美國
證券交易委員會
華盛頓特區20549
表格 8-K
當前 報告
依據第13條或第15(d)條
證券交易法(1934年)第13條或第15(d)條
報告日期（最早報告之事項日期）：2024年10月21日
家樂氏
（根據章程所指定的註冊人確定的正確名稱）
| 特拉華州 | 1-4171 | 38-0710690 | ||
| (成立的州或其他地區) (公司註冊地) |
(委員會 文件號碼) |
(IRS雇主 識別號碼) |
412 N. Wells Street
芝加哥，伊利諾伊州60654
(主要行政辦公室地址，包括郵遞區號)
(269) 961-2000
(註冊人的電話號碼，包括區號)
請勾選以下適當的框框，以表示表格提交旨在同時滿足註冊人根據以下任何條款的提交義務（請參見一般指示A.2.）： 8-K 提交申報是為了同時滿足申報義務，根據以下任一規定：
| ☐ | 根據證券法規定第425條（17 CFR 230.425），書面通信 |
| ☒ | 根據交易所法规14d-2(b)规定的预先启动通信 14a-12 根據交易所法案（17 CFR 240.14a-12) |
| ☐ | 交易開始前 根據規則進行的通信 14d-2(b) 根據交易所法案（17 CFR 240.14d-2(b)) |
| ☐ | 交易開始前 根據規則進行的通信 13e-4(c) 根據交易所法案（17 CFR 240.13e-4(c)) |
根據該法案第12(b)條規定註冊的證券：
| 每種類別的名稱 |
交易 |
每個交易所的名稱 註冊在哪裡的 | ||
| 每股面值$.25的普通股 | K | 紐約證券交易所 | ||
| 到期日為2025年的1.250%優先票據 | K25 | 紐約證券交易所 | ||
| 到期日為2029年的0.500%優先票據 | K29 | 紐約證券交易所 | ||
| 到期日為2034年的3.750%優先票據 | K34 | 紐約證券交易所 |
請標記核對，證券法第405條的定義中，公司是否是新興成長型企業 1933年(本章節第230.405條)或本章節規定的規則 12b-2 （本章節第240.1.2億2條） (§240.12b-2 的規則)
新興成長公司 ☐
如果是新興成長公司，請在勾選旁表示，公司是否選擇不使用根據《交易法》第13(a)條提供的任何新的或修訂的財務會計準則的延長過渡期。 ☐
| 第八一項目 | 其他活動。 |
補充披露
正如前所述，在 2024 年 8 月 13 日，特拉華州公司凱拉諾瓦（「公司」或「凱拉諾瓦」）與特拉華州有限責任的收購者 10VB8, 有限責任公司簽訂了協議和合併計劃（「合併協議」） 公司（「收購者」）、合併子公司 10VB8, 有限責任公司、特拉華州有限責任公司和收購者的全資子公司（「合併子公司」），並且僅用於合併協議中指明的有限目的，Mars， Incorporated 是一家特拉華州公司，根據該公司，根據合併協議中規定的條款和條件下，合併 Sub 將與 Kellanova 合併並進入 Kellanova，Kellanova 以收購者的全資附屬公司生存 （「合併」）。2024 年 9 月 26 日，本公司就附表 DEFM14A 提交一份確定代表聲明（如此可不時補充「確定代表委任聲明」），向美國證券及 交易委員會（「SEC」）與本公司股東特別大會有關，以其他事項作出通過和批准預定於 2024 年 11 月 1 日舉行的合併協議（ 「特別會議」）。
說明說明
在 與合併有關，兩宗投訴已作為個別訴訟向紐約縣紐約州最高法院提交，並有標題 丹·史密斯訴凱拉諾瓦等，案件號。 特克斯 241011-紐約 2 （2024 年 10 月 11 日提交）（「史密斯投訴」）和 史蒂夫·泰勒 vs 凱拉諾瓦等。 （二零二四年十月十一日提交） （「泰勒投訴」和， 連同史密斯投訴，「紐約投訴」）。一宗投訴已向伊利諾伊州庫克縣區域法院，查理部門的個人訴訟提出，並附著字幕 達娜 ·L· 克羅斯比 vs. 凱拉諾瓦等人，個案編號 202CH09367 （2024 年 10 月 9 日提交）（「克羅斯比投訴」，以及紐約投訴一起「合併行動」）。
合併訴訟一般指稱，「確定代表委任聲明」不正確陳述及/或省略有關與該等有關的某些據稱為重要資料。 公司的財務預測、財務顧問所進行的分析以及合併行動指稱的某些衝突相關資訊對評估合併至關重要。Crosby 投訴指稱該公司和 其董事違反了他們根據特拉華州法律的披露責任。Crosby 投訴亦指出對本公司及其董事會成員違反信託責任的索賠，及/或協助和協助和協助和協助和協助和協助和協助和協助和協助和協助和協助和協助之間的聲明。 （統稱為「董事被告人」）根據特拉華州法律與合併程序的充足性和協議的銷售價格有關。紐約投訴聲稱涉嫌疏忽虛假陳述和隱藏 公司及所有董事被告違反紐約普通法，以及違反紐約普通法違反所有被告違反紐約普通法的疏忽，無論是關於確定代表委任中的指稱虛假陳述和/或遺漏 聲明。合併訴訟除其他事項之外，除非披露某些額外資料，或撤銷或實際和懲罰性損害賠償，以及費用和開支為止，否則該項合併訴訟旨在規定完成合併的令， 包括合理的律師和專家的費用和開支，以及法院可能認為合理和適當的其他豁免。
此外，本公司 已收到本公司 11 名聲稱股東的請求函，要求在「確定代表委任聲明」（統稱「請求信」）中披露其他披露。
本公司認為合併行動和請求信中所提出的索償是無合理，但無法預測任何此類索賠的結果。 未來也可能會提出或收到因合併而引起的其他訴訟和請求函件。如果提交或收到其他類似的訴訟和要求信件，沒有新的或明顯不同的指控，本公司 不一定披露此類額外訴訟或要求信件。
雖然本公司認為確定條款所載的披露 委任聲明完全遵守所有適用法律，並否認合併行動和請求信中的指控，為了爭議披露聲明，並避免滋擾和可能的費用和業務延誤，本公司有 決定自願以下載的補充披露（「補充披露」）補充有關索賠的「確定代表委任聲明」中的某些披露。補充披露內容不包含 應被視為承認本文所述任何披露的法律優點、必要性或重要性。相反，本公司明確否認合併行動和請求信中的所有指控 任何額外披露是或是必要的或重大的。
