Mike Meyrick’s Post

🔍 Exploring M&A Dynamics in the Food & Beverage Industry 🌐 Mergers and acquisitions are catalyzing transformation in the food and beverage sector, propelling market consolidation, and fostering innovation. A review by Food Dive illustrates how these strategic moves are reshaping industry standards. Strategic Partnerships: Collaborations are pivotal, with food giants partnering with tech startups and retailers joining forces with meal kit ventures. These alliances expand market reach and spur innovation, allowing companies to tap into new distribution channels and enhance competitive edge. Portfolio Optimization: Firms are streamlining operations and shedding non-core assets, aligning their business strategies with consumer preferences and market demands. This focus on core competencies helps companies optimize resource allocation and enhance shareholder value. Market Consolidation: Acquisitions are enabling firms to scale up, increase market share, and enhance operational efficiencies. Whether it's merging with counterparts or acquiring niche brands, these actions strengthen market presence and achieve cost synergies. Technological and Consumer Trends: The surge in e-commerce, growing interest in plant-based nutrition, and the push towards personalized diets are driving M&A. Companies are acquiring new technologies and innovative business models to stay relevant and meet shifting consumer demands. As the landscape evolves, strategic M&A is more crucial than ever, offering pathways for growth and innovation in the competitive food and beverage industry. #MergersAndAcquisitions #FoodIndustry #Innovation #MarketTrends

🔍 Exploring M&A Dynamics in the Food & Beverage Industry 🌐 Mergers and acquisitions are catalyzing transformation in the food and beverage sector, propelling market consolidation, and fostering innovation. A review by Food Dive illustrates how these strategic moves are reshaping industry standards. Strategic Partnerships: Collaborations are pivotal, with food giants partnering with tech startups and retailers joining forces with meal kit ventures. These alliances expand market reach and spur innovation, allowing companies to tap into new distribution channels and enhance competitive edge. Portfolio Optimization: Firms are streamlining operations and shedding non-core assets, aligning their business strategies with consumer preferences and market demands. This focus on core competencies helps companies optimize resource allocation and enhance shareholder value. Market Consolidation: Acquisitions are enabling firms to scale up, increase market share, and enhance operational efficiencies. Whether it's merging with counterparts or acquiring niche brands, these actions strengthen market presence and achieve cost synergies. Technological and Consumer Trends: The surge in e-commerce, growing interest in plant-based nutrition, and the push towards personalized diets are driving M&A. Companies are acquiring new technologies and innovative business models to stay relevant and meet shifting consumer demands. As the landscape evolves, strategic M&A is more crucial than ever, offering pathways for growth and innovation in the competitive food and beverage industry. #MergersAndAcquisitions #FoodIndustry #Innovation #MarketTrends

We follow this company for many years since it went public through SPAC structure (at a time when almost no one heard about SPACs) Since the article on December 7th, 2016 with a highlighted potential upside of 100% the shares performed well and returned 100% in little less than two years. Since then (~6 years) they are approximately at the same price Might be worthwhile to take a look at this again.... 😀 #NOMD - - - Event-Driven Value Investing https://lnkd.in/dqqjjz7K - - Recent stock recommendations included such big winners as: Solvay SA, spin-off (+90%, Dec-23 - Oct-24, 10 months) Colgate, activist investor/value (+36%, Aug-23 - Oct-24, 1.2 years) Adidas AG, struggle and emotions (+143%, Oct-22 - Oct-24, 2 years) ESAB Corp, spin-off (+143%, Aug-22 - Oct-24, 2.2 years) Altra Industrial Motion (+61%, Sep-22 - Oct-22, 2 months) Kontoor Brands, spin-off (+155%, Jul-22 - Oct-24, 2.2 years) Api Group, SPAC/M&A (+133%, Jun-22 - Oct-24, 2.3 years) Berry Global Group, M&A (+78%, Oct-20 - Nov-24, 4 years) ASICS Corp, Japan/value (+720%, Feb-20 - Oct-24, 4.7 years) In the past, recommendations included WK Kellogg (spin-off), Atmus Filtration Technologies (spin-off), Worthington Steel (spin-off), Carrier Corp (spin-off), Otis Worldwide Corp (spin-off), Jackson Financial (spin-off), Pinterest (activist investor), Bioverativ (acquired by Sanofi), Bats Global Markets IPO (acquired by CBOE), Baxter/Baxalta spin-off and activist, Nomad Foods SPAC, Terex Corp Konecranes transaction, PayPal spin-off from eBay, Activision Vivendi buyback, SAIC Corp spinoff, Murphy USA spin-off, Shire plc, Travelport Worldwide, Atkore International buyback and many others. All trade/investment ideas can be confirmed by research notes, articles, trading records (contact for specific information) We will be delighted to see you among our subscribers! Contact us at [email protected] - - - #equity #equities #investment #investing #strategy #stock #stocks #trade #trading #investors #trader #traders #hedge #hedgefund #hedgefunds #merger #mergerarbitrage #arbitrage #event #eventdriven #activists #activist #buffett #berkshirehathaway #quanttrading #quantdeveloper #quanttrader #quantitative #quantitativeresearcher #systematictrading #dubai #property #realestate #dubaiproperty - - - -

