Food & Beverage Update : Fourth Quarter 2010
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
During the last quarter of 2010, consumer-spending accelerated and boosted the monthly sales growth of European retail to the highest level since 2006.The sales increase was largely driven by food price inflation as in December 2010, the FAO food price index reached its highest level, surpassing the peak of summer 2008.
M&A activity in Europe remained strong for the fourth consecutive quarter. During the fourth quarter of 2010, 1,253 M&A transactions (all industries) have been announced in Europe, a 16% increase compared to 1,082 transactions observed during Q4’09.
As far as F&B M&A activity is concerned, 74 transactions were announced during Q4’10, in line with the first three quarters. For the full year, the number of transactions increased by 42% to 285 reported deals versus 2009. Although this represents a significant growth, the number remains below pre-crisis levels. Average deal size amounted to €225m in 2010, a 25% increase versus 2009. Information on deal size must however be used carefully as number of deals with disclosed EV is very limited.
Four F&B transactions involving a Belgian company have been announced during the fourth quarter of 2010, adding up to 11 announced F&B during full year 2010.
Download the Food & Beverage Update below.