所有頁面引用均指定可供補充披露前報告書內的頁面，除非另有定義，否則下文中使用的大寫詞語的含義與正式股東大會通知書中所列相同。在被引用的披露中，加底線和加粗的文字表示對正式股東大會通知書中的引用披露進行補充，而劃去的文字表示從正式股東大會通知書的引用披露中刪除的文字。本表格所填報的現行報告表格 8-K 根據此，此份“現行報告表格”已納入並修訂和/或補充正式股東大會通知書的內容。除本文特別說明的事項外，正式股東大會通知書中列明的信息保持不變。
正式股東大會通知書的補充披露
| 1. | 正式股東大會通知書中標題為“併購交易—併購背景”的部分現通告如下： |
| a. | 透過將以下段落添加到正式股東大會通知書第46頁，作為標題為“併購交易—併購背景”的部分的倒數第二段: |
火星公司與Kellanova資深管理團隊，或者在董事會批准和簽署併購協議之前，未與其或其代表進行有關併購後就業安排的討論或談判。
| 2. | 正式股東大會通知書中標題為“併購交易—Kellanova—Lazard Frères & Co. LLC 財務顧問的意見”的部分現更如下： |
| a. | 通過將正式股東大會通知書第65頁開始的標題為“折現現金流分析”的部分整個修訂為如下所示: |
使用財務預測，lazard對Kellanova進行了折現現金流分析。
折現現金流分析是一種估值方法，用於通過計算公司未來估計現金流的現值來推導公司的估值。一家公司的“估計未來現金流”是指其預期的無負債自由現金流量，“現值”指的是今天的值或未來現金流或金額的假定日期的值，通過將估計的未來現金流或金額按一個考慮宏觀經濟假設和風險、資本的機會成本、資本結構、所得稅、預期回報和其他適當因素的折現率折現，來獲取。
為了進行此分析，lazard通過折現到現值來計算Kellanova的企業價值範圍，利用6.25%至6.75%的折現率範圍，lazard基於其對Kellanova的加權平均成本資本的分析（使用資本資產定價模型確定，並根據lazard認為在其專業判斷和經驗中具有相關性的考量，考慮一定的財務指標，包括資本結構、一組可比公司的β值和市場風險）並中間年度 約定，(i) 估計的 后稅基礎上的 從2024年6月30日到2027年日歷年底，Kellanova預計產生的無負債自由現金流量; 和 (ii) Kellanova的一系列終值。
終值是通過將據估計的Kellanova產生的無負債自由現金流量應用於 perpetuity 成長率範圍為1.50%至2.00％來衍生的。永續增長率是根據lazard的專業判斷和經驗估算的，考慮了財務預測。
拉扎德然後減去了凱拉諾瓦的淨債務 的 5,591 美元百萬，計算應收帳款 價格為 784 美元百萬、以及非控制權益 價格為 120 美元百萬，以及 添加了凱拉諾瓦對非合併實體的投資 價格為 107 美元百萬，在每宗個案截至 2024 年 6 月 29 日，並根據凱拉諾瓦提供的信息，對企業價值範圍，至 導出凱拉諾瓦的一系列總股權值。然後 Lazard 計算出每股普通股票的隱含股權價值範圍，通過將 Kellanova 的總股權值除以普通股完全稀釋股份數目 根據 Kellanova 提供有關截至 2024 年 8 月 12 日止未償還的稀釋證券的資料計算（採用庫庫股票方法確定）。此分析結果暗示每股範圍的股票價值 為 69.60 美元至 79.10 美元，四捨五入至最接近的 0.10 美元。
| b. | 修訂及重新修訂《確定代表委任聲明》第 65 頁開頭的一節下 標題「精選上市公司分析」全文如下: |
使用 公開申報和數據來源，Lazard 審查和分析了與選定的上市零食和多元化雜貨公司有關的某些財務信息，多重估價和市場交易數據（本節中稱為 「選定公司」），Lazard 根據其專業判斷和經驗認為，其營運通常與此分析目的相關。Lazard 對選定公司的這些信息進行比較 凱拉諾瓦的相應信息。
為此分析所選的公司如下：
零食
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多元化雜貨
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選定的公司都沒有與 Kellanova 直接相比，這些公司中的某些公司可能具有以下特點 與凱拉諾瓦的物質不同。基於其專業判斷和經驗，Lazard 認為，純粹的定量分析在合併的情況下並不是決定性的，而定性判斷 關於可能影響每家公司的公開交易價值的 Kellanova 和指定公司的業務、財務和營運特徵以及前景之間的差異也相關。
對於每間選定的公司，lazard回顧和比較了很多方面，其中包括(i) 選定公司的企業價值（定義為股權市值加總債務和未付帳款，加優先股和非控股權益，減未經合併實體投資，減現金及現金等價物）截至2024年8月12日，作為該選定公司估計調整後的EBITDA的倍數（定義為預估息稅折舊及攤銷前利潤，根據情況進行調整）；以及(ii) 截至2024年8月12日的股價，作為調整後EPS的倍數（定義為每股稀釋盈利，根據情況進行調整），由FactSet編制，供2025年的日歷使用。 其他 對於每間選定的公司，lazard回顧和比較了很多方面，其中包括(i) 選定公司的企業價值（定義為股權市值加總債務和未付帳款，加優先股和非控股權益，減未經合併實體投資，減現金及現金等價物）截至2024年8月12日，作為該選定公司估計調整後的EBITDA的倍數（定義為預估息稅折舊及攤銷前利潤，根據情況進行調整）；以及(ii) 截至2024年8月12日的股價，作為調整後EPS的倍數（定義為每股稀釋盈利，根據情況進行調整），由FactSet編制，供2025年的日歷使用。 其他 對於每間選定的公司，lazard回顧和比較了很多方面，其中包括(i) 選定公司的企業價值（定義為股權市值加總債務和未付帳款，加優先股和非控股權益，減未經合併實體投資，減現金及現金等價物）截至2024年8月12日，作為該選定公司估計調整後的EBITDA的倍數（定義為預估息稅折舊及攤銷前利潤，根據情況進行調整）；以及(ii) 截至2024年8月12日的股價，作為調整後EPS的倍數（定義為每股稀釋盈利，根據情況進行調整），由FactSet編制，供2025年的日歷使用。 這次分析的選定公司已包括在內，並且此分析的結果概述如下表所示：這次分析的選定公司已包括在內，並且此分析的結果概述如下表所示：
