MERGERS AND ACQUISITIONS
Nine F&B acquisitions in Oct/Nov By Ben van der Westhuizen and David Baveystock
M
&A transaction levels in October and November 2016 were relatively subdued compared to previous periods.
Acquisitions announced Date 2 Oct 16
Target Name
Acquirer
Sector
Oakville Produce
Mitolo Group
Riviana Foods
Fehlsbergs Fine Foods
Packaged foods
Undisclosed
5 Oct 16
Buderim Ginger – 23% of equity
Asia Mark Development & Wattle Hill RHC Fund 1
Packaged foods
$26.1 million
6 Oct 16
New Hope Group
Australian NaturalCare
Vitamins & supplements
Undisclosed
6 Oct 16
Hillcrest Litigation Services / Bubs Australia
Infant Food Holding Company
Packaged foods
$16.4 million
25 Oct 16
Pacific Island Restaurants
Restaurants Brands NZ
Hospitality
US$105 million
1 Nov 16
Omniverse Group
Foster Packaging
Packaging
Merger
9 Nov 16
Hebei Qite Packaging
Amcor
Packaging
$36 million
Sealanes
Foodservice distribution
Undisclosed
3-Oct-16
9 Nov 16
Superior Food Services
Fresh produce
Deal Value Undisclosed
The standout transaction in the quarter was the acquisition of a minority shareholding in Buderim Ginger by Asia Mark Development and Wattle Hill RHC Fund 1. The acquisition will result in Buderim Ginger raising $26m from the share issue which will be used to reduce bank debt and fund the expansion of core business segments.
6 Food&Beverage Industry News | Dec/Jan 2017 | www.foodmag.com.au
The acquisition of WA-based Sealanes by Superior Food Services from the Paino family is an important transaction in the foodservice distribution sector. The acquisition represents a push into the WA market for Superior Food Services, which was acquired by Quadrant Private Equity in 2015.
Initial equity capital raisings on the ASX Date
Entity name
Capital raised
Issue price
19 Oct 16
NZ King Salmon Investments
N$30 million
N$1.12
7 Nov 16
Inghams Group
A$596 million
$3.15
There were two IPO’s of food and beverage businesses on the ASX during Q4 2016. Inghams Group is the largest initial public offer on the ASX in 2016. Private equity investor TPG sold 40 per cent of its shareholding in Inghams Group as part of the IPO. TPG will continue to hold 47 per cent of Inghams after the float. The IPO was priced based on 13.5x 2017 net profit. New Zealand King Salmon listed in early October. The IPO was priced at eight times forecast EBITDA and enabled private equity investor Direct Capital to dispose of $45m of shares as part of the public offer. 2016 has been a very active year for merger and acquisition activity within the food and beverage industry with this trend expected to continue into 2017.
Ben van der Westhuizen (left) and David Baveystock are directors of Comet Line Consulting, an advisory business that specialises in acquisitions and divestments within the Australian food & beverage industry. For more information visit www.cometlineconsulting.com.au.