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TREND SPOTTING no deals?


Deals or by LIZ CLAYDON, Partner, KPMG


The pull of food and drink brands, the cash they generate and evolving corporate strategies will drive acquisitions, says Liz Claydon, Head of Consumer Markets.


S


ome famous food and drink brands have found new owners in the last two years. The acquisition of such famous names as Bertolli, Burton’s Biscuit Company, Ribena and Weetabix is, in part, a refl ection of evolving corporate strategies. With the big FMCG groups constantly refi ning their portfolio – and the mood among customers, regulators and rivals changing – businesses that were once deemed core


can come to seem peripheral.


The intriguing aspect of these transactions is that sellers have so little diffi culty fi nding buyers. The acquirers – be they private equity fi rms, companies in emerging markets or established players – are attracted to brands with a global resonance, that are stable businesses, generate resilient cash fl ows, and have the kind of intellectual property and know-how they can learn from and apply across their business.


This rationale underpinned the acquisition of Weetabix by Chinese company Bright Foods in 2012. As Bright has also acquired Manassen in Australia and 56% of Tnuva, one of Israel’s largest food businesses, the company certainly doesn’t lack ambition.


FOCUS 9


© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.


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