FREE

Whole Earth Brands Inc

Consumer, SPAC


Presented:09/01/2020
Price:$8.17
Cap:$0.31B
Current Price:$4.87
Cap:$0.21B

Presented

Date09/01/2020
Price$8.17
Market Cap$0.31B
Ent Value$0.40B
P/E Ratio177.22x
Book Value$8.02
Div Yield0%
Shares O/S37.50M
Ave Daily Vol1,504,356
Short Int1.63%

Current

Price$4.87
Market Cap$0.21B
Whole Earth Brands, Inc. is a global platform of branded products and ingredients focused on the consumer transition towards natural alternatives, plant-based, clean label, and non-sugar products. The firm operates through the following segments: Branded CPG and Flavors and Ingredients. The Branded CPG segment includes tabletop zero-calorie sweetener category products. The Flavors and Ingredients segment manufactures licorice extract and derivative products. Its brands include equal, Canderel, WHOLE EARTH, and PURE VIA. The company was founded on August 16, 2018 and is headquartered in Chicago, IL.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Costco Wholesale Corp (COST), Ingredion Inc (INGR), Procter & Gamble Co/The (PG), Starbucks Corp (SBUX), Tate & Lyle PLC (TATE LN), Unilever NV (UN), Whole Earth Brands Inc (FREE)

Highlights

The presenter is long shares of Whole Earth Brands Inc (FREE), which is the result of a SPAC combination that closed in June 2020. FREE is a busted SPAC that currently trades at ~$8 per share. The company is comprised of two main businesses: Branded CPG, a global CPG business focused on building a branded portfolio oriented toward serving customers seeking zero-calorie, low-calorie, natural, no-sugar-added, and plant-based products (e.g., Equal, Canderel, Whole Earth, Pure Via); and Flavors & Ingredients (F&I), a global supplier of licorice-derived products for CPG and tobacco companies. The company has been stable historically, and the presenter is excited about a new sweetener opportunity. He views the current ~$8 as cheap, both relative to comps and given its growth opportunity. If the company can execute going forward, he sees strong upside from the current 5.6x EBITDA valuation. 

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Idea Discussion

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