The U.S. food industry is in store for a smorgasbord of mergers and acquisitions as companies look to gain more revenue and earnings growth and new, innovative products.
Deals
After starting the year with mega-deals like Kraft Foods Inc’s (KFT.N) $18.6 billion purchase of Cadbury, the food and beverage industry has room for other large tie-ups, industry bankers and consultants told the Reuters Food and Agriculture Summit in Chicago this week.
The private equity sector could focus on deals in the $3 billion to $5 billion range.
“I think it will continue to be an extremely active year in M&A,” said Greg Pearlman, managing director and head of the U.S. food and consumer group for BMO Capital Markets (BMO.TO).
Industry executives cited companies ranging from Monster energy drink maker Hansen Natural Corp (HANS.O) to Molson Coors Brewing Co (TAP.N) and grocery store chains as prime takeover targets.
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