Consumer – Food & Beverage Acquisition activity by volume increases in 2011 – outlook set fair for 2012

Oghma Partners LLP, the Consumer Sector focused corporate finance boutique, is pleased to announce the publication of its review of disposals and acquisitions in the UK Food & Beverage Sector in 2011 and the outlook for 2012.

Key findings of the review include; a fall in value in 2011 but a rise in the volume of deals including a pick-up in volume and value through the last third of the year.

Valuation: despite the challenging trading and economic climate – the data for exit multiples suggest that the multiple paid for businesses was broadly in line with that of 2011.

Outlook: whilst the macro environment remains far from benign there are signs that the appetite of buyers remains robust. There appears a split between the ‘have’s and the have-not’s’ in the sector i.e. those with cash and those without. For the latter, disposal is the way to reduce debt and/or find working capital to grow the business. For those with cash, the current environment represents a significant opportunity for sector consolidation a ‘arguably a once in a generation opportunity’.

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