The report below gives a good overview of the third 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 Q2 2019 included 48 closed deals, according to data published by industry data tracker FactSet.
One of the notable middle market transactions in the sector was announced in June when Butterfly Equity LP acquired Wm Bolthouse Farms, Inc. from Campbell Soup Co for US$510 million in cash, subject to customary adjustments. Founded in 1915, Wm Bolthouse Farms is located in Bakersfield, California and engages in growing and processing carrots. The deal was subject to customary closing conditions and was expected to close by the end of Campbell Soup Co’s fiscal year 2019.
- The consumer price index for food, an indicator of food product values, rose 1.8% in July 2019 compared to the same month in 2018.
- US nondurable goods manufacturers’ shipments of food products, an indicator of demand for food manufacturing, fell 0.4% year-to-date in June 2019 compared to the same period in 2018.
- US retail sales for food and beverage stores, a potential measure of food demand, increased 2.8% in the first seven months of 2019 compared to the same period in 2018.
- Total US wholesale sales of nondurable goods, a potential measure of food demand, dropped 3.1% in June 2019 compared to the same period in 2018.
Posted by Terry Fick.