US middle market food and beverage M&A activity moderated in February, with announced deal volume declining approximately 23% month-over-month, while aggregate disclosed enterprise value increased, driven by a limited number of larger strategic transactions. Buyer participation remained decisively strategic, with corporate acquirers accounting for more than 80% of completed deals, reinforcing continued conviction in control acquisitions, category positioning and synergy realization. Financial sponsor activity was selective and price-disciplined, focused on assets with durable earnings profiles and credible value creation pathways rather than reliance on multiple expansion.

Recent transaction outcomes reinforced a clear pricing dynamic across the sector: well-positioned assets continued to command premium valuations where buyers could underwrite near-term synergies, margin resilience and strategic scarcity, while more broadly exposed or operationally complex businesses faced tighter bid-ask spreads.

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