Food & Beverage Deal Tracker Report
Now is the time for mid-sized food and beverage businesses to formulate growth plans or exit strategies, in order to maximise the benefit of the increasing number of acquisition and divestment opportunities available in the sector.
Released today, the Grant Thornton Food & Beverage Deal Tracker Report [ 4049 kb ], Bite Size, reveals despite difficult market conditions globally, Australia has had more food and beverage acquisition targets than any other country in the Asia Pacific region, and ranked as having the fifth highest level of food and beverage transactions globally during the period in January 2011 to March 2014.
“Acquisition opportunities within the Australian food and beverage sector are receiving interest from local, international and private equity buyers. Fuelled by the sector’s prime position to service Asia’s growing demand for high quality food products, CEOs and owners within the sector need to ensure their businesses are well positioned to capitalise on current opportunities within the sector,” said Cameron Bacon, Food & Beverage Partner, Grant Thornton Australia.
While private equity and international interest is strong, the sector sees most of its transactions targeted by local buyers, supporting prior research from Grant Thornton’s Hunger for Growth Survey [ 1503 kb ], which indicated approximately two thirds of Australian businesses within the sector had intentions to either sell or acquire a business over the next twelve months.
“We’re seeing buyers heavily focused on the food segment which makes up 75 per cent of total transactions in the sector” said Mr Bacon The report further revealed higher valuation multiples were achieved by businesses with strong brands in premium segments.
“As the trading and transaction multiples of Australian food and beverage companies are often lower than equivalent companies in North America or Europe, we will continue to see strong interest from international buyers seeking the opportunity to purchase good quality companies for a reasonable price that are well positioned to benefit from growing Asian demand,” said Mr Bacon.
If you would like a copy of the report or to speak directly with Cameron Bacon, please contact Helina Lilley via return email or 0437 725 520.
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