MARKETWATCH

Deal activity picks up

Corporate activity in the food and beverage industry remained high over the two-month period from June to July 2021. Twelve transactions were announced over the two-month period.

Krio Krush, a leading manufacturer and supplier of natural seasonings, herbs and spices to the foodservice channel was acquired by Atlantic Growth Capital. Comet Line Consulting advised Krio Krush on the sale to Atlantic Growth Capital.

The world’s largest pure-play coffee and tea company, JDE Peet’s, acquired Campos Coffee. Campos Coffee is a specialty coffee roaster with distribution in multiple channels including direct-to-consumer, retail and its own flagship cafes. Comet Line Consulting assisted JDE Peet’s with the transaction.

Costa Group acquired Select Fresh, a leading fruit and vegetable distributor to the foodservice and independent retail channels in Western Australia. Comet Line Consulting advised Select Fresh on the sale to Costa Group.

HelloFresh submitted a $125 million offer to acquire ASX-listed Youfoodz. The 93 cents per share offer is subject to Youfoodz shareholder approval and the Youfoodz board of directors recommended that shareholders accept the offer. Youfoodz listed on the ASX in December 2020 and shares were issued at $1.50 per share during the IPO.

Perfection Fresh acquired full ownership of Fruit Master Australia. Perfection Fresh obtained a shareholding in Fruit Master Australia in 2016, when the companies merged their table grape businesses. The acquisition enables Perfection Fresh to expand its presence and capability in export markets.

Nature One acquired Nepean River Dairy for $36.5 million. Nepean River Dairy sells a range of milk products including cows milk, flavoured milk and long-life milk. The manufacturing capabilities and product portfolio of Nepean River Dairy will be merged under the Nature One Dairy brand.

German based Intersnack acquired the remaining 60 per cent shareholding in Universal Robina Oceania. Universal Robina Oceania operates through two subsidiaries: Snack Brands Australia and Griffin’s Foods (New Zealand). Both businesses operate through a variety of brands. F

Transactions announced

Date Target Name Acquirer Sector

1 June 2021 Krio Krush Basic Foods Atlantic Growth Capital Seasonings and spices

9 June 2021 Rivalea Australia JBS Australia Meat processing

15 June 2021 Campos Coffee JDE Peat’s Non-alcoholic beverages

23 June 2021 2PH Farms Costa Group Fresh produce

23 June 2021 Select Fresh

5 July 2021 Lyka ($6.5 million capital raise) 13 July 2021 Harvest B ($3.5m seed funding)

13 July 2021 Youfoodz Costa Group Fruit & veg providore

Shearwater and Wattle Hill Petfood

Woolworths and Aura Ventures Plant-based foods

HelloFresh Ready-made meals

23 July 2021 Fruit Master Australia Perfection Fresh Fresh produce

27 July 2021 Nepean River Dairy Nature One Dairy

28 July 2021 Cameron of Tasmania Yumbah Aquaculture Seafood

30 July 2021 Universal Robina Oceania (60%) Intersnack Snacking and biscuits

Ben van der Westhuizen and David Baveystock are directors of Comet Line Consulting, an advisory business that specialises in acquisitions and divestments within the Australian food and beverage industry. For more information, visit www.cometlineconsulting.com.au.

Commodity Outlook

WHEAT: The gross value of wheat production is estimated at a record $9.7 billion, reflecting record production combined with relatively high prices.

COARSE GRAINS: Barley and canola also recorded significant increases in value year-on-year. The value of barley exports by 63 per cent to $2.4 billion

OILSEEDS: The value of oilseed exports increased by 54 per cent to $1.8 billion. BEEF, VEAL AND SHEEP MEAT: Beef and veal are forecast to account for 37 per cent of exports in 2020–21.

DAIRY: Dairy products are forecast to account for 17 per cent of exports in 2020-21.

Source: Department of Agriculture and Water and the Environment (ABARES), Agricultural commodities, 2020-21 FY.