Food & Beverage Update : Second Quarter 2013

Deloitte Financial Advisory Services


This quarter’s Food & Beverage Update, produced by Deloitte Financial Advisory Services, summarizes the most recent transactions along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.

This quarter’s highlights

The FAO Food Price Index averaged 211.3 points in June 2013, almost 2 points (one percent) below its revised value for May, but still nearly 11 points higher than in June 2012. This decrease is caused by a drop in sugar and, especially, dairy prices. By contrast, latest estimates suggest international meat prices gained 2 percent in June 2013.

European M&A activity (all industries) in the second quarter of 2013, (being 1,032) showed to be lower compared to the first quarter of 2013 when 1,238 deals were reported. Year on year, the announced transaction volume decreased by 10%. In Belgium (all industries), 29 transactions were announced reaching the lowest reported level over the last 2 years. Compared with Q1’13 (being 52), the number of announced transactions sharply decreased by 44%.

Transaction volume in the European Food and Beverage industry in Q2’13 (being 66) declined by 19% compared with the 81 reported deals in the first quarter of 2013. Looking at the announced deal volume in the second quarter of 2012 (being 88), the deal volume dropped by 25%. Looking at the yearly deal volume in the European Food and Beverage industry, the number of announced transactions amounted to 294 in the last twelve months which is 5% below the yearly deal volume of 2012 (309 deals). The average deal size amounted to EUR 388m, considering the last twelve months, this is a 30% decrease compared with the average deal size of 2012 (EUR 556m).

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