Quarterly Industry Update: Agriculture - Q4 2020

February 23, 2021

Quarterly Industry Update: Agriculture - Q4 2020

Synopsis
5 Minute Read

M&A activity in the North American agriculture industry increased from Q3 2020 to Q4 2020, both in i) disclosed transaction value of $3.5 billion to $4.3 billion, and ii) number of transactions of 89 to 97.

M&A Market Update – Q4 2020

• M&A activity in the North American agriculture industry increased from Q3 2020 to Q4 2020, both in i) disclosedtransaction value of $3.5 billion to $4.3 billion, and ii) number of transactions of 89 to 97.

• However, disclosed transaction value in Q4 2020 decreased significantly from Q4 2019, $4.3 billion compared to $7.3 billion, respectively.

• While the increase over Q3 2020 indicates continued cautious recovery from COVID-19, total transaction value in 2020 of $13 billion was still down significantly from $17.8 billion in 2019.

• M&A activity in Q4 2020 was predominantly driven by industry operators (i.e. strategic buyers) who accounted forthe vast majority of total deal volume during the period, however, private equity buyers still remain active and are closing deals with ample capital to deploy. 

• The majority of transactions in the agriculture landscape Q4 2020 were in the food products sub-sector, whichcomprised 88.7% of the disclosed transactions. There was also notable deal volume in the agricultural servicessub-sector. M&A activity in these sub-sectors is reflective of operators making strategic acquisitions to diversify product offerings, increase scalability and expand business models into new channels. 

• The largest disclosed transaction in Q4 2020 was McCormick & Company Inc.’s acquisition of The Cholula FoodCompany Inc. for $800 million. Another notable transaction in Q4 2020 was the joint acquisition of Clearwater Seafoods Inc. by Premium Brands Holding Corporation and a coalition of Mi’kmaq First Nations for $746 million. 

Download PDF to view full report

Insights

  • Stack of brand new tractor tires

    July 30, 2021

    New tax incentive on equipment purchase provides immediate benefit

    Federal Budget 2021 provides an upfront tax incentive for Canadian-controlled private corporations (CCPC) to undertake significant capital asset puchases. It does so by allowing for the immediate deduction of up to $1.5 million of certain depreciable property purchased from arm’s-length parties between April 19, 2021, and January 1, 2024.

  • Confidence
    Holding a portfolio on one hand, comparing data on another

    July 28, 2021

    How to optimize value from an Internal Audit co-sourcing partnership

    Co-sourcing your internal audit function can help you navigate several contemporary challenges — including the need for greater agility and subject matter expertise, as well as cost and resourcing pressures. Here we investigate practical steps to find the right vendor and make this relationship as seamless, targeted, and cost effective as possible.

  • Progress
    person reviewing graphs on their phone

    July 26, 2021

    Automating finance, so you can focus on your business

    Cloud accounting and bookkeeping solutions allow you to focus on the critical parts of your business instead of shuffling through paperwork every week.