Blog: Snow falls but M&A activity heats up
Michelle Russell | 22 December 2010
Even in the run-up to Christmas, the M&A merry-go-round keeps on turning.
Following the news this week that French dairy co-op Sodiaal has finalised plans to buy cheese maker Entremont Alliance, another significant piece of M&A hit the headlines.
Dutch food ingredients group DSM announced yesterday (21 December) that it has struck a deal to buy US-based Martek Biosciences in an all-cash transaction worth US$1.09bn. The transaction, DSM said, will add a "new growth platform for healthy and natural food ingredients for infant formula and other food and beverage applications".
CEO and chairman Feike Sijbesma has insisted that the deal is a "very attractive and strategic opportunity" for the Dutch firm, and said that it now plans to expand Martek's "strong position" in infant formula worldwide.
The all-cash transaction sent DSM shares up almost 4% on the Amsterdam Stock Exchange yesterday and analysts agreed that DSM's acquisition of Martek could benefit both firms.
Petercam analyst Jan van den Bossche told just-food: "It is a logical step given that they had an exclusive supply relationship with Martek. They know each other already pretty well and extensively, so in that sense, from management and cultural integration points, it seems to be a very clean fit."
More M&A news emerged in the UK today with food tycoon Ranjit Boparan, a shareholder in Northern Foods, admitting he could launch a hostile takeover bid for the food maker. Northern, the UK food group, is planning to merge with Ireland's Greencore. Shareholders are set to vote on those plans next month.
Boparan has been amassing a stake in Northern since its plans to merge with Greencore were announced last month. He currently holds 6.6%. Will he table an offer for the business? We will more than likely have to wait until after Christmas?
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
- Interview: Sir Kensington's on sale to Unilever
- Analysis: Post discusses rationale for Weetabix
- Who will buy Danone's Stonyfield business?
- Interview: "Disruptive" snack brand Hippeas
- Column: Why snacking is the new meal
- Unilever buys US condiments maker Sir Kensington's
- Ice cream helps Unilever sales, food flat
- Nestle organic growth slows but beats expectations
- Suntory to offload Australia, New Zealand foods
- Dairy dampens Danone in Q1