What We’re Seeing

Market Update1

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

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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.

Vital Signs

Commodity Price Indices1

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Protein Price Indices2,4

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Restaurant and Grocery Store Sales Indices3

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Consumer Food Price Index Inflation4

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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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Food and Beverage Industry Stock Performance Index4

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M&A Market Overview

Highlighted Food and Beverage M&A Transactions1

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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.

 

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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.

 

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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

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Latest Deals and Announced Private Equity Activity1

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Private Equity Investments & Exits

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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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Food and Beverage Earnings Release Calendar

Earnings Release Calendar1

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Public Comparables1

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

 

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