https://lnkd.in/gpWEQsTE Here is a New Chapter in the Global Food Industry !! The announcement of Mars' $36 billion acquisition of Kellanova marks a significant milestone in the global food and consumer goods sector. This merger isn't just about expanding product lines or market reach; it's a testament to the evolving landscape of how major players in the industry are adapting to changing consumer demands and competitive pressures. Mars, known for its iconic brands and commitment to quality, and Kellanova, a leader in health-conscious and innovative food products, together create a powerhouse that will set new standards in the industry. This move signals a strategic alignment that could reshape the way we think about food production, sustainability, and consumer engagement. It's fascinating to witness how such large-scale mergers can open doors to new opportunities, create synergies, and drive innovation across the board. The combined expertise and resources of these two giants have the potential to enhance their impact on the global market, offering consumers even more value. As we watch this merger unfold, it's clear that the future of the food industry is being shaped by bold moves and visionary thinking. Kudos to both teams for embarking on this exciting journey! Plural Technology

Here’s yet another shrink-to-grow portfolio move (speculated) in the food space.  If it wasn’t clear before, it is now: big food companies are VERY focused on improving growth and apparently shedding slow-growth anchors is a preferred lever in this environment. This strategy is understandable, because they can control a divestiture more than trying to make an acquisition, or a series of acquisitions.  Of course, they still need a counter-party to do a deal, but this specific business and others that have been announced, discussed or completed (e.g., Kellogg and cereal, Unilever and Ice Cream, General Mills and Yogurt) is big enough that the public markets are always a viable transaction partner. If you needed any more convincing (which you probably don't), the divestiture bandwagon suggests some conviction about future growth levers in the big food c-suite: 1. The pricing window is truly closed.  Pricing has driven topline in the recent past but now organic growth will have to come from other sources – and the only foreseeable catalysts for unit growth are lower pricing (no thank you, apparently) or innovation (see point 2). 2. Innovation confidence is low.  Small food companies are the innovators and growth-makers in this industry.  They are taking share and have been for over a decade.  Apparently the big guys do not expected this to change anytime soon. 3. Portfolio growth exposure = growth reality.  Big food companies are growth-takers.  They grow at the underlying growth rate of their combined geographies and categories – faster growth will come if they can improve this underlying growth exposure. https://lnkd.in/gaNBYeKS

“These actions will put the Quorn Foods business on a stronger footing and better set it up for future success,” said Henry Soesanto, CEO of Monde Nissin Corporation" "The restructuring plan includes the appointment of a new CEO and an extensive overhaul of Quorn’s supply chain. The goal is to simplify operations, reduce costs, and streamline the business for more effective growth." " A year ago, Soesanto, along with key shareholders, pledged 2.16 billion of their Monde Nissin shares to shield the company from additional impairment losses." "Monde Nissin acquired Quorn in 2015 for $831 million, as part of its strategy to diversify beyond instant noodles and tap into the rapidly growing alternative meat market. The acquisition was seen as a strategic move to capture consumer demand for healthier food options. However, Quorn has yet to deliver the financial uplift that was initially expected, particularly as U.K. consumers grappled with high inflation and rising fuel costs. Quorn currently represents 16% of Monde Nissin’s sales, but its performance has been underwhelming." "David Flochel will focus on streamlining Quorn’s operations, particularly in its commercial, R&D, and support functions, while ensuring key innovations and customer-facing activities remain intact. He will also spearhead changes to the supply chain, aiming to reduce inventory and improve delivery efficiencies."

