2017 has been another incredibly busy year for the food and beverage industry, and billions have been spent by companies seeking to expand their businesses into new markets or to diversify their product ranges.
Here we round up the top five mergers and acquisitions to take place this year.
Reckitt Benckiser’s $17.9bn takeover of Mead Johnson
February was a big month for consumer goods brand Reckitt Benckiser, as it announced the $17.9 billion acquisition of infant nutrition company Mead Johnson.
Reckitt Benckiser agreed to pay $90 cash for each share of Mead Johnson’s common stock, and the price included Mead Johnson’s net debt of $1.2 billion, and represents a premium of 30% on its closing price on 1 February.
McCormick takes over Reckitt Benckiser’s food unit for $4.2bn
In July, McCormick acquired Reckitt Benckiser’s food assets, including brands like French’s mustard and Frank’s RedHot sauce, after agreeing a $4.2 billion deal.
The sale came three-and-a-half months after RB announced that it would offload the business, in the face of more than £4 billion’s worth of debt and its aforementioned $17.9bn takeover of Mead Johnson.
Tyson Foods focusing on protein after $4.2bn AdvancePierre deal
In April, Tyson Foods agreed a deal to acquire AdvancePierre Foods for $4.2 billion, in a deal that it said would ‘expand its portfolio of prepared foods’ and ‘contribute to sustainable, long-term growth’.
The deal came a day after Tyson Foods announced that it was exploring the sale of three non-protein businesses, with protein-packed brands continuing to be a major part of its corporate strategy.
Third Point buys a 1.3% stake in Nestle for $3.5bn
American hedge fund Third Point unveiled it had bought a $3.5 billion stake in Nestlé in June. The fund, led by activist investor Dan Loeb, took an investment position of around 1.3% of Nestlé.
Following the announcement, Nestlé shares surged by 4.7% to an all-time high, with investors responding favourably to the announcement.
Femsa sells a 5.24% stake in Heineken for €2.5bn
Heineken’s second-largest investor, Femsa, sold a 5.24% stake in the brewer for €2.5 billion in September.
Femsa said it offered 3.9% of Heineken’s shares at a price of €84.50 each to institutional investors outside Mexico as well as 2.67% in the brewer’s parent company Heineken Holding at €78 each.
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