Norma Chu’s Post

In the post-pandemic era, there have been several high-profile foodservice M&A transactions globally. Here we round up some of those deals. We are seeing a lot of activity in the limited-service segment with record deals such as Subway, Firehouse Subs, and Carrols. There have also been record deals among food delivery aggregators, including Finland-based Wolt (Doordash) and India-based Blinkit (Zomato). For full-service, the highest enterprise value deals have been in the higher-end prices (steakhouses or fine dining). Restaurant mergers and acquisitions have been much a topic of conversation in the last couple of years, but we’ve been studying (and working with buy- and sell-side teams on diligence, value-creation plans, portfolio rationalization and more) for close to ten years. There is a spectrum of opportunities for restaurant acquisitions available for operators and investors alike. Consolidation is creating stronger players. #restaurants #acquisitions #strategy

Delightful Food Group's Strategic Acquisition: A Recipe for Growth In a bold move within the foodservice industry, IBC Simply of Delightful Foods Group has acquired March Foods Ltd, marking the union of two seasoned companies under a new parent group. Spearheaded by Ricky Flax, this strategic acquisition signifies a vision to elevate both companies to new heights. Here are the key insights and investment implications: Key Insights: 🍽️ Synergy in Expertise and Knowledge: The amalgamation presents a compelling synergy of expertise and knowledge, unlocking new opportunities for innovation, product manufacturing, and customer solutions. 🍽️ Investment in Technology and Capabilities: The vision to invest in new technologies and enhance product manufacturing capabilities promises operational efficiency and a focus on product quality and innovation. 🍽️ Customer-Centric Growth Strategy: Emphasis on providing a "totally rounded solution" reflects a customer-centric growth strategy, aiming to cater to unique customer needs and drive value through tailored offerings. 🍽️ Continuity and Development: Assurance that March Foods' operations will remain unchanged underscores a commitment to continuity and stability, crucial for maintaining customer trust. Investment Implications: $ Strategic Growth Potential: The alignment of expertise, vision, and resources positions Delightful Food Group as a formidable player in the industry, presenting promising investment prospects. $ Innovation and Technology Focus: Commitment to investing in new technologies and enhancing manufacturing capabilities signals a forward-looking approach, appealing to investors keen on technological advancements. $ Customer-Centric Value Creation: Emphasis on tailored solutions presents opportunities for value creation, making Delightful Food Group an appealing investment avenue for those prioritizing customer needs. As Delightful Food Group embarks on this transformative journey, the strategic acquisition of March Foods sets the stage for a new chapter of growth, innovation, and customer-centric excellence within the foodservice industry. Follow Market Unwinded for insightful updates on strategic industry developments and investment opportunities. Read More: https://lnkd.in/gir7W_N8 #DelightfulFoodGroup #MarchFoods #FoodserviceIndustry #StrategicAcquisition #InvestmentInsights #CustomerCentricGrowth #InnovationInFoodTech

Why have so many CPG bolt-on acquisitions not worked out? Not from an exit perspective for the founders of the acquired company who usually do well, but rather from the perspective of integrating what was a nimble competitor into a larger bureaucracy. I saw this dynamic unfold when I built and sold my own business. I saw it when I was in corporate. And now I see it as I work with both emerging and larger brands within CPG. The rate of bolt-on acquisitions within CPG will increase again as brand owners look to "buy" revenue, given the tough pricing and volume outlook for 2024 and 2025. So, I dust off this older article about the Rabbit and the Fox which might just shed some light. #CPG #CPGindustry #M&A #FMCG #culture https://lnkd.in/getVC3Yn

The restaurant industry is constantly evolving. M&A activity is one way that companies can adapt to change. By acquiring new brands companies can grow their business and reach new customers. M&A can also be a way for companies to improve their operations or gain access to new technology. Here are the top acquisitions in the last 10 years in the restaurant industry: Deal size: $11.4 billion, in 2014 Burger King acquired Tim Horton’s Deal size: $11.3 billion, Inspire Brands acquired Dunkin’ in 2020 A deal currently is being negotiated for $9.6 billion, Subway to be acquired by Roark Capital Deal size: $7.16 billion, JAB acquired Panera in 2017 Deal size: $5.1 billion, Coca-Cola acquired Costa Coffee in 2019 Deal Size: $2.9 billion, Arby’s acquired Buffalo Wild Wing in 2018

