FOODSERVICE - Consumer & retail Industry Focus - Clairfield International
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Industry Focus
Consumer & retail
SECTOR SPOTLIGHT
FOODSERVICE
www.clairfield.com
1
CONTENTS
RECENT CASE STUDY p. 3
INTRODUCTION TO FOODSERVICE p. 5
CLAIRFIELD INTERNATIONAL SECTOR EXPERTISE p. 8
KEY FACTS ABOUT FOODSERVICE PER REGION
BENELUX p. 11
BRAZIL p. 15
DACH p. 18
FRANCE p. 21
ITALY p. 25
NORDICS p. 28
POLAND p. 31
SPAIN p. 34
UK p. 37
USA p. 40
CONTACT INFORMATION p. 43
ABOUT CLAIRFIELD p. 44
2
SECTOR SPOTLIGHT: FOODSERVICE
ADVISOR OF CHOICE FOR CORPORATE CLIENTS (1/2)
3
SECTOR SPOTLIGHT: FOODSERVICE
ADVISOR OF CHOICE FOR CORPORATE CLIENTS (2/2)
CLAIRFIELD ADVISED BIDCORP (FORMERLY BIDVEST) ON 2ND PLATFORM
ACQUISITION IN EUROPE
The acquisition of Pier 7 represents the second transaction that Clairfield
International has advised for Bidcorp. In 2014, Clairfield International advised on
Bidcorp’s Italian market entry with the acquisition of Gruppo DAC. Clairfield is
acquired a majority
pleased to be repeatedly selected as the trusted strategic and financial advisor to shareholding in
international clients such as Bidcorp.
Deal team: Albert Schander, Oliver Kolb
Advisor to the buyer
Transaction summary Transaction rationale
Bid Corporation (Bidcorp) of South Africa acquired a The acquisition of Pier 7 Foods accomplishes Bidcorp’s
majority shareholding in Pier 7 Foods, based in Gröbenzell, objective of market entry into Germany. Pier 7 customers
Germany, securing entry into the lucrative German food include well-known restaurant chains and hotels. Bidcorp
service market. The transaction was approved by the and Pier 7 Foods will assess other strategic partnering
German Bundeskartellamt (Independent Competition opportunities in the upcoming months. The investment in
Authority) in July 2017. Pier7 Foods in Germany is a further milestone in Bidcorp’s
growth strategy in Europe and comes on the heels of its
acquisition of the Spanish Guzman Group.
Profile of the companies
Bidcorp Ltd is headquartered in Johannesburg and was established in 1988. The group operates globally in
food services which comprises wholesale distribution of frozen, chilled, fresh, and dry foodstuffs, as well as
ancillary products, mostly to B2B clients in the HoReCa market (hotels, restaurants, and catering-
businesses). Bidcorp is quoted on the Johannesburg stock exchange and generates close to EUR 10 billion in
revenues. The group has significant investments in over 50 businesses and currently has approximately
25,000 employees.
Pier 7 Foods Import GmbH was founded in 1998 and headquartered in Gröbenzell, near Munich. The
company distributes fresh and frozen food to the food and gastro-hotel industry in Germany and Austria
and has long-standing relationships with carefully selected suppliers. Pier 7 has seven subsidiaries with its
own logistics and vehicle fleet supplying certain areas and works with its cooperation partners coming from
all over Europe. As estimated for 2016, the group generates over EUR 80 million in revenues.
Views of the parties
Markus Erhart, managing director and founder as well as future co-
Stephen Bender, managing director of BidCorp
shareholder said: "I have been in touch with several business units
Foodservice (Europe) Ltd. and future co-
of BidCorp over an extended period in order to be certain that I
managing director said: “Our investment in Pier
have correctly selected my partner, as I intend to proactively
7 Foods in Germany is a further achievement in
manage the transition of succession in my business. BidCorp is the
our growth strategy in Europe. We are looking
right partner for our group for further growth as Bidcorp is very
forward to implementation of our roll-out
entrepreneurial and our product portfolios complement each
strategy for the German market working closely
other cross-border. For both sides service to our clients and high
with Markus and his team.“
quality are paramount.“
4
SECTOR SPOTLIGHT: FOODSERVICE
INTRODUCTION TO FOODSERVICE
Foodservice worldwide Foodservice markets by sales volume (1)
Foodservice, defined as the industry serving food
outside the home (HoReCa), as well as the service
providers – food wholesalers, logistics providers
and the like – that cater to the HoReCa industry, is
a thriving sector everywhere in the world.
Currently Asia Pacific is the world’s leading
foodservice market, accounting for 43% of the
market share, driven by rising demand in India
and China.
Europe is the third largest foodservice market
with France, Germany, Italy, the UK, and Spain as
major foodservice submarkets.
Borders between the different market segments < USD 50 bn > USD 1 tn
are becoming increasingly blurred. Traditional
HoReCa suppliers are increasingly challenged by The total foodservice sales value worldwide is
Cash & Carry players and Logistics & Transport estimated at USD 3.4 trillion growing at 4.6% p.a. in
segments. 2016 and 2017 (est. CAGR 2015-20 is 3.4%), and the
industry is estimated to employ 10.8 million people
(many on a part-time basis).
Foodservice industry trends
According to a study of 10 European countries, The digital economy is transforming the industry
people eat 18% of all meals outside the home. with e-commerce platforms, delivery and
This tendency translates into growing automation technologies, and customer-tracking
opportunities for producers, distributors, systems.
restaurant chains, catering establishments, and Rising wages mean increased labor costs, which is
other foodservice companies. a concern in the industry, though a more
Some trends, such as concern for healthy eating, prosperous workforce also creates more
and interest in eating local, fresh, and sustainable consumers.
foods, can be tracked throughout the world, High competition as well as economies of scale
however, some trends are more country-specific are very noticeable in the industry, which is one of
reflecting the eating habits in the region. the reasons for consolidation in the industry.
The farm-to-table tendency is observed among all More than ever, foodservice companies and final
sector players, from supermarkets to Michelin- customers are expecting wholesalers to provide
starred restaurants. Interest in international them with quality products.
cuisine is another noteworthy trend affecting all
cultures.
