What We're Seeing

Market Update

The food and beverage M&A market remained active through March, with several notable transactions. Kainos Capital acquired Bonewerks Culinarte, a chef-inspired sauce provider. ReNew Life Formulas, a subsidiary of The Clorox Company, agreed to acquire Nutranext for $700 million. The acquisition enhances Clorox's offerings in the health and wellness segment. Tyson Foods also agreed to sell its Circle Foods tortilla business to Ajinomoto in order to focus on its protein business. 

What We've Been Doing

To view recent transactions in the food and beverage space, please click here

What We're Reading

RETAIL REVOLUTION POSES THREAT TO IMPULSE-DRIVEN SNACK MARKET

Food Business News - March 19, 2018

Impulse purchases drive the global snack market, which faces headwinds as consumers change their shopping behavior. Trip frequency to retail locations is declining thanks to new online delivery and “click and collect” programs. Retailers are also driving change, responding to changing consumer tastes by focusing on perimeter of store offerings and removing traditional checkouts.
Read the full article here

THE ONGOING EVOLUTION OF ORGANIC: WHY IT'S POPULAR AND WHERE IT'S HEADING

Food Dive - March 19, 2019

Organic food sales in the U.S. totaled approximately $43 billion in 2016, up $3 billion from the prior year. Overall, organic accounted for 5% of total food sales. The global organic food market is projected to increase at a 14%CAGR between 2016 and 2021. Taste and flavor have been major contributors to today's organic trend.
Read the full article here

FOOD STARTUPS FACE RISKS IN AVOIDING BRICK-AND-MORTAR PRESENCE

Food Dive - March 13. 2018

Direct-to-consumer and third-party e-commerce initiatives allow companies to cater their message and establish a stronger connection with consumer. While there are advantages, there also are some challenges with bypassing brick-and-mortar stores, including product fulfillment and added scale. A Food Marketing Institute/Nielsen report estimated online grocery sales are expected to reach $100 billion by 2022.
Read the full article here

 

Vital Signs


Public Equity Market Overview


Public Comparables

Public Comparables4






M&A Market Overview

Highlighted Food and Beverage M&A Transactions

Kainos Capital Agreed to Acquire Bonewerks4

  • Kainos Capital, a firm specializing in acquiring and managing food and consumer businesses, has acquired Bonewerks Culinarte.
  • Bonewerks provides the highest-quality chef-inspired sauce products, including ranges of premium glace and demi-glace, as well as fully prepared, oven-seared sous vide entrées.
  • Kainos believes there is an opportunity for Bonewerks to collaborate with other Kainos portfolio companies and leverage customer networks to grow the Bonewerks business.
  • Enterprise Value: NA
  • Revenue Multiple: NA
  • EBITDA Multiple: NA
  • Announced Date: March 20, 2019

ReNew Life Formulas Agreed to Acquire Nutranext4

  • ReNew Life Formulas, a subsidiary of The Clorox Company, agreed to acquire Nutranext for $700 mm.
  • Nutranext is a U.S.-based provider of nutritional supplements.
  • The transaction is consistent with ReNew Life Formulas’ strategy to accelerate growth through acquisitions of brands in fast-growing categories such as health and wellness.
  • Enterprise Value: $700 mm
  • Revenue Multiple: NA
  • EBITDA Multiple: NA
  • Announced Date: March 12, 2019

Ajinomoto Has Offered to Acquire Circle Foods4

  • Ajinomoto has acquired Circe Foods, a subsidiary of Tyson Foods.
  • Circle Foods is a producer and distributor of flatbreads, tortillas and Mexican food products.
  • Ajinomoto expects to integrate Circle Foods into its frozen foods division once the transaction.
  • Enterprise Value: NA
  • Revenue Multiple: NA
  • EBITDA Multiple: NA
  • Announced Date: March 14, 2019

Food and Beverage M&A Trends4*

*M&A transactions include European and cross-border deals since 2015

 

Debt Market Overview

Food and Beverage Loan Activitiy6

Recent Debt Offerings7



1.    U.S. Bureau of Labor Statistics
2.    Unweighted Average
3.    U.S. Census Bureau
4.    Factset
5.    Thomson Financial
6.    S&P
7.    Reuters