BOSTON, MA - If you are an avid follower of AndNowUKnow, then you know strategic mergers and acquisitions (M&A) have continued to make headlines in our industry. Investment banking firm Capstone Partners has released its February 2022 Food & Agriculture Sector Update, revealing that M&A volume in the food and ag industry jumped 17 percent year-over-year in 2021.

“After years of declining input costs, cheap energy prices, and overall food deflation, 2021 started a major reversal,” said Capstone Managing Director Brian Boyle, the lead contributor in the report. “Strategic acquirers responded by seeking scale, automation, and operational efficiencies to offset this challenging operating environment.”

A total of 383 deals were announced or completed in 2021, marking the highest number of transactions in more than four years. According to a press release, private strategic buyers continued to lead transaction activity in 2021, accounting for 45 percent of total M&A volume. Many of these strategic moves were made to achieve enhanced scale and better supply chain control.

Also revealed in the report, the food and agriculture industry also saw significant channel crossover, especially among foodservice providers, as they increasingly sought acquisitions in the grocery and retail space after drastic declines were witnessed at the height of the pandemic.

In addition, private equity firms comprised 36 percent of 2021 transaction volume. According to Capstone, the overall food and beverage sector has been the most sought-after space among private equity firms in its proprietary database.

To access the full February 2022 Food & Agriculture Sector Update, click here.

AndNowUKnow is always reporting on the latest acquisitions, mergers, and other strategic plays taking place within the food and agriculture industries, so leave a tab open for us.

Capstone Partners