Suppliers of fruit and veg, fresh meat, fish and poultry and manufacturers of crisps and snacks are the sectors most likely to see a high level of merger and acquisition activity.
The prognosis comes in a survey from Axis Management Consulting on behalf of Grant Thornton and Inflexion Private Equity. The report claims that the main driving factor for these changes is the power of the major multiples as they keep up unrelenting price pressure. In the past two-and-a-half years, 150 UK food companies have gone into receivership, there have been 200 mergers and 300 businesses have been dissolved.
Jonathan Smith, MD, of Axis Management Consulting said: “There is still quite a way to go down this path before we can see any kind of endgame.”