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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160826005269/en/
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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