Private Equity Trends in Food Manufacturing

Overview

The Food Manufacturing industry, particularly segments focusing on niche and specialized products, is increasingly relevant for M&A activity. This industry spans a wide range of products, from frozen and canned foods to specialty health foods, addressing consumer trends for convenience, quality, and health-conscious options. Demand for innovation in product formulation, sustainable sourcing, and advanced packaging solutions is high, driven by shifts toward organic, non-GMO, and eco-friendly products.

M&A opportunities within this sector are often motivated by the desire to expand product portfolios, enter new markets, and respond to regional consumer preferences. Additionally, regulatory requirements around food safety, labeling, and environmental impact play a significant role, with companies seeking acquisitions to ensure compliance and reduce supply chain vulnerabilities. Vertical integration is common, as companies aim to secure reliable raw material sources, streamline production, and improve margins. For M&A professionals, the Food Manufacturing industry presents a fertile landscape for strategic acquisitions, especially as consumer trends and regulatory shifts push companies toward innovation, transparency, and sustainability in their operations.

Sub-Sectors

Historical PE Investments in Food Manufacturing 

Private Equity acquisitions in Food Manufacturing have held steady, representing 1.5% - 2.0% of all Private Equity platform deals each year over the past few decades. There was a notable downtick in 2012 and again during Covid (2021 – 2022), followed by a resurgence of deals in 2023, likely backlogged from the Covid years. 

Because total PE deal volume has increased approximately 5x over this period, maintaining a relatively constant percentage of all PE deals means the absolute number of PE acquisitions in the Food Manufacturing space has also steadily increased by a factor of 5x. 

Market Summary (2001 - 2024)

• 1,968 - Platform investments
• 895 - Add-on investments
• 1,007 - Total unique private equity firms invested 

Top 5 Private Equity Firms Invested in Food Manufacturing

Measured by the number of deals in Food Manufacturing.

1. Arbor Investments (Chicago, IL) 
2. L Catterton (Greenwich, CT) 
3. Sun Capital Partners (Boca Raton, FL) 
4. Conti (New York, NY) 
5. Ardian (Paris, France)  

Geographical Distribution

Sample Private Equity Investments in our Database

August 2024 

Tide Rock Holdings acquired Glenn Wayne Wholesale Bakery (Bohemia, NY). 

Glenn Wayne Wholesale Bakery is a full-line bakery manufacturer. 

May 2024 

L2 Capital Partners acquired Kosmos Q (Oklahoma City, OK). 

Kosmos is a premium brand for barbecue rubs, sauces, brines, injections, glazes, and accessories. 

February 2024 

Harwood Private Equity acquired Crest Foods (Ashton, IL). 

Crest Foods is a provider of food manufacturing, packaging, and product development services to branded and private label customers. 

November 2023 

EagleTree Capital acquired Summit Hill Foods (Rome, GA) from G&L Holdings. 

Summit Hill Foods is a branded food company with nationally recognized brands: Better Than Bouillon, The Original Louisiana Brand Hot Sauce and Better Than Gravy. 

August 2023 

Kirtland Capital Partners invested in Galati Cheese (Windsor, Ontario). 

Galati Cheese is a manufacturer of mozzarella, ricotta, and other artisan cheese varieties. 

How Private Equity Info sources data

As a research database and information services company serving the middle market M&A community for 20 years, Private Equity Info ingests enormous amounts of data surrounding transactions, firms, and executives. In addition, our team engages in many conversations daily across the spectrum of investors, investment bankers, and service providers to the M&A community.

This summary report was put together by analyzing the private equity investments collected by our dedicated research team which follows 127,000 key executives, 16,000 firms and 33,000 funds in the M&A industry, or 34 million total data points. Private equity investors, investment bankers and service providers in the M&A space use Private Equity Info to search, identify and download targeted lists of M&A professionals in order to connect with key executives across thousands of companies, firms and funds.