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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 | Mar 19, 2019

The report below gives a good overview of the first 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 Q4 2018 included 76 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in November when Kerry Group Plc acquired Fleischmann’s Vinegar Co., Inc. from Green Plains, Inc. for US$353.9 million in cash. Kerry Group engages in the manufacturing and distribution of food and beverages. Fleischmann’s Vinegar Co. manufactures and produces industrial vinegar and cooking wine. The company was founded in 2002 and is headquartered in Cerritos, CA.

Industry Indicators

  • The consumer price index for food, an indicator of food product values, rose 1.6% in January 2019 compared to the same month in 2018.
  • US nondurable goods manufacturers’ shipments of food products, an indicator of demand for food manufacturing, rose 1.3% year-to-date in November 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 2018 compared to 2017.
  • Total US wholesale sales of nondurable goods, a potential measure of food demand, rose 9.3% in October 2018 compared to the same period in 2017.

Posted by Terry Fick.

Read the Entire Food and Beverage 1st Quarter Newsletter Here


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