U.K. M&A in food and beverage sector highest since 2010

U.K. food and beverage mergers & acquisitions (M&A) market activity was at its highest since 2010, according to Oghma Partners.

Deal value in T2 (May – August 2021) was at an estimated £3.9 billion (€4.5 billion/$5.3 billion), the largest total recorded since 2010, underpinning the M&A recovery story. The year-to-date total value of recorded deals are estimated at £5.8 billion (€6.8 billion/$7.9 billion) — the nearest previous annual total was of £5.6 billion (€6.7 billion/$7.6 billion) in 2015.

At the current rate of activity, 2021 should see deal volume recover to pre-pandemic levels and in line with the long-term average. However, like-for-like deal volume comparators start to get tougher given the recovery seen in deal volume in the final period of last year. In addition, the trading environment is challenging; cost pressures appear to be popping up in most directions whether that be labor, energy, raw material or distribution costs. The ne