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Acquisition Strategy for UK Protein Player

Situation

Our Client, the large UK arm of a global protein conglomerate asked Food Strategy Associates to assist in developing an acquisition strategy to grow revenues and EBITDA margins across a 3-5 year period with the aim of raising capital for the next stage of its growth.

The business was interested in the majority of protein types across Chilled and Frozen, including plant-based protein acquisitions.

What we did

FSA worked with the client and its parent entity to understand the existing business and its strategy, prioritise target markets across the protein market, identify a large pool of potential acquisitions, and form an evaluation criteria to condense to a shortlist of companies which were analysed in detail.

In order to identify the pool of potential targets, Food Strategy Associates:

  • Performed detailed store audits across all major UK retailers to understand the private label supplier landscape and estimated market share
  • Analysed UK industry codes to identify businesses specialising in channels beyond UK retail (i.e. cost sector, contract sector)
  • Identified business sales in the sector in the last five years through third-party data sources

Once a long-list had been formed, we worked with the client to form a prioritisation criteria, enabling us to perform targeted research on financials, customers, operations and likelihood of sale for c20 businesses. This was supplemented with investigative interviews on potential targets.

FSA then estimated potential synergies arising from each acquisition and their fit with the wider business strategies identified with the client and its parent at the beginning of the project.

Results delivered

Our client is investigating the potential acquisition targets with its parent entity with a view to progressing with a number of potential targets identified.