Great to share some insights in the latest piece in FoodBev Media, exploring how F&B firms can emerge stronger and more focused post-divestment. I know a few people in my network have been through divestment so I’d be very interested in your thoughts and discussions on this! #FoodAndBeverage #BusinessStrategy #Divestment

𝐌𝐚𝐫𝐬' $𝟑𝟔 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 𝐒𝐧𝐚𝐜𝐤𝐢𝐧𝐠 𝐏𝐨𝐰𝐞𝐫 𝐏𝐥𝐚𝐲: 𝐖𝐡𝐚𝐭 𝐘𝐨𝐮 𝐍𝐞𝐞𝐝 𝐭𝐨 𝐊𝐧𝐨𝐰 🍫🌍 In a major move poised to reshape the snacking industry, Mars, the owner of M&M's, is acquiring Kellogg’s spin-off, Kellanova, for a staggering $36 billion—valuing the deal at $83.50 per share. This strategic acquisition, set to close in the first half of 2025, will significantly expand Mars’ snacking portfolio by adding iconic brands like Pringles and Cheez-Its. 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: • Mars aims to strengthen its global snacking business through this acquisition, which combines its existing snack brands with Kellanova's portfolio. This move aligns with Mars' strategy to drive long-term growth by integrating recognized brands. • The acquisition will enhance Mars' market presence in China and Africa, leveraging its strong foothold in China and Kellanova’s strength in Africa, creating new growth opportunities in these regions. • While Mars anticipates that the merger will help manage input costs and mitigate price increases for consumers, there are concerns about potential antitrust issues. Consumer advocacy groups argue that this deal could lead to higher costs and reduced options for consumers. • The deal is likely to face rigorous antitrust reviews due to overlap in the candy bar market. Both companies have expressed confidence in navigating these regulatory hurdles and ensuring the deal's benefits outweigh potential concerns. • Kellanova, with 2023 net sales exceeding $13 billion, brings substantial revenue and popular products into Mars’ portfolio, promising enhanced synergies and efficiencies. 𝐖𝐡𝐲 𝐈𝐭 𝐌𝐚𝐭𝐭𝐞𝐫𝐬: This acquisition represents a transformative shift in the global snacking industry, bringing together two powerhouse portfolios to create a more robust and diversified market player. The merger is expected to deliver operational efficiencies and strengthen Mars’ position in a competitive market. However, it also raises important questions about market concentration and consumer choice, which will be closely monitored by regulators and stakeholders alike. The deal’s legal landscape is complex, involving potential antitrust scrutiny and regulatory challenges. With Mars and Kellanova operating in overlapping segments, the merger could attract significant regulatory attention to ensure compliance with competition laws.  #MergersAndAcquisitions #SnackingIndustry #MarsKellanova #LegalInsights https://lnkd.in/dz2KgJvA Disclaimer: The Content in this post is for informational purposes only derived from references and does not constitute any professional advice. We do not claim ownership of any data or Information referenced.

🌮✨ PepsiCo acquires Siete Foods for $1.2 billion, diversifying its range of foodstuffs! 💼🌟 🥗 PepsiCo aims to expand its portfolio of health-conscious, culturally inspired foods with the acquisition of Siete Foods, solidifying its position in the fast-growing “better-for-you” market. 🌱🌍 📊 This strategic move will leverage Siete’s unique appeal, aligning with PepsiCo’s push for more inclusive and wellness-focused brands. 🤝💚 💬 Tell us your thoughts in the comments, and don’t forget to click the link below to dive deeper into the full report! 🔗📖 #MergerSight #PepsiCo #SieteFoods #Food 🌟 By Anna Chesca, Aditya Tatwawadi, Ahyaan Malik, Alexander Scothorn (University of Cambridge), Muditt Khurana, Amarthya C. (Massachusetts Institute of Technology) 🚀

Investors venturing into the ice cream business can leave a bad taste in the consumers mouth. Job cuts and selling off the B&J brand is a very sad announcement. Cutting is the easy way out not requiring an MBA, basically anyone can do the task. Addressing business challenges and profitability head-on is the real job, but requires much more talent.