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A strong start to 2022 for markets

2022

Corporate activity in the food and beverage industry continued to be strong at the start of 2022. Fourteen transactions were announced over the two-month period to mid-February 2022.

Transactions announced

Date Target Name Acquirer Sector
21 December 21 Chefgood Marley Spoon Prepared meals
23 December 21 Get Wines Direct BoozeBud Online alcohol retail
23 December 21 Pryde’s EasiFeed Sunrice Animal feed
29 December 21 Jetty Road Brewery (32.5%) Mighty Craft Craft beer
10 January 22 Easi Hungry Panda Meal delivery
11 January 22 MG Kailis Holdings Sea Harvest Australia Seafood
18 January22 Fei Fah Media Balm (HK) Co nutrition Nature One Dairy Value-added dairy
25 January 22 Australian Beer Co (50%) Casella Family Brands Beer
30 January 22 The Man Shake (controlling stake) Pacific Equity Partners Weight loss
1 February 22 Black Hops Brewery ($2.2 million) Crowdfunding investors Craft beer
6 February 22 The Cheesecake Shop River Capital Hospitality
9 February 22 Fen Food ($3 million capital raise) Bombora Investment Mgm Plant-based foods
10 February 22 Suntory Fresh Coffee business UCC Holdings Coffee
11 February 22 All G Foods (capital raise) Investors including Woolworths Plant-based foods

CopRice, a subsidiary of ASX-listed Sunrice, acquired Pryde’s EasiFeed business for $38 million. The transaction valued the Pryde’s business on a 5.8x EBITDA multiple.

UK-based HungryPanda acquired Melbourne based food delivery business, Easi for a cash consideration of approximately $50 million.

Sea Harvest Australia acquired MG Kailis Holdings for a consideration of $70 million. The acquisition includes vessels, licenses, and fishing rights for prawns in the Exmouth region and trawled fish in the Pilbara region. The transaction valued MG Kailis Holdings on an 11.2x price earnings ratio.

Nature One Dairy acquired Fei Fah Medi Balm (HK) Co’s adult dairy nutrition business in a script-based transaction, valued at approximately $30 million.

Coca-Cola Europacific Partners Australia sold its interest in the Australian Beer Co joint venture to Casella Family Brands. The disposal follows Coca-Cola’s announcement of its exit from the Australian beer market and the proposed sale of Feral Breweries.

Pacific Equity Partners acquired a controlling stake in the business that owns the popular The Man Shake weight loss product. The transaction reportedly valued The Man Shake at approximately $200 million.

PAG Asia Capital sold The Cheescake Shop to River Capital for an undisclosed consideration.

Suntory Beverage & Food sold its Oceania fresh coffee business to UCC Holdings for ¥18.5bn (~A$225 million). The Oceania fresh coffee business is the largest coffee roaster in ANZ and includes coffee brands Toby’s Estate, Atomic, L’affare, Robert Harris and Mocopan.

The outlook for 2022 is positive with strong investor interest in the food and beverage industry and a pipeline of exciting investment opportunities.

 

2022
Ben van der Westhuizen and David Baveystock

Ben van der Westhuizen and David Baveystock are directors of Comet Line Consulting, an advisory business that specialises in acquisitions and divestments within the Australian food and beverage industry. For more information visit www.cometlineconsulting.com.au.

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