dollars in millions)
Analysis of M&A Transaction Multiples Since 1/1/90
<TABLE>
<CAPTION>
Aggreg. Equity Consid.
as a Multiple of:
Aggregate Levered ---------------------
Date Equity Aggregate LTM Net Book
Announced Acquiror / Target Consideration Consideration (2) Income Value
- --------- ----------------------------------- ------------- ----------------- ------- -----
<S> <C> <C> <C> <C> <C>
07/18/91 HJ Heinz Co $500.0 $500.0 NA NA
JL Foods Inc(John Labatt Ltd)
11/01/93 Dean Foods Co $140.0 $140.0 23.3 NA
Kraft General Foods-Birds Eye
04/20/94 Schreiber Foods Inc $ 11.8 $ 11.8 16.9 2.8
Arden International Kitchens
02/18/98 Agrilink Foods(Pro-Fac) $ 6.9 $ 6.9 NA NA
Delagra Corp
07/21/98 Agrilink Foods(Pro-Fac) NA NA NA NA
JA Hopay Distributing Co
07/27/98 Agrilink Foods(Pro-Fac) $480.0 $482.0 NA NA
Dean Foods Co-Vegetable Ops
-----------------
Average: 20.1 2.8
Adjusted Average 20.1 2.8
-----------------
<CAPTION>
Levered Aggregate Consideration
as a Multiple of:
-------------------------------
Date LTM LTM LTM Percent
Announced Acquiror / Target Revenue EBITDA EBIT Acquired
- --------- ----------------------------------- ------- ------ ---- --------
<S> <C> <C> <C> <C> <C>
07/18/91 HJ Heinz Co 1.1 NA NA 100.0%
JL Foods Inc(John Labatt Ltd)
11/01/93 Dean Foods Co 0.6 NA NA 100.0%
Kraft General Foods-Birds Eye
04/20/94 Schreiber Foods Inc 0.6 5.6 10.7 100.0%
Arden International Kitchens
02/18/98 Agrilink Foods(Pro-Fac) NA NA NA 100.0%
Delagra Corp
07/21/98 Agrilink Foods(Pro-Fac) NA NA NA 100.0%
JA Hopay Distributing Co
07/27/98 Agrilink Foods(Pro-Fac) 0.8 NA 11.4 100.0%
Dean Foods Co-Vegetable Ops
-------------------------
Average: 0.7 5.6 11.0
Adjusted Average 0.7 5.6 11.0
-------------------------
</TABLE>
(*) Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/2/98.
(2) Levered aggregate consideration is defined as aggregate equity consideration
plus total debt, net of cash and equivalents.
21
<PAGE> 24
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------ -------- -------- ----- --------- ------ -------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/7/90 8/14/90 ConAgra Inc Beatrice Co $1,336.0 $3,294.0 -- -- $864.0 $4,310.0 $11.0 $343.0 $478.0
Advisor Gleacher & Co Salomon Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- ------ --------------
<S> <C> <C> <C> <C>
6/7/90 $1,016.0 $3,472.0 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Beatrice from Kohlberg Kravis Roberts (KKR) for $3.294
bil in cash, common stock, preferred stock, and the assumption of
Beatrice's liabilities. The consideration consisted of $626 mil in
cash, $355 mil in common stock and $355 mil in 2 series of preferred
stock plus the assumption of $1.958 bil of Beatrice's liabilities. The
deal had been subject to governmental approval due to antitrust issues.
Gleacher acted as financial advisor to ConAgra.
Target Business Description
---------------------------
Produce food, consumer prod
Acquiror Business Description
-----------------------------
Produce meats,eggs,cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/28/90 4/4/91 Shareholders Pet Inc(Whitman Corp) $1,607.0 $1,607.0 $15.63 102.8 $801.6 $1,863.2 $21.9 $241.5 $291.5
Advisor -- First Boston Corp.
-------
Company Status Priv. Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C>
9/28/90 $130.0 $1,531.4 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Whitman completed the spinoff of Pet for $1.607 bil, based on Pet's
closing share price of $15.625 on April 4, its first day of trading.
First Boston was retained to study a possible restructure plan and
recommended the spinoff. The transaction was conducted by means of a
stock dividend in which shareholders received one share of Pet for
every Whitman share held. In anticipation of the spinoff, Whitman
restructured its major food operations, splitting them into three
divisions. In 1989, Pet generated $1.755 bil in sales and $280 mil in
pre-tax operating profit.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 25
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target Target
Equity of Price holders Sales Income EBIT EBITDA
Date Date Value Deal Per Shares Equity LTM LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ------------------- ------ -------- ------- --------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/19/90 1/18/91 MANO Holdings B Manischewitz Co $42.5 $42.5 $800.00 0.1 $14.2 $34.2 $2.5 $4.2 $5.0
Advisor TGV Partners Lehman Brothers
-------
Company Status Priv. Public
--------------
<CAPTION>
Total % of Status/
Date Debt,Net Total Shares Form/
Announced of Cash Assets Acq. Attitude
- --------- -------- -------- -------------- --------
<S> <C> <C> <C> <C>
10/19/90 -- $18.4 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
MANO Holdings, an investor group led by Kohlberg and including TGV
Partners and management, acquired B Manischewitz in a leveraged buyout
transaction valued at $800 in cash per share, or $42.5 mil. MANO
accepted 81% of B Manischewitz' shares (42,975 shares) that were
tendered in the offer and acquired the rest for $800 in cash per share.
Under the terms of the agreement, senior management was to retain an
equity interest in MANO Holdings.
Target Business Description
---------------------------
Produce, whl, ret matzos
Acquiror Business Description
-----------------------------
Investor group; holding co
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/19/91 7/11/91 ConAgra Inc Golden Valley Microwave Foods $408.4 $408.4 $26.39 17.6 $108.0 $177.6 $19.6 $13.6 $21.4
Advisor Gleacher & Co Goldman, Sachs & Co.
-------
Company Status Public Public
--------------
<CAPTION>
<S> <C> <C> <C> <C>
4/19/91 $52.7 $180.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Golden Valley Microwave Foods (GV) in a stock
transaction valued at $464.5 mil. GV shareholders received .5676 shares
of ConAgra for each of GV's 18.8 mil fully diluted common shares. Based
on ConAgra's closing stock price of $47.375 on Apr 18, the last full
trading day prior to the announcement, each share of GV had an
indicated value of $26.39. ConAgra also agreed to convert 600,000 GV
warrants, held by an affiliate of Chase Manhattan Bank, for 340,560
rights to buy ConAgra stock at $60.48.
Target Business Description
---------------------------
Produce microwave food prod
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 26
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/18/91 8/23/91 HJ Heinz Co JL Foods Inc (John Labatt Ltd) $500.0 $500.0 -- -- -- $475.0 -- --
Advisor Dillon, Read James D. Wolfensohn Inc.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
7/18/91 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
HJ Heinz acquired the JL Foods unit of John Labatt for $500 mil in
cash. John Labatt had disclosed in May 1991 that it was seeking a buyer
for its JL Foods unit. Officials said the planned divestiture was
consistent with John Labatt's stated strategy to focus on its core
brewing, entertainment and dairy operations. The transaction had been
subject to US and Canadian regulatory approval.
Target Business Description
---------------------------
Produce, whl frozen foods
Acquiror Business Description
-----------------------------
Canned food preparations
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/20/91 1/31/92 CPC International Inc Fearn Intl (Kellogg Co) $115.0 $115.0 -- -- -- $100.0 -- --
Advisor Salomon Brothers Lehman Brothers
-------
Company Status Public Sub.
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
12/20/91 -- -- -- 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
CPC International acquired all the outstanding common stock of Fearn
International, a subsidiary of Kellogg, including the Le Gout product
line for a $115 mil in cash. Lehman Brothers acted as financial advisor
to Kellogg while Salomon Brothers advised CPC International.
Target Business Description
---------------------------
Produce soups and desserts
Acquiror Business Description
-----------------------------
Produce soups, sauces, food prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 27
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/24/92 8/3/92 Burns Philp Inc Durkee-French Foods (Burns) $85.0 $85.0 -- -- -- $200.0 -- --
Advisor -- --
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ --------------
<S> <C> <C> <C> <C> <C>
1/24/92 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Burns Philp Inc, a unit of Burns Philp & Co, acquired Durkee-French
Foods from Reckitt & Coleman for $85 mil in cash, including $7 mil to
be held in escrow pending finalization of certain accounts.
Target Business Description
---------------------------
Produce mustard, sauces
Acquiror Business Description
-----------------------------
Produce yeast, vinegar, spices
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/9/92 5/28/92 Ben Hill Griffin Inc Orange-co (Stoneridge Res Inc)$31.0 $31.0 -- -- $85.6 $126.5 ($8.7) ($9.0)
Advisor -- Donaldson, Lufkin & Jenrette
-------
Company Status Priv. Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/9/92 ($4.2) $45.9 $149.8 52.3 Completed
Acq. Maj. Int.
Friendly
</TABLE>
Deal Description
----------------
Ben Hill Griffin acquired a 52.3% interest in Orange-co held by
Stoneridge Resources for $31 mil. Stonebridge Resources said in October
1990 that it was seeking a buyer for all of its assets for the purpose
of raising cash to distribute a liquidation dividend to shareholders.
Stonebridge retained Donaldson Lufkin & Jenrette Securities as a
financial advisor.
Target Business Description
---------------------------
Prod oranges, juices, plastics
Acquiror Business Description
-----------------------------
Frozen fruits, juices, vegetable
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 28
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------- --------- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/22/92 8/2/93 Shareholders Ralston-Continental Baking $181.1 $181.1 $8.75 37.6 $137.4 $2,014.5 $35.8 $92.9
Advisor - Lehman Brothers
-------
Company Status Priv. Sub.
- ----------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/22/92 -- -- $844.9 55 Completed
Acq. Maj. Int.
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina (RP) completed the spinoff of 20.7 mil new common
shares, or a 55% interest, in its newly created Ralston-Continental
Baking Group (CBG) to shareholders in a targeted stock recapitalization
valued at $181.12 mil. Shareholders of record as of Jul 30 received 1
CBG share for every 5 RP share held. Ralston Purina had originally
planned to spinoff the entire unit in April 1992. CBG was created in
order to separate the performance of RP's baking and non-baking
interests.
Target Business Description
---------------------------
Produce bakery products
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/12/92 2/1/93 Dean Foods Co WB Roddenbery Co $15.0 $15.0 -- -- $12.8 $54.8 ($1.7) ($1.4)
Advisor -- KPMG Peat Marwick
-------
Company Status Public Priv.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
10/12/92 ($0.5) $0.8 $19.1 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired all the outstanding stock of WB Roddenbery in
exchange for 535,000 of its common shares valued at $14.2 mil. The
value of the shares was based on Dean's closing stock price of $26.5
per share on Oct 9, the last full trading day prior to the
announcement. The transaction had been subject to Federal Trade
Commission approval.
Target Business Description
---------------------------
Produce pickles, vinegar, syrup
Acquiror Business Description
-----------------------------
Produce milk, dairy products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 29
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/12/93 11/3/94 Pro-Fac Cooperative Inc Curtice-Burns Foods(Pro-Fac) $164.2 $431.2 $19.00 8.6 $81.3 $854.8 ($18.5)
Advisor Dillon, Read Donaldson, Lufkin & Jenrette
------- Priv. Public
Company Status
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
8/12/93 ($5.2) $21.0 $257.5 $463.6 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative (PFC) acquired Curtice-Burns (CBF) for a total of
$19 in cash per share, or a total value of $424.25 mil, by accepting
8,276,439 common shares, or 96% of the outstanding shares. Included in
the value was PFC's assumption of $267 mil of CBF's debt. PFC had
originally offered $16.87 in cash per share held. The tender offer was
contingent upon at least 90% of CBF's Class A and B shares being
tendered. Dean Foods withdrew its offer to acquire CBF.
Target Business Description
---------------------------
Produce soft drinks, foods
Acquiror Business Description
-----------------------------
Provide food marketing service
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/16/93 3/31/94 Shareholders Ralcorp Holdings Inc (Ralston) $528.0 $528.0 $16.00 33.0 -- $808.6 --
Advisor -- Wasserstein, Perella
------- Priv. Sub.
Company Status
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
8/16/93 -- -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Ralston Purina Group, a unit of Ralston Purina, spun off its newly
formed Ralcorp Holdings (RH) unit, consisting of its cereal, Beech-Nut
baby food, cracker, cookie, resort, and coupon redemption businesses to
shareholders in a transaction valued of $528 mil based on RH's closing
stock price of $16 per share on Apr 1, the first full trading day of
newly issued RH shares. The shares in the spinoff would be distributed
at a ratio of 1 RH share for every 3 shares of Ralston Purina Group.
The unit included its Keystone and Breckenridge ski resorts.
Target Business Description
---------------------------
Produce cereal, baby food
Acquiror Business Description
-----------------------------
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 30
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- -------------- ----------------------------- ------ ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/1/93 12/27/93 Dean Foods Co Kraft General Foods-Birds Eye $140.0 $140.0 -- -- -- $250.0
Advisor JP Morgan Securities, Inc. Morgan Stanley
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
11/1/93 $6.0 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Dean Foods acquired the BirdsEye frozen vegetable business of Kraft
General Foods, a unit of Philip Morris, for $140 mil. The transaction
had been subject to regulatory approval.
Target Business Description
---------------------------
Prod frozen vegetables
Acquiror Business Description
-----------------------------
Produce milk, dairy products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3/18/94 6/1/94 Doskocil Cos Inc Intl Multifoods-Prepared Foods $135.0 $135.0 -- -- -- $185.0
Advisor -- Lehman Brothers
-------
Company Status Public Sub
- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
3/18/94 -- -- -- -- -- 100 Completed
Acq. of
Assets
Friendly
</TABLE>
Deal Description
----------------
Doskocil acquired the prepared foods division of International
Multifoods (IM) for $135 mil in cash. In September 1993, IM's board had
announced that it was seeking to divest its prepared foods division.
The division included its frozen specialty foods and meats businesses.
Later IBP acquired the meats business.
Target Business Description
---------------------------
Produce prepared foods
Acquiror Business Description
-----------------------------
Produce sausages, prepared meat
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 31
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ----------- ----------------------------- ------ ------ ------ --------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/18/94 -- ConAgra Inc Universal Foods-Frozen Foods $202.0 $202.0 -- -- -- -- -- --
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------ --------- ------ ------ --------------
<S> <C> <C> <C> <C> <C>
4/18/94 -- -- -- -- Pending
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra agreed to acquire the frozen foods business of Universal Foods
for an amended $202 mil in cash. The initial value was $220 mil,
including $57 mil in performance-related payments. The transaction was
subject to regulatory approval.
Target Business Description
---------------------------
Produce frozen foods
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/20/94 11/30/94 Schreiber Foods Inc Arden International Kitchens $11.8 $11.8 $3.90 3.0 $4.2 $19.5 $0.7 $1.1
Advisor -- --
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
4/20/94 $2.1 $0.9 $6.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Schreiber Foods (SF) acquired Arden International Kitchens (AIK) for an
amended $11.8 mil in cash, or $3.90 per common share. SF had originally
agreed to acquire AIK for $4 per share, or a total value of $12.1 mil.
Target Business Description
---------------------------
Produce frozen foods for
Acquiror Business Description
-----------------------------
Produce meat and food products
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 32
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- -------- -------- ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/23/94 12/19/94 Sandoz AG Gerber Products Co $3,685.7 $3,685.7 $53.00 69.5 $364.7 $1,202.5 $114.2 $184.0
Advisor Morgan Stanley Wasserstein, Perella
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- ------- -------- -------- ------ ---------
<S> <C> <C> <C> <C> <C>
5/23/94 $226.0 $84.7 $1,013.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Sandoz completed its merger with Gerber Products (GP) in a transaction
valued at $3.68 bil. Earlier, Sandoz had completed its tender offer for
all the common shares of GP for $53 in cash per share, by accepting
69.08 mil shares, or about 99.2% of GP's shares outstanding. The offer
had been conditioned upon Sandoz receiving at least a majority of GP's
stock. The transaction had been subject to regulatory approval,
including the approval of the Federal Trade Commission under the
Hart-Scott-Rodino Act, and the Superintendent of Insurance of New York.
Target Business Description
-----------------------------
Manfr baby foods and products
Acquiror Business Description
-----------------------------
Manufacture dyestuffs
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/12/94 3/14/95 Kohlberg Kravis Roberts & Co Borden Inc $2,222.9 $4,622.9 $13.61 170.3 $257.5 $5,498.2 ($114.2) $115.4
Advisor Morgan Stanley Credit Suisse First Boston
-------
Company Status Priv. Public
--------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
9/12/94 -- $1,682.7 $4,055.9 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Kohlberg Kravis Roberts (KKR) merged with Borden (BN) in an amended
stock swap valued at $4.643 bil, including $2.4 bil in the assumption
of liabilities. The value included a 16.5% stake KKR acquired in Borden
through a lockup agreement valued at $309.518 mil. Earlier, KKR had
completed a tender offer to acquire all the shares of BN in exchange
for 2.29146 RJR shares, valued at $13.606, per BN share held, by
accepting 90 mil shares, or about 63.5% of BN's total shares
outstanding. The offer had been conditioned upon a minimum of 41% of
BN's shares being tendered.
Target Business Description
---------------------------
Produce dairy prods, snacks
Acquiror Business Description
-----------------------------
Leverage buyout firm
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 33
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- --------------- --------------------- ------ -------- ------ --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11/28/94 1/30/95 Campbell Soup Co Pace Foods $1,115.0 $1,115.0 -- -- $61.0 $230.0 $45.0
Advisor -- Goldman, Sachs & Co.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ -------- -------- ------ --------- --------------
<S> <C> <C> <C> <C> <C> <C>
11/28/94 $42.4 $47.0 -- $112.7 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Campbell Soup acquired Pace Foods for $1.115 bil in cash.
Target Business Description
---------------------------
Produce pickled vegetables
Acquiror Business Description
-----------------------------
Produce soups, food products
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/9/95 5/12/95 Pillsbury Co (Grand Met PLC) Pet Inc (Pillsbury/Grand Met) $2,636.5 $2,636.5 $26.00 100.4 $362.2 $1,576.3 $112.6
Advisor Morgan Stanley Lazard Freres & Co.
-------
Company Status Sub. Sub.
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1/9/95 $216.7 $262.5 $528.1 $1,175.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Pillsbury, a unit of Grand Metropolitan (GM), completed its merger with
Pet in a transaction valued at $2.636 bil. Earlier, Pillsbury completed
its tender offer for all the outstanding common shares of Pet for $26
in cash per share, by accepting 95,364,543 shares, or 95% of Pet's
common stock outstanding. The offer had been conditioned upon GM
receiving at least 50% of Pet's shares outstanding, and had been
subject to regulatory approval.
Target Business Description
---------------------------
Dairy products, canned foods
Acquiror Business Description
-----------------------------
Produce flour, grain mill prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 34
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------ ------------------------------ ------ ------ ------ --------- ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/26/95 3/27/96 Shareholders Earthgrains Co (Anheuser-Busch)$309.8 $309.8 $30.38 10.2 $573.8 $1,664.6 ($25.7) ($31.2)
Advisor -- Dillon, Read
-------
Company Status Priv. Sub.
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
7/26/95 -- $56.2 $1,130.1 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Anheuser-Busch (AB) completed the spin off its Earthgrains (EA) unit to
shareholders in a transaction valued at $309.83 mil. Each AB common
shareholder received 1 EA common share for every 25 AB shares held.
EA's shares were valued based on EA's closing stock price of $30.375 on
Mar 27, the first full trading day on a non-when issued basis. Earlier,
EA was known as as Cambell Taggart.
Target Business Description
---------------------------
Baked goods, frozen foods
Acquiror Business Description
-----------------------------
Investor group
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/29/96 ConAgra Inc Gilroy Foods Inc $132.0 $132.0 -- -- -- $200.0 -- --
Advisor -- --
- -------
Company Status Public Sub.
- --------------
<S> <C> <C> <C> <C> <C>
3/15/96 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
ConAgra acquired Gilroy Foods, a unit of McCormick, for $132 mil in
cash.
Target Business Description
---------------------------
Produce dried fruits
Acquiror Business Description
-----------------------------
Produce meats, eggs, cooking oil
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 35
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net Target
Equity of Price holders Sales Income EBIT
Date Date Value Deal Per Shares Equity LTM LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------ --------------------- ------ ------ ------ --------- ------ ------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/30/97 12/23/97 JP Foodservice Inc Rykoff-Sexton Inc $770.6 $1,510 $24.41 28.0 $336.0 $519.9 ($60.2) ($79.5)
Advisor PaineWebber Merrill Lynch & Co.
-------
Company Status Public Public
--------------
<CAPTION>
Target
EBITDA Total % of Status/
Date LTM Debt,Net Total Shares Form/
Announced ($mil) of Cash Assets Acq. Attitude
- --------- -------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
6/30/97 ($73.0) $483.2 $1,217.2 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
JP Foodservice (JP) merged with Rykoff-Sexton (RS) in a
merger-of-equals stock swap transaction valued at an amended $1.436
bil, including the assumption of $740 mil in liabilities. JP offered an
amended .775 common shares per RS share. Originally, JP offered .82
common shares per RS share. Based on JP's closing stock price of $31.5
on June 27, the last full trading day prior to the announcement of
amended terms, each RS share was valued at $24.4125. The transaction
was accounted for as a pooling of interests and had been subject to
regulatory approval.
Target Business Description
---------------------------
Wholesale grocery products
Acquiror Business Description
-----------------------------
Wholesale groceries
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/9/97 3/11/98 Shareholders Campbell Soup-Noncore Bus(7) $1,004 $1,004.8 $22.13 45.4 -- $1,400 -- --
Advisor -- Goldman, Sachs & Co.
-------
Company Status Priv. Sub.
--------------
<S> <C> <C> <C> <C> <C>
9/9/97 -- -- -- 100 Completed
Acquisition
Not Appl.
</TABLE>
Deal Description
----------------
Campbell Soup (CS) spun off its 7 noncore businesses including the
Swanson frozen dinner and Vlasic pickle brands into a new company named
Vlasic Foods (VF) to its shareholders in a transaction valued at $1.004
bil. CS shareholders received 1VF common share for every 10 CS shares
held. The shares were valued based on VF's closing stock price of
$22.125 on March 11, the first full trading day on which the shares
were distributed.
Target Business Description
---------------------------
Produce, whl soups, food prods
Acquiror Business Description
-----------------------------
Investor group
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 36
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target
Value Share- Net
Equity of Price holders Sales
Date Date Value Deal Per Shares Equity LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------------ ------ ------ ------ --------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/18/97 1/16/98 Chiquita Brands International Stokely USA Inc $10.9 $42.9 $1.00 11.4 $6.1 $178.9
Advisor No Investment Bank Retained Donaldson, Lufkin & Jenrette
-------
Company Status Public Public
--------------
<CAPTION>
Target
Net Target Target
Income EBIT EBITDA Total % of Status/
Date LTM LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
9/18/97 ($19.4) ($8.9) ($2.9) $74.7 $116.5 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International (CBI) acquired all the outstanding common
stock of Stokely USA (SU) in exchange for $1 in common stock per share,
or a total value of approximately $43.389 mil, including the assumption
of about $32 mil in liabilities.
Target Business Description
------------------------------
Prod canned fruits, vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/29/97 12/1/97 Suiza Foods Corp Morningstar Group Inc $855.9 $1,035.9 $45.85 15.4 $99.4 $497.6
Advisor Donaldson, Lufkin & Jenrette Goldman, Sachs & Co.
-------
Company Status Public Public
- --------------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
9/29/97 $18.2 $38.9 -- 178.5 $352.3 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Suiza Foods (SF) acquired Morningstar Group (MG) in a stock swap
transaction valued at approximately $971.957 mil, including the
assumption of $180 mil in liabilities. SF offered .85 SF common shares
per MG share. Based on SF's closing stock price of $53.9375 on Sep 26,
the last full trading day prior to the announcement, each MG share was
valued at $45.85. The transaction was accounted for as a pooling of
interests and had been subject to regulatory approval.
Target Business Description
---------------------------
Produce dairy products
Acquiror Business Description
-----------------------------
Produce milk, related prod
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 37
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ----------------------------- ------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/1/97 12/9/97 Chiquita Brands International American Fine Foods Inc $27.0 $29.0 -- -- $25.6 $79.8 $3.6
Advisor -- JP Morgan & Co. Inc.
-------
Company Status Public Priv.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt,Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
10/1/97 -- -- -- $52.0 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Chiquita Brands International acquired all the outstanding stock of
American Fine Foods for $29 mil. The consideration consisted of $27 mil
in common stock and the assumption of $2 mil in liabilities. The
transaction was subject to regulatory approval.
Target Business Description
---------------------------
Produce canned vegetables
Acquiror Business Description
-----------------------------
Produce bananas, fruits
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31/98 Agrilink Foods (Pro-Fac) Delagra Corp $6.9 $6.9 -- -- -- --
Advisor -- --
-------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C>
2/18/98 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Pro-Fac Cooperative Inc, acquired Delagra Corp (DE). Terms were not
disclosed. Upon completion, DE was to be incorporated to AF's Curtice
Burns Foods subsidiary.
Target Business Description
---------------------------
Produce frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 38
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ------------------------------ ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5/8/98 6/15/98 Agrobios (Desc SA de CV) Authentic Specialty Foods Inc $141.9 $141.9 $17.00 8.0 $40.5 $37.2 ($0.6)
Advisor JP Morgan & Co. Inc. Donaldson, Lufkin & Jenrette
-------
Company Status Sub. Public
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
5/8/98 ($0.4) $0.8 $10.2 $58.8 100 Completed
Merger
Friendly
</TABLE>
Deal Description
----------------
Agrobios (AB), a unit of Desc SA de CV, acquired all the outstanding
common stock of Authentic Specialty Foods Inc (ASF) for $17 in cash per
share, or a total value of $141.876 mil. Earlier, AB completed its
tender offer for ASF by accepting 7.8 million shares, or 89% of ASF's
shares outstanding. The offer had been conditioned upon at least 66.67%
of ASF's shares being tendered on a fully-diluted basis.
Target Business Description
---------------------------
Whl, mnfr Mexican foods
Acquiror Business Description
-----------------------------
Mnfr, whl foods products
<TABLE>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/21/98 Agrilink Foods (Pro-Fac) JA Hopay Distributing Co -- -- -- -- -- $8.0 --
Advisor -- --
- -------
Company Status Sub. Priv.
- --------------
<S> <C> <C> <C> <C> <C> <C>
7/21/98 -- -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods, a unit of Pro-Fac Cooperative Inc, acquired JA Hopay
Distributing Co.
Target Business Description
---------------------------
Distribution of snack foods
Acquiror Business Description
-----------------------------
Produce frozen vegetables
* Covers industries with SIC Codes in the 2030s. Source: Securities Data
Company, Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 39
FOOD DISTRIBUTION COMPANIES*
Mergers & Acquisition Transactions Since 1/1/90
<TABLE>
<CAPTION>
Target Target Target
Value Share- Net Net
Equity of Price holders Sales Income
Date Date Value Deal Per Shares Equity LTM LTM
Announced Effective Acquiror Target ($mil) ($mil) Share Out.(mil) ($mil) ($mil) ($mil)
- --------- --------- ------------------------ ---------------------------- ------ ------ ------ --------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/27/98 9/24/98 Agrilink Foods (Pro-Fac) Dean Foods Co-Vegetable Ops $480.0 $482.0 -- -- -- $620.6 --
Advisor - Merrill Lynch & Co.
-------
Company Status Sub. Sub.
--------------
<CAPTION>
Target Target
EBIT EBITDA Total % of Status/
Date LTM LTM Debt, Net Total Shares Form/
Announced ($mil) ($mil) of Cash Assets Acq. Attitude
- --------- ------ ------ -------- -------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
7/27/98 $42.4 -- -- -- 100 Completed
Acq. of Assets
Friendly
</TABLE>
Deal Description
----------------
Agrilink Foods (AF), a unit of Pro-Fac Cooperative Inc, acquired the
vegetable operations of Dean Foods Co for an estimated $370 mil in
cash, a $30 mil note and AF's aseptic foods business. Included in the
acquisition were the Birds Eye, Freshlike and VegAll brand names.
Target Business Description
---------------------------
Mnfr frozen vegetables
Acquiror Business Description
-----------------------------
Produce frozen vegetables
*Covers industries with SIC Codes in the 2030s. Source: Securities Data Company,
Inc. (201) 622-3100. As of 10/4/98.
<PAGE> 40
Discounted Cash Flow Analysis
AVERAGE VALUATION PER SHARE (1)
<TABLE>
<CAPTION>
PROJECTED NO EXPENSES $500,000 OF EXPENSES
GROWTH RATE ADDED BACK ADDED BACK
<S> <C> <C>
0.0% $ 2.89 $ 3.38
2.5% $ 3.80 $ 4.28
5.0% $ 4.79 $ 5.27
</TABLE>
(1) Based on 6.8 million shares outstanding.
22
<PAGE> 41
Discounted Cash Flow Analysis
UNITED FOODS, INC.
Calculation of Weighted Average Cost of Capital
<TABLE>
(in thousands except per share)
<S> <C>
Weighted Average Cost of Capital (WACC) = (Equity % of Capitalization)(Cost of Equity)+(Debt % of Capitalization)(Cost of Debt)
28.6% Equity (13.83%)+71.4% Debt (5.58%)
7.9%
</TABLE>
<TABLE>
<CAPTION>
Cost of Equity Data Used
- --------------------------------------------- ---------------------------------------------
<S> <C>
Cost of Equity = Rf + B (Rm - Rf) Capital Asset Pricing Model (a)
Risk Free Rate = Rf 10 Year Treasury Yield = 4.49% (b)
Beta of Common Stock = B UFD Beta = 0.7 (c)
Market Risk Premium = (Rm - Rf) Common Stock Returns
over Int.-term Gov't Bonds = 8.9% (d)
Cost of Equity = 4.5% + .7*(8.9%) + 3.5% Micro-Cap Stock Premium 3.5%
Cost of Debt = (1-T)*Ri (e)
Cost of Equity = 13.8% Cost of Debt = 5.6%
Capitalization (f) = $20,430 of Market Equity + $50,909 of Long Term Debt = $71,339
= 28.6% Equity + 71.4% Debt
</TABLE>
(a) The Capital Asset Pricing Model states that the return on an asset or
security is equal to the risk free return (i.e., Treasury Bonds) plus a
risk premium.
(b) 10 Year Treasury as of 9/30/98.
(c) Beta estimate taken from Value Line Investment Survey.
(d) Intermediate horizon risk premium of 8.9%, as calculated by Ibbotson
& Sinquefield, 1996. Includes an additional Micro-Cap Stock Premium
of 3.5%.
(e) Interest cost of 9.00%, tax adjusted at 38.0%.
(f) Assumes UFD has a targeted capital structure of 28.6% equity and 71.4%
debt.
23
<PAGE> 42
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model (0% Growth)
Discounted Cash Flow Analysis--Operating Cash Flow EBITDA Exit Multiple Method
(Numbers in Thousands)
(Fiscal Year Ended February)
<TABLE>
<CAPTION>
10/2/98 10:15 AM 2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 13,411 $ 13,411 $ 13,411 $ 13,411 $ 13,411
Depreciation and amortization 7,910 7,910 7,910 7,910 7,910
Interest expense 4,483 4,387 4,292 4,196 4,117
-------- -------- -------- -------- --------
Pre-tax income 1,018 1,114 1,209 1,305 1,384
Provision for income taxes 387 423 459 496 526
-------- -------- -------- -------- --------
Net income 631 691 749 809 858
======== ======== ======== ======== ========
Add: Depreciation & amortization 7,910 7,910 7,910 7,910 7,910
Add: After-tax interest expense 2,779 2,720 2,661 2,601 2,553
Less: Net additions to working capital (1) -- -- -- -- --
Less: Capital expenditures (7,910) (7,910) (7,910) (7,910) (7,910)
-------- -------- -------- -------- --------
Operating cash flow $ 3,411 $ 3,411 $ 3,411 $ 3,411 $ 3,411
======== ======== ======== ======== ========
Cash flow growth 0.0% 0.0% 0.0% 0.0%
</TABLE>
EQUITY VALUATION MATRIX(2)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- -------- -------------- ------------ ------------- -----------
<S> <C> <C> <C> <C>
8.0% $ 8,977 $ 18,104 $ 27,232 $ 36,359
9.0% 6,570 15,287 24,003 32,719
10.0% 4,288 12,615 20,942 29,269
Average Valuation of Equity $ 19,697
</TABLE>
PER SHARE EQUITY VALUATION MATRIX(2) (4)
<TABLE>
<CAPTION>
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0X 6.0X 7.0X 8.0X
- --------- -------------- -------------- -------------- ----------------
<S> <C> <C> <C> <C>
8.0% $ 1.32 $ 2.66 $ 4.00 $ 5.34
9.0% $ 0.96 $ 2.24 $ 3.52 $ 4.80
10.0% $ 0.63 $ 1.85 $ 3.08 $ 4.30
Average Per Share Valuation of Equity $ 2.89
- ----------------------
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $50,277 (4) Based on 6.8 million shares outstanding.
</TABLE>
24
<PAGE> 43
Discounted Cash Flow Analysis
UNITED FOODS, INC. -- Projection Model (2.5% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
10/2/98 10:15 AM 2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 13,746 $ 14,090 $ 14,442 $ 14,803 $ 15,173
Depreciation and amortization 7,910 7,910 7,910 7,910 7,910
Interest expense 4,513 4,470 4,415 4,343 4,272
-------- -------- -------- -------- --------
Pre-tax income 1,324 1,710 2,117 2,550 2,991
Provision for income taxes 503 650 804 969 1,137
-------- -------- -------- -------- --------
Net income 821 1,060 1,312 1,581 1,854
======== ======== ======== ======== ========
Add: Depreciation & amortization 7,910 7,910 7,910 7,910 7,910
Add: After-tax interest expense 2,798 2,772 2,738 2,693 2,649
Less: Net additions to working capital (1) (897) (919) (942) (966) (990)
Less: Capital expenditures (7,910) (7,910) (7,910) (7,910) (7,910)
-------- -------- -------- -------- --------
Operating cash flow $ 2,722 $ 2,912 $ 3,108 $ 3,308 $ 3,513
======== ======== ======== ======== ========
Cash flow growth 7.0% 6.7% 6.4% 6.2%
</TABLE>
<TABLE>
<CAPTION>
EQUITY VALUATION MATRIX(2)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
---------- ------------- ------------ ------------- ---------------
<S> <C> <C> <C> <C>
8.0% $ 13,664 $ 23,990 $ 34,317 $ 44,644
9.0% 11,006 20,868 30,730 40,591
10.0% 8,488 17,909 27,331 36,752
Average Valuation of Equity $ 25,857
PER SHARE EQUITY VALUATION MATRIX(2) (4)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
---------- ------------- ------------ ------------- ---------------
8.0% $ 2.01 $ 3.52 $ 5.04 $ 6.56
9.0% $ 1.62 $ 3.06 $ 4.51 $ 5.96
10.0% $ 1.25 $ 2.63 $ 4.01 $ 5.40
Average Per Share Valuation of Equity $ 3.80
- -----------------
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $50,277 (4) Based on 6.8 million shares outstanding.
</TABLE>
25
<PAGE> 44
Discounted Cash Flow Analysis
UNTED FOODS, INC. -- Projection Model (5.0% Growth)
DISCOUNTED CASH FLOW ANALYSIS -- OPERATING CASH FLOW EBITDA EXIT MULTIPLE METHOD
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
10/2/98 10:15 AM 2000 2001 2002 2003 2004
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 14,082 $ 14,786 $ 15,525 $ 16,301 $ 17,116
Depreciation and amortization 7,910 7,910 7,910 7,910 7,910
Interest expense 4,543 4,555 4,544 4,502 4,448
-------- -------- -------- -------- --------
Pre-tax income 1,629 2,320 3,071 3,889 4,758
Provision for income taxes 619 882 1,167 1,478 1,808
-------- -------- -------- -------- --------
Net income 1,010 1,439 1,904 2,411 2,950
-------- -------- -------- -------- --------
Add: Depreciation & amortization 7,910 7,910 7,910 7,910 7,910
Add: After-tax interest expense 2,817 2,824 2,817 2,792 2,758
Less: Net additions to working capital (1) (1,793) (1,883) (1,977) (2,076) (2,180)
Less: Capital expenditures (7,910) (7,910) (7,910) (7,910) (7,910)
-------- -------- -------- -------- --------
Operating cash flow $ 2,033 $ 2,380 $ 2,744 $ 3,126 $ 3,528
======== ======== ========= ======== ========
Cash flow growth 17.1% 15.3% 13.9% 12.8%
EQUITY VALUATION MATRIX(2)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- -------- ------------ ------------ ------------ -----------
8.0% $ 18,768 $ 30,417 $ 42,066 $ 53,715
9.0% 15,840 26,964 38,089 49,213
10.0% 13,065 23,693 34,320 44,948
Average Valuation of Equity $ 32,592
PER SHARE EQUITY VALUATION MATRIX(2) (4)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- -------- -------------- -------------- ------------- ------------
8.0% $ 2.76 $ 4.47 $ 6.18 $ 7.89
9.0% $ 2.33 $ 3.96 $ 5.59 $ 7.23
10.0% $ 1.92 $ 3.48 $ 5.04 $ 6.60
Average Per Share Valuation of Equity $ 4.79
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $50,277 (4) Based on 6.8 million shares outstanding.
</TABLE>
26
<PAGE> 45
Discounted Cash Flow Analysis
UNITED FOODS, INC. (REDUCED EXPENSE CASE) -- Projection Model (0.0% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
10/2/98 10:15 AM 2000 2001 2002 2003 2004
----------------- ------------ ------------ ------------ --------
<S> <C> <C> <C> <C> <C>
EBITDA $ 13,911 $ 13,911 $ 13,911 $ 13,911 $ 13,911
Depreciation and amortization 7,910 7,910 7,910 7,910 7,910
Interest expense 4,129 4,327 4,203 4,074 3,962
----------------- ------------ ------------ ------------ --------
Pre-tax income 1,872 1,674 1,798 1,927 2,039
Provision for income taxes 711 636 683 732 775
----------------- ------------ ------------ ------------ --------
Net income 1,161 1,038 1,115 1,195 1,264
----------------- ------------ ------------ ------------ --------
Add: Depreciation & amortization 7,910 7,910 7,910 7,910 7,910
Add: After-tax interest expense 2,560 2,683 2,606 2,526 2,456
Less: Net additions to working capital (1) - - - - -
Less: Capital expenditures (7,910) (7,910) (7,910) (7,910) (7,910)
----------------- ------------ ------------ ------------ --------
Operating cash flow $ 3,721 $ 3,721 $ 3,721 $ 3,721 $ 3,721
----------------- ------------ ------------ ------------ --------
Cash flow growth 0.0% 0.0% 0.0% 0.0%
EQUITY VALUATION MATRIX(2)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- -------- ------------ ------------ ------------ ---------
8.0% $ 11,916 $ 21,384 $ 30,852 $ 40,319
9.0% 9,401 18,442 27,483 36,524
10.0% 7,015 15,653 24,291 32,928
Average Valuation of Equity $ 23,017
PER SHARE EQUITY VALUATION MATRIX(2) (4)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
8.0% $ 1.75 $ 3.14 $ 4.53 $ 5.92
9.0% $ 1.38 $ 2.71 $ 4.04 $ 5.36
10.0% $ 1.03 $ 2.30 $ 3.57 $ 4.84
Average Per Share Valuation of Equity $ 3.38
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $50,277 (4) Based on 6.8 million shares outstanding.
</TABLE>
27
<PAGE> 46
Discounted Cash Flow Analysis
UNITED FOODS, INC. (REDUCED EXPENSES CASE) -- Projection Model (2.5% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
10/2/98 10:15 AM
2000 2001 2002 2003 2004
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
EBITDA $14,246 $14,590 $14,942 $15,303 $15,673
Depreciation and amortization 7,910 7,910 7,910 7,910 7,910
Interest expense 3,862 3,962 3,745 3,519 3,385
------- ------- ------- ------- -------
Pre-tax income 2,475 2,718 3,288 3,874 4,378
Provision for income taxes 940 1,033 1,249 1,472 1,664
------- ------- ------- ------- -------
Net income 1,534 1,685 2,038 2,402 2,715
======= ======= ======= ======= =======
Add: Depreciation & amortization 7,910 7,910 7,910 7,910 7,910
Add: After-tax interest expense 2,394 2,456 2,322 2,182 2,099
Less: Net additions to working capital (1) (897) (919) (942) (966) (990)
Less: Capital expenditures (7,910) (7,910) (7,910) (7,910) (7,910)
------- ------- ------- ------- -------
Operating cash flow $ 3,032 $ 3,222 $ 3,418 $ 3,618 $ 3,823
======= ======= ======= ======= =======
Cash flow growth 6.3% 6.1% 5.9% 5.7%
EQUITY VALUATION MATRIX(2)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- -------- ------- ------- ------- -------
8.0% $16,603 $27,270 $37,937 $48,604
9.0% 13,837 24,024 34,210 44,397
10.0% 11,215 20,947 30,679 40,411
Average Valuation of Equity $29,178
PER SHARE EQUITY VALUATION MATRIX(2) (4)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
- -------- ----- ----- ----- -----
8.0% $2.44 $4.00 $5.57 $7.14
9.0% $2.03 $3.53 $5.02 $6.52
10.0% $1.65 $3.08 $4.51 $5.93
Average Per Share Valuation of Equity $4.28
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $50,277 (4) Based on 6.8 million shares outstanding.
</TABLE>
28
<PAGE> 47
Discounted Cash Flow Analysis
UNITED FOODS, INC. (REDUCED EXPENSES CASE) -- Projection Model (5.0% Growth)
Discounted Cash Flow Analysis -- Operating Cash Flow EBITDA Exit Multiple Method
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
10/2/98 10:15 AM 2000 2001 2002 2003 2004
----------- ------------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C>
EBITDA $ 14,582 $ 15,286 $ 16,025 $ 16,801 $ 17,616
Depreciation and amortization 7,910 7,910 7,910 7,910 7,910
Interest expense 3,884 4,023 3,837 3,632 3,507
----------- ------------- ----------- ------------ -------------
Pre-tax income 2,788 3,353 4,278 5,259 6,199
Provision for income taxes 1,059 1,274 1,626 1,998 2,356
----------- ------------- ----------- ------------ -------------
Net income 1,729 2,079 2,653 3,261 3,843
=========== ============== =========== ============ =============
Add: Depreciation & amortization 7,910 7,910 7,910 7,910 7,910
Add: After-tax interest expense 2,408 2,494 2,379 2,252 2,175
Less: Net additions to working capital (1) (1,793) (1,883) (1,977) (2,076) (2,180)
Less: Capital expenditures (7,910) (7,910) (7,910) (7,910) (7,910)
----------- ------------- ----------- ------------ -------------
Operating cash flow $ 2,343 $ 2,690 $ 3,054 $ 3,436 $ 3,838
=========== ============== =========== ============ =============
Cash flow growth 14.8% 13.5% 12.5% 11.7%
EQUITY VALUATION MATRIX(2)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
----------- ---------- ------------ ----------- --------------
8.0% $ 21,708 $ 33,697 $ 45,686 $ 57,675
9.0% 18,670 30,120 41,569 53,018
10.0% 15,792 26,731 37,669 48,607
Average Valuation of Equity $ 35,912
--------------
PER SHARE EQUITY VALUATION MATRIX(2) (4)
Discount YEAR 2004 EBITDA Exit Multiple
Rate(3) 5.0x 6.0x 7.0x 8.0x
----------- ---------- ------------ ----------- --------------
8.0% $ 3.19 $ 4.95 $ 6.71 $ 8.47
9.0% $ 2.74 $ 4.42 $ 6.10 $ 7.79
10.0% $ 2.32 $ 3.93 $ 5.53 $ 7.14
Average Per Share Valuation of Equity $ 5.27
--------------
(1) Excluding cash and short-term debt. (3) Discount rates are near estimates of WACC.
(2) Less total capital liab. (net of cash) of $50,277 (4) Based on 6.8 million shares outstanding.
