Food and Beverage M&A Update
- The S&P Food & Beverage Select Industry Index rose by 3.0% in Q1 2023 but was outperformed by the S&P 500, which increased 7.5% in the quarter.
- M&A deal volume increased 11.7% in Q1 2023 to 239 completed transactions from 214 in Q4 2022 and increased 35.0% from 177 deals in Q1 of the prior year.
- In Q1 2023, PE accounted for 33.5% of total deals in the Food & Beverage sector compared to 34.5% in the prior year.
- The most notable deal of the quarter was the U.S. based $7.2 billion acquisition of Seattle’s Best Coffee by Nestlé in January 2023. From a volume standpoint, Europe was the most active region in Q1 with 109 deals vs 71 in the U.S.
- As a % of total capital invested in M&A transactions in Q1, PE participation decreased significantly to 23.4%, down from 37.3% in 2022.