Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Agriculture Industry Sector

By Dan Halvorson | Sep 26, 2019

The report below gives a good overview of the third quarter M&A activity in the Agriculture Industry Sector. M&A activity for North American based target companies in the Agriculture sector for Q2 2019 included 19 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in May Indus Holdings, Inc. acquired Humble Flower Co for an undisclosed amount in cash. The transaction enhances Indus Holdings’ portfolio of service offerings. Founded in 2016 Humble Flower engages in cultivating, extracting, producing and distributing cannabis products.

Industry Indicators

  • The consumer price index for food, an indicator of agriculture product values, rose 1.8% in July 2019 compared to the same month in 2018.
  • The average US retail price for diesel and regular gas, a major operating cost in the agriculture and forestry sector, fell 6.4% and 7.7%, respectively, in the week ending August 12, 2019, compared to the same week in 2018.
  • US durable goods manufacturers’ shipments of wood products, an indicator of demand for agriculture and forestry products, fell 2.9% year-to-date in June 2019 compared to the same period in 2018.
  • US nondurable goods manufacturers’ shipments of food products, an indicator of agricultural product demand, fell 0.4% year-to-date in June 2019 compared to the same period in 2018.

Posted by Dan Halvorson.

Read the Entire Agriculture 3rd Quarter Newsletter Here

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