RubinBrown Food & Beverage Year in Review 2013

M&A Activity Overview: All Food & Beverage Deals

Slow Start to 2013 Food & Beverage Deal Activity In 2013, overall Food & Beverage deal volume decreased approximately 4.3% from 2012. Many deals were pulled forward into 2012, as investors feared an increase in the long-term capital gains tax rate beginning in 2013. This caused a spike in the number of transactions towards the end of 2012 (up 21.3% in Q4 2012), and a substantial decline in activity (down 20.6% in Q1 2013) during the first half of 2013. Food & Beverage M&A activity rebounded considerably during the second half of 2013. The second quarter of 2013 marked the low point for the year, with only 102 transactions taking place. Deal volume increased nearly 12.7% during the third quarter of 2013, followed by an additional increase of 7.8% in the fourth quarter. As illustrated in the chart to the right, strategic buyers once again outpaced financial buyers by a wide margin, as strategic buyers accounted for nearly 81.6% of all deals in 2013. The following page highlights the most acquisitive buyers during 2012 and 2013.

Strategic vs. Financial Deals

110 120 130 140

12 10

5

3

8

15

3

9 8

3

19

14 8

70 80 90 100 of Deals

13 10

14

30 40 50 60

# 

109

104

93

92 95 97

81 85

0 10 20 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Strategic Buyer Financial Buyer Anonymous Buyer

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

Food & Beverage Sector: 2013 Review

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