• The M&A market in 2019 declined for the third consecuve year in terms of number of transacons (15,663 in 2019 from 17,649 in 2018) according to the IMAA Instute. Transacon count in the Food and Beverage industry re- flected this trend, declining from 317 to 283. • Despite the Y/Y reducon in M&A acvity, acvity remains very strong on a historical basis. M&A in the middle market especially remains robust as well capitalized buyers (both financial buyers and larger strategics) search for new, inno- vave brands and broader product offerings. • Consumers connue to be a key driver of economic growth. With unemployment at 50-year lows, rising wage rates are expected to help to spur household income and wealth, driving consumer spending through 2020. • Three things we are keeping our eyes on: (1) Mulnaonals like Mondelez Internaonal are shuering plants indefinite- ly due to the coronavirus outbreak; (2) Whole milk category growth (2.7% Y/Y in 2019 ) is a lone bright spot in an other- wise struggling category; (3) Credit-card balances rising to a record $930 billion in 4Q19, well above the previous peak seen before the 2008 financial crisis, coinciding with a rise in delinquency rates EdgePoint is an independent, advisory-focused, investment banking firm serving the middle market. SELECT RECENT TRANSACTIONS FEBRUARY 2020 FLASH REPORT CONSUMER: FOOD AND BEVERAGE Steve Tardio Managing Director Consumer For more informaon and insight please contact members of the EdgePoint Consumer team: John Herubin Managing Director Business Development Contact: 216-342-5865 [email protected]Contact: 216-342-5737 [email protected]Target Status Date Buyers Strategic / Financial Morey's Seafood International, LLC Closed Feb 4 SeaPak Shrimp & Seafood Company (Rich Products Corporation) Strategic S&D Coffee, Inc. Announced Jan 31 Westrock Coffee Company Strategic (PE Backed) Mochi Ice Cream Company Closed Jan 30 Lakeview Capital Inc. Financial RB Foods, Inc. Closed Jan 27 The Good Bean, Inc. Strategic (PE Backed) Thrushwood Farms Quality Meats, Inc. Announced Jan 16 Western's Smokehouse, LLC Strategic (PE Backed) Selma's Cookies, Inc. Closed Jan 14 Byrd Cookie Company, Inc. Strategic Two In-Store Bakery Plants of Treehouse Foods, Inc. Announced Jan 13 Rich Products Corporation Strategic Pamela's Products, Inc. Closed Jan 7 Quinoa Corporation Strategic (PE Backed) The Lion Brewery, Inc. Closed Jan 7 Encore Consumer Capital, LP Financial Wholesome Sweeteners, Inc. Closed Jan 6 Falcon Investment Advisors, LLC Financial fairlife, LLC Closed Jan 3 The Coca-Cola Company (NYSE:KO) Strategic Golden Island Jerky Company, Inc. Closed Dec 30 Link Snacks, Inc. Strategic Country Pure Foods, Inc. Closed Dec 24 Blue Point Capital Partners, LLC Financial Lender Bagel Business of Conagra Brands, Inc. Closed Dec 19 Bimbo Bakeries USA, Inc. Strategic Jelly beans brand of Gimbal's Announced Dec 19 Jelly Belly Candy Company, Inc. Strategic U.S. Ice Cream Business Of Nestlé S.A. Announced Dec 11 Froneri International Limited Strategic (PE Backed) BFY Brands LLC Announced Dec 2 Frito-Lay North America, Inc. Strategic Bragg Live Food Products, Inc. Closed Nov 23 Ares Capital Corporation (NasdaqGS:ARCC) Financial All Assets of Bumble Bee Closed Nov 21 F.C.F. Fishery Co., Ltd. Strategic New Belgium Brewing Company, Inc. Announced Nov 19 Lion Pty Limited Strategic Peanut Butter Facility of Conagra Brands, Inc. Closed Nov 14 8th Avenue Food & Provisions, Inc. Strategic (PE Backed) Murry's, Inc. Closed Nov 14 Encore Consumer Capital, LP Financial Warnock Food Products Inc. Closed Oct 29 Calbee North America, LLC Strategic Joseph's Pasta Company, Inc. Closed Oct 23 LaSalle Capital Financial Hughson Nut, Inc. Announced Oct 22 Olam International Limited (SGX:O32) Strategic (PE Backed) Wisconsin Cheese Group, LLC Closed Oct 21 Centre Partners Management LLC Financial Creative Snacks Co., LLC Closed Oct 15 KIND LLC Strategic Popchips, inc. Closed Oct 9 Velocity Snack Brands Strategic (PE Backed) Arrowhead Mills, Inc./nSpired Natural Foods, Inc. Closed Oct 8 Hometown Food Company Strategic (PE Backed)
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• The M&A market in 2019 declined for the third consecutive
year in terms of number of transactions (15,663 in 2019
from 17,649 in 2018) according to the IMAA Institute.
Transaction count in the Food and Beverage industry re-
flected this trend, declining from 317 to 283.
• Despite the Y/Y reduction in M&A activity, activity remains
very strong on a historical basis. M&A in the middle market
especially remains robust as well capitalized buyers (both
financial buyers and larger strategics) search for new, inno-
vative brands and broader product offerings.
• Consumers continue to be a key driver of economic growth.
With unemployment at 50-year lows, rising wage rates are
expected to help to spur household income and wealth,
driving consumer spending through 2020.
• Three things we are keeping our eyes on: (1) Multinationals
like Mondelez International are shuttering plants indefinite-
ly due to the coronavirus outbreak; (2) Whole milk category
growth (2.7% Y/Y in 2019 ) is a lone bright spot in an other-
wise struggling category; (3) Credit-card balances rising to a
record $930 billion in 4Q19, well above the previous peak
seen before the 2008 financial crisis, coinciding with a rise
in delinquency rates
EdgePoint is an independent, advisory-focused, investment banking firm serving the middle market.
SELECT RECENT TRANSACTIONS
FEBRUARY 2020 FLASH REPORT
CONSUMER: FOOD AND BEVERAGE
Steve Tardio Managing Director Consumer
For more information and insight please contact members of the EdgePoint Consumer team:
John Herubin Managing Director Business Development