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Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Food and Beverage Industry Sector

By Terry Fick | Nov 28, 2018

The report below gives a good overview of the fourth quarter M&A activity in the Food and Beverage Industry Sector.  M&A activity for North American based target companies in the Food and Beverage sector for Q3 2018 included 45 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in September when The Hershey Co. acquired Pirate Brands, LLC from B&G Foods, Inc. for US$420 million in cash, subject to adjustments. The Hershey Co. engages in the manufacture and marketing of chocolate and sugar confectionery products. Pirate Brands operates as a natural snack food maker. Its products include baked, fried and air popped snacks. The company offers its products through stores in the US, Canada, Europe and Asia. The company was founded in 1987 and is headquartered in Sea Cliff, NY.

Industry Indicators

  • The consumer price index for food, an indicator of food product values, rose 1.4% in September 2018 compared to the same month in 2017.
  • US nondurable goods manufacturers’ shipments of food products, an indicator of demand for food manufacturing, rose 1.8% year-to-date in August 2018 compared to the same period in 2017.
  • US retail sales for food and beverage stores, a potential measure of food demand, increased 3.8% in the first nine months of 2018 compared to the same period in 2017.
  • Total US wholesale sales of nondurable goods, a potential measure of food demand, rose 8.8% in August 2018 compared to the same period in 2017.

Posted by Terry Fick.

Read the Entire Food & Beverage 4th Quarter Newsletter Here


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