Private equity deals surge in F&B market

Grant Thornton’s latest food and beverage insights found that the total deal value for PE in Q3 has also increased, up from £1.98bn in Q2 2021, to £3.7bn

Of the 32 deals announced in the food and beverage sector in Q3, 44% involved private equity (PE), a “significant” increase compared to the 33% in Q2, according to new research from Grant Thornton.

The deal value this quarter was notably inflated by PAI Partners’ acquisition of PepsiCo Inc. Excluding this, however, the total disclosed deal value involving private equity for Q3 was £1.3bn.

Looking at quarter-on-quarter, deal value also remained steady at £3.8bn, with the three largest completed deals driven by PE.

Meanwhile, cross-border deals dominated the market in Q3, accounting for 56% of activity compared to 49% in Q2. In particular, overseas investments in the UK rose to 44%, compared to 30% in Q2, showing that foreign investors still see potential in the right UK opportunities.

Deli and plant-based companies also piqued interest this quarter, accounting for 22% of deal activity, showing that this ongoing trend in the market has no sign of abating.

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