Branded Goods Edition –  June 2021

Actionable intelligence for leaders in the Consumer Products and Retail industry

The Consumer Branded Goods sector continues to receive attention from both strategic and financial investors. The deal activity has increased dramatically in Q2 2021 versus the same period in 2020. Strategics are no longer hesitant to be acquisitive and use their resources to expand geographic reach, diversify sales channels, and reach targeted consumer groups via acquisition of the best-performing brands.

COVID-19 has dramatically changed consumer habits, which affected certain consumer-branded categories. While several branded goods categories took a major hit during the pandemic, such as luxury goods and apparel, other categories performed well including conventional food & beverage products, in-home products, and personal care products. Global consumers are shifting their loyalty to certain brands that offer healthy products and promote environmental sustainability and social responsibility. Due to COVID-19, many brands had to rethink their sales strategies and shift from traditional channels – retail stores – towards online channels – e-commerce. Brands that take the time to understand the changes to consumer behavior and attitudes will create an opportunity for innovating how new value can be created and delivered.

7 Mile Advisors has completed several transactions within the Branded Goods space. These transactions span the major categories of branded goods including food & beverage, cleaning products, recreational products, personal care, and others. Most recently, 7MA represented Innovasource, a leading household and industrial cleaning products company, on its sale to a $3b market cap publicly traded multinational CPG company. Our extensive experience in the sector lead by Mark Landry, a Managing Director with an impressive career with Unilever spanning more than 20 years, provides us with valuable insights into the M&A market, active investors and strategic buyers, and valuation trends.

Transaction Talk

Insights and intelligence on recent notable industry transactions

• The Kraft Heinz Co. reached an agreement to buy Assan Foods, a Turkish sauces company, from Kibar Holdings, a privately held Turkish conglomerate, in a deal valued at approximately $100 million. Read more.

• Reckitt Benckiser Group agreed to sell its Chinese baby formula business to Primavera Capital Group, a Chinese global investment firm, for $2.2 billion. Read more.

• Ferrero announced it entered into a definitive agreement to acquire Burton’s Biscuit Company from Ontario Teachers’ Pension Plan Board. Financial terms were not disclosed. Read more.

• Etsy, an e-commerce company focused on handmade, vintage items and craft supplies, agreed to buy Depop, a marketplace for secondhand apparel and accessories, for $1.63 billion in cash. Read more.

• Swander Pace Capital invested in Mommy’s Bliss, an OTC wellness brand for families. Financial terms were not disclosed. Read more.

• Mondelēz International agreed to acquire Chipita, a manufacturer of croissants and baked snacks in Central and Eastern Europe, for $2 billion. Read more.

• L Catterton acquired Kodiak Cakes, which makes of better-for-you pancake, waffle, oatmeal, and other breakfast products. Terms of the transaction were not disclosed. Read more.

• The Hershey Co. entered into a definitive agreement to buy Lily’s, a low-sugar chocolate products company. Financial terms of the transaction were not disclosed. Read more.

• Danone finalized the sale of its roughly 10% stake in China Mengniu Dairy for €1.6 billion. Read more.

• General Mills announced it will buy Tyson’s pet portfolio, including brands like includes brands like Nudges, Top Chews, and True Chews, for $1.2 billion in cash. Read more.

• Nestle Health Science agreed to acquire Nuun, a maker of hydration supplements, from private equity firm TSG Consumer Partners for an undisclosed sum. Read more.

• KKR acquired Natural Pet Food Group, a New Zealand-based pet food company. Financial terms were not disclosed. Read more.

• Asahi Beverages acquired New Zealand-based fresh coffee business, Allpress Espresso, for an undisclosed sum. Read more.

• Private equity firm Hellman & Friedman entered into a definitive agreement to acquire At Home Group Inc., the home décor superstore, for an all-cash transaction valued at $2.8 billion. Read more.

• Proximo Spirits acquired a majority stake in Conor McGregor’s Proper No. Twelve Irish Whiskey for $600 million. Read more.

• KKR agreed to sell The Bountiful Company, a manufacturer of vitamins and nutritional supplements, to Nestlé for $5.75 billion. Read more.

• Apollo Global Management completed a $3.3 billion take-private buyout of Michaels. Read more.

• Herman Miller agreed to acquire Knoll, an office furniture company, for roughly $1.8 billion in cash and stock. Read more.

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