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M&A, IPO Activity Picking Up Pace

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M&A, IPO Activity Picking Up Pace

Acquisitions and IPOs seem to be gaining momentum heading into the summer. Here’s a look at notable business moves in the food industry in recent days:

PILGRIM’S PRIDE TO ACQUIRE KERRY CONSUMER FOODS

Pilgrim’s Pride Corporation executed an acquisition agreement to acquire the Meats and Meals business of Kerry Consumer Foods in the UK and Ireland. The acquisition values the acquired businesses at approximately $952 million enterprise value and the purchase amount represents an 8.5x multiple on implied expected standalone EBITDA for 2021.

The transaction adds brands such as Denny, Richmond, and Fridge Raiders to Pilgrim’s portfolio, which the company expects to deliver a higher and more stable margin profile. The combined businesses produced around $1 billion in annual sales during the year ended December 31, 2020.

“This complementary acquisition provides further breadth into the prepared and branded products segment,” said Pilgrim’s CEO Fabio Sandri in a press release. “The inclusion of the Kerry Consumer Foods’ Meats and Meals business follows our strategy of a well-balanced portfolio of products, geographies and customer base.”

He added that the company believes the acquisition will also enable it to develop new and innovative products through the businesses’ combined expertise to support our key customers’ growth objectives.

VITA COCO OWNER PLANS IPO

The owner of coconut water company Vita Coco is planning to go public this year, according to people with knowledge of the matter. The move comes as investors rushed to back Oatly Inc.’s recent IPO, reported Bloomberg (June 16).

All Market Inc., which also owns Runa energy drinks and water brand Ever & Ever, aims to list its shares in the U.S. as soon as the third quarter, the people said, adding that the company could be valued at over $2 billion in the IPO.

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Vita Coco makes flavored, sparkling and caffeinated coconut waters, as well as coconut oil and milk alternatives. Early investors included celebrities such as Madonna, Matthew McConaughey and Demi Moore, while backers include Verlinvest and Strand Equity—both of which also invested in Oatly.

DUTCH BROS BEGINS CONFIDENTIAL IPO PROCESS

Drive-through coffee chain Dutch Bros started the confidential process to file for an IPO, reported KGW (June 16).

Currently, the number of shares to be offered and the price range for the proposed offering have yet to be determined. However, Bloomberg reported last month that the company was hoping for a $3 billion value market. If that happens, it would be the biggest IPO in Oregon history, according to The Oregonian.

Founded in 1992 in Grants Pass, Oregon, Dutch Bros now has 470 stores in 11 states and about 13,000 employees.

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The Food Institute