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| 已選擇公司 |
企業價值/2025E 調整後的稅前利潤減除折舊及攤銷後的費用 |
每股價格/2025E 調整後每股收益 | ||
| 零食 | ||||
| 百事可樂股份有限公司 | 14.3x | 19.6x | ||
| 德商德意志銀行 | 14.5x | 19.2x | ||
| The Hershey 公司 | 14.9x | 21.1x | ||
| 平均值 | 14.5x | 19.9x | ||
| 中位數 | 14.5x | 19.6x | ||
| 多元化的雜貨 | ||||
| The Kraft Heinz Company | 9.2x | 10.8x | ||
| 通用磨坊公司 | 12.1x | 14.7x | ||
| 康美食品公司 | 9.2x | 11.2x | ||
| 金寶湯公司 | 10.6x | 14.6x | ||
| J.m. Smucker 公司 | 9.6x | 11.0x | ||
| Post Holdings, Inc. | 9.1x | 17.1x | ||
| 平均值 | 10.0x | 13.2x | ||
| 中位數 | 9.4x | 12.9x | ||
考慮到其經驗和專業判斷，在考慮了其他事項後，例如所觀察到的倍數，Lazard 選擇並應用了一個區間，將企業價值／調整後的 EBITDA 的倍數設定為 11.00x - 13.50x，根據 Kellanova 預估的調整後 EBITDA（根據財務預測）。根據這個隱含的企業價值區間和 Kellanova 的淨債務、已計入帳戶之應收賬款、對未合併實體的投資以及非控制權益，即截至 2024 年 6 月 29 日的情況，並根據 Kellanova 提供的信息，以及股本完全稀釋的普通股股份數（使用庫藏股法確定），根據 Kellanova 提供的信息，關於截至 2024 年 8 月 12 日應經稀釋的證券情況，此分析指出每股的股權價值參考區間為 $57.20 到 $73.80，四捨五入至最接近的 $0.10。此外，考慮到其經驗和專業判斷，在考慮了其他事項後，例如所觀察到的倍數，Lazard 選擇並應用了一個區間，將價格／調整後的 EPS 的倍數設定為 14.00x - 19.00x，根據 Kellanova 2025 財政年度預測的調整後 EPS。此分析指出每股的股權價值參考區間為 $55.90 到 $75.70，四捨五入至最接近的 $0.10。
| c. | 透過將招股文件第 67 頁開始的章節，以「選定的先例交易分析」為標題，進行修訂和重述，整段內容如下: |
使用公開申報和其他公開資訊，lazard審查並分析被視為在評估併購方面普遍相關的特定先例交易。在執行這些分析時，lazard分析了與所選交易中的公司相關的某些財務資訊和交易倍數，並將此類信息與關於併購的相應信息進行比較。
具體來說，lazard已審查了自2014年7月以來宣布的十一筆食品行業收購交易，lazard根據自身經驗和專業判斷，認為這些交易對於本分析的目的通常是相關的。 以下列出了這些交易。
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在所選交易中，沒有一家目標公司與家樂氏直接可比擬，也沒有一項所選交易與該交易可比擬，而這些所選交易和目標公司中的某些可能具有與該交易和家樂氏根本不同的特徵。基於其專業判斷和經驗，lazard認為，純粹的定量分析在交易背景下並不是決定性的，在該交易的條件以及家樂氏和所選交易及目標公司的業務、財務和運營特點和前景之間的差異方面做出定性判斷，這可能影響每個所選交易和目標公司的交易倍數和交易價值也是相關的。
對於每筆所選交易，lazard根據公開申報，新聞發布和投資者關係文件中的信息，計算了交易價值（定義為基於適用交易中支付的考慮和總債務和折現應收賬款，加上優先權和非控股利益，減去未合併實體的投資，減去現金及現金等價物）為目標公司在該交易宣布時的最後十二個月調整後EBITDA的倍數，lazard稱之為“LTm調整後EBITDA”。所選交易和目標公司的財務數據基於公開信息和其他公開可獲得的信息。這一分析的結果如下表所述：
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| Announcement Date |
Acquiror |
Target |
Enterprise Value / LTM Adjusted EBITDA |
|||||
| September 2023 |
The J.M. Smucker Company | Hostess Brands, Inc. | 17.9x | |||||
| August 2023 |
Campbell Soup Company | Sovos Brands, Inc. | 19.8x | |||||
| April 2021 |
Nestlé S.A. | The Bountiful Company | 16.8x | |||||
| February 2021 |
