date:May 07, 2013
produce is typically regarded as a lower-margin business compared with processed foods because fresh goods are perishable and have high distribution costs.
However, recent deals in the organic foods sector have commanded high multiples. In July 2012, high-end juice maker Bolthouse Foods was acquired by Campbell Soup Co for $1.6 billion, about 11 times EBITDA.
That compares with a multiple of around 9 for recent transactions in the food and beverage sector, according to accounting and consulti