TSG Led Panel Discussion on Directions and Trends Influencing M&A Activity in Healthy Foods Categories at the Healthy Foods European Summit in London
TSG provided an overview of trends in mergers and acquisitions in the food and beverage industry followed by a panel discussion with views from a selection of sector leaders. The discussion was hosted by Dr. Seth Taylor of TSG and highlighted two industry leaders who have utilized strategic M&A and partnerships to drive corporate growth.
In light of recent turmoil in the global financial markets, Maurice Keane, commented that, “Yes, the economic climate has changed, but the trends are similar and our acquisitions will continue, although there may be less involvement of banks and more partial acquisitions.” He is speaking from experience, as Glanbia recently acquired Optimum Nutrition and Pizzey’s Milling, which has been renamed Pizzey’s Nutritionals. Keane was optimistic about future acquisitions and said that his company’s “fairly active acquisition strategy” along with tighter budgets could encourage consumer and government interest in functional and healthy foods; food categories Glanbia is best known for.
Yigal Galli, spoke of the acquisitions that have assisted in diversifying Maabarot’s product focus. Recently Maabarot entered into a global partnership with Nestle Nutrition around the company’s successful infant formula subsidiary. Other acquisitions have included a children’s vitamin company and an organic food company.
Both spoke on the importance of maximizing value of acquired companies by retaining their corporate culture. “The acquisition should unlock the potential of the company and that won’t happen by crushing the company’s culture,” said Galli.
Despite current economic slowdown, the opportunities for strategic mergers and acquisitions are still needed and as Seth Taylor of TSG said, “it is a good time to consider merger and acquisition activity.” TSG anticipates increasing M&A activity as dwindling investor dollars and cash flows encourage companies in the food and beverage industry to consolidate.
TSG is a specialty advisory group that combines growth strategy and corporate finance to create shareholder value for companies in the life sciences, biotechnology, healthcare, and wellness sectors. TSG’s approach is based on a combination of independent analysis of the markets and customer needs and a deep appreciation of the technology landscape and capital markets environment. TSG’s focus on growth aims at bringing together growth strategy and transaction insight to build sector leaders. TSG has presence in Atlanta, Boston, New York and Silicon Valley and was founded in 2001 by Panna Sharma. TSG can be found on the internet at www.tsg-partners.com.
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