What We’re Seeing
M&A activity in the food and beverage industry is continuing, with strategic buyers being particularly active. US Foods announced it will acquire Smart Foodservice Warehouse Stores, a wholesale food distributor and foodservice warehouse, for $970 million, from Smart & Final Stores, a portfolio company of Apollo Global Management. Mondelēz announced it will acquire Give & Go, a producer of baked goods, for $1.2 billion, from Thomas H. Lee Partners. Hormel Foods announced it will acquire Sadler’s Smokehouse, a provider of premium pit-smoked meats, for $270 million.
What We’ve Been Doing
Closed Harris Williams Transactions
Harris Williams advises Lancaster Foods
Harris Williams advised Lancaster Foods, a subsidiary of Guest Services, on its sale to The Coastal Companies, a portfolio company of Arlon Group.
- Lancaster is a leading wholesale supplier of conventional and fresh-cut produce for retail customers across the Northeast U.S.
- Founded in 1986, Lancaster operates a 220,000-square-foot distribution and processing center in Jessup, Maryland, and operates a fleet of over 70 delivery vehicles.
Key Value Drivers
- Best-in-class sourcing capabilities
- One-stop-shop provider for conventional and fresh-cut needs
- Attractive position as go-to fill-in provider
- Industry-leading margin profile
- Attractively positioned to service the Mid-Atlantic region
- Deep and experienced management team
M&A Market Overview
Highlighted Food and Beverage M&A Transactions1
US Foods to Acquire Smart Foodservice Warehouse Stores
- US Foods to acquire Smart Foodservice Warehouse Stores for $970 million from Smart & Final Stores, a portfolio company of Apollo Global Management.
- Based in Gresham, Oregon, Smart Foodservice Warehouse Stores is a wholesale food distributor that operates 70 small cash-and-carry stores throughout the West Coast, serving midsized restaurants and other food business customers.
- The acquisition will complement US Foods’ existing cash-and-carry concept, CHEF’STORE, and will accelerate US Foods’ presence in the growing channel.
Mondelēz to Acquire Give & Go
Mondelēz to acquire Give & Go for $1.2 billion from Thomas H. Lee Partners.
- Based in Toronto, Canada, Give & Go is a manufacturer of fully finished, sweet baked goods for the in-store bakery channel.
- The acquisition expands Mondelēz’s snacking offering and establishes a leading position in in-store bakery.
Hormel Foods to Acquire Sadler’s Smokehouse
- Hormel Foods acquires Sadler’s Smokehouse for $270 million.
- Based in Henderson, Texas, Sadler’s Smokehouse is a family-owned business that specializes in premium and authentic pit-smoked meats for retail and foodservice customers.
- The acquisition will complement Hormel’s foodservice business and gives it another brand to expand in the retail and deli channels.
M&A Market Overview*
Food and Beverage M&A Trends1
Latest Deals and Announced Private Equity Activity1
* M&A transactions include European and cross-border deals since 2015.
Debt Market Overview
Food and Beverage Loan Activity6
Recent Debt Offerings7
Median LTM Trading Multiples & Quarterly Food & Beverage M&A1
Recent Food and Beverage M&A1
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