Hormel Foods Corporation | Planters® (snacking portfolio of The Kraft Heinz Company) | 15.0x | |||||
| June 2018 |
Conagra Brands, Inc. | Pinnacle Foods, Inc. | 16.1x | |||||
| December 2017 |
Campbell Soup Company | Snyder’s Lance, Inc. | 20.9x | |||||
| December 2017 |
KKR | Unilever Spreads business | 10.0x | |||||
| July 2017 |
McCormick & Company Inc. | Reckitt Benckiser Group plc’s Food Division | 20.0x | |||||
| December 2015 |
JAB Holding Company / Mondelēz International, Inc. | Keurig Green Mountain | 13.5x | |||||
| March 2015 |
H.J. Heinz Company | Kraft Foods Group, Inc. | 15.2x | |||||
| July 2014 |
Tyson Foods, Inc. | The Hillshire Brands Company | 16.7x | |||||
| 25% Percentile |
15.1x | |||||||
| 75% Percentile |
18.9x | |||||||
| Mean |
16.5x | |||||||
| Median |
16.7x | |||||||
Based on its professional judgment after taking into account, among other things, such observed multiples for each of the selected transactions, Lazard selected an enterprise value / Adjusted LTM EBITDA multiple reference range of 15.50x – 17.50x and applied this multiple reference range to Kellanova’s estimated LTM Adjusted EBITDA as of June 29, 2024 and subtracted from it Kellanova’s net debt, factored accounts receivable, and noncontrolling interests, and added to it Kellanova’s investments in unconsolidated entities, in each case on June 29, 2024 and based on information provided by Kellanova, and divided by the number of fully diluted outstanding shares of Common Stock (determined using the treasury stock method), based on information provided by Kellanova with respect to dilutive securities outstanding as of August 12, 2024. The results of this analysis implied an equity value per share range of $78.10 to $90.20, rounded to the nearest $0.10.
| d. | By amending and restating the section beginning on page 68 of the Definitive Proxy Statement under the heading “Premia Paid Analysis” in its entirety as follows: |
Using information from public filings and other publicly available information, Lazard analyzed the premia paid for 81 all-cash selected acquisitions of publicly-traded companies in the food industry announced since January 1, 2009 with a total enterprise value over $20 billion involving a U.S. target. For each of the precedent transactions, Lazard calculated the implied premia as a percentage based on the amount by which the per share consideration in each transaction exceeded the target company’s 20-day volume-weighted average price prior to the relevant transaction.