Sources: Tradedimensions GV-Markt 2016; Bulwiengesa Market Study; Genios Food Service; Euromonitor International; Daedal Research: Global
Foodservice Market; GIRA Foodservice: Foodservice EUROPE 2018 5
SECTOR SPOTLIGHT: FOODSERVICE
FOODSERVICE IN NUMBERS
188
Number of worldwide deals MARKET
made in the foodservice DRIVER
36.4% increase in Innovation &
industry in 2017
deal value from customization
2016 to 2017 of food
menus
Sample of leading Foodservice companies worldwide: total sales
players by offered products, 2016
Market
Dairy & trends
Others Frozen
20% Desserts
20%
Fruits & MARKET
Vegetables CHALLENGE
12%
Bakery Fluctuations
6% in commodity
Meat, Fish
prices & rise
& Seafood
Beverages
35% in labor costs
6%
Largest foodservice markets Foodservice industry worldwide by end
customers, 2016
Schools,
Universities
New Markets
Asia North (Event 5%
Pacific Europe
America Catering)
10%
Retirement
Homes
12% Company
Restaurants
€24 billion Hospitals
18%
55%
ANNUAL TURNOVER OF THE CONTRACT
CATERING INDUSTRY IN EUROPE
Source: Comprises M&A deals in the foodservice industry based on Mergermarket classification; Daedal Research: Global Foodservice Market; PR
Newswire Association: Global Foodservice Market 2017-2021; Tradedimensions GV-Markt 2016; Gain Report: Foodservice 2017 6
SECTOR SPOTLIGHT: FOODSERVICE
FOODSERVICE MERGERS & ACQUSITIONS
M&A deals in foodservice worldwide (2013 – 2017)
Deals value and volume Deals by acquiror type
EUR bn #
40 250
210
35 195 198 Strategic
188
200 Financial 69%
30 172
31%
25 150
20
35.6
15 100
25.6 26.1
10 21.8
16.2 50
5
0 0
2013 2014 2015 2016 2017
Deal Value Deal Volume
Note: Comprises M&A deals in the foodservice industry based on Mergermarket classification; Not all companies disclose a deal value;
Up to 31.12.2017
Selected recent M&A deals in foodservice & valuation multiples
Announ. Target Acquiror DV Revenue EBITDA EBITDA
Target Acquiror
Date country country (EUR m) Multiple Multiple Margin
09/2017 Mila S.A. PL Eurocash S.A. PL 82 0.2x 74.3x 0.3%
07/2017 Stonyfield Farm, Inc. US Groupe Lactalis S.A. FR 768 2.4x 20.0x 5.4%
03/2017 KFC (16 establishments) NL Collins Foods Limited AU 62 1.3x 8.5x 15.7%
02/2017 Zabka Polska sp. z o.o. PL CVC Capital Partners Limited UK 1 296 2.6x 43.2x 6.0%
01/2017 Booker Group PLC UK Tesco PLC UK 4,175 0.7x 20.0x 3.6%
Charoen Pokphand Foods
12/2016 SuperDrob S.A. (33% stake) PL TH 50 1.1x N.A. N.A.
Public Company Ltd
11/2016 Autogrill Nederland BV NL Gr8 Investments BV NL 23 0.7x 8.1x 8.5%
10/2016 Dakri Dystrybucja sp. z.o.o. PL Bake & Co., N.V. BE 6 0.4x 5.0x 7.4%
Abris Capital Partners and
08/2016 Graal S.A. (55.77% stake) PL PL 51 0.3x 5.8x 5.7%
private investor
Organic Farma Zdrowia S.A.
07/2016 PL EcorNaturaSi S.p.A IT 9 1.4x 17.5x 4.2%
(63% stake)
07/2016 Internatural AB SE Midsona AB SE 86 1.3x 12.5x N.A.
04/2016 DE.AL. s.r.l. IT Marr S.p.A IT 36 0.6x N.A. N.A.
02/2016 Brake Bros Limited UK Sysco Corporation US 2,786 0.7x 19.0x 3.4%
12/2015 Hortigil Hortifruti S.A. BR Partners Group Holding AG CH 69 0.5x N.A. N.A.
12/2015 Vermaat Groep BV NL Partners Group Holding AG CH 390 3.5x N.A. N.A.
11/2015 Findus Sverige AB SE Nomad Foods Limited BVI 701 1.2x 10.6x 11.0%
TowerBrook Capital Partners
03/2015 Ad van Geloven BV NL US 264 1.4x N.A. N.A.
LP
02/2015 Drogheria & Alimentari Spa IT McCormick & Company Inc. US 85 1.4x 10.6x 13.3%
Mean 567 1.2x 19.6x 7.0%
Median 82 1.2x 12.5x 5.9%
Source: Clairfield Analysis of Mergermarket Data; “DV” = Deal Value; Note: not all deals include public deal values 7
CLAIRFIELD INTERNATIONAL
SECTOR EXPERTISE
CONSUMER & RETAIL
8
SECTOR SPOTLIGHT: FOODSERVICE
RELEVANT SECTOR EXPERIENCE
Selected foodservice transactions
South Africa/Germany Germany Norway/ Finland Australia France
CENTRE FRANCE
DEVELOPPEMENT
acquired a majority acquired the
was sold to was sold to sold
stake of seafood division of
REPEAT
CLIENT
South Africa/Italy UK Italy Australia Norway
acquired a majority
was sold to was sold to was sold to
stake of
acquired
Qua.Ser
Selected industry contacts
9
SECTOR SPOTLIGHT: FOODSERVICE
CLAIRFIELD INTERNATIONAL SECTOR EXPERTISE
Consumer & retail expertise
Clairfield International provides advisory services, Clairfield International’s consumer goods sector
mainly in cross-border mergers and acquisitions, to team focuses on advisory to midcap clients,
multinational corporations, family-owned whether advising on a growth strategy or on
enterprises, and private equity firms. Our focus is selling a business
the middle-market segment, designing and
executing transactions of up to EUR 500 million in
enterprise value
EUR 9 bn
194 CUMULATIVE VALUE OF
CONSUMER & RETAIL
Buy-side Financial CONSUMER & RETAIL TRANSACTIONS
35% Strategic buyers TRANSACTIONS CLOSED SINCE 2006
Sell-side buyers 44%
65% 56% CLOSED SINCE 2006
Clairfield’s Consumer goods team is chaired by
High ratio of senior partners and directors to junior
Albert Schander of Clairfield Germany and Gary
employees ensures that senior team members take
Ecob of Clairfield United Kingdom. The team
an active role in all transactions
offers particular expertise in the following areas:
Worldwide presence guarantees our clients direct
access to the local knowledge of its regional office Agribusiness e-commerce
and industry expertise from professionals around Branded products Foodservice
the globe
Clothing retail Seafood
Our locations
20+ 400+
COUNTRIES Amsterdam Lyon
WHERE CLAIRFIELD Antwerp Madrid PROFESSIONALS
Atlanta Marseille
IS PRESENT
Barcelona Milan
Birmingham Moscow
Brussels Nantes
Budapest Oslo
Copenhagen Paris
Montreal Dusseldorf Stockholm
Frankfurt Stuttgart
New York Geneva Tel Aviv
Atlanta Washington Helsinki Vienna
Mexico City
Miami Istanbul
London
Warsaw
Hong Kong
35+
OFFICES
Sao Paulo Brisbane
Santiago de Chile
Curitiba WORLDWIDE
PRESENCE
10SECTOR SPOTLIGHT: FOODSERVICES
KEY FACTS ABOUT FOODSERVICE IN
BENELUX
11SECTOR SPOTLIGHT: FOODSERVICE
FOODSERVICE INDUSTRY IN BELGIUM
Current market situation
In 2016, Belgian total sales value of the Food chains remain underrepresented, but are
foodservice/out of home industry was estimated doing better than independent restaurants.
at EUR 16.5 billion. The foodservice industry is International players remain absent due to
composed of the Horeca industry as well as the various factors such as high taxes and Belgian
wholesalers supplying to the HoReCa industry. loyalty to traditional gastronomy.
