The Food Institute has released data suggesting that the number of mergers and acquisitions completed by the food industry declined by 8% in 2005 from 2004.
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“Activity may have declined compared to previous years, but there were a number of significant transactions in several categories,” noted Danielle Breuel, research & education director the Food Institute, which has been tracking food industry merger and acquisition activity for over 25 years
“Examination of certain deals in the Confectioners, Restaurants, Retailers, Food Processors and Foodservice Distributors categories illustrates the use of acquisitions to not only strengthen a company’s current operations, but also to mark their entrance into new areas of business. Meanwhile, divestitures enabled certain firms to exit underperforming areas,” Bruel said.
