Acquisition and merger activity in the food and beverage sector was subdued during the first quarter of 2019, Comet Line Consulting's (CLC) quarterly review says. But the outlook is positive with several sale processes underway.
In January, Patties Foods acquired Simplot’s Pakenham production facility. Simplot announced in August 2018 it planned to close to facility after leaving the frozen meals category. Patties will use the Pakenham site to produce the company's chilled range and sweet options (F&DB 20/01/2019).
Maggie Beer sold the remaining 52% of Maggie Beer Products to Longtable Group for $10 million (F&DB 01/03/2019). Longtable had bought 48% of the company in 2016.
CLC advised Vitality Brands on the sale of two of its brands – Well Naturally and Power Super Foods – to Darell Lea. Well Naturally is Australia's leading sugar-free chocolate brand in corporate and independent retail chains. Power Super Foods is a heritage nutritional superfoods brand.
Japan’s Nisshin Foods acquired Allied Pinnacle from Pacific Equity Partners (PEP) for $950 million (enterprise value). (PEP had acquired Pinnacle Bakery & Integrated Solutions from Kerry Group in 2015 for approximately $200 million.
The Pinnacle Bakery business was merged with Allied Mills in 2017 to form Allied Pinnacle. Allied Pinnacle was top performer in Food & Drink Business's Top 100 companies last year. It jumped from 80th to 40th after acquiring Allied Mills Australia and reporting a 150 per cent rise in its revenue (F&DB 03/12/2018).
Nisshin Foods forms part of the Nisshin Seifun Group with a primary focus on the production of pasta products, dried noodles, chilled, refrigerated and frozen food products.
Kirin Australia’s beer business, Lion, acquired a 50% interest in Four Pillars Gin. Four Pillars Gin is located in Healesville (VIC) and was established in 2013. Four Pillars will use the investment from Lion to expand distribution of its product to global markets (F&DB 22/03/2019).
ASX listed Bubs Australia announced the acquisition of Australia Deloraine Dairy for a consideration of $35 million settled, $25 million in cash and $10 million in shares. The transaction includes an earnout component with payments of up to $15 million if certain targets are met. Deloraine is an infant formula producer and one of just 15 licenced canning facilities in Australia that meets regulatory import conditions into China (F&DB 01/01/2019).
Australian online food delivery company Five Point Four was placed in administration. Five Point Four offered customers low carb, high protein meals. The company listed increased competition and the cost to serve as reasons for placing the business into administration (F&DB 20/03/2019).
