Speculation on acquisitions is rife in the fresh produce industry as the sector appears to be going through a transition period, according to analysis by Plimsoll Publishing.
The publisher finds that companies are either looking to press on with their strategies or are considering a big move involving acquisition or selling up.
To help owners and managers make the right choices when approaching target companies, the industry analyst has released a new study which finds a number of factors are setting the trend in the UK fresh produce arena.
“This effective two-speed industry is forcing some to feel like the market is in decline and that selling up or merging is a great way to save the company,” said Plimsoll’s senior analyst David Pattison. “On the flipside, the other companies grabbing all the growth and profit see an acquisition as a great way to continue their march into the market.”
Plimsoll has identified 829 "buyer" companies. “These companies are the best to consider if you are looking to sell your company or merge,” said Pattison. “They all are showing great financial strength and could all afford to a buy a company or make an investment in another company.”
The 456 "seller" are the best to consider for those looking for a company to buy. “They are likely to be amenable to an approach as many are losing money,” said Pattison. “Some 57 are losing money for the second year in row. Yet in the analysis, each of these companies is provided with a projection that sees them returning to profit inside 12 months. These projections prove that given the right investment and cost reductions, they could all be profitable businesses.”
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