UK Food and Beverage Sector Buyouts Sees Almost 30% Decline

By: Trademagazin editor Date: 2022. 09. 15. 08:08

Merger and acquisition deals within the UK’s food and beverage sector have dropped by 29% following a difficult trading environment which has seen retailers increasing prices to mitigate inflationary cost pressures.

Oghma Partners recorded an overall estimated deal value of £270 million in comparison to £3.9 billion during the same time in 2021

Buyout value also saw a decline of 90% between May and August, according to the latest report from corporate finance house, Oghma Partners. Analysing 22 deals within this period, Oghma Partners recorded an overall estimated deal value of £270 million in comparison to £3.9 billion during the same time in 2021. However, 60% of deals had an estimated value of £20 million or less which corresponds with the figures between January and April of this year. Despite the sectors decline in buyout deals, the grocery and confectionary categories were found to be the most active with deals including Premier Foods acquisition of South East Asian meal kits and accompaniments brand, The Spice Tailor for £43.8m in July.