</TABLE>
29
<PAGE> 48
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH)
PROJECTED INCOME STATEMENTS
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) HISTORICAL PROJECTED
10/2/98 10:34 AM 1999 2000 2001 2002 2003 2004
---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 206,743 $ 206,743 $ 206,743 $ 206,743 $ 206,743 $ 206,743
Cost of sales 168,228 168,228 168,228 168,228 168,228 168,228
---------- --------- --------- --------- --------- ---------
Gross profit 38,515 38,515 38,515 38,515 38,515 38,515
General and administrative, net dep. 8,867 8,867 8,867 8,867 8,867 8,867
Direct selling expenses 16,237 16,237 16,237 16,237 16,237 16,237
---------- --------- --------- --------- --------- ---------
Total operating expenses 25,104 25,104 25,104 25,104 25,104 25,104
EBITDA 13,411 13,411 13,411 13,411 13,411 13,411
Depreciation 7,910 7,910 7,910 7,910 7,910 7,910
---------- --------- --------- --------- --------- ---------
Total depreciation & amortization 7,910 7,910 7,910 7,910 7,910 7,910
Total operating income 5,501 5,501 5,501 5,501 5,501 5,501
Interest expense 4,519 4,483 4,387 4,292 4,196 4,117
---------- --------- --------- --------- --------- ---------
Other expenses (income) 4,519 4,483 4,387 4,292 4,196 4,117
Pre-tax income 982 1,018 1,114 1,209 1,305 1,384
Provision for income taxes 377 387 423 459 496 526
---------- --------- --------- --------- --------- ---------
Net income $ 605 $ 631 $ 691 $ 749 $ 809 $ 858
========== ========= ========= ========= ========= =========
</TABLE>
<PAGE> 49
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH)
PROJECTED BALANCE SHEETS
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
10/2/98 10:34 AM
HISTORICAL PROJECTED
1999 2000 2001 2002 2003 2004
---------- --------- --------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 632 $ 100 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,117 18,117 18,117 18,117 18,117 18,117
Inventory 34,586 34,586 34,586 34,586 34,586 34,586
Prepaid expenses 3,433 3,433 3,433 3,433 3,433 3,433
Deferred income taxes 1,238 1,238 1,238 1,238 1,238 1,238
--------- --------- --------- --------- ---------- ---------
Total current assets 58,006 57,474 57,474 57,474 57,474 57,474
Land 11,970 11,970 11,970 11,970 11,970 11,970
Gross plant and equip 130,854 138,764 146,674 154,584 162,494 170,404
Accumulated depreciation (82,061) (89,971) (97,881) (105,791) (113,701) (121,611)
--------- --------- --------- --------- ---------- ---------
Net P,P&E 60,763 60,763 60,763 60,763 60,763 60,763
Fixed assets held for disposal 804 804 804 804 804 804
Notes & accounts receivable 50 50 50 50 50 50
Deferred charges & other assets 231 231 231 231 231 231
--------- --------- --------- --------- ---------- ---------
Total assets $ 119,854 $ 119,322 $ 119,322 $ 119,322 $ 119,322 $ 119,322
========= ========= ========= ========= ========= ==========
</TABLE>
<PAGE> 50
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH)
PROJECTED BALANCE SHEETS
(Numbers in Thousands)
(Fiscal Year Ended February)
10/2/98 10:34 AM
<TABLE>
<CAPTION>
HISTORICAL PROJECTED
1999 2000 2001 2002 2003 2004
---------- ------- -------- ------- ------- --------
LIABILITIES & EQUITY
<S> <C> <C> <C> <C> <C> <C>
Current maturities & short-term debt $ 4,284 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 11,686 11,686 11,686 11,686 11,686 11,686
Accrued liabilities 6,483 6,483 6,483 6,483 6,483 6,483
Income taxes payable (162) (162) (162) (162) (162) (162)
--------- --------- --------- --------- --------- ---------
Total current liabilities 22,291 20,516 28,788 19,462 19,591 43,846
Long term debt
Revolver - 10,917 12,735 22,767 23,412 24,138
Long term debt 43,113 38,829 36,320 25,539 24,084 22,500
Line of credit 7,796 - - - - -
--------- --------- --------- --------- --------- ---------
Total debt 50,909 49,746 49,055 48,306 47,496 46,638
Less current portion (4,284) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 46,625 47,237 38,274 46,851 45,912 20,799
Deferred income taxes 4,585 4,585 4,585 4,585 4,585 4,585
--------- --------- --------- --------- --------- ---------
Total liabilities 73,501 72,338 71,647 70,898 70,088 69,230
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,992 3,992 3,992 3,992 3,992 3,992
Retained earnings 35,551 36,182 36,873 37,622 38,432 39,290
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,353 46,984 47,675 48,424 49,234 50,092
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 119,854 $ 119,322 $ 119,322 $ 119,322 $ 119,322 $ 119,322
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 51
UNITED FOODS, INC. -- PROJECTION MODEL (0% GROWTH)
PROJECTED CASH FLOW STATEMENTS
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) PROJECTED
10/2/98 10:34 AM 2000 2001 2002 2003 2004
-------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 631 $ 691 $ 749 $ 809 $ 858
Depreciation 7,910 7,910 7,910 7,910 7,910
-------- -------- -------- -------- --------
Net cash provided by operating activities 8,541 8,601 8,659 8,719 8,768
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,910) (7,910) (7,910) (7,910) (7,910)
-------- -------- -------- -------- --------
Net cash provided by investing activities (7,910) (7,910) (7,910) (7,910) (7,910)
Cash flows from financing activities
Repayment of debt (12,080) (3,200) (11,530) (2,264) (2,442)
Drawdown on revolver 10,917 2,509 10,781 1,455 1,584
-------- -------- -------- -------- --------
Net cash provided by financing activities (1,163) (691) (749) (809) (858)
-------- -------- -------- -------- --------
Net additions to cash $ (532) $ -- $ -- $ -- $ --
======== ======== ======== ======== ========
Beginning cash balance 632 100 100 100 100
Ending cash balance 100 100 100 100 100
</TABLE>
<PAGE> 52
UNITED FOODS, INC. -- PROJECTION MODEL (2.5% GROWTH)
PROJECTED INCOME STATEMENTS
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) HISTORICAL PROJECTED
10/2/98 10:34 AM 1999 2000 2001 2002 2003 2004
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $206,743 $211,912 $217,209 $222,640 $228,206 $233,911
Cost of sales 168,228 172,434 176,745 181,163 185,692 190,335
-------- -------- -------- -------- -------- --------
Gross profit 38,515 39,478 40,465 41,476 42,513 43,576
General and administrative, net dep. 8,867 9,089 9,316 9,549 9,788 10,032
Direct selling expenses 16,237 16,643 17,059 17,485 17,923 18,371
-------- -------- -------- -------- -------- --------
Total operating expenses 25,104 25,732 26,375 27,034 27,710 28,403
EBITDA 13,411 13,746 14,090 14,442 14,803 15,173
Depreciation 7,910 7,910 7,910 7,910 7,910 7,910
-------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,910 7,910 7,910 7,910 7,910 7,910
Total operating income 5,501 5,836 6,180 6,532 6,893 7,263
Interest expense - 4,513 4,470 4,415 4,343 4,272
-------- -------- -------- -------- -------- --------
Other expenses (income) - 4,513 4,470 4,415 4,343 4,272
Pre-tax income 5,501 1,324 1,710 2,117 2,550 2,991
Provision for income taxes 377 503 650 804 969 1,137
-------- -------- -------- -------- -------- --------
Net income $ 605 $ 821 $ 1,060 $ 1,312 $ 1,581 $ 1,854
======== ======== ======== ======== ======== ========
</TABLE>
<PAGE> 53
UNITED FOODS, INC. -- Projection Model (2.5% Growth)
Projected Balance Sheets
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 632 $ 100 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,117 18,570 19,034 19,510 19,998 20,498
Inventory 34,586 35,451 36,337 37,245 38,176 39,131
Prepaid expenses 3,433 3,519 3,607 3,697 3,789 3,884
Deferred income taxes 1,238 1,269 1,301 1,333 1,367 1,401
--------- --------- --------- --------- --------- ---------
Total current assets 58,006 58,908 60,379 61,886 63,430 65,013
Land 11,970 11,970 11,970 11,970 11,970 11,970
Gross plant and equip 130,854 138,764 146,674 154,584 162,494 170,404
Accumulated depreciation (82,061) (89,971) (97,881) (105,791) (113,701) (121,611)
--------- --------- --------- --------- --------- ---------
Net P,P&E 60,763 60,763 60,763 60,763 60,763 60,763
Fixed assets held for disposal 804 824 845 866 887 910
Notes & accounts receivable 50 51 53 54 55 57
Deferred charges & other assets 231 237 243 249 255 261
--------- --------- --------- --------- --------- ---------
Total assets $ 119,854 $ 120,783 $ 122,281 $ 123,817 $ 125,391 $ 127,004
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 54
UNITED FOODS, INC. -- Projection Model (2.5% Growth)
Projected Balance Sheets
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 4,284 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 11,686 11,978 12,278 12,585 12,899 13,222
Accrued liabilities 6,483 6,645 6,811 6,981 7,156 7,335
Income taxes payable (162) (166) (170) (174) (179) (183)
--------- --------- --------- --------- --------- ---------
Total current liabilities 22,291 20,966 29,700 20,847 21,460 46,212
Long term debt
Revolver -- 11,624 13,992 24,403 25,242 25,962
Long term debt 43,113 38,829 36,320 25,539 24,084 22,500
Line of credit 7,796 -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 50,909 50,453 50,312 49,942 49,326 48,462
Less current portion (4,284) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 46,625 47,944 39,531 48,487 47,742 22,623
Deferred income taxes 4,585 4,700 4,817 4,938 5,061 5,188
--------- --------- --------- --------- --------- ---------
Total liabilities 73,501 73,610 74,048 74,271 74,264 74,023
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,992 3,992 3,992 3,992 3,992 3,992
Retained earnings 35,551 36,372 37,431 38,744 40,325 42,179
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,353 47,174 48,233 49,546 51,127 52,981
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 119,854 $ 120,783 $ 122,281 $ 123,817 $ 125,391 $ 127,004
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 55
UNITED FOODS, INC. -- Projection Model (2.5% Growth)
Projected Cash Flow Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
Projected
2000 2001 2002 2003 2004
-------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 821 $ 1,060 $ 1,312 $ 1,581 $ 1,854
Depreciation 7,910 7,910 7,910 7,910 7,910
-------- ------- -------- ------- -------
Net cash provided by operating activities 7,746 7,961 8,188 8,431 8,678
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,910) (7,910) (7,910) (7,910) (7,910)
-------- ------- -------- ------- -------
Net cash provided by investing activities (7,823) (7,820) (7,818) (7,816) (7,813)
Cash flows from financing activities
Repayment of debt (12,080) (2,650) (11,151) (2,071) (2,449)
Drawdown on revolver 11,624 2,509 10,781 1,455 1,584
-------- ------- -------- ------- -------
Net cash provided by financing activities (456) (141) (370) (616) (865)
-------- ------- -------- ------- -------
Net additions to cash $ (532) $ 0 $ (0) $ 0 $ --
======== ======= ======== ======= =======
Beginning cash balance 632 100 100 100 100
Ending cash balance 100 100 100 100 100
</TABLE>
<PAGE> 56
UNITED FOODS, INC. -- Projection Model (5.0% Growth)
Projected Income Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Historical Projected
1999 2000 2001 2002 2003 2004
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $206,743 $217,080 $227,934 $239,331 $251,297 $263,862
Cost of sales 168,228 176,639 185,471 194,745 204,482 214,706
-------- -------- -------- -------- -------- --------
Gross profit 38,515 40,441 42,463 44,586 46,815 49,156
General and administrative, net dep. 8,867 9,310 9,776 10,265 10,778 11,317
Direct selling expenses 16,237 17,049 17,901 18,796 19,736 20,723
-------- -------- -------- -------- -------- --------
Total operating expenses 25,104 26,359 27,677 29,061 30,514 32,040
EBITDA 13,411 14,082 14,786 15,525 16,301 17,116
Depreciation 7,910 7,910 7,910 7,910 7,910 7,910
-------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,910 7,910 7,910 7,910 7,910 7,910
Total operating income 5,501 6,172 6,876 7,615 8,391 9,206
Interest expense -- 4,543 4,555 4,544 4,502 4,448
-------- -------- -------- -------- -------- --------
Other expenses (income) -- 4,543 4,555 4,544 4,502 4,448
Pre-tax income 5,501 1,629 2,320 3,071 3,889 4,758
Provision for income taxes 377 619 882 1,167 1,478 1,808
-------- -------- -------- -------- -------- --------
Net income $ 605 $ 1,010 $ 1,439 $ 1,904 $ 2,411 $ 2,950
======== ======== ======== ======== ======== ========
</TABLE>
<PAGE> 57
UNITED FOODS, INC. -- Projection Model (5.0% Growth)
Projected Balance Sheets
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 632 $ 100 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,117 19,023 19,974 20,973 22,021 23,122
Inventory 34,586 36,315 38,131 40,038 42,039 44,141
Prepaid expenses 3,433 3,605 3,785 3,974 4,173 4,381
Deferred income taxes 1,238 1,300 1,365 1,433 1,505 1,580
--------- --------- --------- --------- --------- ---------
Total current assets 58,006 60,343 63,355 66,518 69,838 73,325
Land 11,970 11,970 11,970 11,970 11,970 11,970
Gross plant and equip. 130,854 138,764 146,674 154,584 162,494 170,404
Accumulated depreciation (82,061) (89,971) (97,881) (105,791) (113,701) (121,611)
--------- --------- --------- --------- --------- ---------
Net P,P&E 60,763 60,763 60,763 60,763 60,763 60,763
Fixed assets held for disposal 804 844 886 931 977 1,026
Notes & accounts receivable 50 53 55 58 61 64
Deferred charges & other assets 231 243 255 267 281 295
--------- --------- --------- --------- --------- ---------
Total assets $ 119,854 $ 122,245 $ 125,314 $ 128,537 $ 131,920 $ 135,473
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 58
UNITED FOODS, INC. -- Projection Model (5.0% Growth)
Projected Balance Sheets
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 4,284 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 11,686 12,270 12,884 13,528 14,204 14,915
Accrued liabilities 6,483 6,807 7,148 7,505 7,880 8,274
Income taxes payable (162) (170) (179) (188) (197) (207)
--------- --------- --------- --------- --------- ---------
Total current liabilities 22,291 21,416 30,634 22,300 23,472 48,821
Long-term debt
Revolver -- 12,332 15,285 26,139 27,259 28,073
Long-term debt 43,113 38,829 36,320 25,539 24,084 22,500
Line of credit 7,796 -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 50,909 51,161 51,605 51,678 51,343 50,573
Less current portion (4,284) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 46,625 48,652 40,824 50,223 49,759 24,734
Deferred income taxes 4,585 4,814 5,055 5,308 5,573 5,852
--------- --------- --------- --------- --------- ---------
Total liabilities 73,501 74,882 76,513 77,831 78,804 79,407
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,992 3,992 3,992 3,992 3,992 3,992
Retained earnings 35,551 36,561 37,999 39,903 42,314 45,264
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,353 47,363 48,801 50,705 53,116 56,066
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 119,854 $ 122,245 $ 125,314 $ 128,537 $ 131,920 $ 135,473
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 59
UNITED FOODS, INC. -- Projection Model (5.0% Growth)
Projected Cash Flow Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Projected
2000 2001 2002 2003 2004
-------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,010 $ 1,439 $ 1,904 $ 2,411 $ 2,950
Depreciation 7,910 7,910 7,910 7,910 7,910
-------- ------- -------- ------- -------
Net cash provided by operating activities 6,951 7,282 7,644 8,042 8,468
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,910) (7,910) (7,910) (7,910) (7,910)
-------- ------- -------- ------- -------
Net cash provided by investing activities (7,735) (7,726) (7,717) (7,707) (7,697)
Cash flows from financing activities
Repayment of debt (12,080) (2,509) (10,781) (1,790) (2,354)
Drawdown on revolver 12,332 2,953 10,854 1,455 1,584
-------- ------- -------- ------- -------
Net cash provided by financing activities 252 444 73 (335) (770)
-------- ------- -------- ------- -------
Net additions to cash $ (532) $ -- $ -- $ -- $ --
======== ======= ======== ======= =======
Beginning cash balance 632 100 100 100 100
Ending cash balance 100 100 100 100 100
</TABLE>
<PAGE> 60
UNITED FOODS, INC. (REDUCED EXPENSE CASE) -- Projection Model (0.0% Growth)
Projected Income Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Historical Projected
1999 2000 2001 2002 2003 2004
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $206,743 $206,743 $206,743 $206,743 $206,743 $206,743
Cost of sales 168,228 168,228 168,228 168,228 168,228 168,228
-------- -------- -------- -------- -------- --------
Gross profit 38,515 38,515 38,515 38,515 38,515 38,515
General and administrative, net dep. 8,867 8,367 8,367 8,367 8,367 8,367
Direct selling expenses 16,237 16,237 16,237 16,237 16,237 16,237
-------- -------- -------- -------- -------- --------
Total operating expenses 25,104 24,604 24,604 24,604 24,604 24,604
EBITDA 13,411 13,911 13,911 13,911 13,911 13,911
Depreciation 7,910 7,910 7,910 7,910 7,910 7,910
-------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,910 7,910 7,910 7,910 7,910 7,910
Total operating income 5,501 6,001 6,001 6,001 6,001 6,001
Interest expense -- 4,129 4,327 4,203 4,074 3,962
-------- -------- -------- -------- -------- --------
Other expenses (income) -- 4,129 4,327 4,203 4,074 3,962
Pre-tax income 5,501 1,872 1,674 1,798 1,927 2,039
Provision for income taxes 377 711 636 683 732 775
-------- -------- -------- -------- -------- --------
Net income $ 605 $ 1,161 $ 1,038 $ 1,115 $ 1,195 $ 1,264
======== ======== ======== ======== ======== ========
</TABLE>
<PAGE> 61
UNITED FOODS, INC. (REDUCED EXPENSE CASE) -- Projection Model (0.0% Growth)
Projected Balance Sheets
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
ASSETS
<S> <C> <C> <C> <C> <C> <C>
Cash $ 632 $ 100 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,117 18,117 18,117 18,117 18,117 18,117
Inventory 34,586 34,586 34,586 34,586 34,586 34,586
Prepaid expenses 3,433 3,433 3,433 3,433 3,433 3,433
Deferred income taxes 1,238 1,238 1,238 1,238 1,238 1,238
--------- --------- --------- --------- --------- ---------
Total current assets 58,006 57,474 57,474 57,474 57,474 57,474
Land 11,970 11,970 11,970 11,970 11,970 11,970
Gross plant and equip. 130,854 138,764 146,674 154,584 162,494 170,404
Accumulated depreciation (82,061) (89,971) (97,881) (105,791) (113,701) (121,611)
--------- --------- --------- --------- --------- ---------
Net P,P&E 60,763 60,763 60,763 60,763 60,763 60,763
Fixed assets held for disposal 804 804 804 804 804 804
Notes & accounts receivable 50 50 50 50 50 50
Deferred charges & other assets 231 231 231 231 231 231
--------- --------- --------- --------- --------- ---------
Total assets $ 119,854 $ 119,322 $ 119,322 $ 119,322 $ 119,322 $ 119,322
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 62
UNITED FOODS, INC. (Reduced Expense Case) -- Projection Model (0.0% Growth)
Projected Balance Sheets
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
Historical Projected
1999 2000 2001 2002 2003 2004
---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 4,284 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 11,686 11,686 11,686 11,686 11,686 11,686
Accrued liabilities 6,483 6,483 6,483 6,483 6,483 6,483
Income taxes payable (162) (162) (162) (162) (162) (162)
--------- --------- --------- --------- --------- ---------
Total current liabilities 22,291 20,516 28,788 19,462 19,591 43,846
Long term debt
Revolver -- 10,387 11,859 21,525 21,785 22,104
Long term debt 43,113 38,829 36,320 25,539 24,084 22,500
Line of credit 7,796 -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 50,909 49,216 48,179 47,064 45,869 44,604
Less current portion (4,284) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 46,625 46,707 37,398 45,609 44,285 18,765
Deferred income taxes 4,585 4,585 4,585 4,585 4,585 4,585
--------- --------- --------- --------- --------- ---------
Total liabilities 73,501 71,808 70,771 69,656 68,461 67,196
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,992 3,992 3,992 3,992 3,992 3,992
Retained earnings 35,551 36,712 37,749 38,864 40,059 41,324
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,353 47,514 48,551 49,666 50,861 52,126
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 119,854 $ 119,322 $ 119,322 $ 119,322 $ 119,322 $ 119,322
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 63
UNITED FOODS, INC. (REDUCED EXPENSE CASE) -- Projection Model (0.0% Growth)
Projected Cash Flow Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Projected
2000 2001 2002 2003 2004
-------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,161 $ 1,038 $ 1,115 $ 1,195 $ 1,264
Depreciation 7,910 7,910 7,910 7,910 7,910
-------- ------- -------- ------- -------
Net cash provided by operating activities 9,071 8,948 9,025 9,105 9,174
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,910) (7,910) (7,910) (7,910) (7,910)
-------- ------- -------- ------- -------
Net cash provided by investing activities (7,910) (7,910) (7,910) (7,910) (7,910)
Cash flows from financing activities
Repayment of debt (12,080) (3,547) (11,896) (2,650) (2,848)
Drawdown on revolver 10,387 2,509 10,781 1,455 1,584
-------- ------- -------- ------- -------
Net cash provided by financing activities (1,693) (1,038) (1,115) (1,195) (1,264)
-------- ------- -------- ------- -------
Net additions to cash $ (532) $ -- $ -- $ -- $ --
======== ======= ======== ======= =======
Beginning cash balance 632 100 100 100 100
Ending cash balance 100 100 100 100 100
</TABLE>
<PAGE> 64
UNITED FOODS, INC. (REDUCED EXPENSES CASE) -- Projection Model (2.5% Growth)
Projected Income Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Historical Projected
1999 2000 2001 2002 2003 2004
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $206,743 $211,912 $217,209 $222,640 $228,206 $233,911
Cost of sales 168,228 172,434 176,745 181,163 185,692 190,335
-------- -------- -------- -------- -------- --------
Gross profit 38,515 39,478 40,465 41,476 42,513 43,576
General and administrative, net dep. 8,867 8,589 8,816 9,049 9,288 9,532
Direct selling expenses 16,237 16,643 17,059 17,485 17,923 18,371
-------- -------- -------- -------- -------- --------
Total operating expenses 25,104 25,232 25,875 26,534 27,210 27,903
EBITDA 13,411 14,246 14,590 14,942 15,303 15,673
Depreciation 7,910 7,910 7,910 7,910 7,910 7,910
-------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,910 7,910 7,910 7,910 7,910 7,910
Total operating income 5,501 6,336 6,680 7,032 7,393 7,763
Interest expense -- 3,862 3,962 3,745 3,519 3,385
-------- -------- -------- -------- -------- --------
Other expenses (income) -- 3,862 3,962 3,745 3,519 3,385
Pre-tax income 5,501 2,475 2,718 3,288 3,874 4,378
Provision for income taxes 377 940 1,033 1,249 1,472 1,664
-------- -------- -------- -------- -------- --------
Net income $ 605 $ 1,534 $ 1,685 $ 2,038 $ 2,402 $ 2,715
======== ======== ======== ======== ======== ========
</TABLE>
<PAGE> 65
UNITED FOODS, INC. (REDUCED EXPENSES CASE) -- Projection Model (2.5% Growth)
Projected Balance Sheets
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 632 $ 100 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,117 18,570 19,034 19,510 19,998 20,498
Inventory 34,586 35,451 36,337 37,245 38,176 39,131
Prepaid expenses 3,433 3,519 3,607 3,697 3,789 3,884
Deferred income taxes 1,238 1,269 1,301 1,333 1,367 1,401
--------- --------- --------- --------- --------- ---------
Total current assets 58,006 58,908 60,379 61,886 63,430 65,013
Land 11,970 11,970 11,970 11,970 11,970 11,970
Gross plant and equip. 130,854 138,764 146,674 154,584 162,494 170,404
Accumulated depreciation (82,061) (89,971) (97,881) (105,791) (113,701) (121,611)
--------- --------- --------- --------- --------- ---------
Net P,P&E 60,763 60,763 60,763 60,763 60,763 60,763
Fixed assets held for disposal 804 824 845 866 887 910
Notes & accounts receivable 50 51 53 54 55 57
Deferred charges & other assets 231 237 243 249 255 261
--------- --------- --------- --------- --------- ---------
Total assets $ 119,854 $ 120,783 $ 122,281 $ 123,817 $ 125,391 $ 127,004
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 66
UNITED FOODS, INC. (REDUCED EXPENSES CASE) -- Projection Model (2.5% Growth)
Projected Balance Sheets
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 4,284 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 11,686 11,978 12,278 12,585 12,899 13,222
Accrued liabilities 6,483 6,645 6,811 6,981 7,156 7,335
Income taxes payable (162) (166) (170) (174) (179) (183)
--------- --------- --------- --------- --------- ---------
Total current liabilities 22,291 20,966 29,700 20,847 21,460 46,212
Long term debt
Revolver -- 10,910 12,653 22,338 22,357 22,216
Long term debt 43,113 38,829 36,320 25,539 24,084 22,500
Line of credit 7,796 -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 50,909 49,739 48,973 47,877 46,441 44,716
Less current portion (4,284) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 46,625 47,230 38,192 46,422 44,857 18,877
Deferred income taxes 4,585 4,700 4,817 4,938 5,061 5,188
--------- --------- --------- --------- --------- ---------
Total liabilities 73,501 72,896 72,709 72,206 71,378 70,277
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,992 3,992 3,992 3,992 3,992 3,992
Retained earnings 35,551 37,085 38,770 40,809 43,210 45,925
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,353 47,887 49,572 51,611 54,012 56,727
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 119,854 $ 120,783 $ 122,281 $ 123,817 $ 125,391 $ 127,004
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 67
UNITED FOODS, INC. (REDUCED EXPENSES CASE) -- Projection Model (2.5% Growth)
Projected Cash Flow Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Projected
2000 2001 2002 2003 2004
-------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,534 $ 1,685 $ 2,038 $ 2,402 $ 2,715
Depreciation 7,910 7,910 7,910 7,910 7,910
-------- ------- -------- ------- -------
Net cash provided by operating activities 8,460 8,586 8,914 9,252 9,538
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,910) (7,910) (7,910) (7,910) (7,910)
-------- ------- -------- ------- -------
Net cash provided by investing activities (7,823) (7,820) (7,818) (7,816) (7,813)
Cash flows from financing activities
Repayment of debt (12,080) (3,275) (11,877) (2,891) (3,309)
Drawdown on revolver 10,910 2,509 10,781 1,455 1,584
-------- ------- -------- ------- -------
Net cash provided by financing activities (1,170) (766) (1,096) (1,436) (1,725)
-------- ------- -------- ------- -------
Net additions to cash $ (532) $ 0 $ (0) $ 0 $ --
======== ======= ======== ======= =======
Beginning cash balance 632 100 100 100 100
Ending cash balance 100 100 100 100 100
</TABLE>
<PAGE> 68
UNITED FOODS, INC. (REDUCED EXPENSES CASE) -- Projection Model (5.0% Growth)
Projected Income Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Historical Projected
1999 2000 2001 2002 2003 2004
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $206,743 $217,080 $227,934 $239,331 $251,297 $263,862
Cost of sales 168,228 176,639 185,471 194,745 204,482 214,706
-------- -------- -------- -------- -------- --------
Gross profit 38,515 40,441 42,463 44,586 46,815 49,156
General and administrative, net dep. 8,867 8,810 9,276 9,765 10,278 10,817
Direct selling expenses 16,237 17,049 17,901 18,796 19,736 20,723
-------- -------- -------- -------- -------- --------
Total operating expenses 25,104 25,859 27,177 28,561 30,014 31,540
EBITDA 13,411 14,582 15,286 16,025 16,801 17,616
Depreciation 7,910 7,910 7,910 7,910 7,910 7,910
-------- -------- -------- -------- -------- --------
Total depreciation & amortization 7,910 7,910 7,910 7,910 7,910 7,910
Total operating income 5,501 6,672 7,376 8,115 8,891 9,706
Interest expense -- 3,884 4,023 3,837 3,632 3,507
-------- -------- -------- -------- -------- --------
Other expenses (income) -- 3,884 4,023 3,837 3,632 3,507
Pre-tax income 5,501 2,788 3,353 4,278 5,259 6,199
Provision for income taxes 377 1,059 1,274 1,626 1,998 2,356
-------- -------- -------- -------- -------- --------
Net income $ 605 $ 1,729 $ 2,079 $ 2,653 $ 3,261 $ 3,843
======== ======== ======== ======== ======== ========
</TABLE>
<PAGE> 69
UNITED FOODS, INC. (REDUCED EXPENSES CASE) -- Projection Model (5.0% Growth)
Projected Balance Sheets
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 632 $ 100 $ 100 $ 100 $ 100 $ 100
Accounts receivable 18,117 19,023 19,974 20,973 22,021 23,122
Inventory 34,586 36,315 38,131 40,038 42,039 44,141
Prepaid expenses 3,433 3,605 3,785 3,974 4,173 4,381
Deferred income taxes 1,238 1,300 1,365 1,433 1,505 1,580
--------- --------- --------- --------- --------- ---------
Total current assets 58,006 60,343 63,355 66,518 69,838 73,325
Land 11,970 11,970 11,970 11,970 11,970 11,970
Gross plant and equip 130,854 138,764 146,674 154,584 162,494 170,404
Accumulated depreciation (82,061) (89,971) (97,881) (105,791) (113,701) (121,611)
--------- --------- --------- --------- --------- ---------
Net P,P&E 60,763 60,763 60,763 60,763 60,763 60,763
Fixed assets held for disposal 804 844 886 931 977 1,026
Notes & accounts receivable 50 53 55 58 61 64
Deferred charges & other assets 231 243 255 267 281 295
--------- --------- --------- --------- --------- ---------
Total assets $ 119,854 $ 122,245 $ 125,314 $ 128,537 $ 131,920 $ 135,473
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 70
UNITED FOODS, INC. (REDUCED EXPENSES CASE) -- Projection Model (5.0% Growth)
Projected Balance Sheets
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February)
Historical Projected
1999 2000 2001 2002 2003 2004
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES & EQUITY
Current maturities & short-term debt $ 4,284 $ 2,509 $ 10,781 $ 1,455 $ 1,584 $ 25,839
Accounts payable 11,686 12,270 12,884 13,528 14,204 14,915
Accrued liabilities 6,483 6,807 7,148 7,505 7,880 8,274
Income taxes payable (162) (170) (179) (188) (197) (207)
--------- --------- --------- --------- --------- ---------
Total current liabilities 22,291 21,416 30,634 22,300 23,472 48,821
Long term debt
Revolver -- 11,613 13,926 24,032 24,302 24,223
Long term debt 43,113 38,829 36,320 25,539 24,084 22,500
Line of credit 7,796 -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total debt 50,909 50,442 50,246 49,571 48,386 46,723
Less current portion (4,284) (2,509) (10,781) (1,455) (1,584) (25,839)
--------- --------- --------- --------- --------- ---------
Total long-term debt 46,625 47,933 39,465 48,116 46,802 20,884
Deferred income taxes 4,585 4,814 5,055 5,308 5,573 5,852
--------- --------- --------- --------- --------- ---------
Total liabilities 73,501 74,163 75,154 75,724 75,847 75,557
Common stock 6,810 6,810 6,810 6,810 6,810 6,810
Additional paid-in-capital 3,992 3,992 3,992 3,992 3,992 3,992
Retained earnings 35,551 37,280 39,358 42,011 45,271 49,115
--------- --------- --------- --------- --------- ---------
Total stockholders' equity 46,353 48,082 50,160 52,813 56,073 59,917
--------- --------- --------- --------- --------- ---------
Total liabilities & equity $ 119,854 $ 122,245 $ 125,314 $ 128,537 $ 131,920 $ 135,473
========= ========= ========= ========= ========= =========
</TABLE>
<PAGE> 71
UNITED FOODS, INC. (REDUCED EXPENSES CASE) -- Projection Model (5.0% Growth)
Projected Cash Flow Statements
<TABLE>
<CAPTION>
(Numbers in Thousands)
(Fiscal Year Ended February) Projected
2000 2001 2002 2003 2004
-------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income $ 1,729 $ 2,079 $ 2,653 $ 3,261 $ 3,843
Depreciation 7,910 7,910 7,910 7,910 7,910
-------- ------- -------- ------- -------
Net cash provided by operating activities 7,670 7,922 8,392 8,892 9,361
Cash flows from investing activities
Capital expenditures (net of dispositions) (7,910) (7,910) (7,910) (7,910) (7,910)
-------- ------- -------- ------- -------
Net cash provided by investing activities (7,735) (7,726) (7,717) (7,707) (7,697)
Cash flows from financing activities
Repayment of debt (12,080) (2,705) (11,456) (2,640) (3,247)
Drawdown on revolver 11,613 2,509 10,781 1,455 1,584
-------- ------- -------- ------- -------
Net cash provided by financing activities (467) (196) (675) (1,185) (1,663)
-------- ------- -------- ------- -------
Net additions to cash $ (532) $ -- $ -- $ -- $ --
======== ======= ======== ======= =======
Beginning cash balance 632 100 100 100 100
Ending cash balance 100 100 100 100 100
</TABLE>
<PAGE> 72
Trading and Equity Analysis
Market Value of Equity as a Percentage of Book Value of Equity
Quarterly Since February 1996
[CHART]
30
<PAGE> 73
Trading and Equity Analysis
Total Capitalization to EBIT
Quarterly Since February 1996
[CHART]
31
<PAGE> 74
Trading and Equity Analysis
Total Capitalization to EBITDA
Quarterly Since February 1996
[CHART]
32
<PAGE> 75
Trading and Equity Analysis
United Foods, Inc.
Daily Price & Volume Trading Statistics Since 10/2/97
United Foods Class A United Foods Class B
(GRAPH) (GRAPH)
33
<PAGE> 76
Trading and Equity Analysis
UNITED FOODS CLASS A
Shares Traded at Various Prices From 10/1/97 to 10/1/98
<TABLE>
<CAPTION>
Cumulative
--------------------------------------------------
Days % of Total % of Total Days % of Total % of Total
Trading Daily Avg. Days Trading Trading Daily Avg. Days Trading Trading
Range (1) In Range Traded Volume Volume In Range Traded Volume Volume
--------- -------- ------ ------ ------ -------- ---------- ------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
< $2.20 0 0.0% -- 0.0% 0 0.0% -- 0.0%
$2.20 - $2.45 27 10.3% 20,900 4.3% 27 10.3% 20,900 4.3%
$2.45 - $2.70 77 29.4% 109,500 22.6% 104 39.7% 130,400 27.0%
$2.70 - $2.95 27 10.3% 90,600 18.7% 131 50.0% 221,000 45.7%
$2.95 - $3.20 33 12.6% 44,000 9.1% 164 62.6% 265,000 54.8%
$3.20 - $3.45 68 26.0% 105,300 21.8% 232 88.5% 370,300 76.6%
$3.45 - $3.70 22 8.4% 45,300 9.4% 254 96.9% 415,600 86.0%
$3.70 - $3.95 8 3.1% 67,900 14.0% 262 100.0% 483,500 100.0%
>= - $3.95 0 0.0% -- 0.0% 262 100.0% 483,500 100.0%
Total: 262 100.0% 483,500 100.0%
</TABLE>
UNITED FOODS CLASS A
Shares Traded at Various Prices From 10/1/97 to 10/1/98
[CHART]
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 1,845 shares or $5,698.58 and the
average daily close has been $2.96.
34
<PAGE> 77
Trading and Equity Analysis
UNITED FOODS CLASS B
Shares Traded at Various Prices From 10/1/97 to 10/1/98
<TABLE>
<CAPTION>
Cumulative
----------------------------------------------------
Days % of Total % of Total Days % of Total % of Total
Trading Daily Avg. Days Trading Trading Daily Avg. Days Trading Trading
Range (1) In Range Traded Volume Volume In Range Traded Volume Volume
--------- ---------- ---------- ------- ---------- ---------- ---------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
< $2.25 0 0.0% -- 0.0% 0 0.0% -- 0.0%
$2.25 - $2.50 28 11.1% 34,200 13.3% 28 11.1% 34,200 13.3%
$2.50 - $2.75 51 20.2% 46,600 18.2% 79 31.2% 80,800 31.5%
$2.75 - $3.00 38 15.0% 33,100 12.9% 117 46.2% 113,900 44.4%
$3.00 - $3.25 39 15.4% 33,400 13.0% 156 61.7% 147,300 57.4%
$3.25 - $3.50 47 18.6% 61,700 24.0% 203 80.2% 209,000 81.4%
$3.50 - $3.75 46 18.2% 45,000 17.5% 249 98.4% 254,000 98.9%
$3.75 - $4.00 4 1.6% 2,700 1.1% 253 100.0% 256,700 100.0%
>= - $4.00 0 0.0% -- 0.0% 253 100.0% 256,700 100.0%
Total: 253 100.0% 256,700 100.0%
</TABLE>
UNITED FOODS CLASS B
Shares Traded at Various Prices From 10/1/97 to 10/1/98
[CHART]
(1) Price ranges include low range price and exclude high range price.
(2) The average daily trading volume has been 1,015 shares or $3,088.97 and
the average daily close has been $3.03.
35
<PAGE> 1
Exhibit 17(d)
PRELIMINARY COPY
PROXY STATEMENT
SPECIAL MEETING OF STOCKHOLDERS
TO BE HELD ON AUGUST , 1999
UNITED FOODS, INC.
TEN PICTSWEET DRIVE
BELLS, TENNESSEE 38006-0119
July , 1999
Dear Stockholders:
You are cordially invited to attend a Special Meeting of stockholders of
United Foods, Inc. to be held in the Corporate Conference Room of United Foods,
Inc., Ten Pictsweet Drive, Bells, Tennessee, on August , 1999, at 9:00 a.m.
local time.
This proxy statement is being furnished to the holders of outstanding
shares of Class A Common Stock and Class B Common Stock of United Foods, Inc.,
in connection with the solicitation of proxies by the Board of Directors of
United Foods, Inc. for use at the Special Meeting of stockholders. The Board of
Directors has fixed the close of business on June , 1999 as the record date
for the determination of stockholders entitled to notice of, and to vote at, the
Special Meeting.
As described in this proxy statement, at the Special Meeting you will be
asked to consider and vote upon a proposal to approve and adopt a merger
agreement dated May 14, 1999, pursuant to which you will receive $3.50 in cash,
unless you dissent from the merger and perfect your appraisal rights in
accordance with Delaware law. If the stockholders approve and adopt the merger
agreement, United Foods, Inc. will become a private company and will be owned
wholly by Jim Tankersley, the Company's Chairman and Chief Executive Officer,
and members of his immediate family.
Your Board of Directors, based upon the unanimous recommendation of a
special committee comprised of disinterested directors, has determined that the
merger agreement is advisable and is fair to, and in the best interests of,
United Foods, Inc. and the public stockholders and has approved the merger
agreement. In arriving at its decision, the Board of Directors gave careful
consideration to a number of factors described in the accompanying proxy
statement, including the opinion of J.C. Bradford & Co., L.L.C., financial
advisor to the special committee, to the effect that, as of the date of the
opinion and based upon and subject to certain matters stated in the opinion, the
consideration to be received in the merger by you is fair to you from a
financial point of view. Accordingly, the Board of Directors, acting on the
recommendation of the special committee, recommends that you vote "For" approval
and adoption of the merger agreement.
<PAGE> 2
WHETHER OR NOT YOU PLAN TO ATTEND THE SPECIAL MEETING, YOU ARE REQUESTED TO
COMPLETE, DATE, SIGN AND RETURN THE PROXY CARD. EXECUTED PROXIES WITH NO
INSTRUCTIONS INDICATED THEREON WILL BE VOTED "FOR" APPROVAL AND ADOPTION OF THE
MERGER AGREEMENT.
Sincerely,
B.M. Ennis
President
THIS TRANSACTION HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE FAIRNESS OR MERITS OF
SUCH TRANSACTION NOR UPON THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED
IN THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.
NO PERSONS HAVE BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROXY STATEMENT IN CONNECTION
WITH THE SOLICITATION OF PROXIES AND, IF GIVEN OR MADE, SUCH INFORMATION OR
REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY UNITED
FOODS, INC. OR ANY OTHER PERSON.
This proxy statement, the accompanying Notice of Special Meeting and the
accompanying proxy are first being mailed to stockholders on or about July
, 1999.
The date of this proxy statement is July , 1999.
<PAGE> 3
PRELIMINARY COPY
UNITED FOODS, INC.
TEN PICTSWEET DRIVE
BELLS, TENNESSEE 38006-0119
NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
TO BE HELD AUGUST , 1999
To the Stockholders of UNITED FOODS, INC.:
NOTICE IS HEREBY GIVEN that a Special Meeting of Stockholders (the "Special
Meeting") of United Foods, Inc., a Delaware corporation (the "Company"), will be
held in the Corporate Conference Room of United Foods, Inc., Ten Pictsweet
Drive, Bells, Tennessee, on August , 1999, at 9:00 a.m., local time, for the
following purposes:
1. To consider and vote upon a proposal to approve and adopt an
Agreement and Plan of Merger, dated May 14, 1999 (the "Merger Agreement"),
among Pictsweet LLC ("Parent"), UF Acquisition Corp., a wholly-owned
subsidiary of Parent ("Purchaser") and the Company. A copy of the Merger
Agreement is attached to the accompanying Proxy Statement as Appendix A. As
more fully described in the Proxy Statement, the Merger Agreement provides
that: (i) Purchaser would be merged with and into the Company (the
"Merger"), with the Company continuing as the surviving corporation; (ii)
the Company would thereupon become a wholly-owned subsidiary of Parent; and
(iii) each outstanding share of Class A common stock and Class B common
stock (the "Class A Common Stock" and "Class B Common Stock," respectively,
and together, the "Common Stock") of the Company would be converted into
the right to receive $3.50 in cash, without interest, except for (x) all
shares of Common Stock owned by the Jim Tankersley Family (as defined
below), (y) shares of Common Stock owned by the Company as treasury stock
and (z) shares of Common Stock held by stockholders who perfect their
appraisal rights in accordance with Delaware law; and
2. To transact such other business as may properly come before the
Special Meeting or any adjournments or postponements thereof.
The Board of Directors has fixed the close of business on June , 1999 as
the record date for the determination of stockholders entitled to notice of, and
to vote at, the Special Meeting. Only holders of Common Stock of record at the
close of business on that date will be entitled to notice of and to vote at the
Special Meeting or any adjournments or postponements thereof.
Parent and Purchaser are newly formed entities organized by James I.
Tankersley (the Company's Chairman and Chief Executive Officer), his wife, Edna
W. Tankersley, and their children, Darla T. Darnall (a director of the Company),
Kelle T. Northern (a director of the Company) and James W. Tankersley (a
director of the Company) (together with their affiliates, the "Jim Tankersley
Family") for the purpose of effecting the transactions described in the Proxy
Statement. The members of the Jim Tankersley Family directly own no outstanding
Class A Common Stock and an aggregate of 2,553,415 outstanding shares, or
approximately 60.9%, of the Class B Common Stock. Each member of the Jim
Tankersley Family has agreed to transfer to Parent immediately prior to the
effective time of the merger all of such person's shares of Common Stock, and
each member of the Jim Tankersley Family will receive membership interests in
Parent. At the effective time of the Merger, the Jim Tankersley Family will own
in the aggregate 100% of
<PAGE> 4
Parent's total issued and outstanding interests, and Parent will own
approximately 60.9% of the total issued and outstanding Class B Common Stock.
See "The Special Meeting--Vote Required; Revocability of Proxies."
The accompanying Proxy Statement describes the Merger Agreement, the
proposed Merger and the actions to be taken in connection with the Merger. To
ensure that your vote will be counted, please complete, date, sign and return
the enclosed proxy card, whether or not you plan to attend the Special Meeting.
You may revoke your proxy in the manner described in the accompanying Proxy
Statement at any time before it is voted at the Special Meeting.
If the Merger is consummated, holders of Common Stock who properly demand
appraisal prior to the stockholder vote on the Merger Agreement, do not vote in
favor of approval and adoption of the Merger Agreement and otherwise comply with
the requirements of Section 262 of the Delaware General Corporation Law will be
entitled to statutory appraisal rights. See "Appraisal Rights" in the
accompanying Proxy Statement for a statement of the rights of dissenting
stockholders and a description of the procedures required to be followed.
UNITED FOODS, INC.
Donald Dresser
Secretary and
Senior Vice President, Administration
THE BOARD OF DIRECTORS, ACTING ON THE RECOMMENDATION OF A DISINTERESTED
SPECIAL COMMITTEE, RECOMMENDS THAT STOCKHOLDERS VOTE "FOR" APPROVAL AND ADOPTION
OF THE MERGER AGREEMENT.
THE MERGER AGREEMENT MUST BE APPROVED AND ADOPTED BY TWO SEPARATE VOTING
REQUIREMENTS:
1. THE AFFIRMATIVE VOTE OF A MAJORITY OF THE OUTSTANDING SHARES OF
COMMON STOCK ENTITLED TO VOTE. FOR THIS FIRST VOTING REQUIREMENT, THE VOTES
OF CLASS A COMMON STOCK AND CLASS B COMMON STOCK WILL BE COUNTED TOGETHER
AS A SINGLE CLASS, WITH EACH SHARE OF CLASS A COMMON STOCK HAVING ONE-TENTH
VOTE AND EACH SHARE OF CLASS B COMMON STOCK HAVING ONE VOTE; AND
2. THE AFFIRMATIVE VOTE OF A MAJORITY OF ALL SHARES OF COMMON STOCK
ENTITLED TO VOTE WHICH ARE ACTUALLY VOTED "FOR" OR "AGAINST" THE PROPOSAL,
EXCLUDING ALL COMMON STOCK OWNED BY THE JIM TANKERSLEY FAMILY, WITH EACH
SHARE OF COMMON STOCK HAVING ONE FULL VOTE REGARDLESS OF CLASS.
WE URGE YOU TO SIGN AND RETURN THE ENCLOSED PROXY CARD AS PROMPTLY AS
POSSIBLE, WHETHER OR NOT YOU PLAN TO ATTEND THE MEETING IN PERSON. YOU MAY
REVOKE THE PROXY AT ANY TIME PRIOR TO ITS EXERCISE IN THE MANNER DESCRIBED IN
THE ATTACHED PROXY STATEMENT. ANY STOCKHOLDER PRESENT AT THE SPECIAL MEETING,
INCLUDING ANY ADJOURNMENTS OR POSTPONEMENTS THEREOF, MAY REVOKE SUCH HOLDER'S
PROXY AND VOTE PERSONALLY ON THE MERGER AGREEMENT AT THE SPECIAL MEETING.
EXECUTED PROXIES WITH NO INSTRUCTIONS INDICATED THEREON WILL BE VOTED "FOR"
APPROVAL AND ADOPTION OF THE MERGER AGREEMENT.
Dated: July , 1999
<PAGE> 5
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
QUESTIONS AND ANSWERS ABOUT THE MERGER...................... 1
SUMMARY..................................................... 4
The Special Meeting....................................... 4
Special Factors........................................... 5
The Merger................................................ 8
Appraisal Rights.......................................... 10
The Parties............................................... 11
Market Price and Dividend Information..................... 11
Summary Historical and Unaudited Pro Forma Financial
Information............................................ 13
THE SPECIAL MEETING......................................... 14
Matters to Be Considered at the Special Meeting........... 14
Record Date and Voting.................................... 14
Vote Required; Revocability of Proxies.................... 15
Solicitation of Proxies................................... 16
SPECIAL FACTORS............................................. 17
Background of the Merger.................................. 17
Purpose and Structure of the Merger....................... 23
Recommendation of the Special Committee................... 24
Recommendation of the Board of Directors.................. 27
Opinion of the Special Committee's Financial Advisor...... 27
Plans For the Company After the Merger.................... 32
Plans for the Company if the Merger is Not Consummated.... 32
Interests of Certain Persons in the Merger................ 32
Perspective of the Jim Tankersley Family, Pictsweet LLC
and UF Acquisition Corp. on the Merger................. 34
Certain Effects of the Merger............................. 34
Certain Federal Income Tax Consequences................... 35
Risk of Fraudulent Conveyance............................. 36
Anticipated Accounting Treatment.......................... 37
Regulatory Approvals...................................... 37
Sources of Funds; Fees and Expenses....................... 37
THE MERGER AGREEMENT........................................ 40
General................................................... 40
Representations and Warranties............................ 41
Conduct of the Business Pending the Merger................ 42
Other Potential Bidders................................... 43
Conditions to the Merger.................................. 44
Termination............................................... 45
Fees and Expenses......................................... 46
Indemnification of Directors and Officers................. 46
Access to Information..................................... 47
Legal Compliance.......................................... 47
Amendment................................................. 47
STOCKHOLDER LITIGATION...................................... 47
APPRAISAL RIGHTS............................................ 48
</TABLE>
i
<PAGE> 6
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
BUSINESS OF THE COMPANY..................................... 52
SELECTED HISTORICAL FINANCIAL DATA.......................... 56
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS................................. 57
Financial Condition....................................... 57
Results of Operations..................................... 61
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK...................................................... 65
DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY, PICTSWEET
LLC AND UF ACQUISITION CORP. ............................. 66
Information Concerning Directors and Executive Officers of
the Company............................................ 66
Information Concerning Directors and Executive Officers of
Pictsweet LLC and UF Acquisition Corp.................. 68
Information Concerning Directors and Executive Officers of
the Surviving Corporation.............................. 68
SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN BENEFICIAL
OWNERS.................................................... 69
MARKET PRICE AND DIVIDEND INFORMATION....................... 70
CERTAIN TRANSACTIONS IN THE COMMON STOCK.................... 71
INDEPENDENT PUBLIC ACCOUNTANTS.............................. 72
STOCKHOLDER PROPOSALS....................................... 72
ADDITIONAL INFORMATION...................................... 72
AVAILABLE INFORMATION....................................... 72
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA................. F-1
APPENDIX A -- THE MERGER AGREEMENT.......................... A-1
APPENDIX B -- OPINION OF J.C. BRADFORD & CO. , L.L.C........ B-1
APPENDIX C -- SECTION 262 OF THE DELAWARE GENERAL
CORPORATION LAW........................................... C-1
</TABLE>
ii
<PAGE> 7
QUESTIONS AND ANSWERS ABOUT THE MERGER
Q: WHAT IS THE PROPOSED TRANSACTION?
A: United Foods, Inc. will be acquired in a merger transaction by the Jim
Tankersley Family.
Q: WHO IS THE JIM TANKERSLEY FAMILY?
A: The Jim Tankersley Family is composed of James I. Tankersley, Chairman and
Chief Executive Officer of United Foods, Inc., his wife, Edna W.
Tankersley, and their children, Darla T. Darnall, Kelle T. Northern and
James W. Tankersley. Each member of the Jim Tankersley Family is a
stockholder of United Foods, Inc., and James I. Tankersley, Darla T.
Darnall, Kelle T. Northern and James W. Tankersley are also directors. The
Jim Tankersley Family does not include Daniel B. Tankersley and Julia T.
Wells, brother and sister of James I. Tankersley, who are directors and
stockholders of United Foods, Inc.
Q: WHAT WILL I RECEIVE IN THE MERGER?
A: You will be entitled to receive $3.50 in cash, without interest, for each
share of United Foods, Inc. Common Stock you own, unless you properly
demand appraisal prior to the stockholder vote on the merger agreement, do
not vote in favor of approval and adoption of the merger agreement and
otherwise perfect your appraisal rights under Delaware law. See "What
Rights Do I Have if I Oppose the Merger" below.
Q: WHAT DOES THE BOARD OF DIRECTORS RECOMMEND REGARDING
THE MERGER AGREEMENT?
A: In the opinion of the board of directors, based upon the unanimous
recommendation of a disinterested special committee, the merger agreement
is advisable and is fair to you and in your best interests, and the board
of directors has accordingly unanimously approved the merger agreement and
recommends that you vote "For" approval and adoption of the merger
agreement. To review the background and reasons for the merger in greater
detail, see pages 17 to 27.
Q: WHAT CONFLICTS OF INTEREST DOES THE BOARD OF DIRECTORS
HAVE IN RECOMMENDING APPROVAL AND ADOPTION OF THE MERGER AGREEMENT?
A: Four of the eleven members of the board of directors have a conflict of
interest in recommending that you vote "For" approval and adoption of the
merger agreement because they are members of the Jim Tankersley Family. If
the merger occurs, the Jim Tankersley Family will own United Foods, Inc.
and will receive the benefits of any future earnings and any increase in
value. To review the factors considered by the special committee and the
board of directors in approving the merger agreement and in making their
recommendation, see pages 24 to 32.
Q: WHAT VOTE IS REQUIRED TO APPROVE AND ADOPT THE MERGER
AGREEMENT?
A: The merger agreement must be approved and adopted by two separate voting
requirements:
1
<PAGE> 8
1. the affirmative vote of a majority of the outstanding shares of Common
Stock entitled to vote. For this first voting requirement, the votes of
Class A Common Stock and Class B Common Stock will be counted together
as a single class, with each share of Class A Common Stock having
one-tenth vote and each share of Class B Common Stock having one vote.
The Jim Tankersley Family's shares of Common Stock represent 57.3% of
the votes entitled to be counted for this voting requirement, and they
intend to vote "For" approval and adoption of the merger agreement.
Therefore, this voting requirement will be met regardless of how you
vote; and
2. the affirmative vote of a majority of all shares of Common Stock
entitled to vote which are actually voted "For" or "Against" the
proposal, excluding all Common Stock owned by the Jim Tankersley
Family, with each share of Common Stock having one full vote regardless
of class. On the record date, for purposes of the second voting
requirement, there are 4,256,514 shares entitled to vote, and assuming
all such shares are voted, the number of shares necessary to approve
and adopt the merger agreement is 2,128,258. Members of the board of
directors other than the Jim Tankersley Family own 1,041,946 shares of
Common Stock representing 24.5% of the votes entitled to be counted for
this voting requirement and intend to vote "For" approval and adoption
of the merger agreement.
Q: HOW DID THE BOARD OF DIRECTORS DETERMINE THAT THE PRICE
PER SHARE I WILL RECEIVE IN THE PROPOSED MERGER IS FAIR TO ME?
A: The board of directors formed a special committee consisting of two
disinterested directors to evaluate and negotiate the terms of the merger
with the Jim Tankersley Family. The special committee selected and
retained independent legal and financial advisors to assist it in the
evaluation and negotiation, and received an opinion from its financial
advisor, on which the special committee and the board of directors relied,
that as of its date the $3.50 per share you will receive in the proposed
merger is fair to you from a financial point of view. To review the
factors considered by the special committee and the board of directors in
approving the merger agreement, see pages 24 to 32.
Q: WHAT ARE THE DISADVANTAGES TO ME OF THE PROPOSED
MERGER?
A: Following the proposed merger, you and other public stockholders will no
longer benefit from any earnings or increase in value of United Foods,
Inc.
Q: WHAT DO I NEED TO DO NOW?
A: Please mark your vote on, sign, date and mail your proxy card in the
enclosed return envelope as soon as possible, so that your shares may be
counted at the special meeting.
Q: WHAT RIGHTS DO I HAVE IF I OPPOSE THE MERGER?
A: If you oppose the merger, you may choose not to vote in favor of the
merger agreement and seek appraisal of the fair value of your shares, but
only if you comply with the Delaware law procedures set forth on pages 48
to 51 and in Appendix C to this proxy statement.
2
<PAGE> 9
Q: WHO CAN VOTE ON THE MERGER AGREEMENT?
A: If you owned shares as of the close of business on June , 1999, you are
entitled to notice of, and to vote at, the special meeting regarding the
proposal to approve and adopt the merger agreement.
Q: SHOULD I SEND MY STOCK CERTIFICATES NOW?
A: No. If the merger is completed, we will send you a transmittal form and
written instructions for exchanging your share certificates.
Q: IF MY SHARES ARE HELD IN "STREET NAME" BY MY BROKER, WILL
MY BROKER VOTE MY SHARES FOR ME?
A: Your broker will vote your shares ONLY if you provide instructions on how
to vote. You should follow the directions provided by your broker
regarding how to instruct your broker to vote your shares.
Q: MAY I CHANGE MY VOTE AFTER I HAVE MAILED MY SIGNED PROXY
CARD?
A: Yes. Just send in a written revocation or another signed proxy card with a
later date to Donald Dresser at United Foods, Inc. before the special
meeting or simply attend the special meeting and vote in person. Mr.
Dresser's address is Ten Pictsweet Drive, Bells, Tennessee 38006-0119.
Q: WHEN DO YOU EXPECT THE MERGER TO BE COMPLETED?
A: We are working toward completing the merger as quickly as possible. If the
merger agreement is approved and adopted and the other conditions to the
merger are satisfied, we expect to complete the merger on or shortly after
the date of the special meeting.
Q: WHAT ARE THE U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE
MERGER TO ME?
A: This transaction generally will be taxable to you for U.S. federal income
tax purposes. To review the federal income tax consequences to
stockholders in greater detail, see pages 35 to 36.
Q: WHAT OTHER MATTERS WILL BE VOTED ON AT THE SPECIAL
MEETING?
A: We do not expect that any other matters will be voted upon at the special
meeting.
Q: WHO CAN HELP ANSWER MY QUESTIONS?
A: If you have more questions about the merger or would like additional
copies of this proxy statement, you should contact Donald Dresser,
Secretary and Senior Vice President, Administration of United Foods, Inc.,
at (901) 422-7600.
3
<PAGE> 10
SUMMARY
The following is a brief summary of certain information generally contained
elsewhere in this proxy statement. This summary is not intended to be a complete
description of the matters covered in this proxy statement and is qualified in
its entirety by reference to the more detailed information contained in this
proxy statement or in the documents attached as appendices hereto. Capitalized
terms used but not defined in this summary shall have the meanings ascribed to
them elsewhere in this proxy statement. Stockholders are urged to read this
proxy statement and the appendices hereto in their entirety.
THE SPECIAL MEETING
Matters to be Considered at the Special Meeting. The special meeting is
scheduled to be held in the Corporate Conference Room of United Foods, Inc. (the
"Company"), Ten Pictsweet Drive, Bells, Tennessee, on August , 1999, at 9:00
a.m., local time. At the special meeting, stockholders will consider and vote
upon (i) a proposal to approve and adopt the merger agreement and (ii) such
other matters as may properly be brought before the special meeting. See "The
Special Meeting -- Matters To Be Considered at the Special Meeting." The merger
agreement provides that the Company will be acquired in a merger transaction by
Pictsweet LLC and UF Acquisition Corp., newly formed entities organized by James
I. Tankersley, Edna W. Tankersley, Darla T. Darnall, Kelle T. Northern and James
W. Tankersley (together with their affiliates, the "Jim Tankersley Family"). In
the merger, the public stockholders will receive the merger consideration of
$3.50 per share in cash, without interest.
Record Date and Voting. The record date for the special meeting is the
close of business on June , 1999. At the close of business on the record date,
there were 2,617,243 shares of Class A Common Stock outstanding and entitled to
vote, held by approximately 2,000 stockholders of record, and there were
4,192,686 shares of Class B Common Stock outstanding and entitled to vote, held
by approximately 1,500 stockholders of record. The presence, either in person or
by proxy, of a majority of the outstanding shares of the Common Stock entitled
to be voted is necessary to constitute a quorum for the transaction of business
at the special meeting. See "The Special Meeting -- Record Date and Voting."
Vote Required; Revocability of Proxies. The merger agreement must be
approved and adopted by two separate voting requirements:
1. the affirmative vote of a majority of the outstanding shares of
Common Stock (including both Class A Common Stock and Class B Common Stock)
entitled to vote. For this first voting requirement, the votes of Class A
Common Stock and Class B Common Stock will be counted together as a single
class, with each share of Class A Common Stock having one-tenth vote and
each share of Class B Common Stock having one vote. The Jim Tankersley
Family's shares of Common Stock represent 57.3% of the votes entitled to be
counted for this voting requirement, and they intend to vote "For" approval
and adoption of the merger agreement. Therefore, this voting requirement
will be met regardless of how you vote; and
2. the affirmative vote of a majority of all shares of Common Stock
entitled to vote which are actually voted "For" or "Against" the proposal,
excluding all Common Stock owned by the Jim Tankersley Family, with each
share of Common Stock having one full vote regardless of class. On the
record date, for purposes of the second
4
<PAGE> 11
voting requirement, there are 4,256,514 shares entitled to vote, and
assuming all such shares are voted, the number of shares necessary to
approve and adopt the merger agreement is 2,128,258. Members of the board
of directors other than the Jim Tankersley Family own 1,041,946 shares of
Common Stock representing 24.5% of the votes entitled to be counted for
this voting requirement and intend to vote "For" approval and adoption of
the merger agreement.
The first voting requirement is required by the Delaware General
Corporation Law ("DGCL") and the Company's Certificate of Incorporation. The
second voting requirement is required by the merger agreement (the first and
second voting requirements together being the "Required Stockholder Vote").
Because the first voting requirement of the Required Stockholder Vote on
the merger agreement is based upon the total number of outstanding shares of
Common Stock, the failure to submit a proxy card (or to vote in person at the
special meeting) or the abstention from voting by a stockholder (including
broker non-votes) will have the same effect as a vote "Against" approval and
adoption of the merger agreement. Because the second voting requirement of the
Required Stockholder Vote on the merger agreement is based upon votes actually
cast "For" or "Against" the proposal, the failure to submit a proxy card (or to
vote in person at the special meeting) or the abstention from voting by a
stockholder (including broker non-votes) will have no effect on the outcome of
such voting requirement. Brokers who hold shares of Common Stock as nominees
will not have discretionary authority to vote such shares in the absence of
instructions from the beneficial owners thereof. See "The Special
Meeting -- Vote Required; Revocability of Proxies."