The FSR channel (full service restaurant), the Some new market-shaping trends include the
largest foodservice channel, accounts for 36% of growing importance of gourmet fast food players
the foodservice industry. During the 2014-2016 including purveyors of gourmet burgers and
period it grew at a CAGR of 3.4% and is forecast to premium pizzas as well as the increasing demand
grow at a CAGR of 3.8% during the 2016-2021 towards subscription fresh food boxes such as
period. Hello Fresh or Simply you, the newly introduced
The QSR channel (Quick Service Restaurants) equivalent by Carrefour.
accounts for 8% of total revenue generated and Margins are under pressure in the food service
has grown at a CAGR of 3.0% between 2014 and industry due to the high energy costs (affecting
2016 and is forecast to grow at a CAGR of 3.2% mainly the smaller businesses) but more
during 2016-2021. importantly because labor costs are more than
While the FSR market is highly fragmented, about 20% higher than in neighboring countries France,
a third of the QSR market generates 56.4% of the Germany, and the Netherlands.
channel revenue (with Panos, subsidiary of La
Lorraine Bakery Group, being the largest QSR
operator). Although just 31% of QSR outlets are
owned by chain operators, they generate 56% of
Consumption evolution in the Belgian
the channel revenue. Panos is the largest QSR HoReCa sector
operator by a substantial margin, representing
18% of the channel’s value. Evolution number of visits 2.8%
2.3%
1.0%
0.5% 0.5%0.8%
0.0%
Top market players in Belgium
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Total -1.7% -0.8%-1.2% -1.6% -2.5%
EBITDA -1.9% -1.8% -3.5%
Belgium Belgium -4.6%
Company 2016 2011 2012
-4.9%
2013 2014 2015
sales 2016 employees -5.9%
(EUR m) -6.2%
(EUR m)
883.2 4.6 399
367.0 N.A. +1,000 Evolution spending per visit
1.4%
1.2%
319.3 5.6 403.3 0.7% 1.0%
0.6% 0.5%
0.4% 0.4% 0.4%
165.8 4.4 161.3 0.2% 0.2% 0.1%
0.0% 0.0%
157.5 6.4 206 -0.1%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
-0.4% -0.5%-0.5%
-0.8%
2011 2012 2013 2014 2015
Source: Euromonitor (2017); Business Insider (2017); Market Monitor; National Bank of Belgium (2017) 12SECTOR SPOTLIGHT: FOODSERVICE
FOODSERVICE INDUSTRY IN THE NETHERLANDS
Current market situation
The Dutch foodservice / out of home market Hotels, restaurants and quick service restaurants
generated sales of EUR 18.3 billion (based on (QSRs) are showing steady volume growth due to
food, beverage, and tobacco spending) in 2016, increasing consumer confidence and increasing
showing positive 2.7% year-on-year growth. number of tourists. On-the-go service concepts
All top five players (see table below) are active as are also gaining popularity due to larger mobility
foodservice wholesalers. The wholesale market is and less fixed working hours.
highly concentrated and characterized by The catering workforce is decreasing and
consolidation and scale up, where approximately increasingly becoming characterized by flexible
80% of the market belongs to the top ten players. labor. In contrast, catering revenues are
In contrast, the market with companies serving increasing due to much higher pricing (50%
the out-of-home end consumer like hotels, increase during 2006-2016 compared to inflation
restaurant and caterers is still highly dispersed. of only 17%).
Top market players in the Netherlands
Total Dutch sales 2016 Dutch wholesale market
Company Dutch employees
(EUR bn) share (%)
2.8 6,571 24%
2.5 876 13%
0.7 1,469 11%
0.8 2,818 8%
ca. 0.6 5,000 6%
Revenue development of foodservice Future strategic market developments
sectors (EUR bn)
According to a research report by ABN AMRO, the
Dutch food service industry is forecasted to have a
20.0 18.4 2.3% growth in 2017 and a 2% growth in 2018.
17.9 17.5 17.5 17.9 Recreation
1.3 The growing need for a quick meal is not only met by
1.2 1.2 1.2 1.2
1.6 1.8 Hotels the traditional QSR but also by lunchrooms and by new
1.6 1.7 1.7
15.0 1.8 food concepts that “go organic” and/or “go healthy”.
1.8 1.8 1.8 1.8 Cafés
2.3 2.3 2.3 2.3 2.4 With the digital age, traditional supermarkets are
10.0 Quick being disrupted by a surge of food delivery services
2.6 2.5 2.4 2.5 2.5
restaurants (ready meals or meals to prepare). As a response, food
On-the-go retailers are starting to implement foodservice /
3.2 3.2 3.2 3.2 3.3
5.0 “horeca light” concepts at their own supermarkets,
Catering
e.g. the 2nd largest Dutch supermarket chain Jumbo
5.0 4.9 4.9 5.1 5.3 taking over La Place restaurants and introducing this
0.0 concept at their own supermarkets and many
2012 2013 2014 2015 2016 competitors introducing comparable concepts.
Source: Foodservice markt, Foodstep (2016); Foodservice in beweging, ING (2016); Financial reports (2016), CapitalIQ, Foodservice Beleidsmonitor (2017); Parent companies: Lekkerland AG
(Lekkerland), Bidcorp (Deli-XL), Sonah (Hanos), Metro (Makro). Sligro also offers food retail through EMTE and Makro provides also non-food; Foodservice Insights, ABN AMRO (2017) 13SECTOR SPOTLIGHT: FOODSERVICE
MAJOR FOODSERVICE TRANSACTIONS IN BENELUX
M&A transactions 2016-2017
Target
Target Target Transaction
Target Acquiror Revenues
Description Country Rationale
(EUR m)
Owner and operator of a
The deal enables the opening new locations
Lunch Garden SNC chain of self-service BE Gate Invest 52.0
and stimulating further growth.
restaurants
The transaction will enable investors to
further promote sales and marketing of high
Seamark Seafood,
quality seafood in Belgium and Central
Processor and distributor Fishproducts
Icelandic Gadus NV BE 83.0 Europe as well as provide investors an
seafood Iceland, and Akur
opportunity to grow internationally and
(PE)
promote the image and value of Icelandic
seafood in Central Europe.
Company engaged in the The acquisition will be a catalyst in the
ISPC International wholesale of food products growth of Sligro’s current market segments
BE Sligro Food Group 84.9
SA to the catering and and to expand its branch network in other
hospitality industry Belgian cities.
The acquisition will strengthen Marfo Food’s
position in the frozen meal food market and
Providor of frozen ready Marfo Food Group
increase market segments for Marfo Food.
meals for food companies, BV
Frigilunch NV BE 20.3 Post acquisition, Frigilunch will become the
cafes, hotels, restaurants, Van Lanschot
part of Marfo Food Group and both the
companies, and institutions Participaties
companies will operate independently
under their own names.
Belgium-based company The transaction will enable Veviba and
Adriaens NV engaged in the slaughtering BE Veviba N.A. Adriaens to strengthen their business in the
and processing of beef Belgian slaughterhouse market.
Belgium-based foodservice The acquisition will enable Sligro Food to
company: institutional and become the leading player in the Belgian
JAVA Foodservice company catering market BE Sligro Food Group 129.0 foodservice market. The acquisition will
segments and several hotel immediately contribute to Sligro Food’s
chains earnings per share.
The Netherlands is a highly attractive
market which is underpenetrated for KFC
KFC (16 Operator of a fast food Collins Foods
NL 47.2 (‘15) restaurants and the acquisition portfolio is a
establishments) chain Limited
high quality business which is growing and
generates strong margins.
The acquisition enables a new operational
Autogrill Nederland Manager of restaurants,
NL Gr8 Investments BV 33.0 concept of medium-priced hotel offering
BV hotels and coffee stores
with the emphasis on automated efficiency
Sociedade Francisco
Monterroio BV Food distribution company NL N.A. N.A.
Manuel Dos Santos
Takeaway.com strengthens its position in
Provider of food ordering the Benelux, in line with the strategy to
Just-Eat Benelux BV NL Takeaway.com BV N.A.
and delivery services expand its leadership positions in the
European market.
The deal enables the bidder to gain more
Operator of restaurants Jumbo
La Place BV NL 150.0 market presence in the food service
chain Supermarkten BV
industry as a hospitality specialist.
For information on transaction values, please contact the local Clairfield expert (page 43).
Source: Mergermarket 14SECTOR SPOTLIGHT: FOODSERVICES
KEY FACTS ABOUT FOODSERVICE IN
BRAZIL
15SECTOR SPOTLIGHT: FOODSERVICE
KEY FACTS ABOUT FOODSERVICE IN BRAZIL
Current market situation
The Brazilian foodservice market in 2016, including restaurants, was EUR 122 billion.
