X act 'a count on it'

Acquisition of Whole Earth Naturals

Campbell, Gilliam, Hardy, Moshofsky & Smith

Financial BenefitsFinancial Benefits

RisksRisks

Whole Earth NaturalsWhole Earth Naturals

Operational BenefitsOperational Benefits

Naturals MarketNaturals Market

Global OperationGlobal Operation

Strong Customer BaseStrong Customer Base

Inventors of NaturalsInventors of Naturals


“The company’s manufacturing facilities and global supply chain are world class and, because of the efficacy and quality of its products, it now supplies customers in morethan 25 countries.”


RisksRisks



Supply Chain RelationsSupply Chain Relations

Organizational FitOrganizational Fit

World Class FacilitiesWorld Class Facilities

Latin America ExposureLatin America Exposure

“Whole Earth Naturals is therecognized marketplace leader in Latin America and Europe”

Consistency Consistency

Customer BaseCustomer Base

First Movers AdvantageFirst Movers Advantage


RisksRisks



ProfitabilityProfitability

Sales increased 17.8% in 2010 and 12.1% in 2009

Operating Profit increased 11.1% in 2010 and 5.9% in 2009

ValuationValuation

EBITDA = $87 Mil. EBITDA = $87 Mil.

Multiplied by 4 - 6 = Multiplied by 4 - 6 = $348 - $522 $348 - $522 Mil.Mil.

GrowthGrowth

"Industry analysts continue to forecast real market growth for naturals products"


RisksRisks



LiquidityLiquidity

Current Ratio: Current Ratio: 0.9380.938

High Level of DebtHigh Level of Debt

Debt Ratio: 0.689Debt Ratio: 0.689

Streamline DebtStreamline Debt

Interest Exp. = Half of Operating ProfitInterest Exp. = Half of Operating Profit

Refinance debt with low interest rate Refinance debt with low interest rate

Issues With ImageIssues With Image

Expansion Risks

Proceed With AcquisitionProceed With Acquisition

X act 'a count on it'

Business

earth naturalscampbell

imageexpansion risks