Food M&A: Fundamentally Resilient

In 2020, Harris Williams advised several food companies on transactions that attracted strong buyer attention. Strategic buyers continued to aggressively pursue high-quality assets, and prevailed in six out of seven recent deals. We also saw strong interest in the sector from financial sponsors, a trend we expect to continue as the COVID-19 crisis recedes. Based on the resilience of the food industry and its positive, long-term underlying growth drivers, we expect both types of buyers to be active in 2021.

Three companies we advised in 2020—Truco Enterprises, Indulge Desserts, and Universal Corporation—exemplify the appeal of leading food companies in today's market. Their differentiators include strong non-pandemic fundamentals, ability to flex their strategies during 2020, and positioning that enables them to outperform in 2021 and beyond.

Through a deep analysis of its underlying growth drivers, salty snacks manufacturer Truco showed that it had strong momentum driven by factors other than the pandemic. Indulge, a bakery business, was able to show the strength of its customer relationships and its ability to capitalize on new market opportunities. And Universal, a global leaf tobacco supplier, adjusted its processes to accommodate COVID-19 constraints, allowing it to stay the course on its strategically important purchase of Silva International. 

Click below to learn more about the commonalities between these transactions, as well as the value drivers unique to each.

Deal Snapshot: Truco Enterprises

Deal Snapshot: Indulge Desserts

Deal Snapshot: Universal Corporation

Select Relevant Food & Beverage Transactions


Published January 2021

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