M&A – the prospects for 2011 from Just Food

December 24, 2010

By: Dean Best, 21 December 2010

As we progressed through 2010, the amount of M&A activity intensified around the world as business confidence improved, lending conditions became more favourable and the value of deals crept up.

In the UK food and drink sectors, according to M&A advisory firm Oghma Partners, the value of mergers and acquisitions in the four months to the end of August stood at GBP1.08bn (US$1.67bn), against around GBP330m in the corresponding period a year earlier.

The data showed that the number of deals in the first eight months of 2010 was lower than in the same period of 2009 but Oghma Partners said there had been a “marked increase” in the average size of transactions. Aside from Kraft Foods’ takeover of Cadbury, the M&A consultancy pointed to deals including the sale of Tate & Lyle’s European sugar assets and Thai Union Products’ acquisition of canned seafood business John West as signs of “renewed confidence in M&A markets”.

With a few days of 2010 to run, Oghma Partners’ Mark Lynch says the advisory firm has yet to collect all the data for the last four months of the year and the year as a whole. However, he suggests the “punchy deal” between Ireland’s Greencore and UK food group Northern Foods indicates this trend towards bigger deals has continued in the latter part of the year.

For the full article, please visit www.just-food.com.

Oghma Advises Springthyme Oils on its Sale to Kerry

September 30, 2010

Oghma Partners LLP advises the shareholders of SpringThyme Oils Ltd on the sale of the business to Kerry (Ingredients Holdings UK) Ltd.

London – September 2010

Oghma Partners LLP announced that it acted as M&A Advisor to the Shareholders of SpringThyme Oils Ltd (‘SpringThyme’) on the sale of the business to Kerry (Ingredients Holdings UK) Ltd.

For the full press release please click here.

2010 Food & Beverage M&A Update

January 18, 2010

Oghma Partners LLP, the food & beverage focused corporate finance boutique, is pleased to announce the publication of its latest review of M&A activity in the sector in 2009 with some thoughts on the outlook for 2010. For a copy of the detailed presentation, please email us.

Some of the key points to emerge from the analysis of the transaction data for 2009 include;

  • 2009 saw a modest improvement in the number of transactions vs. 2008 with the improvement being second half orientated. Deal size was generally lower in 2009 vs. 2008 and total deal value is estimated at £1.25bn vs. £2.0bn for 2008 as a whole (ex the S&N deal).
  • The acquisition of insolvent businesses was a key factor behind activity with an estimated 21% of transactions sourced from insolvent companies.
  • For 2010 we expect a modest improvement in the number of deals as balance sheets are re-built and business confidence returns. However, we see a possible return of IPO’s in the sector with one potential IPO already announced.

For more information, please contact us.