Mergers and Acquisitions in the Ingredients Industry: Buying Back into Acquisition in a Recovering Economy

Introduction

Scope

• Introduction

Key findings

• Introduction

SWOT analysis: Ingredients market operating environment

• Introduction

M&A Strategies

Core M&A objectives

• M&A Strategies

One large deal or several smaller ones?

• M&A Strategies

Strategic alliance and joint venture as alternatives

• M&A Strategies

Competition laws can restrict mergers and acquisitions

• M&A Strategies

Mergers and acquisitions in an economic downturn

• M&A Strategies

Ingredients Industry Background

Core objectives for global ingredients firms

• Ingredients Industry Background

A complex industry in which comparisons are difficult

• Ingredients Industry Background

Acquisition strategies of key suppliers, 2009 to date (1)

• Ingredients Industry Background

Acquisition strategies of key suppliers, 2009 to date (2)

• Ingredients Industry Background

Acquisition strategies of key suppliers, 2009 to date (3)

• Ingredients Industry Background

Market forces and their effect on M&A activity in ingredients

• Ingredients Industry Background

Case Studies: Industry Consolidation

Flavours and fragrances: Leaders build size and scope

• Case Studies: Industry Consolidation

Flavours and fragrances: Changing face of the top 10

• Case Studies: Industry Consolidation

Flavours and fragrances: Top 10 now hold over 71%

• Case Studies: Industry Consolidation

Flavours and fragrances: Large and small deals make a mark

• Case Studies: Industry Consolidation

Case Studies: Long-term Acquisition Programmes

Frutarom: Development through 10 years of acquisition (1)

• Case Studies: Long-term Acquisition Programmes

Frutarom : Development through 10 years of acquisition (2)

• Case Studies: Long-term Acquisition Programmes

Frutarom: Turnover increases fourfold from 2001-2009

• Case Studies: Long-term Acquisition Programmes

Frutarom : Vast expansion of production network

• Case Studies: Long-term Acquisition Programmes

Kerry Group: Almost 60 acquisitions in 10 years

• Case Studies: Long-term Acquisition Programmes

Kerry Group: Broad regional spread in activity

• Case Studies: Long-term Acquisition Programmes

Kerry Group: Over 40% sales growth from 2003 to 2008

• Case Studies: Long-term Acquisition Programmes

Case Studies: Major One-off Deals

Do billion dollar deals signal acceleration in M&A activity?

• Case Studies: Major One-off Deals

Corn Products/National Starch: US$1.3 billion acquisition

• Case Studies: Major One-off Deals

Corn Products/National Starch: Geographic benefits

• Case Studies: Major One-off Deals

BASF/ Cognis : €3.1 billion acquisition

• Case Studies: Major One-off Deals

BASF/ Cognis : A perfect fit plus new customers

• Case Studies: Major One-off Deals

DSM/ Martek : US$1.1 billion acquisition

• Case Studies: Major One-off Deals

DSM/Martek: Market leadership plus innovation potential

• Case Studies: Major One-off Deals

DuPont/ Danisco : US$6.3 billion acquisition

• Case Studies: Major One-off Deals

DuPont/ Danisco : Dual benefits from two parts of Danisco

• Case Studies: Major One-off Deals

Case Studies: Regional Expansion Through Acquisition

Symrise: Acquires strong position in the Middle East

• Case Studies: Regional Expansion Through Acquisition

Cargill: Takes starch/sweeteners foothold in Southeast Asia

• Case Studies: Regional Expansion Through Acquisition

Is it time for Chinese and Indian firms to look West?

• Case Studies: Regional Expansion Through Acquisition

What Next?

Who will feature in M&A activity for 2011-2012

• What Next?

Appendix

Notable M&A activity in ingredients industry 2009-2011 (1)

• Appendix

Notable M&A activity in ingredients industry 2009-2011 (2)

• Appendix

Notable M&A activity in ingredients industry 2009-2011 (3)

• Appendix

Notable M&A activity in ingredients industry 2009-2011 (4)

• Appendix