Who Will Buy Nestle’s Herta Meat Business?
According to Reuters, Nestle is to sell its Herta packaged meat business.
We ran FMeasure artificial intelligence based analysis tool to analyze this deal idea, and generated a list of candidate acquirers.
Among the comparable transactions in the past 3 years, most volume was attributable to strategic acquirers from the industry of consumer non-durables (meat, poultry, and fish). Financial acquirers also accounted for a significant portion of the volume. Here are some recent related deals:
Year | Target | Acquirer | Deal Price (M) |
---|---|---|---|
2018 | Keystone Foods | Tyson Foods | 2,500 |
2017 | Moy Park | Pilgrims Pride | 1,300 |
2018 | National Beef Packing Co. | Marfrig | 969 |
2017 | Columbus Manufacturing | Hormel Foods | 850 |
2017 | Fontanini Italian Meats and Sausages | Hormel Foods | 425 |
2016 | The North Australian Pastoral Company (NAPCO) | QIC | 256 |
FMeasure recommendation tool produced a list of ~30 acquirer candidates. About half of them are strategic acquirers and the rest are financial investors. Multiple factors (acquisition histories, financial strength, acquirers’ businesses, investors’ investment patterns, and other relevant information contained in corporate filings and news, etc) have been used in generating the list. The tool also applied natural language processing technology to analyze the recent comments made by senior management of candidate acquirers to understand their M&A appetite.
For example, CEO James Snee commented on Hormel Foods Corp’s next step M&A strategy weeks ago.
“We’re continuing to be very, very active looking for impactful M&A. we’ve talked a lot about our desire to continue to add on to our very strong food service presence. We have capacity in our International business to do more. And then, I think even in our domestic Grocery Products segment, we believe that with some of the M&A activity that’s taken place, there’ll probably be some carve-outs.”
Such claims are treated as positive signs when candidates are generated.
Here is the acquirer candidate list:
Name | Market Cap (US$M) | * Estimated Cash (US$M) | Acquisition Experience in Recent Years | Country |
---|---|---|---|---|
Tyson Foods Inc. | 19,109 | 400 | STRONG | UNITED STATES |
US Foods Holding Corp. | 6,775 | 104 | AVERAGE | UNITED STATES |
Sysco Corporation | 32,372 | 744 | STRONG | UNITED STATES |
ONEX Corporation | 5,494 | 2,666 | VERY STRONG | CANADA |
Oaktree Capital Group LLC | 6,330 | 831 | STRONG | UNITED STATES |
Hormel Foods Corporation | 22,370 | 459 | AVERAGE | UNITED STATES |
Maple Leaf Foods Inc. | 2,493 | 149 | AVERAGE | CANADA |
United Natural Foods Inc. | 674 | 620 | AVERAGE | UNITED STATES |
KERRY GROUP PLC | 18,519 | VERY STRONG | IRELAND |
|
Pilgrim's Pride Corporation | 3,881 | 361 | AVERAGE | UNITED STATES |
The Carlyle Group L.P. | 1,697 | 885 | VERY STRONG | UNITED STATES |
The Blackstone Group L.P. | 25,405 | 2,346 | VERY STRONG | UNITED STATES |
Apollo Global Management LLC | 6,964 | 911 | VERY STRONG | UNITED STATES |
KKR & Co. L.P. | 10,387 | 2,641 | VERY STRONG | UNITED STATES |
Ares Management L.P. | 1,804 | 494 | STRONG | UNITED STATES |
General Mills Inc. | 25,990 | 399 | AVERAGE | UNITED STATES |
JBS S A S/ADR | 10,629 | AVERAGE | BRAZIL |
|
Post Holdings Inc. | 6,180 | 989 | AVERAGE | UNITED STATES |
Frutarom | VERY STRONG | ISRAEL |
||
AURELIUS Equity Opportunities | VERY STRONG | GERMANY |
||
Marubeni Corporation | 13,233 | AVERAGE | JAPAN |
|
Wynnchurch Capital | VERY STRONG | UNITED STATES |
||
Warburg Pincus | 4,800 | VERY STRONG | UNITED STATES |
|
Church & Dwight Company Inc. | 15,670 | 316 | AVERAGE | UNITED STATES |
H.I.G. Capital | 7,475 | VERY STRONG | UNITED STATES |
|
ConAgra Brands Inc. | 10,340 | 442 | STRONG | UNITED STATES |
Cargill | VERY STRONG | UNITED STATES |
||
Ardian | 8,822 | VERY STRONG | FRANCE |
|
* includes short term investment |