According to the latest data by corporate finance house, Oghma Partners, the year-to-date total value of recorded deals is estimated at £5.8 billion, surpassing every other year recorded since 2010.
The nearest annual total was that of £5.6 billion in 2015.
Amongst other findings, the mergers and acquisitions report found:
- The four-month period to end of August saw the continued recovery in the number of deals, first noted in the last third 2020
- Deal value in T2 (May – August 2021) at an estimated £3.9 billion is the largest total for the period recorded since 2010
- Two of the three largest deals to happen over the T2 period involved food manufacturers: the sale of Valeo Foods to Bain Capital and the purchase of Kerry’s ready meals and meats business by Pilgrim’s Pride.
The report also stated that four deals accounted for 70% of the year-to-date total and two of these transactions were private equity backed acquisitions.
According to Oghma Partners, overseas buyers “have not lost their appetite for UK businesses”, with Ferrero’s acquisition of Burton’s Biscuits and Newlat’s acquisition of Symington’s being two examples.
The overview of activity from T2 also demonstrated the interest in plant-based foods hasn’t waned, noting Saputo’s acquisition of dairy alternative cheese maker, Bute Island Foods. The report added that plant-based food is a “high margin category” that has been attracting a lot of attention from potential buyers.
Other deals in the plant-based area include the snacking company Pulsin – bought by S Ventures – and Elysian Capital’s acquisition of Wholebake, a manufacturer and distributor of own-brand gluten-free cereal bars to supermarkets and health food shops.
The report has predicted that at the current rate of activity, 2021 should see deal volume recover to pre-pandemic levels and in line with the long-term average.