🔍 Exploring M&A Dynamics in the Food & Beverage Industry 🌐 Mergers and acquisitions are catalyzing transformation in the food and beverage sector, propelling market consolidation, and fostering innovation. A review by Food Dive illustrates how these strategic moves are reshaping industry standards. Strategic Partnerships: Collaborations are pivotal, with food giants partnering with tech startups and retailers joining forces with meal kit ventures. These alliances expand market reach and spur innovation, allowing companies to tap into new distribution channels and enhance competitive edge. Portfolio Optimization: Firms are streamlining operations and shedding non-core assets, aligning their business strategies with consumer preferences and market demands. This focus on core competencies helps companies optimize resource allocation and enhance shareholder value. Market Consolidation: Acquisitions are enabling firms to scale up, increase market share, and enhance operational efficiencies. Whether it's merging with counterparts or acquiring niche brands, these actions strengthen market presence and achieve cost synergies. Technological and Consumer Trends: The surge in e-commerce, growing interest in plant-based nutrition, and the push towards personalized diets are driving M&A. Companies are acquiring new technologies and innovative business models to stay relevant and meet shifting consumer demands. As the landscape evolves, strategic M&A is more crucial than ever, offering pathways for growth and innovation in the competitive food and beverage industry. #MergersAndAcquisitions #FoodIndustry #Innovation #MarketTrends

Imagine merging two brewing giants – a clash of cultures and a recipe for disaster, right? Wrong! Third Angle helped InBev navigate the post-merger mayhem of AmBev and SABMiller, transforming them into a global powerhouse 🌎💪🏼 How? We fostered collaboration, empowered employees, and unlocked their hidden potential through our powerful network-based approach. The Result? InBev smashed financial targets and ignited a culture of innovation, becoming a true brewing behemoth. Read the full story behind this epic merger success: https://buff.ly/3WfZrpD #businessgrowth #collaboration #transformation #inbev #case-study

The M&A Appetite in Food: A Strategic Outlook for 2024 Recent buzz around major food companies like Mondelēz and General Mills reveals a keen interest in accelerating M&A activities in 2024. While the focus shifts towards strategic "bolt-on" transactions for deeper category presence, an underlying narrative begs attention: the role of private funding sources in shaping the future of food industry M&A. The drive for acquisitions is clear, with industry leaders actively scouting the market for complementary deals. However, a critical aspect not fully explored is the pivotal role of private equity (PE) firms, venture capital (VC), and corporate investors in facilitating these transformative moves. Their involvement could be the linchpin in realizing many potential transactions that align with consumer trends and category expansions. The industry's cautious optimism, mirrored in executives' strategic patience and discipline amidst high asking prices, underscores the importance of aligning acquisition targets with long-term growth objectives. However, bridging the valuation gap remains a challenge, one that innovative funding and investment strategies could address. Private funding entities bring not only capital but also strategic resources and a network that can propel acquired companies to new heights. Their participation could catalyze more deals, especially in trending sectors like snacking, frozen foods, and health-conscious products. As we navigate the evolving landscape, the synergy between strategic corporate objectives and flexible, innovative financing will define success. The food industry stands at the cusp of significant transformation, where the right partnerships and funding mechanisms can unlock unprecedented growth opportunities. Let's discuss how we can leverage these insights for strategic M&A planning and execution in the food ingredients sector. Your thoughts and experiences are invaluable as we explore the dynamics of modern acquisitions and the untapped potential of private funding sources. #MandA #FoodIndustry #PrivateEquity #StrategicGrowth #Innovation

