31 Jan 2022 --- A new report from Oghma Partners reveals UK Food and Beverage M&A market activity in 2021 was at its highest since 2010. The analysis provides an overview of key themes in notable mergers and acquisitions that took place last year, which include boosted activities in the plant-based sector and direct-to-consumer sales channels. In the last four months of 2021, the UK F&B sector saw a total deal volume amounting to 29 transactions. Compared to 2020, this value was up by 50.8% to 89 transactions.“The total deal value for T3 2021 was estimated at £722.1 million [US$970.8 million],” the report reads. “This boosted the 2021 annual deal value to an estimated £6.6 billion [US$8.9 billion], which is the largest annual deal value we have recorded since 2010.”The appetite from financial investors remained strong throughout 2021, in volume terms they accounted for 20.7% of total deal activity compared to 20.3% in 2020.“Driving this activity is the relative defensiveness of the sector’s cash flows, combined with loose monetary policy, which has led to an inflow of funds into private equity companies as well as a low cost of debt,” the analysts remark.Overseas buyers had another active year, accounting for 39.1% of total deal volume. Interestingly, this was the highest percentage of non-UK corporate buyers involved in UK F&B deals since 2010.
