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Sandell Releases Presentation Detailing Case for Separation of BEF Foods and Bob Evans Restaurants

2016-08-26 09:15 ET - News Release

Investor Believes Value of BEF Foods may Approach $1.2 Billion, Exceeding Enterprise Value of Entire Company; Market Ascribing Negative Value to Restaurants Business


Company Website: http://Sandell Logo
NEW YORK -- (Business Wire)

Sandell Asset Management Corp. (“Sandell”), a large and long-time shareholder of Bob Evans Farms, Inc. (“Bob Evans” or the “Company”) (NASDAQ: BOBE), today released a presentation: “Bob Evans – Discussion Materials: Separating BEF Foods and Bob Evans Restaurants.” This presentation can be found at: http://www.sandellmgmt.com/News/SeparateBEFandRestaurants.pdf.

In this presentation, Sandell discusses the compelling business reasons to pursue a separation of the Company’s two disparate and wholly-owned business segments, Bob Evans Farms Foods (“BEF Foods”) and Bob Evans Restaurants (“Restaurants”). Sandell believes that the stock price of Bob Evans does not reflect the significant value associated with the Company’s growing and highly-profitable packaged foods business, BEF Foods, which generated segment EBITDA in excess of $90 million for the Fiscal Year ending April, 2016.

Sandell cites the high valuation of many publicly-traded packaged foods companies as well as the mid to high teens multiples of EBITDA paid in numerous recent transactions in the packaged foods space as evidence justifying its belief that the value of BEF Foods may approach $1.2 billion, which would exceed the approximate $1.07 billion current enterprise value (market value plus net debt) of the entire Company. Based on the foregoing, Sandell believes that the market is ascribing negative value to the Company’s Restaurants business, which it finds all the more shocking considering that Bob Evans wholly-owns highly-valuable real estate associated with the land and buildings of over 300 of its restaurants, which is in addition to the 143 restaurants that were part of a recent $197 million sale-leaseback transaction.

In the presentation, Sandell notes that there are many alternatives available to achieve an industrially compelling, as well as taxably-favorable, separation of BEF Foods and Restaurants, including and not limited to: (1) a spin-off or split-off of BEF Foods; (2) a “sponsored” spin-off of BEF Foods; (3) a “Reverse Morris Trust” with BEF Foods or Bob Evans Restaurants; and (4) a spin-off of Bob Evans Restaurants. Sandell continues to believe the Company should pursue a separation of its Bob Evans Restaurants and BEF Foods business segments.

About Sandell Asset Management Corp.

Sandell Asset Management Corp. is a leading private, alternative asset management firm specializing in global corporate event-driven, multi-strategy investing with a strong focus on equity special situations and credit opportunities. Sandell Asset Management Corp. was founded in 1998 by Thomas E. Sandell and has offices in New York and London, including a global staff of investment professionals, traders and infrastructure specialists.

Contacts:

Sandell Asset Management Corp.
Adam Hoffman, 212-603-5814
or
Sloane & Company
Dan Zacchei / Joe Germani, 212-446-1882

Source: Sandell Asset Management Corp.

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