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Exit and Growth Strategies for Middle Market Businesses

M&A News In The Food and Beverage Industry

By Terry Fick | Sep 19, 2017

The 3rd Quarter M&A report below provides you a good overview on activities in the Food and Beverage Industry Sector. M&A activity for North American based target companies in the Food and Beverage sector for Q2 2017 included 37 closed deals, according to data published by industry data tracker FactSet. The average transaction value was $89 million.

One of the largest deals of the quarter closed in April when Tyson Foods, Inc. acquired  AdvancePierre Foods Holdings, Inc. for US$3.2 billion in cash, via tender offer. Based in Cincinnati, Ohio, AdvancePierre Foods Holdings produces and supplies sandwich products for foodservice and retail customers, schools, and convenience channels. The merger complements and expands existing business.

Farm and wholesale food prices continue to remain low, which is beneficial to consumers but limiting to retail profits.

Industry Indicators

  • The consumer price index for food, an indicator of food product values, rose 0.9% in June 2017 compared to the same month in 2016.
  • US nondurable goods manufacturers’ shipments of food products, an indicator of demand for food manufacturing, rose 4.3% year-to-date in May 2017 compared to the same period in 2016.
  • US retail sales for food and beverage stores, a potential measure of food demand, increased 1.9% in the first six months of 2017 compared to the same period in 2016.

Posted by Terry Fick.

Read the Entire Food & Beverage 3rd Quarter Newsletter Here


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