Mergers and acquisitions to rise in 2014
Mergers and acquisitions will rise in the UK’s food and drink manufacturing sector in 2014 as business confidence grows, according to financial advisory firm Grant Thornton.
Ashley Clarkson, associate director for food and beverage at Grant Thornton, said private equity firms that acquired companies at the top of the market between 2005 and 2007 were looking to sell them off without taking too much of a hit.
Whereas other businesses, which are “sitting on a lot of cash”, were looking for good investment opportunities in the sector, he added.
Clarkson predicted we would see an increasing interest from potential overseas purchasers of UK companies and food and drink brands. He added that the drink sector would be a likely target.
To view our interactive timeline marking a growing trend for British food and drink brands being sold overseas, click here.
“Going into 2014 there is a lot more optimism – it’s the drip feed of good news and good indicators. Because we have been in such a slow growth economy, if you are going to grow your business, organically it’s a long journey so therefore you look to acquisitions for quicker growth.”
But Clarkson admitted many deals had been unsuccessful in the past.
Meanwhile, don't miss food industry leaders' predictions about the likelihood of more government regulation in 2014 and the prospect of closer scrutiny from politicians in advance of the 2015 general election.
