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Research Outline

Prepared for Dmitry A. | Delivered August 16, 2020

M&A Food Content Industry

Goals

To obtain a summary of known M&A transactions in the food content industry in the past 5 years: recipe platforms, food sites, and other technology companies that are related to food/nutrition. To obtain factors such as the amount paid/deal terms or any other specifics that can help us understand the nature of the acquisition.

Early Findings

2019: Food Industry Notable M&As

  • According to Just Food, the value of M&As dropped in 2019 in comparison to 2018, according to M&A adviser, Stefan Kirk. One major influence is the millennial consumer trend of superfoods and plant-based proteins.
  • In January, the French Dairy giant, Damone bought 49% of Yashili, a New Zealand-based Hong Kong business for $103.2 million. It also took a stake in Epigamia, an Indian yogurt business. Danone invested $25.6 million via Danone Manifesto Ventures.
  • In February, GreenSpace Brands, a Canadian food manufacturer, disposed of Rolling Meadow Dairy brand to Agrifoods International Cooperative subsidiary Organic Meadow Limited Partnership for $1.4 million. Saputo acquired Dairy Crest for $1.27 billion and PepsiCo acquired Muscle Milk from Hormel Foods.
  • Notable mergers and acquisitions in the food industry by month is detailed in this report.

Year-on-Year Comparisons

  • According to Zenith Global, the number of acquisitions from 2014 to 2019 has been on the rise. This breakdown demonstrates the growth in the number of acquisitions globally. Between 2014 and 2019, the number of acquisitions for each year was 559, 594, 624, 729, 777, 2019, and 789, respectively.

Food52

  • Food52 is a digital bazaar for upscale home goods. In 2019, this company sold a majority of its stake to TCG for $83 million.

Yummly

  • Although terms of the deal were not revealed, Whirlpool acquired Yummly. Prior to this, Yummly was valued at $100 million.

Whisk

Summary of our Early Findings

  • This one-hour research was able to provide general insights into the topic. This research has determined that there are several reports that provide insights into M&A in the food industry. As more details will be required, we will scope the next steps appropriately in order to provide as much helpful insights as possible.