🌐 Unlocking Growth: M&A in Food Industry Portfolio Expansion In the dynamic business landscape, portfolio growth is paramount. Mergers and acquisitions (M&A) in the food industry offer strategic avenues for expansion. Our article delves into successful M&A elements, highlighting benefits, challenges, and key focus areas. Advantages of M&A in Food Industry: 🍴 Market Penetration and Diversification: M&A open new markets, diversify portfolios, minimizing reliance on one segment. 🏆 Brand Enhancement: Acquiring established brands boosts credibility and visibility. 🔄 Operational Synergies: Merging streamlines supply chains, reducing costs and improving efficiency. 🌍 International Expansion: M&A leads to global reach and growth prospects. 🎯 Access to New Segments: Acquisitions tap into untapped demographics. 👨🍳 Innovation and Expertise: Access to new recipes and skills complements existing offerings. Challenges and Considerations: 🤝 Integration Challenges: Harmonizing cultures and systems is vital for synergy. 🔒 Regulatory Compliance: Due diligence ensures compliance. 🚫 Brand Reputation: Prudent rebranding is essential. 💰 Financial Viability: Scrutinizing financial health ensures sustainability. 📈 Adapting to Trends: Aligning with consumer preferences is crucial. Key Focus Areas for M&A Success: 🔍 Rigorous Due Diligence: Identifying red flags early is crucial. 🤝 Cultural Alignment: Congruence ensures seamless integration. 🔄 Synergy Unveiling: Identifying operational efficiencies is paramount. 🏢 Crafting a Brand Strategy: A robust strategy ensures successful integration. 👥 Talent Retention: Keeping key personnel aids continuity. 📣 Customer Transition: Transparent communication ensures smooth transition. Seamless M&A with The Food Guys: 📊 Comprehensive M&A Management: The Food Guys provide end-to-end services for minimal disruptions. 🥘 Domain Expertise: Their industry knowledge identifies aligned targets. 🔍 Strategic Counsel: Insights empower informed decisions. 🌐 Insights and Network: Their network uncovers hidden opportunities. 🔧 Customized Solutions: Tailored approaches ensure seamless integration. ⚖️ Risk Mitigation: Proactive risk assessment aids post-M&A operations. M&A is a compelling strategy for food industry growth. The Food Guys offer expertise, tailored solutions, and comprehensive M&A management. Embrace M&A with The Food Guys to fuel your growth ambitions. #FoodIndustry #MergersAndAcquisitions #BusinessGrowth #TheFoodGuys

In 2024, major food companies like The Hershey Company and Mondelēz International are gearing up to intensify their M&A activities, shifting from big transformational acquisitions to smaller, strategic "bolt-on" deals. This trend is set to have a profound effect on middle-market M&A in 2024 as large strategic buyers are moving downstream in a way that historically "didn't move the needle."   These moves allow for a deeper category presence without the burden of significant debt or complex integration challenges. Mondelēz, in particular, is actively exploring potential acquisitions, having completed nine since 2018, including notable brands like Tate's Bake Shop and Clif Bar.   The current industry trends we see at Greenwich Capital Group LLC lean towards acquisitions in trending categories such as salty snacking, co-manufacturers, and health-conscious foods, reflecting a careful and strategic approach to growth amidst current economic conditions.

From Appetite to Apex: The Unfolding Saga of Just Eat Takeaway.com. Chapter 5: Mergers and Acquisitions. In this period, Just Eat engaged in a series of strategic mergers and acquisitions that played a pivotal role in shaping the company's position as a global leader in online food delivery. One notable acquisition was the purchase of Hungryhouse in the UK, a move that allowed Just Eat to strengthen its presence and consolidate its market share in this key region. By integrating Hungryhouse's user base and restaurant partnerships, Just Eat solidified its position as the go-to platform for online food ordering in the UK. Internationally, Just Eat expanded its footprint through acquisitions like SkipTheDishes in Canada. These strategic moves were driven by the company's vision to establish a strong foothold in diverse markets, capitalizing on local expertise and customer preferences. The series of mergers and acquisitions not only broadened Just Eat's geographical reach but also diversified its service offerings. Collaborating with complementary platforms and absorbing regional competitors contributed to the platform's ability to offer an extensive range of cuisines and dining options to an ever-growing user base. This chapter reflected Just Eat's proactive approach to growth, leveraging acquisitions as a means to expand its influence, enhance its technological capabilities, and stay ahead of the dynamic landscape of the online food delivery industry. The strategic integration of acquired assets positioned Just Eat as a formidable player on the global stage, setting the stage for further industry consolidation and competition. #startup #strategy #tech