Consumer M&A Watch – October 2021
By Emily Halstenberg | October 28, 2021
Contract Manufacturing Edition | Oct. 2021
COVID-19 has had a beneficial effect on global contract manufacturing services overall. The demand for personal care D2C (e-commerce) brands accelerated during the pandemic due to consumers’ increased consciousness of health, wellness, and sustainability. Contract manufacturers were able to keep up with the high demand and benefited from the continuing industry change. On the Food & Beverage side, contract manufacturers benefited from a significant increase in demand for consumer-packaged foods – particularly products that are staple and comfort foods, add flavor and variety, or offer convenience.
Additionally, the medical device contract manufacturing market has experienced large growth due to the sheer necessity of ventilators and respirators. Likewise, the complexity of innovation in class three medical devices such as pacemakers and implantable medical devices has resulted in OEMs leveraging the expertise of electronic manufacturing services. As COVID begins to subside, contract manufacturing companies will rely heavily on flawless supply chain management to position themselves as robust strategic manufacturer partners to pharma and medical device companies from their more traditional transaction relationship. According to MarketandMarkets research, the Global Medical Device industry is expected to reach $113.3 billion by 2026, a 11.5% CAGR from 2021 numbers of $65.9b.
While 2020 had a decrease in M&A activity in the Global Contract Manufacturing space, 2021 started strong – with global strategics and private equity buyers 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 verticals 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 Energizer. Our extensive experience in the sector led by Mark Landry, a Partner 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.
The best articles from around the web for Consumer Products & Retail industry leaders
- Pharmaceutical Contract Manufacturing Market, 2030 via Businesswire
- Global Medical Device Contract Manufacturing Market Analysis & Trends – Industry Forecast to 2028 via Globenewswire
- Latest Estimations: Packaging Contract Manufacturing Industry Research Report, and Growth Trends via Digital Journal
- Medical Device Contract Manufacturing Market via Cision
Insights and intelligence on recent notable industry transactions
PERFORMANCE FOOD GROUP COMPANY ACQUIRED CORE-MARK
- The addition of Core-Mark brings one of the largest wholesale distributors to the Convenience Retail industry in North America into PFG’s family of companies, with approximately $17 billion in net sales. The company has approximately 8,000 employees and operates 32 distribution centers across the United States and Canada. Core-Mark services approximately 41,000 customer locations in all 50 U.S. states and five Canadian provinces. Read more.
BRANDLESS, INC. ACQUIRED TOTAL NUTRITION TECHNOLOGY, LLC
- Total Nutrition Technology of Leesburg, Florida, is a full-service nutritional supplement source providing services ranging from product development through fulfillment. Founded in 2003, TNT has been included on the INC 5,000 list of fastest-growing companies and is the leader in its markets served, with products shipped throughout the United States and internationally. Read more.
HAVI ACQUIRED PMI WORLDWIDE
- The HAVI Group, LP, a global, privately-owned company that operates businesses providing services in supply chain, sourcing, and consumer engagement to leading global brands, acquired Pacific Market International, LLC (“PMI Worldwide”), a global manufacturer of sustainable food and beverage container solutions. Read more.
SPROUTLY ACQUIRED ASSETS OF CANNAHIVE INC.
- The acquisition will provide Sproutly with fully automated, pharmaceutical-grade manufacturing equipment to produce high quality cannabis confectionaries, such as gummies and chocolates, at a lower cost and at a larger scale to meet the projected demands for the Canadian market. Read more.
EDGC ACQUIRED NATURAL LIFE NUTRITION
- Korea’s genetic sequencing firm and gene-based services provider Eone Diagnomics Genome Center (EDGC) acquired Canada’s nutritional supplement manufacturer Natural Life Nutrition to broaden its share in the international Health Supplements market. Read more.
About 7 Mile Advisors
7MA provides specialized Investment Banking & Advisory Services to the professional service firms in the Consumer Products & Retail industries. We help our clients determine the right strategic partners for their businesses, transition ownership, raise capital, grow through acquisitions, and evaluate new markets. We advise our clients on M&A and private capital transactions, and provide unique market insights. Our team brings experience and energy to all of our engagements, with a focus on helping our clients navigate a changing marketplace.
To learn more about how 7 Mile Advisors can help you evaluate and execute on strategic M&A or private capital alternatives for your business, please visit our website www.7mileadvisors.com.