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Business Case Study: American Seafoods Company

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ABREVIATIONS ASC=American Seafoods Company CV= Company Value DPVI=Distributed Value to Paid-In ratio EV= Enterprise Value EBITDA= Earnings Before Interest, Taxes, Depreciation, and Amortization IRR= Internal Return Rate MOIC=Multiple of Invested Capital TVPI= Total Value to Paid-In ratio 2 Price and Deal Performance 2003 In January 2000, Centre Partners (CP) and the management acquired American Seafoods Corporation (ASC) through a sale with a total price of $477.9mn, including $77.5mn in equity and $400.4mn in debt . CP exited their investment in 2006 with total proceeds of $239m . We present a valuation of the company by December of 2003 in order to get a reasonable price for the equity owned by CP and its meaning in terms of deal performance …show more content…

EBITDA 113.3 64% 117 72.9 75.2 Total interest bearing obligations 573.1 91% 595.1 523.1 543.2 Ilustración 4 Summary Financial Information ASC 2002-2003 Regarding benchmarking and the EV/ Adj. EBITDA multiple calculation The financial data of the peer companies High Liner Foods Inc., Pescanova SA and Thai Union Group concerning Adj. EBITDA and EV is provided in the figures 3, 4 and 5 and the calculation of the EV/ Adj. EBITDA multiple. Company High Liner Foods Inc. (in mn USD) 1999 2000 2001 2002 2003 2004 2005 2006 Adj. EBITDA 8.3 18.7 18.5 18.2 16.1 14.4 8.3 11.6 EV 112.3 103.3 104.5 107.9 113.8 113.7 119.6 104.3 EV/Adj. EBITDA Multiple 13.5 5.5 5.6 5.9 7.1 7.9 14.4 9.0 Ilustración 5 Financial data High Liner Foods Inc. Company Pescanova SA (in mn USD) 1999 2000 2001 2002 2003 2004 2005 2006 Adj. EBITDA 0.0 0.0 49.5 57.3 75.2 80.2 96.0 138.4 EV 263.2 292.2 296.8 358.7 480.6 599.7 790.5 1,034.3 EV/Adj. EBITDA Multiple 6.0 6.3 6.4 7.5 8.2 7.5 Ilustración 6 Financial data Pescanova SA Company Thai Union Group (in mn USD) 1999 2000 2001 2002 2003 2004 2005 2006 Adj. EBITDA 58.7 48.9 58.0 72.7 78.5 74.0 87.2

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