InSight

Exit and Growth Strategies for Middle Market Businesses

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

By Terry Fick | Jun 15, 2018

The second quarter M&A 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 Q1 2018 included 38 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in January when Highlander Partners LP acquired Chicago Custom Foods LLC, trading as Kernel Season’s from VMG Equity Partners LLC for an undisclosed amount in cash. The transaction was funded by Regions Bank and Norwest Mezzanine Partners. The acquisition allows Highlander Partners to expand its investment portfolio and enables it to focus on food companies and the CPG sector in general. Founded in 2000, Chicago Custom Foods LLC is located in Elk Grove Village, Illinois and provides popcorn seasonings and other snack products.

The cost of food in the United States increased 1.40 percent in April of 2018 over the same month in 2017.

Industry Indicators

  • The consumer price index for food, an indicator of food product values, rose 1.4% in April 2018 compared to the same month in 2017.
  • US nondurable goods manufacturers’ shipments of food products, an indicator of demand for food manufacturing, rose 3.6% year-to-date in March 2018 compared to the same period in 2017.
  • US retail sales for food and beverage stores, a potential measure of food demand, increased 3.4% in the first four months of 2018 compared to the same period in 2017.

Posted by Terry Fick.

Read the Entire Food & Beverage 2nd Quarter Newsletter Here


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