Press release
Grant Thornton’s Agribusiness, Food and Beverage Dealtracker reports sector will be shaped by sustainability and innovation
12 Dec 2024
Grant Thornton has released the findings of its 2024 Agribusiness, Food and Beverage Dealtracker, an analysis of the Australian mergers and acquisition (M&A) and equity market activity in the Agribusiness, Food and Beverage sectors for the 18-month period ended 30 June 2024.
While economic uncertainty remains, the Dealtracker shows a strategic shift in Australia’s Agribusiness, Food & Beverage (Ag, F&B) sector, with more focused deal activity in the mid-market space concentrating on future-focused businesses that are tech-enabled, innovative, and prioritise ESG and sustainability.
Agribusiness, Food and Beverage Dealtracker Snapshot
- Australia ranked sixth globally by deal volume recording 49 deals, a slight decline compared to prior reporting periods. However, 92 per cent of domestic deals were valued below $50m, compared to 69 per cent over historical periods, indicating greater focus on mid-market deals.
- Packaged foods continue to dominate, accounting for 53 per cent of Australian transactions. While there was an 8 per cent decrease from the historical period, six of the top 10 Australian deals were in this sub-sector.
- Transaction multiples increased showing buyers willingness to pursue the right opportunity.
- Tech-enabled, innovative, ESG and sustainability focused businesses continue to attract significant interest, suggesting businesses that remain agile and able to adapt to ESG and sustainability requirements will come out on top.
- Global M&A deals decreased with a 16.6 per cent reduction compared to the prior 18-month period.
- Asia-Pacific cornered the global IPOs, with 94 per cent of global IPOs including 27 in India and 12 in China.
“While Australian deal volumes have slowed reflecting inflationary concerns, domestic mergers and acquisitions in the Agribusiness, Food & Beverage sector have shown a shift toward the mid-market suggesting a real opportunity for those businesses able to be agile and stay on the front foot when it comes to ESG and sustainability,” said Cameron Bacon, National Head of Agribusiness, Food & Beverage at Grant Thornton.
Over the 18-month reporting period, there were 26 transactions with disclosed multiples, with the median transaction multiple increasing to 11.4x, a positive increase from the historical median of 10.0x. There was a downward trend in the number of global IPOs, reflecting market conditions and inflationary pressures. The average IPO proceeds have also reduced from $118.5m in the previous period to $58.0m for the current period, largely due to smaller IPOs in emerging markets.
Locally, Australia leads the charge with 69 per cent of domestic deals focused on domestic acquisitions. Australia remains an attractive investment, with the share of foreign buyers increasing from 17 per cent of deals to 20 per cent in this reporting period.
The 2024 Agribusiness, Food and Beverage Dealtracker report examines M&A and equity market activity in the Agriculture, Food & Beverage sector between 1 January 2023 and 30 June 2024 (the Current Period), while our earlier editions (the Historical Period) covered the 13-year period from 1 January 2011 to 31 December 2023.
Experts / Authors
Carla van den Hoorn
Communications Manager
