Oghma Partners T1 2011  M&A Review  for the Food and Beverage sector (published this May) references a continuation in the difficult trading environment. Inflation and limited growth in wages is limiting growth in disposal income, on top of these factors unemployment concerns are denting consumer confidence; there seems little let up in this environment anytime soon. Despite these challenges, M&A activity has increased by value and volume in the first Tertial of 2011 compared to the prior period. The increased activity is put down to a more stable lending environment and the drive to cut costs through consolidation. Action to reduce debt is also freeing up assets for strategic buyers as the recent purchase of Premier Foods canning operations by Princes Food Group demonstrates.

If you would like us to send you the latest full M&A review (to May 2011) and to be added to our mailing list for future reviews, please do contact us for further details.

Oghma Partners is pleased to announce that the latest M&A Review for T1 2011 has now been released.

In the latest issue, Mark Lynch, Partner of Oghma Partners, discusses the trend of increased  M&A activity (by value) which was noted throughout 2010 and has continued in the first four months of  2011.The review also comments on the impact of the latest deals seen throughout this period (including Big Bear/Raisio, Premier Foods/Canning and Quorn and Northern Foods/Boporan) as well as reviewing the source of buyers for UK Food and Beverage assets.

The document contains an analysis of the latest deal multiples and predictions for the next few months of 2011, taking into account tough trading times and modest growth forecasts. Despite these pressures, deal value and volume are both expected to be positive, showing a significant improvement on 2007-9.

If you would like us to send you the latest full M&A review (to May 2011) and to be added to our mailing list for future reviews, please do contact us for further details

March 2nd 2011

Valuing any company is difficult partly due partly to the challenge of reviewing a business and partly due to the confusion of different techniques on offer. Oghma Partners LLP in its latest Company Briefing covers the key techniques of valuing a business and reviews the difficulties and problems with the various approaches. The author, Mark Lynch, is a Partner at Oghma Partners LLP, before turning to Corporate Finance, Mark led the number 1 Extel Rated Food and also Household Goods Team at UBS Warburg providing valuation and sector advice to the worlds’ leading institutional investors, he was also twice voted in the top ten of all analysts across all sectors of the City of London.

Please Valuing-a-Food-and-Beverage-Business“click here to download your copy.

London – January 2011

Oghma Partners LLP, Food and Beverages M&A specialist advisors, publishes its latest Tri-Annual review of M&A activity in the UK Food and Drinks sector. An article referring to the report was recently published in The Grocer magazine. The latest review looks at all activity in the sector in 2010 and includes some thoughts regarding the outlook for activity in 2011. For a copy of the report please email us.

London – January 2011

The forthcoming review of M&A activity in the Food and Beverage sector for 2010 highlights that 44% of buyers of UK Food and Beverage businesses in the period were either subsidiaries of overseas companies or, overseas based businesses. This trend flags the benefit of including possible overseas buyers for a company when entering into an auction process to dispose of an asset.

A full appreciation and understanding of the industry and the key players on an international, not just a UK basis, is essential to achieve the best price from an auction transaction. Oghma Partners LLP with its extensive industry knowledge and contacts is ideally placed to provide this buyer access. For a full copy of the report please contact Oghma Partners or see the download available soon.

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 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.

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.