The percentage of food eaten out of the home is 34%. This number will increase in the coming years for the
following reasons:
− Growth of 2x per capita income by 2036;
− Increasing participation of women in the labor market;
− Population growth: Brazil should reach a population of 227 million people by 2036;
− Market development, both on the supply side and on the demand side;
− Strong trend towards healthy food (very fragmented market full of small companies).
Top players in Brazil Segments
Company Sales (EUR m) Employees Others
4%
Industry
Distributor
Cash and
40%
10,254 111,868 Carry
21%
4,778 45,000
2,247 19,000
Wholesale
1,575 7,200 with
Delivery
Cash and Carry 35%
412 3,122
406 2,031
Consumer market (billion)
340 1,713
466
436
410
293 1,770 379
344
Food Distribution
323 1,200
136 131 132 117 122
300 N.A.
253 N.A.
2012 2013 2014 2015 2016
228 1,000 BRL EUR
Source: Nielsen 16SECTOR SPOTLIGHT: FOODSERVICE
MAJOR FOODSERVICE TRANSACTIONS IN BRAZIL
M&A transactions 2016-2017
Target
Target Target Transaction
Target Acquiror Revenues
Description Country Rationale
(EUR m)
The Popeyes acquisition adds a successful
3G Capital/
Popeyes Louisiana and highly regarded brand with high
Restaurant chain USA Restaurant Brands 229
Kitchen consumer loyalty to RBI, one of the largest
International Inc.
companies in the world.
Grupo Lala, S.A.B. Lala, a Mexican company, acquired Vigor to
Vigor Alimentos SA Food producer BR 667
de C.V. expand its business in Brazil.
Partners Group intends to maintain the
expansion of Hortifruti’s network. Pursuant
Hortigil Hortifruti Retail company of fruit and Partners Group to the transaction, former members
BR 394
S.A. (60% stake) vegetables Holding AG Hortifruti will remain close to the company.
Partners Group now owns 100% stake in
Hortifruti.
Arlon has completed a 35% acquisition of
OK Superatacado
the remaining shares of OK Superatacado,
(Serrano Wholesale chain BR Arlon Group LLC N.A.
Arlon intends to maintain the investment
Distribuidora SA)
for about 7 years.
Russi Supermercados was one of the leading
supermarket chain in the country side of the
Russi Supermarket/wholesale state of São Paulo. In the past 5 years, Russi
BR Grupo Ricoy 263
Supermercados Chain was facing financial issues, Grupo Ricoy só
the opportunity to grow the business and
acquired Russi Supermercados.
The Advent Private Equity firm, sold the 73%
International Meal
Restaurant holding BR Multiple Investors 395 remaining shares of the IMC for multiple
Company (IMC)
investors.
With the purchase of 20% of the company
for USD 50 million, the investment will serve
to expand the company. Taco Bell Brazil
Taco Bell Brazil Restaurant chain BR Daniel de Jesus N.A.
already has 17 units (all of them situated at
São Paulo), the goal is to reach 1000 stores
in Brazil in the next ten years.
For information on transaction values, please contact the local Clairfield expert (page 43).
Source: Mergermarket 17SECTOR SPOTLIGHT: FOODSERVICES
KEY FACTS ABOUT FOODSERVICE IN
DACH
(Germany, Austria, Switzerland)
18SECTOR SPOTLIGHT: FOODSERVICES
KEY FACTS ABOUT FOODSERVICE IN DACH
Current market situation
The foodservice sector is showing resilience to the The stabilization of the euro exchange rate eases
economic downturn with an increase of 6.3% in the strain on wholesale & production sectors in
2016. There was a rise of 7.4% in food Switzerland. Pressure on domestic prices is
wholesaling, 4.7% in food manufacturing and lessening, and opportunities abroad are
14.6% in non-residential catering. Food retailing improving.
changed little at 0.4%. In Austria and Germany, demand remains intact
In the subsegments, the quick service and and stable, whereas Switzerland felt the effects of
motorway catering make up about four-fifths of falling sales as well as weak domestic demand,
the sales of top 100 food service companies. and the inability to pass on rising costs and lost
The foodservice industry is one of DACHs export sales.
strongest industrial sectors in terms of turnover Particularly in Germany and Austria, the trend is
and number of employees. towards consolidation of wholesale & foodservice
distribution businesses with 41 transactions in
Germany from 2000 to 2016 and an average
EBITDA multiple of 9x-10x.
Top players in Germany
Company Sales 2016 (EUR m) Market share in DE (%)
2,083 11.4%
2,966 14.3%
5,447 28.7%
3,661 16.8%
586 0.6%
Note: Comprises sales generated only from the segments related to foodservice
Foodservice market share Turnover share of the Foodservice industry
by category 2016, % by production 2016, %
Grain mill
products &
Retailers starch
Direct sales 9% Fish products
products
from 2%
4% Meat
producers Oils & fats
products
10% 5%
20%
Processed
Logistics food &
provider vegetables
5% 6%
Animal feed Various food
Cash & Wholesale 7% products
delivery 16%
carry
57% Bakery &
19%
farinaceous
Dairy Drinks
products
products 15%
12%
13%
Source: Tradedimensions GV-Markt 2016; Bulwiengesa Market Study; GAIN Report; METRO International Supplement; Genios Food Service 19SECTOR SPOTLIGHT: FOODSERVICE
MAJOR FOODSERVICE TRANSACTIONS IN DACH
M&A transactions 2016-2017
Target
Target Target Transaction
Target Acquiror Revenues
Description Country Rationale
(EUR m)
Engaged in the The takeover of Huegli Holding AG leads to
development, production numerous synergies and cost-cutting
Huegli Holding AG and marketing of a wide CH Bell Food Group AG 327.8 potential, the expansion of the product
range of foods and food range, but also to a slight increases in the
products. profit margin
With the merger, the entrepreneurs want to
TransGourmet offer their employees a long-term
Zanini SA Switzerland-based winery CH 35.0
Holding AG perspective and make optimal use of the
synergies of both companies
The board of METRO AG is preparing the
Wholesale, food, logistics, METRO AG creation of two independent and sector
Metro AG DE 37,496.0
IT and real estate business (shareholders) focused companies through a demerger of
the group.
Distribution, purchasing, The entry of Transgourmet into the
Transgourmet
Team Beverage AG marketing and service beverage market should meet increasing
DE Deutschland GmbH 1,300.0
(70% Stake) platform for the beverage customer need for more performance and
& Co. OHG
industry fewer contact partners.
The acquisition of Pier 7 Foods accomplishes
Pier 7 Foods Import Distributor of food to the Bid Corporation
DE 48.3 Bidcorp’s objective of market entry into
GmbH gastro-hotel industry Limited
Germany.
The acquisition is in line with Bidcorp’s
strategy to expand its footprint into
Company engaged in
Guzman geographies which offer solid growth in the
distributing and delivering Bid Corporation
Gastronomia, S.L. ES 100.0 food services market. It will enable Bidcorp
food to gastro-hotel Limited
(90% Stake) to position itself as one of the leading
industry
foodservice companies in south-west
Europe.
With the takeover of IFC, BIP Germany is
International Food
Wholesaler of food, securing one of the German market leaders
Cooperation DE BIP Holland B.V. 25.7
beverages, and tobacco for licensed confectionery and
Germany GmbH
strengthening its own German business.
