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 for the 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

  • Agility

    May 17, 2022

    The power of putting people first

    For your organization to thrive in a modern and competitive workforce, you may need to shift your mindset and your approach towards employee satisfaction.

  • Agility

    May 13, 2022

    [Listen] Digital transformation and the path to stronger, safer, and more efficient cities

    Digital Services partner Wendy Gnenz visited Municipal World’s MW Presents Podcast to discuss how technology is shaping the present and future of Canadian municipalities.

  • Agility

    May 13, 2022

    Real estate and construction: Insights from Federal Budget 2022

    The Federal Budget 2022 proposed a number of business and personal tax measures that will impact the real estate and construction sector. Melissa Aveiro, MNP’s Real Estate and Construction tax lead, discusses what the 2022 Federal Budget addressed – and what it did not.