Oghma Partners T1 M&A Review (published this May) looks at transactions across the UK Food and Beverage universe for the first four months of 2011 and compares these deals with activity from 2007 onwards. Transaction multiples for many of the deals remains confidential and so any analysis is based upon an understandably narrow data set, however there is evidence that the price achieved for transactions has been increasing over the last year and a half or so. The improvement in rating would make sense. The trading environment though challenging has more visibility than two years ago. In addition, there are more buyers around as confidence has returned to the M&A market and debt has become more available than in 2008 or 2009. Finally, it is noted that the valuation of quoted companies, as measured by P/E or EBITDA ratio’s, has increased. The above suggests that a seller of a Food or Beverage asset today should achieve more for the sale of their business than they would have done a couple of years ago. The above issues and more is covered in Oghma Partners LLP T1 2011 M&A Review out today.
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 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 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
In Oghma Partners (Food and Beverages M&A specialist advisors) forthcoming report into M&A activity in the UK Food and Beverage industry, the company highlights the level of activity of financial buyers and private equity firms.
Private Equity accounted for around 19% of transactions by volume in 2010 a similar level to the prior period. In addition deal value rose with multiples paid for businesses helped by a more stable business environment and impacted by the greater number of larger scale deals.
Private Equity remains an important player in transactions in the sector albeit the statistics suggests there is a greater chance of selling to a corporate buyer. However, private equity should be considered in any sale process as a possible acquirer for assets coming from the food and beverage industry.
For more information, please download our review, to be published soon.
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.