A stockholder may revoke a proxy at any time prior to its exercise by doing
the following:
- delivering to Donald Dresser, Secretary and Senior Vice President,
Administration, United Foods, Inc., Ten Pictsweet Drive, Bells, Tennessee
38006-0119, a written notice of revocation prior to the special meeting;
- delivering prior to the special meeting a duly executed proxy bearing a
date later than the prior proxy; or
- attending the special meeting and voting in person.
The presence of a stockholder at the special meeting will not in and of
itself automatically revoke such stockholder's proxy. If no instructions are
indicated on a properly executed proxy, such proxy will be voted "For" approval
and adoption of the merger agreement.
SPECIAL FACTORS
Background of the Merger. For a description of the events leading to the
approval of the merger agreement by the Company's board of directors and its
special committee, see "Special Factors -- Background of the Merger."
Purpose and Structure of the Merger. For the Jim Tankersley Family, the
purpose of the merger is to acquire all the equity interests of the Company for
the reasons described in "Special Factors -- Purpose and Structure of the
Merger." The acquisition of those equity interests, represented by the shares of
the Class A Common Stock and Class B Common Stock outstanding as of the
effective time of the merger and held by persons
5
<PAGE> 12
other than the Jim Tankersley Family, is to be effected through a cash merger in
order to provide a prompt and orderly transfer to the Jim Tankersley Family of
ownership of the equity interests represented by the shares held by the public
stockholders and prompt payment of the merger consideration to the public
stockholders. See "Special Factors -- Purpose and Structure of the Merger."
Recommendation of the Special Committee. A special committee comprised of
two disinterested directors of the Company concluded, and based on such
conclusion the board of directors concluded, that the terms of the merger are
fair to, and in the best interests of, the public stockholders and the Company
and recommended that the board of directors approve the merger agreement. For a
discussion of the factors considered by the special committee in making its
recommendation, see "Special Factors -- Recommendation of the Special
Committee."
Recommendation of the Board of Directors. On May 14, 1999, by unanimous
vote of all directors, based on the recommendation of the special committee, the
board of directors (i) determined that the merger agreement is advisable and is
fair to, and in the best interests of, the Company and the public stockholders,
(ii) approved the merger agreement and (iii) recommended that the stockholders
vote "For" approval and adoption of the merger agreement. See "Special
Factors -- Recommendation of the Board of Directors."
Factors Considered by the Special Committee and the Board of Directors. In
reaching their decisions to recommend the approval and adoption of the merger
agreement, the special committee and the board of directors considered a number
of factors, including the following:
- the belief that stockholder value was not likely to be higher than $3.50
per share if the Company remained a public company, which belief was
based on, among other things, the competitive condition of a
consolidating industry, the lack of consistent growth expectations, the
limited trading volume and market sponsorship of its Common Stock, and
the firm commitment of the Jim Tankersley Family not to sell their Common
Stock or liquidate the Company.
- the belief that the $3.50 per share to be received by the public
stockholders was the highest price which could be negotiated by the
special committee with the Jim Tankersley Family and the fact that such
price represented significant premiums over the closing sale price
immediately prior to the announcement of the merger proposal as well as
one year prior to that announcement.
- the opinion of the financial advisor to the special committee, that
subject to the assumptions and limitations stated therein, as of May 14,
1999, the $3.50 per share consideration to be received by the public
stockholders was fair from a financial point of view.
- the terms of the merger agreement which include a voting requirement that
the merger agreement be approved and adopted by a majority of the votes
cast by the public stockholders.
Additional factors considered by the special committee and the board of
directors are set forth on pages 24 to 32.
Opinion of the Financial Advisor to the Special Committee. On January 20,
1999, J.C. Bradford & Co., L.L.C. ("J.C. Bradford"), as financial advisor to the
special committee, delivered its written opinion, which was confirmed orally on
May 10, 1999 and
6
<PAGE> 13
in writing on May 14, 1999 and on the date of this proxy statement, to the
special committee and to the board of directors that, subject to the assumptions
and limitations stated therein, as of such dates, the $3.50 cash per share of
Common Stock to be received by the public stockholders in the merger is fair to
the public stockholders from a financial point of view. The full text of the
written opinion of J.C. Bradford, which sets forth assumptions made, matters
considered and limitations on the review undertaken in connection with the
opinion, is attached hereto as Appendix B. Stockholders are urged to, and
should, read such opinion in its entirety. See "Special Factors -- Opinion of
the Special Committee's Financial Advisor."
Interest of Certain Persons in the Merger. In considering the
recommendation of the board of directors with respect to the merger, public
stockholders should be aware that certain officers and directors have certain
interests that present actual or potential conflicts of interest in connection
with the merger. For a more detailed discussion of such interests, see "Special
Factors -- Interests of Certain Persons in the Merger." The special committee
and board of directors were aware of potential or actual conflicts of interest
and considered them along with other matters described under "Special
Factors -- Recommendation of the Special Committee."
As of June , 1999, the members of the Jim Tankersley Family directly
owned no outstanding shares of Class A Common Stock, and an aggregate of
2,553,415 outstanding shares, or approximately 60.9%, of the Class B Common
Stock. The directors of the Company (excluding members of the Jim Tankersley
Family) owned 1,041,946 shares of Class A Common Stock, representing 27.8% of
such shares outstanding, and owned 313,783 shares of Class B Common Stock
representing approximately 7.5% of such shares outstanding.
Shares of Class B Common Stock may be converted into shares of Class A
Common Stock on a one-for-one basis at the election of the holder pursuant to
the Company's Certificate of Incorporation. Accordingly, the Jim Tankersley
Family is deemed to own beneficially 2,553,415 shares, or approximately 49.4% of
the Class A Common Stock, even though its members directly own no Class A Common
Stock. The Jim Tankersley Family has advised the Company that it does not intend
to convert any shares of Class B Common Stock into Class A Common Stock.
The members of the Jim Tankersley Family are James I. Tankersley, his wife,
Edna W. Tankersley, and their children, Darla T. Darnall, Kelle T. Northern and
James W. Tankersley. The Jim Tankersley Family has formed Pictsweet LLC and UF
Acquisition Corp. to effect the merger through a merger of UF Acquisition Corp.
with and into United Foods, Inc., with United Foods, Inc. as the surviving
corporation. The members of the Jim Tankersley Family comprise the membership of
Pictsweet LLC. Pictsweet LLC owns all of the outstanding shares of UF
Acquisition Corp. James I. Tankersley is the Chairman and Chief Executive
Officer of United Foods, Inc. Mrs. Darnall, Mrs. Northern and Mr. James W.
Tankersley are directors of United Foods, Inc. The Jim Tankersley Family does
not include Daniel B. Tankersley or Julia T. Wells, brother and sister of James
I. Tankersley, who are also directors of the Company.
For a description of the relationships between the Jim Tankersley Family,
Pictsweet LLC and UF Acquisition Corp., and United Foods, Inc., see "Special
Factors -- Interests of Certain Persons in the Merger." For a discussion of
certain agreements by Pictsweet LLC with respect to indemnification of directors
and officers of United Foods, Inc., see "The Merger Agreement -- Indemnification
of Directors and Officers."
7
<PAGE> 14
Certain Effects of the Merger. Upon consummation of the merger, each
outstanding share of Common Stock held by a public stockholder, other than
dissenting shares held by stockholders who properly exercise their appraisal
rights under the DGCL and which are not withdrawn as of the effective time of
the merger ("Dissenting Shares") will be converted into the right to receive the
merger consideration of $3.50 in cash, without interest. The public stockholders
will cease to have any ownership interest in the Company or rights as
stockholders. The public stockholders will no longer benefit from any increases
in the value of the Company and will no longer bear the risk of any decreases in
the value of the Company.
Following the merger, the Jim Tankersley Family, which currently owns 60.9%
of the outstanding shares of Class B Common Stock, will own through Pictsweet
LLC all of the surviving corporation's outstanding shares of Common Stock. The
Jim Tankersley Family will have complete control over the management and conduct
of the Company's business, all income generated by the Company and any future
increase in the Company's value. Similarly, the Jim Tankersley Family will also
bear the risk of any losses incurred in the operation of the Company and any
decrease in the value of the Company.
As a result of the merger, the Company will be privately held and there
will be no public market for the Common Stock. Upon consummation of the merger,
it is anticipated that the Common Stock will cease to be listed on the American
Stock Exchange and the Pacific Exchange and the registration of the Common Stock
under the Securities Exchange Act of 1934, as amended (the "Exchange Act") will
be terminated. Moreover, the Company will be relieved of the obligation to
comply with the proxy rules of Regulation 14A under Section 14 of the Exchange
Act, and its officers, directors and 10% stockholders will be relieved of the
reporting requirements and restrictions on insider trading under Section 16 of
the Exchange Act. Accordingly, less information will be required to be made
publicly available than presently is the case. See "Special Factors -- Certain
Effects of the Merger."
Certain U.S. Federal Income Tax Consequences. The receipt of cash in
exchange for Common Stock pursuant to the merger will be a taxable transaction
for United States federal income tax purposes and may also be a taxable
transaction under applicable state, local and foreign tax laws. Stockholders
should consult their own tax advisors regarding the U.S. federal income tax
consequences of the merger, as well as any tax consequences under the laws of
any state or other jurisdiction. See "Special Factors -- Certain Federal Income
Tax Consequences."
Stockholder Litigation. During March 1999, a complaint was filed in a
Delaware Court of Chancery against the Company and directors of the Company by a
stockholder of the Company. The complaint seeks class action status and requests
injunctive and other relief with respect to the proposal by the Jim Tankersley
Family to acquire the remaining shares of the Common Stock that are not owned by
them. During May 1999, a second complaint was filed in a Delaware Court of
Chancery against the Company and its directors seeking class action status and
similar relief. See "Stockholder Litigation."
THE MERGER
General. Upon consummation of the merger, UF Acquisition Corp. will be
merged with and into United Foods, Inc. and United Foods, Inc. will be the
surviving corporation. The surviving corporation will succeed to all the rights
and obligations of United Foods, Inc. and UF Acquisition Corp.
8
<PAGE> 15
Treatment of Shares in the Merger. Subject to the provisions of the merger
agreement, at the effective time of the merger, each share of Common Stock
outstanding immediately prior to the effective time of the merger will be
converted into the right to receive the merger consideration by virtue of the
merger and without any action on the part of the holder thereof, except for all
shares of Common Stock owned by the Jim Tankersley Family, treasury stock and
Dissenting Shares. The merger consideration will be payable upon surrender of
the certificate representing these shares of Common Stock. See "The Merger
Agreement -- General."
Effective Time. Pursuant to the merger agreement, the effective time of
the merger will occur upon the filing of a certificate of merger with the
Secretary of State of the State of Delaware or at such time thereafter as is
agreed to between Pictsweet LLC and United Foods, Inc. and provided in the
certificate of merger. See "The Merger Agreement -- General."
Exchange of Share Certificates. As soon as reasonably practicable after
the effective time of the merger, Pictsweet LLC and United Foods, Inc. shall
cause First Union National Bank, as paying agent, to mail to each holder of
record as of the effective time of the merger (other than the Jim Tankersley
Family) of an outstanding certificate or certificates for shares of Common
Stock, a letter of transmittal and instructions for use in effecting the
surrender of such certificate for payment in accordance with the merger
agreement. Upon surrender to the paying agent of a certificate, together with a
duly executed letter of transmittal, the holder thereof shall be entitled to
receive cash in an amount equal to the product of the number of shares of Common
Stock represented by such certificate and the merger consideration in cash,
without interest thereon, less any applicable withholding tax, and such
certificate shall then be canceled.
Until surrendered pursuant to the procedures described above, each
certificate (other than certificates representing shares of Common Stock owned
by the Jim Tankersley Family, treasury stock and Dissenting Shares) shall
represent for all purposes solely the right to receive the merger consideration
multiplied by the number of shares of Common Stock evidenced by such
certificate, without any interest thereon, subject to any applicable withholding
obligation. See "The Merger Agreement -- General." STOCKHOLDERS SHOULD NOT SEND
ANY COMMON STOCK CERTIFICATES WITH THEIR PROXY CARDS.
Conditions to the Merger. Consummation of the merger is subject to various
conditions, including, among others: (i) the approval and adoption of the merger
agreement by the Required Stockholder Vote, (ii) the absence of claims to
prevent or delay the consummation of the merger; (iii) the number of Dissenting
Shares shall not exceed 250,000 shares of Common Stock; and (iv) no loss of a
significant customer of the Company as specified in the merger agreement.
Certain of the conditions must be satisfied on or before the date of the special
meeting. See "The Merger Agreement -- Conditions to the Merger."
Other Potential Bidders. Pursuant to the merger agreement, the Company has
agreed that it shall furnish information and access, in response to unsolicited
requests for information and access, received prior to or after the date of the
merger agreement, to the same extent as provided to Pictsweet LLC or UF
Acquisition Corp., to any person, pursuant to appropriate confidentiality
agreements, and may participate in discussions and negotiations with any such
person concerning any merger, sale of assets, sale of shares of capital stock or
similar transaction (such transactions being referred to herein as a
9
<PAGE> 16
"Competing Transaction") involving the Company or any division of the Company,
only if the special committee determines, after consultation with its counsel
and financial advisor, that such action is necessary in light of the fiduciary
duties of the board of directors to the public stockholders. The Jim Tankersley
Family has stated that it will not vote in favor of any Competing Transaction or
sell their shares of Common Stock to any third party. Except as described above,
the Company has agreed not to solicit, participate in or initiate discussions
with any person concerning any merger, sale of assets, sale of shares of capital
stock or similar transaction involving the Company. See "The Merger Agreement
-- Other Potential Bidders."
Termination of the Merger Agreement. The merger agreement may be
terminated at any time prior to the effective time of the merger, whether before
or after approval and adoption by the stockholders, for a number of reasons,
including: (i) by the mutual written consent of the Company and Pictsweet LLC;
(ii) by either the Company or Pictsweet LLC if the merger agreement shall have
been voted on by the stockholders of the Company at the special meeting and the
vote shall not have been sufficient to approve and adopt the merger agreement;
(iii) by either the Company or Pictsweet LLC if any governmental entity has
issued an order, decree or ruling prohibiting the merger and such ruling has
become final and non-appealable; (iv) by either the Company or Pictsweet LLC in
the event the merger is not consummated by September 30, 1999; or (v) by either
the Company or Pictsweet LLC, if, consistent with the terms of the merger
agreement, the board of directors of the Company withdraws, modifies or changes
its recommendation of the merger agreement in a manner adverse to the Company or
Pictsweet LLC or shall have resolved to do any of the foregoing or the board of
directors of the Company shall have recommended to the stockholders of the
Company any Competing Transaction or resolved to do so. See "The Merger
Agreement -- Termination."
Sources of Funds; Fees and Expenses. It is currently expected that
approximately $15.8 million will be required to pay the merger consideration to
the public stockholders (assuming no such holders exercise appraisal rights),
and to pay the expenses of the Company and the Jim Tankersley Family in
connection with the merger. The sources for the $15.8 million will be available
cash and borrowings under the Company's revolving credit facility with First
American National Bank. The Company has received a commitment letter providing
for such funds to be available under its revolving credit facility. See "Special
Factors -- Sources of Funds; Fees and Expenses."
Accounting Treatment. It is expected that the merger will be accounted for
as a "leveraged recapitalization" under generally accepted accounting
principles, with the Company's assets and liabilities carrying over into the
surviving corporation at their respective historical bases.
APPRAISAL RIGHTS
Under the DGCL, holders of Common Stock who properly demand appraisal prior
to the stockholder vote on the merger agreement, do not vote in favor of
approval and adoption of the merger agreement and otherwise comply with the
requirements of DGCL Section 262 ("Section 262") will be entitled to statutory
appraisal rights. Any deviation from the requirements of Section 262 may result
in a forfeiture of statutory appraisal rights. See "Appraisal Rights" and DGCL
Section 262, a copy of which is attached hereto as Appendix C.
10
<PAGE> 17
THE PARTIES
The Company. The Company was incorporated under the laws of the State of
Texas on March 9, 1956 and became a Delaware corporation on September 30, 1983.
The Company is principally engaged in the growing, processing, marketing and
distribution of food products. The Company's primary food products include
frozen asparagus, black-eyed peas, broccoli, Brussels sprouts, carrots,
cauliflower, corn, green beans, green peas, green peppers, lima beans,
mushrooms, onions, okra, southern greens, spinach, squash, turnips, white acre
peas, various vegetable mixes and blends, and fresh mushrooms. The Company's
principal executive offices are located at Ten Pictsweet Drive, Bells, Tennessee
38006, and its telephone number is (901) 422-7600.
The Jim Tankersley Family. The members of the Jim Tankersley Family are
James I. Tankersley, Edna W. Tankersley, Darla T. Darnall, Kelle T. Northern and
James W. Tankersley, each of whom is a stockholder of the Company. James I.
Tankersley, Darla T. Darnall, Kelle T. Northern and James W. Tankersley are also
directors of the Company. The Jim Tankersley Family does not include Daniel B.
Tankersley and Julia T. Wells, the brother and sister of James I. Tankersley.
Pictsweet LLC. Pictsweet LLC, a Delaware limited liability company, is a
holding company which has not engaged in any activities since its formation
other than in connection with the merger agreement. Pursuant to the merger
agreement, UF Acquisition Corp. will be merged with and into the Company, with
the Company being the surviving corporation and becoming a wholly-owned
subsidiary of Pictsweet LLC. As of the date of this proxy statement, the
directors and officers of Pictsweet LLC are as set forth under "Directors and
Executive Officers of the Company, Pictsweet LLC and UF Acquisition
Corp. -- Information Concerning Directors and Executive Officers of Pictsweet
LLC and UF Acquisition Corp." The directors and members of Pictsweet LLC have
approved and adopted the merger agreement. Pictsweet LLC's executive offices are
located at Ten Pictsweet Drive, Bells, Tennessee 38006-0119, and its telephone
number is (901) 422-7600.
UF Acquisition Corp. UF Acquisition Corp. is a Delaware corporation
recently organized for the purpose of effecting the merger. UF Acquisition Corp.
has no material assets and it has not engaged in any activities since its
formation other than in connection with the merger agreement. The sole
stockholder of UF Acquisition Corp. is Pictsweet LLC. As of the date of this
proxy statement, the directors and officers of UF Acquisition Corp. are as set
forth under "Directors and Executive Officers of the Company, Pictsweet LLC and
UF Acquisition Corp. -- Information Concerning Directors and Executive
Officers of Pictsweet LLC and UF Acquisition Corp." The directors and
stockholders of UF Acquisition Corp. have approved and adopted the merger
agreement. UF Acquisition Corp.'s executive offices are located at Ten Pictsweet
Drive, Bells, Tennessee 38006-0119, and its telephone number is (901) 422-7600.
MARKET PRICE AND DIVIDEND INFORMATION
The Class A Common Stock and Class B Common Stock are listed on the
American Stock Exchange and the Pacific Exchange, respectively, under the
symbols "UFDA" and "UFDB." On September 15, 1998, the last trading day before
the public announcement of the Jim Tankersley Family's proposal to acquire all
the shares of the Class A Common Stock and Class B Common Stock held by the
public stockholders, the reported closing price per share of the Class A Common
Stock was $2.375 and the reported closing price
11
<PAGE> 18
per share of the Class B Common Stock was $2.50. On May 14, 1999, the last
trading day before the public announcement of the execution of the merger
agreement, the reported closing sale price per share of the Class A Common Stock
was $2.50 and the reported closing sale price per share of the Class B Common
Stock was $2.50. On , 1999, the last full trading day prior to the
date of this Proxy Statement, the reported closing sale price per share of the
Class A Common Stock was $ and the reported closing sale price per
share of the Class B Common Stock was $ . The Company has not paid a
dividend on its Common Stock in recent years. For additional information
concerning historical market prices of both classes of Common Stock, see "Market
Price And Dividend Information."
12
<PAGE> 19
SUMMARY HISTORICAL
AND UNAUDITED PRO FORMA FINANCIAL INFORMATION
SUMMARY HISTORICAL FINANCIAL INFORMATION
Set forth below is certain historical financial information of the Company.
Certain of the summary financial information for, and as of the end of, each of
the years in the two year period ended February 28, 1999 is derived from, and
should be read in conjunction with, the historical financial statements of the
Company and notes thereto, which financial statements have been audited by BDO
Seidman, LLP, independent accountants. The historical financial information that
follows is qualified by reference to the financial statements and related notes
included therein.
<TABLE>
<CAPTION>
YEAR ENDED
FEBRUARY 28,
----------------------------
1999 1998
-------- --------
(AMOUNTS IN THOUSANDS EXCEPT
PER SHARE DATA AND RATIOS)
<S> <C> <C>
STATEMENT OF OPERATIONS INFORMATION:
Net sales and service revenue............................. $206,760 $195,087
Net income................................................ 520 460
Basic and diluted earnings per common share............... $ 0.08 $ 0.06
Weighted average common shares outstanding................ 6,810 8,257
Ratio of Earnings to Fixed Charges(a)....................... 1.19 1.15
BALANCE SHEET INFORMATION:
Working capital........................................... 39,585 39,179
Total assets.............................................. 123,400 115,884
Total assets, less goodwill............................... 123,400 115,884
Total indebtedness........................................ 77,132 70,136
Stockholders' equity...................................... 46,268 45,748
Shares outstanding........................................ 6,810 6,810
Book value per share...................................... $ 6.79 $ 6.72
</TABLE>
- ---------------------
(a) Earnings used in computing the ratio of earnings to fixed charges consists
of income before fixed charges and income taxes. Fixed charges consist of
interest expense and the portion of rent expense representative of interest
expense.
PRO FORMA EFFECT OF THE PROPOSED MERGER
The following unaudited pro forma financial information is based on the
historical financial results of the Company. The pro forma information presented
in the table below assumes that the merger occurred on March 1, 1998 and that
and UF Acquisition Corp. had no operating history prior to the
consummation of the merger. Such pro forma financial information should be read
in conjunction with the financial statements of the Company and related notes
included therein.
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28, 1999
------------------------------------
HISTORICAL ADJUSTMENTS PRO FORMA
---------- ----------- ---------
(AMOUNTS IN THOUSANDS EXCEPT PER
SHARE DATA AND RATIOS)
<S> <C> <C> <C>
STATEMENT OF OPERATIONS INFORMATION:
Net sales and service revenue.................. $206,760 $ -- $206,760
Net income..................................... 520 (643) (123)
Basic and diluted earnings per common share.... $ 0.08 $ (0.13) $ (0.05)
Weighted average common shares outstanding..... 6,810 (4,257) 2,553
Ratio of Earnings to Fixed Charges(a)............ 1.19 (0.23) 0.96
BALANCE SHEET INFORMATION:
Working capital................................ 39,585 -- 39,585
Total assets................................... 123,400 -- 123,400
Total assets, less goodwill.................... 123,400 -- 123,400
Total indebtedness............................. 77,132 15,800 92,932
Stockholders' equity........................... 46,268 (15,800) 30,468
Shares outstanding............................. 6,810 (4,257) 2,553
Book value per share........................... $ 6.79 $ 5.14 $ 11.93
</TABLE>
- ---------------------
(a) Earnings used in computing the ratio of earnings to fixed charges consists
of income before fixed charges and income taxes. Fixed charges consist of
interest expense and the portion of rent expense representative of interest
expense.
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<PAGE> 20
THE SPECIAL MEETING
MATTERS TO BE CONSIDERED AT THE SPECIAL MEETING
Each copy of this proxy statement mailed to stockholders is accompanied by
a proxy card furnished in connection with the solicitation of proxies by the
board of directors for use at the special meeting. The special meeting is
scheduled to be held in the Corporate Conference Room of the Company, Ten
Pictsweet Drive, Bells, Tennessee, on August , 1999, at 9:00 a.m., local time.
At the special meeting, stockholders will consider and vote upon (i) a proposal
to approve and adopt the merger agreement and (ii) such other matters as may
properly be brought before the special meeting.
On May 14, 1999, by unanimous vote of all directors, based on the
recommendation of the special committee, the Company's board of directors (i)
determined that the merger agreement is advisable and is fair to, and in the
best interests of, the Company and the public stockholders, (ii) approved the
merger agreement and (iii) recommended that the stockholders vote "For" approval
and adoption of the merger agreement. ACCORDINGLY, THE BOARD OF DIRECTORS
RECOMMENDS THAT STOCKHOLDERS VOTE "FOR" APPROVAL AND ADOPTION OF THE MERGER
AGREEMENT. See "Special Factors -- Background of the Merger," "-- Purpose and
Structure of the Merger" and "-- Recommendation of the Special Committee." The
members of the Jim Tankersley Family and the directors and executive officers of
Pictsweet LLC and UF Acquisition Corp. intend to vote their shares of Common
Stock in favor of the approval and adoption of the merger agreement.
STOCKHOLDERS ARE REQUESTED TO PROMPTLY COMPLETE, DATE, SIGN AND RETURN THE
ACCOMPANYING PROXY CARD. FAILURE TO RETURN A PROPERLY EXECUTED PROXY CARD OR TO
VOTE AT THE SPECIAL MEETING WILL HAVE THE SAME EFFECT AS A VOTE "AGAINST" THE
PROPOSAL FOR PURPOSES OF THE FIRST VOTING REQUIREMENT THAT THE PROPOSAL RECEIVE
THE AFFIRMATIVE VOTE OF A MAJORITY OF THE OUTSTANDING SHARES OF COMMON STOCK
ENTITLED TO VOTE, BUT WILL HAVE NO EFFECT ON THE SECOND VOTING REQUIREMENT THAT
THE PROPOSAL RECEIVE THE AFFIRMATIVE VOTE OF ALL SHARES OF COMMON STOCK ACTUALLY
VOTED "FOR" OR "AGAINST" THE PROPOSAL, EXCLUDING ALL COMMON STOCK OWNED BY THE
JIM TANKERSLEY FAMILY, WITH EACH SHARE OF COMMON STOCK HAVING ONE VOTE
REGARDLESS OF CLASS.
RECORD DATE AND VOTING
The board of directors has fixed the close of business on June , 1999, as
the record date for the determination of the holders of Common Stock entitled to
notice of, and to vote at, the special meeting. Only stockholders of record at
the close of business on that date will be entitled to receive notice of, or to
vote at, the special meeting. The Company has outstanding and entitled to vote
at the special meeting an aggregate of 6,809,929 shares of Common Stock, of
which 2,617,243 shares are Class A Common Stock held by approximately 2,000
holders of record and 4,192,686 shares are Class B Common Stock held by
approximately 1,500 holders of record.
The Class A Common Stock and the Class B Common Stock will vote together as
a single class with respect to the proposal to approve and adopt the merger
agreement. See "-- Vote Required; Revocability of Proxies." With respect to the
transaction of such other business as may properly come before the special
meeting, the Class A Common Stock and the Class B Common Stock will vote
together as a single
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<PAGE> 21
class, unless the DGCL or the Company's Certificate of Incorporation require
otherwise. A majority of the shares of Common Stock entitled to vote, present in
person or represented by proxy, shall constitute a quorum for the transaction of
business at the special meeting. Abstentions (including broker non-votes) will
be included in the calculation of the number of votes represented at the special
meeting for purposes of determining whether a quorum has been achieved.
If the enclosed proxy card is properly executed and received by the Company
in time to be voted at the special meeting, the shares represented thereby will
be voted in accordance with the instructions marked thereon. Properly executed
proxies with no instructions indicated thereon will be voted "For" approval and
adoption of the merger agreement.
The board of directors is not aware of any matters other than those set
forth in the Notice of Special Meeting of Stockholders that may be brought
before the special meeting. If any other matters properly come before the
special meeting, including a motion to adjourn the meeting for the purpose of
soliciting additional proxies, the persons named in the accompanying proxy will
vote the shares represented by all properly executed proxies on such matters in
their discretion, except that shares represented by proxies which have been
voted "Against" the merger agreement will not be used to vote "For" adjournment
of the special meeting for the purpose of allowing additional time for
soliciting additional votes "For" the Merger Agreement. See "-- Vote Required;
Revocability of Proxies."
STOCKHOLDERS SHOULD NOT FORWARD ANY COMMON STOCK CERTIFICATES WITH THEIR PROXY
CARDS. IN THE EVENT THE MERGER IS CONSUMMATED, STOCK CERTIFICATES SHOULD BE
DELIVERED IN ACCORDANCE WITH INSTRUCTIONS SET FORTH IN A LETTER OF TRANSMITTAL,
WHICH WILL BE SENT TO STOCKHOLDERS BY FIRST UNION NATIONAL BANK, IN ITS CAPACITY
AS THE PAYING AGENT, PROMPTLY AFTER THE EFFECTIVE TIME OF THE MERGER.
VOTE REQUIRED; REVOCABILITY OF PROXIES
The merger agreement must be approved and adopted by two separate voting
requirements:
1. the affirmative vote of a majority of the outstanding shares of
Common Stock (including both Class A Common Stock and Class B Common Stock)
entitled to vote. For this first voting requirement, the votes of Class A
Common Stock and Class B Common Stock will be counted together as a single
class, with each share of Class A Common Stock having one-tenth vote and
each share of Class B Common Stock having one vote. The Jim Tankersley
Family's shares of Common Stock represent 57.3% of the votes entitled to be
counted for this voting requirement, and they intend to vote "For" approval
and adoption of the merger agreement. Therefore, this voting requirement
will be met regardless of how you vote; and
2. the affirmative vote of a majority of all shares of Common Stock
entitled to vote which are actually voted "For" or "Against" the proposal,
excluding all Common Stock owned by the Jim Tankersley Family, with each
share of Common Stock having one full vote regardless of class. On the
record date, for purposes of the second voting requirement, there are
4,256,514 shares entitled to vote, and assuming all such shares are voted,
the number of shares necessary to approve and adopt the merger agreement is
2,128,258. Members of the board of directors other than the Jim Tankersley
Family own 1,041,946 shares of Common Stock representing 24.5% of the
15
<PAGE> 22
votes entitled to be counted for this voting requirement, and they intend
to vote "For" the approval and adoption of the merger agreement.
The first voting requirement is required by the Delaware General
Corporation Law and the Company's Certificate of Incorporation. The second
voting requirement is required by the merger agreement. The merger will be
approved and adopted unless public stockholders holding a majority of the shares
held by public stockholders actually voted "For" or "Against" the proposal vote
"Against" the merger agreement. To the knowledge of the Company, except as set
forth in this proxy statement, no executive officer, director or affiliate of
the Company, Pictsweet LLC or UF Acquisition Corp. has made a recommendation in
support of, or in opposition to, the merger agreement.
Because the first voting requirement of the Required Stockholder Vote is
based upon the total number of outstanding shares of Common Stock, the failure
to submit a proxy card (or to vote in person at the special meeting) or the
abstention from voting by a stockholder (including broker non-votes) will have
the same effect as a vote "Against" approval and adoption of the merger
agreement. Because the second voting requirement of the Required Stockholder
Vote on the merger agreement is based upon votes actually cast "For" or
"Against" the proposal, the failure to submit a proxy card (or to vote in person
at the special meeting) or the abstention from voting by a stockholder
(including broker non-votes) will have no effect on the outcome of such voting
requirement. Brokers holding shares of Common Stock as nominees will not have
discretionary authority to vote such shares in the absence of instructions from
the beneficial owners thereof.
A stockholder may revoke a proxy at any time prior to its exercise by doing
the following:
- delivering to Donald Dresser, Secretary and Senior Vice President,
Administration, United Foods, Inc., Ten Pictsweet Drive, Bells, Tennessee
38006-0119, a written notice of revocation prior to the special meeting;
- delivering prior to the special meeting a duly executed proxy bearing a
date later than the prior proxy; or
- attending the special meeting and voting in person.
If for any reason the special meeting is adjourned, at any subsequent
reconvening of the special meeting, all proxies will be voted in the same manner
as such proxies would have been voted at the original convening of the special
meeting, except for any proxies which have theretofore effectively been revoked
or withdrawn.
The obligations of the Company, Pictsweet LLC and UF Acquisition Corp. to
consummate the merger are subject, among other things, to the condition that the
stockholders approve and adopt the merger agreement by the Required Stockholder
Vote. See "The Merger Agreement -- Conditions to the Merger."
SOLICITATION OF PROXIES
The Company will bear the costs of soliciting proxies from stockholders,
including reimbursement of banks, brokerage firms, custodians, nominees and
fiduciaries for reasonable expenses incurred by them in sending proxy material
to the beneficial owners of stock. Proxies may be solicited personally, by mail,
by telephone, by facsimile or by
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telegraph by officers, directors, or other employees of the Company, without
remuneration other than their regular compensation.
SPECIAL FACTORS
BACKGROUND OF THE MERGER
From time to time during 1998, members of the Jim Tankersley Family
discussed the competitive circumstances facing the Company and the Company's low
historic growth rate. These discussions also reflected a recognition that the
stockholders of the Company generally had achieved little or no return on their
investment during the last three years and had virtually no liquidity or market
sponsorship for their stock. The Jim Tankersley Family also considered the fact
that stockholders had oversubscribed significantly the $2.50 tender offer made
by the Company in May 1997. As a result of these discussions, during the summer
of 1998 the Jim Tankersley Family began to consider the available alternatives
to provide additional value and liquidity for the stockholders of the Company.
The Jim Tankersley Family learned that two significant stockholders, Daniel B.
Tankersley and Julia T. Wells, the brother and sister of Jim Tankersley, owning
directly in the aggregate 27.8% of Class A Common Stock, and 7.5% of Class B
Common Stock, desired to sell their stock. The Jim Tankersley Family had
determined that they did not wish to sell their stock, which controlled more
than 50% of the voting equity interests. In September 1998, the Jim Tankersley
Family determined that since they would not agree to sell their Common Stock or
liquidate the Company, the only alternative which could provide liquidity for
all other stockholders at a premium to the existing market price was a cash
merger proposal pursuant to which they would acquire the Company. Following this
determination, James I. Tankersley was authorized by the Jim Tankersley Family
to formulate, with the assistance of counsel for the Jim Tankersley Family, a
merger proposal to be presented to the board of directors. The Jim Tankersley
Family did not consult with or engage a financial advisor in connection with
formulating its proposal.
At a regular quarterly board of directors meeting held on September 16,
1998, at which all directors were present, James I. Tankersley delivered to the
board of directors a written proposal for the Jim Tankersley Family to acquire
all of the outstanding Common Stock owned by the public stockholders for $3.00
per share. The written proposal also requested the appointment of an independent
committee to consider the proposal on behalf of the public stockholders and to
take actions necessary to effect the proposed merger transaction if the proposal
were accepted. The proposal also asked the Company to pay all reasonable
expenses of the independent committee and the Jim Tankersley Family in
considering the proposal and, if the proposal were accepted in preparing for and
consummating the merger, except for the cost of financing incurred by the Jim
Tankersley Family. In connection with the written proposal, James I. Tankersley
presented a number of reasons why he believed the proposal was in the best
interests of the Company and the public stockholders. Among the reasons
presented were the following:
- Business conditions which made it likely that the Company's earnings
growth would continue to be small or negligible, thereby providing a low
return on investment for the Company and little prospect for better stock
prices for the public stockholders.
- Among the business conditions underlying his conclusion are the
overcapacity of the industries in which the Company conducts its
business, the consolidations of the Company's customers and competitors,
the increasing demand for "slotting fees" by
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customers, and the increasing competitive presence of farmer cooperatives which
sell competitive products at lower margins than the Company.
- The lack of liquidity for the public stockholders and the desire of
Daniel B. Tankersley and Julia T. Wells, two significant stockholders
owning in the aggregate 27.8% of Class A Common Stock and 7.5% of Class B
Common Stock, to sell their shares.
- No additional equity funds are needed by the Company and the Company
would benefit from the cost savings of not being a public company.
Mr. Tankersley also stated that the Jim Tankersley Family would not vote their
controlling voting shares of Class B Common Stock to sell the Company to a third
party.
In responding to the proposal presented by James I. Tankersley at the
September 16 meeting of the board of directors, several members of the board of
directors expressed their view that they had possible or actual conflicts of
interest in considering the proposal either as a result of being a member of the
Jim Tankersley Family, being a current and prospective employee and officer of
the Company, or being a relative or a business associate of a relative of the
Jim Tankersley Family. In light of these possible and actual conflicts of
interest, the board of directors formed the special committee, comprised of
disinterested directors, Dr. Joseph A. Geary and John S. Wilder, who was elected
Chairman of the special committee. The special committee was created for the
purpose of evaluating and making recommendations with respect to the proposal
made by the Jim Tankersley Family. The special committee was authorized to
retain such financial and legal advisors as it deemed appropriate and to
negotiate the terms of any transaction.
On September 21, the special committee decided to retain the law firm of
Doramus, Trauger & Ney ("DTN") as its legal counsel. After being engaged, DTN
discussed with the special committee its roles and responsibilities, and the
process of selecting a financial advisor. The special committee interviewed two
investment banking firms to act as its financial advisor and on September 25,
the special committee engaged J.C. Bradford as the special committee's financial
advisor. J.C. Bradford was selected by the special committee because of its
expertise and reputation in the areas of mergers and acquisitions, "going
private" transactions and providing financial advisory services to special
committees as well as its experience with transactions involving similar
industries and companies.
Following its engagement on September 25, J.C. Bradford reviewed financial
and operating information relating to the Company and on October 5 and October
14, the special committee met with representatives of DTN and J.C. Bradford to
discuss J.C. Bradford's analysis of the proposal. At the October 14 meeting,
J.C. Bradford presented its conclusion that based on its analysis of discounted
cash flow, EBITDA multiples and book value, the proposed consideration of $3.00
was inadequate. The special committee also discussed with representatives of DTN
the fiduciary duties and legal standards applicable to the special committee.
DTN advised the special committee that it was under no obligation to recommend
any agreement with the Jim Tankersley Family, unless it determined that any such
agreement was advisable and in the best interests of the public stockholders and
the Company. The special committee determined that pursuing an offer from the
Jim Tankersley Family and considering such a transaction was in the best
interests of the public stockholders and the Company for a number of reasons,
including (i) the lack of appreciation in the price of the Common Stock, (ii)
the historically low trading volume of the Common Stock, (iii) the competitive
position of the Company,
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(iv) the fact that the Company's current line of business was generally not
perceived by analysts to be a growth industry, and (v) the consolidating nature
of the frozen food industry. In light of this determination, the special
committee requested its financial and legal advisors to negotiate with the Jim
Tankersley Family to obtain a higher price than $3.00 per share.
During October and November, representatives of J.C. Bradford and DTN
continued their review of financial and other information about the Company,
conducted interviews of management of the Company and met with a representative
of the Jim Tankersley Family to negotiate a merger price of more than $3.00 per
share. During the negotiations, Mr. Tankersley discussed the factors which he
believed indicated that $3.00 per share was a fair price for the Common Stock,
including the poor prospects for earnings growth in light of the consolidation
of the Company's competitors and customers and the need for increasing capital
expenditures to remain competitive, the lack of liquidity in the trading markets
for the Common Stock, and the approximate 20% market premium which the $3.00
offer presented to the public stockholders. Representatives of DTN and J.C.
Bradford continued to express the view that $3.00 was not adequate and to seek a
higher price, indicating that it was unlikely that the current proposal would be
recommended to the board of directors. In response, representatives of the Jim
Tankersley Family requested the special committee to make a specific
counter-offer which would include both a proposed price per share and the other
principal terms of a potential transaction.
On November 23, the special committee met with representatives of J.C.
Bradford and DTN to receive a report on the negotiations with the Jim Tankersley
Family. J.C. Bradford representatives discussed each of the Jim Tankersley
Family's arguments supporting their position that $3.00 per share was a fair
price for the Common Stock and the request for a specific counter-offer by the
special committee. After discussions with representatives of DTN and J.C.
Bradford, the special committee determined to propose a price of $3.85 per
share. In addition, the special committee determined to present the following
additional terms to the Jim Tankersley Family: (i) any transaction which
implemented the merger must be approved and adopted by a majority of the public
stockholders, (ii) the public stockholders must have appraisal rights, and (iii)
the Company's reimbursement of the expenses of the Jim Tankersley Family must be
limited if the merger were not completed for any reason other than a breach of
the merger agreement by the Company. The special committee instructed DTN to
attempt to negotiate a merger agreement with the Jim Tankersley Family on these
terms, including a price of $3.85 per share.
From November 23 to December 8, representatives of DTN engaged in
negotiations with representatives of the Jim Tankersley Family. On December 8,
the special committee met to receive a report of DTN on the status of the
negotiations with the Jim Tankersley Family. DTN representatives reported that
the Jim Tankersley Family had rejected the special committee's counter-offer of
$3.85 per share and the other terms proposed by the special committee. DTN
representatives reported that counsel for the Jim Tankersley Family had
indicated that they would accept an offer on the following terms: (i) a price of
$3.50 per share; (ii) appraisal rights for the public stockholders but with the
limitation that the Jim Tankersley Family would have a right to withdraw from
the transaction if more than 250,000 shares of Common Stock sought appraisal
rights; (iii) any vote of the public stockholders must include the votes of
Daniel B. Tankersley and Julia T. Wells;
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(iv) payment by the Company of the expenses of the Jim Tankersley Family if the
transaction did not close; and (v) the right to withdraw if there occurred a
material adverse change with respect to the Company. J.C. Bradford
representatives reported that they believed that J.C. Bradford could render an
opinion that $3.50 per share is a fair price for the Common Stock from a
financial point of view. The special committee then discussed further the
proposed price of $3.50 per share and the other terms of the Jim Tankersley
Family's offer, including the importance of the vote of the public stockholders,
the appraisal rights, and the impact of the participation of Daniel B.
Tankersley and Julia T. Wells on any vote of the public stockholders. The
special committee discussed the requirement of allowing withdrawal of the offer
in the event of a material adverse change with respect to the Company. The
special committee determined that such right should be limited to changes
outside the control of the Jim Tankersley Family. After discussion, the special
committee adopted the position that the Company should reimburse the costs of
the Jim Tankersley Family only in the event the transaction did not close
because the special committee determined to withdraw its recommendation of the
transaction. The special committee determined to meet again to consider further
whether or not to accept the proposed terms.
On December 14, the special committee met with its financial and legal
advisors to consider again the Jim Tankersley Family's revised proposal.
Representatives of J.C. Bradford informed the special committee that they
believed J.C. Bradford could opine that $3.50 per share was fair from a
financial point of view, subject to their review of the Company's most recent
operating results. The special committee discussed with its financial advisors
whether there was another potential buyer for the Company that might be willing
to offer a higher price per share. The representatives of J.C. Bradford noted
that the Jim Tankersley Family proposal had been public since September 1998 and
no other proposals had been submitted. Based on their experience and considering
the totality of the surrounding circumstances, including the Jim Tankersley
Family's controlling position and Mr. Tankersley's stated position that the
members of the Jim Tankersley Family would not sell their common stock to a
third party, they stated that they did not believe that there would be another
offer for the Company. The special committee discussed whether the Jim
Tankersley Family might be willing to pay more than $3.50 per share and
instructed DTN representatives to contact counsel for the Jim Tankersley Family
and attempt to obtain an offer of $3.60 per share. The special committee
adjourned while DTN representatives contacted counsel for the Jim Tankersley
Family who after discussing the $3.60 proposal with the Jim Tankersley Family
stated that the Jim Tankersley Family was firm that $3.50 per share was their
final offer. The special committee then determined that it would consider
recommending that the board of directors approve a transaction at $3.50 per
share, provided that approval and adoption of the transaction by a majority of
the public stockholders was a condition to the Company's obligation to
consummate the transaction, and provided further that other outstanding issues
relating to the terms of the Jim Tankersley Family's proposal could be resolved
to the special committee's satisfaction.
On December 21, the special committee met with its financial and legal
advisors. DTN reviewed with the special committee a letter to the board of
directors received by the Company in December from Robert I. Strougo, a
stockholder of the Company, reflecting his conclusion that $3.00 per share was
not an acceptable offer. See "Stockholder Litigation." Following the discussion
of the letter from Mr. Strougo, J.C. Bradford representatives presented an
analysis of the $3.50 offer from a financial point of view and stated that J.C.
Bradford could deliver an opinion that $3.50 per share was fair to the public
stockholders from a financial point of view. The special committee discussed the
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J.C. Bradford analysis and the special committee's belief that $3.50 per share
was the highest price that would be offered by the Jim Tankersley Family. The
special committee next reviewed with DTN a draft of the merger agreement and
discussed a number of issues to be negotiated with representatives of the Jim
Tankersley Family, including the issue of the merger agreement being approved
and adopted by the public stockholders and whether the votes of Daniel B.
Tankersley and Julia T. Wells would be counted in that vote.
During December 1998 and January 1999, representatives of the special
committee and of the Jim Tankersley Family negotiated the terms of the merger
agreement. On January 20, the special committee met with representatives of J.C.
Bradford and DTN to review the analysis of J.C. Bradford and the results of the
negotiation of the terms of the merger agreement. Representatives of J.C.
Bradford presented an updated analysis of the proposed merger price of $3.50 per
share and delivered J.C. Bradford's written opinion to the effect that $3.50 is
fair to the public stockholders from a financial point of view. DTN reviewed the
status of the negotiations of the terms of the merger agreement and reported
that the Jim Tankersley Family would not agree to a provision requiring approval
and adoption of the merger agreement by a vote of a majority of the Common Stock
held by the public stockholders excluding the votes of Daniel B. Tankersley and
Julia T. Wells. DTN noted that they believed that the Jim Tankersley Family
would agree to a provision requiring the approval and adoption of the merger
agreement by a vote of a majority of Common Stock held by the public
stockholders who vote, including the votes of Daniel B. Tankersley and Julia T.
Wells. At this meeting and at meetings on January 21 and 22, the special
committee discussed with representatives of DTN the issue of what vote of the
public stockholders should be required to approve and adopt the merger
agreement. The special committee considered the impact of the Common Stock which
could be voted by Daniel B. Tankersley and Julia T. Wells on the potential
outcome of the public stockholders' vote. The special committee also considered
whether to require approval and adoption of the transaction by a majority of the
Common Stock held by public stockholders or approval and adoption by a majority
of the Common Stock actually voted by the public stockholders. The special
committee asked DTN to continue to negotiate this issue.
On January 27, the special committee met and DTN reported that the Jim
Tankersley Family would agree only to a requirement that the transaction be
approved and adopted by a vote of the public stockholders who voted and which
included the votes of Daniel B. Tankersley and Julia T. Wells. The special
committee discussed this issue as well as the other open issues in the merger
agreement. The special committee also discussed whether the Jim Tankersley
Family would in fact sell to a third party and asked DTN to raise that question.
On February 4, the special committee met with the representatives of DTN.
DTN reported to the special committee that counsel to the Jim Tankersley Family
had repeated that the Jim Tankersley Family would not be willing to sell their
Common Stock to any third party. The special committee determined that, in its
view, it was unlikely that there would be another potential purchaser of Common
Stock owned by the public stockholders because it believed that the Jim
Tankersley Family would not sell their Common Stock and a third party purchaser
would not want to acquire a minority position in the Company. The special
committee also expressed its view that the price of $3.50 per share was the best
price which could be negotiated by it with the Jim Tankersley Family. After
reviewing the benefits of the revised proposal, the special committee voted
unanimously to
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recommend to the board of directors approval of the revised proposal subject to
the negotiation of a satisfactory merger agreement which included appraisal
rights and the approval and adoption of the merger agreement by the vote of a
majority of the Common Stock held by public stockholders who actually voted
including the votes of Daniel B. Tankersley and Julia T. Wells. DTN next
reviewed the status of the negotiations on the merger agreement and in
particular reviewed with the special committee the conditions to the obligations
of the Jim Tankersley Family to close the proposed transaction, including the
proposed condition relating to the actual or prospective loss of a significant
customer. After discussion, the special committee concluded that after the
merger agreement had been approved and adopted by the requisite vote of the
public stockholders, the Jim Tankersley Family should not be able to exercise
their right not to close based on the loss of a significant customer condition
and no such condition should be exercisable based on information which the Jim
Tankersley Family had a reasonable basis to know at the time the merger
agreement was executed. On that basis, DTN was asked to continue its
negotiations of the merger agreement.
During February and March, representatives of the special committee and of
the Jim Tankersley Family continued to negotiate the terms of the merger
agreement. On February 18, the special committee met and reaffirmed that subject
to the satisfactory negotiation of the terms of the merger agreement they were
prepared to recommend to the board of directors approval of the proposed merger
agreement providing $3.50 per share to the public stockholders. On March 5, the
special committee met to discuss the issues remaining unresolved on the merger
agreement, including issues relating to the payment by the Company of the
expenses of the Jim Tankersley Family and relating to the conditions to the
obligations of Jim Tankersley Family to close the proposed merger.
On March 18 and April 5, the special committee met to discuss the results
of the negotiations and their proposed recommendation to the board of directors.
At these meetings, DTN discussed the litigation filed by Rolfe Glover, a
stockholder, in a Delaware Court of Chancery on March 8. On May 10, the special
committee met with representatives of DTN and J.C. Bradford to consider
finalizing their recommendation to the board of directors. At this meeting, J.C.
Bradford updated its analysis and confirmed its earlier opinion that the merger
consideration of $3.50 was fair to the public stockholders from a financial
point of view. The special committee discussed its previous proposed
recommendation, the results of the negotiations of the merger agreement and its
belief that the Jim Tankersley Family would not sell their shares of Common
Stock, and would not vote such shares for any acquisition proposal made by a
third party. Based upon the existing circumstances and on the information and
advice received since September 16, the special committee determined unanimously
that the proposed merger was fair to and in the best interests of the public
stockholders and recommended to the board of directors the approval of the
merger agreement. The special committee further approved its written report
prepared by DTN and directed that it be provided to the board of directors.
On May 10, following the special committee meeting, the board of directors
met and the Chairman of the special committee presented the written report and
recommendation to the board of directors. Representatives of J.C. Bradford
confirmed that J.C. Bradford was prepared to deliver a written fairness opinion
to the board of directors and distributed to the board of directors materials
supporting its opinion. The board of directors deferred action on the
recommendation of the special committee to provide the board of directors with
an opportunity to review the recommendation and related materials.
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On May 14, at a meeting of the board of directors, the special committee,
along with representatives of DTN and J.C. Bradford, recommended the merger
agreement to the board of directors on the terms negotiated by the special
committee. Presentations were made by J.C. Bradford regarding the fairness of
$3.50 per share to the public stockholders from a financial point of view, by
DTN as to the terms of the merger agreement, and by counsel to the Company as to
the fiduciary obligations of the directors and J.C. Bradford delivered its
written fairness opinion to the board of directors. The board of directors
determined that the merger was advisable and was fair to, and in the best
interests of, the Company and the public stockholders, and adopted resolutions
to determine that the merger agreement was advisable and to approve the merger
and the merger agreement, and to recommend that the holders of Common Stock vote
to approve and adopt the merger agreement. The merger agreement was then
executed and delivered by authorized representatives of the Company and the Jim
Tankersley Family. Following the close of trading of the Common Stock on the
American Stock Exchange and the Pacific Exchange, the Company and the Jim
Tankersley Family issued a press release on May 14 disclosing that the Company
and the Jim Tankersley Family executed the definitive merger agreement pursuant
to which the Jim Tankersley Family would acquire all the shares held by public
stockholders at price of $3.50 per share in cash.
PURPOSE AND STRUCTURE OF THE MERGER
For the Jim Tankersley Family, the purpose for the merger is to acquire all
the equity interests of the Company represented by the shares held by public
stockholders for the reasons described below. The Jim Tankersley Family has
advised the Company in connection with its proposal of the merger, that they
would not sell their shares of Common Stock to any third party or vote their
shares to approve a competing transaction or the liquidation of the Company. In
the merger, each share held by public stockholders will be converted into the
right to receive $3.50 in cash. The acquisition of the shares held by public
stockholders has been structured as a cash merger in order to provide a prompt
and orderly transfer to the Jim Tankersley Family of ownership of the equity
interests represented by the shares held by public stockholders and prompt
payment in cash of the merger consideration to the public stockholders.
In determining to acquire the shares held by public stockholders at this
time, the Jim Tankersley Family focused on a number of factors, including (i)
the nature of the Company's business and recent developments in the industries
in which the Company competes, (ii) requests of other stockholders (including
Daniel B. Tankersley and Julia T. Wells) for a transaction resulting in cash for
their Common Stock and (iii) the advantages and disadvantages of remaining
registered under the Exchange Act. The primary benefit to the public
stockholders is the opportunity to sell all of their Common Stock at a cash
price which represents a premium over trading prices in effect immediately prior
to the announcement of the merger. The structure of the transaction as a cash
merger provides a cash payment at a premium price to all holders of outstanding
shares held by public stockholders and an orderly transfer of ownership of the
equity interests represented by the shares held by public stockholders to the
Jim Tankersley Family. The structure of the merger also ensures the acquisition
by the Jim Tankersley Family of all the outstanding shares held by public
stockholders.
