Food and beverage M&A update: H2 2023

Introduction – M&A market overview

The total number of mergers and acquisitions (M&A) transactions in the food and beverage industry trended downward during the second half of 2023 (H2 2023), while the aggregate closed deal value increased significantly relative to H1 2023. H2 2023 aggregate closed deal value in the food and beverage industry increased by approximately 168% relative to H1 2023. Middle market M&A transactions closed deal value in the food and beverage industry decreased by approximately 9% in H2 2023 compared to H1 2023. Strategic buyers remained the most active buyers in the industry.

Food and beverage relative market performance

BT Capital’s index of public companies in the food a beverage industry (BT Capital’s Food & Beverage Index) lagged behind the performance of the S&P 500 by approximately 25% in H2 2023 (Table 2 contains the public companies that were included in BT Capital’s Food & Beverage Index). The S&P 500 increased from a total return of 16.38% in H1 2023 to 24.73% in H2 2023, while BT Capital’s Food & Beverage Index increased from a total return of -2.14% in H1 2023 to -0.07% in H2 2023.