Global confectionery deals contribute to multi-billion market
The total value of food industry merger and acquisition deals, including confectionery and bakery markets in Q3 2019 stood at $5.64billion according to GlobalData’s deals database.
This marked an increase of 95.1% over the previous quarter, yet represented a drop of 17.4% when compared with the last four-quarter average, which was $6.83bn.
Comparing deals value in different regions of the globe, Europe held the top position, with total announced deals in the period worth $1.99bn. At the country level, South Africa topped the list in terms of deal value at $1.8bn.
In terms of volumes, Europe emerged as the top region for food industry M&A deals globally, followed by North America (including Hershey’s acquisition of One Brands), and then Asia-Pacific.
The top country in terms of M&A deals activity in Q3 2019 was the US with 23 deals, followed by the UK with 14 and Japan with nine.
In 2019, as of the end of Q3 2019, food M&A deals worth $14.99bn were announced globally, marking a decrease of 53.9% year on year.
Food industry M&A deals in Q3 2019: Top deals
The top five food industry M&A deals accounted for 74.4% of the overall value during Q3 2019.
The combined value of the top five food M&A deals stood at $4.2bn, against the overall value of $5.64bn recorded for the month.
The top five food industry deals of Q3 2019 tracked by GlobalData were:
PepsiCo’s $1.8bn acquisition of Pioneer Food Group
The $1bn acquisition of VMG Quest Blocker and Voyage Holdings by The Simply Good Foods
P/F Bakkafrost Holding’s $641.14m acquisition of The Scottish Salmon
The $397m acquisition of One Brands by The Hershey
Pilgrim’s Pride’s acquisition of Tulip for $355.49m.