Company specialized in the
This acquisition is in line with expanding
development, production
Bresc B.V. NL Huegli Holding AG 12.0 Huegli’s culinary competence in the fast-
and sales of chilled garlic
growing foodservice segment.
and herb products
The acquisition will enable Ceconomy to
realize their wholesale business expansion
RUNGIS Express AG Wholesaler of fresh foods DE Ceconomy AG 130
plans in Germany and to further expand
their food service distribution concept.
For information on transaction values, please contact the local Clairfield expert (page 43).
Source: Mergermarket 20SECTOR SPOTLIGHT: FOODSERVICES
KEY FACTS ABOUT FOODSERVICE IN
FRANCE
21SECTOR SPOTLIGHT: FOODSERVICE
KEY FACTS ABOUT FOODSERVICE IN FRANCE
Current market situation
In 2016, the French foodservice sector showed resilience to the economic downturn with a 0.7% increase, after
3 consecutive years of decrease between 2013 and 2015.
In 2016, The French foodservice market reached an estimated value of EUR 54.6 billion.
In France, around 4,000 companies serve the HoReCa companies and are divided into 5 main segments (Cash &
Carry, Logistics & Transport, Wholesales & Delivery…).
Main segments of the foodservice distribution market
Foodservice distribution
market
“Full line” Traditional Specialized Cash & Logistics &
wholesalers wholesalers wholesalers Carry Transport
Some companies active in the foodservice distribution are focused on a specific segment (for example STEF is
specialized in Logistics & Transport) but other companies are active in several segments.
Key players in the foodservice market in France
Revenue
Company Segment
(EUR bn)
Foodservice 22
Foodservice 17
Beverages 9
Cooperative 5
Cereal processing 5
Foodservice 4.8
Foodservice 4.4
Wholesale & delivery 3.6
Foodservice 3
Logistics & Transport 2.8
Source: «Le marché de la restauration hors domicile sort du tunnel avec le retour de la croissance après 3 années consécutives de recul» (NPD, 2017); «Les fournisseurs de la restauration hors foyer»
(Xerfi, 2015); «Les grands défis des fournisseurs de la restauration à l'horizon 2020» (Xerfi, 2017); «Etude de la distribution sur le marché Food service France» (Gira)
22SECTOR SPOTLIGHT: FOODSERVICE
KEY FACTS ABOUT FOODSERVICE IN FRANCE
TOP 20 FOOD & BEVERAGE DISTRIBUTION NETWORKS FOR
FOODSERVICE INDUSTRY
Revenue Warehouses & Logistic
Rank Company Staff Shareholders Customers Products
(€m) platforms
Metro Cash & 4,306 Fresh and frozen
1 9,500 Metro Group 93 warehouses & 20 platforms 1,000,000
Carry France (2016) products, grocery
Groupe 3,600 Fresh and frozen
2 8,600 Family Dewavrin 140 sites 150,000
Pomona (2016) products, grocery
1,495 Les Maîtres laitiers
3 France Frais 3,540 103 companies 70,000 Dairy products
(2014) du Cotentin
1,330 Members of the
4 C10 3,500 240 warehouses & 1 platform 90,000 Beverage
(2014) network
Transgourme 1,170
5 3,900 Swiss Coop 35 warehouses & 20 platforms 65,000 Grocery
t France (2015)
Martin
1,110 7 distribution centres & 1
6 Brower 774 Reyes Holding N.A. Logistics services
(2014) platform
France
1,070 Fresh and frozen
7 Promocash N.A. Carrefour 138 stores & 11 drives 320,000
(2014) products, grocery
970 Companies: 39 (fruits & Fruits, vegetables,
8 Creno 2,500 Cooperative N.A.
(2014) vegetables) and 17 (seafood) seafood (fresh)
990 73 companies, 135 warehouses
9 Distriboissons N.A. Cooperative 60,000 Beverage
(2015) & 1 platform
France 940
10 2,682 Heineken 14 platforms & 78 warehouses 56,500 Beverage
Boissons (2014)
732 Grocery, meat, seafood,
11 Brake France 2,000 Sysco 45 platforms 45,000
(2016) vegetables
637
12 Davigel 2,922 Sysco 13 regional centres 70,000 Frozen products
(2016)
645 Grocery, meat, seafood,
13 Pro à Pro 1,700 Metro Group 20 warehouses 30,000
(2014) fresh products
Relais d’Or 578
14 670 Pomona 17 members, 56 sites 84,300 Frozen products
Miko (2014)
Back Europ 557
15 1,600 Cooperative 43 companies 36,000 Grocery & Snacking
France (2014)
500 Fresh & frozen
16 Hexagro 3,000 Cooperative 26 members & 35 warehouses N.A.
(2014) vegetables and seafood
300
17 Gedal 400 N.A. 29 members & 37 warehouses 25,000 Grocery
(2014)
300 8 companies, 18 platforms & 30 Fresh & frozen products,
17 Réseau Krill 1,000 Groupe Even 35,000
(2014) sites meat
220 21 Centrale 25 distributors in France & 83
19 DGF 1,000 15,000 Bakery products
(2016) Partners worldwide
250
20 Carigel N.A. Sysco 14 members N.A. Frozen products
(2014)
Source: Top 20 des réseaux de distribution alimentaires et boissons en RHD en 2014 (Tokster, 2015) 23SECTOR SPOTLIGHT: FOODSERVICE
MAJOR FOODSERVICE TRANSACTIONS IN FRANCE
M&A transactions 2016-2017
Target
Target Target Transaction
Target Acquiror Revenues
Description Country Rationale
(EUR m)
Brands: Conserverie du
Financière Turenne
Languedoc, Julien Mack, Financière Turenne Lafayette filed for
Lafayette (canned FR Cofigeo; Arterris 324
Soulié Restauration, insolvency in June 2017.
food division)
William Saurin Garbit, etc.
Supplier of chilled, frozen
Beijing Sanyuan Sanyuan and Fosun will benefit from St
and ambient products to
St Hubert FR Foods Co.; Fosun 126 Hubert's healthy foods and technological
retail and food service
International innovations.
customers
The transaction will enable Ajinomoto to
Labeyrie Traiteur Manufacturer of frozen Ajinomoto Foods expand and enhance its business operations
FR 50
SUrgeles foods Europe for frozen foods in France and accelerate its
growth.
The consideration represents 20 times the
Stonyfield Farm Producer of organic yogurts US Groupe Lactalis 351
EBITDA of Stonyfield in 2016.
René Laurent's activity is synergetic with
Development, production
Frutarom's activity in the field of flavors and
René Laurent and marketing of flavors FR Frutarom 12
in line with Frutarom's rapid growth
and natural extracts
strategy.
Producer of salads, fruits, This acquisition will help fuel the growth of
Ready Pac Foods US Bonduelle 760
vegetables and snacks both companies in the fresh food space.
For information on transaction values, please contact the local Clairfield expert (page 43).
Source: Mergermarket; CFNews 24SECTOR SPOTLIGHT: FOODSERVICES
KEY FACTS ABOUT FOODSERVICE IN
ITALY
25SECTOR SPOTLIGHT: FOODSERVICE
KEY FACTS ABOUT FOODSERVICE IN ITALY
Current market situation
The foodservice market in Italy has recorded a further growth in 2016, driven by the increasing habit of the
Italians to go out for lunch and dinner.
Every year, the Italians spend more than EUR 200 billion on food out of which about 35% is spent in bars and
restaurants.
Over the last 10 years, the Italian food & beverage on offer more than doubled and new bars and fast-food places
are located in transport hubs such as railway stations and airports.
The foodservice market reflects this trend and has more than 3,890 independent food distributors with a market
value of about EUR 8.6 billion.