Following the merger, it is anticipated that the Common Stock will be
delisted from the American Stock Exchange and the Pacific Exchange and the
registration of such securities under the Exchange Act will be terminated,
thereby allowing the Company to
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eliminate certain overhead costs (including the time devoted by its employees
and the fees and expenses of various professional advisors and service providers
of the Company) which relate exclusively to the Company being a public company.
See "-- Plans for the Company After the Merger" and "-- Certain Effects of the
Merger."
RECOMMENDATION OF THE SPECIAL COMMITTEE
The board of directors created the special committee, which consists of two
disinterested directors, for purposes of evaluating and making recommendations
to the board of directors with respect to the offer by the Jim Tankersley
Family. The special committee retained DTN as its legal counsel and J.C.
Bradford as its financial advisor to assist it in negotiating and determining
the fairness of the merger on behalf of the public stockholders. On January 20,
1999, the special committee received a written opinion of J.C. Bradford as to
fairness of the merger consideration for the public stockholders from a
financial point of view and on May 10, 1999, the special committee, after
receiving an oral opinion of J.C. Bradford confirming its January 20, 1999
written opinions, reached the following conclusions:
- the Jim Tankersley Family stated that they were not willing to sell their
Common Stock to any third party;
- the sale of the Common Stock is in the best interest of the public
stockholders;
- the best price that can be negotiated by the special committee with the
Jim Tankersley Family is $3.50 per share;
- the proposed purchase price of $3.50 per share is a fair price for the
Common Stock;
- the terms of the merger agreement on substantially the terms of the draft
of March 9, 1999, including, without limitation, the nature of the
parties' representations, warranties, covenants and agreements and the
conditions of obligations of Pictsweet LLC and UF Acquisition Corp. are
reasonable;
- the merger is fair to the public stockholders; and
- the special committee recommends that the board of directors approve the
merger agreement on the terms described in the merger agreement,
including a price per share of $3.50.
The special committee, in reaching its conclusion that the merger and
merger agreement are fair to the public stockholders, and in determining to
recommend approval of the merger and the merger agreement to the board of
directors, considered a number of factors, including, without limitation:
- The oral and written presentations of J.C. Bradford to the special
committee on January 20, 1999 and May 10, 1999 and the written opinion of
J.C. Bradford, dated January 20, 1999, and confirmed orally on May 10,
1999 and in writing on May 14, 1999, to the effect that, as of the date
of such opinion and based upon and subject to assumptions and limitations
stated therein, the $3.50 per share of Common Stock to be received by the
public stockholders in the merger is fair to the public stockholders from
a financial point of view. See "-- Opinion of the Special Committee's
Financial Advisor." The written opinion of J.C. Bradford as delivered to
the board of directors on May 14, 1999 and updated as of the date of this
proxy
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statement is attached hereto as Appendix B. Public stockholders are urged
to, and should, read such opinion in its entirety, including the
assumptions and limitations set forth therein.
- The special committee's conclusion that $3.50 per share represented the
highest price that the special committee could negotiate with the Jim
Tankersley Family. This determination was the result of the special
committee's extensive and arms'-length negotiations with the Jim
Tankersley Family in an attempt to obtain the highest possible price for
the public stockholders. The special committee retained DTN and J.C.
Bradford, unaffiliated representatives, to act on behalf of the special
committee in such negotiations.
- The terms of the merger agreement, including without limitation, the
amount and form of the merger consideration; the nature of the parties'
representations, warranties, covenants and agreements; and the conditions
to the obligations of the Jim Tankersley Family and the Company. In this
regard, the special committee considered the extensive and arms'-length
nature of the negotiations relating to the merger agreement and
considered significant the negotiated requirement that the merger
agreement be approved and adopted by the Required Stockholder Vote as a
condition to the Company's obligation to consummate the merger. The
special committee also viewed favorably the fact that the merger
agreement contained a limited number of representations and warranties by
the Company, a limited number of conditions to consummation of the
merger, making consummation of the transaction more likely than one in
which the agreement imposed more significant conditions to consummation,
and the requirement that the merger agreement contain only limited
conditions to closing which could be exercised by the Jim Tankersley
Family or UF Acquisition Corp. after the vote of the public stockholders
in favor of the merger. The special committee also considered the fact
that the merger agreement could be terminated without making any payment
to the Jim Tankersley Family (other than payment for fees and expenses)
if the special committee withdrew its recommendation of the merger
agreement or the merger and the Company's right to terminate the merger
agreement if the Jim Tankersley Family does not deliver a written
financing commitment substantially on the terms presented to the special
committee in the merger agreement within fifteen (15) days of the
execution of the merger agreement.
- The fact that the merger consideration represented (i) a 47% premium over
the last reported sales price ($2.375) of the Class A Common Stock and a
40% premium over the last reported sales price ($2.50) of the Class B
Common Stock on September 15, 1998, the last trading day immediately
preceding the public announcement of the proposal by the Jim Tankersley
Family; (ii) a 33% premium over the last reported sales price ($2.63) of
the Class A Common Stock and a 24% premium over the last reported sales
price ($2.81) of the Class B Common Stock on September 9, 1998, the day
one week preceding the announcement of the negotiations; and (iii) a 27%
premium over the last reported sales price ($2.75) of the Class A Common
Stock and a 28% premium over the last reported sales price ($2.72) of the
Class B Common Stock on September 16, 1997, the last day that the Common
Stock traded one year prior to the announcement of the negotiations.
- The fact that book value per share of the Common Stock was $6.79 as of
February 28, 1999 and that J.C. Bradford concluded that a reasonable
liquidation value in an orderly liquidation was $2.51 per share. The
special committee also
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considered the stated position of the Jim Tankersley Family that they
would not vote their shares in favor of a liquidation.
- The special committee's knowledge of the business, financial condition,
results of operations and prospects of the Company. The members of the
special committee were generally familiar with and knowledgeable about
the Company's affairs, including the present and possible future economic
and competitive environment in which the Company operates its businesses.
- The historical trading prices of the Common Stock and the limited trading
volume and market sponsorship for the Common Stock, which has resulted in
limited liquidity for the public stockholders. Also, the special
committee considered that the Jim Tankersley Family indicated that they
would not sell their shares of Common Stock to a third party, and that,
since the public announcement of the Jim Tankersley Family's offer on
September 16, 1998, and, during the 18 months preceding such
announcement, the special committee was not aware of any third party
which had expressed any interest in acquiring, or making an offer to
acquire, the Company.
- The special committee considered that dissenters' rights of appraisal
will be available to the holders of Common Stock under Delaware law.
- The special committee considered the fact that if the merger agreement
were approved and adopted, the public stockholders would not participate
in any future growth of the Company. Because of the risks and
uncertainties associated with the Company's future prospects in light of
the competitive and consolidating conditions in the industries in which
the Company operates and the limited trading market for the Common Stock,
the special committee concluded the merger was preferable to maintaining
the publicly held status of the Company with a speculative future return
for the public stockholders.
- The special committee considered that it was composed of disinterested
directors, none of whom were employed by or affiliated with the Company
(except as directors) or would have any interest in the Company after the
merger. The special committee also considered that it had retained and
was advised by its own legal counsel and financial advisor who were
independent of the Company and the Jim Tankersley Family and who
negotiated on behalf of the special committee, assisted the special
committee in evaluating the merger and provided the special committee
with financial and legal advice.
In view of the number and disparate nature of the factors considered by the
special committee, the special committee did not assign relative weights to the
factors considered in reaching its conclusions. The special committee did,
however, rely significantly on the presentations and opinion of J.C. Bradford
described above.
On May 10, 1999, following a presentation by J.C. Bradford to the special
committee of its opinion that the $3.50 per share of Common Stock to be received
by the public stockholders in the merger is fair to the public stockholders from
a financial point of view, the special committee concluded that the merger and
the merger consideration are fair to the public stockholders and recommended to
the board of directors that it approve the merger and the merger agreement.
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RECOMMENDATION OF THE BOARD OF DIRECTORS
On May 14, 1999, after consideration of the matters described above, by
unanimous vote of all directors of the Company, based on the recommendation and
approval of the special committee, the board of directors (i) determined that
the merger agreement was advisable and is fair to, and in the best interests of,
the Company and the public stockholders, (ii) approved the merger agreement and
(iii) recommended that the stockholders approve and adopt the merger agreement.
In considering the recommendation of the board of directors with respect to the
merger, stockholders should be aware that certain officers and directors of the
Company and Pictsweet LLC have interests in the merger which may present them
with certain potential and actual conflicts of interest in connection with the
merger. See "-- Interests of Certain Persons in the Merger."
OPINION OF THE SPECIAL COMMITTEE'S FINANCIAL ADVISOR
J.C. Bradford was retained by the special committee to assist the special
committee in evaluating the proposed merger and to render its opinion as to the
fairness from a financial point of view of the consideration to be received by
the public stockholders in the merger. J.C. Bradford is a nationally recognized
investment banking firm that engages in the valuation of businesses and
securities in connection with mergers and acquisitions, negotiated
underwritings, competitive biddings, secondary distributions of listed and
unlisted securities, private placements, and valuations for estate, corporate,
and other purposes. J.C. Bradford was selected as the special committee's
financial advisor based upon such expertise.
On January 20, 1999, J.C. Bradford delivered its written opinion, which was
confirmed orally on May 10, 1999 and in writing on May 14, 1999, and as of the
date of this proxy statement, to the special committee to the effect that, as of
such date, the merger consideration was fair to the public stockholders from a
financial point of view. J.C. Bradford's opinion is directed only to the
fairness from a financial point of view of the merger consideration to be
received by the public stockholders in the merger and does not constitute a
recommendation to any stockholder as to whether such stockholder should vote in
favor of the merger. J.C. Bradford conducted valuation analyses of the Common
Stock and evaluated the merger consideration, but was not asked to and did not
recommend a specific per share price to be issued pursuant to the merger. J.C.
Bradford's opinion does not address the likely tax consequences of the merger to
any public stockholder. In addition, J.C. Bradford was not asked to consider and
its opinion does not address the relative merits of the proposed merger as
compared to any alternative business strategies that might exist for the Company
or the effect of any other transactions in which the Company might engage. J.C.
Bradford did not make an independent evaluation or appraisal of the assets and
liabilities of the Company or any of its subsidiaries or affiliates and has not
been provided with any such evaluation or appraisal. The full text of J.C.
Bradford's written opinion dated May 14, 1999, which sets forth the assumptions
made, procedures followed, matters considered, and limits of its review
undertaken in connection with the opinion, is included as Appendix B and is
incorporated by reference herein. The public stockholders are urged to and
should read such opinion in its entirety. J. C. Bradford's written opinion is
available for inspection and copying at the Company's principal executive
offices during its regular business hours by any interested stockholder or their
representative who has been so designated in writing.
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In conducting its analyses and delivering its opinion, J.C. Bradford
considered such financial and other factors as it deemed appropriate and
feasible under the circumstances including, among other things, (i) the merger
agreement; (ii) the historical and current financial position and results of
operations of the Company, as set forth in its periodic reports and proxy
materials filed with the Securities and Exchange Commission; (iii) certain
internal operating data and financial analyses and forecasts for the year
beginning March 1, 1999 and ending February 28, 2000, prepared by the Company's
senior management; (iv) certain internal operating data of the Company for the
fiscal years beginning March 1, 1980 and ending February 28, 1999; (v) reported
securities trading data of the Company; (vi) certain financial and market data
of certain other companies, the securities of which are publicly traded, that
J.C. Bradford believed to be comparable to the Company or relevant to the
merger; (vii) the financial terms of certain other transactions that J.C.
Bradford believed to be comparable to the merger or otherwise relevant; (viii)
the results of certain stock repurchase programs carried out by the Company in
the recent past; and (ix) such other financial studies, analyses, and
investigations as J.C. Bradford deemed appropriate for purposes of its opinion.
J.C. Bradford also held discussions with members of the senior management of the
Company regarding the past and current business operations, financial condition,
and future prospects of the Company.
J.C. Bradford also took into account its assessment of general economic,
market, and financial and other conditions and its experience in other
transactions, as well as its experience in securities valuation and its
knowledge of the industry in which the Company operates. J.C. Bradford reviewed
and analyzed competitive pressures in the food distribution industry generally
and found that, over the last few years, the industry has experienced
overcapacity, consolidation of competitors and customers, "slotting" pressures
(in which grocery chains essentially require food distributors "rent" space for
their products in the stores), and the increasing strength of farmer
cooperatives. These circumstances have placed severe margin and market share
pressures on food distributors generally and have accounted, in part, for the
stagnation of some of the industry's publicly traded securities. In fact, during
the pendency of the special committee's assignment, no fewer than twelve grocery
store chains were acquired by grocery wholesalers or other grocery store chains.
Moreover, J.C. Bradford noted that only one other public company, Hanover Foods
Corporation ("Hanover Foods"), remains primarily in the frozen vegetable
processing business. J.C. Bradford also noted that there is limited market
liquidity for the shares of the Common Stock and that sales of a significant
number of shares probably would have the effect of reducing the price. In light
of these matters, J.C. Bradford concluded that the Company would likely remain
under severe margin pressures with a corresponding stagnation in the price of
the Common Stock.
J.C. Bradford's opinion is necessarily based upon general economic, market,
financial and other conditions as they existed on the date of the opinion and
the information made available to J.C. Bradford through such date. For purposes
of the opinion, J.C. Bradford relied upon and assumed the accuracy,
completeness, and fairness of the financial and other information made available
to it and did not assume responsibility for independent verification of such
information. J.C. Bradford has also assumed, and the management of the Company
has represented, that internal operating data and financial analyses and
forecasts supplied to J.C. Bradford by the Company had a reasonable basis and
reflected the best currently available estimates and judgments of the Company's
management as to the recent and likely future performance of the Company. J.C.
Bradford also relied upon the representations of the Company's management that
they were not aware of any
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information or fact that would make the information provided to J.C. Bradford
incomplete or misleading. J.C. Bradford was not authorized by the special
committee or the Company to solicit, and did not solicit, other entities for
purposes of considering an alternative to the merger. No limitations were
imposed by the special committee or the Company on the scope of J.C. Bradford's
investigation or the procedures to be followed in rendering its opinion. The
opinion was based upon the information available to J.C. Bradford and the facts
and circumstances as they existed and were subject to evaluation on the date of
the opinion. Events occurring after such date could materially affect the
assumptions used in preparing the opinion and J.C. Bradford has no duty or
obligation to update or amend its opinion, or otherwise advise the special
committee or any other party or person, of the occurrence of any such events.
In preparing its report to the special committee, J.C. Bradford performed a
variety of financial and comparative analyses and considered a variety of
factors, including (i) comparable company analysis; (ii) comparable transaction
analysis; (iii) discounted cash flow analysis; (iv) premium analysis; (v) stock
price analysis; (vi) stock trading analysis; and (vii) liquidation analysis. The
summary of J.C. Bradford's analyses set forth below does not purport to be a
complete description of the analyses underlying J.C. Bradford's opinion. The
preparation of a fairness opinion is a complex process involving subjective
judgments and is not necessarily susceptible to partial analysis or summary
description. In arriving at its opinion, J.C. Bradford did not attribute any
particular weight to any analysis or factor considered by it, but rather made
qualitative judgments as to the significance and relevance of each analysis and
factor. Accordingly, J.C. Bradford believes that its analyses must be considered
as a whole and that selecting portions of its analyses and the factors
considered by it, without considering all analyses and factors, could create a
misleading or incomplete view of the processes underlying such analyses and its
opinion. With respect to the comparable company analysis summarized below, no
company used as a comparison is identical to the Company and such analysis
necessarily involves complex considerations and judgments concerning the
differences in financial and operating characteristics of the companies and
other factors that could affect the acquisition or public trading values of the
companies concerned. The analyses performed by J.C. Bradford are not necessarily
indicative of actual values or future results, which may be significantly more
or less favorable than suggested by such analyses. Because such analyses are
inherently subject to uncertainty, being based upon numerous factors or events
beyond the control of the parties or their respective advisors, J.C. Bradford
does not assume responsibility if future results are materially different from
those forecast.
The following is a summary of the report presented by J.C. Bradford to the
special committee on May 10, 1999 and the board of directors on May 14, 1999:
Comparable Company Analysis. Using publicly available information, J.C.
Bradford reviewed certain financial and operating data for three publicly traded
companies engaged in businesses with characteristics similar to the Company and
with total market capitalization under $100 million (the "Small Cap Comparable
Company Group"). J.C. Bradford calculated the current market price of each
company in the Small Cap Comparable Company Group as a multiple of the latest
available twelve months ("LTM") earnings ("LTM P/E") which ranged from 4.8x to
12.6x, with an average of 9.4x; current equity value as a multiple of book value
("Book Value Multiple"), which ranged from 0.7x to 1.4x, with an average
multiple of 1.1x; and total firm value (defined as equity market value plus net
debt) as a multiple of LTM earnings before interest, depreciation and taxes
("EBITDA") (the "EBITDA Multiple"), which ranged from 3.6x to 5.6x, with
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an average of 4.7x, J.C. Bradford compared the Small Cap Comparable Company
Group multiples to the corresponding implied multiples in the merger, which were
43.8x LTM P/E for the period ended February 28, 1999, 0.5x Book Value Multiple,
and 5.9x EBITDA Multiple, respectively.
J.C. Bradford also reviewed certain financial data for thirteen publicly
traded companies (including the Small Cap Comparable Company Group) engaged in
businesses with characteristics similar to the Company (the "Comparable Company
Group"). J.C. Bradford calculated the current market price of each company in
the Comparable Company Group as a multiple of LTM earnings, which ranged from
4.8x to 25.1x, with an adjusted average 16.3x; the current market price as a
multiple of estimated calendar 1999 earnings ("1999 P/E"), which ranged from
9.1x to 19.0x, with an adjusted average 13.4x; current market price as a
multiple of estimated calendar 2000 earnings ("2000 P/E"), which ranged from
7.7x to 17.2x, with an adjusted average multiple of 11.7x; current equity value
as a multiple of book value which ranged from 0.6x to 5.9x, with an adjusted
average multiple of 1.7x; and total firm value as a multiple of EBITDA, which
ranged from 3.6x to 10.8x, with an adjusted average of 7.4x. J.C. Bradford
compared the Comparable Company Group multiples to the corresponding implied
multiples in the merger, which were 43.8x LTM P/E for the period ended February
28, 1999, 55.4x 1999 P/E, 47.0x 2000 P/E, 0.5x Book Value Multiple, and 5.9x
EBITDA Multiple, respectively.
Comparable Transaction Analysis. J.C. Bradford reviewed the multiples paid
in acquisitions of food distribution companies since January 1, 1990. J.C.
Bradford calculated the EBITDA Multiple paid for each acquired company, which
ranged from 5.5x to 19.1x, with an adjusted average multiple of 12.4x, LTM P/E,
which ranged from 7.5x to 73.4x, with an adjusted average multiple of 23.9x, and
Book Value Multiple which ranged from 0.5x to 18.3x with an adjusted average of
3.6x. J.C. Bradford compared the Comparable Transaction Group multiples to the
corresponding multiples implied in the merger, which were 5.9x EBITDA Multiple,
43.8x LTM P/E and 0.5x Book Value Multiple. Although two of the implied
multiples for the merger were lower than the corresponding multiples for the
Comparable Transaction Group, J.C. Bradford noted that of the eight
transactions, only three closed after September 1, 1997, with the remaining five
transactions occurring prior to May 1, 1994. Moreover, the EBITDA Multiple for
the most recent transaction was not available. J.C. Bradford therefore concluded
that the comparable transaction analysis was not as meaningful as the other
methodologies that it employed.
Discounted Cash Flow Analysis. Using discounted cash flow analysis, based
on earnings forecasts obtained from the senior management of the Company, J.C.
Bradford discounted to present value the future cash flows that the Company is
projected to generate through 2004, under various circumstances. J.C. Bradford
calculated terminal values for the Company (i.e., the values at the 2004 fiscal
year-end) by applying multiples of EBITDA and earnings in the year 2004. The
cash flow streams and terminal values were then discounted to present values
using different discount rates chosen to reflect different assumptions regarding
the Company's cost of capital. Based on the above described analysis, using the
capital expenditure estimates provided by the Company's management team and 0.0%
and 2.5% revenue growth scenarios, respectively, the implied value per share
ranged from $0.00 to $5.63 as compared to the closing stock price of the Class A
Common Stock and Class B Common Stock on January 19, 1999, of $2.50 and $2.44,
respectively. J.C. Bradford also concluded that under the most likely scenario,
the implied value per share ranged from $1.46 to $2.99.
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Premium Analysis. J.C. Bradford prepared an analysis of the premiums paid
in 391 completed cash acquisitions of public companies announced after January
1, 1996 where 100% of the target's shares were controlled by the acquiror
following the acquisition. J.C. Bradford considered, among other factors, the
type of consideration used in the acquisition and the premiums paid based on the
closing price of the target's shares at one day, one week, and four weeks prior
to the announcement. For all cash acquisitions where 100% of the target's shares
were controlled by the acquiror following the acquisition, J.C. Bradford
calculated adjusted average premiums of 37.5% and 44.0% at one week and four
weeks prior to the announcement, respectively. These premiums, based upon the
announcement date of September 16, 1998, imply per share equity values for the
Class A Common Stock of $3.62 and $4.23, respectively. These premiums, based
upon the announcement date of September 16, 1998 imply per share equity values
for the Class B Common Stock of $3.86 and $4.32, respectively. J.C. Bradford
also noted that the offer price implied by the merger represents a premium in
excess of 40% to the Company's Class A and Class B shares, respectively, one day
prior to the announcement.
Stock Price and Trading Analysis. J.C. Bradford reviewed and analyzed the
historical trading volume and prices at which the Common Stock has traded since
January 2, 1997. J.C. Bradford noted that trading activity was limited and that
the trading market was relatively illiquid. J.C. Bradford also noted that the
highest traded price for the Class A Common Stock since January 16, 1998 was
$3.94 which occurred in February 1998 and the lowest traded price was $2.38,
which last occurred in January 1999. Since January 16, 1998, the highest traded
price for the Class B Common Stock was $3.88, which occurred in February 1998,
and the lowest traded price was $2.38, which occurred in April 1999.
Liquidation Analysis. J.C. Bradford prepared a liquidation analysis
analyzing the theoretical residual value of the Company after all assets of the
Company were sold and all outstanding liabilities were repaid. Based on
discussions with management and other analyses, regarding the likely results of
liquidating the Company's perishable inventories, J.C. Bradford noted that the
liquidation value of the Company based on management estimates was below $2.00,
even though book value of the Company at February 28, 1999 was $6.79 per share.
J.C. Bradford considered its discussions with management, the perishable nature
of the commodities comprising the Company's inventory, overcapacity in the
industries in which the Company operates, supply and demand with respect to the
Company's inventory and property and equipment, and such other factors as J.C.
Bradford deemed relevant. Moreover, J.C. Bradford noted the stated position of
the Jim Tankersley Family that they would not vote their shares in favor of a
liquidation. Accordingly, J.C. Bradford concluded that it is unlikely that book
value could be realized in a liquidation and that a reasonable liquidation value
of the Company in an orderly liquidation would be $2.51 per share, which is less
than the merger consideration.
J.C. Bradford was engaged by the special committee to render its opinion as
to the fairness from a financial point of view of the consideration to be
received by the public stockholders in the merger. J.C. Bradford has advised the
board of directors and the special committee that it does not believe that any
person (including any stockholder of the Company) other than the board of
directors and the special committee has the legal right to rely upon J.C.
Bradford's opinion for any claim arising under state law and that, should any
such claim be brought against J.C. Bradford, this assertion will be raised as a
defense. In the absence of governing authority, this assertion will be resolved
by the final adjudication of such issue by a court of competent jurisdiction.
Resolution of this matter
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under state law, however, will have no effect on the rights and responsibilities
of any person under the federal securities laws or on the rights and
responsibilities of the Company's board of directors and the special committee
under applicable state law.
Pursuant to the terms of an engagement letter dated September 29, 1998, the
Company agreed to pay J.C. Bradford for acting as financial advisor to the
special committee in connection with the merger a cash fee of $185,000 as
follows: (i) $25,000 upon execution of the engagement letter; (ii) $25,000 at
the conclusion of the first meeting of the special committee, and (iii) the
balance when J.C. Bradford rendered the opinion, none of which was contingent
upon the consummation of the merger. In addition, the Company has agreed to
reimburse J.C. Bradford for its reasonable out-of-pocket expenses, including the
fees and disbursements of its counsel, and to indemnify J.C. Bradford and
certain related persons against certain liabilities relating to or arising out
of its engagement, including certain liabilities under the federal securities
laws. IN THE ORDINARY COURSE OF ITS BUSINESS, J.C. BRADFORD HAS TRADED, AND MAY
IN THE FUTURE TRADE, SECURITIES OF THE COMPANY FOR ITS OWN ACCOUNT AND FOR THE
ACCOUNTS OF ITS CUSTOMERS AND, ACCORDINGLY, MAY AT ANY TIME HOLD A LONG OR SHORT
POSITION IN SUCH SECURITIES.
PLANS FOR THE COMPANY AFTER THE MERGER
Except as indicated in this proxy statement, the Jim Tankersley Family has
no present plans or proposals which relate to, or would result in, an
extraordinary corporate transaction, such as a merger, reorganization or
liquidation involving the Company, a sale or transfer of a material amount of
assets of the Company or any other material changes in the Company's corporate
structure or business. The terms of the merger agreement require the Company's
directors to tender their resignation, effective as of 12:01 a.m. of the day
next after the closing date.
Upon consummation of the merger, the Jim Tankersley Family intends to
retain the Company as a wholly-owned subsidiary of Pictsweet LLC. The Jim
Tankersley Family anticipates that the assets, business and operations of the
Company will be continued substantially as they are currently being conducted.
The Jim Tankersley Family may, however, cause the Company to make such changes
as are deemed appropriate and intends to continue to review the Company and its
assets, businesses, operations, properties, policies, corporate structure,
capitalization and management and consider if any changes would be desirable in
light of the circumstances then existing. In addition, the Jim Tankersley Family
intends to continue to review the business of the Company and identify synergies
and potential cost savings.
PLANS FOR THE COMPANY IF THE MERGER IS NOT CONSUMMATED
If the merger is not consummated, the Company expects to retain its current
directors and officers, although there can be no assurance it will be successful
in doing so. There are no plans under such circumstances to operate the
Company's business in a manner substantially different than presently operated.
INTERESTS OF CERTAIN PERSONS IN THE MERGER
In considering the recommendations of the board of directors with respect
to the merger, the public stockholders should be aware that certain officers and
directors of the Company have certain interests summarized below that may be in
addition to, or different
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from, the interests of the public stockholders. The special committee and the
board of directors were aware of these interests and considered them along with
other matters described under "-- Recommendation of the Special Committee."
Common Stock Ownership. As of June , 1999, the executive officers and
directors of the Company beneficially owned an aggregate of 1,052,146 shares of
Class A Common Stock and 318,283 shares of Class B Common Stock (excluding the
shares of Common Stock which may be deemed to be beneficially owned by the Jim
Tankersley Family), constituting approximately 35.8% and 7.6% of the total
number of shares of Class A Common Stock and Class B Common Stock then
outstanding. If the merger is consummated, such persons will receive, in the
aggregate, approximately $3,682,511 for their shares of Common Stock. See
"Security Ownership of Management and Certain Beneficial Owners."
Ownership of Interests of Pictsweet LLC and other Pictsweet LLC
Relationships. The following directors and executive officers of the Company own
interests in Pictsweet LLC:
James I. Tankersley -- Mr. Tankersley (together with his wife)
beneficially owns in excess of 48% of the interests of Pictsweet LLC and
controls in excess of 48% of the voting power in Pictsweet LLC. Mr.
Tankersley is also President of Pictsweet LLC.
Darla T. Darnall -- Mrs. Darnall beneficially owns in excess of 17% of
the interests of Pictsweet LLC and controls in excess of 17% of the voting
power in Pictsweet LLC. Mrs. Darnall is also Secretary of Pictsweet LLC.
Kelle T. Northern -- Mrs. Northern beneficially owns in excess of 17%
of the interests of Pictsweet LLC and controls in excess of 17% of the
voting power in Pictsweet LLC. Mrs. Northern is also Treasurer of Pictsweet
LLC.
James W. Tankersley -- Mr. Tankersley beneficially owns in excess of
17% of the interests of Pictsweet LLC and controls in excess of 17% of the
voting power in Pictsweet LLC.
Directors and Officers. The merger agreement provides that after the
merger, the officers and directors of the Company will become the officers and
directors of the surviving corporation. However, pursuant to the terms of the
merger agreement, each director of the Company personally agrees to deliver to
Pictsweet LLC, at Pictsweet LLC's request, such director's resignation effective
immediately at 12:01 a.m. of the day next after the closing date. It is
anticipated that all of the current officers of the Company will become officers
of the surviving corporation with similar duties and responsibilities, but there
are no written agreements to that effect and no person other than members of the
Jim Tankersley Family is expected to own an equity interest in the surviving
corporation.
Indemnification of Officers and Directors. The parties have agreed that
for six years, or for the period provided in the applicable statute of
limitations, whichever is longer, from and after the effective time of the
merger, Pictsweet LLC will or will cause the surviving corporation to indemnify
and hold harmless the present and former officers and directors of the Company
in respect of acts or omissions occurring at or prior to the effective time of
the merger to the fullest extent provided under the DGCL or under the Company's
Certificate of Incorporation and By-laws in effect on the date of the merger
agreement. The Company's Certificate of Incorporation and By-Laws provided for
indemnification of the Company's officers and directors under certain
circumstances for actions taken on
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behalf of the Company and the board of directors has authorized the advancement
of expenses incurred in defending the litigation relating to the merger subject
to the execution of an undertaking to repay such advances in the event it is
determined that such officer or director is not entitled to indemnification.
Special Committee. John S. Wilder, one of the two members of the special
committee, owns 1,000 shares of Class B Common Stock which will be exchanged for
the merger consideration if the merger is consummated. Mr. Wilder has been a
director of the Company since 1979. Joseph A. Geary, the other member of the
special committee, owns 1,000 shares of Class A Common Stock which will be
exchanged for the merger consideration if the merger is consummated. Dr. Geary
has been a director of the Company since 1991. Neither member of the special
committee is entitled to a fee for serving on the special committee.
PERSPECTIVE OF THE JIM TANKERSLEY FAMILY, PICTSWEET LLC AND UF ACQUISITION CORP.
ON THE MERGER
For the Jim Tankersley Family, Pictsweet LLC and UF Acquisition Corp., the
purpose of the merger is to acquire all the equity interests of the Company
represented by the shares held by the public stockholders for the reasons
described below. The Jim Tankersley Family has advised the Company that they
would not sell their shares of Common Stock to any third party or vote their
shares to approve a competing transaction or the liquidation of the Company. In
the merger, each share held by a public stockholder will be converted into the
right to receive an amount in cash equal to the merger consideration, without
interest. The acquisition of the shares held by public stockholders has been
structured as a cash merger in order to provide a prompt and orderly transfer to
Pictsweet LLC of ownership of the equity interests represented by the shares
held by public stockholders and prompt payment in cash of the merger
consideration to the public stockholders.
In determining to acquire the shares held by public stockholders at this
time, the Jim Tankersley Family focused on a number of factors, including (i)
the nature of the Company's business and recent developments in the food
industry, (ii) requests of other stockholders (including Daniel B. Tankersley
and Julia T. Wells, the brother and sister of James I. Tankersley, respectively)
for a transaction resulting in cash for their Common Stock and (iii) the
advantages and disadvantages of remaining registered under the Exchange Act. The
primary benefit to the public stockholders is the opportunity to sell all of
their Common Stock at a price which represents a premium over trading prices in
effect immediately prior to the announcement of the merger. The structure of the
transaction as a cash merger provides a cash payment at a premium price to all
holders of outstanding shares held by public stockholders and an orderly
transfer of ownership of the equity interest represented by the shares held by
public stockholders to the Jim Tankersley Family. The structure of the merger
also ensures the acquisition by the Jim Tankersley Family of all the outstanding
shares held by public stockholders.
CERTAIN EFFECTS OF THE MERGER
As a result of the merger, the entire equity interest of the surviving
corporation will be owned by the Jim Tankersley Family. Therefore, following the
merger, the public stockholders will no longer benefit from any increases in the
value of the Company and will no longer bear the risk of any decreases in the
value of the Company. In addition,
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following the merger, the interest of the Jim Tankersley Family in the Company's
net book value and net income will increase to 100%. Following the merger, the
Jim Tankersley Family will benefit from any increases in the value of the
Company and also bear the risk of any decreases in the value of the Company.
The public stockholders will have no continuing interest in the Company
following the merger. As a result, the shares of Common Stock will no longer
meet the requirements of the American Stock Exchange and the Pacific Exchange
for continued listing and will, therefore, be delisted from the American Stock
Exchange and the Pacific Exchange.
The Common Stock is currently registered under the Exchange Act.
Registration under the Exchange Act may be terminated upon application of the
Company to the Commission if such securities are not listed on a national
securities exchange or quoted on Nasdaq and there are fewer than 300 record
holders of such securities. Termination of registration of the Common Stock
under the Exchange Act would mean certain provisions of the Exchange Act, such
as the short-swing trading provisions of Section 16(b), the requirement to file
periodic reports, the requirement of furnishing a proxy statement in connection
with stockholders' meetings pursuant to Section 14(a), and the requirements of
Rule 13e-3 under the Exchange Act with respect to "going private" transactions,
would no longer be applicable to the Company. If registration of the shares of
Common Stock under the Exchange Act is terminated, the Common Stock would no
longer be eligible for listing on the American Stock Exchange or the Pacific
Exchange. In addition, "affiliates" of the Company and persons holding
"restricted securities" of the Company might as a result be deprived of the
ability to dispose of such securities pursuant to Rule 144 promulgated under the
Securities Act of 1933, as amended. It is the present intention of the Jim
Tankersley Family to seek to cause the Company to make an application for the
termination of the registration of the Common Stock under the Exchange Act as
soon as practicable after the effective time of the merger.
CERTAIN FEDERAL INCOME TAX CONSEQUENCES
The following is a summary of the material federal income tax consequences
that may be relevant to the stockholders. This discussion does not address all
aspects of taxation that may be relevant to particular stockholders or to
particular types of stockholders subject to special tax treatment under the
federal income tax laws (including, without limitation, tax exempt
organizations, insurance companies, financial institutions, broker-dealers,
foreign corporations, and persons who are not citizens of the United States),
nor does it address the impact of state, local or foreign tax laws. This
discussion is based on the Internal Revenue Code of 1986, as amended (the
"Code"), applicable Department of Treasury regulations ("Treasury Regulations"),
judicial authority and administrative rulings and practice, all as of the date
of this Proxy Statement and all of which are subject to change (possibly
retroactively).
EACH STOCKHOLDER IS URGED TO CONSULT ITS TAX ADVISER REGARDING THE SPECIFIC
TAX CONSEQUENCES OF THE MERGER, INCLUDING THE STATE, LOCAL, FOREIGN AND OTHER
TAX CONSEQUENCES OF THE MERGER, AND OPERATION OF AND POTENTIAL CHANGES IN
APPLICABLE TAX LAWS.
The receipt of cash in exchange for Common Stock pursuant to the merger
will be a taxable transaction for United States federal income tax purposes and
may also be a taxable transaction under applicable state, local and foreign tax
laws. A stockholder will generally recognize gain or loss for U.S. federal
income tax purposes in an amount equal to the difference between the
stockholder's adjusted tax basis in that stockholder's Common
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<PAGE> 42
Stock and the consideration received by the stockholder in the merger. This gain
or loss will be calculated separately for each block of Common Stock exchanged
by a stockholder. The gain or loss with respect to each block of Common Stock
exchanged by a stockholder shall be treated as long-term capital gain or loss
if, at the effective time of the merger, the Common Stock was held for more than
one year. In the case of individuals, any long-term capital gain will be subject
to U.S. federal income tax at a maximum rate of 20% and any short-term capital
gains will be subject to U.S. federal income tax at a maximum rate of 39.6%.
The Company will report to each stockholder and to the Internal Revenue
Service ("IRS") the amount of merger consideration received by that stockholder
and the amount of tax withheld, if any. Under certain circumstances, a
stockholder may be subject to backup withholding at a rate of 31% with respect
to the merger consideration paid. Backup withholding will apply only if the
stockholder (i) fails to furnish or certify his correct taxpayer identification
number ("TIN") to UF Acquisition Corp. in the manner required by the Treasury
Regulations, (ii) furnishes an incorrect TIN, (iii) is notified by the IRS that
it has failed properly to report payments of interest and dividends, or (iv)
under certain circumstances, fails to certify, under penalties of perjury, that
it has furnished a correct TIN and has not been notified by the IRS that it is
subject to backup withholding for failure to report interest and dividend
payments. Backup withholding will not apply with respect to payments made to
certain exempt recipients, such as corporations and tax exempt organizations.
Stockholders should consult their own tax advisors regarding their qualification
for exemption from backup withholding and the procedure for obtaining such an
exemption. Backup withholding is not an additional tax. Rather, the amount of
any backup withholding with respect to a payment to a stockholder will be
allowed as a credit against such stockholder's United States federal income tax
liability and may entitle such stockholder to a refund, provided that the
required information is furnished to the IRS.
RISK OF FRAUDULENT CONVEYANCE
If a court in a lawsuit brought by an unpaid creditor or representative of
creditors, such as a trustee in bankruptcy, or by the surviving corporation, as
debtor in possession, were to find that at the effective time of the merger or
at the time the surviving corporation distributed the merger consideration to
the public stockholders, the surviving corporation (a) made such payment with
fraudulent intent, or (b) received less than a reasonably equivalent value or
consideration in exchange for the merger consideration, and the surviving
corporation (i) was insolvent, (ii) had unreasonably small assets, property or
capital in relation to its ongoing business, or (iii) would be unable to pay its
debts as they came due or matured, then such court could (A) find that the
merger, the merger consideration and the financing thereof constituted
fraudulent transfers or conveyances, (B) void the merger and require that the
assets of the surviving corporation be placed in a fund for the benefit of the
Company's creditors, (C) void the distribution of the merger consideration to
the public stockholders and require that the public stockholders return the same
to the surviving corporation or a fund for the benefit of its creditors, and/or
(D) void or modify the rights and obligations with respect to the financing of
the merger.
The measure of insolvency for the purposes of the foregoing will vary
depending upon the law of the jurisdiction which is being applied. Generally,
however, the surviving corporation would be considered insolvent if the sum of
the surviving corporation's assets is less than the amount that it will be
required to pay its probable liability on its debts as they become due. No
assurance can be given as to the method a court would use to
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determine whether the surviving corporation was insolvent at the effective time
of the merger or at the time the surviving corporation distributed the merger
consideration, nor can assurance be given that a court would not find that the
surviving corporation was insolvent at the effective time of the merger. The
voiding of the merger consideration as described above could result in the
public stockholders losing the entire value of their equity investment in the
Company.
The Company believes that the payments to be made in connection with the
merger will be made for proper purposes and in good faith, and that, based on
present forecasts and other financial information, the Company is, and the
surviving corporation will be, solvent, and will have sufficient assets,
property and capital to conduct its ongoing business and pay its debts as they
come due and mature. However, no investigation was conducted by, or opinion
received from, any independent third party, with respect to the solvency of the
Company or the surviving corporation.
ANTICIPATED ACCOUNTING TREATMENT
It is expected that the merger will be accounted for as a "leveraged
recapitalization" under generally accepted accounting principles, with the
Company's assets and liabilities carrying over into the surviving corporation at
their respective historical bases.
REGULATORY APPROVALS
No federal or state regulatory approvals are required to be obtained, nor
any regulatory requirements complied with, in connection with the consummation
of the merger by any party to the merger agreement, except for (i) the
requirements of the DGCL in connection with stockholder approvals and adoptions
and consummation of the merger and (ii) the requirements of federal securities
laws.
SOURCES OF FUNDS; FEES AND EXPENSES
The total funds required to pay the merger consideration of $3.50 per share
to all public stockholders, consummate the other transactions contemplated by
the merger agreement and pay all related fees, costs and expenses are estimated
to be $15.8 million. The sources for the $15.8 million will be available cash
and borrowings under the Company's revolving credit facility with First American
National Bank ("FANB" or the "Lender"). The credit facility currently provides
for total borrowings of $18 million; however, the Company has received a written
commitment dated May 21, 1999 from FANB to amend the credit facility by
increasing the total amount available to $35 million and also by changing
certain of the restrictive covenants contained in the credit facility. The
Company intends to execute the amendment to the credit facility prior to the
commitment's expiration date of June 30, 1999. Should the merger not be
consummated, the terms and conditions of the credit facility that existed prior
to the amendment will be restored.
The credit facility matures on June 1, 2001. Such maturity date is also
effective under the terms of the amendment. One-year extensions of the maturity
date will be considered annually by FANB. The borrowing availability of the
Company under the credit facility will generally be limited to an amount
determined under a formula that takes into account the amount of certain of the
Company's accounts receivables and inventories. The annual interest rate on the
credit facility will be either (i) the Lender's Index Rate minus
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.5%, or (ii) LIBOR plus 1.50%. In addition, the credit facility will be subject
to a 0.125% per annum commitment fee on the average unused portion of the
commitment. Standby letters of credit will count as "usage." All new standby
letters of credit (i) will be issued by the Lender as the Issuing Bank, (ii)
will have maturities equal to the lesser of either 364 days or the minimum
maturity required by the beneficiary, provided that all new standby letters of
credits mature prior to the maturity of the credit facility, and (iii) will bear
a fee equal to 1.25% per annum.
The credit facility will be secured by a perfected first priority interest
in all of the Company's accounts receivable and inventory (excluding the
accounts receivable and inventory associated with the Company's mushroom farms).
Lender's commitment to close the amendment is conditioned upon, among other
things, (i) there being no material adverse change in the Company's prospects or
financial condition at any time prior to the closing, (ii) Lender receiving
documentation that lists all material assets belonging to the Company and
describes all liens and all material litigation, (iii) Lender receiving a
satisfactory opinion from the Company's counsel, (iv) Lender receiving documents
certifying that the Company has the appropriate insurance coverage and
appropriate government authorizations, and is in compliance with all government
laws and regulations, including those specifically relating to environmental
issues and to ERISA, and (v) Lender receiving corporate resolutions and
incumbency certificates for the Company, and certifications as to the accuracy
of all representations and warranties and absence of any event of default (as
described below) or situation which, with the passage of time, could constitute
an event of default.
Events of default include, but are not limited to, (i) nonpayment of any
principal or interest when due, (ii) nonpayment of any other obligations owed to
the Lender(s) within 10 days of the due date, (iii) default by the Company under
any other agreements for funded debt with a principal amount in excess of
$500,000, (iv) misleading, false or incomplete representations or warranties,
(v) breach or failure to observe or perform any covenant or undertaking
contained in the credit agreement, subject to a 30 day cure period, (vi) any
judgment in excess of $500,000 against the Company not cured, waived or
dismissed within 30 days, (vii) any bankruptcy filing or other insolvency
proceeding of the Company, and (viii) occurrence of any liability, or reasonable
threat of such liability, under any employee benefit plan which may have a
material adverse effect on the Company.
Additionally, the Company will represent and warrant to Lender, among other
things, that (i) it is a valid and existing corporation in good standing under
the laws of the State of Delaware, (ii) it possess all necessary governmental
authorizations to go forward with the contemplated transactions, (iii) it is in
compliance with all applicable governmental laws, including environmental laws
and ERISA, (iv) it is involved in no material litigation, (v) it has paid, in
full, all applicable state and federal taxes, and (vi) there are no liens except
as acceptable to the Lender(s) and except those required in the ordinary course
of business.
Other affirmative covenants of the Company include, but are not limited to,
(i) maintenance of corporate existence, government authorization, and business,
(ii) properly maintaining the required insurance and maintaining the property of
the Company, (iii) payment of taxes and compliance with laws, (iv) maintenance
of warehouse agreements and collateral, and rights of inspection, (v) notice of
defaults, and adverse changes, and (vi) notice of covenant compliance
immediately preceding and
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immediately following any acquisition. Negative covenants will include, but are
not limited to, (i) prohibitions on any change in the business of the Company,
(ii) prohibitions against any change in the charter documents or in the fiscal
year-end, and (iii) limitations on mergers, investments, consolidations,
transactions with affiliates, and the sale of assets or collateral. Financial
reporting covenants will include, but are not limited to, (i) the Company
providing annual audited consolidated and reconciled consolidating balance
sheets and income statements and statements of cash flows for the Company due
within 90 days of fiscal year-end complete with confirming letter from
accountant and officer's compliance certificates, (ii) monthly consolidated
financial statements for the Company due within 20 days of each month end, (iii)
borrowing base certificate due within 15 days of the month end, (iv) quarterly
certificates of compliance with all financial covenants, due within 45 days of
quarter end, and (v) annual forecasts to include balance sheet, income statement
and statement of cash flows, due within 90 days of fiscal year-end. Moreover the
Company must maintain a minimum working capital floor of $25,000,000, calculated
annually, a tangible net worth minimum of $27,500,000, calculated quarterly, and
a debt to equity ratio maximum of 3.5:1.0, calculated annually.
Estimated fees, costs and expenses incurred or to be incurred by the
Company and the Jim Tankersley Family in connection with the merger are
approximately as follows:
<TABLE>
<S> <C>
Payment of merger consideration(1).......................... $14,897,799
Advisory fees(2)............................................ 185,000
Legal fees and expenses(3)..................................
Accounting fees and expenses................................
Securities and Exchange Commission filing fee............... 2,980
Printing and mailing expenses...............................
Paying agent fees and expenses..............................
Miscellaneous expenses......................................
-----------
Total............................................. $
===========
</TABLE>
- -------------------------
(1) Includes payment for all outstanding shares of Common Stock other than
shares owned by the Jim Tankersley Family and treasury stock at the
effective time of the merger.
(2) Includes the fees and estimated expenses of J.C. Bradford.
(3) Includes the estimated fees and expenses of counsel for the Company, the
special committee, and the Jim Tankersley Family.
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THE MERGER AGREEMENT
The following is a summary of certain provisions of the merger agreement, a
copy of which is attached hereto as Appendix A and incorporated by reference
herein. All references to and summaries of the merger agreement in this proxy
statement are qualified in their entirety by reference to the merger agreement.
Stockholders are urged to read the merger agreement carefully and in its
entirety.
GENERAL
The Merger. The merger agreement provides for the merger of UF Acquisition
Corp. with and into United Foods, Inc. United Foods, Inc. will be the surviving
corporation and it will continue its corporate existence under the laws of the
State of Delaware. At the effective time of the merger, the separate corporate
existence of UF Acquisition Corp. shall cease. The surviving corporation shall
possess all the property, rights, privileges, immunities, powers and franchises
of UF Acquisition Corp. and United Foods, Inc. and the surviving corporation
shall assume and become liable for all liabilities, obligations and penalties of
United Foods, Inc. and UF Acquisition Corp.
Effective Time of Merger. The effective time of the merger will occur upon
the filing of the certificate of merger with the Delaware Secretary of State or
at such time thereafter as is agreed to between Pictsweet LLC, UF Acquisition
Corp. and United Foods, Inc. and specified in the Certificate of Merger. See
"-- Conditions to the Merger."
Treatment of Shares in the Merger. Subject to the provisions of the merger
agreement, at the effective time of the merger, each share of Common Stock
outstanding immediately prior to the effective time of the merger shall, by
virtue of the merger, and without any action on the part of the holder thereof,
be converted into the merger consideration, except for shares of Common Stock
owned by the Jim Tankersley Family, treasury stock and Dissenting Shares. The
merger consideration will be payable upon surrender of the certificate
representing the shares of Common Stock to be converted pursuant to the merger
agreement. Under the DGCL, record holders of shares of Common Stock who follow
the procedures set forth in Section 262 and who have not voted in favor of the
merger agreement will be entitled to have their shares of Common Stock appraised
by the Delaware Court of Chancery and to receive payment of the "fair value" of
such shares (exclusive of any element of value arising from the accomplishment
or expectation of the merger, together with a fair rate of interest, if any, as
determined by such court). See "Appraisal Rights" and Appendix C hereto.
Certificate of Incorporation and By-Laws. The Certificate of Incorporation
and By-Laws of the Company in effect at the effective time of the merger shall
be the Certificate of Incorporation and By-Laws of the surviving corporation
until amended in accordance with applicable law.
Surrender of Stock Certificates. Pictsweet LLC has designated First Union
National Bank to act as the paying agent under the merger agreement. At or prior
to the effective time of the merger, Pictsweet LLC shall, or Pictsweet LLC shall
cause the surviving corporation to, deposit with the paying agent, for purposes
of establishing an exchange fund, cash in an amount sufficient to pay the merger
consideration. The paying agent shall, pursuant to irrevocable instructions,
make the payments provided for under the merger agreement out of the exchange
fund.
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As soon as reasonably practicable after the effective time of the merger,
the paying agent shall mail to each holder of record as of the effective time of
the merger (other than the Jim Tankersley Family) of an outstanding certificate
or certificates for Common Stock, a letter of transmittal and instructions for
use in effecting the surrender of such certificates for payment in accordance
with the merger agreement. Upon the surrender to the paying agent of a
certificate, together with a duly executed letter of transmittal, the holder
thereof shall be entitled to receive cash in an amount equal to the product of
the number of shares of Common Stock represented by such certificate and the
merger consideration, less any applicable withholding tax, and such certificate
shall then be canceled.
Until surrendered pursuant to the procedures described above, each
certificate (other than certificates representing Common Stock owned by the Jim
Tankersley Family, treasury stock or Dissenting Shares) shall represent for all
purposes the right to receive the merger consideration in cash multiplied by the
number of shares of Common Stock evidenced by such certificate, without any
interest thereon, subject to any applicable withholding obligation.
After the effective time of the merger, there shall be no transfers on the
stock transfer books of the surviving corporation of shares of Common Stock
which were outstanding immediately prior to the effective time of the merger.
If, after the effective time of the merger, certificates are presented to the
surviving corporation, they shall be canceled and exchanged for an amount in
cash equal to the merger consideration multiplied by the number of shares of
Common Stock evidenced by such certificate, without any interest thereon,
subject to any withholding obligation.
Any portion of the exchange fund which remains unclaimed by the
stockholders of the Company for one year after the effective time of the merger
(including any interest received with respect thereto) shall be repaid to the
surviving corporation, upon demand. Any stockholders of the Company who have not
theretofore complied with the procedures set forth above shall thereafter look
only to the surviving corporation for payment of their claim for the merger
consideration per share of Common Stock, without any interest thereon, but shall
have no greater rights against the surviving corporation than may be accorded to
general creditors of the surviving corporation under Delaware law.
Notwithstanding the foregoing, neither the paying agent nor any party to the
merger agreement shall be liable to any holder of certificates formerly
representing Common Stock for any amount to be paid to a public official in good
faith pursuant to any applicable abandoned property, escheat or similar law.
REPRESENTATIONS AND WARRANTIES
The merger agreement contains various representations and warranties of the
Company to Pictsweet LLC and UF Acquisition Corp., including with respect to the
following matters: (i) the due organization and valid existence of the Company
and similar corporate matters; (ii) the capitalization of the Company in
connection with the transactions contemplated by the merger agreement; (iii) the
due authorization, execution and delivery of the merger agreement and its
binding effect on the Company; (iv) regulatory filings and approvals, and the
lack of conflicts between the merger agreement and the transactions contemplated
thereby with the Company's Certificate of Incorporation or By-Laws or any
contract to which it is a party; (v) the accuracy of the Company's filings with
the Commission in connection with the transactions contemplated by the merger
agreement; and (vi) various other matters. Such representations and
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warranties are subject, in certain cases, to specified exceptions and
qualifications, including without limitation, those exceptions that are
disclosed to Pictsweet LLC pursuant to the merger agreement.
The merger agreement also includes certain representations and warranties
by Pictsweet LLC and UF Acquisition Corp., including representations and
warranties regarding: the due organization, good standing and authority to enter
into the merger agreement; the absence of conflict between the transactions
contemplated by the merger agreement with other agreements and documents;
solvency matters; and consents and approvals.
