May food, beverage and agribusiness M&A activity was notable less for overall volume than its composition. Strategic acquirers continued to drive transaction activity with deal flow concentrated in the lower end of the middle market. Strategic buyers accounted for 85% of activity, while financial sponsors represented just 15%, including new platforms (5%) and add-ons (10%).
Transaction size remained modest across most sub-sectors, with only two announced transactions falling within the $100 million to $500 million range. The month's largest transaction was International Flavors & Fragrances' (IFF) divestiture of its Food Ingredients business to CVC Capital Partners, which stood apart from an otherwise subdued month.
Mesirow Financial, Inc., member FINRA, SIPC.