Overall, the outlook for transactions in the food and beverage industry for the second half of 2024 remains positive, reflecting strong investor interest and dynamic market activities. Food & Beverage Industry News reports.
| Transactions announced | |||
| Date | Target Name | Acquirer | Sector |
| 3 April 2024 | Mismatch Brewing Co | ||
| 78 Degrees spirits | Consortium of investors | Alcoholic beverages | |
| 26 April 2024 | Yowie (78.3% stake) | Keybridge Capital | Confectionery |
| 1 May 2024 | Never Never Distilling Co | Asahi | Alcoholic beverages |
| 6 May 2024 | Birch & Waite Foods | Quadrant Private Equity | Sauces and dressings |
| 20 May 2024 | bWellness | Nuchev | Complementary health |
| 28 May 2024 | PETstock stores & clinics | Pet O | Animal health |
| 4 June 2024 | Thompson’s Herbals and Thursday Plantation | Homart Pharmaceuticals | Nutraceuticals |
Following a slow start to the year, corporate activity in the food and beverage industry picked up in the months of April and May 2024. Seven transactions were announced over the two-month period to May 2024.
ASX-listed Mighty Craft sold the assets associated with Mismatch Brewing Co and 78 Degrees spirits to a consortium of publicans and investors for a consideration of not less than $7.2 million.
The sale encompasses all assets of both brands, including intellectual property and licenses.
The sale of 78 Degrees completed in early June 2024 for a consideration of $5.2 million. The Mismatch sale is expected to complete in mid-June 2024.
Following an off-market takeover offer, Keybridge Capital increased its shareholding in ASX-listed Yowie from 35.5 per cent to 78.4 per cent. The company announced a change to the Yowie management team after the takeover offer closed.
Adelaide-based premium gin maker, Never Never Distilling Co was acquired by Asahi. The gin business was set up 8 years ago and sold 100,000 bottles of premium gin in 2022-23.
Quadrant Private Equity acquired a shareholding in premium liquids business Birch & Waite Foods. The remaining shareholders of Birch & Waite includes Fortitude Investment Partners and the Birch & Waite CEO, Paul O’Brien. Media reports suggest the transaction valued the Birch & Waite business at more than $300 million.
ASX-listed Nuchev acquired bWellness, an Adelaide-based complementary health products supplier. Nuchev paid $7 million for bWellness, settled in cash and Nuchev scrip.
The bWellness brand portfolio includes the BioPractica brand, which together with 3rd party brands are distributed through the practitioner channel and health food stores. The purchase price was based on a 4.3x multiple of FY23 normalised EBITDA.
Independently owned retail pet chain PetO, acquired 41 stores and 25 veterinary clinics from PETstock. PETstock is privately owned, with Woolworths acquiring a 55 per cent stake in the business in 2022.
As a condition of the Woolworths investment in PETstock, the ACCC required PETstock to divest some of its sites. The acquisition of the stores and clinics will increase the annual revenue of PetO to $200 million.
Homart Pharmaceuticals, a Sydney based complementary health and beauty products business acquired the Thomson’s Herbals and Thursday Plantation brands from New Zealand-owned Integria Healthcare.
The two brands will provide additional scale for the Homart business as Homart works towards an IPO in 2025.
The outlook for transactions in the food and beverage industry halfway through 2024 remains positive.
Ben van der Westhuizen and David Baveystock are directors of Comet Line Consulting.