CONDUCT OF THE BUSINESS PENDING THE MERGER
The Company has agreed that, except as expressly contemplated in the merger
agreement or as agreed to by Pictsweet LLC, during the period from the date of
the merger agreement and continuing until the effective time of the merger, the
business of the Company will be conducted only in the ordinary course consistent
with past practice and the Company shall use all commercially reasonable efforts
to preserve intact its business organization and relationships with third
parties and to keep available the services of its present officers and
employees. The Company has further agreed that during such period, and subject
to the same exceptions, the Company will not, among other things: (a) directly
or indirectly: (i) issue, sell, transfer or pledge or agree to sell, transfer or
pledge any treasury stock of the Company or any capital stock or equity
interests in any person owned by it; (ii) amend its Certificate of Incorporation
or By-laws or similar organizational documents; or (iii) split, combine or
reclassify (except for the issuance of Class A Common Stock upon conversion of
Class B Common Stock in accordance with the Certificate of Incorporation) the
outstanding shares of Common Stock; (b)(i) declare, set aside or pay any
dividend or other distribution payable in cash, stock or property with respect
to its capital stock; (ii) issue, sell, pledge, dispose of or encumber any
additional shares of, or securities convertible into or exchangeable for, or
options, warrants, calls, commitments or rights of any kind to acquire any
shares of, capital stock of any class of the Company (except for issuance of
Class A Common Stock resulting from conversions of Class B Common Stock into
Class A Common Stock in accordance with the Certificate of Incorporation); (iii)
transfer, lease, license, sell, mortgage, pledge, dispose of, or encumber any
assets other than in the ordinary and usual course of business and consistent
with past practice; (iv) except for the financing pursuant to the permitted
financing terms described in the merger agreement, incur or modify any
indebtedness or other liability, other than in the ordinary and usual course of
business and consistent with past practice; or (v) redeem, purchase or otherwise
acquire directly or indirectly any of its capital stock; (c) other than in the
ordinary course of business: (i) grant any increase in the compensation payable
or to become payable by the Company to any of its executive officers; or (ii)
adopt any new, or amend or otherwise increase, or accelerate the payment or
vesting of the amounts payable or to become payable under, any existing bonus,
incentive compensation, deferred compensation, severance, profit sharing, stock
option, stock purchase, insurance, pension, retirement, or other employee
benefit plan, agreement or arrangement; or (iii) enter into any employment or
agreement with or, except in accordance with the existing written policies of
the Company, grant any severance or termination pay to any officer, director or
employee of the Company; (d) shall not permit any insurance policy naming it as
a beneficiary or a loss payable payee to be canceled or terminated without
notice to Pictsweet LLC, except in the ordinary course of business and
consistent with past practice; (e) shall not enter into any contract or
transaction relating to
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<PAGE> 49
the purchase of assets other than in the ordinary course of business consistent
with prior practice; (f) shall not, other than in the ordinary course of
business: (i) change any of the accounting methods used by it unless required by
GAAP; (ii) make any material tax election; (iii) change any material tax
election already made; (iv) adopt any material tax accounting method; (v) change
any material tax accounting method unless required by GAAP; (vi) enter into any
closing agreement, settle any tax claim or assessment or consent to any tax
claim or assessment or any waiver of the statute of limitations for any such
claim or assessment; (g) except for the financing pursuant to the permitted
financing terms described therein and other than in the ordinary course of
business, shall not: (i) incur or assume any long-term debt; (ii) consistent
with past practice, incur or assume any short-term indebtedness; (iii) assume,
guarantee, endorse or otherwise become liable or responsible (whether directly,
contingently or otherwise) for the obligations of any other person; (iv) make
any loans, advances or capital contributions to, or investment in, any other
person (other than customary loans or advances to employees in accordance with
past practice); or (v) enter into any material commitment or transaction
(including, but not limited to, any borrowing, capital expenditure or purchase,
sale or lease of assets); (h) shall not: (i) settle or compromise any material
claim, lawsuit, liability or obligation, (ii) pay, discharge or satisfy any
claims, liabilities or obligations (absolute, accrued, asserted or unasserted,
contingent or otherwise), other than the payment, discharge or satisfaction of
any such claims, liabilities or obligation, (x) to the extent reflected or
reserved against it, or contemplated by, the consolidated financial statements
(or the notes thereto) of the Company on a consolidated basis, (y) incurred in
the ordinary course of business and consistent with past practice or (z) which
are legally required to be paid, discharged or satisfied; (i) shall not take, or
agree to commit to take, any action that would make any representation or
warranty of the Company contained herein inaccurate in any respect at, or as of
any time prior to, the effective time of the merger; (j) shall not enter into an
agreement, contract, commitment or arrangement to do any of the foregoing, or to
authorize, recommend, propose or announce an intention to do any of the
foregoing.
OTHER POTENTIAL BIDDERS
Pursuant to the merger agreement, the Company has agreed that it shall
furnish information and access in response to unsolicited requests for
information and access, received prior to or after the date of the merger
agreement, to the same extent as provided to Pictsweet LLC or UF Acquisition
Corp., to any person pursuant to appropriate confidentiality agreements, and may
participate in discussions and negotiate with any such person concerning any
merger, sale of assets, sale of shares of capital stock or similar transaction
involving the Company or any division of the Company, only if the special
committee determines, after consultation with its counsel and financial advisor,
that such action is necessary in light of the fiduciary obligations of the board
of directors to the public stockholders of the Company. Except as described
above, the Company has agreed not to solicit, participate in or initiate
discussions or negotiations with, or provide any information to, any person
(other than Pictsweet LLC or UF Acquisition Corp.) concerning any merger, sale
of assets, sale of shares of capital stock or similar transaction involving the
Company, and no such discussions or negotiations have taken place as of the date
of this proxy statement.
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CONDITIONS TO THE MERGER
All Parties. Pursuant to the merger agreement, the respective obligations
of each party to effect the merger are subject to the satisfaction at or prior
to the effective time of the merger of each of the following conditions, any and
all of which may be waived in whole or in part by the party intended to benefit
therefrom, to the extent permitted by law: (a) the merger agreement and
transactions contemplated thereby shall have been approved and adopted at the
special meeting by the Required Stockholder Vote; (b) there are no claims,
actions, suits, proceedings or investigations pending or threatened, against the
Company, Pictsweet LLC or UF Acquisition Corp. before any governmental
authority, that seek to prevent or delay the performance of the merger agreement
or the transactions, or that would result in a material adverse effect (as
defined in the merger agreement), and no governmental authority shall have
enacted, issued, promulgated, enforced or entered any law or order (whether
temporary, preliminary or permanent) which is in effect and which has the effect
of making the transactions illegal or otherwise prohibiting consummation of the
transactions; (c) all actions by or in respect of, or filings with, any
governmental authority required to permit the consummation of the transactions
shall have been made or obtained; (d) at the time of mailing of this Proxy
Statement, J.C. Bradford (i) shall have delivered and reaffirmed in writing (to
the special committee and the board of directors of the Company, with a copy to
Pictsweet LLC) its opinion, originally dated as of January 20, 1999, to the
effect that the merger consideration to be received by the public stockholders
pursuant to the merger is fair to such public stockholders from a financial
point of view, and (ii) shall not have withdrawn such opinion; (e) Pictsweet LLC
or UF Acquisition Corp. shall have received and caused the financing to be
closed in accordance with the permitted financing terms described in the merger
agreement, and the proceeds of the financing shall have been made available for
the consummation of the transactions; (f) Pictsweet LLC shall have received all
documents it may reasonably request relating to the existence of the Company and
the authority of the Company to enter into the merger agreement, all in form and
substance reasonably satisfactory to Pictsweet LLC; and (g) Pictsweet LLC and
the Company shall have received or be satisfied that it will receive all
consents and approvals contemplated by Sections 3.3 and 3.4 of the merger
agreement related to governmental authorization and non-contravention, and any
other consents of third parties necessary in connection with the consummation of
the merger, if failure to obtain any such consent would have a material adverse
effect or violate any law or order.
Pictsweet LLC and UF Acquisition Corp. Pursuant to the merger agreement,
the obligations of Pictsweet LLC and UF Acquisition Corp. to effect the merger
are also subject to satisfaction, at or prior to the time of obtaining the
Required Stockholder Vote, of the following conditions: (a) the Required
Stockholder Vote shall have been obtained, and the number of Dissenting Shares
shall not equal or exceed 250,000 shares of Common Stock; (b) the Company shall
have performed in all material respects all of its obligations under the merger
agreement required to be performed by it at or prior to the effective time of
the merger, the representations and warranties of the Company contained in the
merger agreement and in any certificate delivered by the Company pursuant to the
merger agreement shall be true and correct in all material respects, at and as
of the effective time of the merger as if made at and as of such time, except
that those representations and warranties which address matters only as of a
particular date shall remain true and correct as of such date, and Pictsweet LLC
shall have received a certificate signed by an executive officer who may be the
principal financial officer of the Company to the foregoing effect; (c) no
material adverse effect shall have occurred or shall be pending; (d) Pictsweet
LLC shall have received a certificate signed by an executive officer of the
Company, certifying
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the foregoing items (a) and (c); (e) no reasonable basis (including, but not
limited to, information from a customer(s) or available from public or reliable
industry sources) exists for UF Acquisition Corp. or Pictsweet LLC to believe
that any significant customer(s) for products sold by either division of the
Company, representing individually ten percent (10%) or more (or representing
one of the top three customers [measured by gross sales of that division during
fiscal 1999]), or in the aggregate representing twenty-five percent (25%) or
more of the gross sales of that division during fiscal 1999, will reduce its
annual purchases from the Company after consummation of the transactions to a
level less than eighty percent (80%) of the amount it purchased from the Company
during fiscal 1999 (provided, however, that such reasonable basis must be
materially different from the state of facts known to Pictsweet LLC and UF
Acquisition Corp. at the date of execution of the merger agreement); (f) all of
the directors of Company shall have delivered to Pictsweet LLC in writing their
resignations as directors of surviving corporation, with such resignations to
become effective immediately at 12:01 a.m. of the day next after the Closing
Date; (g) all actions to be taken by the Company in connection with consummation
of the transactions, and all certificates, instruments, and other documents
required to effectuate the transactions, shall be reasonably satisfactory in
form and substance to Pictsweet LLC and UF Acquisition Corp.; and (h) the fees
to be paid J.C. Bradford by the Company shall not exceed $185,000 plus (i)
out-of-pocket expenses and (ii) legal fees not to exceed $10,000, for its
services rendered to the special committee.
The Company. Pursuant to the merger agreement, the obligation of the
Company to effect the merger is also subject to the fulfillment of the following
conditions: (a) Pictsweet LLC and UF Acquisition Corp. shall have performed in
all material respects all of their respective obligations under the merger
agreement required to be performed by them at or prior to the effective time of
the merger, the representations and warranties of Pictsweet LLC and UF
Acquisition Corp. contained in the merger agreement and in any certificate
delivered by Pictsweet LLC or UF Acquisition Corp. pursuant to the merger
agreement shall be true and correct in all material respects at and as of the
effective time of the merger as if made at and as of such time, except that
those representations and warranties which address matters only as of a
particular date shall remain true and correct as of such date, and the Company
shall have received a certificate signed by the President or any Vice President
of each of Pictsweet LLC and UF Acquisition Corp. to the foregoing effect; (b)
the Company shall have received all documents it may reasonably request relating
to the existence of Pictsweet LLC or UF Acquisition Corp. and the authority of
Pictsweet LLC or UF Acquisition Corp. to enter into the merger agreement, all in
form and substance reasonably satisfactory to the Company; and (c) all actions
to be taken by Pictsweet LLC or UF Acquisition Corp. in connection with
consummation of the transactions, and all certificates, instruments, and other
documents required to effectuate the transactions, shall be satisfactory in form
and substance to Company.
TERMINATION
The merger agreement may be terminated and the transactions may be
abandoned at any time prior to the effective time of the merger (notwithstanding
any adoption and approval of the merger agreement by stockholders): (a) by
mutual written consent of the Company and Pictsweet LLC; (b) by either Pictsweet
LLC or the Company, if the merger has not been consummated by September 30,
1999; provided, however, that the right to terminate the merger agreement under
the applicable sections of the merger agreement shall not be available to any
party whose failure to fulfill any obligation under
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<PAGE> 52
the merger agreement has been the cause of, or resulted in, the failure of the
effective time of the merger to occur on or before such date; (c) by either
Pictsweet LLC or the Company, if there shall be any law that makes consummation
of the transactions illegal or otherwise prohibited or if any order enjoining
Pictsweet LLC or the Company from consummating the transactions is entered and
such order shall become final and nonappealable; (d) by either Pictsweet LLC or
the Company if the merger agreement and the transactions shall fail to be
approved and adopted by the Required Stockholder Vote at the special meeting
called for such purpose; (e) by either Pictsweet LLC or the Company, if,
consistent with the terms of the merger agreement, the board of directors of the
Company withdraws, modifies or changes its recommendation of the merger
agreement or the transactions in a manner adverse to Pictsweet LLC or UF
Acquisition Corp. or shall have resolved to do any of the foregoing or the board
of directors of the Company shall have recommended to stockholders of the
Company any competing transaction or resolved to do so; or (f) by the Company,
if Pictsweet LLC and UF Acquisition Corp. have not delivered to the Company
within fifteen (15) days of the date of the merger agreement copies of a written
commitment(s) from a lending institution(s) (which institution the Company
determines to be acceptable to it), pursuant to which financing will be received
on terms at least as favorable as the permitted financing terms.
If the merger agreement is terminated pursuant to the applicable provisions
listed above, the merger agreement shall become void and of no effect with no
liability on the part of any party thereto, except that the agreements regarding
payment of expenses shall survive the termination of the merger agreement;
provided, however, that, except as specifically provided in the merger
agreement, nothing shall relieve any party of liability for any breach of the
merger agreement.
FEES AND EXPENSES
The merger agreement provides that all fees and expenses incurred in
connection with the merger agreement and the transactions contemplated thereby
will be paid by the Company if the merger is consummated. If the merger is not
consummated, the Company shall likewise pay all reasonable expenses incurred by
all parties in connection with the merger agreement or the transactions;
provided, however, that the Company may refuse to pay any expenses incurred by
Pictsweet LLC or UF Acquisition Corp. if the failure to consummate the merger
arose from (i) a breach of the terms of the merger agreement by either Pictsweet
LLC or UF Acquisition Corp., (ii) a failure to obtain the Required Stockholder
Vote or (iii) the number of Dissenting Shares equaling or exceeding 250,000
shares.
INDEMNIFICATION OF DIRECTORS AND OFFICERS
The parties have agreed that for six years, or for the period provided in
the applicable statute of limitations, whichever is longer, from and after the
effective time of the merger, Pictsweet LLC will or will cause the surviving
corporation to indemnify and hold harmless the Indemnified Parties in respect of
acts or omissions occurring at or prior to the effective time of the merger to
the fullest extent provided under the DGCL or under the Company's Certificate of
Incorporation and Bylaws in effect on the date of the merger agreement. The
Parties have agreed with respect to matters occurring through the effective time
of the merger, existing in favor of directors and officers of the Company as
provided in the Company's Certificate of Incorporation, By-Laws or certain
existing indemnification
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<PAGE> 53
agreements between the Company and such parties, shall survive the merger and
shall continue in full force and effect for a period of not less than six years
from the effective time of the merger. The Company's Certificate of
Incorporation, By-Laws and such existing indemnification agreements provide for
indemnification of the Company's directors and officers under certain
circumstances for actions taken on behalf of the Company.
ACCESS TO INFORMATION
The Company has agreed to afford Pictsweet LLC and its representatives,
upon reasonable advance notice, access during normal business hours prior to the
effective time of the merger to the properties, books, contracts, insurance
policies, commitments and records of the Company and its subsidiaries, and
during such period promptly to furnish Pictsweet LLC with such other information
concerning its business, properties and personnel as Pictsweet LLC may
reasonably request.
LEGAL COMPLIANCE
Subject to the terms and conditions in the merger agreement, each of the
parties to the merger agreement has agreed to use its reasonable best efforts to
take, or cause to be taken, all action and to do, or cause to be done, all
things necessary, proper or advisable under applicable laws and regulations to
consummate and make effective the merger and the other transactions contemplated
by the merger agreement. Pursuant to the merger agreement, each of the Company,
Pictsweet LLC and UF Acquisition Corp. has agreed to use its reasonable best
efforts to comply promptly with all legal requirements that may be imposed on it
with respect to the merger agreement and the transactions contemplated thereby
and to cooperate with, and furnish information to, each other in connection with
any such requirements imposed upon any of them or any of the subsidiaries in
connection with the merger agreement and the transactions contemplated thereby.
AMENDMENT
The merger agreement provides that it may be amended, modified and
supplemented in any and all respects, whether before or after any approval and
adoption of the merger agreement by the stockholders of the Company, by written
agreement of the Company, Pictsweet LLC and UF Acquisition Corp., at any time
prior to the effective time of the merger; provided, however, that the Company
shall only agree to any material modification, amendment, supplement or waiver
with the consent of the special committee; and provided, further, that after the
approval and adoption of the merger agreement by the stockholders of the
Company, no such amendment, modification or supplement shall reduce the amount
or change the form of the merger consideration to be received in exchange for
shares of Common Stock or any of the terms or conditions of the merger agreement
if such alternative or change would adversely affect the public stockholders.
STOCKHOLDER LITIGATION
A complaint was filed by a stockholder of the Company on March 8, 1999,
against the Company and directors of the Company in the matter of Rolfe Glover
v. United Foods, Inc., et al., Court of Chancery of the State of Delaware (New
Castle County)(C.A. No. 17006 NC). The complaint seeks class action status and
alleges (among other things) that the defendants breached their fiduciary duties
to the Company's stockholders with respect to a proposal by the Jim Tankersley
Family to acquire the remaining shares of the
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<PAGE> 54
Company's Common Stock that are not owned by them in a merger in which the other
stockholders would receive $3.00 per share. The complaint requests an injunction
prohibiting the consummation of the transaction, damages and other relief. A
second complaint was filed by a stockholder of the Company on May 3, 1999,
against the Company and its directors in the matter of Robert I. Strougo v.
James I. Tankersley, et al., Court of Chancery of the State of Delaware (New
Castle County)(C.A. No. 17137 NC). This complaint also seeks class action
status, makes similar allegations with respect to the transaction and requests
similar relief.
APPRAISAL RIGHTS
If the merger is consummated, holders of shares of Common Stock are
entitled to appraisal rights under Section 262 of the DGCL, provided that they
comply with the conditions established by Section 262.
Section 262 is reprinted in its entirety as Appendix C to this Proxy
Statement. The following discussion is not a complete statement of the law
relating to appraisal rights and is qualified in its entirety by reference to
Appendix C. This discussion and Appendix C should be reviewed carefully by any
stockholder who wishes to exercise statutory appraisal rights or who wishes to
preserve the right to do so, as failure to comply with the procedures set forth
herein or therein will result in the loss of appraisal rights.
A record holder of shares of Common Stock who makes the demand described
below with respect to such shares, who continuously is the record holder of such
shares through the effective time of the merger, who otherwise complies with the
statutory requirements of Section 262 and who neither votes in favor of the
merger nor consents thereto in writing will be entitled to an appraisal by the
Delaware Court of Chancery (the "Delaware Court") of the fair value of his or
her shares of Common Stock. All references in this summary of appraisal rights
to a "stockholder" or "holders of shares of Common Stock" are to the record
holder or holders of shares of Common Stock. Except as set forth herein,
stockholders of the Company will not be entitled to appraisal rights in
connection with the merger.
Under Section 262, where a merger is to be submitted for approval at a
meeting of stockholders, such as the special meeting, not less than 20 days
prior to the meeting a constituent corporation must notify each of the holders
of its stock for whom appraisal rights are available that such appraisal rights
are available and include in each such notice a copy of Section 262. This proxy
statement constitutes such notice to the record holders of Common Stock.
Holders of shares of Common Stock who desire to exercise their appraisal
rights must not vote in favor of the merger and must deliver a separate written
demand for appraisal to the Company prior to the vote by the stockholders of the
Company on the merger. A demand for appraisal must be executed by or on behalf
of the stockholder of record and must reasonably inform the Company of the
identity of the stockholder of record and that such stockholder intends thereby
to demand appraisal of the Common Stock. A proxy or vote against the merger will
not by itself constitute such a demand. Within ten days after the effective time
of the merger the Company must provide notice of the effective time of the
merger to all stockholders who have complied with Section 262.
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<PAGE> 55
A stockholder who elects to exercise appraisal rights should mail or
deliver his or her written demand to: United Foods, Inc., Attention: Donald
Dresser, Secretary and Senior Vice President, Administration, Ten Pictsweet
Drive, Bells, Tennessee 38006-0119.
A person having a beneficial interest in shares of Common Stock that are
held of record in the name of another person, such as a broker, fiduciary,
depositary or other nominee, must act promptly to cause the record holder to
follow the steps summarized herein properly and in a timely manner to perfect
appraisal rights. If the shares of Common Stock are owned of record by a person
other than the beneficial owner, including a broker, fiduciary (such as a
trustee, guardian or custodian), depositary or other nominee, such demand must
be executed by or for the record owner. If the shares of Common Stock are owned
of record by more than one person, as in a joint tenancy or tenancy in common,
such demand must be executed by or for all joint owners. An authorized agent,
including an agent for two or more joint owners, may execute the demand for
appraisal for a stockholder of record; however, the agent must identify the
record owner and expressly disclose the fact that, in exercising the demand,
such person is acting as agent for the record owner. If a stockholder holds
shares of Common Stock through a broker who in turn holds the shares through a
central securities depository nominee such as Cede & Co., a demand for appraisal
of such shares must be made by or on behalf of the depository nominee and must
identify the depository nominee as record holder.
A record holder, such as a broker, fiduciary, depositary or other nominee
who holds shares of Common Stock as a nominee for others, may exercise appraisal
rights with respect to the shares held for all or less than all beneficial
owners of shares as to which such person is the record owner. In such case, the
written demand must set forth the number of shares covered by such demand. Where
the number of shares is not expressly stated, the demand will be presumed to
cover all shares of Common Stock outstanding in the name of such record owner.
Within 120 days after the effective time of the merger, either the Company
or any stockholder who has complied with the required conditions of Section 262
may file a petition in the Delaware Court, with a copy served on the Company in
the case of a petition filed by a stockholder, demanding a determination of the
fair value of the shares of all dissenting stockholders. There is no present
intent on the part of the Company to file an appraisal petition and stockholders
seeking to exercise appraisal rights should not assume that the Company will
file such a petition or that the Company will initiate any negotiations with
respect to the fair value of such shares. Accordingly, holders of Common Stock
who desire to have their shares appraised should initiate any petitions
necessary for the perfection of their appraisal rights within the time periods
and in the manner prescribed in Section 262. Within 120 days after the effective
time of the merger, any stockholder who has theretofore complied with the
applicable provisions of Section 262 will be entitled, upon written request, to
receive from the Company a statement setting forth the aggregate number of
shares of Common Stock not voting in favor of the merger and with respect to
which demands for appraisal were received by the Company and the number of
holders of such shares. Such statement must be mailed (i) within 10 days after
the written request therefor has been received by the Company or (ii) within 10
days after the expiration of the period for the delivery of demands as described
above, whichever is later.
If a petition for an appraisal is filed timely, at the hearing on such
petition, the Delaware Court will determine which stockholders are entitled to
appraisal rights. The Delaware Court may require the stockholders who have
demanded an appraisal for their
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<PAGE> 56
shares and who hold stock represented by certificates to submit their
certificates of stock to the Register in Chancery for notation thereon of the
pendency of the appraisal proceedings; and if any stockholder fails to comply
with such direction, the Delaware Court may dismiss the proceedings as to such
stockholder. Where proceedings are not dismissed, the Delaware Court will
appraise the shares of Common Stock owned by such stockholders, determining the
fair value of such shares exclusive of any element of value arising from the
accomplishment or expectation of the merger, together with a fair rate of
interest, if any, to be paid upon the amount determined to be the fair value.
Although the Company believes that the merger consideration for each share
held by a public stockholder is fair, no representation is made as to the
outcome of the appraisal of fair value as determined by the Delaware Court and
stockholders should recognize that such an appraisal could result in a
determination of a value higher or lower than, or the same as, the merger
consideration. Moreover, the Company does not anticipate offering more than the
merger consideration to any stockholder exercising appraisal rights and reserves
the right to assert, in any appraisal proceeding, that, for purposes of Section
262, the "fair value" of a share of Common Stock is less than the merger
consideration. In determining "fair value," the Delaware Court is required to
take into account all relevant factors. In Weinberger v. UOP, Inc. the Delaware
Supreme Court discussed the factors that could be considered in determining fair
value in an appraisal proceeding, stating that "proof of value by any techniques
or methods which are generally considered acceptable in the financial community
and otherwise admissible in court" should be considered and that "[f]air price
obviously requires consideration of all relevant factors involving the value of
a company." The Delaware Supreme Court has stated that in making this
determination of fair value the court must consider market value, asset value,
dividends, earnings prospects, the nature of the enterprise and any other facts
which could be ascertained as of the date of the merger which throw any light on
future prospects of the merged corporation. Section 262 provides that fair value
is to be "exclusive of any element of value arising from the accomplishment or
expectation of the merger." In Cede & Co. v. Technicolor, Inc., the Delaware
Supreme Court stated that such exclusion is a "narrow exclusion [that] does not
encompass known elements of value," but which rather applies only to the
speculative elements of value arising from such accomplishment or expectation.
In Weinberger, the Delaware Supreme Court construed Section 262 to mean that
"elements of future value, including the nature of the enterprise, which are
known or susceptible of proof as of the date of the merger and not the product
of speculation, may be considered."
Stockholders considering seeking appraisal should recognize that the fair
value of their shares determined under Section 262 could be more than, the same
as or less than the consideration they are entitled to receive pursuant to the
merger agreement if they do not seek appraisal of their shares. The cost of the
appraisal proceeding may be determined by the Delaware Court and taxed against
the parties as the Delaware Court deems equitable in the circumstances. However,
costs do not include attorneys' and expert witness fees. Each dissenting
stockholder is responsible for his or her attorneys' and expert witness
expenses, although, upon application of a dissenting stockholder of the Company,
the Delaware Court may order that all or a portion of the expenses incurred by
any dissenting stockholder in connection with the appraisal proceeding,
including without limitation, reasonable attorneys' fees and the fees and
expenses of experts, be charged pro rata against the value of all shares of
stock entitled to appraisal.
Any stockholder who has duly demanded appraisal in compliance with Section
262 will not, after the effective time of the merger, be entitled to vote for
any purpose any
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<PAGE> 57
shares subject to such demand or to receive payment of dividends or other
distributions on such shares, except for dividends or distributions payable to
stockholders of record at a date prior to the effective time of the merger.
At any time within 60 days after the effective time of the merger, any
stockholder will have the right to withdraw such demand for appraisal and to
accept the terms offered in the merger; after this period, the stockholder may
withdraw such demand for appraisal only with the consent of the Company. If no
petition for appraisal is filed with the Delaware Court within 120 days after
the effective time of the merger, stockholders' rights to appraisal shall cease,
and all holders of shares of Common Stock will be entitled to receive the
consideration offered pursuant to the merger agreement. Inasmuch as the Company
has no obligation to file such a petition, and the Company has no present
intention to do so, any stockholder who desires such a petition to be filed is
advised to file it on a timely basis. Any stockholder may withdraw such
stockholder's demand for appraisal by delivering to the Company a written
withdrawal of his or her demand for appraisal and acceptance of the merger
consideration, except (i) that any such attempt to withdraw made more than 60
days after the effective time of the merger will require written approval of the
Company and (ii) that no appraisal proceeding in the Delaware Court shall be
dismissed as to any stockholder without the approval of the Delaware Court, and
such approval may be conditioned upon such terms as the Delaware Court deems
just.
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BUSINESS OF THE COMPANY
General. The Company was incorporated under the laws of the State of Texas
on March 9, 1956 and became a Delaware corporation on September 30, 1983. The
Company is principally engaged in the growing, processing, marketing and
distribution of food products.
Products. The Company's primary food products include frozen asparagus,
black-eyed peas, broccoli, Brussels sprouts, carrots, cauliflower, corn, green
beans, green peas, green peppers, lima beans, mushrooms, onions, okra, southern
greens, spinach, squash, turnips, white acre peas, various vegetable mixes and
blends, and fresh mushrooms.
Marketing. The Company's food products are primarily sold directly to
large national grocery chains and through food brokers to numerous independent
food stores located throughout the United States for resale in the retail
market. These products are sold both under the Company's brand names and under
buyers' labels, and to military commissaries in the United States and overseas
under the Company's brand names. Such sales represented approximately 75% of the
Company's revenue for the year ended February 28, 1999. The Company's principal
brand name is "Pictsweet," which is used throughout the United States and in
military commissaries overseas. Since such a large part of the Company's sales
are made in the retail market and since a significant proportion of the retail
grocery trade in the United States is concentrated in the hands of national
grocery chains, a large part of the Company's revenue is derived from sales to
these chains. The retail market has experienced a consolidation of participants
in recent years, furthering a trend towards fewer and larger customers. The
Company's five largest customers are the Defense Personnel Support Center, Food
Lion, Inc., The Kroger Company, Publix Supermarkets, Inc. and the J. R. Simplot
Company. Sales to these five customers represented approximately 36% of the
Company's revenue for the fiscal year ended February 28, 1999, with sales to one
particular customer representing approximately 13.1% of such revenue. Due to
competition, the Company's mix of customers may change. The Company primarily
conducts its business through purchase orders. Therefore, it is possible that
the Company may lose one or more of its larger customers from time to time, and
such loss could have a material adverse effect on revenue and results of
operations.
As a part of its marketing program, the Company may use sales allowances in
certain instances. These sales allowances may include cash discounts for prompt
payment, freight allowances, customer incentive programs, advertising allowances
and other sales allowances based on competitive factors. The Company may also
make additional expenditures in connection with the introduction of new products
or the maintenance or expansion of its market position.
The Company primarily conducts its business through purchase orders. The
Company accepts purchase orders, and may invoice such purchases, electronically.
The Company also monitors the inventory levels of certain of its customers
electronically and, based on the customer's stated expectations, automatically
generates a purchase order on such customer's behalf, ships and invoices the
appropriate food products and then invoices the customer. The Company believes
that it and its significant customers will be Year 2000 compliant. However, if
the Company or one or more significant third parties with whom the Company does
business fail to become Year 2000 compliant in a timely manner, such failure may
have a material adverse effect on the Company's results of operations.
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The Company also sells certain of its food products, directly and through
food brokers, to institutions located throughout the United States, such as
restaurants, schools, hospitals, hotels, and federal and state government
agencies. Such sales represented approximately 16% of the Company's revenue for
the year ended February 28, 1999.
In addition, the Company sells certain of its food products directly to
other food companies. Such sales represented approximately 7% of the Company's
revenue for the year ended February 28, 1999.
The Company's food brokers are compensated on a commission basis.
The Company does not consider backlog at fiscal year end to be material to
an understanding of its business.
Sales are somewhat seasonal. Historically, sales have been lower during the
Company's second quarter (summer months) when larger volumes of fresh fruits and
vegetables are available.
The Company operates a truck fleet which transports a substantial portion
of the Company's products. Transportation services are also provided to
customers other than the Company and accounted for less than 1% of the Company's
revenue for the year ended February 28, 1999.
Rental and miscellaneous income accounted for less than 1% of the Company's
revenue for the year ended February 28, 1999.
Trademarks. Approximately 67% of the Company's revenues are derived from
sales under the "Pictsweet" brand and other registered trademarks. These
trademarks expire over various periods of up to 20 years, but may be renewed.
Operations. Agricultural products comprising approximately 22% of the
total pounds of product sold by the Company are grown on Company-operated farms.
The Company farms approximately 8,000 acres of land in west Tennessee, of which
approximately 7,000 acres are leased, and operates mushroom farms on the west
coast and in Utah. Procurement of the remaining requirements is generally either
by contract with growers, from assemblers or from other food processing
companies. Agricultural crops have seasonal features and availability is subject
to unpredictable changes in growing conditions that are inherent in the
agriculture industry. The Company bears part of the growing risks and all of the
processing and marketing risks associated with its agricultural products.
Weather abnormalities and other adverse growing conditions sometimes result in
substantial reductions in the annual volumes processed in the Company's
facilities. When this occurs, the Company may have to procure raw and processed
products from alternative sources at higher than expected costs and the reduced
volume of products grown and/or processed by the Company results in increased
unit costs. When growing conditions result in yields that exceed expectations,
the Company will generally pack only volumes required by anticipated demand, or
will sell excess inventory through alternative channels. Additionally, selling
prices are impacted by industry-wide production and inventory levels. Bumper
crops and resulting increased inventory levels will tend to decrease average
selling prices, while crop shortages typically do not result in increased
selling prices.
The Company has entered into multi-year supply agreements with other food
processing companies. Prices for food products pursuant to these agreements are
determined annually. Through these agreements, the Company procures food
products to meet its production and inventory requirements. Quantities available
pursuant to these
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agreements are generally limited as to individual food products and in the
aggregate. Generally, the purchaser bears the risks associated with limited
supplies under these agreements. Under these supply agreements, the Company also
is obligated to sell food products produced at its Tennessee and Santa Maria,
California facilities to the other food processing companies.
The time and duration of production seasons vary considerably according to
the specific product. For example, the annual requirement for white acre peas is
available only during a period of approximately two weeks, while broccoli is
available for approximately ten months of each year and mushrooms are available
year round. Thus, substantial inventories are required for long periods of time
to support the consumer demand for certain items throughout the year.
Working capital requirements generally follow inventory levels and the
Company looks to its lenders to meet its working capital requirements. The
interest rate on the Company's working capital loan fluctuates with the prime
rate.
Competition. The Company is faced with substantial competition in all
aspects of its business. The food industry is highly competitive and the
competition has increased in intensity in recent years. The principal methods of
competition in the food industry involve product branding, price, service and
advertising. Over the past several years, imports of food products have
increased substantially and significant new production capacity has been put in
place in the United States, Mexico and Canada. As a result, the industry's total
production capacity is now substantially in excess of current requirements.
The foregoing factors, coupled with low overall growth and retail grocery
consolidation, have led to weak market pricing. In an effort to address this
intense competition, the Company intends to continue to invest in maintaining
and expanding its distribution base and to make substantial expenditures to
maintain and improve its plants, equipment and technological systems.
The Company has developed the "Pictsweet" brand into a national brand which
enables it to differentiate its products on a basis other than price.
Additionally, the Company has a broad-based distribution system for its products
that gives it a competitive advantage in the area of customer service. The
Company also offers electronic links with customers which may be used to
transmit purchase orders and invoices and to monitor customers' inventory
levels.
Employees. At February 28, 1999, the Company had approximately 2,100
employees, of whom approximately 1,960 were engaged in farming, manufacturing,
distribution and service activities and 140 in sales and administration. Because
of the seasonal nature of its production activities, the Company utilizes
temporary employees. Peak employment during the year was approximately 2,400
employees of whom approximately 2,100 were full time employees and approximately
300 were temporary employees.
Properties. The Company owns and is currently operating six facilities in
California, Oregon, Tennessee and Utah. Although production varies with the
seasons at certain of the
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facilities, all the facilities operate during a substantial part of the year.
Set forth in the table below is a list of all facilities with certain
information concerning each:
<TABLE>
<CAPTION>
APPROXIMATE
SQUARE
LOCATION SPACE DEVOTED TO FOOTAGE(1)
-------- ---------------- -----------
<S> <C> <C>
Bells, Tennessee................. Processing Plant 212,000
Cold Storage and Distribution
Warehouse 239,000
Ogden, Utah...................... Processing Plant 68,000
Cold Storage and Distribution
Warehouse 150,000
Fillmore, Utah................... Mushroom farming, packaging and
distribution 186,000
Santa Maria, California.......... Processing Plant 150,000
Cold Storage Warehouse 42,000
Ventura, California.............. Mushroom farming, packaging and
distribution 282,000
Salem, Oregon.................... Mushroom farming, packaging and
distribution 289,000
West Tennessee................... Farming 8,000
</TABLE>
- -------------------------
(1) Except for farm land in west Tennessee which is measured in acres.
The Company believes the condition of its facilities, in the aggregate, are
within industry standards. However, in response to competitive factors, the
Company anticipates making substantial expenditures to maintain and improve its
plants, equipment and technological systems.
Substantially all land, buildings and equipment are pledged as collateral
for outstanding debt (See Note 3 -- Notes to the Financial Statements).
Approximately 7,000 acres of the farm land are leased (See Note 7 -- Notes to
the Financial Statements) and approximately 1,000 acres are owned. The Company
owns or leases the machinery and equipment located at all of its facilities.
Although utilization of production capacity varies from facility to facility,
overall utilization is approximately 75% for the Bells, Tennessee facility and
near 100% for all other facilities.
55
<PAGE> 62
SELECTED HISTORICAL FINANCIAL DATA
Set forth below is certain historical financial information of the Company.
The selected financial information for, and as of the end of, each of the years
in the five year period ended February 28, 1999 is derived from, and should be
read in conjunction with, the historical financial statements of the Company and
notes thereto, which financial statements have been audited by BDO Seidman, LLP,
independent accountants. The historical financial information that follows is
qualified by reference to the financial statements and related notes included
therein.
<TABLE>
<CAPTION>
FISCAL YEAR ENDED FEBRUARY 28 OR 29,
----------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
(THOUSANDS OF DOLLARS, EXCEPT RATIOS AND PER SHARE
DATA)
<S> <C> <C> <C> <C> <C>
Operating Statement Data:
Net sales and service
revenues.................. $206,760 $195,087 $195,820 $191,714 $190,256
Gross Profit................. 39,352 36,452 36,700 36,371 41,496
Operating expenses........... 34,133 31,610 32,028 33,457 34,512
Operating income............. 5,219 4,842 4,672 2,914 6,984
Interest expense............. 4,138 4,141 3,871 3,976 2,831
Miscellaneous income
(expense), net............ (155) 53 707 28 (176)
Income (loss) before taxes on
income (benefit).......... 926 754 1,508 (1,034) 3,977
Taxes on income (benefit).... 406 294 586 (374) 1,575
Net income (loss)............ 520 460 922 (660) 2,402
Per Share Data:
Basic and diluted earnings
(loss) per common
share(1).................. .08 .06 .08 (.06) .19
Cash dividends per common
share:
Class A................... -- -- -- -- --
Class B................... -- -- -- -- --
Balance Sheet Data:
Working capital.............. 39,585 39,179 40,738 42,164 41,013
Current Ratio................ 2.63:1 2.68:1 2.82:1 2.93:1 2.98:1
Property and equipment,
net....................... 58,553 52,086 54,638 62,336 49,229
Long-term debt............... 48,302 42,168 36,244 46,650 30,076
Total assets................. 123,400 115,884 119,108 128,188 114,157
Stockholders' equity......... 46,268 45,748 55,456 54,534 57,440
</TABLE>
- -------------------------
(1) Basic and diluted earnings per common share have been computed using the
average number of shares required to be recognized during the respective
periods. Earnings per share are the same for basic and diluted computations.
56
<PAGE> 63
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain
significant factors which have affected the Company's financial condition and
earnings as of and during the periods included in the accompanying balance
sheets and statements of income. This proxy statement, including the discussion
below, and other reports and statements issued on behalf of the Company may
include forward-looking statements in reliance on the safe harbor provided by
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to substantial risks and uncertainties, including those
discussed below, and actual results may differ materially from those contained
in any such forward-looking statement. The review of factors pursuant to the
Private Securities Litigation Reform Act of 1995 should not be construed as
exhaustive. Further, the Company undertakes no obligation to update or revise
any such forward-looking statements to reflect subsequent events or
circumstances.
The Company's liquidity, capital resources and results of operations may be
affected from time to time by a number of factors and risks, including, but not
limited to: the impact of the merger agreement and merger; trends in the economy
as a whole, which may affect consumer confidence and consumer demand for the
types of food products sold by the Company; competitive pressures from domestic
and foreign processors and distributors of fresh, dry, frozen and canned food
products which may affect the nature and viability of the Company's business
strategy; competitive pressures from imported food products; unpredictable
changes in growing conditions inherent in agriculture; other agricultural risks,
including those associated with pesticides, herbicides and disease control and
crop protection efforts; the Company's ability to maintain and expand its
distribution base; the Company's ability to maintain and improve its plants,
equipment and technological systems; changes in the Company's customer base as
the result of competition and/or consolidation of retail grocery chains; risks
associated with governmental regulation and taxation, including the existence or
effects of tariffs; availability and cost of labor employed; changes in industry
capacity and production; the availability, costs and terms of financing,
including the risk of rising interest rates; availability of trade credit and
terms with vendors; the Company's use of financial leverage and the potential
impact of such leverage on the Company's ability to execute its operating
strategies; the ability to maintain gross profit margins; the seasonal nature of
the Company's business and the ability of the Company to predict consumer demand
as a whole, as well as demand for specific items; costs associated with the
storage, shipping, handling and control of inventory; potential adverse
publicity for the food industry or certain of the Company's food products; and
the ability of the Company and significant third parties with whom it does
business to effect conversions to new technological systems, including becoming
Year 2000 compliant.
FINANCIAL CONDITION
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of cash are operations and external committed
credit facilities. At February 28, 1999, the Company's revolving credit facility
totaled $18,000,000, all of which was available. The Company's sources of
liquidity are expected to meet adequately the requirements for the upcoming year
and the foreseeable future; however, new financing alternatives are constantly
evaluated to determine their practicality and availability in order to provide
the Company with sufficient and timely funding at the
57
<PAGE> 64
least possible costs. The Company's $18,000,000 revolving credit facility
currently matures in fiscal 2002. The Company's $3,000,000 revolving credit
facility was canceled upon the closing of a term loan during December 1998.
One-year extensions of maturity dates of the $18,000,000 revolving credit
facility will be considered by the lender annually. If annual extensions are not
granted, the Company will then investigate revolving credit facilities with
other lenders and believes it can replace any current revolving credit facility
within its remaining 24-month term.
The Company closed on two term loans during December 1998. One term loan in
the amount of $15,000,000 has a ten year term, provides for monthly principal
and interest payments based on a twelve year amortization, with an interest rate
of 6.8% per annum and is secured by the Company's mushroom farms located in
California, Utah and Oregon. The other term loan in the amount of $10,000,000
has a ten year term, provides for monthly principal and interest payments based
on a fifteen year amortization, with an interest rate of 6.8% per annum and is
secured by the Company's Santa Maria, California vegetable processing facility.
The proceeds of the loans were used to repay the balances outstanding under
existing mortgages on these properties totaling approximately $9,000,000, to
repay the outstanding balance of $3,000,000 on the Company's $3,000,000
revolving credit note, and to repay fully the outstanding balance under the
other revolving credit facility.
In March 1998, the Company entered into a $10,000,000 credit facility to
support the acquisition of trucks, trailers and similar equipment. The agreement
was terminated during March 1999 and all outstanding borrowings under the
facility, which totaled approximately $740,000, were repaid. Another $10,000,000
credit facility was entered into with a different lender during March 1999.
Interest under the terms of the new facility will be 225 basis points over the
yield for treasuries with a maturity equal to the amortization period of the
equipment being financed. Each loan will be secured by specific equipment and
will be amortized over three to seven years, depending on the type of equipment.
Operating activities provided net cash of $9,699,000 in fiscal 1999, as
compared with $5,917,000 provided in fiscal 1998. The increase from 1998 to 1999
resulted primarily from changes in accounts receivable during fiscal 1998.
Increases in accounts receivable during fiscal 1998 resulted from increased
sales during the month of February, as well as from normal timing factors
associated with cash receipts.
Investing activities used cash of $12,521,000 in fiscal 1999 and $4,454,000
in 1998 and provided cash of $205,000 in 1997. These changes resulted primarily
from an increase in capital expenditures from $693,000 in 1997 to $4,546,000 in
1998 and $12,538,000 in 1999. Proceeds from the sale of property and equipment
totaled $17,000 in fiscal 1999, compared with $92,000 in 1998 and $898,000 in
1997.
Financing activities provided cash of $4,203,000 during fiscal 1999 and
used cash of $4,589,000 during fiscal 1998 and $10,301,000 during fiscal year
1997. The Company closed on two term loans totaling $25,000,000 during December
1998, the proceeds of which were used to repay existing mortgages on the
financed properties totaling approximately $9,000,000 and to repay borrowings
under revolving credit agreements.
On May 19, 1997, the Company initiated a cash tender offer for up to
1,000,000 shares of its Class A and Class B Common Stock at a price of $2.50 per
share. On June 17, 1997, the Company amended the cash tender offer by extending
the expiration date to July 3, 1997 and by increasing the number of shares it
offered to purchase from
58
<PAGE> 65
1,000,000 shares of its Class A and Class B Common Stock to up to 2,500,000
shares of its Class A Common Stock and up to 1,500,000 shares of its Class B
Common Stock, each at a price of $2.50 per share. A total of approximately
2,641,299 shares of Class A common Stock and approximately 1,720,932 shares of
Class B Common Stock were validly tendered and not withdrawn in response to the
offer, as amended. The purchases of shares were prorated in accordance with the
terms of the offer, as amended, for each class of Common Stock. The purchase,
which totaled approximately $10,168,000, including expenses, was funded with
borrowings from the Company's revolving credit facilities and available cash.
On September 16, 1998, the Company received the offer referenced herein by
the Jim Tankersley Family to acquire the remaining shares of the Common Stock
that are not already owned by them. The Company has incurred approximately
$400,000 of expenses with respect to the proposed transaction through May 21,
1999.
Proceeds totaling approximately $14,000,000 from two term loans that closed
during the fourth quarter of fiscal 1997 and cash provided by operations during
fiscal 1997 were used to reduce borrowings under the Company's revolving credit
agreements.
Working capital at February 28, 1999 amounted to $39,585,000, compared to
working capital of $39,179,000 at February 28, 1998. The increase in working
capital in fiscal 1999 resulted primarily from an increase in cash as a result
of the operating, investing and financing activities previously mentioned.
The Company's ratio of debt to equity was 1.67 to 1 at February 28, 1999,
an increase from 1.53 to 1 at February 28, 1998. The increase resulted primarily
from the increased borrowings previously mentioned.
CAPITAL EXPENDITURES
Capital expenditures, on an accrual basis, amounted to $12,953,000 in
fiscal 1999 as compared with $4,774,000 and $533,000 in fiscal 1998 and 1997,
respectively. Fiscal 1999 capital spending included expenditures for new
equipment, farm land, increased storage, trucks, trailers and similar equipment
and vehicles. Capital expenditures for fiscal 2000 are estimated to be
approximately $17,400,000, which is approximately $9,000,000 more than
depreciation expense projected for fiscal 2000. Capital expenditures anticipated
in fiscal 2000 include outlays to be funded under the terms of the $10,000,000
credit facility, previously mentioned, as well as for improvements to the
Company's plants, equipment and technological systems, and the purchase of
certain leased equipment.
YEAR 2000 ISSUES
The Company believes it has developed a comprehensive strategy for updating
its systems for Year 2000 ("Y2K") compliance. The Company's information
technology ("IT") systems include in-house developed software, as well as
software purchased from third parties. All software has been identified and
assessed to determine the extent of renovations required in order to be Y2K
compliant. Renovations to programs that utilize in-house developed computer code
are complete and have been validated. The Company believes vendor developed
software will be made Y2K compliant before the end of the current calendar year
through vendor-provided updates or replacement with other Y2K compliant hardware
and software.
59
<PAGE> 66
The Company has identified significant non-IT systems which may be impacted
by the Y2K problem, including those relating to production, processing, storage,
and communication equipment, and is in the process of determining through
inquiries of equipment suppliers, as well as testing of such equipment, the
extent of renovations required, if any. The Company believes the assessment will
be completed before the end of the Company's second quarter, and that
renovation, validation and implementation will be completed before the end of
the current calendar year.
The Company has identified third parties with which it has a significant
relationship that, in the event of a Y2K failure, could have a material impact
on the Company's financial position or operating results. The third parties
include energy and utility suppliers, creditors, material and product suppliers,
communication vendors, including value-added network vendors, and the Company's
significant customers. These relationships, especially those associated with
certain suppliers and customers, are material to the Company and a Y2K failure
for one or more of these parties could result in a material adverse effect on
the Company's operating results and financial position. The Company is making
inquiries of these third parties to assess their Y2K readiness. The Company
expects that this process will be on-going throughout the remainder of the
current calendar year.
The Company expects that the costs to address the Y2K issues will total
approximately $600,000, of which approximately $500,000 (approximately 35% of
fiscal 1999 management information system expense) was spent in fiscal 1999. The
remainder will be spent during the first three quarters of fiscal 2000. These
costs include salary and fringe benefits for personnel, hardware and software
costs, and consulting and travel expenses associated, directly or indirectly,
with addressing Y2K issues. Y2K issues have received a high priority within the
Company and, as a result, certain other IT projects have been delayed. While
such non-Y2K projects are expected to enhance operational efficiencies and
improve the quality of information available to management, the delay of such
projects is not expected to have material impact on the Company's operations.
The impact of Y2K scenarios could be limited to insignificant matters such
as a minor interruption in production or shipping resulting from unanticipated
problems encountered in the IT systems of the Company, or any of the significant
third parties with whom the company does business. The pervasiveness of the Y2K
issue makes it likely that previously unidentified issues will require
remediation during the normal course of business. In such a case, the Company
anticipates that transactions could be processed manually while IT and other
systems are repaired, and that such interruptions would have a minor effect on
the Company's operations. Worst case Y2K scenarios could be as catastrophic as
an extended loss of utility service resulting from interruptions at the point of
power generation, long-line transmission, or local distribution to the Company's
processing and storage facilities. Such an interruption could result in an
inability to provide products to the Company's customers, as well as impairment
of the Company's production capabilities and its fresh and frozen inventories,
resulting in a material adverse effect on the Company's operating results and
financial position.
IMPACT OF INFLATION
Whether current selling prices will be maintained or future selling price
increases will be sufficient to match any future cost increases is not
determinable at the present time due to the highly competitive conditions which
exist in the food industry.
60
<PAGE> 67
RECENT ACCOUNTING PRONOUNCEMENTS
In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities ("SFAS 133"). SFAS
133 requires companies to recognize all derivatives contracts as either assets
or liabilities in the balance sheet and to measure them at fair value. If
certain conditions are met, a derivative may be specifically designated as a
hedge, the objective of which is to match the timing of gain or loss recognition
on the hedging derivative with the recognition of (i) the changes in the fair
value of the hedged assets or liability that are attributable to the hedged risk
or (ii) the earnings effect of the hedged forecasted transaction. For a
derivative not designated as a hedging instrument, the gain or loss is
recognized in income in the period of change. SFAS 133 amends the guidance in
SFAS No. 52, "Foreign Currency Translation," to permit special accounting for a
hedge of a foreign currency forecasted transaction with a derivative. It also
supersedes SFAS No. 80, "Accounting for Futures Contracts," SFAS No. 105,
"Disclosure of Information about Financial Instruments with Off-Balance-Sheet
Risk and Financial Instruments with Concentrations of Credit Risk," and SFAS No.
119, "Disclosure about Derivative Financial Instruments." In addition, it amends
SFAS No. 107, "Disclosures about Fair Value of Financial Instruments," to
include in SFAS No. 107 the disclosure provisions about concentrations of credit
risk from SFAS No. 105.
SFAS 133 is effective for financial statements for periods beginning after
June 15, 1999. Historically, the Company has not entered into derivatives
contracts either to hedge existing risk or for speculative purposes.
Accordingly, the Company does not expect adoption of the new standard to affect
its financial statements.
RESULTS OF OPERATIONS
OVERVIEW AND TRENDS
The Company's product line is made up of agricultural products which are
subject to the cyclical conditions and risks inherent in the agricultural
industry. The Company bears part of the growing risks and all of the processing
and marketing risks of these agricultural products. Weather abnormalities and
excess inventories sometimes cause substantial reductions in the annual volume
of product processed in the Company's facilities. When this happens, the unit
cost of that year's production will increase substantially, resulting in reduced
profit margins for one or more years. On the other hand, when bumper crops occur
unit costs may decrease but selling prices will, in general, be depressed.
The Company is faced with strong competition in the marketplace from large
brand name competitors, private regional U.S. growers and processors, and
privately-owned Mexican and Canadian growers and processors. These competitive
pressures, coupled with low overall growth and retail grocery consolidation,
have led to weak market pricing, and a substantial increase in trade spending
required for the Company to maintain its market position. These factors have
adversely impacted earnings in certain prior periods and, as a result, certain
discretionary repair and maintenance projects were deferred to later periods.
The Company anticipates that these competitive conditions will continue.
The Company believes that recently imposed interim tariffs on imported
canned mushrooms from certain countries has had the effect of increasing prices
and profitability for this portion of the Company's product line. In cases
involving imported canned mushrooms from Chile, India, Indonesia and China, the
tariff has been approved for a
61
<PAGE> 68
five-year period. It is anticipated that the effect of such tariffs might be
temporary, due to worldwide shifts in production and distribution of mushrooms
resulting from the tariffs.
The Company believes that, in order to address the intense competition
within its industry, it must improve its operational efficiency, lower its
costs, improve its customer service and provide value-added services to its
customers. Accordingly, the Company intends to continue to invest in maintaining
and expanding its distribution base and to make substantial expenditures to
maintain and improve its plants, equipment and technological systems. The
Company believes these expenditures are necessary to keep its business
competitive and will fund such spending during periods when earnings are
available. As a result, the Company expects that its future net income may be
adversely affected during certain periods.
