New Capstone Partners Report Issued: Strategic Buyers Driving Food & Agriculture Inputs Consolidation

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Capstone Partners, a leading middle market investment banking firm, released its September 2021 Food & Agriculture (Ag) Inputs Industry Update reporting that pandemic-induced labor shortages, supply chain disruptions, and limited processing plant capacity challenged Food & Ag Inputs industry participants through much of 2020. However, due to the noncyclical nature of food consumption, the industry has largely avoided the widespread volatility experienced in many pockets of the market.

Merger and acquisition (M&A) activity has continued at a rapid pace through year-to-date 2021, with 29 transactions announced or completed, a year-over-year increase of 26%. While many industries suffered drastic pandemic-induced declines in transaction volume in 2020, deal activity in the Food & Ag Inputs sector was largely unaffected, showcasing its insulation from widespread economic headwinds.

“The powerful macro trends of sustainability, traceability, and clean, functional ingredients are actually gaining momentum in this environment. We expect these trends, coupled with the massive liquidity in both Private and Public markets, to be on the forefront of M&A activity going forward,” said Capstone Managing Director Brian Boyle, the lead contributor in the newly released report.

Also included in this report:

• How leading public companies have performed over the past year
• Commentary on transformational trends shaping the sector
• Why private equity buyers continue to actively target the sector
• What target company characteristics and capabilities drive premium EBITDA purchase multiples in an M&A sale process

To access to full report, click here.