Based on its professional judgment and experience, Lazard then applied a range of per share price premia of approximately 20.00% to 35.00%, respectively, to the closing share price of Common Stock on August 2, 2024, the last trading day before press rumors of a potential transaction, of $62.98, to calculate an implied equity value per share range of $75.60 to $85.10, rounded to the nearest $0.10.
| 3. | The section of the Definitive Proxy Statement entitled “The Merger—Opinions of Financial Advisors to Kellanova—Opinion of Goldman Sachs & Co. LLC” is hereby amended and supplemented as follows: |
| a. | By amending and restating the section beginning on page 56 of the Definitive Proxy Statement under the heading “Implied Premia and Multiple Analyses” in its entirety as follows: |
Goldman Sachs calculated the $83.50 in cash per share to be paid to the holders of shares of Common Stock pursuant to the Merger Agreement in relation to:
| • | the closing price per share of Common Stock of $62.98 on August 2, 2024, the last trading day before media reports of a potential transaction with Mars became public; |
| • | the highest trading price for the shares of Common Stock of $62.98 over the 52-week period ended August 2, 2024 (the “52-week high”); |
| • | the volume weighted average price for the shares of Common Stock of $58.09 over the thirty-day period ended August 2, 2024 (the “30-day VWAP”); and |
| • | the volume weighted average price for the shares of Common Stock of $58.69 over the ninety-day period ended August 2, 2024 (the “90-day VWAP”). |
The results of these calculations are as follows:
| Reference Price Per Share |
Implied Premium Represented by $83.50 Per Share |
|||
| Closing Price as of August 2, 2024 of $62.98 |
33 | % | ||
| 52-week high of $62.98 (undisturbed) |
33 | % | ||
| 30-day VWAP of $58.09 (undisturbed) |
44 | % | ||
| 90-day VWAP of $58.69 (undisturbed) |
42 | % | ||
Goldman Sachs calculated the implied equity value of Kellanova by multiplying the $83.50 per share of Merger Consideration to be paid pursuant to the Merger Agreement by the number of fully diluted outstanding shares of Common Stock as of August 12, 2024, as provided by the management of Kellanova and approved for Goldman Sachs’ use by Kellanova, using the treasury stock method. Goldman Sachs then calculated the implied enterprise value for Kellanova by adding to Kellanova’s implied equity value the amount of Kellanova’s adjusted net debt (including financial net debt of $5,591 million and adjustments for noncontrolling interest of $120 million, investments in unconsolidated entities of $(107) million and factored receivables of $784 million) as of June 30, 2024, as provided by the management of Kellanova and approved for Goldman Sachs’ use by Kellanova.
Using that information, Goldman Sachs calculated the following with respect to Kellanova:
| • | Kellanova’s implied enterprise value as a multiple of the EBITDA of Kellanova for the twelve month period ended June 30, 2024, as provided by Kellanova’s management; and |
| • | Kellanova’s implied enterprise value as a multiple of the EBITDA of Kellanova for fiscal years 2024, 2025, and 2026, in each case as reflected in the Projections. |
The results of these calculations were as follows:
| Multiples | ||||
| Implied Enterprise Value as a Multiple of: |
||||
| Q2 2024 LTM EBITDA |
16.4x | |||
| FY2024E EBITDA |
16.0x | |||
| FY2025E EBITDA |
14.9x | |||
| FY2026E EBITDA |
14.0x | |||
| b. | By amending and restating the section beginning on page 57 of the Definitive Proxy Statement under the heading “Illustrative Discounted Cash Flow Analysis” in its entirety as follows: |
Using the Projections, Goldman Sachs performed an illustrative discounted cash flow analysis on Kellanova to derive a range of illustrative equity values per share of Common Stock. Using the mid-year convention for discounting cash flows and discount rates ranging from 6.00% to 7.00%, reflecting estimates of Kellanova’s weighted average cost of capital, Goldman Sachs discounted to present value, as of June 30, 2024, (i) estimates of unlevered free cash flow for Kellanova for the period from July 1, 2024 to December 31, 2027, as reflected in the Projections, and (ii) a range of illustrative terminal values for Kellanova, which were calculated by applying a range of EV/LTM EBITDA multiples ranging from 12.0x to 14.0x, to an estimate of adjusted EBITDA to be generated by Kellanova in calendar year 2027, as reflected in the Projections (which analysis implied perpetuity growth rates ranging from 1.0% to 2.6%). The range of EV/LTM EBITDA multiples was estimated by Goldman Sachs utilizing its professional judgment and experience, taking into account historical trading multiples of Kellanova and certain publicly traded companies, as described below in the section captioned “Selected Publicly Traded Companies Trading Multiples.” Goldman Sachs derived such discount rates by application of the Capital Asset Pricing Model (“CAPM”), which requires certain company-specific inputs, including Kellanova’s target capital structure weightings, the cost of long-term debt, after-tax yield on permanent excess cash, if any, future applicable marginal cash tax rate and a beta for Kellanova, as well as certain financial metrics for the United States financial markets generally.
