Private Equity & Food & Beverage Industry

Goals

To get a better understanding of the involvement of private equity firms in the food and beverage industry, including information on the growth and buyout of small food & beverage companies, the number of food & beverage companies which raised capital (private companies only) last year, stage at which most of them are bought by private equity firms or go public, multiple that they are usually valued and bought, challenges that most small food & beverage companies face in growing their business, and any other interesting financial or business trends in the industry.

Early Findings

Our first round of research unveiled the following information:
  • Some of the recently announced deals include small F&B companies like Hain Pure Protein Corporation (2 facilities), Iowa Premium Beef LLC (one facility), Turkey Hill business of The Kroger Co (one operational facility with more than 800 employees), Ready-to-eat cereal business of TreeHouse Foods Inc. (three manufacturing plants), Fresh Hemp Foods Ltd (two manufacturing plants). These deals have been highlighted in the recent report by Duff and Phelps.
  • The private equity deals are trending in the food and beverage space, "private equity firms, which control billions of dollars, have been turning their eyes more towards the food and beverage industry in the recent past and they've done more than just invest in brands, they've acquired them, bringing more funds, more ideas and more attention to different areas of the industry."
  • "According to The Food Institute, which tracks mergers and acquisitions in the food, beverage, grocery and food service industries, 2019 has seen 55 private equity acquisitions so far, twenty-six of them have been food processors."
  • In 2018, there were 72 private equity acquisitions in the larger food space, two years ago, there were 109.
  • In May 2019, Bain Capital Private Equity, LP acquired CJ Foods America Corp, a high-end manufacturer of snacks and other eatables. AUA Private Equity Partners LLC also acquired TruFood Mfg, Inc (more than three operational units).

Proposed next steps:

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