In addition to general inflation and the growing, processing and marketing
risks described above, the Company is facing the significant costs associated
with governmental regulation, the loss of land and water available for
agriculture in California and the increasing competition due to world wide
facilitation of trade, notwithstanding the impact of the previously mentioned
tariff on certain imported canned mushrooms. As a result of these factors, the
Company's earnings are subject to fluctuations and will continue to be so for
the foreseeable future.
The effect on the Company's operations and its ability to withstand the
costs of developing healthcare, OSHA, EPA, taxation and other governmental
regulations is unknown.
SERVICE REVENUES
Service revenues consist primarily of outside revenue from the Company's
trucking operations, rental and miscellaneous income.
SUPPLY AGREEMENTS
The Company has entered into multi-year supply agreements with other food
processing companies. Through these agreements the Company procures food
products to meet production and inventory requirements. The Company is obligated
to sell food products processed at its Tennessee and Santa Maria, California
facilities to the other food processing companies.
FISCAL 1999 COMPARED TO FISCAL 1998
Net Sales and Service Revenues. Net sales and service revenues increased
$11,673,000 or 6.0% for fiscal 1999 as compared with fiscal 1998 as follows:
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28,
------------------------------
1999 1998
------------ ------------
<S> <C> <C>
Gross Sales Revenues:
Food Products................................. $247,795,000 $231,430,000
Services...................................... 2,831,000 3,557,000
------------ ------------
Total Gross Revenues.................. 250,626,000 234,987,000
Less Sales Allowances on Food Products.......... (43,866,000) (39,900,000)
------------ ------------
Net Sales and Service Revenues................ $206,760,000 $195,087,000
============ ============
</TABLE>
62
<PAGE> 69
Food product gross sales revenue increased $16,365,000 or 7.1% in fiscal
1999 as compared with fiscal 1998 and included sales volume increases of 6.1%.
The average selling price of food products increased .9%. The average selling
price of food products sales, excluding the effect of sales to other food
processing companies, increased 1.7% from fiscal 1998 to 1999. Sales allowances
increased $3,966,000 or 9.9% from the prior year primarily as a result of sales
volume increase, competitive market conditions and the Company's efforts in
maintaining current and obtaining additional distribution.
Cost of Sales and Services. Cost of sales and services increased
$8,773,000 or 5.5% in fiscal 1999 as compared with the previous year, primarily
as the result of the sales volume increase of 6.0%. Additionally, adverse
weather conditions resulted in reduced yields and increased unit costs during
fiscal 1999. However, the increased unit costs were partially mitigated by the
relatively lower average unit costs with respect to beginning year inventories.
Moreover, the average cost per pound was reduced as the result of changes in the
overall sales mix. Gross profit increased $2,900,000 or 8.0% in fiscal 1999 as
compared with the previous year and the gross profit margin was 19.0% for fiscal
1999 and 18.7% for fiscal 1998. The increase in gross profit resulted primarily
from the increased sales volume and increased average selling prices previously
mentioned.
Operating results for fiscal 1999 included a charge to operations of
approximately $2,200,000 as compared with approximately $1,850,000 in fiscal
1998, as the result of a plant repair and maintenance program. It is expected
that repair and maintenance expenditures under this program will continue to be
significant during fiscal 2000.
Selling, Administrative and General Expenses. Selling, administrative and
general expenses increased $2,523,000 (8.0%) in fiscal 1999 as compared with the
previous year. Administrative and general selling expense increased $1,237,000
(8.2%) primarily as the result of costs associated with the Company's Y2K
efforts and increases in other general, administrative and selling expenses.
Incentive compensation expense increased $624,000 (81%). Storage expense
increased $187,000 (1.9%), primarily as the result of repairs to the Company's
cold storage facilities. Brokerage expense increased $276,000 (6.5%), primarily
as the result of increased sales. Advertising and other direct selling expenses
increased $199,000 (11.6%).
Interest Expenses. Interest expenses decreased $3,000 (.1%) in fiscal 1999
from fiscal 1998. The effect of additional indebtedness incurred during fiscal
1999 was substantially mitigated by lower average interest rates.
Miscellaneous Income. Miscellaneous Income (Expense) -- Net was $(155,000)
in fiscal 1999 as compared with $53,000 for fiscal 1998. Fiscal 1999 includes
expense of $145,000 related to disposals of property, plant and equipment and
leasehold improvements. Fiscal 1998 includes $51,000 resulting from net gains
realized on disposal of property, plant and equipment.
Taxes on Income. Taxes on income consist of current and deferred income
taxes required to be recognized for fiscal 1999 and 1998.
63
<PAGE> 70
FISCAL 1998 COMPARED TO FISCAL 1997
Net Sales and Service Revenues. Net sales and service revenues decreased
$733,000 or .4% for fiscal 1998 as compared with fiscal 1997 as follows:
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28,
------------------------------
1998 1997
------------ ------------
<S> <C> <C>
Gross Sales Revenues:
Food Products................................. $231,430,000 $227,192,000
Services...................................... 3,557,000 3,173,000
------------ ------------
Total Gross Revenues.................. 234,987,000 230,365,000
Less Sales Allowances on Food Products.......... (39,900,000) (34,545,000)
------------ ------------
Net Sales and Service Revenues................ $195,087,000 $195,820,000
============ ============
</TABLE>
Food product gross sales revenue increased $4,238,000 or 1.9% in fiscal
1998 as compared with fiscal 1997 and included sales volume increases of 3.0%.
The average selling price of food products decreased 1.1%, primarily as the
result of a five million pound (14.0%) increase in sales to other food
processing companies in connection with the previously mentioned multi-year
reciprocal supply agreements. The volume increase in sales to other food
processing companies accounted for approximately one half of the Company's total
sales volume increase. The average selling price of food products sales,
excluding the effect of sales to other food processing companies, increased .3%
from 1997 to 1998. Sales allowances increased $5,355,000 or 15.5% from the prior
year primarily as the result of competitive market conditions and the Company's
efforts in maintaining current, and obtaining additional, distribution.
Cost of Sales and Services. Cost of sales and services decreased $485,000
or .3% in fiscal 1998 as compared with the previous year primarily as the result
of the effect of improved production efficiencies in 1998, the effects of which
were partially mitigated by the 3.0% volume increase. Gross profit decreased
$248,000 or .7% in fiscal 1998 as compared with the previous year and the gross
profit margin was 18.7% for both fiscal 1998 and 1997. The decrease in gross
profit resulted primarily from the increased promotional allowances and
decreased average selling prices previously mentioned, the effects of which were
partially mitigated by favorable production efficiencies in fiscal 1998 as
compared with fiscal 1997.
Operating results for fiscal 1998 include a charge to operations of
approximately $1,850,000 as compared with approximately $1,100,000 in fiscal
1997, as the result of a plant repair and maintenance program.
Selling, Administrative and General Expenses. Selling, administrative and
general expenses decreased $418,000 (1.3%) in fiscal 1998 as compared with the
previous year, primarily as the result of a fiscal 1997 charge of approximately
$829,000 resulting from the Company's adoption of a non-contributory,
unqualified supplemental retirement plan for management employees. Storage
expense increased $443,000 for fiscal 1998 as compared with fiscal 1997
primarily as the result of repairs to the Company's cold storage facilities.
Other expenses increased $32,000 in fiscal 1998 as compared with fiscal 1997.
Interest Expense. Interest expense increased $270,000 (7.0%) in fiscal
1998 from fiscal 1997, primarily as the result of higher average borrows
resulting from the stock purchase previously mentioned.
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<PAGE> 71
Miscellaneous Income. Miscellaneous Income -- Net was $53,000 in fiscal
1998 as compared with $707,000 for fiscal 1997. Fiscal 1997 includes $314,000
resulting from net gains realized on disposal of property, plant and equipment,
and $212,000 to restore the carrying value of certain property held for disposal
to original cost, based on its current fair market value. Further, miscellaneous
income in fiscal 1997 includes the realization of a claim in the amount of
$167,000 related to operations which were discontinued in 1992.
Taxes on Income. Taxes on income consist of current and deferred income
taxes required to be recognized for fiscal 1998 and 1997.
QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
The Company does not engage in hedging or other market structure derivative
trading activities. Additionally, the Company's debt obligations are primarily
fixed-rate in nature and, as such, are not sensitive to changes in interest
rates. The following table summarizes as of February 28, 1999, the amount of
fixed-rate indebtedness and the amount of variable-rate indebtedness that will
mature during the fiscal years indicated. The Company's exposure to interest
rate risk has not changed materially through the date of this Proxy Statement.
<TABLE>
<CAPTION>
EXPECTED MATURITY DATES OF LONG-TERM DEBT AS OF FEBRUARY 28, 1999
(INCLUDING CURRENT PORTION)($000)
---------------------------------------------------------------------------
FAIR
2000 2001 2002 2003 2004 THEREAFTER TOTAL VALUE
------ ------ ------ ------ ------ ---------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed rate debt........... $2,278 $2,457 $2,498 $2,630 $2,841 $32,069 $44,773 $45,757
Average interest rate..... 7.7% 7.7% 7.7% 7.7% 7.7% 7.8%
Variable rate debt........ 218 220 221 221 223 4,922 6,025 6,025
Average interest rate..... 7.3% 7.3% 7.3% 7.3%
------- -------
$50,798 $51,782
======= =======
</TABLE>
65
<PAGE> 72
DIRECTORS AND EXECUTIVE OFFICERS OF THE
COMPANY, PICTSWEET LLC AND UF ACQUISITION CORP.
INFORMATION CONCERNING DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY
Directors. The following table sets forth the name of each director and a
description of such director's positions and offices with the Company, if any; a
brief description of such director's principal occupation and business
experience during at least the last five years; certain directorships presently
held by such director in companies other than the Company; and certain other
information including such director's age. Unless otherwise indicated, the
address of each director and executive officer of the Company is that of the
Company at Ten Pictsweet Drive, Bells, Tennessee 38006-0119. Each person listed
below is a citizen of the United States.
<TABLE>
<CAPTION>
DIRECTOR
DIRECTOR NAME AGE SINCE
------------- --- --------
<S> <C> <C>
Darla T. Darnall............................................ 36 1990
B. M. Ennis................................................. 61 1978
Dr. Joseph A. Geary......................................... 46 1991
Carl W. Gruenewald, II...................................... 65 1981
Thomas A. Hopper, Jr........................................ 39 1997
Kelle T. Northern........................................... 32 1991
Daniel B. Tankersley........................................ 52 1979
James I. Tankersley......................................... 57 1972
James W. Tankersley......................................... 27 1997
Julia T. Wells.............................................. 60 1990
John S. Wilder.............................................. 78 1979
</TABLE>
The following is a summary of the principal business associations of the
Company's directors.
Darla T. Darnall has been Marketing Analyst for the Company's Pictsweet
Frozen Foods Division from 1985 to 1990. Mrs. Darnall has been associated with
the Company since 1981.
B. M. Ennis has been President of the Company since 1989. Mr. Ennis has
been associated with the Company since 1968.
Dr. Joseph A. Geary has been a Minister at St. Paul United Methodist
Church, Memphis, Tennessee since 1996. He has been a Director of the Company
since 1991.
Carl W. Gruenewald, II has been Senior Vice President-Finance of the
Company since 1982 and Treasurer of the Company since 1977. Mr. Gruenewald has
been associated with the Company since 1966.
Thomas A. Hopper, Jr. has been President since 1993 of the Hopper Company,
a media and strategic consulting business. He was a regional director of the
Republican National Committee from 1993 to 1997.
Kelle T. Northern has been Manager -- Human Resources for the Company's
Pictsweet Frozen Foods Division from 1990 to 1996. Mrs. Northern has been
associated with the Company since 1982.
66
<PAGE> 73
Daniel B. Tankersley has been Chief Manager of Dover Communications LLC, a
political consulting, direct mail and media broker since August 1998.
Previously, Mr. Tankersley served as the Company's Vice Chairman of the Board
from 1992 through 1998 and as Secretary of the Company from 1978 through 1998.
Mr. Tankersley was Executive Vice President and General Counsel of the Company
from 1989 to 1992 and Vice President of the Company from 1979 to 1989. He has
been associated with the Company since 1973.
James I. Tankersley has been Chairman of the Board of the Company since
1986. Mr. Tankersley has been the Chief Executive Officer of the Company since
1983 and served as President of the Company from 1977 to 1989. He has been
associated with the Company since 1964.
James W. Tankersley has been Purchasing Manager for the Company since 1995
and has been associated with the Company since 1987.
Julia T. Wells has been Director of Marketing Services for the Company's
Pictsweet Frozen Foods Division since 1986. Mrs. Wells has been associated with
the Company since 1964.
John S. Wilder has been Speaker of the Senate and Lieutenant Governor of
the State of Tennessee since 1970 and has served continuously in the Tennessee
State Legislature since 1968, having served two year terms in 1959 and 1966. Mr.
Wilder is an attorney with Wilder and Saunders, PLC, a law firm in Somerville,
Tennessee and is also Chairman of the Board of Cumberland Bancorp, Inc., a
director of Cumberland Bank of Carthage, Tennessee, a director of Bank
Tennessee, of Collierville, Tennessee and a director of the Community Bank of
Nashville, Tennessee. He is Vice-President of the Longtown Supply Company, Inc.
of Longtown, Tennessee, a farming, cotton-ginning and merchandise business, a
partner in Longtown Farms, a partnership engaged in the business of farming and
a director of Health Management, Inc., a pathological waste disposal company.
Executive Officers. The following sets forth the name of each executive
officer of the Company other than those previously listed as directors and a
description of such person's positions and offices with the Company; a brief
description of such person's business experience during at least the last five
years; and certain other information including such person's age. Each person
listed below is a citizen of the United States.
Donald Dresser, age 51, has been Senior Vice President, Administration and
Secretary since 1998. Previously Mr. Dresser served as Executive Vice-President
and Director of Development for the Company since 1989.
Mason A. Leonard, age 54, has been Division President, Pictsweet Frozen
Foods, since 1989.
John D. Haltom, age 51, has been Division President, Pictsweet Mushroom
Farms, since 1990.
67
<PAGE> 74
INFORMATION CONCERNING DIRECTORS AND EXECUTIVE OFFICERS OF PICTSWEET LLC AND UF
ACQUISITION CORP.
Set forth below is the name of each director and executive officer of
Pictsweet LLC and UF Acquisition Corp. and, unless disclosed elsewhere in this
Proxy Statement, the present principal occupation or employment of each such
person and a brief description of his principal occupation and business
experience during at least the last five years. Each person listed below is a
citizen of the United States.
<TABLE>
<S> <C> <C>
Pictsweet LLC............. James I. Tankersley: President, Director
Darla T. Darnall: Secretary, Director
Kelle T. Northern: Treasurer, Director
James W. Tankersley: Director
Edna W. Tankersley: Director
UF Acquisition Corp....... James I. Tankersley: Chairman of the Board and
President, Director
Donald Dresser: Secretary and Treasurer
Darla T. Darnall: Director
Kelle T. Northern: Director
James W. Tankersley: Director
Edna W. Tankersley: Director
</TABLE>
INFORMATION CONCERNING DIRECTORS AND EXECUTIVE OFFICERS OF THE SURVIVING
CORPORATION
The merger agreement provides that after the merger, the officers and
directors of the Company will become the officers and directors of the surviving
corporation. However, pursuant to the terms of the merger agreement, each
director of the Company personally agrees to deliver to Pictsweet LLC, at
Pictsweet LLC's request, such director's resignation effective immediately at
12:01 a.m. on the day next after the closing date. It is anticipated that all of
the current officers of the Company will become officers of the surviving
corporation with similar duties and responsibilities, but there are no written
agreements to that effect and no person other than the members of the Jim
Tankersley Family is expected to own an equity interest in the surviving
corporation.
68
<PAGE> 75
SECURITY OWNERSHIP OF MANAGEMENT AND
CERTAIN BENEFICIAL OWNERS
The following table sets forth as of June , 1999 the number of shares of
Common Stock which are, to the best of management's belief, controlled or
beneficially owned, directly or indirectly, by each of the present directors,
each of the executive officers of the Company, all directors and executive
officers of the Company as a group, and any holders of five percent or more of
either class of Common Stock:
<TABLE>
<CAPTION>
BENEFICIAL STOCK OWNERSHIP
--------------------------------------------------
PERCENT OF PERCENT OF
NAME CLASS A(1) CLASS(2)(3) CLASS B CLASS(3)
---- ---------- ----------- --------- ----------
<S> <C> <C> <C> <C>
Darla T. Darnall..................... 440,871 14.4% 440,871 10.5%
Donald Dresser....................... -- -- -- --
B. M. Ennis.......................... -- -- -- --
Dr. Joseph A. Geary.................. 1,000 * -- --
Carl W. Gruenewald, II............... -- -- -- --
John D. Haltom....................... 9,200 * 4,000 *
Thomas A. Hopper, Jr................. -- -- -- --
Mason A. Leonard..................... 1,000 * 500 *
Kelle T. Northern.................... 440,871 14.4% 440,871 10.5%
Daniel B. Tankersley................. 712,176 24.3% 312,783 7.5%
James I. Tankersley(4)............... 2,553,415 49.4% 2,553,415 60.9%
James W. Tankersley.................. 440,871 14.4% 440,871 10.5%
Julia T. Wells....................... 327,770 12.5% -- --
John S. Wilder....................... 1,000 * 1,000 *
Jim Tankersley Family(5)............. 2,553,415 49.4% 2,553,415 60.9%
All Directors and Executive Officers
of the Company as a Group (14
Persons)........................... 3,605,561 65.7% 2,871,698 68.5%
</TABLE>
- -------------------------
(1) The following table shows shares of Class A Common Stock, included in the
number of shares beneficially owned, which may be acquired upon the
conversion of Class B Common Stock:
<TABLE>
<CAPTION>
NUMBER OF
NAME SHARES
---- ---------
<S> <C>
Darla T. Darnall.................. 440,871
Mason A. Leonard.................. 500
Kelle T. Northern................. 440,871
James I. Tankersley(4)............ 2,553,415
Daniel B. Tankersley.............. 312,783
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
NAME SHARES
---- ---------
<S> <C>
James W. Tankersley............... 440,871
All Directors and Executive
Officers of the Company as a
Group (14 persons).............. 2,871,698
</TABLE>
- -------------------------
(2) Total Class A shares used to calculate percent of class includes the shares
of Class A Common Stock which may be acquired by the beneficial owner upon
the conversion of Class B Common Stock. See Note (1).
(3) (*) Indicates less than one percent of class.
(4) Includes shares beneficially owned by other members of the Jim Tankersley
Family.
69
<PAGE> 76
(5) The following table sets forth information with respect to shares of Common
Stock beneficially owned by the members of the Jim Tankersley Family:
<TABLE>
<CAPTION>
PERCENT OF
PERCENT OF OF
NAME CLASS A(1) CLASS(2)(3) CLASS B CLASS(3)
---- ---------- ----------- --------- ----------
<S> <C> <C> <C> <C>
Darla T. Darnall................................. 440,871 14.4% 440,871 10.5%
Kelle T. Northern................................ 440,871 14.4% 440,871 10.5%
Edna W. Tankersley............................... 9,474 * 9,474 *
James I. Tankersley.............................. 1,221,328 31.8% 1,221,328 29.1%
James W. Tankersley.............................. 440,871 14.4% 440,871 10.5%
</TABLE>
James I. Tankersley has no power to vote or dispose of and disclaims
beneficial ownership of the 9,474 shares of Class B Common Stock owned by
his spouse, Edna W. Tankersley. All members of the above group may be
reached at Ten Pictsweet Drive, Bells, Tennessee 38006.
Certain directors and executive officers of the Company are also members of
Pictsweet LLC or directors or executive officers of UF Acquisition Corp. With
the exception of the ownership of shares of Common Stock by certain of such
persons set forth in "Security Ownership of Management and Certain Beneficial
Owners," no director or named executive officer of the Company, members or
Pictsweet LLC or directors or executive officers of UF Acquisition Corp. owns
any shares of Common Stock.
MARKET PRICE AND DIVIDEND INFORMATION
The Class A Common Stock and Class B Common Stock are listed on the
American Stock Exchange and the Pacific Exchange, respectively, under the
symbols "UFDA" and "UFDB." On September 15, 1998, the last trading day before
the public announcement of the Jim Tankersley Family's proposal to acquire all
the shares of Common Stock held by the public stockholders, the reported closing
price per share of the Class A Common Stock was $2.375 and the reported closing
price per share of the Class B Common Stock was $2.50. On May 14, 1999, the last
trading day before the public announcement of the execution of the merger
agreement, the reported closing sale price per share of the Class A Common Stock
was $2.50 and the reported closing price per share of the Class B Common Stock
was $2.50. On June , 1999, the last full trading day prior to the date of this
Proxy Statement, the reported closing sale price per share of the Class A Common
Stock was $ and the reported closing price per share of the Class B
Common Stock was $ . STOCKHOLDERS ARE URGED TO OBTAIN A CURRENT PRICE
QUOTATION FOR THE COMMON STOCK.
The Company has not declared or paid any cash dividends to the stockholders
of the Company in recent years. The declaration and payment of dividends by the
Company are subject to the discretion of the board of directors. The board of
directors determines payment of dividends in light of conditions then existing,
including the Company's earnings, financial condition and requirements,
restrictions in financing agreements, business conditions and other factors.
Restrictive covenants in the credit facility limit retained earnings available
for payment of dividends.
As of February 28, 1999, there were approximately 2,000 and 1,500 holders
of record of the Class A Common Stock and the Class B Common Stock,
respectively.
70
<PAGE> 77
The following table sets forth, for each period shown, the high and low
sales prices of the Common Stock as reported by the American Stock Exchange, the
Common Stock's principal trading market.
<TABLE>
<CAPTION>
CLASS A CLASS B
COMMON COMMON
STOCK STOCK
PRICE RANGE PRICE RANGE
------------- -------------
PERIOD HIGH LOW HIGH LOW
------ ---- --- ---- ---
<S> <C> <C> <C> <C>
Fiscal 1997
Quarter ended May 31, 1996................. $2 1/8 $1 3/4 $2 1/8 $1 3/4
Quarter ended August 31, 1996.............. 2 1/4 1 5/8 2 1/4 1 3/4
Quarter ended November 30, 1996............ 1 15/16 1 5/8 2 1 5/8
Quarter ended February 28, 1997............ 1 7/8 1 1/2 1 7/8 1 1/2
Fiscal 1998
Quarter ended May 31, 1997................. $2 1/8 $1 7/16 $2 3/16 $1 9/16
Quarter ended August 31, 1997.............. 2 15/16 2 2 15/16 2 1/8
Quarter ended November 30, 1997............ 2 3/4 2 1/4 2 3/4 2 1/8
Quarter ended February 28, 1998............ 4 2 3/8 3 13/16 2 3/8
Fiscal 1999
Quarter ended May 31, 1998................. $3 15/16 $2 1/2 $3 11/16 $2 15/16
Quarter ended August 31, 1998.............. 3 1/2 2 1/2 3 5/8 2 3/4
Quarter ended November 30, 1998............ 2 15/16 2 3/8 3 2 7/16
Quarter ended February 28, 1999............ 2 13/16 2 3/8 2 15/16 2 3/8
</TABLE>
CERTAIN TRANSACTIONS IN THE COMMON STOCK
There were no transactions in the Common Stock of the Company that were
effected during the past 60 days by (i) the Company, (ii) any director or
executive officer of the Company, (iii) any person controlling the Company or
(iv) any director or executive officer of the person ultimately in control of
the Company, Pictsweet LLC or UF Acquisition Corp.
On May 19, 1997, the Company initiated a cash tender offer for up to one
million shares of its Class A Common Stock and Class B Common Stock at a price
of $2.50 per share. On June 17, 1997 (the original expiration date of the
Offer), the Company amended the offer by extending the expiration date to July
3, 1997 and by increasing the number of shares it offered to purchase from
1,000,000 shares of its Class A Common Stock and Class B Common Stock to up to
2,500,000 shares of its Class A Common Stock and up to 1,500,000 shares of its
Class B Common Stock, each at $2.50 per share. A total of approximately
2,641,299 shares of Class A Common Stock and 1,720,932 shares of Class B Common
Stock were validly tendered and not withdrawn in response to the offer, as
amended. The purchase of shares was prorated in accordance with the terms of the
offer, as amended, for each class of Common Stock. The purchase, which totaled
approximately $10,168,000, including expenses, was funded with borrowings from
the Company's revolving credit facilities and cash.
During August 1998, Dr. Geary, a director of the Company, purchased 250
shares of Class A Common Stock in the open market at a price of $3.25 per share.
71
<PAGE> 78
INDEPENDENT PUBLIC ACCOUNTANTS
BDO Seidman, LLP serves as the Company's independent certified public
accountants. A representative of BDO Seidman will be at the special meeting to
answer any appropriate question by stockholders and will have the opportunity to
make a statement, if so desired.
STOCKHOLDER PROPOSALS
Stockholders may present proper proposals for inclusion in the Company's
proxy statement and for consideration at the next annual meeting of stockholders
by submitting their proposals to the Company in a timely manner and otherwise
complying with applicable law. As of the date hereof, the Company has not set
the date for the annual meeting of stockholders for 1999. In order to be timely,
proposals must be received a reasonable time before the Company begins to print
and mail its proxy materials for such annual meeting.
ADDITIONAL INFORMATION
Pursuant to the requirements of Section 13(e) of the Exchange Act and Rule
13e-3 promulgated thereunder, the Company, as issuer of the class of equity
securities that are the subject of the Rule 13e-3 transaction, together with
James I. Tankersley, Pictsweet LLC and UF Acquisition Corp. have filed with the
Commission a Transaction Statement on Schedule 13E-3 relating to the
transactions contemplated by the merger agreement. As permitted by the rules and
regulations of the Commission, this Proxy Statement omits certain information,
exhibits and undertakings contained in the Schedule 13E-3. Such additional
information can be inspected at and obtained from the Commission in the manner
set forth below under "Available Information."
Statements contained herein concerning any documents are not necessarily
complete and, in each instance, reference is made to the copy of such document
filed as an exhibit to the Schedule 13E-3. Each such statement is qualified in
its entirety by such reference.
AVAILABLE INFORMATION
The Company is subject to the informational requirements of the Exchange
Act, and the rules and regulations thereunder, and in accordance therewith files
reports, proxy statements and other information with the Commission. Such
reports, proxy statements and other information filed by the Company may be
inspected and copied at the public reference facilities maintained by the
Commission at Room 1024, 450 Fifth Street, N.W., Washington, DC 20549, and at
the Commission's regional offices located at 1401 Brickell Avenue, Suite 200,
Miami, Florida 33131, and 3475 Lenox Road, N.E., Suite 1000, Atlanta, Georgia
30326-1232. Copies of such materials can be obtained at prescribed rates from
the Public Reference Section of the Commission, 450 Fifth Street, N.W.,
Washington, DC 20549. Certain reports, proxy statements and other information
concerning the Company also can be inspected on the Commission's site on the
Internet at http://www.sec.gov. Because the merger is a "going private"
transaction, the Company, Pictsweet LLC, UF Acquisition Corp. and the members of
the Jim Tankersley Family have filed with the Commission a Rule 13E-3
Transaction Statement on Schedule 13E-3
72
<PAGE> 79
under the Exchange Act regarding the merger. This Proxy Statement does not
contain all of the information set forth in the Schedule 13E-3 and exhibits
thereto.
THE DELIVERY OF THIS PROXY STATEMENT SHALL NOT IMPLY THAT THERE HAS BEEN NO
CHANGE IN THE AFFAIRS OF THE COMPANY, PICTSWEET LLC, UF ACQUISITION CORP. OR THE
JIM TANKERSLEY FAMILY SINCE THE DATE HEREOF OR THAT THE INFORMATION IN THIS
PROXY STATEMENT IS CURRENT AS OF ANY TIME SUBSEQUENT TO THE DATE HEREOF.
73
<PAGE> 80
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Stockholders and
Board of Directors of
United Foods, Inc.
We have audited the accompanying balance sheets of United Foods, Inc. as of
February 28, 1999 and 1998, and the related statements of income, stockholders'
equity and cash flows for each of the three years in the period ended February
28, 1999. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of United Foods, Inc. at
February 28, 1999 and 1998, and the results of its operations and its cash flows
for each of the three years in the period ended February 28, 1999, in conformity
with generally accepted accounting principles.
/s/BDO Seidman, LLP
Memphis, TN
April 1, 1999
F-1
<PAGE> 81
UNITED FOODS, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
FEBRUARY 28,
----------------------------
1999 1998
------------ ------------
<S> <C> <C>
ASSETS
CURRENT:
Cash and cash equivalents................................. $ 2,027,000 $ 646,000
Trade accounts receivable, less allowance of $500,000 and
$285,000 for possible losses (Notes 1 and 3)............ 19,154,000 19,263,000
Inventories (Notes 2 and 3)............................... 37,785,000 37,344,000
Prepaid expenses and miscellaneous........................ 3,296,000 3,935,000
Deferred income taxes (Note 5)............................ 1,641,000 1,249,000
------------ ------------
TOTAL CURRENT ASSETS............................... 63,903,000 62,437,000
------------ ------------
PROPERTY AND EQUIPMENT (Note 3):
Land and land improvements................................ 13,814,000 9,968,000
Buildings................................................. 22,227,000 21,399,000
Machinery and equipment................................... 103,388,000 94,870,000
------------ ------------
139,429,000 126,237,000
Less accumulated depreciation and amortization............ (80,876,000) (74,151,000)
------------ ------------
NET PROPERTY AND EQUIPMENT............................ 58,553,000 52,086,000
------------ ------------
OTHER ASSETS................................................ 944,000 1,361,000
------------ ------------
$123,400,000 $115,884,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable.......................................... $ 13,638,000 $ 12,191,000
Accruals:
Compensation and related taxes.......................... 2,994,000 2,889,000
Pension contributions (Note 8).......................... 1,020,000 965,000
Income taxes (Note 5)................................... 514,000 46,000
Workers' compensation claims (Note 9)................... 1,209,000 993,000
Interest................................................ 311,000 448,000
Promotional allowances.................................. 1,566,000 905,000
Miscellaneous........................................... 570,000 394,000
Current maturities of long-term debt (Notes 3 and 8)...... 2,496,000 4,427,000
------------ ------------
TOTAL CURRENT LIABILITIES.......................... 24,318,000 23,258,000
LONG-TERM DEBT, less current maturities (Notes 3 and 8)..... 48,302,000 42,168,000
DEFERRED INCOME TAXES (Note 5).............................. 4,512,000 4,710,000
------------ ------------
TOTAL LIABILITIES.................................. 77,132,000 70,136,000
------------ ------------
COMMITMENTS AND CONTINGENCIES (Notes 7, 8, and 9)
STOCKHOLDERS' EQUITY (Note 4):
Preferred stock, $1 par, shares authorized 10,000,000..... -- --
Common stock, Class A, $1 par, shares authorized
12,000,000; outstanding 2,617,243 and 2,616,139......... 2,617,000 2,616,000
Common stock, Class B, $1 par, shares authorized
6,000,000; outstanding 4,192,686 and 4,193,790.......... 4,193,000 4,194,000
Additional paid-in capital................................ 3,993,000 3,993,000
Retained earnings (Note 3)................................ 35,465,000 34,945,000
------------ ------------
TOTAL STOCKHOLDERS' EQUITY......................... 46,268,000 45,748,000
------------ ------------
$123,400,000 $115,884,000
============ ============
</TABLE>
See accompanying summary of accounting policies and notes to financial
statements.
F-2
<PAGE> 82
UNITED FOODS, INC.
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28,
------------------------------------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
NET SALES AND SERVICE REVENUES (Note
9)................................... $206,760,000 $195,087,000 $195,820,000
COST OF SALES AND SERVICES............. 167,408,000 158,635,000 159,120,000
------------ ------------ ------------
Gross profit...................... 39,352,000 36,452,000 36,700,000
SELLING, ADMINISTRATIVE AND GENERAL
EXPENSES............................. 34,133,000 31,610,000 32,028,000
------------ ------------ ------------
Operating income.................. 5,219,000 4,842,000 4,672,000
------------ ------------ ------------
OTHER INCOME (EXPENSE):
Interest expense..................... (4,138,000) (4,141,000) (3,871,000)
Miscellaneous income (expense),
net............................... (155,000) 53,000 707,000
------------ ------------ ------------
Total other income (expense),
net....................... (4,293,000) (4,088,000) (3,164,000)
------------ ------------ ------------
Income before taxes on income..... 926,000 754,000 1,508,000
TAXES ON INCOME (Note 5)............... 406,000 294,000 586,000
------------ ------------ ------------
NET INCOME............................. $ 520,000 $ 460,000 $ 922,000
============ ============ ============
BASIC AND DILUTED EARNINGS PER COMMON
SHARE (Note 6)....................... $ .08 $ .06 $ .08
============ ============ ============
</TABLE>
See accompanying summary of accounting policies and notes to financial
statements.
F-3
<PAGE> 83
UNITED FOODS, INC.
STATEMENTS OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
COMMON STOCK - COMMON STOCK -
CLASS A CLASS B ADDITIONAL
----------------------- ------------------------ PAID-IN RETAINED
SHARES AMOUNT SHARES AMOUNT CAPITAL EARNINGS
---------- ---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Balance, February 29, 1996..... 7,649,457 $7,650,000 7,096,180 $7,096,000 $ 8,644,000 $41,261,000
Net income for the year........ -- -- -- -- -- 922,000
Exchange of Class B common
stock for Class A common
stock......................... 6,000 6,000 (6,000) (6,000) -- --
Retirement of treasury stock
(Note 4)...................... (2,539,382) (2,540,000) (1,396,326) (1,396,000) (6,181,000) --
---------- ---------- ---------- ---------- ----------- -----------
Balance, February 28, 1997..... 5,116,075 5,116,000 5,693,854 5,694,000 2,463,000 42,183,000
Net income for the year........ -- -- -- -- -- 460,000
Exchange of Class B common
stock for Class A common
stock......................... 64 -- (64) -- -- --
Purchase of treasury stock
(Note 4)...................... -- -- -- -- -- --
Retirement of, and adjustment
in connection with, treasury
stock (Note 4)................ (2,500,000) (2,500,000) (1,500,000) (1,500,000) 1,530,000 (7,698,000)
---------- ---------- ---------- ---------- ----------- -----------
Balance, February 28, 1998..... 2,616,139 2,616,000 4,193,790 4,194,000 3,993,000 34,945,000
Net income for the year........ -- -- -- -- -- 520,000
Exchange of Class B common
stock for Class A common
stock......................... 1,104 1,000 (1,104) (1,000) -- --
---------- ---------- ---------- ---------- ----------- -----------
Balance, February 28, 1999..... 2,617,243 $2,617,000 4,192,686 $4,193,000 $ 3,993,000 $35,465,000
========== ========== ========== ========== =========== ===========
<CAPTION>
TREASURY STOCK
--------------------------
SHARES AMOUNT TOTAL
----------- ------------ -----------
<S> <C> <C> <C>
Balance, February 29, 1996..... 3,935,708 $(10,117,000) $54,534,000
Net income for the year........ -- -- 922,000
Exchange of Class B common
stock for Class A common
stock......................... -- -- --
Retirement of treasury stock
(Note 4)...................... (3,935,708) 10,117,000 --
----------- ------------ -----------
Balance, February 28, 1997..... -- -- 55,456,000
Net income for the year........ -- -- 460,000
Exchange of Class B common
stock for Class A common
stock......................... -- -- --
Purchase of treasury stock
(Note 4)...................... 4,000,000 (10,168,000) (10,168,000)
Retirement of, and adjustment
in connection with, treasury
stock (Note 4)................ (4,000,000) 10,168,000 --
----------- ------------ -----------
Balance, February 28, 1998..... -- -- 45,748,000
Net income for the year........ -- -- 520,000
Exchange of Class B common
stock for Class A common
stock......................... -- -- --
----------- ------------ -----------
Balance, February 28, 1999..... -- $ -- $46,268,000
=========== ============ ===========
</TABLE>
See accompanying summary of accounting policies and notes to financial
statements.
F-4
<PAGE> 84
UNITED FOODS, INC.
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28,
------------------------------------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income............................................. $ 520,000 $ 460,000 $ 922,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation........................................ 7,119,000 7,285,000 7,859,000
Provision for losses on accounts receivable......... 210,000 81,000 60,000
Net loss (gain) on disposal of property and
equipment......................................... 145,000 (51,000) (314,000)
Recovery of writedown on property held for
disposal.......................................... -- -- (212,000)
Deferred income taxes............................... (590,000) (305,000) (626,000)
Change in operating assets and liabilities:
Accounts receivable............................... (101,000) (1,811,000) (3,091,000)
Inventories....................................... (441,000) (650,000) 6,405,000
Prepaid expenses and miscellaneous................ 639,000 (64,000) 721,000
Other assets...................................... (387,000) (16,000) 508,000
Income taxes payable.............................. 468,000 (282,000) 122,000
Accounts payable and accruals..................... 2,117,000 1,270,000 485,000
------------ ------------ ------------
Net cash provided by operating activities...... 9,699,000 5,917,000 12,839,000
------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures................................... (12,538,000) (4,546,000) (693,000)
Proceeds from sale of property and equipment........... 17,000 92,000 898,000
------------ ------------ ------------
Net cash provided (used) by investing
activities................................... $(12,521,000) $ (4,454,000) $ 205,000
------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under line of credit
agreements.......................................... $ (9,448,000) $ 9,448,000 $(20,095,000)
Proceeds from long-term borrowings..................... 26,728,000 922,000 14,884,000
Purchase of treasury stock............................. -- (10,168,000) --
Reduction of long-term debt............................ (13,077,000) (4,791,000) (5,090,000)
------------ ------------ ------------
Net cash provided (used) by financing
activities..................................... 4,203,000 (4,589,000) (10,301,000)
------------ ------------ ------------
NET INCREASE (DECREASE) IN CASH FOR THE YEAR............. 1,381,000 (3,126,000) 2,743,000
CASH AND CASH EQUIVALENTS, beginning of year............. 646,000 3,772,000 1,029,000
------------ ------------ ------------
CASH AND CASH EQUIVALENTS, end of year................... $ 2,027,000 $ 646,000 $ 3,772,000
============ ============ ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest............................................... $ 3,672,000 $ 3,618,000 $ 3,690,000
Income taxes........................................... $ 487,000 $ 854,000 $ 1,084,000
Non-cash investing and financing activities:
Capital expenditures of $643,000 and $228,000 are included in accounts payable at February 28, 1999
and 1998, respectively.
</TABLE>
See accompanying summary of accounting policies and notes to financial
statements.
F-5
<PAGE> 85
UNITED FOODS, INC.
SUMMARY OF ACCOUNTING POLICIES
LINES OF BUSINESS
The Company is principally engaged in the growing, processing, marketing
and distribution of food products, primarily frozen vegetables and fresh
mushrooms.
Food products are distributed for resale in the retail market directly to
large national grocery chains and through food brokers to numerous independent
food stores located throughout the United States, both under the Company's brand
name and under buyers' labels, and to military commissaries in the United States
and overseas under the Company's brand name.
The Company also sells certain of its food products, directly and through
food brokers, to institutions located throughout the United States, such as
restaurants, schools, hospitals, hotels, and federal and state government
agencies. In addition, the Company purchases and sells certain products under
reciprocal supply agreements with other food processors.
The Company currently operates six owned facilities in California, Oregon,
Tennessee and Utah. Although production varies with the seasons at three frozen
vegetable plants, all the facilities operate during a substantial part of the
year.
USE OF ESTIMATES
The preparation of the Company's financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
CASH AND CASH EQUIVALENTS
For purposes of the statements of cash flows, the Company classifies cash
on hand, savings and checking accounts and short-term investments with initial
maturities of less than 90 days as cash equivalents.
INVENTORY VALUATION
Substantially all of the Company's inventories are valued at the lower of
cost (first-in, first-out) or market. Market for finished goods is based on net
realizable value; and for raw materials and growing crops, market is based on
replacement cost.
F-6
<PAGE> 86
UNITED FOODS, INC.
SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
PROPERTY, EQUIPMENT, DEPRECIATION AND AMORTIZATION
Property and equipment are stated at cost. Depreciation and amortization on
property and equipment are computed principally on the straight-line method for
financial reporting purposes over the following estimated useful lives:
<TABLE>
<CAPTION>
DESCRIPTION YEARS
----------- -----
<S> <C>
Land improvements........................................... 10-40
Buildings................................................... 5-60
Machinery and equipment..................................... 3-13
</TABLE>
For income tax purposes, depreciation on property and equipment is computed
primarily on accelerated methods.
The Company continually reviews property and equipment to determine that
the carrying values have not been impaired.
REVENUE RECOGNITION
Sales and related cost of sales are recognized primarily upon shipment of
products.
PRODUCT INTRODUCTION AND MARKETING COSTS
In connection with the introduction of new product lines or the expansion
of its market position in the United States, the Company historically deferred
and amortized product introduction and related costs over a twelve-month period.
In February 1997, the Company began expensing such costs in the period incurred
due to the increasingly competitive nature of the industry which has resulted in
the inability to reasonably estimate the period benefited by these costs. The
effect of this change was to decrease after-tax net income for the year ended
February 28, 1997, by $551,000.
TAXES ON INCOME
The Company provides for estimated income taxes payable or refundable on
current year income tax returns and for the estimated future tax effects
attributable to temporary differences and carryforwards. Measurement of deferred
income taxes is based on enacted tax laws and tax rates, with the measurement of
deferred income tax assets being reduced by estimated amounts of tax benefits
not likely to be realized.
RECENT ACCOUNTING PRONOUNCEMENTS
In June 1997, the Financial Accounting Standards Board issued SFAS 131,
"Disclosures about Segments of an Enterprise and Related Information" ("SFAS
131"), which supersedes SFAS No. 14, "Financial Reporting for Segments of a
Business Enterprise." SFAS 131 establishes standards for the way that public
companies report information about operating segments in annual financial
statements and requires reporting of selected information about operating
segments in interim financial statements issued to the public. It also
establishes standards for disclosures regarding products and services,
F-7
<PAGE> 87
UNITED FOODS, INC.
SUMMARY OF ACCOUNTING POLICIES (CONCLUDED)
geographic areas and major customers. SFAS 131 defines operating segments as
components of a company about which separate financial information is available
that is evaluated by the chief operating decision maker in deciding how to
allocate resources and in assessing performance. In addition, SFAS 131 permits
the aggregation of two or more operating segments if it is consistent with the
objectives and principles of the statement, if they have similar economic
characteristics, and if the segments meet the aggregation criteria set forth in
the statement. The Company has determined that its operating segments meet these
criteria and, accordingly, no disaggregated information regarding the Company's
operating segments has been included in these financial statements.
In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133").
SFAS 133 requires companies to recognize all derivatives contracts as either
assets or liabilities in the balance sheet and to measure them at fair value. If
certain conditions are met, a derivative may be specifically designated as a
hedge, the objective of which is to match the timing of gain or loss recognition
on the hedging derivative with the recognition of (i) the changes in the fair
value of the hedged asset or liability that are attributable to the hedged risk
or (ii) the earnings effect of the hedged forecasted transaction. For a
derivative not designated as a hedging instrument, the gain or loss is
recognized in income in the period of change. SFAS 133 amends the guidance in
SFAS No. 52, "Foreign Currency Translation," to permit special accounting for a
hedge of a foreign currency forecasted transaction with a derivative. It also
supersedes SFAS No. 80, "Accounting for Futures Contracts," SFAS No. 105,
"Disclosure of Information about Financial Instruments with Off-Balance-Sheet
Risk and Financial Instruments with Concentrations of Credit Risk," and SFAS No.
119, "Disclosure about Derivative Financial Instruments." In addition, it amends
SFAS No. 107, "Disclosures about Fair Value of Financial Instruments," to
include in SFAS No. 107 the disclosure provisions about concentrations of credit
risk from SFAS No. 105.
SFAS 133 is effective for financial statements for periods beginning after
June 15, 1999. Historically, the Company has not entered into derivatives
contracts either to hedge existing risk or for speculative purposes.
Accordingly, the Company does not expect adoption of the new standard to affect
its financial statements.
RECLASSIFICATIONS
Certain prior year amounts in the financial statements have been
reclassified to conform to the current year presentation.
F-8
<PAGE> 88
UNITED FOODS, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1. RECEIVABLES
Activity in the allowance for possible losses is summarized as follows:
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28,
---------------------------------
1999 1998 1997
-------- --------- --------
<S> <C> <C> <C>
Balance at beginning of year................. $285,000 $ 308,000 $260,000
Charged to expense........................... 210,000 81,000 60,000
Balances written off, net of recoveries...... 5,000 (104,000) (12,000)
-------- --------- --------
Balance at end of year....................... $500,000 $ 285,000 $308,000
======== ========= ========
</TABLE>
NOTE 2. INVENTORIES
Inventories are summarized as follows:
<TABLE>
<CAPTION>
FEBRUARY 28,
--------------------------
1999 1998
----------- -----------
<S> <C> <C>
Finished products................................... $32,675,000 $31,607,000
Raw materials....................................... 2,223,000 2,303,000
Growing crops....................................... 2,342,000 2,644,000
Merchandise and supplies............................ 545,000 790,000
----------- -----------
$37,785,000 $37,344,000
=========== ===========
</TABLE>
F-9
<PAGE> 89
UNITED FOODS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3. LONG-TERM DEBT
Long-term debt is summarized as follows:
<TABLE>
<CAPTION>
FEBRUARY 28,
--------------------------
1999 1998
----------- -----------
<S> <C> <C>
6.8% term notes, payable in monthly installments of
$241,000, including interest, through January
2009, collateralized by certain real estate and
equipment located in California, Oregon and Utah
(approximate carrying value of $17,800,000)....... $24,900,000 $ --
9.10% term note, payable in monthly installments of
$194,000 through March 1998, and $148,000
thereafter, including interest, through March
2007, collateralized by certain real estate and
equipment located in Bells, Tennessee (approximate
carrying value of $27,100,000).................... 13,535,000 14,096,000
8.98% term note, payable in monthly installments of
$61,000, including interest, through January 2007,
collateralized by certain real estate and
equipment located in Ogden, Utah (approximate
carrying value of $1,900,000)..................... 5,578,000 5,799,000
7.08% to 7.35% notes payable through April 2005,
collateralized by certain equipment located in
California, Tennessee and Utah (approximate
carrying value of $822,000)....................... 760,000 --
9.25% term notes payable (repaid December 1998)..... -- 7,357,000
$18 million revolving credit note payable to bank,
collateralized by certain trade receivables and
inventories (approximate carrying value of
$49,100,000), due June 2001, with interest at the
bank's prime rate less fifty basis points (7.25%
at February 28, 1999)............................. -- 6,448,000
6.97% term note payable (repaid December 1998)...... -- 3,857,000
$3 million revolving credit note payable to bank
(repaid December 1998)............................ -- 3,000,000
6.48% term note payable (repaid January 1999)....... -- 689,000
Deferred compensation agreements, with interest
credited at a rate equal to that which the Company
pays on its revolving credit borrowings (7.25% at
February 28, 1999) (Note 8)....................... 6,025,000 5,349,000
----------- -----------
Totals.................................... 50,798,000 46,595,000
Less current maturities............................. (2,496,000) (4,427,000)
----------- -----------
Long-term debt, less current maturities............. $48,302,000 $42,168,000
=========== ===========
</TABLE>
F-10
<PAGE> 90
UNITED FOODS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
During fiscal year 1999, borrowings under the revolving credit note
averaged $4,890,000, with a maximum amount borrowed of $11,548,000, as compared
to fiscal year 1998 when borrowings averaged $6,017,000, with a maximum amount
borrowed of $12,508,000.
Principal payments required to be made for each of the next five fiscal
years and thereafter are summarized as follows:
<TABLE>
<S> <C>
2000........................................................ $ 2,496,000
2001........................................................ 2,677,000
2002........................................................ 2,719,000
2003........................................................ 2,851,000
2004........................................................ 3,064,000
After 2004.................................................. 36,991,000
-----------
Total............................................. $50,798,000
===========
</TABLE>
The terms of various notes include certain negative covenants which provide
for, among other things, restrictions relating to maximum leverage and the
maintenance of minimum levels of working capital and equity, and the payment of
dividends. Under the most restrictive of these provisions, retained earnings of
$31,730,000 is restricted at February 28, 1999.
NOTE 4. COMMON STOCK
Each Class B common share is convertible into one share of Class A common
stock at the holders' election. Holders of the Class A common stock are entitled
to a preference dividend of $.025 per share for any quarter and each preceding
quarter of the Company's fiscal year before the holders of the Class B common
stock are entitled to any regular cash dividend. With respect to election of
directors, holders of Class A common stock are entitled to elect 25% of the
directors, and holders of Class B common stock are entitled to elect the
remaining directors. On matters requiring the classes to vote together, the
Class A holders are entitled to 1/10 vote per share and holders of Class B
common stock are entitled to one vote per share.
On May 19, 1997, the Company initiated a cash tender offer for up to one
million shares of its Class A and Class B common stock at a price of $2.50 per
share. On June 17, 1997, the Company amended the cash tender offer by extending
the expiration date to July 3, 1997, and by increasing the number of shares it
offered to purchase from one million shares of its Class A and Class B common
stock to up to 2,500,000 shares of its Class A common stock and up to 1,500,000
shares of its Class B common stock, each at a price of $2.50 per share. A total
of 2,641,299 shares of Class A common stock and 1,720,932 shares of Class B
common stock were validly tendered and not withdrawn in response to the offer,
as amended. The purchase of shares was prorated in accordance with the terms of
the offer, as amended, for each class of common stock. The purchase, which
totaled approximately $10,168,000, including expenses, was funded with
borrowings from the Company's revolving credit facilities and available cash.
F-11
<PAGE> 91
UNITED FOODS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Company had an incentive stock option plan for granting key employees
options to purchase shares of the Company's Class A common stock which was
terminated, effective with the expiration of all the options outstanding, in
December 1997.
James I. Tankersley (the Company's chairman and chief executive officer),
Edna W. Tankersley, Kelle T. Northern (a director), Darla T. Darnall (a
director) and James W. Tankersley (a director) (collectively the "Jim Tankersley
Family") have offered to acquire the remaining shares of the Company's common
stock that are not already owned by them in a merger in which the other
stockholders would receive $3 per share. The Board of Directors of the Company
appointed two outside directors to a special transaction committee. The Board
designated the committee for the purpose of evaluating and making
recommendations with respect to the proposal. If consummated, the proposal would
result in the direct or indirect ownership of the entire equity interest of the
Company by the Jim Tankersley Family (Note 9.c.).
NOTE 5. TAXES ON INCOME
The components of income tax expense are as follows:
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28,
----------------------------------
1999 1998 1997
-------- -------- ----------
<S> <C> <C> <C>
Current:
Federal................................... $719,000 $475,000 $1,006,000
State..................................... 277,000 124,000 206,000
-------- -------- ----------
996,000 599,000 1,212,000
-------- -------- ----------
Deferred:
Federal................................... (497,000) (273,000) (502,000)
State..................................... (93,000) (32,000) (124,000)
-------- -------- ----------
(590,000) (305,000) (626,000)
-------- -------- ----------
Income tax expense.......................... $406,000 $294,000 $ 586,000
======== ======== ==========
</TABLE>
The components of the net deferred income tax assets and liabilities
consist of the following:
<TABLE>
<CAPTION>
FEBRUARY 28,
------------------------
1999 1998
---------- ----------
<S> <C> <C>
Deferred tax assets:
Jobs and other tax credit carryforwards............. $1,743,000 $2,804,000
Inventory overhead adjustment....................... 379,000 380,000
Accrued vacation.................................... 472,000 472,000
Deferred compensation............................... 2,318,000 2,029,000
Accrued workers' compensation claims................ 366,000 271,000
Package design costs................................ 283,000 163,000
Other............................................... 460,000 242,000
---------- ----------
Total deferred income tax assets............ $6,021,000 $6,361,000
========== ==========
</TABLE>
F-12
<PAGE> 92
UNITED FOODS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
FEBRUARY 28,
--------------------------
1999 1998
----------- -----------
<S> <C> <C>
Deferred income tax liabilities:
Fixed asset carrying value difference............. $(8,854,000) $(9,707,000)
Other............................................. (38,000) (115,000)
----------- -----------
Total deferred income tax liabilities..... (8,892,000) (9,822,000)
----------- -----------
Net deferred income tax liabilities................. (2,871,000) (3,461,000)
Current deferred income tax asset................... 1,641,000 1,249,000
----------- -----------
Net long-term deferred income tax liability......... $(4,512,000) $(4,710,000)
=========== ===========
</TABLE>
The effective tax rate on income before taxes on income is different from
the federal statutory tax rate. The following summary reconciles taxes at the
federal statutory tax rate with the effective rate:
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28,
---------------------------------
1999 1998 1997
PERCENT PERCENT PERCENT
------- ------- -------
<S> <C> <C> <C>
Taxes on income at statutory rate............... 34.0 34.0 34.0
Increase (reduction) resulting from:
State income taxes, net of federal tax
benefit.................................... 5.6 8.1 2.2
Fuels and jobs tax credits.................... (5.8) (5.8) (3.3)
Other items................................... 10.0 2.7 5.9
---- ---- ----
Taxes on income at effective rate............... 43.8 39.0 38.8
==== ==== ====
</TABLE>
NOTE 6. EARNINGS PER SHARE AND CAPITAL STOCK
Earnings per share of common stock and common stock equivalents have been
computed using 6,809,929 shares in 1999, 8,256,504 shares in 1998, and
11,077,372 shares in 1997, which represent the weighted average number of shares
of Class A and Class B common stock required to be recognized during the
respective periods. As of February 28, 1997, holders of substantially all of the
Company's common stock options had agreed not to exercise their options in
exchange for an agreed-upon amount of deferred compensation and, therefore, the
assumed exercise of the common stock options is not included in the computation
of common stock equivalents for 1998, but were included in computing the
weighted average number of shares for 1997 due to the fact that the agreements
to allow options to expire were not signed until late February 1997.