Goldman Sachs derived a range of illustrative enterprise values for Kellanova by adding the ranges of present values it derived
above. Goldman Sachs then subtracted from the range of illustrative enterprise values it derived for Kellanova the amount of Kellanova’s adjusted net debt (including financial net debt of
$5,591 million and adjustments for noncontrolling interest of $120 million, investments in unconsolidated entities of $(107) million and factored
receivables of $784 million) as of June 30, 2024, as provided by the management of Kellanova and approved for Goldman Sachs’ use by Kellanova, to derive a range of illustrative equity values for Kellanova. Goldman Sachs then
divided the range of illustrative equity values it derived by the number of fully diluted outstanding shares of Common Stock as of August 12, 2024, based on the share count, as provided by the management of Kellanova
and approved for Goldman Sachs’ use by Kellanova, using the treasury stock method with the undisturbed price as of August 2, 2024, to derive a range of illustrative equity values per share of Common Stock of $68.42 to $83.82.
| c. | By amending and restating the section beginning on page 58 of the Definitive Proxy Statement under the heading “Illustrative Present Value of Future Share Price Analysis” in its entirety as follows: |
Using the Projections, Goldman Sachs performed an illustrative analysis of the implied present value of an illustrative future value per share of Common Stock. For this analysis, Goldman Sachs first calculated the implied enterprise value of Kellanova as of December 31 for each of the calendar years 2024 through 2026, by applying a range of illustrative EV/NTM EBITDA multiples of 11.5x to 14.5x to estimates of Kellanova’s one-year forward adjusted EBITDA as of December 31 for each of the calendar years 2024 through 2026, respectively. This illustrative range of EV/NTM EBITDA multiple estimates was derived by Goldman Sachs utilizing its professional judgment and experience, taking into account current and historical EV/NTM EBITDA multiples for Kellanova and certain publicly traded companies, as described below in the section captioned “Selected Publicly Traded Companies Trading Multiples.”
Goldman Sachs then subtracted the amount of Kellanova’s projected adjusted net debt
(including for each of the calendar years 2024 through 2026. This included financial net debt of $5,500, $5,449 and $5,349 million for 2024, 2025 and 2026 respectively. Each
projected year also accounted for and adjustments for noncontrolling interest of $120 million, investments in unconsolidated entities of $(107) million and
factored receivables of $784 million) as of June 30, 2024, as. These figures were provided by the management of Kellanova and approved for Goldman
Sachs’ use by Kellanova, from the respective implied enterprise values in order to derive a range of illustrative equity values for Kellanova as of December 31 for each of the calendar years 2024 through 2026. Goldman Sachs then divided
these implied equity values by the projected year-end number of fully diluted outstanding shares of Common Stock for each of the calendar years 2024 through 2026, calculated using information provided by the
management of Kellanova and approved for Goldman Sachs’ use by Kellanova, to derive a range of implied future values per share of Common Stock (excluding dividends). Goldman Sachs then added the cumulative dividends per Common Stock expected to
be paid to holders of Common Stock of $1.14 per share, $3.44 per share and $5.78 per share through the end of each of calendar years 2024 through, 2025 and 2026, respectively, using the
Projections, to derive a range of implied future values per share of Common Stock (including dividends). By applying an illustrative discount rate of 6.9%, reflecting an estimate of Kellanova’s cost of equity, and using a mid-year convention, Goldman Sachs discounted to present value as of June 30, 2024 both the theoretical future values per share of Common Stock it derived for Kellanova and the estimated dividends to be paid
per share of Common Stock of $1.14 per share, $3.44 per share and $5.78 per share through the end of each of calendar years 2024 through, 2025 and 2026, respectively. Goldman Sachs derived such discount
rate by application of the CAPM, which requires certain company-specific inputs, including a beta for Kellanova, as well as certain financial metrics for the United States financial markets generally. This analysis resulted in a range of implied
equity values per share of Common Stock of $60.93 to $90.01.
| d. | By amending and restating the section beginning on page 58 of the Definitive Proxy Statement under the heading “Premia Paid Analysis” in its entirety as follows: |
Goldman Sachs reviewed and analyzed, using publicly available information, the acquisition premia paid in 50 selected all-cash or cash-and-stock acquisition transactions announced during the period from January 1, 2008 through August 12, 2024 involving U.S. publicly traded target companies with a transaction value equal to or greater than $20 billion where the buyer is not a financial buyer. Using publicly available information, Goldman Sachs calculated the median, 25th percentile and 75th percentile average premia of the price paid in the observed transactions relative to the target’s last undisturbed closing share price prior to announcement of the respective transaction and the target’s 52-week high closing share price. The following table presents the results of this analysis:
| Precedent Premia Paid |
Undisturbed Share Price |
52-Week High Share Price |
||||||
| Median |
27 | % | 13 | % | ||||
| 25th Percentile |
14 | % | 7 | % | ||||
| 75th Percentile |
32 | % | 23 | % | ||||
Based on Goldman Sachs’ review of the foregoing data and its professional judgment and experience, Goldman Sachs applied (i) with respect to the precedent premia paid relative to undisturbed share price, a reference range of illustrative premia of 14% to 32%, and (ii) with respect to the precedent premia paid relative to 52-week high share price, a reference range of illustrative premia of 7% to 23%, in each case to the undisturbed and 52-week high closing price of Common Stock on August 2, 2024 of $62.98. This analysis resulted in a range of implied equity values per share of Common Stock of (i) with respect to the precedent premia paid relative to undisturbed share price, $71.80 to $83.13, and (ii) with respect to the precedent premia paid relative to 52-week high share price, $67.39 to $77.47.
