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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 | Jun 21, 2019

The report below gives a good overview of the second 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 Q1 2019 included 48 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in February when PepsiCo, Inc. acquired CytoSport, Inc. from Hormel Foods Corp for US$465 million in cash. Included in the acquisition are the Muscle Milk and Evolve Brands. CytoSport is located in California and manufactures nutritional supplement products.

Industry Indicators

  • The consumer price index for food, an indicator of food product values, rose 2.1% in February 2019 compared to the same month in 2018.
  • US nondurable goods manufacturers’ shipments of food products, an indicator of demand for food manufacturing, remained flat from February 2018 to February 2019.
  • US retail sales for food and beverage stores, a potential measure of food demand, increased 1.4% in the first three months of 2019 compared to the same period in 2018.
  • Total US wholesale sales of nondurable goods, a potential measure of food demand, rose 0.8% in February 2019 compared to the same period in 2018.

Posted by Terry Fick.

Read the Entire Food and Beverage 2nd Quarter Newsletter Here


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