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Industry Update: Food & Beverage M&A – January, 2016

January, 2016

Food and Beverage (“F&B”) M&A continues to see strong activity. 2015 had a transaction volume of 351 deals is above 2014 record levels, 333 deals in 2014. For 2015, strategic buyers accounted for 87% of F&B M&A transactions. During 2014, strategic buyers accounted for just over 91% of the transactions.

F&B transaction valuation trends are near historical highs. In 2015, F&B multiples were approximately 13.4x EBITDA and 1.8x revenue. Many F&B categories continue to outperform the S&P 500.

Notable publicly announced 2015 M&A transactions:

– Sazerac Company, Inc. entered into an agreement to acquire the Southern Comfort and Tuaca brands from Brown-Forman Corporation for approximately $544 million.

– Acorn Holdings B.V. entered into a definitive merger agreement to acquire Keurig Green Mountain, Inc. for approximately $14.3 billion. The transaction is expected to close during the first quarter of 2016.

– Pinnacle Foods Inc. entered into a definitive agreement to acquire Boulder Brands, Inc. for approximately $991 million.

– Molson Coors Brewing Company entered into a definitive agreement to acquire MillerCoors LLC for $12 billion.

– The Kroger Co. entered into a definitive agreement to acquire Roundy’s, Inc. for $835 million.

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