| e. | By amending and restating the section beginning on page 59 of the Definitive Proxy Statement under the heading “Precedent Transaction Multiples” in its entirety as follows: |
Goldman Sachs analyzed certain publicly available information relating to the following selected transactions in the food industry since 2008. For each of the selected transactions where information was publicly available, Goldman Sachs calculated and compared the implied EV/FY1 (or next fiscal year) EBITDA of the applicable target company based on the total Merger Consideration paid in the transaction as a multiple of the target company’s FY1 EBITDA based on the closest available broker estimate at the time
each such selected transaction was announced. While none of the companies that participated in the selected transactions are directly comparable to Kellanova, the companies that participated in the selected transactions are companies with operations that, for the purposes of analysis, may be considered similar to certain of Kellanova’s results, industry size and product profile.
The following table presents the results of this analysis:
| Food Selected Precedent Transactions | ||||||||
| Announcement Date |
Target |
Acquiror |
Value ($bn) |
EV/FY1 | ||||
| Sept 2023 |
Hostess Brands, Inc. |
J. M. Smucker Co. |
$5.5 | 17.2x | ||||
| June 2018 |
Pinnacle Foods |
Conagra Brands, Inc. |
$10.9 | 15.9x | ||||
| Dec 2017 |
Snyder’s-Lance, Inc. |
Campbell Soup Company |
$6.1 | 19.6x | ||||
| Sept 2017 |
Bob Evans Farms, Inc. |
Post Holdings, Inc. |
$1.6 | 15.1x | ||||
| Feb 2017 |
Mead Johnson Nutrition Company |
Reckitt Benckiser Group plc |
$17.9 | 18.9x | ||||
| July 2016 |
The WhiteWave Foods Co. |
Danone S.A. |
$12.4 | 21.5x | ||||
| Mar 2015 |
Kraft Foods Group |
H.J. Heinz Holding Corporation |
$55.3 | 15.5x | ||||
| July 2014 |
The Hillshire Brands Company |
Tyson Foods, Inc. |
$8.6 | 16.2x | ||||
| Feb 2013 |
H.J. Heinz Company |
Berkshire Hathaway and 3G Capital |
$27.6 | 13.4x | ||||
| Jan 2010 |
Cadbury plc |
Kraft Foods Group |
$21.6 | 12.1x | ||||
| Apr 2008 |
Wm. Wrigley Jr. Company |
Mars, Incorporated |
$23.0 | 17.6x | ||||
| Median |
16.2x | |||||||
Based on the results of the foregoing calculations and Goldman Sachs’ analyses of the
various transactions and its professional judgment and experience, Goldman Sachs selected a reference range of EV/FY1 EBITDA multiples of 12.1x to 21.5x and applied such range to Kellanova’s FY1 EBITDA, as provided by the management of
Kellanova, to derive a range of implied enterprise values for Kellanova. Goldman Sachs then subtracted from the range of implied enterprise values the amount of Kellanova’s adjusted net debt (including financial net debt of
$5,591 million and adjustments for noncontrolling interest of $120 million, investments in unconsolidated entities of $(107) million and factored
receivables of $784 million) as of June 30, 2024, as provided by the management of Kellanova and approved for Goldman Sachs’ use by Kellanova, to derive a range of illustrative equity values for Kellanova. Goldman Sachs
divided the results by the number of fully diluted outstanding shares of Common Stock as of August 12, 2024based on the share count, as provided by the management of Kellanova and approved for Goldman
Sachs’ use by Kellanova, using the treasury stock method with the undisturbed price as of August 2, 2024, to derive a range of implied equity values per share of Common Stock of $58.81 to $118.63.
