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The food manufacturing sector was active during the second quarter and much debt was refinanced during the three month period. Deals of note included Anchor Packaging’s $790 million dividend recapitalization, and the acquisition of Corbion’s business division by Kingswood Capital Management for $362 million. Debt refinancings occurring in Q2 included Coca-Cola Consolidated with a $6.3 billion debt raise, Lamb Weston Holdings receiving $450 million of debt, McDonald’s closing on $2 billion of debt, and United Natural Foods refinanced $630 million in debt.
Similar to the overall M&D market, we have also seen renewed interest by venture capital investors in the F&B industry. The top investors in the food and beverage space for the past six months in 2024 are heavily weighted towards venture capital with a few private equity deals getting completed. In the past six months, Gaingels completed six transactions, Plug and Play Tech Center completed five transactions, Branch Venture Group closed three transactions, Ackley Brands completed three transactions, and Encore Consumer Capital closed two transactions.
We are seeing geopolitical impacts on the supply chain in the form of access to raw materials, wars, and recurring supply chain disruptions. New laws, acts, and regulations (e.g., IISA, IRA, CHIPS Act, etc.); the persistent labor shortage; the drive to automate and digitalize; and increasing cybercrime levels are also impacting the food manufacturing sector.
QUARTERLY TRENDING NUMBERS
All data gathered from PitchBook Data, Inc., as of July 11, 2024
Food and beverage manufacturing capital invested by deal count
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Contact:
Helana Robbins Huddleston, CPA, CIRA
Partner, Manufacturing and Distribution Industry – Co-Leader
Transaction Advisory Services
312.508.5813
helana.robbins@cohnreznick.com
Henrietta Fuchs, CPA
Partner, Manufacturing and Distribution Industry – Co-Leader
646.762.3432
henrietta.fuchs@cohnreznick.com
