RubinBrown Food & Beverage Update 2015

M&A Activity Overview: Buyer Landscape

Strategic Buyers Dominate the Industry As shown in the chart to the right, strategic buyers continued to dominate the majority of the acquisitions during the first half of 2015, accounting for approximately 82.0% of all transactions. Consolidation within the food and beverage industry will continue to drive strategic acquisitions, especially as favorable market conditions (i.e., low interest rates) and idle cash stockpiles promote deal activity. While many industries experience growth via product or technology innovation, growth in the food and beverage industry comes almost exclusively from adding new offerings. The quickest, and often most efficient, way for industry participants to grow revenue and thus market share is through mergers and acquisitions. Acquisitions of all sizes provide a way for buyers to gain market share and boost growth – large targets can be acquired to capitalize on economies of scale and strong brand recognition, while smaller targets can provide buyers with specialized or niche products. The following page highlights some of the more notable transactions over the last twelve months.

Strategic vs. Financial Deals

80

6

4 6

8

70

1

3

6

12

60

6 13

6

2

1

7

50

8

7

10

4 2

7

40

66

65

30

56 56

Number of Deals

52

48

45

20

39

39 41

10

0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015

Strategic Buyer

Financial Buyer

Anonymous Buyer

Source: S&P Capital IQ Reflects all closed Food & Beverage transactions, regardless of size.

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Food & Beverage Industry Sector: 2015 Mid-Year Update

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