Corporate activity in the local food and beverage industry gained pace in the second quarter of 2016, according to a report from Comet Line Consulting.
Thirteen acquisitions were announced in Q2 and although the transactions were spread across sectors, the seafood and packaged foods sectors saw the highest levels of activity, according to the report.
Transactions in the packaged food sector included the $150 million acquisition of Gourmet Garden by McCormick & Co, the proposed $232m acquisition of Patties Foods by Pacfic Equity Partners, and Maggie Beer's 48 per cent sale to Primary Opinion for $15m.
Seafood transactions included the $180m 90 per cent acquisition of Kailis Brothers by Legend Holdings, and the $20m sale of a 40 per cent stake in Mareterram to Sea Harvest.
According to Comet Line Consulting, capital raisings both in the public and private markets also rose sharply as businesses sought extra funds to capitalise on domestic and international growth opportunities.
“A growing investment theme is the increasing value placed on a diversified customer base,” the strategic advisory firm said.
“As a result, initiatives to develop distribution outside the corporate supermarket retailers and gain access to other channels, including food service and industrial, is a growing strategic priority.”
