UPDATE: UK: Overseas investment to drive food M&A
Consolidation drives food M&A - Experian
Analysts at Experian believe that overseas investment will maintain the momentum of mergers and acquisitions in the UK food sector.
Last year saw the highest volume of mergers and acquisitions (M&A) in the UK food and drink sector since 2007, Experian analysts said following the release of a new report on M&A deals in 2012. During the 12 months, food and drink also led the way in terms of the highest value deals.
Looking ahead, the analysts see a buoyant M&A climate continuing for the food sector. "The food and drink industry has proved a key driver of overall M&A activity in the UK in recent years and we would expect to see continued high levels of deal flow within the sector in 2013," Experian's business development manager, Wendy Driver, told just-food.
One of the biggest deals of last year was the GBP1.2bn (US$1.9bn) acquisition of Weetabix by China's Bright Food Group. Foreign investment is set to continue to be a key theme.
"Activity is likely to be fuelled once again by industry consolidation and in large part from overseas investment," said Driver. "We would also expect private equity to play a more pronounced role in the market, after a 2012 in which firms tended to hold fire to maintain the integrity of their existing investments rather than focussing on adding to their portfolios.”
Aside from the blockbuster Weetabix deal, most M&A activity in the UK food sector in 2012 was in the small-to-medium-sized value range. Other key deals completed during the period include German dairy giant Müller acquiring Robert Wiseman Dairies for GBP279.5m.
Cereal manufacturers in the UK are facing a competitive market and flat sales volumes. While overall conditions have been somewhat sluggish, the breakfast category when taken as a whole has seen some ...
New Zealand dairy ingredients and infant formula firm Synlait Milk has outlined plans for its IPO - and how it intends to spend the proceeds from the listing....
UK milk supplier Muller Wiseman Dairies has said it may close two depots as it readjusts to the way milk is now delivered to retail customers....
- Danone's global push for Danonino – interview
- How Hormel Foods can benefit from Justin's
- Colian hungry for international growth - interview
- The balancing act at Amy's Kitchen - interview
- How discounters unsettling Australia's food sector
- US food labels to include "added sugars" info
- Nestle sets new savings target
- ConAgra focusing on core with Spicetec sale
- Kraft Heinz to expand US plant
- Premier takes control of powders JV Knighton