Europe’s drinks industry saw a rise of 73.9 % in overall deal activity during Q2 2019, when compared to the four-quarter average, according to GlobalData, a leading data and analytics company.
A total of 40 deals worth $76.18m were announced for the region during Q2 2019, against the last four-quarter average of 23 deals.
Of all the deal types, merger and acquisition (M&A) saw the most activity in Q2 2019 with 24, representing a 60 % share for the region.
In second place was venture financing with ten deals, followed by private equity deals with six transactions, respectively capturing a 25 % and 15 % share of the overall deal activity for the quarter.
In terms of value of deals, M&A was the leading category in Europe’s drinks industry with $55.98m, while venture financing deals totaled $20.2m.
Europe drinks industry deals in Q2 2019: Top deals
The top five drinks deals accounted for 80.9 % of the overall value during Q2 2019.
The combined value of the top five drinks deals stood at $61.65m, against the overall value of $76.18m recorded for the quarter. The top announced drinks deal tracked by GlobalData in Q2 2019 was Cafento Coffee Factory S.L’s $33.58m acquisition of Java Republic.
In second place was the $20.39m asset transaction with The Glenturret by Lalique Group and in third place was Five Seasons Ventures and New Ground Ventures’ $4.73m venture financing of YFood Labs.
The $1.68m venture financing of Champagne EPC by Cedric Sellin, Cedric Sire and Kima Ventures and AG Barr’s stake acquisition of Elegantly Spirited for $1.27m held fourth and fifth positions, respectively.
Total drinks industry merger and acquisition (M&A) deals in Q2 2019 worth $2.11bn were announced globally, according to GlobalData, a leading data and analytics company.
The value marked an increase of 74.6 % over the previous quarter and a drop of 44.1 % when compared with the last four-quarter average, which stood at $3.78bn.
Comparing deals value in different regions of the globe, North America held the top position, with total announced deals in the period worth $2.01bn. At the country level, the US topped the list in terms of deal value at $2bn.
In terms of volumes, Europe emerged as the top region for drinks industry M&A deals globally, followed by North America and then Asia-Pacific.
The top country in terms of M&A deals activity in Q2 2019 was the US with 18 deals, followed by the UK with seven and Spain with four.
At the end of Q2 2019, drinks M&A deals worth $3.32bn were announced globally, marking a decrease of 87.2% year on year.
Drinks industry M&A deals in Q2 2019: Top deals
The top five drinks industry M&A deals accounted for 98.2% of the overall value during Q2 2019.
The combined value of the top five drinks industry M&A deals stood at $2.08bn, against the overall value of $2.11bn recorded for the quarter. The top announced drinks industry M&A deal tracked by GlobalData in Q2 2019 was E. & J. Gallo Winery’s $1.7bn asset transaction with Constellation Brands.
In second place was the $300m acquisition of Dogfish Head Brewery by The Boston Beer and in third place was Cafento Coffee Factory S.L’s $33.58m acquisition of Java Republic.
The $21.62m asset transaction with McLeod Russel India by Luxmi TeaLimited and Lalique Group’s asset transaction with The Glenturret for $20.39m held fourth and fifth positions, respectively.
Out of a record 777 food and drink transactions covered by the bevblog.net mergers and acquisitions database for 2018, 28 involved sums over USD 1,000 million. This was below the 33 recorded in 2017, but higher than the numbers for 2015 and 2016.
The USD 104 billion combined value of the top 10 was 36 % higher than the USD 77 billion for the top 10 of 2017, but 39 % lower than the USD 171 billion for the top 10 of 2016 and little more than a quarter of the USD 365 billion for the top 10 of 2015.
The 28 over USD 1 billion totalled USD 141 billion, compared with USD 115 billion for the 33 over USD 1 billion in 2017, USD 190 billion for the 22 over USD 1 billion in 2016 and USD 403 billion for the 27 over USD 1 billion in 2015.
Link to database
Dr Pepper Snapple Group, Inc. and Keurig Green Mountain, Inc. announced that the companies have entered into a definitive merger agreement to create Keurig Dr Pepper (“KDP”), a new beverage company of scale with a portfolio of iconic consumer brands and unrivaled distribution capability to reach virtually every point-of-sale in North America. Under the terms of the agreement, which has been unanimously approved by the Dr Pepper Snapple Board of Directors, Dr Pepper Snapple shareholders will receive $ 103.75 per share in a special cash dividend and retain 13 % of the combined company.
KDP will have pro forma combined 2017 annual revenues of approximately $11 billion. This combination of two iconic beverage companies joins together beloved brands Dr Pepper, 7UP, Snapple, A&W, Mott’s and Sunkist with leading coffee brand Green Mountain Coffee Roasters and the innovative Keurig single-serve coffee system, as well as more than 75 owned, licensed and partner brands in the Keurig system.
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