How to Strengthen M&A Strategies for 2025
Private equity investor Pritzker Private Capital has been making waves in the food and beverage industry with its strategic investments in companies like C.H. Guenther & Son and Monogram Foods Sugar Foods. Leading the charge in the food and beverage arm is investment partner Chris Trick, who sat down with us to share insights into Pritzker Private Capital’s investment strategy and the state of the mergers and acquisitions (M&A) landscape in the US.
Over the past decade, Trick has seen a shift in the way private equity invests in the food industry. While financial engineering used to be the primary driver of returns, today, expertise in the sector, operational efficiencies, and a focus on innovation are essential for success. It’s not just about providing capital anymore – it’s about bringing something more to the table.
When it comes to the types of companies that interest Pritzker Private Capital, Trick emphasizes a preference for family-owned or founder-led businesses with a strong legacy. True partnerships, a dedicated team, and a culture of innovation are key criteria for potential investments. The firm focuses on companies with a history of innovation and a defensible market position, with an emphasis on net sales of $20 million in EBITDA.
While Pritzker Private Capital primarily targets North America-headquartered businesses, the firm also has a significant presence in Europe, Asia, and Central-South America. The goal is to be true partners to businesses, which requires geographical proximity for effective collaboration.
In terms of deal-making, Pritzker Private Capital is not a high-volume firm, typically completing two to three new platform investments a year and around 15 add-on acquisitions across all companies. Despite a slower M&A environment in 2024, Trick anticipates a more robust market in 2025 based on industry conversations and market trends.
The slower activity in the food and beverage space can be attributed to factors like steady business performance, increased debt costs, and uncertain market conditions. However, with stabilized food volumes and a more favorable interest rate environment, the stage is set for increased M&A activity in the coming year.
In conclusion, Pritzker Private Capital remains committed to identifying strategic investment opportunities in the food and beverage sector, with a focus on true partnerships, innovation, and sustainable growth. The firm’s proactive approach and deep industry expertise position it well for success in the evolving landscape of food industry investments.
