Food and Beverage Industry Overview: Food for Thought
Given the recent mergers and acquisitions (M&A) activity and overall level of buoyancy in the Australian Food Manufacturing and Distribution sector, we have reviewed the overall sector since January 2017 including sector performance, key M&A transactions and key IPOs.
The Consumer Staples index is comprised of companies involved in the manufacturing and distribution of food and beverages. The index provides a broad measure of the performance of Australian food manufacturing and distribution industries. The Consumer Staples index experienced growth of approximately 27.5% from January 2017 to June 2018 and outperformed the ASX over the same period.
During the period January 2017 to September 2018, we observed that 66 key transactions closed of Australian businesses operating as food retailers, distributors or packaged food manufacturers. The majority of these transactions were for businesses operating as food manufacturers. The acquirers ranged from local to offshore industry operators and private equity companies.
Source: S&P Capital IQ
We also highlight that during the period January 2017 to September 2018, 11 companies classified under the Consumer Staples Global Industry Classification Standard listed on the ASX.
The operating focus of the majority of these companies is agriculture, aquaculture and health product focused. The capital raised upon listing ranged from AUD$5 million to AUD$25 million. Several companies that have listed since January 2017 have undertaken subsequent capital raisings.
1TB8 suspended since February 2018
* capital raising subsequent to listing
PKF Corporate Finance has deep industry knowledge of this sector. If you operate in the Food and Beverage sector and are considering your next corporate transaction – whether it be an acquisition, sale or capital raise – contact PKF Corporate Finance to understand how we can help.