The food industry garnered more than 100 closed M&A deals in the first six months of 2018. While Amazon’s $13.7 billion acquisition of Whole Foods made national headlines, five other companies executed M&A deals in excess of $1 billion. Signs point to continued M&A in the food industry for the remainder of this year and through 2019.
Reasons for the increase in M&A in the food industry are varied. Foremost is consumer preference for food made with natural and organic ingredients, reflecting the value they place on nutrition, the environment, and fair trade. Also, private equity is abundantly available to key industries, including the food industry. Capital is available for M&A in the middle market—where food companies will find many potential partners—with investments ranging from $100 to $150 million.
Acquisitions taking place are an excellent example of how food companies have responded to trends. Large food companies and private equity firms are interested in buying or investing when certain variables exist. Our latest report shares:
- The Variables Driving M&A Activity
- How the Middle Market is Being Affected
- What Buyers are Looking For in Potential Acquisitions
- What Sellers Need to Know
An abundance of buyers and a limited supply of quality food companies has resulted in excellent choices for companies in the middle market food industry. Download the report to learn more, and if you are considering a transaction please Contact Us to discuss how we can guide you through the process.