Quarterly Industry Update: Agriculture - Q4 2020

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

  • Confidence

    February 12, 2025

    Alex Murdaugh: From lawyer to fraudster

    What key takeaways can you learn from this financial fraud case to help protect your law firm and clients from risks? 

  • Performance

    February 11, 2025

    Navigating growth in Atlantic Canada’s food and beverage sector: Challenges and opportunities

    Atlantic Canada’s F&B industry thrives on innovation but faces steep hurdles in labour, logistics, and scaling. Here’s how businesses are forging success. 

  • Confidence

    February 11, 2025

    What the capital gains inclusion rate change means for professionals

    Discover how the 2024 federal budget's capital gains inclusion rate increase will affect professionals.