Category: 2018 News

OGHMA PARTNERS ADVISES INNOVATIVE BLUE FOOD COLOURANT INGREDIENT COMPANY IN RELATION TO NEW FUNDING ROUND

Oghma Partners LLP is pleased to announce that it has provided corporate finance advice to the Scot Bio management team with regards to a capital restructuring and fund raise for the business.

Scot Bio is a Scottish based biotech business with a specific focus on the production of natural food colourants.

Based in BioCity Glasgow, the biotech incubator located just outside Glasgow, Scot Bio has developed a patented, reactor-based process to respond to worldwide demand for ‘clean labels’ and products free of artificial colours by providing FMCG’s with traceable, natural blue and green colourants.

The funding round will allow the company to scale up production and expand its existing team to respond to the rapidly expanding international market for natural colourants, which is expected to experience rapid growth in the next few years.

Natural blues and greens are produced using phycocyanin, an algae derived pigment which received international regulatory approval in 2013. Phycocyanin rich algae is traditionally grown in pond systems, which are seasonal and subject to environmental contamination but Scot Bio through academic collaborations with Newcastle University and The University of Edinburgh has developed systems that are modular and scalable and capable of meeting the demand from global food manufacturers.

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The Brexit effect continues with 2018 deal volume YTD flat lining after the 29.0% decline in 2017. However, stripping out the ‘one–off’ £1.4bn Post Weetabix deal in 2017 the value of deals YTD 2018 is up 34.0% – implying a higher average consideration per deal.

For further analysis and to be put on our mailing list for future updates please do contact us.

To view the full press release please click here.

We are pleased to announce that The Oghma Partners UK Food & Beverage Sector M&A Review for the second tertial of 2018 has now been released!

In this review we take a look at the latest trends and themes in the UK Food & Beverage Sector. We look in detail at the highly active snacks and confectionery category and continue to monitor Nomad Foods consolidation of the European frozen-food sector.

For further analysis and to be put on our mailing list for future updates please do contact us.

Please click here to view the full press release.

Today Oghma Partners publishes an update on M&A activity YTD in the UK Food Producer & Beverage sector. The UK element is important as, unlike other reviews, we only look at the UK in this review, not UK and Ireland or acquisitions in the UK including acquisitions outside the UK undertaken by UK businesses. The distinction is important as, we believe, we can discern the trend for this particular geography and look at the Brexit effect on it. Thus reviewing previous data, we highlighted that the volume of deals in the Food sector fell by about a third from 2016 vs 2017 an effect that we attributed very firmly to the Brexit vote. We believe that the Brexit effect was experienced through the fall in the currency, the spike in input costs and the problem of cost recovery impacting profitability and thereby derailing exit plans.

YTD in 2018 the volume of deal activity is in line with 2016 albeit the value of deals is higher – a result of a greater percentage of larger transactions. The point here is that, as yet, there has been no sign of creeping No Brexit Deal Anxiety or, NOBDA for short. Given the long lead times for executing deals the lack of impact on M&A is perhaps not surprising. Looking in to the Autumn if NOBDA increases, which seems likely as most pundits seem to be thinking that the talks will go to the wire, there could be an impact of NOBDA on deal flow. NOBDA may impact buyers through a number of scenarios. There may be a further concern regarding sterling weakness- as seen before. In addition there may be a concern regarding the ability to either import or export product – so just in time delivery may be affected by queues at ports or non-tariff requirements (like veterinary checks) and then there may be the impact of tariffs. Either way, sellers may need to address these risks in any upcoming discussions and buyers may wish to risk-adjust their pricing models through either discounting their offer prices or, more palatable, increasing the earn-out element on any transaction. Hopefully soon we can put, BREXIT, BRINO and now NOBDA behind us and get on with the job of growing businesses and creating value.

Please click here to view the full press release.

Oghma Partners is pleased to announce that the T1 2018 M&A Review of the UK Food & Beverage Sector has been released.

Since the UK voted to leave the EU almost two years ago, we have noticed a continuing pattern of reduced M&A activity and this downturn continues to be seen in T1 of 2018.

In our 2017 summary we referenced the Brexit effect as one of the obvious factors effecting the levels of M&A activity in our industry.

To view the full press release please click here.

Please contact us to enquire about the review, to request a copy and to be put on our mailing list for future updates.

Oghma Partners has now released the UK Food & Beverage Sector M&A Review for the first tertial of 2018.

In the latest version of our M&A review we look back at some of the stand out moments and deals of 2018 so far plus include a review of European Health Food M&A activity.

To view the full press release please click here.

Please contact us to enquire about the review, to request a copy and to be put on our mailing list for future updates.

Oghma Partners has now released the UK Food & Beverage Sector M&A Review for the first tertial of 2018.

Overall we have seen a decline in the volume of deals in the first four months of 2018 vs the same period in 2017. Deal volume is down 14 %, for the T1 period, compared with a year ago; this follows a sharp 30% decline in UK Food & Beverage M&A volumes in 2017 vs. the prior year.

To view the full press release please click here.

Please contact us to enquire about the review, to request a copy and to be put on our mailing list for future updates.

Solina, a leading European producer of savoury ingredients for the food industry, announces today the completion of the acquisition of Essential Cuisine Limited from Nigel Crane, Neil Corlett and Jamie McGregor, the shareholders of the company.

Headquartered in Winsford, U.K., Essential Cuisine has a leading position in the U.K. foodservice market through kitchen-made quality products such as stocks, jus and gravies. Essential Cuisine is a premium foodservice brand trusted and endorsed by chefs across the U.K.

Since founding the company in 1995, Nigel Crane and the shareholders have built an established player in the U.K. foodservice market with 70 employees generating sales of €15 million in 2018. The current management team will stay with the company to support the next growth phase with the existing shareholders remaining within Essential Cuisine until the end of July to ensure a smooth transition. As Solina U.K. Country Manager, Adam Jones will lead the integration program with the local team.

For Solina, the acquisition represents the latest step in its growth strategy across the European food market and its second acquisition in the U.K.

The parties have agreed not to disclose the transaction value.

Oghma Partners LLP acted as exclusive financial advisors to Solina on this acquisition as well as on the acquisition of New Ivory, a transaction which was completed in 2016. This latest transaction follows two and a half years of strategic advisory work undertaken by Oghma Partners on behalf of Solina to identify suitable target businesses to fit with their ongoing build-up strategy in the E.M.E.A. and North America.

To view the full press release click here.

Oghma Partners has now released the UK Food & Beverage Sector M&A Review for the third tertial of 2017!

In the latest version of our M&A review we look back at some of the stand out moments and deals of 2017.

To view the full press release please click here.

Please contact us to enquire about the review, to request a copy and to be put on our mailing list for future updates.

We are pleased to announce that The Oghma Partners UK Food & Beverage Sector M&A Review for the third tertial of 2017 has now been released!

2017 saw overall deal value drop from 2016 to a level more in line with 2013. Deal value excluding one-offs was the lowest level recorded since 2009.

To view the full press release please click here.

Please contact us to enquire about the review, to request a copy and to be put on our mailing list for future updates.