The five main providers are adapting their product range to new market requirements:
− highly customizable products for both collective and retail food service;
− complete selection of products: fresh and frozen food, long-life products, beverages;
− provision of catering services and solutions for several circumstances;
− well organized distribution network;
− choice of branded and non-branded products.
Out-of-home market 2016, %
Beverage; 25% Food; 75%
Top 5 players
Company Sales 2016 (EUR m) Employees
1,481.0 845.0
922.8 3,208.0
286.8 230.0
182.2 230
138.5 141.0
Sources: Aida BvD; Market trend report issued by Formind S.r.l. 26SECTOR SPOTLIGHT: FOODSERVICE
MAJOR FOODSERVICE TRANSACTIONS IN ITALY
M&A transactions 2016-2017
Target
Target Target Transaction
Target Acquiror Revenues
Description Country Rationale
(EUR m)
Italy-based company Edmond de
The PE fund acquired DIMAR in a
engaged in the distribution Rothschild
D.I.MAR. S.r.l. IT 80.0 management buyout auction to support the
of fish and frozen fish Investment
business expansion of the company.
products Partners, S.A.S.
The transaction is in line with the Orsero
Italy-based company
group's strategy to strengthen the
Fruttital Firenze engaged in wholesale
IT Orsero S.p.A. 40.9 distribution of fresh fruit and vegetables in
S.p.A. distribution of fresh fruits
Southern Europe and expand the activities
and vegetables
of the acquired company.
Gruppo Argenta
This acquisition will allow Gruppo Argenta to
Italy-based company S.p.A., Kohlberg
develop the Foodies brand by opening 50
Tramezzino Itì S.r.l. engaged in providing food IT Kravis Roberts & Co. 4.4
new branches under the brand name
delivery services L.P., Motion Equity
Foodies.
Partners
Italy-based company
The acquisition will strengthen Marr's
engaged in distribution of
DE.AL. S.r.l. IT Marr S.p.A. 56.6 presence in the mid-Adriatic area and will
food products to the
enhance the service offerings.
foodservice sector
For information on transaction values, please contact the local Clairfield expert (page 43).
Source: Mergermarket; FactSet 27SECTOR SPOTLIGHT: FOODSERVICES
KEY FACTS ABOUT FOODSERVICE IN
THE NORDICS
28SECTOR SPOTLIGHT: FOODSERVICE
KEY FACTS ABOUT FOODSERVICE IN THE NORDICS
Current market situation
The foodservice sector has recovered from the economic downturn and is growing in all Nordic countries. It is
expected to continue towards 2021 with CAGR of 3% in total. This reflects a general trend where consumers are
spending more time out of their homes and less in their own kitchens.
As the catering business/foodservice supports the consumer food business and is thereby linked directly to the
development of consumer food service, companies in this sector have also experienced growth. At the same
time food retail is selling more ready-to-go food than ever.
The market is attractive right now as investors are seeking business areas with resilience in case we are
approaching a slower period again soon.
Top 5 players
Company Sales 2016 (EUR m) Employees
603 N.A.
560 847
421 N.A.
373 717
270 N.A.
Turnover share of the consumer foodservice Consumer foodservice market share by
industry by country in 2016, % category in 2016, EUR m
2016 distribution Scandinavian consumer foodservice market
35,000
Finland;
Denmark;
17% 30,000
20%
25,000
20,000
15,000
Norway;
21% 10,000
5,000
Sweden; 0
42% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
DK SE NO FI
Source: Euromonitor 29SECTOR SPOTLIGHT: FOODSERVICE
MAJOR FOODSERVICE TRANSACTIONS IN THE
NORDICS
M&A transactions 2016-2017
Target
Target Target Transaction
Target Acquiror Revenues
Description Country Rationale
(EUR m)
Manufacturer of high end FoodService
Grambogård A/S DK 7 Access to prime meat products and dairy.
meat and dairy products Danmark A/S
Manufacturer of meat and
SR Food A/S DK Dragsbæk A/S 8 Access to pastry products and more.
pastry products
Andys Fruit – supplier of Menigo Foodservice
Clafra AB SE 25 Increase in fresh food.
fresh fruit AB
Axfood
Eurocash Food AB 7 large B2B food stores SE 95 Access to bigger marketshare in Sweden.
AB/Norgesgruppen
Skagen Food Distributor of fish products DK Dansk Supermarked 133 Access to 19,000 online customers weekly.
Internatural AB Kung Markatta and Helios SE Midsona AB 64 Increase share organic food.
mat.se – online delivery of Axfood
Matse Holding AB SE 30 Increased access to online B2C market.
weekly food boxes AB/Norgesgruppen
FoodService
Grøn Fokus Ecology products DK 8 Expand into organics.
Danmark A/S
Largest manufacturer of Eckes-Granini Group Arla (Dairy) was looking to divest their juice
Rynkeby Foods A/S DK 95
juice in Denmark GmbH company.
Producer and distributor Consolidation/increased presence in
Västkustfilé Ab SE Insula AS 30
fish products Sweden.
Leading manufacturer and Leading manufactorer of pepperoni high
Dk-Food's A/S DK Maj Invest Equity 20
distributor of pepperoni growth.
Orkla Foods
O. Kavli A/S Drinking products DK 24 Expand into drinking products.
Danmark A/S
FoodService
Ch Interfrugt A/S Organic fruit DK 13 Parent company of Grøn Fokus.
Danmark A/S
Kaivonliha Beef processing and
FI Atria Oyj 43 Complement Atria’s beef product range.
Kaunismaa Oy wholesale
Lagerberg i Norjeby Producer of chicken
SE Atria Oyj 30 Enter poultry business in Sweden.
Ab products
Paimion Strengthen HKScan’s position in the beef
Beef slaughterhouse FI HKScan Oyj 14
Teurastamo Oy market.
Breakfast cereals and other
Frebaco Kvarn AB SE Oy Karl Fazer Ab 29 Increase oats production capacity.
grain products
Västkustfilé AB Fish products SE Insula AS 25 Strengthen position in Sweden.
For information on transaction values, please contact the local Clairfield expert (page 43).
Source: Mergermarket; Capital IQ 30SECTOR SPOTLIGHT: FOODSERVICES
KEY FACTS ABOUT FOODSERVICE IN
POLAND
31SECTOR SPOTLIGHT: FOODSERVICE
KEY FACTS ABOUT FOODSERVICE IN POLAND
Current market situation
In recent years the foodservice sector in Poland has been systematically growing. In 2016, this market grew by
7%.
Polish society is becoming more wealthy, which drives foodservice and related industries.
The foodservice industry belongs to the most important sectors of Polish economy.
Turnover share of the foodservice industry Top players in Poland
by product, %
Grain mill
products &
starch Sales 2016
Company Employees
products (EUR m)
Fish products 3%
4% Oils & fats 765 3,200
Bakery & 2%
farinaceous
products Meat 574 1,100
6% products
28%
Animal feed N.A. 10,900
7%
Fruits & 110 500
vegetables
8%
5,072 9,340
Drinks Various food
11% products
Dairy products 17%
15%
HoReCa industry suppliers type, %
77%
25%
12%
6% 3% 2% 1%
Wholesale (with Direct from Makro Cash&Carry Wholesale (without Selgros Cash&Carry Food market Eurocash
delivery) producer delivery)
Source: Statistics Poland; Polish Investment and Trade Agency 32SECTOR SPOTLIGHT: FOODSERVICE
MAJOR FOODSERVICE TRANSACTIONS IN POLAND
M&A transactions 2016-2017
Target
Target Target Transaction
Target Acquiror Revenues
Description Country Rationale
(EUR m)
The transaction is in line with the Eurocash's
Mila S.A. Supermarket chain. PL Eurocash S.A. 344 strategy to build nationwide supermarket
chain.
