FREE (Update)

Whole Earth Brands Inc

Consumer, SPAC


Presented:01/22/2021
Price:$11.89
Cap:$0.46B
Current Price:$4.87
Cap:$0.21B

Presented

Date01/22/2021
Price$11.89
Market Cap$0.46B
Ent Value$0.42B
P/E RatioN/A
Book Value$8.00
Div Yield0%
Shares O/S38.43M
Ave Daily Vol462,764
Short Int2.26%

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.

Please note, this is an update to Long - Whole Earth Brands Inc (FREE), which was originally presented on 09/07/2020.

Publicly traded companies mentioned herein: Ingredion Inc (INGR), Tate & Lyle PLC (TATE LN), Whole Earth Brands Inc (FREE)

Highlights

The presenter is long shares of Whole Earth Brands Inc (FREE), an asset that was acquired from Ron Perelman’s MacAndrews & Forbes. FREE has two main businesses: a global CPG business made up of a brand portfolio of low caloric sweeteners (e.g., Whole Earth, PureVia, Equal, Canderal); and a Flavors & Ingredients (F&I) business, which is a global supplier of natural licorice extract and derivative products used in tobacco and other CPG products. Recently, the company has made a number of acquisitions including entering a definitive agreement to acquire Wholesome Sweeteners, a leading organic sweetener brand. These deals will help to position FREE in the right markets, give it the ability to cross-sell, and will provide synergies going forward. Putting this together, the presenter believes FREE will be able to execute on its low-to-mid single-digit organic growth plan and thus should trade at an EBITDA multiple closer to CPG peers.

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Idea Discussion

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