PE Appetite for Food & Nutrition Falls in 2019
For both private equity and corporate buyers in 2019 it was the year to digest food & nutrition-related companies already backed, rather than to gobble up new ones.
Private equity firms invested in 153 U.S. and Canadian food & nutrition companies as of mid-December, according to data from Sutton Place Strategies. That put the industry on pace to fall well short of the 199 comparable deals consummated in 2018 and 191 deals in 2017.
Similarly, corporate buyers slowed their pace of acquisitions. The 130 U.S. and Canadian food & nutrition companies that they had backed as of mid-December marked a big drop from 182 the year before and 162 in 2017.
The food & nutrition category is defined to include agriculture, consumable food products and food-related products and services. It does not include alcohol or restaurant transactions. The figures include platform deals, add-ons, financings and recapitalizations.