The acquisition of Pini Polska has increased
Meat processing and Smithfield Foods,
Pini Polska sp. z o.o. PL 1,104 Smithfields‘s production and export
packaging plant Inc.
capabilities of quality meat.
The acquisition will help Żabka to capitalize
Zabka Polska sp. z Convenience stores chain CVC Capital Partners
PL 1,468 on growing market opportunities and
o.o. owner and operator Limited
enhance the existing store network.
Charoen Pokphand With this transaction CPF intends to invest
SuperDrob S.A.
Poultry producer PL Foods Public 230 in the Polish market and gain access to its
(33% stake)
Company Ltd distribution channels.
Abris Capital This transaction allow Abris Capital Patners
Graal S.A. (55.77% Listed on the WSE frozen
PL Partners and private 223 and private investor to delist the company
stake) and chilled food producer.
investor from the Warsaw Stock Exchange.
Dakri Dystrybucja Bakery products production Through this transaction Bake & Co N.V. has
PL Bake & Co., N.V. 15
sp. z.o.o. and distribution enlarged its portfolio.
Organic Farma The acquisition will help Organic Farma
Zdrowia S.A. (63% Organic food retail chain PL EcorNaturaSi S.p.A 21 Zdrowia in development and will accelerate
stake) the expansion of the Polish market.
Nordfish-Foodmark The transaction will strengthen Lisner’s
Fish products producer PL Lisner sp. z o.o. 39
sp. z o.o. position on the Polish market.
QFG sp. z o.o. (60% Producer of poultry, beef Highlander The transaction will allow QFG further
PL 27
stake) and pork based products Partners, L.P. development and production enhancement.
For information on transaction values, please contact the local Clairfield expert (page 43).
Source: Mergermarket 33SECTOR SPOTLIGHT: FOODSERVICES
KEY FACTS ABOUT FOODSERVICE IN
SPAIN
34SECTOR SPOTLIGHT: FOODSERVICE
KEY FACTS ABOUT FOODSERVICE IN SPAIN
Current market situation
Clients are requesting more complex services to logistics operators and increasing the number and frequency of
orders while reducing their size, and concentrating their Iberian market contracts into larger operators who
offer full coverage in the Iberian market.
Food producers and distributors insist on higher quality standards through the whole distribution chain
requesting more stringent quality controls and traceability from logistic operators.
Domestic food producers are increasing exports in order to compensate for a decrease in the domestic market,
representing an opportunity for logistics service providers.
Food exports are growing in the range of 5%-10%.
The largest multinationals have domestic coverage but generally are focused on large retailers with limited
reach and do not offer complex services.
Food retailers are demanding advanced logistics methods (“just in time”), forcing food manufacturers and
intermediaries to choose between investing in installations or outsourcing logistics services to specialized
logistics service providers.
Some segments in the food market such as wholesalers are starting to see the potential benefits of outsourcing
their logistics operations.
Independent Hospitality: Most of the expenditure in HoReCa supplies is concentrated in Distributors /
Wholesalers.
Organized Hospitality: Except the drinks, where purchases are made directly through the manufacturer, the rest
of products for the majority of these groups are obtained through a logistics operator.
Top 5 players in purchasing groups Suppliers market share (% of the total)
4% 5%
Company Sales (EUR m) 3% 5%
9% 9%
4%
13,795.0 21%
23%
400.0
385.2
63%
54%
282.7
189.0
2008 2013
Other retailers Self Service
Cash & Carry Manufacturer
Multicategory Distributor Specialist Distributor
Source: Ministerio de Agricultura, Alimentación y Medio Ambiente 35SECTOR SPOTLIGHT: FOODSERVICE
MAJOR FOODSERVICE TRANSACTIONS IN SPAIN
M&A transactions 2016-2017
Target
Target Target Transaction
Target Acquiror Revenues
Description Country Rationale
(EUR m)
This majority stake transaction expands
Destilerias Mg SL's global presence and
Import and distribution of
Amer Gourmet SL ES Destilerias Mg SL 4.7 enhances the portfolio of brands and
alcoholic beverages
distribution channels of the company in
Spain.
The acquisition strengthens the operations
of BM Supermercados, the supermarket
Grupo Uvesco SL chain of Grupo Uvesco SL. The transaction is
Cermol 79 SA Supermarket chain ES 59.9
(IFA Española) a result of the insolvency situation and
auction process for "Gigante
Supermercados" (Cermol 79).
Grupo Osborne SA
Consorcio de Jabugo Producer and marketer of (Shanghai Fosun The acquisition allows Grupo Osborne to
ES 25.0
SA (Agrolimen SA) Iberian pork products Industrial increase turnover by more than 30%.
Investment Co. Ltd.)
The acquisition (90%) is in line with
Bidcorp’s strategy to expand its footprint
Processor and distributor of into geographies which offer solid growth in
Guzmán
fresh and frozen fruits and ES Bid Corp. Ltd. 100.0 the food services market. It will enable
Gastronomía SL
vegetables Bidcorp to position itself as one of the
leading foodservice companies in south-
west Europe.
Orsero SpA acquired the remaining 50%
Hermanos Distributor of fruits and stake not yet owned. The acquisition
ES Orsero SpA 170.0
Fernandez Lopez SA vegetables enables Orsero SpA to enhance its portfolio
of existing business.
Grupo Lar SA acquired 22 Eroski
Eroski (Rockspring
Supermarket from Rockspring Property
Property
Supermarket chain ES Grupo Lar SA 5,490.0 Investment Managers LLP for EUR110.7
Investment
million. The acquisition enhances the
Managers LLP)
business portfolio of Grupo Lar SA.
Productos
Wholesaler of frozen fish
Turolinnova SL ES Congelados Selectos 2.1 N.A.
and other products
3000 SL
For information on transaction values, please contact the local Clairfield expert (page 43).
Source: Mergermarket 36SECTOR SPOTLIGHT: FOODSERVICES
KEY FACTS ABOUT FOODSERVICE IN
THE UK
37SECTOR SPOTLIGHT: FOODSERVICE
KEY FACTS ABOUT FOODSERVICE IN THE UK
Current market situation
The delivered UK foodservice sector continues to remain resilient in the face of rising wages and food costs,
growing by 1.9% in 2016 to reach a market value of GBP 10.1 bn.
This growth has been driven by an increasing consumer demand for eating out which has led to a strong
performing and expanding restaurant, pub and hospitality scene in the UK.
Chilled and fresh food was the biggest growing single category, demonstrating the growing importance to UK
foodservice customers of having fresh natural products at the core of their offering.
The delivered foodservice sector is anticipated to grow at a CAGR of 2.5% to reach £11 bn. by 2021 driven by
continued growth in the UK eating out market.
This growth may be stunted by challenges created by the UK’s exit from the European Union, with the rising
costs of food imports and possible labour shortages impacting upon the UK foodservice sector as a whole.
Top players in the UK
Market share in the
Company Sales 2016 (GBP m) Employees
UK (%)*
3,295.0 12,418 18%
5,327.9 13,533 16%
2,360.0 8,990 15%
432.1 >1,000 6%
288.1 >1,000 4%
*Market share relates to foodservice element of total sales.
