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supermarket_mergers

M&A activity in the food and beverage industry is being driven predominately by strategic acquirers, with strategic acquisitions having represented 89 percent of total deal flow in North America last year, according to Duff & Phelps. In 2019 strategic buyers have…

M&A activity in the food and beverage industry is being driven predominately by strategic acquirers, with strategic acquisitions having represented 89 percent of total deal flow in North America last year, according to Duff & Phelps. In 2019 strategic buyers have continued to account for the largest portion of deal activity, comprising over 90 percent of transactions till date.

Capstone Headwaters reported 96 announced or completed transactions in the United States this year, a 23 percent increase compared to the same time in 2018. Segments such as functional foods, meat and dairy alternatives, and healthy snacks have continued to grow, according to Baker Tilly, and several smaller brands continue to be pursued by larger companies as these acquirers look to gain entry into niche markets.

Notable transactions this year:

Highlander Partners acquired Evans Food Group

Benestar Brands, the food platform of mid-market private investment firm Highlander Partners, acquired Evans Food Group from Wind Point Partners. Evans Food is a seller of pork products, and specifically pork rinds, with five manufacturing operations in the United States and one in Saltillo, Mexico. The acquisition further strengthens Highlander’s focus on the ‘better-for-you’ salty snack category.

Campbell Soup’s international operations were purchased by KKR

Private equity firm KKR & Co. agreed to acquire certain international operations of Campbell Soup Co., including the Arnott’s biscuits business and Campbell’s simple meals business in Australia and in Asia Pacific. Arnott’s is a seller of cookies and crackers under the Arnott’s and TimTam brands.

Mars Inc. acquired Foodspring

Mars, Inc. acquired a majority stake in Foodspring, a Berlin-based direct-to-consumer targeted nutrition company. Foodspring will continue to remain a standalone brand within the Mars portfolio. The company offers sports performance and healthy living products such as protein shakes, supplements, snacks and bars, muesli and porridge. This acquisition is one of the several acquisitions of functional foods and drinks that have occurred over the past year as consumers increasingly prefer superfoods, supplements and healthy options.

Kayco to buy Manischewitz’s kosher food business

Kenover Marketing Corp. (Kayco), a major kosher food distributor, agreed to acquire The Manischewitz Company, a large manufacturer of kosher foods, Food Dive reported. Kayco’s acquisition along the value chain has strengthened its position in the market as a specialist manufacturer and distributor of kosher food.

CJ CheilJedang acquired The Schwan Food Company Inc.

CJ CheilJedang, a South Korean food conglomerate acquired privately held frozen foods firm Schwan’s Co, in a bid to strengthen CJ’s position in the U.S. market. Schwan’s brands include Red Baron, Tony’s, Big Daddy’s, Mrs. Smith’s and Edwards desserts, Pagoda Asian-style snacks, and Schwan’s frozen foods. The transaction includes 80 percent of Schwan’s Company and retail and grocery subsidiaries. The transaction is CJ CheilJedang’s biggest acquisition till date, according to Reuters.

 

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