InSight

Exit and Growth Strategies for Middle Market Businesses

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

By Terry Fick | Dec 05, 2019

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 2019 included 49 closed deals, according to data published by industry data tracker FactSet.
The Hershey Co acquired One Brands LLC, formerly known as Oh Yeah! Nutrition and a portfolio company of CAVU Venture Partners LLC, for US$397 million in cash, subject to certain adjustments. The acquisition complements The Hershey Co’s existing Oatmega business. The transaction is expected to be accretive to the earnings per share of The Hershey Co. Founded in 1999, One Brands is located in Charlotte, North Carolina and manufactures protein bars.

Industry Indicators

  • US consumer spending on nondurable goods, an indicator of soft drink sales fell 0.6% in September 2019 compared to the same month in 2018.
  • The consumer price index for food, an indicator of soft drink value, rose 2.1% in October 2019 compared to the same month in 2018.
  • US nondurable goods manufacturers’ shipments of beverages, an indicator of soft drink demand, fell 0.1% year-to-date in September 2019 compared to the same period in 2018.
  • US personal income, which drives demand for soft drinks rose 4.9% in September 2019 compared to the same month in 2018.

Posted by Terry Fick.

Read the Entire Food and Beverage 4th Quarter Newsletter Here


Leave a Comment