Meridian Capital publishes its Food and Beverage M&A Update, which focuses on key trends in the food and beverage M&A market. The Fall edition focuses on recent activity in the protein, dairy, and coffee sectors
The M&A market for food and beverage companies remains robust, supported by the high growth profile of new brands and product categories, and the increasing consumer preference toward artisan, organic, and natural options. M&A activity in the sector through Q3 2017 appears to be keeping pace with last year. According to PitchBook, more than 274 transactions were completed in the U.S. and Canada, compared to 277 in 2016. Both public and private investor sentiment toward the food and beverage sector remains strong with publicly-traded food conglomerates trading above 14x EV/EBITDA on average in the first half of the year, compared to around 12x in 2016. As we approach the end of the year, we anticipate 2018 to bring continued momentum and activity.