Contract Manufacturing Edition – May 2021
Actionable intelligence for leaders in the Consumer Products and Retail industry
While 2020 had a decrease in M&A activity in the Global Contract Manufacturing space, 2021 started strong with global strategic buyers and private equity firms looking to capitalize on the ongoing industry trends primarily through expansion: capacity, manufacturing capabilities, geography diversification of customer base, and new customer accounts. 7 Mile Advisors has completed several transactions within the Consumer Products & Services space. These transactions span the major categories of contract manufacturing 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 led 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.
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Transaction Talk
Insights and intelligence on recent notable industry transactions
Personal Care & Diversified Industries
Source: Google Images
CORNELL CAPITAL ACQUIRES INW
- Innovations in Nutrition + Wellness (INW) is a custom R&D, manufacturing, and marketing support solutions provider for global brands that serve the fast-growing Nutrition and Wellness industry. Read More.
PROMACH ACQUIRES SERPA PACKAGING SOLUTIONS
- Serpa Packaging Solutions is a provider of cartoning and end of line packaging systems for the Pharmaceutical, Medical Device, Nutraceutical, Food, Cosmetics, and Personal Care Markets. Read More.
JABIL ACQUIRES ECOLOGIC BRANDS
- Jabil Packaging Solutions strengthens a competitive suite of sustainable packaging offerings with the integration of Ecologic’s commercially viable paper bottle and paper-based packaging capabilities. Read More.
SAN FRANCISCO EQUITY PARTNERS ACQUIRES SV LABS
- SV Labs is a manufacturer of natural beauty and personal care (“BPC”) products. Read More.
AVERY DENNISON CORPORATION (NYSE:AVY) ACQUIRES ACPO, LTD.
- The Company was acquired for an enterprise value of $87.6m, equivalent to 1.5x revenue. Headquartered in Oak Harbor, Ohio, ACPO is a manufacturer of self-wound pressure-sensitive roll label films for the Label Printing and Flexible Packaging industries. Read More.
Food & Beverage
Source: Google Images
UTZ BRANDS TO ACQUIRE GREAT LAKES FESTIDA HOLDINGS FOR $41m
- Utz Brands entered into an agreement to acquire Great Lakes Festida Holdings, the owner and operator of snack chip manufacturer Festida Foods, for $41m. Read more.
TONY’S CHOCOLONELY ACQUIRES ALTHAEA-DE LAET INT
- Tony’s Chocolonely, a Dutch confectionery company that produces and sells chocolate, acquired Althaea-De Laet Int, their long-term partner and Belgian chocolate factory contracted to manufacture the brand’s chocolate bars. Financial terms were not disclosed. Read more.
OLAM INTERNATIONAL TO ACQUIRE OLDE THOMPSON FOR $950m
- Olam Food Ingredients, a business unit of Olam International, plans to acquire Olde Thompson, a manufacturer, and supplier of private label dry spices and seasonings, from Kainos Capital for approximately $950m. Read more.
BRYNWOOD PARTNERS ACQUIRES DE WAFELBAKKERS
- Brynwood Partners purchased De Wafelbakkers, a manufacturer of branded and private label frozen pancakes, waffles, and French toast, from The Oklahoma Publishing Company. Financial terms were not disclosed. Read more.
KEMIN INDUSTRIES ACQUIRES PROTEUS INDUSTRIES
- Kemin Industries, a sustainable ingredient manufacturer, acquired Proteus Industries, Inc., a privately owned food technology and ingredient company. Financial terms were not disclosed. Read more.
DAWN FOODS ACQUIRES JABEX
- Dawn Foods, a global bakery manufacturer and ingredients supplier, announced the acquisition of Jabex, a Poland-based supplier of ingredients and other solutions for the Confectionery, Bakery, and Ice Cream markets. The terms of the transaction were not disclosed. Read more.
8TH AVENUE FOOD & PROVISIONS, INC. TO ACQUIRE RONZONI FOR $95m
- 8th Avenue Food & Provisions, Inc., Post Holding’s private-label pasta business, agreed to acquire the Ronzoni’s dry pasta brand and a dry pasta manufacturing facility in a deal valuing the brand at $95m. Read more.
PEAK ROCK CAPITAL ACQUIRES AMB
- Italian food packaging manufacturer AMB was acquired by an affiliate of private equity firm Peak Rock Capital for an undisclosed sum. Read more.
STIR FOODS ACQUIRES LANCASTER FINE FOODS
- Stir Foods, a portfolio company of private equity firm Wind Point Partners, purchased Lancaster Fine Foods, a private label and contract manufacturer of custom sauces, dressings, and condiments. Read more.
About 7 Mile Advisors
7 Mile Advisors provides Investment Banking & Advisory Services to the Business Services & Technology industries globally. 7 Mile Advisors advises on M&A and private capital transactions, and provides market assessments and benchmarking. As a close-knit team with a long history together and a laser focus on our target markets, 7 Mile Advisors helps its clients sell companies, raise capital, grow through acquisitions, and evaluate new markets. For more information, including research on the M&A markets, visit www.7mileadvisors.com.