F-13
<PAGE> 93
UNITED FOODS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Earnings per share has been calculated using the following weighed average
number of shares:
<TABLE>
<CAPTION>
1999 1998 1997
--------- --------- ----------
<S> <C> <C> <C>
Weighted average number of common shares
used for Basic EPS....................... 6,809,929 8,256,504 10,809,929
Effect of dilutive stock options........... -- -- 267,443
--------- --------- ----------
Weighted average number of common shares
and dilutive potential common stock used
in diluted EPS........................... 6,809,929 8,256,504 11,077,372
========= ========= ==========
</TABLE>
NOTE 7. LEASES
The Company leases certain property, including land used in farming
operations, and equipment under noncancellable leases which expire at various
dates to 2013. In most cases, management expects that in the normal course of
business, leases that expire will be renewed or replaced by other leases.
The future minimum lease payments required under operating leases that have
initial or remaining noncancellable terms in excess of one year were as follows:
<TABLE>
<CAPTION>
YEAR ENDING FEBRUARY 28 OR 29,
------------------------------
<S> <C>
2000........................................................ $ 2,315,000
2001........................................................ 2,274,000
2002........................................................ 1,587,000
2003........................................................ 1,242,000
2004........................................................ 811,000
After 2004.................................................. 3,883,000
-----------
Total minimum lease payments...................... $12,112,000
===========
</TABLE>
Rent expense under operating leases amounted to $3,808,000, $3,588,000 and
$3,552,000 for the years ended February 28, 1999, 1998 and 1997, respectively.
Certain leases contain renewal options and some have purchase options, and
generally provide that the Company shall pay for insurance, taxes and
maintenance.
NOTE 8. EMPLOYEE BENEFIT PLANS
PENSION PLANS
The Company had a defined contribution pension plan for hourly non-clerical
employees. Contributions to the plan were based upon hours worked during the
plan year and participants could make voluntary contributions to the plan of up
to 10% of their compensation (as defined). The Company paid all administrative
expenses related to the plan. Cost of the plan charged to operations for fiscal
1998 and 1997 amounted to approximately $499,000 and $463,000, respectively.
This plan was terminated on February 28, 1998.
F-14
<PAGE> 94
UNITED FOODS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Company also provided a defined contribution pension plan for certain
salaried employees. Company contributions to the plan were discretionary but
could not exceed 15% of participants' compensation. Participants could make
voluntary contributions up to 10% of their compensation (as defined) to the
plan. Cost of the plan charged to operations for fiscal 1998 and 1997 amounted
to approximately $74,000 and $94,000, respectively. This plan was terminated on
February 28, 1998.
On March 1, 1998, the Company established a defined contribution plan for
certain salaried and hourly employees. The plan provides for a dollar for dollar
match by the Company of participant contributions up to 3% of compensation (as
defined) and for participants to make additional voluntary contributions to the
plan of up to 22% of their compensation (as defined). Cost of the plan charged
to operations for fiscal 1999 amounted to approximately $514,000.
INCENTIVE PLANS
During 1997, the Company had an incentive compensation plan, now
terminated, which computed benefits in accordance with a formula which
incorporated net after tax profits, return on average assets and return on
equity. Costs of the plan charged to operations for fiscal 1997 was
approximately $241,000.
The Company adopted incentive compensation plans in fiscal 1998 which cover
certain key employees. Company benefits under the plans are discretionary. Costs
of the plans charged to operations for fiscal 1999 and 1998 were approximately
$350,000 and $277,000, respectively. The Company has also adopted an incentive
compensation plan for the Chairman of the Board which computes benefits in
accordance with a formula which incorporates earnings before interest, taxes,
depreciation and amortization. Cost of the plan charged to operations for fiscal
1999 and 1998 were approximately $438,000 and $280,000, respectively.
A portion of the benefits provided under these plans were credited to
deferred compensation accounts which earn an interest rate equal to that which
the Company pays on its revolving credit borrowings. Interest expense during
fiscal 1999, 1998 and 1997 includes approximately $41,000, $41,000 and $36,000,
respectively, related to these accounts.
OTHER BENEFIT PLANS
The Company also has a deferred compensation plan which permits directors
and certain management employees to defer portions of their compensation and
earn a guaranteed interest rate on the deferred amounts. The salaries, which
have been deferred since the inception of the plans, have been accrued and the
primary expense, other than salaries, related to this plan is interest on the
deferred amounts. Interest is credited to participant accounts at a rate equal
to that which the Company pays on its revolving credit borrowings. Interest
expense during fiscal 1999, 1998 and 1997 includes $182,000, $178,000 and
$139,500, respectively, related to these plans.
F-15
<PAGE> 95
UNITED FOODS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
In February 1997, the Company adopted a non-contributory, unqualified
supplemental retirement plan for management employees, whereby an amount
specified by the board of directors is held in a deferred compensation account
for each covered employee to be paid either in a lump sum or in approximate
equal installments over ten years at the date of such employee's retirement from
the Company. The board of directors specified that each management employee
currently holding the Company's incentive stock options be offered the
alternative of receiving deferred compensation under the plan in an amount equal
to $1 for each unexercised stock option currently held. Any employee electing to
so participate was required to agree not to exercise the related options through
the option expiration date in December 1997. Employees holding 829,384 options
elected to participate in this deferred compensation plan, resulting in a charge
to operations of $829,384 in 1997. Interest is credited to participant accounts
at a rate equal to that which the Company pays on its revolving credit
borrowings. Interest expense during fiscal 1999 and 1998 includes $72,000 and
$74,000, respectively, related to this plan.
The Company also has a non-contributory, unqualified supplemental
retirement plan for eight officers whereby a calculated amount is held in a
deferred salary account for each covered officer. The calculation provides an
amount sufficient to adjust the officers' annual United Foods, Inc.-sourced
after income tax earnings for 1993 and each year thereafter to the level it
would have been using 1992 federal tax rates, assuming standard deductions and
no other income. The deferred salary will be paid in approximate equal
installments over ten years upon the latter of such officer's date of disability
as defined, termination from the Company, or 65th birthday. The compensation
expense for this plan in fiscal 1999, 1998 and 1997 was $221,000, $264,000 and
$242,000, respectively. Interest is credited to participant accounts at a rate
equal to that which the Company pays on its revolving credit borrowings.
Interest expense during fiscal 1999, 1998 and 1997 includes $136,000, $121,000
and $88,000, respectively, related to this plan.
The Company has included $6,025,000 and $5,349,000 in long-term debt at
February 28, 1999 and 1998, respectively, to reflect its liability under these
unfunded plans.
NOTE 9. COMMITMENTS AND CONTINGENCIES
A. SALES AND MAJOR CUSTOMER
A large part of the Company's sales are made in the retail market and a
significant proportion of the retail grocery trade in the United States is
concentrated in the hands of national grocery chains. As such, a large part of
the Company's revenue is derived from sales to these chains. Sales to one of the
Company's customers totaled $27,036,000, $26,374,000 and $22,328,000,
representing 13.1%, 13.5% and 11.4% of total Company revenues in 1999, 1998 and
1997, respectively. Competition results in changes in the Company's customer
base over time and it is, therefore, possible that the Company may lose one or
more of its largest customers over time and, as a result, operations could be
materially impacted.
F-16
<PAGE> 96
UNITED FOODS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
B. PRODUCT PROCUREMENT AND AVAILABILITY
Crops have seasonal features and availability is subject to unpredictable
changes in growing conditions that are inherent in the agriculture industry. The
Company bears part of the growing risks and all of the processing and marketing
risks associated with its agricultural products. Weather abnormalities and other
adverse growing conditions sometimes result in substantial reductions in the
annual volumes processed in the Company's plants. When this occurs, the Company
may have to procure raw and processed vegetables from alternative sources at
higher than expected costs and the reduced volume of vegetables processed in the
Company's plants results in increased unit costs. When growing conditions result
in yields that exceed expectations, the Company will generally pack only volumes
required by anticipated demand through the next pack season. Additionally,
selling prices are impacted by industry-wide production and inventory levels.
Bumper crops and resulting increased inventory levels tend to decrease average
selling prices, while crop shortages typically do not result in increased
selling prices.
C. LEGAL PROCEEDINGS
There are several lawsuits against the Company on a variety of matters.
While it is not feasible to predict the ultimate outcome of these matters with
certainty, based on evaluations of the facts and on advice of counsel handling
the defense of these matters, the Company does not believe their outcome will,
in the aggregate, have a material adverse effect on its financial position or
its results of operations.
During March 1999, a complaint was filed against the Company and its
directors by a stockholder of the Company in a Delaware Chancery Court. The
complaint seeks class action status and requests injunctive and other relief
with respect to a pending proposal by the Jim Tankersley Family to acquire the
remaining shares of the Company's common stock that are not owned by them for
$3.00 per share in cash. The Company believes the complaint to be without merit
(Note 4).
D. SUPPLY AGREEMENTS
The Company has entered into multi-year reciprocal supply agreements with
other food processing companies. Through these agreements the Company procures
food products to meet its production and inventory requirements. Also, the
Company sells food products processed at the Company's Tennessee and California
facilities to the other food processing companies.
E. WORKERS' COMPENSATION
The Company is self-insured for workers' compensation claims up to $300,000
each. Provisions for expected future payments are accrued based on the Company's
estimate of its aggregate liability for all open claims. The Company has secured
its liability for potential workers' compensation claims in the states where
they are self-insured by obtaining bonds totaling approximately $2,700,000.
F-17
<PAGE> 97
UNITED FOODS, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
NOTE 10. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
For financial instruments bearing a variable interest rate, it is presumed
that recorded book values are reasonable estimates of fair value. For all other
financial instruments, the following methods and assumptions are used to
estimate fair values:
Cash and cash equivalents, receivables, accounts payable and
accruals -- Recorded book values are a reasonable estimate of fair value.
Long-term debt -- Current market values for debt instruments with fixed
interest rates are estimated based on borrowing rates currently available to the
Company for loans with similar terms. At February 28, 1999, the estimated fair
value of debt instruments with fixed interest rates was approximately
$45,757,000 as compared with the carrying value of such instruments of
$44,773,000.
The remaining assets and liabilities of the Company are not considered
financial instruments and have not been valued differently than is customary
under historical cost accounting.
NOTE 11. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28, 1999: 1ST 2ND 3RD 4TH
----------------------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues.......................... $49,934,000 $45,888,000 $55,525,000 $55,413,000
Gross profit...................... 9,389,000 7,940,000 10,845,000 11,178,000
Income (loss) from operations
before taxes on income
(benefit)....................... 401,000 (775,000) 1,074,000 226,000
Net income (loss)................. 247,000 (477,000) 661,000 89,000
Basic and diluted earnings (loss)
per common share................ .04 (.07) .10 .01
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28, 1998:
-----------------------------
<S> <C> <C> <C> <C>
Revenues.......................... $46,963,000 $42,579,000 $51,407,000 $54,138,000
Gross profit...................... 8,878,000 6,873,000 9,429,000 11,272,000
Income (loss) before taxes on
income (benefit)................ 650,000 (1,542,000) 176,000 1,470,000
Net income (loss)................. 400,000 (949,000) 108,000 901,000
Basic and diluted earnings (loss)
per common share................ .04 (.11) .02 .13
</TABLE>
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<PAGE> 98
APPENDIX A
AGREEMENT AND PLAN OF MERGER
DATED AS OF
MAY 14, 1999
AMONG
UNITED FOODS, INC.,
PICTSWEET LLC,
AND
UF ACQUISITION CORP.
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<PAGE> 99
TABLE OF CONTENTS
<TABLE>
<S> <C>
ARTICLE 1 The Merger....................................... A-5
Section 1.1 Company Actions............................... A-5
Section 1.2 The Merger.................................... A-5
Section 1.3 Effective Time................................ A-5
Section 1.4 Closing....................................... A-6
Section 1.5 Directors and Officers of Surviving
Corporation............................................ A-6
Section 1.6 Certificate of Incorporation.................. A-6
Section 1.7 Bylaws........................................ A-6
ARTICLE 2 Conversion of Securities......................... A-6
Section 2.1 Conversion of Capital Stock................... A-6
(a) Purchaser Common Stock............................. A-6
(b) No Effect on Parent-Owned Stock.................... A-6
(c) Cancellation of Treasury Stock..................... A-6
(d) Conversion of Shares and Dissenting Shares......... A-6
Section 2.2 Surrender of Certificates..................... A-7
(a) Paying Agent....................................... A-7
(b) Surrender Procedures............................... A-7
(c) Transfer Books; No Further Ownership Rights in the
Shares................................................ A-8
(d) Termination of Fund; No Liability.................. A-8
(e) Lost, Stolen or Destroyed Certificates............. A-8
Section 2.3 Dissenting Shares............................. A-8
Section 2.4. Withholding Taxes............................ A-9
ARTICLE 3 Representations and Warranties of Company........ A-9
Section 3.1 Corporate Existence and Power................. A-9
Section 3.2 Corporate Authorization....................... A-9
Section 3.3 Governmental Authorization.................... A-10
Section 3.4 Non-Contravention............................. A-10
Section 3.5 Capitalization................................ A-10
Section 3.6 Company Subsidiaries and Other Equity
Interests.............................................. A-11
Section 3.7 Disclosure Documents.......................... A-11
ARTICLE 4 Representations and Warranties of Parent and
Purchaser................................................. A-11
Section 4.1 Corporate Existence and Power................. A-11
Section 4.2 Capitalization................................ A-11
Section 4.3 Corporate Authorization....................... A-12
Section 4.4 Governmental Authorization.................... A-12
Section 4.5 Non-Contravention............................. A-12
Section 4.6 Disclosure Documents.......................... A-12
Section 4.7 Finders' and Bankers' Fees.................... A-12
Section 4.8 Solvency Matters.............................. A-12
Section 4.9 Litigation.................................... A-13
Section 4.10 Other Agreements............................. A-13
Section 4.11 No Resale.................................... A-13
ARTICLE 5 Covenants........................................ A-13
Section 5.1 Interim Operations of Company................. A-13
Section 5.2 Access to Information......................... A-15
Section 5.3 Other Potential Bidders....................... A-15
Section 5.4 Notices of Certain Events..................... A-15
Section 5.5 Voting of Shares.............................. A-16
</TABLE>
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<PAGE> 100
<TABLE>
<S> <C>
Section 5.6 Director and Officer Liability................ A-16
Section 5.7 Best Efforts.................................. A-16
Section 5.8 Certain Filings............................... A-16
Section 5.9 Public Announcements.......................... A-16
Section 5.10 Financing.................................... A-16
Section 5.11 Stockholders' Meeting........................ A-17
Section 5.12 Further Assurances........................... A-18
Section 5.13 Resignations of Directors.................... A-18
ARTICLE 6 Conditions to the Merger......................... A-18
Section 6.1 Conditions to the Obligations of Each Party... A-18
Section 6.2 Additional Conditions to the Obligations of
Parent and Purchaser................................... A-19
Section 6.3 Additional Conditions to the Obligations of
Company................................................ A-20
ARTICLE 7 Termination...................................... A-21
Section 7.1 Termination................................... A-21
Section 7.2 Effect of Termination......................... A-21
ARTICLE 8 Miscellaneous.................................... A-21
Section 8.1 Definitions................................... A-21
"Affiliate"............................................ A-21
"Agreement"............................................ A-22
"Business Combinations Act"............................ A-22
"Certificate of Merger"................................ A-22
"Class A Common Stock"................................. A-22
"Class B Common Stock"................................. A-22
"Code"................................................. A-22
"Company Common Stock"................................. A-22
"DGCL"................................................. A-22
"Exchange Act"......................................... A-22
"Expenses"............................................. A-22
"GAAP"................................................. A-22
"Governmental Authority"............................... A-22
"Law".................................................. A-22
"Lien"................................................. A-22
"Material Adverse Effect".............................. A-22
"Order"................................................ A-22
"Permitted Financing Terms"............................ A-23
"Person"............................................... A-23
"Preferred Stock"...................................... A-23
"Purchaser Common Stock"............................... A-23
"SEC".................................................. A-23
"Special Committee".................................... A-23
"Surviving Corporation"................................ A-23
"Jim Tankersley Family"................................ A-23
"Tankersley Group"..................................... A-23
Section 8.2 Notices....................................... A-24
Section 8.3 Survival of Representations and Warranties.... A-25
Section 8.4 Enforcement of Agreement...................... A-25
Section 8.5 Amendments; Written Waivers................... A-25
Section 8.6 Expenses...................................... A-25
Section 8.7 Successors and Assigns........................ A-26
Section 8.8 Governing Law................................. A-26
</TABLE>
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<PAGE> 101
<TABLE>
<S> <C>
Section 8.9 Severability.................................. A-26
Section 8.10 Captions..................................... A-26
Section 8.11 Interpretations.............................. A-26
Section 8.12 Counterparts; Effectiveness.................. A-26
Section 8.13 Gender and Number............................ A-26
</TABLE>
A-4
<PAGE> 102
AGREEMENT AND PLAN OF MERGER
THIS AGREEMENT AND PLAN OF MERGER (this "Agreement") is made as of May 14,
1999, by and among UNITED FOODS, INC., a Delaware corporation ("Company"),
PICTSWEET LLC, a Delaware limited liability company ("Parent"), and UF
ACQUISITION CORP., a Delaware corporation and a wholly owned subsidiary of
Parent ("Purchaser").
RECITALS:
A. The Board of Directors of the Company has approved and deemed it fair,
advisable and in the best interests of the Company's Stockholders other than the
Jim Tankersley Family, Parent, Purchaser or any of their affiliates (the "Public
Stockholders") to adopt and approve this Agreement and the transactions
contemplated hereby, including the Merger (collectively, the "Transactions").
B. The Board of Directors of the Company has determined to recommend the
Agreement and the Transactions for approval and adoption by Company's
stockholders ("Stockholders") at a duly called meeting of the Stockholders.
C. The Board of Directors of Purchaser, and the Board of Directors of
Parent, have approved, and deem it fair, advisable and in the best interests of
their respective stockholders and members, to consummate the acquisition of
Company by Parent upon the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants, agreements,
representations and warranties contained herein, the parties hereto agree as
follows:
ARTICLE 1
THE MERGER
Section 1.1 COMPANY ACTIONS. The recommendation referred to in Recital B
may be withdrawn, modified or amended by the Board of Directors of Company if
the Board deems such withdrawal, modification or amendment necessary in light of
its fiduciary duties to Stockholders after consultation with counsel and the
Special Committee and its counsel.
Section 1.2 THE MERGER. Subject to the terms and conditions of this
Agreement, and in accordance with the DGCL, at the Effective Time, (a) Purchaser
shall be merged with and into Company (the "Merger") and the separate corporate
existence of Purchaser shall thereupon cease; and (b) Company shall be the
surviving corporation in the Merger (the "Surviving Corporation") and shall
continue to be governed by the laws of the State of Delaware. The Merger shall
have the effects specified in the DGCL and as provided herein. Without limiting
the foregoing, and subject thereto, at the Effective Time, all of the property,
rights, privileges, powers and franchises of Company and Purchaser shall vest in
Surviving Corporation, and all debts, liabilities, and duties of Company and
Purchaser shall become debts, liabilities and duties of Surviving Corporation.
Section 1.3 EFFECTIVE TIME. Subject to the terms and conditions of this
Agreement, as soon as practicable after satisfaction or waiver of the conditions
set forth in Article 6, Parent, Purchaser and Company will cause a Certificate
of Merger to be executed and
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filed on the Closing Date (or on such other date as Parent and Company may
agree) with the Secretary of State of Delaware as provided in the DGCL. The
Merger shall become effective at the time when the Certificate of Merger is duly
filed with the Secretary of State of Delaware, or such later time as is agreed
upon by the parties and specified in the Certificate of Merger (such time, the
"Effective Time").
Section 1.4 CLOSING. The closing of the Merger (the "Closing") shall take
place at 10:00 a.m. on a date to be specified by the parties, which shall be no
later than the fifth business day after satisfaction or waiver of all of the
conditions set forth in Article 6 hereof (the "Closing Date"), at the corporate
offices of Company, unless another date or place is agreed to in writing by the
parties hereto.
Section 1.5 DIRECTORS AND OFFICERS OF SURVIVING CORPORATION. The
directors and the officers of Company at the Effective Time shall, from and
after the Effective Time, be the directors and officers, respectively, of
Surviving Corporation, until their successors shall have been duly elected or
appointed or qualified or until their earlier death, resignation (including that
provided herein), or removal in accordance with applicable law, the Certificate
of Incorporation and the Bylaws of Company.
Section 1.6 CERTIFICATE OF INCORPORATION. The Certificate of
Incorporation of Company in effect at the Effective Time shall be the
Certificate of Incorporation of Surviving Corporation, until amended, in
accordance with applicable law.
Section 1.7 BYLAWS. The Bylaws of Company in effect at the Effective Time
shall be the Bylaws of Surviving Corporation, until amended, in accordance with
applicable law.
ARTICLE 2
CONVERSION OF SECURITIES
Section 2.1 CONVERSION OF CAPITAL STOCK. At and as of the Effective Time,
by virtue of the Merger and without any action on the part of the holders of any
shares of Company Common Stock (including shares of Class A Common Stock and
Class B Common Stock, and shares of the Company's Class A Common Stock issuable
as a result of any conversion of Class B Common Stock into Class A Common Stock,
the "Shares") or holders of any shares of Purchaser Common Stock:
(a) Purchaser Common Stock. Each issued and outstanding share of
Purchaser Common Stock (including all Shares that are owned by Parent
("Parent-Owned Shares")) shall be converted into and become one fully paid
and non-assessable share of Class B Common Stock of Surviving Corporation.
(b) No Effect on Parent-Owned Stock. All Parent-Owned Shares shall
continue to remain issued and outstanding and shall not be converted into
the right to receive the Merger Consideration.
(c) Cancellation of Treasury Stock. All Shares that are owned by the
Company as treasury stock immediately prior to the Effective Time
("Treasury Shares") shall be canceled and retired and shall cease to exist
and no consideration shall be delivered in exchange therefor.
(d) Conversion of Shares and Dissenting Shares. Each issued and
outstanding Share (other than Parent-Owned Shares, the Treasury Shares, and
the Dissenting
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Shares) shall be converted into the right to receive $3.50 in cash, payable
by Surviving Corporation to the holder thereof, without interest (the
"Merger Consideration"), upon surrender of the Certificate formerly
representing such Share in the manner provided in Section 2.2. Subject to
and in accordance with Section 2.3, each issued and outstanding Dissenting
Share shall be converted into the right to receive payment of the fair
value of such Dissenting Share as determined in accordance with the DGCL,
from Surviving Corporation to the holder thereof. From and after the
Effective Time, all of such Shares and Dissenting Shares shall no longer be
outstanding and shall automatically be canceled and retired and shall cease
to exist in all respects, and each holder of a Certificate formerly
representing any such Share or Dissenting Share shall cease to have any
rights with respect thereto, except for the rights to receive the foregoing
payments.
Section 2.2 SURRENDER OF CERTIFICATES.
(a) Paying Agent. At or prior to the Effective Time, Parent shall
designate a bank reasonably acceptable to Company to act as agent for the
holders of the Shares in connection with the Merger (the "Paying Agent"),
and Parent shall, or Parent shall cause Surviving Corporation to, make
available to the Paying Agent funds sufficient in the aggregate for the
Paying Agent to make full payment of the Merger Consideration to the
holders of the Shares entitled to payment of the Merger Consideration
pursuant to Section 2.1(d). Such funds shall be invested by the Paying
Agent as directed by Parent or Surviving Corporation, and interest thereon
shall be paid to Surviving Corporation.
(b) Surrender Procedures. As used herein, the term "Certificate"
means a stock certificate which immediately prior to the Effective Time
represented outstanding Shares. As soon as reasonably practicable after the
Effective Time, the Paying Agent shall mail to each holder of record of a
Certificate formerly representing Shares that were converted pursuant to
Section 2.1(d) into the right to receive the Merger Consideration: (i) a
letter of transmittal (which shall specify that delivery shall be effected,
and risk of loss and title to the Certificates shall pass, only upon
delivery of the Certificates to the Paying Agent and shall be in such form
and have such other provisions as Parent and Company may reasonably
specify), and (ii) instructions for use in effecting the surrender of the
Certificates in exchange for payment of the Merger Consideration. Upon
surrender of a Certificate for cancellation to the Paying Agent, together
with such letter of transmittal, duly executed, the holder of such
Certificate shall be entitled to receive in exchange therefor the Merger
Consideration for each Share formerly represented by such Certificate and
the Certificate so surrendered shall forthwith be canceled. No interest
will be paid or accrued to the holder of the Certificate with respect to
the cash payable upon the surrender of the Certificate. If payment of the
Merger Consideration is to be made to a Person other than the Person in
whose name the surrendered Certificate is registered, it shall be a
condition of payment that the Certificate so surrendered shall be properly
endorsed or shall be otherwise in proper form for transfer and that the
Person requesting such payment shall have paid any transfer and other taxes
required by reason of the payment of the Merger Consideration to a Person
other than the registered holder of the Certificate surrendered or shall
have established to the satisfaction of Surviving Corporation that such tax
either has been paid or is not applicable. Until surrendered as
contemplated by this Section 2.2, each Certificate shall be deemed at any
time after the Effective Time to represent only the right to
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<PAGE> 105
receive the Merger Consideration in cash as contemplated by this Section
2.2. The right of any Stockholder to receive the Merger Consideration shall
be subject to Section 2.4.
(c) Transfer Books; No Further Ownership Rights in the Shares. At the
Effective Time, the stock transfer books of Company shall be closed and
thereafter there shall be no further registration of transfers of the
Shares on the records of Company (except for those owned by Parent or
Purchaser). From and after the Effective Time, the holders of Certificates
evidencing ownership of the Shares (other than Parent-Owned Shares)
outstanding immediately prior to the Effective Time shall cease to have any
rights with respect to such Shares, except as otherwise provided for herein
or by applicable Law.
(d) Termination of Fund; No Liability. At any time following twelve
months after the Effective Time, Surviving Corporation shall be entitled to
require the Paying Agent to deliver to it any funds (including any interest
received with respect thereto) which had been made available to the Paying
Agent and which have not been disbursed to holders of Certificates, and
thereafter such holders shall be entitled to look to Surviving Corporation
(subject to abandoned property, escheat or other similar Laws) only as
general creditors thereof, with respect to the Merger Consideration payable
upon due surrender of their Certificates, without any interest thereon.
Notwithstanding the foregoing, neither Surviving Corporation nor the Paying
Agent shall be liable to any holder of a Certificate for Merger
Consideration delivered to a public official pursuant to any applicable
abandoned property, escheat or similar Law. Subject to such Laws (i.e., the
Surviving Corporation shall be obligated to pay the Merger consideration
for particular Shares only once), even after the delivery by the Paying
Agent to the Surviving Corporation of any funds not previously disbursed to
Stockholders, the Surviving Corporation shall continue to be obligated to
pay the Merger Consideration to any Stockholder surrendering a Share
certificate, and the certificate shall then be canceled.
(e) Lost, Stolen or Destroyed Certificates. In the event any
Certificate for Shares (other than Dissenting Shares and Parent-Owned
Shares) shall have been lost, stolen or destroyed, upon the making of an
affidavit of that fact by the Person claiming such Certificate to be lost,
stolen or destroyed (in form and substance satisfactory to Parent) and, if
required by Parent, the posting by such Person of a bond (in form,
substance and amount satisfactory to Parent) as indemnity against any claim
that may be made against it with respect to such Certificate, the Paying
Agent will issue in exchange for such lost, stolen or destroyed Certificate
the Merger Consideration pursuant to Section 2.2(b).
Section 2.3 DISSENTING SHARES. Notwithstanding any other provision of
this Agreement to the contrary, Shares held by a holder who has not voted such
Shares in favor of the Merger and with respect to which appraisal rights shall
have been exercised and perfected in accordance with Section 262 of the DGCL and
as of the Effective Time not withdrawn ("Dissenting Shares"), shall be converted
at and as of the Effective Time into the right to receive payment from Surviving
Corporation of the fair value of such Shares as determined in accordance with
Section 262 of the DGCL, unless and until the holder of such Shares withdraws
his demand for such appraisal or becomes ineligible for such appraisal (through
failure to perfect or otherwise), in which case, such right to receive payment
shall then be converted, as of the Effective Time, into the right to receive
payment from Surviving Corporation of the Merger Consideration for such Shares,
without
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<PAGE> 106
interest. Any Dissenting Stockholder who has withdrawn his demand for appraisal
shall be treated in the same manner as a non-dissenting Stockholder and have the
same rights under Section 2.2 of this Agreement. Company shall give Parent (i)
prompt notice of any demands for appraisal of Shares received by Company and
(ii) the opportunity to participate in and direct all negotiations and
proceedings with respect to any such demands. Company shall not, without the
prior written consent of Parent, voluntarily make any payment with respect to,
settle or offer to settle, any such demands.
Section 2.4. WITHHOLDING TAXES. Surviving Corporation shall be entitled
to deduct and withhold from the consideration otherwise payable to a holder of
Shares pursuant to the Merger, such amounts as are required to be withheld under
the Code, or any applicable Laws or Orders. To the extent that amounts are so
withheld by Surviving Corporation, such withheld amounts shall be treated for
all purposes of this Agreement as having been paid to the holder of the Shares
in respect of which such deduction and withholding was made by Surviving
Corporation.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF COMPANY
Company represents and warrants to Parent and Purchaser that:
Section 3.1 CORPORATE EXISTENCE AND POWER. Company is a corporation
duly incorporated, validly existing and in good standing under the Laws of
the state of its incorporation, and has the requisite corporate power and
authority necessary to own, operate and lease its properties and assets,
and to carry on its business as now being conducted. Company is duly
qualified as a foreign entity to do business, and is in good standing, in
each jurisdiction where the character of its properties owned, operated or
leased, or the nature of its activities, makes such qualification necessary
except for any such failure which, taken together with any other such
failures, would not reasonably be expected to have a Material Adverse
Effect. A correct and complete copy of the Certificate of Incorporation and
the Bylaws of Company, each as amended through the date hereof, have been
made available by Company to Parent.
Section 3.2 CORPORATE AUTHORIZATION. The execution, delivery and
performance by Company of this Agreement and the consummation by Company of
the Transactions: (i) are within Company's corporate powers, and (ii)
except for the Required Stockholder Approval, have been deemed advisable
and have been duly authorized by all necessary corporate action on behalf
of Company. This Agreement and the Transactions have been duly approved by
the Board of Directors of Company, and at least three-quarters of such
Board consisted of continuing directors (as defined in the Certificate of
Incorporation of Company), and accordingly the provisions of Article
FOURTEENTH, Section A of the Certificate of Incorporation of the Company
are not applicable to this Agreement or the Transactions. Company is not
governed by, and this Agreement and the Transactions are not subject to,
the restrictions on business combinations set forth in the Business
Combinations Act. This Agreement constitutes a legal, valid and binding
obligation of Company, enforceable against it in accordance with its terms,
subject to the effect of bankruptcy, insolvency, reorganization and other
similar laws relating to creditors' rights generally and to general
principles of equity.
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Section 3.3 GOVERNMENTAL AUTHORIZATION. The execution, delivery and
performance by Company of this Agreement and the consummation of the
Transactions by Company require no action by or in respect of, or filing
with, any Governmental Authority other than (i) the filing of Certificate
of Merger in accordance with the DGCL, and (ii) compliance with applicable
requirements of the Exchange Act and of applicable state securities laws.
Section 3.4 NON-CONTRAVENTION. The execution, delivery and
performance by Company of this Agreement and the consummation by Company of
the Transactions do not and will not (i) contravene or conflict with the
Certificate of Incorporation or Bylaws of Company, and (ii) assuming
compliance with the matters referred to in Section 3.3 and procurement of
the Required Stockholder Approval, contravene or conflict with or
constitute a violation of any provision of any Law or Order binding upon or
applicable to Company or its respective properties or assets, and (iii)
except as set forth in EXHIBIT 3.4, do not constitute a breach, violation
or default of or under, or give rise to a right to terminate or accelerate,
or require a consent under, or create any lien, encumbrance or restriction
upon any assets or properties of Company pursuant to, any document,
instrument, certificate, agreement, or other arrangement, to which Company
is a party, or by which any of its respective properties or assets are
bound, which would reasonably be expected to have a Material Adverse
Effect.
Section 3.5 CAPITALIZATION. The authorized capital stock of Company
consists of 18,000,000 authorized Shares of Company Common Stock (of which
12,000,000 are Class A Common Stock and 6,000,000 are Class B Common
Stock), and 10,000,000 authorized shares of Preferred Stock. With respect
to Company, (a) 2,617,243 Shares of Class A Common Stock were issued and
outstanding as of May 4, 1999, (b) 4,192,686 Shares of Class B Common Stock
were issued and outstanding as of May 4, 1999, (c) no Shares of Company
Common Stock are held in the treasury of Company, (d) no Shares of Company
Common Stock are reserved for future issuance pursuant to any stock
options, stock incentive, or other stock arrangements or plans, (e) no
shares of Preferred Stock are issued and outstanding, (f) no shares of
Preferred Stock are held in the treasury of Company, and (g) no shares of
Preferred Stock are reserved for future issuance pursuant to any stock
options, stock incentive, or other stock arrangements or plans. All
outstanding Shares of Company Common Stock are duly authorized, validly
issued, fully paid and nonassessable. There are no bonds, debentures, notes
or other indebtedness having general voting rights (or convertible into
securities having such rights) ("Voting Debt") of Company outstanding.
Except as set forth above in this Section (and except for any Shares of
Class B Common Stock which may have been converted since May 4, 1999 into
to an equal number of Shares of Class A Common Stock in accordance with the
Certificate of Incorporation of the Company), there are (i) no shares of
capital stock or other voting securities of Company authorized, issued or
outstanding, (ii) no existing options, warrants, calls, preemptive rights,
subscriptions or other rights, agreements, arrangements or commitments of
any character relating to the issued or unissued capital stock of Company,
or obligating Company to issue, transfer or sell or cause to be issued,
transferred or sold any shares of capital stock or Voting Debt of, or other
equity interest in, Company or securities convertible into or exchangeable
for such shares or equity interests, or obligating Company to grant, extend
or enter into any such option, warrant, call, subscription or other right,
agreement, arrangement or commitment, and (iii) no outstanding contractual
obligations of Company to repurchase, redeem or otherwise acquire any
Shares, or the
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capital stock of Company, or to provide funds to make any investment (in
the form of a loan, capital contribution or otherwise) in any other Person.
Section 3.6 COMPANY SUBSIDIARIES AND OTHER EQUITY INTERESTS. Company
does not own any material equity interest in any corporation or other
Person.
Section 3.7 DISCLOSURE DOCUMENTS.
(a) Each document required to be filed by Company with the SEC in
connection with the Transactions contemplated by this Agreement (the
"Company Disclosure Documents"), including, without limitation the Proxy
Statement, will, when filed, comply as to form in all material respects
with the applicable requirements of the Exchange Act.
(b) At the time the Proxy Statement or any amendment or supplement
thereto is first mailed to Stockholders, at the time such Stockholders
vote on adoption of this Agreement, and at the Effective Time, the Proxy
Statement, as supplemented or amended, if applicable, will not contain
any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in the
light of the circumstances under which they were made, not misleading.
At the time of the filing of any Company Disclosure Document other than
the Proxy Statement and at the time of any distribution thereof, such
Company Disclosure Document will not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to
make the statements made therein, in the light of the circumstances
under which they were made, not misleading.
(c) The representations and warranties contained in this Section
3.7 will not apply to statements or omissions included in any Company
Disclosure Documents (including, without limitation, the Proxy
Statement) based upon information furnished to Company by Parent or
Purchaser specifically for use therein.
ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF PARENT AND PURCHASER
Parent and Purchaser, jointly and severally, represent and warrant to
Company that:
Section 4.1 CORPORATE EXISTENCE AND POWER. Parent is a limited
liability company, and Purchaser is a corporation, and each is duly
organized, validly existing and in good standing under the laws of the
State of Delaware, and each has all limited liability company or corporate
powers and all governmental licenses, authorizations, consents and
approvals required to consummate the transactions contemplated by this
Agreement. Since the date of its formation or incorporation, neither Parent
nor Purchaser has engaged in any activities other than in connection with
or as contemplated by this Agreement.
Section 4.2 CAPITALIZATION. The authorized capital stock of
Purchaser consists of 10,000 shares of common stock, par value $1.00 per
share, of which one hundred (100) shares are outstanding as of the
Effective Time and are owned, beneficially and of record, by Parent. All of
the issued and outstanding shares of capital stock of Purchaser are validly
issued, fully paid, non-assessable and free of preemptive rights
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and all liens. All of the members' interests in Parent are owned by the Jim
Tankersley Family.
Section 4.3 CORPORATE AUTHORIZATION. The execution, delivery and
performance by Parent and Purchaser of this Agreement and the consummation
by Parent and Purchaser of the Transactions contemplated hereby are within
the respective corporate (or limited liability company) powers of Parent
and Purchaser, and have been duly authorized respectively by all necessary
corporate (or limited liability company) action. This Agreement constitutes
a legal, valid and binding agreement of Parent and Purchaser, enforceable
against each of them in accordance with its terms.
Section 4.4 GOVERNMENTAL AUTHORIZATION. The execution, delivery and
performance by Parent and Purchaser of this Agreement and the consummation
by Parent and Purchaser of the Transactions contemplated by this Agreement
require no action by or in respect of, or filing with, any Governmental
Authority other than (i) the filing of Certificate of Merger in accordance
with the DGCL, and (ii) compliance with any applicable requirements of the
Exchange Act.
Section 4.5 NON-CONTRAVENTION. The execution, delivery and
performance by Parent and Purchaser of this Agreement and the consummation
by Parent and Purchaser of the Transactions contemplated hereby do not and
will not (i) contravene or conflict with the respective certificates of
formation, certificates of incorporation, bylaws, operating agreements, or
other organizational documents of Parent or Purchaser, (ii) assuming
compliance with the matters referred to in Section 4.3, contravene or
conflict with or constitute a violation of any provision of any Law or
Order binding upon or applicable to Parent or Purchaser or any of their
respective properties or assets, and (iii) do not constitute a breach,
violation or default of or under, or give rise to a right to terminate or
accelerate, or require a consent under, or create any lien, encumbrance or
restriction upon any of the respective assets or properties of Parent or
Purchaser pursuant to, any document, instrument, certificate, agreement, or
other arrangement, to which Parent or Purchaser is a party, or by which any
of their respective properties or assets are bound.
Section 4.6 DISCLOSURE DOCUMENTS. The information with respect to
Parent, Purchaser and their Affiliates that is filed with the SEC or is
furnished to Company for use in any Company Disclosure Document will not
contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein, in
the light of the circumstances under which they were made, not misleading
(i) in the case of the Proxy Statement at the time the Proxy Statement or
any amendment or supplement thereto is first mailed to Stockholders, at the
time Stockholders vote on adoption of this Agreement and at the Effective
Time, and (ii) in the case of any Company Disclosure Document other than
the Proxy Statement, at the time of the filing thereof and at the time of
any distribution thereof.
Section 4.7 FINDERS' AND BANKERS' FEES. There is no investment
banker, broker, finder or other intermediary which has been retained by or
is authorized to act on behalf of Parent or Purchaser or their affiliates
who might be entitled to any fee or commission from Parent and/or Purchaser
or their affiliates in connection with the Transactions or the financing
thereof.
Section 4.8 SOLVENCY MATTERS. Upon consummation of the Transactions,
(i) the fair value of Surviving Corporation's assets will exceed Surviving
Corporation's
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stated liabilities and identified contingent liabilities, (ii) Surviving
Corporation will be able to pay its debts as they become absolute and
become due in the usual course of business, and (iii) the capital remaining
in Surviving Corporation after consummation of the Transactions will not be
unreasonably small for the business in which Surviving Corporation is
engaged and is proposed to be engaged following consummation of the
Transactions.
Section 4.9 LITIGATION. Except as set forth on EXHIBIT 4.9, there
are no claims, actions, suits, proceedings or investigations pending or
threatened, against Parent or Purchaser or their affiliates, before any
Governmental Authority, that seek to prevent or delay the performance of
this Agreement or the Transaction.
Section 4.10 OTHER AGREEMENTS. Neither Parent nor Purchaser nor any
of their affiliates has any agreement or understanding with any other
Stockholder of Company regarding the payment of any consideration of any
kind to or for the benefit of any Stockholder in connection with the
Transactions, except pursuant to the terms of this Agreement.
Section 4.11 NO RESALE. Parent, Purchaser and their Affiliates are
acquiring the Shares without any intent to resell the Shares or to sell all
or substantially all of the assets of Surviving Corporation, and neither
Parent, Purchaser nor any Affiliate of Parent or Purchaser, has received an
offer to purchase any or all of the Shares or all or substantially all of
the assets of Surviving Corporation. The members of the Jim Tankersley
Family will not sell their Shares to a third party prior to, or tender
their Shares in, the Transactions; rather, all of the Shares held by the
Jim Tankersley Family will be transferred to and held by Parent as of the
Effective Date.
ARTICLE 5
COVENANTS
Section 5.1 INTERIM OPERATIONS OF COMPANY. From the date hereof until the
Effective Time, except as agreed to in writing by Parent, Company shall conduct
its business in the ordinary course consistent with past practice and shall use
all commercially reasonable efforts to preserve intact its business
organizations and relationships with third parties and to keep available the
services of its present officers and employees. Without limiting the generality
of the foregoing, from the date hereof until the Effective Time, without the
prior written consent of Parent:
(a) Company shall not, directly or indirectly: (i) issue, sell,
transfer or pledge or agree to sell, transfer or pledge any treasury stock
of Company or any capital stock or equity interests in any Person owned by
it; (ii) amend its Certificate of Incorporation or Bylaws or similar
organizational documents; or (iii) split, combine or reclassify (except for
the issuance of Class A Shares upon conversion of Class B Shares in
accordance with the Certificate of Incorporation) the outstanding Shares or
Preferred Stock;
(b) Company shall not: (i) declare, set aside or pay any dividend or
other distribution payable in cash, stock or property with respect to its
capital stock; (ii) issue, sell, pledge, dispose of or encumber any
additional shares of, or securities convertible into or exchangeable for,
or options, warrants, calls, commitments or rights of any kind to acquire
any shares of, capital stock of any class of Company (except
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for issuance of Class A Shares resulting from conversions of Class B Shares
into Class A Shares in accordance with the Certificate of Incorporation);
(iii) transfer, lease, license, sell, mortgage, pledge, dispose of, or
encumber any assets other than in the ordinary and usual course of business
and consistent with past practice; (iv) except for the Financing pursuant
to the Permitted Financing Terms, incur or modify any indebtedness or other
liability, other than in the ordinary and usual course of business and
consistent with past practice; or (v) redeem, purchase or otherwise acquire
directly or indirectly any of its capital stock;
(c) Company shall not, other than in the ordinary course of
business: (i) grant any increase in the compensation payable or to become
payable by Company to any of its executive officers; or (ii) adopt any new,
or amend or otherwise increase, or accelerate the payment or vesting of the
amounts payable or to become payable under, any existing bonus, incentive
compensation, deferred compensation, severance, profit sharing, stock
option, stock purchase, insurance, pension, retirement or other employee
benefit plan, agreement or arrangement; or (iii) enter into any employment
or severance agreement with or, except in accordance with the existing
written policies of Company, grant any severance or termination pay to any
officer, director or employee of Company;
(d) Company shall not permit any insurance policy naming it as a
beneficiary or a loss payable payee to be canceled or terminated without
notice to Parent, except in the ordinary course of business and consistent
with past practice;
(e) Company shall not enter into any contract or transaction relating
to the purchase of assets other than in the ordinary course of business and
consistent with prior practice;
(f) Company shall not, other than in the ordinary course of business:
(i) change any of the accounting methods used by it unless required by
GAAP; (ii) make any material tax election; (iii) change any material tax
election already made; (iv) adopt any material tax accounting method; (v)
change any material tax accounting method unless required by GAAP; or (vi)
enter into any closing agreement, settle any tax claim or assessment or
consent to any tax claim or assessment or any waiver of the statute of
limitations for any such claim or assessment;
(g) except for the Financing pursuant to the Permitted Financing Terms
and other than in the ordinary course of business, Company shall not: (i)
incur or assume any long-term debt; (ii) except in the ordinary course of
business and consistent with past practice, incur or assume any short-term
indebtedness; (iii) assume, guarantee, endorse or otherwise become liable
or responsible (whether directly, contingently or otherwise) for the
obligations of any other Person; (iv) make any loans, advances or capital
contributions to, or investment in, any other Person (other than customary
loans or advances to employees in accordance with past practice); or (v)
enter into any material commitment or transaction (including, but not
limited to, any borrowing, capital expenditure or purchase, sale or lease
of assets);
(h) Company shall not: (i) settle or compromise any material claim,
lawsuit, liability or obligation; or (ii) pay, discharge or satisfy any
claims, liabilities or obligations (absolute, accrued, asserted or
unasserted, contingent or otherwise), other than the payment, discharge or
satisfaction of any such claims, liabilities or obligation, (x) to the
extent reflected or reserved against in, or contemplated by, the
consolidated
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financial statements (or the notes thereto) of Company on a consolidated
basis, (y) incurred in the ordinary course of business and consistent with
past practice or (z) which are legally required to be paid, discharged or
satisfied;
(i) Company shall not take, or agree to commit to take, any action
that would make any representation or warranty of Company contained herein
inaccurate in any respect at, or as of any time prior to, the Effective
Time; and
(j) Company shall not enter into an agreement, contract, commitment or
arrangement to do any of the foregoing, or to authorize, recommend, propose
or announce an intention to do any of the foregoing.
Section 5.2 ACCESS TO INFORMATION. From the date hereof until the
Effective Time, Company will give Parent and Purchaser, and their respective
counsel, financial advisors, prospective lenders, auditors and other authorized
representatives (pursuant to appropriate confidentiality agreements) full access
to the offices, properties, books and records of Company, will furnish to Parent
and Purchaser and their respective counsel, financial advisors, prospective
lenders, auditors and other authorized representatives such financial and
operating data and other information as such Persons may reasonably request and
will instruct Company's employees, counsel, financial advisors and auditors to
cooperate with Parent and Purchaser in their investigation of the business of
Company.
Section 5.3 OTHER POTENTIAL BIDDERS. Company shall, directly or
indirectly, furnish information and access, in each case in response to
unsolicited requests therefor, received prior to or after the date of this
Agreement, to the same extent permitted by Section 5.2 hereof, to any Person
pursuant to appropriate confidentiality agreements, and may participate in
discussions and negotiate with any such Person concerning any merger, sale of
assets, sale of shares of capital stock or similar transaction involving Company
or any division of Company (any such transaction being referred to herein as a
"Competing Transaction"), only if the Special Committee determines, after
consultation with counsel and its independent financial advisor, that such
action is necessary in light of the fiduciary duties of the Board of Directors
to the Public Stockholders. In the event a potential Competing Transaction
exists, Company shall direct its officers and other appropriate personnel to
cooperate with and be reasonably available to consult with any such Person.
Except as set forth above, Company shall not solicit, participate in or initiate
discussions or negotiations with, or provide any information to, any Person
(other than Parent or Purchaser) concerning any merger, sale of assets, sale of
shares of capital stock or similar transaction involving Company.
Section 5.4 NOTICES OF CERTAIN EVENTS. Each party shall promptly notify
the other parties of:
(a) any notice or other communication received by such party from any
Person alleging that the consent of such Person is or may be required in
connection with the Transactions;
(b) any occurrence or non-occurrence of any event that would cause any
representation or warranty of such party contained in this Agreement to be
untrue or inaccurate in any material respect at or prior to the Effective
Time;
(c) any material failure of such party to comply with or satisfy any
covenant, condition or agreement to be complied with or satisfied by it
hereunder; and
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(d) any notice or other communication from any Governmental Authority
in connection with the Transactions; provided, however, that the delivery
of any notice pursuant to this Section 5.4 shall not limit or otherwise
affect the remedies available hereunder to the party receiving such notice.
Section 5.5 VOTING OF SHARES. In any vote of Stockholders with respect to
this Agreement and the Transactions, Parent and Purchaser shall vote or cause to
be voted all of the shares of Company Common Stock beneficially owned by each
such party in favor of the approval and adoption of this Agreement and the
Transactions.
Section 5.6 DIRECTOR AND OFFICER LIABILITY. For six (6) years, or for the
period provided for in the applicable statute of limitations, whichever is
longer, from and after the Effective Time, Parent will or will cause Surviving
Corporation to indemnify and hold harmless the present and former officers and
directors of Company ("Indemnified Persons") in respect of acts or omissions
occurring at or prior to the Effective Time to the fullest extent provided under
the DGCL or under Company's Certificate of Incorporation and Bylaws in effect on
the date hereof. Notwithstanding any provision herein to the contrary, the
covenants contained in this Section 5.6 shall survive the Effective Time and the
consummation of the Transactions, are intended to benefit the Indemnified
Persons, and shall be binding on all successors and assigns of Parent and
Surviving Corporation.
Section 5.7 BEST EFFORTS. Subject to the terms and conditions of this
Agreement, each party will use its reasonable best efforts to take, or cause to
be taken, all actions and to do, or cause to be done, all things necessary,
proper or advisable under applicable Laws to consummate the Transactions
contemplated by this Agreement.
Section 5.8 CERTAIN FILINGS. Company, Parent and Purchaser shall
cooperate with each other (a) in connection with the preparation of Company
Disclosure Documents, (b) in determining whether any action by or in respect of,
or filing with, any Governmental Authority is required, or any actions,
consents, approvals or waivers are required to be obtained from parties to any
material contracts, in connection with the consummation of the transactions
contemplated by this Agreement, and (c) in seeking any such actions, consents,
approvals or waivers or making any such filings, furnishing information required
in connection therewith or with Company Disclosure Documents and seeking timely
to obtain any such actions, consents, approvals or waivers.
Section 5.9 PUBLIC ANNOUNCEMENTS. Parent and Company will consult with
each other before issuing any press release or making any public statement with
respect to this Agreement or the Transactions and, except as may be required by
applicable Law or any listing agreement with any national securities exchange,
will not issue any such press release or make any such public statement prior to
such consultation.
Section 5.10 FINANCING
(a) Parent shall use its best efforts to obtain all financing that is
necessary or desirable both to consummate the Transactions and to fund the
working capital needs of Surviving Corporation after the Closing (the
"Financing"), on terms and conditions substantially in accordance with the
Permitted Financing Terms.
(b) Company shall use its reasonable best efforts to provide
assistance to Parent and Purchaser in obtaining the Financing in accordance
with the Permitted Financing Terms.
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(c) Parent and Purchaser shall deliver to the Special Committee and
Company within fifteen (15) days of the date of this Agreement copies of a
written commitment for the Financing on terms substantially in accordance
with the Permitted Financing Terms.
(d) The funds provided by the written commitment(s) delivered by
Parent and Purchaser pursuant to subparagraph (c) above will be sufficient
to complete the Transactions contemplated hereby. Parent and Purchaser
shall use their best efforts to close the financing reflected in any such
written commitment(s). Any material change in the commitment(s) so
delivered or any new commitment(s) delivered must be approved by the
Special Committee, Company and Parent, which approval will not be
unreasonably withheld by any party.
