Activity was down 8.0% from 2004 and down a significant 49% from the 637 transactions recorded in 2000, the Food Institute reported.
"Activity may have declined compared to previous years, but there were a number of significant transactions in several categories. Examination of certain deals in the Confectioners, Restaurants, Retailers, Food Processors and Foodservice Distributors categories illustrates the use of acquisitions to not only strengthen a company's current operations, but also to mark their entrance into new areas of business. Meanwhile, divestitures enabled certain firms to exit underperforming areas," noted Danielle Breuel, research and education director of trade association, which has been tracking food industry merger & acquisition activity for over 25 years.
So far this year, ID Access has reported on six foodservice distributorship acquisitions and one related foodservice distributor software provider deal.
See the Feb. 3 edition of ID Report for a story on merger and acquisition events in 2005.