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Strategy Briefing
M&A in the Ingredients Industry : Scaling Down But Thinking Ahead
60 pages, Feb 2013
US$1,200Added to Cart
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About This Report
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If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!
Despite some recovery after the global economic crisis, many of the world’s major economies remain anaemic. This situation is prompting a change of approach in ingredients M&A, with many companies now opting for smaller, strategic purchases with clear growth potential rather than simply seeking to add size. This report provides background on M&A strategies in the diverse ingredients industry, pinpointing specific deals and assessing the varied approaches of some of the key companies.
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Overview
Why buy this report?
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.
Anaemic economies impact strategies
Following a flurry of major deals in 2010, M&A activity in the ingredients industry is readjusting to stagnant economic conditions, with a greater focus on smaller add-ons and an emphasis on strategic benefit rather than merely on size.
Speciality targets become more attractive
Companies specialising in specific fast-growing ingredient categories have leapt to the top of many acquisition shopping lists. Diversification of product portfolios has become just as important as regional scope.
Natural, sustainable businesses are popular
The growing emphasis on naturalness in all areas of the FMCG market ensures that companies with a focus on natural and sustainable ingredients attract significant attention as potential acquisition targets.
Technology potential also increases a target’s appeal
Investment in NPD remains crucial to continued success in ingredients markets, so firms with access to new technologies and with R&D potential are hot targets; future M&A will not be focused solely on manufacturing opportunities.
Regional expansion still important
Although much recent M&A has been centred on product strategies, there is still pressure on ingredients firms to have a more global presence to satisfy global customers, while many growth opportunities can still be found in emerging markets.
Greater focus on food and drink ingredients
There remains more M&A activity in food and beverage ingredients than in home and personal care; this is perhaps a response to more dynamic trends in food and drinks and the already global nature of other markets.
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Request more informationTable of Contents
Introduction
Scope
Key findings
SWOT: Ingredients market operating environment
M&A Strategies
Core M&A objectives
One large deal or a series of smaller ones?
Strategic alliances and joint ventures as alternatives
Competition laws can be an impediment
Economic impact on M&A strategies
Ingredients Industry Background
Core objectives for global ingredients firms
A complex industry in which comparisons are challenging
Acquisition strategies of key ingredients suppliers (1)
Acquisition strategies of key ingredients suppliers (2)
Acquisition strategies of key ingredients suppliers (3)
Acquisition strategies of key ingredients suppliers (4)
Market forces and their effect on ingredients M&A
Industry Consolidation
Case study: Omega-3 fatty acids
Omega-3 demand can benefit from renewed investment
Fragmented industry that is starting to consolidate
Recent activity in the omega-3 fatty acids industry, 2010-2012
A number of specialist acquisition targets remain
Targeted Acquisition Programmes
Case study: FMC and DSM
FMC: Specialty Chemicals division poised for further expansion
FMC: Diversifies ingredients portfolio through acquisition
FMC: Expands natural portfolio and widens regional presence
DSM: Acquisition programme targeted at Nutritionals operations
DSM: Purchases made in both Nutritionals divisions
DSM: Expands portfolio and achieves global leadership
Strategic Alliances in Place of M&A
Case study: Tate & Lyle
Decline in billion dollar deals reflects change of approach by some
Tate & Lyle: Profits driven by Speciality Food Ingredients
Tate & Lyle: Recent alliances target innovation
Tate & Lyle: Access to new ingredients and technologies
Regional Expansion
Case study: Brazil and US
Brazil attracts attention from flavour and fragrance firms
Brazil as a gateway to other fast-growing markets (flavours)
Brazil as a gateway to other fast-growing markets (fragrances)
Same F&F companies are also interested in US expansion
Size and scope of the US is attractive to investors
Developed markets also offer value-added opportunities
What Next?
Continued focus on smaller, more specialist targets
Appendix
M&A in the ingredients industry 2011-2012 (1)
M&A in the ingredients industry, 2011-2012 (2)
M&A in the ingredients industry 2011-2012 (3)
M&A in the ingredients industry 2011-2012 (4)
M&A in the ingredients industry 2011-2012 (5)
M&A in the ingredients industry 2011-2012 (6)
M&A in the ingredients industry 2011-2012 (7)
M&A in the ingredients industry 2011-2012 (8)
Definitions
Data parameters and report definitions
Why buy this report?
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.