Section 5.11 STOCKHOLDERS' MEETING. In accordance with applicable Law:
(a) Company shall duly call, give notice of, convene and hold a
special meeting of Stockholders (the "Special Meeting") as soon as
reasonably practicable for the purpose of considering and voting upon the
approval and adoption of this Agreement and the Transactions, and comply
with all legal requirements applicable to such meeting, in order to procure
the Required Stockholder Approval;
(b) Company shall in connection with such meeting, promptly prepare
and file (in consultation with Parent) with the SEC a preliminary proxy or
information statement, and a Schedule 13E-3 Transaction Statement required
pursuant to Section 13(e) of the Exchange Act (a "Schedule 13E-3"),
relating to the Transactions and this Agreement and use its reasonable best
efforts (x) to obtain and furnish the information required to be included
by the SEC in such preliminary proxy statement and Schedule 13E-3 and,
after consultation with Parent, the Special Committee, and their respective
counsel, to respond promptly to any comments made by the SEC with respect
to the preliminary proxy or Schedule 13E-3 and cause a definitive proxy or
information statement, including any amendment or supplement thereto (the
"Proxy Statement") to be mailed to Stockholders, provided that no material
amendment or supplement to either the Proxy Statement or Schedule 13E-3
will be made by Company without consultation with Parent, the Special
Committee, and their respective counsel, and (y) to obtain the necessary
approvals of the Transactions and this Agreement by Stockholders;
(c) Company shall include in the Proxy Statement the recommendation of
the Board of Directors of Company that Stockholders vote in favor of the
approval and the adoption of this Agreement and the transactions; and
(d) Parent, Purchaser and the members of the Jim Tankersley Family
shall, in connection with such meeting, promptly prepare and file (in
consultation with Company) with the SEC a Schedule 13E-3 relating to the
Transactions and this Agreement and use its reasonable best efforts (x) to
obtain and furnish the information required to be included by the SEC in
such Schedule 13E-3 and, after consultation with Company, the Special
Committee, and their respective counsel, to respond promptly to any
comments made by the SEC with respect to the Schedule 13E-3, provided that
no material amendment or supplement to the Schedule 13E-3 will be made by
Parent or Purchaser without consultation with Company, the Special
Committee, and their respective counsel, and (y) to obtain the
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necessary approvals of the Transactions and this Agreement by the Jim
Tankersley Family.
Section 5.12 FURTHER ASSURANCES. At and after the Effective Time, the
officers and directors of Surviving Corporation will be authorized to execute
and deliver, in the name and on behalf of Company or Purchaser, any deeds, bills
of sale, assignments or assurances and to take and do, in the name and on behalf
of Company or Purchaser, any other actions and things they may deem desirable to
vest, perfect or confirm of record or otherwise in Surviving Corporation any and
all right, title and interest in, to and under any of the rights, properties or
assets of Company acquired or to be acquired by Surviving Corporation as a
result of, or in connection with, the Merger.
Section 5.13 RESIGNATIONS OF DIRECTORS. Each director of Company
personally agrees to promptly execute and deliver to Parent, at Parent's
request, his resignation as a director of Surviving Corporation as provided
herein.
ARTICLE 6
CONDITIONS TO THE MERGER
Section 6.1 CONDITIONS TO THE OBLIGATIONS OF EACH PARTY. The obligations
of Company, Parent and Purchaser to consummate the Merger are subject to the
satisfaction at or prior to the Effective Time of the following conditions, any
or all of which may be waived, in whole or in part, by each of the parties
intended to benefit therefrom, to the extent permitted by applicable Law:
(a) this Agreement and the Transactions shall have been approved and
adopted at the Special Meeting by (i) a majority of all votes of the
outstanding Shares of Company Common Stock entitled to vote thereon, such
votes determined in accordance with Article FOURTH, Section C(2) of the
Certificate of Incorporation of Company and Section 251(c) of the DGCL, and
(ii) a majority of all Shares of Company Common Stock entitled to vote
thereon which are actually voted either "for" or "against" such approval
and adoption (in item (ii), (x) excluding from such computation all Shares
held by any of the Jim Tankersley Family or Parent and (y) counting each
Share actually voted as one full vote, regardless of class) (the foregoing
two approvals being collectively referred to herein as the "Required
Stockholder Approval");
(b) there are no claims, actions, suits, proceedings or investigations
pending or threatened, against Company, Parent or Purchaser, before any
Governmental Authority, that seek to prevent or delay the performance of
this Agreement or the Transactions, or that would result in a Material
Adverse Effect, and no Governmental Authority shall have enacted, issued,
promulgated, enforced or entered any Law or Order (whether temporary,
preliminary or permanent) which is in effect and which has the effect of
making the Transactions illegal or otherwise prohibiting consummation of
the Transactions;
(c) all actions by or in respect of, or filings with, any Governmental
Authority required to permit the consummation of the Transactions shall
have been made or obtained;
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(d) at the time of mailing of the Proxy Statement, J.C. Bradford & Co.
(i) shall have delivered and reaffirmed in writing (to the Special
Committee and the Board of Directors of Company, with a copy to Parent) its
opinion, originally dated as of January 20, 1999, to the effect that the
consideration to be received by the Public Stockholders pursuant to the
Merger is fair to such Stockholders from a financial point of view, and
(ii) shall not have withdrawn such opinion;
(e) Parent or Purchaser shall have received and caused the Financing
to be closed in accordance with the Permitted Financing Terms, and the
proceeds of the Financing shall have been made available for the
consummation of the Transactions;
(f) Parent shall have received all documents it may reasonably request
relating to the existence of Company and the authority of Company to enter
into this Agreement, all in form and substance reasonably satisfactory to
Parent; and
(g) Parent and Company shall have received or be satisfied that each
of them will receive all consents, amendments and approvals contemplated by
Sections 3.3 and 3.4, and any other consents of third parties necessary in
connection with the consummation of the Merger, if failure to obtain any
such consent would have a Material Adverse Effect or violate any Law or
Order).
Section 6.2 ADDITIONAL CONDITIONS TO THE OBLIGATIONS OF PARENT AND
PURCHASER. The obligations of Parent and Purchaser to consummate the Merger are
also subject to the satisfaction, at or prior to the time of obtaining the
Required Stockholder Approval (after which time the following conditions shall
not be conditions to the obligations of Parent and Purchaser), of the following
further conditions, any or all of which may be waived, in whole or in part, by
each of the parties intended to benefit therefrom, to the extent permitted by
applicable Law:
(a) the number of Shares as to which Company has received demand for
appraisal pursuant to Section 262(d)(1) of the DGCL shall not equal or
exceed 250,000 Shares;
(b) Company shall have performed in all material respects all of its
obligations hereunder required to be performed by it at or prior to such
time, the representations and warranties of Company contained in this
Agreement and in any certificate delivered by Company pursuant hereto shall
be true and correct in all material respects, at and as of such time as if
made at and as of such time, except that those representations and
warranties which address matters only as of a particular date shall remain
true and correct as of such date, and Parent shall have received a
certificate signed by an executive officer of Company (who may be the
principal financial officer) to the effect of all of the foregoing matters
in this subsection (b) and by the principal financial officer of Company to
the effect of the matters in the exception clause of this subsection (b);
(c) no Material Adverse Effect shall have occurred or shall be
pending;
(d) no reasonable basis (including, but not limited to, information
from a customer(s) or information available from public or reliable
industry sources) exists for Company, Purchaser or Parent to believe that
any significant customer(s) for products sold by either division of
Company, representing individually ten percent (10%) or more (or
representing one of the top three customers [measured by gross sales of
that division during the fiscal year ending February 28, 1999 ("fiscal
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1999")]), or in the aggregate representing twenty-five percent (25%) or
more, of the gross sales of that division during fiscal 1999, will reduce
its annual purchases from Company after consummation of the Transactions to
a level less than eighty percent (80%) of the amount it purchased from
Company during fiscal 1999 (provided, however, that such reasonable basis
must be materially different from the state of facts known to Parent and
Purchaser at the date of execution of this Agreement;
(e) Parent shall have received a certificate signed by an executive
officer of Company, certifying the foregoing items (a) and (c);
(f) all of the directors of Company shall have delivered to Parent in
writing their resignations as directors of Surviving Corporation, in form
attached hereto as EXHIBIT 6.2(F), with such resignations to become
effective immediately at 12:01 A.M. of the day next after the Closing Date
of the Merger;
(g) all actions to be taken by Company in connection with consummation
of the Transactions, and all certificates, instruments, and other documents
required to effectuate the Transactions, shall be reasonably satisfactory
in form and substance to Parent and Purchaser; and
(h) The fees to be paid J.C. Bradford & Co. by Company shall not
exceed $185,000.00 plus (i) out-of-pocket expenses and (ii) legal fees not
to exceed $10,000.00, for its services rendered to the Special Committee.
Section 6.3 ADDITIONAL CONDITIONS TO THE OBLIGATIONS OF COMPANY. The
obligations of Company to consummate the Merger are also subject to the
satisfaction at or prior to the Effective Time of the following further
conditions, any or all of which may be waived, in whole or in part, by Company
to the extent permitted by applicable Law:
(a) Parent and Purchaser shall have performed in all material respects
all of their respective obligations hereunder required to be performed by
them at or prior to the Effective Time, the representations and warranties
of Parent and Purchaser contained in this Agreement and in any certificate
delivered by Parent or Purchaser pursuant hereto shall be true and correct
in all material respects at and as of the Effective Time as if made at and
as of such time, except that those representations and warranties which
address matters only as of a particular date shall remain true and correct
as of such date, and Company shall have received a certificate signed by
the President or any Vice President of each of Parent and Purchaser to the
foregoing effect;
(b) Company shall have received all documents it may reasonably
request relating to the existence of Parent or Purchaser and the authority
of Parent or Purchaser to enter into this Agreement, all in form and
substance reasonably satisfactory to Company; and
(c) all actions to be taken by Parent or Purchaser in connection with
consummation of the Transactions, and all certificates, instruments, and
other documents required to effectuate the Transactions, shall be
satisfactory in form and substance to Company.
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ARTICLE 7
TERMINATION
Section 7.1 TERMINATION. This Agreement may be terminated and the
Transactions may be abandoned at any time prior to the Effective Time
(notwithstanding any adoption and approval of this Agreement by Stockholders):
(a) by mutual written consent of Company and Parent;
(b) by either Parent or Company, if the Merger has not been
consummated by September 30, 1999; provided, however, that the right to
terminate this Agreement under this Section 7.1(b) shall not be available
to any party whose failure to fulfill any obligation under this Agreement
has been the cause of, or resulted in, the failure of the Effective Time to
occur on or before such date;
(c) by either Parent or Company, if there shall be any Law that makes
consummation of the Transactions illegal or otherwise prohibited or if any
Order enjoining Parent or Company from consummating the Transactions is
entered and such Order shall become final and nonappealable;
(d) by either Parent or Company if this Agreement and the Transactions
shall fail to be approved and adopted by the Required Stockholder Approval
at the Special Meeting called for such purpose, as set forth in Section
6.1(a) above;
(e) by either Parent or Company, if, consistent with the terms of this
Agreement, the Board of Directors of Company withdraws, modifies or changes
its recommendation of this Agreement or the Transactions in a manner
adverse to Parent or Purchaser or shall have resolved to do any of the
foregoing or the Board of Directors of Company shall have recommended to
Stockholders of Company any Competing Transaction or resolved to do so; or
(f) by Company, if Parent and Purchaser have not delivered to Company
within fifteen (15) days of the date of this Agreement copies of a written
commitment(s) from a lending institution(s) (which institution the Company
determines to be acceptable to it), pursuant to which Financing will be
received on terms substantially in accordance with the Permitted Financing
Terms.
Section 7.2 EFFECT OF TERMINATION. If this Agreement is terminated
pursuant to Section 7.1, this Agreement shall become void and of no effect with
no liability on the part of any party hereto, except that the agreements
contained in Section 8.6 shall survive the termination hereof; provided,
however, that, except as specifically provided herein, nothing herein shall
relieve any party hereto of liability for any breach of this Agreement.
ARTICLE 8
MISCELLANEOUS
Section 8.1 DEFINITIONS. As used herein, the following terms have the
following respective meanings (such meanings to be equally applicable to both
the singular and plural forms of the terms defined):
"Affiliate" means, with respect to a Person, any other Person that,
directly or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, such given Person.
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"Agreement" means this Agreement and Plan of Merger, as the same may
be supplemented, modified or amended from time to time.
"Business Combinations Act" means Section 203 of the DGCL, as amended.
"Certificate of Merger" means a certificate of merger with respect to
the Merger, in compliance with the DGCL.
"Class A Common Stock" means the Class A common stock, $1.00 par value
per share, of Company.
"Class B Common Stock" means the Class B common stock, $1.00 par value
per share, of Company.
"Code" means the Internal Revenue Code of 1986, as amended.
"Company Common Stock" means the common stock, $1.00 par value per
share, of Company, including both Class A Common Stock and Class B Common
Stock.
"DGCL" means the Delaware General Corporation Law, as amended.
"Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.
"Expenses" means all reasonable out-of-pocket expenses (including,
without limitation, all fees and expenses of counsel, accountants,
investment bankers, experts and consultants and commitment fees and other
financing fees and expenses) incurred by Parent, Purchaser or Company or on
behalf of any such party in connection with or related to the
authorization, preparation, negotiation, execution and performance of this
Agreement, the preparation, printing, filing and mailing of the Proxy
Statement and Schedule 13E-3, the solicitation of the shareholder approvals
and all other matters related to the consummation of the transactions
contemplated hereby.
"GAAP" means United States generally accepted accounting principles
consistently applied.
"Governmental Authority" means any federal, state, county, local,
foreign or other governmental or public agency, instrumentality,
commission, authority, board or body, and any court, arbitrator, mediator
or tribunal.
"Law" means any code, law, ordinance, regulation, rule or statute of
any Governmental Authority.
"Lien" means any security interest, lien, mortgage, deed to secure
debt, deed of trust, pledge, charge, conditional sale or other title
retention agreement, or other encumbrance of any kind.
"Material Adverse Effect" means any matter that would reasonably be
expected to affect materially and adversely the business, condition
(financial or otherwise), prospects, or results of operations of Company
considered as a whole (excluding, however, any matter that is the result of
any action of any member of the Jim Tankersley Family which could
reasonably be construed as intended to provide a basis for termination of
the Transactions or of this Agreement).
"Order" means any administrative decision or award, decree,
injunction, judgment, order, quasi-judicial decision or award, ruling, or
writ of any federal, state,
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local or foreign or other court, arbitrator, mediator, tribunal,
administrative agency or other Governmental Authority.
"Permitted Financing Terms" means the obtaining of Financing by
Company upon the general terms and conditions set forth in EXHIBIT 8.1
hereto.
"Person" means an individual, a corporation, a partnership, an
association, a trust, a limited liability company or any other entity or
organization, including a government or political subdivision or any agency
or instrumentality thereof.
"Preferred Stock" means the preferred stock, $1.00 par value per
share, of Company.
"Purchaser Common Stock" means the common stock, $1.00 par value per
share, of Purchaser.
"SEC" means the Securities and Exchange Commission.
"Special Committee" means the committee of the Board of Directors
appointed on September 16, 1998 and comprised entirely of directors who are
neither members of management of Company nor affiliated with the Tankersley
Group, Parent or Purchaser or any Affiliate thereof.
"Surviving Corporation" means Company as surviving corporation
resulting from the Merger.
"Jim Tankersley Family" means James I. Tankersley, Edna W. Tankersley,
Darla T. Darnall, Kelle T. Northern and James W. Tankersley.
"Tankersley Group" means James I. Tankersley, Edna W. Tankersley,
Darla T. Darnall, Kelle T. Northern, James W. Tankersley, Julia T. Wells
and Daniel B. Tankersley.
The following terms are defined in the following Sections of this
Agreement:
<TABLE>
<CAPTION>
TERM SECTION
- ---- -----------------
<S> <C>
"Certificate"............................................... 2.2(b)
"Closing"................................................... 1.4
"Closing Date".............................................. 1.4
"Company"................................................... Opening Paragraph
"Company Disclosure Documents".............................. 3.7
"Competing Transaction"..................................... 5.3
"Dissenting Shares"......................................... 2.3
"Effective Time"............................................ 1.3
"Financing"................................................. 5.10(a)
"Merger".................................................... 1.2
"Merger Consideration"...................................... 2.1(d)
"Parent".................................................... Opening Paragraph
"Parent-Owned Shares"....................................... 2.1(a)
"Paying Agent".............................................. 2.2(a)
"Proxy Statement"........................................... 5.11(b)
"Purchaser"................................................. Opening Paragraph
"Public Stockholders"....................................... Recitals
"Required Stockholder Approval"............................. 6.1(a)
</TABLE>
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<TABLE>
<CAPTION>
TERM SECTION
- ---- -----------------
<S> <C>
"Schedule 13E-3"............................................ 5.11(b)
"Shares".................................................... 2.1
"Stockholders".............................................. Recitals
"Special Meeting"........................................... 5.11(a)
"Surviving Corporation"..................................... 1.2
"Transactions".............................................. Recitals
"Voting Debt"............................................... 3.5
</TABLE>
Section 8.2 NOTICES. Unless otherwise specifically provided herein, all
notices, demands or other communications to be given or delivered under or by
reason of the provisions of this Agreement shall be in writing and shall be
deemed to have been given (a) when delivered personally to the recipient, (b)
when sent to the recipient by telecopy (receipt electronically confirmed by
sender's telecopy machine) if during normal business hours of the recipient,
otherwise on the next business day, (c) one business day after the date when
sent to the recipient by reputable express courier service (charges prepaid), or
(d) seven business days after the date when mailed to the recipient by certified
or registered mail, return receipt requested and postage prepaid. Such notices,
demands and other communications shall be sent to the parties at the following
addresses (or at such other address for a party as shall be specified by like
notice):
If to Company:
United Foods, Inc.
Ten Pictsweet Drive
Bells, Tennessee 38006-0119
Attn: B.M. Ennis, President
Telephone: (901) 422-7600
Telecopy: (800) 561-8810
With a copy (which shall not constitute notice) to:
Bass, Berry & Sims PLC
2700 First American Center
Nashville, Tennessee 37238-2700
Attn: James H. Cheek, III
Telephone: (615) 742-6200
Telecopy: (615) 742-6293
If to Parent or Purchaser:
Pictsweet LLC
Ten Pictsweet Drive
Bells, Tennessee 38006-0119
Attn: James I. Tankersley
Telephone: (901) 422-7600
Telecopy: (800) 561-8810
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With a copy (which shall not constitute notice) to:
Sam D. Chafetz
Waring Cox, PLC
50 North Front Street
Suite 1300
Memphis, Tennessee 38103-1190
Telephone: (901) 543-8000
Telecopy: (901) 543-8036
Section 8.3 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The
representations and warranties contained herein and in any certificate delivered
pursuant hereto shall not survive the Effective Time or the termination of this
Agreement; provided, however, (i) that nothing in this Section 8.3 shall relieve
any party from any liability for any breach of any representation, warranty or
agreement in this Agreement occurring prior to termination, (ii) the agreements
contained in Article 2, in Section 5.6, and in this Section 8.3 hereof shall
survive the Effective Time indefinitely, and (iii) the agreements set forth in
Section 8.6 hereof shall survive termination indefinitely.
Section 8.4 ENFORCEMENT OF AGREEMENT. Until the Effective Time, the
Special Committee shall continue in existence and shall have the right to cause
Company to take any action necessary or appropriate to enforce the rights of
Company and the obligations of Parent and Purchaser under this Agreement.
Section 8.5 AMENDMENTS; WRITTEN WAIVERS.
(a) Any provision of this Agreement may be amended or waived prior to
the Effective Time if, and only if, such amendment or waiver is in writing
and signed by all parties hereto, or in the case of a waiver, by the party
against whom the waiver is to be effective; provided that any such
amendment and any such waiver by Company shall have been approved by the
Board of Directors of Company, acting on the recommendation of the Special
Committee; and provided, further, that after obtaining the adoption and
approval of this Agreement by the Required Stockholder Approval, no such
amendment or waiver shall, without further approval in the form of the
Required Stockholder Approval, alter or change (i) the amount or kind of
consideration to be received in exchange for any shares of capital stock of
Company or (ii) any of the terms or conditions of this Agreement if such
alteration or change would adversely affect the Public Stockholders.
(b) No failure or delay by any party in exercising any right, power or
privilege hereunder shall operate as a waiver thereof nor shall any single
or partial exercise thereof preclude any other or further exercise thereof
or the exercise of any other right, power or privilege. The rights and
remedies herein provided shall be cumulative and not exclusive of any
rights or remedies provided by law.
Section 8.6 EXPENSES. All reasonable Expenses incurred by all parties in
connection with this Agreement and the consummation of the Transactions shall be
paid by Company if the Merger is consummated. If the Merger is not consummated,
Company shall likewise pay all reasonable Expenses incurred by all parties in
connection with this Agreement or the Transactions; provided, however, that
Company may refuse to pay any expenses incurred by Parent or Purchaser if the
failure to consummate the Merger arose from (i) a breach of the terms hereof by
either Parent or Purchaser, (ii) a failure to obtain the
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Required Stockholder Approval or (iii) the number of Dissenting Shares equals or
exceeds 250,000 Shares.
Section 8.7 SUCCESSORS AND ASSIGNS. The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, provided that no party may assign, delegate
or otherwise transfer any of its rights or obligations under this Agreement
without the consent of the other parties hereto except that Parent may transfer
or assign, in whole or from time to time in part, to one or more of its
Affiliates, its rights under this Agreement, but any such transfer or assignment
will not relieve Parent of its obligations under this Agreement or prejudice the
rights of Stockholders to receive the Merger Consideration for Shares properly
surrendered in accordance with Section 2.2. This Agreement shall not be
construed so as to confer any right or benefit upon any Person other than the
parties to this Agreement, and their respective successors and assigns.
Section 8.8 GOVERNING LAW. Regardless of the place or places where this
Agreement may be executed, delivered or consummated, this Agreement shall be
governed by and construed in accordance with the Laws of the State of Delaware,
without regard to any applicable conflicts of Laws.
Section 8.9 SEVERABILITY. Any term or provision of this Agreement which
is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction,
be ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction. If any provision of this
Agreement is so broad as to be unenforceable, the provision shall be interpreted
to be only so broad as is enforceable.
Section 8.10 CAPTIONS. The captions contained in this Agreement are for
reference purposes only and are not part of this Agreement.
Section 8.11 INTERPRETATIONS. Neither this Agreement nor any uncertainty
or ambiguity herein shall be construed or resolved against any party, whether
under any rule of construction or otherwise. No party to this Agreement shall be
considered the draftsman. The parties acknowledge and agree that this Agreement
has been reviewed, negotiated and accepted by all parties and their attorneys,
as well as the Special Committee and its counsel, and shall be construed and
interpreted according to the ordinary meaning of the words used so as fairly to
accomplish the purposes and intentions of all parties hereto. References to
Sections herein shall mean Sections of this Agreement unless otherwise
indicated.
Section 8.12 COUNTERPARTS; EFFECTIVENESS. This Agreement may be signed in
any number of counterparts, each of which shall be an original, with the same
effect as if the signatures were upon the same instrument. This Agreement shall
become effective when each party hereto shall have received counterparts hereof
signed by all of the other parties hereto.
Section 8.13 GENDER AND NUMBER. As herein, words of any gender shall
include all other genders, and words in the singular shall include the plural,
and vice versa, unless the context otherwise requires.
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IN WITNESS WHEREOF, each of the parties has caused this Agreement to be
executed on its behalf as of the day and year first above written.
UNITED FOODS, INC.
By: /s/ B.M. ENNIS
-----------------------------------
Name: B.M. Ennis
Title: President
PICTSWEET LLC
By: /s/ JAMES I. TANKERSLEY
-----------------------------------
Name: James I. Tankersley
Title: President
UF ACQUISITION CORP.
By: /s/ JAMES I. TANKERSLEY
-----------------------------------
Name: James I. Tankersley
Title: President
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<PAGE> 125
EXHIBIT 3.4
CONFLICTS
1. Loan Agreement dated April 7, 1993, as amended, with First American
National Bank.
2. Loan Agreement dated January 7, 1997 with Metropolitan Life Insurance
Company.
3. Consolidation, Renewal and Restatement of Deed of Trust and Security
Agreement dated January 30, 1997 with Northwestern National Life Insurance
Company.
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<PAGE> 126
EXHIBIT 4.9
LITIGATION PENDING OR THREATENED
None, except the following:
1. Rolfe Glover vs. United Foods, Inc., James W. Tankersley, Thomas A.
Hopper, Jr., Kelle T. Northern, Julia T. Wells, Darla T. Darnall, James I.
Tankersley, Carl W. Gruenwald, II, John W. Wilder, B.M. Ennis and Dr.
Joseph A. Geary. Chancery Court of the State of Delaware (Newcastle County)
(C.A. 17006 NC) filed March 8, 1999 as a Class Action Complaint.
2. Robert I. Strougo vs. James I. Tankersley, Daniel B. Tankersley,
B.M. Ennis, James W. Tankersley, Carl W. Gruenwald, II, Julia T. Wells,
Darla T. Darnall, Kelle T. Northern, Joseph A. Geary, Thomas A. Hopper,
Jr., John S. Wilder, and United Foods, Inc. Chancery Court of the State of
Delaware (Newcastle County) (C.A. 17137 NC) filed May 3, 1999 as a Class
Action Complaint.
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EXHIBIT 6.2(F)
RESIGNATION OF DIRECTORS
, 1999
United Foods, Inc.
Ten Pictsweet Drive
Bells, Tennessee 39006-0119
Attn: James I. Tankersley
Re: Agreement and Plan of Merger, made as of May 14, 1999 (together with
any amendments or supplements thereto, the "Merger Agreement"), by and
among UNITED FOODS, INC., a Delaware corporation ("Company"), PICTSWEET
LLC, a Delaware limited liability company ("Parent"), and UF ACQUISITION
CORP., a Delaware corporation and a wholly owned subsidiary of Parent
("Purchaser").
Dear Sirs:
Pursuant to the Merger Agreement, the undersigned persons (the "Directors")
do each hereby irrevocably resign their positions as directors of the Company,
effective immediately at 12:01 A.M. of the day next after the Closing Date (as
defined in the Merger Agreement).
This instrument may be executed in one or more counterparts, each of which
shall be deemed an original, and all of which shall be deemed to be one and the
same instrument. It shall not be necessary that any single counterpart bear the
signature of all parties hereto. This instrument shall be separately enforceable
against each Director when he signs this instrument, and it shall not be
necessary for such enforcement that all Directors shall have signed it.
Facsimile signatures hereon shall be deemed to be as fully enforceable as
original signatures hereon.
Sincerely,
--------------------------------------
--------------------------------------
--------------------------------------
--------------------------------------
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EXHIBIT 8.1
PERMITTED FINANCING TERMS
BORROWER: United Foods, Inc. ("United Foods" or
"Borrower")
LENDER: Unknown ("Lender(s)")
FACILITY: $35,000,000 Revolving Line of Credit
(Outstanding tied to a borrowing base: 85% of
eligible accounts receivable, 60% of eligible
inventory.)
MATURITY: 3 years with the ability to extend the maturity
by one year beginning one year from closing.
COLLATERAL: Facility is secured by a perfected first
priority interest in all of Borrower's accounts
receivable and inventory (excluding the accounts
receivable and inventory associated with
Pictsweet Mushroom Farms.)
INTEREST RATES: Lender's Index Rate minus .5%.
Libor + 1.50%.
FEES:
Commitment Fee: Payable quarterly in arrears, 0.125% per annum
charged on the average unused portion of the
Revolving Line of Credit. Standby Letters of
Credit will count as "usage".
STANDBY LETTERS OF CREDIT:
Terms and Fees: All new Standby Letters of Credit (i) will be
issued by the Lender as the Issuing Bank, (ii)
will have Maturities equal to the lesser of
either 364 days or the minimum maturity required
by the beneficiary, provided that all new
Standby Letter of Credits mature prior to the
Maturity of the Revolving Credit Facility, and
(iii) will bear a fee equal to 1.25%.
CONDITIONS PRECEDENT: As customary for facilities of this nature,
including but not limited to:
- No material adverse change in Borrower's
prospects or financial condition at any time
prior to closing.
- Receipt of documentation listing all material
assets belonging to Borrower, and describing
all liens and all material litigation.
- Receipt of satisfactory opinion from
Borrower's counsel.
- Receipt of documents certifying that Borrower
has the appropriate insurance coverage and
appropriate govern-
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ment authorizations (permits, licenses, etc.),
and is in compliance with all government laws
and regulations, including those specifically
relating to environmental issues and to ERISA.
- Receipt of corporate resolutions and
incumbency certificates for Borrowers, and
certifications as to the accuracy of all
representations and warranties and absence of
any event of default or situation which, with
the passage of time, could constitute an event
of default.
- Completion of satisfactory loan documentation
and approval by the Lender's credit approval
authorities as to the final structure of the
transaction which has been approved by United
Food, Inc.'s Board of Directors.
REPRESENTATIONS AND
WARRANTIES: As customary for facilities of this nature,
including but not limited to affirmations
concerning corporate existence, corporate and
governmental authorization, financial
information, compliance with laws, including
environmental, compliance with ERISA, no
material litigation, payment of taxes, full
disclosure, ownership and maintenance of assets,
including permits, licenses, patents and
trademarks, validity of loan documents, and no
liens except as acceptable to the Lenders and
except those required in the ordinary course of
business.
COVENANTS: As customary for facilities of this nature,
including but not limited to requirements
concerning:
Affirmative Covenants: - Maintenance of corporate existence, government
authorization (licenses, permits, etc.),
business conduct, property and insurance.
- Payment of taxes and compliance with laws.
- Maintenance of warehouse agreements and
collateral, right of inspection.
- Notice of defaults, adverse changes.
- Notice of covenant compliance immediately
preceding and immediately following any
acquisition.
Financial Reporting: - Annual audited consolidated and reconciled
consolidating balance sheets and income
statements and statements of cash flows for
Borrower due within 90 days of fiscal year-end
complete with confirming letter from
accountant and officer's compliance
certificate.
- Monthly consolidated financial statements for
Borrower due within 20 days of each month end.
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- Borrowing Base Certificate due within 15 days
of month end.
- Quarterly Certificate of Compliance with all
financial covenants, due within 45 days of
quarter end.
- Annual forecast to include balance sheet,
income statement and statement of cash flows,
due within 90 days of fiscal year-end.
Negative Covenants: - Prohibitions on any change in business.
- Prohibitions against any change in the charter
documents or in fiscal year-end.
- Limitations on mergers, investments,
consolidations, transactions with affiliates,
and the sale of assets or collateral.
Financial Covenants: - Working Capital Floor: Minimum $25,000,000
Calculation:
Calculated annually, Current Assets minus
Current Liabilities
- Tangible Net Worth: Minimum $27,500,000
Calculation:
Calculated quarterly, Tangible Net Worth at
Closing plus 50% of Net Income or 50% of a Net
Loss. Under no circumstances should TNW fall
below $27,500,000.
- Debt to Equity Ratio: Maximum 3.5:1.0.
Calculation:
Calculated annually, Total Liabilities divided
by Tangible Net Worth.
EVENTS OF DEFAULT: As customary for facilities of this nature,
including but not limited to requirements
concerning:
- Nonpayment of any principal or interest when
due.
- Nonpayment of any other obligations owed to
the Lenders within 10 days of the due date.
- Default by Borrower under any other agreements
for funded debt with a principal amount in
excess of $500,000.
- Misleading, false or incomplete
representations or warranties.
- Breach or failure to observe or perform any
covenant or undertaking contained in the
credit agreement, subject to 30 day cure
period.
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<PAGE> 131
- Any judgment in excess of $500,000 against
Borrower not cured, waived or dismissed within
30 days.
- Any bankruptcy filing or other insolvency
proceeding of Borrower.
- Occurrence of any liability, or reasonable
threat of such liability, under any employee
benefit plan which may have a material adverse
effect on Borrower.
EXPENSES: Borrower will pay all reasonable fees and
expenses of the Lender and its counsel
associated with the negotiation and
documentation.
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<PAGE> 132
OPINION OF J.C. BRADFORD & CO., LLC APPENDIX B
J.C. BRADFORD & CO. LOGO
May 14, 1999
Board of Directors
United Foods, Inc.
Ten Pictsweet Drive
Bells, TN 39006
Gentlemen:
You have requested our opinion as to the fairness, from a financial point
of view, to the stockholders of United Foods, Inc. (the "Company") other than
James I. Tankersley, the Chief Executive Officer of the Company, and his wife
and children (the "Jim Tankersley Family") of $3.50 in cash, which is the
consideration to be received by such stockholders in the proposed merger (the
"Merger") in accordance with that certain draft Agreement and Plan of Merger
dated as of March 9, 1999 by and among the Company and two affiliates of the Jim
Tankersley Family (the "Draft Merger Agreement"). No opinion is rendered hereby,
nor should one be implied, with regard to the fairness to any member of the Jim
Tankersley Family of the consideration, if any, to be received by them in the
Merger.
J.C. Bradford & Co., LLC, as part of its investment banking business,
engages in the valuation of businesses and securities in connection with mergers
and acquisitions, negotiated underwritings, secondary distributions of listed
and unlisted securities, private placements, and valuations for estate,
corporate, and other purposes. We have been engaged by the Special Transaction
Committee of the Board of Directors of the Company to render this opinion in
connection with the Merger pursuant to an engagement letter dated September 29,
1998 and received a fee from the Company for our services as set forth in the
engagement letter.
In conducting our analysis and arriving at our opinion, we have considered
such financial and other information as we deemed appropriate including, among
other things, the following: (i) the Draft Merger Agreement; (ii) the historical
and current financial position and results of operations of the Company, as set
forth in its periodic reports and proxy materials filed with the Securities and
Exchange Commission; (iii) certain internal operating data and financial
analyses and forecasts for the fiscal year beginning March 1, 1999 and ending
February 28, 2000, prepared by the Company's senior management; (iv) certain
internal operating data of the Company for the fiscal years beginning March 1,
1980 and ending April 30, 1999; (v) reported securities trading data of the
Company; (vi) certain financial and securities trading data of certain other
companies, the securities of which are publicly traded, that we believed to be
comparable to the Company or relevant to the Merger; (vii) the financial terms
of certain other transactions that we believed to be comparable to the Merger or
otherwise relevant; (viii) the results of certain stock repurchase programs
carried out by the Company in the recent past; and (ix) such other financial
studies, analyses, and investigations as we deemed appropriate for purposes of
our opinion. We also have held discussions with members of the senior management
of the Company regarding the Company's past and current business operations,
financial condition, and its future prospects.
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<PAGE> 133
We have taken into account our assessment of general economic, market, and
financial and other conditions and our experience in other transactions, as well
as our experience in securities valuation and our knowledge of the industry in
which the Company operates. Our opinion is necessarily based upon the
information made available to us and conditions as they exist and can be
evaluated as of the date hereof.
We have relied upon the accuracy and completeness of all of the financial
and other information reviewed by us for purposes of our opinion and have not
assumed any responsibility for, nor undertaken an independent verification of,
such information. Without limiting the generality of the foregoing, we have
assumed, without independent investigation, that (i) the reserves reflected in
the Company's balance sheets with respect to environmental liabilities, taxes,
and litigation are not overstated and are adequate and that no additional
reserves with respect to such matters have been or should be recorded since the
latest balance sheet date except in the ordinary course of business consistent
with past practice; (ii) the Company is not contemplating a material acquisition
or disposition of its assets; (iii) the Company has not repurchased any of its
common stock in the open market except as disclosed to us; and (iv) no
disclosure by the Company or the Jim Tankersley Family to us misstates a
material fact or omits to state a material fact necessary to make the statements
therein, in light of the circumstances in which such disclosure is made, not
misleading. We have also assumed that the funds necessary to pay the Merger
consideration to the stockholders of the Company (other than the Jim Tankersley
Family) will be available at the closing of the Merger and that the definitive
merger agreement will not differ from the Draft Merger Agreement in any material
respect. With respect to the internal operating data and financial analyses and
forecasts supplied to us by the Company's senior management (including
participants in the Jim Tankersley Family), we have assumed that such data,
analyses, and forecasts (including projected capital expenditures) were
reasonably prepared on bases reflecting the best currently available estimates
and judgments of the Company's senior management as to the recent and likely
future performance of the Company. Accordingly, we express no opinion with
respect to such analyses or forecasts or the assumptions on which they are
based.
We were not asked to consider and our opinion does not address the relative
merits of the Merger as compared to any alternative business strategies that
might exist for the Company or the effect of any other transactions in which the
Company might engage. Furthermore, we have not made an independent evaluation or
appraisal of the assets and liabilities of the Company or its affiliates and
have not been furnished with any such evaluation or appraisal.
We were engaged by the Special Transaction Committee of the Board of
Directors of the Company to render this opinion in connection with the Special
Transaction Committee's discharge of its fiduciary obligations. This opinion
does not constitute a recommendation to any stockholder to vote in favor of the
Merger. We have advised the Special Transaction Committee and the Board of
Directors that we do not believe that any person (including a stockholder of the
Company) other than the Special Transaction Committee and the Board of Directors
has the legal right to rely on this opinion for any claim arising under state
law and that, should any such claim be brought against us, this assertion will
be raised as a defense.
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Based upon and subject to the foregoing, and based upon such other matters
as we consider relevant, it is our opinion that, as of the date hereof and based
on conditions as they currently exist, $3.50 in cash, which is the consideration
to be received in the Merger by the stockholders of the Company (other than the
Jim Tankersley Family), is fair to such stockholders from a financial point of
view.
Very truly yours,
J.C. BRADFORD & CO., LLC
By: /s/ N. B. Forrest Shoaf
-------------------------------------------
N. B. Forrest Shoaf
Senior Vice President
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APPENDIX C
DELAWARE GENERAL CORPORATION LAW
Section 262. APPRAISAL RIGHTS
(a) Any stockholder of a corporation of this State who holds shares of
stock on the date of the making of a demand pursuant to subsection (d) of
this section with respect to such shares, who continuously holds such
shares through the effective date of the merger or consolidation, who has
otherwise complied with subsection (d) of this section and who has neither
voted in favor of the merger or consolidation nor consented thereto in
writing pursuant to sec.228 of this title shall be entitled to an appraisal
by the Court of Chancery of the fair value of the stockholder's shares of
stock under the circumstances described in subsections (b) and (c) of this
section. As used in this section, the word "stockholder" means a holder of
record of stock in a stock corporation and also a member of record of a
nonstock corporation; the words "stock" and "share" mean and include what
is ordinarily meant by those words and also membership or membership
interest of a member of a nonstock corporation; and the words "depository
receipt" mean a receipt or other instrument issued by a depository
representing an interest in one or more shares, or fractions thereof,
solely of stock of a corporation, which stock is deposited with the
depository.
(b) Appraisal rights shall be available for the shares of any class or
series of stock of a constituent corporation in a merger or consolidation
to be effected pursuant to sec.251 (other than a merger effected pursuant
to sec.251(g) of this title), sec.252, sec.254, sec.257, sec.258, sec.263
or sec.264 of this title:
(1) Provided, however, that no appraisal rights under this section
shall be available for the shares of any class or series of stock, which
stock, or depository receipts in respect thereof, at the record date
fixed to determine the stockholders entitled to receive notice of and to
vote at the meeting of stockholders to act upon the agreement of merger
or consolidation, were either (i) listed on a national securities
exchange or designated as a national market system security on an
interdealer quotation system by the National Association of Securities
Dealers, Inc. or (ii) held of record by more than 2,000 holders; and
further provided that no appraisal rights shall be available for any
shares of stock of the constituent corporation surviving a merger if the
merger did not require for its approval the vote of the stockholders of
the surviving corporation as provided in subsection (f) of sec.251 of
this title.
(2) Notwithstanding paragraph (1) of this subsection, appraisal
rights under this section shall be available for the shares of any class
or series of stock of a constituent corporation if the holders thereof
are required by the terms of an agreement of merger or consolidation
pursuant to sec.sec.251, 252, 254, 257, 258, 263 and 264 of this title
to accept for such stock anything except:
a. Shares of stock of the corporation surviving or resulting
from such merger or consolidation, or depository receipts in
respect thereof;
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b. Shares of stock of any other corporation, or depository
receipts in respect thereof, which shares of stock (or depository
receipts in respect thereof) or depository receipts at the
effective date of the merger or consolidation will be either listed
on a national securities exchange or designated as a national
market system security on an interdealer quotation system by the
National Association of Securities Dealers, Inc. or held of record
by more than 2,000 holders;
c. Cash in lieu of fractional shares or fractional depository
receipts described in the foregoing subparagraphs a. and b. of this
paragraph; or
d. Any combination of the shares of stock, depository receipts
and cash in lieu of fractional shares or fractional depository
receipts described in the foregoing subparagraphs a., b. and c. of
this paragraph.
(3) In the event all of the stock of a subsidiary Delaware
corporation party to a merger effected under sec.253 of this title is
not owned by the parent corporation immediately prior to the merger,
appraisal rights shall be available for the shares of the subsidiary
Delaware corporation.
(c) Any corporation may provide in its certificate of incorporation
that appraisal rights under this section shall be available for the shares
of any class or series of its stock as a result of an amendment to its
certificate of incorporation, any merger or consolidation in which the
corporation is a constituent corporation or the sale of all or
substantially all of the assets of the corporation. If the certificate of
incorporation contains such a provision, the procedures of this section,
including those set forth in subsections (d) and (e) of this section, shall
apply as nearly as is practicable.
(d) Appraisal rights shall be perfected as follows:
(1) If a proposed merger or consolidation for which appraisal
rights are provided under this section is to be submitted for approval
at a meeting of stockholders, the corporation, not less than 20 days
prior to the meeting, shall notify each of its stockholders who was such
on the record date for such meeting with respect to shares for which
appraisal rights are available pursuant to subsections (b) or (c) hereof
that appraisal rights are available for any or all of the shares of the
constituent corporations, and shall include in such notice a copy of
this section. Each stockholder electing to demand the appraisal of such
stockholder's shares shall deliver to the corporation, before the taking
of the vote on the merger or consolidation, a written demand for
appraisal of such stockholder's shares. Such demand will be sufficient
if it reasonably informs the corporation of the identity of the
stockholder and that the stockholder intends thereby to demand the
appraisal of such stockholder's shares. A proxy or vote against the
merger or consolidation shall not constitute such a demand. A
stockholder electing to take such action must do so by a separate
written demand as herein provided. Within 10 days after the effective
date of such merger or consolidation, the surviving or resulting
corporation shall notify each stockholder of each constituent
corporation who has complied with this subsection and has not voted in
favor of or consented to the merger or consolidation of the date that
the merger or consolidation has become effective; or
(2) If the merger or consolidation was approved pursuant to sec.228
or sec.253 of this title, each constituent corporation, either before
the effective date of the
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merger or consolidation or within ten days thereafter, shall notify each
of the holders of any class or series of stock of such constituent
corporation who are entitled to appraisal rights of the approval of the
merger or consolidation and that appraisal rights are available for any
or all shares of such class or series of stock of such constituent
corporation, and shall include in such notice a copy of this section;
provided that, if the notice is given on or after the effective date of
the merger or consolidation, such notice shall be given by the surviving
or resulting corporation to all such holders of any class or series of
stock of a constituent corporation that are entitled to appraisal
rights. Such notice may, and, if given on or after the effective date of
the merger or consolidation, shall, also notify such stockholders of the
effective date of the merger or consolidation. Any stockholder entitled
to appraisal rights may, within 20 days after the date of mailing of
such notice, demand in writing from the surviving or resulting
corporation the appraisal of such holder's shares. Such demand will be
sufficient if it reasonably informs the corporation of the identity of
the stockholder and that the stockholder intends thereby to demand the
appraisal of such holder's shares. If such notice did not notify
stockholders of the effective date of the merger or consolidation,
either (i) each such constituent corporation shall send a second notice
before the effective date of the merger or consolidation notifying each
of the holders of any class or series of stock of such constituent
corporation that are entitled to appraisal rights of the effective date
of the merger or consolidation or (ii) the surviving or resulting
corporation shall send such a second notice to all such holders on or
within 10 days after such effective date; provided, however, that if
such second notice is sent more than 20 days following the sending of
the first notice, such second notice need only be sent to each
stockholder who is entitled to appraisal rights and who has demanded
appraisal of such holder's shares in accordance with this subsection. An
affidavit of the secretary or assistant secretary or of the transfer
agent of the corporation that is required to give either notice that
such notice has been given shall, in the absence of fraud, be prima
facie evidence of the facts stated therein. For purposes of determining
the stockholders entitled to receive either notice, each constituent
corporation may fix, in advance, a record date that shall be not more
than 10 days prior to the date the notice is given, provided, that if
the notice is given on or after the effective date of the merger or
consolidation, the record date shall be such effective date. If no
record date is fixed and the notice is given prior to the effective
date, the record date shall be the close of business on the day next
preceding the day on which the notice is given.
(e) Within 120 days after the effective date of the merger or
consolidation, the surviving or resulting corporation or any stockholder
who has complied with subsections (a) and (d) hereof and who is otherwise
entitled to appraisal rights, may file a petition in the Court of Chancery
demanding a determination of the value of the stock of all such
stockholders. Notwithstanding the foregoing, at any time within 60 days
after the effective date of the merger or consolidation, any stockholder
shall have the right to withdraw such stockholder's demand for appraisal
and to accept the terms offered upon the merger or consolidation. Within
120 days after the effective date of the merger or consolidation, any
stockholder who has complied with the requirements of subsections (a) and
(d) hereof, upon written request, shall be entitled to receive from the
corporation surviving the merger or resulting from the consolidation a
statement setting forth the aggregate number of shares not voted in favor
of the merger or consolidation and with respect to which demands for
appraisal
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have been received and the aggregate number of holders of such shares. Such
written statement shall be mailed to the stockholder within 10 days after
such stockholder's written request for such a statement is received by the
surviving or resulting corporation or within 10 days after expiration of
the period for delivery of demands for appraisal under subsection (d)
hereof, whichever is later.
(f) Upon the filing of any such petition by a stockholder, service of
a copy thereof shall be made upon the surviving or resulting corporation,
which shall within 20 days after such service file in the office of the
Register in Chancery in which the petition was filed a duly verified list
containing the names and addresses of all stockholders who have demanded
payment for their shares and with whom agreements as to the value of their
shares have not been reached by the surviving or resulting corporation. If
the petition shall be filed by the surviving or resulting corporation, the
petition shall be accompanied by such a duly verified list. The Register in
Chancery, if so ordered by the Court, shall give notice of the time and
place fixed for the hearing of such petition by registered or certified
mail to the surviving or resulting corporation and to the stockholders
shown on the list at the addresses therein stated. Such notice shall also
be given by 1 or more publications at least 1 week before the day of the
hearing, in a newspaper of general circulation published in the City of
Wilmington, Delaware or such publication as the Court deems advisable. The
forms of the notices by mail and by publication shall be approved by the
Court, and the costs thereof shall be borne by the surviving or resulting
corporation.
(g) At the hearing on such petition, the Court shall determine the
stockholders who have complied with this section and who have become
entitled to appraisal rights. The Court may require the stockholders who
have demanded an appraisal for their shares and who hold stock represented
by certificates to submit their certificates of stock to the Register in
Chancery for notation thereon of the pendency of the appraisal proceedings;
and if any stockholder fails to comply with such direction, the Court may
dismiss the proceedings as to such stockholder.
(h) After determining the stockholders entitled to an appraisal, the
Court shall appraise the shares, determining their fair value exclusive of
any element of value arising from the accomplishment or expectation of the
merger or consolidation, together with a fair rate of interest, if any, to
be paid upon the amount determined to be the fair value. In determining
such fair value, the Court shall take into account all relevant factors. In
determining the fair rate of interest, the Court may consider all relevant
factors, including the rate of interest which the surviving or resulting
corporation would have had to pay to borrow money during the pendency of
the proceeding. Upon application by the surviving or resulting corporation
or by any stockholder entitled to participate in the appraisal proceeding,
the Court may, in its discretion, permit discovery or other pretrial
proceedings and may proceed to trial upon the appraisal prior to the final
determination of the stockholder entitled to an appraisal. Any stockholder
whose name appears on the list filed by the surviving or resulting
corporation pursuant to subsection (f) of this section and who has
submitted such stockholder's certificates of stock to the Register in
Chancery, if such is required, may participate fully in all proceedings
until it is finally determined that such stockholder is not entitled to
appraisal rights under this section.
(i) The Court shall direct the payment of the fair value of the
shares, together with interest, if any, by the surviving or resulting
corporation to the stockholders entitled thereto. Interest may be simple or
compound, as the Court may direct.
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Payment shall be so made to each such stockholder, in the case of holders
of uncertificated stock forthwith, and the case of holders of shares
represented by certificates upon the surrender to the corporation of the
certificates representing such stock. The Court's decree may be enforced as
other decrees in the Court of Chancery may be enforced, whether such
surviving or resulting corporation be a corporation of this State or of any
state.
(j) The costs of the proceeding may be determined by the Court and
taxed upon the parties as the Court deems equitable in the circumstances.
Upon application of a stockholder, the Court may order all or a portion of
the expenses incurred by any stockholder in connection with the appraisal
proceeding, including, without limitation, reasonable attorney's fees, and
the fees and expenses of experts, to be charged pro rata against the value
of all the shares entitled to an appraisal.
(k) From and after the effective date of the merger or consolidation,
no stockholder who has demanded appraisal rights as provided in subsection
(d) of this section shall be entitled to vote such stock for any purpose or
to receive payment of dividends or other distributions on the stock (except
dividends or other distributions payable to stockholders of record at a
date which is prior to the effective date of the merger or consolidation);
provided, however, that if no petition for an appraisal shall be filed
within the time provided in subsection (e) of this section, or if such
stockholder shall deliver to the surviving or resulting corporation a
written withdrawal of such stockholder's demand for an appraisal and an
acceptance of the merger or consolidation, either within 60 days after the
effective date of the merger or consolidation as provided in subsection (e)
of this section or thereafter with the written approval of the corporation,
then the right of such stockholder to an appraisal shall cease.
Notwithstanding the foregoing, no appraisal proceeding in the Court of
Chancery shall be dismissed as to any stockholder without the approval of
the Court, and such approval may be conditioned upon such terms as the
Court deems just.
(1) The shares of the surviving or resulting corporation to which the
shares of such objecting stockholders would have been converted had they
assented to the merger or consolidation shall have the status of authorized
and unissued shares of the surviving or resulting corporation.
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PROXY UNITED FOODS, INC.
TEN PICTSWEET DRIVE
BELLS, TENNESSEE 38006-0119
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS.
The undersigned hereby appoints and , or either of them, as
Proxies, each with full power to appoint his substitute, and hereby authorizes
them to represent and to vote, as designated below, all the shares of Class A
Common Stock and Class B Common Stock of United Foods, Inc., held of record by
the undersigned on June , 1999, at the special meeting of stockholders to be
held on August , 1999, or any adjournments or postponements thereof. This
proxy revokes all prior proxies given by the undersigned. Receipt of the Notice
of Special Meeting and Proxy Statement is hereby acknowledged.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE FOLLOWING PROPOSAL.
1. TO APPROVE AND ADOPT THE AGREEMENT AND PLAN OF MERGER, DATED AS OF MAY 14,
1999, BY AND AMONG PICTSWEET LLC, A DELAWARE LIMITED LIABILITY COMPANY, UF
ACQUISITION CORP., A DELAWARE CORPORATION, AND UNITED FOODS, INC., A DELAWARE
CORPORATION, AND THE MERGER OF UF ACQUISITION CORP. WITH AND INTO UNITED
FOODS, INC. AS CONTEMPLATED THEREBY.
<TABLE>
<S> <C> <C>
[ ] FOR [ ] AGAINST [ ] ABSTAIN
</TABLE>
2. AUTHORIZATION FOR PROXIES TO VOTE IN THEIR DISCRETION UPON SUCH OTHER
BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING:
<TABLE>
<S> <C>
[ ] GRANT AUTHORITY [ ] WITHHOLD AUTHORITY
</TABLE>
(Continued and to be signed on the other side)
(Continued from other side)
SHARES OF THE COMPANY'S CLASS A COMMON STOCK ARE DESIGNATED ABOVE AS "COMA"
AND SHARES OF THE COMPANY'S CLASS B COMMON STOCK ARE DESIGNATED ABOVE AS "COMB".
This proxy when properly executed will be voted in the manner directed
herein by the undersigned stockholder. If no direction is made, this proxy will
be voted "FOR" Proposal 1 and to "GRANT AUTHORITY" for Proposal 2.
Dated: , 1999
-------------------------
--------------------------------
Signature
--------------------------------
Signature if held jointly
(PLEASE SIGN EXACTLY AS NAME
APPEARS HEREON. WHEN SHARES ARE
HELD BY JOINT TENANTS, BOTH
SHOULD SIGN. WHEN SIGNING AS
ATTORNEY, EXECUTOR,
ADMINISTRATOR, TRUSTEE OR
GUARDIAN, PLEASE GIVE FULL TITLE
AS SUCH. IF A CORPORATION,
PLEASE SIGN IN FULL CORPORATE
NAME BY PRESIDENT OR OTHER
AUTHORIZED OFFICER. IF A
PARTNERSHIP, PLEASE SIGN IN
PARTNERSHIP NAME BY AUTHORIZED
PERSON.)
PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY IN THE ENCLOSED
ENVELOPE.
