2022 Mergers and Acquisitions (M&A) in the Food Industry

In 2022, the food industry experienced a flurry of Mergers and Acquisitions (M&A) activities, reshaping the competitive landscape and fostering new opportunities for growth and innovation. In this article, we delve into the notable M&A deals that took place in the food industry in 2022 and their implications for the sector. Disclaimer: These are just a few selected examples of the news we share with our members during 2022. If you also want to be the first to know and have unbiased information in record time Click here.

Introduction to 2022 Mergers and Acquisitions (M&A)

With the global population projected to reach 9.7 billion by 2050, there is an urgent need to increase food production to meet the rising demand. This increase in demand has resulted in an increase in demand for food products, which has spurred companies in the food industry to expand their production capacity. The year 2022 witnessed several high-profile M&A transactions in the industry, as companies sought to strengthen their market positions, expand their geographic presence, and enhance their product portfolios. Among the significant M&A deals were:

1. Actylis integrates distributor Aceto and 10 acquired specialists

Actylis, a global manufacturer and sourcing expert of critical raw materials and performance ingredients for life sciences and specialty chemicals combines Aceto and 10 industry specialists into an integrated ingredient player. Actylis has integrated leading specialty ingredient manufacturing and sourcing companies, including A&C, A&C Bio Buffer, Aceto, Biotron Laboratories, Cascade Chemistry, Finar, Inter-Actifs, IsleChem, Pharma Waldhof, Syntor Fine Chemicals and Talus into one company. _29/SEP/2022 _

2. BASF divests baking enzymes business to Lallemand

BASF has entered into a binding agreement with Lallemand Inc’s subsidiary, Danstar Ferment AG, to divest its Nutrilife® baking enzymes portfolio and business due to low strategic fit for the chemicals group. Lallemand entered recently into the development and production of enzymes. The acquisition will further broaden their product portfolio and geographical footprint. _31/AUG/2022 _

3. Daesang sets up joint venture with China Sinopharm

Daesang Life Science, a South Korean manufacturer of health functional foods, said Wednesday it has signed a letter of intent with China Sinopharm International. The two companies plan to build a factory in China’s southern Hainan Province, and join efforts in R&D, marketing, and sales of Daesang’s products. _07/AUG/2022 _

4. Italy: Mazzoleni acquires SIVAM in animal nutrition deal

Italian animal nutrition specialist Mazzoleni S.p.A. announced to acquire SIVAM S.p.A. The two Companies will be united under one group but will continue to operate separately and maintain independent sales organizations. _28/JUL/2022 _

5. Vitamin K2: Balchem Corp acquires Kappa Bioscience AS

Balchem Corporation, a NASDAQ listed group, has signed a definitive agreement to acquire Kappa Bioscience AS, a leading science-based manufacturer of specialty Vitamin K2 for the human nutrition industry, headquartered in Oslo, Norway. _14/JUN/2022 _

6. DSM and Firmenich announce mega merger

Royal DSM and Firmenich announced its mega merger. DSM-Firmenich will have a dual headquarter in Switzerland (Kaiseraugst) and the Netherlands (Maastricht). The Swiss-Dutch global group will have its holding company based in Kaiseraugst (CH) and be listed on Euronext Amsterdam. The two companies anticipate an attractive annual run rate synergy potential of EUR 350m Adj. EBITDA, including c. EUR 500m annual sales uplift particularly from combining DSM’s Food & Beverage and Firmenich’s Taste & Beyond businesses. _31/MAY/2022 _

7. Brazil: Nestlé Health Science acquires Puravida

Nestlé Health Science has agreed to acquire Puravida, a premium Brazilian nutrition and health lifestyle brand. Puravida’s mix of products complements Nestlé Health Science’s portfolio, which already has an offering in oral nutritional supplements, protein powders and ready-to-drink nutritional beverages in Brazil. The transaction will be submitted to the Administrative Council for Economic Defense (CADE) and is expected to be effective in the second quarter of 2022. _27/MAY/2022 _

8. Vanillin: Guangxin acquires 70% of Shixing Pharmaceutical

Guangxin Co., Ltd. announced to acquire from Wang Baoqin the 70% equity of Liaoning Shixing Pharmaceutical Co., Ltd. for around US$ 33m. Shixing Pharmaceutical is one of the few Chinese food additives, dyes and hazardous chemicals manufacturers with a large-scale production capacity of Vanillin. Anhui Guangxin Agrochemical Co., Ltd. is a high-tech enterprise engaged in the research and development, production and sales of pesticides and intermediates. _22/MAR/2022 _

9. Mexico: Barentz acquires Chemcel, opens local office

Barentz International, a global life science ingredients distributor, has acquired assets of Chemcel S.A. de CV, a distributor of specialty ingredients into the Mexican pharmaceutical and nutrition markets. Chemcel, founded in 2004 by Raul de la Parra and Julio Rendon, is a 100% Mexican-owned company specialised in excipients and chemical specialties for the pharmaceutical, food and personal care industries. _13/JAN/2022 _

10. OQEMA acquires food additives specialist Tecnufar Iberica

Germany-based chemicals distributor OQEMA Group, formerly Overlack, announced to acquire Tecnufar Iberica S.L. in Madrid, Spain. Tecnufar is a specialized distributor for high-quality food additives and ingredients, employing more than 20 experts since its foundation in 1994. _10/JAN/2022 _

Conclusion of 2022 M&A in the Food Industry:

The implications and benefits of mergers and acquisitions (M&A) in the food industry are significant. Enhanced market presence, diversified product portfolios, synergies, operational efficiencies, accelerated R&D and innovation, and improved customer service collectively contribute to the growth and competitiveness of companies in the sector. The M&A activities in the food industry not only enable companies to meet the rising demand and address evolving customer needs but also promote sustainable practices, foster industry collaboration, and drive the development of innovative solutions for a more efficient and sustainable global food supply chain.

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