Forward-Looking Statements
This Current Report on Form 8-K contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended, including statements regarding the Merger, shareowner approvals, the expected timetable for completing the Merger, the expected benefits of the Merger, and any other statements regarding the Company’s future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts. This information may involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: failure to obtain the required vote of the Company’s shareowners in connection with the Merger; the timing to consummate the Merger and the risk that the Merger may not be completed at all or the occurrence of any event, change, or other circumstances that could give rise to the termination of the Merger Agreement, including circumstances requiring a party to pay the other party a termination fee pursuant to the Merger Agreement; the risk that the conditions to closing of the Merger may not be satisfied or waived; the risk that a governmental or regulatory approval that may be required for the Merger is not obtained or is obtained subject to conditions that are not anticipated; potential litigation relating to, or other unexpected costs resulting from, the Merger; legislative, regulatory, and economic developments; risks that the proposed transaction disrupts the Company’s current plans and operations; the risk that certain restrictions during the pendency of the proposed transaction may impact the Company’s ability to pursue certain business opportunities or strategic transactions; the diversion of management’s time on transaction-related issues; continued availability of capital and financing and rating agency actions; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the Company’s Company Common Stock, credit ratings or operating results; and the risk that the proposed transaction and its announcement could have an adverse effect on the ability to retain and hire key personnel, to retain customers and to maintain relationships with business partners, suppliers and customers. The Company can give no assurance that the conditions to the Merger will be satisfied, or that it will close within the anticipated time period.
All statements, other than statements of historical fact, should be considered forward-looking statements made in good faith by the Company, as applicable, and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this communication, or any other documents, words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “objective,” “plan,” “project,” “seek,” “strategy,” “target,” “will” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the beliefs and assumptions of management at the time that these statements were prepared and are inherently uncertain. Such forward-looking statements are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties, as well as other risks and uncertainties that could cause the actual results to differ materially from those expressed in the forward-looking statements, are described in greater detail under the heading “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 30, 2023 filed with the SEC and in any other SEC filings made by the Company. The Company cautions that these risks and factors are not exclusive. Management cautions against putting undue reliance on forward-looking statements or projecting any future results based on such statements or present or prior earnings levels. Forward-looking statements speak only as of the date of this communication, and, except as required by applicable law, the Company does not undertake any obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made.
Additional Information and Where to Find It
This Current Report on Form 8-K is being made in respect to the proposed transaction involving the Company and Acquiror. The Company has filed a definitive proxy statement and a form of proxy card with the SEC in connection with the solicitation of proxies for the special meeting of the Company’s stockholders (the “Definitive Proxy Statement”). Any vote in respect of resolutions to be proposed at the Company’s stockholder meeting to approve the merger or other responses in relation to the merger should be made only on the basis of the information contained in the Definitive Proxy Statement. Beginning on September 26, 2024, stockholders were mailed the Definitive Proxy Statement. Investors may obtain free copies of the Definitive Proxy Statement and other documents filed by the Company with the SEC at http://www.sec.gov, the SEC’s website, from the Company’s website (https://investor.Kellanova.com), or by directing a request to Investor Relations at https://investor.Kellanova.com.
THE COMPANY URGES INVESTORS TO READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER MATERIALS FILED WITH THE SEC OR INCORPORATED BY REFERENCE INTO THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY AND THE MERGER.
No Offer or Solicitation
This Current Report on Form 8-K is for information purposes only and is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer or invitation to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Participants in the Solicitation
The Company, its directors and certain of its officers and employees, may be deemed to be participants in the solicitation of proxies from Company stockholders in connection with the merger. Information about the Company’s directors and executive officers is set forth under the captions “Proposal 1—The Merger—Interests of Kellanova’s Directors and Officers” and “Certain Beneficial Owners of Common Stock—Officer and Director Stock Ownership” sections of the Definitive Proxy Statement filed with the SEC on September 26, 2024, under the captions “Proposal 1—Election of Directors,” “Corporate Governance,” “Board and Committee Membership,” “2023 Director Compensation and Benefits,” “Directors’ Compensation Table,” “Compensation and Talent Management Committee Report—Compensation Discussion and Analysis,” “Executive Compensation,” “Retirement and Non-Qualified Defined Contribution and Deferred Compensation Plans,” “Potential Post-Employment Payments,” “Pay versus Performance,” “CEO Pay Ratio” and “Stock Ownership—Officer and Director Stock Ownership” sections of the definitive proxy statement for the Company’s 2024 annual meeting of shareowners, filed with the SEC on March 4, 2024, under the caption “Executive Officers” of Item 1 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023, filed with the SEC on February 20, 2024, in the Company’s Current Reports on Form 8-K filed with the SEC on January 12, 2024, February 22, 2024, and May 1, 2024 and in the Company’s January 12, 2024 press release found on its Investor Relations page at https://investor.Kellanova.com, relating to the appointment of President Kellanova North America and President, Kellanova Latin America. Additional information regarding ownership of the Company’s securities by its directors and executive officers is included in such persons’ SEC filings on Forms 3 and 4. These documents may be obtained free of charge at the SEC’s web site at www.sec.gov and on the Investor Relations page of the Company’s website located at https://investor.Kellanova.com. Additional information regarding the interests of participants in the solicitation of proxies in connection with the merger is set forth in the Definitive Proxy Statement and other materials to be filed with the SEC in connection with the special meeting of the Company’s stockholders. These documents can be obtained free of charge from the sources indicated above.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Kellanova | ||
| By: | /s/ Amit Banati | |
| Name: | Amit Banati | |
| Title: | Vice Chairman and Chief Financial Officer | |
Dated: October 21, 2024