What We’re Seeing
The food & beverage M&A market remains active through May, with several notable transactions. Butterfly Equity acquired Bolthouse Farms for $510.0 million, Taylor Fresh Foods acquired Earthbound Farm for an undisclosed amount, and Kettle Cuisine acquired Harry's Fresh Foods for an undisclosed amount.
What We’ve Been Doing
Closed Harris Williams Transactions
What We’ve Been Reading
Beyond Meat Goes Public with a Bang
Beyond Meat Inc. raised nearly a quarter of a billion dollars to grow its line of plant based meats, with shares rocketing 163% above their IPO price in its public debut. In a letter included in the prospectus, Beyond Meat Founder, Ethan Brown, highlighted the toll that meat-based diets have taken on human health, the environment, natural resources, and animal welfare. Beyond Meat hopes to capitalize on the emerging trend toward plant-based protein alternatives to drive further growth.
Access the full article here.
Fiber, Probiotics Boost Functional Beverage Category
The demand for beverages containing fiber, probiotics, and prebiotics continues to rise as consumers “go with their gut” to improve health and well-being. Currently, 44 percent of U.S. consumers are increasing their fiber consumption, and as awareness grows for how fiber and probiotics contribute to a healthy lifestyle, researchers are convinced more consumers will seek out beverages that deliver these beneficial ingredients.
Access the full article here.
Commodity Price Indices1
Protein Price Indices2,4
Restaurant and Grocery Store Sales Indices3
Consumer Food Price Index Inflation4
Key Trading Statistics1
Public Equity Market Overview
Public Company Sector Performance (Median One Year Change in Stock Price)1
Recent Equity Offerings5
Food and Beverage Industry Stock Performance Index4
M&A Market Overview
Highlighted Food and Beverage M&A Transactions1
Butterfly Equity Acquires Bolthouse Farms
- L.A. based private equity firm, Butterfly Equity, acquired Bolthouse Farms from Campbell Soup.
- Bolthouse Farms is a vertically integrated food and beverage company with a variety of offerings, including carrots, refrigerated beverages, and refrigerated salad dressings.
- The acquisition will allow Butterfly Equity to expand its food and beverage portfolio, and the deal is expected to close in July of 2019.
Taylor Fresh Foods Acquires Earthbound Farm
- Taylor Fresh Foods announced its acquisition of Earthbound Farm on April 11th.
- Based in San Juan Bautista, CA, Earthbound Farm is a producer of salads and healthy fresh foods.
- The acquisition will allow Taylor Fresh Foods to enhance its position in the fresh organic produce category.
Kettle Cuisine Acquires Harry's Fresh Foods
- Kettle Cuisine, a portfolio company of Kainos Capital, acquired Harry's Fresh Foods for an undisclosed amount.
- Based in Portland, OR, Harry's Fresh Foods is a manufacturer of soups, sauces, and other specialty items.
- The acquisition enhances Kettle Cuisine’s product offering and expands its manufacturing footprint.
M&A Market Overview
Food and Beverage M&A Trends1
Latest Deals and Announced Private Equity Activity1
Private Equity Investments & Exits
Median LTM Trading Multiples & Quarterly Food & Beverage M&A1
Recent Food and Beverage M&A1
2. Unweighted Average
3. US Census Bureau
4. U.S. Bureau of Labor Statistics
5. Thomson Financial
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: email@example.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.