Delivered foodservice – % growth by category, UK Foodservice market: frequency of eating out
2016 Increased eating out amongst UK consumers continues to drive
sales in the delivered foodservice market
5.0%
4%
Non-food Durables
100%
4.0%
90% 23%
3.0%
80% 29%
2.0%
70%
1.0%
60%
0.0% 26%
50% 55%
-1.0% 40%
Ambient Food
Chilled & Fresh
Frozen Food
Soft Drinks
Beverages
Consumables
Alcoholic
Tobacco
18%
Non-food
-2.0% 30%
Food
-3.0% 20%
12% 16%
10%
0%
1989 2016
I don't eat out Less than once a month
Once a month Once a fortnight
Once a week More than once a week
Source: IGD Research 2017; Mintel 38SECTOR SPOTLIGHT: FOODSERVICE
MAJOR FOODSERVICE TRANSACTIONS IN THE UK
M&A transactions 2016-2017
Target
Target Target Transaction
Target Acquiror Revenues
Description Country Rationale
(EUR m)
Tesco PLC to gain market share in the
Company engaged in the
Booker Group PLC UK Tesco PLC 5,957 grocery market with the acquisition of
wholesale of food.
leading food wholesaler, Booker.
Company manufactures
and distributes sandwich The acquisition of Calder Foods will both
Calder Foods Flagship Europe
fillings, marinated and UK 25 compliment and expand the food-to-go
(Manufacturing) Ltd Limited
cooked meats, salads, product offering by Flagship Europe.
chutneys, and sauces.
Company supplies food The UK arm of CP Foods acquired a 60%
The Foodfellas CP Foods (UK)
products to the foodservice UK 59 stake in Foodfellas to expand into the
Limited (60% stake) Limited
market. foodservice market in the UK.
Catering butcher that
The acquisition of Knight Meats has
Knight Meats supplies fresh meat,
UK Bidcorp N.A. increased Bidcorp‘s capabilities in the
Limited poultry, and deli products
delivery of quality meat.
to the professional kitchen.
Company supplies frozen,
chilled and ambient foods Bidcorp‘s acquisition of Caterfood has
Caterfood Holdings to pubs, restaurants and UK Bidcorp 14 strengthened the companies operations and
caterers, predominately in services in the South-west of England.
the South West of England.
Company supplies frozen,
chilled, and ambient foods
Sysco‘s acquisition of Brakes Group has
to pubs, restaurants,
Brake Bros Limited UK Sysco Corporation 3,684 increased their access into European
hotels, hospitals, schools,
markets.
care homes, and leisure
facilities
Notes:
- Conversion to euros for the transaction value is based upon the relevant exchange rate at the date of the transaction as taken from Capital IQ.
- Conversion to euros for the Revenue figure is based upon the spot rate as of 17/11/2017 (1:1.1206)
For information on transaction values, please contact the local Clairfield expert (page 43).
Source: Mergermarket; Capital IQ 39SECTOR SPOTLIGHT: FOODSERVICES
KEY FACTS ABOUT FOODSERVICE IN
USA
40SECTOR SPOTLIGHT: FOODSERVICE
KEY FACTS ABOUT FOODSERVICE IN THE US
Current market situation
Restaurant industry sales in the United States are expected to reach USD 800 billion in 2017.
Total employment in the restaurant industry is estimated at 10 million across full service establishments, quick
service restaurants, and other providers such as cafeterias and caterers.
Consumer spending, a key driver for establishments serving meals outside the home, has steadily increased
since the recession.
− Per capita disposable income is projected to grow at a 2.7% annual rate for the next five years
− The USDA forecasts that money consumers spend eating outside the home will increase faster than the
amount of money spent eating at home in future years
Other significant trends include consumers increased preference for convenient / quick yet healthy dining
options, and the rise of the fast casual space
Foodservice outlets continue to be the most significant source of revenue for food wholesalers, as restaurants,
hotels and other establishments rely on distribution networks to procure food products.
Top food distribution players in the United States
Revenue
Company Number of Employees
(USD m)
57,007 66,500
.
29,178 17,000
.
23,829 25,000
17,081 14,000
9,454 9,700
Grocery Wholesale Market Segments % of Total Food Expenditures at Home vs. Away
from Home
Other
56%
Other 3%
Wholesalers 54%
16%
52%
50%
48%
46%
Supermarket Food Service
44%
s and Outlets
Grocery 56% 42%
26%
40%
2000 2002 2004 2006 2008 2010 2012 2014
Food at Home Food Away from Home
Source: Forbes, IBISWorld, USDA 41SECTOR SPOTLIGHT: FOODSERVICE
MAJOR FOODSERVICE TRANSACTIONS IN THE US
M&A transactions 2016-2017
Target
Target Target Transaction
Target Acquiror Revenues
Description Country Rationale
(USD m)
Provides event venue
The acquisition strengthens Sodexo’s
Centerplate, Inc. catering and hospitality US Sodexo S.A. 998
position in the North American market.
services
Engages in the ownership,
The acquisition leverages NRD’s experience
development, operation, NRD Capital
Ruby Tuesday, Inc. US 913 in achieving profitable growth for restaurant
and franchise of casual Management, LLC
concepts.
dining restaurants.
Ninety Nine Owns and operates a chain The acquisition will result in a diversified
US J. Alexander's LLC 304
Restaurant, Inc. of restaurants. player in the casual dining segment.
Imports and distributes The acquisition will diversify High Liner’s
Rubicon Resources, High Liner Foods
seafood and seafood US 234 product portfolio and provide a platform for
LLC Incorporated
products. growth.
Owns, operates, and
Panera Bread The acquisition is in line with JAB Holdings’
franchises retail bakery- US JAB Holdings B.V. 2,795
Company strategy of investing in consumer brands.
cafes.
Operates as an onsite
The acquisition will enhance ISS’s service
Guckenheimer corporate restaurant
US ISS A/S 327 offering in the North American market and
Services, LLC management and catering
improve its catering services.
company.
Owns and operates Darden Restaurants, The addition of Cheddar’s is complementary
Cheddar's, Inc. US N.A.
restaurants. Inc. to Darden Restaurants’ portfolio of brands.
Checkers Drive-In Owns and operates a drive Oak Hill Capital The acquisition is in line with Oak Hill Capital
US N.A.
Restaurants, Inc. thru restaurant chain. Partners Partner’s investment strategy.
Develops, operates, and The acquisition strengthens Restaurant
Popeyes Louisiana Restaurant Brands
franchises quick-service US 269 Brands’ US and international prospects for
Kitchen, Inc. International Inc.
restaurants. growth.
Provides food products to
All American Foods, US Foods Holding US Foods will build on All American Foods
foodservice establishments US 60
Inc. Corp. operations in New England.
and SKUs.
Comprises business of
ConAgra Foods, Inc., The divestiture will allow ConAgra Foods to
sourcing and distribution of US Platinum Equity, LLC N.A.
JM Swank Business become a more focused company.
food products.
The acquisition solidifies MTY’s presence in
Engages in franchising MTY Food Group
Kahala Brands, Ltd. US 130 the United States and creates a diverse
quick-service restaurants. Inc.
combined portfolio of brands.
Operates as a branded
retailer and wholesaler of
The acquisition is in line with JAB Holdings’
Krispy Kreme doughnuts, coffee and
US JAB Holdings B.V. 523 strategy of investing in consumer brands.
Doughnuts, Inc. other complementary
beverages, and treats and
packaged sweets.
Provides onsite corporate,
Compass Group The acquisition enhances Compass Group’s
CulinArt Group, Inc. educational, and leisure US 264
USA, Inc. service offering.
dining facilities.
For information on transaction values, please contact the local Clairfield expert (page 43).
Source: Mergermarket; Capital IQ 42You can also read
