Study shows 29% increase in UK food and beverage M&A deals in 2024
A recent study conducted by London-based advisory firm Oghma Partners revealed a substantial increase in mergers and acquisitions (M&A) in the UK food and beverage sector. The report indicated that there was a 29% surge in M&A deals in 2024 compared to the previous year, with a total of 151 transactions recorded in 2024 as opposed to 117 in 2023.
One of the noteworthy transactions that contributed significantly to the total deal value was Carlsberg’s acquisition of UK soft-drinks group Britvic. While this deal stood out as a big-ticket item, excluding it from the calculations, the combined value of deals in the sector still rose by about 31% to £2.7bn ($3.32bn).
In addition to the Carlsberg-Britvic deal, another major acquisition that made headlines in 2024 was Italy-based Newlat Food’s purchase of UK food-and-drinks company Princes from Japan’s Mitsubishi Corp. for a substantial £700m. This acquisition added to the growing trend of strategic moves within the industry.
The third quarter of 2024 witnessed a significant increase of 25.5% in deal volumes, with 59 transactions taking place during that period compared to the same period in 2023. It is evident that there was heightened activity in the food and beverage M&A landscape throughout the year.
Despite the overall rise in deal value and volume, smaller transactions remained prevalent in the market, with 68.9% of deals valued at £10m or less. This percentage, while still substantial, marked a slight decline from the previous year when 75% of deals fell into the same category. Despite this shift, smaller transactions continued to dominate the market scene.
The data suggest that the UK food and beverage sector experienced significant activity in terms of mergers and acquisitions in 2024. With a notable increase in deal volumes and values, the industry saw strategic moves and market realignments through key acquisitions. This trend showcases the dynamic nature of the sector and points towards continued growth and development in the future.
