What We’re Seeing

Market Update1

The M&A landscape in the food and beverage industry is continuing to be active including several notable transactions. One Rock Capital Partners agreed to acquire Innophos, a leading international producer of essential ingredients, for $932 million. Lassonde agreed to acquire Sun-Rype Products, a manufacturer of fruit-based food and beverage products, for $77 million. Brentwood Associates also acquired Chicken Salad Chick, an operator and franchisor of fast-casual restaurants in the Southeast, for an undisclosed amount.

What We’ve Been Doing

Closed Harris Williams Transactions

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Industry Spotlight: Trends in Foodservice

Foodservice Trends for 2020

According to Technomic, consumer demand for healthy alternatives and flavor innovation will drive foodservice trends in 2020. Plates will be filled with cooler colors such as greens (broccoli rabes, cresses, kale hybrids, etc.), blues (spirulina and butterfly peas) and purple variations of veggies (corn, broccoli and snap peas). With the explosive growth of at-home delivery expected to continue, foodservice chains will need to employ more creative means of enticing people to dine in at restaurants, including limited-time offers, BOGO meals and loyalty-based rewards.

Access the full article here.

Beverage Innovations Fuel the Foodservice Category

Beverages have always played an important role in the foodservice industry, but recent innovations have driven meaningful growth. Beverage growth has outpaced that of foodservice within the past few years thanks to innovative options such as nitro coffee, plant-based milks and other alternative beverages, as reported by Technomic. Starbucks has capitalized on the consumer demand for innovation through its nitro cold brew product, which has quickly become one of the Company's most popular drinks and has been a catalyst for growth in the afternoon daypart.      

Access the full article here.

Harris Williams Advises The Bakery Cos. on Its Partnership with Arbor

Harris Williams advised The Bakery Cos., a leading provider of buns, biscuits, English muffins and other bakery products, on its partnership with Arbor Investments, a private equity firm focused on acquiring companies in the food and beverage industries. The Company services a blue-chip customer base across the foodservice and retail channels and leads with superior service, quality and consistency.  “Innovative and flexible bakeries that can meet the demands of today’s customers are positioned for long-term growth, and companies like The Bakery Cos. are emblematic of this trend,” expressed Brant Cash, Managing Director at Harris Williams.

Access the full article here.

Select Harris Williams Foodservice Supplier Transactions

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Vital Signs

Restaurant and Grocery Store Sales Indices4

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Consumer Food Price Index Inflation2

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Key Trading Statistics1

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Public Equity Market Overview

Public Company Sector Performance (Median One Year Change in Stock Price)1

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Recent Equity Offerings5

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Public Equity Market Overview1

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M&A Market Overview

Highlighted Food and Beverage M&A Transactions1

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Brentwood Associates Acquired Chicken Salad Chick

  • Brentwood Associates acquired Chicken Salad Chick for an undisclosed amount
  • Based in Auburn, AL, Chicken Salad Chick operates and franchises 137 fast-casual restaurants serving full-flavored, Southern-style chicken salad made from scratch
  • The acquisition fits well within Brentwood Associates’ strategy of investing in high-growth consumer businesses, and the firm has a long track record of working with leading restaurant concepts

 

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Lassonde to Acquire Sun-Rype Products

  • Lassonde to acquire Sun-Rype Products for $77.2M
  • Based in British Columbia, Canada, Sun-Rype Products manufactures and sells various ready-to-drink fruit-based juices, drinks and snacks
  • The acquisition will expand Lassonde’s manufacturing footprint in Western Canada and Northwestern U.S. and will further enhance the Company’s presence in the Canadian branded juices and drinks sector

 

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One Rock Capital Partners to Acquire Innophos

  • One Rock Capital Partners to acquire Innophos for $932.0M
  • Based in Cranbury, NJ, Innophos is an international producer of specialty ingredients with applications in food, health, nutrition and industrial markets
  • One Rock Capital Partners will seek to maximize Innophos’ growth potential by continuing to expand its presence in high-growth food, health and nutrition markets

M&A Market Overview*

Food and Beverage M&A Trends1

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Latest Deals and Announced Private Equity Activity1

Last 10 Deals Announced

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Private Equity Investments & Exits

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

Debt Market Overview

Food and Beverage Loan Activity6

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Recent Debt Offerings7

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M&A Overview*

Median LTM Trading Multiples & Quarterly Food & Beverage M&A1

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Recent Food and Beverage M&A1

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

Food and Beverage Earnings Release Calendar

Earnings Release Calendar1

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Public Comparables1

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1. Capital IQ

2. Unweighted Average

3. US Census Bureau

4. U.S. Bureau of Labor Statistics

5. Thomson Financial

6. S&P

7. Reuters

 

The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. awaited). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.